environment. >> he pointed out that the same store sales number was okay. it was up almost 2%. well, we had it up for a while with our return. >> make sure you join us tomorrow "squawk on the street" begins right now. ♪ good thursday morning. you heard the guys talking about the action we've seen so far this morning futures in a relatively tight range as the ecb does go dovish and announces some new monetary support, big itmplications for rates and the dollar yields here in the u.s. back below 267.

our road map begins with stocks erasing early losses as the ecb announces a new round of stimulus huawei suing the u.s. claiming it should not be blocked from federal government agencies. and facebook, the new vision for a privacy focused internet after a year of turmoil. a bunch of swings in the future this is morning after the ecb says it will hold rates steady through the end of the year. draghi says the ecb slashing its growth forecast to 1.1%. then this new round of long-term targeted refis they did not do what a lot of people hoped they did, which is pop this bubble. >> look, i think reform is so urgent i think there's just way too much emphasis on some sort of monetary policy, not nearly enough emphasis on the kind of work force we have in this

country. capitalism needs to make a rebirth. he didn't attack nationalism socialism is just not working with the subtext you can give the banks all the money in the world but what good does it do to expand if the government is going to constrain you? how do you grow if you know you can't fire they've really got to get away from that. i think he knows that. he's trying to do everything he can. this is back to the malcolm x days by any means necessary. i feel for him he's going to keep rates down. as long as he keeps rates down, what can i say it's not what we want. >> they're going to suffer the most at the same time they're the supposed transmission mechanism for all of this. the banks are the sick dogs and they're still being asked to run

really fast. >> look, the biggest bank deutsche bank. it's a black hole. we don't know what's going to happen here they just allow anything. when i was in milan, the oldest bank in the world, it still hangs on because of the legacy but these banks can't really even lend. i just think they -- look at deutsche bank. geez it's an eyesore. >> is this as significant as powell's pivot in terms of a reflection on slowing global growth >> i think it's realism. i actually think in the end that the movement up in the futures was right. but we have persistent sellers in our country the persistent sellers come from the idea that it can't get better than this we have powell being weak. i think the idea that he just --

i mean, we get so many numbers -- >> eurozone? >> yeah. i've seen many numbers that are below one when they come out it's an auto industry driven country. auto's peaked. autos are a major weakness around the world because so many people work in auto. auto's peaked. it really peaked over in europe. they are not going to grow their economy until we solve the trade conundrum with china china's pretty much frozen we started this thing with china. there's great reverberations everywhere tech companies still having good numbers in europe. industrial is not. then you have brexit what ceo says i've got to tell you they only have four days worth of food. it's like the hms bounty over

there. honestly, the rumors of brexit, you're frozen if you're over there. that's really the story. you know in our country, 40% of our of the seconomy of the s&p i export >> you look at services, domestic services, holding up well we can talk about dollar weakness, but if rates stay low, why is that bad for stocks >> there you go. thank you. that's exactly how i look at it. a lot of the weak nns retail had to do with the fact they were trying to front run the 25% so they had tariff issues we had the rails on yesterday. the rails were a little captive to how much -- dollar tree is

one of the biggest importers from china they tried to shift stuff to vietnam. the big problem is you don't have the infrastructure. you don't have these gigantic ships. i do feel again stastasis >> you're digging into that thesis. >> it's driving me crazy you want governments that favor expansion. draghi bought that he wants to do everything he can. these country versus to deal with the fact that their banking system is corrupt and bad.

deutsche bank, put that on your screen, because that's going to tell you about whether europe's going to come back it's that important. >> right the structural changes are not getting attention but they're getting palliative care. >> yeah. i'm worried about dnr, do not resuscitate. >> speaking of all of this, huawei is suing the united states the company says a law limiting its u.s. business was unconstitutional that lawsuit marks the latest confrontation between china and the united states. does this say reduction now in trade deal optimism? >> i think they're going to be the first to be thrown over. that's how the chinese express interest they say, listen, we don't support huawei's suit against the united states. that's the way to show that you mean business. i think it's a little absurd they sue

when you sue the u.s., you tend to not really have a great record versus the u.s. it's like suing muhammad ali you didn't win a lot against muhammad ali that is going to be a very ill-advised strategy by that company and i think they will be thrown over. >> you mean thrown under the bus by the chinese government. >> yes i always felt that huawei was an extension of the government or at least the pha the pla is in charge of a lot of this i do think huawei will be thrown under the bus. >> so you're no less optimistic of maybe getting a signing ceremony at the end of the month? >> i don't know that it will be the end of the month the chinese hurt themselves. there's a great article in the journal about how they're using the belt and road initiative to

go to italy. italy is this poster child for needing reform china's got to stop the expansion in our face. i know the president is supposed to be very sensitive to the dow. he should know the largest capped stock, the guy who runs it, it's cook like make food >> we'll talk about that >> i do believe they can get a trade deal but the chinese have to stop doing stuff right in our face. >> are you of the opinion that -- i mean, the narrative right now is china deal prized in, fed pivot priced in. now the market is wrestling with high yield implications, new supply coming online is that why we're sort of resting here >> yeah. the deluge of ipos is coming

i recognize that their stocks are just in for sale every single day watch the hmo. they are on the border of taking out their christmas loaves that used to be the hottest group. that's a sign that mueller comes out with negatives on trump, democrats regain, health care goes down. i mean, literally i'm hearing that narrative that's like a three-year narrative. watch that group if that group takes out december lows, the negatives are going to do a little win here. >> softbank announcing it's launching a $5 billion fund to invest in tech startups in latin america. >> traditionally softbank has been a company that has had very few investments in latin america. we see it every day, the

emergence of new tech companies coming out of latin america. we're launching a $5 billion fund which is actually about twice the size of all the combined funds together. >> is that all, just twice the size of all the combined funds focused on latin america >> we think the time is right. >> why >> you start looking at the 200 venture back companied in latin america. there's 13 unicorns, companies worth more than a billion dollars. they have a middle class growing at a fascinating pace. it's a region that endorses technology in many cases, it is the most important market, brazil and mexico, of many of these new high-tech companies. when we look at all the changes going on and the amount of investment going in, we thought it was the right time for us to go in and replicate what has been done throughout the world.

