canada and to mexico. so the trade in the motor vehicle industry is very important both in terms of imports and exports to michigan and other midwestern states. >> take a look. no state has more at stake with nafta than michigan does, but the treaty still very unpopular here. >> scott cohn live from detroit. thank you, scott. and that's it for us here on "squawk on the street." dow down 208, tech getting slamm slammed. that sets us up nicely for "squawk alley." carl, over to you. >> sara eisen, thank you so much. good morning. it is 11:00 a.m. on wall street. a lot going on, dow down 209, s&p down a full percent for the first time since -- well, in 74 sessions. and this is the worst day for all three indices since october 11th. mike santoli joins us here at post 9, along with jon fortt and

kayla tausche, to talk about the market impact. the president of the united states this morning commenting about the overall stock market. >> yes. >> and how much people who bought in since the election have been rewarded. your thoughts. >> it is true. i mean, there's no way to get around the timing of it all, but i've been sort of saying a lot had to come together, both with regard to policy and policy hopes and outside of that for the market to do what it's done since the election, as many people have commented. ah all of the leading indicators turning up, earnings pointed in the right direction and bond yields globally going up. all this fed into an idea that things were getting better. and then you had the overlay of there will be business-friendly policy coming out. and i think it did keep investors focused on this story line, that yes, things are getting better now, but maybe we could even count on some help down the road. now, what happened over the weekend and what happened into today is you definitely had a deferred kind of maybe a need for a pullback, right? we've been talking about how calm the market has been. you had the vix plummeting ten. people talk about how low that

is. you had dow 30,000 on "barron's" cover this weekend and talk of heavy insiders selling. all these things maybe gave people the idea that maybe the selling has sort of built up to a certain degree. >> but insider selling always happens after earnings reports. >> yes. >> by law, that's when it has to happen. but earnings were one thing that were supposed to provide an added lift to the market. are investors underwhelmed? >> i don't know if in aggregate they're underwhelmed. i do think that most of the good stuff for earnings is supposed to happen future quarters. we're talking about a 5% year over year gain in earnings for the fourth quarter now being reported. that's good. the beat rate is okay. but i feel like a lot of that was baked in. and i think the market is telling you what we've gotten so far was baked in. and again, i think this feels worse, 1% down, because we haven't had it in a while, but honestly -- >> we're out of practice. >> i don't want to say kind of the static about the immigration policy and all the rest is not a factor. >> right. >> just that it's not the dominant driver. >> what do you make of how much a lot of these techs are down

compared to everything else? you have major indices overall down 1%, but netflix is down 2%, google/alphabet is down 2%, tesla's down about 2%. some of the companies that have spoken out more about this immigration ban down, etsy closer to 3%. >> no, jon, i definitely think there is an added factor, especially when google is down 2%-plus this morning. that's a stock, look, the earnings are out. we digested the earnings, kind of know where they're at, and not just because they've been vocal, but because is this really to some degree a burden on business? and is it turning into something where the trump administration, at least for certain industries, is going to be a hindrance and not a help? >> well, there's the question of whether it's a hindrance on operations. >> yes. >> but there's also the debate we've had for months, and that is whether there is a grudge trade. we used to talk about it from candidate trump, right, on twitter or wherever. now the question is whether it still exists at the present. >> maybe people are trying to make that leap. i think it's possible. i don't know exactly what form

that would take, necessarily -- >> other than a shout-out on twitter. >> exactly, in terms of a shaming effect or something like that. >> right. >> or maybe, look, we're not going to listen to what you have to say about other policies, tech-oriented policies or anything down the road. also, the nasdaq 100 has been the leader year to date, right? so you have had basically people saying, look, things look like they're okay over there. maybe there's more money to come out of there. >> there's a sense that there's a distraction for the president and for his administration from the backlash that he has gotten from some of these executive orders. on the flip side, how much distraction do you think what's coming out of the administration is for ceos in this country, where they can't focus on day-to-day operations because they're trying to think long term what their business even looks like? >> right. they can't focus, or at least they can't start to plan for things like heavier capital investment if we're going to get a lower tax rate. even though this stuff was all very notional. i do think it's something where you can't just step back and say, yeah, sure, there's a lot

