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 to join

us the upcoming meeting between qualcomm and broadcom and a lot more lets give you a quick look at the futures at this moment we are set up of a higher open, this is has not been a great tale for the rest of the day given the volatility that we saw last week. we did end the week on an up note have not put the two back-to-back there is germany though and the rest of europe like we are really, really weak. >> come on, everybody is down the same amount, it just does not make a lot of sense. >> tlhere is a shared concern 2.86 >> calmer than they were at 3:00 a.m >> that's important. we can see wti is having a little bounce as well. >> we start with the course markets that bounced back after the worst week of stocks ins

southeaster since 2016 you know what jim says about the futures. plus, the white house is rolling out its budget and a new $200 billion infrastructure. key question, how are they going to pay all of that >> broadcom continuing acquiring qualcomm it would be the largest deal of technology of all time qualcomm's ceo, hock tan, joins us live right here at post 9 we'll have a nice conversation with him about the prospect for that acquisition lets get straight to the markets. the futures point to a surge kristine lagarde commenting in dubai. >> to compare, it gives acid

prices very high and of a view welcome correction we have observed despite the volatility the market channels and pipes and mechanisms have worked well. we also see the financing is still plenty and very much available for the financing of the economy. so corrections happen. they are due to happen and that's where we see it >> there is christina lagarde. lets go to james mim cramer. >> we are in the mode where everyone tries to justify what happens. if the vix continues to spike, it is the end of the world i think we are having a serious correction do i regard a healthy correction it is a correction that's so r

correlative. there are also individuals that were in this thing there is a fabulous article about someone who traded and lost why this is so important because that's a sales pitch when they come into sell the s&p, it is nobody there. it is machine verses machine and individuals who are trying to gain machines. theres no body thinking of what christina largarde says. >> no. >> deficits, the percentage of gdp that we are going to generate in year and next year is 5% more by 2019 and

inflation. on wednesday i guess this january's cpi can become an important number >> yes the executive of clorox, he says look, transportation costs are up they think those are temporary everything is temporary. the problem with temporary is it proves not to be temporary and interest rates have to go higher >> by the way, david, it was not that long ago that we were hoping for three >> there better be forces that want to buy at 3 >> certain governments and china. >> china is not buying and saudi is not buying. >> better somebody is stepping up, we got a lot to sell >> we need to see europe stepping up. i don't think 3 or 3 quarters

are not stepping up. >> you don't see the 10-yr yield goes into that >> i think it is going to stop s soon >> you do. >> bridgewater, by the way, dahlio, he did comment about the market volatility. "there had been a lot of complacency built up in markets over a long time." i am going to defer for ken fischer. >> we had them during this period and it is a good historical spectrum that puts it

in -- it is not a bad market i follow ken for years and i read all of his books. i introduced one of his books. i feel ken's column is saying why are we freaking out when this actually happened before. this is not a bad assault as we had. historically, ken does better work than all the commentators, as it comes in, don't be afraid. the housing and the group and utilities. the investment trust, they are radio active here. >> yeah. >> yeah. >> but, retailers, domestics are doing quite well healthcare, if it is a company that we throw away is doing quite well >> need to see if industrial will pick up tech is okay

>> simpleemis are the battlegro and you could not have a better battleground this morning. >> hock tan represents >> he's joining us very soon we got to go to carl now so we can keep our time of where we need to be over with carl at the olympics in south korea, carl >> yeah, we'll keep it short i know you got to make time for tan. >> you don't get interceptions between the markets and what's happening at the olympic games some are looking at the kospi today. who knows or whether or not kim jong- jong-un's sister invited president moon after the game. maybe because of this interview that the the u.s. post suggests the u.s. may be engaged on

talks. the question this morning is how much did u.s. foreign policy evolved over the weekend there were a lot of behind the scenes maneuvering going on as well as far as actual competition, north korean combined hockey of those women where we saw those cheerleaders did lose to switzerland, 8-0 netherlands 5 and germany and the u.s. are tied for 4. it is going to be a busy week and an exciting week of competition. coming up we'll talk to the 17-year-old who won the u.s.'s first gold, red gerard, you will hear why of all dream sponsorships he would like to have one with chipotle and jaime anderson and why she wants elon musk to call her >> that kid red, that was a

great win and unexpected when you are not the favorite, you are loose and goes out there is and does it all so many were a great story and then those norwegians, those whole country is built for the winter olympics -- i don't know, they have the most of all time, don't they of medals >> true, they are good in certain sports others like the u.s. and south korea even are better at speed skating so that's where it is going to be other than other erc events start to meddling in. >> when you see knthe norwegians it is like --

>> it is having been there and trying to climb up the mountain, all the no norwegians are passing me. >> thank you, carl >> when we come back, we'll have the exclusive interview with broadcom's ceo, hock tan >> that's how they roll. >> we'll talk about qualcomm and business as well here is another look at futures as we get ready for trading in 20 minutes from now. we have a lot of "squawk on the street" from post 9 right after street" from post 9 right after thiste missing out missing out after hours. not anymore, td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing.. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie?

le the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, only with td ameritrade. in the 2018 lexus es and es hybrid. lease the 2018 es 350 for $339 a month for 36 months. experience amazing at your lexus dealer.

well, does it get bigger in my world, the tech world mma, same sector and raising its bits to $2 a share and two companies will be meeting this week i am so shrithrilled to have ho

tan here >> let me ask you why i have been such a big supporter. this is one where qualcomm just does not want it and they're willing to do anything it seems to stop you. at what point do you say it ain't worth it >> one way driving down to is we believe and we have a compelling offer out there, extremely compelling we have gone out to shareholders and a lot of qualcomm's significant shareholders and what they like to see is engage with us. any responsible buy would make it a top priority to negotiate an agreement with us and preserve and protect that $82 a share that we have on the table. >> any responsible words, that means you believe this board is irresponsible of the way it handles itself >> no. we have an encouraging meeting

on wednesday >> you said overwhelming from their shareholder based. very much unclear of where the index funds which owns so much with qualcomm and of the large company is coming down what i am hearing is continued concerns of antitrusts a and i p there is still value there lets start with antitrust, why not give more assurances and not just an $8 billion break up fee. come hell or high water, we'll get this deal done that's what some of them tell me they would want. why didn't you offer that? what we have in place is a serious offer. it is. let me start out by putting it in perspective the other side, qualcomm have sent a lot of messaging from them the past two or three

months, heavy on rhetoric and short on specifics we studied everything here at the feds the two business, the two companies are highly complementary. our call businesses with each other do not compete there is a year path to regulatory aapproval we have the track record >> if you believe there is a clear path then why not take the regulatory risk in a significant way. why not just take it all on? >> we are already taking most of the risks in certainty on regulatory we are >> we have identified as they have the two product lines that overlapped we have up front clearly

indicated to all three regula a regulators the rest of the stuff was signed out their efforts to clear what is failing routine that's why i mentioned and it is a low regulator risk and on top of that we are putting our money where the mouth is $8 billion you know i am kind of a frugal guy, you think i would sign out to pay $8 billion if there is everyone a second thought that it would happen. >> i think it is great that you brought in the frugality the front page article today, they talked about qualcomm supporting robotics for school children and raising money for local police and people there are according to "times," having a hard time of a city without

distincti distinction distinctions should they start imagining it >> the only real question that i would like to adhere that comes up here is simply this to paraphrase a famous president, our qualcomm shareholders are better off today than four years ago. the answer is no they are 11% poorer. shareholders are 500% richer we are very good at creating building sustainable businesses and employment and innovation on businesses we acquire. >> hock, one of the reasons i am a big fan of everything you have done but i am concerned here, when the rumors were first reported you are interested in buying qualcomm, your stock was

