Hasnt gapped down on earnings more than 5 in 17 years so by that narrow lane, its pretty significant selloff absolutely. Its down about 10 right now. So that really speaks to just how much investors dont like this report today. Its interesting though i mean, compared to amazon which can kind of turn off earnings whenever they want just as long as it shows up on the growth side, you got to wonder are they just sort of caught in the middle here where maybe theyre not investing quite enough to drive that online revenue but they still feel like they need to preserve the profit and maybe they need to pick a side caught between the cost of all the investments and its getting more to transport goods around the country so all those combining that is the margin story on walmart today. Absolutely. And labor costs, of course, have been going up. And some of that has been by their own measure, the fact theyre looking to increase wages. But its also, i mean, i think its also kind of interesting given the fact that 14 consecutive quarters of growth in samestore sales, that is the one thing that seems to be getting overlooked here. For more on walmarts latest quarter, lets bring in retail analyst at Deutsche Bank and daniel bin Daniel Binder from jeffries. Thank you for joining us paul, i want to start with you sort of looking at the walmart numbers, the fact the stock is gapping down as dramatically as it is today. Are you surprised to see a move like this . Frankly, given the results today, i think that the stock reaction is directly on point. And the reason for that is that the premium in valuation that walmart atanld ovtained over tht year is due to two factors with sun o one is outperformance based on peer group and the second is the robust growth story around the ecommerce today we saw both slip there are other retailers like target that are outcomping walmart, 2. 6 samestore sales growth is a good solid number. But its no longer an outperformance and 23 ecommerce growth is such a meaningful slowdown versus 50 just a quarter ago. I think that is very difficult for investors to really get a handle on just how walmart is going to very quickly reaccelerate that online growth. Im glad you brought up target i want to dig into that more first, daniel, is this really the jet. Com tail wind wearing off here well, management citing capacity issues around peak periods. They seem to have that under control and theyre guiding to 40 ecommerce growth next year. So if they didnt have it under control, i would have expected them to adjust that expectation. Certainly the conversion of some sams clubs being closed, well deal with the capacity issues. But at the end of the day, walmart had a little stumble here you know, maybe lost the battle. I still think theyre winning the war. They added 65 million skews online since june of 16 when we upgraded the stock the prices are competitive, more competitive than amazon, frankly. I think youre going to see a rebound. I think the stock reaction is a little overdone today. Paul, whos story should you really believe here . I mean if you believe the walmart turn around story as daniel mentioned, theyre projecting 40 ecommerce growth going out. Theyre switching to just annual guidance which suggests to me that maybe theyre going to do some more investment in a way that they can plan out over longer periods of time if you believed in walmart last week, shouldnt you buy here look, i think that theres undoubtedly a lot of success in terms of execution that weve seen from the walmart team over the past few years and i think that the majority of the issues today are very transitory regarding the guidance and regarding the margin factors you brought up like transportation and wages. Those are transitory issues and that is frankly not our concern. We adamantly believe that investors focus today is on ecommerce growth. Walmart cited that the jet. Com asset of the business is slowing a little bit theyre pulling back on some of the marketing dollars related to jet. And in addition, there is also the fact that we just cycled on january 31st the rollout of their free two day shipping that they did a year ago. Again, we dont want to suggest that walmart wont be able to make a meaningful come back and showcase robust online growth again. But there is some questions that they need to really answer i dont think they did good enough a job in terms of detailing that this morning. You think the selloff is largely about ecommerce even though we know a percentage of total sales are ecommerce . Absolutely. Its to your point. Less than 3 of this companys overall business. That is really zeroing in one area of the channel. Correct and we would go back and see that walmarts valuation over time has been largely reflective of a good retail brickandmortar business. Clearly there was an inflection that occurred over the last 12 months which became amazon 2. 