bouncing back. wall street pointing to a higher open following last week's big selloff. find out what is driving the sudden turn around straight ahead. demanding answers. lawmakers calling on facebook to provide more details on the scandal. the company now apologizing. and speaking out, apple ceo tim cook talks privacy and trade in china we're live in beijing, it's monday, march 26th, and "worldwide exchange" begins right now. ♪ ♪ let get it started in here let's get it starts in here hot let's get it started ♪ indeed, let's get it started. get your coffee, get on a

treadmill. good monday morning, i'm brian sullivan thank you for being with us from wherever in the world you may be watching here are your top 5 at 5:00. the five big things you need to know to start your day dow pointing to a triple-digit pop on the open. this on reports the u.s. and china are quietly discussing ways to ease any brewing trade war, futures indicating a higher open one stock that is unlikely to recover today, facebook. shares continue to move lower. the company taking out full-page ads in newspapers over the weekend apologizing. facebook shares now down 14% in the past week. america's oldest gunmaker filing for bankruptcy. remington filing chapter 11 in a delaware court john williams should be headed to new york. sources telling cnbc williams is the front-runner to be the next president of the new york fed. and finally, investors isn't russia are looking into the cause of a deadly fire at a shopping mall in siberia

officials say more than 50 people were killed in that blaze. more and all of these stories coming up, but first, let's get a look at your money on a monday a decidedly different look this morning in the big selloff we had last week which by the way was the worst for indexes in two years. u.s. stocks indicating a higher open japan bouncing back a percent. mainland china is down europe is slightly higher across the board. we are seeing the dax up 0.4% in germany. oil slightly lower today keep in mind, grud is still up 8% this year many oil stocks last week rose even in a down-market energy, one sector you want to keep your eye on right now well, as we noted last week was the worst in two weeks for stocks overall, but perhaps some of that negativity has turned around futures are looking solidly higher at the open and joining me now is mark avalon, president of potomac wealth advisers.

mark, listen in d.c., your town over the weekend, you had the treasury secretary making the rounds looking like he was trying to calm the market about a trade war. do you believe that's why we are seeing futures indicating a higher open today? >> absolutely. the reason this market got so skittish was because of the trump talk on tariffs. when you look beyond that, you see a continued global growth story. you see corporate earnings going to be up almost 20% year over year and the impact of the tax cut going to help the consumer so, the only thing that's in the way right now it seems is talk out of washington. and when mnuchin came on and tried to put those at ease, i think that's why you see the global markets are steadying today. >> do you believe this will last, was last week perhaps the anomaly? or is the reversal today the anomaly? >> well, last week had a few events i mean, you had bad news on facebook which hurt the tech sector you had the tariffs.

you also had tough talk out of the fed chief saying global growth is strong enough to make a couple rate hikes this year and the next two years a very strong probability so there were a couple of events last year that made the market skittish when you get back to growth and this year could have positive up-year. >> are you scared of the fed >> well, jerome powell, or jerome powerful, he may be the most important part of the story. he did raise a number of hikes in the three-year forecast interestingly enough, the tariffs is what drove down the ten-year but those two forces are not good for the market. we don't want to see too aggressive a fed or too many tariffs because neither one of those is good when you look at 2019 >> on a more stocks-specific mark, note, does facebook make you nervous from an overall macro market perspective

are your clients calling you and saying, mark, we may not own facebook, but what's the impact overall? >> well, look, in you're in any indexes or atfs you own facebook one way or another >> bingo >> the whole sector is going to correlate to that. that phenomenon and huge growth in u.s. cap last year facebook was a big part of that so, we do want to look at this i think the entire business model of some of these social media stocks is going to come under scrutiny and we don't know what the regulatory impact is going to be and i think that's what's creating some of the uncertainty. how far does is this go, when we peel away the onion, what's it going to look like >> do you stay away from it? do you not own these keys? >> i don't think you chase uncertainty as an investor i think that's a general rule for investors. let everything calm itself down. there's plenty of good opportunities in the market. there's a lot going on here and i might because before i chase

this story >> mark, i'm going to steal something from you, i like powerf powell-full market i might use that not the case for facebook, shares likely to share again today based on early trade this is the fallout that grows that massive personal data privacy scandal. uk authorities raiding cambridge analytica's offices over the weekend in london, looking for evidence related to their data collection investigation now, in the meantime, stateside, facebook ceo mark zuckerberg apologizing for the data scandal taking a series of newspaper ads over the weekend zuckerberg saying in part, quote, we have a full responsibility to protect your information if we can't, we don't deserve it congress is not satisfied. lawmakers are now demanding answers. and speaking to nbc's "meet the press. the tom democrat, senator mark

