good morning it is 8:00 a.m. at oracle headquarters in redwood shores, california 11:00 a.m. on wall street. and "squawk alley" is live ♪ good morning i am carl quintanilla with morgan brennan and jon fortt full team market coverage today as "squawk alley" begins the major indexes rally back after the dow posted 2% losses s&p on pace for the worst december since the 1930s, while

the nasdaq is looking to avoid the fourth negative session in a row. bob pisani, dom chu, seema mody are watching things for today's trade. josh lipton is about to speak with oracle ceo mark hurd in a few moments, following the company's earnings surge first up, we start with the market rally i know you have been net constructive here. did the weakness monday and rally today, is it giving you any kind of all clear? >> i think that would come sometime in early 2019 the reason is we need resolution on both the rates front and trade front, and maybe the fed wants to soothe things down, but on the trade front there's no clarity. until we have that, the up trend in the market cannot be very

sustainable. >> has the market graduated from trade political concerns to overall slowdown concerns? or would clarity on the trade front be enough? >> i think that's absolutely true i think the market sentiment today is meaningfully different than september and october, and the expectation that we are facing recession, which is being built in in our view is just not correct. i think in the new year as we get closer to a more robust economic picture, i think that will fade as well. >> jim, do you agree that the markets are hostage to rates and trade right now? how did that happen? it seems like for a long time the opposite was the case, the market was ignoring overseas issues, including trade tensions, and rates were more seen as a response to the market

surge. >> so look, there's no inflation. we've got earnings growth maybe slowing, but not no growth slow growth, not no growth economy here at home, rock solid fundamentals like stepping stones across a rushing river, event driven news. the problem is the river is rising and it is not just trade talk or trade war concerns, not just interest rate concerns, it is also concerns about slowing growth in china, in japan, in germany, across the board in europe where we know that we cannot stand-alone as a strong economy here if the global economy whose fed equivalent have done a poor job in terms of using buy back options to try to restimulate growth begin to falter more than they currently are, so i don't think we see an all clear anytime soon i love the optimism ofsomewher early in 2019, but i think investors need to steel themselves for a difficult, volatile ride that could be

significantly longer than a quarter, especially given that in 2019 we're going to see the presidential election campaign really begin to ramp up, and it is going to be as it has been this year negative worrying, concernful, at least on the surface. >> what i hear when you both is more uncertainty, more volatility going into 2019, which begs the question, how should investors be positioned >> well, i think investors in our view should be using the current weakness to add to their exposure in equities and global equities, international equities, emerging market equities growth trend, yes, is slowing down, no doubt about that, but we're still -- the global growth rate will be north of 3% in 2019 that's not an environment for a significant draw down in the market i think growth slowing but better policy outcome probably leads to a better market outcome in 2019 than it did in 2018.

>> jim, the same question to you. how should investors be positioned >> we like battleship, balance sheet blue chip stocks we like the low price stock again, good global row risk profile. we like health care. low risk, high return in volatile environments will favor the health care sector we also like the bond side of the equation investors should look to find a good active low cost manager, fidelity total bond would be a good example walk a balanced line for a little while or long while, maybe through 2019, and you'll get across the river of event driven news. that is unless and until we see something else materialize that could have negative impact on what is a market we think is prone to investor psychology more than focused on the fundamentals.

>> a couple of things. one is word just now crossing the tape that buy backs for q3 surpass 200 billion. that would be the first time ever for q3. when you get some positive news like that, oil down almost 230, below 48 is this a year end positioning thing? is this worries about oversupply or demand going into '19 >> i think it is a market reaction to expectations of global growth slowing down to trend growth rate. it is that more than anything else having said that, i think because growth is still going to be robust, the outlook for oil prices and for the rest of the market for that matter is better in 2019. the issues with respect to growth are real, but they're not so bad that the market has to

get into the funk that it has been so far in november and december >> jim, going back to you talked about what you like in the market, what about tech, and i'm not talking about the usual suspects, faang names, apple, microsoft, i'm curious about smaller mid size tech names that perhaps haven't gotten as much attention and love in the market the past several months. are there any sub sectors in tech that you still find interesting? >> we think there definitely are, there are names there the best way for investors to approach is through active management from prime cap or fidelity focus stock managers with track records in terms of stock selection, particular regard to technology, biotechnology sector, stand the test of time, not just bull market times but also bear market times >> we have a lot to handle getting into tomorrow's rate decision at the least. thanks, guys

