Good morning, Carl Quintanilla is going to join us from pyeongchang in just a minute we have a big lineup of guests this hour. All right extreme market volatility continues after the dow was down more than 1,000 points yesterday. Weve been whipping around today as well. Lets bring in blackstones adviser byron wien youve seen more correction thanksgiving i have at this point. What do you see as most akin to this period were going through right now where the market is grappling with the idea perhaps higher Interest Rates and the prospect of inflation . Well, i think that that was tr triggered a week ago when the employment report came out and average Hourly Earnings jumped from 2. 5 year over year to 2. 9 and that inflates the bear, it triggered the market decline look, weve been waiting for a 10 correction for over a year now. And now were having it. Its really not a surprise the market went through all last year with a 5 correction. And now we have a 10 correction and maybe its not over. But i think its a healthy thing. Is it the beginning of a bear market i think not. The economy is going along at a good pace. Looks like growth this year is going to be pretty close to 3 none of the signs of a yield curve, a topping of leading indicators or any rising unemployment, none of those things are present so i dont see a recession coming i view this as a correction. It will provide a buying opportunity. Okay. Well you just said it. Buying opportunity so is that is this the time now when you advise people to selectively pick off certain names that they could become unduly cheap i think individual stocks get to levels that seem attractive, you can do that. But i dont think the overall market has corrected itself enough to represent a broad buying opportunity i think we have a little more to do byron, you called a 10 correction in a note you published at the beginning of the year it also looks like your target for the s p at the end of the year is 3,000. You are sticking to that i absolutely do i think well end the year higher than we started but i think we may not be done with this correction yet byron, should we be paying more attention to the fact that the dow has corrected . The s p has, or were just back to the levels we were in midlate november. The way were talking about the run that we had had even late last year, it was pretty amazing. Have we really fallen that far thats why i think we have more work to do. I think the market had a euphoric run at the end of the year it carried over into 2018. And my view is that investors are still optimistic they still think that this is just a ordinary dip. Until you convert euphoria into concern, i dont think you see the ultimate bottom in this move why not why havent we seen the bottom you said a number of times you dont think were quite done yet. When will we know if we know when were done and why do you think were not . Well, no, when everybody comes on your program and says there is more to go on the down side that is a universal sentiment. Then you know its time to buy what do you see as the biggest potential risk i think the biggest potential risk is that Interest Rates do rise sharply i dont expect that to happen. I do expect the fed to tighten to at least two or three times and maybe every quarter for 2018 you have to look at [ inaudible right now i think theyre going to rise. I definitely think theyre going over 3 . But i dont think the curve is going to invert. If the yield curve inverted, then i would really be concerned. Byron, thank you for your time appreciate it. Okay. All right byron wien, blackstone Advisory Partners vice chairman joining us on the phone. Now lets get back out to carl at the olympics with more on what we can expect from pyeongchang, south korea carl guys, good morning to you just about seven hours or so from Opening Ceremony. Ahead of all that, we thought you might want to know some of the athletes who you should already know and if you dont, youre going to learn a lot more about very quickly on team us. First is mikaela shiffrin. The best female alpine skier in the world. Shes making her debut on monday lindsey vonn, missed sochi due to a knee injury nathan chen is 18 years old, figure skating from salt lake city, has a chance to be the second american male to win mens gold in singles. And chloe kim is a favored to win gold in halfpipe a koreanamerican from torrence, california as for team usa, 243 athletes in all. Thats the biggest winter delegation in the history of the games. The most decorated among those, shani davis who was tied to be the flag bearer at Opening Ceremony but lost the continue to toss to erin hamlin she said im an american, team usa dishonorably tossed a coin to decide. No problem i can wait until 2022. So that was a little awkward also used the blackhistorymonth2018 8 00 p. M. On nbc where youll see the flag bearer and all the team usa members make their way on to the field of play for the first time guys kind of an odd moment of politics making its way even at the very beginning into the Winter Olympics, carl. Any blowback that youre hearing . Granted this just