to grow your business with us in new york state, visit esd.ny.gov. good morning, and welcome to "squawk alley" with me at post nine, and our mike santoli and courtney reagan joining us carl quintanilla is at the olympics in pyeongchang, south korea. we'll go out there in a few minutes. we are awaiting the president set to address yesterday's school shooting in florida, and we will bring you that live when we get it. markets right now well off their session highs as stocks hope to extend their daily winning streak to five we have recovered about 60% or more of the losses let's bring in several guests to

join us here brian levit with oppenheimer funds and and evan klein top with charles schwab. is that the tradable bottom, the collection we were waiting for >> i suspect it was generally in line with what has happened over the last 30 years, the times when you've seen interest rates move up. typically, the move in rates is around 80 to 100 basis points. it usually happens around 80 to 100 days and the average correction's around 10%. usually what you see in the 12 months after that are positive returns on market, so i suspect it is the global economy looks good, inflation is, despite all the warnings, people's concerns, is not escalating significantly, so i do think that was a turning point for the market. >> yeah, doesn't seem like there was a lot of concern about the numbers that we saw out of the cpi yesterday. jeff, how long can we watch equities move higher as rates also tick higher at what point does that begin to break apart?

>> you know, i don't think there's a particular point at which it breaks apart. historically, it's been 5% we're so far away from that. i think it's the degree to which it moves, how rapidly it moves up we had a sharp move january into early february, 50 basis points or so, not just in the u.s., but around the world if we saw that type of move, another 50 basis points in a month, certainly, stocks could react to that. and we could see sharp moves higher in rates here over the course of the next 12 months and so, while this current correction might be over, it won't be the last one this year. >> brian, even if, let's say the lows are in, if we test them, we don't test them, whatever the case may be, did this whole episode start us on a new kind of conversation in the markets about, you know, how hot an economy is too hot, how much of the growth is going to kind of be for the benefit of shareholders and companies, versus workers and all the rest of it, and how does that play out in the markets >> sure, and i think this economy is going to be stronger, probably, than people had suspected.

so we went through this environment where there was very little economic volatility and there was very little uncertainty with regards to policy so markets, but there was not a lot of volatility in markets this next stage is going to be perhaps some surprises on the up side in economic data, which could bring forth some additional monetary policy volatility, which will bring some volatility back to the markets. but remember, this is the environment that we've been hoping for since 2009-2010, with synchronized global growth, not just the u.s., not just europe the whole world is growing, and we're seeing some inflation expectations rising, which we were in deep inflationary concerns in 2015 into 2016 so to me, this is a positive sign for markets, and earnings should continue to be strong. >> what are your recommendations for where to put your money, if everything is growing and everything is moving up? which is moving up the most? if you're a bull, where should you be >> we are particularly excited about emerging markets the emerging markets had been trailing the united states we had a strong dollar

environment, which had impacted the emerging markets you've seen inflation now come down in the emerging markets currencies improving, policy accommodative, valuation still relatively cheap to the rest of the world and growth looking pretty good. so i would say em, not only on the equities side but also on the other side. >> and jeff, i wonder what this correction has told us, if anything, about how the rest of the world might be as linked or not as linked to what goes on here >> well the whole globe is growing right now. there's 185 economies in the world and 181 of them are growing, mike. that's unprecedented so, the global risk of overheating is truly global. but look, emerging markets make a lot of sense here. financials, in part because it's the biggest sector of emerging markets, but in total, just overall wherever you look, it's a great sector for broad economic growth and rising inflation and rising rates so that should be one of the bright spots over the course of the next year as we all worry a little bit more about not

whether good news is good for the markets -- it still is -- but exceptionally good news on the economy could lead us to some more pullback. >> are we getting hooked on the somewhat weak dollar, jeff, that's kind of holding all those things together or no? >> maybe i worry a little bit about the dollar in theory, higher inflation should be bad for the dollar and higher real rates good, so the dollar might be able to sniff out whether what we're seeing is good growth or potentially inflationary growth. but look what the dollar's doing now. it's down. that would almost suggest there's some inflation coming and that we shouldn't count on this rebound in the stock market so it's giving us a little bit of a confusing story lately, so i'm a little unclear what the real correlation with the dollar's going to be over the remainder of the year. >> brian, i know you see a lot of opportunities, but let's talk about risks. i mean, is there any risks you think might surprise the market like we saw with this inverse volatility >> it caused a short-term

