gene munster: that really depends. it will spark understanding for why people will want to go out and buy the watch. they gave some great examples, but some might be a small case. for example, remotely open your garage door. extremely valuable for those type of people. as far as the mainstream apps, that is something that will take time. reporter: they showed an uber app, a fandango app, all these apps that work on the phone. what does it bring you that the iphone doesn't? gene munster: if you think of a typical teenager gets about 6900 messages per month or using your phone for payments on your wrist, the same reason why the pocket watch was displaced by the wristwatch. it was the same features but the simplicity of it and the friction. i think that is one of the parts is underappreciated. even though it doesn't sound like a big deal to pull out your phone, we will enjoy it. reporter: i wonder what kind of social behaviors we will now start to see. people glancing at their watches all the time. it's not necessarily a

we're talking to gene munster.s anything about today's event launch apple to a $1 trillion market cap? stay tuned. we've got 51 minutes before we see the closing bell. in a steel cage matchup of the ages, the latest round goes to gm's mary barra. u.s. car giant announcing a $5 billion share buyback. why is that steel cage death match? it shuts down an outspoken activist investor, harry wilson, who's been agitating to get on the board. he's giving up his quest, so she's doing a little bit of that, little bit of this. he goes away. mary barra's latest move will likely please berkshire hathaway's warren buffett who has vocally opposed wilson's board ambitions during his recent shareholder discussion and letter. shares of gm jumping following the news, currently trading up a full dollar. get to mcdonald's, the dow component getting a modern makeover that a lot of shareholders have been agitating for. the fast food giant has vowed to transform itself into a, quote, modern, progressive burger company following its chilly

. >> it's like "the munsters."

the analyst who says sold, gene munster defends his ebay call.rilling for deals in the energy space, the worst sector today. should you buy on the dip. apple's first day in the dow. welcome. right now the index is -- lower by two-thirds of a percenten. apple lower by a third of a perce percent. much more ahead on the halftime report. get where i am. and i didn't get here alone. there were people who listened along the way. people who gave me options. kept me on track. and through it all, my retirement never got left behind. so today, i'm prepared for anything we may want tomorrow to be. every someday needs a plan. let's talk about your old 401(k) today. the smartest or nothing. the quietest or nothing. the sleekest... ...sexiest, ...baddest, ...safest, ...tightest, ...quickest, ...harshest... ...or nothing. at mercedes-benz, we do things one way or we don't do them at all. the 2015 c-class. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. jute call of the day, a downgrade for ebay. gene mun

piper's gene munster on the apple watch.app, you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. ♪ >>> good morning. wac back to "squawk on the street." i'm carl quintanilla with simon hobbs, david faber at post 9 of the new york stock exchange. sara eisen at the nasdaq which hit a milestone, closing above 5000 for the first time in 15 years. we are giving some of it back. the dow is off almost 90 points. everyone, though watching the nasdaq this morning. sara is there. good morning to you. >> good morning to you, guys. as you are saying carl nasdaq backing off from the 5000 level this morning. everyone's saying this time is different, it's not 2000. the cover of the usa today, this is not your father's nasdaq, w

our committee, and taken the focus away from the true victims of our community for instilling fear munster community--amongst so is curl and her boyfriend at all--a lesson apology >> charles :he said the kidnappers had made a demand for return and police officers say that the investigation will continue and that the to the maybe facing federal charges. >>:the investigation is still not complete, for still some loose ends to tie at but the conclusion of investigation if we feel there is enough of it-- evidence to move forward. we will be filing charges and the maybe federal charges. >> charles :appears that the suspect may have to pay the fees >> pam :thanks charles. now to j-r stone in southern california. j.r. - what are the people who this? >> j.r. :i talked with a family friend who knew denny's for more than 20 years and he was shocked by tonight's developments. as for this evening at all was quiet outside of his father's department that is often the distance. it does not appear that he is rather arrived back from the bay area. we saw denise huskins for a matter of seconds earlier today

we had all the munsters of the p5 plus one the five permanent members of the security council as well as germany sitting on one side of the table and the the you're iranian delegation on the other the first big meeting like this of this session crucial meeting. the fact that foreign minister lavrov says he may be leaving suggests to me it didn't go that well and certainly he doesn't feel that right now there is a deal to sign. we are getting close and in any negotiation of this complexity that's been going on for this long when so much is at stake one possible tactic when you get near the end is to threaten to walk away. that may be what he's doing sergey lavrov is a very, very difficult task. he he doesn't think this is an important deadline. other countries like iran say the real deadline is the end of june. in many ways, this deadline is here for u.s. reasons for u.s. domestic reasons because they know that the critics in congress are circling and they'd like to try to get something now before the threat of new sanctions when congress returns. >> is the feeling that they are actual

