i remember going through we were really high. now, i don't know if people are ready to call this -- if you bought at the top, you're down. >> if you were late to this entire situation, sure a quick look at treasury bills around 2.8.5% where we see things happening that does it for us today. join us tomorrow right now time for "squawk on the street." ♪ this beautiful day don't let it get away ♪ it's a beautiful day ♪ ooh-ooh ♪ good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jp im cramer at the new york stock exchange friday's loss could be a race to the open as some trade worries recede europe largely green, and coming off a six-week low and beginning with easing fears

of a trade car stocks set to surge at the open. tim cook calling for calm heads. countries that embrace trade do well and facebook's apology rolls on zuckerberg, a new media apology to the recent scandal. and rebounding following last week's sell-off dow in correction territory sitting more than 3,000 points below the january high s&p and dow lower for 2018 jim, you said friday awares about what sunday night would bring on "60 minutes." mnuchin saying maybe these things can be worked out over trade talks? >> right the treasury secretary on fox basically said, listen, you know, we're in an interesting point in the talks as you parse what he said, there could be a win as opposed to just nothing but losses. the win would be, changes in the chinese about intellectual property the win would be no tariff or less of a tariff on our cars

gm, their biggest market nap would be incredibly positive obviously, apple, intel, targeted over the weekend. boeing in communist party sanctioned papers. so all of this could -- really become a different narrative the first time we thought. because what we've been thinking wait a second. there's nothing but an annihilation of trade here so that, plus -- i mean, look, a lot of us tuned into "60 minutes. not just because the kansas/duke game was riveting and the left the channel. >> which it was. >> but, wow! holy cow >> yes. >> but i think you saw it. if you're talking about the possibility of what's embarrassing or not, i mean, that's one thing but if you're talking about the idea of what spread between three and four, which was, they had a tape, they didn't have a tape and i think that the idea that they had a tape was really responsible for a couple of the

dow points when you saw no tape, what you did was, this morning say, okay. let's go buying opportunity. got to be careful, obviously, because when you have these 360-point ups you may be able to get in up to 50, but obviously it's a different world if secretary mnuchin -- he's right. >> right kaus cautiously hopeful to get an atri agreement stalling the tariffs. >> hopeful for agreement but if not, proceeding with tariffs a bull says, chinese already blinked. my problem with the narrative, the chinese have -- they're not a blinking culture there are many ways to hurt our trade that's not announced you can keep a fedex plane on the tarmac longer than you'd like, but what this said to people was, it's not all loss, everybody. it could be a win for the u.s.

that's a different story. >> yep we're going to watch that theme this morning obviously closely. a lot happening in washington were as fears of a trade war continue though there are signs of thawing. breaking news on russia. you is a you a few moments ago on your screen kayla tausche in d.c. watching that. >> reporter: carl, the white house announces in response to the nerve agent attack in the uk of a former russian spy earlier this month, the u.s. is taking action and expelling 60 russian diplomats. 48 of them from the russian embassy. 12 from the russian mission to the u.n. in new york and the white house is also moving to close the russian consulate in seattle. the white house officials saying that they stand in solidarity with the uk and this is a coordinated government action. moving from russia to china. you mentioned these fears of a trade war easing the comments by the treasury secretary over the weekend significantly smoothing over any market fears the treasury secretary sounding

cautiously optimistic about overtures the administration planned to make to china in a potential settlement here's what he said. >> we're simultaneously having negotiations with the chinese to see if we can reach agreement. as the president said we want to cut the trade deficit over $100 billion over the next year, eliminate forced technology and are having productive conversations with them. i'm cautiously hopeful we reach an agreement >> the "washington journal" reports a representative as well as china's top economic official, some of the things they've asked for from the u.s. side, more u.s. semiconductors in china and lower tariffs in china on u.s. cars of course, administration officials are cautious says we've talked with china before and they've not come to the table with solutions that this white house feels are appropriate to actually fix the problems at hand unclear whether these talks will be different as for the futures this morning,

the president once again is touting the economy. he seems hopeful about where companies are headed and where futures are headed and tweeted just a couple hours saying the underlying strength of companies has perhaps never been better. this is a relatively quiet week in washington with congress out of session, but as we've seen, guys, those can be some of the busiest weeks here at the white house. back to you, carl. >> indeed, kayla thank you. kayla koush. of courtausche. >> and apple's tim cook calling for calm heads and more open trade, made those announcements in beijing take a listen. >> what i've 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.

>> one paper in china suggesting apple could possibly be hurt the most. >> right apple intel, boeing, intel most inside of a lot of things. this was a very interesting talk by tim, because what it said basically is, guys, we favor a free trade, and it was almost as if, we're not telling you to ignore the president, because that's what we can't do. we're telling you that we can work everything out. and it's almost as if, i felt after listening to that, wow, this would be ugly if they slapped it, on cook and on apple, because, wow, you know, he's done the most to make -- other than howard schultz, he's done the most to make it so that there's great china relations. i could say boeing, but the fact is, boeing planes, they have a little more leverage than everybody else.

>> you pointed out before, by the way, boeing delivering theirs first new plane to singapore. >> how about that? i continue to like boeing if only just because, if china steps out, there are ten nations that will step right in. now obviously, would it hurt their 20-year game plan? well, i mean, maybe in year 17 look, boeing has to increase its production and it's not because of china. >> right. >> they just can't make enough. >> all of these -- narratives suggesting a cooling of trade worries doesn't answer spreads, doesn't answer phang losing dominance. another worry last week? >> good points still trying to get to the bottom of it saw it up last time it was fixed. meaning they were fixing it. this time, no one's come and said, i mean, look, when jamie dimon, wish he would come out, looked into libor, is because of

x, y and z he's become such a statesman he could deflate it, something we didn't have before we also have a fed that's very savvy. can talk about -- he could tell a story about it, but they've got to focus on it, because you can't pull a zuckerberg. meaning, you know, of the data breach no atissignment data breach. cool the tsunami congress wants and outsider they can trust to go in, say, listen, we've seen this. i'm surprised facebook -- maybe a one-two punch. they know these things it's what you have to do and you have a veet director, tension out there. when they do that, that's the next step. not the letters. in denpublications how do you le

and the failing "new york times," quotes around "failing." they need to know you'd say sorry and point at ken feinberg. that's the one-two thing we learned from deepwater. >> yes. >> deepwater horizon's, barry told us these things gave you the playbook. joe samberg watches the show presumably unless he watches fox news i don't know like the president that would be a shocker. there's a way to go about it and you have to take the second step they know that and are resisting that and that worries me why do they have to hide if there's nothing there, we'd feel great what is it we have to do de -- defriend facebook? >> oh, delete facebook. >> delete facebook all right. fine i mean, my wife was debating it this weekend, then the nova game came other. >> other threads to the facebook story, the fallout continues

bring you up to date what apple had to say about facebook and the free market at large. looking to wipe out most of friday's losses after the dow down three in a row. more "squawk on the street" from post nine in a minute. you know what's awesome? gig-speed internet.