$273 your stocks have plummeted and your stocks got hit again. we are talking about a 50-point down in an attempt to buy qualcomm at what point do you feel your shareholders are getting hurt by this >> we believe -- i believe, we have a lot of support from broadcom shareholders for this reason we have a track record of creating and building sustainable business, we have the track record of the long-term creating this kind of a lot of values for both broadcom and qualcomm shareholders >> you aremeeting with them on wednesday with iss which is important in this kind of situation and shareholder services making republicing rec and funds so you go in there and say 82, best and final and they'll say 90 bucks will get it

done, hock, do you go higher >> this is best and final. we have a compelling offer and we would encourage -- we would urge the board to take a hard look of the value we are creating here for shareholders $60 is 60% premium before. $60 per share is cost in this volatile market. we give certainty. we believe our offer is compe compelling >> i am wondering when you walk into that meeting on wednesday, what conceivably will you offer in terms of negotiating to try to change this dynamic >> it remains of our best and final offer. we would urge if they don't do then on month sixth, --

>> well, you got the referendum, we pointed out many times. march 6th is the annual meeting. lets say you win a couple but not take the board do you hang around and does your offer hang around? lets say you win two seats, what do you do? >> that is binary proposal if we do not -- at least the majority of our slate do not get in on march 6th, then i ask we get a message that this deal is not going to happen. we'll walk >> you will walk >> we'll walk if we don't have a board that'll work the deal. >> will you still see your directors or not >> of course, they'll see, by one message is if it will not

work unless we get the majority of the board >> this week, i believe it is possible and it is pi, acquisition gets approved. we know of the chinese new year there is be there has been a lot of speculations right after that. if qualcomm pays 125, what does it do to your bid. >> we have made it very clear in our latest proposal. >> it goes down to nxpi will not solve qualcomm's problem it is the broken business model. if qualcomm raises the price of nxpi we make it very clear, it is a clear value from qualcomm shareholders to nxpi >> so another walk away?

>> we'll preserve all of our options. we are confident that qualcomm bought any shareholders. we'll consider it carefully. they have come out just as we have we agreed on a few things of $110 is a full price on nxpi >> i know you said nxpi won't help them. the reason why i like this deal of qualcomm too much is they're too much cell phone. at a time when apple is no longer going to be able to rate the super cycles that did not exist. why do i want my broadcom to double down on an area of technology that is weaker and getting weak even more weak when at least you got the autopart of nxpi why are you doubling down on cell phones? >> our business motto and simply, why did we go out and try to buy qualcomm?

they have very good technology that'll be sustainable we are looking at this great asset as a franchise and creating a lot of shareholder values for both qualcomm and qualcomm's shareholders. >> right now qualcomm says they can do 675 to 750, why don't we give qualcomm a chance >> the creditability on this numbers are extremely questionable they had a chance many years ago. think about four or five years ago, 4-g were just coming in, great opportunity. now, we are on the verge of 5-g, they'll fumble again it is not about creating value to shareholders which they have never shown the ability to do. >> when it comes to broadcom, there is a criticism out there

and it is a minority, it goes to the idea that the company is built on acquisitions, we have seen many of them throughout the year roll up for the lack of a better term if you don't do this deal, your stock will be more -- >> how do you respond to those critics who lured you in and only to have their stocks plummeted? >> what we do is we acquire business product lines that are in proven markets and lead in technology which we build up on sustainability that's what all of our franchises are >> regardless whether you are acquiring qualcomm or not, you are comfortable of your strategy and you don't need to do with

another large transaction. >> if we don't do it, we'll continue on our current strategy of continuing to acquire assets in the industry and build on those. >> the meeting's coming up on wednesday and what we heard, it does not seem to me that you are making new offers for them you said best and final is 82 and you have taken hell or high water off the word as well what are you walking into the meeting on wednesday given that they already rejected this offer, what do you say trying to change their viewpoint on your offer? >> we want to be able to engage with them. again, we want their boss to negotiate a merger agreement with us by march the 6th >> i know you do, they're saying you guys have an option on the company and they don't like the merger agreement and they don't believe there is enough

certainty in there >> over the last two months especially since we raised offer to $82 beginning of last week. my cfo and i have been on the road the entire time meeting virtually a lot of significant shareholders of qualcomm we follow it exceptionally and we have strong support and they are talking to their boss and we believe they want their boss to engage with us which is why we are saying we are asking their boss to put a price to negotiate an agreement with us by march the 6th. >> there are two large index funds that are 15% why do we think they won't say, we got to go to qualcomm, give them a chance. we don't want to go with broadcom what assurances do we have of index funds that they'll go with you? >> we have a compelling case on two fronts one is the biggest one is with

the kind of financial returns that qualcomm's boss has delivered over the last five or ten years, no index fund or anyone else, they would have to think hard about why could this be done better we are confident that may come into play. >> how many of the large shareholders that you talked to say, qualcomm and apple has a lot of contention, i want to work with you. >> no one has said that to us. it has to be worked out. it is not just one customer, tait is a broader perspective it is all customers. we have to deliver to all customers. >> what do you do of the license businesses

you close it down? >> you cannot do it on day one but we'll transition and we'll reset the business motto so it is not a contentious issue >> hold on, hock, we do have the opening bell there you stay right there the nasdopening bell >> all right, hock, i come back with you what would you do with the licensing business it seems to believe that you would close it down on day one >> no, it is not true. everything takes a transition to happen we'll reset the business motto overtime and make it sustainable.

over the last three years, we realize that qualcomm was hit with fines and more than what they made in profits over the last three that's not a sustainable model >> i want to say thank you, you came on tv and you gave your side of the story. it is a compelling story >> ceo of broadcom, thank you very much. >> thank you gentlemen, i appreciate it and enjoyed it >> all right, lets get to the markets here it is interesting seeing mr. tan speaking of the benefits of the model. tell me your thoughts here >> we have a couple of green lights of qualcomm we have substantial bounce this is the last time that you can get in i also believe that oil being up

is terrific because that was part of the components and vix, 27.76 is not bad tvix is getting smashed today. there is a lot going right but it is very early what we have seen is when we have europe's up and when europe is done, we are out on our own there are so many variables that i think this is not the market that you come up 250 on the dow. you do not do that you can say you missed it but to say to come in at these levels is dangerous >> that's because? >> friday's quick sand tvx being one of the instruments that was not created it was not meant to be an asset class. if the tvix spiked, we'll be down today >> all right >> i wish it were not so simple. >> when do we finally escape this and so to get back to -- or

do we not? daus t does the prospect of higher rates mean volatility to stay. >> we just had hock tan is here. whether you hate him or like him. they'll not be a big benefactor. >> this qualcomm stock is at 11th times this is the kind of stock that's being pulled down bythe market we have these consumer product stocks just getting hammered i think that these all have stories to tell but they're too expensive in the consumer products and too cheap in tech, they'll converge >> we have got a big battle between broadcom and qualcomm that's going to resolve itself on march 6th

