Been 52. All that said, its still about the best the dow has done all year. Still a pretty lackluster start to the year. It seems, carl, as though we wake up well, see relative stability in china despite that off shore yuan rate. Then theres not that much to go on. Theres not that much buying sentiment in the market to propel it further. Were waiting on more data throughout the month, but so far lackluster trade. Overall, though, tech is not looking so bad. I always like to look at where a couple of key stocks are. Apple is up a full 1 . Intel up better than that. Semis not doing too poorly. Netflix up 1. 5 . This is not one of those markets where everything sort of is stagnant. As were going to talk more about later, some of the ipos, not doing so well. Etsy down 5 . Nearly 6 . We are going to talk with mike santoli about what the ipo market has been showing us. Etsy the poster child to some degree. Apple and siena all up. Apple, of course, is a big b of a call as they go to buy on apple with the target. A lot of these stocks that have been discounted somewhat in the case of apple to reflect a slower iphone cycle, maybe some believe have caught up. How about the dividend yield . Near 2. 1 on apple right now. Everybody talks about when apple is so high, im going to buy the dip. Heres your dip. Who is going to buy it . Well see. Jason, angel investor, joining us to talk about the b of a apple upgrade. Good morning. Its been a rough start for the year for the nasdaq. If we close down today, thats nine under. We havent done that since 1984. Whats your overall view on how the year shaped up . Yeah, well, we were looking at, you know, the Tech Industry and the overall market in the summer, q3, everybody was panicked about the bubble. What weve had is a controlled deflation of the bubble in really three different areas. Obviously the stock market is taking a nice hit, and price earning ratios will come down a bit. Thats probably healthy. Everybody getting a little more realistic and having some ability to make a profit in the future. In the area where im most active, angel investing, valuations have been cut in half. In some cases twothirds. In an area that impacts me significantly as an angel investor, the late Stage Private Company valuations, we all know the story there. The last round you raised, you know, in 2015 was probably going to be a High Water Mark for your company for the next couple of years. Control of deflation, and it feels pretty good, actually, to reset expectations a little bit. How much longer does this go on . This controlled deflation you speak of. I think what were going to need to see is the private companies are going to have to prove that their businesses are sustainable and profitable, and that is the great hashing out thats occurring right now very quietly, very privately. Everybody is taking their, you know, Balance Sheets and figuring out do we have enough money to get to profitability, and what will this Company Look Like when it goes to the Public Market . You know, its actually a very reassuring thing for people who are in the Tech Industry to see, hey, listen, were not crashing here, but this controlled deflation is resetting, you know, this last little frothy part, and the bubble talk is over. Theres not a bubble now. Its being cleaned up. Now we can all just focus on building these, you know, worldchanging businesses. Thats really the big story here. We mentioned the apple call. B of a upgrading apple to buy. The firm says iphone concerns are now priced in. Its bullish on several opportunities, including a new watch, the iphone 7. Thats helping put apple shares almost back to 100 today. Meantime, elan musk says, of course, apple is building a car. He says its pretty hard to hide something if you hire over 1,000 engineers to do it. Everyone is watching to see, jason, if apple can develop a really significant fat new revenue stream. Do you think the car is it . Yeah. I dont know if theyre going to be able to get a car to market. I think they might be testing the waters right now, seeing how far they can take it, and, you know, the more likely scenario might be that theyre building an operating system for cars at a deep integration and just seeing if they can build the enabling software. To build an actual car, yeah, its in their wheelhouse. They know how to do manufacturing. That would be a fiveyear story before the car is available for purchase, so sure, why not try, but i think that, you know, apples best chance of putting out a great car is to convince elan to sell them tesla. Its going to take five years. Theyre clearly going after this market and transportation is going to become, you know, a changed industry in that the majority of miles in the next five to ten years, somewhere in that window the majority of miles driven will be done autonomously. That might be closer to ten than five, but its definitely going to be here in a decade, and then how you pay for a car, how you buy a car, thats the topic that most people arent talking about, but thats going to be the big win. Does tesla sell you the car . Does tesla sell you a share in a car . Does tesla sell you 10,000 miles . Do you rent it on a per hour basis . I dont know that people want to be making these huge purchases anymore of cars