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fallout continues from facebook's massive privacy scandal. mark zuckerberg apologizing for the scandal in a series of full-page newspaper ads. lawmakers demanding answers as well speaking to "meet the press" on nbc, the top democrat on senate intelligence, senator mark warner accusing facebook of not being fully transparent with congress >> i don't think facebook has been fully forthcoming this is an area we have to get our arms around it and frankly, mr. zuckerberg needs to come testify. >> he created this industry and he needs to explain to the american public, and to policymakers >> all that, jim, we haven't seen signs that big advertisers are looking to the exits >> no. actually there's just the opposite, which is seems very small. a lot of talk about the advertiser leaving but the return on investment is very good i've been keeping a running tab of breaches of trust, and united

airlines down 6% breach of trust. we are now, equifax down 40% chipotle down 59%. breaches of trust you could go elsewhere. equifax, breach of trust because they had all your data not just facebook, really all your data. and the target breach of trust, almost a hack, didn't handle it well we've passed the wells fargo breach of trust. >> by that you mean, percentage drop in shares >> exactly from the top briefly. facebook had been where it was when brian sullivan started his excellent show today, stock down badly, that breached the wells fargo -- breach. these all have a commonality, because you couldn't leave wells fargo but kind of nobody did leave equifax, kind of nobody did. leave target it took a long time

target was available because there were a lot of other places to go. >> i don't know if you saw roger mcnamee last week trying to draw lines to tylenol in '82? >> i cannot believe you watched that you were supposed to be skiing for hevaven's sake. now that is a breach go to italy, no tv, no phone be aware. >> and that brought about tamper-proof packages. >> yes. >> does there need to be tamper-proof packages? >> yes senator warner's a real smart guy, and senator warner does not -- he says he wants to hear from zuckerberg but he obviously doesn't trust him or he wouldn't have to hear from him. zuckerberg has to figure out who does senator warner really, really respect and trust and have that person investigate so when he goes up can say, i'm sorry. i apologize, not only that, a point at x, coming through with a report -- now, what's going to happen if they don't, then we're

going to think that they do have something to hide. maybe their business really was selling your data. selling that my wife is part of that, who's afraid of virginia woolf cohort of 50 women and it wasn't just oleg. they just just use isle of oleg, came up with a soap, gave it to the russians -- just kidding by the way, no one in that blog, i think -- voted for trump, despite the best efforts of the russians >> yes speaking of facebook, tim cook was asked about this and called for more oversight how data is used following the scandal speaking in beijing called for well crafted regulations saying "the situation is so dire and become so large probably some well-crafted regulation is necessary. the a lot to know when you've been browsing about for years, their contacts are, things you like, every intimate detail of

your life from my own point of view, it shouldn't exist." an example apple trying to carve out a niche on your privacy? >> there apple genuinely is the common carrier zuckerberg thought he was zuckerberg thought, yeah, i can put anything out there started walking that back, but we do sell information apple was saying, we won't even give the information to the fbi. if you want to know what's safe? use apple. that was a great commercial for apple, also that's tim cookal view >> reuters has a piece this morning about phang dominance and argue we're at a point investors have to make more explicit choices which tech companies lead us into the new economy. do you think that's true >> no. i think that what's -- when i created phang, the idea behind it was, these were dominant companies, and you may think that facebook's not dominant,

but as many youth told me this weekend in my incredible survey, i have left facebook i'm done with them and that's why i've gone to instagram and you want to tell them that that's facebook, but they don't even -- you couldn't even tell them that. i say, that's owned by facebook. no because they like fake news. i'm fake it's like, jim, you have to understand it's cistern created instagram completely bullet-proof. i don't know what you're talking about. >> would you be worried if they closed down the core app said we'll be more -- >> that would be bad, because overseas they probably don't even understand what they did wrong. by the way, i think if you asked the average person about what they did wrong, there was an interesting discussion in new yorker this weekend. boy, do i -- holy cow! i sound like an intellectual about what did facebook do wrong, and at the end i read and

said, wow. nothing. this was, like, really smart people telling me that they sold this and sold that because in the end, no one said, i am done with facebook. now, they may have subtly said they're done with it, but there wasn't an overt and that's it. we're all canceling facebook because a lot of people need facebook it's much more important. >> when musk shuts down the tesla spacex facebook page you think that's an outlier? >> that guy would walk 100 miles, not a mile. he's incredibly good come on. i mean, the guy -- you know, you're waiting for him to say, it's not just marsh. we're going to put the first man on the sun not just mars. remember richard pryor, but that's musk. and when we come back, cram cramer's mad dash. looking for a nice bounce after friday more "squawk on the street,"

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seven minutes to the opening bell jim has a big lichte sts of stok >> and too dependent aehere t a ehere toia mining. this is maybe 30% of what, you know, 20 percents percent of

amd's total revenue. no my understanding that is nod corre - not correct and much more exposure to etherium not saying their travels to asia were bad i am saying their estimates how much is etherium are wrong okay that's, wrong. >> right but a proximity to crypto is nothing new? >> no. pcs are coming back. i would not sell this stock here i think they have a lot of things going for them, and if you blame it on etherium, you see the numbers you'll say, wait a second turns out they had more momentum than i thought i don't think the sell call or underweight call is that good.

i would go the other way. >> not having too much impact on a good take. >> i think that shows you that look, this company is simply not as bad as people think, and i want to point that out. >> we're going to watch a lot more when we getting opening bell in a few moments. don't go anywhere. before tax day that will keep it from being a headache. attorney on your side. work for you. before tax day that will keep it from being a headache. attorney on your side. work for you.

you're watching cnbc, "squawk on the street. in a few minutes stocks show a big bounce after the worse week in two years dow down about 400-plus third day in a row closed about 11.5% from the all-time highs jim? >> the most interesting one would be facebook, but there's a lot of things like a bounce in intel, a bounce in apple that's important apple had a real fall in the last two hours on friday we now realized that was the -- chinese putting out, this is

your target. not almonds. i think that's important, because apple -- the way that they're approaching this, the chinese, isn't dumb. they're approaching it from the stock market perspective you go after the winner in the dow. you go after the largest market cap company, and you go after a company that is inside, a huge number of companies, and also autonomous driving and trying to change its direction witness the -- witness all of those olympic ads. you're going after some, you know, three companies that could really do some damage to the dow. that's not dumb. that's not dumb. >> no. neither is think tough rhetoric looking at all options including our treasury holdings. >> you think the chinese don't know what a 200 day is yeah it's something >> yes the 200-day is a good point, having held and been solid support here on these last few tests. get to the opening bell here at

the nyse opening at the nasdaq, the big board, insurance giant metlife celebrating its 150th anniversary at the nasdaq. biota l t biotalet me doctor -- biotalemancy. >> those stocks taking it on the chin believing housing is no place to be with the fed raising rates. finish line, a mall-based company. really interesting the mall-based companies have been having good numbers matthew boss today does not comply with that says that gap will miss the numbers, but gap, american eagle outfitters abercrombie, these have all been

