carl, see you then. >> scott, thanks. >>> cme group in the meantime to check in with rick santelli and the santelli exchange. hey, rick. >> hi, carl. i like fridays and sometimes i like to go big on fridays. we'll have a macroview friday. i love auctions because i love to bring you, the viewer, into what really is an exciting area of the fixed income market many countries have historic amounts of debt but yet we issue it rather frequently and we find there's plenty of buyers for it. although one of the biggest buyers for it are central bankers and maybe at some point they will be less aggressive buyers therein lies one of the rubs there's a lot of rubs when it comes to what's going on in the world with debt and how many agencies of governments are aiding and abetting the growing debt levels. think about japan. think about the european union not only do they, of course, have debt, a lot of it owned by their central bank but they have negative interest rates and no way that i can see, especially japan, to normalize or come up with a terminal rate like our fed is trying to do to give them

rick santelli, good morning welcome back to "squawk on the street."arahizen will be here at the moment. she will join us in a moment. favor is at the conference in beverly hills with a big interview ahead of us. dow is down about 140. road map begins with exemption and extension. white house giving key allies a break on steel and aluminum tariffs. wilber ross will join us to discuss. a look at what to expect from the fed and impact on ten year and markets around the globe and retailers report tapestry tumbling as revisions. we'll look at what did spook investors. >>> investors await latest numbers from apple tonight. the fed decision tomorrow. joining us black rock's manager and michael santoli. good to have you both. russ, any surprises in store for us tomorrow? >> i don't think so. i think the fed right now has set their path up for the year. the data has not been great but firm. inflation is going in the direction it expects. the fed is on target for at least two, possibly a third hike this year and comments tomorrow confirm that. >> and no possibi

analysis, morgan. >> michelle, thank you so much michelle caruso-cabrera. >>> now let's get to rick santelli santelli exchange rick >> thank you jamie dimon in a recent interview said we should be prepared, could easily see 4% on benchmark yields i'm sure he's referring to a ten-year yield though not much separates tens and 30s what the president will see at 2:00 eastern regarding iran or how thing also turn out with regard to tariffs. that being the uncertainty of can rates move up that quickly is the market prepared are we prepared in terms of iran what's the president going to do in terms of trade? will there be a trade war? i think the actual answer is similar as well. set your eyes on the prize, okay the president probably doesn't want a trade war we heard that from mr. cohn. with regard to iran, we had visits from merkel and macron. poker nolg here, check to the high bidders he may have a lot of nuances here i think over time he will tell europe, if you think you can build a better mousetrap it's all yours for x period of time the same could be said for interest rates the nervousness a

, for the santelli exchange. rickdavid you know, i'm pretty excited today because one of the staples that has kept many in the hunt with respect to trying to make sense about how a globally central bank managed set of interest rates can be traded at all and, of course, it's being a little less managed considering our fed and the ecb are trying to moderate some of their balance sheet issues, our fed is the the only one of the major economies, of course, when you look at what's going on in bank of england, bank of japan and eu with regard to raising rates. there's a major recalibration going on and it isn't only from europe, but ponder this. the spread between tens and boons hovering at 250 basis points the widest it's been since 1989. hopefully you're looking at a 20-year chard. we can't even go back that far the point here is that it settled at 195 it's up 50 basis points. tens settled at 2.41 53 versus 60, what that means is 88% of our treasury move was unanswered by the rising european rates then you add in what's g

carl and the gang, back to you. >> rick, thank you rick santelli in chicago >>> when we come back, onethe founding members of spacex will join us here at post nine how he's competing with bezos in the rocket industry. mom you called? oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way comcast is working to fit into your life, not the other way around. >>> welcome back to "squawk alley. today's launch of elon musk and spacex rocket, warnings that it could put lives at risk. for more on the space race, we're joined by the ceo of the company vector, also a spacex founding member. thanks for coming in today. >> a pleasure to be here. >> i want to start with vector you are a founding member of spacex but you're not necessarily targeting the same market as spacex or the other rocket companies. >> correct. >> what part of the market are you looking at >> the micro sat part of the market

. >>> it is time to get to the cme group and rick santelli with the santelli exchange. st several days to several weeks, i have been questioned in many instances as to why what's going on in italian bond market is not more disruptive to the globe. more like the credit crisis where things were getting dodgy and there was a lot more perspiration >> in a way, it has, but not in that exact same way. rarely are things exactly the same in markets, and this time is no exception. this time, what's going on is more of a contained contagious, but the contained contagious is orderly as it may seem, has big lessons to be learned, and we are still many chapters away from definitively making a statement that there's disruptive forces beneath that move are over or done because they could resurface at a greater extent any time. what i'm talking about is global capital versus regional policy and regional central banks think about it this way. central banks and mario draghi in particular, can try to put an interest rate anywhere they want it, but in the long run, market valuation and true

