definition >> did you know whether robots will be like us, be ambivilant or destroy us? >> do you know >> what do you think >> i don't know. >> thanks for being on it is great having you on. >> make sure you join us tomorrow, folks, right now it is "squawk on the street. ♪ >> good tuesday morning, welcome to "squawk on the street" i am david quintanilla and melissa lee and david faber. a big week of retailer, the other big story on better results.

here, a gain of 10-yr yield of 29 we are going to find out what happened this quarter and the role of ecommerce is playing >> qualcomm gets a new deal. we'll give you the latest of qualcomm we'll be talking to qualcomm's lead director, tom horton and tyson foods ceo will also weigh in on chicken shortage in europe >> they are poised to open lower as we begin a holiday trading week markets rekofcovering a lot of their losses since the february 9th lows now, we got this great debate between black rock or morgan stanley whether the february sell-off was a taste for what to come or is tax cut going to help earnings in the big way.

>> it was the advertiseradverti, right? >> i have been away in two weeks and my first time back a lot has happened there is sort of a rethink in terms of multiples in light of yield. today we have a situation where we got the 10-yr back approaching 3% and futures are in trouble and walmart is not hurting the situation. it is the whole debate of what you pay for stocks at a time when yield is at 3%. so we are starting to rethink that and the question is where do we come out on the other side of it? >> that's been going on for a while. you both have been gone, he's been working at a different time zone to say the least. last week things calmed down and of course, we had a strong market if you are quite happy with it. we did watch 10-yr's higher,

2.9% it continues to come up and at what point do we see more of a response in the equity markets and similar of what we saw, with those higher wage numbers and employment reported back >> this brings us a debate that we have been talking about this calls out of london, why would you pay the same evaluation in a rising, interest rate environment black rock's, here is richard turnill, its earning power >> for the market at this point, there is a debate going on as where we are in the bull market and in sort of a glass half full or empty situation when you take a look at morgan stanley's view

and blackrock's view earlier this morning, it was below 20 we are 21 in change. we are seeing some concerns as we are getting back to full trading. last week we entered a holiday short week we are back now. >> and there is walmart. earnings were missed they issued a full guidance that's at or below consensus that's what it is poised to do this morning >> yeah, the bulk is on walmart is really being thought over once again here especially when you see it online sales, ecommerce sales of 23% of the

quarter as oppose to the previous quarter which is up more than 50%. is it losing momentum in the key metric where it is competing against amazon which is a theme this morning with the albertson's deal, it is all about the fight and competition and how you are poise against amazon where is the momentum for walmart. >> yes, the stock is a strong performer to combat walmart particularly and online, picking up or ordering online. any slow down there is going to concern people they did say the majority of slow down related to fully lapping of what had been the jet acquisition of one of their keys building blocks for online we'll see, the market right now not sort of waiting to get a better sense here given of what has been a very strong stock as

we pointed out many times. we are talking about a stock where it was not long ago well lower, it has been very strong before lets get with kourtney reagan. >> good morning, walmart just wrapped here live earnings, it does not do for earnings being that live call, it says it is going start doing it each four quarters of the year shares are lower more than 7%. they stayed lower throughout that call with walmart u.s. net ecommerce sales, it is the slowest rate of increase since walmart have been measuring it much of the ecommerce slowing was planned with the integration with the website in the store. he did acknowledge some of the slow downs, like tvs taking more

space in the back room going forward, walmart is forecasting u.s. ecommerce to reaccelerate and growing 40% this year. by my estimation and calculation, it is still under 4% of total u.s.'s sales when ask if he sees diminishing, he says no, he feels good about market shares and it is increasing in the u.s. and both in yuunits and dollars. it has not made any decisions regarding repatriation at this point. walmart's tax rate is expected to be 24% to 26% before the tax reforme

reforment tax came through sales are expected to grow at least 2% for the full year >> back over to you, david >> thank you, kourtney, thank you. it is a possibility when i first reported on qualcomm would be raise $110 share and nxp semiconductors, it seems to be arguing for that and not to mention a lot of shareholders start to argue for it as the summer went by and the fall. many of the shareholders became vocal and eliot which amass as much as 72% of the company as i reported on sunday on cnbc.com if you did not see it qualcomm started to talk to shows shareholders and started to ask them on friday, what will it take to get this deal done.

we got the deal done this morning. it started in the low 120s, it ended when they're able to turn with $127. all of it is in cash this is an all cash deal this is a deal that we are talking about is more than $44 billion. one of the larger deals that we have seen in technology. the tender threshold was brought down of 808% of the shares needed to be tender. 270% of the lights of eliot and many other large funds, hedge funds that were out there, owner of this name they're going get this done rather easily, they are already negotiated agreement with what represents 28% of nxp's outstanding shares it is a significant encrease, it is one that qualcomm rather perhaps not done but given how long this deal is taken to get

the approval they're waiting for china to come in with the aprooufproval what does it mean of course for broadcom spending $82 a share to acquire this company in cash, in stocks and their votes the see the director to take control we asked hock tan last monday if qualcomm did increase the price paying for nxp, what would he do here is the answer we do not have that, i am sorry, i thought we did >> it was perfect, what did he say? >> he said as opposed to pulling out entirely which some people believe that broadcom might, they would consider their options. it is certainly not something they want to see they have continue to say

throughout broadcom that they would be fine with the 110 deal wu nothing above that. on late friday, we add institutional shareholder and services that certainly, its recommendations are taken by index funds, we think you should select the -- it does appear that qualcomm is in a strong position going into the vote if broadcom does not increase its offeror do more to give them a better field in antitrust. >> it will be interesting to see how semiconductors -- and broadcom could be on the hunt for something else if it falls through. >> right >> and i am told that we have those comments from mr. hock tan last week if what did occur this morning happened >> nxpi will not solve

qualcomm's problem it is the broken business model that is. and if qualcomm raises the price on nxpi, we made it clear, it is a clear value from qualcomm's shareholders >> so a walk away. >> we'll preserve all of our options. >> yeah, i got it right. preserve all our options this marks the end for the battle of qualcomm to afire nxp. they can close that tender march 5th from now but we don't know from the chinese authority that could be extended >> nice to see some of these lines start to fill in on a long-term story. >> thanks david. >> we'll check in with andrew in

