we've got the stocks and highlights right now live from new york where business never sleeps. this is "squawk box. ♪ good morning, welcome to "squawk box" right here on c nbc live from the nasdaq market site i'm scott watson along with shelli evans joe and becky are making their way to the economic forum in davos. guy is here. >> with a replacement. >> bright and early. >> this is a tough role to be in >> it's great! >> monday, the three of us will have fun for an hour >> let's get to it >> we will let's take a look at how economic futures are shaping up after a fairly volatile week the dow down by 70 points. s&p also a touch negative off the open this morning. take a look at how the trading sessions are going one overnight in asia.

we'll give you a check of the picture in a moment. there you go shanghai up 0.50%. trading under way there for a number of hours. the dax is up approximately only over in france, the picture, negative at this hour. treasury yields much in focus this week. 2.60 on the current year and above that level at 2.65 that is the one to watch we're certainly watching that. >> 2.60. you can round that up to 2.7 right now. you can round that up to 3 >> a lot of people say that's the next stop. the question is at what point does that put more pressure on equities and minds of investors as the rates are going >> or the bitcoin, to lose money on bonds, i got to get into the stock market >> except, we'll see what

happens from the equity market from there quite frankly, every piece of low rates have been great for the equity markets apparently rates going higher are great for the equity markets. that's the dogma right now >> what point do you get, as i've sort of been saying the full capitulation of bond investors where you really are running for the exit and then you could see rates rise at a faster clip and where does the money go? >> every time there's been -- okay, there's people who are losing money at the same time, they'll go, wait a minute,2.6, maybe up 3, that's pretty good i think it will bring in new buyers, too. it doesn't necessarily jump up like a spring, but we'll see >> hey, we're getting ahead of ourselves in saying that rates are going to actually continue with wilfred, he said he doesn't see inflation anywhere he's anticipating two hikes. he might be in the camp of rates may actually trend back the other way. it's fascinating. >> it wouldn't surprise me for them to do what they've done in the fast

anytime there's been any sort of a pickup and gets people nervous. it's only a few weeks later you're taking that deep threat going okay, here, lower for longer >> crude prices, saudi arabia's minister said they expect it to extend beyond 2018 wti over 63 a barrel brent over 68. production, they have that production cut last year ubs is the latest bank to announce a short-term hit in the u.s. tax overhaul. switzerland's largest bank posting its $2.3 billion net loss in the fourth quarter it took a 3 billion writedown as a result shares down 1.6% among other headlines, it's increasing its dividends introducing a buyback program. and creating a global wealth management division. you can see a selloff there.

interestingly, they're doing dividends and buybacks the capital has been a big turn for u.s. banks and also pressure on banks for not too much on tax reform amazon grocery opens in seattle. that store known as amazon go relies on cameras based on customers taking off the shelves. the period has been open for amazon employees for a year-long test period. carl icahn and deson pushing for the xerox sale they plan to call on xerox to explore alternatives which could include selling itself breaking up and feedly firing fuji film ceo jeff jacobson that lagged for years but recently rallied in hopes of getting a deal down.

speaking of deals, the senate expected to vote on a funding bill to get the lights back on in washington. our kayla tausche joining us hi, kayla. >> the senate is expected to vote in a few hours. now, they will take up a new package at noon today for an updated funding bill that would include finances for the federal government until february 8th. it's a week shorter than the last and a date that the white house supports and the bill also supports the children's health insurance which ran out last week. but the issue, immigration, the issue causing democrats to hold their votes. but senate majority leader mitch mcconnell is offering a new pledge to take up the issue as a new deadline >> it would be my intention to resolve these issues as quickly as possible so that we can mov on to other business that's important to our country >> that other business being

disaster relief. and budget caps. and it remains unclear whether mcconnell's pledge has more. they'll see if they can conjure up the votes by noon today >> there have been times over the last few days where it has seemed we're inching closer to a deal, kayla, only for it to fall apart. and then more questions seem to be arising as to whether the president and members of his own staff are actually on the same page >> yeah, well, the question about the white house and the president's staff is one that has been bubbling up to the surface by various partisan lawmakers part of this group trying to broker a deal on legislation. they're references steven miller an adviser to the president saying the president's own views differ from those of pelley's

and miller's, and when they're in a closed-door session with the president things seem to be going okay but when he consults with them he seems to be reneging on deals in some of those meetings. we'll see what they come around with and mark short at the capitol last night said all staffers especially pelley and miller are very essential to the process. and that the president very much values their advice. and says that they're so nearly close on a deal for daca and budget caps. but republicans have maintained that talks will continue until the government reopens >> kayla, did you say they need seven more votes? >> they need seven more democratic votes >> are all of the republicans now on board >> for the most part assuming that the deal that i just listed in the segment is the deal that gets brought to the floor today, that is expected to be the case. but, of course, anything contained that we have seen

shifting stands where the final details take part. >> part of the democrats don't believe that what mcconnell is concrete enough. that his intention is to take up the issue of immigration reform more broadly but it appears that maybe they don't trust that that's actually going to be the case which is why they're taking such a hard stand on getting daca done now >> correct and february 8th is a month before the march set daca deadline the democrats certainly if they don't get a deal by that february 8th deadline, mcconnell said on the floor last night, he is committed to pursuing immigration policy through regular order. through the norm legislative process. but we've seen that it takes longer than a month to get that done so there's a worry that, you know, he is already putting a plan "b" in place. even though republicans see that as a very firm commitment. lindsey graham tweeted that that is more than reasonable for the

majority leader to be saying and committing to on the senate floor. but democrats worried if they get to february 8th and you don't have a deal and you have to do to it through a different process then you don't have the time to do that before march >> and it's also been senate graham who's been tweeting and maybe has been the biggest critic of not only the chief of staff's control but it was lindsey graham overly the weekend, i'm quoting from this week, staff in the white house told of extreme and unrealistic views they hold us back from getting a solution those are hard words from a senator within the republican party criticizing the republicans. >> right it was he and senator durbin who last week went to the white house and had a meeting that followed several phone calls with it's president, where they thought they had a deal. and then senator graham has mentioned within a period of a few hours what transpired between a phone call and a meeting, at which point it seems

that members of his staff seems to have talked the president out of a deal that we had agreed to in principle we're seeing this from various lawmakers that this happened and certainly, senator graham feels he has a reason to say that and issue that criticism. but we'll see what happens if they can get the government funded today and if they actually do proceed in all of that close to an immigration deal that would follow >> kayla, one more quick thing what happened on march 5th, if the government's still shut down, you know, basically, if they don't address that law right now, what happens on march 5th? >> well, currently, kelly, there is an injunction from the court. so it's unclear if the march 5th deadline would have any real bearing if the courts haven't issued an opinion on exactly what the status of the d.r.e.a.m.ers are. the white house wants this case asap so that if that is clear, essentially the march 5th deadline is the protective

status for d.r.e.a.m.ers is expected to basically seems to cease. even though it wouldn't take in fact until the fall. there's a lot of fine print in that, but it really comes down to the courts issuing an opinion. >>ful they get fuif they get a, you would think they got a move on that, right is that the federal court? that's not the supreme court, is it >> that's what i need to get back on, kelly certainly, they need to get the government open first. >> all right, kayla. thank you. let's get to different stocks to was that how about sanofi striking a deal to buy buy jioverativ. it's a 64% premium to friday's closing price. bioverativ makes dreams to trea

hemophilia tiger global has reportedly invested more than $1 billion in barclays the financial times said the hedge fund bought much of its 2.5% stake in november and also extending a vote of confidence and barclays to focus on its u.s.-led investment banking operations and the uk-based consumer banking business barclays shares up 3%. wart mart lmart is reportedn talks to sell off brazil biz the locations and inefficient operations labor trouble, and uncompetitive prices, but ceo doug mcmillan has been conducting a review of global operations since 2016. joining us now, joe bell is a senior strategist at sheaffer research and guy agammy

joe, thanks for joining us we were just talking about interest rates what are your thoughts here, higher interest rates on the one hand, rallying stock market compared with the fact we had the government shutdown day three. i thought when we were going into the close on friday people thought it was not going to happen now that it's happened, is that putting pressure on the market >> well, not really. we're not seeing a ton of pressure when you talk about the stock market, with washington and politics being even tougher sometimes but when you look at the shutdown, i think the market is generally telling you they probably think somehow, some way this is going to get resolved in coming days and not really going to have a long-term effect on equity prices. we talk about race, you have to remember going into 2017, this sentiment that we just assessed, it was a surety that interest rates were going to go higher. that was the expectation

