good morning, 5:00 p.m. in yorkshire, england, 11:00 a.m. on wall street, and "squawk alley" is live. ♪ little ""downton abbey" tribute after the finale on pbs. kayla tausche is out today. jon fortt and myself manning the post at post nine. an interesting day. dow started the morning and week in the red. but now up about 18 points. a lot of that on the back of oil, which once again after three weeks higher, and the best week since august is adding more than a buck now above 37.

>> yes. and something i think we're going to be talking about a lot today. and probably into the week. this rebound in growth tech stocks we've seen throughout february and continuing into march. some of these -- netflix up about 20% off the lows, i believe. workday at 48. now around 73, i think. at least where it opened. you go on down the line. linkedin is up 15, 20% from where it was at the lows after earnings. it seemed like investors were backing away from these growth stocks and the idea they were not growing as quickly as expected, particularly in the cloud and sas arena. but look, they're coming back. at least somewhat. it will be interesting to see different perspectives on whether that's going to have legs. >> we're sort of in the in between. q4 and q1 reporting periods, some more convinced this is not a sustainable rally, argue that wait until we get those q1 reporting figures and some may dissipate, but time will tell. in the meanwhile, we've got to

watch politics, as well. the con tenuous democratic debate in flint, michigan. take a listen. >> i voted to save the auto industry. he voted against the money that ended up saving the auto industry. i think that is a pretty big difference. >> well, i -- if you are talking about the wall street bailout, where some of your friends destroyed this economy -- >> you know -- >> excuse me, i'm talking. >> let him respond. >> speaking of the election, as the field win owes, we're learning more and more about who is backing the remaining candidates. hey, amen. >> hi, carl, ruthlessly limiting, time to take a look at which money men are still in the running here. look at the backers for the super pacs behind remaining candidates. starting with senator ted cruz.

a couple of big names backing him. robert mercer, the computer scientist and hedge fund manager from renaissance technologies. dan and farris wilkes with frac tech. marlene rickets, and john child's all backing ted cruz. they're all still in the running here. looking at john kasich, you see an ohio concentration of wealth backing his candidacy. greg went, mark kvamme, abigail wexner and john mcconnell. and also marco rubio. you get a florida connection there, as well. and a big national connection with larry ellison of oracle. laura pea laura pearl mutter, and norman braman and hillary clinton has big names backing her.

hiam saban, steven spielberg, mark hooising and david shaw. so, guys, a lot of big money players still in this race here. and then one of the big questions for a lot of the people who backed those candidates now eliminated, do they pick a new horse or sit out the cycle? some decisions to be made here, guys. >> and to be made soon, eamon, as we get closer and closer to the 15th. we welcome paul holland, foundation capital. paul held a meeting last week with top voices from the valley. great to have you back. we know the valley is traditionally blue. any reason to think it's going to be different this cycle? >> no, i'm afraid not. that's not likely to change. one of the things we have seen, of course, over the last several elections, you've got really kind of some different kind of candidates. you know, hillary clinton has done a very good job of forming relationships out here. the clintons are well-respected.

i think they did well by the tech economy. the republican situation is obviously kind of like a broken field situation in football. so everybody is watching that. as you know, we gathered together about 40 people from the silicon valley at our home with my wife, my colleague, meg sloan and tim dyson. and we had a very spirited discussion, but it was incredibly cordial. we had about a third of the people there were right of center. a third of the people were probably in the center. roughly a third women. some very interesting points of view. five major religions represented in the room. "new york times," buzz feed, our local people. and we had nbc universal that was in attendance. a terrific session, very meaty. lots of content. but i just have to say, at the end of the day, it was hard to keep the discussion from veering towards donald trump. he's like a car wreck. it's hard to take your eyes off of him. >> paul, what is the trump effect on the somewhat

conservative kind of libertarian-leaning group in silicon valley? are they going to sit this one out because they don't have -- if trump gets the nomination, as it appears he might, they don't have a candidate who reflects their views, or might they actually financially back hillary clinton? >> so i think there's an interesting thing here. we put this form together, took about a week to put it together. i reached out to nearly 100 people. i couldn't find a single person who would speak for either donald trump or ted cruz. here in the valley. i tried. there were some folks that kind of off the record were interested, but they just weren't interested in coming on the record to do that. i think trump is an enigma. i don't know what we're going to get. of course,el california is not contested, so we don't see of the ads you guys see in other states. so what i think we're going to see is that once he's out here and starts paying attention, i'm sure he'll have his fans, i'm sure he'll have some people interested. but i just have to say that the valley is an incredibly diverse place. one of my partners is