. >> all right let's forget about stocks for a minute and talk about bonds and head to rick santelli hicago. rick >> reporter: good morning, david. it's a bit of a landscape today in the entire global rate. it seems rates reversed. at least some of them in different directions if you look at our two day of tens, we're coming back off yesterday's low yields open the chart up to april, it was a pretty good ride remember our markets responded by yields moving lower as did the next market the two-day of bunds the high quality sovereign curve the german curve and the european union and on the two-day you can clearly see that a benchmark ten year for the european union, one of the world's largest economies had a range of 18 to 35 yesterday. that should make anybody perspire a little bit. all the transpi if you look at tens minus bunds starting on may 1st, you can see that here it sits under 250 basis points, which itself is wide yesterday and today it traded around 263 basis points in difference our high close is 259. even though it has settled back, it reminds us that our policy and our ma

. >> thank you very much let's get to rick santelli. >> one moving part i'm concentrating on the mostuld make a lot of fundamental reasons why the dollar's rally is long overdue let's stick with the technicals, especially considering the landscape we're in, first day of a two-day fed meeting. that isn't necessarily essential at this point. most likely a rather stencilled approach he would like to raise rates when he can. maybe it's three, maybe it's four in the end, the yield curve and how markets respond will have an input, no matter how much silence there is on that dynamic. it's been a wild couple of days for the dollar index you see a lot of sideways activity we went from 91 1/2 to 92.62, today's high the important part happened at 4:00 in the morning eastern when, unchanged right here at 92.12, once we popped through, boy, this thing really did get some legs. the fact of the matter is that it's hovering around 92.45-ish we want to see if it closes above that line. this is significant. i can't stress, sometimes things are a bit simple when they first begin a process. clearing sent

. >> okay, bob see you in a bit let's get to rick santelli as well in the bond pits at the cme in chicagoin about 15 minutes. hey, rick. >> oh, absolutely. we always like to monitor the feel-good indices as we get our preliminary read on university of michigan coming up. if you look at the net changes on an intraday basis versus yesterday, twos are unchanged. fives are unchanged. tens are down one. and 30s are down one but here's the key look at these maturities' changes on the week. two-year up three. five-year up five. tens up one. 3 30s down two, which affects all the spreads. you can see the two day of tens there. we're still drifting what's notable is where we drifted from the 3% we flirted with intraday and on a closing basis but didn't take out 303. open the chart up to february 1st, notice the left side and the right side the 295 much lower, of course, than the right side. but the right side failed to take out the high. contrast that with the look of the longest maturity, the 30-year bond notice the different variation and distance between the left highs and the right highs. the t

rick santelli. solomon is scheduled to appear in court today after alledgedly stealing more than a million dollars worth of fine wines from solomon's collection aditi joins us with more on what to expect today. >> hi, carl. he once worked for one of the most powerful men in the banking world, but today, nicolas de-meyer will come face to face with a federal judge investigators say de-meyer, who was the personal assistant to goldman sachs' president and chief operating officer david solomon duped the bank executive. authority says de-meyer stole $1.2 million worth of fine wine from solomon between 2014 to 2016 investigators say de-meyer's job involved receiving wine shipments at solomon's manhattan apartment and then taking the bottles to his east hampton estate officials say de-meyer stole hundreds of bottles of wine including seven from the legendary french estate domaine de la romanee-conti. that's monk the most expensive in the world authorities say he sold the wine to a north carolina based deal

thanks we will go over to the cme group where rick santelli has the santelli exchange. >> thanks, jonffects on the market, specifically some of the interest rate markets of the german curve sovereign, things like shots are being affected in a large way. now normally this may be an issue that we've experienced many times, as various conditions of financial condition and health of any given economy, of course, affects the interest rates this time it's way different you know, whether it's this country and the tea party, the uk and brexit, ultimately trump make america great, italy for italians, the movement that's been expressed over these many years as populism, when you're in an individual country and you're part of the experience, you as an individual may use a word more associated with a positive like patriotism versus populism populism has a bit of a negative connotation to it. what's going on with italy really expresses the reason why. brussels wanted a certain outcome just like all central bankers wanted a certain outcome. trying to avert what they thought would be a larger disast

let's get over to the cme and rick santelli has the santelli exchange >> good morning, wilf.dlines basically have the same thing written about them with regard to trying to put a face and an epilog on a wild ride that seemed to emily nate from italy and circumvented the globe. the stories, read something like this, europe's wake-up call for italian politicians. that's basically what they said. i have an issue with that. now, granted, there may be a wake-up call for them and granted there may be some ongoing scrutiny about exactly who they'll pick for their next economy -- economic minister because, obviously, serona wasn't the man and that seemed to have been part of the catalyst as to how all this started to affect the marketplace and today, of course, we had a couple of auctions and they seemed to have stabilized the situation although i still would like to know how much the ecb played a role in those auctions and stabilization, but in the bigger picture, will the ecb actually begin to do more tapering in september. these are all big questions with global answers associated

