fornightly business report," i'm morgan brennan. >>> and now to nvidia, whichar alsod of weakness in china. the semi conductor company said that quarterly revenue will fall short of expectations. it is just the latest company to blaming slumping sales on a slowdown in the world's second largest economy.se that c nvidia shares to slump nearly 14% in today's session. se detailsn has t for us. >> it's become a common theme this earnings season. tech compani warning investors that a weakening chinese economy is impacting their results. the latest victim is nvidia. the chip maker ss it now sees weaker-than-expected sales from its gamin division due to weakening macroeconomic conditions, especiall china. the fourth quarter was an tr rdinary, usually turbulent and disappointing quarter, saida nv founder and ceo. the company also reported challenges in its business of elling chips used in data centers, saying that a number of deals in its forecast didn't ose in the last month of the quarter, as customers became ca more ious. other companies have recently called out china as a problem o. earl

morgan brennan, now to you >> brian sullivan, we are looking forward to it.nk you. >> thank you >> the dow is back near session highs right now. 24,233, moving closer to escaping correction territory. the level there would be 24,265. let's get over to the cme now and rick santelli for the santelli exchange. rick >> thank you, morgan i would like to welcome my guest, dr. joseph gagione. joseph, thank you for joining me >> it's a pleasure to be here. >> all right you wrote something that i really agree, but i want to put some context in the jobs report we had earlier this month, we had strong wages, really strong over 300,000 non-foreign payroll increases, and we saw the participation rate move up where we're drawing more people into the labor force having said that, you wrote something that said the market's blind to the possibility of rising inflation can you explain what you meant by that comment? >> sure. i think that we haven't seen inflation above the fed's target for a long time now. and i think people are sort of forgetting the fact that ultimately, we

by the way, morgan brennan chimed in.sed to work at a donut shop and says that donuts do not have to have holes because there's two shapes rings and shells >> i'm starting to agree because jelly-filled >> last appearance ever. no thank you very much. >> thanks. >>> time for your morning rbi. today it's definitely not random let's call this relevant and important. not random, but interesting. 800,000 federal workers are waking up to another missed paycheck due to the shutdown new study by -- it shows that all those workers will now be owed a collective $6 billion in back pay that number just continues to grow as the d.c. dysfunction drags on just to keep in mind, some 800,000 federal workers have not been paid in a month yes, they will make that money up most of them if you are a contractor, remember, if you are a contractor, this is lost money you will not get it back in the shutdown, that's it for the worldwide exchange "squawk box" is next because your investments deserve the full story. t. rowe price invest with confid

i am carl quintanilla with morgan brennan and jon fortt we are awaiting comments from the president at defense we're going to bring those to you as soon as they begin. meantime, we'll start with tech names. netflix reports tonight after the bell it has been on a tear lately, up more than 50% since christmas, leading the faang basket

morgan brennan takes a closer look >> so apple, by far, the biggest u.s.o do this so far not alone here last month, fedex fueled fears about slowing global growth citing europe and also china u.s. automakers like ford seeing auto sales plunge. tiffany's highlighted strong pattern of chinese consumers pulling back on overseas purchases. so did european name lvnh. and starbucks, despite a big expansion, now says same store sales growth in that country could be as low as 1% in the longer term. all that said, quite a number of large u.s. multinationals that have expo sure sure to china, we has not yet sounded the alarm. 3m was still forecasting growth broadly in china on "mad money" recently, boeing shrugged off the concerns, citing the strong demand for aircraft longer term in that country. investors are waiting for the upcoming earnings season to get a better sense of the damage i think that is why you're seeing some of these big multinational names like united technologies, like 3m, like intel, like cisco trading lower today. even though at least so far bas

