morgan brennan has more on the big cat's blowout quarter. >> reporter: at four years of sales declines the world's biggest maker of heavy machining snapping its losing streak reporting revenue in 2017 as mining and construction rebounded around the globe. jim you thinkelby saying economic indicators are positive and he expects a strong start to the new year. >> we are expecting to capitalize on sales momentum or quickly adjust should conditions change. we also plan to grow the company by offering expanded services. >> reporter: after years long slumps tied to the collapse of commodity prices sales are picking up across all of caterpillar's major segments. construction, mining are expected to grow this year. just as a restructuring within the company has taken root. analysts say caterpillar is poised to prosper. >> two or three years ago -- it's just interesting that they had been in and still are in the longest and worst revenue downturn in all of cat's history. and to come out of it is inclusive of the great depression. the mining oil and gas bubbles that popped, they happened to be l

morgan brennan has our story. >> reporter: you mark the end of an era. the potential breakup of general electric. a call with analysts today, ceo and chairman john flannery said he is seriously considering it. >> as i look at the company continuing to evolve along the continuum, i believe there could be different structures that could achieve all of those objectives and that we need to examine those. i would categorize it as an examination of options and it is the kind of thing that could result in many many different permutatio including separately traded assets really in any one of your units if that's what made sense. >> re he helm last summer he repeatedly sai eve is on the table as he tries to turn the company around. today marks the first time he said a total breakup is entirely possible. power, aeration, and health care potentially on tap to be spun out. the comments coming on the heels ge capital will inclur a $6 ng billion charge for legacy capital in the fourth quarter. and must include $15 billion over the next years. sources say more details

we've got a news alert on domino's let's go to morgan brennan >> reporter: hey, melissa, that's right, we have a leadership change at the pizza chain. patrick doyle, domino's ceo, plans to leave the company in june the board has named richard alison who is head of domino's international as the new ceo russell winer, currently the president of dominos usa, will be taking on the role of chief operating officer of domino's, both appointments effective as of july 1st. a change in the c suite at dominos. shares are down a little over 1% in the after hours trade back over to you >> thank you very much, morgan brennan. of course patrick doyle loved, i would guess, by investors. he really was at the forefront in terms of bringing technology into the restaurants when people talk about using technology to increase productivity at a restaurant, patrick doyle's name is usually lumped in there, right >> and without question, and really, the concentratisolidati this pizza industry, it's part of why when you look at a 26 times multiple, at one point it was thought you couldn't do it it's now getting

for "nightly business r i'm morgan brennan. >> that's "nightly business " f. i'm sue herera.hanks for joius. and i'm tyle. have a great evening. we'll . >> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for america's neglected needs. >> planning a vacation escape that is relaxing, inviting, and exciting is a lot easier than you think. you can find it here in aruba. families, couples, and friends can all find their escape on the island with warm, sunny days, cooling trade winds, and the crystal blue caribbean sea.

morgan brennan now with more on what's working at honeywell and in the sector overall. >> reporter: after a flurry of herbings this week, the industrial sector's message, growth. take honeywell which beat estimates and raised guidance. the maker of jet engines and thermostats is welcoming demand across its segments. and despite a nearly $3 billion tax related charge last quarter it's betting reform will boost business even further. >> i think it's going to be good for u.s. business. for us, we certainly see a much greater level of bullishness on the part of our customers which should translate into continued investment. you are right, their cap ex is our revenue and we expect some level of investment to accelerate. >> it is raising the match for its employees and plans to bring most of its overseas cash back home of the it isn't alone, caterpillar, 3m and united technologies all posted strong results this week raising guidance and unveiling capital spending plans. some companies are prefunding pensions and others are on the prowl mergers. experts say growth is across the board as even har

for "nightly business report" i'm morgan brennan at the new york stocks. >>> elsewhere, the airline sector hit turbulence today after wall street expressed some skepticism about united continental's announced growth plan. as we reported last night the airline reported better than expected earnings and revenue, but investors are focusing on the company's aggressive expansion strategy. the concern is that it could lead to an airfare war. the company's ceo says he is not surprised by that response. >> it is a highly competitive industry. always has. we do this every single day, every day of the year. and so competitive response also come and go. i think what's important is for united to have a very defined strategic transparent plan for everyone, including our investors and customers of what we are trying to accomplish and do and put the accountability behind p/e and behind us. >> shares of continental down 11% today, dragged the rest of the sector with it as well. >>> bill, now to the economy and the housing market. sales fell mr than expected in december as home prices rose and the supply o