>> fabulous. when i speak to a lot of companies that do digitization and cloud, brazil's strong, mexico is strong the numbers are very good excluding venezuela. >> interesting politically brazil's had a couple of crazy chapters in recent years. >> there is a remarkable resurgence in the tech world their companies are digitizing if you look at the latin america line items for all the techs just reported, it's up cisco is doing quite well there. remember, the chinese are there very heavily. >> yes chile especially on raw materials. we'll have to talk to faber about how things are priced elsewhere in the world. >> right look, i think we've got to focus

a little more on latin america because the numbers are getting better it's getting a bad rap because of venezuela. there's a lot of capitalism in latin america. even in the chaos that is brazil, i see green shoes. >> futures have been going back and forth between the red and the green. when we come back, facebook makes a pivot when it comes to privacy. we fill you in on zuckerberg's new strategy -driverless cars... -all ground personnel...

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do you guys sell, other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. get $250 back when you pre-order a new samsung galaxy. click, call, or visit a store today. facebook planning a new emphasis on private chats. zuckerberg said the company would encrypt conversations on more of its messaging services he said in a few years direct messaging would dwarf discussion on the open facebook news feed zuckerberg said the tradeoff is worth it because users want better control of their data some argue this is the biggest pivot since the shift to mobile.

>> well, it really is. they're on a razor here because what you really wanted was a system where they patrol t wall street wants more revenue washington wants more regulation this is the self-regulation that we're looking for. i still come back to the fact that the company versus ies hav to advertise other than google, amazon and facebook. i know that zuk is talking about how spending is going down i think that's more important than what the bears are saying about facebook facebook is going up because their spending is going down i think it's great they're doing something about privacy. it actually bought them some good ink in the "new york

times. incredible >> why did the stock barely move >> i think people don't know whether it means you have to take down numbers or not i think that there's very much right now a split decision on facebook but the stock has moved a lot. i think it's going to be decided in favor of the bulls. right now we have a profit taking move. the watch nxp. the rumor that samsung was going to buy them was killed it still goes up maybe today is the a day that the semis can have a little bit of recovery. >> for all of zuckerberg's critics, walt mossberg for

example on twitter said, how long has he believed this? an hour, a day can you blame people for being cynical? >> not at all. unless they changed their people and put a real grownup in there, they made no changes in personnel. you find some retired federal judge. they got some people on some panel there. you put a retired fed judge in the board room who actually cares. that's what people do. they get someone with gravitas then they can say this guy's in the room if the guy's in the room you have to change the policy because you can't buy those guys that's the problem so you have to keep them out of the board room behind the scenes, we're all kind of aghast that they didn't realize let's bring in somebody, somebody who worked in the justice department and said please help us

facebook just kind of said hey we're going to weather the storm. that was a good article in the "new york times. i think mossberg is right. the next five will be negative >> five? >> "new york times" articles will be negative >> we'll see what the opening looks like as futures are keeping us guessing a little bit. servicenow put our workflows in the cloud.

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waiting for the opening bell let's get cramer's mad dash. >> kroger started going down friday on a not confirmed piece in the journal about how amazon was going to do fwroesh groceri. this was not a good quarter. they missed on a whole host of lines. the gross margins were bad the same store sales were not good they have their work cut out for them this is daskt situation. y they cut a billion dollars in cost savings digital sales were up very big i don't have anything that says buy it because they're not giving you anything that tells you to buy it. >> why is that guidance so relatively good? >> that is the saving grace. what they're saying to me is, hey, listen, this is your one, stick with us, we're on the way.

the stock is down so much that i wouldn't sell it here because they still have a clear path to do what they want. it costs them so much more money to do what they want and the margins got hurt i have faith if amazon doesn't decide to do laser focus destroy kroger, they can come back like some companies that have come back against, say, the auto parts initiative my favorite thing about kroger is that sarah is from cincinnati and kroger's in cincinnati nice people, nice people i throw that in. >> then we have this other story that amazon is going to shutter its popups. >> michelle goss, i think they're shifting their way the popups don't have parking. when you go to a kohl's they

have more parking than anybody because they're a strip mall you don't need popup stores when you have parking lots. kohl's was up big yesterday. i like kohl's very much. really good. >> we'll see how kroger opens. >> sarah's from there. >> she is. >> the bengals, you know, i don't know what else >> cincinnati chili. >> absolutely. that's very good it's a pretty city >> opening bell in just about 4 minutes. don't go away.

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♪ each day, brings new possibilities. that's why you need a partner dedicated to helping your company reach its goals. u.s. bank -- the power of possible. you're watching "squawk on the street." the opening bell set to ring in just about 90 seconds. we're watching europe closely obviously as they go more dovish at the ecb, cut a bunch of forecasts, offer some new support. talked about huawei and facebook as well. i guess last night you continued to cover bmy, right? >> it's really incredible.

st starboard came out and said we think it's being done as a defensive acquisition. he point-blank said that is untrue he i think he's very convincing i think he's going to win. it is interesting to be able to slag him by saying he was talking to somebody who did this they made an acquisition in order to destroy their own company to save it when i spoke with the good doctor, they're not doing that that's a false narrative starboard has to retract it. >> we're going to hear a bit of sound from last night in a

moment for the time being let's get to the s&p 500. the big board is goldman and motif celebrating the launch of five new etfs at the nasdaq. it's girls inc. of new york city empowering girls and young women through direct service and advocacy take a quick listen. >> we did talk to our shareholders they're important to us. we disagree with them. i believe this is the best deal for us we have looked at the acquisition of cellgen and we are acquiring a number of promising molecules in the pipeline there is more than 20 in phase one and phase two clinical trials this is the best deal for

bristol myers squib. >> he even said there was an acquisition because a crohn's disease drug doesn't seem to be working. of course it is really a battleground stock celgene i have faith not only that this deal will be done, but bristol has to do that aviva is not as good as keytruda bristol need celgene we need this pipeline of celgene. i think they've got to do more

homework >> in the medical space, i know you're watching allergen >> i struggle with allergen. the theory here is that the reason why that stock has been going down pretty aggressively is that this drug was not going to work. that's why the stock is down it was down 7 last night it's now up because the analysts are saying, listen, it was already in the stock i have to tell you there has to be some change at allergen because there was one of their six stars. in many ways other than the cgrp pill for migraine, this is really the only other one. i regard this as a true disappointment i don't think the stock should be up, but i think the stock is going up because people believe the company is going to have to take action. otherwise the stock would be down much more this was an important drug and it failed. no one talked about the j and j

drug which is incredible i think it's going to be a blockbuster, billion dollar drug in 2020. j & j is winning in that war and al l alergan is losing. i regard that as more bottom than top but i do think that when i look at the actual numbers, we better have a strong spring selling season because otherwise the bears are going to be right. it is a very tough market for housing right now, but you have to believe that rates stay low and they'll have a decent selling season

we should be doing like 40 minutes a day on student loans doctors aren't even able to pay their bills and are losing their medical licenses >> millennials especially and genx aren't bidding for starter homes the way they used to >> a starter home in san francisco is 1.5 million i looked at a place for my daughter, a studio i thought they were talking about rent for the year. they were talking about rent for the month. if rates stay down and we get good weather we can have some good news. i am more bullish in general than a lot of other people if you want to watch facebook, facebook's really the perfect one. the people who felt that it's great that they get on the good side of the regulators, they want to buy it people who think the numbers come down, they want to sell it.

