a 10% raise. >> michael corbeck from city group is kicking off things for us >> and secretary wilbur ross >> make sure you join us tomorrow right here in the snow of davos "squawk on the street" begins right now. ♪ good tuesday morning, welcome to "squawk on the street." the government shut down end, we watched davos and trade. europe is green. our road map, earnings from netflix and verizon and procter & gamble and more. tesla says they sell a big

package for elon musk if he hits some key benchmark netflix is opening at an all time high. hastin hastings last night on the earnings call. >> as long as we are able to continue which we can measure in viewing hours and things like that and asking our customers to help us fund that at higher levels as reasonable if we want to gain relative values for the customers then we would not be changing prices >> domestic better, q 1 guidance is better. margin growth, they give it to the critics who gave bright the hard time >> that was the best part of the call pay attention to google trends and rotten tomatoes. it was all about notion of

commercials verses statistics. they use a nice blend of algorithm deciding whether you like it and decide whether it appeals to you and not to the mask concer towards the conference call, they're talking about 5 millions to the max mere. one of the things that's incredible was they talked about "bright. it did well in the u.s. but it is the rest of the world they have a tremendous grasp of what the rest of the world wants. how they do it who they are they are working in strange ways in netflix >> we'll hear what hastings says about "bright" and the crowd they got their first acting nomination as the oscars nomination comes out >> i think that bears are a

dangerous species here because people will throw money at a company that has a vision of being a worldwide network. they have a not -- not only do they slide the competition, look, the more people adopt our model, the more we are on your tv, we are on your pc. we love working with cable they want to be switzerland. a combination of every country in the world this conference call is a must for ceos they have to understand how to win over people. i also like the flow i love the fact that they pick an analyst who's done a lot of work it is a beautiful narrative. reed hastings, i cannot say enough great about him they have a conference call that explains to you like why don't you like our stocks?

we don't care. we know where we are going, get on board and go home >> you know what it is, it is one of those conferences it is a playoffs conference call this is a company, i wish this were like, they should do their conference like from argentina or asia. they are just -- >> were they truly disrupting of the menu of what's available on tv >> disrupted all >> here is what reed hastings said last night of two of the quarters were the crown and will smith's movie "bright. >> so many people are talking about "bright" or "stranger things 2" or "the crowd. that's what pulls people that have not joined that all their friends that's talking about the shows. that's the dominant accelerator. >> do they get squeezed once we start to see disney in the

light. >> it makes it clear that they are welcome and they're not fearful of anyone. the content itself and how much people want to be apart of the netflix world. s serandos, his background is 30% arithmetics. what do they do? they must know that i am a sadistic tv watcher so they push "puni "punisher" to me and they push this "black mirror" episode, the first one they pushed it to me and i am telling my wife, listen, give me a break, i am binging right now. she thinks i am binging on gin, no, i am binging on hastings >> i think the price target

moved the other day, at 280. we are almost there. >> this is one of those few ones where you never got a chance to buy, you have to chase it. the analysts could not raise the number quick enough. >> key bank went to 270 on thursday >> when you listen to the call, you think they're lowballing the street you think it is a reasonable estimate and more people tend to like it than we thought. >> it is extraordinary >> while we are talking from twitter. anthony noto, the coo is leaving. he's been named as ceo at sofi >> i think it is brilliant i have recommended many major banks step in and buy this company. why? it is algorithmic.

they can anticipate to pay better than you can. listen, you do marcus which is this small business, you should do sofi. obviously, anthony noto, they have this desire to make it so that sofi is in pending for a long time. i am proud of anthony. he went to twitter and he established twitter as a more solid company and not a take over together. sofi is the modern day bank. we need netflix and sofi we need these companies because they are without the doubt the best models in the world computer science merged with algorithm. if you graduate from school and you have a lot of debt, you can get a loan from the bank knowing the model is fabulous. >> it is big news. we talked earlier in the week of what it meant for twitter.

>> i am trying to book the guy it is tough to get the guy >> leaving on a high note. >> absolutely. he always did, i always well people this. went to west point and he served and learned everything that makes him great from west point. we are going to point that out we are missing the big story about this man >> congratulations, anthony. verizon is the story today revenue did beat forecast. the company says it expects positive cash flow from cash reform this year zup up to $4 billion we'll have a conversation with lowell mcadam today. >> oath, by the way, they had 2.2 billions

armstrong's totally delivering far more than i thought. this is the kind of call which says you know what, the market went up big, tax reform. this stock moved from 48 to 53 and now 54 last night, it was up a dollar and a half on stories they're going to do gambling i was waiting for john ledger who was up have you looked at fiscal year 2015's results we beat them in this category. >> it is true. >> t-mo for the year was 2.8 and verizon for the year is 700, 4 k. >> verizon is like the eagles. i thought skull was something you said when you are having a cockta cocktail

i do think verizon is making a lot of money this stock has moved up. not only kimberley which is an income stock gout the income stock coming up and the insurance companies, it is so darn boring. i remember dealing travelers on an umbrella policy we know your zip code and address, we'll make that policy. travelers is an under writer that knows how to under write. they don't get talked enough because it is boring >> j&j, i am not going to call this guy damn fool that's not the way i am. that's out of my league. that's the old days. >> your point of the income names, it pushes up against the idea that a two year and a five year paying more than the s & p dividend yield would put these names out. >> go back to larry fink, he's

talking about the longevity issue. by the way, john flan erie have talked about that. >> people who are in their 50s and 60s who think somehow we can retire on treasuries no >> because you are going to live 20 years longer than you thought. >> exactly >> the ceo of j&j, triple balance sheet which i like in the u.s. there is to government shutdown at j & j they don't fool around there is no schumer verses forever. again, thank you for serving west point believes in making money for shareholders and they come primary i like the model of j&j verses washington one does not have a clue and the

other one just know how to make money. >> president trump, i know people don't like what i am going to say this is his morning. i mean these companies are returning capital. j.p. morgan is huge. it is not a stock story. j.p. morgan is returning capital to people. >> here they come >> oh, they're coming. oh, i am sorry i didn't mean to mention the fact that this guy is producing returns >> the president is dpoing goino mention all the things you talked about on friday at davos. >> he's not a football fan more than i thought >> it is a good opportunity for him to take victory laps >> when we come back, we'll get some more of the movers day. later on, marc benioff in davos and we'll talk more about the government getting back to work