of rhetoric out there, but when you really cut to the chase, it's going to be about deregulation and tax cuts. that was the wall street line. the wall street line was gary cohen's there from goldman sachs, going to keep this thing on track, going to move it through to sort of the nut of what we want. and maybe the priorities are, in fact, what the priorities were in the campaign, which is this stuff that's being enacted so far. so again, i think we overplayed trump as a force for the rally, and we may perhaps overplay it if we get a severe pullback. >> as you said on twitter, there's a natural symmetry to the universe. >> yeah, look, it's the obvious story line in front of all of us, so that's what you latch on to in terms of the market moving. >> thanks. of course, leaders across silicon valley speaking out over the weekend about the president's executive order on immigration. our josh lipton is out west at one market with some details. hey, josh. >> reporter: well, carl, perhaps no issue is more critical or personal to silicon valley than immigration. immigrants play a key role here,

including running some of the most iconic tech companies like goog google's sunneder patchi who sent a memo to his employees saying it's painful to see the personal cost of this personal order. but it isn't just talk. tech companies are now taking action. they have definitely begun one of the most vocal on the issue. for example, google has now started a $2 million crisis fund that can be matched with up to $2 million in donations from employees. that's $4 million going to organizations like the international rescue committee and the immigrant legal resource center. and google co-founder sergey brin, who immigrated to the u.s. from the soviet union, even took part in protests at san francisco international airport over the weekend. start-ups also responding. lyft co-founders john zimmer and logan green will donate $1 million to the aclu to defend the constitution, they said. for his part, airbnb's brian

chesty said his start-up would provide free housing to refugees and anyone not allowed in the u.s. and uber's ceo being vocal on the issue as well, creating a $3 million defense fund for drivers who may be impacted by the ban. tech investors also making their voices heard. chris saaka, who called trump's executive order destructive and inhumane, donated $150,000 to the aclu. guys, back to you. >> josh, thank you for that. busy weekend for you. joining us for more on this corporate reaction over the weekend, aspen institute president and ceo walter isaacson, "vanity fair's" nick bilton. gentlemen, good to have you both on an important day. good to see you. >> thank you, carl. >> walter, i'm sure you heard our conversation about these ceos and their reaction over the weekend. are they doing the right thing, those that spoke out? >> yeah, they're doing the right thing morally. they're doing the right thing economically. and they're doing the right thing for their shareholders and their company. you can't have a thriving tech industry that's not integrated into the world economy. and whether you look at sergey

brin, or as tim cook said, apple would not exist without immigration. that's literally true because of steve jobs being the son of a syrian student and then immigrant. and likewise, from the top of microsoft to the top of google. you really can't destroy the h1b visas, destroy immigration into this country, and take on refugees that way and expect to be part of the global economy. >> nick, silicon valley has been more about the free flow of brains versus some other industries being about the free flow of goods. yes, physical movement is important, but a company like google or facebook more about getting the best people in the places where you want them. how much is the reaction to this immigration move by the trump administration about exactly that and the fear that it doesn't stop here? >> i think a lot of it's about that. believe it or not, a lot of it is about morals and ethics and a

belief within silicon valley that what trump is doing is wrong. you know, but as walter just said, you can go through any of these companies and some of the brightest brains in there are immigrants. and you know, what's really interesting is that there's been a lot of negativity towards silicon valley ceos over the past week because they've been very quiet on issues. and finally on friday, this became the topic that brought them out. and you know, don't forget, they have an incredible voice. think back to june 2012. they shut down the internet for the day and it completely changed the sopa ruling, so they can do a lot with a little, as we've seen this past weekend and probably we'll see further into the future. >> and walter, we knew that tech was very vocal against many of trump's policies, but even within the camps of trump supporters there seems to be this division where some say he's just making good on his campaign promises, and others say, wait a second, we thought

what he was talking about during the campaign were just opening volleys in what would hopefully be longer negotiations with congress. how widespread in washington do you think this surprise is that he's actually signing these executive orders and putting some of these campaign issues into effect? >> kayla, i think the surprise here in washington is not that he's doing what he said in the campaign, which he's expected to do, but that it was done in sort of a haphazard way without discussing it even with his economic team or general mattis, you know, the defense secretary, or you know, general kelly, the head of the department of homeland security, that it was sort of done in a way where they keep having to explain, is this about green cards or not. you could have had a well-thought-out policy to increase vetting on certain issu issues, but the fact that this is distracting from everything else they're doing, and it seemed to be done in just sort of an in-your-face way, instead of a serious, thought-out policy