right now the sellers are winning. >> transports, this is where we bring it up again. down nine straight days, longest streak since 2009 now. the divergence is increasing from the industrials that's not good, is it >> no, it's not. frankly, wow there's nothing good to say. fedex does go down pretty consistently the rails went up too much, precision railroading. there were some very good interviews we did with the railroad ceos. delta came out with numbers that were very good the trucking spot rates are down i think it should be more mixed. but boy, t why do you think that powell pivoted you think he pivoted because he put his thumb in the air no powell's not blind. >> others have said that about

the beige book yesterday that validated his reversal >> let's not go rear-view mirror i think powell's ahead of these things i think powell is truly trying to get it right. draghi -- >> rigorous? >> i think he is ricgorous i flipped on paul because the facts changed. i did it first, carl he didn't do it first. >> you get the credit. >> the bank stocks go down every day because people thought we'd have a little more inflection in the curve. the only thing that's working is speculation. people think that apaloosa is going to do something today. >> goldman, amex, jpm are all pretty much leading the dow lower about 92. >> it's painful. these are widely owned stocks.

they still don't yield enough. bank of america had a really good quarter he's buying back 7% of the stock. nobody cares nobody cares, carol. >> how about burlington down ten. >> they missed burlington, look, i was trying to find positives because burlington is such a great stock. the inventories were up big. ross stores had a miss, but the inventory was not up big you have to let this one rest. this has been the horse. let it rest. don't try to call the bottom today on burlington. >> do you get in front of costco tonight? >> costco has historically done great numbers and sold off you get in it tomorrow you don't have to buy ahead of

this this market is a little unforgiving. right now we're in a down mode i think the down mode is trumping everything because it's all etfs you saw goldman issue 72 etfs this morning i point out that the market wants -- i know this sound a little circular reasoning but the market wants to go down. so i can't get in front of costco >> couple interesting calls in the beverage space >> how about the fact that credit swiss trashed the dew dew is the preferred drink for all gamers that have to stay up 24 hours. >> because of the caffeine

content. >> exactly i treat myself to a diet mountain dew every friday. that's my vice i think a l they like constellation. constellation better start going up pretty soon you're really buying canopy >> bruce is on later today to talk about the martha stewart partnership. >> constellation made the $4 billion bet on bruce and bruce has 30% share. they will inherit the earth. martha stewart has always had game as far as i'm concerned. >> we had santori on yesterday net cautious, i would say.

>> look at the beer numbers. they're terrible you've got to look at the beer numbers in oregon. i think constellation is a play on cinco de mayo, to be honest i'd be very careful about anything beer. i like the browns when it comes to liquor. even johnny walker red in the home depot it has turpentine and johnny walker red, same shelf. >> another day a bit on the downside it's the market leadership

that's sort of flattish to down slightly that's happening again remember what got us out of that december 24th bottom, semiconductors down again today, bank stocks down again today, transports, industrials which is including the transports these are all the leadership stocks that have been rolling over a little bit in the last seven or daeight days today we have mario draghi also the fed pivot see these european stocks here mostly bangs now, mostly autos to the downside and some of the big industrials like bayer this is a fascinating pivot, leaving rates unchanged. the ecb was supposed to be raising interest rates this summer that looked like it's out the

window now eurozone growth was 1.1% it was $1.7. that's a big downgrade remember what's going on here. the bar for central banks has gotten much lower than it used to be. there is no recession out there. there is some weakness that we're seeing this is the hint of a slowdown they're caving already we have the fed pivot and now we have the ecb pivot let me move onto talk about the markets here since the end of february we've seen some things rolling over a bit. the s&p 500 which rallied 17% from the december 24th low is 1% below where it was semiconductors, banks and industrials, those were the market leadership stocks that led us out of that december 24th bottom obviously we're starting to hit the limits of what we can do with the current rally we've talked for the last two

weeks about how much more room would there be left to rally the valuations are expensive we had tremendously cheap valuation at the end of december, 14, 15 times forward earnings now it's not now it's 16.5 depending on your earnings but it's pricey right now. the major issue is those weak global fundamentals i keep pounding away at what could get us out of this? how about if the earnings revisions that are downward stop -- on january 1st, the first quarter estimates we reup 5% it just collapsed in the next four or five weeks by february 15th we were negative that's when we all started talking about earnings recessions and things like that. today it's down 1.3% for the first quarter. the rate of decline has slowed

dramatically if this continues to the very end of the month, quarter is over, we will traditionally probably be positive for the month. that's because analysts are usually wrong by about 3%. why? because the companies are conservative in their guidance and the analysts go along with it i'm hopeful that we will start seeing some more positive earnings commentary go through the middle of the year on the other hand, if everyone comes to believe there's a recession in 2020, then all bets are off. if there is no recession in 2020, you can very likely avoid any serious declines in the stock market later in the year >> morning to you, rick. >> good morning, carl.

well 248, two-year note yields down four basis points looking at the three day of tens, you can clearly see the glide path is lower. notice where it's hovering, right in between 8 and 9 basis points let's open that start up to the fall of 2016 because we are toying with a closing yield that we haven't seen since then equally, basically the 8 basis point low close yield from early in february of this year you see it on the right side of the chart. let's stick with europe. euro versus dollar if you're pushing forward all the things you've neglected to do in the past, maybe you'll keep things floating along but as everybody has been discussing today, the banks, the banks. the banks are the transmission

think took the credit crisis indeed the transmission just is slipping a little bit. you see that the euro versus the dollar has fallen dramatically how far? we are very close to a 20- month low going back to the summer of 2017 the dollar index is just a mirror image of that we've jumped over 97 remember, the highest close we've had since the summer of 2017, that same date i talked about with regard to the euro, our greenback is within about a third of a cent of that level, 97.57 was the 2018 high. that's where you want to watch every time the dollar index gets over 97. there's a bit of a squeeze going on let's see how the trend figures for the rest of the session.