warner of virginia, accused facebook of not being fully transparent with congress. >> i don't think facebook has been fully forthcoming this is an area where we have to get our arms around it and frankly, mr. zuckerberg needs to testify he created this industry and he needs to explain to the american public and to policymakers >> it does now appear that many of you are losing trust in the company. a new reuters poll finds that just 41% of americans trust facebook to obey laws that protect your information as compared to 66% who trust amazon, 62% for google and 60% who trust microsoft. like we just talked about with mark avalon. if you don't think the facebook privacy scandal impacts you, i want you to think again. coming up, we're going to show you why you can be exposed to facebook and its market implications without knowing it. uber selling its southeast based business to grab

the ride hailing and food delivery service into grab's operations as part of the deal uber will acquire a 27% stake in grab the sale does market uber's second major exit from the highly competitive asian market. back in 2016 uber sold its china business other stocks you need to keep your collective eye on today, paper company smurfit cappa. the bid valued smurfit at $11 billion this month turned down the initial offer saying it failed strong growth prospects. meantime, auto parts maker dana raisesing its cash offer to $1.8 billion a spinoff of the company's auto business and combined with data or choose an offer from the uk's melrose for the entire company

and apparently american retail is not dead just yet. why do we say this because british retailer j.d. sports today striking a deal to buy u.s. sporting good chain finish line for $558 million j.d. will pay 13.5 per share that's a 28% premium on friday's close. we are just getting started here on "worldwide exchange," up next, apple's ceo tim cook s ting for stronger privacy ruleinhe wake of the facebook scandal his comments when we come back ♪

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good morning if you are just waking up, let's get you up to speed on how your money and the markets are looking this monday morning. last week was rain, this week, a little sunshine. stock futures higher treasury secretary steven ma munchen tries to calm fears of trade. speaking of trade, apple's tim crook in china co-herring the annual forum trade obviously dominating the conversation but privacy also a big topic. cnbc's eunice yoon with more eunice >> thanks so much, brian well, fears of a trade war did dominate the forum as the co-chair of the event, tim cook called on the others to have calmer heads. and for president trump to support policies that encourages free trade this is what he had to say >> what will i have seen over my

lifetime is that countries that embrace openness, that embrace trade, that embrace diversity are the countries that do exceptional. and the countries that don't, don't. >> other ceos shared cook's concerns including blackstone's steve schwarzman, is he head he's calling for somewhat of a negotiation to happen between the two sides. >> there needs to be a negotiated arrangement between the two countries. and i think it's important to note that most of the types of things that are being discussed from the u.s. side can be delayed in terms of their implementation and hopefully will be.

>> and despite the aggressive rhetoric from both sides, there are some reports that there's some behind-the-scenes negotiations taking place. "the wall street journal" has been reporting that the trump administration led by u.s. treasury secretary steve mnuchin as well as the trade representative robert lighthiser handed the chinese, a to-do list, reduced tariffs on autos and more chinese purchases of semiconductors now, despite whatever is happening behind the scenes in public, there's still a war of words going on between the two side the chinese state media actually came up with a hit list of american companies that would suffer in the trade war. the people's daily report mentioned boeing, intel, qualcomm, texas instruments, micro technology and apple brian. >> and boeing is a big deal

because it was the best performing stock by far in the dow. eunice, aside from that type of talk in the papers, take us on the ground what is the mainstream media saying? is it outrage? is it skepticism is is it confusion >> it's outrage at this point. but then that's to be expected just because the staid media tends to be much more hawkish than the official line i thought one other thing that was quite interesting at the forum were some of the comments that came out of tim cook on privacy. i heard you talk be about that before, brian. and he had said that regulations need to be well crafted which is interesting. and i thought what was also interesting he said he always felt uncomfortable with the companies would understand and know your browsing history over years and know who all your contacts are and this isn't, from his per secretary tiff, something that should happen. >> eunice, thank you most of the trade talk focused on hard goods like steel

