>> announcer: live from new york, where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernin and andrew ross sorkin. let's take a look at the u.s. equity futures this morning because as joe mentioned we are talking about significant advantages with the dow futures indicated up about 300 points fair value right now the s&p 500 will open up by 31 points. nasdaq, up by 75 this all comes friday when the markets really turned things around at the end of the day, the dow was up by 330 points that was a gain of 500 points in 20 minutes that we saw coming back, erasing the losses even across the board a gain of 1% or better, it did bring us out of correction territory for the dow and nasdaq, still

looking at the worst week in two years with all of the averages we'll see what happens today it's been interesting to watch volatility to see what's going on meantime, let's take a look at what's happened overnight in asia the nikkei was closed for a national foundational day holiday in japan the hang sentence down over 0.1% shanghai composite and stocks in south korea higher with the kospi at 1%. in early trading in europe, you can see things are in positive territory as well. big gains. gains of 1% or better across the board. in fact, the dax is up by 1.9% right now. then if you take a look at treasury yields, this is a big story. what kind of inflation do we see. the ten-year is yielding 2.88% this week, we're going to be getting inflation data cpi on wednesday and that's something that else to see if inflation is really out there. >> a couple big stories we're watching before we get back to the markets.

vice president mike pence said the u.s. is open to talks with north korea but will continue to watch the rogge state economies. pence also said the south korea would first engage with the north. and then the u.s. could soon follow suit. the trump administration will be unveiling its infrastructure plan today. it will include $200 billion in federal funding, over a decade, to incentivize new state and municipal building projects. we're going to get a live report from washington on all of that in just a couple minutes then on this week's economic agenda on wednesday, january retail says, cpi thursday, jobless claims, ppi and philly survey and home production builder survey. friday, housing starts, consumer sentiment. as earnings two dow components, 57 companies in the s&p 500 they're reporting. that list includes pepsico, under armor, metlife, cisco

systems, marriott, heinz, kraft, and coca-cola. the market may key off fundamental news as opposed to speculation. though we got earnings numbers as well. and that's eye its own adventure. >> these are stralers. we're done with earnings >> joe's closing the books >> we're done with earnings. looks like eququalcomm and broadcom are planning a valentine's day meeting. to talk about broadcom's $121 million acquisition offer. "the wall street journal" reports the company has secured $100 billion of debt financing for that hostile bid also enlisted the help of two private equity firms the ceo of broadcom will be on "squawk on the street" today frld automatic toy plaker

planning to raise production of the expedition and the lincoln navigator by a quarter wife% this year. both plants manufactured in the company's plant in kentucky. ford is looking to challenge rival general motors and boost its own profit marking and oxyconte maker purdue pharma is cutting its sales in half pharma companies have come under fire for the way they've marketed addictive painkillers privately held purdue has been sued by 14 states accused of deceptively marketing opioids to try and generate higher sales. and then there is the weinstein, i'll call it a drama, a saga, i don't know new york attorney general eric schneiderman said he's filed a suit against harvey weinstein, his brother robert the suit alleges that the board failed to protect employees.

more than 70 women have accused harvey weinstein of sexual misconduct the studio has been in talks to sell to a group of investors the seller's lawsuit puts the negotiations on hold in a statement, his attorney said we believe that fair investigation will common a 38 that many allegations against harvey weinstein are without merit. irrespective of that, the lawsuit, to me, changes the game potentially if other a.g.s were going to try to stop transactions not just sexual harassment but any claim where they believe there's some aggrieved party and that that party could be paid the proceeds of the transaction, you could see this actually moving itself into many different places, far afield from this weinstein situation. there's always been issues where a company has tried to sell itself after there's been a scandal of some sort >> but if you guy a company, aren't you stuck with its liabilities? we've seen that happen time and

time again bear stearns if you buy a company, you're stuck with whatever liabilities they have down the road. >> and you normally -- normally that would be the case well, either you go into bankruptcy court, sell the company where a lot of liabilities oftentimes don't transfer but now you have an a.g. jumping into the middle of a deal like this, it changes the whole dynamic. it's not just that the liabilities aren't transferring or how they transfer, it's that they wanted them specifically earmarked in a certain way >> to have these people be put at the top of the list >> they become the ultimate credit creditor >> right >> aren't there about ten things eric schneiderman has embarked upon at least most rational people get raised for some of his actions? but a new york attorney general -- attorneys general,

they many times, have pretty aspirations that go beyond attorney general >> eliot spitzer >> i take everything with a grain of salt. but certainly in the weinstein case, and all of this stuff, and it gets even more -- >> i just wonder, in other states, in other instances >> how successful that is. >> i used to say it's a magnetic -- that's bad to throw in the ambulances just in case, you don't have to chase the ambulance. your business card ends up on it if people need to sue. anyway, to the broader markets coming off a week in which the dow up and down moves made for a journey of more than 22,000 points joining us now, chief strategist at oppenheimer, jim turny, and a doppelganger for vice president

>> how's he doing? >> he's doing great. fantastic. you look like a younger brother. he's been youthful but he's in his 70s now, and he doesn't look like it. >> anyway, you look like you could be his somewhat younger -- >> much younger. >> yeah, much younger. i'll tell you what i was gratified by with recent market moves we used to watch 50 and 100-point moves and think we were actually reporting on moves in the stock market. and we didn't real iize that was like 2%. now at 25,000, you need to recalibrate what the actual move is it's really just 1%. but at least now, we're in a position where our eyes aren't -- when you see 1,000 points down, you think you need to go hunker down in a bunker. but really, it was what, 3%, 4%? whereas in 1987, there was a one-day move of 23%. at least we're calibrating a

little bit what i want to ask you guys about is whether there is anything that you believe to be fundamentally broken or totally extended, either if the economy or in the stock market in other words, is there a housing bubble is there a central bank bubble a bond or is there something that needs to be worked through or a reaction on 2.8, 2.9 on the ten-year >> we had gone straight up for 15 straight months, 22 out of 23 months were positive we were due for it >> boringly. >> going up 50, 100. >> no volatility >> right >> this is introducing risk and volatility back in the market which i think is appropriate but is there anything fundamentally wrong? >> is the fed introducing risk -- someone saying that the fed is finally introducing some volatility back into the market with the four raises we did this

year >> qe was winding down i think the market was expecting two raises and now saying okay, the fed is right, three, maybe four we're going on this path and the market is waking up and saying, okay, we're on our way >> are we on our way to effectively measuring inflation? is it possible it'slooming in much worse state than it is? >> we don't think so we think the big offset is the secular and relentless move in the process of globalization-a gore ri algorithms, robotics on the factory floor and lower ends of technology whether mom and pop operations -- >> is this what caused the market selloff >> no it's not what caused the market sel market selloff but it means inflation is not a concern. >> of course, what i've been

wrestling all week as the market was tumbling obviously, it starts as good news/bad news scenario the question is, could the bad news create a spiral of additional bad news? which is how much of this has been a wealth effect, to the extent there has been volatility and will continue to be even more, does that change the underlying dynamic of the ultimate economy >> i don't think so, i think what you have here is a situation where we're in a period of price discovery as a result and we're seeing a normalization of interest rates but we have a federal reserve that has shown to be remarkably sensitive over the nearly last ten years. >> you don't think the consumer is going to get any more sensitive as a function of what we're talking about every morning, to the extent we're talking about this, and this type of volatility for quite some time? >> i don't think so. i think we'll just have a return to a more normal level of volatility >> were you hyperbolically looking at this? i mean, we're going to be at 24,

500 today. art had this 24 hat on a month ago. we've been begging for a correction that's been normal and routine and happen every year is this a tumbling horrific thing that's going to cause people to pull in their horns? i mean, are we there yet >> probably not. but if you had think the wealth effect goes -- >> at 24,500 >> i know, when i said this is the worst in two years, we're till 10% up from where we were then >> you're worried about 20%? >> no, i'm not worried about 20%. >> i actually said -- you weren't watching lasts wee ing . >> i saw you wrote a big piece on explaining the volatility >> when i did, i said i didn't think there was an underlying point to this at all however, as the week progressed and things got worse, i started to try to understand

>> give me your viewpoint on the gains we had for the year. >> right >> and as it was happening last year, the 44% gains and your sort of resistance to the idea that the market was moving up. isn't coming down 10% sort of more rational for what you were thinking all along the market you didn't think much and that it could be here by this you shouldn't be surprised by this, right? >> it's not about being surprised. >> 10% should be welcomed for you, it makes more sense in the world of most people, right? >> i think relative to the consumer, are they going to be dislocated by this i don't think they will because wages are going up and the tax cuts >> and it's only 10% >> and i just don't think -- >> it's only thing that scares me -- >> nothing scares you? >> no, what scares me is the reckoning that we may some day have to come with yenky yellen

andco and central bankers. they think they can extricate -- we take it for granted they went in and did this unbelievable accommodation >> but they spend more as a government >> the one thing is, what has drastically changed has been the evolution of technology in our lives. 30 some years ago, when i got into this business, if i was talking tech, i was talking about what technology would do for corporate. today, it's ubiquitous, it's embedded in all of our lives >> how come our productivities aren't any better? >> sometimes, i think we're working so hard at keeping track of our passwords and the process of cryptology, to protect what we're sending. but i believe that we will see that work out in a process but relative to where we've been before, becky, it dcould be different because this is a huge disrupter and it dislocates -- >> i know, i'm a lot more

productive in my personal life everything from ordering groceries online, the shopping, the hours that has cut out of my daily life >> and our business days are extended as a result and not necessarily uncomfortably, because it's very convenient to pick up the iphone or pick up the samsung and catch up on issues you can be on vacation answer e-mails and not totally -- we live considerably differently than we did 20 years ago. >> yeah. >> is there a recession on the horizon? or is there a cycle where we need to deal with inflation on the horizon? is either one of those things possible >> possible, but -- >> which one is more likely? >> one leads to the other sometimes. >> i think inflation in the short term given the stimulus we're seeing but in longer term, think about what amazon is doing. if they bring about this health care program with berkshire hathaway and jpmorgan, that's