concern in the markets, but it's certainly not large enough to be systemic everybody wants to think, what's the next lehman brothers moment. when i look around the world, i don't see that type of excess that has built up in the system. if people were to ask me what do i worry about, i worry that we may become too concerned about inflation before it sustains itself over 2% for a long period of time and could bring forward fed tightening to the point where the ten-year treasury rate says now you've tightened too far and start to flatten or invert the yield curve and the dollar strengthens if that type of environment were to happen, then i would be more concerned about markets. but a look around the world right now, i don't see anything that i feel would be a systemic risk to bring down global markets. >> and jeff, brian alluded to the fact that we're no longer worried about deflation, it's inflation. it seemed as if the markets this time, after they bottomed a little bit here or started to rally, we are starting to talk

about four interest rate hikes again from the fed here, or at least a 25% chance of that could the market handle that >> i think it can handle it, mike you know, as we get closer to an inverted yield curve, then things get ugly, right but gosh, four rate hikes this year, maybe we'd get two or three more next year before we'd even find a flat or inverted yield curve, and actually, this is the sweet spot for the market when the yield curve is flatter than usual but not yet inverted. it's usually a great time for stocks international stocks tend to produce 21% annualized returns when we're in this environment, u.s. stocks a little bit lower, maybe half that, but still solid numbers. so i wouldn't worry too much about a stock market in the face of a flattening yield curve but not yet inverted. >> thank you for joining us, jeff kleintop and brian levitt let's get to carl at the winter olympics in pyeongchang, south korea. good morning, carl. >> reporter: hey, mike what a day it's been for the americans once again mikaela shiffrin in this case winning gold in the women's

giant slalom 22 years old from vail, colorado, of course, one of the stars of these games she finished fifth in this event in sochi but wins gold here after an amazing run and then an emotional period once she got to the bottom of the hill later on, they caught up with mikaela shiffrin and asked her how she's managing with all the pressure any kind of worry or doubt. >> i'm always having doubts. i mean, yeah, it's not easy to have -- you know, there's 24 hours in every day, and every hour i probably have, every minute i have a million feelings of doubt, but i also have a million feelings of confidence and inspiration. so it's just a battle between having the right mood at the right time and always fighting that feeling of doubt. and yeah, for sure, i thought maybe i can't do it. what if i can't? and then i thought, well, who cares? like, the biggest thing is that you have to try and then we'll see. >> she's got a busy week ahead this is what her schedule

potentially looks like the slalom is going to be friday here, thursday p.m. your time. the downhill on the 20th, which is tuesday supercombined thursday, team event friday so you're going to be seeing a lot of shifrin in the days ahead. as for women's hockey, tried to add some medals here they fell to canada 2-1 in the round robin. good chance we see them in the final, perhaps the gold medal match. they were down 2-0 after some mistakes in the second, looked like they might stage a comeback, but hilary knight barely missed what would have been a game-tying shot at the end, didn't quite happen down 2-1 canada's now beat the u.s. women in gold medal matches in each of the last two olympic games medal count. u.s. still a bit behind norway and some other countries like germany, canada, netherlands, and so forth although hanging in there on the gold with five, just below what norway has in six. busy day of competition, guys,

and a big day tomorrow, and of course, the weekend's going to be event-filled as well. back to you guys >> carl, what's to come in terms of events where the u.s. was maybe expected to pick up a few more medals? >> reporter: yeah, we're running a bit behind if you look at the games by day, so this is day six, at this stage of sochi, i think we had about 14 medals. so we're not quite on pace with prior olympic games, but some of that might be affected by the fact that weather delayed some events we're especially good at. hard to say. you really can't draw any broad conclusions until the games come to an end, which, of course, we've still got a week to go. >> and i was just going to ask about the weather. you want it to be wintry for the winter olympics. that's not a problem in other olympics, but maybe not so, so wintry as it's been. is the forecast looking better going forward? >> reporter: it's pretty consistent there's a lot of wind. >> okay. >> reporter: earlier this week, and it's been chilly, but it's a big debate about do you want to have conditions perfect or do

you want this to be the winter olympics where it's about human athletes and trying to manage atmospheric conditions so, most athletes say as long as things are safe, let's play. >> all right carl, thanks very much we'll check back with you. appreciate it. still ahead, amazon just became the third most valuable public company in the world, this as some in washington are calling for a big tech breakup two silicon valley insiders join us next to discuss that. plus, bitcoin bashing warren buffett's right-hand man ripping on the cryptocurrency. s unngtell you why he'sodi the alarms when "squawk alley" returns. that binge watch over the weekend thing. more checking-in or checking out things. that triple-double thing doing it yourself or tagging a friend thing. more revolutions in the making thing. that play like a girl thing. that four-legged friends thing. at&t gives you more for your thing. more entertainment, internet, and unlimited plans.