mexican-american. i just think it's a tough sell to come here and to really sort of preach to people this notion of closing the borders and intolerance and things like that. it's really the anathema to the way the valley works. >> if it trump gets the nomination on the gop side, are you going to put your money behind hillary clinton? >> well, i actually don't -- i'm not going to talk about my preferences from that perspective. but in terms of what i think is going to happen here, my suspicion is that hillary clinton will do very well in the silicon valley. it's not a layup. i don't think it's a layup anywhere, because i think one of the challenges -- one of the things that came out of our forum was this notion that over the last five or six presidential elections, the candidate with the most charisma ended up winning. so i don't think you can discount trump from that perspective and i think that's a place where hillary clinton needs some work. but if you put that aside, when you look at the long relationship of the clintons, here in the valley and the -- sort of the leanings of the

folks running the large companies here, i think she'll end up doing quite well. but i wouldn't discount the fact that trump will pick up more votes than people realize, just simply because he's a phenomenon. >> certainly immigration is going to be a huge issue a long with security. that brings us to this next story. apple vp craig if i had receipty criticizing the fbi in the iphone case, creating a back door for the phone saying it would become a weakness that hackers and criminals can use to wreak havoc on the personal safety of us all. for the first time ever, mac users were targeted by hackers in a ransom-ware attack, a type of software that steals your data, encrypts it and asks you to pay a ransom to get it back. are you noticing, paul, any shift in apple's rhetoric? do they fee like the wind is at their back? >> i wouldn't say i see anything different. apple has been very consistent over literally decades in terms of their approach to security. they have built essentially

their own system, and it makes it really one of the most highly secure systems in the world. you hardly ever hear about anybody's iphone getting hacked or whatever might happen to be versus their pc or other systems much more open. so i don't think we're going to see a big change out of apple from that perspective. i would say, when you go more broadly into things like this ransom ware business, you know, security is the gift that keeps on giving in the silicon valley. there is always a need for a new startup. there is always a need. because think about it this way. all of the money in the world is now flowing through software. so that means all of the criminals in the world are going to have to learn how to steal that money from the software, and that's really the heart of what drives the security business in the silicon valley. >> carl, two things jumped out at me about craig's op-ed here in the "post." one was he set up the argument that if your security fails in your phone, it puts your family and friends and co-workers at risk, extending the it's not just about one phone argument. he also says yesterday's best

defenses cannot fend off the attacks of today or tomorrow. the innovations have to continue, he's arguing, basically saying not only can't we go backwards to ios 7s protections but can't stand still. he's signalling, we're going to he keep building stronger encryption protections into the operating system going forward, expect us to do that, because it's good for you. >> right. paul, he makes that point, that the race against the hackers is a race you can lead. you can be leading that race, but you can't necessarily or ever win it. >> that's correct. and just think about it this way. the iphone is one of the most successful products in the history of mankind. if we don't use it, we use one of the knockoffs. but the whole notion of the mobile phone economy has been absolutely amazing. do you really want to put the decision-making around that economy in the hands of the government? i think what you're going to see at that point is just the slow down in decision making, and the lack of competitiveness is just going to make it wide open for other people to come in.

and i think ultimately, it will make the system weaker. >> finally, big weekend for netflix, guys. the premier of "house of cards." check out this statistic. according to a report, netflix was responsible for a more than 50% drop in viewership time of u.s. tv viewing last year. netflix still down about 12% in 2016. but up about 20% in the last month. it's almost become a seasonal factor for these guys. how well is "house of cards" going to do? >> we now find ourselves with art imitating reality. we have a "house of cards" election. not the "house of cards" tv show, an election. it's amazing how impressive these guys are, the writers of these shows and so forth. i was in new york over the weekend, and i interacted with some folks i know in the media world. the ads are up for president underwood and all these sorts of things. so i think they're going to take i lot of the oxygen out of the room for traditional television

