wayfair, the online furniture kingpin. when i went to italy, wayfair was flying high. red hot stock. then last thursday morning, wayfair reported a sub optimal quarter and the darn thing just gets crushed losing 22% of its value that day ouch still the stock had run so much in recent months and even after this catastrophic decline, wayfair was going back to where it was trading in mid-december so left with two questions what in the world happened to wayfair and could the stock be worth buying down at these levels or is it too toxic to touch? first let me set the scene this is one of the most controversial stocks i have ever seen. wayfair is the largest online furniture retailer for years, this company has been growing like a weed and for some reason it attracts fanatics on both sides, a rabid group of bears who hate wayfair and equally committed bulls. in shorts, the stock is equally incredible ply polarizing. for years the bulls were triumphant the shoe is now on the other foot the skeptic control the field while the believers they cower in terror. what went wrong her

. >>> straight ahead in the blitz, we're trading pandora, wayfair, and chesapeake [ phone rings ] hi,om. how's the college visit? does it make the short list? yeah, i'm afraid so. it's okay. this is what we've been planning for. knowing what's important to you is why 7 million investors work with edward jones. ein the 2018 lexus es,y system plus, standard... and the es hybrid. take advantage of special president's day offers now through the 28th, on the 2018 es 350. experience amazing at your lexus dealer. where can investors seek pin an uncertain world? pgim sees alpha in real assets. like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over one hundred fifty billion dollars in real assets. partner with pgim. the global investment management businesses of prudential. at the marine mammal center, the environment is everything. we want to do our very best for each and every animal, and we want t

south dakota versus wayfair. this is a case about which i am deeply conflicted on the one hand, my husband, tom goldstein represents south dakota, which is trying to require out of state retailers to pay, to collect and pay sales taxes and on the other hand like a lot of working mothers, i do a lot of on-line shopping. so i'll let tom talk about south dakota versus wayfair. >> you can tell this is a big issue in our household. >> so this case has roots in all of your your category purchases, which may be less than they were at the time that the supreme court decided the case it's controlling right now, a case called quill. >> can you explain what a category is. >> that's right, it used to be you'd go to your mailbox, you would go to your mailbox, that would be a thing. you would go to your mailbox and it would be inundated with dozens upon dozens and dozens of catalogs of pictures of things you would then not buy, but they would keep sending the catalogs and you would try and unsubscribe and they'd keep sending t

wayfair." i am deeply conflicted about this case. my husband, tom goldstein, represents south dakota which is trying to require out-of-state retailers to collect and pay sales taxes. on the other hand, like a lot of working mothers, i do a lot of online shopping. so i'll let tom talk about "south dakota v. wayfair." >> you can tell this is a big issue in our household. this case has rites in all of your catalog purchases which may be less than they were at the time the supreme court decided the case that it's controlling right now, a case called quill. >> can you explain what a catalog is? [ laughter ] >> it used to be that you would go to your mailbox, that would be a thing, you would go to your mailbox and it would be inundated with dozens upon dozens and dozens of catalogs with pictures of things that you would then not buy but they would keep sending the catalogs and you would try to unsubscribe and they would keep sending them but eventually some people would buy some things and there was a big fight if you lived in the state of

missed estimates, guidance wayfair. it says tanning. wayfair's not tanning, that would be tanking down 20% the company reporting a wider than expected loss and pandora taking a hit music streaming service also posting a wider than expected loss despite the fact that i was listening to it this morning. >> thanks. let's get more on the trading action this hour bob has the latest. >> hello, melissa. a pretty broad advance 3-1. the bias is kind of toward cyclicals again. looks like the early part of january. take a look at the big sectors energy moving up here today. chesapeake had good earnings transports are strong. that's pulling up the transports you can see the cyclicals doing better look at the banks. they turned negative as we see yields down 3 or 4 basis points but that's all it takes for the ten year yields to move the markets. we have seen pockets of weakness out there. energy stocks have had a terrible month and we still see 52 week lows had earnings and it's not helping then down 5%. some of the consumer names sitting at new low

