good morning it is 8:00 a.m. at facebook headquarters it's 11:00 a.m. on wall street and "squawk alley" is live ♪ good friday morning. welcome to "squawk alley." i'm carl kinquintanilla.

the fed releasing the monetary report to congress ahead of testimony next week. we go to cayla toushy. >> in the blue print, the new chair sticks to the script touting data base decisions, a strong labor market, and inflation that is moving toward that ever important 2% target. it should be noted that in this report the majority of fed members said they saw inflation at that target by 2019 and stabilizing at that target over the next few years. they did say that they're monitoring the effect of online retailers and international effects on that inflation level over time. for unemployment, the fed report said that hourly wage growth has been moderate but the labor market is near or a little beyond full employment at this point. for 2018 and 2019, the median estimate is 3.9% ticking up to 4.0% in 2020 as for the markets, the fed report pointed out that

notwithstanding recent weeks, that is the mention to volatility that we've seen in the markets that equities remain higher and bond spreads have been narrowing this fed report echoed the minutes we saw on wednesday saying that valuation pressures remain elevated, specifically in equities and in commercial real estate they said banking risks are moderate corporate debt levels are high and that it was communication from the fed in the fall as well as the expectation of tax legislation that led the curve for rates higher throughout the fall they said that tax changes led the fed to increase their gdp estimates but also are leading to fed funds uncertainty they're waiting to see how that tax policy plays out over time for gdp, the 2018 estimate has been raised to 2.5%. 2019, 2.1% and 2020, 2.0% this is the blue print for what chair powell will say next week in front of congress where, of course, we'll hear more from him

then carl, back to you. >> all right a lot of good information. thank you very much. meantime, the nasdaq higher in the session tech stocks closing yesterday in the red. for the fourth straight session unable to hold those intraday highs. the longest losing streak for the nasdaq as it's november of 2016 for more on that, let's get to larry hafferty from caveli funds and research analyst from guggenheim happy friday good to see you both in light of what we just heard, when the fed sees valuations, larry, of equities elevated, does that apply to tech specifically >> if you look at the f-a-a-n-gs as kind of a cross section of tech, i think three of the faangs valuations are fine i'm very, very comfortable with google i'm very comfortable with apple. i'm comfortable with facebook but facebook is, i think, rapidly hitting the wall of its addressable market but i'm very weary of amazon and netflix. so it's kind of a tale of two

cities some of them are okay. some of them are not and it's individual situations sfwlchlt wheth >> when did that view crystallize? >> i have not been positive on amazon and netflix and the reason is that they don't make what i call an economic profit the market has given them basically a blank check. you spend 100 times cash flow to endorse netflix buying content and ten times cash flow for disney or time warner. i'd rather spend ten times than 100 times. amazon, jeff bezos coined the frayed "your profit is my opportunity. and it sounds great but if you listen to larry kudlow, profits are the mother milk of the market so if jeff enters your business, your stock goes down and the reason is because the market doesn't require him to make a profit. and he has a zero cost to

capital. and basically that's big risk the economic system. and i think at some point, carl, amazon is going to run afoul of the anti-trust people. i think it's a situation very similar to standard oil in the early part of the 20th century >> we actually had this conversation earlier this week "new york times" magazine came out with a big feature they actually laid out some of the argument there for google. but you think amazon is the one that can really get tangled? >> i think amazon is much more problematic than google. if you look at standard trust, the monopoly was in distribution it was in refining and in pipelines. and in order to effect the monopoly, standard trust had to have a co-conspirator and the co-conspirator is the railroads which afforded rockefeller discounts so he could underprice the competition. and basically drive them out of business in the case of amazon, the co-conspirator is the market the market has given amazon a

$750 billion market cap to basically destroy everyone else's profits just consider if you're a business and the government decides to get into your business, your stock is going to go down. the government has two economic characteristics. number one, it has zero cost to capital. and number two, it doesn't have to make a profit that's the same characteristics that amazon has. and our economic system can't really allow it to continue. i think there are major issues and there is more and more commentary coming out about it you had scott galloway on. >> yet, rob, at the same time, a surprising quarter for hp enterprise the server business doing pretty well despite the fact that the cloud triven driven by amazon us networking and storage doing especially well wlach what to make of that is it share gains or something across the whole enterprise hardware marketplace investors ought to be paying attention to?