if theyre all autonomous and you can sort of just summon one to take you where you want to go. Weve seen some of these partnerships crop up, jason, as we work toward that. The Washington Post today points out that apple and google are partnering with more than 40 companies in sort of an exploratory way, but theres a detroit auto exec thats quoted, and he said theres one word to describe how Silicon Valley views us, and that is as prey. How uneasy are these alliances and who is actually benefitting from them . Yeah, the more people in the alliance, the greater the chance its going to fail. Especially in a complex technology industry. You want to have the whole car, the mapping system, you want to have all of this under one group of engineers, and a tight one of brilliant engineers to make it actually work. I think that all the Automotive Industry, you know, the best they can hope for is, you know, that they may be able to die a slow death. I dont think its going to be a very good experience for them to be totally honest. I think theyre going to get their bells rung. This i will say about the car thing. There are two conflicting cultural things with apple when it comes to the possibility they will put out a car. One is they dont like to partner and put the fate of a product in somebody elses hands. They tried that with the phone with motorola with the rocker first. It was a disaster. I think thats part of the reason why they want to build out the capability. But, on the other hand, they hate putting out products that are heavily regulated. Thats why they dont want the apple watch to be a medical device. Cars are heavily regulated. Theres a big opportunity there, and theres arguably no opportunity like the smartphone left. As they get into cars, oh, my goodness, theres lots of red tape that theyre potentially going to be bogged down with. We got to see which one of those tendencies at apple wins out with a product like that. I think those are all very astute points. I dont think youre going to be able to bolt selfdriving on to a bunch of old fords or a bunk of old chevys. I dont think its going to work. You are going to have to build these cars from the bottom up. Youll have to retool the entire factory or rebuild the entire factory, and i think the big secret here is that elan has figured out selfdriving. I mean, he is talking about it an awful lot on twitter, and he is not somebody to be underestimated. When he figures something out, it comes out rather quickly. Remember, were just five years away from the Automotive Industry making fun of elan being a major competitor, and now theyre staring at the ceiling at 2 00 in the morning, you know, screaming his name. I mean, its the nightmare for the Car Companies that they have him as a competitor. You mentioned twitter, jason. Twitters periscope gets a big upgrade today. Julia is live in l. A. With some details on that. Hey, julia. Hey, carl. After buying periscope last march twitter is integrating the live feeds into its news feeds announcing that periscope has had over 100 million broadcasts since its launch. Starting today followers of anyone who broadcasts via periscope will start seeing videos auto playing in their timeline instead of just links to the app. Now theyll be able to expand the video and see hearts and comments without leaving twitter and advertisers can pay to promote tweets with periscope, but twitter users will not be able to broadcast or comment within twitter. Theyll still have to download the separate app. Now, with twitter user growth struggling and its stock down 49 over the past year, this move does tap into the growing popularity of mobile video, and it should boost periscope viewers. The buy rating on the stock says this morning that this is a step in the right direction that could potentially drive User Engagement followed by user growth. This move does come a month after facebook started rolling out its live feature, introduced for celebrities back in august to all of facebook verified users and brands. Facebook users can broadcast and interact within the app and facebook automatically archives the videos. Twitter wants to be the destination for live events. Well see if this can help twitter add more users. Carl. That is the name of the game, julia. Thank you very much. Of course, jack dorsey has to hope that might turn around the stock price. Shares are down today or were earlier this morning. Down about 25 since jack returned as ceo. Jason, time has a piece up this morning saying that the fact that theyre going back to their portfolio, their acquisition portfolio argues the marginal value for them is really outside the platform. Do you agree . No, i dont necessarily agree with that. I think what we can take from the first couple of months of jacks tenure is he is going to release a lot of product. He is going to talk about it. Its going to be the opposite of the yahoo situation which was, you know, they didnt release any new features or products. The discussions were all about divesting investments. Jack is dealing with the stock being at an alltime low, and expectations are horrible for the company. Lets be frank. He is releasing new product, and he is basically getting them on a release schedule with a lot of innovative stuff. Whats interesting