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♪ >> side abs. >> the hand off has to happen one way or another lets bring in andrew who's at the olympics this week in south korea. we did have a great time, did

we >> i got to tell you something carl, i don't know if you can see this this is our curling stone something. anyway, great to see you, carl, wish you were here with us that was a big fun day together and we'll have a lot more videos to show you some other stuff including some competition that we had i want to check in on the medal count this morning, norway is in the lead with 29 medals and germany had 23 and canada 19 and the netherlands 14 and france of 13 medals and the u.s. is no in the top five anymore dropping down to six in the ranks sadly. france coming right above us and helping out team usa the shib sibs took bronze in the ice dance and we caught up with them and their new hardware just

a couple of moments ago. >> these things are clanking, you now have two of them >> trying to be careful. >> but it made noise now >> do you want to feel >> you got two so that's good. >> help us at this we want to know this brother/sister relationship, how does it work >> it worked out really well >> do you hang out all the time t do you argue, do you just practice together and go your separate ways, what's the move >> well, when we started out, before skating we were hanging out together all the time. do you have a sibling. >> i do. >> with us, we started skating together and we continue to hang out. it is an awesome relationship that we have we are business partners, it is important that we separate the family stuff and when we are on the ice, we got a job to do. >> what do you guys disagree on? >> a lot of stuff.

. >> like? >> when we are training, because when we try to be the most elite level of everything, we expect a lot from each other. >> what happens from shochi to here >> we wanted to do things our way and because we are different being brother and sister, we had a different story to tell and we have to be unique and capitalize on that strength >> you know carl, you say it all the time but one of the most amazing things here, now we are showing a video here you talk about sort of the american dream, i am watching these winners and see them in their moments and elements, it is an amazing thing to see talking about seeing, coming up,

i think we already -- anyway, another pair of american heroes hitting the ice. i am talking about carl and myself, we'll show you that in just a little bit. >> you guys have good form, andrew >> you know there is a fun fact of the shibutanis kids what's funny is somebody on twitter says he called in on the array farmer biotech earnings call for the second quarter and he apologized because the connection is bad and he's calling from the korea the ceo says enjoy the olympics and i know you have people who you care dearly about competing. wink, wink >> they called themselves business partners so we'll see them a lot more, not just on the ice but as guests on cnbc. >> fantastic andrew, cannot wait

of a good week of coverage and a little bit more video. >> and your ice skating. >> i thought you guys looked pretty good. >> i bet it is harder. >> andrew, you got hard work to do there carl was really good we all -- i hope you do the vr thing again. that would be great to watch >> well, i am going to go over there. carl covered a lot of ground but we'll try to cover a little bit more this week there is a lot of medals still to cover we have a couple of big, fun stories to show you as well. we'll be bringing you all of that >> andrew sorkin, we'll see you later. >> thank you >> still to come food and business, interview of tyson and conagra. we'll take a look at how our futures shaping up walmart is playing a role. the dow is looking to lose 143

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you are watching cnbc's "squawk on the street," opening bell in just two and a half minutes. busy morning, a lot of retail

earnings, we got home depot and walmart today. hp is coming and ber shishire on friday it was a slam dunk across the board when it comes to the metrics or watching the six straight beat in a row this one is indicated of an open higher clearly in the premarket. we have in the other hand, in retail, walmart. it was the biggest decline. >> on earnings in 17 years >> that's a long time. >> it is worth mentioning again before the open, albertson's is a private company, but it will be going public through this deal rite aid tried forever to get the entire company to sell to

walgreens but antitrust authority says no. what's left of rite aid is now being combined with albertson's, of 28% or 29.6% of what will be that new company that i would assume will enhance albertson's aid to customers and competing with the death star known as amazon >> think of walmart with the pharmacy offerings, when it goes public, it is going to have a viable portfolio or businesses that'll compete directly with walmart. >> i am sure it is not a coincidence. amazon will start giving consumers 5% back if they use the amazon visa card at whole foods. the margins and the busines business -- it is like weighing on the the pressure that's

coming on. >> i love the 5% back card i use it all the time. >> yeah. >> just on the website i diplomat know and now whole foods. lets go to the opening bell, the s&p 500 at the bottom of the screen a provider of automother vehicle support, drop car. we'll watch the impact from the dow. you can see the opening is not impressi impressive, quite a bit of red nxpi opening for trade of the initial trade there is a little bit below. >> you got a few weeks to potential close or even longer the chinese authority would have given their approval last week, it is chinese new year and the year of the dog, things are not

going on the expectations are next week you do have the new deal, 127.50 is the price it is trading below that that'll tighten up a couple of weeks. interestingly, one day before the march 6th, shareholder vote, they'll make a decision to see any of the prod cobroadcom nomi. wl s we'll see where that ends up it will have to be a majority for anything to change there have not heard from broadcom this morning, not in a statement and have not heard of any sources from the company either. a new deal have been signed with voting agreements with 28% of the share, we'll only need 70% now. you can see broadcom shares are trading up a bit this morning. >> does it tell you that people think they're going to abandon the offer? >> the growing belief is they'll

not be successful one way or the other and therefore, they'll move on. the stock have been under pressure since they began this quest. it is tough, they are really tough. hock tan is a disciplined buyer and so we'll see these guys know how to do deals, tom hayes have done some great deals at tyson i think we are looking at tom horton who'll be joining we'll take any tom we can. if your name is tom, come on up. it is a tom morning. >> a falling demand for the nikkei and samsung is going to slash out on led panels. it is a new day. if cramer is here, we'll go off once again how not to follow those cues >> think about how many times we

hear those resources they're seeing weakening demand for the 10 how many times are we listening to that and we see the stock maybe pulled back. what can we believe? we cannot believe those reports anymore. >> you cannot believe that warren buffett is the largest single shareholder that propelled apple shares last week one would say largely because of the ownership of berkshire hathaway it is giup again this morning. technology, sharply it is coming back the last couple of weeks and it is still at 4.7% for the year after being dow for the year, only a little over two weeks ago. >> fairly big, there was a big

mover, biotech company, late study meeting the end goal of the peanut allergy drug, aimmune, thaimmun aimmune thera, this was up 11%, reenforcing the effectiveness of the peanut allergy drug. it is a small stock. this has been a high fire certainly in the past 12 months or so. >> retail obviously, a bit of negative halo surrounding walmart news and you see some losers at the top. gaps and other ones are down 7% in the premarket on ahead of the gap brand. jeff kerr is leaving, they say it is going to oversees it on an

