good luck in this snow storm everybody, make sure you join us here tomorrow. right now it is "squawk on the street." ♪ good morning everybody, welcome to "squawk on the street," i am wilfred frost with jim cramer, david is off today later this hour, we'll talk to kevin johnson. lets have a look at the futures right now, the nasdaq is a little bit low all three were higher yesterday. s&p and dow is up a quarter of 1% it was encouraging to see the

nasdaq and tech sector within the s&p despite morsellie sellio facebook yesterday twitter was down as well, we'll discuss all of those coming up. europe has suffered in the session. it was mix that it was down. asia is mix to dow sessions. all eyes on the fed for global markets and not just for the u.s. governor powell first press conference following the meeting. the s&p is up again today at 1%. our road map starts with facebook and the silence for zuckerberg over the cambridge analytica scandal.

questions remain of policy decisions for the rest of 2018 sales force is selling out $6.5 billion the company just celebrated its ipo right here at post 9 just over 12 months ago a lot on the agenda. crazy we are back to facebook. some five days after the story first broke, shares down again today. they are down 2% over night. it improved 1% in the wake of the scandal. the big question, five days after the story broke and three days into the week >> i think what we have to understand is that the stock market is falling and you start to get closer to the target breach wells fargo around 14%, we are cutting into that and equifax forget that.

as this pass, charles sandberg is not important and susan desmond helmon, they have to come out and they have to add their own management team which is incredible. they must do that. ken fiber must be appointed or someone equivalent to that who has total statute of 9/11. it is time for internal special prosecutors. that's what happens when you are this late. it is no longer that, you got to bring in much bigger guns. >> you mentioned that we won't be talking about in three weeks' time >> this could drag on. >> you are putting it out of their hands. right now everyone is expecting zuckerberg will speak. >> you are expecting that he's

going to speak later today >> great, we'll see. >> we are in the attorney general phase, these guys are tag alongs if you use my method to deflect anybody directly in washington, prosecuting them and taking down the table. susan desmond helman, you must put them out zuck is no longer enough you don't want that obviously and this is a publicly traded company and this is a privately traded company the people who claim they're reading facebook, they're going to instagram in the end, you are stuck, you are not going to snap. you are stuck on this. >> is this an opportunity for snap to strike back? they're two different. >> no, that's like strike against harvard. in the movie social media, larry summers looked like an idiot

he's not >> what about twitter? >> that's ridiculous israelis government, they want to exceed the government whatever the israelis wants to do they want to go twice as much. let's take twitter up the table. >> let's talk a little bit about wh what brian acton has said. he says it is time to delete facebook that's a pretty big statement. that's a pretty big statement from cofounder of whatsapp >> where is he going to go to? is he going to start usin using -- where does he go? you need social media, okay? you cannot just go to twitter like the president he has to have other methods what i am saying, yes, you can go to another bank but wells are

strong, target is more like it because you can shop at other places but that was down 18% i don't know who you go to the idea that you are not going to go to social media and netflix or etsy? >> do you think the business model could be changed forever more now >> the government will not climb down, they send out desmond helman, this is about who's going to do the damage control it is out of zuck's hands now. he's too late and sandberg is too late >> you don't think it is going to be turned off >> again, where are they going to go? where is the fella from whatsapp going to go? >> what is the alternative >> could it they cannot sell thn that, can they they have to be reading our messages directly. >> i don't know. i mean if they're total pirates.

that kind of thing would b be -- even zuck would not want to do that you notice that i said even, i am saying this management team is so tarnished, the board of the only people and a special prosecutor internally, they got to do these because they are so late i am not talking about sterling -- we can get counsels and get tom brady of all people. you can do that. sherman sterling or paul white for fox. they have to do all these now because they are too late, will. >> the latest thing of cambridge analytica there is another recording of the ceo claiming credits for the u.s. election, they came out and distant themselves from that the ongoing question mark over the data firm usage, relationship with facebook and things go on

that sounds like it could get serious political foes that's in the cross hairs. >> that's why you need internal special prosecutors. there are a lot of guys that could play that. fiber has never missed and he's always right this is joel klein may be good they have to take it up another notch, will. they cannot just be -- zuck should have been out much earlier. these are people that we do know, they have to bring board members. >> i was about to say that could board members decide to make changes there that he thought he never had to do >> absolutely. >> even though he's got the voting rights. he could leave >> he could leave the chairman job. >> that did not work well for uber, did it >> that's a frat house now you are talking --

>> is this not still a frat house? it is where it started >> susan desmon helman can come in this is who you make, okay this is what you have to do. you can get ahead of these things, will, any one of those methods that i suggested are better than what they are doing >> let's finalize it with an valuation, 166.75. >> you trimmed back anyway >> 18 times up they could do in 2019 yes, we trim back because it became the biggest position and 6%, never had anything that big. that's a high quality. the stock can bottom, when you get new york ag, like the rhode island ag, who else is left?

maybe the general counsel of ucff we are at the tail end of who could investigate. we are not going to get an investigation of the grad people which by the way first round of the world cup where you should go to. >> england verses tsunia >> we are running out of people we can pile on if facebook can step up and get susan desmon helman out there, it could be helpful. >> could you under estimate some foreign estimates may take >> no. >> that changes the cost of doing business and making valuations tougher >> we produce the content. what do they do. look at the gross margin we should not forget that.

again, we are sit here trying to figure out where you go. what's important for people to realize and including with the whatsapp guy, we all have to have social media. it changed you cannot get away from it. t >> you can leave whatsapp. it is no difference. >> instagram, a lot of younger people when i say what do they think of facebook, they have a new company, instagram >> this is how they get ahead of it and if they just do, if zuckerberg comes out with the hoodie and stuff >> jim great stuff, we'll continue discussions and see what it means for the rest of tech as well as the other fang names when reretuturn, what it could n for the cloud company, also,

starbucks' ceo, kevin johnson, the company is holding its annual meeting today we are slipping a little bit in the free market, negative but not too too much we are back on "ua othsqwkn e we are back on "ua othsqwkn e street" in a couple of this is a diamond you can follow from mine to finger, and trust it never fell into the minutesands. ♪ ♪ this is a shipment transferred two hundred times, transparently tracked from port to port. this is the ibm blockchain, built for smarter business. built to run on the ibm cloud.