>> interesting on what he said on nxp, they'll still take it to shareholders >> i also thought what's important is there is an end to this he gave you an end that's what i am looking for he told you when this could end. this has been a nightmare short term for shareholders. longer terms he believes in the estimates which would make the stock substantially higher, i have to admit. i think the worry about the length of time i felt that was skated over. >> really? >> yes >> well, i think qualcomm made it very, very strong case to regulators even if it is the wrong case, it is strong >> we did not get a chance because it does get complex of the antitrust and it gets down to china and the e.u

and he's willingness to go hell or high water but we spent enough time on that. >> one second, $8 billion, that's a huge amount >> it is >> only amounts about $5.40 a share of qualcomm and some shareholders will tell you at the end of an 18-month where your entire board is replaced and management team is no longer in place or at least the previous one, like him or not like him, the downside is complicated by $5.40 to this point is just an option, if they don't get their own shareholders to vote, they can walk away entirely without any penalties. >> there are some continued questions there. >> yeah. >> i don't know if you saw it. carl icon putting out a deal, fuji is taking at 75% and

dissolv dissolving it to xerox. they don't like it in fact, it is a remarkable achievement by fuji by not putting up any cash. what do we get >> -- >> we have martin franklin on later. >> yes >> they're trying to get in control of a company without paying up, just getting control. >> is this some new wave >> well, this is a different situation and i think there is also a question on xerox whether fuji always had a dead hand there where nobody else can come and buy it because of what they had in asia and the inability of

it this is not done yet, my sense is may be legal action is coming in here as well. today we get the letter from carl and mr. deason as well saying hey, we are not in favor. together they own 17%. >> they can do it. nid nvidia taking out 249. >> okay. it must take out 249 if there is any sort of ver occasiificationh semiconductor rally. it is gaining. >> it is currency. >> its got it all. >> hilarious in every single business >> david, in your world, is a significant role

that's information technology, meaningful deal or just an asteric? >> i think it is just an asteric. >> you are richer than you were on friday. >> quite as significant number being paid there i don't have much for you on that >> i like the combination. david, cisco reported this week expecting a really good quarter from chuck roberts that would be valentine's day. that would be the next benchmark whether tech comes back. >> micron announcing the stock is unchanged and that's disconcerning to me. the group that's acting the best is retail and domestic as and d walmart is acting fabulous

>> remember tax reform >> it used to be a significant portion of our brain wave? >> it was. >> to put it in perspective, we are talking about an s&p that's down .9% for the year. >> then why so much fear >> you tell me i do believe there is a number of people who will believe that 3% must hold in brave heart fashion. >> i am not one of those >> if we get 2.7, we have the mother of all rallies. but, i have got to tell you mma is important, for instance, i wake up this morning and i see once again comcast is back for fox and i say to myself, wow, this is going to be -- this is obviously sourced well or they would not be writing these articles. >> i can say you are befuddled

by the coverage that this is getting. >> on day one of the deal when disney and fox announced their transaction, i did report at the time that comcast had a higher overall economic value now, are there any number reasons of why fox chose to go with disney. they worried about regulatory risks and while comcast indicated of a willingness to do whatever it would need to be done to solve for antitrust. there seems to be more concerns on that front. there is a belief that comcast never really had a shot they would like to taken. brian roberts, he built the company in part of getting at&t to share a portion of its company that he canb buy >> he's done it once before but the level of difficulties of getting it done is extremely

high you could go out there and say we are willing to pay more, you cannot force the murdoch to sell a portion of their company so very unlikely, the road here for comcast is what i explained earlier on in my reporting on this which very aggressive and willing to hang around the hoop and see what happens and watch time warner, at&t and see what happens there. if there is an opportunity to do something they feel is anyone the best interest of the company that they can take advantage to do that, nothing more or nothing less that's where it stands >> i am confused >> i read the articles and it sounds like it is ongoing. right now brian roberts is talking to murdoch so the article just say -- can we use the word that's wrong

>> no, they're not wrong comcast is watching them closely and what's going to happen with the process and see if there is an opportunity for them there and we'll see. >> it is a difficult deal. the idea that comcast, you are going to get a bit this weekend. >> not a chance. >> i am glad you did that because i am getting tired of reports that jump stocks where stocks should not be jumped. it is beginning to annoy me. >> more ashamed than annoyed >> we got to get to bob pisani here is a man that's always in a good mood. >> just happens to be down here with you guys. the russell 2000 has been lagging. take a look at sectors semiconductor of the lead group.

10-yr yields are up, folks utilities are lagging as the yield moves to the upside. in terms of leadership group, i call it the gang of four they're all moving the dow the dow was notably out performing the rest of the market because the bigger priced stocks are moving more are we at a trade below or not tradeable is the question here the average issue is down a lot at 14% from its highs and the ifdi indices are way oversold a lot of people are positive still. they know the fundamentals have not changed and they kept on saying it is the technical corrections, fundamentals are the same here. where are we headed? the one thing that everybody agrees on, rising rates are

creating evaluatioing valuation adjustments. the bulls insist that growth fundamentals intact. they say it is not disappointing. the bears say rising rates are more volatility and that's the whole thing behind bob prince. you heard david talking about him this morning and more volatility coming up speaking of fundamentals, what changed? anything different political risk is moderate li liloer he ly lower here. we had a debt deal and the biggest report this week, watch the cpi and the ppi, that's what all the traders down here are going to be focused on valuation risk is lower. the market is considerably cheaper and for everyone who complains it is too expensive, i want it 10% lower, you got your wish two weeks ago, the s&p 500 was

trading at 18.5. 20 year-average is 16. it is pricey up there. on friday, we were at 16.6 that's the lowest since the election is it cheap? it is a heck a lot cheaper of two-points lower than a couple of weeks ago you decide whether it is worth buying >> a number of companies tend to under performed in beaten-down area including construction materials and drug and retails and they tend to bounce back in the next six months. he settled out on several different stocks and ups and caterpillar and you see all those stocks a lot of people are trying to look at bottoms and talk about whether these are tradeable balances the dow is at the highest of the day at 350 points. >> again, not a lot of volume.