see you soon >> thank you shares of oracle are up, highs of the morning delivering an earnings beat after the bell yesterday, hovering around the flat line now. investors encouraged by signs of strength in the company's largest segment, its cloud computing business josh lipton is with us he is joined on the phone exclusively by the oracle ceo mark hurd. josh >> morgan, thank you mark, thank you for taking time to chat. >> sure, josh, how are you >> pretty good let's start with the guidance mark which implies top line acceleration the second half what gives you guys, mark, the confidence to make that forecast >> well, as we said last night, first as you know a majority of our revenue is recurring in nature, so we have got pretty good visibility as we go forward and we had a very strong bookings quarter in addition i would say, josh, in

applications it was the strongest quarter in many respects we really ever had. in the context of just not only gross bookings but without getting too technical about it, as you look at things that fall off, customers that runoff a contract, net bookings was the strongest we ever had in our history, except for one of our q4s, so the combination of that, plus recurring nature of revenue gives us strong confidence in the accelerating nature of the revenue performance. >> mark, you mentioned i want to drill into applications, led the quarter, strongest ever. digging specifically into erp, and the opportunity you see there, that came a lot on the call last night, software used to manage financials and broader business, you do have competition there, workday, sap. how do you feel you stack up against those rivals now >> we think we're way ahead

would be an understatement as relates, the applications market is about $125 billion, about two-thirds of that is in the back office defined as erp and hr, and that mashlgt as it moves from the traditional older legacy on premise to sass, the market grows, gets bigger because all of the servers, storage, other software involved moves into the applications market and away from the infrastructure market, so the market will get substantively bigger, and in sass erp which you asked about, we are by every dimension, whether you look at analyst report or sheer numbers of customers, bookings, and far and away the leader in that market, and all our growth

rates, whether they be -- any of the applications, they're as good as we have seen it. it is exciting for us. >> mark, take a step back, a broader question, as morgan pointed out, you're off the highs, and maybe some investors still have questions about top line growth because end of the day, you're still calling for single digits revenue growth in fiscal '19, 3% constant currency maybe walk us through how you'll grow the company meaningfully and how you go to the cloud business more strongly. >> right it is interesting, josh, as you know, that's how the company adds up, but nothing the company grows at the rates we report in totality just to give an example, the fusion applications revenue grew 34% in the quarter fusion erp, 44%. net sweep grew 25% in the

quarter, none of those sound like three you have a bunch of numbers growing fast and businesses that we move out of in decline, and the average is the three the businesses that are growing become a bigger% of total. that's why you see revenue acceleration that you see going through the year so it is a story of mix. and what we have done, we decided several years ago as you know that the best thing for us to do is re-invent ourselves, not let somebody re-invent us on their agenda so we've done everything to go towards if you will using the hockey example, where the puck is going as opposed to where it's been. that's what we've done the past several years, reinvest in r and d, in sales, and that's why you see undisputed leadership, sass erp and other examples we talked about a couple minutes ago >> also want to touch on

database business. larry ellison said on the call no way somebody is going to move from oracle to amazon, but we know amazon andy jasse says they're doing it is that a test case, if amazon does it, do others follow you think? >> listen, again, larry of course was very timid in his comments, and i'm being sarcastic, last night. i think the point he was trying to make is technical differentiation is three if somebody spends years trying to do that work, his point is they can't even do it, let alone somebody that's not doing that as their life's work where their only focus and talking about it in the public. i think the fact -- you have to ask yourself the question, josh, of why and the problem with trying to replace something like the oracle database is there's years

and years of programming and capability and features that are available not only the capabilities with autonomous database forget trying to replace something ten years old, let's talk about what's available now. this is really a self driving database that patches itself sometimes you go into what patching means, but the fact security wise, instead of waiting a year for patches throughout, you can get them done immediately everything self tunes, self optimizes, you get materially more performance this is the game changing database release, maybe the best release in the history of oracle this applications momentum that we've got in addition to the greatest database release in the history of oracle. >> mark, thank you so much for

your time this morning we appreciate it >> josh, thank you >> guys, i'll send it back to you in new york. >> thank you, josh lipton with oracle's mark hurd. some news out of washington on the potential for a government shutdown. eamon javers is at the white house with more. >> reporter: two pieces of news breaking in the past couple minutes. "the washington post" is now reporting that president trump agreed to shut down his personal charity after they say allegations he used it for personal and political benefit we have a tweet from new york state ag office, the state attorney general in new york, we secured a stipulation requiring the trump foundation to dissolve under judicial supervision with our review of recipient charities. the foundation functioned as little more than a checkbook to serve mr. trump's interests. our lawsuit remains on-going so the president according to "the washington post" agreeing to shut down the trump

