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good tuesday morning welcome to "squawk alley." i am carl quintanilla at post with morgan brennan and mike santoli. jon has the morning off. stocks on a bit of a tear, all coming off four straight positive sessions. dow and s&p had the best week since november, on pace for the best month in nearly two years markets were closed monday the government shutdown, headlines from davos, china trade and earnings are all driving this morning's action. >> and that's why we're going to stay with the markets right now. global growth concerns worrying investors with silicon valley's most prominent business leaders voicing recession fears from davos today. take a listen. >> the u.s. economy is slowing from where it was. remember, two quarters ago was 4.2% growth which is unsustainable for a large country like the united states

we'll probably grow somewhere around 2.5%, maybe 2.75. i don't know where that came from the last two months of the year recession, is it minus one, plus one, let's not get technical about that too much. there's high likelihood of significant slowing in 2020. >> i heard some folks say maybe we should get a small recession now and get it over with then we could stop worrying about length of the cycle. could well be mild >> joining us, global market strategist at jpmorgan, and brian bellsky. good morning to you both david, i'll start with you your response to some of the comments from davos? >> we've always been of the view the growth rate was driven by

fu fiscal stimulus. we expected it would come back to earth moving into 2019. i think what's important to recognize is right now this is just a slow down, not a stall out. what we need to focus on with investors is what happens with corporate profits. 70% of the u.s. economy is based on consumption when consumers retrench and stop spending, that doesn't happen until people are laid off. keeping an eye on the labor market and fed, but i look at this as return to normalcy rather than broader pull back in the u.s. economy. >> brian, where do you stand on this >> as we talk to clients around the world, in europe last week, seems like people are wishing for recession the way people are positioned what we saw in december with respect to markets was like a buyer's strike no one wanted to believe in the system of investing any more, especially when buy the dip didn't work in december.

i think people are wishing for recession. people say recession, but can't define it. you have three types of recession, capex and consumer. consumer remains strong with gas prices under $2 a gallon on average, consumer spending from personal consumption basis looks strong we haven't had cap ex. credit spreads expanded but nowhere near 2008 and 2009 that's well below the long term average. we don't think recession for several more quarters. again, people are trying to will the market lower because they missed the rally again on the recovery and they're bitter. >> beyond just wishing for lower prices, brian, i think the question is what have we proven in january except that panic was so extreme in december, right? you reversed that.

i don't think it is easy to make the case, is it right now, that the market is priced for any significant decline in corporate earnings what do you think for 2019 is built into u.s. stock prices >> well, mike, that's a really good question. here is what we would say. we just put out a note minutes before we came on the broadcast. you look at not only valuation and data, it is interesting, not just stocks hit the most have gone up the most, if you do the work, look at valuation, the three lowest in the next 12 months pe are the best performing stocks off lows where value is a discipline that's been decimated the last couple years, and the highest pes came back as well you have fear on the tech side, loathing leading the up trend. i think the market this year was priced for recession and for 3 to 4% earnings growth.

we think the number is 6 to 8% growth close your eyes and imagine, 6 to 8% earnings growth, 2% gdp, 3% ten year treasury that's a darn good place to be with respect to owning stocks under that environment >> david, one of the key questions, when you see slowing economic growth, globally and potentially domestically, what does it mean in terms of the fed and other central bank policies? >> i think that's the key question when you talk about an economy that's growing and talk earnings growth, 6, 7% where you shake out relative to consensus, the question for investors is what multiple do you put on that? i think the multiple on that is tied to what happens with federal reserve. i have been thinking about this impossible trinity for investors, what investors really want is solid economic growth, resolution on trade and a fed that sits on the sidelines i don't think all three happen at once, you have solid growth and resolution on trade, the fed