interim basis. we always talk about in terms of gap the effect from banana and old navy but in this case, a replace for one of those >> that's a steep decline for gap this morning take a look at macy's down with 2% >> dom has been on the air this morning. macy's was one of those stocks cited. it had given up a lot during this, here it is under pressure and it will be interesting to see what sort of pressure walmart has across the board on retail this morning. >> not a lot of research out this morning, city does go to sell on snap price target is 14 bucks the argument is there is a significant jump they say in negative review of the app because of redesigned that was pushed out users decline in engagement and there is the added news that

beagle sold about $15 million worth of stocks next week. >> that benefited better than expected numbers and moved up sharply at 38% when you mention snap, you have to mention facebook, well, you don't have to but you may want to take a look at it it is weaker today it is not incredible strength in technology the continued questions and focus on facebook's impact on the election and russian trolls, front page of "the new york times" today and indictment of mueller last week and some conferences and mr. goldman sort of coming out and did not seem to have called qualcomm before he took to twitter. that may have ban mistake. always check

that's why they are there. >> with the pr >> they may say not advisable. >> retweeted by the president as he tried to argue that advertising, their hands are clear. some read the indictment on friday with a different point of view >> yeah, 9,000 people came back at them on twitter that stock continues of what's been the weakness and facebook is down for the year but opposed to alphabet's up 4.1% and amazon is up 25% for the year and as we pointed out, snap is having a good year as well. >> it is worth knowing yum brand. we mentioned kfc stores, kfc have said they have switched delivery partner, yum brands is down 6/10 of a percent and we

mentioned tyson as well. we'll ask the ceo when we get a chance a little later on in the show >> the initial lows, walmart is attracting 50 points or so lets get to seema mow dionody oe floor. >> the dow has recouped about t two-thirds of its losses that we saw in the sell-off. it is out of correction territory. it is still about 5% away, down to 80 points in today's trade. trading mixed after the latest read on inflation, germany is surprised of the upside, many asian markets are still closed for the lunar new year, the japane japanese nikkei is coming under pressure on the back of a stronger dollar. walmart is reporting a mixed quarter. revenues and comps both beat the

street home depot had a big league thanks to a bump up in store traffic and a boost in ticket prices home depot is hiking its dividends up to 1.5% domino's profits by higher royalty -- it is lower right now by 5%. chipotle is getting an upgrade on the ceo change enthusiasm building as brian nicolls trying to revitalize chipotle's brand >> of course, lastly take a look at bitcoin is up 30% over the past, dieespite all the controversies of trading it is now above $11,000. >> thank you seema >> lets he's head to rick santei

>> good morning melissa lee. if you look at interest rates, they continue to walk higher, fresh highs going back to 2008 plus for 2-yr noteyield. actually 2's are now up 3 and 10s are up a couple of basis point. if you look at how far back we go on the 10-yr, just remember as the 2-yr, we'll be comparing that for a while the same can be said for 10-yr note the last day of 2013, we traded a 203 on a dloclosing bases ande never saw it since you have to go back 2011 to see before the particular date if we look at what's going on in

europe, the 10-yr bund yield is down a couple of points. the 2-yr in europe is up you have to go back to may 2016 to find minus 51 is the high yield. it sounds absurd, does it? >> we are up almost half a percent, the dollar index is still struggling just to get above its midpoint of 2018 >> carl, back to you >> all right, rick, thank you very much. when we come back, an exclusive with tyson and tom hayes, we'll discuss his company's ruurg orgendhe t chicken shortage affecting kfc a lot more, we'll be back in a minute it's absolute confidence in 30,000 precision parts.

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for more on that, lets check in with the ceo tom hayes who's joining us from boca raton in florida. >> good morning guys >> there is plenty of news, what's the headline for you down in boca? >> yeah, today is a chance for talk about our innovation strategies, we have a lot going on a strong foundation, we are billing on a base of fantastic new entry and talking about a great pipeline we have coming up for this year. >> in davos you mentioned you were on the hunt for some acquisitions but valuations have been very high i assumed that has not changed in the past couple of weeks. >> it has not. we want to make sure we'll bring in companies that's going t to -- we are constantly on the

hunt for things that's going to add a lot of values. valuations are very high and we'll be disciplined about it. it is a market with a lot o of -- we are the only company right now that's growing we want to continue that trend >> costs are a problem though. you unveiled a plan to raise prices at a higher fright cost, there is a tight capacity out there and there is some skepticism of what this can do for demand and for meats, how do you foresee of the price increases at the same time potentially road demand. >> yeah, sure, it is an issue that's hitting the whole industry, it is not specific to tys tyson. i think everybody is going to deal with it in one form or another. the driver shortage is real. getting transportation and getting goods where they need to

go is a real problem costs are going up costs have to be played out to consumers. it is going to be all products we feel like tahat's why we hav to focus on value, the brand building that we are doing is putting us in a better position. certainly innovation is most important now when you try to play some of those >> mr. hayes, your shareholders we mentioned a moment ago, your shareholder would like to see you do another deal given the success you had and frankly many people thought you paid a high price but you delivered well more value than many thought possib possible whn y pinnacle is that the name that acquire certain circumstances? >> there is a lot of names coming up that's an attractive

acquire. what we are focusing on is not rumors or individual company but what's going to be best for us there are a lot of companies out there but not one fitting our strategy with the fastest approaching brands o good asset for sure and a lot of them we'll focus on our strategy and building out protein and take advantage of it and consumers want more protein and that's not stopping any time soon >> certainly summer adopting these lifestyle, how focus are you guys on that in terms of all these meat alternatives becoming readily available. >> certainly we are the largest u.s. food company by a fairly wide margin and that's built on the back of animal protein it is something that's merging and consumers want alternatives and they're going to be

sustainable. we have actively disrupting ourselves with investments and alternative proteins whether it is plant base or others. we feel like that's going to be a huge part of tyson in the future and we want to lead of regardless of what type of protein it is, we want to lead the charge >> tom, everybody is watching kfc today, these locations in the u.k. that's being forced to close hundreds of locations because of a shortage of chicken, how is this specific to one market or is there something else going on? >> i think it is specific to the market, i heard about this today as you did and certainly any time you move a supplier if go from one logistic company from another, there is going to be disruptions. we have in the u.s. a strong supply chain, we feel that's a competitive advantage for tyson.