and aluminum but another big concern out there, any retaliation or tariffs put on ip, intel elect wall property. joining us in the c nbc news line is jim melonkosky jim, there's this wonky thing. 5:16 in the east and i don't want to get too much into it because people may go back to sleep. but how concerned are you that this trade war talk will seep over into the world of ip and patents? >> good morning. thanks for having me trade is complicated and that the in china, the market is evolving rapidly from labor industry to innovation and intellectual property is going to play a key part >> how much value are we talking about, is there any way to place a number, with steel we import x

and y. is there any a way to judge the economic impact? >> there is. the u.s. is transitioned by an economy driven by tangible assets to today 85% driven by intangib intangible our most recent data shows that the chinese market right now is 35% represented by intangible assets but we believe its on its way to continue to grow >> but the concern has been, as you know, lack of transparency and ip theft that china doesn't respect our patents. doesn't respect our ip and it's really a one-way street going from there to here rather than from here to there how do you counter that? >> i think that's actually the key point. historically that was all true, but it, too, has been evolving rapidly. the chinese have been working to try to mimic the type of laws that we have in the u.s. in fact, today, there are more patents filed in china and more

patent lawsuits in china than in the u.s. or anyplace else. >> do you feel that the market is sufficiently transparent or there's a lot of work to do? >> there's a lot of work to do what's what we're trying to accomplish both in transparency of pricing and transparency of reporting but we think over the next five years or so, you're going to see parity on at least the reporting and transparency of patents. >> i don't want to call tell a trade war. let's call it a ip war as we start to see this sort of tit for tat, on tangible asset side, jim what would be the outcome? what do you think the risk is here >> well, the risk is long term and the risk would be that the u.s. would no longer have a marketplace where its manufacturers have a proprietary advantage because of their own patents. what we really need to do is return our focus to the u.s. patent system and make sure it's as strong as it can be >> do you think it's going to happen or do you think there will be an ip war >> i don't anticipate an ip war.

but i do think there's a need for substantial education on this issue and that's why i appreciate the opportunity. >> it's 4:18 in chicago. jim, i don't know if you just woke up, of ocean tomo, either way, we appreciate it, jim thank you. thank you. "black panther" now becoming the single highest grossing movie of all time. and why twitter's jack dorsey thinki in ing bit coin he next currency. and good morning, brian, now, we're watching springlike weather. finally, no more nor'easter. but now we're getting into severe weather and flood season. flood watches up from tulsa and st. louis. we could get localized two to four inches of rain with storms today and tomorrow

this storm is going to stall where you see the blue and purples, that's two to four inches of rainfall areas, arkansas, louisiana, mississippi and tennessee. don't be surprised if you hear about flood stories as as we go throughout the week. severe weather, each and every day, today we're watching oklahoma city, abilene to san angelo large hail and wind. and tyler and san antonio and austin so a possibility of minor airport delays no problems on the east coast although it's still unusually chilly that's your forecast more "worldwide exchange" when we come back

good morning, everybody. welcome back, i'm brian sulli n sullivan thanks for being with us can we allal agree to toss out last week? the worst week in two years for the futures, for equity markets. because this morning, we're seeing what looks to be a bounceback the dow indicated, look at that, implied open up 300 points treasury secretary making the rounds this weekend trying to calm fears about any concern of a trade war with china looks to be a good start for the week although keep in mind it's still early. the benchmark trading at 2.8%. yields a stories specially financials more on that in a minute bitcoin down across a couple exchanges we're seeing 82.52 per join on join base, you can see down down from a percent to a little

more, depending on the change. right now, let's get a check on what's happening outside of the world of business. phillip mena is in new york. >> hey, brian, good morning. at least 64 people are confirmed dead after a fire swept through the top floor of a shopping mall in siberia according to russia's news agency. many of the victims were children russian officials say 16 people are still missing. a criminal investigation has been launched. shifting gears, the ncaa's tournament final four is set on sunday top-ranked villanova wildcats took down the texas tech red raiders. and the kansas jayhawks outlasted the duke blue devils 84-81 in overtime for the first final four appearance since 2012 on saturday, kansas will face off with villanova, and loyola chicago squares off against michigan and "black panther" banked another $16 million at the box office this weekend. it is now the top-grossing

superhero film of all time in the u.s. earning over $630 million domestically brian, back to you >> have you seen it, philip? >> you have seen the "black panther" >> sorry, i missed that. it is a movie that i've going to see next >> two more tickets they can add to that total in the coming week, you and i. >> all right on deck, the big drivers behind this morning's bounceback futures indicating a big time open and apple shaking things up. the company rolling out new emojis that's nice. the big news, though, you might be looking for more changes for, yeah, the next iphone. stick around overwhelming air fresheners can send you running... so try febreze one to gently clean away odors.