really -- no longer being at challenged coors had good numbers i have been waiting for pbh to report the mall's been good, and no one expected that. i think that maybe what's left of the mall may be okay. interesting piece about sears. >> oh, man. >> an interview. >> vanity fair. >> if you lay off, numbers are going to soar. >> that's not how it's worked out. >> it's an idea. >> lamp eert does not talk ofte. >> it was a really good interview but in the end, sears, let's just say -- maybe sears doesn't even matter. maybe it's an existential thing. eddie's done a lot of things in this life. don't -- that's hard, only from the point of view of all the people that got laid off at sears. easy from the point of view the money he's created for himself, which has been fabulous. i've known eddie a long time and

he's created money for his partners it's difficult if you're a hedge fund manager, that's what you're graded on. so, yeah i mean, he's done well for his partners, and that's kind of what he's supposed to do. >> dow's up 400. we see the opens trades. what will signal to you whether or not this holds today? >> okay. microsoft. because there's a very, very interesting piece today by the house of morgan stanley, talking about microsoft is the path to a trillion dollars it's now at 671. i like this very much. so the path to a trillion dollars, if that's obviously not done for today's trading, watch microsoft. if it can keep its gains, i'm not saying facebook can. that's different, but -- this is a very clean piece saying, you know what? microsoft is going to do fabulously buy it let's watch that. >> not only the top performing dow stock, it's number three on the s&p list

up almost 5%. >> look, if you can add $350 billion to your market, $360 and get to be the first trillion there's a foot race to be trillion, and this says that, it says maybe microsoft will win. that's kind of a long shot that's like -- you know, it's like a 10-1 shot, and maybe worth betting on. >> people like that. >> we should have paramutual wagering on who gets to 1,000! >> even despite microsoft's outperformanc outperformance, lowes up the most. >> i did a piece last week saying disparity with home depot and lowes is management. they finally pulled away -- home depot pulled away from lowlowes. the problem was management i could argue the problem was management that's actually the right thing to do. home depot got ahead in

technology they embraced salesforce.com very, very early on. they've been taking share indeed, big-ticket contractors that has to be reversed. it reversed maybe lowes can reverse its fortunes interesting home depot is up, too. if lowes gets better, it takes share from home depot. crafted a term on a quarter i absolutely love it'sas long at share donors continue to help us, which is sears, interesting. wasn't mentioned in the interview. >> i was in denver last week, and giant banner outside jcpenney we now sell appliances that's all about kenmore and sears. >> got to sell appliance that's the really good business. jcpenney won't do it on just this alone, which has pretty

much been what they were trying to do it on. cosmetics, incredibly important. you always want to look your best not your facebook best you got to post on instagram in order to stick it to zuckerberg! you're just sticking it -- to samberg. listen, forget -- i'm going right into instagram you're finished! >> jim, we had drop box last week and now guidance numbers from spotify seeing q1 revenue up 22 to 27. >> own spotify. >> really? >> yeah. own spotify. spotify has become universe. like, i just find, if you ask anyone whether they have spotify -- i never met a person in the last year who has not gotten spotify and i'm not -- also i have talked with the company. the company is doing this very interesting ipo allowing people in spotify is an artificial intelligence company, and ai,

knowing what you want is really, no one seems to know what you want more than they do they want, know what you want earlier than you do. now, you can argue, wait a second maybe they have too much information, but i don't think that the russians really care that you may like coldtrain more than ella fitzgerald dot russians care that i like pearl jam? i thought about this because black "black" is a goodg peril jam, my wife loves pink. moscow wants to know, because their pick -- we used to think of them as pinkos. i don't know it's just important. radical. >> the direct listing does not discourage you in any way. >> not at all. i think it's terrific for people and they should do it. hey, the facebook swoon started. i was surprised it didn't start at the opening remember, they have to come, bring someone in to make it so that they meet senator warner

objections facebook is, this is a challenge day, it is so over sold, but people can't resist. >> this is, yep. below friday's close down 1% here trying to see how far back you've got to go now. still about july of last year. >> yeah. my travel trust said -- i'm not pounding the table here. lowes is interesting, because, you know, it shows you that management -- people were waiting for change in management that's a blistering indictment. >> speaking of changes in management front page piece in "the journal" about ge and ongoing about capital? >> suboptimal piece about ge what did they do with the polish mortgage market? i didn't even know they were that big in poland i remember when they were big in hungary and i once told the former ceo from hunger they were in hungary

mexican housing was a big thing. i owned some mexican homes but seem to be more judicious in what i got the long-term care is really the devil in the details remember, buffett failed to price the ad sheets right. >> yes. >> it was a piece that really kind of -- wow i mean, i finished it and i said, wow. like, like, wow, like bad. wow, like not well good. >> not well good. >> no. not well good. >> overall, jim, a return to tech amat, netflix, sales force, alphabet >> yeah, all ones that are targeted that people want to sell, and that phang can pull down, because phang -- i mean, because netflix is in ten etfs that control it so be careful when phang's down -- when facebook's down say four, you're going to get pressure in all of those names because they're linked. >> yes chips doing okay here. nvidia up.

intel upgraded market perform. >> i think brian is doing everything right i think that mobile eye is very good on when it comes to ought tom mi autonomous driving and waymo, owned by alpha, said the incident may not have happened. >> the phoenix pedestrian. >> people questioning uber itself by the way, facebook can reverse -- you might have a real rally. i tend not to want to buy them up 450 that's a mistake but if facebook can actually make a stand here, because facebook says listen, we're looking into this. bringing in someone from the outside, that would shock people. >> you still, you want a third party on it? >> we get a third party, we know warner doesn't have anything to say. >> right. >> what you want to do, take the objection particular these people say, you know what intentional is directly involved appointed so and so as -- because you know all the really

great investigations whether they will be nfl or whether they were welbe wells fo you get the report, you say, all right. here's the problems. this wells fargo report was pretty damning's had a letdown at least recognize they brought sherman and sterling in, and that was a very -- that was the right thing to do. so if facebook says that or even intimates, we're going to get a third party in that stock's going to -- that's what you need to see. >> right oil down just a touch. 65 and after -- >> a run away train on the bolton appointment the bolton appointment all weekend what you read, the appointment means war not peace. another thing that the market threw at you and it was -- you know, i hate to use this word, but it was scary. the articles were scary. mcmaster being a person who has spent a lifetime analyzing how wrong it is to put the, people

in harm's way. now, secretary mattis has also had those ideas and seems to be sticking around. which made people feel a little better. >> microsoft up almost 6%. >> this is the race to a trillion >> interesting. >> by now 8-1. the rate's 8-1 now oddsmakers watch these things. >> so that's definitely helping out the dow, all components are green. get to bob pisani. good morning, bob. >> good morning, carl. happy monday, everybody. not just the dow, the s&p 8-1 advancing to declining stocks here at the new york stock exchange let's call it a 2% rally, because the key sectors industrials and tech, the ones moving i want to show you this couldn't have happened at a better moment. about to retest the february lows look here. 2588 on friday 2872, and low on february 8,