for a while to come. but, of course, you know this. this trend has been going on now for the last decade or so. and, of course, we funded netflix back in 1999. but we've been watching this go on for some time. i have three teenaged daughters. other than me watching the golden state warriors on tv, my television doesn't go on. my kids don't watch television. three teenagers. all they're watching is on screen one, two, three. it's their phone, homework, supposedly on their computer. and it's these other devices that they're now absorbing this information. and, of course, netflix is one of their top destinations. >> a number of growth tech stocks are up 20% or better off some lows we saw in february. is that significant, or is that just the wind blows here and there in the market? is it having an impact at your level, the vc level, on how you view the sense and health of the overall tech market? >> well, it's interesting you say this. i've had a debate internally, even at foundation capital, with

some of our partners there around is this sort of a bear market bounce or are we starting to see some renewed momentum in some of the growth stocks? i think there is a phenomenon that's occurred many, many times over the last, say, 40 years with the silicon valley. and one of those is you get a whole new crop of players that come out and get into the public markets and they're all looking really exciting. and then all of a sudden a year or two or three years into it, some don't look as exciting any more. some don't have the stamina or staying power of a netflix or other players. and so i think certainly we're going to see some of that, some of that winnowing that's going to happen. then when you look back, some of the companies -- in fact, some that we're in, are up 50% over the last, say, probably two or three weeks. as they have started to come back from this. and so i think the ones that are going to be the long sdansz distance runners, you can bet on those over the longer period of time. and i think that's some of the stuff we're going to see now. you're going to separate the wheat from the chaff. >> paul, good to talk to you as

always. go warriors. we'll see you next time. >> thank you, guys, very much. take care. and we do want to check on the markets right now. all of the major indexes stra d trading well off the lows. the dow is in the black, up just over 26 points. the s&p and nasdaq in the negative. but not nearly as bad as they were in the opening minutes of the session. also, check out oil. currently trading at two-month highs, up around -- let's see. $37 a barrel. up better than 3%. shares of seagate technology also in the green after employees were hit by a fishing attack, exposing their w 2 information, which includes, of course, social security numbers, also salary info. the disk drive maker says it immediately informed the irs of that issue, carl. >> all right. when we come back, hillary clinton on her tax plan, and donald trump, more of her exclusive interview with john harwo harwood. and conventional tv viewing

continues to fall. we'll tell you if those numbers may turn around any time soon. and after 18 years, peyton manning announcing his retirement we'll talk about his career and the future of the nfl with super agent drew rosenhaus, in a moment. the future belongs to the fast. 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.

a lively debate between hillary clinton and bernie sanders last night in michigan. relatively speaking, of course. so where does she stand on taxes and donald trump? our john harwood spoke to her exclusively and joins us with

more. john. >> john, you know, the debate last night reflected my conversation with hillary clinton. when you're bernie sanders and you're the chaer, you can swing for the fences and talk about a political revolution. and you're the front runner like hillary clinton, you can strain yourself, at least she is, by what she thinks is actually possible. >> i've gone as far as i think the political, you know, equation will sustain. i agree. >> so that's not a substantive thing. that is a political calculation. >> well, it has to be both. i want to propose things i can get done. >> the president of the minneapolis fed said, you know what, we should break up the big banks. that's what bernie sanders has called for. if a statewide republican candidate in california, former goldman sachs, thinks that's a good idea, why don't you? >> i haven't said that it wasn't a good idea. i'm on record, john, as saying we now have the tools under dodd/frank, tools that did not exist prior to -- >> are you proposing like sanders to break up the big banks?

>> i am proposing we follow the law. we have a process under dodd/frank. if -- >> you're talking about the winddown process. >> yes, if any bank proposes a systemic risk, it can be broken up. >> sanders wants to do it preemptively. >> well, but we have a law. you know what, we are a nation of laws. we have passed a law which sets forth a process. now, you know, if you want to claim you can do it without following the law, that seems pretty radical to me. but what i have said is, i would support breaking up any bank that posed a systemic risk to the economy and we have a process now in place, thanks to dodd frank, thanks to president obama. we have got the tools. my opponent acts like he's going to create this. we passed a law. and the law gave us the tools. and if we meet the criteria, we should act. and i'm committed to acting. when you run for president, and we're seeing it very much in the other side, people make all these claims.