>> i think with hewlett-packard you have two things. one is some recovery i mean, they -- this quarter was good but last quarter was bad. so there is some recovery that hewlett-packard is seeing. and i do think corporate enterprise, i.t. spending is getting better there is a macro tail wind there for the first time in a while. and hooewlett-packard announceda big buyback. talking more broadly about tech valuations, if you look at hpe or apple which i really like, i mean, these stocks are trading well below market multiples. i don't think one could argue that the valuations are stretched at all >> and you have a buy on apple, robert we have this report out from goldman sachs today that apple is least loved of the tech companies among the hedge funds. why do you that i is >> i think one of the worries that people have had for a while with apple is they're already so big. you know, how can they continue

to grow? their challenge is you're pushing $270 billion in revenue, how do you grow that big a top line but i think with apple, one of the most interesting things is they are continuing to grow. i don't think they're going to grow at the rate they have historically you know, the numbers are pretty darn big but i think we're going to see the best iphone growth this year than we've seen in the last three. then they're growing in services and they're starting to grow in other products so it's, you know, a model of selling more to the customers you have and apple has, you know, the best customers out there they have the high end demographic that spends. >> larry, quickly, i know you're big on the gaming business amd moved side ways for the past year though its rise in chip is popular. nvidia has been hot. what are the real ways you see to play this that investors might not be thinking of >> well, i think the big winner here has been sony and the reason is that these

newer games basically encourage network play and sony owns the network. and they have marvelous financial disclosure if you look at sony, they break out the network profits. and the network profits or the network revenues accelerated to 40%. now, jon, the network is bultd you gement tt the network effect they're dropping through and have 85% rate. this is a hidden jewel within sewn dwla sony that is absolutely terrific and the gaming companies, i like them all but some of them have gotten very expensive electronic arts is 25 times and that's an awful lot of money to pay for a gaming company sony is around eight times so that's my best horse in the game hunt. i just love the game industry. the smartest guys in the room in the game industry are ten cent and they're trading at about 35 times earnings i think their cash flows are

going to accelerate because we chat is now accepted in china as a transaction mechanism. so it's going to get more engagement the engagement is going to bring ad dollars and ten cent's cash flows are going to accelerate. sony and ten cent are the plays there. and in our fund, we own ten cent which is one of our biggest positions. naspers owns 35% of sony and basically you get the value of naspers if you market to market is about $80 billion ahead of the market cap of nasper's stock. can you drive a fleet of elephants through the valuation discrepancy. >> the renaissance of sony is something we don't talk about enough thank you for the discussion appreciate it. it is almost a wrap. the winter olympics coming to a close this weekend of course, we'll have closing ceremony and one last chance to talk with andrew ross sorkin in pyeongchang. >> how are you before we go, i want to show you

a couple interesting things here one is a company you got to keep an eye on. this is in addition to all the coverage of the olympics we want to take a look at some of the really most innovative companies that make up south korea's economy. we took a trip to seoul to visit the headquarters of kupang one of the fastest growing e-commerce sites in south korea. and the company's coupon is the amazon of south korea. over 50% of the country's adults have the app installed on the smart phones >> our motto is let's create a world in which customers ask how did i ever live without coupang. >> it was founded in 2010 by bom king, a entrepreneur that dropped out of harvard business school to start the company models as groupon and then ebay before the company pivoted into the current business not will to improve customer service. >> we realized consistently, day in and day out, half of our customer complaints were around the delivery experience. that's why we decided to make

this massive investment and fulfillment and last mile. >> it's last mile network carried out by over 4,000 delivery men known as super men to deliver orders within 24 hours as part of the rocket delivery service. >> this is the first order in a while, you'll say mr. sorkin, welcome back for this is the first order, we say welcome to coupang. >> this is the fifth largest market for e- commerce by 2022, it will be the third largest behind china and the united states. >> if you just take a look out at the windows here, the density in korea, the density in seoul, i mean i lived in many u.s. cities you just can't find this kind of density in american cities but that's actually how a lot of asian cities are evolving. this is the future of how people are going to live. and there are a the love problems in this market that we're solving that haven't been solved before. >> kim sees seoul as a template for how it will approach its