foundation we'll ask the white house for their comment on that in the next couple of minutes earlier, sarah sanders was on fox news, saying the president may be willing to back off his demand for $5 billion in wall fund before a government shutdown date. he may be able to accept the offer on the table from democrats and republicans on capitol hill if she said they can match it with additional funding from other sources, not clear what other sources she's talking about, sanders saying that the trump administration does not want to shut the government down that's being seen in washington, guys, as a signal that the president might be willing to back off that $5 billion demand for wall funding nearly entirely, as long as the white house can get something to declare victory on between now and end of the week. back to you. >> thank you

perhaps a reversal of what the president was saying a few days ago. as we head to break, take a look at the big board. the dow rallying, up 176 points after yesterday's 500 point drop s&p is up a half percent as well what the ceos are saying about the volatility next. and later, maximum levchin is with us big show "squawk alley. don't go anywhere. this music is supposed to relax me, though. ♪ maybe you'd mellow out a bit if you got geico to help you with your renters insurance. oh, geico helps with renters insurance? good to know. yeah, and they could save you a lot of money. wow, suddenly i feel so relieved. you guys are fired. get to know geico and see how much you could save on renters insurance.

welcome back to "squawk alley. many looking at tea leaves, pointing investors to negativity what does the data say, is the best really behind us or is now an opportunity to buy risk assets on sale dom chu has a look at investor confidence crush >> traders and investors are working through the confidence crunch markets have gone from an accentuate the positive, eliminate the negative mode to more accentuate the negative, eliminate the positive mode, and that erosion in confidence is arguably driven by trends in economic survey data that have been trending lower. look at the fed survey from today. nearly a quarter respondents expect recession in the next 12 months check out chief executive group ceo confidence survey that posted the sharpest month over month drop in outlook for business conditions this year, and hit the lowest level since before the 2016 presidential

election a big question for investors and maybe those on main street as well is when will that actual hard albeit backward looking economic data like gdp and nonfarm payroll and consumer spending and others reflect that more coincidence and forward looking sentiment indicator out there. those closer to housing industry have been taking note for quite some time. this morning's housing data starts with the latest to show tangible, observable slowdown hinted at in the housing sentiment data for months at this point for now hard economic points are supporting the thesis that the american economy is doing better than peers around the world. unemployment, multi decade lows, gdp not booming but growing, many indicators for services and manufacturing signaling expansion. the question is whether hard economic data starts to catch up to the slowing confidence numbers or vice versa, carl. remember, with consumer confidence, we're still near high levels.

we'll see if consumer stocks in the downturn foretell anything about consumer sentiment when we come back, paypal max levchin is with us first, look at the best performing names so far in the session. boeing, dupont, nike leading the way. oil off 260 after closing below 50 for the first time since august of '17. and our unlimited plan really takes things to the next level with your choice of the best in tv, movies, or music. it's the perfect holiday upgrade. i know what i'm asking santa for this year. you still write letters to santa? no. please. i send him emails. can i get his email address? oh... i don't feel comfortable sharing it. get the iphone 10 s and our unlimited plan with your choice of the best in tv, movies, or music. more for your thing. that's our thing.

welcome back big tech, social media continue to be in the cross hairs this time, president trump sounding off on social media companies in a tweet calling out facebook, twitter, google, accusing them of being biased to democrats and blocking conservative accounts. it follows a report by the senate intelligence community saying facebook and instagram was the most active platform for russian linked accounts with

misinformation in the 2016 election joining us, paypal co-founder, current ceo of affirm, max levchin. good morning >> good morning. you are a long time silicon valley founder, resident, observer how well do the powers that be in tech have their feet under them, when it comes to responding to political pressure, to this new specter, threat of interference from overseas is it getting better there or is it wave after wave >> i think safe to say we're definitely in a brand new world. there's vulnerabilities in groups we're seeing probably the beginning of privacy concerns and various forms of concern

that come out of that. we should be ready in silicon valley for increased attention from the government, from national security, to regulators i would say we were caught flat footed, there's a lot of attention being paid at this point. >> have you thought about security for a long time, encryption was part of what got you interested in starting paypal i wonder howie vents of the past year -- how events of the past year confirm how you talk about customer data or the way you talk to startups about their security efforts. >> the one thing that hasn't changed is my attitude towards security and the bible thumping that i did 20 years ago at paypal, how the only thing we have to lose is customer privacy and data their information is the most