>> that's a great report by bob. >> i like some of those industrials. i just think they have to settle down and the vix have to settle down >> lets get to rick santelli >> good morning david. they're all up a little bit in yields off their highest yields of the day except for the 30-yr bond it is down two bases point you look at the one we chart there, we continue to nudge over the passes of the 3% this time, just shy of 290. literally 289 in change. looking at bund, they're really firm i guess if there is a lesson to be learned here. there was a time after the '87 crash where everyone was well into the notion that the best tech for falling economic market is buying treasuries and

sovereigns, it is not so true these days for a variety of reasons and the toughness of these high yield ranges is evidence of that if you look at december 2013 on 10-yr, what i want you to see of the only single time outside of mid 20 and 11, earlier, that we closed at 3% the last day of 2013 the reason i find it important is so many eyes are focused there. we'll stop shorter and we'll go through it i expect that risk management is going to put some type of defense strategy in place should we get above there if -- >> etfs performs in the downside there is a difference of etfs and actual security.

jim and david, back to you >> thank you >> great announcement. >> rick santelli >> just great. >> i have to point out one stock that i have been following, problems with our engines. >> yep >> it constantly it is a long d and some of the tech that i really like, are not acting by when we come back, we have martin franklin, jim and i interviewed him before >> they're friendly. >> mr. franklin are teaming up to take control of the board, he'll join us coming up later on, "squawk on the street," don't go away. (siren wailing)

(barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour. evaluating patients remotely is where i think we have a potential to make a difference. (barry murrey) we would save a lot of lives if we could bring the doctor to the patient. verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. as we get faster wireless connections, it'll be possible to be able to operate on a patient in a way that was just not possible before. when i move my hand, the robot on the other side will mimic the movement, with almost no delay. who knew a scalpel could work thousands of miles away? ♪

all right. we have a rally going on in the early going here >> yeah, but facebook is down. >> we'llee, sbut for now up 1%. we're back right after this.

let's get started. show of hands. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online.

even if no one in your home smokes, secondhand smoke can be closer than you think. secondhand smoke from a neighbor's apartment can enter your home through air vents, through light fixtures and even through cracks in the walls and the floors.

secondhand smoke is toxic. especially to children. protect your family. visit tobaccofreeca.com. all right, let's get to it time for stop trading with jim. >> strongest segment within retail, apparel. not just because it is cold. watch these stocks because people are looking for a place

to go, david and they're going to retail. i don't think it's a mistake i just want to point out that even like a jpmorgan was up two bucks and now it is only up 89 cents. let's remember the clock, it's a long day >> when you say retail, it can be a lot of different things retailers are companies like vf that make the stock sold by the stores. >> vf means the inventories are lean at the macy's in the world. costco had a good number last week walmart continues to do well i just really, really think that that's the group that people say, wait a second, this is a domestic company it's a big beneficiary if the dollar goes up, big deal. if the rates go up, it doesn't really impact employment, which is what they are correlated with so watch that group. it's a good one. >> meanwhile, rates are going down and tech stocks are doing okay >> the shopping center, david,

don't look at it, please it will upset you. >> it will >> it's like black mirror season six. i'm watching kimco. >> that black mirror is deeply disturbing. >> i have had nightmares >> we have been watching a few of those >> but it's fantastic. wow. what do you have on "mad money"? >> curling >> oh, yeah, right, curling. you doing the curling out there? >> no, i'm going to be hurling while they are doing curling because my show is off i miss my show >> there's a cult following for curling, you know that >> there's a cult following for "mad money." you know what, david i'm so -- i'm so sad about not being with you do you mind if i stay with you for some of the 10:00? >> i would like nothing more. >> i need more juice, that's what i need. >> god forbid he should work his full 20 hours a day. when we come back, martin

franklin is with us. they are pushing for the ouster of new rules, including a ceo. why? "squawk on the street" will be right back today, the new new york is ready for take-off. we're invested in creating the world's first state-of-the-art drone testing facility in central new york and the mohawk valley,

which marks the start of our nation's first 50-mile unmanned flight corridor. and allows us to attract the world's top drone talent. all across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. it's abor it isn't. ence in wi30,000 precision parts. it's inspected by mercedes-benz factory-trained technicians. or it isn't. it's backed by an unlimited mileage warranty, or it isn't. for those who never settle, it's either mercedes-benz certified pre-owned, or it isn't. the mercedes-benz certified pre-owned sales event. now through february 28th. only at your authorized mercedes-benz dealer. i'm not really a, i thought wall street guy.ns. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that.

jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade where can investors seek pin an uncertain world? pgim sees alpha in real assets. like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over one hundred fifty billion dollars in real assets. partner with pgim. the global investment management businesses of prudential.

♪ good monday morning, everybody. welcome to "squawk on the street." that is jim cramer sticking with us through the 10:00 carl quintanilla is going to join us from the winter olympics in a few moments a half hour into trading, oil, you can see it all there the dow is a major performer and the road map starts with the markets after last week's whipsaw action saw the dow go both up and down 500 points in one section. is this a welcomed correction or something bigger then, the historical perspective. pulitzer prize winner jim stewart who won that award for his coverage of the 1987 crash is joining us onset for more on

what to expect and finally, we have an activist from newell he's part of the battle to get the board changed. he was just on it. he's going to join us in an exclusive interview shortly. we did begin with the markets. the dow and s&p coming off the worst market in over two years, it is bouncing back a bit this morning. mike, what is your take on the early action >> on the early action, it's constructive but not persuasive in terms of -- >> that's good, man. >> in terms of how it is playing out. very much large income based you have to be somewhat encouraged by friday afternoon, if only because it showed you that people didn't take the excuses to say, well, i'm going to be a frayed going into the weekend. plausible last week's lows were something like the lows for now, but i think everyone is saying the same thing a sharp correction like this has really -- it's something that was overdue, but you don't

necessarily know how it plays out from here. one interesting thing is, it was the fastest 10% drop from an all-time high in 80 years. is that good or bad? that's probably good, actually, because if you look at it, it didn't have this bear market setup where people were lightning up on stocks, sending you a scary economic signal. so i guess all that take away is okay, but it's not over necessarily. >> i don't know if you got a chance to read kent fisher in "usa today," but he said this is a whitewater moment, you have to stay in the middle it verifies exactly what you said, which is, this is not the end of the world, it is just a short sharp one. what do you think about the fact that apple is leading this >> it is interesting because it was weak early. >> it was the first one to let us down. >> yes so that's not a bad sign, i would say. looking for little clues like that, we'll be inspecting the action for a long time now and seeing if the fever breaks further in the vix everyone is focused on >> but even though it's the

largest market cap company, it is not indicative -- >> it goes on its own streaks. it is not like the entire market follows it every step of the way. so it is not the perfect bell weather for the here and now on what is happening, but it is definitely a sign in the interest in the biggest signs that just got -- you would have to say, also, a secondary point quick, i think it is probably good that we are now passed all the talk of the streaks, the longest streak without a 3% down the longest streak without 10%, whatever it was, that was the market captivated with itself. now it's a conversation about what is the right evaluation to put on good fundamentals. >> i have to deploy your covera coverage an incident like that about how the dialogue and narrative is changing to stocks being inexpensive, some stocks not, is really kind of the way the stock market should be. >> yeah. >> you mentioned earlier in the last hour, jim, invidia, the key