>> we're going to watch that dollar action. when we come back canopy growth's bruce linton on the company's partnership with martha stewart

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♪ the president uses nicknames for many people, elizabeth warren, hillary clinton, jeff bezos to name a few, and in a meeting with ceos at the white house yesterday, the president had this for one of the country's most prominent executives, tim cook >> you've really put a big investment in our country. we appreciate it very much, tim, apple. >> that's not the first slip of the tongue for the president last year he called lockheed's

ceo by the wrong name. >> maybe we change the name so we don't make the person look bad. one of the things that stands out as let's just say the president, he's familiar with companies. i used to advise him about what to buy he loves verizon he knows companies. >> very conversant in public. >> yes. >> of course, president meets a million people a day. >> it was funny though aaron levy of voxx treated that to be fair this is successful when you talk to michael dell. >> to be fair, he missed his quota badly. he's michael and he's aaron in a box. yeah he just want to criticize. you don't have a bad batting average you don't go up against the batting. his batting average is about .180 he ain't no bryce, aaron.

>> we're watching the market here dn 4,ow21 a bit of a weak open on this thursday. we'll get "stop trading" with jim. don't go away. ♪ at pgim, our bottom-up approach uses a technology lens to identify long-term winners. from energy... to real estate... to retail. finding such opportunities for alpha is the true value of active investing. and around the world, you have a partner in that pursuit. pgim: the global investment management businesses of prudential.

the global investment management i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars. do you guys sell, other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. get $250 back when you pre-order a new samsung galaxy. click, call, or visit a store today. dow down 235, back below 25,5 and the s&p below the

200-day moving average, the first crack below since valentine's day. >> we need a bounce today. some of our leadership has been taken out. facebook being a real leader in the last few weeks i want to look at a & f. put in a real good quarter going from a sell to a hold. that's the one if they crack this one it will be a burlington story. burmgt burlington down really badly still some changes at kroger they made some changes at kroger today is a fulcrum day we should bounce they erased a lot of this year's gains and if we don't bounce i think obviously there's people who fear the big sellers, and i wish that there was more to it the earnings does not merit this the rates don't merit this, the ecb doesn't merit this this is trading by algorithms so don't get too panicked here.

understand it's institutional selling. >> but i'm just curious. the average intrayear drawdown is 13% usually, right? >> right. >> so at some point you would expect a 20% rally to get eaten up >> i think we're pulling back and i think that there's just -- it's an across-the-board pullback but if you have good stories it's good to watch abercrombie, dollar tree, estee lauder a good story. watch the good stories if they crack those, we're not done those are the three. put them on your screen, if they crack those they are not done, but if they hold up you know you've got new leadership. clorox, a big story, big credit suite credit constellation which they attacked pepsico. really, are you really attacking the dew? that guy has to do the dew otherwise there's a lot of -- there are stories i like here, and i don't want to be overly

bullish in the environment where i see big sellers. >> sure, of course. >> disney lots of positives again. i would want to give bob eiger a pay rays if he beats the -- >> unlike abigail disney. >> how about that. >> tonight, by the way. >> one of the real david stories is this incredible story of barrick. we've got mark bristow who called me a sissy for not wanting to mine in africa. i like this job, but if i why to i'll do that, too. >> fun hour. >> we missed something >> "mad money" at 6:00 p.m. tonight. s&p is down almost 24 points and the dow down 230 ♪

♪

save like a hero with synchrony bank, and catch marvel studio's captain marvel in theaters march 8th. ♪ >> good thursday morning welcome back toes on the street. i'm carl quintanilla with sara eisen. faber is on assignment we're bouncing a touch here. down down 223 and s&p down 21 as the ecb goes dovish and cuts a

bunch of forecasts >> our road map starts right there. draghi speaks. investors listen stocks extending their losses as ecb president slashes growth forecasts. >> and the canopy growth's ceo. >> and we'll speak about why martha stewart is partnering with his company >> so stocks and the euro are seeking this morning ecb president mario draghi is cutting growth forecasts, announcing more loans for banks. other steve liesman is here with all the implications from around the world. >> good morning, the u.s. central bank, a surprise moves of dovish moves reversing course from last year when it was tightening up and downgrading its growth and inflation action. actions taken by the ecb it extended its low-rate guidance saying it will remain low through the summer and remain at current rates to the year end

launched a new lending facility yield and it will reinvest the proceeds from qe had been doing that, but now it looks like it's doing that draghi pointed to domestic and global factors for these policy changes. >> the persistence of uncertainties related to geopolitical factors, the protectionism and vulnerabilities in emerging markets appears to be leaving marks on economic sentiment. >> all of this leading the ecb to cut its forecast. big, big changes 2019, year over year, gdp 1.1. that's down.06%. inflation is the big market and that's a single target central bank down to 1.2% down from 0.4%. that led to a sharp weakening of the euro can you see that in the next chart but also european stocks

112.29 is the number down all morning let's look at a broader index of the dollar that's strengthened quite a bit, and that's probably one of the reasons behind u.s. stock weakness all of this, folks also, tie the fed's hands. they will wonder how much of that european weakness is going to wash up on american shores. wonder whether they have accounted for all of that weakness in their forecast for the u.s. second, they will be hard pressed to raise rates this year now that the ecb is firmly going the other way once again, sara >> so, my one question, steve, is on the reaction in european stocks. >> just one? >> i mean, there's got to be 100 questions out of that this morning. >> i do have a bunch. >> time for one. >> so european stocks, i mean, stocks usually embrace stimulus. they like easing they like a weaker currency, and they are getting all that have. >> you're right, and so what we talk about in the central banking world is a policy response that's commensurate with the change in the forecast.

obviously one of two things here the market doesn't think that given the downgrade in the forecast ecb policy response is either sufficient or going to work, sara i mean, we get to a point where an ecb president comes in and says we're confident in the return of 2% inflation month after month, and it doesn't return, and not only that, now they are downgrading, so maybe there's both an idea that it's not enough and what they have is not going to work anyway >> and also there's this idea floating out there, steve, that they are killing their banking system in the process. i mean, the banks are getting slammed the hardest. they have been choking off all of this easy money for last few year, and here we go again. >> well, that's also a factor. you've had draghi get up there month after month and talk about how effective the tltros are, and we don't see it. now, some of it has to do with factors outside, but we were just talking sara, offset here to the extent with which draghi is owning the domestic weakness.