and it's hard for voters to really evaluate, how do they decide? is this person, you know, being smart, are they just overpromising, are they way out in left field or right field? who knows. that's why i've tried to say, look, here's what i will do. here's how i will do it. here's how much it will cost. i think that's pretty revolutionary. because i want us to get back to having elections that are about agendas. >> now on taxes, hillary clinton says her 4% surtax would start at income of $5 million, because that's where the real money is. and as for donald trump, she says she is not nervous about the prospect of an unpredictable campaign against him. saying republicans have been after me for years. she's ready for that, guys. >> john, it struck me in your conversation, hillary clinton sounded utterly reasonable and calculating. an election like none i can remember in recent times where a lot is about red meat as far as what trump is saying to his base, what sanders is saying to his. is that hurting hillary clinton?

>> well, bernie sanders has got some energy by inspiring, especially young people, more than hillary clinton has been able to do. but her sweet spot is trying to play on the reputation of her husband's presidency, the good economic times, portray herself as an agent of continuity, with president obama. she's benefitting from the support of african-american voters. but proposed new policies that she thinks can both narrow income inequality a bit, and make the economy work better for a broader group of people. >> all right. thank you, john. up next, sad news over the weekend. former first lady, nancy reagan passed away at the age of 94. a look at her life and legacy, when we come back.

the country mourning the loss of nancy reagan, who died at the age of 94. our jane wells is live at the reagan library in simi valley, california. good morning, jane. >> hey, carl. we're just getting new

information. they are going to be lowering the flags to half-staff here at 10:00 a.m. local. they already have done that at the white house. the u.s. capitol and other public buildings. people -- media will be taken into the mrs. reagan gallery here. this library opened 25 years ago. and nancy reagan was very much a part of it in how it portrayed her husband's legacy from birth to hollywood to sacramento to washington. it is here where she will be buried next to him. a library preparing for a private funeral and internment the. mrs. reagan had previously designated who she wanted as speakers. along with information on how the public will be able to come and pay their respects. the library remains closed today. we had torrential rains this morning. yes, rains in southern california. and while during her life nancy reagan had her critics, no one doubted her devotion to her husband. she may have been a stylish and subdued first lady in public, but behind the scenes can, had had immense influence, and colin powell described her as the

person who sometimes had to deliver the bad news. >> we were definitely on the inside watching her. and watching how she protected her man. herr her ronny. she did that with strength, vigor, common sense and she did it cleverly. she didn't shout at anybody, but if there was dissatisfaction anywhere in the white house, it was made known to us and we fixed it. >> mrs. reagan was also known for her just say no campaign to tackle drug abuse by young americans, a campaign mr. t joined her in, in one of the era's most unlikely couples. i want to show this picture live outside the air force one pavilion. this is a view to the east. mrs. reagan will be buried next to her husband with a view from the west. and, again, at 10:00 a.m. local today, they will be lowering flags to half-staff here. and later this week, the public will be allowed in to pay their last respects. her remains remain at the funeral home in santa monica and

at some pointed transported up here to simi valley. guys? >> jane wells, thank you very much for that. we'll take you to a live picture of washington at this hour, showing those flags at half-staff in honor of mrs. reagan. back in a minute. vo: know you have a dedicated advisor and team who understand where you come from. we didn't really have anything, you know. but, we made do. vo: know you can craft an investment plan as strong as your values. al, how you doing. hey, mr. hamilton. vo: know that together you can establish a meaningful legacy. with the guidance and support of your dedicated pnc wealth management team.

hello, everybody. i'm sue herrera. here is your cnbc news.commit. extremists attacked a town near

the libyan border. they closed because of the attack. tunisia says 28 terrorists and 7 civilians were among those killed. united continental says president and ceo oscar munoz will return to work full time later this month. he suffered a heart attack in october just six weeks after rereplacing the ceo. he had a heart transplant in january. heavy snow wreaked after okay on motorists in california last night. a very powerful storm packing heavy snow and blanketed that area. parts of interstate 80 were closed as drivers experienced near whiteout conditions. and a new harvard study reveals a vitamin d deficiency during early pregnancy may increase the risk of multiple sclerosis in children. children of mothers who were vitamin d deficient were 90% more likely to develop ms as an adult. it is not known, however, when increasing the vitamin d levels decreases that risk or whether there is another factor involved there too.