2581 closed at 2588 looked like we were heading for a retest a big, big line. also we were bouncing off the 200 day moving average same time did it in february as well could not have happened at a better time. in terms of sectors now, again, the key is tech and industrials. a nice bounce in tech and biotech. the banks. looks like january industrials bouncing utilities and reits lagging you can see. this is all largely about the trade issues we had steve mnuchin out over the weekend. a big turnaround on the sunday talk shows he was cautiously optimistic to overt tariffs against china. got the steel deal with south korea to limit the amount of steel imported into the united states put that full screen up. and then we have chinese officials talking about the possibility of releasing a timetable for opening up certain industries to foreign competition in china also realizing other new regulations in china that would make it more friendly to import goods into china

two weeks to go for a list of tariffs and see what happens in that two-week period obviously negotiation going on here 2% in all key sectors. boeings, for example, caterpillar, you don't normally see railroading tos move 2% in the pre-open tech area, microsoft strong, you heard. intel strong talk about china maybe buying more semiconductors. as part of the trade negotiations that's been a big issue. there's intel up almost 3% bank rallying. goldman's up $6 right now. we've seen them move down. of course, ten-year didn't do much all the bank stocks moving to the up side as well. i think the key here is, not just the negotiations, but how dramatically oversold we were. remember in january we were talking about how dramatically overbought everything was. just short-term indicators relative strength indicators i

use, dramatically overbought rsi looks at how much stocks have been moving on a historic basis in the last couple weeks get a number over 70 to 80 or 90, you're way, way overbought now we have numbers, last friday, in the 20s when you are below 30 in a relative strength indicator, numbers are stupidly oversold. it's a biased indicator. 24 in a long, long time, been a long, long time it was that weak bank, materials dramatically oversold perfect bounce for the market. still 8-1 advancing declining stocks, carl up 500 points in the dow jones industrial back to you. >> and bond pits as well rick santelli, cme in chicago. good morning >> good morning, carl. day 22 get to the ten-year in a minute. exciting treasury complex, exciting in ways different than excitement in the past with stock volatility look at one week of 2s

yeah, popped last week on maturities, they did around fed time, but have gone into a mode again. traders get to the ten-year. 22nd day closing in the 280s today. we are pretty much a little below the mid-point at 284 one week of 10s. traders think this 285-286 right smack in the middle is a pivot, but maybe pay attention to on the left side of that chart you're looking at now. that 294 intraday high 295. high close for the year. everybody knows when you start to get off sides, how has that affected the yield curve spread. getting close. only a couple basis points away from the flattest since october of 2007. you could see we had that one pop to the down side right in -- first couple trading days of the year, traded a whisker under 50 basis points. let's get back to the dollar there's just no place for the dollar to rally, it seems.

there you see a year to date of the dollar index 19th of february since we've closed at these levels break down components. shall we we know the euro is having a good time. instead look at something like the dollar yen the dollar yen isn't quite there, but it is hovering darn close to the lowest levels for the dollar since about mid-november 2016. look at the pound versus dollar, you can see right now hovering right around that 142.05 consider this. 142.63, 64 is the best level on the pound going back to 2016 we're certainly within striking distance and finally you know, all of these talks about china the fact that the markets in many pulled the alarm before the smoke or even the fire on trade. we see what's happening today. i find it very fascinating how the dollar continues to weaken

against the dollar yuan. close to levels close to 2016. again, currently had a spike in february like many currencies did. back to you. >> when we return, trade war fears seeming to ease. dow close to 24k once again. check in with peter navarro on "squawk alley" today and a lot more on the big rally as we erase friday's losses and then some more "squawk on the street" continues after a short break. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers.

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nearly a 500 point rally on the dow. 2% gain. erasing friday's losses. s&p is up almost 46. question of the day is, will it hold we'll get stop trading with jim in a moment. each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group.

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let's get to cramer and stop trading. >> they're making it tough to come in and buy. up 500 but one that you have to watch is adobe jnp downgrades this because it's run so much. so adobe is an example of a stock you would think wow, you know what, that stock is up so

much, this downgrade would hurt it's up 6. keep an eye on that. that's been one of my cloud kings so to speak and if they can get to that, then you would have a sense that maybe the market could go down right now we repealed as lot of what happened. we didn't talk that much about stormy daniels and nothing really occurred that people thought there was a tape, but let's just understand each other, that facebook is in ten different fang etfs, so watch it fang -- facebook has to stop going down or it can bring down some real market leaders >> we don't believe it can trade lower in isolation it's down almost 2%. >> it shows you how powerful this rally is. >> yeah. >> that right now, it's not able to bring down its cohort because they're supposed to be so link. >> let's keep an eye on that i do think that the semis got a breather with intel not being targeted the chinese, man, how did they leak that? you know, i'm waiting are they

going to leak home depot of course not. home depot is 100% domestic. but mexico but i think they pick companies that would have deep impact on the 200 day and i really urge people to recognize, the chinese are that smart >> i don't think anybody questions that jim, what about tonight? >> we have paychecks, really good quarter, and we got wendy's. boy, i like the burgers. i like -- i don't like the baconator i like the dave's double. >> kernen this morning was talking about the kiosks and efficiency. >> i have my lipitor, i take a couple and go. isn't that what they say to do. >> yes did you see mcdonald's cmo, moving to be the cmo of cadillac >> i think that it's come down enough it was a negative about

chipotle watch this guy brian, he's very smart. he's causing a revolution at chipotle i would not sell that stock. maybe the quarter is not that great but he's kind of a genius. >> that is qsr is tough right now. >> oh, man is that a tough segment. oh but wendy's is up a huge amount. >> i can't wait. good to be back, jim. >> thank you. >> i think we'll see david tomorrow. >> really? >> look forward to that. >> right in time for the mets. they lost that home opener, did you know that? >> twisting the knife, he's not even here yet. >> why not the phillys have a new manager they gave -- what did they give you in the first game, like towels to throw in here, i throw in the towel for the season. >> we'll see you at 6:00. >> pretty early. >> "mad money" at 6:00 p.m. eastern time when we come back a lot more on the rebound for stocks we'll check in with white house national trade counsel peter navarro, the trade and markets and more don't go away.

well, it's earnings season once again. >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point.