0 or at least the next best thing. And ultimately, e commerce grow growth is the metric were going to gauge walmart on if theyre going to keep up with the 800 pound gorilla. Daniel, you cover home depot in addition to walmart which is the other retailer that reported today and is actually up 1 . Carl mentioned transportation costs. Certainly youve seen trucking rates spiking. Weve seen inflation costs starting to excuse me, labor costs start to go up is inflation a risk for the Companies Moving forward especially when you have things like price wars for to tra attract consumers . What do you think . I dont think its a big secret to Retail Investors that transportation costs have been rising double digits in some cases. Wage pressures are mounting. But people are making more money. Theyre going to spend more money. I think a little inflation is generally good for retail. Too much is not so good. So like a lot of things in life, a little moderation. But, you know, i think the at the end of the day, if it leads to higher Interest Rates and a fed thats more aggressive, that leads to multiple compression for retailers as they tend to be early cycle stocks so, you know, you have sort of tug of war here, competing forces multiple compression versus growing earnings i think what you saw different in the home depot release today is that their ecommerce growth was robust they talked about pulling some investments and the guidance is below the street but two very different reactions. So i think pauls definitely, you know accurate in terms of what is hitting the stock and ecommerce is something that walmart is going to have to show us next quarter and the quarter after that they did rebound from this slowdown. I think they will. Guys, well leave it there. Thank you for joining us paul and daniel. Thanks for having us. And still ahead, grocery and m a making news. Well speak with irwin simon and disney Smashing Box Office records with february with the latest marvel release black panther. The movie also, perhaps, breaking down barriers in hollywood. Well explain. And qualcomm upping its bid for nxp. David faber spoke with the lead soireor he gng to join us next when squawk alley comes right back. Fund ments. Qual co qualcomms lead director Thomas Horton joined david faber this morning and hes back with more on that story david . Thanks, jon a big day for qualcomm really. This has been in the works for some time as a possibility remember, it was 16 months ago of that qualcomm announced its 110 a share all cash deal to acquire nxp. They still dont have the Regulatory Approvals all in place. Still waiting for klichina to s on but in the intervening months and year and whatever its been, well, nxps business improved, the multiple for the group has gone up. And many of its shareholders have said as we reported for many months now were not going to tender at 110. Tender is the key. They need 8 of t0 of the shar be tenders to make a deal. Finally qualcomm made the move and succeeded in doing, so signing up nine of the key funds that hold the bulk of the shares or at least 28 of the shares including elliott which, by the way, had previously said it saw nxps value at least in excess of 135 a share. The price, 127. 50 the tender threshold goes down from 80 to 70 . It will close on march 5th if they do get that chinese approval in time and that will be one day before shareholders vote on what to do about the board of directors overall. But it is a big moment for qualcomm you can see, of course, it does seem to be enhancing their ability to stay independent and raising the prospect that broadcom will not be successful in its continued efforts to buy qualcomm for 82 a share in cash and stock. Earlier as jon said, i sat down with tom horton, the lead director of qualcomm we talked about the nxp deal an why this board is firmly opposed to that 82 a share bid. If you look at our 2019 earnings projections which are now more certain than they were with the completion of the nxp deal, around 7 a share. 82 represented 11 to 12 times multiple on that the semiconductor average multiple is around 8 precedent deals is around 22 so its just not even close to what the value of the company is and thats the boards view. For their part, broadcom puts out a statement this morning saying it continues to simply review its options with regard to the continued bid for qualcomm again, that meeting is scheduled for the 6th of march proxy Advisory Firm iss late on friday said it would recommend four of the directors that broadcom is nominating for that board. Well see. But there is moving along and this is a very important moment for qualcomm as it now really has secured nxp. Yeah. Sure is. Well see if its effective poison pill. Thank you, david for more on broadcom, qualcomm and a tech sector that is coming off the best week since 2011, lets bring in chief Investment Officer paul meeks and senior portfolio manage dan morgan good morning to both of you. Good morning. Paul, im interested in your take on qualcomm here which we were just talking about. It seems to me qualcomm investor who has been watching the company for a long time knows that this is a company that is about the long game, whether it comes to the licensing business, perhaps whether it comes to the acquisitions and the question has become is the game theyre playing too long are they even going to make it to the end of the game what do you think about where the company is now and whether it is worth more than its trading for right now no matter what the outcome i think it is worth more than where its trading right now even if they get close to closing an arbitrage spread and well probably get some visibility into that at the Shareholders Meeting on march 6th for the proposed board of directors from broadcom. But on the other hand, the company has come to the dance over time with the rise of the smart phone. And at least in the developed world, there is a maturation of that product and so its going to grow slowly so the important thing for them to take it to the next level, to get that higher multiple as theyre demanding is that they become more of an iot or internet of Things Company i think theyre done that. Not necessarily