why is italy negative two quarters in a row? what's real going on inside germany? how much is from the outside and how much is internal draghi is weighing on the outside factors less than the inside factors i wonder if it's time to be more inflictive within the european bank. >> thanks. >> sure. >> let break the down global growth issues and new policy action with our next guest, former economist at imf and citigroup's chief commit katherine mann nice to see you, welcome. >> thank you. >> hi there. >> clearly this was more aggressive than the market expected given the reaction in the euro why isn't it being embraced by equity markets around the world? >> well, i think part of it is the bad news contained in the announcement that growth was actually a lot slower. i do think that what has changed at this point is germany and the german portion of the ecb is

supporting this now because germany is growing relatively slowly germany was always part of the ecb which opposed greater easing, and i think with germany growing slowly because of trade issues and because of capital stocks not working and because of a bunch of one-off things that are not happening in germany. the germans are much more predisposed towards easing at this point the point that you made about banks being hurt by extended periods of low interest rates, and, of course, the -- the other issue that we're back into comparative easing between central banks, the fed moved first to ease and now the ecb has moved. what lies ahead? what is japan going to do? what is the uk going to do and really there's not much -- i mean, not much more ammunition left as you saw with the ecb announcement. >> i don't know. people with looking at the fed speak this week and bringing up things like negative rates here and qe4. i mean, why would you be talking about that openly? >> i think the problem is nothing else is moving in fact, everything else is moving the other direction

i mean, we did not need this trade dispute in the way that it's happened. it's weighed tremendously on global growth. just as the world economy was recovering in sync it took that recovery out, and so my worry is that once again it's the central banks to the rescue. they don't have that much ammunition other factors have to start coming in. we have to start thinking about structural reforms in the world economy to get sustainable growth >> katherine, is this a preview for what the fed does next >> well, i think there's some really fundamental differences between the pace of growth in the u.s. economy and how broad-based it is, how the labor market is still very strong in the u.s., so even though there's some moderation in our projections it's still to a rapid rate of growth, greater than the potential growth rate in the u.s. economy so the situation in the u.s. is actually quite different from that in europe europe is much more exposed to the trade tensions they are concerned not only how

the outcome of a u.s./china deal might affect them negatively and they are concerned that if there's a u.s./china deal that's resolved, the trade guns might start to focus on one for one directly, so there are a lot of external issues that are much more germane for the slowing of the european economy so it puts the european central bank in the right place in order to pursue an up expected or earlier than expected decision about tltros, but i don't think it changes the outlook for the u.s. economy or for the path for the federal reserve. >> i mean, the way it does is through the currency let's be clear europe is supposed to grow 1% this year. that's a lot different than where we are in the u.s. we're still in the 2% range according to some of the forecasts so at what point does the u.s. feel the brunt of this global slowdown if we get moves like this and the dollar continues to strengthen to this

point where the fed has to act. >> right i think i agree with catherine that we're not there yet what one hopes is we get a good trade deal soon. that will alleviate sentiment. a lot depends on the consumer in the united states. the consumer benefits from the low inflation because spending power is still main taped, and you hope that if consumption comes back towards the second half of the year, investment will start strengthening once again. that's the potential good news that will prevent the fed from again having to reduce interest rates. let's see. i think the fed is betting that the slowdown will be temporary, that towards the end of the year things will recover and for that we need good policy. good policy means let's get a good trade deal sooner rather than later >> catherine, as a follow-on to that, is a good deal with china

enough to weight cap "x" animal spirits or do you have to wait for a follow-on to whatever deal you do get >> a couple of details here. what's the definition of a good teal between the u.s. and china i think is the real question at this point expectations are very high about what that deal might mean for the u.s. producer, the exporter into china, whether or not they might get more market access, whether they might get less imports of certain products that are competing with u.s. producers in the u.s. so that's just about the u.s. and china, but i think there are increasing concerns about what it means if china starts to buy things from the united states instead of buying them from third markets now, that means that there's -- whatever the u.s. might gain other countries might lose, and so that's a great global uncertainty, and, of course, for a lot of u.s. companies china isn't the only market. they care about a lot of other countries as well, and so what the nature of a good deal might look like i think is still quite a question, and it's not clear that whatever special deal we

might get on a bilateral basis on china actually ends up being good for the global economy. >> that's kind of interesting. the purchase and promise thing ostensibly is good for the u.s. but would it come at the expense of global growth >> that's absolutely right what i mean by a good deal is certainly taking some of these issues into account but also a deal which people see as sustainable. that doesn't collapse in three months into a new flurry of tariffs. what you want is to take the tariff issue off the table. >> that's not going to happen. >> well, you have to have a deal. >> that's not going to happen. >> you need a deal to create confidence if you don't have a deal which essentially says we're not going to get into this war again in the next few months, global confidence will stay low. >> so bottom line, you were the chief of the indian central bank if you're still a central banker right now, whether it's in emerging markets or a developed country, what do you do? do you do what draghi just did and ease in response to the global slowdown, or do you sit and wait for a trade deal?

>> i think for draghi you have no option. certainly european banks are weak the trtro was needed, but also with inflation far below the target, he has no option but to say we're doing everything we can. he can't go back to qe once again but he can limit the effects of the qe winddown by saying we'll reinvest. he's doing what he can without being too aggressive my guess is he's still waiting to see if something happens here or if growth continues falling. >> what about brexit there's still no clear out come. what is he going to do if there's some sort of bad outcome with brexit? >> we'll have to wait and see. most people are hoping what happens is we postpone the decision a few months which again, means there's the up certainty. where are you going to invest in the uk or europe when you don't know what the tariff level is going to be between them in the next few months? think you'll postpone the decision. >> i mean, how much can the u.s.

withstand, catherine, where we can continue to outgrow the world? >> i think that it is the case that the global slowdown will have negative implications for the united states. we're not in the u.s. a closed economy inured from the global outcome, so it -- ultimately it does come back to the u.s. shores i mean, it already has arguably. even today in the context of the potential concerns about earnings for large multi-nationals, not only from the dollar but also prospect for global growth being slower than they hoped, so there is a feedback effect, and -- and that's -- we can see how long the u.s. consumer can be robust and keep in at least a cap "x" rising in order to deal with the tight labor market a lot of firms are investing in order to either substitute for labor that they can't hire or to complement the labor that they can hire we do see investment continuing on that score but, you know, you

will maltly, the u.s. is part of the global economy and it can't withstand the -- the headwinds forever, for sure. >> thank you. >> i do want to make one additional point we do have fiscal policy on the horizon in other countries, and that's being deployed. >> all right thanks, catherine. thank you also and congratulations on your new book, and an op-ed xi jinping needs a trade deal just as much as donald trump does. >> when we come back, shares of kroger today obviously in focus and down after reporting results big time why that stock is fueling and martha stewart's big play in can in business and why she's partnering with canopy bruce linton is here to talk about that don't go anywhere. getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy.