will hike rates. i'm not sure how much more it rises. >> two out of three ain't bad. >> we're already up 6.5% this year you go back a few weeks, had a lot of people calling for mid single digits rurnls for the year as a whole. we are seeing a nice bounce back now comes back to policy, what happens with china and trade and with the government shutdown and the fed, those are key things i think to keep your eye on. >> how wide is that lane between too slow and good growth but the fed doesn't choke it off >> the fed is in unique position we think inflation remains soft given the rerating in oil prices the fed uses that as cover to stay on hold you see 2, 2.5% growth, a stock market where multiples expand above the long term average, that was giving jay powell pause in advance of the sell off weight last year i think they'll continue to hike rates. i don't think you can dismiss

the potential for two hikes out of the fed. >> brian, how concerned should investors considering the rally we see. >> strongest rally since 1989, what david taulked about, goldilocks and the three bears given the fact the rest of the world has fundamental volatility, we think investors around the world will become reluctant buyers of u.s. stocks. i'm growing tired and bored of everyone talking high quality. here is what you need to buy buy those assets that provide earnings stability technology is the most stable earner financials the most feared, loathed, hated sector in the world. we think a big recovery with financials, we like communication, services, and industrials with the trade impasse coming to the end and massive rerating on short term basis coming in that sector. >> thank you for joining us

today. when we come back, why the ftc is considering a record setting fine against facebook and why business leaders are taking shots at the social network. recode's co-founder kara swisher joins us next with her take. the dow down 200 points. stayitus wh ♪ hawaii is the first state in the u.s. to have a hundred percent renewable energy goal. if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution that lets us collect near real time data on our power grid. ♪ if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪ that rocking chair would look grahh, new house, eh?e. well, you should definitely see how geico could help you save on homeowners insurance. nice tip. i'll give you two bucks for the chair. two?! that's a victorian antique!

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the ftc considering a record fine for facebook over the social network privacy

practices, effecting more than 2 billion users. the ceo sat down with us at davos to talk about tech ceos and what needs to change >> we're nar debating a crisis of trust ceos don't help us if they're not helping the homeless or people that need them, and certainly if they're abusing product or data they're collecting, those ceos need to also wake up and need to realize that they can't do that any more this is a new day. >> joining us, recode editor at large, kara swisher. good morning to you. >> good morning. >> you have the ftc potential news the fine of google out of the eu is this a wake up call >> they paid fines before and obviously as you know facebook signed a deal with the ftc many, many years ago that's under question whether they were following it, this is probably a

follow onto that these fines aren't very big. the eu has put in larger fines, but ones in the u.s. are relatively small, i think 22, 30 million, something like that, which isn't much for these companies. the question is not just can they put fines in place but proper regulation to keep the companies in line if they will at all, which i think is a big if >> and then other reports suggesting that well, maybe google is considering pulling google news out of europe. how much do you think happens tactically in terms of operations at some of the companies? >> i mean, if they have to, they will do that this right to be forgotten thing is there in europe and all kinds of difficult things for them to implement there. some of the laws would never, like the right to be forgotten in the united states, i don't think it would be passed in any way, but i think it is difficult when you operate on a global scale with very different governments and very different thoughts about how privacy

should be conducted. google is going to have to make changes and decide what it is going to do to business based on what it can do i can't imagine google moves out of europe, but maybe they will maybe they feel it is too hard to implement we'll see as they move forward, they'll make that business decision in general, i think you see tougher fines and regulations starting in europe, maybe out of some states here, like california then see if there's federal movement, i don't anticipate it how badly we can't even get the government open, i can't imagine it will take up major privacy legislation anytime soon. >> the term that he used was crisis of trust. certainly that's a conversation we've had on this show quite a few times in the past year plus. are there signs that consumers see this as a crisis of trust? >> well, i think people talk about facebook in a different way. i don't think it is just the media and sort of -- i think people generally, i have lots of