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theairo space and defense sector is on pace for the most daily gains since 2016 boeing continuing to see gains ceo dennis mullenberg joined jim and me earlier this morning. we were asking him about a lot of things, including elon musk

and boeing's place in the growing space race here's what he told us >> elon and the spacex team, you know, they're adding energy to the space market, and we like the attention that that's generating i think it's good for the country. i prefer to put our focus on performing, operating, delivering for our customers, and we are building that full rocket to mars as i told you, it's about 36 stories tall it's being assembled -- >> 36 tories. >> we're going to test flight in 2019 and i firmly believe first person gets to mars is going to get there on a boeing rocket. >> we don't talk as often about boeing certainly as much as spacex. >> not at all. >> or even blue origin from jeff bezos when it comes to exploration, but they are obviously putting a lot towards it as well. >> it's amazing. the capitalist race to mars. i mean, you wouldn't have thought that was going to be a driver you wonder if it really will be a commercial opportunity it's kind of interesting how boeing with, you know, kind of works with this locked-up pipeline of commercial aircraft

and relies on that and yet does this speculative thing off to the side. >> it is interesting all of the athletes asked who was their favorite ceo, they said elon musk, the space race maybe they should have talked about mr. muilenberg as well. >> certainly a lot of movement in that stock and moving away from high cyclicality more towards a more reliable business and getting a higher multiple as well cisco another company we spoke to after they beat earnings and exceeded estimates on revenue as well cisco also announced it will repatriate most of its overseas cash that is $67 billion coming back due to new tax reform law. of course, it's already been deemed repatriated they did include about a $9 billion transition tax related to that as well. ceo chuck robbins joined us earlier to talk more about what was a very good quarter for that company.

>> if you look at just our product revenue, ten quarters ago, 6% of our product revenue was from recurring offers, and this past quarter it was at 13%, and that grew 34% as well. so we're very pleased with what we did, very happy with the execution that the team delivered, and we're optimistic about where we are right now >> and the market responding positively, though not quite as positive as it had in the early going. $63 billion, as we say, dividend increase, increased the buyback by $25 billion to $31 billion over i think the next 18 months as well. so, much of the benefit of tax return being returned to shareholders. >> pretty representative example of exactly how that's going to be used for these mature companies. like, i mean, cisco, what are you going to do with $60 billion in the core business that's growing at the rate of global gdp -- >> that doesn't require a great deal of cash as well. >> exactly so the market likes it, the stock was between $15 and $30

for 50 years and now wall street gets on board, thinks it can be revalued higher. >> big morning for "squawk on the street." >> we had a busy 9:00. >> really busy. >> pressure for us now to deliver -- >> the dow jones industrial average was right here. >> that's the way we like it. >> it's got to be right here it can't be anywhere else. when we come back, warren buffett quieting apple haters by upping his stake in the company even more. why he's betting bigger. and we'll go live to the president for a statement on the florida school shootings when it starts oh, and there's the closing bell.

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welcome back take a look at markets here. the dow just crossed back up into the green it's been foglitoggling around flat line after a strong opening. the s&p is right above the 2,700 mark, reclaiming more than half of the losses of the two-week downturn and a lot of people think we have to get above last week's highs, but right now we have peeked back in positive territory. the bond market has obviously been the other focus, not making new highs with the ten-year yield that's when it's news at this point. >> yes, right so >> when it's not making a new high. >> we started at 2.9, but we have backed off the yield from there. >> as if the inflation interest rate panic happened a little bit before the data, maybe >> right. >> and the data, even though it did show some inflation, does not necessarily have an impact, at least on that ten-year note. >> right. >> look at the nasdaq, up almost 5% week to date, best week since

october of 2014, recovering almost 75% of its point peak loss, so we made quite -- >> nasdaq has reasserted its leadership. >> exactly. >> people said you have to buy cyclical companies and everything else, but the big-growth companies, i think people have the muscle memory that you can go to them. >> here they are, back again. >> we've been awaiting president trump's comments on the horrific school shooting yesterday in florida. for more as we await the president, we go to eamon javers in washington. >> we're waiting for the president in the diplomatic room of the white house to make remarks on that tragic shooting that killed as many as 17 students and teachers in florida yesterday. we'll wait and see what his comments consist of, but this is a president who will be making his fourth set of remarks in response to a mass shooting event in the united states during the course of his short presidency yesterday he declined to say anything -- >> yep, eamon, we're about to listen to the president.

