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11:00 a.m. on wall street. "squawk alley" is live ♪ yeah, easy to say. good thursday morning. welcome to "squawk alley." i'm carl quintanilla with jon for the and megan brennan. busy morning stocks are now at session highs, up 266 europe is going to close strong it looks like as the sector, the tech sector looks to recover after a wild week. take a closer look at facebook companies say it is ending key partnerships with large data brokers, scaling back the targeting advertising business apple's tim cook adds his voice to the debate.

talked to kara swisher saying he wouldn't be in this situation to begin with >> we're looking at every app in detail what is it doing is it doing what it is saying it's doing is it meeting the privacy policy that they're stating right? and so we're always looking at that should we raise the bar even more we're always looking at improving and raising the bar. >> mark zuckerberg, what you would do >> what would i do i wouldn't be in this situation. >> backlash against the company continues though actor and comedian will ferrell posted on facebook he's going to leave the platform in the coming days joining us at post nine, victor anthony, analyst over at ages capital. good to have you back. welcome. >> thank you >> what needs to be done to start the repairing process if there is to be some? >> i think facebook has done a lot already. >> you do? >> yeah. i think they took longer than i expected them to address it. but they are tackling this issue

head on. i expect mark zuckerberg to go in front of congress he may have a hard time. he's not the best public speaker out there. but i think that is the right thing for him to do. so, you know, the longer the sling is in the press, you know, i think politicians, regulators, i think they'll keep this in the headlines for quite some time. you probably see some pressure on the stock the stock will change range bound a little bit but i think over time they'll get through it >> if we were to see an impact on any metric out of q-1, what is it? is it ad load? is it engain snegement >> i think it's a gq-2 impact when i speak to average facebook ugsers, those not in the media or press or hyper political types, they don't really care about this cambridge analytica crisis none of them are deleting accounts or reducing time on facebook i was on the bus ride home

yesterday to new jersey and i was standing room only i was standing on the bus. almost everyone was on facebook or instagram you may see some user defections at the margin in the second quarter. but i don't really see a major impact longer term on facebook >> will there be any kind of recalculation, reorganization though around how data is treated in the valley? i mean i remember when apple started talking about differential privacy, how they're going to get into the data space but in a way that shields people there is a lot of eye rolling. okay they're not really in the game like facebook and google r they really got the data. >> right >> now is that going to become s some sort of an advantage and do you have to shift the financial models factoring in that possibility? >> the only major shift you'll see out of facebook is i think they need to be a lot more cautious in the rollouts and they may be more cautious in terms of any new ad targeting

techniques they have and they'll scale that back a little bit you see some pressure modernization. i took my numbers to reflect that but like i said, over time, you know, i've been through the crisis over and over and over again. i've seen these and other large tech companies, they always find a way to come out of it. and so at the margin you see some changes as far as large scale business model changes, i'm not expecting that >> like what tech companies? what companies should we be looki looking at as predecessors >> not this precise issue. but if you look back with google when they first -- the first issue with the u.s., they plowed through that they've been deeg with this eu situation. i think the stock is triple since that issue came about. the youtube ad backlash, they ripped through that as well. facebook had their own sort of, you know, video metrics mishap, they worked through that as well netflix, they had the -- they also had the issue with the pricing changes and they did lose some contracts there. that's an example of what can

happen with facebook but they recovered i think the stock is up ten times since that issue came about. so those are the ones that i'm looking at. >> while we have you, victor, there is om done tamazon the president of the company tweeting about potential anti-trust threats again you said last time i think you're more confident in the stock than you've been in 15 years. >> yes and that hasn't changed. i think it's clear what is happening with the president and jeff bezos, more of a vendetta in my view, the reason people come to amazon is the selection, price, prime, and associated benefits with prime. it's a trust factor. trust is a convenience and those are the reasons why retailers have struggled against amazon i don't see that changing. >> i'm not a very political person but this tweet from the president was nonsense there are legitimate criticisms of amazon that place cities

