good morning, it is 8:00 a.m. at apple headquarters in cupertino, 11:00 a.m. here on wall street. "squawk alley" is live ♪ ♪

♪ good morning welcome to "squawk alley." i am jon fortt, with me morgan brennan and sara eisen carl is off. >> shares of apple are falling this morning down about a half percent, although well off lows ahead of the company's highly anticipated product unveil josh lipton joins us from cupertino for a look at what to expect hey, josh. >> reporter: so morgan, i covered a lot of apple events over the years, this is expected to be a lot different. for one, we may see serious hollywood superstars here. reportedly invitations went out to reese witherspoon, jennifer aniston, jason mamoa

when he takes the stage, it is not expected to be on hardware, it is haeanticipated he will fo on new digital services. we expect a new video streaming service including original content and access to other streaming services like hbo. then apple takes a cut of the transactions a news product that includes content from newspapers and publishers, "the wall street journal" is involved on that front. reports new services would be under that broader umbrella, that services segment which apple is touting as a bright spot, even as the iphone franchise has come under pressure iphone revenue dropped 15% meanwhile, that same quarter, services revenue reached $11 billion, up 19% from earlier the team at jpmorgan are telling their clients they don't believe new services like video will drive big change to the

company's financials in the first few years, but they think apple has what they call a relatively easier path of scaling such a service, given the huge install base. that's key here, a base of 1.4 billion active apple devices. tech analysts say cook needs to keep offering fans new products and services to keep them loyal and engaged. those are metrics that cook tracks closely, often brings them up on conference calls. you do that, you accomplish a couple things. you keep fans on your platform, discourage them moving to a rival, give them fans to buy that iphone, if you offer must see content on a 5g device down the road, that could be another lift to the iphone franchise in years healed gu -- ahead >> joining us, former tivo ceo tom rogers, currently executive

chairman at winview. and joanna stern great to have you. tom, this isn't music. music was hard when steve jobs did it not as a service but down load downloads. in the music world you had to have everything available for download they didn't want piecemeal in the video era, people are happy to have netflix with its content, to have somebody else and piece it together. right? >> well, the music analogy is important. music is the ultimate consumer experience any piece of music ever written in one app, one user interface, recommendations, navigation menu all in one incredibly simple, incredibly elegant. video is not there, print is not there. apple is focusing on video and print. can they get video to the point of simplicity and elegance that

sp spotify and apple music brought to the music world they have a tough road to hoe, but it is the beginning of apple trying to take the 1.4 billion device users and say we will deliver the ultimate television experience by solving for television the way music has been solved. >> i'm not sure what problem apple is solving in the past when it was itunes, problem was digital music, piracy, it is inconsistent, experience is bad, video downloads didn't exist in the way they did before apple did them here it feels like they're saying we can do that too. >> i think today we have to hear what the consumer play is, right? how is this going to help us on our devices. that's what apple has been for so many, for the 1.4 billion devices, all those owners want apple to give us something better, and that isn't any more of the iphone.

sometimes it gets incrementally better last week we had a long slew of incremental updates. today what's different for apple, they're shifting from selling services to sell more phones to just selling services it seems and i think the 1.4 billion install basis important to look at but we have to look at all of the other devices around this is a different play from where apple had been in music. the ipod was tied to itunes, right? it was a hardware, software combination that everyone was getting with apple here we have services that may run across other devices they partnered with samsung and other manufacturers, expecting announcements on that today. >> i want to get more into that. first, tom, back to the point you were making, what is more important for a company like apple, creating content where video is concerned or aggregating all the content that's out there >> creating content is the big deal now, that's what's driving netflix, that's what's going to

drive leading streaming services as it is with amazon also. they've gotten to do that. it makes sense not to focus on library content and go for stuff that's making an impact with tv viewers. but i think they have to use that in some way yes, i think it will be available through other devices, but membership has to have its privileges in some way this is a little like trying to predict the mueller report yesterday morning when you know it is coming out in the afternoon, a lot of egg on a lot of pundits' faces. i'm not sure i want to make a bold prediction of what they say in a couple hours, but i would be surprised if there's not some privilege, some unique spin for the apple device user. the question is how do they take original content, strengthen their role as a tv player, ultimately bring netflix, hulu, youtube around, which they in the aggregate probably account for 80% of streaming viewing, and somehow get those guys to