. >> i'm morgan brennan in for sara eisen apple earnings on deck set to release at 4:30 p.m.astern sharp. >> i'm excited few more exciting earnings releases huge implications for other stocks and of course - >> new metrics. >>> plus, some investors blaming the market's volatility on the fed shrinking the portfolio. we'll discuss with don kohn. 59 mupinutes left of trade today communication services and technology that lead the declines in terms of sectors in the s&p. consumer discretionary and industrials the only outperformer. >> dechfense contractoring lift apple is lower ahead of the results. now to the reporters on earnings dom and josh dom, let's start with you. >> morgan, wilfred, a lot of numbers. we are at the quarter-mile mark. 27% of companies within the s&p 500 reported their numbers and of those 27% of the companies 74% of companies have beaten analysts' estimates and 24% missed estimates and a positive start to the earnings season with regard to growth, it is still a positive story there, as well with the companies that reported and if all other companies in the

with me, morgan brennan and david faber.aking a look at the markets, the dow is down triple digits. stocks on pace for the third straight positive week, first time since august last year. this as tech feels pressure with most of the faang names down netflix bucking the trend, up more than 20% to start the year, up 4% today. a different story for apple. the company plans to launch three iphones in 2019, not a surprise, they did that in 2018, despite chinese retailers slashing prices there where phones tend to sell for more consumers saying the phones aren't worth the cost. a lot of market headlines to digest bring in larry haggerty, managing partner at ljh investments advisers, and bruce b bittles. good morning happy friday larry, we're starting to get into the back half of january, earnings eason whether you're looking at the read on some retailers which yesterday didn't look so hot, particularly at macy's, even names like apple which looked strong heading into q4 have tailedoff, what are you expecting? >> i think, jon, with

i amcarl quintanilla with morgan brennan and jon fortt at the new york stock exchange.ews today out of netflix, raising prices for u.s. subs as much as 18% effective immediately for new users. the biggest increase since they launched the service 12 years ago. stock is moving higher the most popular plan with hd streaming on two devices at a time, a hike to 13 mark mahaney and math thornton are on the phone with us mark, we talked about something like this happening a long time. what does it mean now that it is finally here >> this company is flexing its pricing muscles. this is the fourth time they've done this. most recently did it at the end of '17 you have the numbers right, about mid teens percentage, 15% increase in pricing. what it allows them to do is take that to the bottom line, price increase is pure profit, or better fund, better finance the content obligations. so just to put context around all of this, if this price increase successfully goes through, you're talking about a billion in incremental revenue and profit to netflix next year sus just in the u.s.

i am carl quintanilla with morgan brennan and jon fortt we will begin with markets the first full tradingof the year, kicking off with major averages mixed after a volatile week that ended with a big rally. dow and s&p closed up. tech stocks sparked the rebound. have stocks reached a bottom or is more volatility ahead good morning i wonder if the action friday, the tone from the fed, some m and a, levels today are making you feel more constructive or not? >> a bit more. honestly, we remain in cautious stance we're concerned about two main issues one is around peak earnings, renormalization of earnings that many people have talked about and the other is as you know double line that rates will continue to drift up we're worried about pressure that will place on multiples >> the relief we're sensing now with rates you believe is -- >> i think so. a lot of pressures that we see in terms of the versupply, the deficit spending, et cetera, that will continue to put upward pressure on rates. i think that's something that you need to pay attention to as an equity holder when you think about how se

i'm carl quintanilla with morgan brennan at the new york stock exchange we have jon fortt at the cesgin with the tech stocks off early rally. nasdaq dipping negative. in the meantime, dow jones industrial average says u.s. and china are narrowing the differences on trade president trump says talks are going well samsung is cutting the outlook cutting the weak profit outlook. for more on the tech names you need to watch, let's bring in mark kelly, paul holland good to see you, gentlemen >> we need to talk about this animal. >> what is in your lap, paul >> we have a slow lloris he is from conservation ambassadors. it is a group rescuing exotic animals. he will help us tell the story of tech investment in china. right now, he will go and have a snack of grub worms. >> while he is doing that, what is the story of tech in china? >> we have a tale of two cities here what we have from the trump administration with the aggressive approach with tariffs trying to shutdown a lot of the inter connect with the u.s. economy and chinese economy. you have others in tech doing business as usual. i th