30-year rates were actually lower than they were when we entered the year last year sometimes, when we have these expectations the market tends to correct that a little bit. we enter the year with the same expectations. >> sound a little exceptskeptic, like we've seen this script before, about ten years in a row, right >> yeah, absolutely. and the other interesting part is we've been expecting it for quite some time. we haven't gotten it the market has been strong you still have to remember, relative to international countries, our rates are still higher than theirs when you look at from a top efficient standpoint, when you talk about baond investors looking for bonds, u.s. bonds are historically higher. and it's actually been pretty strong for the tightening cycles for when the fed is going to raise harates. that may not be as bad even if

we see the increase. >> and look what happened, 2005, 2006, 2007 interest rates going higher everything was hire. >> everything was going higher are the interest rates going higher for the right reasons or wrong reason the right reasons for the equity market the wrong reasons where things are going off the rails a bit. where do you guys come down on things? >> well, when we talk about, obviously, historically, you look at a rising interest rate investment you would expect that to coincide with economic growth you look at the employment market rates, that's been improving over the past several years. you look at gdp curve, it's actually less than that longer average. around that 2.5% gdp annual growth in years i about 3% so we've actually seen this slow spending growth. we've actually seen the

household debt rate at its lowest level in 30 years i think consumers have actually been a little conservative that's why we've seen this continued flow steady, not not only stock market, but economic growth we could see it last longer because we're seeing the consumer slowly, steadily invest in the stock market. >> do you think last week was the beginning of more volatility in the market or a one off >> we had a big up day last week, i think it was tuesday the vix opened higher and closed higher closed up 11 or 10 >> you were there two days, 2.80, and next day, 300. >> with the vix up higher. >> vix was higher on the market -- when the market was up, rather than down, the point you're making. >> right >> i think it's fascinating one of the first times we've seen that in quite some time. what you want to see at 5:00

maybe in the short-term market in days or weeks where you've seen not only the market go higher but the volatility going higher as well we saw hints of that last week on friday we closed at 28,700. the vix down 6.5% despite the government shutdown we're talking about now. and the market doesn't seem to care about anything. so, i do think we're going to see increased volatility >> the fun thing, making a point, too, they liked better when the vix is up a little bit, back towards normal because then the whole market rally didn't feel quite so strange. last year, it commonwealth like a quarter percent every day. do you think there's any truth to that. at least when you're back in the 11, 12 range -- >> it makes it feel a little better >> it feels a little better? >> yeah. my concern is, listen, i'm always concerned that's just the way i was raised in this environment. but you wonder how the role is

in terms of viability. and you wonder how sustainable that is. when things turn, that passive becomes active and it's not active when things go higher. so that would be the one thing i'd continue to watch. >> joe, any last thoughts on that >> yeah, we talked about if there are concerns, you question maybe in the short term, over the next three or four weeks we had a market start, with only 14 trading days in, pretty much like you mentioned wehave interim volatility last week but the market is on the upside. look at the technical indicators we look at perhaps indicating maybe it's time for a little breather over the next three or four weeks rsi above 80 for the first time since 2017 and ninth time since 1993. maybe a little breathing room. and average drawdown around 10%. it's going to feel like the end

the world but that's typical market behavior. it just seems abnormal with the typical low volatility we've seen obviously, we're going to see pullback long-term, i think the trend remains in place >> i'd be surprised if you had a pullback soon. >> aside from volatility last week, nothing's changed. >> well, think about -- >> right, we're just getting in the cusp of earnings season. >> the market is down half a percent, we get all -- we get excited because things are happening. you know, we've become conditioned to things that are happening. >> so, your point, seeing 3% seems -- i can't remember, i think my hair was a little darker last time it moved 3% >> if anything changes is how fast we started off the year, just to come out of the gate at 10%? must seven sessions. >> at the end of month, we've been bullish, but they got to absolutely crush for them to

justify that close to 35 in earnings. >> there are a lot of stocks in that basket, right >> the caterpillars and the boeings and some of others netflix for a second, which is reporting this week -- >> today >> in prep for that. but that's up 15% in 2018. and we just started. we just started. we're a few weeks into it. and the stock is already up like that the bar continues to get higher. >> all right we'll talk much more about that. >> joe bell, thank you flu season in the u.s. typically peaks in february. this year's outbreak is the worst on record. mike terrell here to tell us what makes the strain so dangerous and what it's costing american businesses. that's coming up next. nobody's putting their money into equities.

they're not investing in commodities or fixed income. what people are really putting their money into is what they hope to get out of life. but helping them get there requires a real refusal to settle for average. because when you approach investing with a tireless desire to beat the status quo, something wonderful can happen. those people might just get what they wanted out of life. or maybe even more.

you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. this year is likely to be the worst flu season since the swine flu pandemic of 2009 joining us now with impact on business is meg tirrell. good morning >> good morning. it is promising to be a pretty intense flu season it ramps up quickly since december the strain isn't well protected

by the flu vaccine still public health experts say getting a flu shot is one of the most important things to do to protect ourselves and others and another report is staying at home when we're sick but a lot of us don't do that. urgent care providers conducted a survey about where americans go when sick almost 70% went to the drugstore or pharmacy. 33% went to the grocery store. almost 40% went to work sick health experts say that's a big problem. it's even got a maim for zenkyism, and can contribute to the further spread of the disease. while it can be costly for employers, the lost productivity from six days related to flu lost $9.4 billion this year. having employees show up in the office while contagious can be costly as well puck health experts recommend employers take a few steps to help reduce the spread and potential cost of flu including

encouraging employees not to show up when sick. and a particular challenge for hourly workers for those in of settings holding fewer personal meetings and handwashing this is hard for everybody i was sick last week i wanted to come to the office i felt guilty, i had a lot to do it's tough they were like, no >> i think it's interesting, i do, i find more and more people will start going home if they have to. if they feel, i know i should. but what if people don't want to come in because they don't want to get sick. >> i don't know if there's a culture for acceptance for that yet. >> yeah. >> it is widespread now in almost every state >> yeah, it's widespread and it's pretty severe because that strain isn't well protected. but the flu shot does protect you and make the course shorter and less severe. it's recommended to get it

>> that's a deal maker, do you want to tell us what came up >> sanofi is going to buy bioverativ bio varioverativ closed on fridy it's the spinoff of the hemophilia drug. those two drugs alone. people are saying this is a pretty big premium here but this is where the bio technique industry has been waiting for. they've been big in rare diseases and blood disorders so people think it makes sense they're expecting a little perhaps at the valuation they're paying here and there is coming competition, too roche has a new drug, people are worried about that franchise and gene therapy is coming to the states which is a potential cure for hemophilia in a one-time treatment that is a few years off. it's an exciting stage

>> is hemophilia so lucrative even though it's rare that the treatments generate more revenue or is it more common than i realize? >> it's pretty common. it's a very expensive disease to treat. >> if you're a hemophiliac, you have to deal with that your whole life, it's like saying, gene therapy, you can cure it, but then you have to live with it 70 years? >> absolutely. these are preventive treatments. people have living with their their whole life people say some are moving in the direction of gene therapy. >> thank you >> thank you coming up thousands of federal workers won't report to work today because of the shutdown but those huddled masses can visit the statue of lipts, cu liberty, courtesy of the state of new york. ahead, we have a look at friday's winners and losers.

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5,000-plus survey conducted by survey monkey in the global block chain business council shedding new light into is buying into bitcoin. seema mody joining us with the results. good morning >> study revealed 6 in 10 americans have heard or read about bitcoin, up sharply from a 2013 study when only a quarter of americans knew what it was. only 5% of participants surveyed own bitcoin. and 21% say they are considering adding it to their portfolios. in terms of demographics, bitcoin buyers are overwhelmingly young and male, 24 to 34 age range the survey also finds out the reasons they own bitcoin varies, 60% say it's a growth investment 40% see it as a way to support the blockchain technology. 30% say it's a way to avoid

government regulation. experts say that could change. as sc and cesc issued a joint warning that conservative oversight from china and north korea resulted in bitcoin last week currently trading $11,600. guys >> you think about it, you folks talked a few times, we spent probably 15 minutes a show over the last month talking about bit koi coin, for good reason. putting a whole new group of traders or investors in the investment place if you ask me what the market is going to do, ask me about the lottery. e > coming up. thclosing bell today we'll tell you what to expect from the streaming giant right after this

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netflix out with earnings tonight after the bell joining us now with the preview is tuno amobi.

good to have you here. expectations gone higher as the stock has done the same thing? >> i think expectations are pretty high. i think it's fair to say the momentum that we saw last quarter -- you know, the guidance for this quart quarter which says seasonably strong is over 6 million global supporters that's pretty high expectation everything is there for us to potentially exceed that, maybe not close to 1 million beat that we saw last quarter. >> is that going to be good enough if that's the case? >> i think that's going to be good enough. more than good enough actually this year for investors is going to be a significant year especially on the international front where we're seeing a lot of traction. we'd argue that a lot of that is still not embedded in the stock price yet. >> we'll probably get a good idea of the kind of power that this company has in terms of pricing given the fact that they raised prices. now you're going to find out

what the translation was to subscribers. >> that's right. i think the price increase, they're still working its way through. we'd actually argue that given the content spending that a company has made, that you can make a case that the pricing is still under priced relative to some competitors that's why we think there's potential head room to continue to work through the price, not just for the ultra, you know, hd, you know, content but also the standard as well, which the price remains at $7.99 per month. when you look at cbs, hbo, some of the other packages out there. you think with netflix with the content investment so far gives them that head room to increase prices gradually over a period of time. >> does content cost ever become an issue for you >> it's becoming an issue, however, you can look at content as something that drives, you know, subscriber growth. right now we're seeing that correlation continue as long as they can keep generating the viewership, continue to manage the retention

which content is a big part of why we're seeing relatively low attrition, although they don't report that number, but you see the trend continues to hold up so you can justify the content from that perspective, but to your question, i think when you have hidden perhaps $20 billion of content streaming, that's something to keep an eye on. >> we will we'll see what the numbers do after the bell. >> another multi-billion dollar takeover deal announced insurer aig is buying reinsurer val validus for $5.56 billion. it's only up nearly 5% in extended hours which would put it under 50 again relative to what aig is willing to pay aig said it will immediately add to its earnings. we'll look for more information coming up this morning. >> are we getting into that or maybe we're already there, the animal spirits sort of part of

the cycle? you know, three deals this morning, a lot of other talk about potential deals. the tax package leading a lot of people to be bullish on the prospects of the months ahead for corporate america. >> yeah. i think the short answer is, yes. we started the show talking about boeing and a company of that magnitude shouldn't have the moves that we're seeing. listen, boeing is a great company but you're getting towards valuations that in my opinion don't make a lot of sense. to answer your question, i think we're there. the real question is how long can it last? and i think that's what people have been struggling with for quite some time. >> guy, thanks for joining us. >> great being here. it felt like the hour went by like this. >> 57 minutes was amazing. >> coming up, the government shutdown's impact on the markets. we're going to talk strategy after thbrk.e ea ue of capital? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom?