important thing to protect that was true for the old job, and true and extra true today. every time i have a chance, first things first, protect the data >> in light of that you've seen tech stocks sell off as dramatically as we have the past couple of months and the volatility around that, have investors been overreacting to headline risks or do you think their concerns are well placed >> actually i happen to think they are overreacting. it is hard to blame folks for taking money out of the market when tech provided an amazing opportunity for returns such a long time. reality is tech is where the innovation is, it is still where the returns are, and i generally think once the cooler heads prevail, you'll see more capital pouring into tech stocks because that is where the expansion resides. >> certainly as we're in the holiday season, we're seeing a lot of consumer behavior shift

toward tech, whether it is omni channel, people using phones in store, picking up in store affirm is very much in the business of enabling that kind of commerce. what kind of consumer behaviors are you seeing this season compared to years past, any slowdown, difference in budgeting and responsibility people are taking? >> actually exactly what gives me the optimism. at affirm we primarily lend money at the point of sale for folks as they decide to buy something that is a carefully considered purchase, we provide the simplest, most thoughtful alternative to a credit card, and what we have seen in volume of this cyber monday and surrounding days is it more than tripled compared to last year, while the overall volume of sales we witnessed in 2018 so far has little more than

doubled. what we're seeing is the u.s. consumer is still shopping strongly, consumer purchasing is rising, people are still headed into the holidays with elevated spirits. generally i feel the u.s. consumer is strong people have confidence but the fact that they're buying on credit, you can think of that as well. maybe seeing that recession, some number of quarters out in the future >> max, do you see consumers approaching loans and lending with the same behavior as previously, especially when you've got arising rate environment? -- a rising rate environment >> i'm not sure the consumers fully adjust behavior based on fed rate announcements, but we do see in the last decade since the crash, since the '08 financial catastrophe, people have adjusted their attitude towards buying on credit there's a massive deleveraging that took place in early days after the crash, and we're still

in a very different world. people are buying more thoughtfully, people start to understand that deferred interest and promotional rates and really fine print that you're not supposed to read are recipes for disaster that's what pushed people into personal financial collapse. there's a major shift towards preferring debit cards instead of credit cards. affirm is a product that was born from the notion of mel in yals staying out of the credit there's a fair amount of change happening. i think that's the most interesting place to be in finance and tech is in credit. >> people are continuing to use a lot of it, max levchin, founder of affirm. thanks for being with us >> thank you. let's get to sue herera for a news update. >> good morning, morgan. good morning, everyone here is what's happening at this hour president trump continuing to pressure fed chief jerome powell

and the fed as the central bank starts a two day policy meeting. the president warned board members not to make what he called yet another mistake and feel the market by not raising interest rates jerome adams declaring cigarette use with teens an epidemic the number of high school students reported being e cigarette users jumped 78% between 2017 and 2018. powerful, dangerous, huge waves are pounding much of the northern california coast. forecasters warn there's continuing risk of large breaking waves overtipping rocks and jetties, and strong rip currents and coastal flooding could occur in low lying areas so don't go near that. and the bodies of two chicago police officers were n honored with a procession. the remains of the officers were

flanked by dozens of police cruisers on the way to the medical examiner they were fatally struck by a train last night responding to a call you are up to date that's the news update this hour back downtown to "squawk alley." carl, i'll send it back to you >> thank you very much. european markets are just closing. seema mody with today's action as europe tips into the red. >> that's right. mixed, moving to the down side ahead of tomorrow's fed reserve meeting. the question for european investors is if the fed and the ecb are on a similar page that could raise concerns around global tightening as we head into the new year. the other concern, oil prices, 15 month low on supply concerns from russia. that resulted in oil majors moving to the down side. royal dutch, bp and others

royal dutch shell, a report says they're in talks and has them wondering if the stress could lead to more consolidation in 2019 perhaps still too early to say. as we dissect the hard versus soft data, business confidence in the lowest level last month in two years. ifo index climate in index full and factory sentiment as expectations are negative first time since 2016. that sentiment less than a week after the german pmi hit a three month low, whether it is related to softer demand from china is what economists are trying to figure out meanwhile, politics in italy is interesting. italian government officials

moving closer to putting a long standoff with european union to an end concessions they made included in the budget plan could hit its economy, which is already expected to grow slower in 2019. rome lowering the forecast from 1.5 to 1%. eu due to make decision on the budget proposal tomorrow we'll be waiting for that. that's all for now back to you. >> seema mody, thank you a check where we stand across major averages in the u.s. they're in the green off highs of the session dow up 236 points. s&p up six-tenths percent, nasdaq is higher by 49 all eyes turn to the fed for a two day meeting. deeper dive in faang trade meantime after the break stay with us