rick santelli. >> we're getting another update on the school shooting in texas.ning in to the harris county sheriff's news conference to reporters. the death toll is now between eight and ten. nbc news is going with nine, but that number could go up, and the sheriff did say that number may go up. it was a mass shooting at santa fe high school in texas. one person, we now know, who is in custody, is a student he is the alleged shooter. we also know that another person also a student is in custody and being questioned and basically, there are a number of injured as well. we know of at least four taken to two separate hospitals in the area there in the santa fe area. the students have been transported to another location to be reunited with their parents. it is still a fluid situation, but it is no longer an active shooter situation. but the death toll probably will change it's between eight and ten the majority of which are students at this point, according to the harris county sheriff. the president, obviously, was briefed on this earlier. he tweeted about it, and

rick santelli has a look at the drop in rates, and bertha tracking the selloff, and seema as well. >>500 points in the low, ending off the lows, still down 1.6% for the dow, a 1% decline for the s&p 500, really brought down by the large cap financials, names like goldman sachs, morgan stanley, jpmorgan, citi bank among others down 2-4%. the painal banks under pressure today, something that traders really were trying to get a belting understanding of, especially if the concern was italy and europe, why were the smaller banks reacting well, something due to what we saw in the bond market with yields falling further below 3% here in the u.s., very different story in italy with yields rising to its highest level since 2014, and the other big sector that impacted markets today was energy no love there for some of the big oil giants that continue to come under pressure, names like chevron, exxon-mobil, energy the worst last weekend, on going concerns what opec does on the supply-demand equation that weighs on wti crude, now below $67. now, one thing to keep in mind is earnings after the bel

time to get to the cme group in chicago and join rick santelli for the santelli exchange. thanks, david like to welcome my european and all that is global guy, andy brenner. thanks for joining me today. >> rick, always a pleasure to see you, buddy >> all right i look up at the big board i see that 30-year bonds are well under their significance price of 3.22. tens under 3.03. the original breakout point we haven't traded below or closed below since we closed above it what's the catalyst for some offing this buying do you see something globally that might lead investors to be more preoccupied with u.s. treasuries >> what a segue. it's called italy. since the new italian government started to be formed and they've talked about not paying the ecb $250 billion as well as their -- in their game plan starting up a dual currency known as bots as well as not wanting to live up to the european standards that they agreed to in their treaties, we've seen italian ten-years widen out about 70 basis points and two years about 65 basis points. a lot of people say, well, it's only italy sa

bob pisani let's get to the bond pits and check in with rick santelli at the cme. >> good morning, carl. there are lots of dynamics going on even though the range is not very big and you can see the way they're slightly slipping out of the recent range and that makes sense and the short end is mostly interested and the fed and all of that is the fed and it's a different look and yes, it's moved a bit lower, but it is holding the bottom of its range at 295 we'll get to why that's important in a second and look at the today's chart up ten. you'll see the one spike while 295 was a high-yield close for the year until 303 recently and we are hovering there and we come down and we have an employment report tomorrow and it's arguable and the long end is interested in everything the fed does and right now it's mostly interested in the topic bob was talking about. what's going on with growth domestically and globally. nobody can underestimate the notion that there are a few hiccups. today you look at exports and another record in exports, and it still looks leak it could tak

santelli exchange. rickthanks, david. i like to welcome my first guest of the week, peter thanks for taking the time >> always great being with you >> i find it fascinating as you look at the various stories on employment and the state of economies of the biggest developed economies, what we see is that the u.s. right now, 18-year low, 3.9% unemployment rate. japan, 24-year low, 2.4% the uk, one of their metrics, their three-month metric of 4.2% the lowest in 43 years my question is a simple one, peter. central banks really target the unemployment rate. yet, as we just noted, three major economies with historically low unemployment rates but yet the output of their economies at least 2 out of 3 is certainly lacking in central bank policy in japan and the uk certainly isn't moderate or removing enough stimulus. your thoughts how to put all that together. >> they look at the numbers, their models when they see unemployment rates this low, they see resource utilization is being used up n that implies potential

let's get to rick santelli at the cme group in chicago who brought us the philly fed not that long ago orders we'll talk more about that as the day moves on two-year note yields and they keep on marching on, but you do see we're flattening out just a little bit and the old two steps in this case, two steps forward, two steps back one week of 30 and that's where all of the gold is on the treasury curve the last 24 hours and the long end just spacing out the curve and anything over 322 is new territory going back on a closing basis, but probably to around july of 2015, if you look atti year to date chart in february we are right now sitting on it and all of what i'm talking about regarding where it closes is the significant aspect of that 322 and we yond. they get buffetted from a lot of different area, and italy, one in particular, but it's regained some of the ground, but despite that, our long end not only is spacing out giving the fed potentially more room for tightening so they don't invert the curve and it's affecting tens minus booms which just a couple of sessions ago was at 2.50

