on "squawk alley." ♪ hamilton, america sings for you ♪ ♪ do they know what you overcame ♪ ♪ do they know that you will overcame a world ♪ ♪ and the world will never be the same ♪ >> our congratulations to "hamilt "hamilton" a record 16 tony nominations today. good tuesday morning. welcome to squawk alley, and kayla is out, but jon fortt and myself at post 9 with the dow down 400 point, and so later we will talk to jay conn calcaneus and more about why this market is moving and why. over to you, bob. >> well, the sectors down here, and the sector leaderships are the ones getting hit. and the big movers are energy, financial, materials and health

care so far in the quarter. they are experiencing a modest pullback. if you are looking at the leadership so far, there it is, and the energy, and the financials, and the materials and health care, and the s&p is largely flat, and they are pulling back on the stocks that have made the most money, and this is a garden variety pullback, and this is 2100, and that is what you have to keep in mind here, and at the end of april 2100, and 51 point, and this is a 2% pullback, and this is nothing terribly noticeable, and i would note that the weak dollar is not helping the commodities, and the weak china manufacturing numbers are putting the pressure on commodities, and that is the bigger story, and looking at brazil, and south africa down big, and exploration of the production down on the weak oil numbers that we have been seeing in the last couple of numbers and oil is on the downside. so it is the commodity play and the weaker china more of the big story here. and also, iron/ore gyrating all

over the place, and we had a big run up until recently, and now iron ore is gyrating around with the metals, and so clips, and billiton, and so many more trading in london and down 8% here. this whole china play is the big story, but here in the u.s., carl, it is a garden variety pullback for the last few day, and so we will keep an eye on, that and see if it develops into something more serious. >> all right. thank you for that, bob. and more tech news, an angel investor jason calcaneus, and guy kawasaki. i see the tweet, i'm positive on apple, and i have an idea or two, and what do you mean? >> well, i the think that obviously, apple is extracting every ounce of value from the iphone and when you see them launch something like the iphone

5 again, and tim cook is talking about india and china and finally talking about the services business, and how it could be meaningful, it means that they are extracting every ounce of earnings and profit out of that device. the big issue is that the m&a crisis over at apple which is ha they are really a victim of how brilliant they are. they think that they are better at building things than everybody else which is true, but you can only build so many thing, and they are up against google and facebook and a lot of companies including microsoft which are fearless on the m&a front, and apple, the most creative thing they have bought, and the most aggressive thing they have done is to buy a headphones company, and in other words, they have to get the act together on a m&a front and it could be transformative for the company. >> guy, where do you fall when it comes to apple, and tim cook's thought is that we are in

a normal iphone cycle, and bad comps over the year, and this is going to be recovering in short term. the apple competitors say, no, the smartphone is in secular decline, and maybe the devices won't matter again for a long time. it is all about the cloud and intelligent bots. do you think that hardware is going to be mattering less in the medium and the long term than it has in the past, or is this a short-term cycle that apple is going through? >> i think that there is an overreaction to apple's perceived lack oft meeting the expectation expectations. at some level, it still made $10 bill yorngs and the most profitable company, i think in the world. so yes, there is an overreaction, but however, that said, unlike jason, i don't believe there is an m&a crisis and that is the first time i have heard that complex term. there is a crisis of the fact that apple is not perceived as leading innovation. there are things like, you know,

bad news. so they introduce the sc model iphone, but who among us said, wow. you know, let's drop the iphone 6s and go buy that phone. that is the expectation for apple, and better or worse when apple has a press conference we expect to go to want to stand in line for the apple store, and it has not happened for a while. that is the fundamental problem, a and so when apple makes great hardware, it does well. >> yeah, but here's the thing. if you are looking at the other companies they are up against, google bought android and youtube and then you look at something like facebook buying instagram, and oculus which is a big wow-type moment, and then there are two ways to innovate, buy something innovative in the world oculus or build it yourself. i'm with guy, and you go to the apple store and the last couple of times i broke the screen, i

