they cannot talk their books they have to answer my questions. >> kevin, thank you, it has been wonderful. >> that does it today. you can see the futures picked up now and dow is up triple digits, 120 points nasdaq is up by 62 make sure you join us back here tomorrow, right now it is time for "squawk on the street. ♪ good tuesday morning, i am carl quintanilla with melissa lee and david cramer with the stock exchange david is off today all three majors are red for the year and spotify is in focused europe is back to work catching up in the red. the convictivix is lower

a rebound after yesterday's sell-off >> plus is the trump bump becoming trump slump amazon among the biggest decliner after the president called out this giant on twitter. >> spotify sets to make much anticipated its depie todbut to. it is becoming one of the biggest tech in silicon valley to go public this year >> first up. a sell-off that was sparked by trade fears and worries about tech and all three majors are so called correction territory. we'll talk more about what some of these levels mean 442 trading days since we had closed below those levels. >> the roller coaster yesterday was a decent sign. at the end of day, the dow was

down more than 700 points to close under 500 down was not too bad. technical levels, everybody got its own levels to be sure. keep an eye out on 2532. 1800 could be below that but right now we are looking good as far as the futures are concerned at the open here >> we talked to kenny yesterday about those levels and we said does it feel like it is going to close below them you said yes, you were right, now how important is it to hold? >> it is going to be really important. as melissa says, we did close below 2585 s&p it puts us a little bit of a different trading range. futures are happy. they are up 13 points and up above 2585 at the moment they'll try to wrestle with that number and close above today this really feels like just a little bit of a relief

it does not mean all the concerns from yesterday are gone by any stretch of the imagination, it does not mean now we are broken this level and test lower again in the days ahead. you may get a little bit of a dead cat found today which is what it feels like right now i would not be so sure that you know kind of this volatility is over just yet. >> as far as the premarket, what we are seeing so far, the fang socks are lo stocks are looking at a good open if you take a look at netflix, it is opening higher by 10%. to make a run for the green right at the open. >> it is, take a look at what these stocks have done they gotten clobbered. if they are down 10%, they're going to open backup the concerns have been around

tech and the stories of what's happening over investors' minds have not gone away yet you may get a snap back rally because it is a little bit over done >> kenny, what do you constitute a tradeable bounce here? we heard some people this morning look you could take out yesterday's lows but still have more upside potential than downside the next couple of months >> if we take out yesterday's lows, the next level is like 2515 level, mr. gordon says 2532, i am not sure where i will see. that 2515 is the level that's tested next. i am not necessarily sure that you are not going to test it over the course of the next couple of days on the downside i am looking for it to be the short term low. on the upside if we breakthrough in whole of what is now becoming

resistance, it is going to kick in and the markets can surge again towards a high 2585, which is the most immediate resistance i know it is a wide figure but there is a lot of rovolatility late and you can see the market. moves like that are not going the go away from yesterday and today. >> all we got the vix lower and gold down, we'll see if we can carve a path here at least at the open kenny, i will talk to you a little bit, thanks >> joining us now is the president's chief ingevestitive strategist ed yardeni, what are you expecting? >> we have some upward revisions during the fourth quarter earnings season with a lot of guidance of 2018 but, i think a lot of companies

actually are going to report strong a number than the revisions suggested simply because analysts could get the full guidance from companies, now they're going to get hard numbers for the first quarter and i think we are going to see something like 16 % to 17% increase in earnings this year the fundamentals will be paramount again. >> is there any concerns, what we have seen for the s&p 500 because they have been higher. >> yes >> are you concern that perhaps the numbers will not live up to the expectations because of volatility that we see it? >> no, i don't think so because expectations are giddy and heavy, they can get giddier simply because tax cut that we got at the end of last year effective this year i think is going to turn out to be a power force for the market

repay tra re-patriot r re-patriated earnings are coming back, too. >> is that jp calls it a mi misconcepti misconception. >> it is always a tough call i have been looking at funds of etfs and there is no blackouts there and in february where the market got hit dramatically, only $19 billion came out of f etfs mutual funds. it sounds like a large number. i think etf money is going to come in and foreign money. i think the market is going to recover. >> the benefits from tax reform because it is funny.

largely manifesting itself through buy backs or increasing in capital expenditures? >> there is so much money coming back and the answer is all of the above. there is a tremendous cash flow positive impact from the tax cuts that you got to see capital spending and ceo confidence presented an all time record high that correlates well with capital spending we'll see repayments of pensions and liabilities. i think the money is going to go everywhere for dividends and buying back shares with that kind of money pouring back into the mark >> alreaded, great to see you >> thank you >> let's get to phil lebeau now. >> let's get the most important number out of the way. the one people are focused the

most that happens to be what happens with model 3 production in the first quarter. the company for the first quarter delivered 8,480. the production they wanted to hit was 2500 a week by the end of march the company produced 2,020 over the last seven days. the last week of march, they produced 2,020 below the guidance of 2500 1500 to 1700 in terms of what the company expects going forward, they expect to produce 2,000 model s and x vehicles and 2,000 model 3 vehicles that's the real focus. what is sustainable from here. it is one thing to look we cranked up production for the last week of the quarter can you sustain it or ramp up from here. those are questions that the company will be facing not only from wall street but investors

production of 34,490 vehicles for r the fifth quarter. guys, back to you. >> on the three, this is the fastest growth of any automotive company in the modern era. if this rate of growth continue, it will exceed the ford and model t. >> who am i to argument with that i don't think anybody is going to sit here and get excited of tesla's growth given the fact that they're comparing themselv themselves >> tesla is saying it will not need equity or debt raise this year part from the standard credit line. that's a huge sigh of relief you have so many analysts saying a third quarter of some shape or form is necessary to fund model

3 and possible model y later in the year that seems to be confidence on the part of the company that the target of 5,000 a week for the 3's are going to be hit by the time they need to be hit >> yes, remember melissa, that's important because they need the cash flow in order to say well, we don't need to raise any capital this year. yes, i think the stock will get relief based on that and investors will share that news to say the least >> we see the stock there rising at 4% premarket on the back of these numbers and the headline >> back and forth, phil, of the reporter of information regard to a story, somehow taking control of production. don't you have anything to write about and the reporter says why don't you get on the phone with me and musk says well, i got cars to build.

>> he was feisty yesterday he was going after reporters you have to admit he keeps it interesting in terms of if he feels he's being attacked and criticized, he'll respond. by the way, with regards to him taking control of production, look at it this way, this is his way of saying to those who are in the productions aspect of the company. this is going to have to change immediately. and whether or not they ultimately bring in some type of a coo or somebody else, that'll be the big question over the next six months to nine months >> phil lebeau, we'll get all the sales in a moment with phil as well. spotify is making its public debut with the big board, the markets and more and tom farley. the future is looking constructive god a ton miaewweofed ns 'll get through with david and check on amazon and other names when

"squawk on the street" comes back you know what's awesome? gig-speed internet.