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sharp negative reaction. he said the market trades off headlines and does not dig into the numbers. now one number that was fairly disappointing, the operating margin he said the weakness there came from a few factors, pricing which they had to take and investments. this is a company that's in a transition investing in digital efforts like warehouses with their new partnership with the uk's okato i asked him about amazon's new plans as reported first by "the wall street journal" to set up grocery stores, not just whole foods. he says that validates our model, and when this comes to amazon, he says it's going to take them a lot longer to build out physical locations than it's going to take us to build out a digital framework. this is the message you're getting from kroger. the top line numbers,carl, no question, were weaker than expect pedestrian, and that was a big disappointment, but if you look at a number like digital, their sales there rose 58%, the company says delivery or pickup is available in 90% of their stores

the market is not buying this narrative. i mean, they are buying it when it comes to target and when it comes to walmart, but they aren't buying it when it comes to kroger and the reason is environment is so sensitive around the grocers with heavyweights like walmart and amazon making such a big priority and push into their business and that's why you get this kind of sharp negative reaction that you do. >> industries famous for having thin margins anyway so gross margin going down is scary, and kramer's point this morning was really their best hope is if amazon is distracted with some other bottle that keeps them from focusing directly on grocery and destroying them in the process. >> i think the best hope is they already have the physical infrastructure they are -- they consider themselves way ahead of amazon on this front, and they are moving fast to try to build out warehouses in the u.s. and digital efforts and partnerships they have been investing with walgreens, for instance, with microsoft on all of these efforts, and -- and they are just trying to be able to tell the story to wall street in a way that's positive, and they

are not getting there yet. as far as fundamentals in the grocery business, they say nothing is changed things are looking better than expected and their results in this transition, first year out of next three, they think are better than expected. >> yeah. >> we'll see we'll see if it corroborates that crazy retail sales number we got a few weeks ago. >> and it's not just because i'm from cincinnati. >> that's what jim said, too. >> though i do have a lot of pride. >> when we come back, the ceo of canopy sgroet here to explain why he's partnering with none other than martha stewart. as we go to break, session lows, dow down 300 and s&p down 28

time for the etf spotlight cannabis stocks take a hit after the news from the administrator scott gotlieb. competition is increasing for marijuana eat yempts the first pot focused trade in the u.s. was m. trade the fund recently topped a billion in action.

stocks up more than 40% this year joining us here to discuss the continued growth in the cannabis sector and his company's new partnership with martha stewart is canopy growth chairman and co-ceo bruce linton. good to have you back at post nine. >> thanks. >> so martha. >> don't even have to say her last night. >> exact. >> i people know who we're talking about. >> how did it begin? >> well, probably three and a half years ago when i got an owe mail from someone alleging to be snoop, and it turned out it was him and his team, and we announced that about three years ago, and then they started doing their pot luck show and we got an introduction to her and over a period of six or seven months of her coming to see what we do, we going to see her making sure, you know, it's all done the right way, we got to the place of a starting ramp of cbd and we went off of that. >> what kind of audience do you hope it brings to you?

>> it causes people to say i've got to really look at this it's from the young ones who think pot luck is hilarious to the people getting her magazine saying i really love her style and what we wanted was to have an on-ramp conversation, and it's been huge. >> i just got a note from rbc's consumer staples analyst they are hold a webinar on the cannabis effect, implications for beverages, tobacco and alcohol. this is touching so much industries which one is on the forefront of working you? >> we've got constellation in and we have cannabis rules coming out and we expect to make beverages and sell them as a product that's really scientifically driven but we're running clinical trials and q4 we would get an indication response on things like sleep. good science leads to great products which turns into the reason why people want them. i shouldn't pick on google google is a perfect example of great science, once it works really well, if you put a name on google like it, it wasn't a

great brand but a great platform and what we're trying to do the same with cannabis, make it so specifically amazing for each of its purposes, sleep, have a party, and when we put a tweet on it would you like a tweet and china and what would you like for your parents in an elder care home that brand will rain for you. >> seems very speculative and we talked to companies like coke and pepsi for instance, and they say there's not enough research done we can't really get into that yet. >> i agree with them, right. the research is being done, and if it has any responses against the indications, the outcomes, the effect of whether we could make a really good sports recovery drink any of these things start to hit, and i think the even bigger guys also going to start to step up and say i'm a big pharma, can i add a zero to what the other guys can really, it's our time to work. >> people are looking at how

legalization is testing out in oregon and california. they see the inventory levels bloated, the tax base not coming in as expected how do you explain in a? >> your toughest market in the u.s. has got to be california. like people were celebrating when it became a recreational legalized and my response was i don't know anybody in california that wanted cannabis before who didn't get it and what you need is the supply chain did tighten up when they tested a lot and what they are looking for is the true medical outcomes that will get registered with the fda and you can actually say here's what you need when you're in geriatric care and here's what you have for migraines but until you have that hit you're selling the same old. >> speaking of the fda do you think policy is change the, gets changed at all with gotlieb's departure. >> i think the file the fda needed is something a number of companies, including ours, have been working on for cbd, but there's another way to handle. you're in new york state and three or four weeks ago new york state started to crack down on

people sellingwith cbd because they are going to govern it in new york state which is why we're investing. put the word cbd and don't claim a medical outcome but list the ingredients. that's a big on-ramp for each market and each state will have to decide whether to step up or are they going to wait for the fda? >> you mentioned the partnership and investment made there. where are you in terms of development and bringing drinks to market? >> yeah. so the science of how to make the drink was something we had been working on. we think weave done a good job on how should it taste? how bubbly should it be? who is going to pay what for what format has been great with constellation so when you put the two together you can think about a great product in a really thought-out brand aiming at segments and our goal is that's a live product in q4 if regulations permit it which by all indications canada will be doing that again which is look north, see the petrie dish and