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welcome back to "squawk on the street" point let's head to the bond pit with rick santelli at the cme group in chicago. >> good morning, it is an exciting day markets are all heavy moves and some what normal when you are expecting a quarter point rate increase and press conference should be interesting for jay powell we keep moving back with comps to 2008 mostly in august because it was such an increase in 2008 in the first half of the year. you look at one week of 10s. yes, your screen is not broken that's 2.90. this could be the one-ninth session that we are closed in the 280s

like many traders always discuss when they get prepared to trade for a fed meeting, a lot of time you hear extremes of foreign employment date. will this be at the test of the top we move back down. only time will tell. if you look at what's going on with regards to the spread this is a biggie, it was all about steepness of the beginning of the year. you will realize that all the latest have been on the short end and all the lackluster think 19 days 280 have been on the long end maybe the long end for at least this point in time is getting back to some of the basics, the basics are is the economy the growth, the expected gdp and things like retail sales going to resume the tail wind type behavior ahead of last year or is this going to be the new

stencil. we'll have to see and with steeper yield curve should arrive, nothing encapsulate the two-step forward and two-step back more than the dollar index. we had so many failure around 90.5 yesterday was a big day over a half percent today we are giving at least half of that back. it is hard to tell how much it is price in. the first big moves are phased we'll keep our eyes over seas. this bank of england is expected to raise rates the pound and the rates and the guilt complex have been moving higher jim, back to you >> good wage inflation date out of the u.k. this morning supporting the british pound >> jim, if we think back to

december, are you surprise how well themarkets have taken all the rate hikes >> this is a federal reserve that has won and numerous critics come on air and rights have lost. federal reserve have been rational and well ahead of the chatter, jay powell will be the same these people have been masters that's why there is not been any shock quality. every single one of these 25, i heard people say the market is going to go down big and they have been wrong. the first amendment protection if you are wrong all the time, and the people have said that we are going to have the first amendment. >> it is like the magna carter >> what happens is they watch tv, they listen and jay is even

smoother than chair yellen who may just love. >> capital markets experience, he's been in the business. >> he's also funny by the way. >> is he going to crack some gags in his press conference >> i think he can be a little sardonic so to speak, he'll be terrific if people say he'll screw up no matter what because there is always a camp that does that every single one of these was supposed to destroy the stock market where is it? it is much higher. the only thing that's hurting is tariffs. we'll go into tariffs when i do my stock trading >> in terms of the rate hikes, i still think that there could be a question for europe and japan, that may fallout worst in the u.s. >> that totally agree

draghi -- >> corporate is very tight still. back to the u.s. side. morgan stanley saying this yield curve will invert by the end of this year. is that something that worries you? >> yes, i am worried about that because if they raise too fast and too many that's what's going to happen. i don't like inverted yield curve. >> they don't have to raise much to make it >> i think you go to three and a quarter on the ten >> that's where the 30-yield >> we have strong demands. we have a very strong economy, fedex does the best work on the economy better than anyone i think in government and they'll confirm it >> does the rate hike today when we get it increase your conviction for the banks

>> we like to do three more but we are data dependence >> people are wondering whether he'll bring press conferences to all the meetings giving it the flexibility. >> i don't know why it does that >> it will have the wit. >> i missed watching the draghi conferences. he's the master. >> is he >> he's fabulous >> so jim and more on your "mad dash" when we come back.

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we are six minutes from the bell markets are essentially flat right now. jim's "mad dash. fedex, a lot of people are wondering where is larry kudlow on the pespectrum when i work with him, kudlow and cramer, his most esteem ceo that he would put on would be nothing like the ceo of fedex. i am recently certain that this call has some sort of electronic device in your hand, a phone or an ipad. go to your google button and

type in def and put in the word tariffs. everybody at this table do it. what happens he says it is time to do free trading and the president is dead wrong this is larry kudlow, he would suggest that fedex, what they should do when it come to aluminum and especially steel, we suggest they be bought by the government the same way we bought 35 fighters the government should buy these and we should not have tariffs wow. >> wow despite the collection of mr. kudlow, is the president going to listen? >> he's trying to get out, and the chinese have spoken and asked for more information of the nxpi and qualcomm deal and david faber says that's not the case but they're doing it. i have to tell you, that internally at least you just

heard what larry said. >> jim, we'll have to go to the tease. >> i am all over that. >> well, you are wearing a smart suit >> we'll talk more about after this short break because we are a few minutes from the bell. and coming up ne, xtstarbucks' ceo, kevin johnson, live on cnbc and you will meet him. we'll be right back. i'm not a bigwig.

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welcome back, you are watching "squawk on the street" live from the financial capital of the world where the opening bell is set to ring. just about 50 seconds time we got a soft session in europe, it is a little bit worse, down half a percent or so in general, the holdup we saw yesterday and today relative to monday is encouraging particularly on the fang names or which we are affected by facebook >> we got bad corporate news, general mills where the ceo is saying this was a terrible quarter. we got news from southwest air indicating their revenue per

average seat mile is going to be below. >> but fedex is good >> i like fedex. i know the market is not as higher facebook still no word and still goes down. >> let's have a look at the opening bell, realtime here, major league baseball and super cuts announcing a new partnership at the nasdaq. and saint baldrick's foundation of the largest cancer research russell is slightly positive we got s&p down 0.1% we'll have a look at facebook at the open of course, it is already down 10% of the last couple of sessions anymore than that starts to be a screaming opportunity. >> remember they have to do what i said otherwise -- they have to

get in front of this they have not gotten in front of these. we do have comps of what they refused to call data breach and they indicate that the stock can go lower for the ones that did not get ahead. home depot, they threw themselves on their sword and it went down on 5%. obviously, we had the whale with jaime dimon who threw himself on the sword. it is too late for zuckerberg to throw himself on the sword they need to have the board members come out and they have to find them, the board members have to call for investigation it is just too late in the game for them to just say we are going to handle it itself. >> general motor is down a full 9%, jim? >> well, when your ceo on the conference call, i am disappointed in the bottom line and sharp increases and input cost, let's hope powell does not listen to this

he'll do five hikes. >> let's talk about sales force. announcing acquisition from salesforce, do you like this one? >> i saw mark benny out last week and i saw him the week before why am i surprise? this is not a traditional application that i would like. they mention several companies like this. what did they mention? coca-cola many times and what are they mentioning? barclays they are in the sap clients. this is against sap. >> it is a move for those businesses from that german rivals >> it is incredible. this is mr. quincy we are talking about. why would you mention those clients if you did not think you

could get it >> sales force off 3% and mills was up 25% yesterday >> they pay a lot if you look at where the stock is >> 12 months for them. just mentioned some of these oil names which are doing well they were the best sectors yesterday. exxon and chevron is near the top of the dow jim, banks today, not really doing much >> we have to wait for the fed >> wait for the fed? >> this is the descending of fang and declining of fang fang is diamondback. yesterday by the way, no one talked about amazon, it was up gigantically people did not want to acknowledge that it is doing well and netflix is doing well the other social name and