that sort of thing is a disaster n scenario, i wish them the best of luck. kfc is a great competitor as well but not in the u.k. long te are we in protein consumption trends i've seen some things written that perhaps we might have gone peak chicken a decade or so ago. where are we going at least in north america/u.s. >> protein is not slowing down, where we are on the cycle is if you look over the last say 58 to 60 years protein continues to increase 3 exact global consumption. the u.s. follows the same trends, maybe a little more. it continues to grow at 3% or more and that looks like it will continue long into the future so i think there's great tail wind if it's chicken, beef, pork or frankly plant-based protein, the consumer will tell us which way

that goes but protein tail wind as a growth engine for us has a lot of room to run. >> finally tom, we'd be remiss if we didn't come back to tax reform which is such a big issue for so many people in your position you announced, of course, a bonus to as many as 100,000 employees. but beyond that, what do you see from the savings in your tax rate being lower in terms of your capital allocation and now in any way are you planning to change it? >> we had our conversation call for the first quarter of last week, two weeks ago and we told them we'll continue to accelerate against our strategy so for us, for tyson, it's about a $300 million benefit this year so as you mentioned, david, we sent some of that back to our front line employees, we will in the form of bonuses. but we'll accelerate cap x we have a lot of great projects we want to execute that's best

for you are a shareholders and our companies. there's a lot we can do to help them we have folks in the jobs that are the most difficult we'll apply automation, we have lots of training, people coming up the curve in terms of skills as that automation takes hold so we are continuing the investment trend beyond a one-time bonus because this is as you know going to be year over year a tremendous, tremendous tail wind for us. >> tom, appreciate your time good to see you again. tom hayes joining us this morning from tyson a lot more exclusives from the cagney conference coming up later on today we'll talk with the ceos of conagra and hanes celestial in the 11:00 a.m. hour. walmart is down 9%, close to the ree ssn.thseio mo "squawk on the street" continues in just a moment alerts -- wouldn't you like one from the market

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a. taking a look at bitcoin futures, up 14%, best day since their launch back in december. keep in mind, the price of bitcoin itself across exchanges above 11,000 right now and that's the highest level since mid-january. we've seen quite a rise. you can imagine the roller coaster that we saw in bitcoin

19,000 down to eight or so back to 11 and change. >> did you see what paul singer wrote about, cryptos elliot management calling it cryptos in general one of the most brilliant scams in history. so another big name weighing in on the trend, fad. >> scams not fraud, though. >> speaking of elliot. they have decided they will tender to a new $127.50 a share offer from qualcomm to acquire nxp. this does appear to be the deal that will get done very high likelihood of that they're a situational investor given that they say there's no way anything is less than worth $135 we'll talk to qualcomm's lead director of that company and we'll talk to him at the nxp deal, broadcom out with a statement saying it's "evaluating its options"

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♪ baby, you're sorry, i'm not sorry ♪ ♪ showing your vibe that i know that i would ♪ ♪ baby, you're sorry, i'm not sorry ♪ ♪ welcome back to "squawk on the street," i'm carl quintinilla with david faber and melissa lee. we are in a holiday shortened week full of names, earnings from consumer products companies. today it is walmart responsible for a big chunk of the selloff our road map will start with shares of walmart falling. it accounts for virtually all of the dow's losses the retail reporting a mixed quarter. we'll look at what's spooking investors. plus qualcomm raises its bid from nxp semiconductor i'll speak with their lead director next.

>> and the ceo of conagra will join us. we start with the markets, though it's been a wild week with stocks have things calmed down for now? joining us is the david market strategist with jeffries and the chief market strategist with b. riley. morgan stanley said there's more volatility to come and what we've seen is the appetizer not the main course. blackrock upgrading their view what do you think, david >> i'm in the blackrock camp the story last week was interesting on the inflation front. the market didn't flow with the inflation scare fed losing control theme and i think that was a big test for the market. it passed the test a lot of negativity we got in the early part of the week were suppressed and we ended up with

stocks feeling i think pretty healthy. not as healthy as they were. now it's back to debating rates and supply and some of what will come from the new fed chair. >> art, were we just in a digestion period digesting the notion of a world in which the ten-year yield is closer to 3% than 2% at this point? that would imply -- a lot of strategists would come on and say 3% is the line in the sand in which you question valuations that would imply if 3% is that line in the sand that there's a limited amount of valuation expands in the moment. >> i think making the line in the sand at 3% is crazy so the fact that the reason we're getting to 3% is because we have a stronger economic growth and better earnings and a width of inflation and we've been looking for inflation for a while. it's more important to note we

got nervous because of the fact that we got to that 2.9% too quick quickly and then we made this assumption that we's blast through 3% at the same pace we got 2.9% so as things settle down and we rationalize why we're moving higher in yields and what the fundamentals look like we'll realize we created value here and markets will tend to work their way higher again. >> so the argument we had a strong week last week on equities even though yields didn't back off a lot, some take that to mean that the bounce is on some sort of specious fundamentals do you agree or not? >> well, i would tell you this technically when you have that selloff and the rapid pace we did, you want to retest those roads again. so for the folks that look at this technically you'll say yes, we need to test the low and then we have a much more solid bounce off of that so i can see that argument the other side of that argument would be a rapid pulldown like that deserves a rapid recovery

so we've had a classic retracement of 61% of the selloff that we saw. that's important on significant volume so if we have to retest that lull, that's okay but i think the long-term fundamental story for 2018 is much better than what's being reflected in markets and current sentiment. when you think about the yield on the ten-year, i would say wake me up when we're north of 3.5% in terms of drawing money out of equity markets and fixed income markets >> david, you're saying the markets are kind of healthy still. what do you buy here >> we're pretty focused on the broad picture, at least in my world. and the risk parity world is where i'm focused and that's that this is going to be a gradual fed. this won't be a fed that tries to disrupt things. it's trump's picks

he's got to look and think about who does he want to add as vice chair and the other governors? does he want folks who will be driving interest rates significantly higher at a rapid pace like the market was starting to think about? i think he doesn't and i think like what art said, we'll set into this and say hey, it's a higher growth, a higher real return on capital world, we have great tail winds from corporate tax reform, great tail winds from deregulation, those will keep coming, they're not inflationary tail winds, just good for growth. they're supply-side tail winds and once we settle into understanding this fed and understanding jay powell and who the rest of the folks are, the rates market will settle down. >> it sounds like, david, that you believe there's a powell put in the market. >> absolutely i do i think -- i think the structure is still there i don't think -- the fed's learned a lot in the last nine years post-crisis. they didn't just throw that away after ben bernanke left or janet yellen left. there's a whole structure of how to think about markets and how to respect and deal with markets