that is one issue i'm watching very closely >> thank you >>> let's get to rick santelli looking at rates and the dollar for us rick, i guess it's not just what's happening to domestic u.s. inflation the international look is influencing as well. >> absolutely. how do you combat inflation? get a central bank to take a certain policy position and all of those issues are much more deteriorated in europe, in japan as they see some pricing pressures. but are way behind the curve in terms of how to address them or everyone worse, how to address negative rates so those policy issues will continue to loom large as far as is interest rates, my phrase is everything on the curve is guns hot except for a 30-year bond what do i mean by that whether you're looking at twos, threes, fives, sevens, o for tens there's a lot of room here we cleared an important zone the 30-year bond is about ready to get close to levels we haven't seen it's the only that hasn't gone guns hot they are short, but that isn't something to worry about today's shorts are tomorrow's buyers that's one of the reasons there's a bit

michelle, back to you. >> rick santelli, one of the junkie auctions is hurting the markets. as we count down on the president's announcement disney and verizon are in negative territory, we'll watch of what's happening with disney and fox and comcast and their earnings after the bell. where are the opportunities if global uncertainty royals the mark disney earnings are on deck after the bell as a multi billion dollars deal we are going to tell you what analysts are hoping to hear. that's all ahead in the next hour of "power lunch." mr. elliot, what's your wifi password? wifi? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. >>> all right, stocks are in the red ahead of the president's decision the dow is first in four sessions of the dow. let's bring in yana barton, goo

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rick santelli tracks the action for us as he always does, cme. hi rick. >> hi tyler.ne basis point higher than where we closed. tens, 2997, one basis point higher the rest of the curve unchanged. last fed meeting, 27th and 28th of march two year eeld note has been climbing yesterday was the first official close above 2.5 for the first time since '58 ten year since last fed meeting darn close to the highs. yield curve, tens at 46. three basis points away from its april low, the flattest since september of '07 the flattest since 2008. the dollar index, everybody is talking about it as they you shhh one week stairway to heaven. it popped in all the right places, when it trade before 9212 where it closed last year it's now at the highest level since december 27. it looks like the twos and the tens for a change, it is moving in lock step with rates and presumably fed actions of the futures. let's go back to sarah >> stairway to heaven on the dollar the markets are certainly waiting on clarity from the fed. investors are sitting on the sidelines. according to the latest sur

. >>> 30-year bonds up for auction, rick santelli is tracking action at the cme rick, how did it go? >> it went pretty well i gave this a "b" as in boy but there's a back story i want to do real quickly. they got rid of the long bond in 2001, i believe it was august. they brought it back in february, '06. now, since it was brought back in '06, this is by far the largest at $17 million if you go prior from 1977 to '01, my database goes to '93 and the biggest size was $11 billion. i'm 100% sure it's the biggest auction since they brought it back and i'm 99% sure it's the biggest auction ever having said that, the yield 3.13%. it priced nice the w.i. was trading around 13.5 if i look through the internals, 2.38 bid to cover, 62.7 indirect, very close to ten option average we're a little light at 8.3 on directs. dealers take 28.9. so 3.13. i gave it a "b." it finishes $73 billion in coupon supply. it seems like supply is weighing on the market, but yields are weighing down, a little buying coming in after the auction. >> rick santelli huge auction interesting data point there. >>> stocks

rick santelli with the santelli exchange rick, good morning. >> good morning. thank you, morgan.e to welcome my guest, bill isaac. thanks for joining me this morning, bill. >> thanks, rick. it's always good to be with you. >> wearing your former hat, it seems as though the fed is changing the rules with regard to dodd/frank. four regulators, the office that controls the currency and the fdic after the fdic announced last week record bank products q1, $68 billion. is this something we need to see? why is it being done now do you agree or disagree with easing back these rules, bill? >> i think dodd/frank really overdid things in some ways. and i think the regulators were overly reaching. i don't agree with everything they might do. for example, they eased big bank capital standards a couple of weeks ago or three weeks i was concerned about that governors brainard of the fed and chairman grunberg of the fdic did not follow seat they descented against that. s i don't think there's a big movement in hand to change all these regulations or wipe them out. i think they're trying to make

. >>> let's get to rick santelli today. hey, rick. >> good morning, carl.you look at the curve this morning, we're up one basis points everything else pretty much highly unchanged we seemed to have drifted off the highest yields a bit, if you look at a chart from about the third week in april, what should jump out and what is significant to most technicians is the fact that once we establish that 303 and blew there it, of course, the last day of 2013, we haven't traded below it. and that is significant, especially as we draft down to the 305 to 306 level when it comes to 30-year bonds, a little different scenario. today unchanged, of course open the chart up to february 1st. when they made the 3.22 high yield close of the year. we've since taken out. we've drafted and are trading below it it takes away the intensity at the long end of the market it did have eintensity for two r three weeks. on the italian side, yeah, we're giving back some rates down four or five basis points if you look at the chart from may 1st, 70 basis points from low to high. 70 basis

more than 1,000 points in a little more than a week guys >> thank you, bob pisani let's get to rick santellibond pits in chicago hey, rick. >> it's very fascinating if you look at the data, none of it was shocking. but the fact that foot off the gas pedal with regard to ppi and especially cpi today had outsized ramifications in the marketplace. and the landscape was fertile. two-day of two years, backed away from a real stretch and traded up to 2.53. 24-hour tens, because we have a new guy on the block after the auction yesterday, tens gave up some ground. but the key here is this next chart. this is an april 1st chart of ten-year note yields not all 3% handles have been created equally in the minds of investors. yes, we did get a 3% close, but -- but we didn't take out the 3.03 that you see there, the current high yield close for the year that in many traders minds is the most important issue between where the market is now backing away and any type of surge in yields that can get it closer to 3.25, 3.37, 3.38 all the big resistance level we had mr. carney and bank of england not do anythin

