Been a good week for the markets. If youre long, the markets are rebounding dramatically from the lows that we saw made up almost 60, 70 of the losses that we saw in the s p. European markets have also had what you might expect, a good week also. This morning no exception. Green across the board tenyear yield note has been a focus. Today didnt care down 2. 86. Theres a look at wti back above back above 60 solidly this morning yeah. All right lets get to our roadmap this morning. It does start with the market comeback two weeks since the selling began, and as we just said, stocks have been seeing what was one of the best weeks in years plus, well, the negotiation kind of continues broadcoms response to the meeting with qualcomm or qualcomms response to its meeting with broadcom signaling a deal well, is there one to be done . Were going to give you all the analysis on why thats probably not the case and a busy morning for consumer earnings. Numbers from newell, coke, kraft, campbells soup jim and i want to talk about kraft. He has a lot on coke as well. The markets looking to extend what has been a winning streak to would be six days with the s p on track with what would be its best week since 2013. It has been two weeks since the release of the jobs report that showed Wage Inflation that sparked that major selloff on wall street. Heres how much stocks have recovered from the peak losses as i said, there we are, 68 of the s p. The dow and the nasdaq almost all the way back really since the thats measured from february 1st of the close to the february 9th interday low. You can see all the numbers there for those respective averages, jim. Are we kind of back to normal . What am i supposed to make of it all at this point as we edgnd a very strong week i think its okay to say a lot of people are very confused. The market didnt sell off at the hedge fund level, what i mean is the level the hedge funds say they punctured 2. 9 now we see the Interest Rates coming back down it looks like that we finally blew out a lot of the people who are doing that short volatility. Its up a little bit today long s p where there was a big margin call. So heres what i say the margin calls are over. Doesnt necessarily mean the volatilities are, but the margin calls. The market is incredibly thin. Looks like more people have left the building i think it doesnt take much to move the stocks. Youll see stocks move on 300,000, 400,000 i think that makes things volatile none of the brokerages want be to position or get a position where they short stock you or buy stock from you but its probably run almost in its course still over sold. Been a magnificent rally back, and i think there are a lot of people who missed it. Right that, of course, looking at yesterdays performance, i believe, as you see were set up for sort of a mixed open apple was the key to this market because you had warren buffet buying more. Yeah. And you had katie ubertidy saying, dont worry, china is okay you had the analysts on the run. All the analysts who came out in the 170s, 160s saying the best time is over david, i couldnt find them. Maybe theyre at the olympics under the luge. How about that skeleton still quite amazing. That korean guy. Wow did you see the dmz stuff that carl did . I didnt see it id like to. Jesus, its like the war ended about three minutes ago. Its a little scary. I know. You know, there is a proliferation of wild animals in the dmz that you dont see anywhere else because nobodys been there for 60 years. Have you seen the video of the wild boar in hong kong no. Its incredible theyre unchecked. Speaking of wild boar in hon kong, well get to kraft later, speaking of pigs. Geez. Velveeta, david, i think the north koreans are stocking velveeta for whatever happens. Were talking coke and kraft. Hot on monday wednesday was themeeting between qualcomm and broadcom. I talked about the twohour meeting. This morning we got a response from qualcomm in terms of what they heard at that meeting and what they think and 82, which is best and final for broadcom continues to be too low for qualcomm to really want to consider, but much of the meeting was spent, at least according to qualcomm, dealing with or trying to get some answers on the antitrust front. A lot of this comes back to what seemed to be somewhat unclear plans for the licensing business at qualcomm. Remember, its a key part of their business, a key part of their profitability but not as much of their revenues they asked apparently a number of times, well, what would you do with the licensing business didnt get sufficient answers to understand what the antitrust implications would be because, of course, the remedies that regulators would take depend on what broadcom is planning to do with that business take a look at what they had to do with the release out this morning. They did say we have constructive talks but they went on to say broad com continued to exist. Required by the ftc, moff com. Other government regulatory bodies broad com declined to respond to any questions about the future of that business finally they went on to say, which could make remedies more difficult, that they also broad com they say insisted on controlling all material decisions regarding valuable licensing business during the extended period between signing and potential closing, which would be problematic one could imagine that would be the case, for example, if broadcom were not to allow them to continue to resolve the litigation that theyre involved in right now to get their licensees to pay them again ala apples providers. Right. Apples manufacturers or sign up new licensees you could argue that during that period, jim, the licensing business would be put in a difficult position if the deal were not to get to the finish line an 8 billion reverse fee would not be enough to the cash flowsa business i would point out one thing here a lot of this seems to be this e theater for i. S. S. , for iss. Iss likes to tell you we like to see that you engage. You can make the argument now that qualcomm did try, we did enga engage the last line, we would sell the company at the righ right thats kabuki, too, right . It could be kabuki. At the same time qualcomm at 88 bucks a share, close to hell or high water theyre unwilling to do either one of those things and they made it really clear if they were, qualcomm would be in a difficult position to say no qualcomm believes is not enoughed henough has offered. Qualcomm will tell you, we asked them on the broadcom side was as waste of time wow so this is really important we have not gotten a statement from broadcom as yet i will tell you different opinions on both sides of in terms of what happened in that meeting. If you are broadcom, does it make you likely to get you people on the board . I think you are going on the votes. We kind of knew that going into the meeting. It seems that likely coming out of it goes to the vote the only question is getting delays and getting the chinese approval for nxp does qualcomm choose to delay their votes so they can have an nxp resolved some way. I dont know the answer. I need your history when darden got rid of the board. Do they not have some sway over these large institutions hey, you got to give us a chance or is it just the institutions that are renters like everybody else theyre not going to take the co palo alto call tom darden, hes been around. By going the full board to six, broadcom, if they were to get six. All it