went to the store to try to give them money, but there is nothing there to buy, and nothing new or exciting, and it is overblown, and the stocks is trading eight times the earnings if you take out the cash, but if they got krcreative to buy stuff which ty should have made a run at tesla, and they could have bought oculus or something, and they have to get into the mindset that the smartest people in the world are not just at apple, and in the aggregate there is much more information and products outside of apple. and if you look at the jim cramer interview with tim cook, and great get, and talking about maybe a little bit more inquisitive and start to buy some stuff and knocking on the doors, because you can get growth through the acquisitions. and zuckerberg is the least creative person on the planet, and yet amazing for taking the founders for a walk to get them to sell the company, and you have instagrainstagram, and wha and oculus. >> and you mentioned jim's interview with tim last night,

and it was good, and they talked about all kinds of thing, service revenue. here is a quick taste. listen to this. >> whip read the stories, it seems like people the think it is over. how could it be that you can't have this ever or the ecosystem, but dead. j yeah. i think that is a huge overreaction. look, we just had a actually incredible quarter by absolute standards and $50 billion in revenues and $10 billion in profits. and to put it in perspective, $10 billion is more than any other company, but not up to the street's expectations, clearly. >> and jason and guy, tim cook points out that structurally as we pointed out, they don't show the cards as zuckerberg does at the fa or the google does talking about the moon shots. so are they paying a price for

that, for better or worse? >> well, it is different strokes for different folks. the fact that tim cook would go on jim cramer's show is very interesting data point, and it clearly means they are concerned. if you ever see john ive on jim cramer's show, you should really be worried. >> we don't have to worry about that. >> and you know, what i wish what jim had asked when he started to talk about india, and yes, india is a large country, and obviously growing middle-class and all of that stuff, but the gdp of per capita of india is $200, and the gdp in the middle-class of america is so great that maybe $700 phones won't work in india. that >> and tim cook's answer to that is, that is why we came out the $400 phone, and india not at the

level of china for quite a few year, but it is that the addressable market of the smartphone is going to grow. that is his side of it, and the investors can make up their own minds. jason, i am wondering what do you think that you mentioned tesla, but realistically, aside from that, what could apple have bought in the last year or two that would significantly add to revenue and earnings, because i hear people say that about the m&a and about facebook and google, and google in particular has done some plenty of bad m, and a as well, and the issue is that the iphone is such a once in a generation product, i don't know what you could buy that would move the needle compared to the iphone slowdown. >> yeah, absolutely correct, that there is nothing to buy today to add massive earnings to the greatest earning machine ever, and so you are the iphone, and the greatest earning machine ever, and you don't compete with

that, but the little youtube acquisition, and $1.5 and now it is worth $6 billion, and so you can buy these things, and then use what tim cook and apple that are great at is supply chain, and the amazing 14,000 stores. >> and how do you know that they are not? >> well, they have not bought anything. >> they are buying 15 companys a years, but they are not spending a lot of money, but one of those is -- >> well, they only buy the enabling technology companies, and they won't buy a company that will show them up, and not a company like youtube or oculus that is more innovative them than them, and it is okay to be a brand and a company with a couple of brands in it, and they bought beats. >> and think killed it. they bought it, and we never heard of it again. >> they have to get better at the m&a is the highrd ore bit here. and they have a huge opportunity with the iphone 7 and with specifically the vr and the ar and my gut tells me that they

are perfectly positioned to do ar and vr, and augmented reality when you put the digital assets on the real world like through sunglasses or vr when you replace the real world, and that could be amazing, and the itonephone 7 is a power house with the processing unit, the gpus is powerful, and what samsung tried to do with their vr gear, and the apple store, and the great catalog of the games and the developer company, and vr could be a huge hit for them, and i would expect that iphone 7 would have a component to it, and maybe sunglasses with ar, but maybe a couple of aces up the sleeve, but guy kawasaki is absolutely correct, when tim cook is out trying to defending

things, it is a big deal. >> and is it home grown to the extreme? >> yes, ih was invented at apple, but to this point, it has served them quite well. how can you argue, right? >> yep. and as we know that cook's horizon, time horizon is a little bit longer than most people's. and guy, and jason, that is a great discussion, and we will see you next time. he is called the most hated ceo in america, and martin shkreli is back in court today. and we will talk to david solomon who is the head of the investment banking at goldman saks, and he is going the join us. and the dow is down closest to the worst day in about a month. we will be back in a moment.