against each other for tax breaks they don't do well enough rooting out counterfeit goods. those are left wing arguments. the president's policy is largely based on getting tax breaks in exchange for jobs. how is he going to criticize amazon for this? then getting on their case for using the postal service to deliver goods? isn't that what they do? i'm getting the postal service deliveries on sunday now of amazon box this just doesn't make any sense. you have to be internally consistent in your arguments even if you're president of the united states. >> amazon is a massive job creator in the u.s. on top of that so the whole, you know, even if -- >> that's life, right? that's capitalism? >> it's a shift happening. industries get disrupted over time we've seen that with the manufacturing industry in the u.s. as far as postal issue, i mean they have alternatives they have fedex and dhl and ups. amaz amazon is -- >> they go through some margin pressures a little bit

nothing to be concerned about. they have very high advertising businesses >> we're going to talk about aws later with go daddy. victor, thanks a lot to get to today. good to he soo you >> thank you >> meantime, the cme group announcing they'll acquire the uk financial company for $5.4 billion it will be the first for the cme since '08. and terry duffy, cme group chairman joins us today. good to see you again. >> thank you for having me >> tell us what we need to know about this firm. >> we like the noise nex is an outstanding firm as you know it has the cash platforms on the interest rates and then the platform on ebs for the foreign exchange very complimentary to cme's futures products and then they have the compression services on the back end for efficiencies for clients. and then obviously they also help with the messaging on foreign exchange so you're talking about looking

the foreign exchange market, cme roughly has $90 billion a day. ebs does $90 billion a day in a $5 trillion a day market wlchlt you're able to combine the two platforms of cash and futures on one platform, taking the best of nex and the best of cme, we're confident we can grow the business likewise, putting the single platforms on the broker tech with our treasury complex. so very excited about this transaction. we think it adds a lot of value to clients and that's really where it's at. you have to create more efficiencies for the clients as we continue to evolve in the most capital intensive business environment that any of us have ever seen. i think this is another step in the exchange world for us to do that >> and in terms of your appetite for acquisitions, we mentioned the first in about a decade. why now? was it something about regulation was it something about pricing was it something about international? >> i think when you look at what we've been able to do, we did the board of trade transaction in '07 and followed it up with

nymex. you consume $24 billion of m & a activity and then we intergrated and made it work and grew the business then the timing was just right from looking at the cash market perspective, markets evolving. we're not going out of our sweet spot as a pure derivatives play. we're adding in cash markets and compression back off and services again for the value of our customers which will benefit our shareholders so i think the timing was just absolutely perfect >> i hope you won't mind just a couple questions about what's going on in the global bond markets and money markets. i mean libor, commercial paper, corporate bond spreads what do you make of all this chop we've seen the last couple weeks? >> well, i mean, on the chop of the market did you say i'm not a bit surprised. i'm not a bit surprised with the action in the market you know, i've been talking about this with folks for a while now. i think you're going to continue to see volatility and fixed income and in other asset

classes. the equity markets are extremely volatile these are day that's would rattle people's teeth in the old days they become normal course of business volatility is a part of the component. that's what we do at cme group we help manage that risk but i'm not bate surprised what i'm seeing the volatility in the fixed income when you look at the geopolitical events going on you see the potential tariffs going on there's a whole bunch of unternt that's going create volatility especially in products now you have to remember this. the fixed income pricing is so low on the yields and, you know, it doesn't surprise me a bit that we're starting to seat jie ra change in price at all >> you said this deal is going to create significant values and efficiencies annual cost savings of $200,000,003 years fr

200,000,003 years fr $200,000,0200 million three years from now half of the workforce has been to be let go to create the efficiencies as i talked about earlier, combined platforms the next exchange has 15 to 20 data centers cme has two. we'll be able to combine a lot of data centers too create the synergies we announced so there is a whole host of issues trading issues that also creates synergies. but mostly on the operational efficiencies associated with the business >> one final question about the fact that you're not a bit surprised about this volatility. you think this is as high as it gets for now >> i think anybody that's tried to predict that is a fool's errant i wouldn't even try to attempt that in lieu of what is going on, i've been saying this for a while as far as volatility goes, but when you have the geopolitical events we've been having over the last several