18% that they got to target. >> it is going to be a year before we see that >> but it's a start. >> but what has changed significantly are wealth products because wealth has increased exponentially around the world whether a handbag that a few years ago was $800 now is $1600 by louis v., lv. and tmercedes costs more this year than last year. >> i just wonder are we wondering about half-point hikes, six of them in a year >> you do four, and we're back what, three? it's just hard historically. it's different, double 1 1/2 >> but if you're doing that as you're shrinking the balance sheet at the same time >> extended process of normalization. >> hindsight, we'll be looking,

oh, wear, i remember that 10% correction people love 10% corrections until they happen. >> hopefully, it's just a quick correction >> you hope it is just a correction >> obviously, i'm invested like the rest of the world. i hope it's just like a correction >> just on market watch, there's no way this correction is anywhere over. >> a lot of people don't think it's over. >> you can't think it's over, or else the market would have to convince you it would -- it's trying to keep you out >> we haven't gotten political about it, clearly, this all began, this is largely a function, are all of the stimulus measures and of all of the things going on. >> and this is a 10% correction. the reason you are at 24,500 in the first place. or not at 17,000 like everybody who said it was going down 10% but that didn't happen we're up 40% you can give back 10 without throwing away the narrative. >> since we're getting

political, john, jim, thank you guys for being here. since we're being political, why don't we get to white housashin. the white house is planning to release the infrastructure plan. kayla tausche is here. good morning >> good morning, that plan is set to be released today four principles are going to be in that, all recently reported by cnbc. $100 billion in state and local incentives for financing their own projects $50 billion in front-loaded block grants for rural communities. $20 million for so-called transformative projects and the reminder going towards bond and loan programs as well as federal office buildings just 14% of the price tag is coming from the federal government programs short on funds but long on anticipated reforms to regulatory processes the white house expects the $200 billion in chrises will be offset by elsewhere in the

budget and the president is open to raising the gas tax even more. and the bipartisan budget deal from last week included $20 billion for infrastructure which leaders called a down payment for the program but keskeptics have said it's an insurance policy and the republican unwillingness to spend more money. the plan will include 11 congressional committees, six in the house, and five in the senate they say last year 40 meetings have taken place on a bipartisan basis with congressional members to discuss the package and that effort will continue this week president trump will meet on wednesday with more members of congress on all relative committees today, he'll meet with mayors and governors. we'll see if the plan really gets momentum once it comes out and whether it faces opposition and comes down dead on arrival >> even though it's an infrastructure bill and those

are usually things you can get around, the left is not going to like this because they don't think there's enough federal spending on this the far right conservative is not going to like it because they think it's too much money after all the money spent at this point what do you think the odds are at this point? >> i think it's probably 50/50, becky, you have the complication, and white house officials are well aware of this you have to get everything done legislat legislatively, in the next five months really all appetite for legislation will try up at that point. there is resistance on both sides of the aisle to this program but the white house says they have been working with congress that they are well aware of what's in the plan they've been, in their words, socializing this to try and get members on board and if they've left enough of this plan to be filled in by members of congress, that they should be able to feel some ownership of it. but there is still a lot of work to do. and it does lean extremely heavily on state and local governments to come up with a lot of money too

>> kayla, good to see you. thank you very much. >> good to see you coming up, box office controversy, we're going to tell you why some parents are calling for a boycott of the kids' movie "peter rabbit. we'll continue to monitor futures. in the green, dow looks like 270 points higher after a roller coaster ride "squawk" returns in just a moment ♪ and she was just small hey, need fast heartburn relief?

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welcome back, everybody. "fifty shades freed" tops the box office it brought in $38 million in the debut weekend. women brought in 90% of the audience guessing none ever you was there? >> no. >> no. >> "peter rabbit" took number two in the box office bringing in $25 million believe it or not, the movie sparks back lark over parents of a scene giblgting allergy

bullying in the picture, villain tom has a blackberry allergy, and the rabbits throw blackberrys at him, including one in his mouth. he goes into shock and stabbing him with an epipen it brings light to bullying in a blackberry way >> henry sorkin saw this film. >> did he? >> he went with two friends. it was a dropoff movie situation. >> a birthday party or something? >> i didn't get to see it. >> we had a whole conversation about this film. he did not tell me about that scene so -- >> like 10% of tupac, have you seen the two scratching. have you ever watched. we've gone from where we can watch the simpsons to -- >> yeah. >> let's not even talk about -- >> any disney movie. >> did you see -- what's the

gary oldman -- >> the church? i have not seen it i have not seen it >> i cried >> you cried >> i did >> not weeped. but i did my best. >> teared up >> did my best not to. like this. i'm not sure anyone saw me but pretty good. >> will said it was amazing. >> he did. >> i had it on the list. >> wilf probably didn't need subtitles. >> proper english. >> by the way, we're the one who pa bastardized that >> disney announced a couple price hikes. in park admission structure yesterday, the increase will hit visitors in disneyland in california, the hard heft with a nearly 9% increase

one-day prices in the kingdom in orlando, 2% to 4%. disney uses a three-tier structure to help manage crowds by charging more during peak periods. the company will continue to tweak the structures in the leadup did you see dunkirk? >> i did >> saw it on the airplane. >> i saw it. but it just all is interrelated. because a large part of what churchill is dealing with is the entire british army being -- >> and that's it >> and it comes up with -- >> connecting the dots between the films? >> absolutely. it's operation, it's the only way they were able to use all of the civilian boats it's very moving ands, you know, a crappy history teacher, obviously because, you know, i'm learning a lot of stuff learning a lot of stuff. maybe it was me.

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arrows looks like the dow opening up by 290 points s&p up, and nasdaq up by 77. and this comes from friday at least by 1%. at arrest from the indices, you're still looking at the worst week we've seen in about two years for each of these major averages it's going to be a very busy day in washington. the white house set to take the wraps off the big infrastructure plan joining us now is axios' editor. good morning this infrastructure plan dead on arrival, i gather? >> we're at acalling it the bud deal and infrastructure deal and we throw it right in the recycling bin. i think the infrastructure plan is in a similar place. if you look on the hill there's

not a huge bunch from republicans to add money after the tax deal and budget deal make later in the year, a small bore of pieces might come together to a rose garden ceremony to say if the bill passed but the president's big infrastructure package is not going anywhere on the hill >> it's almost sad with the talk of infrastructure, it seems like on a bipartisan basis, there's nothing in the water that could revive things or turn this thing around >> this is like the big political sort of behihindsights 20/20. there wasn't a lot of agreement with democrats and republicans in taking action but they've done that, as far as health care and doing taxes on a party line they could have gotten something but we're on a very compressed calendar we've got immigration to deal with and the midterms are startinging. trump and republicans in

particular are beginning to shift the way they run washington to run on the tax bill to run fighting democrats on the wall. and to take more of the cultural flash points to tweet about to build up the base for the midterms and that's not something that gets bipartisanship on infrastructure at all >> you said there was something else to happen today what is that >> the immigration thing is still out there. we could get some deal on it what's amazing happening on the floor, mitch mcconnell on the floor will let senate try to get whatever they want on some type of deal. let democrats try to get proposals. and watch senators tom cotton and purdue, what they signal with trump and if anything, that process in the senate of course the deal with the debate in the house. >> and then kelly, the drama,

the soap opera that is the west wing what's happening there and should the investors care? >> i don't think investors should care. not now. if this was happening a couple months ago before a tax bill before the budget deal was done, when the west wing intrigue could have possibly endangered those, then i think it would be worrisome. because there aren't big legislative things coming down the pike in interest to markets. but there is worries in the west wing itself. a lot of reporting, they focused on what kelly knew and when he knew it. whether he was lying to his aides. whether he was telling aides to lie for him. we're hearing a lot from aides in the white house uncertain about what kelly knew and what kelly was doing. i think it's damaging among the staff and the administration >> jonathan, in his sneak preview e-mail, newsletter that he puts out, gets into a whole set of me too conversations in the west wing. and some pretty eye opening chentss that have gotten criticism that the president has

made about that. >> right but remember, the president internally is attacking porter saying what he did was despicable externally, you showed earlier the clips what the president has said about sort of not mentioning the women in his statements and how he also talks about privately sort of the me too movement is damaging for ceos, that women can make allegations that can destroy a career. this is a fine line that the president has accused of sexual improprieties and inappropriate behavior, a fine line he's trying to wind very closely. >> there was a tweet over the weekend, i think one of the quotes was there's no recovery for someone falsely accused. some folks in the white house said he was referring to steve wynn >> right that was their immediate reaction when we saw that, what was the one thing happening in the white house, it was rob porter who has faced accusations.

sort of photographic evidence of what his wives say he was doing to them. and they've tried to shift it. again, it has settled cases with his accusal. the president, this is a difficult place for him in terms of his history and how he deals with it on twitter absolutely >> nick, we'll leave the conversation there always great to see you. >> thank you >> does infrastructure include like baggage systems at airports? >> no. you had some issues coming in? >> enouyou've never had issues t north? >> no -- actually, i take that back >> golf clubs. >> you have tried to -- do you have miniature golf clubs to put them in the overhead bins. >> send them through -- what was that >> ship sticks i'm just telling you, a six-hour

flight red eye and then an hour and a half what do you think they're doing for an hour and a half what do you think is happening for an hour and a half is it the port authority -- it's not united, right? it's not the airline >> i don't know. >> i kept going -- you can imagine how many times i went back >> and you thing that i explain to the airlines. >> no i didn't explain to the airlines this is the port authority >> you're going after the port authority? >> i think that's who it is. i'm wondering. if you -- have you walked off the plane, when you get to the baggage claims there are your bags >> that's what happened to me. >> switzerland >> that's what happened to me at newark >> they were waiting for you >> yeah, that's because i took and changed the baby's diaper and did a few other things on the way. >> i was going to ask you about that okay, you're doing all of that stuff. andrew, an hour and a half -- i hate my golf clubs so much anyway, i'd really like to leave them but, you know.

folks, a multidollbillion dr deal announced, csra and general dynam dynamics csra had closed at $30.82 on friday as you can see that stock is up right now 27% on this news looks like it's trading at $39.20 joe. coming up, we're going to wrap up an exciting weekend of olympic action and look ahead to this week's event it's carl quintanilla joins us live from south korea and later black rock's jeff rosenberg is going to talk to us about wild interest rates. plus, senator dan sullivan joins us on set to talk about the president's budget and infrastructure plans that we were just referring to stayun ted you're watching "squawk box" on