gene munster, what did you think when you heard not only that apple is going in.at stock split recently. we all knew what that was about. what did you think about at&t going out as well? >> well, i guess just from apple's perspective if i take a two-year look at this i'm not surprised given they have been more advantageous for shareholders, doing the stock split, the growth of the company. when i take a step back even further and think about covering this for a long time and the company being on the brink, it really is a historical event and it's pretty special. >> todd what does it mean for investors though? is it time to buy at&t and sell aple? i'm not sure about that but i think the importance of american tech and tech globalization moving into china and emerging markets is huge and apple shows that. replacing at&t brings telecom in lice with the s&p 500. i think it makes a lot of sense as we see not just apple but the american tech sector in general move internationally and showing a fair balance of what it's doing in the united states. >> dawn i know this is

gene munster joins us to explain.are you envisioning? >> well think of this as you said a profound change this is the next big change the next evolution in computing. what this is is google glass that is not geeky or creep r. and something that take the real world and overlays the virtual world on top. let's me give you a couple of examples. one would be the idea of something as basic as gaming or when walking down the street looking at a building knowing what the building is looking at a restaurant knowing the menu looking at a person knowing that you've met them in the past never forget anyone's name. as you look at tech giants like facebook and google google believes that the next evolution is going to be come around augmented reality and replace the display as we know it whether it's a phone or computer. it's going away. it's going to take 10 20 years to do it but apple's working on solving that problem. >> this coming from the company or your sources? how did you dig this up? >> well we -- as we did more work aro

. >>> relief workers surveying the damage from a munster cyclone which hit van what tu.he death count at 11. it could rise. >>> crews are clearing up a pileup involving at least 50 vehicles including several tractor trailers in ontario, canada. police are blaming this morning's accident on poor weather. no life threatening injuries have been reported. >>> american express planning to team up with seven companies including macy's, at&t and exxon mobil to launch a cross brand loyalty program. that program called plenty would begin this spring and operate like a drug store rewards program. american express already operates similar programs in poland, germany and italy. that's your cnbc news update for this hour. let's get back to "squawk alley." >>> thank you, sue. bravo host andy cohen revealing his next project announcing he's teaming with sirius xm to develop his own channel. let's get to sara eisen and simon hobbs on the floor. >> hey, we're gunning for our reality show. joining us, welcome the show of "watch what happens live" andy cohen the brains behind "real housewi

trade munster, merrill lynch, doesn't matter, you get the margin instantly whereas you wait 30 days orto get the mortgage paperwork in before any bank can lend you money. >> longer. >> two months. >> i think i misspoke on american airlines it's had a rough go, down 30%. >> three biggies that we all talk about all the time, right. >> the nasdaq still trying to beat its own record. three star tech fund manager ken allen joins us next with his top three picks in the sector. plus a lumber liquidators bull. bob chapman taking that long position. he's coming up exclusively on the half to defend that position. ♪ building aircraft, the likes of which the world has never seen. this is what we do. ♪ that's the value of performance. northrop grumman. so if you get a trade idea about, say, organic food stocks, schwab can help. with a trading specialist just a tap away. what's on your mind, lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move, wherever you are. and start working on your next big idea. ♪ >

i do agree with gene munster who you had on power lunch when he was talking about some of his information. i'm not saying either of us are right. i'm hoping we're wrong. i've been long this stock what seems forever. i'm hoping for this. he talked about 8 million in terms of the iwatch. that's somewhere closer to where i would be right now. anything above that i think would be fantastic. but i think what was most exciting today actually is macbook air they introduced, the ultra thin and all the different capabilities, the new processor. that was the exciting thing. that's when the stock popped. but the watch unfortunately, you could see it in the stock today. as they talked more and more there was less and less. >> it's loo a lot like having a coach on your wrist. >> you can get phone calls on your wrist too. >> i've always wanted that. >> we're having four financial coaches on your tv set. how with that? nice segue. here is what i'll say about the watch. until someone comes into the play -- >> and coming from a man who sold apple on friday. >> right. i sold apple shares on friday. say wha

i heard jean munster also say that teenagers spend -- send about 6000 text messages back and forth everyonth. lisa: do they have $17,000 to spend on it? olivia: this is a nice continuation to our twitter question of the day. will you buy the apple watch? will you pay $10,000 for the gold what? please tweet us @bsurveillance. we are streaming on your tablet, your phone, and bloomberg.com. ♪ tom: good morning, everyone. "bloomberg surveillance." dow futures are now -119. -- -1.19. ugly in terms of dollar strength. the euro, news out of greece as well, 107.52. morning must read -- a smart note on the shortage of pilots. this is not just the u.s., but asia as well. last year boeing estimated between 2014 and 20 or so years out, the asia-pacific region will need 216,000 new pilots. the region is capable of training only 5000 year. western manufacturers need to offer their support. this is where a movable object overcomes all events. monica, you have seen this with your work at jpmorgan. private bank, we can be as cute as we want, but there are these foundational forces that change the dialogu