the move takes aim at target which has been investing in exclusive home brands as well as amazon, wayfair and ikea. it's part of a broader overhaul as it tries to combat slow and online sales. and uber is drawing out a cheaper version of its car-pool service called express pool. riders wait to be matched with other passengers to be picked up and dropped off in the vicinity of their destination. it makes shared trips faster for passengers. express pool is now available in san francisco, washington, boston, l.a., denver, san diego, miami and philadelphia. back to you. >> some bigger cities. it makes sense. >> we'll see how that works. thanks, landon. >>> so if you're not a fast food burger person, listen up. we found out that more and more people are actually choosing a chalupa over the whopper. taco bell has now surpassed burger king in sales. now this puts taco bell as the fourth largest american restaurant brand. the top spot still belongs to mcdonald's, starbucks and then subway. taco bell is up 5% last year, the company bringing in nearly $10 billion. they sell fries now. >> they're so

home goods retailer wayfair reported a wider than expected quarterly loss and lower gross margins. they posted a decline in free cash flow as it burns through cash tryin to increase user growth. off 22% on the day to $73.95. >> brook dale senior living rejected a buyout offer. it said it received a $9 a share value from an undisclosed company. brook dale also appointed a new ceo. trouble was, the stock fell, 19%, to $7.18. not a very nice welcome for the new ceo. >>> after the bell, hewlett packard enterprise reportedha earnings easily topped analysts expectations and issued an upbeat outlook. the company said its bottom line helped by higher sales of storage products also launching a $5 billion share repurchase program. shares rose in the after hour trades and ended the regular day up 1% at $16.41. airbnb wants to shared accommodations. the company is launching a new service that will more directly compete with big chain hotels and online travel companies. airbnb will make it easier for hotels to list on a its site is using four new rental categories. it will vet higher enlistings

take a look at shares of wayfair.n sharply this is after rorecording a quarter as the lowest gross margins in their history the competition just continues to increase. the screws continue to tighten on wayfair as walmart's jumping in now, amazon has been in, the home space so the competition is pretty fierce there >> seeing quite a few names with double digits 20% like declines. >> i know. >> on news >> big movers. >> something to watch. although, dow close to session highs, up 233. when we come back, a lot more on this rally "squawk alley" starts in a few minutes. don't go away. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. with its high-tech the cameras and radar, contemporary cockpit, 360 degree network of driver-assi

. >> you were the founder of dwell, dwell studio, which you sold to wayfair successfully.ongratulation stpwhrs thank you. >> and the founder and ceo of tough mudder. it is incredible. now look at you. so i wanted to put you two together because you both built brands that had obsessive customers. people are obsessed with you guys. and i want to know about a time when you could have had an easy win revenuewise but maybe it would have gone off brand. because i know that is a hard decision to make. >> i think it's very hard as an entrepreneur. it's something that i call shiny object syndrome. you get these things that come at you from all over the place that seem shiny and worthwhile. but when you start to dig into it, you realize it will jeopardize your brand. many times people came to me with offers to do diffusion lines. when you really get to it, most of the time it was the service of the other company coming to partner with us. a lot of times it would be easy revenue and sort of a low lift thing to do from a kind of company standpoint. but at the end of the day it would h

way item fair doesn't seem to have -- wayfair shares struggling, down nearly 5% at its session low as the way of yesterday's bigger than expected quarterly loss. but credit suisse still a believer, they're upping their price target to $76 a share from $69. that stock currently up 1.8%. and apple reportedly ready to start shipping its new charging pad. they're calling it air power as early as march. the charging pad is designed to refuel multiple products from your iphone, ipod and apple watch to your air pods all at the same time. so far no price attached, but industry watchers are saying it could go for as much as $is-- $199. up next, the u.s. tightening screws against north korea's rogue regime. lieutenant colonel really peters tells liz where money can work better than weapons and the his new front-page op-ed on how to stop mass shootings. "countdown" coming right back. ♪ ♪ ♪ ♪ ♪ ♪ the gig-speed network that powers the dreams of america's businesses is now doing the same for america's olympic and paralympic athletes. dream gig. comcast business. sucthey read more.have one thing in