markets continuing to rally two hours into trading let's get to bob pisani with more on today's action >> advancing in declining stocks and still modest look at the sectors. we have a little strength in semi conductors, industrials doing fairly well. energy is weak

health care bouncing a little, banks another group that's weak. i want to show you oil last half hour, dropped to new 15-month lows on the xle, the energy eft oil at 15 month lows we talked about new lows for days on end the last couple of weeks, that story not going away supply concerns are the main issue. speaking of concerns, what's the market want. they're trying to figure out what they want from federal reserve. we are seized by the slowing growth story we had several attempts to rally, particularly yesterday, and failed spectacularly people bought at lows and didn't get rewarded put natural buyers on the sidelines saying i am going to figure out what's going on hopefully that will put a floor under the stock market they're anticipating one rate hike next year if that is set up by the fed,

will it lead to a rally. if the fed does nothing and doesn't raise tomorrow, is that a concern. is that going to signal they know something we don't. there are a lot of debates the market isn't sure what it wants or what will make it go up merrill put out the global fund manager survey, they're calling for extreme bearishment, move into bonds, short globals, tech, industrials, only 9% think recession in 2019. half think they'll see weaker growth overall this is a good sentiment indicator. extreme bearishment, lots of moves to bonds the most crowded trade is the long u.s. dollar, replacing long faang trade. a lot of people have derisked and now the long dollar trade that's the big risk out there.

>> thank you. faang stocks, another crowded trade all in green big part of today's rally. for more, we're joined by michael graham and mike santoli gentlemen, good morning. michael, start with you. how would you characterize the sell of faang stocks, do you think looking at the bounce we have a bottom in terms of valuations >> it is hard to say if we have a bottom in. any time you have stocks that performed so well for such a long period of time, you're boun bound to go through periods of collection i feel as we look ahead, fundamental outlook is solid all of these stocks are going after large markets that are still in early to mid stages of shifting online. i do feel there's a good fundamental outlook for several years. in the short term, i think it is important how january plays out. you sort of need markets to get

back to bullish risk taking mentality. so i think the first few weeks in january will be fragile for the group. hopefully we can see it recover. >> mike, we have seen dramatic moves lower in big cap tech names. when you put them in perspective in terms of the year with the kmep exception of facebook, a lot of them, amazon, microsoft, still have double digit gains. >> apple, stocks are down 20 to 25% off highs. when they first reached the level they're trading at, it is 9 to 20 months in the case of amazon, netflix, within the year they got to this level. you haven't necessarily undone a huge chunk of that outperformance they had. they're also back down to typically average valuations for the past five years. average valuations might be fine for a fast growing company when the market settles, you

would think they reach for strong balance sheets and cash flow, not economically dependent, and the rest of it. plus ones that hedge funds have been purging more than others. they check off the boxes if you have to overshoot the other way as much as the up side, maybe it is not done. >> you mention facebook, it is their top megacap pick for '19, they say changes in sentiment make the difference. is that what happened with twitter? >> i think twitter was two things one was sent meant got better, they were lapping periods, and growth looked favorable the first time in a while. i think that company has trouble replicating it going forward for facebook, it is hard to see how sentiment could get much worse. every day you have a few new headlines, employees rebelling

and people are calling for management change. i feel there's a case to be made that sentiment for facebook has bottomed we need advertisers to stay confident in facebook. that's what we need to see as we come out of q4, into q1 with major advertisers setting budgets for the year, good votes of confidence from facebook investors will be important. >> curious about calls you're making outside the biggest tech companies. you like wayfair, grub hub wayfair, smaller furniture seller largely, grub hub is food what happened to the narrative on how faang stocks, amazon in particular in this case were going to crush all these smaller players? as we head out of this period of tech doubt, how should we think about impact of big platform players are having on smaller stocks, especially given bullishness for these?