>> i speak to a nation in grief. yesterday a school filled with innocent children and caring teachers became the scene of terrible violence, hatred, and evil around 2:30 yesterday afternoon, police responded to reports of gunfire at marjory stoneman douglas high school in parkland, florida, a great and safe community. there, a shooter, who is now in custody, opened fire on defenseless students and teachers he murdered 17 people and badly wounded at least 14 others our entire nation with one heavy

heart is praying for the victims and their families to every parent, teacher, and child who is hurting so badly, we are here for you, whatever you need, whatever we can do to ease your pain we are all joined together as one american family, and your suffering is our burden also no child, no teacher, should ever be in danger in an american school no parent should ever have to fear for their sons and daughters when they kiss them good-bye in the morning. each person who was stolen from us yesterday had a full life ahead of them, a life filled with wondrous beauty and

unlimited potential and promise. each one had dreams to pursue, love to give, and talents to share with the world, and each one had a family to whom they meant everything in the world. today we mourn for all of those who lost their lives we comfort the grieving and the wounded, and we hurt for the entire community of parkland, florida, that is now in shock and pain and searching for answers. to law enforcement, first responders, and teachers who responded so bravely in the face of danger, we thank you for your courage. soon after the shooting, i spoke with governor scott to convey our deepest sympathies to the

people of florida and our determination to assist in any way that we can. i also spoke with florida attorney general pam bondi and broward county sheriff scott israel i'm making plans to visit parkland to meet with families and local officials and to continue coordinating the federal response in these moments of heartache and darkness, we hold on to god's word in scripture -- i have heard your prayer and seen your tears i will heal you. we trust in that promise, and we hold fast to our fellow americans in their time of sorrow i want to speak now directly to america's children, especially those who feel lost, alone, confused, or even scared i want you to know that you are

never alone and you never will be you have people who care about you, who love you, and who will do anything at all to protect you. if you need help, turn to a teacher, a family member, a local police officer or a faith leader answer hate with love, answer cruelty with kindness. we must also work together to create a culture in our country that embraces the dignity of life that creates deep and meaningful human connections and that turns classmates and colleagues into friends and neighbors. our administration is working closely with local authorities to investigate the shooting and learn everything we can. we are committed to working with state and local leaders to help

secure our schools and tackle the difficult issue of mental health later this month, i will be meeting with the nation's governors and attorneys general. we're making our schools and our children safer will be our top priority it is not enough to simply take actions that make us feel like we are making a difference we must actually make that difference in times of tragedy, the bonds that sustain us are those of family, faith, community and country. these bonds are stronger than the forces of hatred and evil, and these bonds grow even stronger in the hours of our greatest need. and so, always, but especially today, let us hold our loved

ones close, let us pray for healing and for peace, and let us come together as one nation to wipe away the tears and strive for a much better tomorrow thank you and god bless you all. thank you very much. >> mr. president, why does this keep happening to america? >> there you heard words from president trump following that mass shooting yesterday at a high school in parkland, florida. 17 dead, many others injured eamon javers, you were commenting before the president spoke on the heartbreaking frequency of these kinds of dresses that we've seen in a little more than a year that mr. trump has been in office. >> reporter: yeah, that's right, david. unfortunately, a speech like that has become part and parcel of the modern presidency the president there expressing his sympathy, his grief, expressing that he's reached out to local and state leaders in florida to help with the federal response to the shooting in parkland, florida, yesterday

and the president also framing this very much in terms of mental health as an area that needs to be solved he said it's not enough to take action that makes us feel like we're making a difference, but we have to actually make that difference ourselves so, the president here indicating that he might pursue further solutions here to this mass shooting problem that the united states has been grappling with for so many years this was not his first comment, however, on the shooting today earlier today on twitter, the president also expressed his thoughts he said that there were so many signs that the florida shooter was mentally disturbed, expelled from school for bad and erratic behavior the president said his neighbors and classmates knew he with a problem. must always report such incidents to authorities again and again. so, the president expressing his concern earlier in the day that the local community may not have reported this shooter's actions with significant alarm before