want to agree that being part of the apple ecosystem under a single roof could make sense for them that's a tall, tall order. i think ultimately that's the goal, and original content is a major step toward strengthening the relationship with the tv viewer to get there. >> joanna, how long has apple worked on re-inventing television and is this time going to be different? >> i think before my life, probably all our life times if we add them up, has apple been a company that long? i think apple has been in the hardware space, they've had the apple tv device that feeds us all of the type of content we all watch. now the question is can we all live more in apple's ecosystem when we turn on the apple tv or samsung tv or roku tv, i think that's the play they made today. back to original content, i think it is vital. what i pay for, i pay for netflix, i pay for hulu, i pay for amazon prime, and i pay for

those because of unique content each of the services have. hulu for hand maid's tale, netflix for "orange is the new black. most of the time, it is the same content all of those are offering, but unique offerings in terms of content we shell out money for. >> talk about the print side of this they're going to have an easier time and "the wall street journal" is part of it like the music business, the magazine business was run over by digital, bad mistakes by magazine executives. tried to do something to recruit, they failed i think where you'll see apple do the spotify version is putting all of the magazines together under one roof, being able for a very attractive price, $10 a month, be able to get any magazine integrated in a way it is at your fingertips anytime you want to look at

something, have it personalized, be able to save it where you want to. putting news into that like "the wall street journal," to me it clouds what they're trying to do it may be very helpful for business users, "the wall street journal" packaged in there i'm not quite sure they need and certainly "new york times" and "the washington post" don't think they need to be part of something like that, but i think when it comes to print, they're going to advance the world of a single stopping point for everything you want to see >> i wonder if they're going to finally have some kind of apple membership which they have resisted, haven't done an amazon prime sort of thing, they want to nickel and dime you for icloud, this subscription here between game, prints, video, when they tie these together, goes together. we'll see. thank you. now to the other big story this morning after two year special counsel robert mueller

concluding his investigate this weekend, finding no collusion between the president and russia let's bring in eamon javers for the latest details >> reporter: good morning, jon a whole lot of reaction to a report that really nobody has actually seen outside the department of justice at this point. remember, the mueller report was sent to the department of justice, to the attorney general's office on friday the attorney general put out a letter summarizing principal conclusions yesterday, and that's what's driven the reaction we've seen through the day. i talked to sarah huckabee sanders and asked her when the white house expects to read the mueller report she said she wasn't sure when that's coming over, not clear whether the white house counsel's office will ask for a copy of the mueller report today or some point this week, but not clear when the white house will see it the president's legal team tells me that they don't expect to see this until ultimately it is released to the public, when that might happen, barr

suggested in the letter that he will go through the material as carefully as he can and ultimately release a version of the report to the public not clear on the timing of that. meanwhile, the vice president is speaking at an event in washington today, suggesting this was a total vindication for president trump. here's what he said. >> the special counsel confirmed what president trump said all along, there was no collusion between the trump campaign and russia during the 2016 election and the attorney general confirmed there was no justice >> reporter: there's a feeling of vindication here in the air at the white house given that the special counsel's office did say that there was no collusion in the 2016 campaign between the trump campaign and the russians who were trying to influence the election there's also a feeling perhaps slightly of vindictiveness at the white house. sanders told me she believes certain people should lose their

jobs because of their role in pushing the russia narrative as she described it she suggested that certain people in washington, she wouldn't name, went overboard in pushing this idea of a russian conspiracy and she said she and folks at the white house would like to see people fired as a result of this >> eamon, i realize it is unclear what the time line is and some of the details we get and how potentially it is released, there are probes and other investigations going on, lots of asterisks here, but the fact we got this initial conclusion, is it going to make it easier or harderfor the administration and lawmakers to work on policies now >> reporter: already very difficult for the administration to make policy it lifts weight over the white house. it was hanging over the president. you saw his tweets he resented the fact the investigation was going on, was frustrated by it, felt badly for