that's the cnbc news update this hour. back downtown to "squawk alley." carl? >> sue, thank you very much. let's bring in simon hobbs, countdown to the european close with some red arrows. >> yes. a very big week for europe, not just the ecb by migrant crisis and regional elections in germany on sunday, next weekend. in the meantime, jp morgan or jp morgan cast november as extended u.s. equities. more broadly into europe saying the rallies are an opportunity to reduce your positions there, in part because the politics will get messy from here. and also because they believe that technically, we are overbought. there is a real concern about what is happening in italy and whether or not the italian economy will go back into recession effectively for a fourth time, quadruple dip if you like. the prices were down for an eighth month today and we got data at the end of last week, suggesting the economy barely grew in the fourth quarter. and at the end of the day, the italian banks are effectively in

accelerated or multiply play on the local economy. they are down. other banks are also down. did well last week, a good bounce there, as we await what the ecb will do with negative rates on thursday. the bank of international settlements over -- the bankers bank was quite critical of negative interest rates and raise again that question as to whether there is now a faltering confidence that central banks can basically sues the ills in the market. two stocks today i would mention. the first is edf, electricity to france, $20 billion in market cap after all of the losses. today or over the weekend, you have -- look at the way we have lost ground here. so it was $40 billion. it's now $20 billion. the cfo is resigning. it would appear because he doesn't like the idea that they can invest in a nuclear facility in the uk at a cost of $25 billion when cutting dividends and selling assets to basically shore up the balance sheet. on the up side today, sea drill, the most indebted of the

drillers, continues to make gains. this is a short squeeze beyond all over. the stock is now -- this is like a 3, $4, billion stock. this is a one-week track because it's 24% owner, john frederickson, we think, has freed up half a billion dollars to take part in the restructuring of that $11 billion of debt. that is a real short squeeze, guys. up 60%, just on today's session. back to you. >> thank you, simon. now let's bring in cnbc contributor, john steinberg, formerly ceo now at cheddar. want to go back to the apple and security issue. vp of software engineering, fighting back against the fbi. the tech giant suffers its first known mac ransom ware attack, as well. in the op-ed it is written that if an iphone back door is created it would become a weakness that hackers and criminals could use to wreak after okay on the privacy and personal safety of us all.

to me, john, this is interesting, coming on the heels of this house hearing that we saw, apple had a bit more sympathy than i expected from both sides of the aisle. we saw there. now you've got a new executive coming out, making a different kind of case that if your iphone gets cropsed, puts your wife, children, friends, co-workers at risk. what did you think of this development in this ongoing story? >> i think it certainly strengthens apple's side of the argument. to have one inflict ransom ware as they call it, into mac os. with that said, you had to be downloading bit torrent software, and kind of bypass a warning. to put this on your computer. so using software you already know to be suspect. so, you know, it definitely helps apple out a bit. you wouldn't have gotten this by downloading a more standardized piece of commercial software. a thin argument in some ways. >> what do you think of craig's points in the "washington post?" >> i thought it was interesting he made the point that software is developed by humans, has

flaws and so there is always possible threats. i don't know if that differentiates between the apple situation with the fbi or not. you would have back doors regardless of whether or not apple is actually opening it up to the fbi. one other interesting note i realize, the way to actually pay off this ransom ware is with bitcoin. so i guess we finally found a use for bitcoin. if there is any up side. >> they have been doing that for a long time. somehow your trade on bitcoin going? >> terrible. terrible. i actually looked over the weekend. actually, this story made me look at my bitcoin. i think i'm down to $400 of coin. i think i bought at $900 a coin. luckily only a few coins. >> you win some, you lose some. >> still a good show. we minted on the set. >> there's a big story this weekend, as well, with big problems in the block chain and questions about the system and if it could collapse. >> it seemed to me that he was also signalling that apple is going to continue to strengthen its use of encryption in ios. because he said you've got to keep moving forward. not only can't we go back to ios 7, but standing still is not an