and i think that a fed that gets draconian with markets found itself in a difficult place so i don't see that test coming any time soon. i think that's a market dream from a week or two ago that maybe shattered slightly. >> david, art, our thanks to you. >> thanks. >> thank you qualcomm is upping its bid to acquire nxp as the chip giant continues to fed off the hostile bid from broadcom. broadcom's ceo joined us last week and he said the acquisition of nxpi isn't like that. >> it's a broken business mold that is -- and we have said it too, if qualcomm raises the price on nxpi, we've made it

very clear, it's a clear transfer of value from quality comm shareholders. >> so another walk away? >> no, we'll preserve our options. >> in fact, broadcom continues to say just that in a statement saying they're considering their options. for more on all of this and a cnbc exclusive, let's talk to qualcomm's lead director some people may remember you as running american airlines and another of other things as well. nice to have you here. >> great to be here. >> why did the board decide to increase the offer to $127.50 for nxp when you have someone like hock tan saying it's a failed business model. >> well, we disagree with that the deal for nxp is very important for qualcomm, accelerating our growth into automotive, iot security, building on our 5g strength and rollout. we did the deal initially at $110 a share i think folks viewed that as a favorable price per qualcomm

the company has continued to do very well. earnings are up 20% -- >> that's nxp? >> nxp's earnings and we raised the bid 16% so it's at a lower multiple than the deal when it was originally announced we think it makes sense strategically and financially. >> as i've been reporting for many months, the deal was not going to get done at 110. >> we noted that. >> in part because of its unique structure, dutch company, a tender offer as opposed to the way other things go. is this going to close on march 5? what about china we're still waiting for approvals of the anti-trust authorities. >> they're a confident regulator and they tend to follow the others so we think we'll get approval but we have to wait and see on that in terms of the shareholders we've got 28% of them signed up, we lowered the threshold from 80

to 70 so from a shareholder perspective we think it's buttoned up. >> and on timing you have nothing to offer >> we'll wait and see. it's the middle of the chinese new year but we think after that we'll get approval we think we'll get approval in short order. >> march 155-1 when t5 is when r offer for nxp closes, march 6 is the vote to consider who will be on your board of shareholders. the advisory firm came out with their recommendation in which they said they think four of broad co broadcom's nominee should be seated they said the companies track record needs to be more like that of its would be acquirer broadcom what do you think? >> we disagree that four directors needed to be added to our board, that's obviously not

a majority of the board so i think it's notable what's interesting about the iss report is that it agreed with us on many points which is $82 a share is not adequate value for the company. the certainty on nxp was important to qualcomm and its shareholders we've addressed the latter of those and we agree with the first two so i think that's important and you need to remember that iss tends to influence a minority of the shareholders i think it's far from clear what effect that. >> index funds can follow them, they are a significant percentage overall of many companies. $82 isn't enough the board is unanimous in that decision why? >> if you look at our 2019 earnings projections which are

now even more certain than they were before with the completion of the nxp deal. around $27 a share $82 represented 11 to 12 times multiple on that the semiconductor average multiple is around $18, precedent deals is around $22 so it's not even close to what the value of the company is and that's the board's view. >> to those who would say that $7 number is really a reach given the ability of the company to execute on its business plan and say it failed to do so what's your response >> i disagree with that. we're on the verge of reaping the investments we've made in 5g which is rolling out in a profound way over the next couple of years and we've just closed up the nxp deal which has $1.50 of accretion inherent in it so that part of the puzzle has now been put in place. >> and what about the business model overall? of course the licensing business where it appears broadcom has a

different view in terms of how they would run it. again to this iss report only because it very recently came out. they say the assertion that certain customers and regulators might be receptive to a revamp of qualcomm's approach to licensing seems credible. >> well, it's not at all clear what the proposal on licensing is from the broadcom side and that's something we've tried to address as we've spoken with them but i would say we have 300 big customers around the world which, by the way, creates the platform for 5g. qualcomm is sort of the engineering and development engine behind wireless technologies around the world. so a couple years ago we established a protocol for licensing in china as part of the settlement with the chinese and that's a big part of our business, that's our biggest business and just recently we

signed up samsung, the largest oem in the world so i think the facts belie that assertion. >> has the debate been robust? are people pushing back? is there a lot of conversation about these very issues? >> i would say this is a very energetic board. we have a lot of new board members on the board our average tenure is around five years so it's a very energetic, enthusiastic and fresh perspective board if i could put it that way. we're skeptical. we're skeptical, i think, in a healthy way of our own plans we're skeptical of other's plans for the company in an emna context. but that's one of the reasons we thought getting the deal done would make qualcomm more stronger, more diversified, more possible

that's good in either case whether we pursue our independent strategy or whether we pursue a combination with broadcom. >> speaking of boards of directors, kind of a propitious day to have you here you're a walmart director. >> i am. i'm a proud walmart director. >> i'm sure you should be. the stock has been a strong performer, not today the earnings are disappointing anything you can offer in terms of your sense to what is going on at walmart and whether this is a one-quarter phenomenon? >> well, i'm here to talk about qualcomm but walmart is playing a long game. we're executed on our strategy which is really an omni channel strategy leveraging the power of our stores worldwide with a very aggressive e-commerce strategy and i think that's getting traction and we're moving forward. the company has been growing and will continue to grow. >> i won't push you on that too hard because we're out of time thank you, appreciate you coming

by. >> tom horton, lead director of qualcomm. >> when we come back, we'll talk more about wmt shares are down dragging down the dow. we'll break down what's spooking investors. plus the ceo of conagra will join us from the annual consumer analyst conference then we'll leia with the ceo of hain cestl, a big show on "squawk on the street. don't go away. build and run apps anywhere you like, while keeping your competitors at bay. the ibm cloud. the cloud for smarter business. the ibm cloud. big thinking in the finger lakes is pushing the new new york forward. we're the number one dairy and apple producers in the eastern united states supported by innovative packaging that extends the shelf life of foods and infrastructure upgrades that help us share our produce with the world. all across new york state, we're building the new new york.