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when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. music streaming service spotify making its debut at the nyc today. farley is here with us good to see you, tom

>> this will be an abnormal day in the history of the ipo, is that fair? >> it is not an ipo. it absolutely will be. we do something call direct listing. it is a company listing their stocks without raising capital we don't do it with a high flying tech company and exciting company like spotify >> daniel et says we are not into this for the pomp or t circumstance of it all >> one is raising capital and another is visibility and another is having liquidity for shareholders and employees and acquisitions spotify cares less about that branding element and about raising capital because they have a near on limited access to capital and the private markets.

i have been working with them for two years, they never talk about the bell or coming in this building all they talk about is how can we execute this transportation abnormal in a way that is best for their shareholders >> so they can check the bottom two boxes, they have a currency that's conceivably and the key is all the shareholders find themselves today with an opportunity to do that what are your expectations for how this is going to go today and when we'll see an opening? >> let me answer them in reverse order. it is going to take a while to open we are in no rush. we prepared a lot for today but today is rolling the ball out in the court and letting this community find the right price and we are uniquely established in order to do that. i do think it will take a while and we need to be patience it could go beyond noon or 1:00 p.m. today. we'll take our time and wait until a smooth price in a typical ipo, the night you

hand shares over these institutional investors, they know the game. you don't have that in this case it may well trade with a little more volatility with the typical ipo. divided by the very first trade of the day and this could have a little bit of volatility than the 10% given circumstances. >> $8 billion of shareshareholds they could show up quickly >> not dodging any information or what i can see. i can tell you conversation with shareholders and employees, they really like this company this is not a case where you know the 91% of the shareholders who could sell are going to s l sell >> how does it change your business at all? >> if more companies decide to

do direct listing and they want an exist for their early inve investo investors, what do that do to your fees and wall street? >> it does nothing for us if terms of fees. >> it is the same if you bring a company public or direct list? >> by and large. there is a listing fee i want to point out, i am not quick to jump to hey if this is a success, it is a resolution over hall of -- there are not a whole lot of companies in the world that fit that profile for this type of transaction is right in the sweet pot >> it is interesting, we have seen extremes, companies that come public and need the cash early in their public one as an in the occasicase of this one >> i should note that morgan

stanley have been helpful working with us. >> there is a narrative running through wall street that some don't want this to work well, the vested interests in advising don't direct listing to become common you point out that it won't be common, right? >> likely will not be common i have taken the approach of trust but verify to this exact question that you raise. i can tell you the banking team, they're working with wants this to be a success. are there other skeptics that don't want it to be successful i don't know >> are orders coming in? and they try to match it right now, we have a reference price which is not an opening price. >> it was 132 bucks, that was by and large. today there are orders coming in and there are buy orders and

limit orders, its numbers are in the thousands and not hundreds as of this point and so at this point, all looks normal >> okay. >> tom, thanks >> we'll be watching closely >> it will be a fun day. >> it could take a while and tiring >> we are on all day we'll see you soon >> let's get to phil lebeau, figures are out for march. >> we also have chrysler this is looking to be a march much better than expected. ford, better with an increase of 3.4% and record high transaction prices of over $46,000 of the f series pickup truck, chrysler, listen these numbers, increase of 13.6%, best month ever for jeep sales, up double digits

this is looking like a march where we have stronger than expected sales we'll get gm in a couple of minutes. >> all automakers are ghhi today. thank you, phil, much more on spotify, "squawk on the street" will be right back businesses need that same kind of scalability. cdw can orchestrate a scalable enterprise cloud solution using nutanix technology that will grow with your business, helping you do more, faster. cloud scalability by nutanix. it orchestration by cdw. think has exposure to energyfund infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income.

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media news, david, got it from all fronts >> we'll get to cvs a little bit and viacom you have this news about fox in terms of making new offerings when it comes to sky news and it is independent part of sky and journal reporting that disney would be willing to buy sky news that's apart of sky. so it is going to be a lot more to come on that as well in the coming months. >> meanwhile, disney announced the date for espn plus, april 12th at 499. the legendary names in media continues. >> the fox deal is so important to disney's offering over the top on both, entertainment which we have not heard a lot of

details about and espn related but, there is going to be a lot more coming on espn related over the top offering overtime one would expect given the inclusion potentially of the regional sports network if they'll acquire if and when the fox deal is completed >> watching intel yesterday of the worst single day, fell by 16%. apple would use its own chips in the max and you know the wall street reaction was to support the stock in large part yesterday. chips to apple, that accounts for 4% of total of revenues. they're moving to a data centric business model we'll see how intel does in today's session. you will see there we'll see how the chips in general do >> we discussed tesla a bit, obviously, with their model three production figures and the

statement that they do not need to raise capital beyond standard capital raises this year >> the most important line of that release the most important there is the opening bell and the s&p at the bottom of your screen it is a big board today. it is the epic players a non-profit theater company ringing the bell in celebration of autism awareness month and cents ability, teaching students to manage their financial resources. fiat chrysler, blows out the estimate, jeep sales up 45%. the best month ever for jeep we see softening in some data, largely soft data. ism yesterday was morte --

>> gm for one is up about 3% let's get to phil lebeau with more on gm and those numbers >> the reason gm is higher, listen to these sales numbers. 15.7% increase in sales last month, the expectation was for an increase of 3.6%, truck sales, pickup truck sales up 19%. we talk about how cross overs are hot. gmc, up 39%. buick cross overs 50%. you take these numbers along with chrysler, ford was better than expected. general motors expect industry sales for the month to be 17.2 million the estimate going into today was about 16.7 and 16.8 million. much stronger expected sales for

march. >> guys, back to you >> phil lebeau thank you. >> is phil still there >> before you go, this is the last time we'll hear from gm, is that right >> on a monthly basis. >> they are going to quarterly report it will be interesting and i am sure others will follow them the interesting point of this and steve liesman have talked about this, monthly sales give a good barometer of where consumers are going at not that we we don't want understand exactly how the shape of business is but it will be different. no doubt about that. >> do you think others -- do you think others are going to follow >> why would they give up other information they have to there are months every once in a while where sales are not strong for a variety of factors that's why general motors are saying we are tired of the

lumpyness, we'll do it on a quarterly basis and i expect everybody else to follow >> we saw retail happens happen the course of the several years. is there anybody doing monthly before >> i think a small group but it is gone. >> we have seen companies that used to offer guidance and stop doing that as well and quarterly bases and some of the bigger companies and coke stopped offering guidance but many followed on that it is all in service of the longer term outlook that they would like their investor base to continue to have and avoiding the short term volatility and focus on things on a month to month or quarter to quarter basis. i come back and point out what's the average on the stock by future funds maybe nine months if you are lucky or less than that at this point. >> unh is going to help the dow rise about 100 points.