the tragedy took place and expressing today that he views this as a mental health problem to be solved in the united states and signaling his willingness to engage on that issue, david. >> yeah. well, we'll see. not much about guns there, of course eamon, thank you eamon javers outside the white house for us meantime, the rifle used in yesterday's school shooting is bringing up questions of corporate responsibility contessa brewer has that story. >> yeah, mike, the nra labels the ar-15 the most popular rifle in america and estimates gun owners possess more than 8 million of them. they're relatively affordable, customizable and simple to shoot. hunters and sport shooters use them, and so do attackers in mass shootings again and again, from the elementary massacre in sandyhook to mandalay bay in las vegas last october they are manufactured by lots of companies. some of the big ones, winchester, remington, colt, smith and wesson there are hundreds of other

smaller, lesser-known companies that manufacture these guns and accessories that go along with them and then, of course, there are the hobbyists and others who create one-of-a-kind, custom firearms, and they can even be manufactured on 3d printers. these would be unregistered and untraceable. so, gunmakers enjoy also special legal protection that makers of other consumer products do not, the protection of lawful commerce in arms act was passed in 2005, and it protects manufacturers and dealers from being held liable when crimes are committed with their firearms since the assault weapons ban was allowed to expire in 2004, sales of the ar-15s and other semiautomatics have soared, peaking after the 26 murders at the grade school in newtown, connecticut. i reached out to the national shooting sports foundation, which represents gunmakers and retailers. i wanted to ask about the industry's response to the florida school shooting, and a spokesman e-mailed me -- "our

hearts go out to the victims of this tragedy and their families. out of respect for the families, the community and the ongoing law enforcement investigation, we believe it would be inappropriate to comment or participate in media requests at this time. the organization published a report in 2016 that showed the economic impact from firearms and ammunition in the industry grew $19.1 billion in 2008 to almost $50 billion in 2015, and in that time, the report shows more than 100,000 new jobs related to gunmaking were added. guys ntsahank you very much, coes, for following this difficult story toda ♪

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. good morning, everyone i'm sue herera here's your "cnbc news update" this hour. james mattis attending a nato defense ministers meeting in brussels they agreed on a bigger train-and-advise mission in iraq after a call for the alliance to help stabilize the country after its war with isis. >> we believe it's in nato's best interests that we project stability at the government of iraq's request we will go to a consistent mission in iraq to build the capabilities that they believe they need to sustain this effort and protect their people from an

uprising of another type of terrorist organization israeli prime minister netanyahu says he plans to make the case against iran's involvement in syria when he participates in the munich security conference tomorrow he spoke at a dedication ceremony for a new concourse at bengurian airport. facebook ceo mark zuckerberg has started to accelerate his funding of the chan/zuckerberg initiative, the philanthropic investment group he set up with his wife in 2018 he sold $108 million of facebook stock this week to fund the foundation that's the "news update" this hour back downtown to "squawk alley." mike, back to you. >> all right, sue. thank you very much. let's get right back up to hq. seema mody's there with the european close. >> hi, mike. european stocks are off high of the session following wednesday's rally, while germany has been really leading the european rebound we've been seeing this week today's best performer is france, up 1%, but like most of its european counterparts, still

in negative territory for the year one stock helping the french equity index is airbus, today's biggest gainer, on track for its best day in about six years. free cash flow and underlying annual profit solidly beat analyst forecasts as deliveries hit a record high in 2017. today's news overshadowing a $1.6 billion charge airbus took on its a-400 military transport plane, which has been subject to delays, but you can see the stock is up more than 10%. meanwhile, nestle shares moving lower and hovering around correction territory for the year this is the world's biggest food company, reporting a drop in 2017 profit, citing what it calls a challenging environment in north america and brazil. organic growth was the weakest since nestle started tracking that indicator more than two decades ago, and the results come as activist investor dan loeb is putting more pressure on nestle for further changes

it also hinted it may not increase its stake in l'oreal, stock down 2%. david, sending it back to you. >> and i will take it. thank you, seema mody. should big tech be broken up the big four, facebook, google, amazon and apple, remain under pressure this week as lawmakers in d.c. and others call for the deconsolidation of some of silicon valley's major players, this as amazon surpasses microsoft for the first time in market capitalization. it now trails only apple and alphabet among publicly valued companies. our next guest has a piece titled "silicon valley's tax-killing, soul-sucking machine. scott galloway is joining us as well as early facebook investor roger mcnamee, who published and op ed in the "ft," how to drag big tech away from the dark side all right, go at it, guys, although you kind of seem to have a similar view to a certain