years around the world and then you have some of the other events that are going on from all these despicable acts that happen, you're going to get changes in the marketplace you have extremely high valuations in stocks you have low valuations in bonld bonds. the volatility is here it's going to stay there is some uncertainty in this marketplace for sure. >> terry, really appreciate you stopping by. we'll watch that deal closely. we'll see you next time. >> thank you >> terry duffy over at the cme. >> we want to go back to the news of the microsoft reorganization nadal putting out a e-mail a few minutes ago to the staff explaining it. a couple executives being elevated here. at least in terms of the amount of their responsibility. jah and scott guthrie. i fumbled it a lytta little bit he'll have the combination of devices. that is microsoft's hardware, the surface devices, things

they've been doing in that area. windows itself, that platform is also going to have new experiences in technology, that includes office 365 and enterprise mobility. scott guthrie on the other hand is going to have azure, ai and so many of the things that at least to consumers used to touching products and software, things that are more platform, developers are dealing with a little bit more. but hugely important to microsoft and its goal of owning the future in the cloud and the way these experiences are being crafted. business, ai, universal store, commerce platform, ai perception and mixed reality, ai cognitive systems and platform is all under scott guthrie. quite a change here. the ceo continuing to make his mark on the company. >> yeah. when we come back, a cnbc exclusive with the ceo of go daddy. we talk facebook, data privacy, user rights and new partnerships then we go live to the

nasdaq with a look at the ipo as we await those first trades. right now markets near session highs. dow up 290 points. at fidelity, trades are now just $4.95.

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dow session high up 330. not far from that. european closes going to be bullish at least for now as the dax is going to close near the

high of 1.5% you couple that with big name tech being able to hold on to gains. >> yes yes, indeed. a name that wants to be big name tech is going to join us right now, go daddy. to set the stage for that, facebook continues to remain under fire it's now pausing its app review process as it implements new changes. our next guest works with security daily let's get his take scott wagner is the ceo of go daddy. welcome, scott you have been expanding the services that you offer to your customers including especially small business into the social space. what strikes you as the core issue of concern business wise where your customers are concerned when it comes to facebook >> boy, well facebook and all the social media platforms really because their entire business is based on people's personal information just think about the utility that everybody gets on those

enormous social media platforms. it's based on their information. and so is their business model and when those things come in conflict, boy, you're seeing trust and people's trust in the platform really obviously come to the forefront the nice thing for us is godaddy is our business isn't based on using people's personal information. it's actually protecting it. it's actually providing tools, software for not only online name and brand and website and e-mail but all the software you use and actually protecting that information. so it's protection, security and privacy is at the core of everything we do and obviously, that's going to get more and more important not just in the next couple weeks but in the months and years to come >> there's an interesting shift in the way that you are going about running your business. this partnership with amazon over time a lot of the data that you guys have is going to -- not the domain business but a lot of

the rest of it is moving to aws. why do that? why do that now? >> well, first of all, what we do for people is to provide applications and experiences and we're a global company we do it around the world. and aws is going to allow us to provide our software and experiences all around the world in a faster and actually more secure environment now the data specifically can rely and sit in an fr infrastructure but we're using it and froektiprotecting it. the reason to do it is provide better, faster experiences for our customers all around the world and -- and this is a big and, amazon is going to use some of our products. we're excited about the possibility of embedding more of the software into the amazon experience and providing value for our customers and connecting more and more to amazon. this is a partnership, not

necessarily a vendor relationship >> scott, i want to go back to this conversation around data. i know you have 17 million customers in 2017. you're on the path towards 25 million customers, strong growth trajectory but you do have access to a lot of data even if it's not personal i know you're in the business of protecting it. how? >> well, again, how -- boy, there is at the root of the company. for 20 years we provided domain names. a third of the world's domain names reside and run through godaddy's servers and our software so the core of all of our engineering is actually security and privacy. and there's all sorts of encryption and protection embedded in every single one of our products that keeps data secure within our environmental. >> scott, back to this amazon partnership and what you see as the core assets and the core value that godaddy itself delivers what are the main drivers of

your business? is it small business growth? the transition to even taking payments digitally and doing e-commerce those are areas you're expanding into i'm wondering as we try to track your growth rajectory, what ar the plain metrics we should be watching >> thanks. two big ones customers, the number of customers that we serve and our engagement with customers. so today we have 17 million customers. five years ago we will 10 million. and we're going to continue to grow our customer count. the market that we serve is enormous there are 500 million, not just small businesses but organizations, nonprofits, political kancandidacies. all of the ideas need to be online just think about it. the most important thing can you do for your idea is get it online and have it work and have it work great. and that's really the core businesses of godaddy.