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♪ get a shot here. welcome back, u.s. equities

futures at this hour indicated up 270 points on the dow after a 300-plus point rebound on friday. the s&p indicated up 28 this morning. strong performance at the nasdaq right now, indicated up about 63 points okay, the winter olympics are under way in south korea and the weather playing a big part in the story. carl quintanilla is there live this morning from the games. carl >> reporter: andrew, good morning to you what a weekend of competition. a lot of u.s. success in figure skating. and snowboarding and in the luge, as well. big story this morning, chris mazdzer, you're going to get to know that name, the first medalist u.s. men ever in men's single luge. he took silver in sochi. the u.s. has never won gold in this event, guys but in this case, we did take silver

talking about the ice, very hard, very controlled here making control very difficult which brings to us the weather, all of the icy winds have postponed alpine skiing. the brits have complained that maybe snowboarding should be postponed again. they didn't do as they had hoped. this is perhaps the coldest winter games in modern times windchills down to zero. athletes using things like tape and vaseline to minimize the amount of water that evaporates off the skin it's actually that cold. especially on the hill they're spending more time in the tents some even left ceremonies early medal count, norway, eight, canada, six, germany, six, u.s., four and red gerard won the first gold of the weekend. in snowboard slopestyle. and now here in both men and

women, the guys, i don't know if you remember, sochi, the weather was the story because it was too warm that's definitely not a problem this time. >> selfish less because iless q' going to be there in about a week you indoors, enclosed, what's goigo going on >> reporter: it is open air in the back we've got heaters, i imagine you did that in davos as well. i'm layered. you're going to fine if you're not, too cares >> carl, i saw the luge guy, that was -- i thought we've never won a gold have we ever won anything before in single luge and the german guy ran into the wall he kind of hit the wall. that was so sad. i mean, the guy couldn't even get up it was so sad. >> reporter: i know. >> go ahead. >> reporter: they're calling it turn nine. it's apparently this wicked turn very difficult

maybe one of the hardest turns in the world and you couple that with a hard ice. it's not good. but, yeah, i think women -- >> women, okay >> reporter: women took bronze in sochi, i believe, erin hamlin, perhaps. but this is the place for men. it looked like bronze, ended up getting silver >> he was so excited that was great to see. now, this is -- you know, carl, the zero degrees, that's just weather. the sochi think really was global warming when it was warm, that was climate. this is just weather just as long as you get your story straight you got that, right, it's just weather? >> reporter: whenever i hear you say this on the show, i see becky and joe just copy go -- uh-huh >> anyway, that's weather. >> carl, what about the north korean cheering squad. that has gotten a lot of attention and created a lot of concern for people who think

this is whitewashing that regime >> reporter: yeah, that story is so fraught, we went to women's hockey -- i'm sorry, short track. and ended up sitting very close to those cheerleaderse it was surreal i mean, they had a conductor they were so organized i took video just to show people what's going on. there's a sense in american media, global media how do you show it without kind of endorsing it it's very creepy we know how dangerous this regime is. and this charm offensive, i mean, is it effective? apparently, reuters this morning said the president of the ioc is going to go to north korea once these games are over it was chilling. >> i saw the stories and pence and everybody else -- >> and the sister, right >> yeah, i saw it on cnn she's great. she's great. i saw a big piece on cnn, carl she's great. she took the place by storm. >> reporter: yeah. >> glowing

>> reporter: i don't know, i think the "times" mentions her makeup >> she's awesome ask cnn. >> we're going to see a lot more of carl. i saw it on instagram. you're eating with david chang >> reporter: yes, later in the week korean food, david chang >> looking forward to it, carl thanks when we come back, we'll talk to a scientist who is working to reverse the ageing process. >> what? >> yeah, listen up he thinks that the fountain of youth could be it's blood that's pumping through your veins and he's got ideas what to do with it >> i want to be that guy oh, that's lovely... so graceful. the corkscrew spin, flawless... ...his signature move, the flying dutchman. poetry in motion. and there it is, the "baby bird". breathtaking. a sumo wrestler figure skating?

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savviness and most of the developments have happened with park kin son sons, cardiovascular disease you track the process, getting older itself is there some way of slowing it. can we halt it that prevents the disease from happening. that's what we've been doing >> you've been studying youngblood >> yeah. >> what's the difference between youngblood and old blood. >> let's go blood in general it's the one thing that connects every single thing in your body, heart to your pancreas, liver to the brain. everything goes through the blood. it's like a highway. it's also an information map they're talking to each other. as one gets older, the other one is also going to feel that. >> looking at a picture right now. >> oh, yeah. >> those are actually zoomed in versions of little parts of the

neurons, the brain cells that you have, and those are actually from a mouse and they've been there the entire life of the animal that would be the equivalent of a young person around 25 and an old person 65 to 70. >> what's the hairy stuff? >> like spines, a stem those are the physical connections where the two neurons are talking to each other, the synapses. what happens when you get older, they go away you give youngblood to an old animal, you bring them back. it's not about bringing new cells -- >> describe this you've done this in the lab doing what >> yeah. there's a couple of wasys we've done this. you connect two mice together. you make little siamese twins. you make a young animal, an old animal and connect them together and you pump it. the thing that we're excited about is youngblood reverses aging. the opposite is also true though. >> this sounds like the 17th century of how much we know

about. what's in -- do you know what's in the blood that's helping? >> no. that's great. >> that would help. >> that's the whole -- that's the point, right >> you're fitniching people. >> we're not letting go of the humor. >> is it white blood cells, red blood cells? >> as you're getting older, things are happening cytokaines we're losing things, too. >> what do you make of folks who are doing this actually doing this to themselves there are people in silicon valley, we hear, who are doing transfusions with youngblood themselves, very dracula like fashion. >> what i tell people, going back to what you said, identifying the things. >> let's see what we're doing. >> controlled environment when we have the -- >> how many people do you know that do this to themselves >> i don't know anyone who's doing it there have been some clinical

trials, places such as stamford has had one that's more of a safety one we know, okay, nothing bad will happen short term if you do plasma for residenticsidential - phoresis. >> that's like a dumb fad. jump on any fad like that. >> you want to make it into a drug. >> you want to find out which factors are, isolate the factors and use those. >> absolutely. >> without taking any bad stuff. >> yeah. that's the thing we do know there's bad aging factors as well. we don't want to combine that. >> non-a, non-b, we didn't know it was hepatitis c you could be getting stuff you have no idea what you're getting from people. >> thank you >> i'll have to give him some blood. coming up, monday morning market strategy, we have a rundown of the events that could move the markets ahead black rock's jeff rosenberg will be here. "squawk" returns in just a moment

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markets indicating they've come back a little bit dow futures pointing to a 200 plus gain at the open, but don't turn away because if last week was any indication, the picture can change in the blink of an eye. fire sale, weinstein company hitting a roadblock as new york's attorney general files a lawsuit against the studio and founders. plus, going for gold we're heading to south korea as the olympic games kick into high gear as the second hour of "squawk box" begins right now. ♪ ♪

live from the beating heart of business, new york city this is "squawk box. good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. the u.s. equities are looking for a sharply higher open. talking about the futures at this point being indicated up by 267 points for the dow s&p futures up by 27 nasdaq up by 61 points this comes after a rough week last week. we were down by the most we've seen in two years. for all the major averages you did see some big gains with the dow up 330 points on friday. we'll see what happens as we get closer to the opening bell obviously volatility is back president trump unveiling his plan today to improve the nation's infrastructure. it is part of the proposed budget which seeks $200 billion

for infrastructure and more than $23 billion related to border security and immigration enforcement and boosted military spending it produces cuts that are aimed at the projected spending deficit. we'll see what happens with what congress does with all of that again, that is due today and the price of gasoline is on the rise the latest lundberg survey shows the average price is up 7 cents a gallon over the last three weeks. that would put the price at $2.65 a gallon which is 35 cents higher than where it was a year ago. ford is planning to boost production for the lincoln navigator and ford expedition. that's the largest and most expensive suvs ford is increasing the output targets by 25% at the kentucky truck factory. the company says it can sell every single vehicle that it produces at that factory. qualcomm/broadcom planning a valentine's date they're set to meet wednesday to talk about broadcom's $125

billion acquisition offer. they raised the cash and stock bid last week to $82 per share the company has secured as much as $100 billion of debt financing and enlisted the help of two more large private equity firms. you don't want to miss the exclusive interview with broadcom's ceo that's going to be on "squawk on the street. the big question is whether a deal like this would be the trust of regulators. that is something that i imagine hock tan will be speaking about. there's a multi-billion dollar announcement taking over csra is being taken over for $45.75 a share csra had closed at 30.82 p$30.8r share on friday. the weinstein woes continue. new york attorney general eric schneiderman yesterday said he

had filed a suit against harvey weinstein, his brother robert and the company itself the suit alleges that executives and the company's board failed to protect employees. more than 70 bill have accused harvey weinstein of sexual misconduct he denies those allegations. >> it's a group of investors but snyderman's lawsuit has the allegations on hold. in the statement, weinstein's attorneys told cnbc that we believe a fair investigation with mr. snyderman will investigate that many of the -- the dow and s&p are coming off the worst day in years mike, we know that there's corrections and there's bear markets. >> yeah. >> i guess we could do a study on how many bear markets there have been and how many

corrections there have been and if there's been twice as many corrections as bear markets, then you come to the conclusion or three times or whatever -- >> yeah. >> -- that not all corrections lead to bear markets. >> that's absolutely true. >> probably most of them don't. >> i think 1/3 of corrections have ultimately gone into a bear market you're kind of fouled up if you go way back in the '30s because you were up and down 20 all the time the weight of the evidence says this is a nasty correction the features of this selloff that make it a little bit more seem like a correction than the start of a bear market is it's the sharpest, in other words, the quickest 10% drop from a record high ever or in 80 years, since 1928 >> wow. >> what does that mean it suggests that's more net positive because bear markets tend to kind of -- the market weakens. there's a long period of higher volatility before a bear market, a prolonged period of weakness where you're going down more than 20% starts up

it's been obviously all of this volatility trading and the market trying to come to terms with higher interest rates we're resetting valuation, sentiment and investor positioning from over stretched levels at the end of january in a very compressed way. and that's what happened here. it doesn't mean this correction is over even though friday's reversal to the up side had a lot of the features of what you'd want to see for a pretty good test of a trading low i do think you have to be prepared for this phase to last a little bit longer, but it's really unlikely because you didn't see anything systemic coming out of this you didn't see the credit markets throw a tantrum. you didn't see earnings estimates start to flag. it really did not seem to be something that it was an economic shock so i do think it's about what the market is willing to pay for good fundamentals right now and to see if in fact it's up and away with interest rates or if we're panicking in advance of the real pain. >> if you're going to design a way to ring sentiment or -- if things get too bullish and we

know that that can be a bearish thing when people are too complace complacent, if you want to ring that bullishness out of the market, typically the way to do it is very sharp, deep, fast correction. >> right. >> if it's water torture where just over time it's down 50 points, everybody is like you get lulled into hanging on. >> absolutely. >> you never get that scared. >> absolutely. >> that ends up at 20% if you go really quickly -- >> yeah. in a hurry it undercut a lot of the assumptions that people had for staying in or buying in in january, right because you hadn't been down 1% in a day in how long the longest streak with 3% all of a sudden it gets turned upside down. the counter for that is we haven't had people to have time to say, this is something scary. i think personally there's a little bit too much focus on the technical, mechanical volatility stuff. it excuses people from thinking

maybe this isn't just a glitch there's something else going on. >> right >> that's nitpicking >> reversion of the mean we knew was coming. >> without a doubt all you did is get back to november or so at this point >> mike, stick around. we're going to continue this conversation joining us right now is uri timber, with global macro in the global asset allocation division chris burtleson is here. good morning to both of you. >> how are you >> i will start with you, uri. is the pain over as you're listening to mr. santoli here? >> yes i agree with mike. the market ultimately this comes down to valuation, and the two problems that the market had from last august until two weeks ago was that it ignored signals from the bond market, and it actually made me think a little bit this is starting to look like '87 the other part was obviously we had a big earnings boost from the tax cut but the market rallied well it rallied well beyond that.