morgan brennan has those details. morgan >> hey, kelly, that's right. shares of akamai are soaring on a headline from "bloomberg" that akamai is said to be working with morgan stanley on a strategic review what exactly that review potentially entails whether it's a sail or restructuring, something else, remains to be seen shares are up 4% right now after spending most of the trading session fractionally lower back over to you >> all right, morgan, thank you very much. by the way, if there are any fifth graders watching us today, hi, guys. >> hi, everyone, at orchard school sorry for making up the word, magestical anyway. >>> the jp morgan health conference is under way in san francisco. it's a big one cnbc's meg tirrell is there. she's been covering the event all week she joins us now with an exclusive interview with john milligan, the ceo of gilead. meg? >> reporter: bill, thanks so much john, thanks for being here. >> thanks for having me, meg. >> reporter: gilead's stock is moving big in the green direction after your presentation yesterday one of th

let's get insight from morgan brennan who's here with an exclusive interview with chris kavaisk. ome everybody. morgan >> thanks. yes, welcome and i know you guys rung the closing bell, mike, we'll start with you i know there's been sort of a changing of the guard and you're now solely the chairman of the company. budget, in focus here in the u.s. and certainly you look at shares of l3 trading near record highs and the broader defense sector in general, a lot has been tied to the anticipation that we're going to get defense spending growth. what is your anticipation given the fact that we haven't actually seen a budget put in place yet for 2018 >> well, given the needs of the military and the fact that they've been starved for almost the past decade, the terms of equipment and technology assertion is a widespread expectation that the budget will be up significantly to make up for this technology gap. where our adversaries have caught up, if not surpassed us now technology has been the leading edge that u.s. military has enjoyed almost forever so, that has to get rebuilt and as wel

. >>> let's get over to morgan brennan for a news update. >> here's the cnbc news update at this hour u.s. officials announcing brenda fitzgerald, director of the cdc resigned, after reports she took tobacco stocks after she took the job in july. health secretary accepted her resignation. >>> michigan state university trustees have named john engler as interim president in the fallout of the nassar scandal. he was governor from 1990 to 2002, is a michigan state alumnus. >>> russian president vladimir putin telling his country's athletes to forget about doping scandals when they compete in the upcoming winter games. >>> and united airlines passenger who tried to take her emotional support peacock was turned away because of health and safety concerns. she bought a ticket for dexter so he would have his own seat. you could say dexter ruffled feathers back to you. >>> aside from the vulture, a peacock is probably the last bird i would turn to for emotional support. >> by the way, united shares are up probably on that today. >>> former transition secretary under clinton joins us dow is up

. >> i'm morgan brennan in for sara isen. >> great to have you here.t's been a tight setup this morning. thanks for the team getting us on air just about in time. let's check in on the markets. this time yesterday we were looking at a 250-point gain in the premarket. indeed we were up around a percent at the hoopen for the dw the dow was up 283 points at one point but ended the day lower. around lunch time we went from up about a percent on the dow to end the day lower. a massive intraday selloff 6.5 billion shares traded. the average is around 5 billion. a big intraday turnaround this morning up 176 markets on the premarket for the dow, 34 for the nasdaq it will be fornt see those gains maintained throughout the course of today let's look at bitcoin. today it's down again. it's around the 10,000 mark once again. >>> sticking with traditional currencies, we have some strength in the dollar today keep in mind that dollar index is still hovering near three-year lows. the euro level right now is 1.22 the u.s. yen, 110.73 the pound 1.3797 a lot of the focu