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expected >> net charge on taxes is 628 million. they cut prices in every segment except for beauty where they got organic sales of beauty of 9 >> 2% growth is not enough >> david taylor did have a plan away from what nelson was saying they're working well together, i know that. what i like about this is that this is a company that can go from 2% to 4%. that's how they are setting themselves up. i just think if you sell it now, what are you going to do trying to dodge a dollar decline? i mean grow up procter & gamble is getting better and better. and we have colgate on friday, that stock is up way too much. i like to know what's going on

there. i do think that procter & gamble is doing all the right thing against the backdrop that's so tough. >> look at what kimberley had to do kimberley is cutting 13% and 5,000 jobs they're going to shut or sell 10 production facilities. a lot is state size. the price war is being led by procter & gamble >> i think kimberley is so committed of doing for shareholders, it is much more difficult to work for kimberley. >> i think procter & gamble is more streamline. i think this is going to shock people how well those two work together i think mr. taylor, people don't understand, this guy was committed to a leaner and better procter. had a tough hand, he would never do that. that's not his style

i think procter & gamble is going to have a multi year move. those who are selling it now are missing out on what i think is a great boost and great income i like this company. >> we'll watch procter & gamble today. other big story is davos they talked about the looming stimulus that's on the way here in the states and what it means for what he called a potential market blow off in u.s. equity take a listen. >> we'll have a jolt of stimulation into that. there is a lot of carbon the sidelines. i don't mean just investor cash. i think banks have a lot of cash and corporations have a lot of cash we are going to be with cash i think that's going to produce a lot of stimulation and perhaps a market blow off, in other words, we are in a situation where if you are holding cash, you are going to feel pretty stupid >> so then investors are going to have to know when to be in or

out. dalio's answer was hey, that's my game. the u.s. is more attractive right now. eventually there could be a blow up here. one of the things when i say the term blow off verses mr. dalio is, yes, that's his game our game is not mr. dalio. our game is to help investors. you will not know when he decides this blow up he will not call us and say oh, jim, i am out of it. that's not what they do. he's a broad thinker and i really like him. people have to own companies, stocks they like whether it is j & j or procter & gamble and forget about the concept of blow off. they're going to be out in the market doing a big spurt and they're going to regret it people should not time, they cannot time like ray dalio

they should earn index funds and a couple of stocks >> how is your play book going to change when you know we are in the midst of it because you may have a sense that we are >> when you get companies, like my position in facebook that we talked about in average around 55 it is way too big. you cannot have it it is too big. we call that a high quality problem. >> sure. when you have companies that's just nothing but right it is important and taking some off the table but not the leave the stock market because the choice cannot get you to retirement we do not want people that are 72 to say what am i living on here that's our job race to make people billionaires and our job is to make it so people can live on retirement. >> as long as they are going to live >> that's a growing teheme with

us when we come back, we'll get cramer's mad dash. and we'll count to the opening bell on this tuesday, don't go away

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♪ ♪ oh, lets get cramer's mad dash we were talking about adobe rally. >> can we celebrate this company for a second the emersed story and cloud base this is a company that's going

to be one of the next company o multi hundreds of billions they are doing things to make it if you want to be involved in digitized, this is the company i love vm ware, and adobe. we know adobe as acrobat you don't know unless you are in retailers and adobe is the driver of commercial activity and retail and you know they're the ones, by the way, when we think of paypal, he said 50% is mobile now. boom adobe is the only key for this they are an engine i have to speak for ryan because he's too humble to do it himself. the man is a genius. he's a genius. people who buy their stock, they say it was no good here, i guess up here they're going to warm up

to the stock >> the other news is that cfo, mark gary. >> typically, when a first tier cfo resigns like that or retires, the stock is not down >> he will be around until we get there or a good one. >> we'll watch adobe today opening bell in just a few minutes, don't go anywhere

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you are watching "squawk on the street," live from the financial capital of the world the opening bell is about two-minutes or so. busy morning ton of news. we'll get texans and ual tonight. the president may hold a formal signing for the section 201 trade decisions, tariffs on washing machines and solar

sales. already china have expressed displedi displeasure for us >> maybe putting some back in the game it is been ruth less of what the these so-called partners have done that i have to stop dumping that stuff, too i am close to book these industries it is remarkable how we have allowed our trading partners to destroy great companies. i mean really -- >> any specific partners more than others? >> south korea >> i think the south korea in order to be able to make sure they recognize that we are with them verses north korea. we have sacrificed auto jobs and ma machinery jobs >> to get them working for us.

>> we bail them out everyday and it is the only people that get hurt for americans i look around, it seems like america. >> maybe i got the run or maybe i am not sold anymore. >> lets get to the opening bell and s & p, it is xerox and nasdaq and viacom. >> don't you love the fact that we got two companies that are very much in the news and very much in the air but i like to see team's spirits all the time. >> absolutely. >> when you decide to destroy it, great american company by letting them dump whatever they want take a look at other household names. look at that, you cannot compete on sheriwisherwin-williams

they have been able to dump those machines it would be terrific to see whirlpool be able to have a leg up against competition >> you were tweeting this morning about morgan stanley have been busy looking at chips and raising their estimates on smd by 10% >> doctor sue, come on now talk about this they say a secondary play is on n nvidia amd got some financial with a bar partner. i continue to like nvidia, they have machine learning. gaming is so huge in this

country. we have not talked about it enough for the most part, people game and that's what they do and they go to wing stop. >> nice number today you mentioned facebook and the charitable trust getting large within the portfolios. >> is nvidia the same story? >> no. i thought jensen wong. now, another guy he's kind of a rock star he's a rock star among customers. sometimes it is better >> yep >> travelers had a 40% move at the open settled down just a touch now. >> when you look at travelers and think of the catastrophe they had to deal with. think about how many checks they had to write and look at this company. why? i just think these guys other

