already, we want to thank kevin o'leary for spending the morning with you it is wonderful. >> wonderful to be here. >> that does it for us, and melissa, right now it is time for "squawk on the street. ♪ good morning, a warm welcome on "squawk on the street," i am with jim cramer, carl and david is off today >> good morning wolf >> thanks for having me here >> the futures is down the nasdaq has more naive daega days the dow is down 1.5% european markets for you there

the pound is up this morning on slightly elevated talk of a rate hike on thursday bank of blaengland on thursday. it is exported suffering elsewhere like in germany and tariffs talk will be on the agenda as well there is the bund yield for you and the 10-yr quote note 2.2% our road map starts with u.s. stocks for negative opening concerning of fast unexpected rating increase and a potential trade conflicts. shares of facebook is on the scrutiny of consulting firms of tens of millions of unexpected users. petitions in the white house to

hold plans on tariffs in china >> this >> a two day set meeting is set to be tomorrow jerome powell will hold his first post meeting news conference jim, rate hike, does it concerns you? >> i think every time we get a rate hike, there is people say it is not shocking or devastating because we have been living on cheap money. my experience is this federal reserve has figured out how to do it right. you have kind of have your head in the sand to not recognize if you are going to do it as right as you can i heard someone, i am not mentioning any names this morning talking about how it could be shocking and three hikes. wolf, why is that shocking

>> well, it is priced in as well >> and the idea that jay powell is an idiot. you know what these are people who happen to be brilliant that's not the way i approach this >> he generally has been relatively hawkish we heard last time that things have improved since the turn of year even though a couple of days where retail sales could be focused on that. could his term be for -- >> there are problems in housing and there is not a lot of problems in non residential construction, that's the strongest part of the economy. but, look i think that the idea that he's somehow on autopilot which a lot of the pairs presume

is -- >> what matters most fed funds rates or longer term yield yield? >> longer term yield now we did have a 30 basis point hit and boom we had this january mid to february, incredible roll over because of the vix. when you have a stock like we are going to talk about like facebook, you start to say look how do i value of this how do i value it? let's just sell. if i ask you how to value, i don't want to be in. that's kind of what i am seeing on some of these stocks. >> aside from the fed, nasdaq is down about a percent or so, sounds like it is a negative week on the surface but so much better than what we are seeing internationally. the nasdaq is still down do you take encouragement by

that or still concerned? >> i think we are so ethnocentric people worry of the world slowing down i don't see a slow down. i see political problems can cause a slow down. one of the reasons why we are so involved with larry kudlow if you are going to put tariffs all over the world then the economy is going to slow there is a lot of stories in our power how housing are slowing. housing are hard to figure out because they cannot build as many homes as they are able to or like to everything >> we'll talk more about this and a little bit facebook falling in the premarket. the social network for not providing more information for how a political firm hacking

into the data. the company is conducting a comprehe comprehensive review lawmakers are asking how the firm obtain that information in the first place. jim, so many angles to cover on this the main reason the stock is down is lawmakers rather in the u.s. or u.k. or eu is the latest we had them coming out saying the president of the european parliament, they'll investigate thoroughly, everyone is coming out against this does this increase the headline risks? >> i think it makes people sick of it. there are people that say it is the worst of the fangs i think the trust feels like a lot of people -- you know what, if i am going to pay say 23 times this year's earnings or 19 times next year. i don't want to get up in the

morning and see a headline everyday which says this company is running a foul and congressperson center. i think there is a sense that why is facebook more aware that the power that it has. it makes it so they seem naive when you read their story, they don't seem to have a compelling narrative. >> do they make decisions too late in the game going into one aspect of the ft story on this. facebook decided to band this company but they knew about this breach as long as two or three years ago. even if they felt, sorted out of that breach. should they acted sooner to cut down on this >> i think that what people are dawning on facebook people that we are not a common carrier. we are not a greyhound bus we are an organization that may

be, we don't want regulation but, they are beginning to court regulations by not being consistent this story in particular, if there is a rush in connection, wolf, and the time is never going to let up. >> we should talk about cambridge. >> the company says this is the data half company, they have been in the cross hairs of the u.k. and allowed them ways in the u.s. they worked on the brexit campaign and peopjust two weekso the ceo, andrew nix testified before the u.k. parliament, let's listen to what he says in relation to fbi. >> any of the data comes from facebook because i i think you can

predict what somebody is going to think about something or indeed how somebody may vote and did you may know more about them -- within a few simple steps, is that right >> i read a similar article. it was written by an academic. i cannot comment if that's true or not we do not work with facebook data, we use facebook as a platform to advertise. >> the comment there from andrew nix. this is not something that facebook has said. nix said that we don't clirworkt them or have the data. clearly it does feel that some

people are involved in this and trying to dodge the issue. >> this fellow that we listened to is close to the luke oil. it is a government-run company how well did vladimir putin do in the election in he's a landslide. one of this things i see about this again there is just a an -- will, from looking over the weekend, okay, let's see, facebook let it happen and they did not let it happen and they're suing the observer. give me -- att i cannot because they're about to get sued. well, give me google maybe they should take a percentage indeed, or how about amazon i am looking for stocks that's not controversial and i come up with, i don't know, i thought of con head but the utilities is

controversial. >> facebook is 4% decline in the market are you surprise of the extent of that? >> yes, i am in the end, i am stuck with this i am stuck with the idea that this company has revenue growth of 47%, that's pretty good the stock is selling at its 19 times earnings and it is becoming to become what i regard is discouraging. now, you are selling well through the valuations of clorox or proctor and gamber & gamble. is that better to own with a 3% yield than a company with 40%? >> let's try another risk that you mentioned already that relates to all these tech companies which is possibly bigger taxes coming and slap down for a competition concerns from places like the eu or the

u.s. as well it is not much of a bigger risk and we are not there yet big risk and here is why because when you have companies that don't realize that they have too much market power and don't handle it correctly, don't put on a better face so to speak, quite an american play, i come back -- wow, guys, get ahead of it. don't be like microsoft. it is what we are all worried about. when steve palmer attack the justice department we don't want anyone from facebook taking on the government but this is how you get it this is how they take on you we have government by tweets so it is harderto figure out wher the assault is going to come from next. the political risk again is from them being too powerful. i think they don't understand, will, standard oil did not understand they were too powerful wait a minute, we build this oil company, what's with teddy

roosevelt. it is a popular stance to attack these companies. they don't have any friends anymore. they don't, will >> at the moment, i guess as you say it is still tweets and comments down. >> that's why you got to be careful of selling the stock i recognize that as it went down over night i said okay, one of the problems is russia, new york times and observer -- strange strategic communication and ousted and nix >> in other words, stay away >> what about him? >> are we waiting for october 20th, 1973 saturday night's massacre where we wake up and sessions is gone and new attorney general is coming in and mueller is fired >> are you concerned about that? >> yes >> well, larry got in, you must

like that. >> well, he's not the chief -- >> stepping back of the change of membership in the white house does it matter as much as some people are concerned about because the economy is still strong >> we are recovering from a minus 1% opening >> we are getting started here, so much more is coming here. here is what gregg hayes told jim on "mad money. later with jeff gennette of macy's ceo and let's take a look at the future 'lbedow is down 140 points wel back here in a couple wel back here in a couple of minutes