if you think about 17 million customers, there is a heck of a lot of runway all around the world for us to grow our customer base. and then engagement with existing customers today the average customer spends $139 a year with godaddy. across products particularly around getting an online presence domain names, website building tools, e-mail and productivity there is a whole range of things that our customers are frankly asking us to do and provide for them to help their idea grow and thrive and have success in the world. as we do that, it's going to translate into more spend per customer >> we'll be watching hope to you have back soon scott wagner, ceo of godaddy >> great thaufrp thaufr thanks for having me. >> the results of the cnbc all america survey are out you may not believe the numbers when it comes to households who stream plus, we're watching shares of tesla. trying to shave some losses here down about 1% or so. stock on pace for the worst

month in its history as a public company. dow is up 263. "squawk alley" is back in a moment whoooo.

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i stream, you stream, we all seem to be streaming results of the tech portion of the cnbc all america survey showing incredible numbers when it comes to the number of americans and the percentage of americans streaming. 43% are the nonstreamers but look at this number. 57% call it 60%. streaming has gone from 0 to 60 in almost no time when it comes to introduction of a media over time where are they streaming 51% are in netflix that is around the same -- what is that, 47. it's more than the other two competitors, hulu and amazon prime combined just 2% with some others

so netflix really dominating this space now let's look at the competition between streaming and cable. where are americans spending their time 31% say they watch streaming more than cable. 29% say it's about the same. and look at this number here, 36% cable more than streaming. so you can look at this as cable still dominates or there is still room for streaming to grow now let's look at the number i think everybody really cares about here 14%, they don't know or they're not doing anything in particular both streaming and satellite, % 36%. cable and satellite only, here's the -- if i can get a sound infect of a di effect of a ding, 20% of the public, streaming only we'll talk later about who the streaming only folks are morgan or carl, you? i don't suspect so >> you couldn't say that on television if you wanted to, could you? >> no. we know who pays us, steve but it's true. we're still very much -- >> it's interesting.

i think the next flichl market cap tells you all you need to know that these numbers are pretty accurate. >> yeah. on a day where we're watching the netflix of china trade steve, thanks. steve liesman. it is the last trading day of the quarter. markets in europe getting ready to close and on a pretty good note, at least in germany let's get to more on this. there is a look at the broader market it it on course for broader losses in march. as for what is driving the markets, shares of carmakers are popping after a report that renault is in talks to merge with nissan. german auto shares were up alongside renault. european markets will be closed tomorrow and monday as well for the long holiday weekend joining us to talk about markets overall, let's bring in gabriella santos, global market strategist at jp morgan. >> good morning. >> so you feel like volatility has bottomed out

it's gotten the bumpy as it's going to get and by the way, it's been normal markets probably going up from here what gives you that confidence >> bottomed out in the sense of the very low volatility levels that we had seen for about two years there, from early 2016 to early this year are behind us. and what we mean by that is that the base case is still very, very positive. we have really great momentum and the economy and earnings but there are more questions surrounding that base case around inflation, fiscal stimulus, interest rates, the next recession so that gives us the confidence that while the direction is still up, it's going to be a little bumpier from here. >> what about all the talks of tariffs and protectionism? is that of no concern whatsoever or don't overreact to it >> that is part of the two sided risk there is upside risk to growth things like all the fiscal stimulus we've been seeing there are also down side risks to growth. we put tariffs in that camp. at the moment, everything that we listened to and actually the

