here's your top five at 5:00 wall street pointing to a higher open following yesterday's vied, and we have news on the most important dow stock that will open your eyes and get you going this morning china slashing growth target of the national people's congress kicks into full swing. we take you live to beijing. speaking of china, one of the brightest minds on wall street raising the red flag on that country. heymann capital kyle bass says he doesn't think a trade deal will go far enough you're going to hear from hem exclusively ahead. former nissan chairman carlos ghosn granted bail after three months in jail in japan, and a very bold call on google a top-ranked analyst said the stock can see another 20% up

side, about ut that one of the fangs could be in real trouble it is tuesday, march 5th, and worldwide exchange begins right now. stock futures indicated the dow will rise about 60 points at the open, although keep in mind yesterday at this time futures were higher as well. only to see the markets slide in midafternoon europe making modest gains today. very modest gains. they are gains, nonetheless. it is green all across the screen germany, france, italy, not much higher in asia shanghai stocks simply continue their massive run this year they are higher again. shanghai composite up nearly 1%. more than 20% gains so far from

mainland chinese stocks. let's begin with china once again, the big news that could impact your money has to do with that country, but today it is not about the trade deal it is that china surprising many overnight by slashing its economic growth forecast for the year all this as the national people's congress, their biggest economic and political event, gets into full swing eunice yoon has more >> it's not about the trade deal, but the chinese premier did acknowledge that the trade dispute with the united states was just one of the challenges that china's economy faced last year and that this year is going to be an even tougher struggle these are the numbers that you need to know first of all, the gdp target is now lower in a range of 6% to 6.5% the cpi is expected to be manageable at 3% the economy will create 11 million new jobs this is important because that means that the government believes that they are going to create fewer jobs than 2018, and the premier had said that job

stability will guide policy. how are they going to do that? the deficit to gdp ratio was raised to 2.8% what does that mean? that means that they're going to be cutting taxes, v.a.t. tax for manufacturers as well as transportation and construction companies. also, they have slashed a whole bunch of fees, and the reason they did that is because they want to ease the financial burden on a lot of companies across various sectors so that they can keep people employed. local bonds are also being green lighted and raised quite significantly from 59% from 2018 and so that's being seen as money that's going to go into infrastructure spending and one other thing, brian, i just want to bring up something that's missing in the work report there is no mention of the made in china 2025 strategy that very controversial program that a lot of trading partners, including the u.s., have been suspicious of, and instead,

though, one of the main priorities, the third priority of the work report, is to instead promote high quality manufacturing and strengthen technological innovation so even though the language has changed, beijing's ambition to become a technology leader and a manufacturing leader has not >> eunice, as always, thank you very much. let's stay with china-related news would a trade deal with china settle the minds of investors that have been critical of that country and its policies we spoke earlier with famed hedge fund manager kyle bass and asked him if he thought a deal would do enough to level the playing field. with china it's a subversive industrial policy that, let's say, circumvent wto rules. it's basically the way the chinese lie, cheat, and steal their way through our economy.

we have -- we basically have no -- we have no way to truly measure and/or counter act those things that actually have huge returns on investment for them and massive negative returns on investment for us. >> but reports on the framework of any trade deal suggests that china will toughen up its enforcements and protections for intellectual u.s. property bass goes on to say he doesn't think any agreement is likely to go far enough, especially given how important ip is to american companies. >> there's more of a desire amongst the administration to hear the chinese admit to the enormity of intellectual property theft that thief engaged in over thelast ten years. you know, our own government, whether you are looking at the defense department or whether you are looking at the trade rep reports to the white house, they all estimate that that number is $200 billion to $300 billion worth of ip per year there's a return on that annually as well over the last decade they've

stolen, you know, $2 trillion to $3 trillion in i.p. from us, and really the u.s.'s number one asset in my view is our ingenuity, our intellectual property, our -- our ability to innovate >> something like 75% to 80% is intangible assets. it's ideas it's patenteds >> that's our game, and they're stealing our game from us. that's at 5:45 a.m. eastern time today. >> your guest right now agrees that china is incredibly important but maybe in different ways joining us now is art hogan, chief market strategist at national security. it's great to see you on set how important is china and the trade deal to our markets right now? >> i can tell you, it's probably