future markets coupang's investors are soft bank and black rock and the speculation is that the company could soon go public in the united states by 2020. i would bet we'll be seeing them either at the new york stock exchange where you are or at the nasdaq very soon in meantime, carl, you know, we're not going let you off the hook here. our coverage in pyeongchang coming to a close. you started it and did a remarkable job it's been a great two weeks here we put together, as you would imagine, a little trip down memory lane.

♪ ♪ a lot of slow motion of us drinking, basically. so we're going to go do a little bit more of that right now but, carl, thank you for everything did you an excellent job it was really fun to spend time with you

>> it's one of the great assignments, a privilege to do it i think everybody should try at least once to go to a games if you love sport, even if you love business stories everywhere. not to mention getting to know a culture for more than just a couple of days >> all very true i will see you and i'll see the whole gang back in new york next tuesday. have a great weekend and enjoy the closing ceremonies on sunday night. >> safe travels. great stuff from both of you >> thanks, andrew. andrew ross sorkin social media companies continue to feel the heat over fake news. joining us next, a former facebook insider who cure yated news general mills buying blue buffalo. we'll look at the next brands that could be targets for take takeover and the olympics are nearly in the books. we'll take a look back at all the fun we had as you just saw

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some more news on martin screlli. it is the last hearing before he is sentenced in march. his attorney just leaving the courthouse we had a chance to catch up with him asking what he expected of the sentencing he said he hoped the judge would be lenient he didn't want to speculate

whether he would get my more jail time than he served we didn't see him leaving the courthouse he was taken back to the detention center where he's been since september when you recall he was remanneded into custody after posting a bizarre series of facebook posts where he seemed to be asking his followers to grab one of hillary clinton's hairs and offering them $5,000 to do so he was convicted in august, of course, of three out of eight counts including securities fraud. today is largely about the amount of losses the government argues he caused to investors and to his biotech company as well as the forfeit tour amount the government is seeking in punishment for his crimes. they're seeking $7 million from martin the attorneys argue the losses and forfeiture because they argue he made money. we'll be waiting for the sentencing date on march 9th back to you. >> thank you very much for that. facebook, at which time

eastern youtube are under major scrutiny for failing to see press fake news and the manipulation of what is trending on the sites investors wondering if the issues and tax issues will have the long term impact on thez companies. joining us to discuss it is kara swisher and scott galloway from the stern school of business good to see you both again it's been a while, kara, since we've had a chance to talk it comes on a week where that youtubal youtube algorithm was talked about. >> we just talked with youtube last week at code media about this issue she said they were doing something about it i think it's still an issue. when these fake videos rise in popularity, youtube, you know, doesn't do anything about them the same thing happened on facebook i think the quote they used was "our platform doesn't correct for people who lie." and maybe it has to. but it's going to be an on going debate as these videos rise higher and higher. it's a problem because it

creates a cesspool as i talked about. i don't know for about 18 months and ruins the platform essentially. >> scott, it seems like we're in maybe a third era of how tech deals with media first era is stay away from media. you know, aside from microsoft getting involved, you know, a decade plus ago. everybody seemed to think it was a bad idea then it was use media but don't make any decisions just sort of be a platform what is this third era how is tech going to navigate it >> oh, gosh. that's a correct question. my sense is that we're coming to the conclusion of the observation that tech is going to have to be forced to employ a very expensive attribute and that is human discretion algorithms have a difficult time deciding what is false verse