about the piece that we just watched is that facebook is catching up to twitter in the case of the live video. It is possible for them to innovate. He is talking about expanding how long a tweet is. That seems trivial, but it does mean that they could use twitter as a blogging platform. Listen, its hard to be bullish on twitter right now given everything thats occurred, but i do think its great when you see a company releasing new products on such a consistent basis so early on in the tenure of a ceo. I think its going to i think twitter has some good pducts that are going to come out in the coming year. Its going to be a good 2016. It works. I mean, if you have ios and you open up your twitter app, it works. The periscopes play. It works pretty well. I dont think this is big for twitter itself. Its more like a really good advertisement for periscope. People who maybe havent tried it, havent downloaded the app, havent signed on. When they start seeing the periscopes playing in their twitter feed, they might say, oh, hey, i want to interact with this celebrity. I think thats where it comes down for this particular product. Can twitter is it bad for vine . No because vines are incredibly crafted. You have to do a lot of the work to get a good vine out. To get a good one out. Live video is a different kind of genre, if you will. Well see how the power users really use this and if they can link a big audience into it. Yeah. Its going to be live video is going to be a new format. If you look at snap chat, which im really bullish on, theres a guy named d. J. Kalan that is getting three million views every time he releases a short video. By comparison the kardashian show gets, like, 1. 5 million or 2 Million Viewers every sunday. Im not sure what they get in reruns, but its probably ad a little added to it. This is a new format that will come out. When they allow the individuals to start monotizing it, and theyre well into tests of splitting revenue over at twitter, this is when the new medium forms and we talked about it last summer that youtubeification of twitter. Will there be stars that emerge on twitter that share the revenue with the platform and are drawn to the platform as a place they release their primary art, the place they first publish video . Thats starting to happen. People popping up the periscopes all over the place. Jason, good to see you again. Jason who has a twitter about when we might see an apple car. jason, to go vote. Rupert murdock announcing his engagement. Plus, the list of Tech Companies falling below their ipo prices. Twitter, gopro, fitbit. Why theyre falling and what it means for the ipo market . As ubers revenue grows, so do the lawsuits. A look at the companys books from last year. The dow rally is almost completely gone. We were up 192. Were now up 16. Were back in a minute. We live in a pick and choose world. Choose, choose, choose. But at bedtime . Why settle for this . Enter sleep number, and the lowest prices of the season. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow only at a sleep number store. Find the lowest prices of the season, going on now. Save 600 on the 1 rated i8 bed. Know better sleep with sleep number. Rupert murdock and geri hall announcing their engagement late yesterday in, where else, but one of murdocks own papers. Robert frank is back at headquarters with a look at the financials of this new wrun. Robert. Well, its the fourth marriage for rupert murdoch. And the fourth for hall. He is 84. She is 59. It comes two years after his bitter divorce from his third wife. That ended with a settlement that awarded her far more than her prenup alwed. You can be sure that murdoch and his attorneys are working on a strong prenup this time around. It is likely to have gts impact on the news corp. Since the trust agreements that give Murdoch Family control over those companies are unaffected. Murdoch turned the reigns over to his sons. Murdoch has six kids. Ms. Hall has four. Her relationship with mick jagger, they were never married, ended in 1999, and she recently played the role of mrs. Robinson in the graduate on stage in london and sydney. Murdoch worth 10 billion. Halls worth a little more unclear. Clearly, she is wealthy in her own right. As for where the couple will live, well, he is selling two properties in manhattan right now. A 72 million penthouse, and a townhouse in the villas for 29 million. He recently bought a 60acre vineyard and estate in bel air, california, for 28 million. A vineyard, that would be a nice place for the two of them to hang out after they get married. Guys, back to you. Yes, indeed. Thank you, robert frank. Up next, another great cnbc exclusive interview coming your way. The ceo of glascos smithkline. Welcome back. Lets get out to the Jp Morgan Health care conference in San Francisco for oun own meg terrell joining us with an exclusive interview with the ceo of Glasgow Smith kline. Take it away. Thank you. Joining us now is sir andrew. Good morning, meg. Theres a lot of focus on the pressure on the drug industry in terms of pricing, issues like that, and Bernie Sanders actually just put out a statement this morning opposing the fda nominee for commissioner of the fda where sanders said the pharmaceutical industry ceos are more focused