relatives that use it, they're distrustful of it. they've heard the stories, they understand the basic outlines. i don't think they're paying attention the way we are, but it is definitely not the same facebook, up swing celebrity cover, aren't they fantastic kind of thing. i think they endured some hit to their reputation, that always has some fallout to the business as i said before, the real issue is whether they could make innovative products they use, if they do, they will be fine, if they don't, they won't be fine that's the formula for silicon valley and all tech companies. >> i wonder about that innovative product customers want to use if you consider customers the advertisers. beyond the cost of policing privacy issues and everything on the consumer facing front, facebook had a magical ad targeting machine, not going to tell you how it works, but it works well has that changed they have to be transparent, the political parts and things like

that i think the issue is advertisers go where the audience is this is where the audience is now. people can regain trust. look at microsoft, remember how much we considered them this giant evil corporation and now their reputation is quite good, so people can recover from those things i think it all focuses on product and whether people like to use facebook or it becomes more onerous i find it difficult to use, it is so big and bloated to me, but others may not think that. that's really where if advertisers get the product they want and reach the audience they want and users like it, it will be fine. if not, it won't be fine >> one other angle of the on-going debate of privacy involves jeff bezos and circumstances surrounding his divorce, and texts you wrote about this last week does it change the calculus for a man you would think

understands data privacy better than anyone? >> in his case, someone took a picture, one of the two with the texts took a picture or something like that happened i was talking context that anything goes on the internet now, everything is available so one of the things, my whole point is we become so used to having full information that some of the information is information we shouldn't have. and i think the question is how we think of privacy, what should be private, even within our public discourse, what should stay quiet, what shouldn't stay quiet. i think it is a big issue. someone like jeff bezos, i would be very careful if i were him compared to other people because of who he is and he has to understand that maybe he understands better like what many regular people endure around privacy and what people know about them. i shopped there this weekend, i was thinking he has so much information about me i kept thinking it the whole time me and my kids were talking

about it when we were in whole foods. it is something to think about, how we conduct ourselves publicly, what should be private, and whether we need a stronger privacy protections for consumers. i think that's definitely the case >> it is incredible, the amount of information collected about us any moment >> any moment, carl. >> see you soon. >> okay. thanks let's get over to julia boorstin with a news alert on netflix. hey, julia >> a source close to the situation tells me that netflix will be joining the mpaa, hollywood's lobbying organization this is an important move for netflix as it demonstrates it is part of the hollywood mainstream this will be the first time a streaming service joined the mpaa its members are all of the hollywood studios. mpaa lobbies for tax credits, for filming in states and in the u.s. versus other countries and lobby for anti-piracy protection

and copyright protection really a big move for netflix, indicating they're part of the hollywood establishment, and meaningful that this is coming out today as netflix received the first ever best picture nomination for the academy awards for "roma" this morning netflix shares are down 2.5% guys, back to you. >> it is a studio in all ways at this point appreciate that. >> exactly when we return, why the government shutdown is causing major airlines to put growth plans on hold and how it is impacting the consumer first, let's look at the first performing stocks in the dow so far this morning the dow itself down 196. you see heavy industrials, caterpillar, dow due possibility and goldman, sachs up 19% year to date leading the down side. more "squawk alley" ahead. don't go away. our new, hot, fresh breakfast will get you the readiest.

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welcome back to "squawk alley. new planes being delayed for the airlines as the government shutdown is in the fifth week. phil lebeau is in chicago tracking the latest on the shutdown's impact on the airlines hey, phil. >> it is substantial, for two airlines start with southwest airlines. it is on the cusp of beginning service to and within the islands of hawaii. this is a big deal and a big expansion for southwest airlines many believed they would start selling tickets and begin service by the end of january. they can't do that until their planes are certified, get e top certification, faa certification that says they can fly over long distances over water that's required for service to hawaii they can't get that as long as the faa office that handles that is furloughed. southwest saying groups within the faa that oversee those activities are on furlough as a result of the government