morgan brennan joins me with a look at what to watch. >> there's a lot to watch.en general electric reports in about 45 minutes, you can expect the results to be messy last week the blue chip warned that for q4 it would take a 6$62 billion charge tied to its insurance business, 3$3.4 billin charge tied to tax reform. earnings for full-year 2017 likely to come in the low range of 1.05 to 1.10. here's what the street will be interested n the fin, the future current guidance, $1 to 1.07 for earnings bank of america thinks the stock could be lower if the pain in the powering segment worsened. the conference is at 8:30 a.m. eastern. there could be a break up of the core industrial businesses especially since a number of analysts argue that the parts valuation does not support a full breakup investors will be looking for other divestiturdivestiture, in lighting and looking for any updates on the board, which is shrinking to 12 directors from 18 ahead of the results, the stock closed up 4% yesterday, that was after breaking below $16 on monday to a multi-year low there's

i'm carl quintanilla with mike santoli, morgan brennan here at post 9 of the new york stock exchangen fortt in san francisco. in a minute he's going to bring us a cnbc exclusive with amd's lisa su. you cannot miss that >>> in the meantime, apple feeling pressure from investors. urging the iphone maker to tackle smartphone addiction and overuse by children. they write the potential long-term consequences need to be factored in at the outset and no company can outsource that responsibility joining us at post 9 this morning, elevation partners cofounder roger mcnamee and scott galloway, professor at the stern school of business happy monday good to see you both what an interesting turn this is, roger. what responsibility does apple have to how my kids might use a phone? >> quite honestly, they have a lot. the culture of silicon valley has been about disruption for so long that people have forgotten there are consequences to disruption, and at the scale that the tech guys are at now, they have to take some responsibility now, apple in this case, i think, is nowhere near the worst offende

. >> thank you morgan brennan., i go to you you bought ge, did so of the parts analysis does your view of the sum of the parts or view of the parts change based on the news today >> what changes potentially today is the uncertainty around the ge capital and insurance liabilities and what reserves will have to be. that's what this is about. when they start saying this, it sounds wishy-washy to me we may have to start to sell off businesses but ge has done very parly in the past on identifying and having a vision on ge capital's responsibility to the overall structure. they have been terrible. it's one of the reasons why they are ultimately going to be -- they took this book down and selling it off today doesn't make me feel good. the up is of the parts is interesting when you start talking this way i think baker hughes is worth more than it was three months ago and some of these power aspects are attractive. >> guy, i know you remember this very well. >> civil war. >> besides that, more recently in history, when joh

on wall street, and "squawk alley" is live ♪ ♪ >>> good morning, i'm carl quintanilla with morgan brennan john fortt on the new york stock exchange the social network looking to emphasize posts from friends and family mark zuckerberg writes, i expect some time on facebook and measures will go down. as facebook deprioritizes news, the former president obama was on the first episode of letterman's new show on netflix, where he addressed the issue of news on social media listen to that >> whatever your biases were, that's where you were being sent, and that gets more and more re-enforced over time that's what's happening with facebook pages where more and more people are getting their news from. at a certain point, you live in a bubble and that's part of why our politics is so polarized i think it was a solvable problem, but i think it's one that we have to spend a lot of time thinking about. >> two conversations here this morning, one is about the ad revenue impact and the share price, obviously, we're going to coff cover that but longer term it's a question whether or not zuckerberg sees t

we have seen a lot of volatility here >> thank you morgan brennan at headquarters tim, as a holder whatooking for? >> the precash flow number i think the 2017 precash flow number is 4.2 or 4.5 as morgan pointed out, people are really focused laser on free cash for 2018 because of the insurance reserves that they have to put against ge capital, which i agree, they can't break up this company because of ge capital. i think there is a lot of crossover between the reserves that are promised from one business to another. i think the industrial will earn 25 cents, ge capital, two or three. i think people are not expecting anything i think the comps could get worse in power i think that's people should be concerned about. i think they are going to talk about 5% down in terms of where they are going to be on their power business i think they -- i think the move in the stock over the last week, which has been related to breaking up the company, is fair except for i don't think they are going the break up the company. >> all right so even if they are not going to baek up the company is there any