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government shutdown day three. first day with the markets open. the senate fails to strike a deal before the markets open the latest from washington is straight ahead. what wall street wants u.s. equity futures under pressure plus a big deal in the biotech sector and the rob's reports card and we'll look at sweet rides as the second hour of "squawk box" begins now ♪ let the good times roll ♪ live from the beating heart of business, new york city this is "squawk box." all right. good morning welcome back to "squawk" right here on cnbc live from the nasdaq market site joe, becky, and andrew are in davos getting ready for our coverage there of the world

economic forum we'll be checking in with joe and becky later on in the show looking forward to that. in the meantime, let's take a look at how the new week is setting up on wall street. equity futures are opening lower. s&p by 2 1/2 nasdaq lower by 4 points here's what's making headlines this hour. two big drug industry deals including one announced half an hour ago celgene buying juno therapeutics for $9 a share or $9 billion and french drug maker sanofi is buying massachusetts based bioverativ for $11.6 billion it's all cash worth 105 billion. bioverativ is a maker of hemophilia drugs gentlem gasoline prices are on the rise the average price is up 4 cents

over the past two weeks to $2.58 a gallon that's 22 cents higher than it was a year ago. the government shutdown continues this morning as they continue talks overimmigration and government spending. kayla tausche joins us. >> the senate is scheduled to vote at noon on a new package that shortens the time frame for government funding to february 8th. it restores children's health insurance and it carries a pledge from the senate majority leader mitch mcconnell to take up an immigration before the new february 8th deadline. if there isn't a bipartisan deal before then, mcconnell said he would make time in the schedule to build immigration legislation. that is a move senator linsds si grah lindsey graham said was more than reasonable to quote a tweet that he sent out last night, but it's unclear whether enough democrats will see the pledge as concrete enough to vote for today's measure. six democrats who voted no on friday are up for re-election this year in red states and will

be the ones to watch today, but leadership needs at least 12 democrats total to vote for the continuing resolution. they already have five so they need seven more total. we have senator john mccain who is out and two republicans, rand paul and mike lee, who rarely, if ever, have voted in favor of the short-term bills so we'll see whether they can get that support coal lessed throughout the next few hours. >> kayla tausche thank you. let's talk about the impact of the shutdown on your investments. joining us is capital alpha partners partner chuck gabriel thanks and good morning. >> good morning, kelly. >> i see here you were saying, look, it's probably not going to happen if it does, it will be short lived. do you still feel that way after day three? >> my friends in the fight promotion business who called ten of the last two shutdowns are a little blown out this morning. this is very different than anything that the markets have traditionally worried about. it's not about the debt limit.

it's not about contentious policy writers, it's really about senator schumer's wanting to fast forward a fight for immigration and pto vent his caucus's frustration. >> what happens if noon passes, there's no deal? we start stretching into the back of the week, do you think we have to start paying more attention? >> yeah, i think that's the case you know, i've seen that some houses have suggested that there could be a two-tenths of 1% type hit for each week even though that would be recovered later on i think the bigger concern here is something that's harder to discern, and that is that, you know, it's entirely possible that we do get a vote to do this today or it gets resolved by wednesday or thursday but that just begets another trigger point in early february where once again we're going to have the same sort of suspense and drama and that could even push back to the debt limit which has to be done by march. so slowly but surely i think senator schumer is very crafty

way is sucking republicans into a debate about immigration which is going to step all over the president's state of the union address and his desire to move towards infrastructure. >> people talk about march as the deadline because of the march 5th deadline with d.r.e.a.m.ers. you're saying that's far more important to the market because we get these one short-term funding bill leading to another and to another and you need to raise the debt ceiling >> right that's always been much more important. by the way, kelly, i still think you have a market that i'm a fan of dr. ed yardeni. washington generates these panic attacks and the market gobbles up and generates more fuel for the next leg up. frankly, we've heard from folks like joe lebornia this morning who is more concerned about the fed having an itchy trigger finger this could add to a perfect goldilocks type environment for markets for some time. i don't think, in other words, that this is really that

worrisome. >> chuck, despite that, if we are heading for an environment where you think we're going to continue to kick the can down the road until we get the debt ceiling debate in march, does that not mean that it's very unlikely that we get anymore significant legislative efforts passed before the mid terms and the tax reform bill, as positive as it was for the markets, is the only thing that we're going to get until late this year at the best >> yeah, that may be the case, wilfred. you know, again, what kind of dies hard here is the hope that the republicans might have p pivoted off their successful tax reforms and their ability to really work with president trump to move, you know, right in and to try to continue that momentum to try to work infrastructure reform or infrastructure investment, which the president really expected to pitch very strongly in the state of the union address on the 30th. now, frankly, it's doubtful the shutdown will last past that, but for the most part the

immigration issue kind of lingers and immigration was always going to be very tough. we were contrarian optimists because we were expecting momentum to continue, but now i think that becomes less likely one of the real things to watch is whether -- whether, you know, you start to sort of see the weaponization of anything that's bipartisan, particularly a bill that those in the financial industry are looking forward to, which is a bill to provide regional bank sifi relief or the designation of banks systemically important that has bipartisan support. the question can be whether the bipartisan support for that and the 11 democrats who are on board right now can hold the ranks, hold the lines, if you will, against what could become big pressure to back off. >> hey, chuck, new polling suggests that americans are satisfied with the performance of the economy and how things currently look, especially on the back of the tax plan, yet

they don't give president trump much credit for that why do you think that is and when does that change, if ever >> i do think it changes a little bit, but, again, when you look at attitudes about president trump, they're about more than the economy. i think the bigger question since president trump is not up for re-election this cycle it really is republicans is whether you'll have, you know, mid-term election voters, typically have tended to be more conservative and more white, frankly, you know, in this cycle, you know, whether you're going to have so much anger towards the president and so much, you know, frustration about the personal situations of american voters that they go out to vote the majority and -- the incumbent majority out i think that improving economy and improving nabs every day and the fact that there actually is a little bit more in the pay

stub every couple weeks, we'll start to see that in a couple of weeks, i think that might remove some of the anger from the democratic base and neutralize independence that could help republicans hang on. >> we'll see chuck, thanks for joining us. >> thank you, kelly. >> chuck gabriel from capital alpha partners. the markets are in wait and see mode as the government shutdown continues we'll talk earnings, politics and the markets after the break. stay tuned you're watching "squawk box" on cn ron! something's going on at schwab. oh really? thank you clients? well jd power did just rank them highest in investor satisfaction with full service brokerage firms... again. and online equity trades are only $4.95... i mean you can't have low cost and be full service. it's impossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management.

welcome back to "squawk box. futures lower. a percent of a point volatility was up. the dow lower by 61 points nasdaq by 2. ubs is the latest bank to announce a hit $2.3 billion net loss in q4 as it took a $3 billion writedown as a result of the tax charges and changes. among the other headlines from ubs increasing the dividend introducing a three year share buy back and creating a unified global share division. shares are slightly do you remember down 1% >> interesting conversation earlier. particularly on the dividend and buy back reinstating that. he was very much linking that to the fact that they got through that basil 4.

>> i thought we were on 3. >> it's still 3 but it was the final part everyone dubbed it 4 that change in regulation has allowed them to go back to the position of -- >> that doesn't sound like a u.s. tax reform issue. >> that's a positive in the numbers. it's an interesting turning point for european banks where they were 12 to 18 months ahead of that. starting to attack capital. >> do you think they have as much pressure in europe against buy backs in particular as there is starting to be here >> against buy -- well, because of the tax reform this is a different issue. interesting development for them is that the regulation is -- the pendulum is not swinging against them in a way that that already happened which allows them to do buy backs. in terms of political pressure, there's no tax reform issue in terms of what spurns it. there's no political implication. carl icahn and dpeason is pushing xerox to explore a sale.

they plan to call on xerox to explore alternatives which could include selling itself, breaking up with fujifilm and firing the ceo. shares of xerox have lagged for years but recently rallied on hopes of a deal. keep your eye on shares of xerox today. let's get back to the markets and the government shutdown andreas garcia amayi and jay jacobs is with global x funds. both joining us on set this morning. jay, i'll go to you first. market doesn't seem to care all that much. when is it going to change if ever >> i don't think any change is going to happen until march. markets don't really react to a government shutdown. what markets react to is a thing like default on debt payments. if that were to happen, you would see the markets get volatile, especially fixed markets. >> do you see it the same way? >> yeah. if you look at the last shutdown in 2013, it was 21 days long the market still ended up 30%

up even for that year compared to this year the economy was not in a healthy state as it is today so i see it as a non-event from a market perspective >> i mean, it's largely because the trend's intact, right? i mean, the broader trend of higher markets, you know, we're just entering earnings season which earnings are expected to be strong, nothing's changed. >> yeah. it all comes down to earnings expectations and not only earning expectations but has the fog cleared when it comes to the bear in the street and the bull in the street. which is why i think volatility is so low. the fog is gone and people can see clearly in the horizon and that's good for market. >> volatility did pick up a bit last week. is that shutdown related >> it could be let's put it into perspective, right? all of last year the biggest draw down was down 3%. historically if you look at the last 38 years the average

biggest draw down for the year is 14% so i think when we look at down 20 basis points your heartbeats faster that's not normal. >> sure. >> having said that, just because we saw low volatility, it does not mean we should expect more volatility volatility is a reflection of what we see in the markets and the global economy the global economy is doing fairly well. >> jay, in terms of the broader markets at the moment, you think this meltup could extend quite significantly further? >> ithink it absolutely could. i think people have to look at which sectors melt up. the one we like the most is technology if you compare technology growth in terms of sales versus the broader market, it's growing about 50% faster what you start to see is across the technology sector, it's impacting all sectors. we're actually breaking off a piece of technology, moving it to communications. you see things like robotics, artificial intelligence. i think technology is going to start to take over and propel growth going forward in a variety of sectors.