to this market, reported earnings last week and did benefit from that. it was one of the down days or the whipsaw days, but why does it continue to be? and should i be concerned it is down >> well, it is early i think that invidia had the biggest run. it was trading, it kept going higher in the after hours of trade which was strange because nothing was trading. the reason i like it is because, i would love to hear from you on this, but you know that this group was a leader group nvidia was one of the leaders. it did report a great quarter. it did record great sequential numbers quarter to quarter but it did not hit a high. significance >> i kind of defer to the market when it takes a stock like this and says, it's worth so much more than people thought a year ago. in other words, it's not so much just saying, oh, this is another one to play. it is saying, there's something going on here. to me, it's like a netflix on the way up where it's like, if

the market decided this was the pl way to play a certain thing and it is working. i wouldn't put a lot of significance on the day-to-day trading dynamics of how it is going right now. >> i mentioned it and think nvidia is going to be up because it was a great quarter, but there was a cohort that hung in there. the work day, the sales force, these are high stocks. that's kind of interesting because usually they react poorly to the way interest rates go higher. but that particular group held it in. >> i think it will be hard for the market to say, oh, 20% to 30% bottom growth, i don't want any of that. it is hard in the moment for that to happen, even on paper, they are supposed to be worth less. >> i think that's significant. you don't want to overdue it because the emphasis on tech says forget about health care, which we can't the drug stocks have been horrendous, as if the fda is not going to approve, even though we are moving to fast track, that group is so ugly

i looked at a merck over the weekend and thought, are you kidding me how did merck get there? if we see the kimberly clark that is let us down go up, maybe there's hope in that group >> guys, i want to get to broadcom, a story we have been following for some time, the largest possible takeover of some time. broadcom announced it raised $100 million in financing for that deal. they are offering $82 a share, $60 in cash remainder broadcom stocks this morning hot ten joined us onset, a guest of jim and myself, the ceo of broadcom. they are going to be meeting with qualcomm on wednesday both companies go in front of shareholder services, iss, a proxy firm to play a crucial role in these kind of situations when a company is trying to take over the entire board of directors, or i should say trying to place directors on

that board to replace the existing directors jim, thoughts on this performance this morning things he said to us in terms of trying to answer some of those key questions that come to mind for some of the shareholders >> as someone who follows stocks closely and stocks performance, he did raise a point which is, why not go with me and as someone who is head coach oriented, say i'm belichick, why don't you go with belichick. why would you go with the cleveland rams when you have a chance to go with me and obviously, qualcomm is never making the playoffs. and i can make the playoffs. and there is something to that head coach mentality that i like. >> and that was a key point he raised a number of times but there are many others, of course, that shareholders still continue to have qualms with, certainly antitrust with back and forth, not just here in the united states, but in the eu and more importantly in china. a lot of questions

mr. tan, in my questions to him about what you're not willing, given you have a lot of certainty that you can get antitrust approval to then go with a hell or high water provision didn't really answer the question as well, you have march 6th. it's the referendum on their deal if they get nothing out of wednesday's meeting, which you have to go in expecting is more likely than not, it is going to shareholders on the 6th. i did ask mr. tam, what happens if you get a couple elected but not a majority of the board? >> at least a majority of us do not get in after march 6th, then i guess we got a message that this deal, this deal is not going to happen. we will walk >> you will walk will you see your directors still or not >> of course they will see my one message is, we won't walk unless we get majority of the

board. >> so the directors would stay, but they're gone >> someone that just broke up, thank you, you got the question answered that everybody who owns the stock wants to know. what would make them walk? and he told you right there, right then, which is news. now, david, i also want to ask you, is it really possible to have a canvas of large shareholders knowing what they're going to do when 15% of the stock is held by index funds, which haven't even gotten advised yet? how do you have that certainty >> he did say certainty is the sense that qualcomm shareholders really support him you would get a big push-back from qualcomm on that assessment, as you might say that is certainly a proxy fight like this and it is difficult to ascertain exactly how it's going to go. we'll see what happens wednesday, jim but the unwillingness on his part, he stuck with no

willingness to go higher and the break fee as opposed to further offering on antitrust, but they have an opportunity to talk. >> let's go back to earnings for a second we know, michael, that qualcomm is saying, listen, we can outearn this and do 7 mid-point. if you own qualcomm and like the management, they have paid the fines, whatever, 7 bucks is a burden to hand, isn't it >> it's a burden to hand and does it just come down to the number then? >> i don't know. >> i'm trying to figure out, what do we take from the fact that stocks traded off since $9.50. i don't know. >> a lot of people have doubts about that number. that's the key point >> but the only reason i mention that is because i feel that a lot of people, i'm looking at qualcomm and events that will be held down by qualcomm. very exciting. all right.

i guess we're going to head out to pyeongchang, south korea. carl is getting us up-to-date on the winter olympics. hey, carl. >> reporter: hey, mike day three of competition and the u.s. is kind of kicking butt in some key disciplines, mainly the luge, snowboarding and now figure skating i don't know if you have heard of mirai mnagasu, the first wion to land a triple axel at the olympics the weather has been a factor, they postponed alpine skiing for a second consecutive day it's one of the colder olympics in recent history. and the wind made it difficult for snowboarders, but not for red gerard 17 years old from colorado wins the first u.s. gold here in the snowboard slopestyle the first athlete born in the 2000s to win winter olympic gold we caught up with him not too long ago and asked him, now that

he's got gold, what is a dream sponsor? >> i would love to partner with chipotle i love eating there more than ever and i would be so honored to represent them >> reporter: all right so to the medal board we go, looking pretty good. the u.s. here is tied, actually, there's been some movement here. norway now with eight, germany out of the couple, so the united states is in fourth place. coming up, we're going to talk to the other snowboarder who won gold here, jaime anderson, who by the way, guys, is sponsored by visa, ralph lauren and proctor & gamble but she really wants to have a conversation with eloan musk. guys >> chipotle hitting a 52-week low. they could change this watching the olympics like everyone else in america this weekend, has something changed here i can't believe the events i thought at the end are happening right now. it's such a great thing.

like the big stuff is happening when it starts didn't something change with the olympics >> reporter: you know, that's a good question. i mean, summer, usually you get swimming the first week and then track the second week. i don't know how the ioc schedules that or how much input the broadcasters have in putting and stacking those events. but yeah, i mean, it's definitely started off with a bang >> it sure has i love it. thank you, carl. >> carl, thank you very much see you again soon when we return, pulitzer prize columnist jim stewart is joining us onset with a historical perspective on the recent volatility in the markets. more "squawk on the street" after this you know what's awesome? gig-speed internet.

you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes!

xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. it was the worst week for stocks in 2018, but we are off the highs of the morning they are all positive, at least for now. joining us with his perspective, new york columnist jim stewart there was an article about the 1987 market crash. you have been doing this a long time. >> that's true >> so have i so has he. actually, so have you. i remember interviewing you 28 years ago or something like that >> 1993. >> i'm 53 years now, i'm showing. >> are you really? anyway, it's to you. you came on not that long ago more nervous than usual. did you think it was going to

happen this quick? >> i was definitely cautious i said to rebalance. i did right after that show and made sure my counts were at 70/30. i was nervous. i didn't think it would happen this fast, quite this much turmoil and excitement, but i'm relieved we knew this was going to happen sometime it's happened, it's out of the way, we'll see where it's going from here. but at least we don't have to just keep nervously awaiting day after day for it to do nothing but go up. >> jim, let me ask you about the '87 article was brilliant. but it turned out the portfolio insurers played a role terrible tuesday was worse than monday, which was terrific when everything was falling apart then we saw the economy was unchanged and saw a wave of takeovers. then we realized it was the market itself, the mechanisms broke down with this vix pressure, with the 3% tenure, are we seeing market forces once again breaking, cracking the way stocks work as

opposed to the economy >> i think it is very possible in fact, i have had this kind of erie deja vu feeling about this in 1987. in '87 you got the sudden break. remember, not long after it re-tested the lows just like we saw again last week, but the economy was fundamentally sound. there were mechanisms, the program played a big role, how much of that we have certainly the whole etm thing where people thought, i'm hedged against volatility wrong. and i think that did play some role in all of this. we'll see what emerges as the dust settles but yes, i think there are many similarities here. >> on the other hand, the common takeaway, you look back and say, we have sir cut breircuit break now. the tail can wag for the dog did the reminder last week show you that the exacerbating factors of the volatility trades

mean financial innovations will stay one step ahead of the safeguards >> well, maybe i don't think -- it wasn't so bad last week. i mean, the volatility was not nearly as severe on a percentage basis as it was back in 1987 i think the market mechanisms all worked pretty well and i think another thing to keep in mind here that people have not focused on so much, sometimes the markets go down, not because of fundamental reasons but because they were just too high. this market was stretched by every valuation measure i know of and now it's getting into a much sort of saner level. and sometimes markets do overreach and they've got to come back. >> also worth noting in '87 the stock market ignored rates going up for the longest time. now we're hyper sensitive to every move, right? >> yes we are, in part, because the deficit numbers that keep coming in seem to suddenly be a focus, you know, years ago the republicans were no, no, no, now everybody seems to be yes, yes,

yes. and the numbers since the gdp are getting scary. >> we're getting fiscal stimulus now in 2018 when we needed it it was 2008 and 2009. it's like incredible that washington and its wisdom would decide to put gasoline on the fire right now so yes, a lot of people are nervous. we have fiscal stimulus, we have monetary stimulus, we still have really little interest rates at a time when we have almost full employment that is a classic recipe for higher inflation, higher interest rates that's what people are nervous about. and investors have to start looking longer term to this environment to figure out, where is the market going to settle in this environment >> i do feel that they have to keep prices down, but i see wages going up, raw costs going up, transportation going up. let me ask you about leadership. sometimes when you have the big moves, you have the change in leadership the leadership at caterpillar and boeing, but there's one stock the industrials have been way down in. and i want your opinion, the

general electric one >> ge. i met the new head of ge, i don't know about you, but he's such a nice guy. >> very nice. >> he seemed really honest and straight-forward courageous and willing to do the right things i don't really understand that turbine business of theirs i don't know why that fell on such hard times, but i don't understand long-term why that should be a problem. the energy sector, the electricity sector is a huge change away from the old coal -- isn't that an opportunity for ge >> i would think so, too this is jpmorgan, deutsche bank, the firms have been writing negative things about ge don't you think these are normally controlled by a bank? this is rather extraordinary. >> i always get nervous when the herd is always moving in the say direction. >> that sounds like bottom. >> i always say, i don't care what the consensus, is, i want to know what the smart analyst

is saying. that's the one that has the courage to go against the herd i'm not an expert on ge, but it has all the signs of a c contrarian to me the fangs didn't go down as much as the big industrial companies, but i thought they would be the leaders, the pilot fish down on this on that i was wrong. >> today is their day. facebook, they just -- you read that article about lever, come on we all know every single consumer company is going on the web. they keep trying to do this to bring the rates down they can't reach younger people by going to magazines. you and i started amagazine together i know, am i right this weekend, i read "the times" on apple to sorry >> at least you read it. >> does that make me novel "the new york times" stock, if

it's tailing, why does that -- it doesn't seem failing to me. what is your deal? >> i sit there every day i hope it's not failing. >> do you think we'll get criticized -- >> these guys haven't been on tv together >> james and i were friends for more than 40 years. >> i know. >> jim, thank you. >> stewart from the new york times as we just mentioned the stock has been doing very well >> i see martin franklin. >> martin franklin is here coming up, starboard values is teaming up with other execs in an effort to oust the board and ceo. martin franklin, the jarden founder and former chairman is joining us onset next to tell us what is going on tomorrow, it's a day filled with promise and new beginnings, challenges and opportunities.

at ameriprise financial, we can't predict what tomorrow will bring. but our comprehensive approach to financial planning can help make sure you're prepared for what's expected and even what's not. and that kind of financial confidence can help you sleep better at night. with the right financial advisor, life can be brilliant.

two weeks after resigning from the board, the proxy fight to overthrow newell began. martin franklin is joining us here in post nine. i remember when you and mr. polk were on the floor with me and

jim, i think. >> we were congratulatory. >> february 15, 2015 >> that's when you announced it when you were here right. >> it seems like a long time ago now. >> it does i don't understand what is going on here, frankly why would you be on a board, i would assume in that position, you're in a position to actually, it would seem to bring about change or make your point. and then you step off and then throw the same board out explain this to me. >> okay, so you have to go back a little bit first of all, i have confidentiality agreements in the company, so i am only going to talk about what is appropriate to talk about. needless to say, we have not been happy for quite some time we came on the board very excited, believed in the combination, frankly still do believe in the combination, great brands, old markets leading brands, and had high hopes for the business and execution. what's failed is execution and obviously expectations

management, that goes and speaks for igts itsetself. but it's been about as bad as i can imagine. >> is that fair? the channel is so tough. the channel for sporting goods, one of the worst, is that a fair statement? >> well, i can tell you we can blame all sorts of macros. but jimmy and i build jarden for 50 years in all kinds of difficult channels and the truth is, the economy has continued, if anything, since 2015 gotten stronger so i would argue that the challenge is what the business faces and they are not macros. and the comps out there have not been suffering the same way as the business leaving that aside, what has been frustrating for us is, we have really wanted to affect and advise from the inside quietly, you know, as supportive directors. >> why