extent you really are very strongly opinionated on this point. why? >> i believe this capitalism is the worst system of its kind, except for all the rest, and the key to maintaining capitalism is fair wage-labor compact and competitive markets, and i think the markets are no longer competitive. i think they're failing. >> and what do you cite as evidence of a lack of competitiveness? >> press release with the name amazon in it, and within two hours of the opening bell, health care industry sheds $31 billion. amazon could take any stock on this board that's a consumer stock down 30% in 30 days with 30 press releases. >> isn't that just a reflection of the power of amazon to attack other markets and their margin in that market and their ability to deliver efficiency? why is that a bad thing? >> because if you deny -- if one company becomes so powerful, it can deny the mother's milk of business, which is capital, you end up where we are, and that is

new business formation has been halved in the last 40 years, and it's harder -- there's two-thirds of the stocks have gone away, and it's harder to build a middle class the middle class is failing because of the consolidation of power among a few companies. p&g, unilever, gm, the titans of yesterday, 200,000 employees, $100 billion in market cap, facebook, $590 billion in market cap with 24,000 employees. so, trust your feelings. which would have more hiring, a broader tax base, more competitors, more millionaires, maybe less billionaires, amazon, facebook, apple, google, or amazon fulfillment, facebook, instagram, whatsapp, apple, itunes, google, youtube. search your feelings you know this to be true come to the light. >> you're talking to me. where do you come down >> we need you. >> you need me, huh? well, identify got a lot of introspection to do. >> i agree with scott in terms of entrepreneurship and innovation i think that whenever you get

the level of economic power concentrated in one place like we have in those companies, historically, the country has made a choice to protect entrepreneurship and protect the middle class we did this with standard oil at beginning of the 20th century. we did it with banks after -- >> at&t as well. >> exactly and i would argue that i believe we got cell phones ten years earlier than we would have gotten, had at&t been left alone. and you know, there's no question that the microsoft antitrust case was fundamental to helping companies like google get started. these guys have run unchecked for a very long time and they are indisputably, with the exception of apple but if you look at google or alphabet, if you look at facebook, look at amazon, they are monopolists or ma nopsists they have levels we haven't seen since standard oil and the consequences are difficult i would restrict their ability to buy new things, their ability to transfer monopoly power from one division to the next

in the case of amazon, it's important to not allow them to vertically integrate they have all this data, and they can, you know, as scott was saying relative to stocks, they do this to individual products, you know they look at all the data, they go, oh, that product's hot i'm going to do an amazon basic and wipe that guy out. and they have lured everybody into their system very, very effectively because they have all the customers, but they also have all the control and this is a question for society to ask do we want to get to a world where there are three or four companies dominating everything, or do we like the idea that you have the opportunity for start-ups to happen and new people to create new and innovative things? >> you know one of the responses, scott, of course to what you're saying is that there are these businesses that are software-based, that have network effects that naturally will trend in this direction, right? if you took youtube out of alphabet, would google search not still be a virtual monopoly? >> so, there's a general notion that because of network effects, these guys become natural

monopolies fast, and the world is what it is. and i believe the world is what we make of it. and if we were to take aws away from the amazon retail platform, you would end up with an amazon platform not doing modern-day steal dumping. when the chinese did it with steel, it was illegal, but somehow when amazon does it in the retail sector, it's innovation so google, youtube, google cloud, three companies duking it out. to roger's point, we have collectively made a decision, and maybe it's the right decision, that mission of america used to be to create tens of millions of millionaires if you played by the rules, you saved money, you could become a millionaire. it appears with our policy around letting these guys go unchecked that we've decided our new goal as a society is to collective lly crown the first trillionair. and maybe that's the right way to go. maybe there is an ecosystem around this trickle down, but we would have a much more robust ecosystem with these guys split up we might end up back in the same

place as we did with at&t, but if we want to unleash innovation, break these guys up. this isn't about restraining competition, it's about oxygenating the marketplace again. >> this is a really important point, mike, because i'm okay with google being a monopolist in search. what i don't want them to do is to use that power to eliminate pricing engines in europe. i don't want them to use it to make their photo search and all these other things, e-mail i want all those things broken up they're powerful in each category i would like google to be broken up into eight or ten different monopolies i'd like amazon to be broken up into three or four monopsonies, and facebook, separate them from instagram. facebook right now has a real problem. today there's a news story out that's really frightening. they persuade us to do two-factor authentication and to give us the cell phones, and now they are spamming people, which they promised they would not do. and i look at these things, and the unchecked power produces really bad outcomes. >> guys, we're going to run out of time, but you both seem to