takes is one director saying wait a minute, i dont think the 82 works we are talking about this so much because it is the largest take over in the history it is so front and Center Everyone has to know this thing is going on right now. This is monumental a final point for broadcom, if we are going to pad on 50 billion, we are not going to destroy value. It is amazing i didnt get any of it. Lets get to carl now at the Winter Olympics in south korea, pyeongchang. What a day, a bit of a rough day of the u. S. As two of our hopefu hopefuls missed the solum. Lindsey jacobelis. She was asked earlier today about making it to four olympics but being forwarded each time by some tough brakes. I consider myself having a strong day making it to finals and olympics is nothing to look down upon. I was pretty happy that i have done that since i have not done that since 2006. It is little strives and i am in the mix with these girls and these girls are looking up to me and now i am still apart of this and growing with the sport is really cool. David and jim, lets wave the flag a little bit for our colleague at nbc wednesdays night broadcast topped other broadcast by 70 . Thats the most dominate night, thats the night when harding and kerrigan competed against each other digital streaming is huge. Nbc sports streamed 822 minutes live thats already doubled the content that we saw at sochi later well take you to the sea, the strip of land that separated the peninsula. Stepping briefly into north korea. There is some north korean troops right there a fascinating look of the Political Tension even despite kims charm offenses and some of the tones that comes as a result of these games a big morning. Carl, lets go back to to that i saw your tweet of the ratings. Why do you think it is is it just because i know a lot of millennials because of my kids they stopped and watched, theyre not tv watchers, whats happening here, is it the sports or the millennials i never heard millennials tell me, hey, did you watch that . There is something happening here part of it is sort of the migration of technology, viewing habits of younger people jim, i am reminded of what pepsi told us the day we are in minneapolis the weekend of the super bowl where they were describing the Marketing Strategy going into that game. And the words of their cmos, we think america just want to smile right now. The winter games are allowing for ra bit of an escape for all kinds of larger questions thats been sort of troubling and tire some to deal with overtime thats interesting again because there is no controversy and not that i you are right, carl, even football with concussions, it became divisive. There is nothing divisive about this thats true, it is hard to find for anyone whos not rooting for team usa you continue to do great stuff. Those norwegians are unbeliev unbelievable they keep on winning theyre making like mmga . Ma making norway great again carl, thank you, well be checking in with carl so many times for this mornings show. We have a lot more coming includi including cocacola movers and Robert Herjavec on Cyber Security and bitcoin take a look at the futures, we got a lot more squawk on the street. At holiday inn express, we cant guarantee that youll be able to contain yourself at our breakfast bar. Morning, egg white omelet. Sup lady bacon fruit, there it is but we can guarantee that youll get the best price when you book with us. Holiday inn express. Be the readiest. Shares of cocacola are up the ceo says hes encouraged of coke going into 2018 are you encouraged yes, i am i spoke to james today, i felt that they have a lot of things going for them smaller packaging is working and not pure diet coke but a derivative coke zero is working. A big turn in brazil helped a great deal the nimble nature, if you have a distributor, they normally use that eight different approvals to be able to make different changes. Theyre using a lot of digitalizations. My hat is off to them. Theyre also doing tea they have a drinked call called topochico. It is a mexican drink. You pair that with pepsico thats going red hot the analysts are going to like this because theyre going to like the organic number because of the 6 is hard to come by is it more like air bust and boeing, both doing well. Yeah, well, in diet they are doing poorly both of them are down. I would say the war ended so everyone is making money so we have organic growth. How are we doing in organic growth in nobody got hurt buying the stock of cocacola a Warren Buffetts stock that overtime had a High Pressure with a good dividend, i still preferpepsico because they hav better growth. Some people are going to say cocacola is better than it used to be. Sometimes it is okay. Yeah. All right, can we say craft for the mad dash. Can you do kraft as a mad dash. Up next, well have jims mad dash. Well talk about kraft we got earnings from cbs and take a look at the futures here. Nus t at an awful lows here ten mitetohe opening bell. A lot more straight ahead for you on squawk on the street. We took legendary, and made it liberating. We took safe, and made it daring. We took intelligent, and made it utterly irresistible. We took the most advanced eclass ever, and made the most exciting eclass ever. The 2018 eclass coupe and sedan. Lease the e300 sedan for 569 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. We want to talk about kraft. We just said it, it is going to be down this morning we spent a lot of time this morning and you did a super m k market run tell us what you heard from the company. You got cold cuts that are bad and nuts that are bad. You got a generational problem, david. They do not have the socalled outside ring where a lot of the millennials buy. They dont have frozen food that millennials buy. They have whats regarded not organic, product line. I dont think they know what to do even at the beginning of their release, they basically are throwing their hands up. Well, there is no question that their Financial Performance of 17 did not reflect thei their they tried to get people focused on their strategies and image q4 is impacted by the below items. When they go on talking about an expected First Quarter decline followed by better growth the year by folds. I dont think they can streamline whatever they want. In the end, the dogs wont eat it you can say new and improved, they dont have the product line they put together two companies that do not have the product lines that young people want they have zero base budgeting. Now the question is okay, what do you got when you go down this i like to go to the super market when you go down the isles, the are in the deadly isles. They are not where you need to be the oscar meyers which represents the good value with the lunchables the kids wont eat it. Anyone below 30 says that is Pantry Company and no one wants pantry food anymore. We got a lot of other things to keep an eye here on squawk on the street and the opening bell is just a few minutes ay. A bk tethis at the Marine Mammal center, the environment is everything. We want to do our very best for each and every animal, and we want to operate a sustainable facility. And pg e has been a partner helping us to achieve that. Weve helped the Marine Mammal center go solar, install electric vehicle charging stations, and become more energy efficient. Pg e has allowed us to be the most Sustainable Organization we can be. Any time you help a customer, its a really good feeling. Its