on making obscene profits than saving lives. This is the kind of stuff thats being said about the drug industry right now. How do you respond . I dont think that kind of rhetoric is true and not supported by the fact of what we do in this industry. Hundreds of thousands of people work for Companies Like gsk doing some amazing science. If we look at some of the progress were making, progress we make in h. I. V. , for example, the way were impacting cancer, the way weve impacted hepatitis c. Contacts at gilead have made extraordinary progress. The number one driver of our employees is to find better treatments for patients here in the u. S. And worldwide. Now, understandably, people are concerned about how to get access and afford some of those treatments, and what we need to do as an industry is work harder to work with other stake holders, including potentially members of government, to make sure that pricing is sustainable. That we get a decent return for the risk thats taken on those drug discoveries. That scientists get rewarded for all the risks and hard work they did. We also get the balance right to make sure that every day people can afford these medicines. We need to do a better job of making sure that conversation is going forward, its progressive, and we get to a situation where we can continue to be optimistic for great treatments and potentially cures for other diseases we worry about today, like cancer, like alzheimers, like dementia. These are the diseases we have to make progress on now. Are you changing your approach to drug pricing from what you have done in the past . Are you changing the way you do your business . I think weve been clear. Weve been outspoken about the need for changes in drug pricing. Ive made no secret of the fact that i think at gsk we can be successful at innovating and being reasonable pricing. Im proud of the last six drugs that we launched here in america. They were all launched at the same or lower prices than the previous generations of medicines that we were abling to supersede. Thats a really practical point of evidence to show that you can make this happen. By the way, those medicines accounted for 14 of our pharma revenues in q3 last year. Were successful with those products. Were delivering them at prices which i think send a message that were not trying to simply maximize profits. We need to get the balance right. Our business over the last 18 months or so, our u. S. Net prices have been falling. Weve been having a reduction in our prices over the last 18 months as weve given higher discounts to various payers here in the united states. I think we need to make sure this conversation is calm. Its really important that its done right, that we get the balance right. People get access to good medicines. Its crucial that we continue to have a stimulus and incentive for people to continue to take the high risk that give us the medicines we rely on today and are hoping for tomorrow. I want to ask you about the future of gsk. One thing people talk about with you guys is some pressure to split the company. You know, pfizer is a well rewarded stock. Everything is under pressure, but its a stock that investors like because they are talking about a splitup. How do you look at that . What weve been doing since i have been ceo is really trying to build up a business that has real potential for longterm sustainable growth. We had to work our way through really the old generation of products, most of which were going generic, and weve responded that by building up now a really scaled Consumer Health care business and partnership with novartis, one of the biggest in the world. The biggest Vaccine Company in the world. A strong pharmaceutical pipeline. Those three businesses are all going to grow. We know were going to come back to growth this year. We expect to see earnings per share reach double digit growth at cr basis in 2016. Were optimistic about what that business can do. What that also means is it creates for the first time proper optionality and in terms of what might be our longterm corporate structure. Now, what we have to do in 2016 and 2017 is get all of that business really humming, get through all the various integrations that we started last year, deliver the performance that weve promised. Thats what were absolutely committed to do. Then well see whats right for the shareholders going forward. I think for the very first time we do have that scale of optionality, and, of course, were not closedminlded to what could make the best probable. A lot more to talk about. Sir andrew witty, thank you for joining us. Thank you. We have activist investor alex denner, newly named the chairman of ariad. Back to you. Thanks, meg terrell in San Francisco. Up next, stocks mixed today, but some major Tech Companies continue to trade well below their ipo prices. Twitter, gopro, etsy, fitbit, just a few of the big names struggling. Well take a look at those and their impact on the overall ipo market when squawk alley comes back. At td ameritrade, they work hard. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. Good morning. Im sue herrera. Here is your cnbc news update this hour. Turkish Emergency Services rushing people to the hospital after an explosion rocked the historic tourist district in istanbul, killing ten and injuring 15 others. Mostly german citizens. Turkeys Prime Minister is blaming isis for the suicide bombing. The Supreme Court striking down floridas death sentencing procedure ruling the state cannot give a judge the power to impose the Death Penalty after a jurys advisory verdict. The decision by an 81 vote brought florida in line with the national standard. Judge samuel aledo descenting. Airbuss 100 more plane orders than rival boeing, but the american plane maker delivered more planes to customers. Airbus said it took in better than expected 1,036 orders and delivered 635 jets, but boeing said it took in 768 orders and it delivered 762 aircraft. And the Powerball Jackpot now at 1. 5 billion and growing. The lump sum cash payment . 930 million before taxes. The drawing will be held tomorrow night, and while you daydream, just remember, your odds of winning are one in 292 million. Good luck. Thats the cnbc news update this hour. Back to squawk alley. Carl, do you have your ticket yet . Apparently theres no rush because it just keeps growing, sue. Got to get a ticket, carl. Thats an amazing number. You have to be in it to win it. Sue herrera. Taking a look at the dow. We were up 192 points earlier this morning. Every component was in the green. We had upgrades of intel, upgrades of apple, upgrades of coke. Its gone. Were down about nine points. Were watching crude just a few pennies above in the 30s. Thats going to be a key for the afternoon. Meantime, europe is closing, and simon is here with the close. Carl, its a similar direction in europe. We had a strong opening and took the dax up 2. 2 . Towards the close, germany now is up. Wait for it to change. 1. 7. Spain just dipped into negative territory. Its interesting, though, the retailers are doing particularly well. Morrisons, the big supermarket chain, came out with light sales. You can see the way the shorts have been knocked out of those. Tesco. You can still see that the big german discounters are winning, but from the beaten down base theyre higher, and metro, which is the big cash and carry operator in germany, they, too, came through reporting a very good christmas. We still need detail on that. Sap, the Enterprise Software giant competing with oracle, today preannounced with profit and revenue slightly ahead of expectations, as many people thought it would do. The interesting thing is this very strong surge back from the beginning of september, up 32 . You can look at the figures and say, well, maybe theyre sacrificing margin in the race against oracle. Nonetheless, that is a stook that has one, and its close to an alltime high. In the meantime, the automotive makers have also done well in a flattish market in europe. Flat to positive. Pershia, which you may not know because it doesnt sell here. It sells in europe and asia. It had strong china sales out, which people are running with. Sales up 8. 9 in the fourth quarter. Volkswagen continues to make gains as well. Obviously Everybody Knows the history there. The latest on the organizational changes is that the public affairs, the Government Department will be a discreet a separate department that will report directly to the ceo as he tries, of course, to appease the regulators very, very importantly in this country. An update for europe. Guys, back to you. All right, simon hobbs. Thanks. The nasdaq is currently in positive territory. If only by a fraction of 1 . Thats despite the fact that recent tech ipos have been struggling to trade above their initial price. Fitbit, gopro, etsy, twitter, all trading below their ipo prices, and in some cases losing the majority of their value. Here with more on the struggle is mike santoli, senior markets commentator. These Companies Cut across so many sectors. Enterprise, retail, tech, social media. Whats the Common Thread for why theyre trading like this . This hasnt been a market that has wanted to reward the underdog and the upstart. If you look at the kinds of stocks that perform through last year, fang and the other kind of big dominant platform stocks, theyre the ones that are the incumbents that are going to swallow up the upstarts. If you look at all those companies that you mentioned, whether its fitbit, etsy, gopro, twitter, almost from day one, the story on wall street became who is going to eat them . Who is going to edge them out . Can they basically stay as a standalone competitor to apple, amazon, and the rest . I think thats one of the dynamics. Small Cap Growth Companies in general, by the way, have had a struggle. Theyre down 20 as a group. Russell 2,000 growth since june. The problem is we dont get very many large cap ipos. We got facebook. We got linkedin in recent years. There could be more in the pipeline for this year. The stocks that were talking about we should throw in pandora too, they all spike on the open. They see huge gains, but are you saying that what goes up must come down . Well, they all have a good story, and i do think they get an initial shot to actually prove that they have it figured out. They dont get a second and third shot, though. If they dont execute out of the box and dont kind of banish those fears that hover over them, i think they dont get a great shot. Also, theres an overlay of skepticism