shutdown, and our next steps require their direct participation and oversight. you can bet gary kelly, the ceo of southwest airlines will have a few thoughts on this when he talks with reporters after reporting earnings thursday morning. another airline impacted by the government shutdown, delta they haven't officially said they will not begin service on january 31st with the a 220, this airplane. so far, delta is awaiting final certification, authorization there's an office in the faa that has to say boom, you're ready to go, that plane can go into revenue service they haven't gotten that approval yet they have seven other aircraft as you look at shares of delta airlines seven other aircraft are awaiting faa approval to enter into service guys, we will see more and more of this the longer the shutdown goes on that airlines have the aircraft that are ready to fly but can't be put into service.

>> phil, obviously the effect is cumulative on business in general. we'll be in touch about the rest of it. thank you. >> you bet. citadel's ken griffin smashing another real estate record with a purchase of a $122 million mansion in london. robert frank has more on his real estate record buy >> good morning, mike. the london property market facing the worst outlook in decades. ken griffin sees a buying opportunity. he paid 95 million pounds or about $122 million for a famous mansion near buckingham palace that's the highest price paid for a home in london in about a decade the property, 16,000 square feet, indoor pool, big staff quarters charles degall stayed there in world war ii until it was used by mi6 for recruiting.

purchased by investors for 65 million pounds, renovated with a lot of modern amenities, including the pool prime property prices in london fell 18% since their peak, due mainly to brexit and tax changes. a new survey showed the worst outlook for london real estate in 20 years. griffin spent $700 million on the largest real estate shopping spree by any american billionaire. he bought the most expensive home in chicago for 58 million, the most expensive home in new york for 240 million, most expensive home in miami for 60, and spent over $200 million on land alone in palm beach where he will spend millions more to build a house. a citadel spokeswoman says the home is a historic property with spectacular location citadel has 300 staffers in london and dublin. now when he goes to visit and do work there, he will have a nicer

place to stay. guys, back to you. >> robert, $700 million on record breaking homes across the world. any insight into whether these are for ken griffin discretionary or trophy purchases or sees them as some sort of investment >> there's certainly discretionary. he made an income and compensation 1.4 billion last year this property in and of itself is less than 10% of that i think to him if you buy the best, over time, they will prove to be the best investments i think in all these markets when you buy the best, you're going to pay the most, but to do all of it in a period of five years with such a large price tag, it would be good to be ken griffin's broker now. >> he has a habit of setting records. thank you. robert frank at hq. europe will close. seema mody has today's action. >> negative close yesterday.

the china slowdown is showing up in various international metrics and closely watched business indicator in germany falling to a four year low. that's the lowest since january of 2015. big drivers there is slowing imports from china and on-going trade dispute. that's not a good sign for germany which is an export oriented economy that relies on demand from the rest of the world. here's where the slowing china theme sort of falls apart. look at hugo boss. results for fourth quarter beating expectations the retailer seeing the fifth consecutive quarter of double digit growth and online sales. company management citing strong demand in china. shares up over 5% with stock's best day of trade since august, 2017 on the flip side, ubs warning of a tough start to 2019.

they pulled 8 billion from a key wealth management unit adding geopolitical tensions are weighing on investor sentiment european financials have gone up to a strong start in 2019. slightly underperforming the banks in the u.s., but up about 6% guys, back to you. >> thank you very much let's get over to sue herera for the cnbc news update hey, sue. >> good morning, mike. good morning, everyone here is what's happening at this hour the supreme court is allowing the trump administration to go ahead with its plan to restrict military service by transgender people this while court challenges continue it reversed lower rulings preventing the pentagon from implementing plans but declined to take up the case about the plan for now hundreds of union firefighters from across the u.s. and canada in los angeles for a conference marching in support of striking teachers this is the union and l.a. unified school district

representatives continuing to negotiate. volvo is recalling 200,000 diesel cars worldwide because the fuel line might crack. the automaker calling it a preventive safety measure. there have been no reports of inl incidents. a soccer star pleading guilty to tax fraud. got a two year suspended sentence, fined more than $21 million. he was accompanied by his lawyers and his partner, georgina rodriguez back downtown to you guys. morgan, back to you. >> sue herera, thank you. as we head to break, getting a check on major averages. the dow is down 193 points the s&p 500 down 25. the nasdaq down 79 points. worst day for major indexes since january 3rd. keep in mind, it has been a strong month so far. we're back in just a moment. stay with us ♪

