morgan brennan has the details. >> reporter: ups, the spending didn't stop with the hops. despite an earnings beat shares of the company fell today after profit outlooks fell short of expectations. ups expected big savings from tax refo but plans to funnel a big chunk back into its business, a bet that more capital spend will help it keep pace with more e-commerce shipments.ng >> it's gro paster than gdp. we are investing to make sure that we not only have capacity for this period but for the entire year. >> reporter: they plan to spend $6.5 billion thi year or 10% of revenue to expandpp the cg network. er buying boeing cargo jets and plans to open 18 new facilities including three u.s. ground hubs in areas where a spike in online shopping orders triggered delays last quarter. >> we grow last quarter by 11%. we know the demand and opportunity is there. a few w years ago decided to invest in the international. we are seeing the rts today. and we are in the middle of investing in the u.s. d operations in a way that we haven't hrically and we are going to see the results and

morgan brennan takes look at what could be next for united tech. >> reporter: all it the urge to demerge. just a month after general electric said it's considering a potential breakup of its core businesses, another industrial heavyweight, united technologies, saying it, too, is reviewing options. >> the real question is do you get a significant multiple expansion by having separate companies versus the congmerate or the fou businesses of utc? tough, tough questions. would tell you that we are looking at all of those possibilities as well as even within the portfolio that we have today, does everything fit? >> united tech operates in three main industries, aerospace, elevators, and h vac systems via carrier. the company, which is in the midst of a $30 billion purchase of airplane parts maker rockwell collins, plans to finish its view by year's end. united tech joins a growing list, one that doesn't just include ge. >> this is a trend we saw starting about three years ago. whether you want to call it the urge todemerge, portfolio rationalization, addition by subtraction, all of these mult

morgan brennan has a look now at where inflation is hitting hardest. >> report: if you are wondering whether inflation is pick up look no further than recent enings. from construction equipment to foodto travel companies across industries are reporting higher costs both for materials and labor. tak whirlpool, which recently warned higher commodity costs to ke home afliances will shave hundreds of millions off profits thisyear. we are seeing inflation trend creeping in on many parts of the value chain. > reporter: caterpillar, ford, harley davidson and sherwin williams are a few of the manufacturers grappling with a tighter labor market. after years of concern that stagnant wages and cheap s commoditould trigger inflation the recent increases may welcome since som inflation is good thing. the risk is if it rises too ast. >> oks like it's accelerating. at the very least, aum those fee mem who talked and warned about the worries of deflation, all of those ideas about deflation in the middle of last year, forget about it. 's gone. inflation is headed back to the 2% target. >> reporter: o

i'm morning morgan brennan. >> i'm mike santoli. wilfred and sara are off we have futures looking to gains from late last week. we pulled out positive, s&p 500 up 0.5%. in the broad markets continuing that coverage from the sell jot from the january hype. you see what we're pointing to, another half a percent gain. the dow looking a bit stronger up, 170 at this hour the nasdaq which has been the performer both before and after the correction is up, looking at about 18 points right now. taking a look at the ten-year treasury this obviously has been an area of tremendous focus lately in the last month or so although the move last week was very plod defendant. basically going sideways for four weeks, really it's amazing how many people are watching that 3% right now pulling back ever so slightly, 3.86 you wonder if that 3% mark is the watched pot that everybody is waiting for, seeing if it will boil or not the dollar bounced slightly last week up in the dollar index, about 0.5% it's basically fixed mostly down. the yen, you see the dol

. >> our morgan brennan who just got off the air down at the new york stock exchange follows the industrial stocks closely for us morgan, i'm wondering what you'd like to add to this conversation, that bill ackman is in united technologies? >> it's, look at shares. they're up 6% over the past week that's because last week, utx's ceo said they are going to review their portfolio they're going to see whether the sum of the part, whether there's more value to be had, breaking apart their main businesses. hayes said in the past he is acting at the company's inside activist when you talk to analysts on the street, what they'll tell you is looking at a company like united technologies or some of the other big conglomerates where we're seeing similar move, they are doing this either due to activist investor, which something we've seen with ge or because of the threat of activist investors come k in to so it's not surprising to see that's taking place in this company. it's been considered a potential target for investing >> who knows as to whether morgan, mr. hayes and mr. ackman have spoken to eac