twitter was down slightly unrelated. >> twitter is fabulous >> the progression there is great. >> it is up 30% before the pull back >> they blow the numbers away repeatedly >> i am talking about two incredible degree. twitter is what a lot of people feel facebook was a few years ago. >> they reinvented themselves a little bit is that something they have to do to keep the attention of millennials as millennials age >> by the way, they're going to risk a decline by getting rid of the bots i know in my talks with twitter personally, we used to have a lot of haters and they have gone after the haters and you have to do that. they don't regard themselves as common carriers the way facebook has. they're very proactive >> let's have a look at how fedex opens. talk about last night about the fact that this is encouraging

for people broadly >> the numbers for fedex were extraordinary and they're talking about a lot of different ways they're going to be in walgreens, walmart is very important. this is for returns. it is very good. the numbers were extraordinary for fedex. the stock was down two-points. i thought it should have been up 10 >> the eu company are getting approvals for buyers taking over monsanto over night. the doj have raised concerns monsanto is up a third of a percent or so. >> the chinese want more information. starbucks is holding its chair meeting today. we got a lot that we can learn from this. we got -- >> i want to get to seattle,

never been >> it rains a lot. >> just like london. >> indeed, i have not thought of that, that analog so to speak. we want to get to kate rogers who's there and this is the first one with kevin johnson kate, take it over >> jim, thank you so much, we are joined by kevin johnson, president and ceo of starbucks you have a big announcement that starbucks is announcing 100% pay equities for all men and women of all races performing similar work and you are committed in achieving that globally come at a time a lot of companies are getting pushed back. tell us how long it takes you to reach this goal. >> first of all, welcome to our starbucks annual meeting great to have you in seattle jim, we have a sunny day today, no rain. we have been a company that's focused in taking care of our

partners from the beginning whether it is healthcare for part time workers or providing stock options to or college achievement plan the next step of pay equity or all gender as and races doing similar work in the united states is another one of those things that we do making sure we take care of our partners. if we can retain that talent at t starbucks, what's that creates the magical experience in our star >> you are coming up on your one-year anniversary of the job. the stock is up a third of a percent, it hit an all time high you will speak to shareholders for the first time in that role, what will you tell them to assure the stock will accelerate this year. >> this has been nine years since i joined the starbucks board and the last three years on the leadership team if you look back at this last five years and the work that we

have done to not only build the brand but invest in your future and the investments we have made around things like digital and china and starbucks reserve are setting the foundation of the next phase of growth in my ways i think of my responsibilities to keep starbucks moving fing forward to pursue the vibrant future that we have for our company. to do that, to have the wisdom to know what things to honor and preserve while at the same time having the courage to reimagine and boldly reinvent our future that's the balance we are going to talk about today with our shareholders >> looking forward to hear it. there is a ton of focus on the streets on u.s. comps. you are doing a ton. more experience offering, as ceo, which of those things have you most optimistic to move the needle on comp here in tust.

>> for me it goes back to the concept of the third place we invented this concept of the third place, a warm, welcoming environment where customers can come and have a conversation and a connection with someone over coffee well, over this last three years we really transformed that third place to extend that brick and mortar experience to a digital and mobile experience. today we are approaching 15 million active users in our reward program in our mobile app. the come mitigatibination of the app and the convenience that we provide with the experience that we create in our store is key to the new vision of the third place. it is extending brick and mortar to a digital relationship. we have to innovate in the products and beverages we serve things like espresso or wider

cold drinks in the afternoon in many ways of what you saw yesterday of starbucks reserve is an innovation lapse for us. >> i know jim cramer has a few questions back for you in new york >> first, ken, congratulations on your move for equal pay that'll be the leader for most companies given the fact that you guys are a beacon, great move there is nothing -- >> thank you, jim. >> there is nothing and no one in china works better with the people, has a better relationship -- actual, fantastic place, are you at all concern of or trade policy with china given the fact that you probably have the best relationship across the country, across any company in america?

>> first of all, we work very hard over an 18 plus years period to accomplish those relationships in china in the last five years, we have grown in china from 700 stores to 3200 stores we are investing and creating opportunities for them and in doing that we feel like we have created a brand that the chinese consumers have a infinity for. we do work to ensure to execute against our strategies and doing the right things for our partners in china and making the right investments and playing the long game. we are aware of geo -political fallout that could occur we are focusing on our partners. >> i think you are doing what ever you cannot. what if there is a dollar of

tariff on your coffee, is that something that could happen? >> well, jim, that's unlikely, look, we are going to manage our relationship with our partners in china and our customers in china for the long-term. we'll navigate whatever situation come at us we'll do that knowing that we have set the foundation with the right kind of relationships with your partners and the right kind of relationships with your customers and the right relationship with the chinese government >> kevin, you announced the 15 million mobile, that's a quantum jump from the last time we talked what is happening with the app that's such an accelerating number >> jim, we continue to add active reward members to the program. we are widening aperture by opening up mobile and pay to non reward customers throughout this month, we have been opening up mobile and pay,

we continue to grow those digital relationship with customers and we have plans to lay the foundation for a much larger base of digitally connected customers. we think that's a very key aspect of driving comps in the u.s. >> kevin, i got to say when people ask me, jim, i need you to do something for starbucks, if you interview them, can you tell them there are two kinds of starbucks, there is the ones that's owned and operated and the ones that are licensed the ones that are licensed people think it is not a regular starbucks. is there a way to get the baristas feeling better. i don't get the same tone at a -- what can you do to unify? >> our license partner don't deliver a great experience

certainly there are some store that is are company operated that we can do a better job and some stores our licensed partners know they can do a better job we got great relationships with them many of them are here at our shareholders meeting the challenge that customers see and outline is how do we continue to scale the number of stores and partners and deliver a consistent, great starbucks experience each and every time that's something we have to operationally work out every single day it starts with investing in our partners announcements like the pay equity, announcements around the increase in wage and other things we have been doing all add to that. >> kevin, wilfred frost here, i want to ask you of the idea of your app strategy. interested to know what you do with the data that you pick up from that. how important of the protection

of that data and would you sell it to monetize it further or purely use to enhance your customer experience? >> we are a brand that works to build trust with our customers we would never sell that data and we protect that data we only use that data for us to provide relevant offers and relevant communications to our customers. that's very important to us. we feel that customers who put their trust in us and we'll continue to earn that trust each and everyday >> kevin one last point, grocery, next one milan, what do you have in mind >> one of the things that i learned, when you innovate at the high end of your product line, not only you create a halo, you can take those elements and weave it out of the product line