>> something to keep in mind is that energy and technology are the sectors that have the most international exposure when it comes to revenues. the dollar has been basically bear market for the better part of the last 12 months. that could have been affected by the shutdown but even if you look at the last 12 months and in my perspective we're still in the first or second inningof that dollar bear market. >> you think we're in the first or second inning >> i think so. >> are we going back into the '70s >> no. i actually think it's a reflection of the global economy starting to pick up its growth relative to the u.s. it's not a bad thing. >> do you think the dollar index -- we're looking at just above 90 now are we going to break 90, go into the 80s, maybe into the 70s? >> if you're talking dxy, that's euro versus the dollar if you're looking at a broad basket of currencies, it's still depreciating. >> china reported last quarter first look at gdps

it's much better than expected china went from being something that we were really nervous about to something that is picking up steam and all of the asia region's benefitting. that's going to benefit us as well it's going to benefit more international. >> short term euro is at a roughly three year high. we have the ecb as well. honestly, can you see mario draghi being hawkish at this meeting? surely there's only one incentive. he wants to pay down the strength of the euro in the short term. >> he's very good at doing that. ultimately if you play this out, if the european economy continues to recover, i think the euro could do well the volatility around the european central bank's interest rates hikes in the u.s., there's a lot more volatility, therefore, there's a lot more potential implied growth there versus here is so boring we know exactly what is going to happen >> that's a dangerous -- >> when it comes to the fed -- >> i got it. i'll rephrase that >> real quickly, what do you guys see in terms of fund flows.

there's some research last week. bank of america was saying the biggest four week fund flows that we have what are you seeing? >> we'veseen an incredible start so far and it is in the technology related themes. robotics, artificial intelligence have been gang buster people are looking at electric vehicles and what's happening in that space as well as the internet of things i was just at the consumer electronics show and the whole show is about connected homes and connected devices. we're seeing a lot of flows into those themes right now. >> do you still -- you think that you should beover weight u.s. versus the rest of the world? do you favor international stocks >> i favor international stocks and that's just -- if you look at valuation, right, so short term i have no idea what's going to happen, but once you look at three, five years out, valuation does start to matter more. from a relative standpoint if you look at emerging markets specifically, they look appealing to me not just from a -- not just from a valuation standpoint but as i was saying, earnings momentum is starting to pick up.

they didn't have the boom that we had over the last couple of years. i was in the e.m. space for the last couple of years they were in a bear market they have a lot of up side potential. >> even if i say okay the tax plan of the law is beneficial to small and midcap companies here in the united states, the dollar bear market which you've just called for is beneficial to big companies here in the united states, that sounds very u.s. market positive to me on both fronts. >> yeah. i think, again, it's a relative call european and american markets, it doesn't mean u.s. markets are going to do terrible if the u.s. markets do terrible, i don't think the short term e.m. is going to do great. implied is that the u.s. might be doing okay. i think there's more up side international. >> i gotcha. >> thanks. >> thank you. still to come, what the government shutdown means for the irs and for taxpayers and we'll have a report from washington on that. later, the hottest cars

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welcome back to "squawk box. if the movie's jumangi welcome to the jungle topped the american box office for the third weekend in a row bringing in $20 million it stars dwayne the rock johnson and comedian kevin hart. the film's total domestic take now $317 million gentleman the war drama "12 strong" with chris hemsworth debuted at $16.5 million it was produced by jerry bruckheimer. coming in in third place, the heist thriller "den of thieves" with an opening weekend of $15.3 million at the domestic box office. >> what's the last movie you saw? >> one of the kids one i can't remember the exact one now. >> i haven't seen anything in the movie theater for a while.

i watched james bond over the weekend. >> which one >> quantum solace. >> of course you did. >> i wanted to see "darkest hour." >> i did see that before christmas. >> very good >> i watched james bond over the weekend. for the whatth time? >> it was the least good of the daniel craig ones. >> okay. >> i was on an airplane. >> just leave them on at home. on a loop. >> i'll cut you a break since it was an airplane. >> keeping up with the joneses, have you seen that >> the joneses -- >> i don't think so. >> that's very funny zach cal zach we'll have brian moynihan, blackstone steve scharts man, cisco's chuck robbins, ray dalio

and many, many more. again, this will be live all week long from davos, switzerland. we're going to see the crew, joe, becky, andrew coming up hopefully. they're all on their way, which is why you're stuck with us this morning. >> they're hopefully all there, not just on the way. >> that's true. >> exactly the guest lineup starts kicking off tomorrow i think the guests are on their way. >> we don't know if trump is going to be on his way the longer the shutdown continues, the less likely that's looking. >> it's interesting he's going this year because he's only due to speak on the friday so it's eksz tending the kind of importance and length of the week it usually winds up when you get to wednesday night. >> did you see what macron, the french president, is having all the ceos come to versailles, come bring us deals you want to do in france and we'll wine and dine you. >> another thing that was interesting is bank of japan meeting and ecb meeting which slightly takes the focus off >> off davos and the meetings? >> both. it dilutes it.

usually it's a week earlier. it comes off the mlk week. for whatever reason, they've delayed it. still to come here, super bowl lii set an early look at how the patriots and eagles will match up in the battle for the lombardi trophy on february 4th. the big game, of course, can be seen here -- not here, on our partner, nbc look at futures pointing up off of the gains of last week.

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morning add welcome back to "squawk box" here on cnbc. we are live at the nasdaq market site in times square among the stories front and center aig, the insurer, is buying bermuda based reinsurer validus for an all cash deal of $5.66 billion. validus surging 44%. we had earnings from halliburton. the company beating estimates by 7 cents on bottom line with

quarterly profit of 53 cents per share. revenue also beat forecasts. the company made some up beat comments about the coming year citing more solid commodity pricing. halliburton shares up 2% premarket. anthony noto may be leaving the company. noto is in discussions about taking the ceo job at social finance, better known as sofi. it's unknown if he will leave twitter. still, a big executive at that company. celgene is buying juno therapeutics for $9 billion in cash >> talk about a merger monday. you're getting celgene and juno this morning worth about $9 billion in total. $87 a share in cash. that's for the rest of juno that celgene didn't already own in 2015 they had bought 10% of juno for $93 a share

it's interesting to look at what they're paying for the rest of juno, $87 a share. not quite getting up to that same valuation c celgene investors should be happy they're not paying that much for it. they're using the patient's own immune cells to treat cancer taking them out of the body, beefing them up and giving them back this was the target of gilead's big deal for kyte for $12 billion. kn novardis is big. this is a $3 billion a year product. it's off to an early start we'll have to watch it closely this isn't the only deal this morning. we have sanat sanofi buying

bioverativ. >> do you have a third deal? >> it's literally one an hour. this is going to drive a lot of speculation. >> is it some kind of starting gun? it's been quiet on the deals front for biotech relative to years back. >> it has. if you look at the cash balance sheets among the biggest in the space, we've got a few here. tons of money. $41 billion for gilead, $41 billion for amgen, pfizer. this is baird research they have a lot more fire power than just what they have listed there. people are expecting deals will come that drives a lot of the take in biotech. >> meg, thanks very much for that. >> interesting to keep watching for the banks. those are very strong air why is. >> the banks >> you pivoted from biotech back to the banks. >> m&a. >> you're right. >> goldman, too, had a massive quarter in the trading weakens still, i always pivot to banks going to pivot to politics the senate is going to vote on a

funding bill to get the lights back on in washington. ylan joins us with the effects of the shutdown at the irs. >> reporter: wilfred, washington is in shutdown limbo i am outside the headquarters of the irs. this agency employs about 80,000 people across the country. more than half of them are on furlough today now if this was any other time of the year even more people would be staying at home, but the irs says that because we're in the start of tax filing season, it will continue essential operations, including processing tax returns and testing its computer systems what it's not doing, however, is working on rolling out the new tax law. companies have been expecting guidance to come out today from the irs to give them some information on how to calculate that new repatriation tax. that's going to be delayed also on hold is a slew of rule making on everything from what counts as a pass through business to whether companies

can deduct meals and entertainment expenses now companies are saying that this shutdown is coming at what is already a tough time for the irs. it has no permanent head it's had to cut $900 million and 21,000 workers from its budget since 2010 and the irs says it's going to need another $500 million over the next two years in order to implement this new tax law. the head of the agency's union that represents its workers says that this is going to be crushing in terms of the agency's ability to carry out its mission. guys, the irs says that after five days of shutdown it will re-evaluate its plans. we'll see if it takes lawmakers that long to come to a compromise back over to you. >> ylan mui in dc for us. walmart reportedly in talks with buyout firm advent operations walmart has posted operating losses in brazil for seven straight years following an aggressive decade long expansion that left it with poor

locations, inefficient operations, labor troubles and uncompetitive prices ceo doug mcmillan has been conducting a review of global operations since 2016. amazon's checkout-less grocery store opens today. they track what shoppers remove from the shelves customers are billed using credit cards on file the store has been open for amazon employees for a year-long test period. this is fascinating. interesting to see if it works super well to see if they try to take over all areas of bricks and mortar retailers. >> i who ep it works. >> like an amazon cloud thing that they lease out to their rivals either way, if it works, it will be great for them. >> you'll have to try that. >> i'll have to go out to seattle. >> take the show out there. >> at the moment it's a specially built small store which had to have the lanes designed perfectly quite hard to roll out. >> delayed

it took them a while it opened last year and there were a lot of problems with it. >> anyway, we'll see how it works. we're also watching crude prices this morning. saudi arabia's energy minister said the kingdom expects cooperation for oil producers to extend cooperation we'll have more on crude prices which are unchanged except nat gas is higher. the match-up for super bowl lii on nbc is set after the afc and nfc championship games yesterday. in the afc title game, the new england patriots came back from a 10-point deficit versus the jacksonville jaguars in the fourth quarter the pats beat the jags 24-20 tom brady will be going for his record extending sixth super bowl victory in the nfc game it was the philadelphia eagles versus the minnesota vikings, and the eagles flat out dominated beating the vikings 38-7 philly goes to the super bowl

for the third time in team history. as i mentioned, you can watch that game in only one place, on nbc on february 4th. las vegas already has the pats as the favorite. no big surprise though the eagles have been playing the underdog role from the beginning and seem to be doing pretty well hopefully we'll be speaking with cramer later on this morning. >> i'm sure he's on cloud nine. >> i'm sure he is. >> thinking about him. >> maybe we won't be speaking to him this morning. >> you know how he is, couple hours of sleep he'll probably still show up. >> exactly. looking forward to that. coming up, dollar and equities and the robb report reveals the car of the year award winner take a look at futures