with the santelli exchange. good morning, rick in chicago from arizona when it's cold you go to arizona which is going to be the title of this piece. everyone remembers this story. "christmas story" "fragile" on the box. there's a lot of fragile going on in the world if you have debt in dollars or -- or you are in markets that have moved more in the last two weeks than they have by all the micro management of central banks i'm talking italy. these are fragile economies, fragile bank balance sheets. what's going on in europe and italy? >> we've been talking about this, you and i, for several years. how it's coming to fruition. as i've maintained, mario draghi has been the most dangerous man because he's quietly built up this massive balance sheet of all different sovereign decbts n to the ecb which if it doesn't get guaranteed by the germans, this all falls apart >> what prices would they collateralize this paper at. when you are long a market where the price moves down as aggressively as the price of italian sovereigns, somebody i

we'll get to rick santelli on this busy wednesday. . >> reporter: hey, carl you know, start off with the two year in front of the curve it's hovering at $2.58 and change toying with a fresh new high yield clothes. back to july of '08, as you see on the chart we're taking back a bit of that steepening yesterday the long end is taking a bit of a buzz not a lot. only down 1. but we're up a bit in two. look at one week of 30 i'm concentrating on the long end for a particular reason. you see the high in that one week chart 3.22 year to date chart see what the high close of the year is from the third week in february, you guessed it, 3.22 open the chart all the way up to the summer of 2015, because should we take that out, that's immediately where rates would come to on 30-year bonds down here it's called a two for plus if you move through a key level on ten, which we did at 3.03 once you get the key level on 30, you may see more selling on the entire long end rate if we start to dip on the 30, they don't get over that threshold, that will a

jim stewart. >> let's get you out to the cme group in chicago rick santelli is there with the santellior taking the time to join us. >> always a pleasure thank you. >> 164,000 but positive revisions to previous months. >> right. >> break the veil of 4% on the unemployment rate. employment population ratio and labor force participation rate, each lost a tenth. >> right. >> 95 in the half million people that can work but are not working. maybe the most important thing, wages, month over month, year over year, were retro graded and now stand at levels that don't seem nearly as threatening as we once feared. you take it from there. >> well, you did a great job of summarizing. i would add a couple of things first of all, we are still seeing job growth that is above what we would guess we would see at the peak or at a plateau. so, to me, we're still in recovery mode, despite the fact that we have 3.9% unemployment, which sounds kind of crazy i think that's the reality the other way i would make that point, rick -- it comes back to something you said a little earlier on the show. you were a l

check in with rick santelli in chicago. good morning, rick >> reporter: good morning, david.ne thing we can say about interest rates they're sticky and they're sticky at the top of ranges looking at 24 hour two-year note yields extending back to 2 1/2 beyond look at the 10-year note yield for 24 hours, we move from the low 290s up to 297 keep this in mind, in february we had 22 sessions closing the 280s and extended. now this could be the ninth session for the closing yield. there's going between 295 and 298. very tight range 298. >> the 303 is the currently high yield close. we'll continue to monitor. jamie diamond said 4%. i can tell you acting as though interest rates when they move, seem to want to move higher. if you open a chart up to the 25th, so that's from the 303 you can see how you flat line at a lofty level. dollar index continues to be a stellar performer. 24 hour you see we're trading 93.25. this hasn't been a fast march, but it's marching, nonetheless you see it on the one week chart. the model of higher highs is something you can lock into and finally the 26,

watching >>> we have time for a closing bell exchange, joining us, renee north, and steve grasso, and rick santelli. rick, everyone's worried about rising rates today, talk us through the moves seen and what's driving it. >> well, you know, when it comes to rising rates, the notion is, hey, it's a good thing, rising rates are good that is mostly true. remember, to make it mostly good, you need wages moving up, input prices moving up, stock market moving up, and data moving up, and interest rates moving up, but as part of the equation becomes central banking issues, fed issues, and the notion central banks need assurance against the future slowdown, that part of it can be a bit bothersome technical technically, this was a huge day. i can't tell you how huge it is. 3.03, a big area, one day, last day of 2013 we had that close, nothing above it since, and prior to that one day in 2013, all the way back to 2011 go to the charts as you look at the charts, this is a one-month chart of 10-year. everyone watched the red line. it really is 3.03. we're at 3.07. closes above, i think we're safe takeaway here