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global economic worries driving down stocks. the imf cuts the global growth forecast to 3.5%, and china's growth slows to the weakest pace since '90. >> the u.s. economy is slowing from where it was. we're going to have a slowing of the economy, not just in the u.s. but in europe.

>> the mitigation of growth against brexit, trade war, foreign exchange issues. >> there is a slowdown happening now, slowdown in growth. >> the head of emerging markets at morgan stanley investment management joins us. good to have you back. >> thanks, carl, good to be back. >> prior to you coming on air, i was reading a note from mike wilson your colleague saying technically we think the odds of full or partial retest of december lows are still relatively high which would bring the s&p back to 2450 at a minimum. do you share that view >> yes, even though we're on different sides of the firm, i feel the american stock market has hit a peak it is possible this is a more long term peak than currently anticipated or forecast by many people i think that one of the big things we have playing is we had a peak in america. it is at a 100 year high relative to the rest of the

world. the immediate concerns have to do with china and i think that that is possibly being underestimated by the market, there's great faith that policy makers in beijing will have stimulus measures and that will rescue the chinese economy i'm not sure it is going to work like it has done for much of the past decade because i think the tools are much more limited that beijing has now. >> why do you think the imf is more worried about europe and germany than china >> i don't know, you have to ask them maybe it is not politically correct to speak too much about china. i personally feel the risks are there in china all of the reports on the ground suggest a very serious slowdown is under way, and the more worrying aspect is that there's not that muchthat they can do out here because u.s. interest rates and chinese interest rates

converged. for them to cut interest rates further from here to stimulate the economy poses a serious risk to currency. they don't want it to flare as well it puts them in a tighter spot than they have been in the three other instances this decade when they rolled out a massive stimulus >> if that's the case, doesn't that make the argument for investors to pile in even more aggressively to u.s. assets, stocks and the like? >> you know, the u.s. stock market is more a global stock market one-third of all earnings and more of the profits of late have come from overseas, so i think to speak about the u.s. stock market as just u.s. is not something i would do then there's the whole issue of valuations as well the fact is that the u.s. stock market is doing well because of tax cuts and other measures that have been taken. but the u.s. stock market on valuation basis is creating close to a market decade high. highest in post world war ii

history. it is about what's priced in where and least amount of disappointment is priced in here compared to internationally in places like europe where it is obvious the chinese slowdown is hitting them >> one of the aspects of the downgraded growth expectations is slower global trade in general. that would seem as if it is going to hit more trade dependent economies harder is that the case, and is any kind of a u.s., china trade agreement a swing factor, perhaps a way out for them >> i think the markets haven't gone into pricing a lot of some sort of trade agreement compared to expectations of virtually nothing happening in let's say october, november last year. i think a lot of that now is getting priced in. i think even a more fundamental issue out here is that regardless of what happens on the trade front, we're in an era of deglobalization the world is getting more split into regional blocks and

barriers are going up everywhere i don't see that changing with one u.s./china agreement that helps short term sentiment but doesn't decrease the deglobalization we're talking about. a lot of companies are already planning that way. anecdotal evidence in the past, they would look to set up three factories in china now they're saying wait a minute, we need to balance risk, maybe one factory in vietnam, one in malaysia, maybe one in mexico i'm not intrigued by other smaller mid size economies that may benefit from the threat of deglobalization rather than expect that u.s. and china get something done and that's going to be off to the races after that >> finally, i wonder what you make of bulls who argue if you stay domestic in holdings that the u.s. is rarely, in fact hardly ever derailed by a global