that's what we are doing with the starbucks reserve and roastery milan is up on the list. kate was visiting our new starbucks downstairs in our offices, that innovation around experience is helping us flow concepts and ideas throughout the entire brand we'll continue to invest in that and we are excited about milan >> kevin, one last question. last we heard from you, you were optimistic on tax reform are you seeing more consumers coming in and spend at starbucks just yet >> i think it is mature to attribu attribute anything that we see in our stores. we may use a portion of that to invest in your partner and i believe that's the right decision i do know if we take care of our partners they take care of our customers. >> kevin johnson, thank you so

much for your time this morning. looking forward to the meeting >> thank you >> jim and wilfred back to you >> jim, china is so important to them, is it a risk that's encouraging comment tribtary but trade war can get out of the hands of your country. it would be amazing to me if the chinese government went after starbucks given how much schultz have done to make it sure that starbucks is in graingrained ina >> if it gets to starbucks, it is not a trade war. >> there are other things bigger to worry about >> starbucks is about as good as its gets in terms of being an

employer and the prc >> it is been stuck and a lot of that is u.s. seems to have not been able to accelerate. i am very encouraged by what he said about mobile pay. that's so necessary and the club feel, that's so necessary. unless we see an acceleration, this is 55 pnts.60. now i think they'll add this new level of uncertainty which is how much are we going to level at china are we going to make it so it is 30 to 60 and that puts a dollar tariff on coffee that's going to be something >> we'll take a look at the deutsche bank. of course, that was an important source of funding for them

coming up. the price of deutsche banks are down 5%. >> i am going to zoom out and look at the price during 2007. deutsche bank has gone down to 28 billion and u.s. banks jp morgan is more than double it is amazing. could that derail things more in the u.s. since december 2015 it is amazing that european banks are still struggling this month. >> this is incredible to me. the german economy has been strong the whole way deutsche bank in america, i felt of a good preference they were tone deaf of the investigation here wolf, you have been u

uni-credited -- >> why is that people still worry if there is a number of firm that has not bee too strong, too many fines, it worked for them because they faced up to the problem and took the medicine and look how they're firing on all cylinders, hasn't happened in europe. >> secretary geithner demanding everyone raise, probably one of the most hated, hated issues, edises from the government, turned out to be well. i'm going to make a statement, you have to qualify it, defeat it i think the best bank in europe as far as bank is bank of san tan der. >> it has good exposure to latin america. >> a great management team. >> heading up lloyds in the uk. >> jpmorgan people. >> right still to come much more on the

facebook data scandal rocking the company and stock. it's down 2% wow. 10.6 in one week how and should the social media giant be regulated harvey pitt will join us .

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welcome back to "squawk on the street." i'm diana olick with breaking news from the realtors existing home sales in february up 3% to a seasonally adjusted annualized rate of 5.54 million units, that's a beat the street was expecting less than 1% gain sales, though, still up only 1.1% compared to a year ago and this comes after two months of sales declines big divergence regionally.

in the northeast sales dropped 12.3% month to month most is being blamed on bad weather but also some weakness in the high-end possibly due to new tax laws not so in the west sales there up 11.4% and the realtors say the high end there still very strong, especially in california national media and existing home price $274,700 up year over year, no let up in prices. why? supply is still at a critical low. 1.59 million homes for sale a slight bump up for the month which always happens as spring approaches but still supply at the end of february down 8.1% from a year ago to the lowest on record, or since the realtors began tracking it in 1999. first-time buyers are not coming back as strongly as last year. realtors say they are not hearing consumers worried about higher mortgage rates or tax laws, but sellers don't want to list their homes because they don't want to lose their low mortgage rates

>> prices up, supplies down, housing shortage to us thank you very much. good morning welcome back to "squawk on the street." i'm kelly evans with wilfred frost live from post nine at the new york stock exchange. >> good morning. you're sitting on the wrong side. >> i know. we're switched carl, david and sara are off today. >> since the closing bell -- >> you've had fewer hours of sleep than me. >> are you saying i look tired >> no supply the s&p is lower after the existing home sales numbers and before the fed meeting in about four hour's time our road map starts with facebook fallout shares continuing to tumble in the wake of the major data collection scandal >> d-day at the federal reserve. wall street taking the wait-and-see approach as they prepare for jay powell's first news conference. >> and winter weather alert. another major snowstorm bearing down on the northeast, shutting business, canceling flights, the

government on hold we have the latest. >> the facebook fallout continuing this morning. a group of investors are suing the company over the cambridge analytica data scandal julia joins us with the latest >> when a company loses $58 billion in market cap in a couple days the lawsuits start coming a shareholder filed a class-action lawsuit in san francisco federal court claiming facebook, quote, made materially false and misleading statements. we expect to hear from ceo mark zuckerberg today a source tells us that he's going to be speaking out for the first time since the scandal broke. he'll likely post on his facebook page and talk about rebuilding, trust and how facebook will make data more secure facebook saying yesterday, quote, mark and sheryl are working around the clock to get all the facts and take the appropriate action moving forward because they understand the seriousness of this issue. the company is outraged we were deceived on capitol hill facebook executives started meeting with staffers at six different

congressional committees meetings are set to continue over the course of this week this as the ftc, without commenting on whether it's investigating, says, quote, we take any allegations of violations of our consent decrees very seriously, as we did in 2012 in a privacy case involving google now back in 2011, facebook settled ftc charges it made private information public without warning and shared data with app developers. the company would be liable for fines if found in violation of that consent decree. now last night, whatsapp co-founder brian acton tweeted, quote, it's time #deletefacebook. facebook bought whatsapp for $19 billion in 2014. acton left the company in september. acton joins a handful of early investors including roger mcnamee and shawn parker who have criticized the social networking giant back to you. >> thank you very much for that. now the facebook scandal isn't just impacting that stock alone but dragging down all social media stocks with it

for more let's bring in ken, senior analyst at wells fargo and rob, analyst at mkm partners very good morning to you ken, i will start with you, you note out saying this is a buying opportunity for facebook tell us why you're not concerned about longer term downside >> i think you can't not be concerned. i think there is concern, but i think it's a question if the concern measures up to the $58 billion or so in market cap. we can't make those numbers work and we've tried across cambridge analytica, the effects it could have on gd pr in eu and the rest of the world look at facebook and say it trades among the cheapest of our coverage but has better growth opportunities and there are some things at the company going very well i would say instagram. so i think as you look at instagram and the opportunity there, i think it offers a natural, you know, natural alternative for individuals who are looking to disengage to facebook for some extent and relies less on personalized