option. you think that was an attempt to not make it look like he's playing cat and mouse with the federal government, that he's really got our best interests at heart? >> oh, i think he's definitely playing that angle. but the whole entire argument doesn't quite have logic to it. if the ois can be delivered back door to the fbi, i don't know how that plays into the fact that hackers might be able to get into a back door inadvertently put in. the two arguments don't quite line up, beyond the fact that back doors are inherently problematic. >> i guess that helps if that's the argument you want to make. not sure if you're impressed yet by the new "house of cards" season. we're going to check out a one-month chart of netflix. shares up more than 15% and according to a report, netflix was responsible for more than 50% drop in viewership in the u.s. last year. now i saw you active on social media as always, looking at downward trends in tv watching. but what does that mean overall? that has to do not necessarily with how much people are viewing

content. but how that's being delivered and how it's being monetized. >> i absolutely agree with that. and what the trend is, the bernstein report shows that year-to-date, traditional viewership, doesn't count dvr and things the ecosystem is benefitting from. down 6% year-to-date. i looked at this barclay's report called the internet is eating tv. and in that, it shows that television, traditional television viewing from 2011 to 2015 has gone from four and a half hours to four hours and eleven minutes. internet, 20 minutes to an hour. so definitely tremendous growth in internet video viewing w. that said, the estimates around netflix are 5 million people actually will watch one of the new episode premier of "house of cards" in the first 30 days and that is not dramatically better than a traditional tv sitcom or something of that nature. so is a bit of a mixed bag. >> yeah. a good "big bang" will get you 15, 18 million viewers. >> yes. the issue not to be missed issin

evidently, it is newspapers, the viewing is going to all different platforms, as well. it doesn't mean people won't watch tv but the idea they're watching on a linear cable system, that is over. we are now in the hours of decline. we're in the twilight. >> that's where i take issue. >> i know. >> because you say it's newspapers. the thing that destroyed the newspaper business wasn't just the decline in viewership. it was the evaporation of the classified advertising category taken on by folks at craigslist. you don't exactly have an an al gous effect, and tv networks faster, and the newspapers were at the time when they were just saying let's put all the content out there for free but not figure out how to monetize. >> and i'll give a point too. pivotal has a report out this past week where they talked to advertisers and basically saying, nothing matches television for tech effectiveness and huge doubts as to what digital advertising are actually doing for them. which is why we are seeing the rates go up in television as we

are seeing the viewership go down. the problem is, there may not be any advertising as good as television advertising. but inevitably, the millennials and younger people are moving to the overthe top platforms. >> doesn't necessarily mean it's better but more want to buy. we're in the middle of a political cycle too. >> it masks the effect for people who don't pay attention to numbers. so a lot of wall streeters are saying, what are you talking about? the numbers are great. all these cable companies, cbs, discovery, are putting up great numbers. in the short term, because to your point, carl, there is a scarcity of inventory, a pop in prices. but long term, that will not work out. >> so there's a short amount of time relatively speaking, a shrinking amount of time for the traditional players to figure out how to monetize digital is probably the message, right? either that, or youent up with a bunch of advertisers trying to advertise to 12 rich people. >> right. >> and the other thing happening, the fcc decision that's coming down the pipe, which is the removal of cable boxes or bring your own equipment type thing will be a massive opening. and what will happen is, i

believe strongly, the apple tv will be the iphone for the tv set. the row cue will be the android for the tv set. everybody will have that. all the content companies will be putting their content on these platforms. ultimately, i think the cable companies have let us down. i think the guide interface so lagged behind the consumer interfaces, that's what caused the problem more than the pricing. >> some of us at comcast would beg to differ. >> i actually agree. before x1, comcast box and navigation system was so awful, i tried to switch off tv, got a comcast box, looked at it for about 15 minutes, took it back. >> yes. >> and went out and bought a tv. x1 is better but a lot of people still experiencing that nasty interface. >> in it catchup mode, for sure. >> thanks, john. >> see you later. when we come back, small cap names recovering. was federal governmebruary the ? by the way, s&p 2002, just about

45 points from break even for the year. don't go away.

the yea

small cap tech getting a reprieve from a terrible start to the year. is this rebound only temporary? take a look at these stocks over the last month. workday up 36%. twitter up 23. gopro up 37%. linkedin up about 8%, though i'll note about 15% off the lows of february. however, year-to-date, the charts are still ugly.