the most important thing, and it's interesting when you sort of line things up for the turnaround that we've seen so far this year, trade and the fed's pivot are probably equal, but i think the fed's pivot was driven by something that, you know, that the trade war has caused, and by that i mean you look at the global economic slowdown. the things that the fed saw in december that shifted them into january to being much more dovish, i think that is contingent on us getting this behind us, right i think the business decisions -- >> what if we don't? what if there is a failure right now there's a lot of optimism what if they can't get a deal done what if we get a north korea outcome? >> we're going to get to a recession pretty quickly if we don't, right the decision not to agree to something with china means we're going to escalate or spend more time talking about it. my guest is at worst case we're going to spend more time talking about it and not escalate. the threat that we have is we're going to put a 25% tariff on everything that you send to us, everything we import from you. i just don't think we're getting. if we did go there, i think that

year-over-year we've got a significant global economic slowdown and a down year for the market >> if we don't get a deal, do we immediately rachet down earnings expectations do we immediately rachet down economic growth assumptions? >> yeah. i think we've priced in escalation in our estimates for the s&p 500 last night for 2019. yes, we absolutely have to take down those estimates and take down the multiple you put on that you are talking about a pretty terrible year if we don't get something positive accomplished. >> best case scenario, we get a trade deal everybody likes it brexit is resolved or there's a deal or it's kicked off for another couple of years. what happens to our markets? >> well are depends. if we pivot immediately to working on trade with europe and put tariffs on automobiles and very much like we did when we got nafta 2.0 plishds and we pivoted for china. if our next move is to start a trade war with europe, i just don't think that's positive enough for this marketplace, and we're going to spend some time i would raise it lower if that's not the case and our next move is not any of those things, and we have an outcome,

i think we can see this -- i would say earnings estimates have to go up for the markets probably higher than where we are now. >> it's been the fifth best start to a year ever of u.s. markets. are you surprise d >> we changed. the fed pivoted. one of the reasons december was terrible is we thought we had an economic slowdown and a fed that was on autopilot just raising rates. we had zero clarity about how the trade talks were going, and all of a sudden we have a lot of visibility into that we're getting closer to the end of this. i think that having some light at the end of the tunnel and finding an exit on the trade war highway is one of the biggest drivers, and we're going to have to be careful we don't have the news on this >> art hogan of national security real pleasure to have you on don't be a stranger. see you soon former nissan and renault leader carlos ghosn has been granted bail by a tokyo court.

this after three and a half months behind bars his bail was set at 8.9 million, and he could be released as soon as today under terms he must remain on deck up next, the sales force slide the cloud company in the red this morning, and the top dog at sales force says he is bullish about the future what he knows jim cramer last night that is sure to get a lot of attention today, and bold call alert one top ranked analyst making a big wet on google. why she thinks that stock could rally nearly 20% maybe not for the reasons you think. rain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

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click, call, or visit a store today. good morning or good evening. 5:12 a.m. here let's talk about corporate news because shares of sales force.com down this morning. frank holland joining us more with why >> sales force down 2.25% this morning after the company offered lower than expected first quarter guidance on revenue and nps. that's really overshadowing strong forty kwaurt earnings where the cloud software company posted a beat on the top line, and a really strong beat on the bottom line. 15 cents above estimates sales force is facing increasing competition from rivals such as oracle, microsoft msap, and offered full year guidance that was in line with wall street expectations co-ceo and founder mark benihoff appeared on "mad money" last night. he says the company is still growing, citing a deal on the

biopharma space with amgen, and also a deal with barclay's to automate their 50 million customers, which is the largest in sales force history >> here we are coming up on a year that we're going to do $16 billion in revenue that far exceeds my expectation. i still have never been more excited about sales force than i am right now when i look at the short-term, you know, i see $20 billion right around the quarter i see $30 billion right around the corner in fact, we initiated a four-year guidance today, jim, of 26 billion to 28 billion. >> the ceo very bullish, and sales force has had a solid start to 2019. shares are up more than 13% on the year the company will celebrate its 20th anniversary on friday, but, again, right now following that weak first quarter guidance, shares are down about 2.25%. brian, back to you >> frank, thank you very much. now let's welcome in laura martin at needham and company. she's just out with a big and bold call on alphabet, google. she's starting coverage with a buy rating at a 1,350 target