aboard jon is seeing unusual activity not a railroad that just had a great six-month run and first morgan brennan with a look at what's coming up on "power" in 20 minutes. >> coming up at the top of the hour, the end of the bond bull market that's what bond market guru bill gross says. he'll join us to explain why and are leaders at some of the big banks overstaying their welcome? is it time for a leadership change and if so who is no block chain main yeah, use that word in a press release, and watch your stock soar. the latest, it's a my cricro cad meantime, "halftime" report will be back after this at ally, we created a savings account with a great rate. but if that's not enough, our app helps monitor your spending too. and if that's not enough to help you save, we could start a carpool. look at this traffic. don't worry. ok, if that's not enough we'll start a trainpool. oh i have a meeting in five minutes. and if that's still not enough... i got it. we'll just create a shortcut. we'll do anything, seriously anything to help you save. ally. do it right. talking 4th quarter? yes. >>> all right.

let's send it over now to morgan brennan for a cnbc news update morgan. >> hey, david.ister theresa may in china on a three-day trade visit. she attended the inaugural trade in chinese premiere. she sought to soothe concerns over brittain's exit from the european union. >> brittain has long been a country that does business with the world and that's only going to increase as we leave the european union because the goal we're working towards is a new era of cooperation and partnership between the u.k. and the eu. >> french authorities meanwhile have deployed boats and helicopters off the coast of southwestern france to search for the chief executive of quicksilver, pierre anyer, this after his empty boat was found washed ashore. the area is known for dangerous waved prized by surfers. the moon is syncing up with a super moon and a total lunar eclipse. nasa is calling it a lunar trifecta this won't happen again until 2037 i got a glimpse of it again. it was out of this world that's our cnbc update i'll send it over to jackie deangeles. >> good morning, everyone. the eia j

let's get to morgan brennan for a market flash >> shares of norfolk southern are halted i reached outcompany for more they're scheduled to report earnings tomorrow morning, but we will bring you more once we know what this news pending is back over to you >> morgan, thank you >>> here's what's coming up on "power lunch" as we head into the big spring buying season, will rising mortgage rates crush home sales >>> bicardi is buying patron as tequila sales soar >> plus, why some of the biggest stars in aivctist investing may be fading. all that coming up on "power lunch. contemporary cockpit, 360 degree network of driver-assist technologies and sporty performance what's most impressive about the glc? all depends on your point of view. lease the glc300 for $449 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. >>> real estate brokerage redfin out with data on the health of the housing market according toilities new report, the number of homes for sale dropping 14.5% from a year ago december also marked the 27th month in a row of inventory declines glen is the

. >>> a vote is expected around noontime to end the government shutdown morgan brennan is joining usat. >> here's what is happening despite the shutdown military operations around the globe, active forces staying put despite no pay until lawmakers actually strike a deal but the manufacturing and delivery of new equipment and weapons, that could be disrupted. so lockheed martin says this shutdown negatively impacts hundreds of ongoing government programs and thousands of our employees across the u.s the shutdown could result in a costly schedule delay and breaks in production that will increase overall program costs and interrupt the delivery of critical equipment to our u.s. government customers now back in 2013, during the last shutdown, lockheedand others like united tech furloughed thousands of workers as some production lines did grind to a halt. that racked up delays and costs. it could happen again here companies say right now they are implementing contingency plans similar story in the space sector as well as spacex says this shutdown impacts spacex's falcon heavy demonstratio

take more than a $6 billion charge more interestingly, also suggesting it could break itself up morgan brennan has the latest news the biggest new, that ceo and chairman is seniors le considering a breakup of the industrial conglomerate. while flannery has stressed that every option is on the table, today's conference call comments, those mark the first time he's explicitly said that ge could be spun out into separately traded assets that could, according to sources, and as david faber has also reported, include pourer, aviation and health care flanly also saying he they will review, making sure the businesses can flourish in the decades ahead. a breakup has not fully decided. flannery saying expect an update on all of this in the spring meantime, next week, and the stocks that rallied now down about 4% back over to you. >> hey there, morgan, the stock is not moving very much. what are analysts saying >> i think that's been the bigger trend overall, is the idea that some of the parts are greater when they are broken up. we've seen this with honeywell and other companies, et cetera a lot of ana