in one fell swoop. But they have shown nice progress if they close the nxp deal. Dan, looking at the big growers, you know, youre of the opinion that were really not in a situation where those are overvalued as long as the economy keeps growing. What gives you that conviction and could anything in terms of the numbers that were seeing from these companies or just demand for their Services Change your mind . Well, jon, if you look at the fanni faang stocks, net flicks and also amazon, if you take them away and you just look at the other players, microsoft, facebook, and so forth and apple, they all pretty much trade in line in terms of mult i multiples. Their growth is 25 times earnings and the current multiples are about 24, 25 times earnings so its really just those two, amazon and netflix that carry the huge multiples we have to remember that you have a the lolot of other compai technology doing well, micron, sea gate, companies that stock prices have done extremely well over the course of last six months to were all focused on faang and looking at the names. But we have to remember that there are a the love other things going none tech right now, Applied Materials did great numbers last week. So there is a lot of good things happening just beyond what is going on with netflix and amazon and those huge multiples , so dan, are you investing in the names that you just mentioned . I mean where should invest job be putting their money right now . I think investors who are watching the show today should keep a steady eye on those stocks and we have all those pretty much on our buy list obviously youre trying to find opportunities based on weakness. They pulled back a little bit when we had that pullback in terms of in the overall markets. Theyre very volatile. You can find entry points. I think facebook may be interesting right now just because theyre under a tlot of pressure with donald trump and this russia investigation and so forth and all the things going on with that so you can pick your spaces based on which fall out of favor and so forth based on where theyre trade right now. But weve got all those names pretty much on our buy list. Paul, i wonder how you factor in trends like Artificial Intelligence into how you project out the growth possibilities for some of the companies. Its kind of flavor of the year, perhaps. But to me its unclear exactly how much revenue and how much profit thats going to drive for names like facebook, amazon, google that are talking so much about them what is your expectation and how do you calculate that . Its very difficult to calculate. But i would say the expectation is, yeah, its going to be a driver but the way i look at that driver, its many years into the future and so in the near term, im looking for companies that are really leading the charge in Cloud Computing and hopefully, you know, theyre going to benefit over time from ai. I think its way too early to try to calculate and imbed that in valuations of stocks. Right now i like the Semiconductor Industry within the tech sector. And i think just as the previous speaker said, they probably came down too much recently in that correction that we had overall in tech and so things like micron, i agree, analog devices, lamb research, Applied Materials, those are my favorites. And, dan, when you look at Growth Catalysts for the tech business, you are also focused on cloud and the buildout . And are we at the point google just made the argument at earnings that its Cloud Business is a billion dollar business are we at ate point where theyre really getting separated and you can say here are the mega scale players that really going to benefit and here are maybe the laggers i think so, jon you mentioned the trends, Artificial Intelligence, social networking and the cloud of course, you have to break it up you look at what you mentioned which is gcp, google Cloud Platform has a ratrail right no. Probably a billion dollars you compare that to aws with amazon at a little over 5 billion. So you got some big numbers now trending forward obviously microsoft with office 365, azure and dynamics. I have to put those guys in that place in terms of infrastructure as a service and then, of course, we have the play out with sales force in software as a service. Those are the names in that group. But i think if you look at the big mega trends in tech like paul was talking about with Artificial Intelligence and semiconductors, i think the biggest next mega trend obviously is this Movement Towards cloud and then, of course, deciphering who the leaders in the different buckets. Okay. Well still some time to make hay, it sounds like. Paul, dan, thanks. Thank you jeff bezos tweeted this video of a massive 10,000year clock that is being built inside a west texas mountain. The clock is 500 feet tall powered by the earths thermal cycles the project has been in the works for three decades. Hes been helping with the project for about six years. Bezos doesnt tweet that often so its interesting when he chooses to draw attention to something. I think its also note worthy that this clock is being built very near the space port he is looking to develop or is developing for his space startup blue origin as well in west texas i guess the question is, will it be even able to see that clock from mars . You know, to see what time it is where well all be . Right, once elon gets us there, i suppose wow well see. I think its a 42 Million Investment pocket change exactly still to come, the food and consumer space making headlines today with