17% up to alphabet's current price. the key? something called network effects and alphabet has them, and laura joins us now, and we are pleased to have you on set the report, by the way, last night read the whole thing 70 pages not because i had to it was that go ahead. when you search on google, it learns so that when i search on the same term, i got a better result the more people that use that search engine, the better their search results are >> this is basically why yahoo died because they tried to list it themselves. they didn't harness the wisdom of crowds, the power of the network. >> exactly >> what does alphabet have that keeps that protective network effect moat around it and makes

it so attractive in your view? >> i think one of the things it has is it has a billion unique users. over eight different products. they have a lot of use cases. why do you believe that youtube's revenue may be wildly understated on the majority of the analysts >> i think the consensus on youtube is that their rif new is $13 billion. we think the number is twice that at $36 billion. we're making a sort of aggressive call on youtube here, and we think that if they spun off 10%, it would add a lot of value to the underlying google name because they so obscure all of the accounting of these eight big businesses that have a billion unique users, about ut they would add a lot of value. >> do they hurt themselves with that structure >> a lot we came out with a 43%

conglomerate discount from ob security, for accounting ob security >> 40% >> yeah, discount. >> i have to say, i have never -- i have read a lot of reports. >> google or fall bet is such a smart company. why don't they -- they must realize what you are talking about? the way they account and their balance sheet might be holding back some value. >> yeah. well -- >> i wonder why they don't do more to split it up? why not make the 2% recovery >> i this he that's a great idea, and i think that is what

they should do i think, brian, that the search epgin earns about $40 billion of operating income, and that company reports out $26 billion of operating income, and that means a lot of other things lose money. i think that's one of the reasons maybe they don't disclose more is we would really be on their case why are you losing money in cloud? why are you -- >> but you wrote, laura, that one thing you love about the company is they got no problem taking bad ideas out behind the wood shed and putting them down. >> yep we listed -- >> they will kill google hangouts, whatever it is they got no problem ending bad businesses >> i think that's a really smart thing. they're good at trying itera iterating, killing businesses or building them. >> the call is on alphabet you also talk about other fangs. this one sentence stick out to me, and you know where i'm going with this. talking about network effects. this leads us to the conclusion that not all of the fangs will survive.

i'm willing to be controversial, as you know. on netflix what we worry about this is. they're spending $13 billion here on content. apple, who is coming into the content business, and google and facebook, their annual cash flow, i mean, apple's alone is $60 billion. if they decided to throw $20 billion of content alone, not only would you not notice it as a percent of apple, but they could put netflix out of business for the three years netflix is addicted to debt to fund its content >> they are, and what is it, negative operating cash flow >> $4 billion a yoer >> that's a lot. the market hasn't cared. if they start losing subs to apple or losing subs to youtube, the market might care more >> thief got the weakest network effect of the fangs in your view >> they do >> who else has a strong -- google has the top one in your view >> google and apple together >> google and apple also has one. >> apple has 900 million users, and they mono ties them at two to three times >> because when we buy this, we then have to buy all the other stuff that only works on this.

>> i was earlier talking to your -- talking to your colleague, and he was saying that only apple could make those air pods that your ears cool, and there's a network effect that it's -- religion is based on called belief, and there is a belief that apple is cool. therefore, people buy those air pods >> this is a big call. 70 page report really it was tremendous reading. great stuff wrrks laura martin, have you to catch a train down to d.c thank you very much. >> my pleasure >> google or alphabet, a buy at a $15 target up next, we are on earnings watch. a double dose of retail nails you need to have on your radar today. plus, leveling up. the one entertainment stock that just scored big. we're going to bring you that name when we come back termites.