♪ a lot of individual names to watch today. dominic chu has one in particular, dom? >> well, the shares of twitter are the ones to watch and a casualty of the market sell-off today. the stock fell to 3% at 13$13.9a share, and right now, at $14 which a fresh all-time low. the shares of the networking site have fallen since reporting d

disappointing earnings, and twitter also reported weak active userers and lighter guidance for the second quarter as well, and the stock is below the november 2013 $26 ipo price, but the analysts have still reduced the price targets, and the price targets on average are $18.72, and it is 32% upside from here, and more than half of the analysts who cover it, jon fortt, they have a hold grade. >> okay. thank you, dom. and he is called the most hated man in america, and former pharma ceo martin shrel -- shkreli. >> it was a quick appearance for martin shkreli after they say they may add more counts than the 17 counts he is already charged in. he is tu back june 6th. moments ago his attorney and he left the courthouse, and a few brief words with the reporters.

have a listen. >> today was a good day for martin shkreli, and we are before a judge who clearly understands the complexity of preparing the case, and we are pleased that the judge was willing to work reasonably for the scheduling. and substantively, we don't believe that the indictment will change any way that affects mr. shkreli in any particular fashion. >> brafman would not comment on the new indictments, but he called the charges on the table highly defensible, and they have plead not guilty and plan to continue the trial. we will bring you more news, and potentially more securities fraud, and back over to you. >> meg, watching the shares of apple, and hoping to break that eight-day losing streak and otherwise across the board right now.

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apple ceo tim cook sat down with jim cramer last night in an exclusive interview talking about the stock market and the innovation pipeline. take a listen. >> this is what i see. we are in an incredible market. the smartphone market eventually everybody in the world will have a smartphone, and the penetration to day is in the 40s and long way to go, and emerging markets leek india, and their penetration is zero. we have great innovation in the pipeline and new iphones that will incent you and ore thises who have the iphones today to upgradet, and we will give you things that you can't live about that you just don't know about today. >> and here to discuss the apple innovation is a former pr rep,

and also an analyst with us. and thank you both for being with us. jeanne, let me start with you, the counter argue for tim cook is that you said the same thing about the ipad, and it would be bigger than the pc, and look at the customer loyalty numbers and the people switching from windows to the ipad, and yet it is de-klining for two years straight now, and why is the iphone different this time? >> well, the iphone is different, because people are using it more, and it is a different category, and the behavior is more e predictable than the ipad, and that is a new category, and a bunch of pent-up demand initially, and it has died off. the iphone has been around for ten years, and so we have predictability in the upgrade, and the next wave of the people upgrading and the echo of the iphone 6 is 30% bigger than the 6s, so i think that we have more data the around how these cycles

are playing out, and that is the biggest difference of that and the ipad. >> and andy, it is sort of going to drive me nuts that people like to say that the innovation is gone from apple. they are not wowing us anymore. people have been saying that for apple as long as i can remember, and it is the oh, the one more thing is not good enough or the innovation that they have is a copy of something that somebody else did five years ago and copying palm, and copying the fill in the blank, so why is apple constantly facing this kind of criticism after having done so well? >> well, when you are on top of the game, and as they have been on and off for over 30 years, they are gog the to be the ones who get attacked frequently. it is a bummer, but apple always comes through, and they come through with the next big thing, and they will do it again. >> and jean, you wrote not too long ago that the companies that could meaningful change apple's

growth picture are probably too large to acquire, and how can something be too large to acquire given the cash in. >> well, if you are looking at the good companies amazon and facebook, and they have the cash, but it is $200 billion-plus valuations, and even the smaller, and exciting stuff, 10 or $20 billion in valuation is not big enough to move the needle. what the investors need to think about with the innovation, and the m&a question comes up, and the tim cook did talk about the innovation piece, they are going to be more aggressive and make more acquisitions, $5 billion, $10 billion, but they are not going to be things that move the needle next year, but the acquisitions should comfort the investors that there is hope that they can innovate into the new categories, so there is some enlightenment in terms of when

