mike santelli has a look at whether the bulls are back to stay. >> is a five day rally in stocks moving a bit too fast or is this a recovery from t market correction? conventional wall street holds that steep pullbacks usually take weeks or more to recover after an initial bounce. thendex is slipping back to recent lows after a retest or a base building process. the pattern could unfold in coming weeks but the chance for a quicker rebound toward the late january highs can't be miss dismissed right now. the history says the fasr the drop the quicker it can be recouped. the recent tumble was the fastest from an all-time high in 80 years. there was also theeverse selling of funds on volatility being low. the tumble ultimately sent stocks lower than they would ve fallen. this seems largely out of way. finally, the rise in bond yields that spooked stocks has slowed allowing a higher range in response to strong growth. brthe frets over inflation, bond yields and high stock valuations but action of if past few weeks seems to show that even after such a sharp selloff thisull market will not go

mike santelli is running the numbers.the market fully normalized >> i wonder if you can sound the all clear. it's being, when you get a shock a. jolt in the market the first 10% correction in a long time. everyone becomes a technician. the conversation becomes moving averages, are we oversold? do we have to retest the lows? i think that's where the debate is after we had a good excuse. the faster the drop from an all time high to a 10% correction, which we had this time the fastest in 80 years, typically the fastest the recover, that's in the good news column here's a look a the s&p futures. everyone says you have to have a w. you have to have the late overnight into tuesday >> that being said, we are getting up to a zone make or break for the s&p 500 in getting back to certain levels, people say, okay. we got to clear the 50-day average or above last week's highs. that's where we're at right now. i would go back to 2015. we had a correction in august. ep says it's chinese evaluation. investor shock we to the we were all

. >>> as for now, you're santoli santelli is the other guy. mike santoli, thank you. >> kelly, you have a long day. good luck. >> we both do. >> god speed. >> andrew made it. make sure you join us on tuesday. i forgot "squawk on the street" is next ♪ ♪ >>> good morning on a friday good morning and welcome to "squawk on the street. i'm david faber with jim cramer. carl quinn la is in the wtanill winter -- he's at the winter olympics in pyeongchang, south korea. been be doing an amazing job covering so many aspects of that let's take a look at futures as we wrap up this week been a good week for the markets. if you're long, the markets are rebounding dramatically from the lows that we saw made up almost 60, 70% of the losses that we saw in the s&p. european markets have also had what you might expect, a good week also. this morning no exception. green across the board ten-year yield note has been a focus. today didn't care down 2.86. there's a look at wti back above -- back above 60 solidly this morning >> yeah. >> all right let's get to our roadmap

but there's a bucket people y separating those. >> good to have you back, mike san toll le santelli >ut amazon is dan eys. good to see you guys a trillion dollars in the fear future >> look, we saw this in the middle innings playing out if i let the consumer piece ultimately, i think prime members spend another 30% this year members come up another 10% to 15%. and some of the part's evaluation, the consumer business is worth $650 billion the enterprise of ebs is worth another $3 to $350 >> i think that dan's done a good job with this and tend to agree. the only thing to add to that is in coming years, you may have the opportunity to break out the logistics business and value that as a separate unit on top of the valuation he's coming to. >> unbelievable. has there been any evolution among investors in terms of their demand to show a consistent operating profit? >> i think when you look into 2019 and 2020, we have a window with investors are willing for them to invest but looking at 2019 and 2020, they have $80 in earnings powers as we go to 2012 so part of that is giving the rope and

we will see if that is feeding around through global beyond yields >> market continues to rise, mike santellinow with a look back at the wild ride a look back in considering - >> a little forward. who knows? i think really what the big take-away here is after the market gets one of these sharp sudden jolts, this is kind of what happens you have an attempt to have a dramatic low maybe that happened on tuesday morning. i think that's a plausible short-term trading low but you have an emotional and faraj i'm tape afterwards yesterday the market failed at some critical levels and closed weak today i.t. will perhaps make another attempt. here's where we were this time each of the last few days, in terms of futures dow for wide ranges. ponds morning at this time we were down 300 or so. 333 the range for monday as we know was historic, down 1,600 points, 1597 you basically were flat as your high for the day tuesday, and you closed down 1175 tuesday down 600-plus at this hour and you traded in an 1100-point range which some say that was the low. >> i think you make the argument that was the highest f

mike santelli joins us now with february's market report card so far.monday, a lot worse friday and monday. then we gave back some of that yesterday. >> yesterday if you look at the s&p it almost literally just gave back monday's gain. things got interesting in february generally you had 1% daily moves in the first 27 days of february than you had in all of 2017 one of the consensus ideas coming into the year, the market would have positive, maybe not great returns. more volatility. so far that's correct. there's a lot of ways the consensus has been run on the year-to-date basis the s&p 500 is up 2.6% in february it's down 2.8% so far. where the strength has been i think has also been noteworthy it's been a somewhat narrower market nobody talks about bfaang. that's banks plus faang. that's what's been leading the market the market is recovering and skittish the patient's out of critical care unit but it's day to day. and i think that's exactly where we are it's still a recovery but it's still a little bit on edge you definitely have a narrower tape the