some of the heat maps yesterday given the overwhelmingly negative breath. the patch of green in some cases was unh yesterday. >> for a long time during the day. you are talking about semiconductor with intel the bounce for this is now up 1.3% right at the open here. it was one of the hardest hit second sto sectors. nvidia were having a lot of problems in driving cars it had strong gains over the course of the year you know people were selling off that sector very hard, we are seeing a nice recovery there along with markets and general higher although not as high as you may think in term of a bounce off of yesterday's damage we'll continue to monitor it still early in terms of educations >> spotify we'll keep our eye on it, it is early in the session and as tom farley told us a moment ago, it is going to take a while for this one to come

about and not what we are typically use to on regular ipos i think the march valuation was about 23.6 or so you got some analysts out with the targets as well, atlanta 160. we'll talk to mkm at 200, guys >> some of the key metrics investors are looking at are multiple sales, roku is at a four times sales and netflix trades in at about nine times and the expectation that spotify will not be at nine time sales critics will say well, unlike netflix, spotify does not control its content and that's a key different realizatiiation with that said, the label is not going anywhere it is a beneficial relationship for both as we see music sales

up for the first time i in -- twelve heres >> it does not control in the con at the present titent in tho pay.npay. netflix did not own the content. it is a very actually decent comparison >> right >> of course, netflix started to get its super size valuation with "house of cards" and everything that follows. >> we don't think he's here. >> no, he's not coming >> he did talk to cvs this morning. take a listen. >> i will look at i when t when opens but my focus is on the long-term. >> i actually did write a nice blog post yesterday where he says normal companies bring bells and spent their days

touting and our focus is not on the initial splash and that's for sure >> they have seen themselves and a lot of their success and their support is, they see themselves of technology company and a software company and not necessarily just as a music distribution company and they have out pace all of their arrivals whether it is pandora or apple music or any other. they are the default for when you want to stream >> we'll watch that. >> dollar is catching a nice bid today. index is the highest since march 21st potentially on this news that the white house is pushing forward for a preliminary deal on nafta a couple of weeks what extensively means some relief for markets that are worried about trades >> trump says he wants to see some sort of re-negotiations in two weeks so you get some sort of a time frame. two weeks coincide with the

proximate start of the easternis season you sort of buff by these daily headlines on tariffs and privacy concerns in the tech sector and etcetera, maybe earnings season and then you got something to trade off and that'll be good for these folks down here. >> despite some people nibbling here, it is not david, everyday that it seems like not helping ge in this case which is hovering around the 13 level >> yeah, the stocks got a boost last week of an investment from buffett and as i said last week, the idea that he's interested and they'll be interested in the term that warren buffett may offer them would not make sense. mr. buffett may have some interest and the financial assets remain at the company but i think the focus for investors in ge has got to be on what is going to be the strategy for the

parts of this company and whether or not as i reported a number of time is largely thought to be the expectations here that they do make moves to separate some of those businesses overtime. not going to happen over night >> facebook by the way is trending lower in today's session, down by a quarter of a percent. it is still a concern here, fang is not as strong as you may think in today's session we do have some gangs. we got alphabet up by less of a percent.net fli percent. netflix and amazon is bouncing nicely >> yes, along with some retailers and to phil's point of some of these autosales coming in we were looking for 16 in change maybe there is an argument that the consumer and we know what consumption did in q-4 maybe people are looking past

some of the seasonal buys of q-1 that we hear about all the time. >> there were concerns of the rising cost, autoloans are expensive for consumers. not only it is tighten on lending but also the rates are higher so people have to pay more that's not showing up of those monthly numbers. >> did you see the new york fed coming out with a competitor -- >> yes >> the sofr hopefully could bring some stability >> good luck with that with what live boards done >> dow is 172. we'll check in with pisani for a moment i think he's in post six as we watch for some prices discovery on spotify bob, good morning. >> we are waiting for spotify to

open a check on the markets, a nice open, 3-1 advancing of declining stocks we have leadership group in technology where it has not been recently tech is opening strong and amazon and netflix and banks are doing well consumer staples are moderately positive i would not say there is strong bidding but at least they're all opened on the positive side, the major ones that you are seeing here semi also generally opening on the upside many of these have dropped 7% or 8% or 9% the last few weeks but they are opening positive. there is a lot of debates of what's going on, some people have different labels of what's going on well, the trump premiums is reversing a little bit i make it very simple. the markets like to hear certain words, the beginning of this quarter, we use certain words

that the markets like to hear, global growth or high earnings or tax cuts, the markets love those kinds of words, it tends to go up when it hears that. we have been using other words that describes activities that's going on words that markets don't like to hear a lot about trade wars and tariffs these are negative trigger words. higher deficits. you get atax tax on amazon then you get other things like tech earnings uncertainty then facebook issues and tesla and valuations around semiconductors and those kind of commentaries are those are not associate with positive momentum. the tone of the discussion of the conversation have shifted the last month or so that's the way to look it and whether or not it continues this way, it is not clear we have focused on technology, i

try to steer the conversation away from that and point out what's been going on overall financials are down everyone more industrials are down 10% along with technology and consumer discretionary is down 10% and then there is the smaller group that are out there, energy never rallied at all even though materials and healthcare and consumer staples and utilities are all down double dingits as well this is a broad base sell-off that we have been seeing there is a final issue that i want to bring up that does not happen very often. that's what i call the s&p 500, the midterm presidential cycle are historically down. they are the only two consecutive quarter that's down in the cycle you can debate why but it is noticeable

second courter down .09% this goes back for decades this is a well studied phenomen phenomenal that may be a little bit of an issue overall for the markets. we'll be back in the next couple of minutes talking to joe mccain, he'll be piloting a lot of the action that we are seeing in spotify, we'll be right back, the dow is up 140 points back to you. >> i will take it from you bob pisani i want to get a report today on cbs and viacom what i can tell you is the following and the key here is not about the actual economics at question, i will get to that in a moment. you can see how stocks are reacting this morning. there has been no formal bid made by cbs.

let's not forget of the ratios and ownerships of both companies for the controlling shareholders is not a concern to a certain extent cbs shareholders reported last week have been pressing management not to pay a premium for viacom all of this important but frankly from what i am hearing from people close to both sides it is not actually going to be the key issue and whether or not these talks succeed in reaching a deal what appears to be a merging and key issue is whether mr. moondez will have the power to appoint the team that he wants as opposed to the wishes of cont l controlling shareholders there is mr. moonves he has a broad range portfolio at the company he's his president he has been by the role of mr.