the deals happen, but you need some patience of when it impacts the mold. >> andy, i am looking at the apple ten-year stock chart. it is funny to me, because ever since late 2011, 2012, there have been these swings, and if you believe in apple it has gone way up, and if you believe too much, and dumping it when it goes down, and you dump too soon, and how much of this is the volatile/apple being a company that people are pa passionate about? is this to the overreaction >> yes, i agree. apple is a passionate followers and a cult company which is fabulous and the cult is bigger and bigger, and now we have android people switching, and the developing world to look after, and we have the great opportunity with apple for growth here and all over the world. >> jean, you break the four

suspects into vr, automotive components and content. can you put those on some sort of of the hierarchy, and who is most likely, and what companies most likely within that? >> the company i want the to to see is magic leap. they have a lot of expectation, and they have not shown a product, but it is called the mixed reality which is a jazzed up term for the augmented reality, and the true merging of the computing and the real world. this is something that zuckerberg is passionate about around the last round at $3 billion, but to me that is a golden company to potentially acquire. in the awe the tomotive side, tesla is thrown around a lot, but one thing about tesla, they are a manufacturer, and apple is a designer, and they don't manufacture, so that fit may not be there, but the concept of 500 people working on the titan project, and that is m&a that is a rich area for apple as well, a

and to some extent, the components, and talent. and the biggest comment is that they will buy netflix, but we don't see it happening, because they have the benefits of net flikts today. >> and andy cunningham and gene, thank you both for joining us. no apple tv? >> no. >> and a kocouple of the cnbc interviews that you want to see. david solomon is coming up.

good morning, everybody. i'm sue herera and this is the cnbc news update at this hour. the police in spain have arrested four people on the suspicion of spreading islamist propaganda. the guards are taking positions outside of a building before raiding the apartment. syrian television says that dozen of people have been killed or injured after rockets were fired into alep e poe. one of the rockets hit a hospital that killed 24 people. more than 60 civilians have been killed in the past two weeks in that city. a new poll has hillary clinton beating both donald

trump or ted cruz in a general election. clinton is besting trump 44%, and beating cruz by a 34% tally. >> and leicester is celebrating their team's first english premier title. this is is at tottenham topping chelsea, and watch those fans watching the patch at their local pub. it was 5,000 to 1 shot. and that is like rutgers winning the ncaa football championship. that upset cost the british bookies millions of dollars. that is the cnbc news update at this hour. back downstairs to "squawk alley" and a fantastic match. unbelievable. >> great sports story. thank you, sue. we have session lows here on the d dow. we are down 220, and really only a few components are in the green at all. pfizer who had the earnings this morning, and amle trying to hold with procter and mcdonald's, but

jpmorgan and goldman are among the laggards. and now, across the uk, it is back in session after the may day holiday, and weak china and pmi and pulled the stocks down the three-week lows, and miners and others trading. and disappointing trading from commerce ban, and ubs, and others weighing on the banks, and ubw missed on q 1 and sees the continuing sales into the summer, and we will keep an eye on that one. and now, let's head out to the global institutes conference. >> yes, i'm joined by david solomon, the investment banking of goldman saks, and we were looking at the numbers, and european banks and reminiscent of the first quarter to get a tough environment to get anything done in the capital markets. and so are you concerned at all when you see the european banks getting hit like that?

>> well no, doubt that there were headwinds across the businesses in the first quarter, but in terms of the banking business, in january and february things ground to the halt, and the capital markets close and very little equity issuance at all, and very few ipos and picked up in march, and again, get activity, and refinancing activity was okay, and in an environment where the confidence is shaken by markets, it is going to have an effect on the m&a activity, and we have seen it so far in the first four months of the year, and running down 20% on the volume basis in terms of the m and a. >> and last year to be fair, it was a record, and incredible year, and in the conversations that i have, and this is something that i follow closely, there is what does seem to be a little building over the last six weeks that are there is more activity to come, and is that what you are seeing at goldman? >> yes. i think it is very, very fair. the dialogue that we are seeing with the ceos is very active,