wonder where does tim pact globally, and q4 could be that window. >> is martha going to have her actual name on a product, a skew >> so, where we started is to say she's an adviser, and you've got to start somewhere, and the best way to look tat it is if we execute competent delivery and show great things, she seems to know quite a lot about everything from baked goods to gardening and who knows, but i think she makes a great adviser and that's a good on-ramp. >> and you're not making any projections about how she might altar revenue growth or anything like that. >> what has happened is it highlights and makes more people aware that this is legit, and i would say -- ivan given a lot of tours on my facility she's top three because of her consideration and questioning on nutrients and how you create stuff is unbelievable, so i think she will be very influential with us. >> just a quick stock question your stock is down 1% which is tame because there's some crazy moves in this industry that's up 94% over the past year what do you tell investors about

whether it's a stable investment >> i was hoping i would come on the show and would you give me that answer. really this is a -- this is an area filled with the potential of public policy change. like what happens if tomorrow state rights goes ahead and thc becomes a main ingredient in each state in the u.s., goes way up what happens if that takes two weeks? maybe more people in germany start getting medical so there's so many different gears torquing you see this public policy change that creates an ingredient which could be disruptive >> bring martha next time. >> i would love to if i get to sit in the middle with those two i'll take them everywhere. >> always great to see you bruce linton with canopy growth. >> let's send it over to sue herera for a cnbc news update. >> good morning, sara, great conversation here's what's happening at this house, everyone. chinese tech giant huawei launching a u.s. court challenge to a law that labels the company

a security risk. the announcement comes as the company tries to fight off u.s. efforts to persuade allies to exclude the company from next generation telecom systems >> huawei is willing to address the u.s. government security concerns that gives the u.s. government the flexibility that it needs to work with huawei. afghan officials said several explosions occurred outside a ceremony attended by the country's president and executive vice president paul manafort is due in federal court this afternoon for sentencing on tax and bank fraud. the 69-year-old manafort could receive 20 years in prison under federal guidelines, but most observers believe his sentence will be shorter. you are up to date

that's the news update this hour sara, i'll send it back to you. >> all right sue, thank you. coming up on the show, new data showing where women are most underrepresented on wall street the ceo of women-led hedge fund rock creekil wl join us to discuss. "squawk on the street" will be right back this is decision tech. it's screening technology that helps you find a stock based on what's trending

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stocks are selling off this morning the dow is down around 250 points that's down for the fourth straight day on pace for the worst week of the year for a closer look at what's driving today's selling let's wring in or cashin, ubs director of floor operations. welcome, art. >> thank you. >> we've got an injection of bank stimulus from the second most powerful central bank in the world, and we're getting a big thumbs down on stocks. why? >> well, you're getting the fact that they need that still plus it's not really promotional stimulus it's kind of salvatory stimulus.

things are slowing down. we're getting more and more reports that this face-off between the u.s. and china is beginning to affect global trade as a whole, and the europe seems to be floundering a bit. you've got nothing good from draghi you're at important technical levels monday you had gone down and had a nice bounce. yesterday we re-tested those lows but we didn't get a bounce and this morning when the market began to erode though broke through the lows and that's when selling accelerated. people say i don't want this risk profile here, so you went through 25,611 and now you're trying to bounce off 25,360, and we'll see. so far it's not terribly inspiring a bounce the thing that viewers should watch for is how do we look going into the european close? they did not get hit that badly, but they seem to have had an

influence on our trading over the last three days, so i'm going to be taking a careful look at what the market does between 11:00 and 11:45 and see where it goes from there. >> are you detecting a real erosion in confidence about china trade, or is this just a waiting for a follow through chitchat about a signing ceremony, for example? >> well, the problem is what's growing is a cynicism that -- and i've said this on air before what trump really needs is a north korean deal, and to get a north korean deal which he can run on in 2020 he needs help from china, so the cynics and skeptics fear that he may take almost any kind of deal he can get with china just to keep them happy, give them the kitchen sink if they need it conversely we're also seeing from the people's party congress

that xi seems to be rather disparate for a deal here you've got the first and second most important economies on earth and their leadership that look like they are desperate for a deal at any cost, and then the market is not really sure that's -- do we really want a deal that's more about natural gas and soybeans, or do we want a structural deal that has to do with intellectual property and other things? >> just looking at our market and some of the more bearish signals. transports are down again. that's what, ten days in a row >> absolutely right. that worries me. >> small caps are down almost 4% for the week, really underperforming. >> and in line with that, the first of the key indices to break yesterday was the russell. now, everybody says this is all about international trade. therussell is not a big player in the international trade market, so small caps, russell it tells you this is more than just china and the u.s >> is today your birthday?

>> let me look yes. >> happy birthday, art. >> this has become tradition, but you'll never guess what this is. >> but i'll know in a couple of minutes. >> art have a great day. >> thank you. >> thank you. >> we love you. >> art cashin. >> happy birthday. when we come back, the ceo of a woman-led hedge fund rock cree as new data is released on where women are most underrepresented in finance. the dow is down 257. don't go anywhere. so, you'll take our clubs straight to the course for just $39.00 ? yup that's what we do. and you guarantee they'll get there? yup that's great! i have two sets. you know ship sticks only ships golf clubs? right?

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something happening in the markets, robert shuller turning just a bit bullish find out what that is on tradingnation.cnbc.com more "squawk on the street" coming up.

tomorrow is international women's day, so we're taking a look at women on wall street and progress towards closing the gap in private equity in particular. leslie picker with us at post

nine with some fresh data. >> progress is the key word there, sara. no secret that women are underrepresented on wall street, but no other area of finance is as male-dominated as that of private equity new data shows that only is in so seni -- only 1 in 10 are women and that number hasn't even budged since 2017 those who do hold roles at pe firms are mostly in investor relations rather than investment professionals who are making decisions about where to actually deploy the capital. another new report out this morning finds a more gender-balanced investment team may lead to better returns in private equity the research studied data from 700 funds and 500 portfolio companies in the emerging markets and found with teams with at least 30% women on board generated returns more than 10% higher than teams dominated by

one gender the study found the same type of outperformance among portfolio companies that were more diverse as well, guys. >> the performance numbers are no joke. >> no joke. >> that's real money. >> joining us now is rockcreek ceo afsanah beschloss. welcome. >> thank you >> with thor outsized returns for more gender equity balanced fund, why isn't there more balance? >> i think the pipeline is very, very limited i was one of the very first partners a long time ago in, 2001 and 2002 and 2003 at carlisle, and carlisle was a real trailblazer i think i was the 12th partner there, and i think, as leslie said, the number of women on the investment side of pe and mentor firms has been really, really