especially so when its a customer thats doing such good and important work for the environment. Together, were building a better california. Weve been preparing for this day. Over the years, paul and i have met regularly with our ameriprise advisor. We plan for everything from retirement to college savings. Giving us the ability to add on for an important member of our family. Welcome home mom. With the right financial advisor, life can be brilliant. But through goodt times and bad at t. Rowe price weve helped our investors stay confident for over 80 years. Call us or your advisor. T. Rowe price. Invest with confidence. You are watching cnbc, squawk on the street. The opening bell is only a minute from now. Jim, do you want the market to be up or down i wanted to be down because we went straight down and if we go straight backup, that seems to be a lot of people as phony as it is strateight down. The quarter was difficult to understand because they saw nautica and campbell soup, they had this big dispute with walmart. People are reassessing that. There are companies thats setting the tone for the decline, i think it is okay to have a pull back it is gotten too hot again here we are with the opening bell of this friday. You can see it is the winner of the dog show, flynn hes son way to go. He gets a highfive and over the nasdaq, celebrating the Lunar New Year qualcomm would hope they would get the approval to that transacti transaction. It is not a oneday affair it is very important that qualcomm get it. I see reymond james issued a hole on apple today talking about no super cycle thats negative at 155 and theyre reiterating that negative you cannot just be cell phone anymore because it is not enough the growth is just peaky for now. You got to have more than that david, you got to be in the multi tr multi trillion dollar market nxp eye hhas it we have just begun to discuss what it is going to mean when we have automated cars. A couple of quarters about how truckers cause the problem well, you know what, there will not be shortage of truckers when we have autonomous truckers. And we wont. It impacts so many Different Industries and Different Things and will people move out of the urban center because it would be easier to get back and forth and parking will disappear for real estate, people think a lot about this there wont be any need for parking potentially. We are talking years out i dont know if we are talking years out. Right until we have fleets of vehicles on the streets of new york or major urban centers. I have to tell you, david, the unforseen handicap is baby boomers. It is an empowerment story you have people now who are focused on the impact because it is not many years away there are so Many Industries or other things whether it is housing or real estate or shopping mall. Insurance rates and lawyers and hospitals because your accident rates go down we saw some numbers thats disturbing in terms of fatalities and thats texting. Jensen wong in his Conference Call talked directly about how many semiconductors you need to have a car figure out whether someone is going to run the red light against you which is the primary thing that the Autonomous Cars have been if we cannot is that car is going to run the red light against me you make the ultimate decision of pedestrians verses you. Do you hit the pedestrians or not. That causes thats a tremendous thing for computers to understand. Thank you for that one. Remember computers, it is not sky net but it happens to be a great thing. The number of people would be having a 747 drop in the sky everyday when you think about the number of people getting hurt by current drivers, drunk driving and tired driving. It would never allow humans to drive car if we knew about autonomous driving great story without a doubt in the Investment Business are talking about it and thinking of the implications what do they say . The a lot of t a lot of the things we are talking about. Lets get back to the market itself we are down. Not much in the s p 500. We need that. The financials they have been on fire and they keep creeping up and creeping up, theyre taking a little bit of a vacation today and, i think thats important. David, oils are all over the map. The oils have been an anchor forward. Short squeeze of sales force in workday, these are companies that help you on board to the data center. Nvidia, right here and right now at this moment, nvidia is only a dollar from its all time high. No kidding. You take out that is the one to watch i got some pictures. Arista, is one of my ultimate favorite people are looking for a 35 guide from her she gave you high 20s. She gave you rational expectations she used to be in cisco back and forth and chuck robins ongoing, chuck is a guy who is loved in Silicon Valley he never disses anybody. This was a recess by a risk itself cbs, i follow quite closely, the numbers were good. Yes, i like them. Generally positive and guidance of high cbs growth well above a lot of their peer groups at this point. Let me ask you, david, why are they not is it good of 5 million substance on cbs thats a good number again, you split between access and show time thats a big number. It is one of the Premium Networks that i like maybe a higher number that people anticipated okay, you got that. Of course, it continues to be what about the viacom deal, as i reported a couple of days ago, they have met and they discussed things and there is Due Diligence going on right now and exchanging various financials. I would argue of the cbs side of the math itself. I think that could be 60th if they were not fulling around with viacom stuff. I really want to encourage this i think the ceo is less willing to put up a fight than the last time through when they did not get to an actual offer and there was a lot of back and forth about shareholders rights or his Voting Rights or things of that nature. I dont want to prejudge well see. Help me on something the retransmission numbers were plus 31 which is rather remarkable whats the read through for disney if those numbers were so high, right . Not bad, right . Not bad the new blaplatforms that we mentioned, over the top platforms that are apart of all. Those numbers are fairly large, in fact, sometimes you will hear from the content providers theyre getting bigger numbers netflix international, is it buzzed come on, it is amnexs growth we dont want tuna with good taste we want good tasting tuna thats a 100 billion market value. Is that incredible . I remember when netflix was 25 and cbs is 50 it is incredible. I know that jeff fugas great america. He was always saying hbo should be worth more. N netflixs programming is amazing. We had hock tan and Martin Franklin that was this week . Yes as cost synergy and lower tax rates and offsets. Negative pricing, commodity cost inflation and they have more shares outstanding david, when i went over the different divisions under performing writing home fragrance, food storage, what is writing related of retail inventory restocking . You know what it says to me . No, what . Those are prejargons. Thats part of what i think the story that Martin Franklin is saying jarden is doing better than newall brands. A lot of factories were off flying because of the storms david, transportations once again, trucks. So far not the best for star board. The activist investors thats in there aligned there with Martin Franklin it is not a great quarter now theyre reaffirming which is different. My understanding is he may have been convincing the activists. It is going to get ugly especially when i saw who did well and bad it is going to be run through you. That just means it may get ugly i am going to tell you that you will have the insights on that right some of the things that i have been wanting to happen today for the bulls. The semis are leading and nvidia is taking its highs. I did not understand for a minute why any one did not like that because Gary Dickerson with the First Quarter and my kron micron is going up you got to stick with retailers at home. Costco just straight up now since they reported a great monthly number we are getting some good and bad. I think thats good, thats what we want. We want the market not to trade in uni son thats just the vix stuff. I like what i see. That kind of sums up some down things we are up on the s p 500. The nasdaq is up 5 for the year lets get to bertha the Lunar New Year is issuing a lot of those we see them come back. Take a look at the 10yr back below 2. 