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. welcome back to "squawk box. futures pointing lower at this hour but not too significantly 63 points on the dow a couple of points for both the s&p and nasdaq up about a percent last week. let's now take a look outside equities with our trading lock this morning. john kilda founding partner at again capitol and cnbc

contributor. kathy is at b.k. asset management she's a cnbc contributor and on bonds, oksana aranoff she's with jpmorgan asset management not yet a cnbc contributor. perhaps that will change good morning. >> morning >> i'm going to you first. rates were the story people are talking about rates the ten year is 2.65 how much higher is it going to go, do you think >> this has caused quite a panic, frankly we've seen not really a tremendous backup but a very significant one in terms of what we've seen for years and years and years especially when you consider hundreds of billions of dollars that have gone into the fixed income sector. in fixed income it is the worst of times, the best of times. the best of times because of the amount of money that's gone into

it the worst of times because the opportunity has shrunk significantly. of course, the power of central bank buying has reduced the compensation for owning fixed income when we think of how far it can go from here, we've just gone through a late cycle fiscal stimulus it's not unreasonable to expect it to continue to go higher, although certainly not in a straight line. i think as we stand at the top of 2018, the mantra should really be it's not personal, it's just price to be extremely judicious, not only in treasuries but across the board in fixed income. >> oksana, this latest move has been driven by the international picture. german has gone from 0.3 to 0.6. almost doubled if this is led by the international picture, will this continue in the short term >> not at all surprising in terms of the german put.

we've said for a while that german is one of the most overvalued assets in the world and a short, frankly, on that part of the curve is interesting. you can be short and actually earn carry, which is a first for investors everywhere in fixed income as a global economic picture grows, it's not unusual to see that. >> i'm going to move onto the dollar that's easier to understand. going straight down. a guest told us we're only in the first or second inning. >> right now we're not seeing any selling despite the u.s. selldown we could see u.s. dollar weakness, as we get into the phase where power takes over and we start talking about the tightening cycle, i think even though the bond markets could move lower, that the dollar is going to be limited.

>> it is weird, right? i mean, the fact that interest rates in the u.s. are moving higher and this is moving lower, is it fundamentally strange for currency markets >> not necessarily if it's driven by a bond seller. that's what's happening. as we move into the mid part of the year, the fed is going to be leading the pack at the end of the day u.s. growth is going to be the strongest. it bottoms out after the u.s. government shuts down and moves on in 2014 where about a week after they expected -- after they basically continued pushing the debt ceiling to february -- mid february we saw the dollar recover. and i think, you know, you're going to start to see that it sold off aggressively it's due for a correction. >> that's been the interesting flip side. did the oil hit 70 >> yes, it did >> it hit 70. >> we talked about what does it mean that all of the metals and

those sorts of things have been rallying what does this tell us about the economy. is it the flip side of the dollar >> absolutely. it's interesting to hear what kathy's take is going to be on that a bearish fundamental argument is significant dollar weakness would most certainly prop up commodity prices in general, in particular we have to cut a tremendous weakness in the base metals despite dollar weakness, for example. there's something going on out there in terms of the russian market and the metals and oil have rallied tremendous jump up in u.s. oil production got to 9.75 billion barrels per day. >> we're about to surpass saudi? >> yes >> we're going to do 10 million barrels a day? >> yes yes. >> i'm not sure we're going to take over russia they like to be the new england patriots of production they'll ramp up to stay number one. you referenced about the meeting

that took place over opec and non-opec companies iraq got called on the carpet. they got a phone call from the committee because they have been over producing they're watching the u.s. shale factor start to kick in again in a meaningful way the way the saudi oil minister was talking, some of the comments he made, i thought he might have hacked my research server he's acknowledging the difficult time we're going to be experiencing impressive growth in u.s. output i think when you look at the charts, it should be heading back lower to the 50s. >> so the substance of your i can still make a bearish case is all about supply and demand? >> yes yes, absolutely. >> when, if ever, does that change why would it change? if we're going to continue at this pace of producing all this oil here where we've been talking about eclipsing saudi arabia, russia, et cetera, we're in this synchronized global

recovery, things feel good and they're likely to get better in terms of global growth, does that switch the imbalance at all? >> as we saw last year, stuff happens. there's a lot of accolades being given to opec. the fact of the matter is we had two major outages. canada, north sea and the situation in iraq was such that there was a lot of the kurdish production that's not coming back they did manage to blow off some of the mobile glut producers, this is good news for the stocks in the sector we are out of the woods in terms of the hyper glut that we were in there's still a lot of challenging days ahead it's going to swing back we're going to be up and down in the cyclical period mini boom to mini bust. >> oksana, quick point for me from your notes. 2/3 of european high yield corporate debt is trading inside u.s. treasuries. that sounds particularly given the direction the ecb is moving sounds like an extraordinary

bubble. >> this is like the little shop of horrors out there there are a few examples really telling. they are outliers. nevertheless, a junk rated european utility issued a thousand year bond. >> a thousand? >> a thousand. >> when was the magna carta signed >> 1260. >> another junk bond in europe was minus 1.2% at some point last year. greek two-year notes are trading at 1.2 over u.s. two-year treasuries. where was that two years ago 55%. that is the power of indiscriminate central bank buying and this is what we mean by it's not personal, it's price. fundamentals may be okay in a lot of different sectors including european high yield but the indiscriminate buying has completely disare the toed pricing. investors have to tread lightly.

>> interest rates went up 1%, what would be the losses on a thousand year bond at, what, 2% or whatever it is they issued it >> that's for the investors who are actually holding them. >> hopefully they know the answer to that holy cow. >> thank you it's a very important point. clearly this correlation between what credit is doing in european companies and the equities, everyone is bullish because the growth is in europe on european equities it moves european corporate debt significantly, will that drive the debts down we'll see. the ecb still has it done. >> crazy numbers there guys, thank you all. good to see you this morning. coming up, the robb report is ready to a uns no the car of the year robert frank will join us with a look at some of the cars that top the list from that preview, they look pretty good. at the top of the hour, house majority leader kevin mccarthy joins us to discuss the

government shutdown day three. "squawk box" will be right bac finally. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management.

welcome back the robb report is out with its 15th car of the year competition. the readers test drove 13 ultra luxury vehicles to decide this year's king of the road. robert frank joins us with the winning ride robert >> good morning, kelly it was 200 wealthy readers testing 13 cars in two states to pick the robb report car of the year joining us is david arnold. >> good morning.

>> the managing director of robb report we have three cars, all very expensive. which one won. >> the lamborghini. >> and this car is how much? >> little over $300,000. you get all three for $1 million. >> three for $1 million. just today act now. what did the judges say about this car what were the criteria for picking car of the year? >> the criteria is the promises the manufacturer states for the vehicle. each car we asked them to judge individually based on their merits it's hard not to judge one car against the other. pretty hard work for the judges. >> what did they say or what were some of the comments? >> the car was consistent. that was certainly a car that was used. >> 0 to 60, 2.9 seconds. it goes over 200 miles an hour. >> which we encourage people not to do in napa or boca raton. the technology is quite amazing. yet, it's surprisingly easy to

drive. >> number two, which is almost a super car, the mclaron 720s, part of the super series this is a $370,000 car what did they like about it? >> the fact that very few people had the opportunity to buy this, it was sold out almost as soon as it was announced. they've only been in the car business under their own brand manufacturing for four years so very few people have had the opportunity to drive this car. >> the number three is the aston martin vanquish s. lamborghini is owned by audi these are private companies some day going public their sales went up 58% last year what does the luxury market as a whole feel like? does it feel like we're at a peak what are the risks >> again, some challenges ahead. i think the market's still

pretty strong. travel category seems to be doing quite well people are looking for experiences. aston martin has been doing well because of new product dp 11 came out last year that pushed their sales. >> robb report is on news stands to read all about what the judges said about the cars on february 6th guys, back over to you. >> robert, if aston martin does ipo, can you promise that i come along to report on it with you some test drives, things like that. >> absolutely. the great thing about this car for you, wilf, is that you will fit easily in this other two, not so sure yes, i will make sure you're included. >> the db 9 and vanquish, slightly larger. >> coincides well with your bond viewing. >> the other thing is is the aston martin is one of the few proper british bentley. they were german anyway. >> i was also impressed with your magna carta piece. >> you checked >> i'm pretty sure. >> i was assuming you were.