good announcements we heard this week in terms of progress and trade negotiations lead us to think that at the moment these are simple trade skirmishes and not trade wars >> we still have shaking our heads at chicago pmi this morning. retail sales is q-1 going to be soft? and if so, is it part of this season alt that we've gotten used to? >> q-1 is looking like it's going to be soft unless all of a sudden the march data really picks up which seems a bit unlikely so we do think growth is going to come in at around 2% for first quarter gdp. but then rebound nicely for the rest of the year anyway to at least 3% so question marks around whether it's really just season alt or whether consumption really took a breather here in the first quarter after surge late last year of close to 4% consumption growth >> let us not forget we had four nor'easter this month and one of

the most popular parts of the country says the girl who is at laguardia last week. so in light of everything you've been laying out here, where do you put your money >> if we look at first quarter performance and we think about what's probably going to be replicated for the rest of the year or where do we expect things to change, so things that are probably going to stay kind of the same, this idea of looking at negative fixed income returns in the u.s., right, we're still being very, very careful and selective within that space things that are likely to change this negative performance we're seeing in equity markets that's likely as we're saying to reverse for the rest of the year we still expect a positive year. and by region, just to mention something that i think is really impressive about first quarter performance is really strong gains from emerging markets. we do think that's going to be replicated and i think, you know, that is still a story a little bit underestimated by investors. >> whether you say up for the year, do you think we take out the january highs?

>> if we think about what would be reasonable for a year like this year, we have more uncertainty so multiples are likely going to be a little more compressed but we have some really solid earnings growth. and it's not just tax reform it's really solid top line growth as well so that should support a mid to high single digit year for u.s. equities and a stronger year for something like emerging markets. >> so when we -- in january we were up 7% you're not discounting it, the idea that we go back and revisit those levels >> if we do the math and if we're expecting a sevenish year, then we go back to those levels. >> you think the faang fears are overdone especially after the bounces in facebook, google, apple? >> it's a bit of the story for the tech sector as well. more uncertainty equals a more compressed multiple which we're seeing but still very solid earnings growth tech sector is the highest earnings growth in the entire

s&p should still support strong performance for the sector although it is going to be bumpier. and i think that's really strong story for equities and for the tech sector overall. >> lots of bumps whether it's zuckerberg's data issues or tweets that jeff bezos is looking at thank you. >> thank you when we come back, no road show, no underwriting. spitify providing for a direct ce f e gh the nyse. weomofthhis a bit. 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, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow.

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north korea is releasing video of kim jong-un's visit to china. kim and his wife later attended a bank banquet with the chinese president. bill cosby's efforts make a last-ditch effort to postpone the retrial by pressuring the judge to recuse himself. they argue he could be biassed because his wife is a social worker who described herself as a advocate for assault victims the brother of the suspected parkland school gunman pleading no contest to trespassing on school grounds he was sentenced two times served zam zachery cruz cannot visit the school and must not contact any victims or their families.

president trump reaching out to roseanne barr to congratulate her after her abc sitcom reboot drew about 18.4 million viewers. barr said the call was pretty exciting she is a political supporter of the president. that is the news update this hour back downtown to "squawk alley." jon, back to you >> all right thank you, sue investors are getting ready for the nyse's first ever direct listing. spotify, bob pisani is on the floor. what do you make of today's market action? >> the important thing is when you get the faang stocks stabilized, the market stabilizes the big five faang stocks, 15% of the s&p 500, five of them, we had earnings issues around them. and when those calm down, the market tends to calm down. so it's really all about future earnings expectations and we're still debating whether the big trend this year is going to be this next quarter is going to be should we deal or sell in any

way these big tech names still markets are open on that one. let's go to spotify. they're trading right here behind me sometime next tuesday. right here, i'll be right here we have highlighted how nushl this direct listing is first, no new shares are floated. all the shares are being sold. they come from existing shareholders there is no traditional road show did hold an investor day meeting that is live streamed. there is no bank that will be buying shares from the company then selling it to the public. as you usually see in an ipo there is no book no one is soliciting orders to buy and sell shares like we usually see. there is lockup. almost all the shares, not quite, but all will be available to trade add it up and it means that initial trading is likely to be more volatile than usual how will that set the price? well, the opening price will be determined by orders from broker dealers. but there is no bank under any obligation to stabilize the price. in the secondary market, it traded between $48.93 to $125