happened out there right now. Probably a the lot of people asleep yeah. Hes gotten some love taps on twitter for sure some people wonder if hell be chosen at 2022 at this rate. They all start with the mini dramas as you know in rio, it was cleanliness and security and safety. And sochi, the weather sometimes its about the speed skating uniforms so wereused to this by now. Once we get into the competition a couple days in, it actually does become about the events and about the athletes doing their thing. We cant wait for that yeah. At least the snow will stick around this time yes carl, thank you for joining us as we head to break, lets get a check on where we stand with the markets right now. The dow is back in the green were up 76 points now after being up 200 earlier then dropping almost 200. Were still on pace for the worst week for the dow since 2008 we have more coming up after the break. Alerts wouldnt you like one from the market when it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Fidelity. Trust 1 doctor recommended dulcolax. Use dulcolax tablets for gentle dependable relief. Suppositories for relief in minutes. And dulcoease for comfortable relief of hard stools. Dulcolax. Designed for dependable relief. Welcome back to squawk alley. Oil prices, you can see wti dipped under that critical 60 mark we havent seen these levels since late last year two key issues here, investors getting concerned again about a supply buildup the United States producing 10. 2 Million Barrels a day that is the latest number that we have from the eia also the recent drop in equities making the same investors question demand. Thats been a key part to support this trade over the 60 level. Back to you, david ill take it. Lets send it over to south korea. Carl joins us with michael evans, the president of alibaba. Carl thank you very much, david. Alibaba, one of the First Companies to sign a Long Term Partnership with the ioc through 2028 and the First Chinese company to commit to beijing in the 2022 wait a minuter games. Good morning, mike great to you have. Great to be here, carl. You signed this deal at davos last year or around that time. Thats correct. Why jump into the Olympic Partnership game the conversation started before davos and we realized that it was actually very interesting alignment between the vision and the mission of what the ioc represents and what were all about. And you will have seen our logo and our slogan an marketing approach to the olympics which is to the greatness of small which is all about Small Businesses and all about young people and when you think about what the olympics represents, its bringing countries from all over the world, athletes from all over the world, he everybody competes on a level playing field. Thats what were all about. I like that exclusive Cloud Services provider correct. Is this a way to take some share from other cloud providers or how direct is that relationship its not about taking share from anyone. Its about changing the nature of the olympics and digitizing every aspect of it from the front to the back end in terms of the way faya fan will participate and the way that participants look at the event so ten years from now we think it will be a completely different experience more fun, more interactive, more immersive and a lot more interesting. You got a big presence and big physical presence in the park i dont know what you call it. Is it a store . Is it branding facility . Its a showcase its a showcase. And the simplest way to think about is look into the future of the types of technologies which people will be using to enhance their experience at the olympics everything from when they make the initial decision to come to the olympics, how will they book their travel how will they deal with traffic and congestion how will they think about navigating and maneuvering around the park . The tickets which will become a digital map to their experience in the park. These are all things that dont exist today. But together with the ioc and many of the other top partners well be developing them to enhance the experience any reason to believe that because this sponsorship is global that it implies some new aggression for alibaba exchina . Alibaba aggressive . Were not aggressive we partner with people all over the world. Many of whom are already tough partners it does reflect an ambition to be global. And to the greatness of small, its an ambition that jack talks about all the time which is to serve Small Businesses, connect them through the internet and then enabling services so the chinese and asian consumers. So, yes, global in that respect. I got to ask you about just market volatility. What you make of it in the early days since weve seen the selloff. But is it having an impact in how decisions get made not at alibaba. It may be having an impact elsewhere. Were very long term we have a plan which is based on building this business and globalizing over very long period of time we seen this volatility a year and a half ago our stock was way down it didnt disrupt any of our plans to continue to invest and build a