. >> i'm morgan brennan. great to be here especially with led zeppelin playing.ing up, national economic council director larry kudlow joins us to talk about the economy, today's selloff a first on cnbc interview. plus, valueact jeffrey ubben talks at the world economic forum. >>> ibm reporting after the bell instant reaction to the numbers with the cfo jim kavanaugh let's get to the markets we are very close to the session lows with one hour left of trade. there's the s&p 500. down 1.8%. the low of the day was 1.9 you will see the dow is down 406 points at moment the dow in the dow was 435 and the nasdaq down 2%. >> every sector in the red consumer discretionary worst performing and the latest headlines of u.s./china trade talks may be hitting an impasse right now. but we're going to begin today with a latest on those trade talks. kayla is in washington with those headlines. kayla? >> the development that the market is watching so closely is the u.s. decision to call off a meeting expected to take place this week. two of china's vice ministers were planning to v

. >> and i'm morgan brennan. coming up i'll talk to ameritrade's ceo in a first cnbc interview. >> and jim breyer in davos let's check in on the markets. s&p 500 intra-day splitting the difference from its highs and lows first few hours positive, next few negative and we are essentially flat with one hour left of trade. the dow, a few individual names making that look like a stronger performance than that is, united technologist procter & gamble giving it half a percent gain. >> earnings the name of the game there. >> indeed. let's start with blue chip stocks morgan has utx and aditi roy let's start with you, seema. >> driven by its beauty segment, thanks to oil of olay. p & g pointed to strength in china, which cfo referenced on the analyst call a number of products raised prices last year the question is whether this trend will hold, if the macro environment worsens in the coming months. best day in four months, up 4%, and outperforming its rival, kimberly clark wilf >> seema, thank you for that don't forget p

i am here with morgan brennan and david faber.arl has the morning off we begin this morning with retail shares of macy's getting crushed after reporting weak holiday sales results, slashing its outlook. other big retail names like target and kohl's feeling the pain courtney reagan is back at headquarters with more courtney >> reporter: hey, jon. i'm actually standing in indianapolis here, but you're right, that disappointing sales result from macy's is dragging down the entire retail sector. for the holiday season which macy's defines as november and december, sales through 1.1%, double digit growth line but the ceo says while sales are stronger on black friday weekend, they did weaken mid december and didn't return to expected patterns until the week of christmas as a result, the department store is lowering the full year forecast for earnings, sales and margin macy's reported four straight quarters of same store sales growth investors wonder if that trend is at risk shares down more than 18% today. this could be on pace for the

i am carl quintanilla at post with morgan brennan and mike santoli. jon has the morning off.cks on a bit of a tear, all coming off four straight positive sessions. dow and s&p had the best week since november, on pace for the best month in nearly two years markets were closed monday the government shutdown, headlines from davos, china trade and earnings are all driving this morning's action. >> and that's why we're going to stay with the markets right now. global growth concerns worrying investors with silicon valley's most prominent business leaders voicing recession fears from davos today. take a listen. >> the u.s. economy is slowing from where it was. remember, two quarters ago was 4.2% growth which is unsustainable for a large country like the united states we'll probably grow somewhere around 2.5%, maybe 2.75. i don't know where that came from the last two months of the year recession, is it minus one, plus one, let's not get technical about that too much. there's high likelihood of significant slowing in 2020. >> i heard some folks say maybe we should get a small reces

good morning, welcome to "squawk alley" with morgan brennan joining us on the news line, john pistol, also deputy director of the fbi under gw bush and obama and former northwest ceo talking about the activity we have seen in the av space this morning thanks very much for the time. >> thank you >> john, how is this being read within tsa circles today >> john, can you hear me all right. doug, i'm going to turn to you while they work out the audio issues with john you have seen your share of interesting events in the aviation industry. shutdowns don't normally lead to things like this >> this would be a first sort of goes back to the recollections of the air traffic control strike when president reagan fired all of the controllers and the industry had to recover from that >> how did that play out, how would you compare that situation to today if the partial shutdown continues on and we see more and more workers not come to work? >> well, obviously the industry was much smaller back then and that was a calamitous event for the industry and took a long time to recover. here i think you've

i am carl quintanilla with morgan brennan, jon fortt at post 9 apple shares are still reacting to newshone price cuts in china, and netflix shares down ahead of earnings later this week amazon is in focus as the bezos divorce story unfolds. mark mahaney is with us, and dan ives and tom forte good morning to you all. let's do netflix given the run up since christmas eve, are we coming in too high in earnings season >> no, i don't think so. i'm more struck by instead of the runup, the run-down the last couple of months this is one of the most dislocated of large cap internets, this and facebook we had numbers off the september quarter that went up we think the outlook is positive for this year. i know there's a lot of overhang with the competitive ott launches, apple, at&t, time warner, disney but we think netflix can power through it, add close to the same number of new subs in '19 as '18 if that's true, we think the stock can continue to rally. >> pose the same question to you. given it is the first big faang to report, to what degree does it set a tone for the quarter? >> generally i