i think he's discounting it way too much >> let's jump over to morgan brennan with a news alert. >>> hey, scott fedex, a reuters report that fedex customer records were exposed by an unsecured server the big takeaway here, that according to this report in reuters, that there was data, about 119,000 scanned documents from u.s. and international citizens, passports, drivers licenses, et cetera that were sitting on an unsecured amazon s3 storage server but that fedex has now taken steps to secure that so no hack here. simply a matter of data that had been unsecured and is now being secured. according to this report, fedex saying there is no indication that any information has been misappropriated and will continue its investigation but of course it comes on the heels of hack attacks on fedex last year including that big attack during the summer that did have a material impact on earnings last year back over to you >> morgan, thank you so much, morgan brennan with the latest on fedex >>> a lot more ahead on "is the halftime report" today >> next up, a top analyst on under armour says bew

morgan brennan has more on what amazon might be up to. >> reporter: shipping with amazon may soon make its u.s debut. according to "wall street journal" amazon's long r ored delivery service will initially roll out in los angeles a first step toward allowing third party sellers to shim tir goods via amazon directly and eventually become a service that can be offered to other companies as well. azon saying, quote, we are always innovating and experimenting on behalf of customers and the businesses that sell and grow on amazon to create faster, lower cost delivery choices. according to a source, the program is still in the planning stages and atea lst several months out. bu d thatn't stop shares of ups and fedex from falling today even though industry experts arp cal. >> fedex and ups should not feel threatened by amazon rolling out its own delivery service because never a much better, much more dense network that sfreds the cost of each package dlifld out over many more packages and makes it much more efficient. >> reporter: in response,s saying it quote continues to pport amazon and ma

morgan brennan is at post nine helping us look at this and talk about what is significant about it fork, for the company and more broadly for broadband access all around the world? >> exactly this is the pause mission, a spanish satellite that is being launched into low earth orbit but it those two additional smaller satellites hitching a right on this falcon 9 rocket out of california. in the next couple of minutes everyone is watching closely they are made inhouse by spacexxts, musk hopes will be the star lincok con stelation, what will ultimately be tens of thousands of these satellites to beam high speed internet back to earth. this would represent a new revenue stream for spacex and new profit to basically fund all of these ventures to ultimately get spacex and humans to mars. >> tens of thousands >> wow, that's a lot of traffic up there. >> a lot hinges on these two satellites, they are the test si satellites. >> this on a day with wilbur ross was on squawkbox, the administration is now committed to sending americans back into space and back to the moon here. >> exactly. >> let's

morgan brennan is live at the kennedy space center in florida. y, morgan. >> hey, that's right we're actually inside the launch pad right now. this is something that the space industry is waiting for for seven years. the launch of this rocket. and by the way, it's carrying some very unusual cargo. we're going to give you all the details when power lunch returns. its technology was engineered to see... (beeping) while its design was meant to be seen. experience the new 2018 lexus nx, and the nx hybrid. experience amazing, at your lexus dealer. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. >>> spacex's elon musk calling it the most powerful rocket ever to be launched and there's a lot riding on it, literally. morgan brennan live at kennedy space center in florida. morgan >> hey, brian. that's right elon musk and his privately held spacex are hoping to once again make history this time with falcon he

we did cover it here at morgan brennan following the industry for us did some work on it, as well butare coming back to and that's united technologies and a statement of greg hayes last week at a barclays conference that perhaps didn't get the attention it deserved. now, it's about the potential of breaking up united technologies and, again, to put it in context, mr. hayes did not say that that is what is going to happen. >> right. >> here's what he did say. a question we have to ask is utc a more valuable property together or three separate businesses aerospace, otis strong in terms of consistent at 12 to 13 and climate controls those are the three large businesses and he said the question for the board and continue to study. he went on to say there's dis-synergies and one-time costs and multiple expansion by several companies than versus conglomerate there's an activist in the stock. this is not unknown. well-known name. doesn't have a deep position but you know, what i hear is once this rockwell deal is completed, jim, this is a very serious consideration going on at utc what do yo

but morgan brennan, this is not like some beaten up stock. united technologies has done dog gone well the last couple of years and also by the way a gigantic corporation i wonder if you could move the needle. >> bingo it is a jigigantic corporation d a industrial koconglomerate and what we're seeing is the deconglomerate and if you look at shares, they are up to date but they've been up about 5% or 6% over the last week because last week greg hayes the chairman did say he wassen gamg -- engaged in a portfolio review of the company and he expected to have results by the end of the year the possibility that he could break up one or more of united technology big businesses, the big businesses being aerospace and the climate control and security business, the hvac business, also oatis elevators and said aerospace could be # $45 billion and $50 and ottis 12 to $13 billion and so it is not surprising. >> could this be what bill ackman is betting on. >> morgan makes the most important point and all she said is the company has shown on its own a will