business and the current volatility when you look at the strength of economies around the world, theres a lot of concern about leverage theres a lot of concern about what will happen with inflation and Interest Rates but those are all part of what i see as normal cycle. And were going to continue to plow ahead we had some rough talk from the secretary of commerce regarding china. The at t wild way, money gram. You are seeing an erosion of trust between u. S. And china i think there is tension between china and the u. S. But i think both countries appreciate the fact that the two largest economies in the world not only are those two economies better off but the rest of the world is better off if we can figure out how to, you know, optimize some of the trade imbalance thats exist i think well make progress on that bring send it back to david, i do want to look at a picture of you in l. A. In 1984 where you won the gold medal for rowing for canada which one are you . Im the good looking one. So this must be special to some degree for you, this partnership. Very emotional seeing that picture. Very emotional being here and participating in the olympics. A fantastic opportunity for me to relive the experience but also to the company is connected to the olympics for the next ten years. That must be something you always have. Thats really, really cool mike, thanks for stopping by i know its late but i know you enjoyed the ceremony good to see you. Thanks, carl. Back to you all right thank you, carl. It was good to hear from mr. Evans, of course, and seeing him back from 1984 well see carl later in the hour hell have more from our boss, comcast ceo brian roberts. Whether we return, u. P. S. And fedex are feeling the pressure after a report that amazon the launch their own competitive Delivery Service to businesses shares of both delivery giants are down sharply today fedex down 2 . U. P. S. Is also down 2 before we head to break, a quick look at the dow which is currently back in the red. Down about 64 points right now and whats been another whipsaw session. Resqwkll tethis you traded options. Thought im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade and i recently had hi, ia heart attack. It changed my life. But im a survivor. After my heart attack, my doctor prescribed brilinta. Its for people who have been hospitalized for a heart attack. Brilinta is taken with a lowdose aspirin. No more than 100 milligrams as it affects how well brilinta works. Brilinta helps keep platelets from sticking together and forming a clot. In a clinical study, brilinta worked better than plavix. Brilinta reduced the chance of having another heart attack. Or dying from one. Dont stop taking brilinta without talking to your doctor, since stopping it too soon increases your risk of clots in your stent, heart attack, stroke, and even death. Brilinta may cause bruising or bleeding more easily, or serious, sometimes fatal bleeding. Dont take brilinta if you have bleeding, like stomach ulcers, a history of bleeding in the brain, or severe liver problems. Slow heart rhythm has been reported. Tell your doctor about bleeding new or unexpected shortness of breath any planned surgery, and all medicines you take. If you recently had a heart attack, ask your doctor if brilinta is right for you. My heart is worth brilinta. If you cant afford your medication, astrazeneca may be able to help. Welcome back to squawk alley. Fedex and u. P. S. Under pressure this morning theyre down sharply after a report that amazon is set to launch its own rival Delivery Service to businesses. Now the service is called shipping with amazon, expected to rollout in los angeles before eventually spreading out across the country. The concept, allow amazon to send its own contracted drivers to pick up shipments from warehouse and deliver them when they are able. It will be starting in l. A. First and specifically for Third Party Merchants using the amazon platform, were seeing a strong reaction in shares of both u. P. S. And fedex with each down 2 once again, guys, this seems to be the Amazon Effect in the market that rumors that its moving into speculation that its moving into another industry is sending stocks in that industry lower. Once again, yes the socalled bond vigilantes should be angry this morning. Thats according to our own Steve Liesman who joins us now from headquarters with the reasons why. Steve, what is a bond vigilante and do they get to drive a bond mobile bond vigilante enforces discipline on the government there is a tremendous amount of new supply, new treasury supply coming on to the markets and that appears to have spooked bond and stock investors that is the treasury has to sell a lot more debt this year than it did last year how much more, you may ask last year the government sold 586 billion of new paper. This year that number estimated to rise by 56 to 1. 3 trillion. Folks, that is a lot of new paper. But what happened . Tax cuts, more spending, and the fed reducing its Balance Sheet essentially selling treasuries so here are the totals for last year and the next two years. New issuance 586, you can see there roughly 1. 