recession itself. >> yeah, but i think things change, the world changes. inter linkage now is greater than in the past i sort of agree with that, talking about recession in the u.s. but major slow doundown as stimulus fades, but i think it is seriously underestimated compared to what it used to be late 2015 and '16 with a serious global slowdown, it impacted more until the chinese did a massive stimulus and that helped growth, including u.s. growth. i don't agree with that insular argument that the u.s. will remain completely protected by the great oceans and continue to ride its own team, especially because it has already done so well in the last decade. the only stock market in the world which has done really well in the last decade has been the u.s., so a lot of good news is priced in out here. >> we're going to find out you guys continue to frame the debate in a unique way

thank you for your time. come back soon >> sure. happy to be back. still to come, amazon cashierless stores but first, rick santelli, what are you watching? >> watching the earnings coming out. one of the common refrains is wow, a lot of companies are doing better, that's because everybody adjusted lower we're going to talk china after the break with that same mentality. doesn't look bad, just a bit we after the break.

i am scott walker. here's what's coming up top of the hour we debate whether the january jump for stocks is sustainable and a big call on nike shares, is it the best play in the athletic space > more data coming in below expectations today we'll discuss all of that. we do that at noon about 15 away. see you then >> sounds good, scott, given that big drop in existing home sales today. let's get over to the cme and rick santelli for the santelli exchange. hey, rick. >> thank you, morgan a lot of talk about china today. there was a lot of important information out the last several days we had gdp, retail sales, and while this is going on, we're monitoring our own earnings

season we have a bit of a detriment, handicap at the moment it makes the crystal ball murkier that we're not getting the fundamental metrics for the economy due to the partial shutdown but i would like toll over a couple of things first of all, gdp. 6.4% who wouldn't die for that? the french, the germans, the americans, the japanese. of course. but yet china shouldn't be all that happy for the same reasons if you beat lowered estimates on earnings, it isn't horrible, it's still improving, there's still positive carry there, but positively not as much as before let's go to the chart. china, year over year gdp, constant dollars the chart starts in 2000 it is self-explanatory this is the part that bothers me there's many analysts that come on and say this is a really good number how can we not think china isn't

still adding horsepower. they're not adding nearly as much as before the credit crisis when they were 15%, or just over 12% when we rebounded post crisis lately, it has been flat lowest now in the release today since march of 2009. but it doesn't end there couple days ago we also had another data point out in china. china retail sales, year over year, this is a q4 number. here is what's interesting about that it isn't at the lowest level when it was released at 8.2%, in other words, this is the year over year rate of change, 8.2% higher before the crisis, it was 23.3% higher and just last month in november, it was 8.1%. that number took us quite a ways

back it took us back all the way to november when i'm looking at the chart, it brings us to about november of 2003, 2004. that's a long way back the point of this is when we look at china, what we really need to pay attention to is the rate of change why is this important? call it the delta. the delta is changing so quickly to the negative that even if the number is positive, but it is pushing into the global economy is less. the bottom line is all of you free traders out there, this has to get china's attention, along with all of the multinationals as we learned from earnings season mike, back to you. >> rick, has all our attention thank you very much. when we come back, look at shares of ebay, they're spiking after elliott management announces a stake in the company. shares up more than 7% right

now. "squawk alley" will continue after a quick brea k. (baby crying) ♪ ♪hold on, i'm comin' ♪hold on, i'm comin' ♪hold on don't you worry,♪ ♪i'm comin' ♪here we come, hold on♪ ♪we're about to save you i'm comin', yeah♪ ♪hold on don't you worry,♪ ♪i'm comin' ♪ hawaii is the first state in the u.s. to have a hundred percent renewable energy goal. if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution that lets us collect near real time data on our power grid. ♪ if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪

markets taking another leg lower. session lows for stocks. down more than 1% on the session. with us now, ubs director of floor operations, art cashin hi, art. up 13.5% in the s&p in 17 trading days so it was a sprint

anything going on that seems more than a pull back? we have growth concerns back front and center it would seem. >> you had a big push thursday and friday from hopes that things would work out with china. no now we've got overnight the imf kind of downgraded the global growth and equally important, china reported some rather weak numbers. numbers most nations would be happy to have but not on a par with what they have been running at they look like they are slowing down too everything is reacting to it even oil this idea of global slow down has people pulling back. the market, as you indicated, was clearly over bought from that big sprint. for now we'll take this in strides. the rally building up a cushion

where you can say this is a 1% drop at this point >> we went in the dow back below 24.3, somewhere that that area we had volatile day after volatile day >> are you throwing it all by the percentage companies so far that have feel low it is a bit low given this point of the course. >> it is remember as we started moving into earning season the concern was that with the government shutdown and the china tariff wars, et cetera that we might see earnings come in lower today's earnings were mediocre but last week they were a little bit ahead of people's

expectations people started marked earnings down then they found out they came in better than expected i think they will be slightly lower but in a moderate range so we'll be able to hold up >> how important is earnings especially this week when you see these combined with the china growth story right now you see companies like las vegas, a number of companies have exposure to china either directly or indirectly, is that one of the key things to watch in the season? >> you watch that to see if what kind of impact it's having but the effect of all that will be washed away if they have a deal. the concern here is that rumors late friday were china may spend up to a trillion dollars over the next six years that could bring the deficit with china down to zero in two

to three years that sounds like great news. they can do it without much pain, they will be buying food stuff and things like that if we -- if the president gets too attempted to snap up what looks like a good deal and declare victory, we won't get a around intellectual property >> i think china doesn't worry too much >> we don't have a lot of economic numbers coming out from the government it's going to cost growth in the short term maybe that filters into okay the fed will be patient, the fed will be more patient once we get through this thing >> there's no question the fed will be even more patient.

i think that would with worrisome for them this just a healthy reaction or a pull back. we'll know that in a couple of days >> we got a little over 100 points buffer at this point. >> okay. thank you, appreciate it >> the dow is down 267 worst day for stocks since january 3rd, which was not a good day the dow was down 660 good chance we will say worst days since january 3rd unless things change. back in a few minutes. alerts -- wouldn't you like one from the market when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts

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welcome back year after opening first cashierless store to the public, amazon is expanding its amazon go concept across the country. in san francisco go amazon store with more on the company's

plans. >> reporter: we were at the one opening in san diego no line, no check out, no cashiers there's been a lot of questions about what amazon will do. so far amazon go are concentrated in chicago, seattle and here in san francisco. the company did confirm to us that it is planning to open up stores in new york as well the company continues to say there's no plans to bring the technology into its stores and it's too early to say whether they will license the technology out. back when first one opened, the technology didn't work perfectly. if you remember, i was able to walk out without paying for some of these items i asked where the technology is. they say the custom built

machine learning algorithms continue to get smarter. in case you gouys are wondering, i did go shopping again. i was charged for everything in my basket including this yogurt this time. while amazon continues to perfect the technology, other retailers are sitting back they are developing their own or partnering there's kroger and microsoft announcing a partnership saying they will market it to other retailers. there's a whole crop of start ups. there were some empty shelves. we asked the workers what was going on they said they were munchary products they nieannounced they went outf business

no longer there. >> interesting i also noticed that sun trust reiterates their buy on private label revenue forecast for the year 2022 or something amazon has its fingers in all kinds of things. ibm tonight. we'll watch for that let's get over to the judge. stocks lower still on pace for a strong month of gains is the january jump sustainable? it's 12:00 noon in is the halftime report. star housing analyst heidi, see what she sees. the dow component that just picked up the key upgrade.