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shares of walmart down sharply as earnings risz and revenre - and revenue and comps beat forecast let's talk about this story. karen, with the shares down almost 9%, how much of this is actually what you expected after seeing the print >> it's more excessive than what i would have expected. i think expectations are very high going into the print given the broad-based strength in retail and i had a sense that maybe walmart would be better than guidance but they missed on a couple points, whether it was gross margin and e-commerce growth rate and guidance, we're all a little squishy so it's fair it's down as much as it is. >> when you say "a little squishy," people point to the 24% versus the 54% in the prior quarter. is that a reasonable commback on a sequential basis >> two things are the biggest issues, the gross margin decline and the deceleration in

e-commerce i think the issue is it's a bit of a bottleneck issue in terms of excess demand so i'm not concerned about that. i think the guidance for 40% for next year can be achieved but i think the gross margin -- the concern on that -- it's not necessarily my concern but investors' concern is that it rekindles the debate on whether they can have a stable payout more than anything and that's why you're seeing the stock act the way it is today. >> picking up on that point, you write in your note about 60 basis points came from price investments, i.e. discounting and e-commerce, the weakness we saw there. how much is driven by walmart itself setting the standard, the price, the low prices for the industry and how much is a response to other competitor pressures like amazon? >>. >> they're 84% overlap with walmart and aems but keep in

mind walmart has been on this journey for multiple years in terms of private investing so billions of dollars in a couple years next year as well and it's about say money live better and this is a great place to be for the long term so we like walmart. we would use an opportunity to buy the stock if it declines more than 5% we think this is a great vehicle to play the u.s. consumer. the bricks and clicks thesis is very real, we're at 4800 stores, 90% of america is within 10 miles of walmart so the new jerseyer is digital emerging together and the grocery being a competitive advantage as well. >> when it comes, oliver you mentioned 85% overlap, what does that mean? that stuck out. >> it means 85% of walmart shoppers shop at amazon so there's a three-way boxing match between amazon, walmart and

target as we think about the world evolving what we like about walmart is it's $500 billion, 7% free cash flow yield 2% to 3% dividend yield. it offers you both offense but it will be a big multiyear story and walmart will use 480 stores as fulfillment points and productivity loops that was positive physical store traffic and that is a great thing in this tough environment because traffic has been a risk factor in getting people to come into the stores so this is part of the battle versus amazon and what's unfolding in our eyes will be about price and convenience. >> >> in your quick take you mentioned on the margin story price investments but then

higher transportation expense and field cost how much of that is within their control? >> the price is entirely within their control so they're in this for the long term and they are taking the opportunity to take -- they're being opportunistic to take share by investing in price and tax reform will make the strong get stronger and with $2 billion in incremental free cash flow we know $300 million of it is wage and benefit related so you have 1.6 billion to play with we expect a smooth landing on the plane but there's many components of how they land because there there's a lot of moving parts but investing in the business for the long term. >> guys we'll see how it plays out today and in the days ahead. karen and oliver thank you,

guys let's check in with andrew ross sorkin in the winter olympics in south korea once again today busy man as always hey, andrew. >> >> well, we got bad news and that is that team usa has dropped out of the top five in the medal count though there is good news and that's that the women's hockey team going to the gold medal game after defeating finland 5-0. in the third time in a row the american women will play in the final game the lust redeem itself against canada which we have to note has won the last two olympic matchups so in the meantime from ice hockey to skating, we caught up with newly minted bronze medalist adam rippon from team usa and we talked money and sponsors. >> six years ago i had no money to my name. >> i wreally >> i was living in my coach's basement, i leased a car and i got a letter saying my credit

was so bad they needed to take the car back so my coach co-signed on the lease so i could keep the car and he said "i trust you and i trust you're going to work hard." i game into this olympic games without major sponsors but i'm -- >> we have ceo viewers here who can make this happen you can talk straight to the camera. >> which one that one okay, listen, this is adam rippon, i have been speaking with reese, i've been speaking with brittany. >> what about me >> and drew as well. three. and these things happen in threes so this is how i know this is meant to be. you need me. call me. >> we'll hook it up. >> is there a spop or you love is there a company you love. >> i love money. >> you've got to this guy's

honesty. he has won over the hearts of so many people throughout the weeks here throughout the games we've been playing a game of our own we call it asking the athlete and the spirit of adam rippon we asked olympians to name their dream sponsor. >> i think i would pick some sort of airline so probably british airways and they could fly us first class everywhere we go. >> i'd say adidas would be great. >> kombu that. >> i've been a chevy fan all my life anything general motors. >> of course i would like niking to our sponsor. >> home depot, i'm renovating my house. >> i think toyota is a fantastic company. i'm a big fan of their off road vehicles, what the company stands for i know they're an olympic sponsor so, hey.

[ laughter ] >> i'm going to -- we were talking about it here among the producers. i'm going to one up the british air. i would go i think like either net jets or wheats up if i co d could. carl, if you had your dream sponsor what would you do? >> i'm not in the business of soliciting sponsorships. comcast? i don't know. >> good answer brilliant answer apparently nbc -- and rippon tweets about this today -- offered him a spot as a correspondent but it would have required him to move out of the olympic village and he said no. >> he's a real team player, that adam rippon. he was officially offered the job. you can see it just the guy is great on tv. when the olympics are over i am sure we will be seeing more of him on the small screen if not

the big one. >> all right, andrew, thank you very much, chloe kim on the cover of "si" just came out. >> so some of these stars will blow up. >> she already said eats spam. >> you can see the wheels turning. >> unbelievable. let's take a check on shares of home depot. they're higher by a half a percent. stocks at this hour are mixed, we have a nasdaq flipping to green with the fang stops except facebook posting at least 1% nc today squawk on the street is back right after this

what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley

it's been a volatile few weeks but financial managers have managed to stay in the green so far this year

the etfs are down about 19% over the past year. let's bring in a senior only frist oppenheimer for a closer look at financials thanks for being with us. >> thanks for having me. >> i wanted to hone in on an interesting figure i pulled out of your fourth quarter bank preview note i think this figure still holds and that is how you see two or three interest rate hikes a year playing out in terms of net interest margin. >> i think the magic behind banks in the current environment is that even though loan growth is slow -- and you'll hear people commenting on that, loan growth is only 2% or 3% a year but the thing is with rising rates that growth will turn into 5% or 6% net interest growth and the dynamic behind that is that for the banks most of their loans are floating rate loans so they're tied to libor whereas