morgan >> i am morgan brennan are rising interest rates a threat to this rally we have all the angles covered rick santelli in chicago watching an auction of ten-year notes. steve liesman here on set on the rapidly rising interest rates, but we begin this hour with bob pisani where stocks are rebounding bob, what's going on >> slowly but surely, about you it started out rather rocky. preopen, the futures contract, where about 35k trrp some reports that china officials may consider slowing or halting their purchase we dropped seven or eight points and slowly clawing our way back, and none of that is confirmed, throw in gundlach's comments yesterday, gross's comments, take a look at bond proxies. utilities are at ten-month lows, reits at six-month lows, so that whole complex is under pressure. higher rates, of course, yields up that's helping the banks ten-year yields close to ten-month highs, so most of these banks are at the highest levels since 2008. transports, you heard earlier from tyler, united and american raised guidance helping the airlines remember, railroads have been the re

morgan brennan let's debate ge with the founding part ifound ing partner, at post nine, and grahm copleymore bearish, beginning with you, your note today, it's simply ge, why would you trust this team? so you don't >> i think you got to be somewhat concerned about the earnings miss. mr. flannery had the opportunity to take the kitchen sink on the fourth quarter, and six weeks before the quarter ended, and he missed the number. which is almost inexcusable. what it suggests is one of two things it suggests he's, himself, either overly confident or overly hopeful, the wrong person to be in charge of the company at this point, or he's fed information from the people below him who are overly confident or don't understand the business, in which case, he has more business problems than he expected, neerither are positive >> okay. scott, you're the bull must be lonely right now >> it is >> but i guess you argue everything's down so much, you can only look higher here, so -- >> it's a great american company, 50% on sale, right? the stock has been terrible. every piece of bad news you can possib p

morgan brennan is monitoring it. >> the call is still underway, taking questions from analysts but soar, new ceo jim foot saying hunter harrison was truly a lenl end and csx would not be in the position today without the changes he was able to make during his time at the helm in past year. the company has been simplified, the organization into three business units, the new addition of ed harris is rock solid railroad operations executive with over 44 years of experience, and also their tax rate is expected to drop down to 25% in 2018. it has in the past been in the high 30s back over to you >> morgan, thank you >>> shares are down about 1% right now, mike. >> actually a good preview of what we might be a lot of during earnings season. a one time adjustment for taxes. a company's idea of what the tax rate is going to be. >> we will see what it does now, after today's big reversal. >> we are getting into the thick of things. >> mike, thank you as always that does it for us on "closing bell" today. "fast money" starts right now. >> "fast money" starts right now, live from the nasdaq mark

the shares of general electric in the red again this morning as reports about a breakup loom morgan brennanve 18. thank god for small favors, morgan >> yeah. so general electric mulling a breakup. this has been sort of the big question over the past 24 hours. ceo and chairman john flannery said he's considering the possibility of separately traded units, aviation, health care and power. update is expected this spring, but can ge actually make the breakup math work? maniable liy ablnalysts skeptic. there's $31 billion in unfunded pension liabilities. debt liabilities in ge capital, including as of yesterday, bigger than expected $15 billion that must be set aside for insurance reserves over the next seven years. that's a big chunk of cash for a company that's suffering a cash flow crunch right now. so ge has some big liabilities that have to go somewhere. where? that's the question. now factor in the lack of a ge capital dividend that shaves about 3 to $4 off some of the parts analysis according to rbg it could be as little as $16 a share with the exception of bank of america which is high i

general electric earnings out a short time ago morgan brennan joins us with the key things to look atresults. hey, morgan. >> hey, wilf general electric did miss on the top and bottom line for q4 when you dig down into these numbers, there are a lot to go through, it was actually much better than analysts had expected now i say that with a big asterisk next to it because i think there wasn't a lot that was expected if anything, many analysts with the flurry of downgrades we saw, we're expecting more potential bad news, more surprises to the down side. but that wasn't necessarily the case here. so industrial cash flow for full year 2017 actually came in better than expected that's been the key metric everybody's been watching. $9.7 billion versus the $7 billion guide from the company also there was no change to the industrial 2018 earnings per share outlook or the free cash flow guidance. that was important as well because bank of america earlier this week you'll recall said that they expected to see the outlook downwardly revised so the fact that that's staying in place also considere