about 2% now we have more on alphabet with morgan brennan >> that's right.iti combs through the earnings release, we have another piece of news regarding alphabet that's a change on the board we've got -- we've known that eric schmidt was going to be retiring as chair of the board we now know john hennessey is taking his place he was appointed yesterday he has served as a member of the alphabet board since 2004 and a lead independent director since april 2007 also worth noting, shirley tillman announced her retirement from the board that will be effective february 15th back over to you >> morgan, thank you very much so, a lot of companies here. we've heard from amazon now. we've heard from alphabet. of course, we'll hear from apple in another 15 minutes' time. stephanie, as we continue to get more granularity, what's jumping out to you >> some of the breakdown of amazon and it looks like aws was up 45% i think anything over 42% people would be happy with. north america sales up 42%, too. so, that actually also was pretty good. i'm just kind of looking throug

i'm jon fortt alongside david faber, morgan brennan with me at post nine.o joining us this morning on set, s&p 500 global portfolio manager erin gibbs and business insider editor in chief henry blodget. carl is on his way to pong clanclan -- pyeongchang. >> he made it. >> he did? >> yes >> we have a lot to get to we're having another wild session for stocks following yesterday's action you saw the dow end in the red for the third time in four se s sessions we're down 430 on the dow. the s&p 500 is down over 1%. volatility continues erin, what's your take here? is this just going to be something we finally starting to see again in our markets that we had become perhaps unaccustom to >> yeah. for us, we're really looking at this as a full re-evaluation what's the shift how are you going to allocate between bonds and equities valuations, we came in really high at the beginning of the year and all of last year every time the markets got pushed up, we kept saying well where else are you going to put your money? that was sort of the argument. and now we're seeing

with me at most nine, morgan brennan and david faber.l kinquintanilla is in pyeongchang. >> we have mainlior averages pulling out of correction territory adding to friday's gains following the worst week we've seen in the markets in two years. christine lagard weighed in from the world government summit in dubai. >> you compare valuation, you know, from a week ago, there's been a market correction off anywhere of 6% to 9% which frankly given where asset prices were very high, it's in our view a welcomed correction. and we have observed suddenly despite the volatility the market channels and pipes and mechanisms have worked well. and we also see the financing is still plenty and very much available for the financing of the economy so, you know, corrections happen they were due to happen. and that's where we see it >> for more, joining us at post nine is citi's chief strategist tobias letvowich >> we have a lot ofthings happen i think the markets were ahead of the skis. it's the olympics. i have to use the winter application. but, look, th

morgan brennan is at kennedy space center in florida. the latest >> reporter: hey, kelly, that's right. this was one quite literally for the history books. elon musk and his privately held spacex successfully launched the falcon heavy a short while ago from this launch pad behind me it will now become the world's most powerful rocket in operation. it is surpassed only by the saturn v that brought americans to the moon in 1960s and 1970s it's not just the launch itself that's historic. it's also what happened a few minutes after lift-off two of the boosters on that rocket separated and made their way back down here to earth in what i can only describe as a synchronized feat of aerial acrobatics, coming down to earth at the same time, self-correcting and landing a few miles from here at cape canaveral amid four sonic booms and a tidal wave of cheers from watchers in the area now, this gets really to the crux of the spacex business model of reusability, why this was so important and why the company is able to ask launch prices that are just

with me at post nine, morgan brennan and mike santoli you saw carl and we're going to head to pang chayeongchangn a minutes. we're joined by senior portfolio manager chief equity strategist bob doll bob, you know, we're watching markets this morning sort of bounce around. the s&p 500 actually kind of firmly in the green right now. it has been very strong week following that roughly 10% correction where are we right now >> well, that we bounced i don't think should be any surprise we got the positive technical divergences last week. the surprise is how far and how fast we have bounced it's amazing you can't keep a good thing down, i guess. our view was, you know, 2700 plus or minus 50 s&p 500 points and we're at the upper end of that now so we're going to have to make some decisions here. we're going to have to, i think, pause and do some testing at some point we'll see what that looks like but this rally this week has been pretty amazing. i agree with you >> when you say we have to make some decisions here, what do you mean >> yeah, do we take some money off the table? do we lower beta do we get

cnbc's morgan brennan joining us from the floor of the new york stock exchange. give us a sense. what is causing this market movement again today? it's up and then immediately down again. >> yeah, and absolutely, that is the multitrillion-dollar question here on the stock exchange floor this week. the picture here is really changing minute by empty. t minute. the keyword is volatility. we've seen stocks up, stocks down. mainly down. a lot of selling happening this week. the dow is down about 353 points right now. the dow is poised to close the week lower by about 8%. just to put that move in perspective, the last time we saw a weekly loss like that is in the heart of the financial crisis during the fall of 2008. it's a very story for the s&p and nasdaq as well. but before you read into that too much and think, oh, this must mean we're going back into a financial crisis, not so. at least not at this point. experts say this is really a much-needed correction at this point in time. it's really more of a reflection of the fact we've seen a tranquil and unnaturalliy is date market ove