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a live shot of capitol hill. now you're a law welcome back to worldwide ek changes. game stop moving higher. video game retailer announcing a new $300 million buy back anda new cash dividend much 38 cents a share. gamestop stock up 4.5% we're also keeping an eye on shares of kohl's the retailer reporting results in a couple of hours wall street looking for earnings of $2.17 a share on 6.8 billion in revenue despite the broader mark's incredible run, kohl's shares

are flat target numbers also on deck on this tuesday. retailer putting up very strong holiday sales figures, but investors want to know if that trend continued into january target results are out in just about an hour from now, and, by the way, you're going to hear from target ceo brian cornell today at 7:30 a.m. eastern time right here on cnbc outside of the world of money and business, c northbound's francis riviera is now joining us with those. >> we start with the newly appointed william general who says he won't recuse himself from the russia probe. he made the decision after consulting with senior ethics officials and the justice department some democrats had called for barr's recrews -- recrewsal. president trump eights emergency declaration is about to hit a wall. senator rand paul announced he will vote with democrats to overturn the emergency order to build a border wall saying that it would "expand the powers of the presidency beyond their

constitutional limits. he would likely be the deciding vote on the resolution, which is already passed the house president trump has vowed to veto the measure if it makes it to its desk. today is mardi gras and celebrations in new orleans will reach a fever pitch on this fat tuesday before lent begins tomorrow on monday in a tradition dating back to the 1870s, the king of the carnival received the keys to the city. monday's ceremony also featured zulu characters like big shot, in which dr. and mr. big stuff those are your headlines >> the fed and global growth how to best position your money right now, and get some real life small cap stock picks just for you. and mega mystery solved. one single winner finally coming forward to claim a billion and a half dollar jackpot and an incredible story around how they hit the jackpot.

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wall street reporting to a hire open as target and kohl's numbers are set to cross china cutting its growth forecast for the year. the markets don't care one of the brightest minds on the street tell you where he is fooinl finding opportunity here

in america kyle bass. worldwide exchange rolls on. ♪ >> welcome back and good morning. thank you for being with us on worldwide exchange and cnbc. as always, let's kick off the second half of your show with your executive recap frank holland now with that. >> here's what's leading cnbc.com right now china is lowering its economic growth target for the year beijing now sees growth coming in between 6.5% and 6% for 2019. china is blaming the slowdown on u.s. trade tensions. auto news. carlos ghosn has been granted bail at a tokyo court after three and a half months behind bars the former nissan motor chairman could be released as soon as today. his bail has been set at $8. the million. he must remain in japan after his release. shares much sales force.com are slipping this morning. the company did beat on the top and bottom line in earnings, but

its guidance for the first quarter was weaker than expected sales force co-ceo mark benihoff says he is optimistic about the future he told jim cramer that $30 billion in revenue was right around the corner. we have much more on cnbc.com. >> thank you very much here's how your money is setting up after yesterday's 206.slide we saw the late and midday roll-over. let's bring in ceo i was watching the show last night.

i think it's a very important week for macrodata, and then layer in that you have an ecb policy decision on thursday. i think it's more ltrto, and that means banks can feed again at the trough, and then you have fed powell again on friday you have a ton of fed speak. payroll number on friday pmi's, ism, you name the initial. it's happening we're confronted with the global economy. we're confronted with, remember, a growth fear is worse than a recession fear a growth fear is significantly worse than an inflation fear i think that's what the market is deciding to determine whether this week we should focus on

have you all these things that you mentioned. of course, our fed overshadows that all is our fed and its new dovish, newish dovish stance, so important that even if we get -- we don't get a brexit deal, if we don't get a trade deal, are we going to be okay from a market perspective >> well, i think you're right. if you think about the most important development of the last two months, it's not that we've been slowly easing into the concept of a trade deal that we still don't know details on, but you can make an argument that a lot of this has been priced in. yes, i think the fed is the predominant player, and to be clear, the fed is in a very difficult position because the fed who targeted asset prices on the way up must understand that asset prices which equals financial market conditions will be suffering as they remove more we may even hear more about balance sheet normalization on friday that's effectively the title of powell's speech. the fed to me still is number one. if we have easy policy and let's leave aside whether that's the

right medicine for the long-term for the markets and we could get -- central banks are probably a big problem for us as we think about what's going on >> there are three big things that i do not understand in life right now. >> okay. i don't know if i can help you >> kardashians, the mets, and why the chinese domestic stock market is up 22% can you help us with one of those three things >> aa long suffering mets fan, i t.n't appreciate you firing that the kardashians, i'll leave that to someone much smarter than me. china is up because, first of all, value wrags wagss at some point start to matter. i think people who equate the chinese stock market with a chinese economy are also off base i think the relate is in you look at how.