his aides and allies impacted by it so that goes away now that the mueller investigation is finished what doesn't go away is the deep intractable difference between democrats and republicans on policy we have the 2020 election just around the corner, so there's not a whole lot of expectation that a lot of coherent governance can happen out of this town in the next year or so before the election because you've got democrats in power in the house of representatives, republicans in the senate and the republican in the white house, that mixture is not going to change before 2020, so at this point it is an open question, what major legislation can get through that entire process. >> eamon, thank you. >> reporter: you bet >> joining us for how the market is reacting to the news from the weekend, art cashin. good morning, welcome. >> good morning. >> i didn't see robert mueller make it into your market commentary note of the morning does that mean you don't think there are big implications for

investors? >> i don't think any immediate big implications i think this will potentially free the president up to maybe get a good trade deal, you know. you fought off one side, think you have been vindicated now if you're running for election, you have to have a little bit of a plum there secondarily, if aides can convince him, the talk has dran drained the economy and that's what you're seeing here. places that are trade sensitive like germany starting to pick up their manufacturing. the reason the market was spooked friday. >> bad number. >> badnumber hadn't seen one since 2012 it meant their economy is in contraction. not that it is slowing, it is beginning to shrink. the president has to begin to think about can he begin to make some trade deals and maybe perk

up the economy all around. >> art, if the narrative for are the markets is slowing global growth, why are small caps, why is the russell 2000 underperforming everything >> that's an amazing thing i mentioned that in my comments this morning i think what you're seeing is that the small caps have less liquid markets and people decide not so much that they're going to be hurt by a trade problem, but if the market pulls back because of a trade problem, stocks in the russell may be hurt worse because they don't have a deep, deep bid underneath them >> art, what is the market factoring in now when it comes to brexit, and how much risk is there depending what outcome we see? >> i think the market is not factoring in an awful lot on brexit >> sounds risky. >> borderline ominous. what's going on is the end of

this week was the original target date. they said they would extend it out but only if they voted for prime minister may's original package. if that doesn't happen, it will be shortly into april. and it is beginning to look more and more like we will wind up with a no deal brexit. and i think the markets here and in europe and london are not prepared for that. you know, people have been saying since the original vote what's the big deal with brexit. look, the market didn't go crazy. that's because it hasn't been implemented. wait until it is implemented and watch the fallout from that. >> what's the next key catalyst for the stock market >> i think right now the market is trying to see how it feels, it is taking its own temperature, taking its own pulse. you saw this morning we sold off, they started to look like they were going to test the 200 day moving average in the s&p which is down around 2755.

they didn't get all the way down there, so they're moving up and down i'm a little concerned that unless we get new stimulus from apple or somebody else that we're going to have a bit of a problem. it's looking, this is cocktail napkin charting, folks, this is not professional, but cocktail napkins, there's a hint we're getting a rollover top i'm going to watch the market carefully the next two weeks. >> feels like there are two camps, one freaked out by the bond market, yield curve in version, japan was negative 0.95 today, multi year lows and those that say it is accommodative of a bull market the last ten years. which is it? >> it is a little bit of a problem in that we're the only major nation that has not gone into negative territory on the yields, and the yes is will it wind up being pushed there

now, i think the media pundits were all over the inversion. this is a forced inversion you would like a two or ten year, something bigger to be looked at than one that's a couple of weeks versus a ten year so and the other thing to remember is that every inversion is not followed by a recession but every recession is preceded by an inversion. so is it worrisome, yes, is it a guarantee, no. big name ipos gearing up to go public. what does the ipo onslaught mean for the broader sector and market we break it down when "squawk alley" returns $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade.