most of the deposits are either checking "s or savings accounts which tend to stay very fixed rate so you have this raising rate that tends to make the net interest grow mid to upper single digits and then if you can keep your expenses dun to the low single digits, 1% 20% which most banks pledge to do, then you get upper digit net income growth and you have 3% or 4% share buybacks and you have double digit ownings growth from low single digit loan growth. >> 5% to 7% is the exact figure for what 2% interest rate hike could mean in terms of the banks that will see the most benefit, that pullback was a buying opportunity. it's basically at pre-selloff

levels do we miss the vote or are there still some that could benefit from this dynamic. >> the bkx up around 6% and the s&p is up one so you've narrowed the gap and at year end we were at roughly 66% relative pe for the bank group, now we're 71% so that is still below the long-term historic average of 75% to 78% would be what you would normally expect so the stocks are cheap still, they're no longer giving them away and in terms of picking one bank versus another, what i'd say is the differentials have gotten tighter. a couple years ago you'd have some banks trading at tangible book and others at two times tangible book whereas now the deferential is much lower. as a general rule what i would say is there is still i think kind of an unfair discount to

the big banks versus the regional banks so i still think the b of a, citi, j.p. morgan, are being relatively discounted versus suntrust, pncs and that ilk. >> got it chris. thanks a lot for your time. >> thank you let's get a news update back at hg with michelle caruso cabrera. >> here's what's happening at this hour. special counsel robert mueller charging alex van der zwaan about lying with his communication with rick gates. he worked for a law firm that said it terminated him in 2017 donald trump jr. arriving in new delhi to promote his family's luxury apartments. >> he met are real estate developers at a five star hotel. he will have dinner on friday with those who buy an apartment by thursday. turkish president erdogan

telling legislators that troops will soon begin the siege of afrin in northwestern syria. turkey launched an offensive to clear the city of syrian kurdish militia which it considers a terrorist organization iran says it located the exact site where a passenger plane crashed over the weekend killing all 65 people on board high winds made it difficult to fly helicopters to the crash area and that's our cnbc news update back to you. >> michelle, thank you very much when we return, the ceo of on agra will join us, we'll get tas d lo on xeana t more stay with us

my name is cynthia haynes and i am a senior public safety specialist for pg&e. my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely.

i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california. welcome back we want to go back to andrew ross sorkin at the winter olympics in pyeongchang, south korea, who even while he's reporting on the olympics manages to write this column for

the "new york times" taking an interesting look at what you think banks might be able to do to help gun control in this country. it's titled "how banks could control gun sales if washington won't. provocative and getting a lot of attention today, andrew. >> thank you, carl i have probably gotten more feedback on this post than anything i've ever written it's about whether assault weapons and high capacity magazines and bump stocks should be sold and try to understand where the leverage points and effectively following the money and one of the things you realize very quickly is that there's a financial superstructure behind both gun companies and gun retailers and

financial companies that are behind them have a choice and have made a choice one way or the other to do business or not with them. very interestingly, paypal, apple pay, stripe and square all made a decision years ago that they were not going to do business at all with any company that is involved with firearms and that got me thinking not necessarily that you don't want to be able to allow any kind of credit for guns or anything like that but that potentially you could get into a situation where a lot of banks and bank ceos who say they want to be socially and corporate responsibility, they talk a lot about that, could one or two of them try to take a stand? could a visa or mastercard say, you know what? if you're a retailer selling these specific items we don't want to do business with you it's not in our value system in the way we think about this and if that were to happen it could change the dynamic a meaningful

way. it's a market-based approach being a gun seller is not a protected industry per se or protected group or class as people talk about and banks often make decisions about who they want to do business with. just a week and a half ago citigroup, bank of america, j.p. morgan said we won't allow our card holders to buy bitcoin, which is a completely legal product. so it got me thinking maybe there's a debate the debate people want to have isn't happening in washington and this is the basis of this column. >> your point aboutbitcoin is good one we talk a lot about the burgeoning marijuana industry and how credit does not yet support that and what that does but andrew people still come back and say you just turn it into a cash business, doesn't mean sales would dry up completely. >> no. and that's the thing

i'm not suggesting these guns necessarily should be illegal. that's for lawmakers to decide the real question is businesses that have corporate values have to decide what businesses they want to be in or not to some degree you could argue it would be harder for some of these types of guns to be as accessible as they are it would be harder to get, they would move into cash which is less traceable, that's a knock on the argument that this is a good idea. i could see people make that argument but to the extent that there would be less access tonight some of these products, especially the high-capacity magazines, that could go a long way. that's my view there are people clearly on the other side of this one. >> and on the other side is that it's a slippery slope when you have credit card companies and financial institutions telling consumers what they can or cannot buy using their products. >> the only point i would make there -- and i've heard that a lot this morning -- that they do

already. i think that's a straw man and false argument a, let's be very clear banks decide who they're going to lend to and not lend to everyday there are certain industries they don't want to be involved in there's certain credit cards that don't allow people to buy pornography, for example there's a lot of things where there's a business decision i want to be in business with this company, not this company and this is a market solution because it may be that there are certain larger banks if they decided not to be in business with certain gun retailers that others would fill that void and maybe they would make it just as accessible i don't think so, but it's always possible. >> all right good stuff, andrew, thank you. andrew ross sorkin joins us from the olympics again let's get to the cme group in chicago rick santelli with the santelli exchange hi, rick. >> good morning, melissa lee like to welcome ira harris, wish you were standing next to me ira, thanks for joining me this morning. >> my pleasure, rick, great to

be on with you. >> you still have 4% what do you think about this volatile going on ira? >> i think that with all the conversation last week, you know, even dudley who 10% break or 8% break. small potatoes so this is a different fed we're hearing.

how far. do you think at the end of the day if janet yellen was still in charge and maybe we didn't have this in february. >> many of us are struggling to point to the reason but many things we see we're not sure the meltup causes the equities to have a correction you have a very famous large institutional trader taking advantage of the healthup in the volatility positions now that it's melted down, what happens to those positions are they done? is that strategy over? i don't think the strategy is over they'll come back to it once the market starts to set until a

little bit until they see the way the deficit plays out. the deficit is a big reason for what we're seeing. but they're going to be on their heels a bit. it won't be as easy and a lot of that is coming from the muted response from the fed but we still have other global central banks who are feeding the monster of easy money. >> and we're almost out of time i like that spot mario draghi in europe getting a little bit of a taste of what they've been traying for y we're talking about inflation finish this up what's the condition of mario draghi as he finished his last year with inflation creeping up in eu. >> well it's definitely there. there was a great piece at the project syndicate about this, how the ecb is totally off base. but we know that with the german inflation over

