of farr, millon and washin good to see you, michael. >> thank you, sue. nice to see you. >> let's start with where mike left is the bull market broken or just bent in your opinion? >> well, it's certainly bent for 't haved i don't -- i d a sense that it's broken, though this has the stuff that could get us there. certainly, the volatility that we've seen, righ the algorithms that have had these really sharp swings, but i think what we're seeing is this really change of menu for stocks. we have been feasting onin lorest rates for years. now the fed is changing rates and we're now finding our nourishment from capitol hill, from tax cuts and from a whole lot more spending. so it makes sense that this change of diet would be rough for stocks. it could get, i think, a little bit rougher still. this volatility today, up side volatility, 400 points, nobod minds up side volatility. it's down side volatility a breaking that 200-day moving average on friday would mean that we could probably go back have redit and still ink in our future. >> how does jerome powell,

let's talk about the week to come michael farr is a cnbc contributor. e has been a buffet of low interest rates here, michael are the markets balking at going on a diet? >> i think that's a great analogy, contessa. yeah, i think they are, but i think there's something bigger at work here this idea of interest rates and cheap money for years has really fueled a serious market rise since the depths of 2009 that's shifting now. the federal reserve is starting to raise rates and upon that course if we get the three or four hikes this year, we're going to see mortgages at 3% or over. that's freaking out out real estate the balance in the economy and the real battle out there is coming from earnings because with this tax cut, with these other spending programs we just heard about from congress, they're dumping a lot of stimulus money at least into corporate hands, a little bit into the hands of the average joe. so earnings are starting to go up and those earnings are what's going to put money back in the public's hands to spend for the new mortgages. this is a

futures now, the dow just turned negative off by 21 points here in premarket let's bring in michael farrod morning to you. what are you watching as we kick off the day? >> there's so much to watch today. i'm watching the memo out of the white house. i'm watching earnings. i want to see what facebook does as they open facebook, as i looked at that report and the stock reaction strikes me like the fish market. you ignore the yelling and screaming and pay attention to the fish the two big canaries in the coal mine are the treasury yield curve. short rates are coming up. the treasury yield curve is getting flatter. that's always -- that happens before a yield curve inverts i'm hoping it won't. it looks like this yield curve will invert, which means longer rates will be lower, longer-term securities will pay lower yields than shorter term securities this kind of an aberration is a typical forecaster predecessor of a recession actually ten of the last 13 recessions >> but michael in the last couple of weeks we've seen longer ends pick up a bit. >> a little. >> yesterday when we hit 2.75 on the

keep climbing even if rates do as well, and is that the key for where your money goes from here michael farr is with us, president of farr miller and washington also back with us, suni harper let's begin with the markets and a snap back, a volatile day shaping up as interest rates continue to grab all of our attention. suni, great to see you again, welcome back >> thanks, scott, great to be here >> where are we in this rally, as volatility has picked up. >> for sure. >> concerns picked up but where rates are going. >> yes >> how does it all play out? >> honestly, i would call these growing pains, to quote our house view on the ceo side there are opportunities here there will be a little dip coming out of rates. i think we'll see higher rates from here, temporarily pushing the market down a little bit we still like the story, the trend is going to be up. the fundamentals are strong across the oard. value stocks versus growth i'm not walking away from the super growth stocks that are driving change around the world. feel pretty good about the rally continuing but as you say, volatility is up r

keep climbing even if rates do as well, and is that the key for where your money goes from here michael farrresident of farr miller and washington also back with us, suni harper let's begin with the markets and a snap back, a volatile day shaping up as interest rates continue to grab all of our at

michael holland, and stephen stanley. coming up, we will get a read on the economy and the point of farr,f hiring with david a chairman and, this is bloomberg. ♪ ♪ i have talked to in the is a sleeved or participant, and sooner or later, it comes to employment. are we growing jobs fast enough? our wages going up? do we have enough workers, and are they right for the job? david farr is on the front lines of the debate as the chairman and ceo of emerson electric, employing over 75,000 workers, and the chairman of the national association of manufacturers. welcome. david: great to be here. david: from emerson's point of view, what is the situation of employment? i'm curious about, are you having to raise wages because we saw numbers two weeks ago that they're going up, and are you having the right trouble getting qualified employees? david f.: yes, yes. the wage impacts started last summer ahead of time. what we start seeing as optimism in the world, jobs expands, and we have gone up a notch in wages. i expect that to happen the next years. from the standpoint of finding people, you can find them but you have to pay them mor