yaus wh versus real news look at the fact checking they put out. and the most sophisticated technology in the world can't stop obviously false content from not only getting on a platform but being shared and circulated so i don't think -- i think this is going to have to come -- i don't think it's going to be a company led revolution i think it has to come from parents or citizens or regulators because the smartest people in the world can't figure out a way to prevent this content from being posted on their platforms. >> right they also benefit from it. they're making a lot of money from advertising and everything else i think that's the link you have to make. and regulators will be the worst outcome here because they don't really understand these platforms and will probably use, you know, use a hammer when something more sophisticated is needed what we really need to do is there needs to be an outcry among the users and companies have to understand they're moving into a new era of responsibility which i, again, i sound like a scold but it's the same idea that they have to take responsibility for

their platforms. it's for the better of their business going forward they don't want to just be this freewheeling wild west platform where a false video can rise to such heights and be zrbdistribu. it's irresponsible and woefully irresponsible. >> the idea of bringing more human element into it, i mean, humans have biases as well they make mistakes as well they're the ones that write or encode the algorithms. how do you balance for that as well >> so you're right humans get it wrong. but organic intelligence tends to get it wrong a lot less than artificial intelligence. and kara's point is exactly right. the tobacco companies were paid not to understand the link between tobacco and addiction. guess what, they were befuddled by the issue the nra is trained not to discover the link between mass shootings and guns and now you have social media and tech platforms effectively

paid not to understand if you don't screen your content and you don't screen your advertisers, it -- you know, it can result in some very bad outcomes the reality is when you're paid not to understand the link betweenal algorithms and no hume ain't vengs and bad outcomes, you're not going to understand it until advertisers start pulling the advertise clg is very difficult right now because we have a duopoly, unilever and p & g need google and facebook more than they need them. but until we see advertisers en masse pull advertising, you're going to see the same problems but only worse these platforms have been weaponized by people hop are focused on exploiting their weaknesses zblr >> to that point, brings us to snap which did have some shane thrown at it by a major advertiser this is a tweet deleted by maybe lean the company actually pulled some followers and asked if it should stay on snapchat after admitting

that views had dramatically dropped. of course, we all know that kylie jenner tweeted earlier in the week she barely uses the service anymore. when they're willing to complain about engagement but not the quality of the product that's being engaged with >> that's problematic. they were bad. i think kylie jenner is worse, i'll be honest she has enormous influence selling a lot of products. and for her to say that was probably more problematic than mayboline. that particular kardashian is very powerful influencer in terms of products moving and different things but i'd be curious to know what happened why they put it up and then took it down. and what occurred there. but the fact of the matter is a lot of people just don't like this redo that they have just done i tweeted a text from my son saying mom, zero people like this and he's a huge avid snapchat user he still complained about it the other day. i think they have to think

really hard about their customers, what product they want to do, and also, you know, continually dealing with the pressure from facebook's instagram. it's a really tough situation for them they have to be very careful of how they move going forward. >> scott, at what point are we going to be able to extract the moral of the story from investors from what has gone on with snap? i mean, investors have no influence, no voting influence over what the company does and now the company has done something that is ticking off at least a significant percentage of the core users. >> yeah, absolutely. i'm sorry. go ahead, kara >> go ahead, scott >> yeah, we have a 28-year-old that oversees a media company that is five times the value of "the new york times" that can't be removed from his position what could go wrong? and we were all hoping to a certain extent that snap would be the facebook of video as we need a third player. but the reality is that facebook

is facebook and instagram who has taken the foremost popular apps in the world and squared their guns squarely on number five, snap the moral of the story is simply -- is simple. en that is monopolies are bad. and when you have one company that can potentially -- they can put in any other company out of business and advertises have no choice but to gut either google or facebook, it's bad. pow power corrupts 104% of the digital marketing going four players. meaning if you're not facebook or google and in digitsal marketing, you join the yellow pages and newspapers and your business is in structural decline. >> that brings us to the cover of "the new york times" magazine this coming weekend after having spoken to charles duhig about his piece yesterday, guys. it's good to see you both together again until next time, kara swisher and scott galloway thank you for joining us today >> thank you >> and as we head to break, blue buffalo surging after general mills announced they'll buy the company for $8 billion

shares are up almost 17% why the pet food space is prime for takeovers and it's been three weeks since the selloff began. here's where we stand today. the dow is up. all the major averages are up today. but we are poised at least for the dow and the s&p 500 to end the week lower the nasdaq has been the outperformer this week, up .7% r e week more "squawk alley" straight ahead.