with me at post nine, morgan brennan and mike santoli you saw carl and we're

morgan brennan is at the white house with the story. good morning. >> reporter: good morning. congressional negotiators appear to be closing in on a funding deal. if this agreement falls through, it's not clear whether there's any plan on how to keep the overnment open past midnight tomorrow. >> i would love to see a shutdown. >> reporter: president trump threatened another government shutdown if his border security border sre not met. not f we don't change it, let's wve a shutdown. we'll do a shutdown. we'llt's worth it for our country. >> reporter: but even fellow >> epubliicans at the table oppose a shutdown. virginia congresswoman barbara comstock. iniae don't need a government shutdown on this. i think both sides have learned that a government shutdown was nmss. >> you can say what you want, >> ng're not getting support from the democrats on this legislation. >> reporter: the president's shutdown threat came as both parties on capitol hill were actually close to a deal to avert one. >> i think we're on the way to we'ing an agreement. >> reporter: but the proposed gett two

with me at most nine, morgan brennan and david faber. carl kinqu

kate rogers looking at restaurants, and morgan brennan in the stratransimportanports. >> transportationervices up 4% from a year earlier. according to the labor department, auto repairs rose, and auto insurance really spiked that's one reason stocks passed gains today, progressive has been pretty robust airline fares, however, those fell 5% from a year ago as more competition leads to a price war, but do not let that fool you. inflation is manifesting there as well. brent up 14% over the past year, fuel is becoming a bigger part of airline expenses, trumped only by labor costs according to the aita, and passenger airlines like american and continental, delta, that means more cost management if the market does not support higher fares. that said, different for didn denting. you can see from this chart, dnc solutions, it shows dramatic spike that we've seen in drive van spot rates record highs signals more demand than supply. they do not expect that dynamic to let up, especially because you're going to start to see the contract price move up to go with that spot market price as the year g

morgan brennan there we'll keep an eye on all these movers let's look at how we finished on wall streetains for all the major averages russell just about at that threshold. nasdaq was up 1.5% the tech sector one of the better performers today as well. energy was the lone one in the red. we had cbs and shake shack earlier, we saw movement to the upside there cbs shares are still up 1% same goes for shake shack at that level let's get to some of the other big stories of the day now in our rapid recap. >>> battle back stocks on a four day winning streak now dow futures are pointing to 300 up points today at the open. >> markets get ahead of things, they get behind of things. the real world looks like it's in fine shape at the moment. economies are expanding all over the world. >> one stock that's coming back is boeing, it's up 20% this year alone and more than doubling over the past 12 months. >> i think you're seeing the market is responding to what is fundamentally a very strong airplane market. aerospace market globally. the fact that we're delivering on our commitments. >> last night,

morgan brennan with the details. >> general electric declining to comment but they are reportedly lookingll its industrial gas business, valued up you to $2 billion it's part of ge's struggling power division it comes on the heels of another potential sale to offload parts of ge's overseas lighting business to a former company exec for an undisclosed amount back in november, ceo john flannery said ge would exit at least $20 billion in assets trying to shore up its financial investment divestitures expected to include transportation, the health care i.t. business with a longer term plan that may include exiting ge's majority stake in baker hughes and quite possibly a break up of the broader blue chip company all of this after hundreds of billions worth of divestitures in recent years, including most of ge capital. investors are expecting an update in april at the shareholders meeting. >> thank you. >>> we mentioned semiconductors were one of the few bright spots in the market today. let's send it over to bertha coombs with more on that. >> they're pretty much holding up the nasdaq here tha

cnbc's morgan brennan is here with more. >> so, this is according to "the wall street journal.ng-rumored delivery service will initially roll out in los angeles a first step toward allowing amazon's third-party sellers to ship via amazon directly and be a service offered to other companies as well. so, in response to this, amazon saying, quote, we're always experiment for customers according to a source, the program is still in the planning stages, at least several months out. that said, u.p.s. and fedex shares falling today after this report even as i industry experts remain very skeptical on this. as for the companies, u.p.s. saying it continues to support amazon and many other customers and it doesn't make comments about their business strategies or decisionsregarding their utilization of u.p.s. services but fedex really did not mince words. they said the headline in today's "wall street journal" demonstrates a lack of basic understanding of the full scale of the global transportation industry fedex says no single customer makes up more than 3% of revenue for u.p.s. it's no