data i would say those are three reasons we think this is a buying opportunity for a lot of investors here. >> facebook shares down about 10% this week. rob, interestingly enough, twitter caught up in this, but as will fred and jim discussing, seen as a better position company, can the likes of twitter, snapchat, amazon, capitalized on of the problems for facebook right now >> i don't know those are directly compareble. i think the use case for facebook is different than the use case for twitter, for instance i think the idea of content and data security and the, i guess, the responsibilities of the networks must take to protect their constituents is sort of, you know, a worth while discussion that's been on the table for a couple quarters already, and those companies fit into the discussion, you know, as -- with as much relevance as facebook does. but in terms of picking up users or capitalizing from ad dollars, i don't think that it's directly

applicable in this case. >> ken, i get your argument you find it hard to find 50, $60 billion of market cap downside compared to last week for facebook what about how this might change their users' thought process about the whole platform and whether or not facebook is abusing them does facebook has consumers' best interest at heart and consumers' waking up to that. >> i think you can say yes, and the investment facebook has high lighted as wanting to make this year has to do with security and the health of the platform as you're looking at the data harvesting it did happen years ago. the policy had changed post that event. i think facebook probably deserves some, you know, some responsibility for not acting more aggressively and quickly against cambridge analytica, certainly, but to say that that measures up to the effects that we're looking at, i don't think that's the case. i think if you look at other

even data breaches, which i wouldn't say this is that, you're still not getting to the numbers closes to what the market impact would suggest. yes, are you going to have some fallout? is this going to be a continued black eye for the company? i think publicly most definitely but if you step back and look at the valuation here and other things that are going right within the company you've got a lot of reasons to want to own this name. >> rob, before we go, you know, since you mentioned you don't think that it's directly applicable the likes of twitter or snapchat are going to seal advertisers from -- steal advertisers from facebook because of this it's not seen as losing advertisers because of this, is it more a concern about losing users is that paramount for facebook >> i think the bigger concern for investors, frankly, is that, you know, this is not an isolated incident and there has been, you know -- will be ultimately revealed as other instances of misuse of data and faulty protections on the data security that's the only thing i think

could explain the stock. for advertisers, i think they look at these platforms, if there's high engagement they get high convergens and industry leading rois >> if there's high engagement. but all this hangs like you said if there's high engagement they get the high return on investments. look, wilf can offer a testament to being less engaged with the platform today than he was a couple days ago. is that not a concern? >> i would think that's an anecdote and people highly engaged in the media and investment community and are privacy advocates are offended and concerned. i do not think that represents the mainstream user, 2 billion monthly active users on the platform. >> you just got reduced to an anecdote. >> to be honest i wasn't hugely representative of all millennials. before we let you go, ken first,

rob second, what's your top pick among fang and why. >> i would say facebook right now. facebook again, there are certain unnoenz but if you step back you're looking at an opportunity to buy a company where social is not going to go away our use of social will change and investments will be made look at instagram and the importance there, how media buying decisions are made, facebook is a great opportunity to buy. >> rob, quickly, top pick. >> i think i agree it's facebook certainly if you're a contrarian momentum it's netflix. >> thanks very much for joining us much appreciated. >> thank you another massive winter storm slamming into the new york city area the fourth nor'easter in less than three weeks thousands of flights have already been canceled. morgan brennan joins us from a plum assignment at laguardia what's going on there? >> hey, kelly. that's right well the snowfall here at laguardia is certainly picking up the pace here and as that

accelerates american, the carrier behind me, has announced they're going to suspend all their flight operations starting at 11:00 a.m. eastern. that said, for the last couple hours as you can probably tell behind me, it's been largely a ghost town if you take a look at these boards back here almost every flight has been canceled only two flights in the last couple moments that remain on schedule, one to miami, one to chicago. we managed to catch up with a few of the travelers who are looking to board those planes before this crackdown here at laguardia takes place. >> the first one was canceled. but they told me yesterday, so that was easy. i could get up a little later. >> 2:00 yesterday out of here and then last week i got stuck in maine, also canceled, had to drive from here to philadelphia. it's been quite the trip. >> reporter: so flight aware says that this is currently we're poised for a record for march going back to when it started tracking data in 2013.

we have well over 10,000 flights for the month now canceled today alone, more than 3700 flights have been canceled almost 600 additional flights have been delayed and guys, it's not much better on the ground either you've got amtrak operating on a modified schedule and they have canceled dozens of trains moving along the busy northeast corridor what makes this notable, not only are the forecasts calling for 12 inches, maybe more of snow in many parts of the northeastern region, including here in new york city, what would be potentially record snowfall for this time of year, but this is the fourth nor'easter to hit the region in the past three weeks that is beginning to take a financial toll on the region planalytics says all the storms including this one will negatively impact retail sales by 3 to $3.5 billion money that would have been spent by consumers and not likely to be recouped, money spent on

restaurant, apparel, retailers, home improvement retailers because in a lot of these stores the inventories are stocked for spring given the fact that we're already two days into spring and no one was really expecting yet another winter storm back to you. >> you know, morgan, they're now -- they're so proactive it's hurt i go to catch the train in this morning, and, you know, it leaves before it's supposed to leave. i'm running after it and waving my hands at the guy. they were on a weekend schedule already. wasn't a drop of snow on the ground i -- >> there were tears. >> yes we've seen the same thing play out here at the airport whereas in years past you would see stranded, irate travelers, sort of stuck here at the airport there's a few of them here but not many like in years past. the reason because these airlines have got son proactive, a lot of these flights, thousands were canceled last night and for days now we've

seen those ticket fee charges waived and so they're looking to get ahead and the idea they don't have assets, planes, crews, that are stranded in places like laguardia, they can more quickly mobilize them after the storm has passed. >> all right morgan, thank you. great stuff. morgan brennan the best part after my little meltdown, it's going to be a half hour, i'm going to be late. the local comes chugging along five minutes later felt like an idiot. >> you made it. >> i did >> and in plenty of time for "closing bell" as well. >> exactly when we come back, it's decision day at the fed new federal reserve chair jay powell getting ready to hold his firsts news conference a look at what you can expect straight ahead and wall street looks like it's taking the wait-and-see approach. stocks right now have the dow lower by 20 points we'll be right back. eady for ta. we're invested in creating the world's first state-of-the-art drone testing facility in central new york and the mohawk valley, which marks the start of our nation's first 50-mile unmanned flight corridor.