>> i'm hoping. i'm going to be checking in the break. >> if not, in big trouble. >> it's going to be bad. >> you embarrassed yourself. >> you cemented the embarrassment. all the praise we'll have lots more including representative kevin mccthary. from the market oe when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. like you do sometimes, grandpa? and puffed... well, when you have copd, it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in. so i talked to my doctor. she said... symbicort could help you breathe better, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. symbicort helps provide significant improvement of your lung function. symbicort is for copd, including chronic bronchitis and emphysema.

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shutdown showdown. the senate inching towards compromise if a deal gets done, it's only a short-term fix what's the long-term thought in washington we'll ask kevin mccarthy live. the bottom line. the economic impact of a government shutdown and asking what gridlock in washington means to your money this week. merger monday. they're each worth billions. the final hour of "squawk box" begins right now live from the most powerful city in the world, new york. this is "squawk box. good morning very warm welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square i'm wilfred frost with kelly

the group is at davos. futures pointing lower half a point to the nasdaq 1 point for the s&p. the dow is down about 60 points. up about a percent for each of those indices. treasury yields climbed markedly towards the longer end of the curve. the two year does remain near a ten-year high. the ten year at the mid 2.6 range. significantsteepening of the yield curve last week. >> we'll get to washington for more on the shutdown in a minute first, here are today's top corporate headlines. celgene is buying juno therapeutics $9 billion total the two were in buyout talks it's jumping 57% other deal news sanofi is buying bioverativ another all cash transaction worth $105 a share

it's the maker of hemofill yeah drugs. it was separated from biogen earlier. it's up 63%. sanofi down about 3.5% one more tieup to tell you about. insurer aig is to buy reinsurer validus for $5.56 billion. it will imimmediately add to the earnings. >> the government shutdown the government is set to vote on a funding bill to get the lights back on. kayla tausche joins us with more hey, kayla >> hey, wilf they're shortening the time frame for government funding to february 8th it restores the children's health insurance program and it carries a pledge from senate majority leader mitch mcconnell to take up an immigration deal before the new february 8th deadline if there isn't a bipartisan deal before then mcconnell said he would make time in his schedule for immigration legislation. that's a move senator lindsey graham who's part of the

centrist group leading talks called, quote, more than reasonable mcconnell said the government would have to open first >> the shutdown should stop and we'll soon have a vote that will allow us to do exactly that. let's step back from the brink let's stop victimizing the american people and get back to work on their behalf. >> whether or not democrats will see the pledges come free for today's measure. six democrats that voted no on friday are up for re-election. leadership needs at least 12 democrats total to vote for the cr with senator john mccain out and two republicans rarely if ever voting in favor of short-term bills, kelly. we just got word that both party's caucuses will be meeting at 11:00 a.m. this morning ahead

of the key noon vote back to you. >> it will be a busy one joining us is house majority leader kevin mccarthy. thank you very much for your time this morning. >> thanks for having me. >> 12 noon, are you keeping the government open or reopening it, i should say >> we're very hopeful that it will in the house we passed a continuing resolution. we didn't want to play any politics we funded the children's health program and we funded the government so we could solve this dak at that issue we've been meeting on a bicameral bipartisan basis in my office every single day. meeting down at the white house. we were making good progress, unfortunately, on the senate side they shut down but they can't tell us what they shut down over so it's very difficult to figure out how to get over this. >> this morning we had another guest, a d.c. analyst type suggesting that chuck schumer was, quote, unquote, sucking in the gop because if there ends up

being another short term extension, all of a sudden you're up against the march debt ceiling hike this could get pretty nasty. does he have a point >> no. what chuck was doing in this process, he doesn't know why he's doing it so he can't tell you why and what it takes to get out of it, but unfortunately when you start this on a weekend, nobody wins on this when you get into monday, this is a real shutdown now these are people not going to work this is a military not getting paid losing children's health insurance in a number of states being shut down. this is a serious situation. no one is going to win that's why when i think when you look at the compromise, mcconnell brought people back over schumer said he's not sure of it because he can't tell you what he wants out of it. >> do you think that come noon that the senate should consider just opening the government with 51 votes >> i think they need to open the government, yes. takes 51 votes, do it. that's the same percentage it took to keep the government open

in the house this has become a real challenge that people would hold you hostage that you have to believe with 100% instead of what this government is really created upon, you have to find compromise. >> leader mccarthy, some would say the far reaches of your party, your own party are holding the rest of the caucus hostage with demands that senator graham has called extreme and unrealistic, speaking of their views on immigration. >> that's not true if you look at the vote, tell me where those extreme elements of our conference worked in keeping the government open. so you can play politics on both sides, it's easy to do i represent people before politics and solve the problem if you're serious about that, why are you afraid to have the government open, go back to the table and solve whatever problem you want we have passed on this side of the house all the appropriations bills. we have passed the supplemental funding. in texas, florida, puerto rico,

virgin islands that's all being held up by chuck schumer. children's health insurance is held up by chuck schumer worrying about something in march. >> senator schumer was said to have offered full funding for the wall if that's the case, why don't we have a deal? >> that's not true when we were sitting in the white house bicameral, bipartisan, we narrowed it to four topics to solve the daca issue. what's most important, you don't want to be back here in another two years dealing with the problem again. yes, you have to deal with border security. he didn't offer full funding for it he said i'll promise it in the future sometimes he'll vote for it he didn't deal with if you're going to deal with chain migration which brings problems in the future or even in the merits system what we're going to do. let's be responsible here. solve a problem to put america on the 21st century going forward. >> this all seemed to start in

that now famous meeting where you were there and the president was there and he said, bring me a bill, i'll take the heat, i'll sign it and then it was whether it was going to be a clean daca bill or not to which you had to jump in and explain to the president that your parts of the party were not for what the president seemed to be suggesting at that long conference table. >> well, no, that wasn't just my side of the aisle. that's the democrats as well what you didn't see in that meeting before everybody departed, remember, you have senators, members of the house, republicans, democrats every single person at that table, they came from all spectrums of philosophy on this, they all agreed that we would deal with four issues. those four issues i just named to solve this problem. and because the president was able to bring us together, that really kick started the process to actually solve this problem we had been in my office just the day before the shutdown. it was -- it was senator durbin, it was steny hoyer, the minority

whip, it was the white house chief of staff, it was myself, senator corn nin akornin, the sf homeland security. this is the most progress we had made but the next day they shut it down. if they want to get back to the table, open the government back up, let's get back to the progress we were making. let's solve this problem for the american public and stop having the temper tantrums and putting the american people in jeopardy. >> to what extent has this soured the anniversary of the president's first year in office and brought to the forefront the divisions and polarizations that exist in politics and in the country at the moment? >> isn't it kind of ironic that the shutdown happened on his anniversary? and when you talk to the other side they get a little smile in themselves they dislike this president. they don't want to give him an opportunity and they want to soil the country based on when an anniversary is. i think that's wrong you can disagree with somebody, but let's solve a problem.

let's put people before politics and get this done. >> let's talk about people then. are you for -- >> yes. >> -- permanent legal status of the d.r.e.a.m.ers personally >> i'm for solving the problem if you deal with all four of those, i don't have a problem. i do not want to be back at the table one more time. if you really understand the immigration system, we treat people differently who come here illegally. we tie the hands of the border security whether somebody can go back so if somebody comes from mexico, yes, we'll send them back if it's contiguous. if it's for another country, no, they get a ticket then they're sitting here for 20 days, then they're free to go about the country. what happens in the seven years before they go back not court, they've probably gotten married, have children, we have a dilem a dilemma. that is unhelpful and why would we repeat those same mistakes? let's solve the border security problem. then when it really comes to chain migration, should someone be bringing in -- yes, i think

they're family, children, spouse should she bring in their brother and sister and all their families or the married children that's expanding it beyond i think there's an easy place where we can find compromise where both sides can get there and actually help those individuals that need to be across. >> we have a trump tweet >> sure. >> let me put this out there for a second nothing terribly new democrats are turning down services and security for citizens in favor of services and security for non-citizens. not good you know, there are some people, obviously just based on polling that does resonate with a fair number of people i wonder overall, you mention how the shutdown has the effect they're trying to take the sting out of it as well. is the risk that americans start shrugging their shoulders, shutdown, no shutdown, i don't care is there a lot of potency in today's decision >> well, i think the most important thing to do today, open the government up and solve a problem. there's a lot of truth in some of that tweet because the one

thing that's happening here, daca doesn't go into effect until march 5th, right. >> what about that -- >> what happens in the military today? >> we've got the injunction, right? what happens if they rule and say -- >> that will continue on then. >> right >> the court ruling keeps it open so you're shutting the government down over something that doesn't exist today but you know what dose exist today children's health insurance program in the seven states they're going to shut down today those individuals in the military not being paid. >> senator mccaskill -- >> it's putting the country at harm. >> senator mccaskill attempted to bring a bill to the floor to pay the military and bring death benefits majority leader mcconnell wouldn't let that happen. >> you know what else they didn't bring to the floor. the appropriation bill that funds the military to keep us in strength they've been holding it. did they bring a supplemental that gave the funding to those

in the floods and hurricanes no did they put the bill forward that's going to fund the children's health insurance program? easy to do after you're in a shutdown because you want political cover. let's not play small games they have held every bill up in the process. when you listen to them saying government's not working, they wanted this in an anniversary time, and i think that's wrong i've been on the other side of this and i realized, shutting the government down does not work for anyone and the difficult part is they don't know how to get out of it. >> if they do it with 51 votes as you just suggested they should this afternoon, worried that opens a can of worms? at some point you may not be the party that has that 51 obviously democrats went first and got rid of certain things several years ago. are you sure that's a step worth taking at this point >> you know what i think really should happen over there a filibuster should be a true filibuster if you want to filibuster a bill

like mr. smith goes to washington, you need to sit on the floor until you can't talk any longer and then you vote now the government has to be shut down. that's not how the senate was created. for schumer to say i have to have 100% of what i want but he can't tell you what i want, why does everybody have to be harmed why does our military, our children in the house it just takes 51%, 50% plus 1 to passion it. >> different animal. >> they're going to have sleeping bags and camelbaks going if they have to bring this back. >> we can all find a solution, but the one 24i7k i withing i w you in this process. if i tell you if i hear from senator schumer they have the house, presidency, the government doesn't work that way. he's trying to play a game with the american public. >> thanks for joining us this morning. >> thanks so much for having me. >> it's going to be an interesting couple of hours in washington kevin mccarthy. coming up, don't forget about the little guy

a new read on how individual investors are feeling about the market that's coming up next. tomorrow on "squawk box", do not miss an all-star lineup from the world forum in davos, switzerland. among the newsmakers joining omcky, andrew and we have ceos fr paypal, uber, bridgewater we will be right back.

