todd horowitz down in the pits of cme. todd, let's talk about the interest rate. it is almost like a collapse. it has gone down 21 basis points just this month on the 10-year. what is that telling you? >> hi david, hi liz. depend on what side of the camp you're in. if you're a bull everybody is selling foreign debt and buying u.s. foreign debt is much higher and selling into arbitrage. you're a bear, money is coming out of the stock market going into the bond market. those are the two arguments. the truth of it is, the market is a dull market. there is not much going on. people are getting a little bit edgy. i think there is little bit of money flowing into the bond market. i think you see a little bit of fear. vix is not showing a little bit of fear.

todd horowitz down in the pits of cme. todd, let's talk about the interest rate. it is almost like a collapse. it has gone down 21 basis points just this month on the 10-year. what is that telling you? >> hi david, hi liz. depend on what side of the camp you're in. if you're a bull everybody is selling foreign debt and buying u.s. foreign debt is much higher and selling into arbitrage. you're a bear, money is coming out of the stock market going into the bond market. those are the two arguments. the truth of it is, the market is a dull market. there is not much going on. people are getting a little bit edgy. i think there is little bit of money flowing into the bond market. i think you see a little bit of fear. vix is not showing a little bit of fear. bond market says maybe we have a little bit to worry about here. markets are very dull. i don't think anything we need to read into. other than interest rates are falling and bond futures going higher. liz: yeah. peter kenny, a pal of the show. he had written piece on transquilt. if you call boredom tranquility, stil

we have the chief investment officer telling us why overseas is better buy and todd horowitz in the pits of the cme. todd, a fascinating move in the markets where the stock piers simply piled in as soon as those minutes came out. >> hi, liz, hi, david. certainly they were buying. basically they were buying all day and they didn't stop. they're still buying now. when we look at the big picture the russell was very weak compared to the rest of the market but apparently the dow and s&p like the fed minutes. they like what is going on. they like the free money policy they have no fierce. they will continue to take the big brooms and sweep bad news under the carpet and we'll eventually keep hiding from it until eventually we say what happened? now the market continues higher. david: bret, a lot of it i think had to do with a interview with bill dudley yesterday where he said interest rates will be low as far as the eye can see. is he growing to be able to keep that promise? there are other committee members on the fed? >> you know, that's a pretty tough one. i think they kind of have to. unle

lee munson, todd horowitz, thank you very much. todd, actually we'll see you in a couple minutes when the futures close. mark newton, we wanted to thank you you as well. mark, thanks. >>> tesla as you saw reporting moments ago, the stock falling 6% despite a beat with the stock up more than 30% this year. so what's happening? how do we bet on a stock that is trading low after-hours even though it came out with good numbers? we'll talk more about that. liz: david, it says it is going gangbusters in china. it sees that as a huge market. >>> hot profits today and new government predictions on higher natural gas prices could keep specter's profits and stock price roaring. we have the ceo live straight ahead. david: also once again, janet yellen saying essentially that the inflation is a non-issue right now. guess what? when you go to the grocery store around buy stuff there, you know it is an issue, everyday, that you buy at the grocery store or fill up at the pump. so how do we deal with inflation? and is food and gas just the tip of t

let's check in now with a trader todd horowitz of the average joe options. hello my friend, how're you doing? > > what's up angie? > > well let's talk about the treasuries to start with. what's your treasury play? we've heard so much fed speak this week. > > you know i think that you're seeing a big flight to quality, you're seeing a lot of buying in treasuries except yesterday a minor sell-off, but for the amount that we've rallied you know the sell-off yesterday was really very little. i think you're seeing a big flight to safety here, i think there's a big arbitrage of money actually coming out of the equity market even though it rallied into the treasury market. > > it has been a wild week for those equities so what are you doing with your money? > > well i'm still keeping my money in my mattress, i mean i'm actually staying in cash or if i could find a good spot to go to the short side of the market, i think that 1900 is a great spot to take a wack from the short side, i don't think that there's a lot of move to the upside but really when you look at th

trader todd horowitz of average joe options joins us now for a look at the trading day. good morning. > > good morning, angie, what's up? > > well let's talk about these yields... the 10 year yield is around a six month low-- what does that tell us? > > well it's telling us a couple of things. i think it's indicating that obviously the fed is way involved. they're still buying treasurys and also i think as we look at it, it's probably a little bit of a flight to safety. i think we've seen a little bit of move out of the equity market into the bonds and into some of the safer stocks so i think it's probably right here just an arbitrage. i don't think it's anything to get too worried about or get too excited about. i think it's a natural move and probably coming up in to expiration on friday. > > what do you think that investors should be watching in overseas action? > > you know i think overseas you got to watch their dollars, you got to watch what they're doing. right now the central banks throughout the entire world are at a race to devalue their own currency, and i thi

trader todd horowitz of average joe options joins us for a look at the trading day. good morning to you, i have to start with that treasury topple... what is the word from the trading floor, todd? > > good morning, angie. well i'll tell you what we're seeing it depends on who you talk to... if you talk to the bulls, all you're seeing is an arbitrage selling for indebted high prices and buying american debt. if you're a bear, you're saying that something's got to give, the bonds, the interest rates are going to low, bond futures are going too high... the bottom line, angie, is nothing's going on, there is no buying, it's very quiet and were seeing some flow of funds into the bond market right now. > > still it's a big deal that we're sitting this low. what about gold? gold also selling off todd. > > you know i tell you when you see weakness in the dow i think everybody's kind of gauging what mario draghi might say next week. and i think they're trying to position themselves ahead of what he's done because you know super mario-- he always has some special surprise in mi

todd horowitz, founder of average joe options.com. have a great day. stay tuned to cnbc, the "squawk" team will be speaking to rap star and beats investor wil will.i.am. >>> european views will get to also hear from will.i.am. >>> earlier we asked you which would was spelled incorrectly, embarrassing, assassinated or floor res sierido fluorescent? assassinated. >>> thanks for joining us. "squawk box" is next. >>> good friday morning. one more trading day left in may. are investors preparing to sell and go away? hopefully we've got some answers. also erasing google. how the tech join the is letting europeans delete personal information from search results. steve ballmer, he's found a new job. the former microsoft boss behind the l.a. clippers for a record $2 billion. friday, may 30th, 2014. "squawk box" begins right now. ♪ they're playing basketball ♪ we love that basketball ♪ they're playing basketball >> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with andrew ross sorkin. joe is out today. but we have double du