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david and sara are off today market nice 740 point rally on the dow, erasing friday's loss s&p up more than 45 with tech leading the charge this morning. our road map begins with the market rebound the dow is surging after last week's massive sell-off. nasdaq jumps up more than 2% art cashin will gin us to make sense of it all. >> the latest on trade and tariffs as worries about a trade war continue apple's ceo tim cook weighs in on trump's trade policy. >> the facebook fallout. what to expect from the social network as companies pull their ads from the platform. >> to the markets, we are 30 minutes into the trading session. the dow surging 480 points right now, 2%, taking back friday's loss as carl mentioned also a big percentage of the worst weekly loss in two years as of friday's

close. also, aside from facebook a strong showing from the fang names this morning, they are also bouncing hard they were right at the middle of the losses last week down 6 or 7% for the big cap nasdaq. you see them giving back a good portion except for facebook down 1.5% joining us to talk about it, asset management chief equity strategist bob dahl and post nine rbc capital markets head of strategy, laurie thanks to you both laurie, we're bouncing hard. >> yes. >> you sit with a 3,000 price target for the s&p 500 i'm guessing do you think this was all kind of a messy correction can this particular bounce be trusted in your view. >> we said today was the big test we found that on friday you finally saw stocks get cheap we hit 15.5 times on the forward. the average is 15.8. the first time all year we've had a cheap valuation case to take advantage of. >> bob, would you agree with

that, that valuation has now come in to line and does that mean that a lot of the distractions if that's what they were over the past couple weeks about tariffs and fed and whatever else going on politically can be set aside >> i think not look, we've got some issues to worry about. i like the cheaper valuations for sure, but remember, interest rates are creeping higher and inflation is creeping higher trade, while -- with 2020 hindsight way over done last week is not a green light so we still have issues to worry about. i can't wait to get to first quarter earnings it won't be long and they should be pretty good. >> laurie, what would you be looking for in the earnings? 10% or so below where we were at the end of january, not really much has happened in the way of corporate fundamentals, even the credit markets seem like they're not giving you anything to worry about. >> we did a survey of our analysts and 75% said the fundamentals are still strong. we don't think there's been any

underlying deterioration yet look for two things in the next reporting season first you need to see pretty good participation across sectors. we did have that in the last reporting season, but that brings me to people want to hear about something other than tax reform. >> like what >> they want to hear demand is good, they want to hear that margins are still going to be pretty strong. i think that's been the problem with the inflation debate, it's been conflated with conversations about wages and i think people care about wages because it ultimately impacts margins at the end of the day. if you have fears settle in that wages are going to erode margins that could hit confidence a bit. >> bob, you laid out some of the risks when you take a look at equities, tariffs and trade war fears and leadership changes at the white house that continue to keep going you have an upcoming meeting with north korea i know you have the fed tightening the mueller investigation. we have all the facebook and potential broader tech backlash. you've seen volatility spiking over the last couple months. i mean, it seems to me we can talk about fundamentals but a

lot of risks facing equities where would you be putting your money? >> i'm still of the view that we are in a broad trading range marked by the low of 25, 32 at the bottom of the big correction and the high of 2875 we will bounce around. you gave the right list of negatives but don't forget the positives. we talked about earnings a lot of stimulus behind that between the tax cut, repatriation, the good news that comes from that, that outweighs a lot of these things. when they're down a bunch, i think you have to buy them and when they're rushing higher you don't need to chase pem thp them. >> what wouldn't you buy right now? >> we would be buying financials right now. if you think about the rising rate environment and inflation fears are good conditions for financials and valuations have been just fine i'm not a buyer of tech here we've had it on downgrade watch, at a market weight, think the sector is crowded and expensive. you've seen a sharp rotation out

of internet but software valuations are the bigger problem in tech right now. >> bob, have you been concerned at all about the fact that overseas markets were actually leading us into this weak spot that u.s. finally ended up in, especially europe, and that's been accompanied by a little bit of a rollover in the economic data over there. where does that leave us >> yeah. you mentioned another good point that's got to go on the concern list the economy is certainly a stopped accelerating it would seem the question is, is it going to weaken the lead economic indicators have sort of flattened out, the coincidence ones are still moving higher and the leading we have to watch. both here and overseas i think we will have an economy that's good, but probably not accelerating, so you need to make sure you've got some quality in your portfolio to go along with the cyclical earnings growth >> laurie, i want to get back to the comments you made about tech do you think that we're sort of at the precipes of seeing the fang stocks, the leadership there begin to go away. >> we did a really interesting study seeing there's a new sector going to be created this

year, the communications services sector. one of the reasons the folks over at msci thought the internet got too big and diverse and need a third sector to put it in. i put that in the context of the reits carveout in 2016 when reits were so big and important in their own distinct asset class they deserved a special sector we saw the peak in performance heading into that event. i think this whole idea that internet is so big it's got to have this new pocket of the market to call its own, that tells you a lot about sentiment right there. >> i've been looking at that and wondering if it was going to spotlight exactly how big a bet the market has on everything digital or if it was going to enable people to hide and say oh, look, no sector is as much as 20% of the market now because they're both going to basically be smaller. >> i think the interesting thing is if you think about telecom and media they will be in the new sector and this expensive sector and people are starting to worry about the crowding and the fangs. i actually wonder if telecom and pedia benefit as people -- media

benefit as people rotate out and want to get something cheaper. >> bob, we're going to talk to peter navarro later this morning in an hour and i'm wondering on the trade conversation, if there is -- what kind of promise could the white house make in terms of fruit being born from the talks that would truly make you a little more confident about the trade environment? >> i think that they indicate that there is some progress, carl, on the intellectual property discussions that are going on look, we're all for free and fair trade and most of the world operates that way, but i think we all know china doesn't. so we need to see some progress here where we can walk away and say we're heading into a new direction and new understanding. china has more to lose from all of this than we do we both would lose but we would lose less than china let's hope there's good discussion of that data. >> bob, laurie, thanks for the good discussion here appreciate it. thanks for your time

the department of justice suing at&t to stop its proposed $85 billion purchase of time warner day two of the trial is kicking off this morning and our hampton pearson is in washington and joins us with the latest hampton, good morning. >> good morning. yeah, we're essentially about ready to really move into the first full week of testimony the government putting on its case as to why it believes the $85 billion at&t/time warner merger should be blocked during opening argument the government has made the case that it believes that a merged at&t/time warner would essentially weaponize time warner content with various rivals going forward and that could eventually lead to less innovation and higher prices for consumers, the first witness they called was a cox cable executive who essentially testified that time warner -- a merged time warner would be more difficult to deal with

post-mer post-merger than they are now when it comes to negotiations for what's presumed to be must-have content for other cable competitors like march madness or hbo or cnn. but that testimony was really undercut by the at&t lawyers during cross-examination who pointed out that that witness offered no quantitative or economic analysis to prove the basic point. now the reason that's important is, judge richard leon who is going to decide this case, ultimately, has told the lawyers for both sides he wants facts as much as possible to back up two totally competingly different visions of what the competitive landscape would look like after the merger in just a few minutes we're expecting the government to call its next witness, an executive from sling tv, one of those new upstart streaming services that offers cable page of content for as low as $20 a month. the case is just beginning this trial could last six to eight weeks with each side

allowed to call up to 30 witnesses each back to you. >> glad we have your eyes on it, hampton. thanks for that. hampton pearson watching the trial. when we come back apple's ceo tim cook talking trade in china. you'll hear what he said about trump's tariffs. peter navarro will join us on "squawk alley," a first on cnbc teiew. dow up 433 back in a moment ♪ feel that? 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,