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♪ ♪ welcome back to "squawk box. let's get a look at how everyday investors are feeling about this market joining us is charles rockblood. charles, good morning. >> good morning. >> so we think, you know, flows have picked up from individual investors joining the party. are they starting to feel better about the rally and how long it can actually last? >> yeah, i definitely think there's an uptick in optimism. we saw it really coincide when

the tax bill passed, and really over the last five weeks we've seen sentiment optimism be above 50% four times it's at an unusually high level right now, but we certainly saw it shift really right when that tax bill was passed. >> i'm looking at the results of your most recent sentiment note. bullish, as you say, is up 5.5 percentage points to 54.1% that is what you say is unusually high >> yes and the cutoff point's about 48%, 49% what we've tend to have seen when optimism is unusually high, we see the market under perform. it doesn't actually go down on an average or median basis, but we tend to see it under perform the markets by about 2 to 3 percentage points. the s&p 500 under performs its historical averages. if we go out to 12 months it's about a 3 to 4 percentage point underperformance when you look over the long term

since '87, the stocks have typically climbed so that's why we tend to say -- tend to see it under perform, not necessarily go negative, but certainly some indicators are high. the intelligence investors, newsletter writers, i think that's at the highest level since '86. so there certainly is, relatively speaking, a high level optimism being reflected right now. >> is there a level where you'd start to be a little concerned you're already starting to hear the euphoria word being tossed around. >> yeah, and it's interesting because i'm hearing a lot of people talk about their markets but we have a lot of our members who are also fearful that a correction is going to break at some point this year even though our members are optimistic, when we asked them a few weeks ago how's the market going to perform this year, about half the investors said somewhere in the single digit range gain so i think a lot of people are optimistic but they are concerned about valuations there's also a lot of concerns about maybe we've gone for too

long without a correction or a pull back. i think we're getting close to 70 weeks without seeing a pull back in the s&p 500. there are a lot of expectations that sometime prices are going to pull back although nobody is quite sure when. >> charles, we'll see you soon thank you. >> thank you. still to come, could a top twitter exec be on his way to a finance startup? we'll head to the west coast for that story when we return. i'm a small business, but i have big dreams, and big plans. so how can i make the efforts of 8 employees, feel like 50? how can i share new plans virtually? how can i download an e-file? virtual tours? zip-file? really big files? in seconds, not minutes. just like that. like everything. the answer is simple. i'll do what i've always done, dream more, dream faster, and above all, now, i'll dream gig. now more businesses, in more places, can afford to dream gig. comcast, building america's largest gig-speed network.

twitter could be losing a top executive, but what does this mean for the social giant and the startup that could lose him? sorry, could gain him. julia boorstin joins us from los angeles. julia? >> good morning to you, anthony noto is in talks to take the ceoon at social financeor sofi focused on student loan refinancing and mortgages. neither twitter nor sofi has any comment. our source tells us that terms of the talks at sofi are still being negotiated noto will make a decision in the next few days. sofi has been looking for a new ceo since mike cagni left following a sexual harassment scandal in september

with noto's track record as a banker at goldman sachs and his job at twitter, he would be a good fit twitter is likely to try to keep noto considering that ceo jack dorsey splits his time between twitter and square and noto has been leading his time on live videos so twitter shares have gained about 42% over the past year as the company has shown signs of growth the stock shooting higher after the last earnings results beat expectations and the company provided stronger than expected guidance for a profitable fourth quarter. we expect to hear more both on noto's decision and twitter's fourth quarter earnings out february 8th >> julia boorstin. thank you. defense contractors have a lot to lose in the government shutdown the costly details of that are ahead. first, as we head to break, a

look at u.s. equity futures are lower. dow wer lo49 points although the nasdaq has turned positive we'll be right back.

♪ ♪

♪ back to work on this monday morning. good morning, welcome to "squawk box" right here on cnbc live from the nasdaq market site in times square among the stories front and center, one of the more significant earnings reports will come out this afternoon that's when netflix reports after the closing bell analysts think netflix will report profit of 41% per share on revenue of 3 point be point $3 billion investors will be keeping a close eye on the company's subscriber numbers. the largest east coast refining company is filing for chapter 11 bankruptcy protection philadelphia energy solutions says it's been hurt by the costs of regulatory compliance it has secured $260 million in new financing and says it doesn't expect the filing to have any immediate impact on its workers. xerox is being pushed to explore a possible sale this morning. "the wall street journal" says that that push comes from

activist investor carl icahn and darwin deason. between them the two own 15% of the office equipment maker they want jeff jacobson to be replaced, the ceo. it's day three of the shutdown, and if there's a sector most at risk it's the defense. >> here's what continues despite the shutdown you have daily military operations around the globe with active forces staying put despite the fact that they won't collect their paychecks until lawmakers strike a deal, but the manufacturing and delivery of new equipment and weapons, that's all very likely to be impacted so lockheed martin warns, quote, this shutdown negatively impacts hundreds of ongoing government programs and thousands of our employees across the u.s the shutdown could result in costly schedule delays and breaks in production that will interrupt the delivery of critical equipment to our u.s. government customers. lockheed and other contractors implementing contingency plans right now.

industry experts say the longer this drags on the more costs will rack up because those delays will be inevitable. it will start with smaller suppliers furloughing workers, halting operations that will ripple up the supply chain in 2013. some production lines could grind to a halt in as little as a week so when you're talking about shipbuilding, for example, which hinges on a tiny margin of error, that's time that huntington ingalls, general dynamics, lockheed martin would never be able to recoup on those production lines continuing resolutions which is what we've been operating on for almost a decade is almost detrimental. crs mean no additional money beyond the last budget and no start of new programs. the air force warned that could delay the delivery of northrop grummond's b 21 ste 1 stealth b. >> that's ironic because of the general need. >> exactly

when you have some of these non-essential defense employees, d.o.d. employees that are being furloughed as well, the expectation is also that the budget proposal for the fiscal '19 defense budget is going to be potentially delayed and the expectation now is that this big military buildup that is expected to be proposed by the trump administration probably won't happen until 2020. >> 2020. >> 2020. >> wow morgan, thank you. let's turn the focus back to markets and focus in on small caps joining us is brian wright, chairman and ceo of b. really financial. thanks for coming in. >> thanks for having me. >> we've been doing small caps for 20 years there's been three opportunities in my mind to make outside returns in small caps. dotcom bubble blowup, recession and right now in my mind is -- there is a divergence between small cap and large cap, particularly value where you're

not in any etf or you're not in an etf if you're not in an etf the difference between active and passive is crazy it's bubblish. we'll get small caps where the tax changes can really be more meaningful, management can divert those funds into the businesses much quicker than larger caps. we think they're going o outperform greatly. >> to what extent does that call rely on seeing genuine reinvestment not just from the small caps, from the big caps too and the way it filters down. does it rely heavily on seeing larger investment as opposed to just big share buy backs and the like >> so small cap company in my mind can move the ship a lot quicker than a large cap company. i think as you're looking at a larger cap company, the investment time frames will be larger good management with discretionary cash flow is going to be able to move the needle a lot quicker. i think you're going to see reinvestment happening a lot more than some of the speculation where the money is going straight to dividends. i think entrepreneurs will be

excited to put the money to work in businesses. we're seeing that in the companies we cover. >> you've mentioned we had a previous guest mention, we were just talking about this whole issue with etfs and passive investing and whether that's contributed to a lot of the market gains and maybe even bubbleiscious type stuff if you want to call it that is that leaving small cans behind you could own an index of the russell, right >> i think it's a huge bubble. i think that what's happened here is that -- and i get it i understand the investor wants to buy one security and not have liquidity. the divergence in a small cap company in an etf versus a small cap company not in an etf has gotten really over blown. >> when you talk small caps, are you talking about the ones in the russell 2000. >> yes. >> or ones smaller. >> no. >> what we want to do is try to find a company that's not in the russell but will go into the russell. the demand is out sized. that's part of our investment

thesis try to find a company that's gotten booted or haven't gotten in. >> one of the things the people are talking about in the trump administration is deregulation does that benefit small caps as well do you think we're going to see more consolidation >> if you're $100 million small cap company and it costs you $3 million to be public, that makes no sense to the extent that can be rationalized, so that means less regulation, boards taking a more aggressive tact as it comes to expenses to be public, i think that's meaningful. i'm hopeful that small cap companies would run -- we need to get companies public. it can't be so expensive. >> i know you're saying active management, you want to pick the companies themselves are there sectors that are really in the sweet spot where valuations are low, benefit from tax plan, benefit from deregulation >> consumer stocks have been really beaten up i think that omni channel is a real market. we're starting to see some of those companies bounce back. small cap tech, maybe they're in

a cycle that's slower, product cycle that's slower, we're trying to find companies that, again, are out of favor. when they turn there is a demand equation that's never been there before, which is, you know, 45% of the market is in passive funds. >> okay. brian, great stuff. >> thank you. >> thank you very much this morning. o is this the ideal match-up when it comes to the business of the griridon we'll talk tickets, merchandise, sales, tv ratings coming up. owe your brain is an amazing thing. but as you get older, it naturally begins to change,