walmarts big loss and grocery deal joining us in just a few, the ceo of a supplier to Companies Like whole foods and walmart, irwin simon. More squawk alley coming up. [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. Developments carl, european stocks higher in today sessis session as the continues the decline. Sentiment fell from a record high this month and the german Producer Price index came in stronger than expected following those inflationary fears that we have been discussing black rock says it is neutral on european he can quits citing the euros strength as a source of pain german dax up. 75 earnings news dragging down the ftse 100. Earnings had more than doubled the previous years levels the bank says it plans to raise up to 7 billion of the next four months to boost capital levels this as steward gulliver ends the sevenyear tenure as ceo shares down more than 3 bhp billiton down. Missing on earnings despite reporting a 25 jump in profit and we finish with intercontinental hotels, down despite better than expected 2017 results this is a home of crown plaza and holiday inn saying no Additional Capital will be paid to investors this year citing the need to focus on growth plans and cost cutting this reflects the competitive land xap we landscape were seeing around the travel industry. When we return, were live at the olympics this week he sat down with elizabeth swany who is creating a lot of buzz. As we go to break, the dow off the lows we were down 230 now down 95. Squawk alley straight ahead. Welcome back heres your cnbc news update at this hour. Syrian media reporting turkish troops were shelling the entrance to the northern enclave after scores of pro government fighters entered the area. Turkey trying to oust the syrian militia considered a terrorist organization guest ceo has relinquished the day to day responsibilities completing the investigation of sexual harment claims by kate upton. He has denied her allegations. Company stock down around 4 after tumbling 15 on friday a seventh grader shot himself today the aa middle school in ohio Officials Say he walked into the boys bathroom and shot himself. He was then transported to a local hospital his condition not known. No one else was hurt the first treatment to help prevent serious allergic reaction to peanuts may be on the way. California based company says the daily capsules of peanut flour sensitize children to nuts in major study thats our cnbc news update at this hour. Lets get back to squawk alley. Morgan that would be quite a game changer for peanut allergies home depot topping earnings estimate this is morning as traffic increased and latest quarter. Courtney reagan got a chance to speak with the cfo another blockbuster quarter for home depoten into a rising Interest Rate environment. I spoke with the cfo carol tome and she says they see rates increase, they estimate about 40 in additional mortgage expense each month Mortgage Rates need to be around 7 before home depot starts to worry about the impact on the business regarding the washing machine tariffs coming, tome says domestic suppliers are taking up prices too the weak building and Garden Supply sales number in the governments january retail sales report, well, tome says she doesnt look at the commerce departments retail sales. Its just noise to home depot. Now shares are up about 1. 6 after home depot soared past expectations for profit revenue. The Home Improvement retailers sales continue to grow at rates rarely seen in retail today. Total comp sales grew 7. 5 , u. S. Alone, up 7. 2 comparable sales growth did slow in january from november and december however, because it was winter and things slow down there the number of transactions and receipt both of those grew compared to last year. Both do it yourselfers and pro sales improved the pro though the stronger s segment. Purchases were up 10 . 86 of the do it yourselfers plan to shop again and that number is up from last year too. Onlane sales up 20 in the Fourth Quarter they do make up under 7 of total sales though but 46 , almost half of all those u. S. Online orders are picked up in stores. Just goes to show you, again, another player that is really using online and stores together quite successfully carl, back to you. Courtney, quick question for you. What did she have to say about rising transportation costs . Again, a lot of that on earnings calls and what not lately. She only mentioned it ever so briefly and said, look, transportation costs are going higher but its just another cost that we have to manage through her tone was not really worried about it sort of acknowledging but it is true and something, of course, that they have to watch. But theyll manage through it and they have a big business costs rise in one place, theyre able in some cases to even it out before having to pass anything on to the consumer. A lot of good information there, thanks, courtney. Watching the depots call lets get back to andrew in pyeongchang, south korea there is a lot to watch as it is night time there, morning here hey, andrew. There is. And, you know, what everyone is waiting for is to see you and i ice skate. I want to talk about the head scratcher of the morning right here in pyeongchang. Some people say she loop hohole her way into the olympics, Elizabeth Swaney is here on the global stage skiing for hungary. She laz heritage through grand parents. Now youre watching her. Shes not doing anything in this video. How did she get here she qualified for the olympics by skiing exactly like this, cleanly. Shes