>> i think it's probably bottom for the short run. i actually think china continues to go higher you get a place where valuations become compelling. at this point i actually stayed long that trade, but i do think that china can continue to run >> listen, they came out and cut their growth forecast. they cut the number of jobs they expect to create 13 million down to 1 is million.

in their version of quantity takive easing, which drove our markets so strongly for years. we've talked about the fed and ecb. why not. why not the people's bank of china? the reality is that they have a lot of different tools in their toolbox. we've always argued that their transition to a higher value added economy was going to be challenging, but, yes, i think china can continue to grease the rails. people talk about, hey, china can outweigh us -- outweight us in a trade war they're playing the long game. bottom line is they still have to feed their economy, and i think everybody knows they have a credit issue, and that really was what they were addressing. you had record credit expansion in china in january and february you tell me what they're doing i think that means they go higher >> four years ago the shanghai composite was at about 4,500 about 50% higher than it is

right now. even with the gains that we just referred to. >> yep >> now, way off the 2008 highs do you think that the shanghai composite will get back to those levels, tim? the levels of four and five years ago? >> well, i think it's an index whose comboneents have changed dramatically since then. i think the good news is that the msci free weightings and inclusion means there's an enormous amount of passive money that continues to chase that index, whether it's reality or not. i would tend not to look at where the levels were five years ago. if you look at eye merging markets overall, if you look at the nsciem it's massively underperformed it's probably still down relative to the s&p about 50% from the peak of where it was in april 2010 if you have been investing in this asset class in a static way, you've really underperformed i think the components of investing in asia and emerging markets is that you have actually picked stocks along the road and a lot of the big industrials state-owned entities if not is the way to play it, and they're still heavy weights

in these indexes >> great analysis, as always by the way, if china can do this, your mets can win at least 57 games this year that's the under-over. >> i'm heading to -- i will let you know if things are happening. >> talk soon let's find out what else you are going to be talking about today. >> spectacular news giving hope to a lot of people still

suffering from hiv fantastic news >> you don't hear a lot about it in mainstream media, but it's still in communities of color, the lgbtq. great news mystery solved multimillion-dollar mystery solved, kind of sort of. the winner of the recordbreaking 1 .5 billion mega millions ticket has come forward, but they're staying anonymous. all we know about the winner's identity is that they reside in south carolina because that's where they will be paying their $61 million in income tax. the winner has elected to take the lump sum of nearly $878 million. a very wise move that's exactly what i would do >> okay. i got a couple of things here. i need extra time for this there's two things that are amazing. number one, whoever this person is, let someone go in front. there's another lottery ticket person behind them, and they said, no, please, you go first think about if they both chose computer generated numbers now, maybe they picked, like, their grandma's birthday >> you don't p >> if they went with computer-generated numbers, perhaps that person won that award because they let someone

go in front of them in line. >> courtesy pays >> number two, very rough math, folks. don't be coming at me on the twitter or the math thing because i'm making a point here. loo et cetera go 877 million one time check put that into a tax-free federal tax-free 3% municipal bond 26 million federally tax-free income every year. 7% state income tax rate in south carolina 24.3 million tax-free income of year. >> that's amazing. forever without ever touching that 877 million dollars >> that kind of money, it's boring, and think about that 24 million a year in tax-free income

>> for a week or two, and i would disappear. you would never see me ago >> long island >> staten? >> caribbean islands caribbean islands. >> okay. >> which one >> yachts. >> go yachting >> i would really focus on boats, power sports. i would own jetskis. it would be amazing. >> you have to make it a verb. yachting >> or go riching be sure to set your clocks forward an hour this weekend you want to spring forward the sun might be setting on daylight-savings time in the e.u. european union committee voted to end the biannual clock change the commission put outen aon-line survey and 84% of respondents were in faufr of ending daylight-savings time for good it's daylight-saving time. the measure still needs support from 28 e.u. nations >> i thought -- >> typically, it's such a simple thing, and they have to take a couple of years to study it. ridiculous >> we saw brexit