you know, the s&p was 450 points but 200 points was justified by the earnings gains and the rest was multiple expansion at a time when multiples were already super, super high. the other part, of course, bond yields went up 80 basis points, 85 basis points and the market ignored it we have four things going for us the stock market is listening to the bond market which averts i think an '87 repeat. two, we've given back 2 pe points so that extra froth in the market since last august is gone c, earnings of course are a really good story and probably will continue to be and, d, i think the bond market has largely done its job in repricing what the fed is going to do. you know, near 3% on the ten year is consistent with four, five more hikes and i think that's pretty reasonable and certainly a lot better than last august when the market was

pricing in only one more hike. when i put those four things together i see a market that is much more in balance than it has been. >> chris, a, you're in agreement with that, but i want to throw in the issue of multiples into this conversation, which is to say we're still hanging around, say, 17, a little over 17. doesn't have to come down -- i mean, if you think on an historical basis we were living at 16. >> right you know, it would be great to see the market at 15, but i think times are changed. 17 seems to me to be reasonable, particularly as jurrien said, it comes down it gives investors an opportunity. i looked at the correction since it was so short and sharp as being more mechanical and i think ill-conceived volatility products that people had a sugar high on. when will they ever learn? i think that was a part of it. robo advised rebalancing where these robo advisors don't hold widow's hands and it winds up to be a mechanical thing. also i think a little bit, algo

trading, you can put in bitcoin and everything else into it. i think really what comes out of that is that it only benefits a few investors, all the algorithmic trading and smart beta rebalancing so those really exacerbated what we had sure we're due we're probably due for another one, but i think it was very mechanical >> jurrien, what would you be looking for here let's say the market tries to have a recovery, go sideways, maybe last week's lows get tested or something like that. what are the indicators you would like to look at in terms of the character of any rebound that happens from here >> if you look at the garden variety sharp correction in a bull market, which i think this is, you fall 10, 15% to the 200 day moving average, which is exactly what happened on friday. you bounce -- you know, the decline from top to bottom is 340 s&p points you retrace 1/3 to 2/3 of that

so you get back up to whatever, 27, 27.50 on the s&p and then you chop around for weeks, maybe even longer. there could be a retest of the low at some point, but, you know, i think the market has gone straight up 52% from the beginning of '16 until two weeks ago with record low volatility that is not a sustainable path and so my sense is now that economic momentum is maybe peaking a little bit when you look at the pmis in the 60s. my sense is that the market's going to be more of a two-way street here chopping around, still going up but, you know, valuation really is the issue here, and my sense is that we're going from a market that -- where price went up more than earnings to one where price maybe goes up less than earnings and fortunately earnings are growing at 20% so that's not a very high hurdle, but i think the market goes up in a little bit of a choppier way and allowing pes to contract here as

they normally would be during a later stage of the economic cycle. >> chris, what are you doing with your money this morning >> we're rotating into those areas that are actually low pe and cheaper. so anything that's infrastructure, commodities i think, copper, whatever, maybe pick up some oil stocks. i think that makes a lot of sense, and stay away from the high pe. as hard as it is, start to sell some of those tech leaders. >> we're going to leave the conversation there thanks, gentlemen. appreciate it. >> thank you. >> thank you. coming up, bitcoin bouncing back by nearly 50% since dropping below 6,000 a week ago. really that happened last week? i don't have it on my screen >> yes. >> call on the cryptocurrency from one of bitcoin's biggest bulls, he's next the futures right now have been up more than 200 for most of the session we're up 287 on the dow now. 29 on the s&p. nasdaq indicated up almost 69.

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welcome back to "squawk box", everybody. we've been showing you the futures this morning, and they are indicating a higher opening for the dow up by 286 points let's also take a look at the ten-year note which is yielding 2.882% that's what people are watching closely, too, trying to figure out if there's potential for inflation coming that's part of what spooked the markets. we'll get a read on that on wednesday with the cpi, consumer prices we'll see how hot inflation has been, too. cryptocurrencies are seeing gains after being down most of last week. joining us is brian kelly. he's the founder of b.k. capital management and a cnbc "fast money" contributor and, brian, all this talk of additional regulatory scrutiny really drove prices down pretty significantly last week. was that a valid concern and a valid selloff? >> well, you know, the regulatory scrutiny and/or crackdown really came from asia. in terms of bitcoin and cryptocurrency --

>> south korea first >> south korea, china. >> cftc. >> right that's what turns things around. >> imf. >> that's what's interesting sec and cftc meeting in front of the senate banking committee really turned things around. particularly the one line, we owe it to the next generation to foster this. >> meaning we're not going to stamp it out. >> not going to stamp it out rightly so, they have concern for fraud. this is a grand slam this is a new way to raise capital, a new asset class and we are going to be protecting the public and fostering innovation. >> i heard somebody who's active in cryptocurrency last week saying we shouldn't be calling this cryptocurrency. you can't go to the dunkin' donuts and buy a coffee, you can't go to a hotel and pay for a room this is a crypto asset. >> right that's why my fund was called the digital asset fund this is broader than just a currency i'm making a bet that this is a new asset class in general

you're going to have eco smart commodities, you're going to have stuff like gold you will have a global digital currency, i'm not convinced it's going to be bitcoin. history of tech tells us tech disrupts itself. >> andrew was asking you this in the commercial you want to ask him. this was an interesting point. >> which part? >> is there a point you'd sell >> i said is this going to go to $1 million because we've had some people come on and say bitcoin is going to be worth $1 million. you said you would be happy for it to get to $20,000. >> i'm a trader. i bought some at 7,000 at 20,000 why wouldn't i take a little bit off that being said, it doesn't mean i'm less bullish bitcoin at 20,000 you can come up with crazy projections. is it going to a million maybe. there's a lot of room between here and a million. >> so we talked about bitcoin, bitcoin, bitcoin what's more interesting than bitcoin now? of the currencies out there that you think have the most

opportunity -- >> yeah. there's kind of two big themes for 2018 first of all are the platforms we talked about aethereum when i was here there's eos and neo. anything that can be built on top of and that you can issue an asset on top of. to me that leads into the second theme where we're going to have securities tokens. you see what t0 is doing. >> i don't see what t zero is doing. >> the big theme is you're going to have these tokens which are now crypto assets will be equity will represent equity in startups that's effectively what these icos have been t zero is creating an exchange to trade them on register with the sec, full regulation now you'll be able to buy into startups but it will be an equity portion it's the mashup of venture capitalism and capital markets >> that seems to get more regulated more quickly than anything else you've talked about so far. >> it is regulated

they've gone to the sec and said regulate us like any other exchange out there these are equities let's follow the rules like everything else. >> when you start regulating, what does that drive out if you're trying to get rid of fraud and eliminating people using it for bad trafficking how much pushes out. >> it does >> what are you talking about? >> particularly with the crypto assets, you're not talking about as much as you used to there are some that are privacy centric where you can't necessarily tell where things are going. those are being used on the dark web, but in terms of the asset class, if you have a crypto equity, let's call it, that is unlikely to be used on the dark web. >> how much of your pot of your assets are in crypto stuff >> a lot like -- like -- >> 20%, 40%? >> oh, no, more like 90%. >> wow. >> but i'm making a big bet. i run a fund i have money in that i have investments elsewhere

i'm making a big bet on it. >> you see your total net worth swinging 10%, 20% on a weekly basis -- >> yes. >> -- with these moves we're seeing. >> you're comfortable with that? >> i am comfortable with that. my recommendation is take 1 to 5% of your investable assets 5% if you're very risky, 1% if you're not that risky. you can spill water on the desk too, while you're at it. >> brian, thank you for coming in. >> thank you >> we will clean that up in just a bit. in the meantime, another big oops for wells fargo the bank's latest misstep coming up next. i thought they would play britney spears right about now oops, i did it again, both at what happened here at the table and everything else. take a look at futures dow off 312 points nasdaq off 75 points i didn't say off, i said up 75 ints stay tuned you're watching "squawk box.

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marketed addictive painkillers they've been sued by at least 14 states accused of deceptively marketing opioids to generate sales. another misstep for wells fargo. the bank has been trying to make amends to customers who are forced to buy car insurance they didn't need. wells fargo says 38,000 customers mistakenly received a letter that didn't contain a refund one non-customer was sent a check. wells fargo will work to ensure customers get the appropriate communication. another -- it's like every day every day there's a headline with these guys. i don't understand this. >> all right when we come back, we have more of this morning's top stories, plus a new oil report from opec just hitting the tape. we'll bring you those details next as you can see, wti up by 1.6% back to $60 at $60.20 a barrel check out the u.s. equity indicating a higher opening. aqp futures 330 up

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♪ ♪ ♪ good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. the equities are indicating another steep open the dow up by 317 points it looks like the s&p would open up by 32 points here the nasdaq up by 76. let's get to some of the stories that are front and center this morning. 21st century fox says it will maintain the independence of brittain's sky news for at least five years if it is allowed to buy the 61% of parent company sky that it doesn't already own. british competition officials are opposed to the $15.75 billion purchase

they said they will make a final determination by mid june. puerto rico suffered a setback in trying to restore power. an explosion caused a widespread blackout puerto rico is still struggling to restore full power after the devastation of hurricane maria half the island is still without power. universal's "fifty shades freed" topped the box office. it took in $38.8 million in north american ticket seals. "peter rabbit" was second with $25 million. new this morning, opec just releasing its monthly oil markets. jackie deangelis has the details. >> the headline, production went down slightly in january but, still, over 32 million barrels a day. now production in saudi arabia up a little bit, higher in iraq,

too. iran a little lower, venezuela lower as well. opec towing a line on the promised production cut. the question is, does it matter? after last week's wild ride with equities crude touched correction territory dropping from over $65 just a couple of weeks ago to 58 and change at one point. why that dramatic drop well, slight increases in the dollar index u.s. production topping 10.2 million barrels a day. equity drops that made investors pause will the demand be there to fuel this rebalance now what about opec? will prices drop more? is there anything the cartel can do to further support this market probably not cuts have been pretty painful. one of the turning points was when tax reform was announced, a i balance in stocks and a belief that it was changing enough to absorb the excess supply now doubts that that might not be the case. mid 50s, not out of the question as you can see this morning with the bounce in wti prices, stocks are going to drive crude prices in the immediate future, guys.