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a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. welcome to "squawk alley." pinterest is filing to list on the new york stock exchange. lyft debuting later this month, more after that expected the renaissance ipo has risen more than 30%. brian hamilton, co-founder of sage works largest real time database of private company information and mike santoli, back with us at post 9 brian, i'll start with you i'm sure there are a lot of retail investors waiting for big

name tech unicorns to come public, wondering whether they get involved what will be the driving pieces when so many of the companies aren't profitable. is it going to be profit or is it going to be growth? >> it is going to be growth but it is going to be the overall market the ipo market follows the stock market as long as things are okay there, we're going to be fine, but very volatile. look at the companies, look at the sales, look at profits but the market is the big driver for sure >> are you saying that with these companies going public we could be seeing a market top now? >> let's be honest if you're buying now, you're not buying at the bottom of the market for sure. we are nine years into economic expansion. prices are going up. you're not going to get great deals. i will say this. it is not super crazy if you look at lyft and some of these companies, they're about ten times trailing sales and

valuation. it is not nuts it was a couple of years ago it is a paradox a little bit >> mike, there seems to be growing debate with so many big name companies getting ready to go public that are going to be valued in the multi billions of dollars, it could suck oxygen from the room in terms of where investment dollars are flowing how should investors think about it >> it is definitely unique that we have this number of blue chip ipos, multi billion dollar valuations raising more than a billion more or less at once i don't think it is an outright swamping the market with new supply story, in other words, there's plenty of money to receive the deals, but i think you have to have appetite for a certain growth investment, for certain type of business model that's what i think will be tested five years ago, alibaba got done it was bigger than any of these deals is likely to be, that was a market that was a good deal lower. you can get it done but the public market rendering its

judgment on this type of company like lyft and uber, even some delivery companies where it is not just a software business with software economics, it is hard stuff, mediating between real world people driving stuff around and customers that want a great deal that's the question to me. are they going to ratify valuations. >> hey, mike >> should we watch the difference in reception between lyft and uber and pinterest? this company seems to be more disciplined in the way it has grown to put a fine point on it than some others at this point in the year, i'm not sure we have seen investors have a different recession for discipline versus not. >> i think it is a good point. to me, the difference between uber and lyft is 6 with one, half dozen of another. i think they're about the same on valuation metrics but i want to go back to a point mike menti mike mentioned i am worried we won't cover one

thing, this idea of how these guys are structuring their stock. in the case of lyft and pinterest, these guys are coming in and saying look, i get one share, me as retail investor, you get one share, one vote. but the executive team is getting 20 votes for every share. i want to mention that that's bothering me in corporate governance tech guys like me, entrepreneurs like me think we can defy basic common sense sometimes and even fairness, so i want to get that out. it is not a huge deal on valuation, but i'm worried people are following the facebook model which is one for me, two for you. it doesn't make sense to me. i'm a little worried how it drives the tech sector going forward, even though it seems like a net >> worked out well for facebook shareholders ultimately. >> true. >> but not for snap. that's one i wanted to bring up. that's a recent flashy ipo, new

business, advertising revenue, competing with the facebooks and googles of the world are there parallels with the pinterest or lyft or uber that investors should be aware of after getting burned, many of them, by snap? >> absolutely great point, terrific we covered snap a lot as you know they were super overvalued a lot of growth, no profitability, poor net margin so does gravity make sense in the tech sector, does it work, yes. if you've got good sales, valuation, profitability, cash flow, you're not immune from downturn but you're in better sharp. and snap and even twitter, they were like 44 times trailing sales on valuation it took a long, long time for the company to come around as an investor if you invest in something that's overvalued, you're going to wait a long time, especially now that we're

at the top of the market that's my fear >> one thing to keep in mind, one reason the reception with the fund managers, none of the stocks are index this is a way to try to outperform brand new names in the market cap. >> thank you for joining us. and coming up, could the rise of car sharing spell the end of private vehicle ownership? kara swisher joins us with her latest column. and the worst performing stocks in the dow so far in today's session. united health, walgreens boots and intel among them more "squawk alley" ahead. don't go anywhere.