believe there is a level of innovation that is lacking, and i find that somewhat surprising, given, of course, how many companies, by the way, stay private. so to your point that there aren't as many public companies, but there are plenty of new companies all the time. >> look at what's happened to virtual reality since facebook bought oculus. the demos were way better three years ago than they are today. i think them buying it has really frozen the amount of investment in new platforms because everyone assumed they would win. and you know, i just look at these things and go, here we are three years later, there's still no viable platform and none in sight. >> finally, scott, the pace of change has only quickened over the last few years you could almost forgive regulators for being behind the curve. other than the president's antipathy towards jeff bezos and amazon, i have not heard from the antitrust regulators along this discussion. >> washington doesn't have the domain or will expertise to come after them it's going to come out of brussels or a red state. i would push back on you that there's more innovators. if you read the press and listen to this show, you would think

there are innovators everywhere starting companies new business formation has been cut in half the last 40 years. i sit in on a lot of venture capital pitches and the pitch is the same everywhere, we don't compete with amazon, facebook and google, but we'd be great acquisitions and there's fewer and fewer start-ups getting more of the capital. good ideas don't get funded. it's only $1 billion-plus shoot for the moon ideas this is a winner take all economy. it's never been easier to be a billionaire and it's never been harder to be a millionaire it is time to break these guys up. >> guys, i have a feeling we'll be revisiting this topic. >> i can't wait. >> and i promise to think long and hard about it. i already have, and you're raising, listen, you're raising key points and investors are paying attention, too. they're aware -- >> investors will be better off. >> as is mr. bezos, by the way. >> you'll have 20 great stocks instead of just 3. >> headquarters in d.c. is a prophylactic, you watch. >> scott galloway, roger mcnamee, thanks, guys. carl is at the winter olympics in pyeongchang, south korea.

carl >> reporter: hey, david. a sit-down with chef david chang of momofuku for a korean lunch and he will talk about his netflix show "ugly delicious," he'll talk about trends in real estate and about his korean heritage, and that's all before the food actually shows up on the table. ♪ >> this is a kinchi podran this is the dorsal fin and fins off the flat fish. >> reporter: sitting in the tanks right outside? >> yes, yes. this is sweet potato koreans love their sweet potato. this is seaweed. this is like the definition of ugly delicious could be foreboding. for a long time, again, i didn't feel that comfortable being korean and the older i've become, the more comfortable i am to being korean i think for a long time, i never wanted to be korean. >> you were running away from it, you think? >> absolutely. >> reporter: why

was it not cool? >> i never thought it was cool now i don't care it is who i am and understanding the history of where my parents came from ♪ >> we see what we can execute, what we can do, and that hasn't always been the case, but that's been our sort of north star to follow and choosing a city is, i wouldn't say -- before there was really no rhyme or reason. my first restaurant outside new york city was in australia, sydney and that just seemed like a fun thing to do. so, we can do what we wanted to do, and we always just put our own money back into the business and then it got to a point where i couldn't take on more loans and guarantee stuff, and i had to take on an investor, and we started doing that over the past four years. >> reporter: when you say growth is tough right now, because -- >> i think growth is tough because you have to -- it's not like -- >> reporter: i mean, you've got every economy basically booming. >> i don't mean it from an economic standpoint.

i genuinely mean it from how do you build -- >> reporter: scale. >> -- how do you build the right culture to scale it's hard to open up the same restaurant over and over again i don't know if that model works anymore. while you can, i voted opening up noodle bar. now, incan i voted to open up noodle bar. could i have made money money just opening up noodle bar i could have there were opportunities to cash out. but it wasn't right for me >> it's the whole, david's gone corporate. >> correct it's our job to prove you guys wrong. the whole idea that food is hotter than ever before, because people just realize, like with the younger generation, that's where, you know, marketing dollars, real estate dollars, everything is coinciding with how people eat it's a great time to be a chef but it also i think can be hard for like people that are like critics of the business or critics of chefs, because now it's just weird, it's a weird time to be a chef, because you

have opportunities that weren't presented before restaurants now are anchor tenants in buildings that's a joke. >> because it used to be what, department stores? >> yes so we opened up in 2004, i remember trying to find leases and people were like, no, we don't want a restaurant in our building, it will decrease the value because of problems with smells or whatever now everyone wants a restaurant. the problem is there are too many restaurants interesting times. so i think for us the right thing is to figure out how to say no, make sure it's right, is it something we can execute. >> i loved that last bit about restaurants being anchor tenants, because we always talk about millenials and how we're shifting into an economy that favors experiences over things this ties right into that. it's an amazing time to be a chef all the opportunities you get from franchising your concept to consumer products to, in the case of shake shack, going public and tapping the public