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welcome back to "squawk on the street." business groups are sending a message to the president on trades the hope plans to impose tariffs on china saying such a move would result in consequences for

the u.s. company jim asked hayes on the impact from "mad money. >> boeing is the biggest customer that we have in the aerospace system side. a trade war nobody wins and i think the fear is if we get into this tiff for tafs on tariffs, that'll be a problem hopefully the chinese react which they have so far which is a pause. it is a concern. >> jim, how much of a concern is it does the g-20 give a root cocalm some of these down >> secretary mnuchin to do something or larry kudlow.

this is not good for business and of course, boeing use -- we tend to view china as being one giant customer i think you will hear this a lot more the party line is look, we all do a lot of business business is going to be impeached by anything that you do on a trade war. so here is the narrative as i see it okay, there is a group of american workers who'll be protected and then there is just all these other companies will be hurt. i know the pete navarro's wing of the white house says it is not easy china did not bend the rules then we'll do well so there is two sides to every story. >> they're some kind of

re-negotiations are sensible the administration is going at this in a wrong way. >> we have been in the trade war for ages and done nothing about it gregg hayes says a trade is good for no one if you are looking at two sides of this, gregg is saying we are doing great. the president is saying they have been crushing us. so let's finally stick it back to them. gregg hayes wants to sell as many planes as he want he's not a selfish man, he's trying to do the best for the united state technology. >> the new governor of the people's bank of china who spent 14 years of education in the united states. the new governor of the bank of china, maybe there is some common ground to talk about that tell us about gregg hayes' interview. we can listen to what he

mentions of the possible break up of the company. >> i heard of a lot of investors today some of them say absolutely you need to break up the companies because elevators have nothing to do with jet engines. other - you will lose some of that if you break it up. it is something that we need to think through and the process and we owe investors an answer by the end of the year >> owe investors answers by the end of the year. what do you recommend it will be >> i think it is going to break it up if the stock is not going to move. we are going to do what's right. the board is brilliant and people understand whether or not it will make sense and what elevators had to do with climbing and control and if the stock stays right here, i think they'll take action i think the risk here are not

nearly as good as the rewards. >> very nice >> thank you >> we have much more to come here including cramer's "mad dash." >> we are about nine minutes from the opening bell. s&p 500 is down at 12 and following a decline of the nikkei this morning. more "squawk on the street" from the new york stock exchange, straight ahead tomorrow, it's a day filled with promise and new beginnings, challenges and opportunities. at ameriprise financial, we can't predict what tomorrow will bring. but our comprehensive approach to financial planning can help make sure you're prepared for what's expected and even what's not.

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following news over the weekend of the possible data used from other companies. much more to come here on "squawk on the street. we are back in a couple of minutes.

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down triple digits on the dow. time now for cramer's "mad dash." >> this week, icahn took a big stock. martin franklin who sold jordan to n to. >> newell i think martin franklin got to be pleased i think this the type of thing that martin franklin wants to see. maybe this thing is dying down >> so they got four out of nine board seats total.

>> why didn't you mention on the carl icahn, these are all icahn's picks. sometimes he gets in and creates a positive reaction and this is what i think the company earnings to be paired by some real issues, like the problems at toys r' us , these guys are not any good at their jobs they had some end markets. >> this is a sort of support of what was going on but once ak s accelerated in change management >> a new chairperson as smart as campbell is welcome. when you are selling at toys r' us and you got businesses like yankee candles and don't seem to be working

>> it continues to be the focus of various actors and investors. we'll talk after the opening bell the opening bell right now s&p 500 at cnbc. here is the big board. kelly services of our work force provider and evoqua around about 4.0% right now for the s&p 500. >> so our markets are not as bad. i always struggle is -- will, i think a lot of people want to hear your take from the lock step the idea that we are waking up

s seeing it go down. we saw japan down and perhaps apple is switching suppliers we import a lot of negatives and we don't get a lot of positives. >> you got to look at what the reasons are. the fo if you consider japan, germany, a lot of that at the moment has been trade related and that does have reasons to potentially effect the u.s. if it is all linked together. it is interesting how much we sold off in the premarkets sometimes based on european trades let's jump to facebook facebook this morning is down about 4% in the premarket. let's have a look at what it is doing now. the market has opened. jim was talking about valuations still supported but the headline risk are big wi we are down 5% and not 4% anymore. >> revenues up 47% earns per share is 50%

does it have other lever that it could pull are these people tone deaf instagram is doing incredibly well we hear this debate, listen, instagram is not doing well and they're not aware that it is owned by facebook. facebook is a fatigue factor i think that people generally surprise that this stock could be down this much on a new story about some names that they may have shared with russians from an outfit that was connected to trump. wow, this is like the russian probe. can you give me something that hurts. what does it have to do with the price earnings of facebook >> they selling off in sympathy because this could lead to a bigger political backlash and regulations for all of these names who have huge market shares >> yes, we don't understand what the eu has in mind

we don't understand what kind of tax they want to put >> it is an important different issue. >> that looks like it is coming anyway >> we heard the report over the weekend of potential sales of 3% >> the headquarters in the u.s., they benefit from the users they got across europe and they're not getting their fair share of tax. it definitely puts them in the cross hairs of politicians >> we got to put it in a larger context. there is a sense of u.s. with president trump. not a great actor over europe. is this in part with the idea that if you are putting tariffs on steal, we'll charge alphabet and this would not have happened if it were a different president and a different economic stock >> i think it is a fair point. also, it is fill lebeau mentions

that there is grounds that the president is focusing on and there is a question of how it is being done if it leads to broader retaliation. >> it makes it difficult to earn and then you have to falter what's less of a difficult tone. where are they going for raise rates and historically good for banks? why don't we just shift and own more finance and less tech the reason i said this because tech is 26% of the s&ps&p. i rather not be involved of the crowded trade or buy banks or intel. the one that everybody is looking at what do we do with micron? it is a company that's selling very inexpensively, that's kind of the situation where is it safe or momentum so we got momentum tech and low valuations tech and we have tech that's in the cross hairs.