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rally on on a monday wall street pointing to a higher open in a big way. fears easing over an all-out trade war. we'll show you the numbers buyer beware if you do not think you're exposed to the facebook privacy scandal because you're not on facebook or you don't own the stock, think again we're going to show you why facebook may matter more to your money than you think and later, you got to see this, a new kind of snow day, eastern europe blanketed by orange powder. got the whole internet buzzing on a monday. march 26th as you're watching x "worldwide exchange" as we kick off the second half hour

♪ good morning, welcome to "worldwide exchange" on cnbc i am brian sullivan. thank you for watching wherever in the world you may be watching from let's get a check of global markets and your money this morning. futures indicating a solid jump at the open. the implied open right now more than 300 points for the dow. the treasury secretary making the rounds this week, and trying to calm fears about a trade war, indicating that the u.s. and china are in talks that would ease any fear of a trade tit for tat. the benchmark ten-year treasury note yielding 2.84 percent watch yields, they matter for financial stocks overnight in asia, we're seeing asian markets bounce back. the nikkei and hang seng higher in europe. kind of a similar story. hey, if you're watching from europe, you know that already. let's talk about the early market action and what you need to know going forward. michael purvis chief global

strategist joining us early on a monday wow, last week, you know the hyperbole, worst week in two years. facebook was a disaster. now, we're up 300 points on the futures. is this a trade war fear easing turnaround or something else >> you know, you could almost zoom out a little bit and think every time we had a vix four-day over the four years, we had a rally, a nice release rally. he consolidated and back down to a relief rally that's sort of textbook. we could describe all sorts of narrative to explain price action but i think it's important to realize that sometimes, the markets are going to do what they can do. we can fix it on tariffs or facebook i've been bearish in the market from two weeks ago to this level. i'll probe be taking profits on that foot spread i recommended >> are you still bearish, or is

this the pause that refreshes? >> well, look, this is part of a natural price action, how oversent we got in january what i'd like to see is a retest of these levels. we're having a nice relief rally in futures right now you kind of want to see them go back and retest before you get that confident on the bullish side there's a lot of news flow about tariffs. there's a lot of news flow about what is going to happen with tech sector and facebook >> i don't want to disregard the tariff story i know it was the front page, the headline of everything else out there, but, but, we've got the smartest viewers in all ways i put out a poll a couple days ago and i said do you think the market can rise if tech does not. 76% of the people that responded said no. if tech falls the market will fall, because everybody is in the same five stocks whatdo yo think. >> oh, the tech sector is a huge

part of this post-grade financial crisis rally and the thing i'm very concerned about is if the regulatory noises continue to escalate, if you just look at the fang index, if you look at the market-cap weighted fang indexer it's trading on 37% forward earnings plus twice the marketables the baiting of that index to the s&p 500 is 1.1 >> a lot of fancy big words at 5:32 in the morning here the beta, i know what you mean but explain that >> if the market goes up 10% stock or some subcomponent might go up by 20%, if it had -- if -- >> in other words, the market does well. they do do even better but you flip that around, if they don't do well, is it going to be the sort of -- are they going to be swimming with the fishes, right? they're going to be the anchor around the ankle >> right a utility has a low bid, high growth tech stock typically has

a highly bid therefore they go up more than the market what i'm very troubled by is the fact that amazon over the last three years has a beta of 1.05 that's extremely low, all right? and so, if -- now, look if you look at amazon or facebook, as effectively high growth virtual monopolies or a monopoly as a really powerful position, heart to disrupt but if that is going to be changing if that narrative changes, i think that's going to disrupt the entire volume difficult surface. >> let me ask it more bluntly, do four stocks really, facebook, amazon maybe alphabet/google or netflix. maybe apple, four or five or six stocks, do they control the fate of the other stock out there >> well, look, it puts a lot of pressure on financials it puts a lot of pressure on health care, discretionary, industrials to lead the path higher and the history over the last few years that's a tough trade, right? look, tech has been the first out of february volatility