buy th market a little later tomorrow >> matt, thank you very much matt cheslock on the floor >> rick santelli is tracking the action at the cme group as au s always rick >> boy, it is a busy day, look at the two-yr note, they are at the lowest here. tens are now down 13 basis points could be the lowest close since the 11th of april. let's go to the epicenter of what's going on. the italian ten-yr, these are huge move and recalibrating the safety part of the you acurve w is the german curve. the repercussions for this is why our yield curve is so flatten and so down today. the dollar index, while all of this is going on, the dollar index is up three quarters of a percent. we are at the best level of the dollar index and should have closed in the zone since july of last year and ten minus bund, for a while they were 261 basis points that's a three dade wide they have come back a bit. the bund closed and the spread was around 254 this is sure to have a bigger effect on our markets and an every expanding relative value trade but we are also making investors nervous. what is the message of the lon

steve grasso, rick santelli, thank you very much. >>> we got 17 minutes before the close, up a percent on the dow, s&p's just up more than half a percent, and nasdaq up less than that s mpy life as a public coan habeen, quote, an unmitigated disaster why they just upgraded the stock. the governor has declared a winter weather emergency... extreme risk of burst pipes and water damage... soon, insurance companies won't pay for damages. that is, not if they can help prevent damages from happening in the first place. at cognizant, we're turning the industry known for processing claims into one focused on prevention with predictive analytics, helping them proactively protect the things that matter most. get ready, because we're helping leading companies see it- and see it through-with digital. don't juggle your home life and work life without it. ♪ ♪ don't skip that office meeting for a board meeting without it. don't keep it real... keep it going... or simply keep it in the family without it. and don't turn that business trip, into an overdue family trip without it. ♪ ♪ the more you live b

bell exchange is peter costa, john burke, president of burke financial strategies, and our own rick santellihat do you think here the dow's down 90 now, going back to what the president said about trade a short while ago? >> i think it's a reaction to that, but, you know, we're in this trading range, last five days, last six days, in fairly narrow trading range look over the last three months, it's been about 13 hur00 pointsn the dow and 1800 on the s&p. i think we're in that pattern for a while. the other thing is, you know, i read somewhere people start to talk about we're in a potential bear market showing up, recession. a bear market never starts with the russell hitting an all-time high never happened, will never happen jo does that give you comfort >> interest rates, big deal, 3.11% on the 10-year treasury, biggest number since 2011, but look what happened in 2013 when rates did just tick 3%, the market up over 30% and one of the things i'm encouraged by is, and much said about this, the yield curve is getting flatter, well, so far in the month of may, yield curve has gotten steeper ag

rick santelli, rob morgan, and keith bliss. >>> news alert on trade talks with china let's bring in eamonrry kudlow spoke with me, briefing us on where we stand with chinese negotiations. the chinese have come to trade and optimistic and the president's optimistic they'll get a deal based on these negotiations that are going on right now. he also said that that $200 billion figure we saw mentioned in the "new york times" last night, the chinese said the deal is on the table, negotiating various sectors on the table, not going through details, but areas are easier like energy and farming and financial services, but there's a lot of things going on he said the number's a good number in terms of $200 billion reduction in the trade deficit between the united states and china, and i can tell you, kelly, separately, i talked to a senior administration official here at the white house earlier today, and he laid out some of the elements of the proposed deal coming together behind the scenes here, and one of the elements is u.s. control levels of foreign firms in china. remember, restrictions are

. >> let's get to rick santelli and the santelli exchange where he has a lot to talk about. >> italianfourth largest in the world, largest in europe. they're currently in the neighborhood of 130 to 135% debt to gdp we all know that moral hazard was a big term coined during and after the great credit recession and what it means, quite simply, is that if you live off of debt to the point where you don't have any reforms, that there will be issues and those issues are real apparent now that the market is pricing italian paper. you may be asking who was in control. pretty much the ecb. this morning with my guest peter tchir, i tried to draw an analogy. after the credit crisis, certain paper received preferential treatment from regulators. in the u.s., for example, if a bank had certain set-aside requirements, the paper, the securities that will satisfy those requirements were designated early, part of dodd frank, and it was changed. treasuries, t-bills, sovereign paper, of course mortgage paper but added just last week were munis. the reason i bring that up as an important analogy is that

rick santelli, what are you watching today >> continuing to watch the relationship between our ratesuropean rates there's a big recal abrasiibratn going on my ambition is to get my 8 hours. because a head full of work... a husband who snores with gusto... and marvin... are going to need a bigger bed. ♪ ♪ ambitions live everywhere. synchrony helps make them happen with financing and partner offers at over 350,000 locations. ♪ ♪ synchrony. what are you working forward to? ♪ ♪ >>> i'm scott wapner lee cooperman, taking a.m. at the s.e.c. in an open letter we'll get his favorite stock picks. >>> and facebook ceo mark zuckerberg in the hot seat again. this time in europe. we'll take you there live, with that stock in a major turnaround since the data scandal erupted will anything change that today? we'll find out noon eastern on "the half time report. less than 15 away. >> see you then. thanks. >>> still to come, we haven't done enough. that's just one of the things we're expecting to hear from facebook chief mark zuckerberg when he testifies before european parliament. we'll tell you wha