workday down 7. twitter down 15. gopro down 23. linkedin down a whopping 47%. now, the question, though, as we put to paul holland earlier is this rebound just sort of a momentary gust of wind? under these stocks? or is this investors taking another look and saying, wait a minute, okay, workday actually has a strong human resources cloud business, growing out financials, competing with oracle. who knows whether they will win. but they've got a shot. this stock is actually worth more than the dip we saw after that last quarter. >> yep. a lot of it may pivot, especially around what the dollar has done, versus last year where it seemed to be a one-way street to the pain side. but you have cited workday, i think a few times now. intraday reversals and the broader term. >> and in particular, because the pair that started workday, these were two guys from

peoplesoft, which oracle took out in the last cycle. they set out to build a company they could take public that would be an example to everybody who wanted to see how enterprise software would be done in the cloud era. if a company like that run by veterans built to last can't make it, that says something about the overall market, i think. so it also says something that this is one of the companies to rebound most strongly after the lows earlier this year. >> certainly on cramer's radar for a while, too. meantime, disney holding on to its winning streak. our julia boorstin is live in l.a. hey, julia. >> hey, carl. that's right, "zootopia" grossing at $74 million this weekend. that makes it disney animation's largest opening ever. even bigger than "frozen" which held disney's prior record when it kicked off a massive run in 2013. overseas, "zootopia" has grossed $67 million after a month in

theaters, the film drawing a remarkable 99% rating, nearly perfect, according to rotten tomatoes. exploiting across its platforms. with more films potentially in the franchise and consumer products and a presence at the disney parks. these numbers helping push disney shares a little higher this morning. now up about 1%. piper jaffray with an overweight rating on the stock, issuing a note saying, quote, we continue to be buyers of disney as we believe the robust film slate will bring significant valley across consumer products and theme parks." after concerns about espn started weighing on disney shares in august, analysts are now looking at whether that can be outweighed by strength at the studio. with "the force awaken" and "dead pool" released by fox, investors are taking a look at what cnbc's jim cramer called this morning, disney's other lever to pull. >> what strikes me about this, it's disney's animation, we saw

"frozen" do so well but "zootopia" out of nowhere. do we now have multiple engines here, pixar, lucas film, marvel and disney animation now, a reliable producer of hits? >> absolutely. i think disney animation has been back for some time. it had the success with "tangled" and "frozen" such a massive success, showed disney's ability to create something new from this very classic princess troeb and keeping alive. the princess a much more modern way. so i saw "zootopia" with my son this weekend. he loved it. and it was very different. it felt very contemporary and definitely shows that disney animation is another force for disney, in addition topics arrest. >> talking animals. what will they think of next? never done that before. anyway, thank you, julia. coming up next, super agent drew rosenhaus on the retirement and career of peyton manning. don't go away. owen!

hey kevin. hey, fancy seeing you here. uh, i live right over there actually. you've been to my place. no, i wasn't...oh look, you dropped something. it's your resume with a 20 dollar bill taped to it. that's weird. you want to work for ge too. hahaha, what? well we're always looking for developers who are up for big world changing challenges like making planes, trains and hospitals run better. why don't you check your new watch and tell me what time i should be there. oh, i don't hire people. i'm a developer. i'm gonna need monday off. again, not my call.

it is a big week for the nfl. marks the start of free agency and storied career for future hall of fame quarterback peyton manning. joining us, drew rosenhaus, once again to talk about football. there is a different story every day. good morning. >> yes, and this is a big one. >> it is. i'm just reading now, he'll be

the highest-grossing nfl player of all-time. >> yeah. and deservedly so. i don't know that you can think of a player that's had more of an impact over these last two decades than peyton manning, from being the first overall pick by the colts to winning two super bowls. just a tremendous teammate, advocate for the nfl. great first and off the field. he's going to be missed. you've got to take your hat off to him. he's going out in style. and this is the way you retire. winning a championship. obviously, being an endorsement magnet. i think he's making the right move. my instinct is that he would have loved to have played another season. had the opportunity or interest been there from the broncos. my guess is the broncos decided to move on and go with their younger quarterback. who they will try to sign, free agent brock osweiler. i think if the broncos would