than chuck, wow, fantastic >> j & j and procter & gamble and verizon missed up in earnings but made up for other areas. >> there is seller for j & j what an opportunity for americans to get into this company? corski did not come out and say listen, we have generic competition and you don't have to worry about it. he's a straight shooter. you are getting the opportunity by j & j and an unusual discount >> we have not mentioned j.p. morgan yet $20 million push they're going to hire 4,000 and open 400 branches and all on tax reform >> i think it is fantastic i want to hear what benoiff say about it he's been in world leaders

i am going back and forth of what amazon means and still trying to focus on what the cash flow society does. there is j.p. morgan, you know what, we'll put people to work and it is not a lot of money $20 billion, that's real after the tax cut. tesla. the stocks are up almost 2%. it is a 10 h f ye-- 10-year pla. the trend is moving in increments on market cap and fully vest, the company needs 500 billion cash >> i mean this guy, if he gets more than say 12 touchdowns, it is as billion dollars a touchdown. i think this guy is great. i had my toss with him where he

says i am just a holograph, that was a little disappointing and ill advise >> you never forgotten >> no, i cannot. it is a slap in the virtual face i have to admit the guy is real. this is a fabulous article by our friends and colleagues wow, i wish they were all incentives like that >> jim, netflix is up 11%. it is a true break out if we have seen a gap earning this big for q-4 >> how about the fact that it is going up end lessly ahead of that reed hastings, he's got a business model where the cap is too small for the city the market cap is still too small for the worldwide market that it has. totally adjustable market.

if you had this, you can be a customer >> that's a good point the knee jerk is to say poverty levels and income levels will ice some people of participating in this. >> other people when i think of how much money "bright" made and how much it costs me when you go to the movies, it is 50 bucks and sometimes the movie sucks. >> you don't pay for a sitter anymore. >> my kids grew up and they don't know what movies are movies are things that you spend a lot of money and they have nothing to show more >> for $11 a month >> i am watching reed and i am thinking i got this new pc >> i noticed that you were swiping. >> i got it because of netflix

my wife has the apple, the tabl tablet this thing is a netflix ex centra extravaganza >> i go to netflix and i look at netflix and how do they know and how are they inside this ridiculous massive of whatever, the answer is because that's what they do for a living. >> yeah. >> see, he knew. re reed puts that in his calculus who is this man? >> the skeptics still argue that the algorithm is smart now it is about providers or creators that may not want to sell to you so you are on your own and to a large degree. >> my understanding is that

these directors would rather work for reed, for half the money than -- >> we hear that a lot. >> they love it. intellectual freedom is what these guys tend to -- they're not commercial but he is >> we do hear it >> talk about marvel, he always porters on being arrogant but then he pulls back he knows not to be bill belichick. don't bill belichick >> they have an interesting culture. go on their jobs website and read the long tree of what it is like to work at netflix, how hard but also how much freedom, there is no vacation policies or corporate policies they're like do what's best for netflix. >> have you called corporate there? >> no. >> my daughter and i got together, we want to have a movie of the last day of berlin.

we have a russian movie that you may like and it talks about stalling and i said who are you, serena was her name. i am someone working for netflix and therefore, i fork wwork foru this woman had five great movies the stallings movie that he directed -- i mean he killed everybody that he did not like >> twitter is down 3% and below the 50 day for the first time since october. >> well, what are you going to do when you ta i canke a guy with vision, anthony soto, mom, i don't like what amazon do. it is going to be the young person's financial super market. paypal and then mo, these are the young person's financial

service companies. it is a great opportunity, will he be missing twitter? of course. he can make it so it is the actual super market. and you get in there and you think he's going to give you a loan but it is all apart of your financial world because he's got your data algorithm. >> you think it is ipo you think it is headed that way. >> i want to buy it right here >> i think it should open higher than currently trading >> verses to say -- >> yes, that's a difficult morning for them >> the people are out for that business by the way. everyone one of these companies, alexa, they got the ability to do it. by the way, i have to think and a lot of people are down on apple and what it is doing with its home product, the rise on

february 9th do you they they'll get it >> nvidia go fetch >> siri sometimes gets it wrong. i like the privacy >> it will arrive in stores for the 9th. after a long break >> it is true. it is optimal. >> dow is down 20. travelers adding 40 points on the dow. >> lets get to seema mow ddi >> germany is trading at a record high. take a look at the indian stock

market seeing a gain of 300 points or more, prime minister m modi is kicking off with reform. getting attention this morning president trump announcing those new tariffs on solar panels and washing machine as donald trump's first trade policy whirlpool shares are trading lower by 8% over the past six months we heard from p&g, it beats strong sales and beauty and skin care, olay, that brand there is up to 9% lets move on here and take a look at some of the other stocks moving specifically on the earnings front, you will take a look at -- we did hear from

kimberley-clark. we are moving onto cryptocurrency we are seeing that sell off extend boyanother 5% now, the sell off as we have seen in the past not confined to boy bitcoin. an eye opening report found 10% of the $3.7 billion raised in the coins offering have been stolen investors looking to put in more money. carl, reports point out that 25% of ipos have reached their goals in november verses back in june. >> thank you, seema. >> lets get to rick santelli

>> good morning carl >> but, the drift is not big you see at a two-day ten years everyone though it is not exact and precise mark, it is clearly the area to pay attention to it was 2017 highs. it shows kind of quackulating in the low 260s i suspect that could be the high frequency of areas of trade for a while. today the euro verses the dollars. that sums up of what's going on especially of sites of investors and institutional. europe looks more promising and not in the standpoint of central banking or policies or all the cracks of the foundation the upper floors are painted and investors are willing to take a good look. if you look at the euro verses

the yen, you see a powerful euro currency the most powerful since october of 2015 as you see on that chart and we'll finish up with the dollar index now, we are hovering at levels that we have not seen since the end of 2014 or 2015. it keeps walking along the bottom making a fresh pass at history for that data that i have mentioned many traders arebottoms in the s index. this does not seem to be a trade that is look to reverse any time soon >> carl and jim, back to you >> jim, you asked john legere to respond, this is what he wrote back >> every single q service revenues decline -- this case,

they continue to decline on verizon. they're the browns >> that's not fighting words that's just beat down. he's down there giving them business >> he didn't falls off but something happens. >> you know but i will say to john and i love john dearly. you know what alsomatters? >> the stock john, i know you may think that there are a bunch of total clowns this stock have been on fire and it is done well with that yield. with that said, it is closer to the browns >> is it worse than "dumb and dumber"? >> i think it is >> you can call them the bears or the redskins but when you call them the browns, oh, it is not fair >> it is just not right. i know the rest of the country

with lebron james' zip code and understand how it is >> it is not fair. >> another one with the rings and the brady and the wife and all that other stuff >> that's another outfit that's completely bought by the pats. i like craft i mean i had nothing against her but enough by the way, we play -- the eagles play this you don't get 6' 3 feet until the draft. >> get the chance to play the ball >> maybe we put the pennies on and the red pennies, web we are the scout things for him amemdola, holy cow we are still better than the browns