moonves. it is mr. moonves' desires and believes that when this occurs, he'll make mr. ianniello his number two she has a great deal of confidence in mr. bakish he believes of the plan he put in place has been a good one and is going to lead ultimately or led to significant gains for viacom in terms of what it needs to do to rebound regardless of this deal. she's the controlling shareholder wants to see him in the number two position. moonves says no, if board appoints me, i have the right to

appoint my team and the person i want is joe. between moonves and redstone, the question is going to be does she sacrifice mr. bakish in seeing her desire to have these two companies back together or does she go after moonves. she's the controlling shareholder, would she do that this is the key of negotiations. it is already becoming the key issue from what i understand by the way, iannelli has in his contract of a result of a merger but specifically a $70 million pay out to him if he's not the number two it is also my understanding that

mr. bakish may have some financial arrangement that'll pay him a significant amount, it is $70 million for mr. ianniello. why is it important? the key is delivering on the cost energies that the company conceivably can bring to the table. those are seen by analysts, rbc and they give a broad range here as much as 500 million to $750 million i think we have these, guys. citi expects $600 million in cost savings that's the most important thing in terms of figuring out to deliver them mr. bakish, he has the experience in terms of running international and this company and having run sales ianneillo has no operating

experience he's the guy that wants the job, period if he does not get it. he's not playing ball. ain't, i don't know why i am using that word. >> for emphasis. >> finally i will have this from wells fargo because again and analysts are starting to wake up for it to be a key issue wells fargo analysts, we know investors default of cvs is leading the charge yeah, price is going to be important but expect a lot more as we deal with cbs and viacom all right, let's head to the bond pit right now with rick santelli in chicago. >> good morning, well, we are getting a bit of curve steepening light looking at a two-day of

two-year s looking at two days of tens. we are up three basisthree like i said, steepening light. if you look at the february 1st start of tens, maybe that's the chart to pay attention to. when all that volatility hit in the equity markets which we can say is continuing, the low yield established in the tens was 2.71 we continue to hover in that region, slightly above that, and of course, it was just a couple of weeks after that we started our 22-session run in the 2.80s. what is really important, if you look at things like the s&p or dow with respect to the early february lows, you could associate it with the 200 day moving average but many traders are concentrating solely on the s&p for the fact that which side of that low you close on is significant. 2.71 has a similar issue to it remember, 2.63 was the high

yield last year, but with regard to the close dollar index, carl mentioned, if you look at the intraday we have had a pop. we can attribute it to headlines regarding trade or nafta but keep in mind if you look at the one-week chart we are just kind of going back and slightly extending the top of that one-week intraday trading range. maybe more important is to consider what's going on from march 1st on the dollar index because it's mostly sideways, despite the fact there's been so much attention on the strong yen because the yen is only .136% of the dollar index whereas the euro is close to 58% of the dollar index both the euro and dollar index do look really sideways. let's dig down a little deeper into that dollar yen, shall we let's look at an october 1st of 2013 dollar yen. this is important because the 105 issue on the right is in balance with the one in 2013 on the left and it looks like the dollar index is improving and it

looks like the dollar is turning against the yen. back to you. >> rick, thank you lots to watch today. rick santelli. when we return, spotify's market debut, we will talk with the frontman of multi platinum rock band bush which has more than 1.7 million monthly listeners on spotify. dow up 123 and s&p up ten.

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dow up 130 busy morning let's get to bob pisani who is watching spotify's debut on the floor. >> with citadel securities here, joe mccain, head of execution service, the guy who is making sure everything goes smoothly. it's very unusual, direct listing. very quickly, walk us through what's happening behind us and when might we expect to see this open >> sure. we are obviously very proud to be part of this historic event a lot of what we are doing, a lot of the process that will get filed for the direct listing is not that different than a normal ipo. we have a reference price out there. sue will probably start indicating a price range over time that will narrow

as we triangulate the buy and sell interest from the financial advisers, from brokers on the floor representing institutions, we will narrow that down to a price that looks like right to open at. >> you mentioned a reference price. morgan stanley provided $132 based on last trades that were done do you anticipate wide volatility the issue is substantially all the shares are available to trade, north of 90% of them, and of course, that could mean a lot of volatility out there. what kind of range are you expecting? >> look, it's a good point as we have highlighted a number of times, this is similar to an ipo but different. the company is not selling shares, there's no selling shareholders, there's no underwriting process what that means is that first it will take probably a little longer to find the right price, because we have to wait for all that interest to synthesize itself i would expect it is more volatile once it opens because it takes time for the secondary interest to come into the marketplace for price to stab

li stabilize. >> spotify is not selling any new shares most companies do need to sell new shares is this something new we will see, this direct listing, or is this a one-off specific to spotify? >> i think that's the right question to ask. there is probably a lot of eyeballs on today's deal watching that. i agree this is a deal that meets the specific needs of spotify. it's probably another option for companies that have a very similar profile or similar set of needs how broad that is i think remains to be seen we are watching how today goes >> couple hours before it opens, two, three hours >> i would expect it to be probably, if i had to guess, a couple of hours. really depends how quickly it takes to synthesize the interest >> thanks very much. we will be here waiting for it to open, give you updates. guys, back to you. >> thanks, bob pisani. we want to get to a tweet

from the president on amazon he tweeted this just moments ago. he writes i am right about amazon costing the united states post office massive amounts of money for being their delivery boy. amazon should pay these costs plus and not have them borne by the american taxpayer. many billions of dollars p.o. leaders, post office leaders, don't have a clue, or do they. take a look at the intraday chart on amazon. we have seen it open much higher it's reversed some of those gains but it is still trading higher we will be watching the price action as the session progresses. coming up, more on spotify's public debut keep it here [fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name.

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both the dow and s&p did reclaim their 200 day moving average and the nasdaq once again went green for the year road map begins with carnage in the market but stocks rebounding tech tariffs and trump all rocking the markets. is the worst over or is a bigger correction coming? >> it is spotify's big day the music streaming service set to go public right here at the nyse we'll have a look at the business model that shook up the industry >> why spotify decided to go with direct listing, the first since google's option in 2004. what the move could mean for the future of tech ipos. let's take a look at markets we are trying to make a run for some sort of recovery in today's session but pretty weak gains across the board the dow higher by 95 points, s&p up by 4 1/2 points nasdaq higher by .1% right now this of course after a very volatile start to the week let's bring in chief strategist with jeffrey sam stovall