fresh highs, right they were projected to do so you're putting a lot of pressure on the whole phenomenal gdp inflation story for the sectors to do better >> do you think the market has made its high already, mike? >> too early to tell there's an increasingly strong argument if this tech stuff keeps growing we're in a range market for the rest of the year. >> we'll call it the ruk ka bratz zi market. we appreciate you joining us so early. it's time for your monday top trending stories contessa brewer joining us >> hi, brian russian skiers were met with a rather colorful surprise on the slopes this weekend. they call it orange snow it just looks dirty dusty brown. it was a huge sandstorm in the northern sahara desert covering the country of greece. and then to sochi. ukraine saw the same thing this is somewhat of a

phenomenon the dust traveling at higher altitudes and mixing with the snow is that cool twitter ceo jack dorsey a strong believer in bitcoin.sey y be the next currency he's also the founder of a company that is working to make bitcoin transactions faster and easier and he's invested in so there's a real reason why he wants it to be the global currency just pointing out the skeptical side of things apple is looking to add a whole new category of emojis to better represent people with disabilities the emojis include wheelchair users, dogs, service dogs among others and a japanese tech blog reports apple is looking to drive sales

of the iphone x by introducing a new color. >> okay. >> does anybody care >> bingo as usual, you're right here's my point, so, my iphone, i think is silver. >> not about the emojis. i care about the emojis. >> why does iphone matter when you just put a case on it. now my iphone is blue, right >> i brought this out, this is my rose gold phone >> of course, yours is rose gold >> it's rose gold and a keyboard which covers it. i don't care what color it is. >> do you think it matters? >> you know what matters that cool phone with the iphone x that matters all right. travel warriors. are you getting ready for this, we travel all the time, right, brian? on flights, it's become our home now, you can fly nonstop between europe and australia history making flight here

quantum is taking the title for the longest nonstop flight an a dreamliner from perth, australia to london's heathrow it's definitely the longest flight that quantum offers logging just 9,000 miles here's what gets me, the reporters writing about this is a they got off the flight saying they looked refreshed. does anyone look refreshed after a 17-hour flight >> i have to say, i'm proud to say i've done the longest commercial flight in the history of the world nonstop. new york to singapore. 19 in and they -- >> you spent the whole day on a plane? >> i'm not kidding a 19 1/2-hour flight from new york -- basically the rest of the plane was fuel you slept twice. and you ate like five times. you got offer and didn't know

what day or time it was but you felt pretty good >> hey, brian, why do they got to keep us separated. >> it's like an offspring song, got to keep them separated >> look at the space >> we're trying to show the global size and scale of our studio and the asset base here at the worldwide leader in global news. still ahead on "worldwide exchange," financials are in focus. yeah, everybody talking about tariffs but guess what the banks were the worst performing sector last week. why? we're going to get a five-star fund manager's perspective on that and where the opportunities may be andif you don't think that the facebook scandal impacts you because you're not on it or you don't own it, think again. we're going to show you how important facebook is to all your investments coming up.

racing isn't the only and with godaddy, i'm making my ideas real. with godaddy you can get a website to sell online. and it will look good. i made my own way. now it's time to make yours. ♪ everything is working just like it should ♪ all right. good morning or good afternoon, wherever in the world you may be watching from 5:41 here in the east, newts indicating we could kind of wipe out last week's declines the dow jones industrial average indicating a jump over 300 points in the open still, that optimism may be coming back after last week, which was a week for forget. meantime, bitcoin down about 1% depending on which exchange you are looking at all right. let's switch gears to the banks because all of the talk last

week was about, you know, the tariffs. but quietly, the big market story was actually the banks financials sector the worst in the last week. bank of america, by the way, fell 9% last week. joining us now on the cnbc news line is the president and cio of menden capital advisers he runs a five-star bank stock mutual fund anton, thank you for coming on we know it's early financials got whacked and we're try to figure out if it can't have anything to do with tariffs, can it? >> well, it appears that financials are a crowded trade and when it fell, financials came with it and when you look at the world of atf in the world today, the largest atf had tremendous outflow last week. particularly late in the week. and that really drives selling, doesn't matter what the fundamentals are >> you're saying that we talked

about facebook and the fang impact you believe that effectively, the bank is the baby getting tossed out with the bath water >> oh, yeah, very crowded. so crowdedness matters if everybody owns a certain sector saying it can't be any easier, you have to own the banks. and then the unwind with the kre, all of a sudden, you have a drawdown, i think the risk in general is the more etfs there are and less active managers, there's guys like me saying, wow, look at the markets >> that's an interesting point maybe there's still a role for actual humans out there in the market anton, as an actual human who has done very well for his clients in your funds, are you a buyer of some of these bank stocks that this morning just got walloped last week >> sure. and doing it last week in the face of it whenever you see that kind of a