welcome back, everyone i am sue herera. here's what's happening at this hour white house press secretary sarah sanders says the mueller report findings amount to complete and total exoneration

of president trump she says trump will let the attorney general decide whether the report should be released publicly >> the attorney general followed the legal process, he worked with the deputy attorney general who has been involved since the very beginning of this two year absurdity, and they made a decision there was no obstruction, so that makes it a complete and total exoneration. an early morning rocket from the gaza strip entered straisral injuring 7 people. netanyahu cutting short a trip to the u.s. to return to israel. chinese president arriving in paris for a six day european tour aimed at bolstering trade with europe. she will sign energy and other contracts with french president macron later today he will meet tuesday with angela merkel "squawk alley" is back in a moment your employees must love you.

thank you. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you. that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people,

and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley.

no collusion the nearly two year mueller investigation coming to a close and so far mixed reaction from congress let's get to capitol hill and ylan mui with the latest. >> reporter: morgan, lawmakers are returning to a highly charged political climate here on capitol hill today. republicans now on the offense senator lindsey graham, trump confidant and chairman of the judiciary committee telling reporters he will be speaking with attorney general william barr in about a half hour or so.

he also said he feels a cloud has been lifted from the trump presidency >> if you know, lawyers are not in the exoneration business, the lawyer is into making cases are not making cases business. all i can tell you is when it comes to obstruction of justice, mr. barr and rosenstein concluded that the facts did not justify a charge, not the idea you can't indict a sitting president. >> reporter: republicans want to move on from the investigation, but democrats are saying not so fast they want to ensure the full mueller report as well as underlyi underlying documents are made public and calling on barr to testify publicly on capitol hill they say they'll use a subpoena if necessary now, one top democrat is even questioning barr's potential bias, saying he is worried there was a hasty, partisan interpretation of the facts. house democrats have several

open investigations in addition to what the special counsel was considering. they're looking at trump's finances and his ties to russia. but guys, democrats are going to have to decide how hard and how far to push some of the inquiries, whether there's going to be a political payoff at the end of the road. back over to you >> ylan mui, thank you and meanwhile, lyft gearing up for its ipo this week the ridesharing company expected to be the largest ipo of 2019 so far, setting a $23 billion valuation estimate as a high end goal lyft setting the benchmark for other highly anticipated ipos including chief rival uber how fast will ridesharing put an end to private vehicle ownership? the next guest argues that owning a car will soon be as quaint as owning a horse, unquote. joining us by phone, kara swisher. good morning >> hi, how you doing

>> doing pretty well always great to get your analysis never afraid of controversy. i'm going to challenge you on this one i'm looking at lyft's s 1, they're losing $900 billion on 200 million revenue. i was in indiana a couple weeks ago, if i wanted to go to indianapolis, it was going to cost me unless i had a car >> i got that, i understand that i was talking about the idea of car ownership. remember everybody had to own records, everybody had to own different things i think it is coming for the car industry just the way you don't own your phone, you kind of do, you rent it, this idea of lack of ownership is what i'm talking about, i don't mean to say i'm not riding in cars, obviously you're riding in some vehicle. when we move into, i want to get the discussion going, is this an area that will be massively disrupted by the idea you share a car, you have other options.

i understand being in indiana or rural areas, that's an issue it will start in the cities. but i think eventually very few people will own a car, going to physically own a car except if they like it and that's a very different thing. >> but i wonder what you think, this is a key issue. investors look at this as they go through the s1 of lyft and uber right now, the business model doesn't completely work, it is being subsidized, trying to tie in food and other deliveries with it. there arguably aren't enough restaurants to makeup that for the business model how does this shake out? are from some areas people won't own cars and others where they will do models not necessarily work for the whole nation >> i'm not sure if they work for the whole nation i want to get the idea, there are so many creative ideas, i knew it would make people angry.