4 trillion the next two years. According to a local group, it is 1. 13 trillion of paper from spending and from tax cuts thats even accounting for growth if you get from the tax cuts and the fed, you can see there at the bottom in the yellow, selling 230 billion of treasuries, going up to 270 billion of treasuries. And there is your total. Thats how we get there. All of this is meant higher Interest Rates as markets prepare for this greater issuance of paper. Unlike when we did this back in the recession, it comes at a time of higher inflation and lower unemployment there will be buyers for this paper, jon the question is at what Interest Rate i think, david, thats what tweer trying to figure out now a lot of people are and the market seems to be whipsawing around as people try to figure that out steve, thank you Steve Liesman. Lets get over to dominick chu and check out the european close. David, while weve been seeing some volatility in the u. S. Trading session ourselves, those european stocks have pretty much been in the red the entire day theyre now on track for the ninth negative session in the past ten and the worst Weekly Performance over the past two years. The german dax is now fallen into correction territory. Down by more than 10 from its recent highs reached 2 1 2 weeks ago. Over that same period, the yield on german ten year bonds, the government bonds, up 30 in that time pulling back a little bit today. On thursday, that yield hit 8. 8 80 basis points for the First Time Since 2015. For the week, both the german dax and the paris cac 40 down more than 5 meantime, londons ftse is in the midst of a four week losing streak for the First Time Since june of last year despite a decline in the currency, the uk pound. As of now this weeks losses on the europe stocks 600 are not as steep as those on the s p 500 here but well have to see how things shake out in the rest of the u. S. Trading session we do know, of course, jon, things picked up in terms of volatility in the afternoon hours of our own trading back to you. Boy howdy, yes, they have dominick chu, thanks coming up, more on the markets as the dow has the second 1,000 plus point selloff in less than a week. Currently down about 60 points and next, former cisco executive chairman John Chambers is going to weigh in on the volatility and role tecsth ocks are playing in the wild market swings. Stay with us barry murrey when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. We call that the golden hour. Evaluating patients remotely is where i think we have a potential to make a difference. barry murrey we would save a lot of lives if we could bring the doctor to the patient. Verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. As we get faster wireless connections, itll be possible to be able to operate on a patient in a way that was just not possible before. When i move my hand, the robot on the other side will mimic the movement, with almost no delay. Who knew a scalpel could work thousands of miles away . Officials say the bombs were planted in separate rooms inside the mosque in benghazi Facebook Says theyre working on a down vote button. The social media site is testing the new feature on a few public pages in the u. S the button allows users to flag or hide comments they think are inappropriate or misleading. L. L. Bean is dropping the unlimited returns policy to reduce growing abuse and fraud the return of items that have been destroyed or rendered useless doubled in the past faf years. The company is imposing a 50 minimum for free shipping. And the torch relay arrives outside the Olympic Stadium in pyeongchang. After jackie chan briefly ran with the flame during the Opening Ceremony the flame will light a called ron ulled ron ine stadium. You can watch it tonight on nbc. Thats what ill be doing. Lets get back down to squawk alley. Well all be watching nbc, sue. Yes, we will. If not cnbc extreme volatility making this a tough environment for investors. Our next guest launched a new venture fund jc 2 ventures is former cisco ceo John Chambers next act. He joins us now from stanford. John, good morning jon, its a pleasure to be back with you all again. Great to see you. Now for covering cisco for years, i have your line about catching market transitions burned into my brain so now that youre on a different end of that, tell us if you will what are a couple of the Technology Market transitions that youre trying to invefst and drive sure. So were a spatial Purpose Organization about 100 million of personal investment will be using. Were going to focus on startups on a global basis, inclusive across all states and across major countries were going to focus on the market transitions that you have engrained in your head in terms of internet of things, were doing drones and defensive drones, air ware, Top Companies in their industry segment. Were doing open transparent government with open gov sprinkler manages the top 25 social media capabilities and changes the Consumer Experience with it. Security around pin drop and voice authentication taking your