9 thats helping sectors and real estate. Take a look, you start taking a look at nasdaq in particular made a really nice recovery and now less than 4 away from those all time highs housing stocks have been hit hard as Interest Rates have risen, down about 4. 5 the last couple of weeks and have started to bounce back when january Housing Starts much stronger than expected. The third increase is new home constructions, we are seeing some of those stocks are real dogs d. R. Horton of 8 and home depot, they may challenge homes. Retail general out performed and now well get a little bit of a tail window, those tax returns are starting to come in, people are getting rebate, in addition to that, tax cuts are starting to cut in now into peoples paychecks this month it is a story of tech as jim is talking about, apple is up but it is positive for the month and the year again and amazon and netflix have really taken up about 10 here, month today. Jim, i got to tell you, nvidia, if they are going to program those chips to really drive well, they got to take it to boston when they can figure out how to go and merge into a rotary of what people call traffic circles, thats when i know they have really done it. The year of the dog, how about the year of nvidia i just took out my all time high this dog is prolific that cramer dog is incredible is that dogamazing yes, adorable hes a rescue mutt. When i told jansen, he gets a little kick out of that. All right, lets head to the bonn report now with Rick Santelli good morning david, i always talk about the higher the time frame the more prioritize the close should be. We are going to take a weekly perspective being friday look at one week of twos, theyre actually up. Theyre acting very much like bund that are not acting much like 10yr lately. Theyre for sure most likely getting their lowest yields close of the week. We are well below the tight closing yields in the low to mid70s that we have had all week in the bunds. Lets switch gear a little bit some huge move this week along with the big flattening move, we had the dollar gives a lot back against the variety of currencies remember when thats when stocks were going down. If you look at everything in unisom, the dollar loss is bid maybe you can make a case against 3 test any time soon, although certainly looking into the cards. You realize we closed around 90. 5 last week and we are at 89 as we sit now. Look at one week of the dollar yen and dollar is a big down and swits of the following two charts, the dollar is secondary. It is euro verses the dollar one currency we did better again is the currency we have not been doing better is the chinese currency jim and david, back to you. Bitcoin is rebounding it is up 20 well discuss that cryptocurrency and well talk to Robert Herjavec. More squawk on the street back in a menomt. Hi, im mindy kearns. Its great to finally meet you. Nice to meet you too. Your parents have been talking about you for years. Sorry about that. Theyre all about me saving for a house, or starting a college fund for my son. Actually, i want to know what youre thinking. Have a seat. Yeah. Knowing that the most important goals are yours. With 15,000 financial advisors, its a big deal. And its how edward jones makes sense of investing. Mom anits not theirs. Car. Its mine. Mine. Mine. And it always will be, forever and forever. The new rx 350l with three rows for seven passengers. Experience amazing at your lexus dealer. Why. Check cnbc where ever you go. The dow, s p, and nasdaq hitting record highs shake shack out with results, investors not particularly digging it. Earnings beat expectations, but a weaker result. It is down 8 for danny meyers my friend could tell me this could happen they were up and theyre talking about flat same store sales which include a 1. 5 to 2 menu increase they are still valued way too high against others putting up fantastic numbers like wendys, burger king. Theyre not. I wonder if the price is too high i dont know but something is wrong and theyre going to have to address it. You cant have at this stage o a growth story flat same store sales. You to reassess what exactly is going on and get it right. Right now theyre not getting it right. I happen to love to go there i do but not quite as much as i did initially. 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That lady, these houses yes, yes and yes. And dont forget about them. Uh huh, sure. Still yes xfinity delivers gig speed to more homes than anyone. Now you can get it, too. Welcome to the party. All right, lets get to it we talked about it so many times. Sometimes we say that is just disappointi disappointing. This morning campbells soup said this is a disappointing quarter. Theyre having an altercation with walmart that is producing minus 7 and i love these fabulous great robust Super Premium juices and theyre not doing well that was an accusation they made theyre doing a Lance Schneider deal, did they take on a lot of debt for that . They did. Snacks did well, pepperidge farm, for them and i say got to because they spent a lot of money and their natural stuff is not working right now. Theyre behind the eight ball and they have to solve the problem with walmart coming up, a high flier why yp wldtoor the cnbc investigation and who is behind the company were talking about. 