>> saturday night is the worst out of the year for us on this schedule because we lose an hour of sleep i like it overall. raise your hand, america, if you who like to get rid of daylight-saving time why do we have it? >> farmers >> who cares 98% of farms are now corporate-owned. it's 4:30. it's dark in new york. >> i looic it when it goes back. it springs forward, it drives me crazy. >> you see that weird lamp i have you know why i have that so i don't lose my mind. >> is it working >> what do you think, frank? i'm on the fence >> me too. coming up, flying high the one stock that has soared above the rest this year, and why it's so important to the dow. first, a worldwide exchange exclusive interview. heymann capital kyle bass on the record more of thinks thoughts on china and why he is raising the red flag on u.s. stocks. stick around (danny) let me get this straight. after a long day of hard work... ...you have to do more work? every day you're nearly fried to a crisp, professionally! can someone turn on the ac?!

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>> not moving along right now, but the company rejecting barrick gold's 17.8 billion hostile stayover it would have created the world's biggest gold producer. it says, though, it may not be done with the fight.

>> making about a 500% return. we talked to the vocal china critic and asked him about msci's decision to increase weighting for i think the ultimate arbiter will be the ek change rate between their domestically held currency and the rest of the world, and so there are cross rates between -- the basic large currencies are not the world, and i think that exchange rate will end up being adjusting the most >> how do you play that? it seems complicated

i think for the general population listening, i think that you need to think really long and hard about investing in equities of a country that has no lul of law. to the extent that things go south you as a westerner in a chinese bankruptcy, you're not going to own anything. i think that all of the chinese stocks in hong kong, you can put the word tracking in front of it you own a chinese tracking stock. you don't own anything as far as assets because when things go south, you as the westerner will be left holding that >> msci just raised their weighting on their global indexes. they made chinese stocks 20% from 5%. not a 5% to 7% jump. 5% to 20%. >> yeah. you know, msci, i know they were

pressured. i don't know if you saw the journal article about a month ago. if you look at the chinese purport 15% of global gdp, at the current exchange rate with the dollar, but if you look at swift, the global currency settlement system, less than 1% of all cross-border swift transactions settle in the chinese currency i don't know how msci can give the chinese equities a 20% weighting when chinese currency settlement is less than 1% of global currency settlement it's kind of -- it makes sno sense to me, and in the end what msci is going to be doing here is causing a lot of people many losses when this thing turns south. >> are you betting against the u.s. market in any way, kyle >> no. you know, i think the u.s. is

kind of the tallest midget at this moment in time. we knew just when you look at the globe, all the subcomponents of chinese industrial production are kind of, let's say, they're all down except energy, and the consumer in china is actually down the most. when you look across the globe to europe, you look at italy entered a recession a few weeks ago. all the subcomponents of germany are dropping as fast as they did in 2008. it looks to us like southeast asia is headed for a recession in 2019. europe is headed for recession in 2019. the u.s., the kind of fiscal impulse from our tax stimulus is going to wear -- be wearing off towards the end of 2019, where i think the u.s. will, you know -- the world is is not going to have a recession, and the u.s. will keep growing. i think you're going to see the u.s. have a minor pullback in 2020 >> are you betting on u.s.

stocks >>. >> whey think is likely to happen is u.s. interest rates are going to head back to zero in 2020. >> you are betting on bonds? >>. >> we're long a lot of bonds >> wow 0% interest rate seen by kyle bass by 2020 you can see more of that exclusive interview with kyle right now on our website cnbc.kol we go about ten minutes. check it out up next, this year's hotspot the one name that has had a 2019 run fit for the history books. first, betting big on small caps one money manager says he has found the most mispriced stock in the market today. it's all about dallas. craig hodges with you next no not everything, i mean you're still blatantly sucking up to me gary. brilliantly observed, sir. always three steps ahead. six steps ahead. sixteen.

so many steps. you done? a million steps ahead. servicenow. works for you. in the transportation industry without knowing firsthandness the unique challenges in that sector? coming out here, seeing the infrastructure firsthand, we can make better informed investment decisions. that's why i go beyond the numbers.