and the overall environment that i think that has drifen a lot of the m&a activity is rooted in the fact that growth is sluggish, and if you are the ceo trying to pull the different levers to drive your opportunity set, buying growth is one of the levers, and ceos want to do that, and in this environment, and shareholders would like them to do that and to deploy capital to find growth, so if the market environment is reasonably balanced we will see a pickup continue as we go through the year, but probably won't be what we saw in the second half of last year. >> and unlikely too, i would think. and one thing, and obviously, borrowing costs are low, which adds fuel to the deals to be created, but one thing here, the acquiring stock prices are not as rapidly growing as last year. and when analysts see that, they

say, well, is ate key that i don't want to go into the water, and so that can make dealmaking a lid on it? >> yes, no question that last year, and throughout the year, the market was rewarding the acquirers in an unprecedented way, and we are not seeing it at the same moment, and that is a backdoor, and another factor creating the caution is that it is harder to get the deals through the regulatory process, and there are some examples over the last 18 months, and so if you are a board or ceo going through one of the consolidating trans transactions with a regulatory risk, it goes into it, and puts a little dent in the headwinwind. >> and capital markets you mentioned it, the first quarter was very tough, and goldman's numbers proved it as did your competitors. >> yes. >> and there was talk of the recession at the e be gining of

the year which seems to have died down, and what is your sense of tone right now against the clients and the willingness to start to issue on the equity side debt that we know and if you could get it done, you should. >> and no doubt that the tone is improve and in the first quarter, things are connected and there is a strong ent sentiment thsen -- sentiment that we are headed into the recession, and if you are talking about ceos, it is kcon next and tracking okay, an the growth is not as robust as i would have hoped at this point in time, and there no question to be grinding out the organic growth. the equity markets have started to the open up a little bit, and we have in the last couple of weeks seen a handful of ipos done, and some have worked well, and some are done and not traded as well, and there is some look around that, and pent up ipo activity that should start to work its way through if we can see the capital markets behaving the way they are behaving.

>> and what are your expectations as we head into the summer, and the presidential campaigns are heating up, and the views of the two candidates? >> well, some presidential elections to the all extents breed uncertainty, and the markets will watch it, but fundamentally, we are grinding out the growth. barring some dislocation or geopolitical event, we expect them to grind out. >> and we have weird stuff going on and including the negative interest rates. >> yes. >> why is not every corporation trying to issue debt in europe when you see unilever saying, well, we don't have to pay interest for seven years? >>le with, it is more complica e complicated than that because people will fund against the revenues, but no question that people have been taking advantage of the funding opportunities that have been existing, and candidly, one of the things that has happened over the last five years is that the people felt that the rates could not go low, and terms out

the maturity, and so the corporate balance sheets from that per spkty are in good shape. and the benefits of the tailwind to help the m&a activity here is that the funding costs are very, very attractive. if you can find the deal to put together the deal to capture cash and get that transaction done is very, very strong. >> and of course, if you are looking to do something overseas, you will talk about the regulatory, and the inversions also have a potentially impact on those who might have thought about it. >> yes, no question that the action has been a headwind, too. it is another regulatory headwind, and not just that the rules change to inversion, and in making the rules, they target the yield after the fact, and that is, you know, that is really going to create a little bit of uncertainty and pause. >> yes, a little fear a wway fr goldman saks and a lot of banks as well. >> and from the investors, there

are a bunch of the investors invested in the transaction, and people who were harbing the transaction also experienced some volatility, and so all of that, all of it is -- there is nothing positive about that of the context of people looking at moving forward of what type of transaction. >> and on the interest of personnel, i have known a lot of the transactions and the senior bankers, and you do move them out after a certain age, and making room i guess. but i have noticed a number of bankers ending up at different places where they are significant competitors you, and is that concern, and i won't name names? >> well, look, i want to have a terrific platform, and great client franchise and we are and having been the leading m&a adviser, and leading capitals franchise, and i think that we have the best team on the street. occasionally people move on to do other things for a variety of reasons. >> boutiques are representing a significant competition, and i can see some deals where the

boutiques and guys not advising on the capital market side. >> there are handful that end up in the boutiques bush looking at the size and the scope of the franchise on a global basis, aed on the serve the client, and one thing from my partners as they are looking to serve on the platform if you think of advice, resource, capital, and global reach, it is super important to our clients, and people who can operate on the platform appreciate that, and we watch the competition just like everybody else, but we have a good platform to serve the clients well in the conexthet of the banking needs. >> thank you, david, for stopping by. >> yes. thanks for having me. a always good to see you. >> appreciate it. the ceo of investment banking at goldman sachs. >> and the election h cycle, and then looking up at red across