>> to what extent do you worry of the ones that's in the cross hairs that they are supported by a big flood of money into the tech and the u.s >> raising rates high valuation, classically what you should sell. i would push back and say that's today. two days from now if we don't have another story which talks about facebook and data. i can buy this facebook for multiples, i have to own it. people are having trouble valuing things, how do you va--i struggle to see non controversial verses controversial. i am drawn to if rates hit a high, consumer product stocks, but if they have not well, you know >> let's touch on u.k. they may go back to perhaps sell

the food business and giving them some crafts to buy. interesting kind of perspective. that's still focused on unilever >> paulman a remarkable ceo. >> been there since 2009 >> the idea that those two, este lauder is the most highly val valued products. i do not have a story line that says there will be a take over here i know if you bikiuy any of tho stocks on the idea to take over, those are hard now >> they did not like unilever

correctly. it is an in expensive stock. >> and the latest in terms of former ceo kind of kicked out because they don't want him to make his own bit >> yeah. we need to know more here, will. >> who really was responsible for the investigation? was doctor jacobs voinvolved trying to get this bid kill so he can buy the company himself david faber did an unbelievable reporting on this. i do point out that qualcomm stock starts with the sale over morgan stanley because i feel that a lot of people feel they'll do anything to stoc stocstock stock -- it is hard to own stocks because now you got apple risks. if apple is going to get rid at

samsu samsung, maybe apple is going to do something with intel to get rid of qualcomm. >> do we like intel in. >> it is the most major expensive company that i follow. >> let's talk about vf corp. there is big brands for them what's your take on it it is down 11%. >> i think nautica's time has come and gone. >> thank you for pointing it out. >> i gdid you know that sleep wr that's nautica sleep wear. you didn't know there is pajamas. i think it is good for vf. they have been a great industry for a trimming brand when they

were no longer useful. i think a better narrative for the moment i cannot believe that facebook is not rallied. >> you mentioned banks one name here is still trading cheaply on european banks. that's barkley, that's up today. still trades 0.8 barclays is up a nice one, it is now 6% >> how does it work over there someone takes a stake and is there anything that -- i bet you know this guy? >> i met him a few times and trying to get him on soon. there is a lot of barclays, it is facing a number of investigations but it is trading

here the question, of course, is this activist support of the strategy at the moment or not we don't know that i understand from sources they met one with jeff dailies so far. >> i tend to not to go to the one -- >> they're doing well. >> i was looking at your holdings >> goldman sachs is trying to build up, why? because we have the most volatile market that i have seen we have many session in a given day. we open down badly but it shocks me if we rally we have moving up after europe closes this is what goldman is born to. when i worked at goldman sachs, we talked about this concept we are drying clear. we are dry clear we don't take in the clothes and keep them.

we take them in and we give them right back don't get stuck with inventory >> do we think it is still the business model once it takes over >> yes, why would you change horses just when your business model comes back to style. it is good to be a trader in an environment where trading makes you much more money. we do have to see a return to hedge funds doing better i like -- look, i think the business model is going to be right and to change it now is chasing. chasing performance that won't work >> i just want to go back to something. i was familiar with your coverage where you spoke wi with -- i think in january, maybe the idea that he'll step down i did not find the story repertory when harvey quit >> i think the fact they chosen

who the successful would be as oppose to this could be something happening in early 2018 or 2019 >> a lot of people were surprised to tell you wilfried >> a lot is happening in the space. >> harvey had a lot of people really felt this guy is being groomed so perfect and ceo for president. this is the guy. i think there is a shock factor. the stocks ended up doing well because this is the environment for goldman. >> yes let's get to bob pisani on the floor with more on what's moving this morning hi, bob. >> good morning wilfred and good monday i want to show you the s&p 500 futures, you can trade it on the cme, you can trade it all night. at 4:00 a.m., something happens, that's nasdaq, hoping for pretrading we went straight down on s&p 500

futures after nasdaq and nyc opening. it opened around 184 but went straight down in the next half hour between 4:00 and 4:40 would y that moves markets down and it drags the s&p down with it and other big tech names awere weak as well. facebook, we are below the 58 average essentially. that's an issue for a lot of people momentum traders are a big part of this whole game now that's the next thing people will be watching people get the big fang names, all of them are down of various degrees. apple is among them and google and amazon is also on the downside and netflix down at 2% and therefore alphabet and facebook, down 5%. so they got a little bit of news

out there. they may be designing their own display facilities for the first time, they are testing some products this may be positive for apple's long-term. some of the display makers in japan, they trade over in japan. sectors, well, when you have semiconductors, your tech is going to be weak technology is 26% of the s&p when you get the biggest names in the eck groutech groups, youe some weakness in the s&p amazon is in the consumer discretionary group. it is what i call the politics of index and materials and energy weak. market issues right now, we got three of them really,not just

facebook but tech weakness, that did not lasted in past we'll see if that'll go on the next couple of days and whether to get three or four rate hikes. believe me this is still an issue. finally we are going to get big ipo this week. one of the big names, of course, regional banks, i want to mention, we are not getting it today and the 10-yr is to the upside the other big group here, financials are 15% of the s&p 500. they move together that's a big factor we keep in the s&p 500 up, we are not getting that today unfortunately. people are looking for financials coming in before. let's go to drop box at the nasdaq pricing thursday night. we are talking about one of the big names out there. they're going to float roughly $600 million i mentioned that close to $8 billion valuation

i pribring it up because here i huge tech company floatingless than 10% of the company. this is proven to be a strategy. it is a big name and retail interest in this particular name so i anticipate this will be doing fairly well. we are talking about 500 millions and hundreds of countries, we'll see how that goes we are not wilfred rising at all. we are sitting at 200 points >> bob, thank you so much. >> let's head down to rick santel santelli >> good morning. >> rates are higher, let's concentrate for the short for the beginning of this. we had 231 in change and 232 on a 2-yr note. you can see on that chart. 10-yr is moving down the curve and you got a couple of basis

point. today could be number 17 where the 10-yr note yield closing at 280. today there is a lot going on. now there is talk that maybe the bond buying program in europe is going to run its course. not just a moderation but run its course maybe because there is so much pressure higher rates including the u.s. looking at a 24-hour chart, that's the short end, it moved up a little bit. and yields, there is some time where we are trading the same levels and 57 except for the two years negative if we look at what's going on in the other news aspect of the financial world. looks like may be the commission in europe and the british have come up with a broad kind of finale to what's going on with

brexit let's see what's going on with the guilt, shall we? that's the 10-yr instrument. let's take a look at the pound verses dollar. nice shout up there as the thing pops up a little bit and that's interesting, we want to pay close attention to see if any follow through the dollar had an interesting friday, we dealt it right back into the marketplace as you look at a two-day verses of a dollar index. what you want to pay attention to is ongoing fascination by traders, first thing is stretching out and consolidating pattern which is not all that different. pay attention to which side of 90 you are on a dollar index >> will and jim. back to you. rick, thank you very much for that >> still to come roger mcnamee,

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dow down nearly 200 points, now down 185 points. three stocks in the creek, coca-cola procter & gamble and nike cat down 2%. wi sp ad mutn a coupleines thtotring with jim cramer we've been preparing for this day. over the years, paul and i have met regularly with our ameriprise advisor. giving us the ability to add on for an important member of our family.