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You want to go through some internals, the university of michigan has a oneyear inflation gauge, and that is unchanged from the last look a five to ten year inflation gauge. We are down on the week, pretty substantially with regard to the long end the short end having a powerful week probably has march meeting implications, and the dollar index had a tough week good morning, mr. Santelli. Welcome back to squawk on the street. We have jim cramer, mike santelli, were all here, carl is at the Winter Olympics in pyeongcha pyeongchang. You can see we have dipped back into negative territory after a brief gain at the open our road map starts with the markets. Stocks going for six as gains did pick up a bit after the open, but you just saw the nasdaq downright now they have had quite a come back over the course of the week. From eight to 40 dollars in just two months, pulling back the curtain on riot, block chain, and camp bell and coke beating the street, a deep dive into those straight ahead. First as you just saw the s p in the red, but were trying to extend what would be a fiveday winning streak already and on track for what would be the best weekly gain since 2013. You and i have had an hour to talk about these markets we would kind of like to see a pull back, but youre not excited about the straight down and straight up. I think you want to see a market that is taking its breath and saying okay, lets reassess i think the individuals at home, they dont like straight up any more than straight down. What are we doing . This is not an asset class is that what were worried about . If it behaves the way we see it playout a logical place for the rally to settle out a little bit, right its more selective on the way out. The breath you might be the equivalent of it i guess it is also telling you what was the exacerbating factors, maybe it was pushing this down, and we got deeper the average investor might say if it went straight down and straight up was it worth it at all . We have jim stewart here, james it is obvious to me, you tell me oregon these are those kinds of things where the market is not able to function well what was that all about. The word then was oh, higher wage growth means higher inflation. But guess what this week we had higher inflation and we had higher Interest Rates and were having a huge rally it suggests to anyway it was not about higher inflation its exactly what you said, jim. It got too high, there was selling, the programs kicked in and overdid it it was like a mechanical reaction real wages were not that robust, and i think a lot of what passes as imflags could be more temporary than people realize. When you look at a way to handle your portfolio in this period, peoplement to buy, hold, and forget if you slept through it, youre okay and you didnt get worked up about it on the other hand, volatility is an opportunity if all you do is what i do which is rebalance the portfolio you came out ahead with this by mid january it was out of line, overweight equities and then when it plunged, i looked and i rebalanced back. When i finish this show im going to go back and look today. With these kinds of gains i bet i balanced out again and could do some selling. People think you only have to rebalance once a year, but that is not rebalancing you can get way out of whack from your target allocation. Sometimes you have to rebalance every week that keeps you busy okay, you dont have to rebalance every week, but look look at that little pie chart on your computer for your account, and see is it close to your target range also you only rebalance when it is 5 or 10 out of whack. How about 3 in these markets now, this market is still expensive. It is historically at very high levels i dont want to get 5 out of line i want to stay right on my target there is a subplot, jim people that look at that portfolio that way, that is the first time where both legs are potentially going to move together, all right . Bonds and stocks, thats what happened to the downside to some degree so i dont know if that plays into this at all i dont know if people are panicking in advance they move in tandem, but they dont move at the same rate. They dont go down 20 they could but theyre unlikely that would be a very bad week yes the taper tantrum thing you didnt see massive moves then historically you get a good counter balance with the bond portfolio. If youre putting it in a simple all bond thing youre getting a total mix of maturities. Youre not in 30 year treasury thats are more volatile youre column this week asked a very core question can stocks go up when Interest Rates go up. They suggested at first that no, they could not they say in the early stages of tightening sequence, they go up you dont need to worry about it too soon but now were two years into tightening, but they have gone up a lot in two years. Were getting into the range where you have to be weary historically it took 5 to 6 in treasuries the fed is not very good at engineering a soft landing i had the data in my column. In the last seven tightening periods, five ended in recessions it is really hard to fine tune that at some point when exactly nobody knows, at some point rising Interest Rates are not going to hurt the market they hit a Tipping Point and then they really startto creat problems let me ask you, james, one of the things that was a second leg was warren buffet buying more apple and then apple traded like a Small Cap Stock which worries me how did it happen that the stocks that came back the most are the stocks that typically facebook came back some, but sales forces came back theyre not supposed to come back at a higher inflation, and how did he move apple . Why are the tech stocks doing so well when they have the highest multiples out there. Its not loj kal, it makes me nervous. A lot of smart people are pairing back on that they want Growth Growth growth thats where you can find growth the question, i dont get the story myself, but buffet is very high in cash i think he is in maybe roughly 20 cash if is pretty high thats a lot of cash. He is in a veteran cautious mode its so big, how do you grow on that base, and what are their products it makes me a little nervous they have the phone and then what but i will look, it has done incredibly well. I dont want to bet against the thing. It is a great Consumer Product people have the money to spend on it. Im not saying anything against it, but i dont see it as a big growth play. I guess has to be service revenue. Otherwise what happens, thats a great revenue screen is it selling well that is not the way to get a premium multiple, trying to figure out how it sold yesterday. Ly now get pelted with emails every day from apple lovers. The last time i said something bad about apple someone in my elevator said how can you say that about apple i dont quite get that do you like alex isa . I dont use it, but everyone i talk to loves it talk about saying something bad about apple, alexa leaked it my message is rebalance often often. Were message was you hate apple, isnt it . No, im sorry, thats a mixed message. Lets bring in carl from the Winter Olympics in pyeongchang over here were finally getting to some events that are really, really cool with great names. Namely the skeleton only an olympic regular since 2002 you run 25 meters, on the turns you can pull four or five gs on the turns. Only Nine Countries won a medal in skelton including the u. S. , germany, canada, and australia for john daly, a heartbreaking finish, wound up in 16th place, an emotional interview he said it may be time to say goodbye to my career we asked him with all of the wins, and some losses, how he manages emotion and how he manages risk focusing on the process and not the end result one curve at a time. Curve one, curve two, so on. If you think about curve nine and three you might crash in four its controlling everything you can to the best of your ability, and then take it one curve at a time and it will be the result you want one of the great things about this event, guys, are the helmets. I dont know if you have noticed them, but some contestants from canada have a polar bear ghana has a tiger. Some of the u. S. Team has a eagle. They are going down head first, at 80 miles per hour, and we get a really good view of some of those artistic helmets a lot more to come this morning as we will take a look not just at the olympics, but to the dmz later on today, the trip of land that divides the korean peninsula. That is the use of robots. Roaming around olympic