>> very weird. very complicated we're going to talk about it, now, jackie, because everything is interrelated. everything seems to key off equities but then the equities were keying off currency supposedly in the first place which are keying off bonds. >> right. >> let's try to figure that out. let's at least talk about it let's talk more about commodities and currencies joining us is neck benebroke matt smith is head of vest at delivered -- no, you wear a vest never with the jacket, matt. it works for you >> thank you >> nick, i want to start with you. the dollar had something to do with the nervousness with equities and related to the ten year it all seems related what i don't understand if yields are going up why isn't the dollar stronger.

you point out that the slope of the yield curve makes potential hikes by the fed less supportive of the dollar? how does that work is there any way a layman can understand that? >> you have a dwubl edged sword. it's just not as powerful as the dollar as some of the earlier increases. >> so any reason to be bullish on the dollar on the index or versus the euro or yen what do you see in the next six months and how will that affect equity prices? >> during this period of extreme volatility, we see the dollar up the yields were substantially higher the dollar still out performed the dollar is going to go down, the euro and some of these other currencies are going to go up. the main reason to be positive on the dollar is if you get unsealed markers. >> then all of this relates,

matt, if the dollar goes down, oil should be going up why did oil come down as the equity markets got volatile? >> well, last week, joe, what we had, as you said, there was a flight from risk crude was wrapped up really in that broader market sentiment. as we saw the dollar rally, we saw crude come off we also saw the situation exacerbated by these net long positions really strong in terms of hedge funds as oil prices moved lower we saw this kind of snowball effect as some of those bullish bets were unwound. that's why we sort of dropped 10% last week, the biggest weekly drop we've seen in a couple of years there. >> so is it about asset flows and people liquidating positions and, therefore, it affects the oil market is it about a weaker dollar or a stronger dollar immediately causes oil to be sold or is it just risk off that people just take profits and everything? it's hard to see the exact correlation with when you get a very volatile stock market

i don't know how you predict what happens in oil or currencies at that point. >> well, that's right, but i think in times of crises you see oil assets correlate we saw this flush out of equities so we saw that flush in crude there as well, but what we've seen this year particularly, joe, is oil being used more as the inflation hedge and that's why we've seen the rally up to $66 so far this year. >> you see why that makes no sense. if the -- you know, if the stock market is going down on inflation fears and oil goes down at the same time. oil should be going up if inflation is coming back and it's a hedge but it just gets thrown out it's like the baby with the bath water. gets thrown out when people take risk off the table in general, i guess. is that how you explain it >> yeah, that's fair, but then again as you're seeing here, equities are rallying. we've got the dollar weakening you're seeing crude getting a bit of a bump up again today all of these things are

interlinked, aren't they >> yeah. i think it's all linked. they're linked and then we talk about the fundamentals of each it's hard to separate the two. what's your -- get back to the dollar, nick what is your objective on the euro or the yen by year end, do you think? will we go back to 130 on the euro >> we'll be 130 to 135 for the euro i mean, the ecb towards the end of the year will be changing its monetary policy. the yen, doesn't look like anything going to happen there smaller gain on the yen, probably 1.07, 1.08. not too excited. >> you saw what happened when an administration official said they wouldn't necessarily, i don't know what, maybe he wasn't -- you know, maybe we made too much of the dollar weakness story, but we don't care if the euro goes to 1 point be point 35? will that be so good for our trade picture that we don't care that the dollar is weakening like that? >> it seems like a large move, but i think if you look at the

sensitivities of the economies, exports and so on, i don't think it's overly dramatic for the u.s. and overly dramatic for the euro if that happens steadily over the course of 12 months, think we'll be okay. >> what's the dog and what's the tail if computer traders decide they're going to do something with the market, that's going to affect currency and oil? >> right now i think the currency is the tail i think it's equities and yields that are the dog that's wagging the currency. >> what's first, is it yields? >> no, i would say it's equities equities one of your previous guests was interesting. you know -- >> really? >> -- we always have a quick -- >> which one we'll invite him back? >> all of them we always have a quick decline we always have a quick decline i think this next week and the week after is going to be important with what's going to happen with the equity markets you see the sharp forward and then some stability. we have one of the guests talking about how we were

feeling priced if we return to relative calm, that's going to return to relative softness. >> nick, matt, thank you as well seriously, do you remember which one? >> he really wants to know >> we will invite this guy back. it's rare. >> looking at the blood type >> the blood guy. >> that reminded me of leaching. i want to bleed you. >> it's cool >> you have no idea what they're doing. >> yeah, but they're figuring it out. >> i would like to know. >> he does, too. he thinks in five years -- >> it's a source. >> he wants to figure it out, too. >> i'll tell you what. >> what? >> monkey blood. try that just get a -- >> as a cocktail >> big transfusion of monkey blood. maybe it will work. >> then and now. we're going to head to south korea for a look at how the economy there has changed in the last 30 years since the last olympic games were held in the country. carl is there and we'll come back to him in just a moment. the futures are looking up this morning, triple digits in the green.

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this morning and they have been indicated higher right now dow futures are up where they've been most of this morning, just over 300 points higher s&p futures up over 31 and nasdaq will open up by 74 points here we've been watching the treasury market the yield on the ten year at least at this point. it's been pretty consistent this morning. around 2.8 yeah, 2.88%. now it's at 2.891% that's something we'll be watching closely. the olympics are being held in korea for the first time in 30 years how did the economy look then and now? carl is at the games walk us through this how are things today versus then >> reporter: it's amazing, becky. the summer games in seoul in '88 were a very big deal and helped korea start it's merge against as a world exporter. i heard you talking about trade. gdp in '88 in korea, $200

billion. today $1.4 trillion. the stock market, the kospi has gone from 651 back in ' 8 to 2407 i don't know if you recall, stars were flo jo who won three golds. carl lewis won two golds and that's the year that samsung became an olympic sponsor. they now have a massive presence here in olympic park which we're going to show you later on this week you might also be aware that samsung is responsible for about 1/5 of all korean exports. samsung on the world trading stage is pretty remarkable as far as competition goes this morning, keep in mind the name maria nagasu, the first woman ever to land a triple axle in olympic competition. she made her olympic debut back in 2010. she missed sochi last night she was the second highest trending topic in the

world. so congratulations to figure skating for taking a bronze. medal board continues to look pretty good for norway they're in the lead although united states tied for fourth with the netherlands we'll see that change over time, of course, as the events start to lean in our favor as we take a lot of medals in different kinds of games later on today we'll talk to a bunch of stars, chris mazdzer won the silver in luge the 17-year-old red gerard who took the first gold. 5'5", 115 pounds from silverthorn, colorado. what a story and what a morning he's having here, guys >> i just had deja vu, carl. so i haven't watched everything. you're over there. is norway, is it the speed skating again? >> or is it the shooting, right? the ski and shooting. >> no, you remember the speed

skating guy that got in a big tiff. >> oh, i forgot about that. >> yeah, that's what i'm talking about. is that what it is, again, carl? he loved his speed skating we're no good at anything else because of football. >> the coach and joe got into a little bit of a back and forth. >> it was a big deal in norway >> speed skating is responsible for -- no winter event has contributed more to u.s. medals in history than speed skating. so i have no idea what he's talking about. >> but is that what -- what is norway winning is it like becky said? >> i've got to look. i imagine it's a bunch of in order dick, some downhills, things like that. >> hencethe nor in nordic. >> this guy was like, yeah, you guys are -- what did he -- was it our uniforms? people thought there was drag on the uniforms. >> lillehammer. >> under armour. >> they ended up keeping under armour. >> yeah.

>> they kept under armour. they went and redid the uniforms we're going to get a better look at those over the coming days. >> he was disparaging our whole system over here because we're so focused on football i don't know if he saw that great super bowl i guess he probably didn't he likes to watch them go around and around and around and around i don't know i guess that's okay. >> you know what norway is winning in >> curling doing real well. they came in second. >> that's a cnbc thing so i'm not going to say anything bad about curling and we tried it. >> we fell flat on our -- >> and curling is one event for which we have never won gold. >> no? >> along with things like cross-country skiing and luge, actually. >> so you tweeted out the picture of the luge guy. you're hanging out with him. >> he was here a moment ago. >> financial planner >> yeah, he wants to be a financial planner and life coach but part of that is getting his financial planning certificate and he bought bitcoin and exited because he said it's like vegas,

you've got to lose to win. you have to know when to walk so apparently he's already liquefied his bitcoin holdings. >> i love the trivia you bring up we need to remember. no, because i'm also looking up south korea's top ten export samsung and hyundai motors >> another one >> thank you, carl great to see you. >> okay, guys. >> coming up, the s&p tech sector down more than 4% last week it did finish well off the close. are there opportunities in technology we will ask veteran tech investor paul meeks. he's next. futures continue to be strong, strong this morning. stay tuned bcquk x"n ching "sawbo o cn mom, dad, can we talk?

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seems a bit long, but okay. set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. welcome back to "squawk box. is the tech tide turning that's the question the sector lost billions in value paul meeks joins us. he's chief investment officer. good morning to you. >> good morning. >> we've had a number of guests this morning come on and say, you know what, if you've got to make a play, rotate out of big tech rotate out of the faangs you say what >> well, about a week and a half ago i was on air and i suggested that people under weight the sector and as far as the comment about taking some money off the table in the faangs, that might be appropriate overall i think there are great

opportunities in tech beyond the faangs. >> let's talk about where you think the opportunities lie. maybe before we do that, specifically are there certain -- we talked about the faangs broadly obviously that's only a handful of stocks. are there any in that group that you would want to hold on to >> well, hold on and buying them fresh are two different things, but as far as my favorites right here, i continue to like amazon. their total available market opportunity is enormous and growing larger i think the under performance in facebook even before they reported their quarter was not justified and i actually think i could buy facebook well before i buy snap and twitter any day of the week i think the other smaller digital advertising companies are short. out of the faangs, those would be my two favorites. >> the other stocks you think are going to perform >> i think it's a real interesting opportunity brewing in semiconductors within the technology sector. those stocks have been hammered and, again, they were hammered

well before recent quarterly reports. i particularly like micron micron put up a $2.75 eps. that's annualized to 11. the stock is trading four times below earnings yes, it's a commodity memory chip company, but on the other hand i think that this cycle is going to last much longer than folks think. that's my best idea. >> where are you on stocks like nvidia i was watching jim cramer's twitter feed if the market dips today, get yourself over there? >> i do like nvidia. i think as a play in gpus i had a probably go instead with advanced micro devices just instead of the relative disparity. i own some nvidia. i wouldn't buy here. it's very expensive. >> how would you think about the broadcom and qualcomm situation? the ceo of broadcom is going to be on "squawk on the street" at 9:00 this morning. >> interesting play.

qualcomm i probably would buy because here's the situation even if they get close to the 82% pick up price, there's limited down side in qualcomm and nothing lights a fire under management as much as potentially losing your job. i think they will do everything they can it might be an interesting play here. >> that's not a call on the deal taking place, that's a call on kwa qualcomm getting its act together to the extent you believe they haven't >> it's a little bit of both i believe the pressure to get the deal will get them going as the price goes from 70 to 82 even if they fend off the deal, they have to make some moves to improve their fundamental base to more broadly diversify away from wireless chips and into internet of things chips and i think they may not be great at doing that, but i think they'll have some gains. meantime, stock pays 3 or 4%

dividend. >> what do you think of snap and twitter which has much better than expected earnings last week and all of a sudden people said, have they turned a corner? has something happened here? >> i am still skeptical, particularly that snap is in the middle of changing their business plan. until further notice, what i would do is every time someone thinks about buying snap and twitter, slap yourself in the head and buy more facebook or google. >> final question, where do you land on tesla? that's not a tech name but tech land talks about it all the time >> the interesting thing about that is if you were to black out or redact the statements with elon musk's name out and eb's out, if you take a look at this company on a fundamental basis, it's the ultimate short. however, i wouldn't short it that means i also wouldn't go long because elon musk, frankly, is such a salesman that's his genius in my view even more than being a technology visionary. >> paul, thank you always great to see you, sir.