fair online home retailer, big loss, not putting out very good numbers, down 17 bucks, at $77 for wayfairs forget building a border wall. if you want to keep illegal immigrants out, you have to mow the grass. you will hear about it next. >>> plus applebee's closing 60 locations this year after shutting 100 last year. zane tankel, franchise owner of applebee's in new york. he will be with us later this hour to talk about. we'll be right back. ♪ but i'm not standing still... and with godaddy, i've made my ideas real. ♪ i made my own way, now it's time to make yours. ♪ everything is working, just like it should ♪ retail. under pressure like never before. and its connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ show me the olympic winter games ♪ leaving every comp

wayfair? >> if you look at the language, it goes -- it walks up to the line. and it -- it could have just distinguished abude and then said, this is narrow, we don't really have to address that. but it went out of its way to talk about how, i forget all the adjectives -- derogatory adjectives were directed at abude. in addition the court went out of its way to reject some of the arguments some of which appeared in your briefs, some of which appeared in the government -- >> in your brief. >> not mine but the government's brief. and it went out of its way to rebut or reject those arguments and you see a lot of the arguments, you know, being raised again now for understandable reasons. raised emed like it got by me. >> and so what happens then for a private union? what's the interrelationship between the cases if there's a federal statute underlying where fees come and the private context? >> i don't know the answer to that. it seems like -- from what i can tell the challengers have been very careful not to ask for too much. but obviously once -- once this leg of

and wayfair hitting new all-time highs. climbsing about 6% in that time. >>> all right. for more on the markets, le ate go to the new york stock exchange and check in with bob pisani bob? >> tyler, 111 points in the dow, used to be big news a few weeks ago, but not anymore we're starting to settle down. i'm not saying it's over yet advancing to declining stocks. the volume, surprising below average from what we've seen in the last few weeks, volatility is moving in a much narrower range. trying to find some footings sectors, well, the market leaders used to be slightly to the down side. banking are fractionally positive consumer staples, defensive group has generally been stronger all day here. finally we're following as interesting story from an anonymous whistle-blower who has written a letter to the s.e.c. alleging -- we don't have his name or what he does allows firming to move up and down by posting quotes without needing to physically engage in any trading itself he's alleges a breach of fiduciary responsibility by the cboe s they say for its part it lacks credibil

. >>> wal-mart is hoping to put pressure on ikea, wayfair and other home stores with the newly launched. it features furniture, accessories and appliances and has design tips and a magazine style layout with big colorful photos. people will be able to gather inspirational design ideas as part of the shopping experience. wal-mart shoppers also expect all the products will be low cost. they promise to deliver that. >>> new research also showing americans spend more than $300,000 on impulse purchases in their lifetime. now, that survey from one poll found americans on average maybe three last-minute unplanned purchases per week. that means in a year, someone can spend about $5,000 on those impulse buys. food and groceries are the most common impulse purchases, followed by clothing. researchers found people spend more if they're happy or if they come across a good deal. if you're happy, you're like, sure, why not. it probably depends on how close you are to payday. >> right. >> right. but i always find when they wind you around there, are a couple of stores, i'm not going to name them in pa

wayfair losing 58 cents a share for the latest quarter that was less than analysts had been expectingusing on the bottom line. stock is off by 8% then there is billionaire investor ray dalio, who he thinks there is a relatively high chance the economy will see a recession before next election in 2020 the founder of the largest hedge fund said the economy is not currently in a bubble but he says it may not take long to get there and move to the buzz phase he puts it before the next presidential election at 70% >> and we were alluding to this, the st. louis fed pratt james bullard speaking out on what he feels the next rate hikes will be over the next year. listen to this. >> the idea that we have to go 100 basis points in 2018, that seems like a lot to me that's kind of a price for perfection everything would have to go just right. the economy would have to surprise in the upside a bunch of times during the year i'm not sure if that's a good what i to think about 2018 >> and joining us now, kevin j.j. diddis at riemd james and chris resler, a funds manager at needam small growth fund h