that, you know, the really Great Companies are staying private for longer. Were not actually getting the crop of the most promising names, and that also has been a struggle for ipo investors. S p has some statistics going back to the signing of the jobs act. 56 or some odd percent of ipos below their offered price. Is there a sense that that legislation provided a path for companies to go public that should not have gone public at all . That werent necessarily ready or didnt have really attractive other options. I do think theres a chance that thats the case. Also, of course, less disclosure, which that law permitted isnt necessarily great for winning over investors all the time. Might we look back at this period as a nice buying opportunity for the stocks . Essentially youre getting them below the ipo price if you like to if you like the idea before, you should like it even more now. You look at king. You look at zuliliy. Those were ipos that ended up getting bought out. Even if they dont survive on their own, there can still be up side if you get them at the right price. I totally think thats true. Facebook traded down almost 50 from its ipo price in late 2012. Its not as if you render one verdict and its done. Also, if we get another crop of deals, theyre probably not going to surge to those huge premiums to where all of a sudden expectations are built at a high level. There were a lot of people that got facebook at 18 that i think are probably very happy right about now. Even more people who claim to have gotten facebook there. When you have a company thats gone public, it has very specific pain points when the lockups expire. Facebook fell prey to this too. For the first year it was hovering near those low levels. Would you say if you want to buy an ipo, wait until the first year is behind you . I think its obviously case by case, but i do think thats an increasing issue because theyre waiting longer to come public. More of their employees have a pile of their stock. You do have this kind of rush for the door when the lockups expire. One more broader question on just the price action today. I mean, 200 points blown in a couple of hours. Look, everyone sees how oversold the market is. Everyone feels like there could be a ferocious rally at any point, but oil will not permit it. Right now i think what this market fears most is deflationary forces, whether its chinese currency devaluation or oil not allowing itself to find a floor. Those things really are what the market is tethered to. Were learning more about how many countries depend on china for their economic stability. South africa, on the front page of the Washington Post today, who would have thought . Marginal buyer of pretty much anything, right. Exactly. Its always great to have you for everything, including tech ipos. Mike santoli. Ubers profits and losses continue to grow as the Company Keeps expanding. How can both of those things be true . Well get an inside look at the companys financials. And still watching the markets. Well off the highs of the morning. Nasdaq still in positive territory, though. Well be back in just a moment. Coming up, with oil now at its lowest level in more than a decade, which companies are most at risk . Well have a special report. Plus, lulu lemon spiking at this hour. Is that stock ready for another run . And three under on twenty. What do to with twitter, gopro, and fit bit as those stock slides continue. Well see you in 20 minutes or so. Sounds good, scott. Thanks. Uber may be facing growing losses as it pushes into china and india, but its also seeing a jump in its profit projections. Thats according to an exclusive report by our friends at the information. Jessica lessin, founder and editor of the information and she joins us at post nine. Good to see you back. Its a lot of money. How much its a lot of money. Well, so, losses of the first half of last year for uber was 1 billion. Thats up 50 from the previous year, but revenues which came in at around 600 million for around that period were growing faster. Almost tripling. Thats the bet. Still investing heavily, though. Still losing a lot of money. One of the reasons why they put china into a separate entity was because they wanted to keep the losses isolated from the rest of their more developed markets. Has that worked . Its early to say. We reported earlier this week that there have been its been a tough road in china. You know, we uber is kind of the lyft of china right now. Its losing to dd, but its still early days. Theyve been fundraising for th separate entity. They completed that, but ouber ended up putting more of its money into it because of weak demand. Thats a troubling sign as well. Jessica, why are they pouring so many resources into china . I mean, theres a whole rest of the world to play with. Dd is huge. I mean, this could be their waterloo. Were in an environment where you see people talking about, boy, their valuation could be too high. They could spend all the 6 billion they have in the bank in china from where it looks right now. Its been a waterloo for so many Tech Companies. I think uber thinks it has a shot to build a Good Business there. The coo told us that they feel privileged to be able to be doing business in china right now. Theyre tl certainly