clean. But she doesnt fall but with basically no skill. Lets just say less skill than the other olympians. She racked up enough technical points to qualify for the games but now there is this big debate, has she figured out a new Winning Strategy to get your way into the olympics. In the qualifying round for the freestyle skiing halfpipe finalist, she came in dead last. Thats what you thought. So a lot of people talking about her here shes making a lot of buzz a lot of people wondering whether can make that loophole work for them or if that loophole will get closed on the hockey rink across town, carl and i catching up with team usa who is making her olympic debut here in pyeongchang. She was kind enough to give us a lesson even though frankly we showed up in hockey skates take a look. So we dont exactly have the right skates , no you dont we have the wrong, very wrong skates thats okay these are easier to learn in the blades are so much thinner. Yeah. A lot. Can you tell . Yeah. Those are like a knife. Are these custom made for you . Yes, the boots are custom made. How much do those cost . A lot of money. Thats as specific as can you get . Theyre about 2,000 for the boots and the blades are 700 to 900. How thick are your socks . I dont wear socks in my skates. No socks . Socks do your toes get cold yes, very cold. Lets put these on. What age did you start . 7 7 the 2002 olympics in salt lake, they built the rink by my house. My sister was doing figure skating at that point. And so i go to her lessons and i would watch. I would end you watching the speed skaters instead of the figure skaters instantly fell in love with the sport. I fell in love with racing and skating fast. What age did it really seem feasible that you would be an olympian when i was 14, i made my first junior world team, making an olympic team is always my dream. Must be nice to have your dreams come true yeah. Its so nice its unbelievable at times you ready to hit the ice . Im ready im always ready. Lets do this here we go. Youre going to bend this knee and kind of put about 60 of your weight on your front and 40 on the back. When the gun goes off, your first move is not even really a step its kind of just a push to the side and then you want to feel your glutes activating lower. Ready . Go that was good. Whoa coming up on you. Jerica is awesome we need to thank her for the lesson also, i dont know you about, carl, im still feeling a little bit in my quads. There is almost like a squat situation where you have to getting so i couldnt get as low as you guys could. I was surprised just how deep the bend is, yeah, how deep the hip hinge. But ill tell you, andrew, learning how to speed skate while wearing hockey skates is like skiing in jeans its the equivalent of skiing in jeans. And we were ice skating in jeans. There you have it. Im just impressed by the core strength. You just you squatted down nice and balanced on the ice i think id be flopping all over the plags. Youre kind andrew, did you ever catch carl i did not i could no he was good. You know, we were just trying to not fall and hurt ourselves. And we were worried, you know, that wraelzy treally the whole g we didnt know if there was insurance for us they didnt want us on the ice to begin with. As a viewer said, never have yourself videotaped while ice skating or eating chicken wings. That is good advice for us, andrew next week, carl chicken wings . Theyll be making us do other stuff this week that probably shouldnt let people film anyway but well be showing that you too. Good stuff, andrew. Covering the Winter Olympics for us in south korea. Meanwhile, whole foods making a more expensive for suppliers to get their products on their shelves. The grosser is asking suppliers to pay higher rate for shelf space. Also got an earnings miss this morning from walmart as you know that stock down nearly 10 joining us from boca raton, major supplier both walmart and whole foods, irwin simon is the ceo of hanes celestial good to you have back. Good morning good morning. How are you . Nice to see you. Good to see you so much talk about ecommerce this morning through the walmart lens talk about how important it s you said any company, any retailer that is not moving to online are click and pick is going to fail. Whats your read on the overall space right now from where you are . So, carl, you know, 25 years ago in starting hanes celestial and positioning it to be the leading Natural Organic food company and knowing consumers were going to go to Healthy Eating and Healthy Living and as youve done the interviews with other ceos today, the big focus is how we change ingredients, how we have healthier products out there. It is interesting to hear about frozen foods, et cetera. Its the same today in regards to ecommerce. You know, by 2021, 2022, ecommerce will be 100 billion of sales where food is sold. Last night as i visited a whole foods here in boca raton, there was the amazon lockers if you go to universities today, there is amazon lockers where you put in a zip code or you put in a code and you pick up your groceries. So it will be a big part of hains growth and our business today. Carl sorry, irwin, whats so hard about delivering some of these foods . There are cereals that i tried to get from amazon and tried to get from jet and they wont conveniently and consistently deliver them to me in the same packaging. I ended up getting this big tub fool of cereal in a plastic bag the last time i tried to order it it seems like its relatively the sort of product that would be easier