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♪ ♪ welcome back down 0.6% on the s&p, nasdaq down 0.9%, weighed down by facebook the dow in between that. time now, though, for cramer's stop trading. >> first, i've enjoyed immensely working with you this hour. >> look forward the rest. >> you're talking too fast trying to get a lot done oracle reports tonight and this is a market that's in need of a new data point that says things are good so we can forget about a facebook controversy

i think oracle off its all-time high, will have good things to say. here's the only issue if oracle is doing well, they make it like wait a second, maybe salesforce isn't any good be aware that there is some controversy, but they need to deliver. i want to be sure all-time high. i know that mark will be on thursday the main thing here, is that tech, this star for a catalyst after a good week last week and maybe oracle can do it. >> what's on mad tonight >> we have emmerson, a company run by david farr, everybody knows him, a great business man. i want to figure out what's going on with cigna, why is this deal hated to buy express scripts. we will have them on facebook has to turn around -- >> it was down 4 in the premarket, thought it was too much, and down 5 do you think it will rally intraday. >> i think there will be people that come in and say -- no

what happens when you have sell orders brokers want to show they sold it at a better price than it closed so they will knock it down, look how well, i did it closed down 9.5 that's the way it's done. >> we will be keeping an eye on that thank you for having me. see you on "mad money" and tomorrow as well comingp the ceo of macy's growing the retailers and dealing with the amazon effect we're back in a couple minutes ♪ directv now gives you more for your thing. your letting go thing. your sorry not sorry thing.

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and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over one hundred fifty billion dollars in real assets. partner with pgim. the global investment management businesses of prudential. ♪ good monday morning and welcome back to "squawk on the street." i'm michele caruso-cabrera and kayla tausche, carl, david, sara, all off today. take a look at the markets deep in the red, dow industrials down, three quarters of a percent, s&p lower by 18 points, two-thirds of a percent. nasdaq the worst in terms of

percentages down nearly 1% or 70 points a lot is facebook which we will talk about and talk about whether or not the president's twitter tirade over the weekend is pressing the markets. that's where our road map begins stocks are lower on wall street following the second losing week in three for all of the major averages a look at the new market trading range and where you should be putting your money to work facebook under pressure, reports data analytics firm collected private information from more than 50 million users of the social network the details ahead. warning to the president, u.s. trade groups urging trump in a letter to the white house to avoid tariffs against china will it work we'll talk about it. >> first stocks have been moving sideways during the month of march. since the market first burst off the lows of the first double digit correction in two years. mike santoli joins us on set. >> wolf, we'll got the market caught between these opposing current here we're up about 9% from the lows if you look at the s&p 500,

those lows set over a month ago. about 5% up to the former highs of almost two months ago if you look at a chart of this range, from high to low, and also this sort of point that the market is coming to, kind of this narrowing daily range that market is in, it looks as if we're building some kind of suspense here. typically this is going to happen i will point out this is a rather ordinary recovery from a correction path. if you look at basically how this goes typically you have a dramatic rebound and then you chop aroundsideways for a few months i do think you have to look at a few factors of what could take you up to highs or back down to the lows between the overheating fears we had in the beginning of the year and the soft patch fears of the first quarter. everyone was sort of positioned for higher rates and inflation and then we get a little soft data and the market has a little indeseegs about that ahead of the fed with the bond market sitting where it is as well. >> this is an ordinary rebound,

ordinary as in normal and expected >> typical as in typical. essentially, this is how it goes normally now, often we have to kind of sag toward the lows and this idea from day to day not knowing if you're kind of out of the woods or not is significant. i do think investors have to show that they're willing to pay a higher valuation on higher earnings given where interest rates are going and have not shown they are willing to do that since the january highs >> at what point would you say this is atypical, this has attributes beyond the garden variety correction >> you would have to say you go back down 8 or 9 or 10%, those lows don't hold and all of a sudden have to say, is something changed here i don't -- i think there is a pretty long leash you keep this market on before you say this is anything more than a correction in a bull market. >> go back to february we talked when we did have the initial pullback about the fact that there's so much trading the automated whether done by algos

or index funds how important are the levels we've recovered to, to stop the kick in and sell more. >> at this point it's interesting, there's almost no edge in terms of the technical conditions if you're coming into this week and saying it's not over, not over sold, nothing about this level that says the odds are in your favor one way or the other on a short-term basis. a few things would have to happen to change the story the credit markets have held up well but softened a bit, not back up to the strongest levels of a couple months ago and fang has been a very important, the facebooks, amazons, have been an important driver here if they basically come to the sidelines and don't help out the market, the indexes could be a little trapped. >> we should point out all of those names are down today, most about a percent but facebook down the most down about 5%. mike, thanks very much see you later. >> let's talk more about all of that on the markets brian is chief investment strategist, and tracy head of global asset allocation at wells fargo. good to is you here.

two dominant things we're talking about this morning some are pointing to today's decline and blaming the president's twitter tirade over the weekend and then you have the aforementioned deep sell-off, what's going on in the fang stocks. brian, they have provided so much leadership over the last year or so, but they're acting poorly today almost as if they are worried about regulation of some sort. what do you think about that sector right now in light of the news related to facebook >> well, good morning, michele one day doesn't make a trend and it's another manic monday. if you would have reacted two or three weeks ago when news on walmart came out, you would have missed a great buying opportunity, a market leaning stock. we understand these stocks, the fangs are not a sector, they are stocks if you want to throw apple in, apple on the pullback we saw the last couple months the stock has rallied back up again. this is volatility, about stock picking, we understand that the -- a great percentage of the performance within the consumer

discretionary sector nearly 90% from amazon. that typically is a problem from a longer term perspective. near term this is positive we think that these stocks are cooling off because frankly, they did run too hard too fast the fundamentals of the stocks from a longer term perspective look very strong this is all part of a stronger, longer term trend. the market is doing what it's supposed to do in terms of peeling off some of the gains. we think it's quite positive >> okay. underlying bullish, basically, brian, still committed to the market >> we're very committed to the market and let's face it over the next two weeks, we don't have a lot of data, michele, and then the proof is going to be in the pudding with respect to first quarter earnings and so april will be a very important month for the market >> got it. tracy, what do you think of the market here, especially when you see the weakness in what had been such a keen leadership sector brian argues not a sector, they're individual stocks, but fang, we thing about them as a