. >>> rick santelli has the santelli exchange. hi, rick >> hi, mike.o veteran traders that have been doing it a long time, a long time defined as they were veterans before computer trading, what they will tell you is if you have lots of capital, you will never end up with a bad trade if you can hold it long enough which means it's simply all about timing timing has been the critical issue in my opinion for 2018 think about the timing of what central banks are doing. their balance sheets, their rates, their policy. view that against the context of true fiscal policy that actually is going to make the economy grow, think tax reform, less regulations. and think about how all of those variables are meeting in a landscape that we've any quite seen before. configured in a way that never existed before it's very hard, timing for all of these issues is critical. so what we see as volatility is a big focus for activity and how portfolios are managed and hedged dynamically, and from a mechanized standpoint, what we find is it's hard to pick out when things get c

santelli exchange. hey, rick. >> thanks, mike.nco, thank you for joining us today you know, you had a chart in one of your writings that showed all the central anks' balance shee accrued together, and the level. now, remember, we all have this feeling central banks, ours in particular, is kind of pulling the water back but as of february 2nd, it's the biggest balance sheet combined ever that level is? >> $16.4 trillion. >> never been higher >> the week before it was slightly higher, yes. >> and what percentage do all these central banks own in terms of the credit markets, fixed income, sovereign markets? >> 33% of all sovereign bonds are now owned by central banks, up from 14% before the crisis. >> all right so let's play this one real macro and real easy. if central banks own 33% of the securities, and their balance sheets are bigger than they have ever been and stocks correlate with that balance sheet total, when we see religion and other central banks like our fed, is there any way we can go through normalization without a lot

. >> all right, mike, thank you very much. from santoli to santelliet's bring in rick santelli hi, rick >> hi, tyler you know, something interesting is going on in the fixed income plarkts today. look at three 24-hour charts look at twos, now down four basis points look at tens, down two basis points 30s are unchanged. all right. that sounds a lot like curve steepening curve steepening with rates going down this is something we haven't seen a lot you think there's a fed implication there? in terms of maybe the fed's not going to hit the gas as hard at least that's the way traders seem to be trading, and finally, i normally talk about the dollar index. it's having an up day, but it's down well for the year, but year to date euro versus dollar might govern you clues investors like big numbers, and european economy, well, if we cough, they get pneumonia. nice round number, 125, the high on that chart. pay attention to that level on a closer basis at the end of the week michelle, back to you. >> we will, rick thanks so much let's talk more about today's m

. >>> as for now, you're santoli santelli is the other guy. mikeng day. good luck. >> we both do. >> god speed. >> andrew made it. make sure you join us on tuesday. i forgot "squawk on the street" is next ♪ ♪ >>> good morning on a friday good morning and welcome to "squawk on the street. i'm david faber with jim cramer. carl quinn la is in the wtanill winter -- he's at the winter olympics in pyeongchang, south korea. been be doing an amazing job covering so many aspects of that let's take a look at

rick santelli is there with a very special guest. >> hi, mike. thank you. like to welcome former president of the president's council of economic advisors, ed lazier thank you for taking the time today. >> pleasure, rick. thank you. >> i want to talk about the jobs report in so far as was it a catalyst for some of what we're seeing in the marketplace? year over year wages, earnings, we're up 2.9%. however, we saw smaller work week listen, you watched this a long time is the potency of the 2.9 questionable considering the drop in the work week? >> good point. first of all, i'm glad you're focusing on the drop in the work week as you know, that .2 of an hour is equivalent to 800,000 jobs let's go back to the first question, the issue about inflation. even if you take that 2.9 nominal change in wages year over year, remember that productivity rose by about 1.1%. not what we want to see but still 1.1% if you take that off the 2.9%, you're talking about inflation rates, wage inflation rates still below the target level so it's hard to argue that there is signifi

mike, we'll see new about ten minutes. >> all right see you in a bit, scott. let's now get out to the cme group in chicago rick santellitelli exchange >> everybody, of course, is trying to handy cap exactly what ten year note yields are going to do. and it seems like it's still seems like a forgone conclusion. we're going to be testing 3% but do keep in mind our high yield close for the cycle which goes to that last day of 2013 when we actually traded and closed above 3%, well, it was 2.95%. it was only 3 1/2 sessions ago, wednesday. we had a 2.95% yield close we've come off since then. even though equities moved a bit higher and regained their sea legs, normally we tend to correlate in that direction at least from a textbook perspective. so trying to handicap the direction here as we've come off, many say it's going to be all about the next employment report it isn't this friday it's a week from this friday and i actually happen to agree with it. so let's look at the yield curve as a directional indicator viewing isolated ten year note rates with the context of how things change in the last employment report. so the b

mike, jim, hold on just a minute we want to get some fresh news in here. >> we've got a news alert on the bond market. 30-year bonds up for auction rick santelli tracking the action of the cme. once again, rick, we're in one of those environments where bond auctions really matter yesterday's caused volatility. what's the demand like for government debt today? >> it was soft again today i gave it a d-plus now, i was thinking c-minus but i gave it a d-plus, and i'll tell you why the auction yield was 3.121. it looked like 3.11s, 311 and a halfs were trading higher yield, lower price. didn't like the way it tailed off but it was really choppy trading obviously. the bid to cover 32.26 below the 2.36 ten auction average pf 61.2 on indirects was light from 63% ten auction average. the only bright spot was directs at 8.1 they were about a point, one full percentage point above ten auction average. but consider this. you know, i think that what we are seeing here a little bit is a taper tantrum, any one because we think the balance sheet's reducing the three-year, the fed -- federal reserve bod 3 billion of these 30-years for their soma account yesterday about 4.5