that was done for national security reasons. >> i wonder why -- walter, if you have theories as to why he sees urgency as very important right now. he seemed to hint at it in his tweets this morning, saying "if the ban were announced with a one-week notice, the bad would rush into our country during that week. a lot of bad dudes out there." why is he in such a rush? >> first of all, i don't think that's true. there's a very strong vetting process now. they take up to two years. i can't imagine somebody who's a terrorist could suddenly get a visa within one week and rush in. and i think this is a question that you've asked that's very good that was sort of baffling this weekend a lot of people, even in the agencies, including the military, homeland security, the defense department, about why this couldn't be done in a more thought-out way, especially since he had it very tightly held and he put steve bannon nail in the national security council team.

it seemed to be done more for political reasons than national security safety and done in such a rushed way that it detracted from what i would assume are the more important things he was trying to do -- do the regulatory reform, maybe the tax reform. >> nick, it struck me that the trump administration gave tech ceos no cover in this situation. these are people -- there was a big photo op with him sitting around the table with him. elon musk has met with him twice over the past several weeks. all of them seemed blindsided. anybody who's been paying attention would know they're under extreme pressure from their employees over the way they interact with president trump. what's the fallout from this likely to be, nick? >> i don't know. look, i think the way that trump has interacted with the tech community, he doesn't care about it. you know, he really truly -- >> so are they going to keep meeting with him like that? >> i think they will, but i don't think it's going to help them. i really don't. i think that, sure, maybe it

will help with some regulation. i'm sure it will help uber with some taxi regulation or something like that, but he does not -- he is not a tech-savvy president. he brags about the fact that he doesn't use a computer. you know, he doesn't believe that ai is ever going to affect any jobs. he's focusing on -- >> would it hurt these companies if they didn't meet with him on the flip side? >> i think that these companies have more power than they believe that they know that they have. and i think that, you know, if they were to stand up -- look, there's 84.2% of americans that use the internet, you know. that's a large number of people that the tech companies can reach. and i think if they were to stand up and really try to say what they believe and stand for, i think they could have a huge effect on this. right now you're seeing kind of a tepid response, some people being more vocal than others, but i think they have a lot more power than they realize. >> one last thing on this, walter. don't these ceos speaking out against an issue like this risk

jeopardizing the possibility of things on the outside -- repatriation of profits, corporate tax, things that matter to investors? >> no, i don't think so, and i think these meetings are just window dressings, you know. so you have a meeting with the president when you ask. al gore had one on climate change, but i don't think it affects things much, nor do i think this administration is going to say you were against us on immigration so we're not going to be with you on the repatriation issue. the repatriation issue is the big, i mean, the whole tax and tax reform issue is the big thing. i don't think either the white house nor cohen or the treasury department, secretary money nuchin are going to get distracted from that. >> walter, nick, we'll see what the day and the week brings. we appreciate your time. walter isaac son, nick bilton. when we come back, more over the debate on the travel ban and the effect on business and trump's agenda. plus, headlines weighing on the markets as you know. the dow 184 below, dropping 20k.

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up cost-cutting efforts on lockheed martin's strike fighter jets. >> look what's happening with lockheed. we're cutting the price of their planes a lot, but they're expanding, and that's a good thing. ultimately, they're going to be better off. we cut approximately $600 million off the f-35 fighter, and that only amounts to 90 planes out of close to 3,000 planes. >> so, he's talking about the lot ten order there. ceo marilyn husson said the deal was close to being finalized with planes pricing under $100 million a piece. and trump praising them saying he appreciates lockheed for being so responsive, but adding that he also appreciates boeing for "coming in and competing in the process for future planes." now, that on the heels of defense secretary james mattis formally opening cost reviews, including one to determine whether improved boeing f/a-18 superhornets could be alternatives for the f-35c.