to deliver but sometimes foods are hard to handle online. Why is that . So number one, again, lets come back and look at the Food Industry today and lets look at, you know, three channel thats are going to ultimately be brickandmortar, click and pick where you go on and go buy a kiosk and pick up your food and last but not least ecommerce. The good thing about ecommerce is the mixing centers where you can get the right products and again when you go to your locker at a whole foods, its going to be important you have the right product. So i think, yes, were early stages but i got to tell you, every manufacturer and every retailer out there is working towards making sure you get the right product you order. There is nothingworse than getting a different product or there is nothing worse than if youre ordering eggs and not getting it and i think is a ton of perfection what hain has done is invested in the mixing centers to make sure that youre getting your right product when you order it. Irwin, were talking about ecommerce shifting to brickandmortar and looking at amazon and whole foods, i know youre a top supplier to whole foods, seeing prices get slashed there dramatically are you feeling the price pressure so, melissa, i think the big thing is we have over 1500 products authorized at whole foods today. Listen, the good news is we really have seen sales increase dramatically at whole foods. And ultimately, sales drives a the lo lot of leverage on margins and delivery on cost being that big supplier, its important that were able to put out there, you know, well price products but working with whole foods to make sure that costs got to come from somewhere i think its got to be, you know, a plan that we have to work with the retailer, have to work with the distributor and, of course, have to work with the manufacturer so, yeah, ive seen costs come down and, you know, we will participate with them. But the volume has increased dramatically at whole foods. And i was counting through your list of brands. I counted 57 do you have my plans to divest any of the brands . So youre pretty close. We have 60 brands. Missed three wheres waldo. Can you go back and look at that 30 brands make up 90 of our sales. 11 brands in the u. S. Make up 80 of our sales we just recently announced that were looking at divesting the protein. It is a hot category. But as we looked and be laser focused on our brands, our distribution, we thought with the valuations and the opportunity and return money to shareholders, it made sense for us to look at divesting our protein business in light of that, is hain on a sale block so, listen, i think you step back today every company today are talking about how they clean up their portfolio. How they clean up their ingredients. 99 of hain products today are gmo free, 40 pefrz t of our pr are organic. 72 of our products have 12 ingredients or less. Were focused on a social mission. We think about Natural Organic in addition to how hain becomes a bcorp and how we focus on where our products come from is important to investors i think there has to be a lot of consolidation going on in this industry you have every company talking about higher costs, higher freight costs. So with that i think consolidation is something that well continuously happen. If hain is a part of it, well look to see. Any food trends, irwin, that you see emerging in 2018 different from previous years that youre capitalizing on . So the big food trends today and its interesting recently just came out, you know, what are the big food trends out there . The biggest things that, you know, were looking at today and i have a 22yearold daughter, if i asked letter to open a can of soup, she would say how do i open it . Number two, am i going eat soup out of a can you know, i think the big thing today is fresh, fresh, and fresh. Number two is were focused on sugar, focused on calories consumers today are more focused on what are the ingredients within product its not so much, listen, weve been through it with soy and with it withal monld but, again, were looking to reduce our milk intake so were looking at plantbased products were looking at vegetable snacks were looking at not fried, not baked. Were looking at nothing processed. I would have to say the biggist opportunities is focus on organic and clean ingredients, how do we get sugar and salt out of our products . And the opportunity for us is tremendous listen, soda sales are down 5 fried snacks are down. So there is going to be a lot of space in the supermarkets for us to be able to put in our Healthy Products its a goinod point and something we see reflected from other companies as well. Irwin, appreciate the time always good to see you see you on set next time thank you very much see you soon i love that skating by the way thank you irwin simon of hain celestial. More squawk alley is coming up first, what are you watching to day, Rick Santelli im watching the clock. When we get to 1 00 eastern, well have 28,000,000,002 year notes auctioned. Will it be important i think so tune in after the break and well talk about it. Appointmentes. Coming up top of the hour on the halftime report, two firms and two opposing views on where stocks go from here. Black rock versus Morgan Stanley live only with the traders settling the debate. Plus, what to do with walmart today as the shares sink is the selloff overdone or a big warning on retail . And our call of the day that might have you thinking twice are snap shares. Well see you at noon eastern. Carl see you in bate, scott. Lets