. >> it's like "the munsters." >> all that good stuff. >> bringing back -- anyway, congratulations to >> "heat index" coming up. let's go to rob with a check of the weather. >> hey, guys, we are outside. yeah, we are full of energy. got some folks from florida. the gators here. how do you like clouds earlier. you told me earlier. >> we like clouds. >> check out these cool clouds taking over south carolina, columbia, south carolina. undulatus asperatus. yeah, baby. those are wave clouds for the most part. not officially classified but they should be. and they may well be before this year is done. they sometimes form after a day of severe weather. we're going to have severe weather i think across parts of northern texas, across the red river in through parts of oklahoma. likely just strong winds and some hail, but the possibility of tornadoes exist not only today but tomorrow we shift it a little bit farther north into omaha. >> good morning, i am meteorologist mike nicco with the bay area forecast. check out the plagues. -- flags. sunny and cool and dry breezes through tomorrow. calmer

gene munster is at the apple event stepping out right now to talk to us. gene has an overweight rating on apple. $160 price target. good to see you. arguably, though, even though you are positive apple overall, you are a bear on the watch. your estimates for a unit sold this year for calendar year 2015 is eight million which is way below the street consensus. walk us through how you get to that eight. >> well we think that it's best to be conserved because a lot of the value will be determined by the app developers, and that's just starting out. so we thought it would be -- we understand where the street is at, and we thought a level of conservativism would be helpful. ultimately, we think that the big first break-out of the watch is probably december of 2016. this is going to be a huge category for apple, but it's going to take some time to get momentum behind it. >> i think doctors will clearly nantd that but if you look back again at the iphone as an example, it just took time for develop toerz really build the excitement around the platform and so the

>> it's like "the munsters."s" on this tuesday morning. >> thank you, lara. >> >> hey, good morning. we are outside. yeah, we are full of energy, got some folks from florida. the gators here. how do you like clouds? check out these cool clouds take over south carolina, columbia south carolina. wave clouds for the most part not officially classified but they should be. they may well be before this year is done. they sometimes form after a day of severe weather. we'll have severe weather i think across parts of northern texas, across the red river into parts of oklahoma likely just strong winds and some hail but the possibility of tornadoes exist not only today but tomorrow we shift a little farther north into omaha. that's a quick check on your in national outlook. here's what's going on locally. >> all right rob thank you. we are dry to start out. in fact as we take a lookout side we've got sunshine coming up nice and bright over the ben franklin bridge. there are clouds out to the west and rain with them and tha

in other tech news gene munster downgrading ebay to underweight citing concern about the impact to paypalok samsung, and traditional banks. and shares of guess getting a big boost this morning. the apparel retailer's earnings beating the street as expenses decline and online business grew. >>> joining us now elizabeth corley. you have a big responsibility. you okay? >> ya. investment professionals looking after it. nobody needs to worry that it's just me. >> excellent. so do we give coup does to janet yellen? she did exactly what she wanted to. the market ended up sharply higher. she took "patient" out. is that good? >> "patient" out but not impatient in. >> so should try to not royal the markets when it needs to be doing things. it needs to be sensitive. >> i think every central bank around the world is sensitive to the fact that any word any gesture can shake markets. and they're behaving quite responsibly and trying not to do that. the challenge they face is they've got to get off this tight rope and get back to a monetary policy. so at some point carefully something will happen. then

gene munster joins us now. he just raised his price target to $92 over the weekend.and webcasts and i've gotten mail that says guess who we have coming on. the expert in all things internet. have you seen that? the way they sell you? you are the second coming when you appear. do you know that? >> wow. i'm honored. i haven't seen it but i'm honored. >> you are big. >> yeah it's a big week. thank you. >> well you have a lot to explain to me here. number one, i see why the stock is trading up i guess. that would be between friends. if you wanted to like send money to your kid at college or something, that would eventually be a big market. i guess if you have 1.4 billion users, you think it could be big. how do you make money from it? >> well on the payment side is that it's just about engagement. they announced last week about being able to -- most of it will be sending must be to friends. i'm sure a lot of college kids would love if their parents sent them money. but the core case is you're at dinner and sharing a tab. so that's the use case for it. they don't charge f