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to some extent i think uber suffers from all of the negatives of a public company because the world is fascinated with everything that we do and we don't get any of the benefits of being public so i think let's step up to the plate. this is a big scale company. it's an important brand. all across the world and we are going to step up and we're going to be a public company that our employees can be proud of. >> dara khosrowhara talking about the relationships and a lot more today. >> i'm fan of his from interviewing him from expedia. tony west is the secret weapon, at the justice department under obama administration he's a great lawyer. general counsel. all that stuff that's a problem

it will be solved by tony west all the opportunities dara will take care of it. one-two punch that's unusual in american business and it's why i respect the team he's putting together they're going to get rid of -- >> offense/defense dynamic >> no more "animal house." this is truly a team that is blessed. tony west gets the bad stuff solved dara takes over the world. >> he also says full autonomy in software, talking probably ten years or more. >> talk to jensen. i will five years. >> dow's up two points don't go away. had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum --

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television for 800. >> jim cramer hosts "mad money" on this rachel >> cnn >> nope. gentlemen regard. >> what is cnbc. >> you got it. >> nice job, gerard. >> thank you cnn? love that. that's a fabulous guy. time warner. at&t end of the 12th year and nice to be recognized by a show that, by

the way, on at our household. >> no higher compliment. let's get to stop trading. >> facebook, remember when facebook decided to commit suicide and wreck it an not making money again and all finished we are just going to phase out, like, ads or whatever? no it's a dollar away from when he said those things and this is what fang is about netflix, facebook, whether it's alphabet having an unbelievable holiday season, you know, alphabet signed up a lot of people and amazon, greatest holiday season on earth. i also point out alphabet i think every time i read about youtube i think about montization. they monetize for the holiday season we don't think of that as a holiday pick.

>> alphabet above 800 billion. >> i know. >> microsoft. >> we have to get our arms around these we really do. it's a different era. recognize something that's really changed and the companies trillion-dollar companies. >> "mad money" tonight >> we have people i would not necessarily -- my wife doesn't -- bar stool bar stool. if they bring those fools t-shirt i'm fine this is new commerce and i have to stay in touch with new commerce even if they have columns you can't click on without making it so my wife says are you kidding me? >> yes, yes. >> doesn't watch the show anyway she would know in jeopardy, what is - >> i think she would get it. see you tonight. "mad money" 6:00 p.m today more on the markets. dow down and netflix is run. back in a minute

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good tuesday morning welcome back i'm carl with melissa, mike's here at post nine of new york stock exchange sarah's off. david's on assignment. he'll sit down with lowell mcadam on the heels of the company's earnings report and brings us to the market today. four dow components as earning seasons kicks into a new gear, government gets back to work and netflix soaring. the streaming giant worth more than $100 billion as reports a boost in sub growth and talking to a biggest bull on the street. >> and all or nothing. tesla announcing what would be the most radical compensation plan in history. what it means for shareholders and more. >> trump's new tariffs what the president is slapping new taxes on and how leaders are responding. but first, the new tax plan having an impact on earnings verizon reporting a miss on the bottom line. revenue beat the company said it will see positive cash flow this year meantime, p & g with a beat on the top and bottom line profits

and down due to the sale of the beauty brands and one-time charge related to tax reform and jpmorgan wages for 22,000 employees increased bay average of 10% and the bank will hire 4,000 employees and open up to 400 chase branches in new cities of course, tracking all of the plans companies announcing afterwards and it's the increase to the wages >> yeah. >> that will have the lasting impact. >> it's interesting. it's as if the analysts not fully ready. the tax cuts weren't baked into the estimates and kind of chase the numbers a little bit and the companies, at least some of the big ones were ready with what they were going to say about this stuff obviously, you know, it's great optics obviously also great for kind of employee relations and the rest of it and spread around. interesting the note this week from goldman sachs saying investors should n't think they're getting single dollar of tax cuts out to them directly.

there's a process of different constituencies with a share. this is plenty converting every headline into a reason to go higher. >> again, we are left with the challenge of causation here. is this really about taxes is it about unemployment at 4.1% and companies saying we're going to keep and hire and retain workers and pay up. >> either way, is it in the markets? just yesterday i think it was 40% to 50% of estimating in terms of boost to eps for 20 sl is in the markets right now. in consensus estimates will we see that or to goldman sachs's point, not the full realization? >> with the banks it is interesting. jpmorgan is a bank that management has credibility, decent returns on investments. last week bank of new york said we'll invest more and stock didn't react well and depends on how the street feels as if what's the value of the investments making >> as melissa mentioned, markets at the big highs

news out of switzerland today. we're told we'll see a market blowoff rally fueled by the cash that's on the sidelines. take a listen. >> we're going to have a jolt of stimulation into that. and there's a lot of cash on the sidelines. i don't mean just investor cash. i think banks have a lot of cash corporations have a lot of cash and inundated with cash and produce a lot of stimulation and i think perhaps a market blow-off and a situation of holding cash to feel pretty stupid >> let's bring in keith parker with the highest price target on the street for the s&p and bruce b bittles. keith, he's a good macro reader. what do you think of the narrative he's building here >> yeah. we definitely agree.