>> thank you. >> talk to you soon. >> wonder if elon would take that as a compliment rather than a genius, he's the ultimate salesman >> i don't know. i don't know both he's aloof >> when we come back this morning, the great debate is a big part of the market story blackrock's chief investment strategies jeff rosenberg will join us. stock markets look like they'll open up. dow futures up by 300 points s&p up by 30 and nasdaq up by 68 stay tuned, you are watching "squawk box" rig he cc.hteronnb

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stocks surge the dow pointing to a triple digit gain and then some at the open after a wild week on wall street we'll talk market strategy with blackrock's jeff rosenberg coming up. trumpononics dan sullivan joins us on set. plus, a warning shot to big tech we'll tell you which megaadvertiser threatened youtube and facebook to clean up its content or else. 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 and welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen along with becky quick and andrew ross sorkin let's get a check on the futures this morning we like to do this, get an idea where the opening is indicated i have no idea what it will be by the end of the session, but we're about 300 so far pre-market on the dow. s&p up 30, nasdaq up over 70 in europe, they've got that nice bounce back we had on friday here and the positive sentiment this morning as a result, nice gains across the board in germany, france, england, italy and spain then treasury, all up over 1%.

germany up almost 1.5% treasury closing in on the 2.9% level on the ten year. you know what's after 2.9? >> 3. >> no, 2.91. >> no, 2.9111. >> yeah, you're right. one of these days. one of these days possibly 3. a little bit of deal news. general dynamics buying csra the price tag $40.75 per share in cash. that deal worth a total of $9.6 billion. that includes $2.8 billion in assumed debt also making some headlines this morning, qualcomm and broadcom reportedly going to be meeting on wednesday qualcomm raised its cash bid and secured as much as $100 billion in debt financing for its hostile bid and enlisted the help of two more large private equity firms you don't want to miss the ceo

of broadcom will join the gang in an exclusive interview at 9:00 a.m a lot of questions about the antitrust issues also, the number of jobs that are ultimately going to get lost when you think about the sort of large numbers that people are talking 10, 12,000 people, engineers. we talked about. you were here last week when we had this conversation. >> yeah. yeah >> we'll see what he has to say about that. >> you missed it there was somebody waiving behind you. >> sfwhapd. >> she went away. >> our plan was to be on the ground floor in times square any time anybody acknowledges we're here and stops they jump off as quickly. >> this guy is on the phone. >> yes, these are real people behind us. >> hi. yeah, someone look at us you want to be on tv. >> any time they do anything other than what carl did at the olympics, fireworks. >> i tread lightly showing people who are walking around times square. >> there's crazy stuff. >> we didn't plan to be on the

ground floor. >> you know who's always naked out there? >> who >> elmo. >> because elmo -- >> under his furry -- >> elmo is always naked, isn't he >> he's covered in fur. >> there are painted statue of liberty people that i think are naked. >> those are the desnudas. painted on clothes. >> little chilly this time of year. >> it is it is. >> probably get more of that in the summer something to look forward to. in the meantime, it is a busy week for data on wednesday you can look for january retail sales and cpi thursday we'll be getting the jobless claims ppi, the philly fed survey, industrial production and national association of home builder survey friday, housing starts, import prices and consumer sentiment. the fear of rising prices is what we've seen. steve liesman joins us on what happens when rates rise and we'll be getting cpi and ppi that will give us a good indication of whether this is something we continue to worry

about. >> the market needs some actual data rather than virtual data to trade on but you're right, becky. people are calling this the big rate scare that's why stocks sold off so we went back and looked at six periods of major rate increases in the 10-year treasury to see what happens to the stock market if you wouldn't mind coming over here, take a look at 1993, '94 during the time of the rise stocks were down 1.5%. that's not true for the rest of these. we have some powerful gains in stocks while rates went up take a look at this time here, '98, 2000, up 44%. you remember that time it was kind of crazy going on here to '03, '04. you can put up the rest of the numbers. pretty powerful. even the one here, 21% i do want to show you this thing, what's happening is stocks are going up in the context of lowering rates. you have these bumps up in rates, but ultimately rates are coming down.

this recent bout, even though it's a low rate, pretty strong rise, 150 basis points total during this time now we'll look at the next piece of this, which is what happens six months later and there you see the returns are not quite as appealing. going back to 13%. that was good. that was the down -- the down period now take a look at the rest of these. a little bit more lackluster six months after rate rises. you see 8.4. who knows what happens there let's put it all together. what happens when you do it? the average yield that we've tracked here is 211 basis points, 2.11%. the s&p goes up an average of 26%. what about the next six months not quite so sexy. just up 6% in general, guys, what we see is the biggest factor of all of these is rising gdp. that's the thing that tends to send yields higher, becky. >> rising gdp, meaning a strong

economy, meaning rates are going up for good reasons. >> not inflation, by the way inflation tends to go down during these periods the fed in the earlier periods goes up afterwards >> all right steve, stay right here because we have another guest to talk to us about all of that >> he knows a lot. >> he does jeff rosenberg is blackrock's chief fixed income strategist. you heard what steve kind of laid out about what to expect with the stock market. i guess the biggest reason is why are rates climbing right now? is it for good reasons because it's a growing economy or is it for bad reasons because central banks are going to stop buying quite as much, not going to see other buyers step in or you're worried about deficits what do you think has been happening? >> a number of things have been happening, becky i think the change most recently if we focus on just the last week is really the change in the budget math. and what most economists have been focused on was the impact on the tax reform. there was a lag in terms of bringing up forecasts to reflect that, and now you have this much bigger than expected and much

more than what had been priced into the markets in terms of not only the economic growth impacts from the budget deal, but also for the markets this has to be financed so the supply side is a lot bigger than we've seen happening at a time when the fed is pulling back so that the net impact, the combination of supply going up and the fed's support for that going down means a lot more issuance. that's why you're seeing a steepening in the curve and rise in real interest rates. >> jeff, that makes sense logically. i can think it through the rise we saw in interest rates happened before that budget deal. that was the end of the week last week. all of this big movement that we had seen kind of predated that. >> oh, absolutely, becky, but what happened last week, which was really interesting, was the acceleration in real interest rates. so you mentioned this week we get a cpi number going to have a focus again on inflation. inflation expectations were part of that earlier rise but what's happening now is a bit more of concern around the supply/demand

imbalance. you saw a bit bigger increase in terms of interest rates. i don't want to over state that it was just the supply picture you've had growth and supply, the impact of tax reform, but on the margin last week i think the supply picture really caught market's attention. >> we're acting surprised that the interest rates ever finally getting towards 2.9% man, it has been a long time coming the economy has been doing very well shouldn't we feel a little better about all of these things >> we should feel better about it what steve's piece goes through is that a lot of times when interest rates are rising as your opening question is about, it's a good sign it's a sign of growth in the economy. the issue this time around, which is really different than any of the historical experiences as steve was talking about, is really coming off of very unique period, a period of global interest rate what we call financial repression, zero interest rates, quantitative easing sitting on the back end of the yield curve, very flat term premiums. the realization in markets that that era is ending and the

transition to a much higher, more normalized interest rate environment is a bit of what's causing some of that volatility in the equity market >> i know steve has a question for you, too steve? >> jeff, i'm trying to fund my retirement off of collecting $100 from everybody who wrongly calls the end of the bond bull market, and that has been true i don't know about the chart back behind me, but that has been true throughout this bull market while the thing has declined if they have the other graphic is the one i was looking for there, but it's been a steady decline in rates. this piece does look a little different, but, you know, it's the context has been rates have come down, down, down even in the context when rates have risen in between that. so what's your call here, jeff is this finally the end? is this little piece we're talking about right here the end of the bond bull market? >> i'm not going to go there i'm going to keep my $100 in my pocket, steve. it's a fool's errand. >> it is. >> because people get confused

between the secular moves and what may still be lower rates if you eventually hit into an environment of the end of the cycle. we're not talking about that any time soon, so this is going to feel like higher rates we think higher rates are here for a while and the supply side stuff that i just talked about, very good backdrop for notonly u.s. growth but global growth. this is the opposite this is what i put in my outlook piece for 2018 this is about fuel for overheating and about how the next cycle occurs is not through too little growth and recession but through too much first so it's going to feel like higher rates for a while. >> but you don't think that the fed is going to raise super aggressively this year you think that this is something that they kind of wait and monitor and this is more of a 2019 story >> absolutely. this is not about the fed. i mean, what's happened in the last week, the front end has been relatively sanguine it's about changes in expectation for supply, changing in the term premium, change in the impact on global monetary

policy, impact on that term premium coming off and so seeing a steepening but not necessarily the fed accelerating because there's really not a huge inflation component, a huge inflation scare. inflation is coming back to trend. the fed's going to want to see that they're going to embrace that. the market hasn't really moved off the three to four hike pace. that's our expectation as well. >> which means what for investors? what should they be doing if these are people considering >> one of the most important things that it means, this is a bit of the challenge here for looking at riskier assets is that pricing in that normalization in the fed has restored some value to save assets seeing a 2% interest rate on a two-year treasury is something we haven't experienced in a very long time. that restoration of some safe alternatives is something that investors can be looking at. and i think as you see more volatility and a revealing of how much risk you're actually taking to generate some of the

returns and some of the income, taking another look at what is now available in the safer part of the market has certainly increased in terms of its relative attractiveness. >> jeff, thank you for joining us today it's good to see you. >> good to see you thanks, becky. >> steve, thank you, too >> pleasure. a lot still ahead. up next, pharma. pharma in focus. will president trump take aim at pharma alaskan senator dan sullivan joins us on set to talk about the president's budget and rebuilding america plus, we're continuing to watch the futures which are strong and sharply higher this morning. just turned up 300 again on the ayw jones. st tuned you're watching "squawk box" on cnbc