park. Roaming around the athlete villages, not just kiosks at mcdonalds these are moving and talking robots it might be a sign of the future that is coming up later. Sounds cool, carl have you been able to go to any of the events, usually when youre covering an asian olympics youre forced to stay up all night because you to report dayside for the u. S. , the l logistics get tough. Yeah, time difference is a killer, were 14 hours ahead is it midnight here . Yeah, well be here until 2 00 or 3 00. The events have been minimal, but thats the number one question we get. What did you see and the answer is very, very little saturday is tomorrow, and monday a holiday, so well go to some events and maybe tape some stuff as well. Thank you, carl, i like the advice from john daly, too when we come back, 8 to 40 in two months, riot blockchain. A Microcap Company that soared on the idea it was getting into crypto but they are getting a mysterious start that stock is down as you see almost 18 this morning. Plus the future of regulation, former scc regulation harvey pitt will join us. Squawk on the street will continue after this. See thats funny, i thought you traded options. 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 welcome back, one of the highest fliers in the crypto world. The fcc raised concerns about companies that pivot to blockchain without a credible business plan. It turns out there is one investor in particular that got in and out at the right time we went looking for barry hoaning because he once evened half a million shares before it was riot after winning his fight to change the board of directors, he got 700,000 new warrants that he could convert to stock at 3. 56 a share and promissory notes he could convert at 2. 50 a share. After they changed their name, the stock soared to a high of 46. 20 since he was not at his office, we went to his home. Thats when he finally called us back and said he would think about talking to us, but only if we left. Finally he agreed to go on camera the following week while he was in new york only to back out two hours later. But he did agree to talk us to by phone two days ago. Im a successful investor i have a beautiful family, College Educated im very comfortable that the truth will come out. He filed a new form with the fcc just this week showing he sold a massive amount of stock just before the end of november, which meant he was selling two months immediately after the Company Changed its name to riot blockchain. This was after they released press release after press release. He said he made 100 on his investment and he still has exposure in the stock. And just this hour, he said he would do a live interview on power lunch this afternoon but backed out ten minutes later when he found out they would be conducting the interview we will air it in its entirety today on power lunch. So whats the key allegation here in terms of mr. Honig it has a pattern of things i would cover 15 or 20 years ago in terms of things that are not necessarily ethical. Right, so pushing the stock higher, through acquisitions or press releases, and then selling as the stock is moving higher, and then waiting perhaps a lengthy amount of time to let the investing public know that you, a major investor, left the stock. And would that be a violation . So, we have spoken with attorneys who tell us that when he waited two months before he told the fcc that he dramatically reduced his decision, they would say he had to have done it within 24 to 48 hours. I asked why he waited and why he didnt file a list of his sales for the last 60 days and he said you answered your own question to imply that he waited two months and therefore there would not b a list necessary do we know about his past at all . Any sense in terms of his work history and things of that nature he was fined for stock manipulation in 2000, and he has decided not to continue with his brokers license and you can see more about his history on the story on the web thats great reporting. Thats the kind of reporting that no one is doing, really fabulous i remember us sitting here telling people steer clear when this sequence of events happens, people are pushing the stock perhaps and you said they changed a name right yeah, right at the citizenship toe cryptocurren cryptocurrency whats your advice for people and Companies Interested in investing in Companies Like bitcoin. First, figure out what company does figure out why you want to make an investment. Find out if the it is a real company or a name. If you satisfy yourself on those elements, then invest. The problem that we have is that most people investing in these companies are doing it because they want to partake in the crazy, and they dont know why theyre making investments how long is someone supposed to wait to file a 13 d one of the forms that the s. E. C. Requires when you get in or out. What is timely timely is particularly if you have a critical position with the company, or you already been disclosed as an owner, youre supposed to file updates promptly and certainly not longer than ten days at the most so i think there is a serious problem with somebody who is already over the tlhreshold not keeping current on his stock position movements what about the market moves we have seen recently in terms of the extreme volatility and people talking about whether or not the mixed related products have been manipulated in some ways to destroy them or to bring on some of the craziness that we saw in the last couple weeks the problem we have is our markets have been extremely volatile, and as a generalization, we have become a nation of day traders. People that no longer buy on the fundamentals of company, companies and holding for the long term. The volatility we have is troubling. And a product like vix could be valuable to Institutional Investors that want to hedge against the precipitous drop in the market but it is quite clear that these indexes options can be manipulated and when there were complaints about possible manipulation, the cboe as the marketplace should have sprung into action, i think the fact that finra is taking a close look is very important to determine if there has been any manipulation at all. Harvey, jim cramer, always great to see you, thank you for coming on. One of the things that im concerned about, is there a way to make it so institutions can trade maybe off board, some of the pruoducts, but the individuals dont get hurt, they feel like you cant lose money if you short calls on it these are products that should be for the most sophisticated investors. Does the sec ever try to find a way to say wow, be careful here. These are not for just the Retail Investor . The s. E. C. Has Disclosure Requirements that should provide investors and particularly individual investors with the kind of information that says you should stay away from this product unless you are very sophisticated. The problem you have is that disclosures are not always made appropriately, at least targeting investors who perhaps should not be involved in the product, and the brokers who sell these things whether they are soliciting trades or approached by customers have an obligation to say dont do this unless and making sure theyre highly credible. Thank you so much, harvey pitt for more of our information, go to cnbc. Com and tune into power lunch this afternoon i want to do that myself. See all about it up next, robots taking over at the olympics, were going to