markets. i mean, i think as a chef right now, and you heard this from david, it's almost a matter of what you say "no" to these days if in fact you become successful >> exactly, you have to be big enough to make your money and your mark but not so big that you're not cool, and you loose that experience factor >> right >> as soon as experiences became photographable, i think that was always the way, it was going to be the tip of the -- >> you overlap -- the overlap between restaurants, the flood of restaurants, and social media, specifically insta, the two things help each other >> a lot of envy for you on twitter. i have to echo that, it looked like a good time thanks very much >> thanks, guys. as we head to a break, we're back up to the highs of the day, dow jones industrial average up

4%, nasdaq once again outperforming, almost back up to 7,200. more "squawk alley" after this

i'm scott wapner today on "halftime report," the great recovery has investors hoping the worst is over for the correction we'll tell you why another swoon for stocks could be in the cards. with under armour shares surging this week, one analyst who previously told investors to sell the stock is back with us today. is he ready to change that call? health care giant that

morgan stanley says could soar "halftime report" starts at noon eastern. rick santelli has the santelli exchange. hi, rick >> hi, mike. if you talk to veteran traders that have been doing it a long time, a long time defined as they were veterans before computer trading, what they will tell you is if you have lots of capital, you will never end up with a bad trade if you can hold it long enough which means it's simply all about timing timing has been the critical issue in my opinion for 2018 think about the timing of what central banks are doing. their balance sheets, their rates, their policy. view that against the context of true fiscal policy that actually is going to make the economy grow, think tax reform, less regulations. and think about how all of those variables are meeting in a landscape that we've any quite

seen before. configured in a way that never existed before it's very hard, timing for all of these issues is critical. so what we see as volatility is a big focus for activity and how portfolios are managed and hedged dynamically, and from a mechanized standpoint, what we find is it's hard to pick out when things get crazy exactly what the driving force is. so many believes that interest rates, the fact that they were getting close to 3%, that was it but is that really it? you look at the dollar, that doesn't seem like it's it. let's take the weak dollar i think the weak dollar could be viewed in a much more simple context. we're importing lots of pricing pressures. because our dollar is weak, when things come in, we have to pay up we have a good economy that allows us to pay up. there is that dynamic. the other dynamic, of course, is balance sheet deconstruction i'll only show this graph for a

second because we've seen it so many times we've looked at it before. there's update as of yesterday guess what new all time forever highs on the cumulative balance sheet of all these central banks. approaching 16.6 trillion with a "t." why do i bring this up because theoretically the deconstruction of balance sheets has even started yet just because we buy less doesn't mean we're going to sell there may not be hardly any selling for a long time. this could be part of the reason the sea legs came back to the market the other thing we don't talk about because of these timing and bad smoke signals with the marketplace is that many times, markets, especially markets in long, long trends like the fixed income market, they priced in the thought that we're going to have more inflation when we had all the volatility in the markets, because that's the first place they thought to protect themselves since then we've had weak retail

sales, industrial capacity the simple way to look at interest rates is, the path has been steady, and 3%, not since 2013 calm down, folks courtney, back to you. >> thank you very much, rick santelli those chart skills are really unmatched, you'll have to teach me a couple of lessons, i don't know quite how you do that thank you very much, rick, appreciate it. market is up 3/10 of a percent. >> we're at a point where people have to say, okay, this can be for real or do we have to sag back below apple has been an interesting leader, up almost 10% week to date obviously it was actually sold ahead of when the market went down this news that warren buffett was not just buying but buying when the stock was at strong levels seems to be helping sentiment out there. >> these tech leaders, we mentioned earlier, the nasdaq up 4.7%, almost 5% week to date, look at this tech leading again and take a look at the xrt,

one-week chart rick mentioned weak retail sales, yes, they were weak for the overall number if you drill down into clothing, accessories, department stores, those are all up a number of big retailers are still to report, walmart and home depot next week watch those retailers, folks have been buying, may not be over it. appreciate you joining us today. "fast money halftime report" is up now all right, welcome to "the halftime report. i'm scott wapner a great come back for stocks with 60% of the market recovered. does it mean the worst is over or are we primed for another drop with us, joe terranova, pete najarian the dow is going for a five-way winning streak is the worst really over >> i think we'll go back and test i think the worst is