is demand, and paired to the wasteland of companies that have failed miserably, they are seeing strong growth in china, but thats the question. What kind of investment will be worth it in the end . The kind of growth where you lose money, though, is dangerous. You get the sense that thats going out of favor a little bit across tech. Not just even talking about uber. Absolutely, absolutely. Companies have to show they have a Business Model faster than ever before. Were certainly in nervousness right now. I think its true in china too. I mean, in china its pretty typical to see incredible marketing, incredible promotions, real land grab. Dd and uber have curbed that a little bit, but theyre still investing. How long can you give away your product for free . Thats a great question. Weve been trying to figure this out in tech for a long time. The thing to remember, though, is Companies Like uber do have Business Models. Its not just eyeballs. Its not just hoping that the advertising will come. There are transaction theres. Theyre getting a big cut. I mean, theyre on track to do more than 1. 5 billion in revenue this year, and its starting to be some big numbers. John mentions the money theyve raised. Whats your take on how much they plan to raise or want to raise in the coming year . I think theyll get the money while its cheap and they can. I think this current round is still open. Travis wants a war chest. I think when they can get it on the kinds of favorable terms theyre getting at those valuations, theyre going to take it and invest for a rainy day. How does india look different from china just on a strategic basis in this ride sharing or ride for hire market . I think its even more fragmented. There are some big players like olah. Were starting to see some winners emerging. Youre also talking about very different types of transportation in these markets. Youve got the higher end car service. Youve got rick shaw services. There are a variety of taxi services. Still a land grab. When you talk about fundraising, our david faber reported yesterday that part of where they are looking to raise this money is through the retail investor. Namely this time through Morgan Stanleys brokerage arm. How far down the totem pole do they have to go to get some of this money . We did stories earlier this month about the road shows, these private road shows that theyve been doing. Theyre making the pitch. Theyre giving people the data, and theyre saying tell us what price you would invest at, and then theyre making a decision. Its all capital to them. Jessica, really good story about a company thats hard to get solid information on. Good to see you. Good to see you too, carl. The dow up 192. At one point currently sitting in negative territory. By close to 20 points. Part of that is oil falling. Crude down about 3 . We were hovering just above 30 a barrel, and we still are. 30. 12 is the price action right now. Well take a closer look inside these markets when we come back. Close to breaking below 30 a barrel for oil. Jackie deangeles is live at the nymex with yesterday another day of sliding. Thats right. Really gunning for that 30 mark. 30. 10 is the intraday low right now. This has been the theme for the last few days. We started with a technical bounce this morning. A lot of traders told me they wouldnt be surprised if we had an updade. Especially as things looked like they were calming in asia a little bit in the equity market here was settling down as well. The equity traders will tell you crude turned the equity market. Crude traders will tell you that the equity selloff turned the crude market. Heres whats happening in crude specifically. Whichever way you want to look at it. We have really bold calls out there on the street right now. Standard charter coming out this morning looking for 10 crude. Very bearish there. We havent seen that since 1998. Part of what theyre saying is that theres no eveniquilibrium. Currency is one of them, and other assets as well. Morgan stanley yesterday calling for the 20s and Goldman Sachs saying it wasnt the base case, but six months ago saying 20 was certainly possible. In addition, opec saying making some comments this morning to delegates saying there would be no emergency meeting. The next meeting wont be until june. Opec not panicking at this point. Then this afternoon were expecting to hear from the api, and traders are looking for another build in crude inventories. All the factors right now adding up and stacking for oil to go lower. We got to that 30. 