>> we try to be selective about stocks competing against the faang complex. as you point out, they have so much data, momentum, market power. what we look for in smaller companies that are attacking different verticals, we look for the ability to build a brand we look for ability to connect with customers outside google and facebook and amazon. and we look for them to go after large markets with competitive positions that are defensible. for various reasons, wayfair, home category is historically difficult for amazon to attack, so we like them there. for grub hub, it is similar. they've done a great job forming relationships with tens of thousands of restaurants in the u.s., have a good competitive position in that sector as well. >> mike santoli, continue to see more weakness in faang if the correction is not over for those names, can the broader market rally without them >> not necessarily in a big way.

i do think if the market catches a spark, it is very oversold, a lot of measures showed that. i think outperformance in the first stage of big bounce back would be the stuff really beaten down, much more than faang the risky stuff, highly leveraged companies and the rest of it. then the following stage, yes, you need big growthcompanies t get sponsored again, to kick in. it is a longer process than saying we're going to flip the switch, people liked what the fed said, and back to the old winners leading the way. >> thank you and more on the rally straight head. first, check in with rick santelli rick, what are you watching? >> with complete reversal in global easy money policies, is it so shocking we have somewhat a complete reversal in how

investors invest we will talk about that after the break.

coming up. is the bull market over? the fed meeting will be getting under way. tom lee is here, joins us with a counter argument, reveals a prediction of his own on the markets. and the call of the day hit a 52 week low is the worst over for royal dutch shell. we discuss that at noon, carl,

about ten away see you in a bit. >> off that great show yesterday. thanks. let's get to the cme group and rick santelli. >> hi again, carl. before we get to the meat of the matter, i would like to show a chart going back to 6th 6th of r note yields. why is it so important treasury is getting down, testing this 2.82% level this is the fourth occasion we've spent some time down there even though the low yield close is a couple basis points higher than that. it's significant in so many ways, midpoint of the 2018 closing yield range for ten year also important when we made the first of the two double tops right below 3.25%, the last spot that we paused before the market basically rose very efficiently was a 2.81% yield close. a lot of reasons to pay attention.

we all talk about the fed's first day of the two-day fed meeting tomorrow most likely resulting in a rate hike, but there's been a big reversal of policy and really in many ways it started in early october i know many pegged the, i believe, october 3rd comments of fed chairman jay powell and the distance between where we are and neutral but maybe it was just the context when you throw a ball up, gravity zero and back down and that zero point at the apex was early october the now a reversal of markets. has it been overdone have the markets got ebb carried away yes but not in the way you think. carried away in the form of carry trades easy money structure is coming back to haunt us everybody knew it would at some point. the question always was even back years and years could the

fed possibly thread the needle between a credit crisis to try and normalize and do all that without disrupting the market too much the answer is no we have equities down, credit is down and cash is king the thing the fed wanted to least invest in was cash all the others were made, almost pushed investors into. so it shouldn't be shocking. i think being carried away and reversing years and years of various structure is maybe good news i still think we have a solid economy to build from once the correction is done morgan, back to you. >> rick santelli, thank you. johnson and johnson ceo told jim cramer last night. but first a look at some of the

laggards in the nasdaq 100 today. biogen down 5% wynn resorts and ulta lagging despite the nasdaq 100 being up about 0.8% i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

the dow has been benefiting from boeing and caterpillar all morning, adding about 90 points to the rally this morning. the vix got close to 25.

oil got awfully close to 47 and is currently 4726. "squawk alley" back in less than three minutes.

the fda at that time confirmed not only was the

methodology and testing we used the correct one but agreed our talc, our baby powder, did not contain asbestos >> now the reuters investigation says it didn't tell the agency that at least three tests from three different labs from 1972 to 1975 found asbestos in its talc >> what we found and what's really important in all these cases as you're reviewing the documents is to look at all the information in totality especially when you're dealing with matters of science. >> j&j ceo alex gorsky talking with jim saying the baby powder does not contain asbestos. posting severe losses. the lead attorney for the plaintiffs mark lanier said he was not convinced of the company's findings, and although it's been a painful few sessions really 132 takes you back to late august or so, labor day >> they also announced that

share repurchase program which is giving lift to shares today, too. >> it's the story of our time. we have more data, more arguing, but less intelligence knowing what to do with the data, less wisdom there's science here let's get the facts, go through the facts and figure out what's true >> plaintiffs attorneys have lots of tricks in their bags for sure micron tonight will be important. let's get to the judge i'm scott wapner it was the call that shook the markets. doubleline's jeffrey gundlach declaring the bull market dead is he right? and, if so, is there anything the fed can do to revive it? it's 12:00, noon, this is "the halftime report. a crucial two-day fed meeting begins as stocks recover a little lost ground but the big question remains, is the bull run done? >> i'm pretty sure this is a bear market. >> today debating the calls that are moving the market. doubleline's jeffrey gundlach sounding off on stocks, bonds, and the fed yesterda