the booard. right now, the stocks are off of the lows, and the dow is down 193 point, and the s&p is down over 1%, and nasdaq is the worst of the bunch down 1.25, but rick san ttelli, what is on your min today? >> well with, you know, many market participants, sources, large traders tell me how the markets move is sometimes as important the fundamental as the drek shawn they are moving. if you want to see volatility, look at the fx markets. after the break, we will talk about the fx effects.

of the bunch down 1.25, but rick after the break, we will talk i like the idea of using artificial intelligence because we are so short on the real thing. >> and it is incredible. >> and active investing is to be certain to lead to certain results. >> and what are we like as a

major shareholder, and that is the fair indication of ackerman. >> we are always looking, and acquire within every three or four weeks. and now coming up, the markets selling off, and we will debate if the commodity trade is on the last legs after a big run. and now, tim cook tells jim cramer that the street has it all wrong when it comes to the earnings. and is he right? and the investor of orbimed is coming up as well next on "squawk on the street ". >> and our burst of the bunch with bertha coombs. what are you seeing? >> well, the nasdaq broke the seven-day losing streak yesterday, and today, it is less than 1% from the correction t territory and down 9% from the recent high. and notwithstanding apple's gains, and today, the caps are breaking out. apple is looking to braeak the

longest streak in more than 0 years, and one of the few stocks today that is bucking the trend if it closes down again today, that is ten straight day, and it has not done that in an awful long time. and yelp is biccing the trend, and greenlight capital saying that it is taking a stake that ye yelp stock had suffered because of missed expectations, and anxiety over a documentary coming out, but david einhorn does not believe it will affect them. and now, sarepta theerapeutics is extending gains on the product gains that the muscular dystrophy drug could be approved. and also a generic opioid drug as biotech says that they are going to be spinning off the hemophilia unit, and not sure what it will be called, and twitter is the big loser stock

of the derrick and hitting the all-time low, and the stock debuts at $26 a share back in 2013 and hitting the all-time high in december of more than $74, and today, the market cap is 9.8 mi$9.8 mill yon. >> let's go to rick on the santelli are report. >> well, there are many ways to judge the economy through giant test tubes, and we have seen it buying it on low interest rates, and there is direct intervention in the markets like fx although we have not seen much of that late lately, and with know that the stock market changed directions for the better notwithstanding the last couple of sessions right around the second week of february, february 11th, and anybody who reads up on the markets like most of you

watching or listening on the satellite radio know that there was a talk or agreement among central banks with regard to how they are going to to be moving forward or the fact that the dollar was integral in the notion that if the fed was going to normalize, the dollar would strengthen to put pressure on various aspects of the dollar-dominated financial stru structures, and of course, maybe add extra volatility in places like emerging markets, but that is not what we have seen. and as a matter of fact, anybody who has looked at the charts as of late, the dollar is going straight down in many respects whether it is the dollar index which is heavily eurocentric, and the level of the euro and how many handles it has move and the dollar yen, and even the australians and the central bank, and the cut rates was surprising to many, and face it the commodity economy, and don't confuse the economies bottoming with the fact that they don't have sell-offs, because bottoming means a lot of

volatility, but you u won't revisit the lows burk maybe consolidation. and build a wooden base which is what the technicians say. and i believe that is what is happening. but the more traders i talk to, the more large bs institutional heads i talk to, when it comes to fx, it is better in confidence building. whether the central banks are playing with the currencies or actually trying to control the outcomes in the way they have historically, i can't tell you to answer, but what i can tell you is that it seems though as if you wonder what is happening on in the stocks or the dow or what is happening in japan although the markets are closed there today, and the more increased activity in fx, the more nervous it shows up on the investors the more that the equities are suffering, and that is something as a fundamental, you need to pay close attention to. carl, back to you. >> appreciate that, rick santelli in chicago. >> and when we come back, you

can see across the board, most of the averages are down 1%, and the breadth is no good. the one and only art cashin is going to join us. and tomorrow, we will have leslie moonves tomorrow on "squawk on the street."