i'm awaiting response from lockheed. this focus, though, is on cost-cutting, as trump proceeds with "a great rebuilding of the military." he promised new aircraft, naval ships, more resources in an executive order that was signed last week. basically, he wants a bigger, more powerful military but is promising to save billions and billions of dollars on contracts, something he said again this morning, to make all of this happen. looking at shares of lockheed, they're trading about flat and northrop grumman and united tech, two top suppliers to the f-35 also in the red. boeing down more than 1%. guys? >> morgan, i'm curious, looking at that group of stocks, what sort of example you think lockheed has set for other companies like northrop, like boeing, that have existing contracts with the government? >> yeah, so it definitely seems like there is a blueprint being laid out in terms of how lockheed has been dealing with the new administration, how boeing has been dealing with the new administration. obviously a focus on bringing down costs of major programs but

also a focus on the opportunities to, as defense spending gears up, the opportunities to hire more people and be able to do more work around the country on these programs. i think you're going to see a number of other programs come under fire, including some of the submarines. that came up with trump making comments last week as well. >> well, morgan, there's a lot we don't know, though, right? they might have just been moving money from one bucket to the other. he throws out this $600 million number off, but who knows where the pricing ends up when it's all said and done. >> yeah, so, we've known that the price of the f-35 fighter jets were coming down and had been coming down dramatically. and certainly, lockheed has said they will cut those costs, you'll see the costs fall. they've already fallen 60% and will fall even further into the contracts coming up over the next several years. but a lot of that is also just tied to smarter and smarter manufacturing and the fact that a lot of these cost overruns we've seen in development are

now behind the company. >> all right, morgan brennan at headquarters. keep us posted. appreciate it. still to come on "squawk alley," a major national security shake-up making waves on capitol hill and around the world. >> i am worried about the national security council. who are the members of it and who are the permanent members? the appointment of mr. bannon is something which is a radical departure from any national security council in history. the role of the chairman of the joint chiefs of staff has been diminished, i understand, with this reorganization. one person that was indispensable, it would be the chairman of the joint chiefs of staff, in my view, so it is of concern. >> what impact is that having on the market this morning? plus, snap is reportedly preparing to file for an ipo this week. recode's kara swisher joins us next.

all morning long we've been

tracking corporate america's response to trump's immigration order. ford the latest company now to say it does not support the trump administration's travel ban policy or any other, they say, that goes against our values as a company. first automaker to weigh in here, guys, after a weekend of comments from tech companies, and of course, mark fields, who went to several meetings with the president the past couple of weeks. >> perhaps emboldened by his attendance at those meetings. we'll see what other companies say. meanwhile, the white house and the president naming white house chief strategist stephen bannon to the national security council, drawing sharp criticism from gop congressman. with calls to vladimir putin and other world leaders over the weekend, an outrage to the immigration executive orders building, is trump's agenda at risk of being derailed? joining us now is former u.s. ambassador to russia under president bush, alexander vervachao, and michael mcfall. ambassador mcfall, i'll start with you, because before the break, we heard senator mccain calling the appointment of bannon to the security council

radical, but then others say that it's all in the interpretation and the text doesn't matter as much as the actions of the president and the white house and how they actually conduct these meetings. what do you believe? >> well, his appointment is unprecedented. it's unique. it's disturbing to me just because i've given what i've known of his views, i disagree with him on policy. but at the same time, i think it's better for him to be in the room, sitting in the white house situation room with people like secretary mattis, hearing their arguments, rather than waiting for the president to leave and to go upstairs and to talk one on one with him in the oval office about foreign policy. so better to have him in the tent than outside of the tent. what is more disturbing is what senator mccain also mentioned -- to not have the chairman of joint chiefs of staff at all national security council meetings i think is a huge mistake. you need that expertise at every meeting.

and same with the director of national intelligence. it just can't be the cia. those intelligence organizations don't always agree. and if you're just going to have one intelligence representative there, it seems to me it would be the dni that would be there at all times and the cia from time to time. so, those two people not being present is more disturbing to me than bannon sitting at the table. >> ambassador, what was your reaction when you read this news over the weekend and also this idea that it could actually be vice president pence who is leading these meetings and not the president himself in what would appear to also be an unprecedented move? >> well, there have been cases in the past where the vice president sometimes chairs meetings on certain issues, so i don't think that's inherently a problem. and he has a lot of experience in international issues. but i share the concern about the views of steve bannon, perhaps more than the fact that he'll be attending the meetings. and i agree that any meeting needs to have a solid basis in intelligence. i can't think of any subject