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apple's tim cook co-chairing the china development form this week against the backdrop of tariff announcements from the president and fears of a trade war brewing with china eunice is in beijing and joins us with the latest hi, eunice >> hey, carl, the fears of a trade war did dominate the forum as co-chair tim cook was calling for calmer heads and president trump to support policies that promote free trade >> what i've 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. >> reporter: and other ceos

shared cook's concerns including blackstone's steve schwarzman. >> if there needs to be a negotiated arrangement between the two countries and it's important to note that most of the types of things that are being discussed from u.s. side can be delayed in terms of their implementation and hopefully will be. >> reporter: and despite the aggressive rhetoric from both sides there are reports now that the two are negotiating behind the scenes the trump administration has reportedly handed a to-do list to the chinese that includes a reduction of chinese tariffs on u.s. autos, more chinese purchases of american semiconductors and greater access to to the financial sector now speaking to a source familiar with these discussions who said that the chinese appear to be willing to cooperate on these issues and offering to buy

more semiconductors from the united states and accelerate the timeline for greater foreign ownership in securities. beyond that chinese officials have said that president xi jinping would be highlighting further financial reforms at a business forum in mid-april. today the foreign ministry reiterated again that beijing is willing to hold talks with the united states to -- in order to try to smooth over their differences and tomorrow, a small group of ceos, american ceos, are going to be meeting with the vice president who, again, is a very close ally of president xi jinping carl >> eunice, thank you very much for that eunice yoon. the treasury secretary steven mnuchin argued on "foxx sunday" tariffs are good for the long term. take a listen. >> i don't expect to see a big impact on the economy. we've been very careful in how we're doing this and what we're doing, but again, i think what we're doing is long-term very good for the economy, which it

is pressing for free and fair trade. to the extent that china is willing to open up their markets, which they're making all the right directions on, but if they open up their markets it's an enormous opportunity for u.s. companies for more on this we're joined by former gm vice chair and cnbc contributor bob lutz. good morning >> good to be here thanks. >> you're no stranger to this topic. sounds like your take is at least as it relates to china directly, that it's not a real problem wade fog these waters and that these things can be settled am my kable. >> they can be and let's face it, we have the leverage because china is dependent on exports to the u.s. far more than the u.s. exports go to china. it's like president trump said, trade wars are easy to win when a country has been playing the sucker and has permitted itself to be the victim of

unfair trade for decades, a little pushback is good. i think this is -- there may be a short-term effect on material costs, but if it helps to restore american middle-class industrial jobs, it's great for the long term. >> how long does it take to reach that kind of resolution where everybody can stop worrying >> well, i think it will be ongoing negotiation because somebody is always trying to gain a competitive advantage in trade. but the main thing is that for the first time in 40 years, the u.s. is defending its interests in trade and, you know, i lived through decades in the automobile business when we were basically being cleaned out by ill advised trade policies >> bob, you mention wed we have all the leverage and decades of unfair trade practices with china. why is the u.s. just taking a tougher stance on this now

>> say again >> why are we just seeing the u.s. take a tougher stance on these trade policies now >> because we finally have a president who is a businessman who can see beyond the short-term effect. 30 or 40 years prior to that, we had republican administrations and democrats all politicians who had never had a job in their lives, and they were drawn by the lure of low-cost goods it's true. you bring in goods from a country that manipulates its exchange rate or is at a very early stage of development, you're going to have low consumer prices. i'm telling you, it is not necessarily good for the country to have $19 dvd players from china if it puts a bunch of americans out of work. it's better to have 25 and $30 dvd players that have been imported under fair trade rules

with a country that isn't artificially keeping its currency cheap so it's -- you know, it's pay your money or take your choice you can have low-cost goods from people that are competing unfairly, you have low consumer prices, everybody is happy, and the jobs disappear then the government has to -- has billions of dollars of outlay supporting the unemployed and having industrial development zones and providing incentives, trying to get the jobs back. tryi i will tell you having lived in europe for a number of years, in fact almost 30 years, i can tell you, other than countries are far more aware of their national interests than the u.s. has been and it's delightful to see a president who is finally doing the right thing. >> bob, what goes through your mind when you read stories about grain farmers worried about losing a marginal buyer and when

their rhetoric points to their 1.2 trillen in treasury holdings >> you know, whenever you change conditions in trade and somebody else raises tariffs and everything, the people that are benefitting from that are naturally worried. there may well be some reduction in american exports but i will tell you if you look at agriculture it is so highly regulated, every european, every country in the world viciously defends its own agriculture for national strategic regions and also because the farm belt is important for votes in every industrialized country my feeling is american grain is grown so competitively, that if the dollar is at the right level, which arguably it is right now, it will be competitive regardless of tariffs. if other countries need the

grain, they're going to keep importing the grain. if it has to pass a tariff wall and gets a little more expensive, well then i guess every loaf of bread is going to be a nickel more expensive but, in the long run what you have to do is seek some sort of balance to where your industry and your agriculture isn't being cleaned out by unfairly traded products from other countries. >> so bob, a couple weeks ago elon musk, ceo of tesla on twitter says 25% import duty on american cars in china versus the u.s. 2.5% import duty on chinese cars and u.s. car companies can't own up to 50% of their own factories when they build in that country. in response president trump says, reciprocal tax program does that sound like the right move to you? >> well, something has to be done and you see the imbalance 25% tariff and it used to be

more than that, by the way, and we have almost nothing europe does the same thing to us we pay american cars going to europe pay a 10% eu external tariff and then once they get into a country, there's a 20% value added tax. american cars in europe are about 40% more expensive than they are in the states german cars don't pay the value-added tax when exported. they get to the u.s., they pay the 2.5% and whatever state tax there is, 4 or 5%. >> should we be targeting europe too then >> well, i think i've been talking about the imbalance in auto mowtive trade between europe and the u.s. the last 20 years and every time i went to washington someone would pat me on the head and say you guys are cry babies, you to learn to compete. you can try to compete all you want if the ground rules are against you and the umpire is against you, you don't stand a

chance >> bob, it's good to get your take on it we're going to be talking about this for a while and according to you, that's a good thing. thanks for your insight. >> absolutely. okay >> don't miss our cnbc chat with white house trade adviser navarro, 11:00 a.m. eastern time we look forward to that as well. as we head to break we're keeping an eye on dropbox after the cloud company surged more than 35% on friday from its issue price following its ipo. the stock up a touch adding to gains about 1% just under the $29 mark a look at the broader markets, major indexes have eased just slightly down from their highs but a strong bounce off the lows the w doup almost 2% is the outperformer today stay with us

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time for our etf spotlight where santoli is looking at financials leading the rally after one of the worst weekly performances in a couple years. >> they were right in the middle of the mess last week for a bunch of reasons didn't hit all sectors of the financial group equally. here we have different etfs that

track different parts of this market ixg global financials, also chinese banks, europeans, all the rest it's been a global story with fears about tightening financial conditions the big u.s. banks, kbw, bank index. see the out performer the regional banks, u.s. economy still remains a strong spot, the fed on path to raise rates kce not looked at quite as much. the exchanges the broker firm asset manager that held up well. what's been hitting this group obviously the fed. we're not sure if there's going to be a fourth rate hike wasn't so much what it was about last week. you had european financials hurting a lot and concerns about the short-term overnight funding rate for banks people worried about whether that meant there was stress building in the system there may be so, but a lot of people now thinking it's more mechanical reasons yields on the longer end have slipped from highs less of a tailwind today, the stocks came in

extremely oversold the overall market was very oversold the financials even more so. so we'll see whether they lead us out of this or not. today they are bouncing much more than the benchmarks because they were on their heels quite a bit last week, twice. >> miguys >> coming up senator warner and others calling for mark zuckerberg to testify on the company's data privacy scandal more on the fallout over facebook after the break >> 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 come and testify he created this industry and he needs need explain to the american public and policymakers.