this year. that is not very helpful in determining the price. morgan stanley is hired as an adviser and it's supposed to provide a reference price that was based on the trading in the gray market as well as fundamentals no one knows if this will matter or not what will happen once the shares start trading? we don't know. no new shares are being issued this is a well known company with significant retail interest the price is going to go up. but can also argue the large number of shares available to trade may suppress any price gains. when will i will open? not early. the price discovery process likely to take a long time i don't know how long. but i'm betting we'll be eating lunch by the time it starts trading. back to you. >> all right start thinking about where you want to eat, bob bob pisani on the floor of the new york stock exchange. the netflix of china opening today. how is it going so far >> after long anticipation, opening up for trade here at the nasdaq priced at the midpoint $18 a share. opening at $18.16.

you're seeing a lackluster debut. still up about 2% on the day set to raise over 2 ps $2 billion in its initial public offering making it the biggest chinese company to go public in the united states since 2014 when alibaba went public so it is a big win for the nasdaq now a limb bit about the company. it is the largest video streaming site in china. over 420 million users 98% of which are paying subscribers. that growth story has made it appealing to not just chinese investors but u.s. investors as well some of the vc names that have invested preipo. but keep in mind, this ipo seen as more of a spinoff from baydo.

it is also listed here at the nasdaq post ipo, that he will maintain its ownership in ige it has 80% stake it will continue to be the largest share shoulder something to keep in mind as we watch it trade here at around $18. >> back to you >> was that a gong >> yes, it was a gong. you heard right, jon fortt what we typically see actually around chinese ipos is they display this gong. and, of course, yep, you see a lot of the chinese investors who are in the ipo and even the ceo himself. robin lee also in attendance, of course, given the large ownership in this ipo. >> trading flat. maybe they ought to hit it again. >> exactly

>> seem yash seema, thank you >> let's bring in gsv capital's co-founder and partner joining us as well as sage works chairman and he could founder brian hamilton gentlemen, thank you for joining us >> good to see you it's a stable of high-tech unicorns here. we get ready for the direct listing of spotify next tuesday. what do you think about the company's decision to list in this very unusual way? >> it's interesting. it's an innovative approach. they've been preparing for that for quite some time. and, you know, one hand obviously they don't need to raise more capital they're doing well they're very popular consumer products >> will you be selling shares or

buying shares or neither >> this will really depend, you know, we're -- we have a large position we are very big supporters i think there is significant upside from where shares have been trading lately in the private markets. you know, if you just compare them to the comps like a net flicks, like a sirius/xm, there is significant upside. and, you know, we'll be watching and how the stock is trading and if we felt like it's the right time to sell then we'll do so. otherwise, we'll just hold on. >> brian, we had rbc on earlier today. he put a price target at $220 per share on spotify when it opens next week. what do you think? >> i think it's a good buy i don't like to agree with everybody. but i think he made some good investments. spotify is going to trade four to six times revenue very, very fair.

compare that to snap you are know where they are right now the. so they have cash flow and revenue growth very steep product like them. >> i wonder how you over time sort of value a company like spotify. what do you think is most important core asset is that the likes of apple, google and amazon which are all trying to swim in the same pool can't duplicate? >> yeah. first and foremost is really the innovative approach and kind of yield management they've been able to stay ahead of all of the competitors. currently about twice the size of apple music it's a very sticky product it's a great consumer product and also because the very effectively utilize artificial intelligence creating those lists and suggestions and so you see that basically as a result,

they continue to grow top line at a very solid pace at the same time, they have become a much more important player in the industry therefore, being able to negotiate better deals with the labels and, you know, the margin expansion is going to be key for the next 12 to 18 months to basically give a better multiple to spotify over time >> brian, spotify offering next week you had drop box last week that really strong out of the gate we have iqiyi trading. how do you sum up the ipo market for tech companies right now and what do you think it says about more of the unicorns going public >> interesting it says that if the companies are growing well, if customers like the products, basic things. there is cash flow basically, look, people are buying stocks. they're buying value so if these companies come out, tech entrepreneurs like me and