phone and slide night a Company Called prevo, nation state resistance to surveillance and video or voice. And then perhaps, john, what youre going to love and next time were together ill get you to try, this is around the next form of protein will be cricket power where the majority of the protein that we absorb ten years from now will be from insects. So i should have asked what market transition are you not trying to catch . You talked about a lack of ipos and job growth how do you expect this Public Market volatility weve been experience to affect that . Actually think it opens up the opportunity for it we really think about the inflation were starting to experience i think its a good thing. Its about how america got a raise. This will surprise you i would look to what france and india are doing. France in terms of its ipos, the Venture Capital investment, is up 4 x in three years. They have gone from 120 Venture Capital investments and hightech to 186 the number of startups at the consumer electronic show have gone from 66 to 278. They matched the u. S so we need to get this engine going again in the u. S thats what i would like to play a small role in doing. And doing it across all 50 states not just in Silicon Valley or new york city. John, to be able to get to the point where we have a company that is big enough to or, you know, i guess notable enough to be ipoing, you have to start with early seed and Stage Funding and the data weve seen shows that is drying up why invest there now always invest in market transitions. The fact that were at a 40year low on startups when the rest of the world is starting to take off means the u. S. Will kick into high gear wli said france would become the startup nation of europe three years ago, everybody said not going to happen. Theyre leading that im honored to be the ambassador of french tech he gave me that responsibility three weeks ago. Now is the time to do it in the u. S. And so i want to be a role model on that. I want to talk to startups andmentor them and be a partner with them and growing it and in my heart i like to get market transitions im not doing seed money i do it when i see a market about to take off, products already in the market, customers tell us world class ceo who really has the potential to be the number one and number two player in that category. And thats what im doing in this area. So i think thats the best place for job creation but also for innovation to occur in our country over the next decade i usually get the transitions right. It will be fun to come on your show periodically and talk about how its evolving including the companies i want to take public. Yeah. Well, john, its david the many times you come on our shows through the years, i dont think ive ever heard or expected you to say the words majority of protein we digest will be from insects yes explain that to me. Why is that going to be the case and how are you going to capitalize on what you believe will be that trend over the next decade well, if you really watch, today were running out of Geographic Area to even grow the meat products. And to grow the agriculture products as the population expands worldwide. The damage do you to the environment whether we produce a pound of beef, and im a roast beef guy, is seven times what do you if you do it through robotic farming capability also the crickets whether you raise them in containers, you control the food supply to the quality of the food is much cleaner and raise them very, very fast. Our bodies digest pro ten from insects or meat much easier than we do plants there is an article on it and well take it to the next level. Your kids are going to love it its already at the Atlanta Hawks and seattle supersonics. It will be protein powder, et cetera of all the market transitions you named and there were several, correct me if im wrong, dinlt hear mui didnt het video. In your tenure at cisco, you talked a lot about how video was going to drive so much so has video already largely played out the way you see it . Why arent you investing in content or in the codex that are going to continue to make video a story in the coming few years . Its a fair question, jon video will continue to be the majority of the loads on the networks and the way that we communicate with each other. This will surprise you i called voice would become a commodity. And it would be for free almost in 2007 and it has voice will actually be the next platform if you watch what amazon and apple and google and others are bringing out, self driving cars, et cetera, watch what pin drop is doing with voice authentication for security and fraud prevention, it will become the platform of the future it will dwarf all interfaces including video. But machine interfaces as well for us humans in terms of how we intersecreta intersecretary i think the odds on it are pretty good. You planted a flag. Well hold you to it hope to you have back. John chambers of jc2 ventures. Thank you. Good to be back with you all. Well have a lot more on the extreme volatility in this market when we return and speaking of, which rick santelli, a