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♪ ♪ it might be a pain but that snow is pretty markets are waiting on new fed chair jerome powell's fed meeting expected to raise rates later today. with us the ceo of oppenheimer and head of fixed income, and samantha, jpmorgan analyst, here with us at post nine it's a big day but it also feels right now anticlimactic. what could they do that you

think would be shocking? >> 2018, whether it is three hikes or four hikes, i don't think that matters a lot what matters is what their outlook is for 2019, and that sort of will tell you whether they're going to be overly aggressive or not so aggressive. i think that has a big bearing on the markets in a substantial way. >> i guess at the moment, the quarter point hike is fully expected but what i think people are looking at is whether that's going to mean we're going to see a flattening of the yield curve later in the year. what's your expectation for the shape of the curve later in the year >> the short end of the yield curve is not talking to the long end of the yield curve there's a bit of a disconnect there. we expect long rates to go up, the 10-year yield between 3 and 3.5%, but not much higher than that you still have growth which yes, it's expected to pick up, but it hasn't picked up yet and neither has inflation. >> christian, is the fed a side show right now

there's so much happening on the policy front if washington, we're still talking about whether there will be a government shutdown at the end of the week and everything with trade too. >> in the short term, yes, but in the long term, it's really about the fed, whether the cycle ends or not, is totally contingent on -- >> the rally. >> the economic cycle, market cycle, whether that -- whether it ends up being the longest cycle we have ever experienced or not. >> only until september to be. >> but i think it has a lot more room to go but the one entity that can kind of change all of that is the fed. i don't think they will. i think at some point the economy starts kind of normalizing, but -- and it happens because a lot of the u.s. deficit finance growth ends up leaking overseas but we will see and we will only find out towards the end of the year whether that happened or not. >> what could be a surprise today in his testimony that would make the market move in either direction i guess so far when we heard him in congress he was relatively

hawkish, if he stepped away from that might it be a positivity for the markets. >> jerome powell is a plain speaker. we're looking to see whether the growth forecast for 2018 and 2019 are pushed higher for 2018 it was 2.5. we want to see if that's going to be closer for 3, and for 2019 the fed estimating 2.1% growth does that go up because of stimulus or not? i think that's what the markets should be watching. >> and so stimulus again, we're talking about two prongs now the monetary side of it, some people argue it's still stimulus even though they've been pulling back and the fiscal side of it, the tax cuts and everything down the pike is stimulative. >> we're speaking to the fiscal stimulative coming from the administration yes, the tax cuts have may be priced into the markets, but we have not seen consumer or investment spending surge yet. >> where do we see the dollar go from here? it's been confusingly not really linked to rates so far. >> absolutely.

i think if you're looking for a weather vane the dollar is the weather vane i think the growth is going to pick up because of the stimulus. but does it pick up so much that we end up tightening a lot i think the dollar will tell you that story our expectation is the dollar remains relatively stable. if the dollar strengthens a lot that's really bad. and if the dollar weak an lot, that really means that inflation comes back in the u.s. and the fed is going to end up being -- >> larry kudlow will not like the strengthening dollar mr. king dollar is in the white house now and feels a little differently about this than trump and his treasury secretary. >> steve mnuchin was all about weak dollar and all of a sudden we have a strong dollar. i think to some extent job owning the dollar doesn't matter anymore. it's about flows if we have foreign investors investing in the u.s. everything would be okay. if we don't have that, or if money comes back big time into the u.s. because emerging markets have started slowing

down we are going to have a problem in the global economy. >> thank you good luck with the shoes. >> thank you very much. >> this week is about the strong pound. >> is it >> up another half a percent >> why so. >> bank of england, better than expected wage data this morning. possibly a hike there as well. >> glad we traveled when we did. >> indeed. as we get back to break, let's have a look at salesforce. the company buying mooulesoft in cash and stock it was up 25 already later, auto racing giant indy car getting a new home the five-time indy car series winner and the ceo wiljol in us. "squawk on the street" will be right back don't go anywhere. t? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it.

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it's just complicated. step-by-step options trading support from td ameritrade > welcome back to "squawk on the street." for our etf spotlight where mike san totally is looking at trans ports. >> strong third quarter earnings markets receiving it well right now. the etf that tracks the dow jones 20 transportation index, the iyt, actually fedex is one seventh of this etf. the dow transports like the dow indexes is price weighted.

not going to find many sector etf that have the largest component be 15% which what is fedex. the rails maybe aren't as strong ups a mixed story. it's interesting given how this has prepared, almost right in line with the dow industrials. some people look at it as the economic belt weather and economic theory. >> show it again is it down this morning? >> the transports are down this morning. so essentially, the -- fedex is giving it a lift but not enough to offset the rest ups flat, airlines are in there as well as the rails. >> just to something sort of related but not totally because it's been front and center the last couple days, crude up again today, up yesterday. energy stocks doing well off the back of that enough sort of market leadership to get us going again? >> just in general for the markets, i wouldn't say so more like the laggards getting picked up to bide our time to see if the leadership does gather around.

retailers stronger today laggard groups getting picked up as opposed to a shift in durable leadership. >> we know if jim cramer was saying he thinks fedex shares should be up more, in which case lifts the transports into the green, maybe into the green for the year which it still is roughly flat. >> it's roughly flat as the dow is. about 6.5% off its high. everything is in that neutral zone right now a lot of the market bellwethers. >> cues maybe from powell, maybe from elsewhere thank you. mike santoli we have much more on the facebook scandal rocking the company and stock which is lower again today. down less than 1%. how and should the social media giant be regulated former commissioner harvey pitt diusthoin us to scs at "squawk on the street" will be right back

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your cnbc news update at this hour the suspect in this month's series of bombings attacks in austin, texas, is dead according to the police chief, brian manly, the suspect blew himself up with an explosive device following a confrontation with law enforcement officials the recent bombings killed two people and injured four others. cooperate news for you as well, travis calan nick has a new ceo gig. the former uber ceo is officially the chief executive of the raelts start-up city storage system, a real estate company that seeks to buy distressed real estate in the areas of parking, retail, industrial and re purpose for the digital era. mortgage rates fell last week the average 30-year fixed rate declined to 4.68%, the first decline this year, but the slight rate drop really wasn't enough to spur refinancing which took a sharp dive, down more than 1% from the week before and if you live on the east coast you know this story, another big winter storm

battering the northeast. it's the fourth big storm in three weeks. more than 3,000 flights up and down the east coast have been canceled flight aware says it is the worst march for cancellations in at least five years. that's the news update this hour over to jackie deangelis for the eia inventory report. >> good morning to you, sue. crude prices are trading higher by 1.5%. the eia reporting a draw down in crude inventories of 2.6 million barrels, gasoline of 1.67. this was a surprise number we were looking for a build of 2 million. last year 5 million. more in line with seasonal trends seeing a draw, not expected, but it's not a substantial draw, so you can see prices are trading just a little bit over 64.5 at this point the market is focusing on a couple other factors as well they're focusing on saudi/iran tensions a little boost in the last couple days. and within this report u.s. production, over 10.4 million