v value the companies well, they'll be rewarded. look at drop they did very well you have to take each one. some of them go out too high and you see what happens but a company like spotify, 5% churn rate, i'm bullish on them. and remember, we're looking at tons of data but it's really important. what is most important to the tech ipos? growth cash flow? profit do the customers love them the customers obviously love the guys that's what we look at it's really the value. so it's there. >> brian hamilton, thank you for joining us we'll leave it there >> thank you >> when we come back, a satellite the size of a school bus set to hit earth in the next few days but the reason not to worry. the company is working to protect us from that debris. that's coming up equities having a good morning bond market stuck at 275 on the ten year 30 year below three. back in a minute

i'm scott wapner coming up on "the halftime report," as stocks break their quarterly winning streak, we'll debate where your money will work best in the months ahead. can the tech trade get back on track or is it dead? plus yale's robert shiller is

with us. and pete najarian going to the cloud for his unusual activity today. i'll have the reveal at the top of the hour. see you in about ten >> scott, thanks for that. let's get over to the cme group, rick santelli, and get the santelli exchange. hey, rick. >> good morning, carl. the following chart is a year to date chart of the dow jones industrial average overlaid with ten-year note rates. what's driving rates prior to some of the corrections we've experienced since january in the equity markets, it certainly seemed to be that higher rates, better economic fundamentals and a driving equity marketer were all in sync people complain, my god, are interest rates moving higher, going to kill it but the movement in unison is a good thing what i find fascinating on that chart is right at the end of january, early february, there was a correlation adjustment even though stock markets of

course are still at very lofty levels when you think of the distance covered in the last several years, it's given up some ground. interest rates have rounded a bit. even as we sit here, 275, broke that great session in the 280s, we'll still up a lot on the year considering we settled at 241. what's really going on my opinion is it's a confluence of many factors but certain factors are missing like this week we just had a really strong university of michigan, super strong basically best level since 2004. we saw a reversal in pmi which leads us to think the national number could be weaker next week we had 215,000 on claims that's a fresh low going all the way back to january of 1973. we've had spongy retail sales. at the end, it's still about debt and issuance.

even though yields are coming down, the fact they're not coming down faster reflects a nervousness that just hasn't translated into the numbers yet. and that transmission of that in the rates will be exaggerated when some of the data points, especially on the long end, start to look a little more friendly jon fortt, back to you >> rick santelli, thanks still to come, it's a mess up there what defense and aerospace companies are doing outhabt e growing collection of space junk orbiting the earth

market hanging in there before a holiday dow up 272, s&p up almost 30 we're back ain a moment. directv gives you more for your thing. your top-rated thing. that five stars, two thumbs up, 12-out-of-10, would recommend thing. because if you only want the best thing, you get the #1 thing. directv is rated #1 in customer satisfaction over cable. switch now and get a $200 reward card. more for your thing. that's our thing. call 1.800.directv

experts are calling it a once in a lifetime experience. a chinese spacecraft is falling from the sky, expected to hit easter sunday, give or take a day. this is china's first space station. the station is the size of a school bus most of it will burn up in reentry. that said, it does spotlight a mounting threat -- space junk. nasa says half a million pieces the size of a marble or bigger zoom around the earth at high speed. tens of thousands of satellites are set to launch in coming years. companies are using on solutions, including raytheon and lockheed martin. meantime, if you're worried about getting hit by falling space debris this weekend, they say the chances are one in 1 trillion >> i know the earth is 70%

water, it's most likely to hit there. but somebody could still get hit. >> anything is possible. it's likened to a meteor shower. only one person has ever reported being hit by space debris >> if you do get hit, the show will go on tomorrow. let's get to the judge and welcome to "the halftime report," i'm scott wapner. with stocks set to end their nine-quarter run, what really lies ahead joe terranova, josh brown, pete weiss, pete najarian, and the ceo of res asset management. we begin with the end of the corner and that winning streak for stocks is it a sign of things to come or can stocks get back on track? they're certainly having a big strong day today, pete stock is up 30