why would that have been the case why were you not able to do it within the confines of the board? >> you know, i've spent a lot of my career wondering about boards and some boards are good boards, some boards are less than good boards some boards care, some don't i tend to find that directors on a lot of shares seem to care more i'm still the largest individual shareholder in the company but i've been trying, ian has been trying for quite some time now, and advertise literally falling on deaf ears that it is difficult to find time to have meetings. >> what is the "it" here what are you trying to say >> if i invest $11 billion in market cap, which is more than than when we did the original transaction, i would be having a lot of meetings. it is impossible to get a meeting. it is frustrating. >> when you asked the board to take complete control of the company, it is not you saying i

want to go on or a handful of directors, this is a complete takeout of the board why should they do that? >> i would say a couple things first of all, it's not a takeover you know, at 45% of the shareholders of this company, of jarden, became new shareholders as a part of the cooperation we feel dedication to our employees and shareholders as well it's a question of direction i think the business model that's been executed has failed. that model needs to be revised it needs to be blunt to revise it i think that starboard who had far more experience than me at activist actions, i've known jeff smith, we've talked about things in the past we haven't done any business together, but he reached out to me as did a number of activist funds and individuals about this

situation. and i chose to have aligned ourself with star board for a number of reasons. one is, they have a higher success rate on dealing with removing entire boards of directors. and second, they're operationally focused. and the issues in the company won't get solved with m&a. i hate to be -- the idea that you can run a $16 billion business poorly, but when it is $11 billion and all of a sudden it is going to be better is silly. >> you have the business model and the expectations management, what would you change about how the business is executed >> well, i think we made 15 times shareholders money i think it is a little early to

go through specifics of what we are going to do and what we would do but needless to say, the shareholders are going to say something. you had the ceo of broad.c broah paraphrased reagan i don't think it will be difficult for shareholders to make a decision but we'll see. >> it's kind of a takeover without a ppremium why not suggest to mike, you have to sell the company find a buyer you have great assets or dismantle it sporting goods, rubbermaid, why not try to give shareholders a premium rather than take it over. >> it's a great sound bite and sounds lovely. >> martin, i have known you too long that was a substantive question. >> it's not a takeover and the fact is, i don't have a corporation to take it over.

i'm spending our own money i wish we would have wealthy the reality is, we're trying to do this in alignment with all shareholders if at the the end of the money they want to make money for goldman sachs and sell off businesses, they are the only people to benefit right now. >> a quick rewind back to the time in 2015 when you joined jim and i, take a listen about what you said about delivering on synergies and then i want your response >> the reality is, magic number, $500 million in synergies. that's a big number and could be bigger the reality is it's there, it's going to be a big value driver for us on a confined basis and we can create more value quicker. >> what happened >> yeah, exactly, right on the button $500 million in ginnsynergies ao increase in prices when you get into the nitty gritty, no point to have

synergies if they don't flow through to the bottom line when we have been involved in our own that's actions, you saw them in the profits, you saw them in the stock prices and in the end results. >> we have to go >> i have to ask this. are your brands doing better >> that's a very good question that's correct i mean, the writing business that had nothing to do with jarden has been the biggest disappointment in the whole equation that's from the original model frankly, the jarden business, if you like being touched by the new plan, the better they have done so, you know, that's the reality of it. >> and finally, your spat, are you still going to run j2 act we is igs >> very simply we deployed $6.5 million of equity capital during the time of building jarden that is a different entity

we are looking separate opportunities. >> i have a feeling we'll have another conversation along the way, but appreciate you coming on today. >> thank you for having me. >> martin flaranklin, former member of jarden good morning, everyone here's what is happening at this hour president trump is proposing a $4 trillion budget for next year, but that projects a trillion-dollar or so federal deficit. in addition, that is before, including last week's $300 billion budget deal is added in this year and next but that increase does help the military and domestic programs. defense secretary james mattis arriving in rome greeted by italian officials en route he said it was too early to know if a diplomatic detente will lead to results. >> there is no wedge that can be driven between us by north korea. using the olympics in a way to

reduce tension, if that is going to have any traction once the olympics are over, we can't say right now. almost 500 flights were canceled at chicago's airports as they continue to clean up following a series of heavy snowfalls in the area. at midway airport, southwest airlines canceled all the remaining flights on sunday after running low on de-icing fluid for the planes and you're up-to-date. that's the news update at this hour david, back downtown to you. >> sue, thank you. i also want to thank jim for sticking around with us this morning. >> that was so much fun. thank you, guys. >> you don't have to leave >> well, i'm a sound bite. >> get ready for curling. >> david, i love curling >> as do we all right here on the nbc family network mike well, more "squawk on the street" coming back after this alerts -- wouldn't you like one from the market

when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.

positive open for stocks after last week's bounce-back as the market restarts. we're going to talk about this with the founder and managing partner tom lee. and u.s. chief equity strategist jonathan gollup. the first question, jonathan, have we seen the greatest intensity of the selling can we build a base from here or is it sketchy? >> we have probably seen the bottom but if you invest in the market and are willing to hold for the next month or six weeks, the likelihood of not lower volatility and higher stock prices, this is a great -- it's a great place to buy it if you can. >> why why now? >> well, the question is, why did volatility, if it's been sitting at 10 or 12 for the last, i don't know, year, what about the underlying

fundamentals we have recessionary risk still contained. the synchronized recovery is still in good shape. this is one of the best earnings seasons we have seen the leading indicators like the pmis are going into more strength in the first half of the year, and none of the things have changed so if that's the case, you should be buying now. >> tom, i don't think a lot of people would dispute that, a lot of the points show basically things have not changed much but the real question is, did january get carried away or pricing this or extrapolating a price for too long where do we sit sorting that out? >> i think the playbook is changing that's what investors are beginning to understand. we are in an environment now where i think structurally interest rates arerising so the playbook from 1980 to now, which was always lower interest rates and growth, i think is shifting towards what really was prevalent in the '50s

through the '70s you want overweight stocks leveraged to higher interest rates. which is investing and resurgence in commodity trades so that's the feedback we're getting from clients, there's a recognition now that they can't ignore it, as john said, lowball, but if we're talking higher interest rates, it's a big shift in portfolio allocation as well. >> tom, i mean, are we getting a little carried away in terms of just penciling in this upward grind and interest rates indefinitely i just wonder exactly if we can just sort of say, well, they are going to be higher than lower over the next few decades. and somehow it's going to happen all at once. >> well, i think the pace that it's going to rise is unknown, right? core pc which is what the fed watches moves like molasses. it is pretty anchored. the chances of that breaking 2% this year, we did analysis less than 10% but the markets are going to focus on wage inflation.

and wage inflation hasn't led core pce or inflate the cpi general since the 1950s. so i think in general markets, comprehension of what wage inflation means is still pretty weak and i think that's why it's actually going to matter more than we realize. >> has there been a number of -- is it more weighted than we saw on wednesday >> it is inflation could be coming down a tiny bit, both on the core end of headline. and actually n the following months reading, the expectations are that the debt also comes down so unless we get a problematic surprise, i think that wednesday could actually be the event that calms the markets down and i'm going to take the opposite side of tom on something. we did work at credit suisse, up until the part where the ten-year hits 10.5, there's a sign that the market is healthy. same thing with the fed.