that's going to be addressed at the nsc level or at the cabinet level that's going to not require the perspective of our intelligence agencies. so the dni corrector should be there, and i agree, the chairman of the joint chiefs brings professional military advice to any crisis discussion, so he should be there, too. >> michael, what message do you think this sends to america's allies, to, you know, just other countries that we interact with on a diplomatic basis, if this is our approach to national security? >> i think a lot of diplomats around the world are digging up the various speeches of steve bannon. what it obviously shows is that he is going to play a much greater role in the formulation of american national security. you see it in the tea leaves, reading the tea leaves, who's in on the president's calls, for instan instance, right? i look closely who was in on the call with vladimir putin, and it wasn't the national security

council team only. i was on the first call when president obama called president medvedev at roughly this exact same time in the obama administration. and in the room with us, we had three members of the national security council. in the room with the president, you had steve bannon, you had the press secretary, you have the vice president, and only general flynn, the national security adviser, the people that traditionally manage those calls. that's a big signal of who has power and who doesn't. >> ambassador mcfaul, i'm just curious. i mean, the administration's point today is that this ban is temporary. they're going to spend the next 30 days trying to set up some new screening procedures, and that the past eight years have been an exercise in overtaxing those who screen those who come into our country. is none of that valid at all? >> first of all, i would just remind you that we had eight years where the system worked and not one terrorist from any of those countries where the ban

was. that is a fact. number two, perhaps it could be improved, and perhaps those people were taxed, but do it in a law-and-order process. after all, president trump ran as a law-and-order candidate. this was neither law nor order. it was chaos. and that they had to change their minds -- >> we might be having some difficulties for ambassador mcfaul's camera there, but we do thank both ambassador vershbow and ambassador mcfaul for discussion on russia. of course, the president taking that call with putin over the weekend. the readout said it was a congratulatory call, one hour in length, but now there's some reporting that the two will meet before the g-20 this summer. >> hour's a long call. >> yeah, very long call. >> that's a long call to talk to my mom and dad, so if you're talking to putin for an hour, they had a lot to discuss. >> japanese officials coming to the white house in the coming weeks as well. speaking of global markets,

let's get the close of the uk and across europe. seema mody's at hq. hey, carl. just like on wall street, european stocks are sharply lower, and this comes as world leaders have been reacting to president trump's temporary travel ban on seven muslim majority countries. the ban is weighing on a number of european travel and leisure companies, such as air france klm. we also have british airways, parent, international consolidated airlines group, and isg. that is the home to hotel bra s brands. the european union is home to about 13 million muslim immigrants, that according to pew research. now, many leaders showing their disapproval with trump's executive order, including germany's chancellor, angela merkel, as well as prime minister theresa may. however, may's office issued a statement saying she's very happy to extend an invitation to trump to make a state visit and that "we look forward to hosting the president later this year," this despite a petition from british citizens saying trump

should not be invited to make an official state visit because it would embarrass the queen. the plot thickens, guys. hours ago, uk labor party leader jeremy corbyn tweeted "over 1 million people have signed. theresa may, we will not back down. cancel the state visit and condemn the muslim ban." so, the backlash of that trump ban, of course, not just domestic, it is global. a quick word, though, on the european economy. germany's inflation rate this morning showing that it's hit its highest level since mid-2013, up 1.9% from a year ago, reigniting those talks as to whether the european central bank and policymakers there should halt their stimulus plan sometime this summer. in the meantime, we are looking at yields higher in germany. in fact, across the periphery in france as well. carl, sending it back over to you. >> all right. thank you very much, seema. let's head across the room and get a news update from sue herera. hey, sue. good morning, everybody. here's the news update for you

this hour. president trump speaking to reporters during a breakfast with small business leaders at the white house, says his pick for the supreme court is highly respected. he will announce that pick tomorrow night. >> a big decision that i made, a very big decision on the united states supreme court, a person who is unbelievably highly respected, and i think you will be very impressed with this person. delta air lines has resumed flights this morning after a computer outage caused a ground stop across the country. more than 150 flights were canceled and the airlines said in a statement that more cancellations are expected. the president blamed the weekend chaos at the nation's airports in part on those computer glitches. a customized atm, on a lighter note, will be giving out mcdonald's big macs tomorrow in boston. between the hours of 11:00 a.m. and 2:00 p.m. it's all part of the chain's launch of the bigger and smaller

big macs. we'll keep you posted. that's the news update this hour. back downtown to "squawk alley." carl, back to you. >> all right, sue. thank you very much. when we come back, recode's kara swisher on the president's temporary immigration ban, silicon valley's reaction to it, plus, the latest on snapchat's plan to go public, which kara has been all over. dow's down 188. don't go away. ♪ the morning. no, this is double espresso. hodor! hodor! ehhh, hodor. you guys watch game of thrones, right? inconceivable! surely, you can't be serious. i am serious. and don't call me shirley? that's the unlimited effect. stream your entertainment and more with unlimited data when you switch to at&t wireless and have directv. plus, get the amazing new iphone 7 on us.