"squawk alley" is live ♪ ♪ morgan brennan, jon fortt at the new york stock exchange.p, breaking data on eia inventory. leslie picker has that >> hey, carl that was delayed a day by the monday holiday oil inventory shows a build of 8 million barrels compared with estimates of 750,000 barrel drop gasoline inventory up 4.1 billion barrels con sense us called for a build of 3.1 million barrels. gas spiking up 3% on that news, natural gas. >> thank you for that. >>> moving to the big story, wilbur ross telling cnbc that the u.s. is miles and miles from any trade deal with china. take a listen. >> there's been a lot of an ' s anticipation, but we're miles and miles from getting a resolution, and frankly that shouldn't be too surprising. trade is very complicated. there are lots of issues, and structural reforms that we really think are needed. >> and this as goldman, sachs ceo david solomon sends a warning that chances of recession in the u.s. next year are about 50/50. joining us, u.s. investment strategist at and shawn matthews, capital investment founder. thank you for b

i am carl quintanilla with morgan brennan and jon fortt we are awaiting comments from the president athe pentagon regarding national defense we're going to bring those to you as soon as they begin. meantime, we'll start with tech names. netflix reports tonight after the bell it has been on a tear lately, up more than 50% since christmas, leading the faang basket higher. the tech sector is off the recent high in october for more on where investors should look for value in tech, good to have you back. >> thanks for having me. >> what a crazy december and run up into the middle of january. which better reflects mood >> it is funny, you look at last year, markets were down 6%, nasdaq down 4%, tech down 2% if you look at the full year. you think about heading into this year, you had a strong ipo backlog last year, best record since 2014 you had tremendous m and a, best since 2015 before that, couple years before that, so you had a strong backdrop investors, you turn it to investors, they're looking for that alpha you look at the average tech ipo, they have return over 30% by playing in ipos

"squawk alley" is live ♪ >>> good tuesday morning with me, morgan brennan, david faber.arl is on assignment. markets are turning around in a negative way the dow was up earlier. s&p down nearly a half percent and nasdaq down 1% even. >>> turning to tech earnings, major names on deck with apple today, amazon, facebook, microsoft set to report. twitter, snap, alphabet are next week our next guest saying some social names should expect revenue decel. with us now for more, mike and mike michael nathanson, and senior markets commentator mike santoli. good morning, guys michael nathanson, first, what to look out for with advertising driven names we have been talking so much about china, but these names have little china exposure is it all up side or are there potential points of concern? >> i think this is a proxy for global growth ex-china europe is a big component of digital advertising. the uk is a big component. what i am worrying about is slow down in uk retail sales that filters down to online advertising. germany, italy, france what i am picking up is that outside the u

. >> i'm morgan brennan in for sara eisen. >> coming up, niall ferguson, why he says china is the nextlobal crisis. >> plus, big earnings coming your way after the bell from intel, starbucks andnorfolk southern just to name a few. instant analysis >>> let's get right to breaking news on the government shutdown. ylan has more from washington, d.c. >> reporter: the senate is voting on president trump's proposal it appears that the democrats do have the votes to block that measure from moving forward and after that vote finally concludes the senate will then take up the democrats' plan to fund the government through february 8th without any additional funding for the border wall. now, one democrat did cross party lines to support president trump's plan that was joe manchin of west virginia but there are also several republicans who are expected to support the democrats' plan to reopen the government for a limited amount of time and you are seeing some bipartisanship, very little bit of it here on capitol hill and not expected to be enough for either of the measures to continue to advance.