group. >> right good morning, thank you for having me on the show. there are a couple things going on here we think first of all, there is the news out of washington this weekend, but there's also the federal reserve's meeting this week and we think that that's really playing into markets so far today. and another thing as was mentioned, is that this is very typical after a correction, like what we saw in february, you know, the tenor of the market changed in february and a lot of that uneasiness has carried in to march we expect that to continue for the next couple of months. but once we reach the next six months or so, we expect the markets to end near record highs. underlying bullish here as well. >> got it. so you're both positive. tell me, tracy, what is it about the fed meeting you think is playing into it? jay powell could be more hawkish

than most thing or his first meeting, first news conference and therefore people are nervous? >> it's a couple of those things yes, it's his first news conference and so people are going to be watching him for his style. he has come out very optimistic, which we believe is a good thing. we certainly are seeing good numbers out of the economy for the most part but there's some softness there too retail sales and housing came in softer first quarter gdp is likely to come in softer they're going to continue to be data dependent so any assumption that he's going to be a more hawkish fed leader, we think you should approach that with some caution because it's likely that if markets think he's more hawkish there could be a misunderstanding there we could see some selling pressure that we view as a buying opportunity

>> okay. >> brian, of course on friday, you have another deadline which is potentially shut down 3.0 the market has been conditioned to the to think about the government funding deadlines until we get to the bitter end and they see how things play out. are you bracing for another showdown with spending with the house and senate not having debated the bills at this point? >> i think the market has done a really good job discounting what happens with these government shutdowns, 3.0, 3.5, whatever is coming next. i think what people are having more of a hard time with is trying to react to twitter from the president of the united states over the weekend or these continued kind of comments we've shown over the last year or so that the market is a law of diminishing returns the market used to react a lot more and now the market is poo-pooing these it's a mistake to base investment strategy on tweets. base it on fundamentals. that holds true with respect to government shutdowns

they'll get it done but in typical political fashion they'll wait to the last second. the market has been jittery. continued volatility is likely we would not be reacting on an investment standpoint based on a shutdown. >> brian, are you calculating the biggest market risk currently facing stocks from washington being either potential shutdown, you mentioned the tweets, the president challenging the mueller investigation for the first time by name or this potential trade war with the treasury secretary in buenos ar reese trying to defend the administration's policy this week what is the biggest risk at this point? from a fundamental perspective the trade wars because some companies are worried about that the market may be overestimating that because remember, there's a lot of exemptions we're not really talking about out there the market and media love to blowp up the notion of tariffs but don't dig deeper to see how many exemptions there are with

respect to the steel tariffs i think the uneasiness is combat something of the business confidence we've seen and from a fundamental perspective april will be so important to see if companies are actually starting to put cash to work in terms of cap exaand feel better about th regime they're under with we can't guess anything with respect to what's happening on the political fronts and notion over the next week or two until we see first quarter earnings. >> thanks so much for joining us this morning all right. thanks to both of them meanwhile macy's new ceo is less than one year into the job and things are starting to look up at the retailer. macy's reported stronger than expected holiday sales and an even stronger january. our courtney reagan spoke with macy's ceo from the conference in las vegas and joins pus now with more. what are the highlights? >> hi, good morning to you so we're here at the shop talk conference, one of retail's biggest conferences of the year.

8500 folks here in attendance, 200 company announcements expected and macy's ceo give jeff gennette really kicked everything off for us yesterday. we sat down with him and really covered a wide range of topics, including the possibility of a trade war and what that means for goods produced in china. >> we're working with all of our kind of industry partners on this we have a deep relationship with the nrf. i've seen them lobby, when you look at what we were doing with border tax, i thought that was a hot topic and the industry came together, they showed why this would not be good for the american consumer and i think that, you know, cool heads prevailed on that. i would expect that to be the same path we would see on these particular shoes >> now, while the government's retail sales numbers for february showed a deceleration in department store sales from the month before, gennette is confident with his full-year forecast for sales to grow between flat and 1%. he said so far, colder than

expected spring weather hasn't been a problem >> our inventory is in a healthy position, so what i would say to you is there are new spring goods in, we're getting robust sales on them, we're in a good position a couple snowstorms are not going to hurt our business we're a national chain. >> macy's rolling out mobile checkout nationwide to all of its stores you can check out on your phone. introduce something new vr technology so you can see what the macy's furniture would look like in your own living room before you buy it. gennette says in tests it significantly increased sales in this area and decreased returns, bringing them to under 1% from 5% back over to you at the new york stock exchange >> yeah. that makes a lot of sense because you get a better sense of how it looks in the living room the national retail federation this morning putting out a statement, they are quite worried about even more tariffs coming as they wait to see what the administration will do about the intellectual property issue

with china going as far to say 72% of footware, 40% of clothing and 80% of travel goods sold in the u.s. are made in china there's a real potential higher cost to consumers if things keep going the way they're going. >> exactly that's exactly what we asked jeff gennette last night and he puts all his faith in the lobby groups like nrf and along with others sending a letter to the administration today saying tariffs are a bad thing, tax on the consumer and he sort of said in that first sound bite we aired for you, look we did a really good job with these groups and got rid of that border tax, which we thought was something that was really very damaging to the industry, so we'll see. i like your point, michele, this could be a big problem for retail and then, of course, ultimately for consumers >> they're definitely trying to be proactive thanks, courtney >> thanks. so when we come back, shares of facebook are falling as officials demand answers over

reports a data analytics firm obtained information on millions of facebook users without facebook's consent the stock is lower by 5.5% at this hour. u.s. trade groups making a collective push urging the president to avoid tariffs against china. we're going to have more details. quk t see ces right back don't go away. global bonds and high-dividend strategies. sure, these are investments. but they're not what people really invest in. what people really invest in, is what they hope to get out of life. but helping them get there takes a pure focus. because when you invest their money without distraction, hidden agenda or competing interests, something wonderful can happen. they might just get what they want out of life, and maybe even more.