dozens of tech ceos speaking out against the president's new immigration orders. apple's ceo, tim cook, sending a letter to employees, saying in part, "i've heard from you who are deeply concerned about the executive order issued yesterday restricting immigration from seven muslim majority countries. i share your concerns. it is not a policy we support." reed hastings, ceo of netflix, saying, "trump's actions are hurting netflix employees around the world and are so un-american, it pains us all. worse, these actions will make america less safe through hatred and loss of allies, rather than more safe." kara swisher is the executive editor of recode. she joins us now. kara, good morning. >> good morning. how are you doing? >> pretty good. thanks for asking. i hope you're doing well, too. tech ceos are mad and they're speaking out, as you have said you hoped they would. we've got reactions that range from "not a policy we support"

to "un-american," to pretty much silence from the likes of oracle, ibm, dell, hp, perhaps coincidentally, companies that tend to do a lot of business with the federal government. has one of them or two, hp spoken up lately? >> hp just sent me a statement, it's basically we support our employees and support inclusion. it's a pretty -- it's not a tame statement, it's a pretty solid statement. it's not over the top, but it certainly does address it and say we don't -- doesn't say we don't agree with this, but we support inclusion, we support global workforces and stuff like that. so hp just sent one. you haven't heard from oracle or ibm. but i have gotten some memos inside of ibm from employees that i'll be publishing soon, which should be interesting reading, i think, once you see how angry some employees are about this. >> we had employees, i guess publicly quit companies with medium posts about reaction or lack thereof to this incoming administration. but kara, what's next? i mean, so, they speak out. they meet with the president,

then they say we don't like this particular policy. where does it go from here? is it just mollifying the president and then employees, depending on the week and the issue? >> no, i don't think so because i think there's going to be a lot of issues coming up that suddenly become like this. as i noted weeks ago, that exactly this was going to happen, that he was going to do something like, you know, however he's calling it, it's a barring of people coming from muslim countries. and so, you know, i think one of the things is, the thing you've got to think about, what else is next? is there going to be something around visas that they don't like? and it's questionable if the new visa executive order is going to be something tech likes. there might be some issues around gay and lesbians that tech has been a big supporter of gay and lesbian rights. what if those executive orders come down or legislation? what if encryption stuff comes down? you know, it goes on and on and on. and so, there's going to be, as i noted, there's so many difficult issues between tech and this administration that they've got to be able to air

them out in the open and not be acquiescent, and at the same time, try to figure out a way through them together. and i think it's going to be super difficult going forward. >> kara, do you expect tech to have a seat at the table? because some of the criticism of the early executive orders until the backlash over the weekend was that they didn't really have teeth. they were vague and left a lot of room for interpretation. >> right, a lot. >> so, you would think that companies that wanted to make sure that those policies got written in their favor would be even more vocal about how to do so. any sense that tech is trying to do that just now? >> well, i think a lot of people sort of waded slowly into it. and if you've noticed, a lot of the statements have gotten stronger as the weekend progressed. i think, you know, obviously, reed hastings' statement was laudible in terms of being very clear about the moral issues and also the business issues and employee issues. i think a lot of them, it was kind of like mistakes were made here kind of quotes without assigning them to anybody when it was clearly the trump

administration who did this with the immigration ban. so i think some of them are trying do a fine line, but i can tell you, more and more tech ceos -- and you've noticed them from airbnb, from a lot of the start-ups, stripe -- i can go through dozens of them -- are all pretty adamantly strongly against what's happened here and they're being very vocal about it in very strong ways. i don't know what's going to happen because of that or if they're going to get punished because of that, but these are very powerful companies, and i'm not sure if you're talking about creating jobs you want to attack the one industry that's actually one of our most innovative and vibrant in this country and competes worldwide. so, if president trump wants to attack tech, it's a pretty interesting thing to do if you're interested in job creation. >> obviously we'll be attuned to the dynamic between the two sides there. meanwhile on snap, kara, you've been reporting on it for a while now. we're getting news today they've chosen the nyse. what are you going to be watching for? >> i think the numbers. i'm going to be very interested in reading this s-1 that they