where are we here? >> testing, trying to decide whether this correction has finally run its course, or whether we have a little bit more to go i don't think we are going to be heading to a bear market because in my opinion the fundamentals have not changed we are not headed for recession. there's the old saying that when the u.s. sneezes, the rest of the world catches cold it's been the other way around at worst, the rest of the world has simply sniffled. that implies we're not looking at a global recession. >> we are on the precipice of getting the administration's proposed tariffs on tech products against china, and then potentially china's response it sounds like, according to what i'm reading in the notes here, that you are concerned about the impact of tariffs, maybe more so than other strategists out there. >> i wouldn't say that i don't know about a lot of other strategists but i'm concerned, i'm watching and i think a lot of our clients are confused about it all. it is a confusing thing because it's something we haven't had to

process for awhile, trade war or increase in tariffs so we are watching it carefully. i think if you listen to what steve mnuchin said when we got the rally last monday after an ugly, ugly week, they want more trade, not less. they want fair trade i think that story is the one the market's trying to latch on to but every time we get this sort of tit for tat, i'm going to put this product, tariff on this product, you will put a tariff on this product, the market sees that as a more distant outcome. i think fundamentally that is the outcome we are shooting for and i think will happen. i don't think this administration wants less trade. i think they want more trade i think that's a net positive for global growth and net positive for the u.s. economy. >> you have to have aith, though, that the methods to getting to more trade will result in more trade do you have faith in that? it could be lia rocky road betwn now and that point in time >> it could very much be a rocky

road i think the real question is whether it's more trade or fair trade. i think that's what the president is trying to do is to come up with some more with fairer trade, from a global growth perspective we still see upward arrows. we have actually seen an improvement in the estimate for u.s. gdp growth to about 3.1% by the end of this year i don't really think the global growth is in question from our perspective. >> david, some of the other concerns that got lost in the shuffle yesterday, qt ramping up to $90 billion a quarter, kind of got lost. the softening ism, prices paid at a seven-year high how much do those count in the wake of the overwhelming trade conversation >> i think the interest rate story, are they going to rise, how much they are going to rise, was the dominant theme that broke the market in february we saw that big run-up in the ten-year note to try to take out 10% and higher and people were calling for 3 1/4, you come back

here to 2 3/4 again, it feels like the rate story has lost some momentum. the fed is a little more warm and fuzzy than we thought or at least jay powell is after his speeches we will get another look at his thoughts at the end of this week i think that fed story, the higher rate story, is playing a little bit second fiddle here to the trade story, at least when it comes to pricing stocks certainly my opinion has been that on the rate side, we're not going to see some sort of large change in the gradual rate moves and they could even become less gradual if the tariff story picks up i think the market's not fully appreciating that the hit to aggregate demand from an increase in trade war activity is probably more worrying to the fed than any inflationary consequences in fact, the fed has been trying to get some extra inflation so oddly enough, a little bit of a trade war could help them in their quest to make up for some of the inflation misses they've had the last four or five years. >> it's worth noting at this

point the nasdaq has gone into the red right now. we have a real turn of the nasdaq 100 including some of the m could oppone components within it amazon, alphabet, apple are all trading lower. you mentioned the markets are trying to test to see where we are in terms of whether or not this will proceed into something worse. what are you watching for? >> looking for valuations. we started this year at the peak looking at a p.e. on s&p 500 at 19 times 2018 results. we are now at 16 1/2 technology was at 20 times we are now at 17 1/2 i almost think about the poseidon adventure where the boat is trying to right itself, the valuations just got out of line and we are trying to get back into line we will probably undershoot before we have decided we have gone far enough. >> amazon has gone red got a tweet from the president once again a few moments ago about the post office and the deal they have with amazon

david, how do you plug this into a model? >> i think the issue with all of this, these have been the leaders. when the leaders start to roll over, a lot of equity investors, old school equity investors say hey, something's up. the thing that's led us for a long time is not leading us anymore. we are either going to search for a new leader or for breadth. i think the market has to figure that out we have deregulation and tax cuts these are big, big stories for a wide swath of the market that have not been fully processed. as we begin to process them, maybe we can let the leaders of the past find some stability or even a little bit of weakness and pass the baton to a market with some more breadth that's actually got tail winds from two wonderful sources, deregulation and lower taxes. the market's got to make that transition and it's a hard one because it's been in this leadership story for many, many

years. i think that's the indigestion we face now. but as a few quarters go by or maybe we can process it quicker, a few months, i think you will see that transition really hopefully stabilize things as your other guest said, there is some risk here that you get that indigestion and we have to go and test some lows before that >> quickly, is there a new leadership group in the making right now? >> well, i think we could be seeing an improvement, as david mentioned, gravitation possibly toward the mid and smaller cap stocks, which actually are expected to show much stronger growth as bob pisani said earlier, we are approaching the more challenging seasonal period for the market on the large cap side, probably playing defense a little bit more, but possibly also looking toward mid and small cap opportunities. >> great analysis. thanks, sam, thanks, david it is spotify's big day.

the music streaming service getting ready to go public in that direct listing here at the new york stock exchange. bob pisani will watch this all morning and maybe into the afternoon. >> i have a feeling we will be ordering lunch here. we are inside the booth at citadel securities we were outside before only cnbc is inside the booth. speaking with joe mecane, who is piloting this very special direct listing we are uniquely situated here, watching the process actually occur. give us a play by play, explain what's happening >> we talked before about the fact there's no formal book buildingipo. you can equate what's happening to that kind of process. we are sort of gauging what interest is out there, letting the financial advisers, morgan stanley, goldman is involved, helping synthesize where the interest is. we are waiting for the interest to come in for the floor brokers on behalf of their clients once we feel we have enough interest in the book, we will start indicating and that should

start another wave of electronic interest >> in the back, you see peter, the designated market maker, we used to call the old specialist, calling out to the crowd indications of where the volume is we don't have an official price, though, range. when do you think we might see that >> we are obviously working towards that point i would expect that in the next half an hour or so, if i had to put a guess, we will start putting prices out there a lot of the conversations are still synthesizing >> in front of us are several traders talking and looking at the screens. they are of course talking electronically with morgan stanley who is helping not build the book but adviser on this explain what they are looking at there's a whole process going on underneath us right now that's not obvious. >> a lot of what they are doing is seeing different price levels, how much interest pairs off, how much is left at different price levels, then we give that feedback back to

interested parties and it's a very iterative process since there is no traditional underwriting process, this is almost the democratization of that process >> the trading community out there with offers, with orders to buy and sell and here are the people inside here who are also working with morgan stanley to essentially build an indication of where the buying interest and selling interest is. it's a very old fashioned, high tech process we will come back very soon, as soon as we get some indications of where this might be opening still weigaiting for that openi indication >> thanks, bob we will come back to you market slipping. dow up 74 but s&p now flirting with a flat line, back below the 200 day. facebook has taken out yesterday's lows when we come back, much more on spotify. we will talk to one of the company's business partners.