i think to put it all in perspective, you had better growth coming in to q4 we got the tax cut earlier and larger than expected we have to reassess 2018 growth expectations and you're hearing the shifts in corporate behavior so a tilt toward investment. that money flowing into the economy so putting that altogether we target 3150 on earnings per share up 18.this year. >> and are you suggesting a series of gut checks on that or is it going to be as seamless as last year do you think >> our call going into the end of last year was we would hit 2800 by the end of january and xaek out on better than expected earnings in q1 and that follow-through into the second quarter. and so, we're tracking inline with the view. i think we're still that position where growth is accelerating and a stimulus on top of that and markets have

pullbacks but we still see further upside in the course of the year. >> it sounds like you're constructive on the markets here and see some warning signs coming to valuation, coupled with what the volatility index has done we saw the day of the markets to reverse, you saw the volatility go higher just from the start of the session. and then finally the markets caught up. what do you think could happen here >> yeah. well, it's pretty hard to argue that the markets not on firm ground here. i mean, the way the markets react to the economy, for a long stretch of time, it was felt that the economy could only grow at 2%. that was the new norm. but during last year that all changed and now we are seeing 3% and 4% gdp forecast and the market has that base plus, we don't see a whole lot of inflationary pressures and that shows up on the long end of the yield curve. where the 10-year treasury note

is about -- yielding about same as it did this time last year so you have all of that going for it and from a technical perspective, most areas of the market are in gear here. and that's indicative of a healthy market what we're concerned about over the very short term is that investor sentiment is about as optimistic as it ever gets and when everyone's on the same side of the boat there from a contrary opinion perspective, you might look for a pullback but given all of those other positive signs, we would think any pullback limited in both time and price >> keith, there is almost nothing in terms of macro data or other asset markets that have really gotten in the way of the stock market's process of kind of pricing in a lot of this fundamental enthusiasm how vulnerable do you think it is of shifting expectations of the fed to do here would the four hikes that ray dalio said up from here on short

rates could actually up end the asset markets? are we on that kind of a tightrope? >> i don't think so. >> oh. >> keith >> from our perspective -- yeah. from our perspective what we have been saying is that the equity market has been pricing higher rates but not better growth and so by our models we see a 3% 10-year until we get to that point equity market will just reprice that growth and so i think there are some risks of higher inflation leading to higher rates but i think that's already baked into the equity multiple. >> finally, bruce, we got to mention foreign exchanges. hong kong's up 20 of 21 sessions shanghai's up 17 of 18 sessions. where does the u.s. fit in terms of the list of what's favorable around the world >> well, everything's going at the same time. and some of these foreign markets as you know did better last year than the u.s but i think at this stage a

diversified portfolio of 25% of the asset allocation outside the u.s. and the balance in the u.s. and a healthy configuration. >> bruce and keith, it's going to be a fascinating year thank you for helping us understand about it. talk to you soon. >> thank you. when we come back, netflix blowing past $100 million market cap. we'll be speaking with one of the biggest netflix bulls on the street next. elon musk's all or nothing bet on tesla the radical new compensation plan we'll be right back. [ click, keyboard clacking ] [ click, keyboard clacking ] [ keyboard clacking ] [ click, keyboard clacking ] ♪

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market cap after netflix across $100 billion in early trading and blew past expectations adding nearly 2 million new subscribers in the u.s. the ceo addressed possible threats of competition last night. >> disney has super strong brands and so, we'll see -- we don't, you know, see it as a threat to me anymore than hulu has been but it's a great opportunity for them will it trigger a wave of consolidations that's possible. honestly, we try as much as possible to focus on our own consumers, doing the shows we can do and grow our business and

these kind of big u.s. media company mergers are pretty peripheral to us so you wouldn't expect us to be very involved in that. >> we should note that shares of netflix hitting an all-time high today. joining us is mark mahaney and b. riley great to have you with us. what is the narrative that netflix earnings tells us these days about media and streaming specifically just when you thought netflix's u.s. domestic growth was going to stall, it did show growth here and we're also seeing that total hours of streaming per member in all of 2017 was actually up 9% what does this all tell us connect the dots. >> okay. i think what we are seeing with netflix is unprecedented in media where you have a new company, a new player come out of nowhere to have a meteoric

rise to develop new shows and content that people care about and watch. we did some checks in the fourth quarter and saw that search interest in netflix originals was up 4.5 times in the fourth quarter of '17 versus the year ago. that was stranger things season two, bright, that was the german series dark. all of which really resonated globally the challenge is can they keep up this impossible high wire act? can they keep making bigger, better, more impactful shows first quarter guidance is a seed of doubt that maybe they're decelerating a little bit. but the big story here is that these guys are incredibly talented of picking shows, a data process is working and that's a real challenge for the rest of media where the audience is going to what netflix is doing and not where they have been historically and a real issue i think for the group. >> i think the question here, marc, is, is netflix winning at the expense of others?

seeing roku up sharply on the back of the netflix report and that's what reed is hastings is implying there's growth for each individual service and each one has different offerings. is that true >> no. i don't think so and i think this move up in roku, that's a -- i don't think that's a correct follow-on from netflix. we know that streaming is still relatively early stage they're a billion paid cable tv subs worldwide and maybe 150, 175 million streaming subs worldwide and i think they meet in the future and we think that's the leader netflix will not have 200 million subs and 250 million. and the street has really missed three things popular netflix is international markets. profitable to be in international markets and how much pricing power they have i think all three of those came through with a bang in the quarter and going forward talking about acceleration in revenue growth in the march

quarter. this is an inflection point year revenue growth acceleration. stocks like that work. >> mark, two and a half times sub growth, 300 million let's say or something like that worldwide. does content spend ramp commiserately or model to scale and follow through >> no, no. spend will keep rising no plateauing in content spend at netflix more subs begets more ability to spend on content and begets more subs and more revenue and keep spinning no particular reason it stops at 10 billion the largest companies in germany spent 8 billion euros a year the advantage is as they keep getting more and more subs and when the new big points from the call last night is asia, the first time heard this, asia is ramping like latin america latin america is a huge success for netflix. if they get japan and india,

then you have more subs and more purchasing power i wouldn't be surprised to have a 15 billion a year content spend out of netflix in the next five to ten yores. >> barton, do you think the street demands to put earnings on the bottom line or continue to read cash flow every quarter? >> i think as long as they're growing subs and show positive kind of expansion in their operating margin, doing both of those things, then, you know, the street's going to be okay with the stock you know i don't think there's going to be an existential cloud over the valuation over the equity. it doesn't mean you have to buy it every day and after 30% pop in the first three weeks of the year, you know, i think there's reason to consider whether you buy it every day. close your eyes. don't care but i do think that, you know, to mark's point about content spending, not just the dollars you spend but shows that work. fourth quarter, their original content worked unusually well and a lot more searched, more