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facebook falling this morning after revealed that more than 50 miller users' data was

expose expos expose julia joins us now. >> the stock feeling the heat. the eu announcing an investigation the president of the parliament quoting tweet misuse of user data is a violation of our citizens' privacy rights and mark zuckerberg is facing demands to testify in the uk and u.s. as lawmakers call for increased scrutiny and regulation. what exactly happened? 270,000 facebook users downloaded a personality quiz app giving access to their information. at the time, developers could also access demographic data from friends of people who had downloaded their apps. facebook reversed that policy in 2014 50 million is the number of all of the friends of people who had downloaded that app. facebook says its policies were broken when the app developer sold that data to cambridge analytica. facebook saying, quote, we are in the process of conducting a

review to determine the accuracy of the claims that facebook data in question still exists cambridge analytica denies wrongdoing and says it, quote, worked with facebook over this period to ensure that they were satisfied that we had not knowingly breached any of facebook's terms of service. now that statement contradicts what cambridge analytica's ceo said in a parliamentary inquiry into fake news last month. he denied his firm works with facebook data. cambridge analytica and facebook are certainly both feeling the heat, both in the u.s. and in europe now, and that scrutiny is only sure to grow going forward in the wake of all these rev lagsz. back over to you. >> julia, thank you very much for that facebook shares on pace for their worst day since february 2016 officially now in correction territory. for more joining us here at post nine, is journalist and contributing writer for "the new york times" magazine, charles. thanks for joining us. >> thanks for having me. >> dive into cambridge analytica

specifically in a few minutes time, but facebook here in terms of what they have or haven't done wrong and how long they've known about it, what's your timeline and understanding >> facebook has known about this for years, right they found that data was being taken off of their platform in ways that are completely allowed by the facebook rules and regulations in 2015 and they learned at about that time it was being sold to companies, political consulting companies n a way that violates facebook's terms. at the time they asked the researchers to destroy the data that they had taken but did not do anything to find out if that data was destroyed, if it has disappeared and most importantly did not bar the people who were doing these acts from their platform, until last week. >> can i ask one clarifying question, why did they not -- why was this a violation of terms? because it was a moral thing they don't want people selling it or did they want the right to be able to sell the data to political companies? >> we don't know if they want to

sell the data although they probably do. when you -- when you are a researcher and go tofacebook and collect data you say you won't resell it to third parties. that's the only violation that's occurred the researcher resold the data and made money off of it facebook didn't make any money off of it and that's a violation of their terms. >> why did facebook ban cambridge analytica then when they didn't do that two years earlier? >> my guess because they weren't contacted by "the new york times" and guardian, told there were huge articles on the company. >> including a documentary coming on channel 4 in the uk, a lot of legal channels, we might see more revelations when that comes. andrew nix the ceo was in parliament in the uk a couple weeks ago where he tried to distance the possibility of the fact that they've used facebook data what does that say about that company and the whole relationship >> it's totally unclear whether

cambridge analytica knows what they're doing or just happened to be the beneficiaries of one the largest data breaches in history. right. what we don't know can fill an entire book, including whether nix know house to use the data, whether the methods they have pioneered around trying to come up with psychological profiles based on facebook data work, whether those are persuasive getting people to turn out for certain elections, we don't know a lot but the point is, this is all things we should know. when it comes to other repositories of data, equifax or even the u.s. postal service, we know a huge amount about how they use that data, how they store it, what it's useful for and isn't. when it comes to facebook and the group cambridge analytica and all the other companies we've never heard of using facebook data rite now we don't know anything about how useful it is or what they have. >> facebook is a platform that sells data that is its core business at the heart and said before that they have no interest in being a moral ashby tore when it comes to news. how judicious do they need to be

about who they are selling their data to? >> you're right that facebook sells data but they sell access to data. if you're an advertiser and go on to facebook you say i want my ad in front of all of the women who are 35 years old who live in this one city who like red dresses. facebook can do a pretty good job of getting your ad in front of them. they won't let you download that data and use it yourself because facebook wants to keep that data for itself unless you're clever in which case you can go out and essentially at least as of 2015, scrape facebook for 50 million users and then match them with who the people are in real life. this is what campaigns have been doing for years. now it's a voter file on steroids because there's so much data centralized in this one company and you tell that company things like who your friends are, what you like to do with your time you -- >> users are opting into it. >> but in large part because users don't understand how valuable this data can be used to figure out everything about

who you are and what you like. >> clearly shares are down from facebook today, one of the reasons in increase in regulation and scrutiny. other companies down like alphabet down a percent. >> if we see regulation come down it's not facebook specific regulation, it's going to be regulation aimed at all tech platforms. what's important about this is this can have a knock on effect tore companies if you're macy's and like to go buy ads for those who like red dresses and the government steps in and says we're going to regulate what kind of data macy's gets access to you may not be able to buy the ads anymore. every company that buys on facebook to do digital advertising, at this point every company on earth, they can be affected by this reg flaulation. >> can you underline for us again the connection of all of

this to the u.s. election, and/or the brexit campaign what do we know about that relationship as a result of cambridge analytica having this data >> we don't know anything specifically we know that cambridge analytica held itself out to the trump campaign and cruz campaign as someone who could help figure out how to persuade voters we don't know if it was effective, if cambridge analytica was good at what they promised, we don't know if they were selling vapor ware that turns out doesn't work in the real world. >> they got lucky because the two came out the way -- >> absolutely. they got really unlucky because they're the people targeted with being responsible for it. >> in terms of where we go from here in likelihood of regulation, we also hear from the eu and uk and in your opinion, have we crossed the line where we're going to get to that point or still something that gets talked about as it has been for the last two years. >> it's different now. everything has changed in the couple of respects we've seen these elections that

shocked everyone, both leave and the trump election whether for or against it you were surprised on the morning it happened secondly this conversation has now reached a crescendo we're seeing people across political spectrums on the left and right saying, we are worried about the power that these tech companies have we need to start talking about whether they ought to be treated the same way we treat postal service and railroads and airplanes, decades and decades ago. they are now mature industries and when things get mature, regulators tend to step in. >> thanks for joining us >> thanks for having me. >> facebook shares down 5% this morning. >> when we come back former republican senator alan simpson joins rick santelli to get his take on tariffs, taxes and more. another look at stocks at this hour the steepest slide in the s&p 500 and the nasdaq since the beginning of the month with all 11 s&p groups trading lower. "squawk on the street" will be right back we took legendary...