put out. i think growth numbers, where they are, if they're adding, you know, beyond the young demographic, how big do they grow? i think evan spiegel in a morgan stanley meeting talked about how they're putting a lot of numbers on the board, people over 25, which is interesting. i'll want to look at their advertising fees and how they're doing in terms of revenues and just -- i think generally it will be a really interesting ipo. and whether they can garner that $25 billion valuatiovaluation. and i think the thing's coming out sometime this week. i doubt they drop it on wednesday, facebook's earnings day, but that may be funny. i think probably thursday or friday is when they'll do it. >> kara, how big is this ipo for start-ups outside silicon valley? i mean, some people might forget, this is a southern california or an l.a. company trying to feed an ecosystem down there of tech talent. >> right. you know, i don't feel like snapchat is in the center of an

ecosystem there. they're sort of kind of lone wolves from what i understand from people down in los angeles. they're not as involved. there isn't as cohesive a tech scene, though there is a cohesive tech scene, as there is in silicon valley, comparatively speaking, that you know, jon, pretty well. the thing is, a lot of the investors from snapchat are up here in silicon valley, which is interesting. although there is some all over the country. a lot of the big investors are google and benchmark and some others that are here. so, it will be interesting to see if it adds vibrancy to the l.a. scene or if you see more ipos there or even here in silicon valley. i think more important is when's the next ipo after this one? probably airbnb. i think uber will be delayed until 2018, but who knows. >> maybe spotify? >> spotify, possibly. possibly. there's a lot -- there's a couple in there that could happen. i think the question is, does it set off other ipos to see how well they do? and that will be an interesting

part of this ipo, too. >> all right. thanks, kara. it was great, as always, to have you. >> thanks a lot. when we come back, cnbc now accepting nominations for the 2017 disrupter 50 list. our julia boorstin's going to have a preview after a break. but first, rick santelli, what are you watching? >> i'm watching the markets and thinking about chickens and eggs. you know, sometimes we have policies that are going to be legislated and we wonder how markets will respond, but other times, markets' response is somewhat embedded in the policy. sound interesting? i think so. we'll talk about all that after the break. ♪ information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments

and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

i'm scott wapner. coming up on "the halftime report," we get you ready for earnings reports coming out from amaz amazon, facebook and more. plus, goldman sachs upgraded the stock today. we'll tell you whether you should buy it. and eliot spitzer is here on the analyst calls you can trust and the ones you cannot. "halftime report" starts at noon eastern. jon, see you in about ten. >> thank you, scott. jackie deangelis now has a check on energy. >> good morning, jon. the xle is bouncing off session lows as the overall equity market is giving back some gains that we've seen in recent days. you can see that crude oil prices are negative as well, starting the session and going into the overnight positive but

giving back as equities turn. some of the big dow components -- exxon, chevron, certainly part of the problem today. back over to you. >> all right, jackie, thank you for that. let's get over to the cme group and rick santelli for the "the santelli exchange." hey, rick. >> good morning, carl. a lot of things changing. this administration's moving fast. we just had kara swisher on. we know that she likes disruption, she likes disrupters. she thinks it's a positive. when it comes to things politically, maybe it's still a positive, but it can be a bit unnerving. now, markets many times have to make adjustments for big changes in strategic politics, policy legislation. but i'll tell you something, there's a unique situation this time. cnbc gets the best of research and we share it, whether it's on the air or cnbc.com. and one of the pieces that was sent to me recently, and it's about the eighth piece on this topic, was jpmorgan, okay?