lot of eyes on you what are you working on . Ill tell you what. First of all, you need to look at this pit. There is always this notion that computers will replace humans and in large part it has but this little human pit did millions of options contracts on euro dollar futures, multiples of the screen trade and i thought they did a great job you know what im watching theres a lot of blame game going on exactly where there started. But lets keep it in perspective. You can have a big drive force and a couple of trees can do a lot of damage. Were going to talk about the blame game and the notion that on balance it was probably the up obrkst tea sheeafr colef ea mvo we had support from the interfaith groups, the synagogue, the churches. When disaster strikes to one, we all get together and support each other. Thats the nature of humanity. Ill stand by you. Ill stand by you. And ill never desert you. Ill stand by you. The Winter Olympics kicking off in south korea and carl is there live with more from his interview with comcast ceo brian roberts. Carl one last touch of our conversation with robert its not about the olympics per se but more about, for example, the tax bill the tax cuts we asked brian to give us a sense about whether or not that legislation pushed the company to make an investment that it otherwise might not have done. Take a listen. No. In fact, you know, we were looking at an investment in business and i wont reveal exactly but in one of our companies and there was a project that is on the fence, frankly. And all of a sudden the return to shareholders of that investment gets materially better and it went from the maybe column or some day column to how fast can we do it column. Based on a tax rate on a tax rate when you put it into return on invested capital. So if youre going to spend another billion dollars on a project that is discretionary, not talking about, you know, a truck wearing out and you need to buy a new truck im talking about a whole new business in our case it involved a theme park area. So its not in the television space. But we want to make that investment now m a regulation out of this administration, it is as bewildering to you as it is to some others . I think well get clarity at some point here. But its not exactly clear yet what the rules of the road are i think as you see with investment and as you see with tax cuts and other regulations, most Business Leaders need sort of certainty and they can explain it to their investors what the strategy is uncertainty hurts investment so the more there is clarity, the better it will be. You mentioned tax cuts earlier. You were pretty quick in announcing the bonuses out of the legislation. How did you get to the number, the 1,000 why so soon . And how do people separate that versus what you might have done otherwise . Its hard to speculate what you might have done otherwise. Weve been talking about it for a couple weeks as it looked likely there was going to be tax reform officially passed we were talking at Business Roundtable and other organizations about sending a message to our existing employees and how much we appreciated them our second goal was to say were going to invest in the business. In the case that same day we announced were going to spend 15 50 billion in the next five years in capital thats the certainty of what these tax reform allows companies to do and then thirdly, a couple weeks later in earnings we were able to have healthy growth in our investments and also in our return of capital shareholders so its a balance. It was the holiday season. And we know 1,000 to 150,000 people will make a nice and important contribution and the response from our employees, no surprise but nonetheless, very much appreciated. Its been overwhelming for me personally and for a number of our leaders. A couple thoughts on netflix. One, the degree to which theyre forcing others to spend on content aggressively and, two, its funny we talked to a couple artist, content creators in the past few weeks who say netflix is great theyre hands off. But i feel like my product gets lost in the wave of content they are pushing out. Let me start by saying theyre an Amazing Company they created a Worldwide Business and my hats off to them they do have a different model where at the moment their free cash is negative but adding customers. We have a nice relationship now and im proud that the best way to get netflix is using your x1 from comcast and more people use netflix than almost any other service. This is a crowded world thats why parking back to olympics for a moment, one of the things we can do as a company that other companies cant do is use all these different platforms to take a piece of content or a type of a series of dont such as olympics i dont think there is a Better Company that can deliver that content in so many ways. And, of course, the olympics start off in earnest tonight Opening Ceremony 8 00 p. M. Eastern time on nbc. Jon, always interesting to get brian to talk about one company by name and netflix in this case another example of sort of the frenemy relationship that