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stock is dragging down other names this morning hey. >> it is overall as if facebook needed any more attention aside from being the fifth biggest company in the s&p, the second biggest digital advertiser in america and social media stock, those shares have had a bigger factor in the bull market but the momentum is starting to slow over the last month or so many of the exchange traded funds with exposure to facebook have felt the effects of the resistance as well. one of the well-known etfs that holds it is qqq the $68 billion fund that tracks the larger cap nasdaq 100 facebook is the fourth biggest holding there, 5.5% weighting. also take a look at the tech sector spider, xlk, $22 billion fund that tracks tech stocks and the s&p. facebook its third biggest holding near 7% weighting there. there's the i shares iyw, $4.5 billion fund at this point facebook the third biggest holding there at over 8% weighting.

traders and investors are trying to figure out if there is a case to say facebook is the leading force or a big force in the stock market or if the latest news regarding cambridge analytica is just more writing on the wall that facebook has a lot of work to do to regain some of the positive near and medium term momentum. today's moves have erased all the gains in the stock year to date and for now, wall street is staying bullish according to analysts, the average upside potential for facebook stock still sits 26% above current levels it's also a stock where 89% of the analysts that cover it have a buy rating on shares kayla, for right now, unless analysts change their view, they believe that facebook is still one of the most powerful forces for upside in the stock market overall. back over to you guys. >> yeah. they're zooming out and looking at a longer data chart of the stock. thank you, dom. let's send it over to sue herera for a news update at this hour. >> good morning, kayla and everyone here's what's happening at this hour austin, texas, rocked by a fourth bombing this month.

injuring two more people the police chief says the device was tigered by a tripwire and showed a different level of skill than the package bombs in the three prior attacks. the two injured were white, unlike the victims in the three earlier attacks who were black or hispanic. negotiators from the european union and britain hailing major progress in the brexit talks but conceding there has been no break through keeping open the irish border. britain is due to leave the eu by the end of march of 2019 but a deal needs to be reached by this fall in time to leave to ratify it. the syrian government releasing individual of bashar al assad visiting the troops on the front lines in eastern ghouta after syria claimed on sunday it had take than region from the syrian opposition. and russians are waking up this morning to the re-election of vladimir putin as president for another six years. putin won about 77% of the vote. the outcome was assured when his most prominent foe was blocked

from the ballot. that is the news update at this hour. wilfred, back downtown to you. >> sue, thank you very much for that when we come back on "squawk on the street" fears of a trade war, u.s. trade groups urging the president to avoid tariffs against china. plus, facebook continuing to fall, trading in correction territory. we've got the details and speak with bob peck internet head of investment banking at credit suisse "squawk on the street" will be right back

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make a better california for all of us. woman: because we know quality public schools at the marine mammal center, the environment is everything. we want to do our very best for each and every animal, and we want to operate a sustainable facility. and pg&e has been a partner helping us to achieve that. we've helped the marine mammal center go solar, install electric vehicle charging stations, and become more energy efficient. pg&e has allowed us to be the most sustainable organization we can be. any time you help a customer, it's a really good feeling. it's especially so when it's a customer that's doing such good and important work for the environment. together, we're building a better california. welcome back i'm michele caruso-cabrera with wilfred and kayla tausche. show you what's going on with the markets right now. dow industrials close to the low of the sessions down 175 points, s&p off 19 and the nasdaq getting hit very hard more than 1% decline of 79 points as we

see weakness in facebook in particular, but all of the other stocks. >> all of fang is deep into the red this morning shares of facebook sinking the stock down more than 5% after scrutiny has been laid on the stock after it was revealed that political consulting firm harvested data from millions of unsuspecting users for more on big tech joined by bob peck, credit suisse head of global internet investment banking. good to see you. the facebook news is sort of the latest in a trifecta of negative headlines for the tech sector this month starting with the broadcom and qualcomm deal blocked. the potential for tariffs on tech imports and the facebook news is that enough to advise investors to stay away from this sector >> yeah. first of all thank you so much for having me again. we think the facebook story today is part of a bigger picture meme that's been building for a couple quarters now. on tech taking responsibility, tech growing up, and i think particularly with this story

that's interesting not only about the tech companies taking responsibility for the data on their platform but the broader ecosystem and what happens to that type of data. we think you're going to see this story trend as the large tech companies take more and more responsibility for their platforms and eco systems. >> you are at the shop talk conversation in las vegas. do you think the likes of amazon are exempt from this trend >> first of all, as we look at some of the themes coming out here, one of the biggest things we think about is the whole idea of new retail. all right. the whole omni channel retail taking place and every speaker here is talking about it almost every single company is talking about it what's interesting about that is that it's not just a matter of leveraging off-line and on-line, but it's actually just the sharing of the data across the platform so to the facebook story, the importance of data is only going to build over time as alibaba

has said data is the new lifeblood of the new economy and we think that the focus on data is going to become that much more paramount as well as important to the protection of the data for the consumer and platform and amazon being a big part of that >> bob, bringing you back to facebook even if we don't get to a point where we see a huge increase in regulation because of issues like this, is there a sense now that facebook users and millennials perhaps in particular, are starting to wakeup to the level with which these companies are able to monetize their data and whether there might soon be pushback from users even if we don't get regulation to say this has to stop >> yeah. absolutely and i think the large platforms like facebook are very much aware of that. they know at the end of the day having the trust of their consumer is paramount and key. ne don't earn that trust every day users will go off the platform look for them to try to self-regulate as much as possible to take care of their constituents, the user is

paramount and the customers the advertisers. if that data is not secure you could see a pullback in daily usage, time spent and users overall. >> you're an investment banker at this conference you live to make deals what are you doing there what kind of tie ups do you see? as you see facebook's currency become less valuable what does that make you think of if you worry about the potential of regulation what that does for the stock prices and valuation within the smaller companies we've seen the likes of walmart, for example? >> yeah. so two things there. on the m&a front, in '17 a good m&a year for the tech sector, it was above its 10-year average, 40% above. i think you're going to continue to see more m&a in the tech sector with strong balance sheets and large companies over incremental growth and a lot of conversations. what i think is interesting about that, it's not just technology companies that are talking about this, right. it's other traditional companies as well. some public examples you saw are something like alberts where

you're seeing traditional companies in retail sectors look towards tech as a way to grow. a lot of conversations are continuing you will see that play out through '18 and '19. on the equity side of things, we think they're starting to see more of the pipeline build a lot of asian participation from the ipos, but we look at '18 and '19 some coming out some other players start to give capital to institutional investors. the portfolio managers will look at that incremental alpha as a great pipeline building for them >> bob peck, the head of internet banking at credit suisse, appreciate it. enjoy the rest of the conference. >> thanks for having me. we want to tell our viewers that facebook's chief security officer alex stamos has posted on twitter a lot of big problems that tech companies need to be better at fixing we have collectively been too optimistic about what we build and our impact on the world. believe it or not a lot of people at these companies from the ceos to the sberns agree

a comment from the company to share. >> indeed. right. amid building business opposition to president trump's china tariff treasury secretary steven mnuchin looking to make the sale to the g-20 counterparts and kayla, you've been following this closely in d.c. and a big week for the discussion around it. >> the secretary wanted to talk about cryptocurrency regulation but the rest of the attendees have other ideas he will have to defend u.s. trade policy at the g-20 meeting because the meeting is coming between the administration's rollout of two controversial tariff page, one on steel and lululemon imports that takes effect this friday and the other in response to chinese intellectual property theft that could be unveiled in the coming weeks. the commerce department today launched a process for companies and countries to be excluded from the tariffs the eu trade chief will meet with the commerce secretary midweek in washington. a broad package targeting up to