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i'm courtney reagan. here is your update at this hour president trump commenting on the parkland high school sheriff's deputy who didn't engage the shooter who killed 17 people as he departed the white house for a speech before the conservative political action committee. >> when it came time to get in there and do something, he didn't have the courage or something happened but he certainly did a poor job.

that's the case where somebody was outside. they're trained. they didn't react properly under pressure or they were a coward the u.s. expected to opt embassy in jerusalem in may according to multiple reports. the move from tel aviv reversing decades of u.s. policy the opening will coincide with the 70th anniversary of israel's founding french customs discovered an impressionist masterpiece by dega in a suitcase on a bus. the painting was stole non 2009. it has been verified so interesting what you can find in a suitcase. that is your update at this hour for now, back over to "squawk alley. >> yeah. in a suitcase on a bus thanks, courtney an $8 billion deal in the pet food space creating a lot of buzz today including who might be bought next let's get to dominick chu. >> there is not a lot of stuff in there with independent food companies within it.

if you take a look at the overall pet food business, the reason chen mills wants to get into the blue buffalo premium pet food side is sit's a segment growing at double digits you combine the consumer products on the human side with the pet food side, general mills not a company that is really in pet foods right now. this gives them the foothold the reason why, if you take a look at the numbers behind where the growth is coming from, americans spend, i mean billions, not a few here or there. last year an estimated $70 billion was spent on pet products whether that is just the food itself or treats or vet visits or over-the-counter medications. according to the american pet products association, $69.4 billion estimated just last year and that's up from $55.5 billion just in 2013 if you're looking for where the big players are, there is only a handful of companies out there that control the vast market for pet foods globally and certainly in the united states mars is recognized as the

biggest one out there. mars has big brands like pedigree and the other brands out there, jm. smuckers has milk bone products. and then you take a look at other names out there, the boutique names, nutro, royal canine for pet lovers out there. the brands are oenld by larger conglomerates as well. so as we talk about who's next, it's very hard to determine whether they're independent companies that are not part of larger con glglomerates that ar independent. but the pet food side of things a huge growth market and one of the reasons why they want to go after general mills blue buffalo. back to you. >> thanks a lot. thanks, dom. now let's get to seema mody back at headquarters with the european close jon, european stocks relatively flat for the beginning -- for the week. that has pretty much been volatile for the broader global market setup take a look at the german dax on track for the second straight week of gains for the first time since november earlier you had the yield on the

german ten year fall to the lowest level since the end of january. slightly different story as we head to the close here moving on to some stocks in focus in europe, the biggest laggers including french auto parts supplier valeo on a drop in 2017 net profit that stock down 11%. and then take a look at international consolidated that is the parent of british airways reporting fourth quarter revenue shy of expectations. royal bank of scott land also under pressure it posted its first full year profits since 2007 but investor concerns about restructuring and litigation costs are weighing on the stock. it's down just about 5%. and an interesting story playing out in the telecom space bt group rising after uk regulators this morning eased price controls on the company's broadband network. that stock up 5% deutsche telekom higher on an analyst upgrade by 3%. and we finish with this year's biggest weekly jump for the italian ten year yield up 8%

amid uncertainty surrounding italy's upcoming march 4th election polls have pointed to a hung parliament 2.1% on the ten year some familiar faces there, carl, from sylvia buetter la xoeny >> all right thank you very much for that our seema mody back at hq. when we return, social media companies facing new criticism following those fake news posts connected to the deadly florida shooting when we return, we'll get insight from a former facebook nside wloe inside who curated news for the social network ♪