exists in media as competitive as it is back to you. Indeed, carl. Did you get him to talk any more, perhaps, about comcasts willingness to spend more to catch those digital users who theyre trying to sort of sweep in with all this olympics coverage his point would be the number of live streams. I mean 60 plus that youre able to watch this content out of the winter games than you were even four years ago in sochi. So as the technology develops, the more youre able to see in real time. Also, he made a point, it was interesting, mentioning by name buzzfeed and snapchat. You know, snapchat having interesting price action this week but as examples of the company experimenting with a stake here and a stake there, carving out one more tiny channel of distribution to tell the story in a different way which is, as we know in, the olympics, story telling is the name of the game trying to get consumers to fall in love with the athletes. Absolutely. Carl, great stuff. And more to come le aerhibrk. K more squaw alyft ts ea hey, need fast heartburn relief . Try cool mint zantac. It releases a cooling sensation in your mouth and throat. Zantac works in as little as 30 minutes. Nexium can take 24 hours. Try cool mint zantac. No pill relieves heartburn faster. Feel that . Thats the beat of global markets, the rhythm of the world. But to us, its the pace of tomorrow. With ingenuity, technologies, and markets expertise we create the possible. And when you do that, you dont chase the pace of tomorrow. You set it. Nasdaq. Rewrite tomorrow. Coming up, the unusual activity pete in a jairian just found that could shed light on whether this correction is running its course plus, the one dow component a top analyst says could soar 20 after this weeks big drop created a buying opportunity and 1980 u. S. Olympic hockey team star is with us as the olympics get under way in korea. He makes his living now in the Financial Services industry. Well see where he sees stocks heading from here. Halftime report starts at noon eastern. Jon, well see new 10 minutes. See you then, scott lets go to rick santelli. Rick thanks, jon you know, its been quiltte a we and a half in response to how the markets reacted. And these types of corrections which weve have had so few of over the last 14 months really are a bit shocking because we havent had any. And theres many investors that dont pay as close attention as some of the insiders and they were shocked. The blame game is going all around the best way to look at this is there was a confluence of major areas that all contributed to. This but in the end, i look at it as a tinder box ora dry forest you dont need to set all the trees on fire, just one or two and it spreads like wildfire so whether its risk parody or portfolio management, whether its etps, whether its the fact that many like in the previous crisis were focusing on very specific areas to do pricing for a variety of positions that amounted to so much, theres no way to tell. But in the end, in the end, on balance, theres little doubt as to whats going on here. Central bank Balance Sheets. Lets go to the board. This is a cumulative central bank Balance Sheet chart starting in august of 2017 ending basically today it includes the fed, ecb, bank ofening glanld and japan and the Swiss National bank. I thank my good friend and cnbc pal jim bianco he helped me compile this chart. I guess it just speaks for itself the High Water Mark was beginning of february at16. 4 trillion we have dropped a little bit as you see. Hey, kind of look like a dow jones or nasdaq or s p well, it should. The other thing thats fascinating is weve often talked about how u january was unbelievable thats because the amount of input was unbelievable listen, we have no idea how big the thumbs were of Central Banks on the scale of rates. Weve talked a lot about it over the last six or seven years. And what many decided, it could be 50, 75, so 0 basis points remember, markets dont dillydally they move first, think later for the most part, we have no idea how much premium oned out but look at how steady rates are. One thing i can say the is you put innovation, a lot of fed treasuries, Central Bank Capital in the equation and fully packed markets looking for great returns. Thats the landscape this is what happens when it changes. David faber, b back to you thank you very much, mr. Santelli ing coming up rp, the strategist with the highest on the market were going to get his take next stay with us welcome back market volatility continues. For more, lets bring in keith parker who has the highest s p target on the street and charles, head of Investment Group of Ariel Investments keith, what weve seen in the past week and a half, are you sticking by that s p target . We see the, whats transpired over the last week is quite extraordinary. We have the rise in rates, which helped drive a surge in the vix. Some passive selling, which was driven quite a bit of volatility over the past week and you know, price to earnings multiples, which have shifted down by two times asd up modestly at these level, we see a buying opportunity. Data remains strong and youre get k equity now at a two times discount to what they were just a week and a half ago. And charles, looking at Interest Rates and sort of the pretty dramatic move weve seen in recent weeks. The fact this seemed on the heels of a friday jobs report, that this really sort of seemed to trigger all this volatility how much higher do you expect rates to go and what do you think that means for equities . A great question. Everybodys agreeing the higher rates are bad for the market, but people havent done a good job of quantifying that. So we went back to models over the last couple of days. We have a model and value. If you take the discount rate up from say 8 to 8. 