i wro i was talking about sharing cars, people talk about electric bikes in the suburbs, it can take forms in different ways the idea is not just because it is good for the planet, i did a great podcast about issues of climate change, and it is an interesting idea, if this could be accepted, the idea that you own a car, own it, pay for a garage, insurance, is something that can't be disrupted in this way. i agree it will start in cities. i think eventually cities will be car free, have autonomous vehicles and things like that, but autonomous vehicles, it becomes an interesting thing is there enough population there, is there enough businesses there to do that. that's a big question. in the next 20 years, most people will be living within a metropolitan area in this country and across the globe >> yeah. it is interesting to see where

the demographic shifts and where the populations of younger adults are flocking to versus predecessors mobility seems to be one of the holy grails in terms of future growth for tech companies and other companies that are looking for other sources of revenue how much do you think that will be ridesharing versus other technologies being developed, whether it is hyper loop or scooters and bikes and things like that? >> i think all of them, it depends on the use case. a lot of stuff is going on across in asia, they're densely populated areas, but a lot of them are super krcreative you get to some interesting futuristic things like a kitty hawk hover craft, vertical lift for takeoff. i want to get the discussion going. nobody wants to think about it, i would like people to think about what would it look like.

the question is, will they be consolidated globally? i think that's the way it is going. seems like softbank owns a lot of uber and a lot of these companies. the question is how do you get to that point, the way people questioned amazon and delivery so many years ago. this isn't going to work well, it did work. i wanted to get the discussion going. how would you do it. >> i agree i thought it is something that auto executives were worried about for a long time. not as many are getting driver's licenses as before because we're becoming city dwellers car prices have been going up, as americans shift to suvs, people are holding on to cars longer i wonder if you think automakers have shifted towards silicon valley enough in the partnerships with the lyft and uber and everybody else so they

can stay and survive this whole thing. >> not just that, also electric vehicles and autonomous vehicles tesla is a big part of them shifting, scar shifting, scares them into move. elon musk shifted the discussion in that regard but i'm even going to boston in a couple of weeks and there's disposable cars. the idea of cars made of not the same way i want to start the discussion we have to think as the population moves, climate change happens, expenses go up, what are the ways people will be transported around the world and everywhere else, then you can get into electric planes, the idea of carbon neutral jet fuel. transportation to me is the most interesting area wildfihere innovation is going. >> finally, i want your take on the pinterest s1, proposing a

list with symbol pins. there's a separate class of stock, but proposing a sunset provision with interesting ways that people would have to hold at least majority of the stock they have at the ipo, remain involved with the company to continue to have this voting benefit. also, you know this company and ben silverman as well as anyone. arguably haven't been the growth at all cost type of company. >> no. >> they've had a different sort of approach. what do you think the impact of the offering might be on tech at large? >> it is interesting, he is an interesting ceo. i always joke he sometimes doesn't want to be ceo, very slow, not showy, he is a very different kind i still don't like the company as you know, owning the controlling shareholder thing, but the idea of people holding it for the safety of the company, when it goes out with the numbers, it is going to be

problematic. it will be problematic keeping it i think they watched other ipos and are responding to that, that they want to be able to get to good profits in a much calmer way but want to go public at the same time. so it is interesting interesting concept. >> indeed. kara swisher great to have your time with us on "squawk alley." thanks >> thank you coming up, shares of tesla moving lower this morning after analysts from rbc cut model three forecasts. we'll take a closer look at the stock when we come back. first, rick santelli, what are you watching today >> you know, i'm watching the euro dollar options, investors are watching inversions, much of what they trade ends up in the pits behind me that deal with short maturities we'll talk about all that's inversion and maybe where

investors' eyes ought to be focused after the break.