. >>> welcome back it's time for rapid fire here with their takes are morgan brennan and guy adami andcott wapner shares of constellation brands falling after the company gave weak guidance for this year and is pushing into the cannabis market but wrote down the growth >> doesn't seem like a big deal but maybe their business has been declining for the last couple of years and the reason they got into cannabis is because they had that vision and visibility and did this hail mary 15 times forward earnings, they say it's cheap i say valuation probably has to come down. these are declining businesses they know it >> that's it it's over? >> i'm not saying -- >> hail mary wow. strong words >> throwing a hail mary? >> it just comes natural >> it was a little bit of a hail mary >> is cannabis worth it? >> yes, i believe it will be not over the next couple of months but next 5 to 10 years. this will be a great investment. just not going to pay dividends right away >> here's what's so fascinating. there's a social scientist aspect in to this. you have folks switching to cannabis from wine and be

. >> i'm morgan brennan. great to be here especially with led zeppelin playing.rector larry kudlow joins us to talk about the economy, today's selloff a first on cnbc interview. plus, valueact jeffrey ubben talks at the world economic forum. >

i am jon fortt with me, morgan brennan, sara eisen.l is onassignment we begin with nvidia getting crushed after lowering guidance on q4 revenue, citing weakness in gaming and data center divisions. the ceo jenson wong saying q4 was an extraordinary, unusually turbulent and disappointing quarter, pointing to china specifically on that one the stock is currently down almost 13% bob pisani is back with us to talk about that. bob? >> what we're doing is lowering the global growth expectations for earnings that's not priced in now markets are dealing with three big issues first, central banks and how much they're easing into dovish positions, china trade talks, and the big issue for today, slower global growth, not just in china but europe where numbers have been poor the last few months nvidia's warning was prompted by declining revenue in china and taiwan the two of them together makeup 50% of their revenue u.s. is only 13% of their revenue. caterpillar is more diversified, but blamed tariffs for higher steel cost as a factor and slowdown

. >> i'm morgan brennan in for sara eisen. >> coming up, niall ferguson, why he says china is the nexts coming your way after the bell from intel, starbucks andnorfolk southern just to name a few. instant analysis >>> let's get right to breaking news on the government shutdown. ylan has more from washington, d.c. >> reporter: the senate is

. >> and i'm morgan brennan.ameritrade's ceo in a first cnbc interview. >> and jim breyer in davos let's check in on the markets. s&p 500 intra-day splitting the difference from its highs and lows

i am carl quintanilla with morgan brennan, jon fortt at post 9 of the new york stock exchange a littleflix reference there. we're going to begin with that name, beating the street on the bottom line, falling short on the top, dragging shares lower the streaming service saw domestic and international subs exceeding estimates. for more on that mixed quarter, bring in justin patterson and matthew thornton good to see you both >> good morning. >> quite a few wrinkles here we know about the runup going into the print, and given action today, investors seem to have sniffed out a lot of what we got in the report. what did you think >> i think wrinkles is an interesting term, let's be fair. strong move, year to date, and the wrinkle is transitory. the operating margin weakness for q 1 is a function of fx more than anything else, as you get benefit of the price increase rolling through the second half, and usually you see natural margin expansion and revenue acceleration we like what we saw, we would be buying here. >> that's the bull case. we have been asking discussions how we judge from this

with me, morgan brennan and david faber. carl quintanilla is off.begin with tech stocks mostly in the red again amidst another market sell-off to start 2019, although we're well off the lows major averages were flirting with their worst first day of trading in a new year since 1983 but they have recovered a bit. the nasdaq's four-day win streak still in jeopardy, hovering just above what some call bear market territory, 20% off the recent highs. tech is today's worst performer so far so with faang stocks a mixed bag, which names in tech should investors be looking to for value as we kick off the new year and is today's action a buying opportunity to take advantage of anthony and dick are both with us now good morning, guys, happy new year. >> good morning. >> happy new year. >> happy new year. >> anthony, i want to start off and just talk about apple in particular that's a stock, and i want to kind of -- >> i actually don't cover apple, i just want to mention that. >> i know you don't because i don't want to dig in specifically to apple, but i want

i'm carl quintanilla with morgan brennan.on fortt is live in las vegas from ces a lot more from jon in just a few moments, including a sit-down with micron's chief, sanjay mehrotra. we're going to begin with the major averages continuing to kut some recent losses on hopes of surrounding u.s./china trade talks and recent dovish comments from the federal reserve just today, fed president bo bostic, a patient approach is now warranted. joining us in a cnbc exclusive is callster's chief investment officer, the largest educator-only pension fund, $219 billion under management chris, good to have you back good morning >> good morning, good to be here >> we've sort of followed you as we've gone through the end of last year and now into the new year i wonder what you make of this run, if you think expectations have been set low enough, as we now await some q4 earnings >> oh, i think they have i mean, that was the worst december in history. so, i think that we're going to see a moderate january and at least expectations have come down