2% but interest rates are negative so it keeps coming back to whose currency is it. who is the ceaecb setting policy for? we'll find out more coming up. we have elections march 4 in italy. >> maybe the transmission for that will be global equity markets to some extent we're out of time ira, thank you. carl, back to you. >> rick, thanks. rick santelli. when we return, we'll talk to the ceo of conagra. don't go away. the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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the markets recovering most of their losses from earlier this month the question now -- will it last and what kind of year can you expect go to tradingnation.cnbc.com more "squawk on the street" coming up. nobody's putting their money into equities.

they're not investing in commodities or fixed income. what people are really putting their money into is what they hope to get out of life. but helping them get there requires a real refusal to settle for average. because when you approach investing with a tireless desire to beat the status quo, something wonderful can happen. those people might just get what they wanted out of life. or maybe even more. conagra ups its earnings forecast this morning largely on the back of benefits from the tax cuts passed late in 2017 the food company continues to revamp its food and snack

portfolio as it adapts to changing tastes. joining us from cagney in boca raton is sean connolly, the ceo of conagra, mr. connolly, nice to have you with us again. >> thanks for having me. >> you're welcome. i look portfolio listen, i lived off chef borardee in my 20s kids don't eat that anymore. what you are doing to renovate the portfolio to appeal to the tastes of people in their 20s? and so i guess that is my first question >> well, the answer is a lot you could argue that we are executing one of the most -- significant transformations in the entire cpg space and central to the transformation is the innovation agenda. we were focused on frozen food because they fit a millennial lifestyle perfectly. we have to make sure we offer modern attributes and great packaging and super terrific

flavors. we're seeing fantastic traction with our innovation in frozen, particularly with millennials. >> yeah. in fact, i know during your presentation you talked about the fact that consumers 21 to 36 years old with annual incomes and significant have been going up for 30 years in terms of this -- as an audience you wonder what the trend would look like. so what would the trend look like >> it would clearly be better. one of the big story lines in the last few years is that small brands were taking over the world. well, the truth is big brands are still where the action is. why? because the velocities are far better than those of small brands but only if those big brands, those iconic brands have been modernized by way of innovation. what we're doing is modernizing these iconic brands that have terrific household penetration and consumer awareness so that they're contemporary and giving consumers the benefits they're looking for.

had the industry done that five, six years ago, we probably wouldn't have seen frozen fall into a sluggish space. it did but conagra is driving growth into the frozen set again and we're just getting warmed up >> what is it about frozen that is so appealing for millennials and potentially their children >> it's a great question one of the first things that is appealing about frozen is millennials are first generation ever making less money than their parents. so they have to have good value in order to make their household balance sheet work historically though, frozen hasn't appealed to them because it hasn't been the kind of food they're looking for. and essentially when you think of frozen, it's basically fresh food that is blast frozen so we can deliver a clean label product, a natural product, bold ethnic flavors in a recyclable package. the other thing we learned is when they have children, their consumption of frozen food increases by 25% and then as those children age and become 6

and older, it jumps another 26% from there and while we're excited about that, is today millennial parents only 32% of them have children who are age 6 and older. so that means we've got years of runway here if we keep the pedal to the metal with our innovation agenda >> you know, sean, i was taking a look at theresearch that you put out and you say or conagra says that research shows typical consumer is eating anywhere from 7 to 12 times a day. eating anywhere from 7 to 12 times a day which means that basically you're eating almost every single hour that you could be awake which is a lot in terms of your portfolio, that means potentially a big snacking opportunity. you but dukes, a meat snacks country, beef jerky and jerky of all sorts is a huge market at this point we asked the ceo of tyson if we're at peak chicken. are we peak jerky? >> we have terrific brands in

very good snacking categories. we have $2 billion business in snack. and it spans four very attractive spaces. meat snacks, seeds, popcorn and sweet treats the reason those four zip codes are very attractive is they're outgrowing the balance of the snack world by a significant margin and we've got the number one brands in most of those arenas or we've got the fastest growing brands including our one of mou most recent accusation which is the best ready to eat popcorn out there. >> i'm fascinated by what you're doing with slim jims which we know, i mean, kids -- kids eat it all the time. but you acknowledge that once people consumers get into their 20s and 30s consumption drops unless, i guess, flavors change, right? >> yeah. what we found happening was consumers -- male consumers usually eating slim jim, they get to 17 and 18 and then they start to leave the franchise because it's not cool for them

to carry a two foot slim jim to workplace or to college. so they're looking for something a little bit more sophisticated. we noticed we were having leakage to the jerky side of the meat snacks business by upgrading slim jim and offering slim jim premium, we can now bridge that young male consumer from their teens into their 20s and then when they become -- move into their 30s, we have an even more sophisticated meat snack by the way of dukes. we can really run the con continuum here with our meat snacks portfolio of leading brands and they are truly excellent brands and they're growing superbly >> mr. connolly, we appreciate you stopping by today and joining us thank you. >> thanks for having me. >> sean connolly, the ceo of conagra. >> special edition spicy case y queso.

>> good morning, carl. stocks are mixed in trading. the large cap s&p 500 appears to be poised to break a six day winning streak one of the few places you'll find positive action comes technology still trying to hold on to fractional gains there shares of semiconductor stocks, applied materials and nvidia, amd, you name them, they're outperformers today. the moves are helping to propel the semiconductor etf, the ticker smh, to the third positive day out of last four. so we'll see if that sticks around back to you. >> all right dom, thank you for that. we'll check on walmart which was down 9%, close to the lows of the session after the miss on earnings and some of the strong news on comps and so forth right now shares are down almost 10%, $94.52, below $95 that's a big reason the dow is off. we'll have more from the conference and boca raton with the ceo of hanes whether "squawk alley" starts in a minute.

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♪ ♪ good tuesday morning i'm carl quintanilla dow and s&p looking tend of a six day win streak a big part of the dow's losses to day though can be blamed on walmart specifically and the selloff after earnings stocks having its worst day since october 15th as we said earlier this morning, on earnings, gapping down on earnings by the wot