take you back to pyeongchang and show you some of those robots. In fact, lets bring in carl who is at those Winter Olympics in pyeongchang. Well go to break first and then bring him in 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. On the only bed that adjusts on both sides to your ideal comfort, your sleep number setting. Does your bed do that . Save 50 on the ultimate limited edition bed. Plus 24month financing ends monday visit sleepnumber. Com for a store near you. And the nx hybrid with a class beating 31 mpg combined estimate. Lease the 2018 nx 300 for 339 a month for 36 months. Experience amazing at your lexus dealer. Good morning, everyone, here is your cnbc news update at this hour a huge crowd gathering in florida for the victims of wednesdays High School Shooting 14 others were injured at the gathering, mourners and officials asked for tougher gun laws mitt romney announcing an ad on twitter this morning announcing a run for the u. S. Senate in utah if he wins, he would replace orin hatch who is retiring he attacks immigration hardliners in washington in that video ad and that is a sink hole swallowing several cars in rome luckily no reports of injuries and celebrations and parades under way, around the world to celebratele chinese Lunar New Year theyre ringing in the year of the dog. In honk congre in hong kong more than 30 floats greeted the revelers david, back downtown to you. Thank you, sue. Lets go now to carl who is at the Winter Olympics in pyeongchang south korea. We saw him hanging with some robots, carl in deed, south korea is pretty tech savvy. One thing they have been showing off here is their progress is robotics which means we had to go check it out. He is a Media Service robot, he will follow me around if i want. He will project on the floor things like schedules, videos, and show me where to get to the cafeteria. Where is the prince access leia projection . There are 11 types of robots roaming around the olympic park. You can check out the robot fish at the media center. Who won womens u. S. Are you listening . What did you make of core cbi. Who won in womens hockey more inflation whats amazons reasonable valuation . And not far away, you can find a ski robot slalom competition. After all of that, we were relieved to find at least one robot that barely does anything at all guys, i think were obviously just at the beginning stages of what theyre going to be able to do, but one day, jim, im convinced they will be able to project you into a hologram. I dont know how that happened this stuff is amazing. Show it able to do a hologram. I know that elon musk said i was a hologram, this is proof. I was overall impressed with the gradual but consistent improvement in maybe not so much the voice technology, but i dont know if you noticed on the screen it spelled your name correctly, it spelled my name correctly. The Voice Recognition part is getting somewhere. I have to go here on this alexa. My wife asked alexa who i am last week, and she didnt know they know me in korea, but not here i dont blame them, alexa needs to be brought up to date immediately. I like those robotic fish, they were pretty cool. Yeah, that was kind of weird. I know the skiers that needs work, the ones trying to go downhill skiing yes, i think they do. Reminds me of my skiing form there must be five carls over there. Great stuff, every day we get something new, youre doing great. Jim thank you for sticking around i have to tell you in carls coverage, did you see the north korean soldiers moving it is shocking to me, now we see what real issue is you cant wave at them because they may think youre making fun were really in world thats have nothing to do with their world, quite frightening quite frightening. Geopolitical risks. Thank you, guys, have a great weekend. Thank you for the time coming up next, riding the volatility stocks coming back for the weekend. Eaaqllw, s p, and nasd a ahd. [fbi agent] youre 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] ill take my chances. For more on these markets, were join by liz saunders good to see you both lizanne. I know you were on the lookout back in january for a potential shake up looking somewhat stretched have we relieved those conditions or are we right back to them. To some degree we relieve the conditions because in the correction you have earnings expectations for 2018. You saw the forward multiple drop by about two points which is good news if is still above the long term median sentiment im not as excited about. We see given how swift the rebound has been we see those ramp back up again i would not mind seeing a shakeout in those conditions it might almost be one of those things thats like it wasnt so bad and maybe were back to the melt up mode just to follow up, how does the potential, the constant alert were on now for a little higher inflation and a little higher bond yields factor into that equity evaluation at this point . It does matter, some of the periods in the past where earnings expectations have been going up, you still have trouble in the stock market, areas where inflation is rising. We know it has negative impact on multiples forward earnings, trailing earnings, and you do a break down based on inflation zones, it is a curve. But when you move to the higher inflation zones, you see a ratcheting down. I do see that is a factor. Not to mention in earnings expectations get high, they have a tendency to switch out points. They have been met with middling market returns and that is maybe contrary to the assumption that really strong earnings automatically means a strong stock market we had obviously this little test what did it tell you in terms of what may have worked in this rebound and how it makes sense to position as were still below the highs. I think we have come very quickly, it was a fear of jumping in a week ago back to the fear of missing out mentality among investors. And i look at some of the institutions that were dealing with and theyre sticking with the names that were winners last year, winners in the portfolio year to date i look at the bio tech space and were seeing interest there from generalists and the community. And the biotech names, look at some of the base metals. We see them to continue buying i dont see the market ratcheting up from these levels in any meaningful way, but you stick with names, Technology Names that were winners and continue to beat expectations, and were seeing Earnings Growth top line and bottom line Earnings Growth. One of the consensus pieces of advice that has emerged in the last few weeks is people talking about Interest Rates rising and how far they might go and etc. Get out of bond approximat prox utilitie utilities. We had an under performing rating on not just utilities, but telecom and rooeits there is so much yield chasing what are traditionally valued sectors reallydidnt offer any value and conversely we didnt change any of our out performing recommendations through this period and they continue to be technology, financials, and interestingly our kind of psuedo value play is health care. But none of those were changed purdly because of what happ purely because of what happened in the last few weeks. Maybe the other consensus call coming into this year is small cap and value. What you said earlier, you said you think there is not a wholesale rotation away from what worked already. That was really large cap growth and industrials. Im right there look initially