selloff, it's broad and just killing everything, you look for the names that you go, watt a second, this is a great company, it's got really good prospects it's just got 5%, 8% cheaper, i'm going to add something to the portfolio. >> how sensitive some these names, the big names and midsize names be to moves on the ten-year let's say the ten-year falls 10 basis points from 2.9, to it.8, should that cause a drop in a regional midsize bank? >> no, everybody talks about the two to ten-year spread is banks don't fund off the two-year and a really good bank fund offers deposits that are core. rates very low on that part. the ghost data which means how much banks have to raise, those rates rise are very low.

and in fact, going to keep rising so the move as this conceives, if you really think about a bank's fixed rate asset, they probably have a three-year average life you need three years in field to be constant. to really have a massive impact. not a day, not a week, not even a month. >> bottom line, the selloff in banks sounds like to you, antsen, it was totally overdone last week? >> absolutely. >> antsen, thank you for joining us nice and early on a monday. we appreciate it all right. still to come on "worldwide exchange," know what you own we can't say it enough we'll talk more about facebook and why that one stock may have a bigger impact on the overall market and your money than you think. we'll break down what etf had the biggest exposure and what it means for you. plus, there's a problem in the market generally speaking rolling out something llcaed rbi, random but interesting.

because it is random but interesting. we'll be back, after this.

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and welcome back and good monday morning. we are preching the top of the 6:00 a.m. eastern time now that means the team at "squawk box" is already ready and ready to go and drew ross sorkin in new york andrew, by the way, this is the first time we've done this >> it is >> congratulations, sir. >> it's a big weekend a big congrats to you on season three of "billions." i'm not just blowing smoke, that show gets better and better. >> well, you couldn't have been up last night, were you? >> i was, sort of groaning and moaning about the duke basketball losses. didn't watch it but at 4:00. here's that's going on squawk, got a lot happening, mike allen is joining us, talking about what took place overt weekend and the agenda head in washington obviously lots going on there. ed lee's going to talk facebook with us. i want to try an idea on you,

brian. >> uh-oh >> what would you think if facebook said, you know what, we won't accept political advertising. we're no good at the data. we say we're a square or the community but we're not going to get into politics. do you think that would work >> no, because i believe there's three types of facebook users there's the people that post family photographs looking great on a beach or skiing there's people that post something sad about their grandma or a job and then the third group which is people who pretty much post political stuff. those are people that you mute or block, aka, your friends. >> it might be a get out of jail free card. saying look, we understand the issue we're not going to be political anyway >> how about this, andrew, 50 bucks a year, a data list-free, you pay 50 a year, you don't see any ads or use any of your stuff. would you pay that >> 50's high

i can see it being like a 19.99 a year kind of thing >> becky is chiming in >> she's saying less than a dollar a week. >> less than a dollar a week she's got the advertising jingle ready to go. alsoen out agenda, kevin hassett joining us, we're going to talk, of course, about tariffs. by the way, i don't know if you saw mnuchin made a comment over the weekend blaming the fed for the tumble, not the tariff allen blinder is here. former fed ahead and mark bertolini, and what amazon may or may not be going to do. >> looks like a big show congrats on "billions. tell becky to pay up >> she's happy to pay up, i'm the cheap skate. she's ready to pay >> i'm going to put that out on a twitter poll would you be willing to pay for date dal-free facebook. >> respond to the bowl, becky.

overall, the markets are looking up the dow over 300 points looking to be upside today not likely for the company we just talked facebook that stock could slide again the fallout growing ins mass of private scandal. u.s. authorities raiding cambridge analytica's uk office over the weekend, looking for evidence related to their data collection investigation in the meantime, facebook's ceo mark zuckerberg apologizing for the scandal in a series of newspaper ads over the weekend zuckerberg saying, quote, we have a responsibility to protect your information, if we can't, we don't deserve it. it being, i suppose, their trust. congress, lawmakers demanding answering, speaking to nbc's "meet the press," the top democrat, senator mark warner of virginia, accusing facebook of not being fully transparent with congress it appears that many of you are losing trust with the company or never had it to begin with