welcome peyton back he probably would have played another year. but he is smart enough to know it's a lot better to retire than getting released. i don't know that any contenders would have signed him this year. and so this is a great opportunity for him to go out on top. and there is no doubt that he's going to be able to capitalize on that endorsement-wise. >> drew, it's jon fortt. i take a look at peyton manning and sort of his reputation, his manner. look at steph curry, also not a flamboyant guy. do those guys signal something about what it takes to be successful business-wise, off the field, off the court, at this particular moment in sports? or are they more of an anomaly? are we seeing sort of the era of nonflamboyance right now? >> i don't think so. i think, you know, sports, like anything else in our society, and actual at your, is made up

of different personalities and different individuals. i don't think this is a trend. peyton is a unique personality, and you know, he certainly is a guy who has been able to capitalize on that. he's been one of the most marketable players. he isn't flamboyant but definitely personable. he has a sense of humor. incredibly articulate and has had some outstanding endorsements and commercials and things of that nature. he'll be missed. his legacy is one in which, from my standpoint, just based on quarterbacks i've watched over the last 25 years, he certainly is one of the all-time greats. i think you would have to put him behind guys like joe montana and tom brady. but he's right there as one of the all-time greats, and i think in the top five in this generation. when i say this generation, within the last, you know, quarter century. >> yeah. his earnings are going to put him in the top six of all

professional athletes in the big four. so he's competing there with a-rod and kobe and garnett. you've got brady saying he's going to play until he's 100. i just wonder, this elongation of the qb's career. how is it? >> well, i've got to tell you, i think brady is still in his prime. and he's healthy. unlike peyton manning, who struggled with injuries this year. and was released by the colts four years ago. tom brady still with his team, the patriots, still going strong. he's still healthy. and by the way, i think last season was as good as any season he's had. i think he's still in the prime. he still has the velocity. that was something that you saw with peyton this year. didn't quite have the physical ability to make all the throws, due to the injuries. you could tell it had taken its toll. tom brady can still do it all.

i think brady is still at the top of his game, and i would be shocked -- if he can stay healthy, he's got at least two more years left in him at a very high level. >> certainly one of the great rivalries among qbs in the history of the game. we're going to see what manning says today. drew, good to talk to you. we'll see you soon. >> outstanding. look forward to it. >> drew rosenhaus from rosen haus sports. when we come back, the man who invented e-mail, his legacy and how he changed modern communication.

quick news alert for you. dominic chu is back at hq. >> carl, what we have right now is advise yum asset management, founded by jacob gottlieb, targeted for an investigation by the u.s. justice department, as well as the s.e.c. this according to a letter to investors from the firm. among the things the government is looking at, they're looking at the possible use and information used by a consultant there. also, the valuation of certain securities in a credit fund that was closed back in 2013. so, again, fairly prominent hedge fund. ja jacob gottlieb under investigation by the u.s. justice department and s.e.c. back to you guys.

>> thank you very much. the man who invented the e-mail and at sign, died at age 74. he decided to figure out a way to send electronic messages back in '71. sent the first e-mail to himself. he had two computers side by side. before his invention, electronic messages could only be shared on limited networks. people are paying tribute on social media, including gmail, who tweeted, it thank you ray tomlinson for putting the at sign on the map. #restinpeace. talk about having impact. >> yeah. kids today don't know, carl, but that at sign before the web browser came out, it was like that carrot over the 6. it was like, what is that even for? now it's punctuation like a period or comma. >> unbelievable part of our daily lives. brent has set a new high for the year as it cracked 40. that's key. oil at $37.59. art cashin writes traders are in

awe of the serial short coming and material shocks, s&p is pulled within 2% loss for the year. >> in mid 20s a few weeks ago. >> unbelievable. a chore for the afternoon. let's get back to headquarters and the half. ♪ all right, carl. thanks. welcome to "the halftime report". the commodity crush and whether the worst is really over. with us for the hour today, joe terranova, jim laboren that will, pete najarian, and. from crude to copper and almost all points in between, commodity stocks are been rallying, leading some to think the bottom is in. the names which have shot higher in recent weeks will keep going. but is that really the case? the debate begins now. joe terranova, is this for real? almost every space, wti since jaar