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good morning, everyone i'm sue herera your cnbc news update at this hour the lawyer for adult film star

stormy daniels making the morning show rounds after she answered questions on "60 minutes" about allegations she had an affair with donald trump. michael after netty says there will be more evidence but won't go into details at this time daniels says her encounter with president trump happened in 2006 the white house and the president's lawyers have denied those claims. the white house says its decision to expell russian diplomats and closure of the russian consulate in seattle will make the u.s. safer sarah huckabee sanders issuing a statement saying president trump is responding to allegations russia used a military-grade chemical weapon to eliminate a former spy in the united kingdom. an investigation is under way too a deadly shopping mall fire in siberia. at least 64 people including children were killed in a fire sweeping through the upper floors yesterday the mall was a former cake factory and had very few windows or doors

and take a look at this. yes, that is kind of orange snow it's a weather event taking place in europe. orange snow blankets parts of romania. pollution isn't involved here. experts say it was caused about astorm which picked up clouds of sand from the sahara desert and then you add moisture and you get orange snow. that's the fuse update at this hour i'm going to send it back to you, carl. >> sue, thank you very much. welcome back to "squawk on the street." i'm carl quintanilla and morgan brennan. watching the rally closely to see if it could hold critical levels we're up about 350, up about 200 points above that earlier today. facebook has continued to erode. ge below 13 as well. for more on the rally let's bring in director of floor operations, art cashin here with us at post nine. happy easter week, art. >> happy easter week. >> the ties are out in force. >> we've started. >> what's important to hold? >> plus territory at the very

least. you have help from secretary mnuchin talking about the quote/unquote trade wars really being in negotiation, saw hopeful signs, but a critical point to me is that the s&p on friday stopped right on the 200 day moving average it stopped at 2900 day moving average in the early february sa sell offs. when you have some, as you pointed out, the "60 minutes" interview didn't appear to be a knockout drop so that allowed things to come back. try to hold on to this and i'm a little disappointed when they slip below the plus 400 so now they're going to be testing. we're coming up on the european close in an hour we're back in sync with them their daylight savings time was different than ours. now we're back in sync how we do by 11:30 will be critical. >> art, is it strike you -- it

always happens in corrections the markets seem to trade technically but you you point we go out and stop at the 200 day average everyone looking at the same triggers, does that help us here or there is a possibility that we're a little too comfortable, that that's going to right the rules here? >> you're going to start out comfortably because you're going to say it stopped in early february, this looks like it's repeated the same thing. you had a decent bounce after that said we were going to test the lows and we did. now people are going to feel a little more optimistic until we roll over and/or retest the 200 day moving average or break through. we've been above the 200 day moving average for 400 days now. >> yeah. >> and while it's trader folklore in many eyes when below

the 200-day moving average the level of returns are nowhere as good as when above it. >> given the fact we have so many potential risks when you look out whether from the white house and trump administration and changes there, the fed and this tightening cycle, whether it's tech and facebook specifically, on and on, what do you see as the biggest potential catalyst or thing to keep an eye on >> i think the market is beginning to understanding that the art of the deal and the president's mind is you start first with something very dramatic, i would say mike i'm going to kill you and mike says please don't, okay, i'm just going to break your arm then and you almost get a thank you i think what they're beginning to notice is that the president -- for example, the steel and aluminum tariffs sounded like they were going to be big and originally nobody was going to be exempted and now everybody is exempted.

i think the markets are beginning to catch on to that. otherwise, i would have said, further overtures out of the white house would be the biggest problem. i don't think that's going to be it i think you have to watch for the market internals i'm a little bit of a bull if you would on the bond market because i think they're going to hold these yields. but that would be dangerous. if you went back above 3, 3.04 would be a problem. >> markets may discount our own president's behavior but you have to discount ou trading partners might behave. >> i think a lot of people misread when china came out with their overture with 125 different products, that really from what i'm seeing, was a response to the steel and aluminum tariffs, not to the threat of a big overall. they don't really know fully where we're coming with the

supposedly $50 billion and again, people are overstating the numbers of $50 billion is the amount of trade in those areas that's not what the tariffs are going to be. they're not going to be $50 billion. >> right. >> no, i think you have to watch what's going on in washington and a lot of it will be the status of the president. that's why i say there was a mild sigh of relief on the "60 minutes" thing which tells you very importantly that whatever happens with mr. mueller and that investigation, will be very important. because if they think there is anything that will disable a president or jeopardize him, a lot of things are potentially going to change. you have small business and main street appear to be very enthusiastic between the tax reform and the upbeat nature a lot will depend on how effective they think he will remain. >> art, thanks. >> my pleasure now for a closer look at

tech stocks and the facebook fallout the company taking out nine full-page newspaper ads to apologize for a, quote, breach of trust in the cambridge analytica scandal. brian is with pivotal research group and you sif is an analyst with suntrust. thank you for joining us today. >> thank you >> i'm looking at both of your stances on facebook stock. facebook is the laggard today, down 3.5% again. one of you says buy, one of you says sell. i want to get both of your takes. brian, you have a sell rating on facebook why >> sure. so i've had the sell rating since july not because of this latest issue, but just because of concerns of growth that there is only so much that digital advertising can grow and only so much facebook can grow within that what would cause the sudden slowdown is impossible to predict in advance or it would have been impossible to predict in advance and not saying this

incident is going to be that catalyst specifically but increasingly likely could be over the course of the next year or so. we will not see difference in the first quarter in terms of the spending trajectory or second quarter and i don't think my growth expectations are different than consensus this year i think we will start to see more market deceleration because of scrutiny applied to facebook which many large advertisers do not feel works well for branding purposes and you are going to have higher costs associated with compliance with a whole host of managerial problems that come to light. >> yousef, you have a buy rating on the stock, given the data scandal with cambridge analytica, also over the weekend the news that the company has been scraping data for android users through facebook apps which a lot of users seem to not realized they agreed to. are you sticking with that rating >> yes, we are i can tell you we came back from shop talk last week where we met with literally hundreds of

brands and the key takeaway is certainly from a pr standpoint this is a huge issue for facebook and it's going to take them months to resolve if not longer but from an advertiser, facebook continues to be one of the best platforms and we have yet to meet a single brand whose identifying facebook as a platform they will be pulling back from a numbers standpoint you can see that growth rate for 2018 should continue to be in excess of 30% even considering the pr issue that they have now. that's twice as fast as overall on-line advertising and from a cost standpoint, we're assuming that they're going to see a dramatic lowering of margins in part to hire tens of thousands of people they need to address this issue, both from a quality of content and a quality of advertising standpoint.