a new reuters poll finds that 41% of you trust facebook to obey laws to protect your personal information that's compared with 66% who trust amazon, 62% for google and 60 who trust microsoft around whether or not you're on facebook or own facebook stock, the fallout could certainly impact you here's why the etfs are the biggest exposure to the companies, ticker slcl, social, get it has the biggest weighting. the overall isn't that big but doesn't have much impact or anything else. the other etfs that hold facebook are bigger, the dow jones, tech select sector, powerhairs, 6.5% according to the etf database, more than 230 etf or including facebook or holding is 5% of the

etf's holdings let's talk with david nelson david, the point we're trying to make, some people are out there, facebook, i hate facebook, cat story, who cares but facebook is a massively important story for the overall market because of its weighting in etfs, is it not >> it is and big data is big money. it's not just facebook's business model this is google's business model. really any internet company that is processing big data this is a big part of the story. the investors are looking is this business model going to change is regulation going to step in because if it does you have to deal with it >> the big hedge funds have to put out we call did whale watching here. we go through them every hedge fund owns the same five, apple, facebook, that's what it takes to make millions that's a different story but the point is, if they start

to sell, what's going to happen? >> obviously, they go down >> what about the overall market >> the overall market, look the sector is a pretty big sector for the u.s. economy and the market as a whole. it's the largest sector in s&p right now. facebook, you luke at it it's got top line growth, 40% under 20% earning, that doesn't happen very often. if i'm a vendor and i look at facebook as a source of information for me and somebody is going to let users opt out of that data well then that data is worth less to me it's not going to take long for the analysts to figure out the models let's see what they are three or five months from now in that. >> but the stock did fall 14%.leak, do you think that's the valuation reset that you just talked about? >> well, maybe in the near term but if the business model has changed you are going to have to rethink this company and other companies as well. i looked at this company, it

looks extremely attractive even mark zuckerberg is inviting regulation at this point i've seen selective pioneers on some networks about regulation being needed guys like roger machamy, i've never heard that from him before >> do you think we'll get regulation >> i think it's certainly going to come up in congress >> it's starting to be seen in europe and they sued microsoft forever it seems like. >> and mark is going to find himself in front of committees both here and the united states and europe data privacy is even more important in europe than the united states. it's likely to happen at some point. but i think they're going to change it on their own that option to opt-out that affects the business model >> i'm going to give you a breakfast buffet since it's 5:55 in the morning you've got facebook, you've got tariff tariffs/trade wars

and then last night stormy daniels. if you had to pick one of those most important or our viewer's money or is it something else? >> it is something else. it's the mueller nvestigation. i don't care whether you like trump, dislike trump, some of my family hates trump but your stocks love trump. if that investigation finds its way into the white house then it's a different -- >> is there a little different print. this enchantment coming on with the president only as it pertains to equities >> it's pretty tough to keep up with the trump cycle there isn't a day i look at my iphone that there's another item to deal with >> david nelson. thank you. year going to wrap up the show with something we call the rbi, the rand dm but interesting stat of the day. something that make you go hmm and be the smartest person in the room today's rbi, the generals have been demoted shares of general electric and general mills are both down 25% this year. by the way, the other general, general motors, down 14% this

year it has been a tough time for generals that is your morning's rbi, random but iertintesng thanks for joining us, "squawk box" is next ... ... the scotts turf builder program. all it takes is 4 feedings, with a scotts solution for every season. it's that easy. this is a scotts yard.

good morning wul street pointing to a sharply higher open following last week's selloff we'll find out what's driening the turnaround straight ahead. facebook apologizing.big tech speaking outside over tighter control of privacy we'll tell you what apple's tim cook said in china and a west coast could be moving to big apple. with all of the fine work on the spielberg movies talking about john wayne coming up on monday, march 26th,

2018 and "squawk box" begins right now. >> announcer: live from new york where business never sleeps, this is "squawk box. ♪ good morning, everybody. welcome back to "squawk box" here on cnbc we are live from the nasdaq market site in times square. i'm becky quick along with joe kernin and andrew ross sorkin. welcome back >> thank you did you miss me? >> yeah. did you have a good vacation >> it was a great vacation >> you didn't miss us? >> no. i heard -- something happened last week. i was on the ski slopes looking occasionally at the phones but not that often >> if you were gone last week, we're paying attention this morning, we're going to see futures indicating sharply higher but it's not going to make up for all of the carnage we saw last week look at this, the dow indicated up by 370 points