. >>> let's go to the bond market, which is closing in a few minutes here rick santelli at the cme group-- >> having trouble with rick's mike, i think. we don't have his mike we'll go back to him for a bond update >>> also coming up, we are going to trade in our high heels here for a comfortable pair of sneakers women all over the country are doing this the comfort trade, and which company is cashing in on it. next on "power lunch." [fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances. this is no ordinary coffee. it's single-origin kenyan coffee from the nyeri highlands, 6,000 feet above sea level. but how do you really know that the beans journeyed to the port of mombasa and across the pacific? that you can trust they're 100% authentic? ibm blockchain. a smart way to track every step, ensuring this coffee did indeed come from 6,000 feet above sea level. and not a foot lower. ♪ ♪ >>> welcome back to "power lunch. ric

rick santelli tracking the action as always at the cme. rick. >> hi, sara. bob said something very important. he said the prices paid the highest in years input price going up, a common theme, even though ppi and cpi were tame. but that's the whole thing you hear people on the floor saying are rates going up for the right reasons? the right reasons are we have enough growth, enough wage compensation to pass along higher input costs all the ships rise together. something you'll have to answer, is it going up for the right reason we're up seven basis points today, about 11 basis points low-to-high on the range in general over the last 24 hours a year-to-date chart, we just took out the 3.03 high that is so significant we took it out after a period of consolidation that didn't take us below important support levels like last year's high if you look at a chart going back to may of 2011, you can see the last time we spent any serious time closing above 3.03 was in july of 2011. finally, a one week of the dollar index, it's up over half a cent today you see on tha

. >>> let's get to the cme group, rick santelli and get the santelli exchange. >> hi, carl. arion capital group thanks for taking the time this morning, richard >> good morning, rick. how are you? >> very good well, we had retail sales. you know, headline up .3 it's good. still say we don't have enough 1% handles, but the control number today, up .4. last month's revised up .5 the last biggy was in november of '17, up 1.3, but that isn't bad. we plug that into gdp, give me your thoughts on retail sales and gdp and the tame inflation numbers in the rear-view mirror under the context of what interest rates are doing today >> sure. so overall, it's a very good number, rick they revised up the last two months you're at 4.6% year over year, overall retail sales you mentioned the control number that's good because the prior quarter was held back by some of the pce and some of the auto sales. we saw a pickup in auto sales here, but we need more, for sure i agree with you, we need more 1% handles on the retail sales >> when it comes to interest rates, i'm part technician, part fundam

. >> we're going to find a lot more in a few hours, rick, and we'll rely on you for that rick santelliicago >> meanwhile, dow hanging on to pretty moderate range today. down about 73 points apple has held its gains though. up about 4%. and then tonight, another chalk full of earnings spotify, square, kraft heinz, and fitbit >> a big afternoon for insurers. when you're talking about data, which we have been on the show for weeks now, the insurers are the other big boys in terms of collection all reporting after the bell >> watch all that, and we'll see what the fed says around 2:00 eastern time let's get over to scott wapner and the half >> welcome to "the halftime report." i'm scott wapner on talk trade, the apple aftermath, following the better than expected earnings report, is the stock primed for another takeoff. with us, jim, steve, pete, and with us from los angeles is kevin o'leary, the chairman of o-shares etfs and a cnbc contributor. let's begin with apple and what some are calling a better than feared report. the company also announcing a $100 billion share buyback ceo tim coo

. >>> housing starts data hitting the tape rick santelli's got them at the cme. 1.3 million. we ended up over seasonally adjusted annualized units. this follows, though, and upward revision which put last month from slightly below 2% to 3.6% now, that's starts what's going on with permits it's not good either but not nearlied a bad down 1.8%. we were looking for 1.35 million. we ended up with -- oh, i'm sorry. as expected. 1.352 million. but it is nonetheless still down a bit. but the reason it's down 1.8% is because last month's permits were ramped up from 1.354% to 1.357 million when you look at it sequentially, it moves down a bit. but it's darn close to expectations we still have industrial capacity and utilization and of course the 10-year the big news yesterday, punching through some significant resistance to 3.03%. let's see if it retests that level. maybe the other big news is the italian form between league and five star has this little demand for the european group they want their debt forgiven. back to you. >> all right, rick thank you. rick santelli at

what is really an incredible business story we'll head to the bond pits now and check in with rick santellihicago rick >> reporter: good morning. 24-hour a couple of things we can glean. first of all, we're hovering above 295 a bit below 3% so we're going into these sec day of a two-day fed meeting pretty firm albeit not on the highs but we held at $2.95 which was the high in february that lasted until a week and a half ago. two-day chart you can see that even though we gave up what appeared to me to be a post adp hick up, we're still on the two-day chart looking pretty good we have the pay refunding announcement today and eased off on the t-bill which has been pedal to the metal we'll introduce a two-month t-bill at some point and the long data maturities were added, to some extent a little over 2% and even with the added issue use, you can see it seems it's a good investment. they talk two years. many are even talking t-bill something to pay attention to. 24-hour charter the dollar index, you know, it's going sideways here. if you look at two-day chart and put it in perspective, it's gene