limited. it goes both ways. one is women are not encouraged, you know, or worry about joining the firms, and it hasn't been a big welcome door >> now, several studies have shown that women inch public equity investing >> yes. >> are better investors and the reason why is they trade less frequently and tend to be more risk averse. in private equity you're not really trading as frequently you buy something and hold it for several years. why does the same phenom none hold in private equities specifically >> as you said the data that we worked with showed that companies that had women were doing better on average and companies that were gender balanced and that's the term i like to use gender balanced. we're generally doing a lot better it goes without saying that a lot of goods are bought by women. a lot of decisions on -- on purchases are made by women across the board, whether it was choosing a broker, whether it is

choosing the soap to buy in the house, whichever so having women make decisions about those companies would be natural. >> i wonder if you think there's any difference between the level of progress in say east coast private equity or private equity that's in financials as opposed to where it's engineering heavy, silicon valley, that kind of thing. >> i think the stample size of this thing is so limited that to make really intelligence sort of remarks would not probably be correct, but if you look at lost women coming s.t.e.m. in silicon valley a lot were not born in the u.s. but number of women increasingly joining venture firms is rapidly increasings, and i'm seeing the venture firms are making bigger progress than the private equity two points to mention. one, venture firms are generally smaller but quite a few of them,

if you see they either had women founders in the case of yc and even in the case of andersson they have added more women partners in more recent years so the share of women to others is much higher than if you look at a 200-person private equity firm where there might be one, maybe two, but the really interesting thing about the study that leslie alluded to is emerging market date sax actually better than u.s. data. >> why >> numberun. >> number two, we think about china a and, you know, going to a question in china because these are new areas. you're starting from scratch much easier for twowomen to hav come in both in terms of creating company startups and being in pe firms, so the study shows that the ratio of wimp only the investment side was closer to is a% in china

on average the studies showed, you know, it was a pretty major study looking across, as you said 800 fans and 500 companies were surveyed. the total number were 11% which is much higher than in the u.s. >> i wonder if it doesn't have the same interest where it was born out of the 1980s, wall street, boys club, wild culture with the biasses that were instilled. >> is that sort of conscious bias and his so many things when you're looking into emergency markets they can leap drog and in private equity venture it seems they are starting to leapfrog with more women on the teams. >> it seems like the lps, the investors in the private equity funds, actually want things to change. >> yes. >> they want there to be more gender diversity in the portfolio companies and in the gps. why aren't the gps responding to

this what are some of the reasons behind the fact that, you know, according to the frequent data the gender balance hasn't really grown since 2017 >> so when we did the survey, it showed that close to three-quarters of the group that we surveyed among the investors said that they do think it's very important among the l.p., but when he talk to the gps, they said that only about 25% of the lps bring this up as a topic of discussion. >> i think that is the came in emerging markets as here the same phenom nowhere the one thing that lps talk about is performance and we are talking about performance and what's interesting what lps said in the survey saying they do not kier they did not convey that clearly enough to the gps, and i think that needs to be the next step. >> would something like quotas

for recruitment or promotion work i'll get a ton of hate mail for that kind of question, but does that seriously work? >> it really hasn't. i mean, you see that in some countries they put quotas for board members of both sexes. has not worked, and it can backfire i think quote yags can backfire. you want to have the best people get into the right jobs, so having artificial quotas i don't think helps. what you need to do is start internships. start them in high school. we have internships starting in high school and a number of interns are going into the intern programs at goldman sachs, jpmorgan, credit suisse, and you have to start them in high school or in the freshman college. >> can't argue with the returns. and thank you so much for joining us. >> thank you now let's send it over to

jon fortt with a look at what's coming up on "squawk alley." good morning, jon. >> good morning, sara. things are changing fast in the car market, whether tour the ce coming up to talk exactly that ♪

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let's get to rick santelli and get the santelli exchange. hey, rick. >> hi. well, i'll tell you what, carl, we have the perfect guest, ecb may be effecting the cost of capital. jerome snyder. one of your key highlights, we have been talking about it the better part of six, seven months, started moving up in october when central bank balance sheets went the other way. instead of giving more, they're giving less. ecb changed it today the cost of capital may be coming back down from fear levels last year. >> great point investors should be focused on liquidity management and cost of capital in real terms. we still have to think of relative terms in terms of a

risk free rate in the u.s. we have to think about how it effects risk as pricing on a go forward basis. as a result, there's more volatility in the market as investors digest increased cost to capital in real and nominal terms, focusing on real terms the next few months. >> we live in a binary world when it comes to investing, fed talks about a pause, moves are done next move is ease. same with volatility if investors fear more volatility, their behavior changes drastically in a short period of time, theyget less willing to hold equities. >> simply put, we're an environment we should be expecting more and more volatility along the way as a result, investors have to be poised to add more liquidity to portfolios instead of less, be more active in how they think about deployment of risk assets and layering of liquidity in flowi portfolios having more dry powder in owning short data to assets maybe in

fixed income markets provides lower volatility profile simply, cash might be king for awhile longer. >> the 11th commandment to investing if you like interest rates, based oncomplexion of the turf, gives you an idea where you want to play why risk the long end that's way more whippy, you move to the short end. that was your idea now with the fed on pause, short dated etfs, two months of outflows is that jouadjustment over? >> we have seen outflows as risk assets went from rich to cheap in december, as a result they recalibrated back to fair to rich level as a result, etf outflows have happened in the short period, you look at short dated etfs, some yield 3 to 3.5%, not a bad place to hide out next few months until you get more clarity on where growth

in the united states and around the world is going and recent data isn't bad. we have to take a balanced approach, investors have to prepare for up side potential but down side potential. short dated etfs give them a place to hide out. >> thanks for making it sound easy carl, back to you. >> thanks. rick santelli. sara has another busy afternoon on "closing bell." you have been crushing it. >> we have another big day jeremy grantham rarely does interviews he is known for spotting bubbles and being right, not always the cheer eeest forecasting. thinking to 2000, 2008, his thoughts on markets and current environment on "closing bell." >> see if he uses today as ammunition it has been a rough session. s&p, 2751. "squawk alley" is next don't miss david's exclusive with former ceo of sprint on the

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it is 8:00 a.m. in menlo park, california, 11:00 a.m. on wall street "squawk alley" is live ♪ good thursday morning. i am carly fiorina with morgan brennan and jon fortt. also joining us, business insider foundation capital general partner paul who wiholl. nasdaq is coming off the first three day loss of the year on pace to snap what was a ten week win