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welcome back to "squawk box. check the futures again. we did it on the way out, but they just moved back into 300 plus territory 306 now on the dow strong opening after a strong session on friday. the s&p indicated up 31 and the nasdaq indicated up 74 at this point. the ten year was closing in on

3.9 but then last we looked i think it was 2.87. 2.87 on the ten year as you can see there. 2.878. a little news crossing the wire starboard delivering a letter. the activist invest or martin frankel a guest >> franklin. >> franklin. newell shares are down nearly 40% since the jarden acquisition. martin franklin will be joining the "squawk on the street" gang at 10:00 eastern time. the white house will unveil its budget today and a few measures may take aim at the pharma industry. meg tir rel joins us with more. >> president trump pledged in the state of the union address fixing the prices a top priority many say the first look at

trump's potential actions doesn't look so bad for drug companies. much of the focus is changes on the way medicare pays for drugs. importantly, trump's plan doesn't appear to give the government insurer the potential to negotiate things directly one of the things trump's plan may do is change the way rebates or discounts paid by drug makers are distributed getting applied directly to the cost of the medicine rather than being distributed to all plan beneficiaries. while this may reduce what those patients pay in co-pays, some say it could increase what everyone in the plan pays in premiums the focus brings another group into the spotlight, pharmacy benefits managers. those are the middlemen that negotiate rebates and drug prices on behalf of insurers and employers. in a report released friday adds to that pressure suggesting pbms contribute to a system that

encourages drug companies to set high prices. they dispute it. a lot of people say not so bad for pharma even though it looks bad on its face. >> still what's surprising is when a deal gets cut that nobody was expecting to come through, right? we could have something that automatically comes together, nobody saw it coming and here you go. >> yeah, certainly that's always a risk if people aren't anticipating something a lot of these things have to go through congress and they've been batted around and haven't been super popular it's an issue that's arising and people are worried about drug prices. >> thank you, meg. coming up, unilever has some strong words for a few tech companies. we're going to tell you why the consumer products giant is telling facebook and youtube it has to clean up its content or else more coming up ds, driving specific sectors of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era

draws youthful populations to mobile banking and e-commerce. trade and travel surge between emerging markets. everyday our 1,100 investment professionals around the world search out opportunities for alpha. partner with pgim, the global investment management businesses of prudential. we've been preparing for this day. over the years, paul and i have met regularly with our ameriprise advisor. we plan for everything from retirement to college savings. giving us the ability to add on for an important member of our family. welcome home mom. with the right financial advisor, life can be brilliant.

welcome back to "squawk box" this morning take a look at futures we are in the green this morning on this monday morning dow looks like it will open up 300 points higher. nasdaq opening higher, 72.5 points s&p up 30 points unilever with a warning to tech and social media companies saying clean up your content or we're going to pull back our advertising. the message aimed at platforms like youtube and facebook. the company is pushing the digital media industry to weed out content that exploits

children, spreads false news or supports racist and sexist views. consumer products giant follows through with the threat, it will be a very big blow unilever one of the world's largest advertisers. and in the same kind of category, younger people are abandoning facebook for snap chat at an increasing rate that's according to a new study out from emarketer that firm says that facebook's user growth is coming from older, not younger users it also expects facebook to lose 2 million users under the age of 25 while snap chat will pick up 1.9 million users in that age bracket. the market insists facebook will be the dominant social network this year. i think that will probably be changing any time soon also, disney is raising admission prices at its theme parks. tickets for value days are going up by $2 to $109 a ticket. regular day admission is $4 more and peak days will be an extra $5

disneyland regular day prices will go up by $7 and peak prices by 11 bucks. disney says the hikes are aimed at preventing over crowding. >> okay. when we return, we are counting down -- >> and making more money. >> -- counting down to the opening bell on wall street. later republican senator dan sullivan will join us on the set. we await the house infrastructure plan and budget squawk returns with all of that in just a moment this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do.

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get out there. explore. see. smell. hear. taste. touch. widen your world. good morning welcome back to "squawk box" right here on cnbc we're live at the nasdaq market site in times square among the stories front and center, we have a few earnings reports coming across the tape among them, first data estimates of a quarterly profit of 44 cents a share while revenue topped street forecast restaurant brands international,

burger king and popeyes, they reported a profit of 66 cents a share, 9 cents above estimates a big boost in consumer traffic at burger king comparable store sales rising 4.6% during the quarter. do you guys do any burger king >> no. >> it wasn't you guys? gasoline prices are on the rise. the latest lundberg survey shows 7% gallon increase over the past three weeks. the average price $2.65. that's 34 cents higher than it was a year ago. president trump set to release both the budget and an infrastructure plan later this morning. joining us now alaska senator dan sullivan welcome. welcome to times square. squawk square. >> great to be here. >> andrew, good to see you. >> good to see you, sir. >> i saw someone talking about the washington post piece. when boehner and obama used to argue about budgets. one would argue about what they

wanted done, the other would argue about butter guns and butter. the age old priority list. the criticism in the "post" is that neither side is arguing that they're disagreeing to both and that it's going to blow out the deficit, i guess should we look at it that way sf >> well, look. these are hard agreements. sometimes they're difficult to vote for i did vote forit my focus was on the guns, on the department of defense. we cut from 2010 to 2016, we cut military spending 25% as the threats to our nation have risen. so to me that was my main focus with regard to this budget deal but, look, you're raising an important point, that we have to get back to strong levels of economic growth. we have to have a much more functional budget process, and i think we need to take care of long-term entitlement reform for

the next generation of americans to address the deficit challenge. there's no doubt that this was something that was an important bipartisan deal. my focus was on the defense side. >> if you were just a normal person out in the hinterlands watching, we thought daca, we thought the democrats really -- that that was going to be something they were going to hold out for, very important, and then we had the shutdown and then where did it go trump keeps talking about it, but i don't see us getting any closer and they did the budget without daca i thought that was going to be necessary to get -- to arrive at a budget deal. where's schumer? >> well, i think one of the important things about this agreement was we did kind of separate the issue of immigration reform. >> they were going to -- >> they shut down the government because it wasn't separate. >> i think when the minority leader chuck schumer shut down the government, he realized that

wasn't a good move most americans didn't support that even if they did think doing something for the daca recipients was important, then you're going to see this week. we have these important issues with regard to immigration reform >> giving the structure of the budget being laid out, the prevailing view is that this whole thing is dead on arrival no debating it it's not going to happen. >> they announce the principles of sale today. in particular, what they're going to focus on is not just in terms of spending, both private sector and public sector, but the permitting reform. this is the most important thing i think we can be doing. it's what the president's focused on we had a hearing in the congress committee a couple -- about a year and a half ago. the seattle tacoma airport, it took 15 years to get a permit

for the runway. >> oh, no, it took me 15 years to get my luggage. >> i flew into laguardia >> you came into laguardia. >> it's a permitting issue, not a spending issue. >> they're related they're related this way, because the more you have certainty in terms of permitting, the more you can say to private sector investors, we can get this permitted in a year and a half or two years, the more money you're going to see from the private sector that will want to invest. and i think that's a critical component that's been missing. >> understood that it has gotten really stretched out to these kind of ridiculous lengths you will see some people on the left, senators and house members on the left who will say, wait a second, this is going to thwart environmental protections. are there enough votes in the senate to do this and are there enough votes in the house when they say we don't want $200 billion being spent on this? >> good point.

if you look at the u.k., australia, canada, they do major infrastructure projects inside of two years in terms of permitting i have a bill, rebuild america now act, which is all focused on permitting we have all the building trades. >> we've heard from some of them. >> very excited. >> they say it takes eight years or longer and that means jobs. >> these are men and women that build things in america. they are supportive of this permitting reform. which is where i think we have an opportunity for bipartisan support. every mayor, every governor sees these problems so i think there is support. >> when the president talks about a $1.5 trillion infrastructure plan you think what >> he's talking -- he's talking about some federal spending. >> i'm asking you about federal spending. >> are you in support of -- are you in support of federal infrastructure spending? >> i'm supportive of some. >> what kind of number >> this bill that we just had -- i'm about 200 billion or less. i actually think -- but i actually think, again, the vast majority of this is going to be

coming from the private sector if you reform our permitting system that can assure -- ensure investors that costs will go down and that we can bring these projects online on time and that's where you get the money from the private sector. >> what do you make of the other side of the aisle will also say, look, we don't want the private sector to own the toll roads we don't want the private sector to own the bridges. >> look, it's a combination, right? one of the elements of the president's principles on infrastructure today is going to be a focus on rural states like mine, alaska certain states that don't have big populations can't always have the toll roads so there's going to be a set aside of about 25% in this proposal for rural states so to me it's going to be a combination of what the government can spend, what comes from the private sector but importantly what we do to fix a broken, dysfunctional permitting system that in my view really inhibits private sector development and in many ways

state development as well. >> where is the heavier lift, in the senate or the house to get the votes for it >> it's in the senate. it's always in the senate. it's always in the senate. but that's why it's important to really focus on a bipartisan approach to infrastructure spending, which is what we've been doing the white house has been working this on the hill, in the senate for months so hopefully we're going to see a good reaction and these principles are announced by the white house today. >> so it's valentine's day is coming up. you know what's coming up eventually is november where do you stand with the -- do you think the house goes? do you think the senate stays? do you think neither goes? i hear the dnc is broke but then i hear there used to be a big generic advantage for congressional candidates or democrats. now the republicans are going to get more -- i don't know, they're going to ramp up the benefits of the tax reform legislation. >> well, look -- >> what do you think it looks like in november what's the political landscape >> the generic ballot is starting to really get about

even i think if republicans stay focused on the key issues americans care about, what are those, jobs, growth, energy. this is an area where the administration and the congress are now focused. it's an enormous opportunity for our country. >> you don't think republicans keep both houses >> if we stay disciplined on those issues and americans care about jobs, economic growth, energy, strong national security, i think we keep both houses. >> i'm glad elections are every two years for us i can't believe it's going to be november get to watch again it's good to know where people stand. you hear where people stand, you watch the media, you hear one thing and then like the last election, it might not be that -- might not be that based in reality as they tell us it is all the time. >> joe, so one thing that's actually very important. you see what is reported on in