interesting to people than it was in the year ago. the first quarter content lineup isn't quite that impactful and to what degree is the sub growth tied to dollars or picking good shows. i think a lot of it is good shows and remains to be seen to top what they have done so far year after year after year that's the only reason to stay cautious on a great story at this point. >> before we go, mark, i have to ask you about twitter. shares down by more than 2% on news that anthony noto is out. what happens does this then lead to management changes potentially at twitter and possibly even square is there a cascade effect? >> i don't know about square but twitter, i mean, you already had kind of a half of a gap if you will you had a part-time ceo. that's still an unusual phenomenon let's not lose track of that and now you have the operating executive leave and what was supposed to be an inflection point year of twitter kind of

turning back to revenue growth and generate real gap profitability, seeing somebody leave in front of that, you think maybe there's not an inflection point after all that's the big tell from this so that this stock had a great rally. 40% over a couple of months. you have to question whether that's sustaining given the leading executive saying i'm out. >> all right we're going to loave it there. martin and -- mark and barton, thank you very much. when we come back, more on netflix. noto is out and dow's down about seven points pulled in different directions between traveler's on the upside proctor on the downside. back in a minute

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with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. we just mentioned that news out of the twitter this morning. the company's coo anthony noto leaving to become the coo of sofi good morning, yulia. >> twitter shares falling nearly 3% on the announcement that coo noto is leaving to become ceo of

sofi twitter saying, quote, noto's responsibilities for the company's business operations and revenue generating operations will be assumed by other members of twitter's leadership team. as the stock dropped 1.5% yesterday, the fifth negative session in a row, on reports that news was coming, noto saying in twitter's press release, quote, i have the utmost confidence in twitter's future and look forward to watching the wonderful success the team will continue to achieve. but analysts are concerned warning that his departure would be a clear negative for twitter. ever core's saying, quote, he's been reassures force for investors even amidst the stock's volatile performance over the past several years and, quote, i think it's a relatively big loss and there's no obvious replacement interimly. in contrast, sofi celebrating the addition of a veteran to help the company heads toward an

ipo boasting in the release last year they cracked $25 billion in funded loans and over 430,000 member saying the deep understanding make him the perfect fit to be sofi's ceo back over to you. >> thank you very much lots of intrigue once again at twitter. one of the largest gatherrings of investment advisers is under way. bob pisani has more. hey, bob. >> hello, michael. 2,500 investment professionals, one of the largest gatherings in the world, the hot topic here, the ocean of money that keeps coming in. $3.4 trillion in assets under management and the key is keep the fees as low as important and cut them there's a massive fee war going on into 2018 and individuals who invest in etfs are the

beneficiaries. the average mutual fund charges about $6 per thousand. the average etf charges 30 basis points, $30 per thousand but you could buy an s&p 500 fund, endex fund for as little as four basis points or three basis points that's 40 cents per thousand an the numberskeep going down and all of the money primarily going into the cheapest index funds out there. for example, s&p 500 funds, they're a europe, far east, index funds out there. develop market funds out there, as well. the people are pouring money into and emerging market all cheap, indexed and low cost. the other hot topic is how long's the rally going to continue everybody here agrees that a recession is highly unlikely everybody also agrees, however, that the topic of trade wars very hot right now could be a real problem, tom farley and others, here yesterday were talking about how that might

impact the stock market and he's gone now to davos to bring that message over there finally, bitcoin yes, we are down today big thing here, a lot of people made some money with new etfs out here one of the big stars, blok companies that are investing in the bloc chain, over 60 million in assets under manage independent a few days back to you. >> all right bob, thank you bob pisani styling it in hollywood, florida. uber ipo pipeline. what the new ceo told us we'll go live to davos "squawk on the street" is back right after this

here's the news update this hour there's a series of shootings in benton, kentucky

according to a tweet by governor bevin, one person is killed. multiple others injured. the governor said authoritys have a suspect in custody. a 7.9 magnitude earthquake struck this morning over alaska. officials canceled the tsunami warning after a few tense hours. kodiak island about 200 miles southeast of anchorage. 12 people including 8 soldiers skiing on the sloefs of a volcano in japan were injured. a soldier later died they were in a group of 30 with ski training and hit by volcanic rocks. "the shape of water" with 13 oscar nominations this morning three bill boards outside missouri an dunkirk emerged as strong contenders. fifth woman nominated for best director that's the update this hour. back to you, carl.

>> thank you very much. the president slapping tariffs on imported solar panels and large washing machines kayly joining us >> reporter: the trump administration confirming an opinion by a trade panel that resulted from complaints of u.s. companies in each sector alleging importers of flooding the market with cheap products for the first 1.2 million washing machines going to be imported, new tariffs of 20% will be instituted for all imports upon 1.2 million, those are 50% and for components 50%, as well. the tariffs are the result of a may complaint of whirlpool of flooding the market with the cheap products in the opinion, we should note, all information related to pricing is redacted. though the opinion does say that the quote dresic industry's performance declined the overseas competitors have

both said that prices would be raised as a result and competition would be hurt and credit suisse notes they're putting new u.s. manufacturing online to soften the blow from the new tariffs. now, the move on solar panels was sparked by petitions applying for chapter 11 protection in august an those tariffs could actually result in higher prices for u.s. companies that install solar panels. those tariffs will be 20% but they'll decline over a period of four yores it's worth noting that these new tariffs on the two product categories will apply to imports from all countries but this morning black stone ceo schwartzman advising the president said that it could spark new tensions with china. >> i think the administration's looking around for things to do. ultimately, that's going to have to be addressed by both

countries in a pretty comprehensive way. >> we'll see whether those competencive responses include any other trade actions by the administration many are saying that this move could be a precursor to more we'll see. carl, back to you. >> all right thank you very much for that. on that note, joining us here at post nine, larry kudlow. senior markets commentator great to have you. >> thank you. >> goldman out with some rough call collisions of industry pricing on washers 8% to 20% and not all borne by the con surmer. >> well, look. tariffs are taxes. and a cost so consumers get hurt by this. always and in fanct, maybe supply chain consumers. businesss that are involved in this you know, it's so weird to me. this kind of piecemeal stuff may sound bravado but, look, the president and i have had