get to the cme group and get the santelli change can Rick Santelli hey, rick. Hey, carl good morning you know, we have objections th auction this is week we have 28 bill. The size of the auctions was not as big as it was today the problem is that were adding boat loads of extra t bills in 2018 tomorrow, of course, well have 35 billion fives thats a billion more than last time and 29 billion sevens. Finalizing 92 billion in supply. That will be on thursday so that 92 billion obviously is four billion more than than the 88 billion package we were used to for most of 2016 and 2017 heres something fascinating lets look at the net change in Interest Rates across the curve today with regard to the maturities that we are auctioning off and specifically lets concentrate on the two year note yield. It settled at 188 at the end of last year. So its up 34 basis points which is going to make this very interesting because normally you might look at a 30 year bond or a ten year note and the ten year note by the way is the is the biggest net change increase in rates for the year, no surprise there. Its up basically 50 basis points to 234. But if you recall the week before last when we had threes, tens and thirties, and the volatility was at the peak during that week the auction nears didnt earn the interest by investors. Normally, if im moving out of stocks, the volatility would cause me to do so. I would personally think theres a chance that 10s and 30s could go better. Nice juicy rates that you get for a long time. But maybe the real issue is that sometimes less duration may be more filling to investors. How about this its simple. Time is money is the old adage, but sometimes if you are a treasury trader or fixed income trad trader, time is also risk. Do you take a twoyear note or threeyear note as in todays auction and in short maturities, anyway, and think, im tying my money up for less than i would have received a year or two ago, heck, two or three months ago . And that will be interesting to see at this point. I personally think the tbills would have jumped up because a, were issuing more but the fact theyre going to at all puts a big positive on investors to tie up their money in a shorter period of time, make observations, maybe liquefy some of their profits and equities but in the end, i dont think its going to look good today. I think the auctions of the short maturities will be spongy, too. Well talk about that tomorrow morning. Morgan, back to you. Thank you, rick appreciate it. Well be watching. Still ahead, black panther shattering records and breaking down barriers in hollywood more on that next. Stay with us 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 disneys Marvel Studios making history at the box office this weekend Julia Boorstin is here with more reporter thats right. Marvels black panther is shattering records about diversity in casting disney just reported that black panther had the Biggest Box Office for the long weekend to 242 million that is the second biggest ever behind only star wars the force awakens. And the film brought in 35 million and imax theaters over the weekend, which is a record overseas, the film has defied expectations that movies with black leads can draw Significant International audiences. So far its brought in nearly 185 million number one in almost every territory where it has opened so far and not yet open in russia, japan or china black panther also received the highest critic film for a superhero film ever. And the audiences gave it a rare aplus cinema score in exhibit polls, the latest to draw rave reviews. And the audience rating is a good indicator of positive word of mouth the black panthers culture phenomenal bodes well for disneys film to come out in may. And we expect disney to make a sequel to black panther this also gives hope that the box office will bounce back after the 3 drop in the Domestic Box Office in 2017 from 2016 and also for films in the pipeline, now you can expect Hollywood Studios to focus on the importance of diverse any the characters back over to you all right, yeah, big weekend at the movies. Thank you, Julia Boorstin. It is big, carl. Theres only, like, two white guys in the movie. And ultimately, the director, the after reasricanamerican di, yrsld the s p 500 has gone green were back in a minute and in the nation, we need to work together. We need to do it more often to help people that need help. Ill stand by you. Mvo anybody can make a difference. Its easy to give back. Its just a little bit of time. Ill stand by you. 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. Watching the markets, obviously, they are recovering some of their losses we were down 200plus on the dow, but managed to escape with a 70point loss. A busy week for earnings again mostly in the retail space yes, indeed and this morning, a few highflying tech stocks getting a bid, invidia up four near session highs, but looking at the dow, it is pairing those losses, but walmart still the biggest drag worst day since october 2015, down 9 . With all that, the back to the headquarters with the judge and the half. And welcome to the halftime report. Im scott wagner the great stock debate after the correction and now the comeback, where will your money work best in the months ahead . Two market watchers offering two different views on that question their notes are the talk of wall street, both will join us live in just a minute to discuss and debate with us to do the same for the hour, joe, steph, kevin , i want to get right to the debate wit