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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. big market event today investors awaiting spotify's listing. joining us, sonos has worked

with spotify since 2010, offering 80 streaming services to customers globally and says it's quote, idealogically aligned with spotify patrick spence joins us. good to see you. big day for the company. daniel has been very clear about at least the tone of their mission. how would you describe it? how are they different from any other streaming service? >> i think one of the key things is they have been there at the beginning. they were an early believer in this transition. we have seen in the music industry i think it points a fine point on really the resurgence in the music industry the music industry grew last year as fast as it has, the last day it grew that fast was 1994 spotify has been a key participant in making that happen they are really making sure they are across every platform. they are not looking at one type of phone or one type of speaker. they are really open across a variety of platforms that set them apart from many of

the other services out there >> we have talked a lot this morning about their supposed lack of necessity to raise capital. why do you think private money has flocked to them so aggressively is it about the technology or their timing or even where they're located? >> i think it's their timing in terms of being there early i think they have had a very clear mission from day one and they have been executing very well i think it also reflects the state of what we have seen in the industry in general as we think about spotify, ourselves, we think about uber, airbnb. private markets and the whole dynamic around public and private markets have changed spotify is a great example of that where maybe two decades ago we would have seen them go public much earlier and need to raise capital. i think we are looking at a different type of approach to how you grow, scale and ultimately take a company public >> what's your sense as to how your users stream their music?

are you getting the sense that with spotify's increased user base, that you are also seeing that in terms of the hours streamed on a sonos speaker? >> yeah. i think there's really been -- spotify and the other streaming services have really helped catalyze this move to digital. we have seen that in a big way the other factor is the growth of smart speakers. i think that's helped both streaming services and companies like ourselves, amazon, apple google in terms of really helping the music industry again, get back to growth and really have people enjoy more and more music we have seen a lot of customers adding spotify to their sonos system, adding the other music services i think it's a really interesting time because again, people haven't -- we have never had this many people actually paying for music that's a huge step forward as an industry, as we think about the music industry, and i think we are really in the early days daniel called it the second inning i really think we are in the

early days of this happening but it's great to see the inflection point of the industry moving back to growth and doing that two years in a row, which is great. >> hours spent listening also continues to go up, or time spent as well. i'm curious from your vantage point, do you see spotify being able to continue to lead, whether it be amazon or apple or any other well-funded competitors out there, do you see them continuing to cement their leadership >> i think there's va ririety of different services spotify have shown they can continue to grow and lead the way. they competed for awhile now and being able to grow it and they have great things like discover weekly, new music fridays, so they have introduced some things and you have really seen growth in listening to these curated experiences they are providing the other players like apple, amazon and google, pandora, are bringing different types of

experiences to consumers i definitely don't think it's kind of a one size fits all. i think there's room for everybody. i think the good news is as more and more companies have jumped into this, we have seen the music industry again really rise up, thanks to all of these companies being in the game, and then really, the introduction of smart speakers, something we have let in. >> as far as the percentage of subs who pay, 45% at year end were paying subs, they still have a very large ad supported tier that's up from 39 in the year earlier. how much can that high get, do you think? >> trying to find the right point, this is something the industry has been working on what's the right point to be able to get all those people to move to a paying subscription is a really important thing that i think the industry will figure out over the next few years as we go through it i think ultimately, we can get most of those people paying. there will always be some advertising based business radio has been around for a long time that's been an advertising based

business, as we think about that, so i don't think it will go away. i think there's a great chance to really convert a lot of those users into paying subscribers over the long term it's finding the right price points and making sure it's hitting the sweet spot where we are getting everybody in the market to pay for music. >> patrick, lastly, switching gears just a bit, your company was one of the first to announce it would withhold and suspend advertising on facebook after the facebook cambridge analytica story first broke. you did it for a week. are you back on facebook what do you think that accomplished >> yeah. you know, we have had some -- we thought it was important to take a stand and say this is something that we think needs to change facebook responded very well to that we have had constructive conversations with them. i think facebook and the other social media networks are here to stay so it is something we are working with to make sure we are both living up to the kind of privacy commitments we expect as we look at marketing together so it is something that we are

investing in for the long term, for sure >> as far as spotify goes, big day for streaming, big day for the valley and for wall street good to have your insight. thanks for your time >> thanks, carl. appreciate it. >> ceo of sonos. when we come back, david has new details on cbs' offer for viacom gains are eroding. facebook removed from the u.s. one list you know, i used to be good at this. then you turn 40 and everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session

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time for etf spotlight dom chu taking a look at some of the etf with the most exposure to amazon. >> many traders and investors are exposed to the effects of amazon stock simply because of the hefty weighting it has on the broader indices. if you hold more industry and sector-specific funds, the

amazon influence could be a lot higher for example, the spydr discretionary index, amazon makes up about 20% of that fund alone, by far the biggest weighting. just for reference, the number two biggest holding is home depot with a 7% weighting. same story with the ticker bcr, 17% weighting there. many pros are aware of how heavily weighted amazon is in these funds and choose to use them anyway as a way to get overweight exposure to a particular stock like amazon you might wonder if many of these retail etfs are used to express retail industry views or simply a view on amazon.com. back to you. >> i will take it, thank you do want to get later in the show perhaps to more on cbs/viacom. for now, want to update people

on another situation that's been out there for some time. pfizer's continued pursuit of a sale of its consumer unit. this unit that includes things like advil, centrum, emergen-c the unit itself has been for sale for months. in fact, a process has been under way that has been fairly well reported on most recently, glaxosmithkline dropped out as a potential bidder as had previous to that, another company. i can tell you where things stand. proctor & gamble remains the one potential bidder for the unit. however, based on conversations with people close to the situation, it doesn't appear likely they will reach a deal because they are far apart on price. pfizer had embarked on the sale, potential sale of its consumer unit with the hope it would fetch as much as $20 billion but sources familiar with the

situation indicate that p & g is hovering closer to a $15 billion or $16 billion number. the gap there, too large to bridge at least at present therefore, pfizer may not go ahead and obviously do a sale. what else would be in the cards for the company? it is possible that it might pursue a joint venture of some kind with not p & g but the two other bidders, although that is early in the process what we do know as well is an expectation on the pfizer side that they will try to reach some sort of conclusion in the not too distant future given this process has been ongoing for quite some time. the hope is that in the next few weeks they will reach a conclusion of some kind, whether it is seems unlikely at this point given the price of sale, whether it is some sort of jv or a decision by pfizer to keep the unit as its own. did want to offer that update.