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♪ ♪ welcome back to "squawk box. futures pointing low we have gained a little bit in the course of the last couple of hours. down 60 points now the nasdaq back in positive territory up a point while we watch what's going on in washington. we're watching earnings season, guidance will be a key factor as companies lay out their expectations for the impact of tax reform joining us on more on what to watch is david oreilia very good morning to you more broadly as we consider q4 earnings season as a whole, do we have to do better than we would have thought a month or so ago given the amazing start to the year that markets have had >> good morning. yes, i think one of the key factors that people are going to be looking for are to see companies raise their guidance and we'll be expecting to see

upward revisions to estimates. and a lot of that isn't actually factored in. if you look at the 2018 pe ratio right now it's currently at 18.4%. 18.4, but if you were to put in an effective tax rate of about 19%, you'd see it coming down to 17 and that's also not incorporating repurchases, things like that >> one of the take aways, david, when we look at the numbers for q4 itself be, in fact, yes, the u.s. earnings growth is strong but the rest of the world is really outstandingly strong at the moment >> yeah. so if you're looking a the the u.s. s&p 500, earnings are expected to be strong. expected to be 12.4% people are going to be watching for global synchronized growth and the five rs of tax reform which are repatriation,

repurchasing, reinvesting, rates, and raises to guidance estimates and dividends. >> right and the international picture going forward, to what extent do you think we get that kind of tail wind to growth that we got last year? do we get that this year for u.s. companies >> yes, i believe so if you look at all companies in aggregate, they're expected to see 39% growth all regions are expected to see double digit growth this quarter. europe is expected to grow the strongest, which is expected to grow 300%. then north america is expected to see earnings grow 15% >> has the dollar been a big factor through the course of 2017 clearly it's been weak and it started the year weak. again, if we saw that turn around, would it concern you about the levels of earnings growth that we're likely to see in the year ahead? >> it has been a tail wind, but i don't believe it would be much of a head wind given all of the boosts that we're seeing so you see the strength globally

for the multi-nationals. on top of that you have the extra boost of the tax reform. so it's not something that i would be looking to be a significant head wind. >> david, before we let you go, i thought you were in davos first. jackson hole, looks lovely there, too. >> tafd's already beaten then. >> it will be hard to top. i was going to ask you, i think this is a good point the companies may use or should use some of this money to invest in their pension funds so you're telling me that the top three highest under funded pension funds relative to shareholder equity are h.p. ink, boeing and it couldn't have better market conditions right now? >> correct we'd be looking for companies to take some of the -- take advantage of this situation and reinvest boeing -- actually, if you look at all ten of the top ten, they have under funded pension fund

to equity above 1% ratio so -- and boeing, i believe, has a pension obligation of i believe 75 billion so this would be a good time to try to strengthen up those balance sheets. >> david, thanks for joining us this morning >> great thank you for having me. all right. the match-up for super bowl lii is set after the afc and nfc championship games yesterday the patriots and the eagles squaring off on february 4th in minneapolis. we're joined on set. should be a good match-up. >> should be should be a good match-up. when we talked to the experts going into the weekend, what would be an ideal match-up, what would be a terrible match-up this ended up being the most ideal match-up you can ignore the minnesota thing. the pats was key not having them versus the jags. if the jags had made it, you would have seen ticket sales really drop. if you look at the tickets alone, big spike up after that

philly win ticket iq this morning seeing the average asking price is $9,000 the cheapest ticket, $4300 that's 50% higher than last year's record price. that was an average of $5,000. so just think about $5,000 it's 70,000 seats in that stadium, you could be talking $350 million just in the stadium. >> not for the nfl, this is people reselling or not? >> the nfl maybe gets $50 million out of that. the way it works, they divvy out some tickets to all of the teams, all of the owners, vip, some players i think every player gets a pair of ticket. all of these people don't want to go. they flip it on the secondary market philly fans, jim cramer's family wants to go. they went up that's one factor. travel flights between philly and boston, up 30 to 50% already overnight. merchandise is about 10% of the entire league revenues pats are the number one selling

team for playoff merchandise while eagles are up 150% from last week. that's a couple of big business factors. tv ratings will be interesting 20% of people still say they're not going to watch the super bowl. >> 20% because of the anthem protest. we don't know if they're lying playoff ratings are down 10 to 20% depending on the game. you've got a lot of factors here as far as the match-up goes, this was the best combination because you have an eagles team that's never won a super bowl. they won an nfl championship before it was called the super bowl the pats every year could be the last year. that's why you're seeing the ticket base high. >> biggest favorites patriots seen as most likely to win so that 5 1/2 number is the widest we've ever seen. >> why is the average price per

ticket going up? >> because is this the end of the patriots if you're an eagles fan, this is probably your one chance this century to see them in the super bowl. >> 5.5 points, the biggest spread -- >> in the last decade? >> yeah. usually pretty tight in the super bowl neutral site you don't get a whole lot of home field advantage generally in the three-point range. >> 5.5 -- >> feels like it's big for soccer but not football. >> vegas has an incredible knack of getting these things pretty close. >> yeah. >> they generally make money on super bowl bets. i think only twice in the last 20 years did they lose money on it i think it was the giants over pats the one year. there was the chargers/49ers in '95. generally it's $180 million vegas sports books have made cumulatively that's just the vegas books, what's monitored. >> how would you frame this? >> i've already put that out on twitter, wilfred thank you very much. >> since we're not on twitter,

why don't you share it >> destiny versus dynasty. >> i like it. >> the team of destiny, eagles, never won it dynasty, is this the last run for tom playedy. >> as a redskins fan you hate this whole thing, right? jim cramer is going to be unbearable he took wilf to a game -- >> jim takes me to the redskins game every year. i'm happy for jim. i'm happy for jim. >> oh, yeah. >> i didn't just go to an eagles game i also, as it happens be, kelly, went to a pats game. i'm kind of a lucky charm. >> yeah. >> are you going to the super bowl >> i'm not $9,000, no thanks. >> show? >> yes >> halftime report >> the najerians are from there. they have home field advantage. >> that is pretty cool. >> they're pain is cramer's gain we'll talk to them next. take a look at futures right now. get set for the first trading day of this week

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welcome back to "squawk box. 72 points on the dow and around 2.6 at $5. it is down its fifth negative week soft is down half a percent of the british bound. it is amazing. the euro is up about a quarter of a percent all prices for you this morning down 1.5 last week roughly flatten the week, 63.4 >> stock watch this morning, duncan brands upgraded to outperform performing blair. tl company puts enough innovation in place to drive it higher duncan is up 26% this morning.

apple shares down half percent free market. >> lets get down to the new york exchange, jim cramer is joining us, congrats >> you know what it means, we have been to games together, it is a big deal. it is kind of destiny verses dynasty, i was thinking. >> i heard so much >> keep it up. >> someone has that? >> someone stole it and tweet it >> i claimed it and i got the pats >> i will shares the proceeds that i get from it don't worry about it jim >> what do you think of the shutdown, are you concern about it >> i think this one is one of those where a market is trying to figure out okay, how many people who work for the

government is going to be hurt and about the irs? i think people are sympathetic, people work for the government it is not day-to-day because we have not been able to over lay that on earning seasons. it is kind of to figure out until something really bad happens. >> a lot of earnings to come this week, what do you think of netflix? >> look -- everybody says it is going to be great. for it to be unbelievable to be mover, it is the best performer in that group. i think it is going to be good i just thinks the commentary, they're not going to set themselves up failure. >> what about all these fuels this morning especially in biotech like 62%, they did the juno take out. what do you think? >> i think it is all desperation

but correct devastation. sanofi and eventually it is going to go away these are all -- i don't want to call celgene is the big perfo performer, these companies are one product that determines them >> jaime, the lions, 5.5 you guys have been playing the under dog card exceptionally well the atmosphere was absolutely insane yesterday, did you get any sleep? >> no, why bother. it is my under dog mask and i am ready. >> i knew you have that handy. >> i am tired of being the under dog because you know what, we

pl play with a different spirit i could not hear anything. we should put bitcoin in the left hand corner just to remind us no one respects us. the vikings, you know what do you have to say? score! >> pete nigerian is going to be upset today. you know what team occupies my heart but i was thinking of you guys as well >> you guys have won some super bowl, we are hungry. >> does anybody likes brady? >> i am not going to say anything right now >> he's a sixth round pick, i have a lot of respect for the guys, jim. >> foles is the fifth round pick >> well, it is destiny, jim.

>> price of tickets. >> great stuff >> i don't care. >> we'll see you in a few minutes time don't forget tomorrow's ""squaw box. more ceos are joining us a bk ren coleeup. wereache ia up of minutes. we took legendary

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we are in the chairs, drivers in new york city could soon be paid more. between 6:00 a.m. to 11:00 p.m. of $11.20 for a car. what are they taking cues to london >> i know. it is 11 pounds 50 i don't know where they got $11.52 from. >> from my one sample of one person, i think it did it is cheaper to get a taxi than

it was >> deblasio was originally against it because it hits everybody. you know otherwise -- >> i think it is aggressive though yes, $11.52 is more but also it is easier than subway. >> what are you going to pay for, the toll at the tunnel? >> you get the reimbursement but not the gw bridge, it sounds like a bit of a mess we'll be honest, we'll 199see. >> that's it for "squawk box." "squawk on the street" is next ♪ congratulations to the philadelphia eagles, the new england patriots both headed to the super bowl 52 after