coming in i thought the exact same thing but youre right what were seeing from a fund flow perspective is 100 graf stavii to the growth. And also, ratcheting up in expectations from an earnings standpoint were seeing real money flows going back into those earning games. Lizanne, how much are you paying attention to about what is going on with spending from the u. S. Government and what effect that might have on bond yields and Interest Rates . And how much supply is coming . I think it is a big factor. So cbo estimates put the deficit cost around a trillion and a half in the tenyear window. That means they have to issue more securities and that adds to the supply side of the equation, in addition to that you have the fed shrinking their balance sheet. That demand had been pretty powerful in the last many years and it is now dissipating. So any market now, rising fly and lower demand, you lower prices and higher yield. I think that has been a factor in this move up in yields beyond just rising Inflation Expectations quick, dafd, what is the next catalyst that were looking for here are we waiting for the fed already a few weeks away yeah, i think that is it. We need to understand the path forward for the fed. There was a tremendous amount of destruction. A lot of hedge funds were severely burned. It is very difficult when youre looking to outperform certain indices to make bets and get clarity. All right, well get the jobs and wages. Looking at shares of cocacola, reporting a beat on the top and bottom lines more ahead on squawk on the street stay with us tomorrow, its a day filled with promise and new beginnings, challenges and opportunities. At ameriprise financial, we cant predict what tomorrow will bring. But our comprehensive approach to Financial Planning can help make sure youre prepared for whats expected and even whats not. And that kind of Financial Confidence can help you sleep better at night. With the right financial advisor, life can be brilliant. One top strategist says were in for a new era of volatilit volatility more squawk on the street in a moment is the monolithic view of emerging markets obsolete . At pgim, we see alpa in the trends, driving specific sectors of out performance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Everyday our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Welcome back, Rick Santelli is there thank you for joining me this morning, charles in my book, no one has followed the flows like you and were at a historic mark right now. If you look, cisco announcing 25 billion, wells 22. 6. They have compiled 170. 8 billion up through february 15th in that time frame on a year to date perspective, a record amount of buy backs. Your thoughts and what does it mean it means there are less shares Outstanding Companies have reduced the share count by over 3 trillion since the end of 2011 and Central Banks added 16 trillion to the Balance Sheets to their Balance Sheets meaning they creating 16 trillion with which to buy Financial Assets we have seen globally, the market cap of stocks go from 30 trillion to 80 the economy. Well, you know what, charles . Its an interesting point. You know, whether you like this analogy or not, you wrote me yesterday that something about this reminds you of housing prices prior to the credit crisis please explain well, prior to 2007, everybody knew particularly in california that the price of Single Family homes could never go down. It might not go up for a year or two. But it was always going up and, therefore, you could pay more than the house is worth and do some crazy leverage stuff because higher prices will bail you out. So since 2009, the u. S. Global stock markets are up trillions and trillions of dollars and with Interest Rates at zero, who knows what kind of leverage games have been happening and whether the tide goes out, meaning when Central Banks stop printing and prices go down, theyll be incredible garbage coming up from when the tide recedes, when the level of the ocean youll see, oh, its going to be its going to make 2009 and all those problems seem minor in comparison all right let me interrupt you were almost out of time ahead of the bank of japan, another term, another fiveyear term i believe he certainly didnt seem like he was having second thoughts about continuing, maybe doing more in the last 25 seconds, tell me your thought on that particularly well, Central Banks are going to keep printing until for some when they stop, who knows when, until then stock prices will likely keep going up im 100 bullish, remain 100 bullish. But at some point the reckonning will come and prices, you know, when the Central Banks stop creating money with which to buy Financial Assets, it wont be nice well, ill tell you what, charles, i get two things from that youre still 100 long and no matter what the eventual outcome is, of course, many traders will stay that way until the tide changes and i hope im here on that date. Thank you, charles peterman. David faber, back to you thank you, mr. Santelli d quk t seeansawonhetrt will be right back s the value . Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley major food stocks reporting earnings this morning. Our mike sontoli joining us from the telestrator. Thats right. Kraft, heinz, cocacola, very mixed picture in terms of results and perception its in a weak group if you look at the sector, Consumer Staples sector, the big stocks reside, xlp has been a very poor performer. That is the white line relative to the s p 500 barely up for the year to date they got about that in a dif he didnt right now this group has a dividend yield around 2. 7. Higher than the s p 500 but not high enough seemingly to entice a lot of people. Naturally, theyve been in a difficult spot in terms of their o own per foremanance and investor preferences. If you want to drill into the food and beverage group, there is a smaller etf under the system pbj that is a power shares food and beverage stock etf. It is actually done somewhat worse. Its only up. 5 on a one year basis. The Staples Group includes walmart, costco and personal products and things like that. Ill say investors retreat from this area and has been pretty pronounced the xlp had outflows in the last 12 months of 700 million. That is about 10 , almost 10 of the assets that sit there right now. So clearly its an out of favor group. Unclear, though, if this year its going to be the kind of market that could have a comeback for these guys. So does pbj have some pbj stocks in it well, i think James Smucker is the stock and coffee and smuckers i do believe it is in the pbj. Cool. Maybe kraft heinz too that is down 5 . Thank you, mike. When we come back, bitcoin is rebounding it is up more than 20 this week were going to discuss that and a lot more with Robert Herjavec. This is my headquarters. This is where i trade and manage my portfolio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access 24 7. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. In the 2018 lexus es and es hybrid. Lease the 2018 es 350 for 339 a month for 36 months. Experience amazing at your lexus dealer. But prevagen helps your brain with an ingredient experience amazing originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Good morning it is 1 00 a. M. Here in pyeongchang, south korea its 11 00 a. M. On wall street and squawk alley is live good morning welcome to squawk alley. With me at post nine, Morgan Brennan and mike santoli you saw carl and were