$60 billion in chinese exports is still in the works. white house officials say no decision is final but we will see what the president ends up deciding the business community is pushing back a group of 45 trade associations wrote wrote to the president over the weekend saying that sweeping tariffs would trigger a chain reaction of negative consequences for the u.s. economy, provoking retaliation, stifeling agriculture, goods and services exports and raising costs for businesses and consumers. that is an argument that has been echoed by republican lawmakers furthering the deep divide with the white house over policy and putting the administration on the record congress wants to hear from them, the trade representative and the commerce secretary will be grilled by members of their own party. of course republicans are pinning their hopes on larry kudlow pro-multilateral trade deal, anti-tariffs but some of the hawkish voices getting louder and louder. >> he has come around on china

and about targeted tariffs on china, possibly, but what i find interesting is that behind closed doors and i'm sure this happened with you and with you, will fred, american ceos will say i'm frustrated by china. no reciprocity i want to invest over there. they want my intellectual property nothing that we require of chinese companies coming here. and so they are absolutely angry about it, i would say, and then at the same time they say don't put tariffs on china because we fear retaliation i don't know how to achieve or how they want to achieve those things that we're reading so much or the changes they would like to effect in chinese -- >> i think most of the ceos are hoping that china gets more open rather than the u.s. raising its barriers further that's a tall order. >> is there any evidence that they are moving that way under president xi jinping >> no. now with the consolidation of power he has had and consolidation of his advisors around him and their track record. >> i was going to ask as we get

to g-20 and secretary mnuchin is the representative from the u.s. there, do you feel like the other nations think he's the right person to be talking about this as we said before he's not as pro tariffs as the president. is it few tile for them to be negotiating with him does he have the sort of presence there on this topic. >> he is the leader of the treasury department. i mean he has sort of solidified and concentrated his power atop that department. his views on tariffs are ambivalent at best but he, unlike gary cohn, has fallen in line with the president and supported what the president's decision ultimately is he is the flag bearer for the administration whether these countries like it or not his agenda is getting completely rewritten while down there. >> he's been incredibly, this treasury has been incredibly aggressive when it comes to sanctions on venezuelans in ways we haven't seen before, big ranch cletsing up of north korea, russians, we expect more of that as well. >> and more to come.

>> when we come back here on "squawk on the street," more on trade, tariffs and the looming government shutdown. former republican senator alan simpson is with rick santelli next "squawk on the street" back in a couple minutes each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. i'm not really a, i thought wall street guy.ns. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you

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let's get to the cme group in chicago hey, rick. >> good morning, michele thank you. i would like to welcome alan simpson former republican senator, republican from the wonderful state of wyoming and attorney, senator, thank you for taking the time. >> are you still talking about

the debt and deficit no, go ahead ask me anything. >> how are you >> good. >> let's have fun with this senator, kind of rough fun in this corner we have the cobo who says by 2028, we will have $27 trillion debt, okay, in this corner committee for responsible budget, they say it's going to be about 8% more, at $29.4 trillion they also say by 2028, we could have servicing the debt be the fastest growing debt expense we have in the form of rate of change zeroing in on $1 trillion they estimate in $965 billion. what do you think about all that, senator? >> well, i tell you, it's a voice in the wilderness, but take a look at the members who are involved with that committee on responsible federal budget. democrats and republicans alike who have been through the fire, who have been on the floor of the u.s. senate and the u.s.

house, this is the greatest -- and you don't dare get up and run a sign board on the street saying the world is ending we gave that up long ago the real issue is the dirtiest h m-a-t-h. they don't understand it they don't understand the difference between the debt and the deficit. dhoent -- if y if you handed them a balance sheet, they wouldn't know what they were. and now they borrowed, these are the tea party guys these are the conservatives. the whole thing got started was because of spending. and all they did was just say borrow, borrow, borrow and send it on down the road and not only will these kids be marching about guns in schools, they'll be marching about what happened to their social security and medicare robbed screwed. >> now, senator, we have been down this road so many times you and i have spoken about this so many times.

at this point is there anything we can do to start to pull the weight back in the other direction? are there any small things we can do you know, we have until friday at midnight on the spending bill it is just gone until next year now, another opportunity missed? >> oh, yeah. and now what they're doing -- they're zeroing in on paul ryan for one run. the dirty rat mentioned doing something with health care and social security. i mean, what a slob to think -- i mean, dick durbin was on our commission he's a good egg. i didn't agree with him always but i enjoyed him as a person. he kept saying where's the tipping point? and we ain't going to do nothing until we get to the tipping point. and the tipping point is when the people who loaned us the bucks private and public say you know you're daaddicted to debt

you're hooked, you have a dysfunctional congress and we want more money for our money. and then instead of about $260 billion a year interest, you're going to pay $700 billion which takes it directly out of infrastructure, education, defense. i mean this is nuts. and it's all done by the trustees of the system it's not goofies from the right and left telling us this it's the trustees of the system. go look who they are they're good american people and they're saying here's the math goofy, what do you think of this >> real quickly, when i hear that you mentioned dick durbin from illinois, my question to you is the tipping point inquiry he made, is that because we're going to ultimately see where everybody's going to wait until we reach that? i mean, its not as though the good egg senator durbin is coming to the table with other democrats saying let's go after social security to trim it

let's go after and do something on health care it seems to me that i'm particularly worried about servicing the debt but it doesn't seem like anybody's coming to the table. your final thought >> when dick votes, he's not voting to do anything with it. but then hetries to cover himself with saying he's going to get a committee together to go through social security i mean, you know, he represents illinois you're going to get yourself cut to shreds. >> illinois is the poster child for trying to get something done on this front. senator, i'm out of time, unfortunately. always a great pleasure to speak to you even though the topic is something we both wish would disappear. thank you. >> you bet okay go get them. >> always so restrained. >> i spell math differently. i love that line let's send it over to jon fortt. >> fortnight is the hottest video game in the world right now, so hot it's driving

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welcome back

tech stocks powering a selloff on wall street the stocks are lower by 1.5% in early trading. check out newfield, kinder morgan, the big laggers off by 2% so far today. certainly a sector to watch. back to you. >> yes, it is. absolutely when we come back, thank you, facebook is under pressure the latest scandal finally force tech ceos to testify on information warfare? we're going to discuss with an early investor definitely want to tune in market at session lows dow down 260 points, decline of 1% don't move "squawk alley" is next

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