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i want to get to brian sullivan >> you flow, it's interesting. in years past, when there is conversations about increasing the difficulty of obtaining a weapon or limiting certain weapons, we have seen gun stocks rise the idea being that if there is concern people go out and buy more that is not the case now this is a very different situation than what we've seen in years past. look at the two gun stocks and the biggest ammunition company you have american outdoor brands, that is formerly known as smith & wesson. that stock is down you got sturm ruger. that stock is down vista outdoor maybe less well known but that is a maker of a lot of things including some of the leading bullet companies

like federal premium and spear they mike bike helmets as well but they make a lot of ammunition so we're seeing sturm ruger, the company formerly known as smith & wesson down a number of percent. vista is down 1% as well so a different vibe in trading reaction than we've seen in years past that may be indicative of a different social movement going on right now, guys and just breaking moments ago, we've seen a few companies that cut ties with nra related discounts or associations with the national rifle association symantec, the latest tweeting this just very simply, symantec stopped its discount program with the national rifle association. that makes a number of companies, guys, that have gone ahead and said we're ending any kind of a business relationship that we have with the nra. we'll bring more on the stocks and more if we get the companies ending the relationship as they break. we're going to bring them to you. back to you. >> all right thank you, brian and in the wake of national tragedy, social media companies

are in the spotlight for their seeming inability to contain and control fake news. either through algorithms or real people. joining us now is ben fear now, former news curator of trending topics, a contractor working for facebook and is now deputy editor at "newsweek. we should make clear you were let go by facebook for violating nondisclosu nondisclosure agreements and that had to do with you wanting to let the world know how facebook is making decisions about what's acceptable to say, whether inside facebook or on facebook would you do it again the same way? and has facebook gotten any better about how it communicates around these things? >> i have to say on live television the producers are very persuasive. the trending team with curating that, just having the human element of trying to beat fake news i feel like at the end of the day what the curators were doing there to do is pick off these

headlines which are very craftily made which are there to, you know, to confuse people. and so when you have these stories that are circulating, our job is to look at the algorithm and sort of massage it is the word that we were told to ensure that something like the onion or, you know, a spoof site, things clearly like trying to hop on and on going trend in order to make sure they rise to the top. and that we were attempting to just make sure that like none of those stories would come up as if like facebook was pushing the top story as a real story. >> can you explain how the process worked for example, let's say you saw a headline that you had a question about. do you take it to a superior who then takes it to another one before something actually changes? >> it was similar to the news type where you have the trending topics we would have we would see what is high on the algorithm which is honest, if you look at the raw, like, words that were just what people are typing in, you know, all of

those trending topics. if we did not curate them, would probably just say, you know, kim kardashian, kim kardashian and donald trump, donald trump, donald trump it was tlos create wider variety of stories that were there the wider issue with just facebook news con sum sgs i feel like i'm old enough to remember when facebook in the lawless period of facebook when, you know, the biggest point of it whats to see if your ex-had gotten married >> absolutely. >> but then it's changed now to the point where my grandparents are on it. people who use it, you know, the numbers came out right when i first started on the trending team that was 2015 heading into obviously 2016 which changed every conversation but the news that was coming up at that time, you have to look at what people -- the amount of people that are getting their news solely from facebook. i know everyone likes to pick on millennials. i feel like if you look at fake news in these large groups like -- if you have that bubble

of news, you're going to get that that fake news >> even with thousands of curators on staff. >> you could continue to do that but pro actively as far as -- you know, with them trying to look at live stream videos, you know, to have people going through all these thousands and thousands of things, if you have people that are going on there to seek their own -- to reinforce their own mindset, then the facebook grugroups for. you can go and get your bubble of information. >> how do we fix this? we were having the conversation earlier on the show, do we need more human oversight at facebook in terms of curating this content. is it a matter of rewriting the algorithms and setting up a different methodology for the humans is it something different? do they need to get out of the news business which they're not technically in al together >> even facebook, they were

backing their way into being a news media company which is why when that data came out that showed how many people were not just getting news there but exclusively getting news on facebook i feel like that opens you up to, you know -- remember, they're just a vehicle but facebook then had to sit back and be like okay. 75% of a certain age-group are getting all of their news from here, then you need the human curators an algorithm can't do -- things fall through the cracks. right after they fired and physically walked out all of the humans from the trending office, the next day there was some bogus megyn kelly story that went up that sounded and looked like, you know, exactly like a real headline would be but it whats just completely made up. >> you were pretty fresh out of colombia journalism school when you started working on this facebook team. is it clear to you who the top journalistic mind at facebook was and is and how much real influence that