if the fed is at 125 basis points given the strength of the economy, it's almost a sign they are holding back if they let it go, it's a sign that they think they were in better shape. i think that's what we're going to see >> do you think the trigger may be a bit higher? >> one, just to be clear, we're -- higher interest rates is not bad for equities. so jonathan, i didn't actually say that, but in the '50s, the five big rallies from 1950 to 1975 in equities coincided with higher interest rates. so 1975 was a period where the market was correlated to higher markets. that's the shift that is happening, but you definitely have to shift away from growth if it's the case, because it's a value-style market >> i wonder if the argument is going to become who benefits most from the new kind of inflation, is it main street or wall street? that's maybe for another time. thank you very much. let's go to don chu at hq with the eft spotlight

>> the stock sell-off over the past couple weeks hit certain parts of the market more than others, but experts feel that there's a recovery in the works and it could be the hardest-hit areas leading the bounce-back to the upside cfr research sam stovall highlights a dozen areas within the index that highlights an opportunity. among them, stocks like eqt, also air freight logistics like ups, and semiconductor equipment as a recent underperformer as land research as one of the stocks they prefer each one of these companies is a top pick by analysts at cfra, but in this day and age, you don't necessarily need individual stocks because there's an etf for just about everything they may look to track industry-led etfs. they could look at the spider

fund that tracks it, that includes many of the energy biggest names, exxon mobil, chevron. and if it is transports you like, like ups and fedex, there's the 1 billion ticker iyt. both stocks among the fund's biggest holdings and the ticker smh is a billion-dollar fund to attract the broader chip business. for more on the sectors and stocks that cfre likes, we don't have the whole story the full story is is there along with some of the ways people can play it at cnbc.com. back over to you guys. >> we'll check it out, don thank you very much. when we return, we'll head back to carl in south korea to get more from the winter olympics stay with us >> reporter: it is not all mountains at the winter olympics, this is the beach city not too far away where the scene from a famous korean drama was filmed and has become part of a tourist destination. we all made it to the beach, but i still don't got the girl mom and dad got a new car...

it's not theirs. it's mine. mine. mine. and it always will be, forever and forever. the new rx 350l with three rows for seven passengers. experience amazing at your lexus dealer.

after a wild week for

stocks, what are some names you should buy on recent weakness? find o outn "trading nation" at cnn.com. more "squawk on the street" coming up. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker.

that's the power of and. let's get back to carl out in pyeongchang for more on the winter olympics. hale, carl >> reporter: hey, mike if you know anything about bitcoin or crypt currencies, you know the south koreans are big traders. so we went to a couple exchanges in seoul and found that trading here in south korea is a lot more sophisticated if you're looking for reasons why crypto prices have been so volatile, look no further than south korea. nearly a fifth of global crypto trading happens in this country, not just institutions but moms and pops flocking to bitcoin and coinone that make retail trading easier than ever with customer service desks where you can buy and sell, sit on a couch and watch prices on a

big board, and access atms to liquidate your positions for cash south koreans are also flocking to trading apps, the powerful trend in a country where smartphone ownership rates are some of th it's one reason demand and prices have a huge premium here as much as 40% some call it the kimshi premium and it gives global traders a chance to arbitrage. >> originally there was a large profit to make because of the differences in the prices. in comparison to usa, sometimes cryptocurrency is at a 40% premium. if you bought cryptocurrency, i know people that did this, now it's very difficult, they bought cryptocurrency in the usa, transferred it to korea and you made 40% on your money >> reporter: but with boom come uncertainties, regulation, rumors of possible trading bans, pressuring prices since the december high of nearly $20,000. south korean regulators are grappling with ways to forge a coherent, regulatory policy.

and for traders, it's been one headache after another he found his account inaccessible at times or frozen, forcing him to fly here and more tore it himself. >> some of our money was being held in the bank because they wanted to make sure when the regulations came down some of the money got frozen and the reason they did that is to ensure that companies weren't doing illegal things >> reporter: what's next the south korean government has begun taxing bitcoin profits and requiring more disclosure on account i.d. tis to keep underaged kids and potential money launders from trading. rules that kim, cio of one of south korea's largest crypto funds says are welcome >> it's a good idea. so i hope they understand what this is and how important it is. >> reporter: a balancing act between encouraging innovation and making sure today's crypto traders aren't left twisting in the wind

david and mike, they have in addition to all the trading areas where can you sit on the couch, magazines in korean, of course, all about bitcoin. you see the logo down here i can't read it. but there is a few passages in english that say, mining your bitcoin immediately. and we always talk about the fact that crypto surge is not a u.s.-led phenomenon and south korea is a really good example of that. guys >> yeah, carl, i wonder if there's a way to figure is the popularity over there is it purely speculative interest? is there some reason that they latched on to the kind of theoretical or technology basis of all this stuff? where does it fit into the culture and everything else there? >> i think -- it's obviously a mix. i would say two things one, the people we talked to have been in it for a pretty long time. i keep hearing i got in around 2013, 2014 and there are pretty conversant in talking about the blockchain, not just the currency that's are

going to the moon or back. they describe it sort of like a tree they're very good at explaining how they -- how the blockchain might one day change commerce. so i think it's a maybe a little more fundamental than just a trading run. time will tell as to whether that long run technology catches up >> absolutely. carl, fascinating look thank you very much. we'll get back to you soon let's now send it over to jon fortt with a look at what is coming up on "squawk alley." [ no audio ] places you really want to go. with the united mileageplus explorer card, you'll get a free checked bag. two united club passes. priority boarding. and earn fifty thousand bonus miles after you spend three thousand dollars on purchases in the first three months from account opening plus, zero-dollar intro annual fee for the first year,

then ninety-five dollars. learn more at theexplorercard.com we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

welcome back give you a look at where markets sit right now. indefrn indefr indices are still bouncing dow is holding on to .8% off the highs for the day is the bounce seems to have lost a little steam right out of the open the small caps for what it's worth down .4% it seems as if markets still trying to figure out if that buying rush late friday afternoon is going to hold i think it's worth looking at where we are relative to the decline. the top in terms of the dow, well over 26,000 you kind of recaptured less than a third of that, i guess, just

eyeballing >> yeah. as jim pointed out, health care sort of a mixed bag today. certainly among those sectors, i see j & j down 1%. it's been a weak spot. >> it's been very noisy in terms of what is working and what hasn't it seems like a lot of the areas that are big index stocks and people got comfortable have backed off from those. so we'll see how that plays out. th watill do it for "squawk on the street." "squawk alley" is coming up next 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. with its high-tech the cameras and radar, contemporary cockpit, 360 degree network of driver-assist technologies, and sporty performance, what's most impressive about the glc? all depends on your point of view. lease the glc300 for just $449 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

good morning it is 8:00 a.m. at broadcom headquarters in san jose, california 11:00 a.m. here on wall street and "squawk alley" is live ♪ ♪ good morning welcome to "squawk alley." with me at most nine, morgan brennan and david faber. carl kinqu