back to you. >> thanks. we will toss it to contessa brewer >> here's what's happening russian president vladimir putin is arriving in turkey for his first foreign visit since his re-election last month he's scheduled to meet with r resep erdogan. on wednesday they will join president rouhani to discuss syria. a serious test for president macron's resolve to modernize the french economy more than half of the french view the rail strikes as unjustified. day two of jury selection in the bill cosby retrial, the judge delivering two major victories to the defense he agreed to allow a woman who says andrea constand was out for money. and then the jury can hear the amount of settlement she received. villanova students flooded

the campus to celebrate their team's win over michigan to win college basketball's big championship game. in anticipation the university police greased utility poles that didn't discourage fans from climbing them. there were two arrests nothing says we are so proud of our team like climbing a greased pole that's the cnbc update >> we are happy for philly thank you. when we come back, we are awaiting spotify's direct listing. music legend gene simmons will join us. kiss has over two million followers on the streaming music site we will discuss what the industry means for artists and today. you know what's awesome? gig-speed internet.

you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party.

welcome back to "squawk on the street." market obviously trying to hold on to gains. dow session high up 178, did fade fairly quickly but trying to hold. the nasdaq once again went negative for the year. watching spotify as well getting our first indications at post six of 145 to 155 going to be a long process, we are told, as they list directly here at the nyse we will watch what happens >> lot of volatility from here until we get an open spotify set to make that market debut here at some point in the not too distant future joining us for more on the company, on streaming, on the state of the music industry, is kiss lead singer and bass guitarist gene simmons he is also now the chief evangelist offer of a canadian cannabis company, invictus good to have you people say spotify helped the music industry, sales are back

up for the first time in more than a decade because people are streaming and there are royalties starting to go to artists. do you see it as a good thing? >> well, look, it's smoke and mirrors. the reality is, by the way, spotify is a terrific company. management is solid, the financials it's worth $25 billion or so the swedes figured it out. legislation is our key new artists are getting slaughtered because they are getting micropennies out of a dollar which is why in the interest of full disclosure and as a matter of public record, a short time ago, the estates of neil young and tom petty and lots of other, the doors, sued spotify for $1.2 billion, something like that, because in their opinion, they weren't getting paid what they should be now, remember the idea of streaming and technology is wonderful. we all want to push buttons and get everything, instant gratification, but without artists, music and performers,

you're streaming air so there's a big smoke -- oh, the music industry is healthy and happy. that's not true. that's why record companies are folding from within because people have stopped paying for music and you will get what you pay for. >> well, i pay $14.99 for my family to have a subject skriepgs subscription to spotify. is your problem -- >> hold on >> -- or the labels haven't negotiated a good enough deal with spotify >> well, labels of course see the large shadow of streaming. i'm aware that universal and other labels also invested in spotify. my question is not labels because they make nothing. that's the truck that delivers the goods. the farmer that makes the fruit and the produce that goes to the market, without produce and fruit, you got nothing so the artists are the ones that are getting short-changed.

everybody is subscribes to spotify, that's great, amazon, youtube, that's great. ad revenue and the labels are negotiating, blah, blah, blah, blah, blah at the end of the day the artists have gotten the rug pulled out from under them and i'm shocked, i'm shocked that legislators in washington, d.c. haven't taken the entire industry to task and basically said wait a minute, you put one of my songs on the air, where's my slice of the pie? record companies are making a deal, spotify is doing fine. by the way, none of this has anything to do right here, right now, with where the market is at 23,000 look, i rang the new york stock exchange bell for the first time 2008 the dow then was under 8,000 we're now ten years on -- >> i remember that >> thank you notice how good-looking i was then the dow is at 23,600, this is a good time to buy

everybody is going oh, woe is me you either believe it's going to go up or not >> are you buying now, gene? are you buying did you buy the dip? >> i buy are you talking about spotify specifically >> spotify, stocks in general. >> i buy stuff all the time. i also sell stuff. i'm not a short guy. i believe in warren buffett's ethos of buy what you know, stay the long haul because the dow will go up in my lifetime, the dow will break 30,000 it might happen in under ten years, it might happen in five years. economies are improving around the world. we are all getting smarter china and america and russia are deciding look, we have our differences in stuff but at the end of the day, the dollar rules. everybody wants to make a buck that's more important than politics there won't be another war all kim and north korea cares about is that you're not going

to remove him from power he just wants his billions yes? >> let me pull you back to spotify before we get into geopolitics. because a big part of spotify's pitch is about timed exclusives and albums with video components that you can't get anywhere else when kiss has something special to offer, how do you decide whether to go through spotify or apple or amazon or some place else >> well, we are very fortunate because we have something like 13 million kiss fans on facebook and all that so we have a very, very dedicated following we have lots of options. the problem is new bands have almost no options. they give away their music for free and hope to make -- it's really, really a sad thing for new artists and my heart goes out to them. in terms of spotify, i was a little surprised at the selling price. it's hovering around, i don't know, 140, it might go to 150. i thought it was going to be lower than 132 or so

so i'm being very cautious i'm interested in buying stuff that i may not necessarily use the stock may go up. look, i don't like that spotify isn't doing the showboat stuff of going to the new york stock exchange the way the powerful attractive gene simmons did in 2008 and take that photo people want to do that but management of spotify seems to have another point of view, which is just go direct listing and see what happens that's their point of view and they are welcome to it i like show business i like doing it, saying ta-da! >> yeah. we know that you are gene simmons from kiss, for god's sakes. i want to come back to this issue, we had an artist with us yesterday also the argument of course, the artists are not being fairly compensated for their work i'm just trying to understand how that would look. you have these platforms out there, whether it be apple or spotify or any of the others out there, they are the ones who distribute the music now

it would seem to me it's better than people stealing your music, which went on for years certainly when we had napster and the like what would a system look like that you think would be fair to the artists? >> good fences make good neighbors. legislators aren't qualified to pass laws. they have no idea what a song is, what publishing royalty is, what sync fees are and all this kind of stuff. as an artist yourself, because i know you sing in the shower, one of your wonderful shower songs, you own it, you copyright it, it's your creation you think it should be -- and the industry thinks it should be worth, i don't know, ten cents, 50 cents, $1, whatever you agree on, and in the old days you bought one song for 79 to $1.50. one song, on the other side you would get a b side, and the record industries were thriving, artists were producing, things like the beatles and elvis and

hendrix and the rolling stones, main even kiss today, name the new beatles. there ain't nothing going on because there's no structural, no integrity to that basement and the first floor. it's just the wild west. spotify is getting rich and god bless them for it. record companies are making money. where's the moneyfor the peopl that make it all possible? the artist i'm not talking about me i'm a rich son of a b and all that stuff talking about new artists. there's going to be no beatles, no rolling stones, nothing because they won't be able to quit their day job to devote full-time to the art i don't buy this smoke and mirrors argument but that doesn't mean that you shouldn't buy spotify. i'm being cautious, personally initially, because i know the financials of the company, i think the management is solid. i'm surprised a little bit that, you know, within i think the original investors in the company are deciding where the price should be and maybe they are taking the long haul i know management is thinking we