discussions about this down through the last couple of years. i just don't buy it. i mean, here on the solar panels, i'm sure you know this but i think kayla -- owned bay chinese company. is that right? solar world. solar world is owned bay german company but based here so who's -- we're damaging who to get who exactly and these are jobs one of the washing machine companies, samsung, wants to set up 600 worker factory in georgia. who are we hurting and helping nowadays i want a broad based i think steve schwartzman had it right. you can't go piecemeal you need to sit down and you need to look at, all right, where's reciprocity breaking down china, steals our intellectual property assets. i get that we need to do something about it okay should be done in a broad framework. when you go piecemeal like this,

you're damaging consumers but you're also running up against bto. against sensible trade policy. >> right sounds like something you might talk about at davos were you to travel there and speak. >> i'm going to miss davos this year i don't know what the president will say in davos. look i'm not saying we should -- i'm not saying america shouldn't seek fair trade. i'm a free trader. but where there are violations, violations should be corrected and negotiated but these one shots belie that that's not an orderly process, you see. and consumers do hurt. look years ago we had -- unfortunately i lost this when i was a kid working for reagan we had chips put tariffs on chips didn't work. damaged the industry enormously. george w. bush response to wilbur mills, my good friend, a steel guy, put tariffs and quotas on steel.

didn't work and taken away. >> larry, the ripple effect on the solar panel tariffs not felt immediately and boosting the price of solar panels, the price of the installation goes up and consumers less likely to do that and then take away from the orders and installations, the labor that takes place here in the united states. and actually a trade group says costs 23,000 jobs. >> you're totally right. >> once the press release saying this company laying off installers because of the tariffs, how fast do they hit it >> in fact, it has a very bad point downstream going through you're precisely right that's an important point to make so, look we're going to have negotiations with china obviously in nafta i want -- i do not want america to pull out but negotiate with mexico and canada. with respect to south korea, with respect to china, with respect to all, let us negotiate. now, those processes of

negotiation may need to be fixed. i get that okay but the president has acknowledged other countries break the law as we see it and he may have a good point there. so it's not a perfect system i'm a free trader but if you have imperfections and reciprocity, fine, do that you don't just whack away and you do worry about, you know, retaliation, for example and most of these business, most of the business company don't like it. and the people that don't have a voice at the table are the consumers. who are going to pay higher prices. >> lg with a statement disappointed in the misguided decision it shows how certain companies can game the process to accomplish what they can't accomplish in the marketplace. >> good for them, by the by. we just slashed tax rates, corporate tax rate makes us more competitive. roll back regulations. why do we have to fall back on tariffs? my good friend bob lighthouser known him for three decades or

so he's a special trade rep he is so-called expert on what's called anti-dumping. what is anti-dumping it means world prices are falling and consumers will benefit from that. i don't get -- never understood anti-dumping if you can fix a market -- >> put another country's industry basically out of business by selling your goods below the cost of production, that's the theory -- >> can you >> that's an act of aggression. >> can you can you? >> what's steel employment done in the last 30 years in the u.s. not saying that's correct but that's the argument. >> you're in a long-term down trend and steel jobs and not production by the way. steel jobs that's the reality you're not going to preserve that we need economic growth here in the states you know rising tide lifts all boats including industrial boats and washing machine boats and dryer boats and whatever boats we are talking about. solar panel boats.

business will be good and we are in a competitive position now because of our tax and regulatory reforms i say if you want to think about tariffs, give me a framework give me a negotiating table. same thing with nafta. we have issues i get this we have issues of mexico we have issues with mexican sales taxes. we have issues with canada pulp and lumber i get that sit down, put everything on the table. and be good negotiators. but remember tariffs are taxes. quotas are taxes consumers and consuming producers, they're damaged by this this is anti-growth. >> are you worried that the tariffs -- i mean, do you think thetariffs make you less optimistic that the administration will do the right thing when it comes to nafta >> look. my eyes are open and we have talked about this. i want them to stay and

negotiate. withdrawal, an abrupt withdrawal from nafta, i don't think the president will do, but that kind of abrupt withdrawal will have great harm i think to the stock market i think which would frankly blow up on that kind of news. it would create great harm to our relations. it would be great harm to business confidence. agriculture and energy and car parts. you know, nowadays it's an integrated economy you won't disintegrate the economy. supply chains go on whether you want nafta to do it or not trucks will go cross border whether you have nafta or not. so you're just going to have chaos. lawlessness. that's just weirdest thing i'm hoping the president -- i think he's going to negotiate. i just think he's giving a wake-up call, okay, you don't play ball with me, blah blah blah. >> last question, is wilbur ross

out of favor in the white house or not >> i don't know. i don't know wilbur ross, good personal friend of mine. >> been on the show for 20 years. >> me, too wonderful man. out of favor i don't have any comment on that wilbur has been leaning too far protectionist. that's what i will say lighthouser is a special trade rep. wilbur over at commerce, you know, he's an ex-steel guy and so forth i think he's too protectionist but wilbur at the end of the day, i'll defend him a pro-growth guy basically free market guy. strong supporter of the tax cuts for businesses and individuals and a strong supporter of trump. so i'm not going to comment on his position you know people's -- these jobs, stay a year, year and a half, move on, blah blah blah i think i stayed almost three years. i should have had my head examined. >> a lifer. >> i was younger then. had more energy. no, no i'll defend wilbur ross.