person has over the company's strategic direction? >> i don't know that i feel like it's the difference between -- i call it the men low park mafia there was such a difference between the new york office and out in california because we were always receiving this micro managed sort of things about certain stories like we want more local headlines don't make just trump trend all the time and i think that it was more -- i mean end of the day things to make sure that something that was just blatantly false didn't show up on the trending news bar to look like we were promoting that story as truth. >> before i let you go, i wonder if your mind, can you envision a day where this is managed? where these failures don't happen or is it really like trying to push back the ocean? >> i think if you have such a concerted effort from people whether you want to say it's troll farms or people who just like dispersing lies out there for political reasons or whatever, it's hard to say that

facebook ever could pro actively, you know, take down fake news. i feel like if you're going to do that, you know, take back to your question of someone running it at the top, we were always just receiving information it was from people who were sort of unnamed like sort of like tailoring the news but we never actually would make a decision like this story is better than this one we want brightbart or "newsweek" story. it's just hard to say that there is a way out on that >> okay. well, if it can't be done right, maybe it shouldn't be done it's not as if this is something that's been around for thousands of years and it's the news feed. that is just the way it is >> yeah. >> thank you >> level of publisher, you know, responsibility >> maybe they need to figure it out. yeah change the world thank you. >> thank you as we go to break, talk about volatility dow is on track to move 100 points or more for the 23rd time this year. there have only been about 40 sessions and whateine d n the year ago period. more "squawk alley" in a moment

straight ahead

coming up, with tech up almost 10 march in two weeks, we're debating whether that comeback is too much too soon and whether another drop is coming. plus another prediction on where the rates are heading in the weeks ahead. and one analyst with the top transport that's about to jump >> scott, thank you.

let's get the santelli exchange here >> hi, carl. fridays, important closes, and this one especially important. as i look up at the board right through the euro dollar options bit, we settled at 288 last week, so it's going to be a close call, why is it important? this has been a unique year to interest rates they've been tight for the most part on a closing yield basis, and they just keep marching up, though the ten-year is a noticeably interesting maturity. twos, fives and 30s haven't done what 10s have done all year-to-date charts to be the same to me it's just another triboritizeed fact we settled last year at 241.

we're up shy just the 50 basis points so you see every week weed a higher yield every singed week. only tile the market came down -- not really came down, but hovered in the 2 of 6, kind of similar, but really noteworthy i think it's important many strategists will lay off to see -- is that you and i aren't the only people paying attention to that. there's many eyes focused on that

and many timesself property sizing aspects occur a lot of things, so the long and the short of it is, do many people believe that it will test 10 p 3% let's just so where he close today. back to you. >> thank you, rick santelli. coming up monday, be sure to tune in early for "squawk box," when becky quick sits down with warren buffett in omaha for an warren buffett in omaha for an interview you won't want t fidelity, where smarter investors will always be. miss more "squawk alley" after this

take a look at the s&p, now up almost fua n% benefitting up almost fua n% benefitting from clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. more "squawk alley" continues in just a moment.

the nr:and gun makers, following last week's deadly florida school shooting. blackrock says it will engage with manufacturers and distributor. meanwhile, the first national bank of omaha plans to draped the nra-branded credit card. three company responses -- symantec says it's drops the nra program, and metlife said it decided to end our discount program with the nr:, and snow insurer chubb says it will stop underwriting nra insurance for gun owners so a limited sample here but notable. >> and all of this as governor scott unveils plans to increase safety at school and make sure that folks with mental illness

can't get firearms in the state. >> folks until 21. it's hard for me to draw a line between what's happened here and these movements against discounts at the nra it will be interesting to see if it develops any further than that or if it's just this basic reaction. >> don't forget berkshire and the shareholders letter tomorrow let's get to the judge welcome to "halftime report." i'm scott wapner the top trade this however -- the great recovery while stocks have surged back following the correction, it's the nasdaq that's yow perform, but no is tech overvalued? kevin o'leary is with us today from miami we do want to begin with the marx which is recovered more than 80% of the losses from the bottom,