. >> i'm morgan brennan in for sara eisen apple earnings on deck set to release at 4:30 p.m. excited few more exciting earnings releases huge implications for other stocks and of course - >> new metrics. >>> plus, some investors blaming th

i am jon fortt at post 9, morgan brennan and sara eisen carl has the day off we begin this morning with apple. stock plummeting after the company announced holiday quarterly revenue in a letter to investors saying i think sales were weaker than expected, particularly in greater china. goldman, sachs, rod hall, sits down with us after he cut the apple price target first, josh lipton had the big interview of the day and exclusive with tim cook yesterday. he joins us now with highlights. josh >> jon, i sat down with tim cook he explained why his company slashed revenue guidance it was because of the iphone cook pointed his finger at china. >> as we look at what's going on in china, it is clear that the economy began to slow there for the second half. and what i believe to be the case is the trade tensions between the united states and china put additional pressure on their economy. as we saw as the quarter went on, things like traffic in our retail stores, traffic in channel partner stores, the reports of the smart phone industry contracting, particularly bad in november, i haven't seen th

i'm carl quintanilla with morgan brennan and david faber here at post nine of the new york stock exchangeack from the world economic forum in davos, switzerland we'll see her here on market dow up 221 most components in the green as we continue to be watching for signs on a compromise on the shutdown by the way, the faa, multiple reports now that the ground stop at laguardia, and they are blaming in fact air traffic controlstaff shortages. >> that is a tough airport to see something like that happen at in particular well, our road map starts with intel slumps, starbucks jumps. we break down this morning's big movers, earnings movers, and hear from starbucks ceo. >> 800,000 federal workers missing a second paycheck amend an ipo gets put on ice. >> hedge funds, well, they continue to take a lot of hits coming off what's the worst year they have seen since the financial crisis is there a bigger shakeout around the corner, and would a smaller industry be better for the managers we'll discuss that. >> big news out of washington. roger stone, longtime political adviser to the president has been

morgan brennan has more on caterpillar's big drop bob pisani at the nyse and then bert bertha coombs.organ >> cat down 9%, this is a big miss revenue was in line but the outlook really taking center stage. a modest sales increase. that's versus the 16.5% revenue growth that investors anticipated. takeaway, higher costs coupled with slower global growth and the u.s. is strong china comprising 5% to 10% of sales for cat especially in focus after strong growth in recent years the company expects that market to be flat this year and as other areas grow latin america still very weak and political and economic uncertainties in europe, middle east a watch item for them as for higher costs, materials and a tight freight market have meant it costs more to manufacture excavators, the heavy machines cat's been raising prices so far and they haven't offset the costs as expected and does as the earnings call today believe it will happen this year nonetheless, investors are mulling what's next for this company, whether they have hit a peak in terms of this cycle for machine sales and that's why you

i'm carl quintanilla with morgan brennan and david faber. sara eisen is in davos, switzerland.worst gain in a couple of weeks, january 3rd or so. a full percentage decline in the russell and the ndx. >> our road map today starts with stocks falling. investors fearing weak data out of china and the imf renewing its warning of a global economic slowdown imf managing director christine lagarde joins sara from davos. >>> johnson & johnson with strong results we'll talk to the company's cfo. >> plus, shares of ebay up substantially this morning elliott management announcing a large stake in the company, pushing them to do significant things to create value we'll give you the details >>> markets opening lower as the imf cuts its global growth forecast for the year sparking new concerns for investors recession fears taking center stage at davos take a listen. >> there's a significant risk of a re -- a recession, is it minus 1? is it plus 1 let's not get technical about that too much. there's a high likelihood of a significant slowing in 2020. >> we'll probably grow this year somewhere