barrels a day. so that number continues to be on the rise. guys, back to you at post nine. >> jackie, thank you jackie deangelis there that makes crude one of the biggest movers this morning. i'm kelly evans along with wilfred frost. we're an hour into the trading session. here's a look at where we stand. the dow down 44 points s&p fluctuating between gains and losses all morning down a point. nasdaq on to a 1 point gain. >> interesting in the news update from sue that travis has his new gig. i wonder how good it will look in years to come, even though forced out and forced to take a billion of cash of his 3 billion holding, valuations fall from now, even though he didn't want to take -- >> what do you mean? >> if uber doesn't come through in the end -- >> feel like they did the right thing pushing him out. >> although he didn't want to get pushed out, taking cash over a third of the stake and could be the best valuation he will get. who knows. he's able to continue with a new job, banked a third of his stake

and two-thirds exposure. >> we all watch with great interest to see what the next chapters may be. still no word from mark zuckerberg or sheryl sandberg in the facebook/cambridge analytica scandal. this as regulators around the world begin to turn the heat up on the company the stock continuing to fall down about 1% today. down about 10% this week it's lost more than $60 billion in market cap just in the last two six sessions joining us from watching, former commissioner harvey pitt, currently ceo and managing director at callrama partners and former white house political director and cnbc contributor sara feigen. welcome to you both. what is the appropriate role of regulation here? people calling for a new digital agency like the epa. is that enough or will customers trust the market to do the right thing and say i'm over this website and leaving and that's it >> i don't -- i think facebook's reach is too great for customers to walk away from it there's not an alternative right now for people to communicate with their friends, at least in

the way those of us over the age of 25 do it. you know, hearst here's the thing. you've got republicans and democrats alike asking very serious questions and i think this is not likely to have a happy ending for facebook. i think you will see years of regulation, years of investigations, questioning about their data practices, their privacy restraint for consumers and likely to face significantly more regulation and this is not going to go away any time soon. >> harvey, in terms of what facebook has and hasn't done wrong here, clearly they say that they weren't hacked and that, you know, they were duped as it were is that a fair response from them >> no. i think it's actually a very poor response. the statement is accurate, but false. it isn't really a question of whether they were hacked

it's a question of whether their data was used for improper purposes and that, it seems, clearly occurred denying a hacking is just basically trying to deflect the problem in the hopes that it will go away, and this problem is simply too large to go away >> harvey, what was the improper usage as far as you can tell >> well, the improper usage is that this company cambridge analytica apparently received data on about 50 million facebook users and attempted to use that in terms of a political campaign it doesn't really matter what the use was. facebook had already been sanctioned previously by the ftc. it has had data problems and it apparently knew about this for two years and yet the data was used for improper purposes

>> sara, one of the things that has made this story kind of more attractive for everyone to cover is the potential links cambridge analytica had with the trump campaign but a campaign using social media data, a campaign trying to maximize the data that's available, is that anything that's actually to be ashamed of is it, in fact, something that previous obama campaigns have done itself as well? >> yeah. >> they have democrats and republicans alike use data to do more efficient job of targeting voters and communicating with voter on issues they care about there is a benefit to voters when the data is used as long as it's used properly and good data standards and practices suggest you have very clear systems in place to protect people's identity and not share it with third parties and that seems to be where the breakdown was that an individual mined this data off facebook and improperly shared it with

cambridge analytica and cambridge analytica certainly doesn't appear to have protocols in place that are very responsible. so, you know, the one thing that's interesting about this, you know, for all the improper use of data, perhaps, i don't know that this firm was particularly effective certainly in republican circles at the time of the election, they were not widely received to be doing a great job there was frustration inside the trump campaign with cambridge analytica. so i think that's being lost in this discussion, even though they did something improper and it needs to be investigated, i tonight know that it was actually -- i don't know that it was actually being used in the campaign. >> the third-party researcher involved in all of this said he's being made a scapegoat by everybody involved and facebook's only policies about the use of the data has changed, since to disallow something that then was allowed so what were you going to say? >> the problem here is basically

they were alerted, according to news reports, facebook was, two years ago. they already had a consent decree on the books against them somehow their initial approach when they learned about this, according to news reports, is they did nothing and instead attempted to deflect the problem. they had an obligation to protect their users' confidential information, consistent with their previous order by not doing anything, they really made this a serious problem for themselves >> sara, just to round things off, realistically, when could any law or regulation be passed to really change the playing field for these social media names? is it likely to happen and by when >> that's a great point. because of how inefficient our congress works today, you know,

that's maybe the best thing facebook has going for it, is that you're unlikely to see fast action but, the one thing that we know from having watched these data stories over the last couple years and they're building and been building on facebook for quite some time and intensifying, is that it's going to happen. i would suspect it would happen maybe next year after the midterm elections before you see any punitive action. but if more revelations come out and congress feels like they have to do something, it could, you know, you can see things happen more quickly. i don't know that this is enough, but i suspect something is coming to facebook, certainly in the next couple years, they're not going to like. >> the share is making a comeback trying to turn into positive territory snap and twitter, snap up 3%, twitter up 5%. sara and harvey, thank you both. when we return, indy car getting a new home a look at the money and

competition behind live sports rights the countdown is on to the fed decision a look at what we can expect former fed governor mark olson will join rick santelli. on "closing bell," we'll hear from the founder of grant interest rate observer, jim grant. "squawk on the street" will be rit ckghba mercedes-benz glc... ...with its high-tech cameras and radar... ...contemporary cockpit... ...three hundred and sixty degree network of driver-assist technologies... ...and sporty performance... ...what's most impressive about the glc? all depends on your point of view. lease the glc300 for just $449 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

welcome back let's get to the cme group in chicago an rick santelli >> thanks. i would like to welcome my guest former fed governor mark olson thanks for joining us this fed decision day >> rick, thanks for having me. always glad to be here. >> all right i want to cover two topics but the first one briefly, do you see anything outside of the notion we're going to get a quarter point increase, the sixth since the first one occurred in the summer of 2015