5, 50 basis point increase in Interest Rate, that reduces a reduction of about 9 , so very similar to what weve seen in the market. We think the value of the tax cuts was about 11 to the good and we think the benefit of all the regulatory environment, the tax cuts, was about a quarter point positive to gdp growth so you put all that together and you actually get something pretty close to what weve actually seen. The higher rates a little bit before outweighing some of the positive effects in light of that, do you think the correction weve seen is this is the worse its going get. We actually are pretty bullish on b the economy of all the inputs that i just talked to you about, we think the market is getting most right, but the one its not quite getting right is the economy. We think its doing even better than the market thinks it is were on a lot of boards we have a lot of managements that we talk to and business is better we think ceos are actually sandbagging this a little bit. They are seeing the big benefits from tax cuts and the regulatory environment. But they dont want to call it out up front at once theyd rather call out a little bit then outperform. And keith, my generation, the millennial, we have come of age in a time where as adult, we have not seen higher Interest Rates. Weve seen record low Interest Rates. We havent even seen Economic Growth that was above 3 weve basically seen a market where the fed has been involved coming off of a recession. Are we getting back to a state of normal . What touwould you say to that generation thats starting to invest now Interest Rates are still low and theyre rising we have a government thats spending a considerable sum after tax paychecks for consumers are going up 2 to 4 this month we think thats positive for the economy. And equity quvaluations have reached that lower we have eps growing at 18 this year and bull markets tend to end when the fed is done hiking, not when theyre one percentage point in we still see the upside to earnings we think earnings yeeds are discounting higher rates, so the upside from investing in the long haul is very attractive still. Charles, it was wages or wage data that kind of kicked all of this volatility off. Whats your outlook on where thats going to go for the rest of the year and what its effect is going to be, not just on the markets, but on this economy that were seeing . Im glad you brought that up. We have been consistent in saying there was going to be more inflation that was an unpopular view over the last year. But we really do think thats coming home to roost its going to be coming from wages. Its going to be coming from pressure on the dollar its going to be comeing from higher Interest Rates by the way. Factor into mortgages. They factor into rent. There are lot of places that higher Interest Rates show up in the inflation data and ive said this before, but we have countries around the world competing to low er the value o their currency, including our own country. And when that happens, thats an inflationary trend gentlemen, we are going to have to leave it there thank you. Keith and charles. Thank you and take a look at the major indices all in the red as we reach the Halfway Point of the trading day. Some stocks on the move. Viacom is down as is fedecno surprise with that amazon news were down to about 2 on that average its worth keeping an eye on them interesting that amazon itself after being up earlier in the session is down u. Very mixed picture in technology overall. Perhaps people focusing on the additional cost. Another new business although typically amazon is rewarded the more money they spend, but it is notable that it is down 3 in the early going here couple of big techstocks seeing a nice lift today nvidia and microsoft both very much in the green. That will do it for squawk alley. Lets head to scott wapner and the half all right, thanks very much welcome to the Halftime Report our top trade this hour, correction watch stocks trying to find their footing today. Everyone wondering the same thing. When will the correction end with us for the hour today, jim, josh, jeff, the founder and ceo of Kkm Financial rob is back with us today as well he of course with ubs private wealth management. One of barrens and forbes top advisers pete hanging with up today from minneapolis. Stocks have been b juching between positive and negative territory all session long still working on the