i am scott walker, here's what's coming up top of the hour will falling yields derail, rising stocks. we are following the money with the s&p back in another critical level. and jim cramer with us for the hour find out what he thinks of recession fears and tony sack knock ee is here as well ahead of the big event at 1:00 p.m

stock is on a tear, is it about to take a dip? we will figure it out with tony and the gang at noon sara, about ten away or thereabouts. see you then >> thank you. let's get to the cme, rick santelli and the santelli exchange rick >> reporter: well, thank you inversion on everybody's brains that trade and even some that don't. i think it is global growth inversion that's the real story. let me explain it is no secret that the relative value trade has been around awhile. all it is quite specifically is if you're outside the u.s., you're an investor, looking to add debt to the portfolio, add fixed income purchases, no matter what part of that fixed income spectrum, what you're going to find is that for the most part there's juicier yields in the u.s., especially on the government side. and that turnstile keeps getting

thick as investors come. it doesn't mean there's free lunches here, when you think of all of the currency issues involved, how interest rate differentials are settled by currencies, it's also a good additive for the dollar index. think of it this way every time the dollar index gets a rally to 97, it seems to slip back, but the big story is not that it fails to go higher than 97, is that it always finds buyers when it slips back. these are the same story the dollar is expensive and the reason is our rates are higher and there's an awful lot of interest that has along with other global central bank policies fueled the inversions so it is the growth inversions, our growth better than theirs, that spread however you want to express it, that spread is what is manifesting to some extent in the curve inversion. look today, you have three month paper basically nchanged at

244. but you have two year note yields down four basis points. 30s are up a basis point the real issue seems to be not tens minus twos, last week was 12, last year at 10. i'm not trying to split hairs here the real issue tends to be the short end against two years where more anomalies are, and the 10 and 30 are off in their own world, so to speak finally, as investors and analysts, people talking about markets really keep the focus where it ought to be the focus should be on growth inversions, not necessarily yield curve inversions at the end of the day, if our rates find a place to consolidate, investors will grow to love equitymarkets more it is guns hot aspect of dropping rates that's making

investors nervous. "squawk alley" gang, back to you. >> rick, thank you for putting all of that in perspective when we come back, after weeks of rumors, apple is expected to announce the latest product and it could change the streaming landscape. the latest from cupertino, california when "squawk alley" returns. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure?

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a new note from rbc sending tesla shares lower phil lebeau joins us with the

latest what's the argument? >> the argument is they'll see pressure in terms of deliveries in the first quarter rbc is cutting the price target on tesla, cutting estimates for q1 and full year earnings and what they're expecting q1 delivery estimate cut 10% we talked about this for some time tesla had issues in terms of overseeing deliveries, that's what rbc is focused on they're saying pressure is going to build on margins as the model 3 cuts into sales of the model s and x. as you look at shares of tesla, elon musk has been telling employees we have to push deliveries by end of the week, end of first quarter next week is when we get q1 delivery numbers from tesla. >> thank you i want to show you what's happening with the broader market, up and down all morning. the dow is higher by 21 points

strengths in discretionary the s&p is pretty much flat. "squawk alley" will be back. 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? honey are we there yet? umph! ship sticks. that hurt.

apple is holding its big event, preparing to unveil a streaming service.

julia boorstin joins us with more julia? >> reporter: that's right, morgan it is show time for apple's long anticipated streaming services, reportedly spent over a billion dollars to secure hollywood's top names. has over a dozen projects in the works, but don't know what the service will look like, how much it will cost or when it will launch some stars working with apple, including reese witherspoon, jennifer aniston, steve carell, jason mamoa will be there. apple will focus on premium, projects from steven spielberg, oprah winfrey and others we expect them to offer subscriptions to starz and showtime for another fee as for how its own subscription service and cut of other streaming services could be a game changer for apple, dan ives

says we believe reaching 100 million subs in the medium term is a realistic goal that could translate over time for apple and further cement its installed base and have a halo effect. raymond james warns that apple service doesn't seem different from others like amazon and hulu, it will be more incremental. we'll learn more in an hour when the event starts back to you. >> just an hour from now that does it for "squawk alley." let's get to scott wapner. bond yield trouble is ahead for stocks, are fears of steep global slow down overblown it is 12 noon. this is "halftime report." >> the great rate question how much do investors worry about inversion? see what the half time investment committee has to say. plus a pivotal day for apple the number one