d.c. and other places. then you go home i try to get home almost every weekend in alaska. your constituents tell you a different story. i think that story is typically about jobs, strong growth and national security. >> when you go back, off camera, keep an eye on putin because you can -- aren't you close? >> we can see russia. >> you can see russia from right there. palin used to keep an eye. i don't know if she's watching anymore. governor palin used to watch. >> you're watching >> a lot of foreign policy and defense experience. >> that's exactly right. >> in alaska we're on the front lines of freedom out there protecting our nation, whether it's missile defense. >> preaching to the choir. freedom. individuality at this. hard work. cold. >> it's cold >> i know. it's nice. bears. thank you. >> thank you. >> great to be on the program. >> great to see you. let's get back to the broad jerel marke

er markets dom chu is with us dom, good morning. >> good morning, becky so one of the reasons why we wanted to take this exercise to heart was because throughout the course of the current market melees we've been highlighting the bigger market moves from bottoms to topts, tops to bottoms to get an idea of where the most trading activity has been and where traders are battling things out. we decided on this bounce to take a look at the friday trade. we saw that real dip lower only to see the markets close higher. where exactly do we see most of that buying habit? it turns out 47 stocks within the s&p 500 saw large moves from the low to the close by 5% or more so a pretty big swing from their interday lows to where they ended up closing here are some of the names of what went on those trader and investor shopping lists during the dip we saw on friday target shares on the retailer side of things up 5% to where it actually closed maybe some people taking a look at retail names that have been

beaten down. microsoft, megacap technology. up 5% from the lows to close facebook also on that list 5% rise there and then amazon, we know a lot of folks have been wanting to try to find amazon shares on discount they found a little bit on friday and bid it up by 6% from the low. another one, cboe, exchange operator, a lot of talk about them because of their earnings report and the fact that they own that very popular vix index that's become the center of so much market technology concerns about whether or not cboe would take a hit because of the negative brand value of the vix being done in the market today. that played a role in it people bought those shares up by a big amount becky, just an idea. it could be fundamental buying or short coming. these are some places where investors went and took a little bit of a bet on some up side we'll see if those hold up in today's trading session. >> after some pretty significant pull backs for some of those names, too they were leading the way down.

>> exactly if they went on shopping lists maybe there was enough value there or maybe people were covering shorts, we don't know if they play out again today, it might be a tea leaf. >> dom, thank you. let's get down to the cme. rick santelli joins us rick, we've been talking about where bond prices have been headed looking at almost 2.9% a couple of times for the ten year that's something to sit up and take notice. i was wondering, when was the last time we were at 3%? >> well, we had one close above 3% other than going back to about mid 2011, becky, and that one close was december 31st, 2013 the last trading day of the year we closed at 3.03. that was it. so basically 2011. i think we're going to get there. as a matter of fact, you know, just like in stocks, when you're bullish, you try to buy the dips when you're bearish you try to sell the rallies i think we're in the type of --

i wouldn't try to get all the small points of resistance the market is in a stretch we're going to test the december 31st 3.03 yield close. it's more important to see where the market holds when it goes back down. 2.63 last year's high. we've held it on an interday basis. for the most part, once we went through we've never turned around i think as long as we're in this mode we will continue to stretch the yields higher. >> we've been talking about this this morning, trying to figure out the increases we've seen in treasury yields. is it for a good reason that the economy is doing well, things should be picking up, or is it for bad reasons? people talk about deficits people talk about the central banks not being the buyers they were what's happening you get to stand in the middle of it all. >> i do think that if you look at the balance, whether it's our fed or the cumulative balance of all the major central banks currently over 16 trillion but a little off its highs, that it

really does track very closely with the complexion and the patterns of the bull equity markets. as central banks slowly, and i mean slowly start to revert some of their balance sheets back into the marketplace, i think that's going to be a very disruptive force in all markets, particularly in the fixed income market does that mean that we have to follow it all the way down and there's no hope for stocks no i think it's more like the line for the balances is going to continue to go down with the market but there's going to be a point at some point in the future where the economics, the positive economics will float in higher we're just not at that fulcrum yet. >> rick, thank you, sir. great to see you this morning. >> thank you. coming up next, the 2018 winter olympics, they are underway carl is live what do you have for us? >> reporter: hey, andrew olympians these days have a lot to handle from social media to taking a stand to some of these north korean political decisions. we'll check in with a decorated

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want to get over to carl he's live at the winter games in south korea this morning or this evening for him tracking all of it carl >> reporter: yes hey, good morning, good evening,

andrew it's a lot different being an olympian these days than 20 years ago. you have social media, the transparency of the internet no one understands that better than apolo ohno. the most decorated winter olympian we asked him just how different is it? >> it's entirely different when i walked in my first opening ceremonies in 2002, there was no camera cell phones, right? didn't exist so we walked and we were completely present there was no other distraction now we live in a world where you've got so -- there's a million pieces of information being thrown at you every minute and your ability to process information and decipher from time to time is totally different. so the athletes are under more scrutiny but they also have a wider audience when you see that as an opportunity rather than a challenge, i think it kind of raises your eyebrow. you can have simone biles or any athlete here who's a superstar or become a superstar overnight and they have front and center,

communicative line to talk to people before we just said, oh, apolo ohno, he has long hair put the helmet on. maybe unrecognizable now you have ongoing 24/7 access to this individual see what the personality is like off the field of play. that's special. >> north korea, you tweeted a picture of one of the players practicing it underscores the spirit of the olympics how are they supposed to be perceived. back home they're considered a dangerous regime. >> absolutely. i think this is where the olympic games really shines, right? you have such an isolated country who sends athletes who we haven't seen. i'll take short track speed skating, for example these athletes, we don't see them train they show up once every four, eight years. we have no idea what equipment they're using, what their strategy is like i watch them skate and i see they are 10 to 15 years behind. >> it's a difficult game for some of these athletes who want

to separate the north korean athletes who are here from some of the calculated moves obviously that kim is trying to make by the way, those north korean cheerleaders we talked about earlier this morning, guys the women's hockey team, the korean women's hockey team, the first team to combine competition lost to switzerland 8-0 and as the journal points out this morning, becky, that was written up broadly in north korean media but the score of their loss not included in those stories. just an idea of the full information and how different it is in that country >> they don't even give them that information so as far as they can tell, they're only going to find out if they win gold medals? >> reporter: whatever it was, it was good. >> they say they lost, carl? did they not say the score i can identify with that sort of you know what i mean i did not win a golf tournament but i'm not telling what i shot, you know what i mean >> reporter: is this why you

didn't want to see your golf clubs in newark? >> i didn't really care whether they -- you know, i didn't like waiting. i considered leaving them, believe me maybe it's -- that could be it maybe there's something -- i don't know stiff shafts maybe i'm ready to get some regular shafts i don't know, carl. >> yeah, it's the clubs. >> always the clubs. >> reporter: it's the clubs. >> it worked on tuesday -- wednesday and thursday i don't know >> what happened to those clubs overnight? >> who knows someone snuck in where were you some little gremlin snuck in carl, you do a good job over there. you have a passion for the olympics you've done this before. >> reporter: this is number five. >> wow. >> reporter: for andrew, it will be number two. >> number two. >> reporter: we'll be seeing him this weekend. >> excellent that's right >> are you guys going to be passing like ships in the night? >> going to see each other on friday, i hope. >> one quick day. >> that's the plan carl, thank you. we will see you in a little bit. i know we'll be seeing a lot of

you today and throughout the week. when we come back, jim cramer will join us live from the new york stock exchange. we'll get his take on the biggest movers dow futures up by 275 points s&p open up by 30. nasdaq up by almost 70 "squawk box" will be right back. it's all yours. wow! record time. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living. honey? you almost done? nope. get ready, because we're helping leading companies see it-

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wells says 38,000 customers mistakenly received a letter that did not contain a refund although one noncustomer was sent a check a spokesperson says wells fargo will work to ensure the customers get the appropriate communications down to the new york stock exchange, jim cramer joins us now. if we add up friday and today, if it were to stake here, it would be 600 points. >> rates are going the wrong way

this morning which would indicate they're better now we need to see rates lower you're up so much. you have to take profits those people are your enemy. they're going to come in and take profits. like a sucker's h me >> i mean -- i don't want to put you on the spot. are the lows in? >> i think we'll see those prices again but i think when we get there buyers will be all over it. what we need to see is this tv ix, much lower it is lower today. look, i wish everyone would follow what fidelity did and we'll not participate in the east and retail investors participate, these products are

worth so much money. there is no way. there is the rights of free enterprise markets celebrations to cboe, free markets. i care about people getting hurt they're going to get hurt. >> it is all about the olympics. i don't know where you start in purdue lost and xavier won >> and st. john is the hottest team >> where do they go? michigan state moving up one or two or something >> i think michigan state does >> virginia lost >> you had to include the olympics and this. i think that nova maybe softer than i like. >> where is xavier >> they go higher. >> they're fabulous in the tournament i may pick them for the final four >> it is copping ming up to theg east tournament, we should go.

>> georgetown is looking better. >> the march 30th. >> we drop everything for that >> i am going to go, call stub hub. can you help me with that, go on the -- >> the app >> thanks jim. we'll let you go >> so you go on and they give you where the seats are. >> you pick the seats. >> you don't call them >> you put the credit card in and how do you get the tickets >> get the app and then the bar code will be on your phone and you scan it like you do at the airport. what do you do at the airport? >> i got to have a boarding pass, where do you put your luggage thing to stick on. where did that come from did you see that >> oh, confetti that drops here for the opening bell

we just missed it. >> thanks. >> coming up on "squawk on the street," don't miss the exclusive interview with the ceo of broadcom. stay tun, 'lbeig bk.edwel rhtac

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welcome back "squawk box," take a look at earnings, earnings season is whining down. a couple of names that you will want to watch this week. pepsico and under armour and campbell soup and coca-cola. even though it is kind of towards the end, people still care about those ones. >> i think cramer had some followers. i saw what he said on twitter. >> last week >> about >> about the markets >> we are under 200 now. you heard of what tim just said in terms of 200. >> he said that i would sell the rallies and we'll see the lows again. we'll be up 300 and maybe coincidence. he was only on 10 minutes ago

with us. >> he's been saying that since 3:00 this morning. >> i know he has on twitter. maybe we do have more viewers than he has with twitter followers. he has been saying it but sud n suddenly, we are not up 300. it gave good analysis. >> we'll hear from him directly in just a moment thanks guys, make sure you join us tomorrow, "squawk on the street" begins right now ♪ >> good morning, welcome to "squawk on the street," i am david faber along with jim cramer we are live, carl quintanilla is with us at the winter olympics in pyeongchang moments from now, broadcom's ceo, hock tan is going