>> yousef, right now as we speak, we've got headlines crossing that the federal trade commission says it has opened a nonpublic investigation of facebook's privacy practices what's your reaction >> look, more is going to happen i mean i think this is just the tip of the iceberg, unfortunately, from a pr standpoint and i think remember, gdpr is coming into effect on may 25th, which will bring even more of these privacy concerns to the floor, but i think if there is one company that or maybe two companies that can weather the storm overall again because from an ry standpoint the platforms continue to perform well for advertisers it is facebook and google >> brian, looking at this ftc headline right now, it seems to me, if the regulators do find potential wrongdoing with facebook you could be looking at a lot of money in penalties or fines. that doesn't sound like it's very good on top of what you're already -- the argument that you're already making for

shrinking margins. >> you know, i'm not worried so much about fines because i think investors will look past it, a billion here and there, and eventually we're talking real money. that's not the issue the problem we're going to find is that -- and this is particularly pronounced in europe but also going to be pronounced here, most consumers, although they may have authorized the use of data for different purposes and may have authorized it in android -- >> i'm so sorry to interrupt you. we will toss to elon in washington, d.c., regarding facebook and the ftc. >> yes the ftc confirming it has an open nonpublic investigation into facebook's privacy practices. the ftc issued a statement from tom paul the acting director of the agency's bureau of consumer protection he said that the ftc is committed to using all of its tools to protect the privacy of consumers and foremost among those tools, is enforcement action against companies that

fail to honor their privacy promises and companies that engage in unfair acts that cause substantial injury to consumers and violate the ftc guidelines again, the ftc confirming it does have an open, nonpublic investigation into facebook's privacy practices. this coming as facebook executives have been on an apology tour to consumers. we'll see where this investigation leadsand we will bring you more as we have it back over to you >> elon, thank you, in washington, d.c. shares of facebook we are at the lows of the session down 5.5%. brian, i'll toss it back to you, your reaction to the reporting just laid out? >> yeah. i don't think most consumers are fully aware of how their data is used when i started my career as a banker i was taught the page six test if there's a behavior you might engage in that could be described on page six, don't do it most digital advertising fails to the page six test between the cambridge analytica

shuey is in the uk is a tire fire, facebook's train wreck is running into it. the ftc will be a bigger problem if they uncover and talk about more and as reporters talk about practices that have gone on in digital advertising that consumers do not understand that will be the thing that will be more problematic >> yousef, we're focused on facebook given this breaking news, but how much should investors be focusing on alphabet in light of this too? >> oh, i think this permeates the entire industry, not just a facebook issue, but facebook because it's large scale and brand, certainly is bearing the brunt of it. again, i think for facebook this is an existential issue and they need to get in front of it we saw what happened with aol and yahoo! over the last several years. this is very important this is crucial for them to get it right i think for google it's the same i mean you have the same -- some of the same issues permeating

with youtube and gdpr starts taking effect in europe, it's going to again come to light that they absolutely need to spend the amount of time and the amount of money needed to rectify the problem. >> gentlemen, we will leave it there, thank you so much brian and yousef when we return, one of america's oldest gun makers filing for bankruptcy. more on the state of the gun industry coming up plus, the director of the white house national trade council, peter navarro injos "squawk alley" in a first on cnbc interview. stay with us at crowne plaza, we know business travel isn't just business. there's this. a bit of this. why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly.

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as global markets fall into correction territory one top strategist says he has found the ultimate value play. find out what it is on tradingnation.cnbc.com more "squawk on the street" coming up. .

let's get out to the cme now and rick santelli with his santelli exchange. good morning, rick.

>> good morning, mike. and good morning to ira harris thanks for joining methis morning, ira >> rick, always a pleasure great pleasure. >> now, listen, ira, i don't mean anything, you know, bad by this, but certainly this administration, everything they do is perceived by most as half empty. i get it when it comes to trade, i'm not sure the half empty approach is going to be a god investment strategy -- good investment strategy what do you see in the nonbinary world we live in where no matter how much one may be of a purist of free market capitalism, it's a knuckleheaded approach, if you want fairness you can't be rigid anymore. >> i think that's correct. it's interesting because this goes back to 200 years madison and others, i've been reading this over the weekend with the new book that came out on u.s. trade and it's just -- that's it.

you have to be flexible. because there is no such thing as pure free market capitalism that only exists in econ 101 when they give you the six variables that make up a free capitalist society they don'tsociety. they don't exist you always have to bend and be reflexive, almost to use george soros' concept and react to inequalities that exist on the global trade platform. >> another area, short rates, maybe specific libor, but relationships, whether it's libor oes. and for viewers that don't pay attention. short rates are under pressure it's the half empty, my god, structural issues. the more we dig down deeper, it seems at the bottom of this is big changes in tax policy. your thoughts? >> yes, that's true. one of the best plumbers that i know in the business wrote a

piece about that, it's not systemic as it was in '07 or '08 when that spread was going out for obvious reasons, and you and i talked about it in realtime back then. so we're trying to understand where we're at here. there's a lot of conflict about it there ought to be no panic there ought to be thoughtfulness and let's give this time to see how this plays out especially as the fed is changing its funding to the front end and doing enormous amounts of t bills within the four-week to one-year period >> that's a great segue to my last question. we have supply this week, short supply twos, fives, sevens. the 1.3 spending bill signed, how do you expect the short auctions to go quickly >> rates are going higher because people are getting nervous about the lack of fiscal

responsibility in the united states that's pushing short-term interest rates up as investors become more nervous. >> wow sounds like a flattening curve trade to me. ira harris, always a pleasure. mike santoli, back to you. >> rick, thank you very much let's send it over to jon fortt on the floor with a look at what's coming up on "squawk alley. >> fcc commissioner brendan carr will join us it's a year after this controversial rollback of rules where they said the privacy rules that isps carry ought to dithci same as those of soal mea e ftc now looking into facebook we'll see where this commissioner stands. that's coming up on "squawk alley.

one of america's oldest gunmakers, remington, filing for bankruptcy scott cohn joins us on the phone this morning with more >> this bankruptcy filing which we first reported last night coming on the heels of those marches around the world this weekend against gun violence but remington is not going bankrupt because of public backlash against guns. on the contrary.

like the rest of the industry, remington cranked down inventory in 2016 and people bought lots of guns in anticipation of hillary clinton being elected president. when donald trump won, customer sauce less urgency to buy guns and sales plummeted. remi ington remington's parent saw sales plunge more than 30% last year remington has huge dead loaded on to the company by its owners, and nagging product liability issues that we first reported on in 2010. our documentary "remington under fire" which is still available at cnbc.com investigated allegations that the company covered up a deadly design product in the model 700 rifle the company denied the allegations but nonetheless agreed to replace the triggers in millions of guns in a class action settlement that is under appeal the plan filed late last night

in delaware is a pre-packaged bankruptcy so remington will continue to operate and if the court approves much of its debt will be wiped out still, this bankruptcy after more than 200 years in business is a dark chapter in remington's history. >> scott, thanks for bringing that to us when we come back, peter navarro will sit down with us. we'll talk trade, tariffs and e markets. "squawk alley" starts in a minute

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