don't need to show 30%, let's just kind of go in there quietly and have it do this instead of just shoot up. that's an interesting point of view >> which can end up to be a good strategy i do want to ask you about your new position at invictus, the chief evangelist officer explain what that means? >> it's a canadian cannabis company. it's legal there i'm a straight guy i have never had a joint in my hand, never put anything up my nose that's my philosophy it's strictly a financial play for me so they hired me and full disclosure, i got paid $2.5 million and i'm proud to say i have $10 million in stock in the company. i'm bullish on invictus. i rang the bell at the toronto stock exchange a few days ago. the laws are changing around the world. i urge everybody to do their own research and find out what scientists and doctors are saying about cannabis. i was shocked. i'm not here to tug on anybody's

shirt sleeves to try to convince them it's good or bad for you, it's cool for society. you figure it out. but me, even though i don't personally use, i'm in it full-time because i believe in the idea invict invictus-md.com. >> you never smoked pot? >> i have never been high or drunk knowingly in my life no >> okay. that's news, too gene, thank you for all your insight this morning appreciate it. gene simmons >> it's the knowingly that sort of gets your attention there as we go to break, take a look at shares of intel, falling sharply yesterday on reports that apple could swap out intel chips from its max in favor of its own processors obviously intel repairing a little bit today dow up 102, still looking at 145, 155 ckft areak ny will save lives. mr. stevens? this is your new name.

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there you go. you still need a pass. ♪ ♪ market higher after yesterday's sell-off ubs director of floor operations art cashin is with us at post nine to talk about yesterday to some degree, then how the morning's gone so far. you impressed? >> well, a little bit of a turn-around tuesday. if you notice the initial rally faded and the s&p went slightly negative after the president sent out a tweet now, i think that underscores a belief down here that when peter navarro went on cnbc yesterday afternoon, it demonstrated a very clear thing and that is the sell-off had gotten the white house's attention. he went on to try and correct the market and say that the market was misreading the economy, et cetera, when in fact

what they were reacting to was the negatives in the techs, particularly the president tweeting about amazon whand whatnot. the thinking was maybe the president would slow down and stop tweeting so when we got the first tweet this morning, everybody said oh, no, we are back in the same spot. they rolled over, the s&p went negative no second shoe fell so now we are trying to rebuild the rally here we went from being oversold to getting close to mildly overbought on the rebound. >> sounds like you think there's still a trump put in the market. but they are actually watching once the market gets too rocky they might come out and trot somebody out there from the administration to say no, no, hold on, things are actually okay, or that maybe they will even dial things back in terms of what they want to do. >> that was the hope okay we did get one tweet but we

didn't get a barrage of them it's not a gatling gun we will wait and see how it goes along. i think the markets were getting concerned. look at what helped put that sell-off together. china came out with a list of new tariffs, many of which were directed at products that came from the states and areas that trump won. >> the tyson effect? >> yeah. i think they were a little careful at looking at that i think they wanted to make sure the president [ inaudible ] and they may have gotten it. you had that, you had the amazon thing with the president, you had tesla and the interesting thing is there are no small amount of tesla skeptics around the wall street watering holes they have believed that when they have a short come, when the production doesn't hit the

levels and whatever, that the company has gotten away with changing the topic because when that news comes out, before everybody can react, we start talking about going to mars. so you change the topic and things drifted. drifted. this time the ntsb went after them for their investigation and the comments they made after so that looked a little bit more sincere. but this is definitely a turn around tuesday mildly oversold. the key here is to hold on to the rally to some degree it was dangerous to see the rollover going negative. if they had gone seriously negative, it could have doomed the week >> art, thanks >> my pleasure >> we'll see you soon. >> when we come back, more on spotify's music streaming "sawgo le.iv quk on the street" will be right back kages. and it's also a story about people and while we make more e-commerce deliveries to homes than anyone else in the country,

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stocks are catching a bid just off the best levels of the day in mid morning trade consumer discretionary stocks a big lagger yesterday, one of the big leaders today as the market tries to hold on to the gains. shares of netflix, chipoltle

after larger losses yesterday. keep an eye on auto related stocks like goodyear and autozone and amazon.com which is largely higher today i send it back down to you guys. >> thank you very much let's get to the cme group in chicago. rick santelli has the santelli exchange hi, rick >> good morning, melissa you know, everybody, of course, is fairly preoccupied with the volatility since february on the equity and the season. it's not just domestic it's global. and rightly so we've had had an unusual run in the markets from the november 16th election to what looked like an unstoppable meltup that was underscored or underpinned by volatility management trades that all seem to end in february but now we have to get our gps back is it over is this a correction or the big one? look at a one-year chart of the s&p 500 as i'm speaking. all the indices aren't behaving the same that is not unusual in volatile times. you see that chart on your

screen let's go to the white board. this is the same one year chart of the s&p 500 if this was to be the nasdaq, you would see that right side was a little bit higher with respect to the low that we made in february. if you look at the dow jones industrial average, it's exactly the opposite the right side is a little bit lower. i'd pick the s&p 500 for a couple of reasons. first of all, with regard to the bottoms, it's very important to identify the bottom. and it's also important to acknowledge that many people look at the 200-day moving average which is my dotted line and for the s&p 500, it's on close to where we're trade right now. but here's the point here's the technical trick now, of course, everybody has their simple trend lines but to really understand where the market is going, i like to do and i talked about it a couple times, high, low, so take any key. high, any key low and any time frame and you find the connection and then you take the perpendicular and draw a mid point line and extend it out kind of magical, isn't it?

many times you find the lines that are almost or close to parallel with plajmajor trend l. but you can keep doing these and follow the market along. and what ends up happening is you end up with quite a few chann channels that are very inlightening i say on a weekly closing basis, 2581, no matter how many lines you have is not going to be a good thing it doesn't only work for the equity markets boon yields are surprising in the weakness since they came close to 80 basis points we're hovering around 50 basis points this one works especially well on here as well. you see that now granted, that isn't quite perfect. we're not quite there yet. but it really is given many traders that i deal with that use some of these tricks as we call them an idea for where the market might want to gravitate to and sometimes if they start to move away from the line, of course, and move higher, you can make a new one you can continue to do this. and over time what you'll find is it really does just kind of

point to in the right direction. carl, back to you. >> all right rick, thank you very much. rick santelli. when we come back, we're awaiting spotify's debut at the nyse we'll talk to the front man of rock band bush which has more than 1.7 million monthly spotify viroda wl gan ssleiljoin us.

good morning it is 5:00 p.m. at spotify headquarters in sweden it's 11:00 a.m. on wall street and "squawk alley" is live. good tuesday morning welcome to "squawk alley." i'm carl quintanilla with morgan brennan and david faber. we await spotify dow is up 218. the s&p 500 up almost 18