we need a rational trade policy which is pro growth and doesn't single out consumers or allies for bad things. >> sure. >> that's what we need give me a rational, well-balanced policy i hope president trump will say that one quick anecdote we were on a plane to detroit economics club in the summer of 2016 it was first comprehensive economic speech that the president made detroit economics club a lot of good things in there that we had developed in the working group. >> yep. >> all the people. one of the things we weren't happy with is trade stuff. and i remember going up to him and i said, sir, can i make a suggestion he looked at me. would you put in a sentence about the benefits of free trade and world trade? and he said, yes and he called across the plane

to a very senior guy i won't mention him. did you hear that? i want you to put it in the text the benefits of world trade and free trade and that's always given me hope. hope springs eternal. >> yes. >> talking to the happy warrior here. >> i'm well aware. we are always glad to have you, larry. heading to a break, taking a look at shares of johnson & johnson with a beat on the top and bottom company line. looks like a little bit of a sell the news, response. see the stock down 2.4% right now. stocks this hour pretty close to the flat line and the market's taking a pause and still marginally green bond yields ticking down, as well

get this by one measure, the s&p 500 is

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to improve short-term memory. prevagen. the name to remember. it has been a huge news making day in davos, switzerland. andrew ross sorkin is there and joins us with more. >> hey there how are you? very big day at the world economic forum in davos. chilly right now about speaking out about a full slate and everybody talking about the t-factor that is president trump giving the closing remarks on friday. we asked blackstone ceo who led one of trump's ceo councils what the president might say. >> i've been told it's a pretty good speech that's been worked on a long time and so whatever's going to be said is pretty considered i would suspect and i don't know

it all that it would be some kind of mix. you know of -- you know, pursuing national interest is not a bad thing because, look what's happening to countries that do that and there will be some other stuff i would assume that won't be quite as harsh as some of the other rhetoric that, you know, gets reported on almost a daily basis. >> and another theme here at davos, the global economy and the record market rally. we had a fascinating conversation with billionaire dali w0 a warning for investors who are hanging out on the sidelines. >> we're going to have a jolt of stimulation into that. and there's a lot of cash on the sidelines. i don't mean just investor cash. i think banks have a lot of cash corporations have a lot of cash so we're going to be i think inundated with cash. i think that that's going to produce a lot of stimulation and

i think perhaps a market blow-off in other words, we near situation of holding cash you feel pretty stupid. >> we also spoke with uber ceo he is -- this was his first television interview since taking the helm at the ride sharing start-up here's what he had to say about the future of uber as a public company. >> the public markets hold ceos and teams accountable. and i think with uber this is a company that has absolutely been held accountable and to some extent i think uber suffers from all of the negatives of a public company because the world is fascinating with everything that we do and we don't get any of the benefits of being public so i think let's step up to the plate. this is a big scale company. it's an important brand. all across the world and we are going to step up and we're going to be a public company that our employees can be proud of. >> and today was just the

beginning. we will have another big lineup of heavy hitters here's who we have tomorrow. jamie diamond, ibm chief and also goldman sachs boss and many, many, many more. so just kicking it off today and, of course, we will end the week when president trump speaks right here in davos, switzerland, guys. >> what a lineup next few days, andrew. got to talk about the column today in "deal book" and tesla's compensation for ceo musk. radical one can say and you can't say he doesn't have skin in the game at this point. >> this is the ultimate skin in the game this is an executive comp program on steroids. and i would argue is about as shareholder friendly as you get. had a debate on the set with joe and becky who thought maybe you could game the system. i think it's very hard to game a system where effectively you only get paid in -- effectively

$50 billion increments in terms of market cap to create and at the same time that's pared with mettics and adjusted number and revenue number he has to hit both of those numbers at of those numbers at every -- or he doesn't get paid at all. so if he creates in $99 billion, if the market cap gets to $99 billion and doesn't get to $100, he doesn't get anything. if he gets to $100 billion and doesn't hit the operational numbers. he gets nothing. this continues on and on and on. if he gets to -- he believes one day this company is a trillion dollar company, if he gets there or if he gets to this highest number on the list which is $650 billion in market cap, he'll end up a very happy man at $55 billion worth of stock but at the same time, i would imagine shareholders be pretty happy too. by the way, in all cases, even once the shares vest and he gets them, he then has to hold it for another five years which is a feature you just don't see in many compensation plans. >> yeah. you have to wonder if any other

ceo's are bold enough to adopt any similar compensation plans already elon musk was getting paid the absolute minimum under california law which i think is $37,000. a check he doesn't cash. it's like sitting in a tesla bank account still just collecting interest for the company. >> he's -- literally he's been doing this all for free. by the way, i asked him, i said what do you need this money for? what do you need money for he said he's not intcentivized b money. he said i want to help humanity pursue this multiplanetary system and he said that requires a certain amount of capital. so this, for his sake, fit works, may go towards that in which case maybe it will go towards all of us. >> andrew, thank you >> thank you all right. let's head over to jon fortt on the floor with a look at what is coming up on "squawk alley." >> we're back to davos with

sales force ceo mark benningov lots of questions for him about technology and what the billionaires are talngki about that's all coming up on "squawk alley. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

welcome back to "squawk on the street." markets are moving in between slight gains and slight losses the utility stocks are standing out as the bigger relative winner in today's trading. the sector is up close to 1.5% so far shares of exelon and sempra energy and entergy are among the leaders in the sector. they will be ones to watch as interest rates move lower after the government shutdown ended. of course, we have to watch now what happens as we approach the february 8th deadline for the next government shutdown back to you. >> all right dom, thank you dom chu in the newsroom. get a check on cryptocurrencies. south korea is banning anonymous bank accounts used to buy and sell cryptocurrencies. the government will collect 52% of corporate and local income taxes from the cryptocurrency exchanges this year. there is an interesting new report out taking a look at the risks of investing in the cryptocurrency projects online

10% of the funds raised through initial coin offerings are lost or stolen in hack attacks. staggering $7.2 billion raised in icos last year. that's a lot of dough. >> yeah, the focus on the underside of the, you know, of the speculative mania. you wonder about the long term technical adoption and all the rest that people say they're playing whether they buy the cryptocurrency. >> if we had the losses in any other asset class, it would be major story. but we sort of just, i don't know, are we shrugging at it because we're so immune to the stories that come out of the sector >> i this i that the fact that these shares are the coins from the icos are lost or stolen underscores this notion, the concern of the scc what happens with the custodianship of the bitcoin. if they're hold in cold storage, do they even have insurance? a lot of them don't right now. how do you protect when they buy

an etf that has holdings of bitcoin, how do we know they're there and safe >> even the losses from the currencies themselves have been massive. >> sure. >> to your point, carl, you can't -- if did you put that into a stock, if it were comparing to market caps to stocks, it would be devastated it's like you didn't consider it real >> right >> it was so temporary and fast on the upside. >> all right thanks, melissa. interesting story. we'll take you back to davos mark benioff don't go away.

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