. >>> welcome back time for our etf spotlight morgan brennan is looking at industrials.y's trading with union pacific as one of the top gainers due to their addition of a new man people seem to like a lot >> a whole lot a big move for that stock. industrials, name of the game today. xli industrial select spider etf. off highs of the morning but still definitely an outperformer big contributor. union pacific. top holding in that fund, it's up 9%. a big move for that stock. the freight railroad hired canadian national veteran jim vena precision scheduled railroading as part of the longer 2020 plan at that company. vena is well regarded by the industry and wall street it's an operating strategy that's been controversial but it's also made investors a lot of money over the years and such a big reaction today norfolk southern also adopting precision railroading is also up about 2% as well it's worth noting dow transports are trading out of so-called bear market territory with this move higher today. but it isn't just those transport stocks bouncing either caterpillar, 3m, uni

i am here with morgan brennan and david faber.we begin this morning with retail shares of macy's getting crushed after reporting weak holiday sales results, slashing its outlook. other big retail names like target and kohl's feeling the pain courtney reagan is back at headquarters with more courtney >> reporter: hey, jon. i'm actually standing in indianapolis here, but you're right, that disappointing sales result from macy's is dragging down the entire retail sector. for the holiday season which

i'm david faber with morgan brennan and mike santoli we're at post 9.a has the morning off let's give you a look at the markets. a mixed bag. the s&p is up, but the nasdaq and the dow both lower actually, the dow, sorry, that is up as well. awaiting apple earnings after the bell which is putting up a good performance so far in the first half hour of trading up about 1% we've got some economic data crossing the tape. want to get to rick santelli for that rick >> yes, david. we're looking for our january read on consumer confidence from the conference board expecting a number around 124. it's a disappointment. 120.2. 120.2. definitely a miss. and last month's 128.1 moves down to 126.6. when was the last time we were at these levels? well, actually it was july in july of 2017 we were at 120 even july of 2017 so this definitely is a marked turn lower but do keep in mind these are still pretty lofty levels. still well above where we were heading on these numbers before the credit crisis hit in '03, '04, '05, '06, '07 weren't at these levels but significantly

i'm carl quintanilla with morgan brennan.on in just a few mo

i am carl quintanilla with morgan brennan, jon fortt at post 9 apple shares are still reacting to newsx sha

morgan brennan joining us now.e, you'll have a lot more after the call at 11:00. >> stay tuned for 11:00. >> a lot of poem wanting to hear more as we say gran layerity on the outlook in particular. >> absolutely. you just mentioned the shares are getting slammed,ing down 8% right now. this is a big move for this company, and it is leading the dow lower right now. a big miss for the manufacturer of earth-moving machinery. 255 per share. 44 cents shy of estimates. revenue was in line, but cat also giving a disappointing it 2019 outlook 1175 to 1275 per share on, quote, a modest sales increase blame china. as asia-pacific shares growth is slowing for the company, demand for construction equipment, specifically even falling 4% in q4 not expected to go away, this softness another key issue to watch costs, thanks to tariffs on metals and this tight freight market the company plans to raise prices or plans to raise prices on excavators, bulldozers, other items this year to offset cost has the growth cycle already peaked e

with me, morgan brennan and david

> harley-davidson reporting fourth quarter earnings and revenue that miss street expectations morgan brennan more. good morning >> good morning, becky i just got off the phone with matt levatich, the president and ceo of harley-davidson he says 2018 play out according to expectations. they did see softness in the second half of the quarter. that would be the explanation for the miss on shipments for q4 harley says it's added 52,000 additional riders in the u.s. to end 2018 versus the year prior they've had this big multi-year initiative underway to recruit more riders here in the u.s. they say they have a big data base that's collecting all that intel. but no details yet on what that demographic breakdown looks like. that said, levatich also adds that the harley core rider continues to age, continues to leave the sport. one of the other challenges is to keep them riding to that. knowing that harley grew in the heavyweight share space here which is tied to that core rider. al in terms of the retail sales for q4, we did see a worldwide decline of 6.7%. more than 10% here in the u.s. which is p