rough day por for the marke and as we were told here on post 9 ubs is down, and art cashin

with us, and you are noting european markets are closed for the moment? >> yes, it is going to give them an opportunity to pull the act together over here, and the bulls need to get off of the lows as i wrote in the morning comments before the opening. it is important that they not close below 2062, and that is going to be changing the momentum somewhat and put the bears back in charge. i think that we didn't hear enough people talking about the weak pmi in china. and that is sending the commodities in a tail spin, and the currencies have been the story of overnight. i mean, the yen around 105, and you have euro up around 1115, and these are dramatic moves -- 115, and these are dramatic moves and they have the market all akilter, and tokyo is closed the equity market, and it is going to be remained through thursday for golden week. that is going to be add iing th

volatility through the week. >> and is the indication of japan the markets are going to be exhausting the boj's efforts? >> well, i think it is. because there is no way with the markets that are closed there, there is no way to release some of the tension. if the yen keeps going up, so people will then have to take positions in other markets around the globe, the old, if you can't sell when you want to sell, sell what you can sell, and that is going to have a negative effect and perhaps bring up the volatility. >> we had the period when china was driving the markets, and oil was driving the markets, and now above $40 a barrel on the oil. what is driving the markets now? a bunp of different things, the commodities, currencies, et cetera or a connection of something in particular? >> well, it is not one thing, jon. it is a multiple, and what you are having is people trying to decide which way to go, and i

think that oil remains in important, and it will remain even more important should it break 40, and it will really reassert itself relative to the negative influence on the market. so for now sh, they have the fingers krosed and frustrated by the markets closed and are the therefore the volatility is pushed from one nation to another just because of the closures. >> and seasonally, do we read in into, i mean, is may supposed to be like this? may has not been down for a few years. >> i know, but there is another crazy syndrome that we have, and we talk about the new money for the new month, and may historically when it is up more than one half of a percent on the first day, it has a very high percentage of them rolling over, and having the next several days in the sell-off and then it looks like this year we are following that pattern. >> why isn't this dollar strength doing more for the multinationals, and is it the dinic many that you said, sell

what you can. >> yes, and people are unable to gauge how it is going to fit. in europe, we have seen in particular auto mmakers and exporters got whacked around pretty good, and it is hurting the financials and several others, and so the currencies, when they are this extremely volatile, they tend to be disruptive of the markets. >> and so far, what is thing takeaway of the earning season, and how much of these past few day days of volatility has been because of that? >> well, i think that there has been, and i think that the bar was set very low. so decent amount managed to beat the bar, and probably the best thing about it is that more than half beat the bar on the revenue side which is something that had been battling to do, but rick san telly had a very good piece, and it may have been yesterday talking to bederman about the corporate buybacks are coming

down, and no investment money coming in, and people are continuing to withdraw the money from the equity funds, and so we have to think where is the stimulus from the rally coming to? >> yes, the buybacks are lost the magic. and good to see you, art cashin, always good to see you. >> up next, as we are going to break, the look at the top losers on the dow. jpmorgan is down 2.5%, and united technologies, and goldman sachs are leading the way lower. we are back in a moment.

pfizer is one of the few gainers today, and meg terrell has made her way back to the set. >> we were talking about the treasury actions to curb inversions, and the fed said they would not pursue another one and the government has said that they don't want to do that, but there is a concern about the message sent to businesses that the treasury can step in without changing the laws and change the rules which leads to instability in business. >> nice guide on the year at least as well. part willy because of the light burden on the front. >> yes, they were encouraged to see a good quarter after this instability basically that is

caused by the allergan. >> yes. and product up 17, and the best performing dow on a day that is not working. busy day for you, meg. >> thank you. and that does it for us at "squawk alley" and we go back to head quarters with scott wapner. carl, thank you so much, and welcome to the "halftime report" i'm scott wapner. the trade this hour is the commodity rally over? joe terranova, and stephen we s weiss, and josh brown and pete najarian. and now, with the are reaction of both of the moves, and joe, you made some bug moves, because you do think in fact that the commodity rally is done? >> yes, history is repeating itself, and 2016 is the same as 2015, and