. >> thank you very much let's turn to the bond pit now rick santelli in chicago good morning, rick >reporter: good morning. not a data friday but a wild week in treasuries look at one week of twos we're down today we're down on the week as a matter of fact, if you consider we're unchanged now on the week for a two year. down three on the day. tens are up 11 on the week down three on the day. i think the performer of the week to pay attention to is the longest maturity 30-year bonds we see the one-week chart there. it's down three. it's parallel shift today. all maturities guns hot on the long end continuing to hold and take off, to some extent 30-year bond taking off. 2018 high of the year which was 3.22 and now hovering at the best level since december of 2015 if you open up the chart to bunds, this is fascinating from early april you can see there's a boat load of support around 50 basis points it doesn't seem as though it's really taken off above 60 and others at 61.5 one of the main reasons that there's some buying coming in on the high quality curve versus the german curve is th

let's get to our closing bell exchange today quincey is here with rick santelli, and, rick, i mean, acture moves and this afternoon there was concern about maybe the president's comments about the north korea summit not happening do you buy that? what's going on here do you think? >> no. listen who knows what's the buy we'll know when it's over. we can all have opinions the opinion that i have seems to mesh with most traders i deal with daily on the trading floor, and that is negotiating is the style in and of itself to this president, and process of that is messy and questionable, but many down here have complete faith in the outcome that the relationship we have with north korea will be better than it has been under trump that's the way they trade. they view it as a future tail wind for the markets potentially as they view what's going on with china they never believed in a trade war here, and it certainly seems in that aspect or at least in that characterization they were correct. >> quincey, what about you we started off yesterday with this exuberant session, and today, we are giv

. >> so we just get the official news with, and see what happens in a few moments from now and rick santelliay. >> yes, the may read for chicago purchasing managers survey is 62.7 dramatically more than we expected we were looking for a number in the 58 area. this sequentially follows 57.6 and it is a lofty read by any measure. it's the second best read of the year and it comes back from 65.7 and stronger than the next best read which would have been february in 61.9 a very solid read. as for the markets, well, we are seeing interest rates still behave a little bit sluggishly if you look at intraday tens, you can see they're hovering down two basis points and we've come down from the highest yield levels between the personal income and spending numbers came out. let's look at mid-may for the following charts look at boons and the reason i'm doing that is in the ten year which is a market reaction and unruly now under 3%. finally, if you look at what's going on in mexico there are a lot of trade issues going on 783 in the mexican tenure and the highest yield since early 2010 and the dollar in

let's get to the bond market rick santelli tracking the action at the cme. >> melissa lee, it's not aixed income market but it is a big day nonetheless. look at a two day of 10s, particularly pay close attention to the fact that we've leveled off a bit and gave up some upper ground in yields with respect to friday all maturities are about a basis points higher in yield than they close. if you look at two-day of bunds the playout is different instead of flirting with 60 we're couple away from 50. the spread is in order 10s minus bunds, your screen is right, 254 basis points. my records go back to 1989 and the highest close is 266 basis points this settle as you see on the year to date chart at 197, which means we're up 57 basis points on this spread look at italy and everybody seems to be, it's the canary in the coal mine for the longevity some believe as to the arrangements with the european union. their two-year note yield was negative on may 15 it changed on may 16th it's now positive 26 basis points look at that chart and finally a year to date of the pound versus the dollar. flirt

the change is significant in how it dampen spending >> guys, thank you >>> rick santelli. >> all maturities on change the minor bit of curve and you can see a 24-hour chart of 10-yr as we keep on knocking the door and opening up to february 1st it does not look like a pattern that wants to break away it did several weeks ago what's changed maybe the next chart. the bund yield, they're over 60 basis point and they're impacting the spread relationships. if you look at one month of 10 minus bund of 37 that was just last year. the widest it has been is at 244 closing basis. let's not deny the notion that there is a lot of traders out there selling bunds and buying tens on the spread april 1st starts for that chart. it will be the fourth down and actually the third update. it is getting close to unchange and many traders are looking to holding last year's settlement and the last little correction does not seem to have much legs as the upside did for the three week proceeding. tyler, back to you >> rick, thank you very much >> ceo elon musk announces a major management sha up keand what it means

rick santelli with the santelli exchange >> good morning, sara.elcome our guest, david walker he's running currently for the connecticut governorship, former comptroller general of the u.s. and former cpa david, thanks for taking the time >> good to be back with you, rick >> is it worked out, we had a great timing event today, page one, "wall street journal" article state budgets get lift from economy stax bill. specifically mentioned was connecticut. now connecticut and illinois don't have great landscapes financially, and this boost, they say, over $1 billion boost, 1.3, is coming in. and my question to you is, a, are you familiar with that activity under the surface and is it mostly one time issues as we implemented late year tax reform, or is this more? is the connecticut economy growing? is the u.s. economy growing from policy changes >> the bottom line as it relates to conkornnecticut, it's a one- blip there were changes that caused hedge funds and other investors to have to claim income in 2017 and so a one-time plus but the fact of the mat