to bring the overnight rate to a range of 150 to 175? >> i do not see anything that will stand in the way, quite to the contrary, i think if it doesn't happen, it will be a reflection, the new chair's leadership, and that would be very unfortunate >> i completely agree. let's pick a topic globalism. it's affecting everything right now. maybe even the stock market. globalism in deference to trade, immigration, but i want to cover it in terms of harmonizing monetary policy. it's no secret what europe and other central bankers do affect our economies and stock markets. i want to know the interconnectedness, pros and cons, with the u.s. leading less accommodation move with regard to domestic and globally for all central banks. >> i think there needs to be that linkage and that linkage is very important as you know, there's a tremendous amount of

communication among central bankers. further, the way everybody models the economy, their own individual domestic economies, they take into consideration any changes in monetary policy and all of the other major financial institutions and the major countries. so, for example, we will look very carefully at what china does, at what the europeans do, at what the canadians do, mexicans do, that will make a huge difference for us because of that interconnectivity. that said, the global economy has been very strong. >> indeed, it has. i guess, i'm both happy and a little fearful because in the end, is our less accommodation going to have more an effect on other central banks or are their accommodations going to stay longer and negate some of our less accommodative stances >> when the u.s. sneezes, the world catches a cold

so it makes a whole lot more difference what we do than what they do. >> and i think that's really key here because we see the spreads with bunds approaching the widest since 1989. we see the bank of england tomorrow most likely going to raise rates. i guess my final question to you is, how does all of that in the big picture affect what has been a relatively weak dollar the last year and a half >> well, there's so many factors that move the dollar and i think the stronger economies have a lot more factor than does the monetary policy considerations of their central banks it's more economic, it's more having to do with global flows than it does with monetary policy >> excellent answer. i really like that one, mark thank you, again, for sharing your views kelly, back to you >> good stuff, rick. thank you. rick santelli. it's time for our sector sort. courtry, more importantly, we've

discovered wilf of's true talent back here, okay. he can do -- he did like an irish, maybe a scottish, welsh accent. >> off camera. >> david beckham. >> off mic. >> i love his accent his american accent is also quite good if you've heard that. >> courtney has heard these before. >> it's very impressive. anyway, go ahead. >> thanks, kelly i have a sector sort for us. markets are mixed this morning energy standing outs as the best performing performer wti is higher. the sector for energy up 2%, oil prices continue to rise up for the second straight day. all stocks in the sector in the green among the top leaders for the group, range resources, hess, and newfield all up over 4% we'll send it back downtown to you guys, accents and all. >> thank you very much >> do you want to read this with like an irish? >> no. that was for the breaks, we said that anyway -- >> everyone else to experience this. >> send it over to john fortt with what's coming up. >> saved by the bell

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welcome back to "squawk on the street." indy car announcing a multi year media contract all races on nbc sports starting in 2019. nbc sports is owned by our parent company comcast for more on the deal, joined by mark miles and five time race winner james hinch good morning to you both thanks for joining us. mark, kickoff with you in terms of the deal and relationship with nbc sports. to what extent do you continue to see impressive viewing numbers because of this live sports aspect in the media world? >> we're on a roll now, last four years had about 40% increase in television audience. having nbc have the whole property and having more races than ever on nbc sports, the

rest on nbcsn is the next step. >> talk us through the bidding process when we consider the live sports deals, everyone is wondering how much do internet names bid for it did you have discussions with the likes of netflix, amazon, et cetera or was this just a straight battle between the broadcasters >> no, we talked to everybody and for us i think the day is coming still when the big internet platforms will weigh in at this point there was an interest but we're excited to have direct to consumer offering first time on nbc. >> how would you like the sport to evolve when the excitement is around electric cars and ones that drive themselves frankly. >> that's a fear for racing drivers, isn't it. autonomous vehicle isn't our favorite thing no but as the world develops and technology develops, there are always motor sport fans that want the athlete really manipulate a machine, things

that a robot can't do, you know. >> do you think you could beat a robot on that track? >> i think i could yeah human elements. >> one way to find out, my friends. >> that i would watch, humans versus robots. that's a totally different deal. >> one of the interesting points when i came to america, the global appeal but not like soccer, applies to nascar. do you think nascar and partnership with someone like nbc can help you expand horizons to be a more global sport than you already are? >> one of the benefits we have at indycar is the multi culturalism of the drivers we have guys from all over the world, whatever engine manufacturer, japanese, we're more global in that sense. we have partners from all over the world as well, so as we expand our foot print in the states, gives us a -- >> careful, they'll say we want

indycar u.s. made and operated this is a huge event big race obviously next year, indy 500 you guys own that speedway, correct, and also how is that doing in terms of turnout? that's again one of the instances where in the past hundreds of thousands would turn out. how do you continue the popularity >> it is continuing. the last four, five years, on the increase we had 350,000 people for the race at the 100th anniversary in 2016, and over 300,000 last year it is the single largest attended spectator event every year in the world and it's growing. i think with nbc's special ability to make a big event even bigger in sports, it will be more clear it is a phenomenal event. >> can you broaden the type of viewer as well

>> especially the younger generation, how do you make sure they're watching >> that's the goal with everyone big thing for us with this deal is added content, ancillary programming, sessions never broadcast before will be broadcast, whether online or through gold subscription program. more content you generate, we are a content hungry society as we get into the new deal, we're generating more, utilizing technology and apps for exploring opportunities. like everyone else, trying to stay ahead of the curve, guess what the next thing will be. >> james, you did "dancing with the stars" as well. >> i did, yes. >> how did that go down? >> i think they all had a lot of good jokes planned for after the first show then on the first night we had the highest score, and they all text me, we were going to make fun of you, but that was pretty good, so i don't know what to say now. it was a unique experience for sure. >> tried ballroom dancing once, it was a debacle you must be a very coordinated person to operate the race car

but pull that off as well. >> i sit for a living, it was surprising to all of us we made it that far. >> mark, you mentioned i don't know if it was jokingly, maybe you could see something with autonomous cars racing ones humans are driving is that a possibility? >> i don't see it in plans for racing, but we're beginning to work on whether to develop anna ton must indycar for lots of reasons. one could be just to get attention for how well he would do against it, could be promotional as we go around the country and draw more attention. >> what happens if he loses? >> then he'll come back. >> i'll unplug the battery >> easy way to get around it thanks for joining us. pleasure to have you with us. >> thank you. dow down about 12 points staged a little come back this morning. s & p as well. the scandal continues to rock facebook as leaders maintain

their silence. we have the latest when we come back "squawk alley" back in two

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facebook headquarters in menlo park, california 11:00 a.m. here. "squawk alley" is live ♪ ♪ good morning welcome to "squawk alley." with me here, facebook shares rising slightly. the company lost more than $60 billion in market cap in the wake of the data scandal brian acton weighing in on the crisis it is time, he tweets, #delete