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joining us is craig hodges, ceo of hodges capital management joining us on set. craig, good to see you >> nice being here, brian. thank you. >> why is commercial metals, cmc, the most mispriced stock that you see in the market right now? >> i don't understand where the stock is being priced. they're having the most success. this is a company that's in the rebar business they made a game-changing acquisition here this year where they bought it is assets here in the united states. they're now a 50% market player. they'll have a 50% share of the rebar business here in the united states. the stock is trading at multi-year lows. six times earnings this is going to be a very -- it seejz like it's being treated like other type of steel -- >> if you believe that the economy is going to slow down, maybe not going to recession, but even slow down, there's a construction, which needs rebar, and you're going to get hurt >> i think there's an infrastructure bill coming, and if you look at what's going on in the company, you know, remark goes to just about every type of building, and that's going to be a big money maker, i think, going forward.

we think potentially the company could earn $3 a share. that's kind of the acquisition that goes from a two to three time potential this could be a $40 stock here in a couple of years stock is trading around 16 right now. i don't think the market really understands what they're doing and how well they're doing stocks are tashl how long have you owned it >> we started buying it around six, eight months ago in the -- on the way down, and -- >> because that used to be a $40 so being now it's a $23 stock >> it was a high multiple. now it's back to a respectable growth rate. it's trading at 20 times earnings they'll grow 20%, 25% for the next five years. they've got about 120 stores they could have as many as 600 this is in the early, early stages of their growth >> could they be amazoned?

>> no. we believe that they actually have lower prices than amazon, and so we're finding that millenials they have a high millennial customer base there we actually believe that these guys, they're going into the hotter housing markets out there, and so we really do believe they'll hit that 20%, 25% growth rate. >> you've been dollar cost averaging on the stock you are adding more, adding more, adding more? >> yeah. >> it was retail that's been a weird ride i don't need to tell you that. >> even housing has been worse >> this is not only exposed to retail and amazon and everything else, but it's exposed to housing. >> if you noticed yesterday, probably the strongest part of the market was the housing stocks we believe that they're at a level where they can make it -- >> you know, another stock you like has been a bizarre one. they're in the silicon carbide

business chips being made ouch this product, silicon carbide, which they're a 50% market share in, and this is an industry that's growing at 50% i actually think they'll actually probably at some point sell off their l.e.d. lighting, and this will be more of a -- >> really? i think of them as a lighting company. i knew they had a silicon business i did not realize it was 50% of the revenues >> it's growing at 50%. >> i great earnings great company. well run company very inexpensive been cut in half in the last six months >> yeah. nice matador at home. craig hodges, great to see you

on set safe travels >> thank you even though yesterday was a weak day for stocks, the theme of 2019 is, ell, running strong none stronger than boeing. according to bespoke investment group boeing has posted the third best start to a year for a dow component in 25 years. the 36% jump to begin this year. only two hot stocks for the go go hay days of technology did better microsoft, 37% jump in 2001, and intel's 41% jump to kick off 1999 of course, we don't need to tell you what happened a bit later on investors certainly hoping the same thing doesn't happen with boeing because the dow is a price weighted index boeing is a $432 stock most of any name it's accounted for $812 for the dow's gain this year in other words, boeing not only incredibly important, but they make aircraft, and incredibly important to the dow you don't invest in the dow that much, but we watch it.

boeing, who knew was so important? random but interesting thanks for watching world wooitd exchange "squawk box" is next

. >> joe and andrew are off today. let's take a look at the u.s. equity futures at this hour. you're going to see green arrows across the board dow futures indicated up by 40 points after falling by over 200 points yesterday you did see a big range for where the markets were trading yesterday. i think the dow strayed at almost 550 point range for the course of the day. a lot of pressure on selling jim cramer was saying it was really kind of forced selling by the machines that took over at some point >> i mean, once -- we got ai very specific technical level on the s&p. didn't make it over there. in the end it was about less than a .4% drop in the s&p >> bouncing back from some of the lows we've seerch earlier. >> a lot of the recent winners were