and what it's about is u.s. border adjustment not so bad once you get to know it. now, embedded in here is really some great research and lots of math, but we're going to simplify it, okay? i only get so much time. "if exchange rates adjust in line with theory, retailers and commodity importers would have nothing to fear." and this is the way it goes, that basically, let's say you have a border adjustment tax of 20%, that there's certain underpinnings to the way this whole thing works that will embedded in it cause the dollar to rise 20% to 25%. hence, retailers and anybody involved in the transactional tax is going to be okay. i get it. and the math actually is very good. but being around markets since the carter administration, what i find is, is that theory in reality, especially when it comes to the markets, can get rather complex. okay, now, let's hold that thought for a minute and think about things. what's the biggest bubble in the

marketplace, should any of it be considered a bubble? anybody? well, many people think it's the bond market, the fixed income market. you can understand why. trillions of trillions of dollars of securities are captured by central banks. now central least ours in this country and we have a meeting this week, are going to try to reverse this project. call it an exit, normalization, anything you want. we all know that foreign exchange has a dominant big brother and that is interest rates. should anything go wrong, whether it is southern europe or the euro appreciation, giving something on the securities side, it could be a real fly in the ointment with timing regarding how this necessary move by the dollar makes border adjustment tax more palatable. i'm not saying it's not going to work out but i wouldn't wouldn't want policy that guarantees its success by having the market premise work out. john and kayla, back to you. >> thank you very much, rick santelli in chicago. with the dow up about 9%

since president trump was elected, venture investors are looking at the administration could mean for exits from private market investments. julia boorstin is joining us from l.a. with a look at that. >> snap ink ready to publicly file for ipo soon as this week and spotify, airbnb and uber in the pipeline. investors are hoping to see a surge in public offerings follow 65% decline in ip oz from 2014 to 2016. >> what we hear from our members is 2017 could be the year fo for liquidity and for exits and for opportunities to take returns. >> with trump pushing companies to repeatry yat cash, forefavorable tax treatment in the u.s. and regulatory environment we could see a rebound in m and a following a 23% decline last year in acquisitions of private venture-backed companies. >> we just believe that just the

buoyancy of the market as it is today and the prospects of the economy with less regulation, more -- more of a business oriented mentality is, in fact, going to generally help with both the ipo and the m and a markets. >> with the dow at an all-time high -- near an all-time high and pressures under pressure to show growth, snapping up a rival is one way to drive innovation and boost revenue. cnbc is accepting nominations for the 50 disrupter list. we will give you a link at nomination format disrupter50.cnbc.com. >> thanks so much. "squawk alley" will be right back.

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say hello to internet speeds up to 250 mbps. and add phone and tv for only $34.90 more a month. call today. comcast business. built for business. welcome back to "squawk alley." we are watching shares of walgreens and rite-aid, the two have amended previously announced takeover agreement. walgreens will pay between $6.50 and $7 a share depending on the number of stores walgreens is acquired to divest. they are extending the end date to july 31st. the original deal struck about a year and a half ago was worth $9 per share. you can see rite-aid down as much as 17% on the day. carl, back to you. >> art, seema, thank you very much. more on the sell-off and stocks. market jitters following the busy morning and weekend at the white house.

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what's happening. the stock market has gone up massively since the election. everyone is saying, oh, the marked will go down.

i said, the market is not going down. the smart people know me, the businesspeople know me. they know what i'm about. so the market went massively up. in fact, when iftd elected a lot of really smart people went out and bought a lot of stock. and they've been rewarded. >> president trump speaking earlier this morning about the stock market, commenting on the reaction to his presidency. right now of course stocks taking a pause. dows off down 164 -- down about over 160 points. nasdaq still on pace for best month since the summer of last year. and of course we should point out the gains since election day continue to be robust. hard not to notice retailers today. walmart leading the dow. nordstr nordstrom, gap, dollar tree. some may belief a wall ticket to the border tax got a little bit higher. >> financials, interesting low, despite the fact the president saying we're going to be doing in big number on dodd frank that

it's a disaster on his executive order on regulations and rolling back regulations this morning. financials still underperforming, down more than 1 $. >> big one coming tomorrow. apple with earnings fit, just taking it on the chin today. down more than 13%, down almost two thirds over 12 months. let's get over to water in and "the half." >> guy, thanks so much. welcome to the "halftime report." top trade this hour. market sell-off. dow is in the midst now of its worst decline since october. perhaps on some uncertainty on the president's new policies and future of his agenda. huge week of earnings loom large for investors. let's begin with the stock slide. the s&p 500 has gone 74 days without a 1% decline. it is knocking on the door of that right now. steve, it is in jeopardy. is this political risk front and