10 mark. Really need to watch this closely, kayla. We will, indeed. Ill take it from there. Thank you, jackie. Along with oil, markets steadily losing earlier gains. Dow, s p, both at about break even right now. Nasdaq slightly higher than the rest. Its a good time for art cashin, director of floor operations at ubs, to join us. Art, is this whats happening in the equity markets . All about oil today . Any kind of lingering affects from the Chinese Markets, which didnt fair too badly overnight. Its less about the Chinese Market and more about the chinese currency. That was stabilized as the chinese are trying to reorganize or change the disparity between the on shore market and the off shore market. Theres a lot of shorts in the off shore market, and that has gotten them more than a little concerned. That was stable today. This is really all about oil, and perversely, oil doesnt really have to rally. The market is trying to rally the stock market is trying to rally now simply because oil is stabilized. It has stopped going down temporarily. If im a longterm investor, how much do i really have to worry about all this stuff . When i look at apple, its under 100. Dividend yield over 2 . Is now a time i should be buying . Well, i think its a time you want to watch the extent of the oil problem because it could by contagen bleed into the financial system. Theres a lot of paper out there. Theyre talking about bankruptcies. Youre hearing that if oil remains this low or goes even lower, could you have 30 of the fractu frackers go bankrupt. Whats the line for that to happen . Six months ago we were told that it was 40 a barrel, and then we dropped below that, and were still waiting for some of these restructurings and bankruptcies to happen. The Capital Markets still seem relatively friendly for convertibl convertibles. What happened . To some degree saudi arabia and the fact that they are talking more aggressively about possibly doing an ipo. That is interpreted by the markets as them trying to get some money to fund an extended war on oil. To drive everybody outside. They have societial programs that are very expensive for them to keep up. They cant afford to cut back on the benefits they give their people. Theyre looking desperately to get some funds so that they can finance a war with oil against iran and other people. In turn, their tolerance for pain, so to speak, gets extended, they can plush flash out more u. S. And foreign produc produce producers . Absolutely. We were looking at 40, and after that it will be a problem for everybody. The fact that they have now upped the antti and said, no, no, were going to get enough money to fight this out. Given all that, if im an investor in other things, i need to be worried about contagion. What are the sign posts on the road there, whether we know what were going there or not . You know, well, 30 of the Oil Companies wont all go out together. Youll begin to see one or two. Then that will be a big point to begin to hone in on what really is going on here. Watch for the first victims of the drop in oil. Samson was the first victim. Were getting some more. You look at things like freeport mcmoran. No reflection on the stock, but it is trading as if it was going to face some economic challenges. The downgrade today. Well, i mean, the traders downgraded it long before that. Yes, they did. A little like watching a horror movie. Thats the problem. The oil is going down, and traders are getting concerned because its trickling down. Its almost like the proverbial water torture. If you got capitulation selloff, ive had enough, all right. This slowing ticking down day after day, not making anybody happy. Well, we feel a little bit better getting your insight at least on how to think about whats going on. Art cashin, thanks for joining us. My pleasure. When we come back, we just talked about the big turnaround to the down side in todays market. Well talk about some of the big movers after a short break. Neck pain, blurred vision, headaches. Just a few of the symptoms some 73 of young adults are now suffering from thanks to digital eye strain. Its a new survey released by the Vision Council that says nearly 90 of survey participants spend more than two hours on a digital device each day. One in ten spend more than 75 of their waking hours on a device. Now, these devices are thought to strain eyes due to the blue light they emit. Doctors involved in the survey say theyre seeing millenials with symptoms more commonly seen in individuals in their 40s, and the worst part of this study, guys, is that they said children are increasingly using devices sometimes two at a time and showing some of these symptoms as well. In their 40s. That doesnt sound that bad. I mean, right, carl . No. No. Absolutely not. They usually start to show themselves in 40s and theyre now being seen in peoples teens and 20s. Im not a millenial, but im guilty. Equities and oil, obviously, have been in a down trend all morning long. Crude just a few pennies away, essentially, from a twohandle. Take a look at the dows intraday journey. We were up 192. Upgrades of a lot of dow components. Guidance from some big consumer names like lululemon and starbucks. That eroded relatively quickly. Then theres crude, which jackie just mentioned continues to be a story of over supply. A separation from fundamentals. Art cashin, arguing a moment ago that the problem began with saudi arabia. A couple of upgrades ahead of that. Goldman sachs yesterday both saying this is a buying opportunity for a stock that could shrug off some of those trading weaknesses weve seen in other companies. As cashin would say, stay nimble. Lets get back to headquarters. Scott and the half. All right, guys. Welcome to the halftime show. Let me introduce you. Pete is here along with sarat, stephanie, and joe. Our game plan looks like this. Upward dog. Why lululemon shares are spiking at this hour, is the stock now primed for a new run . The under 20 club, what to do with twitter, fitbit and gopro as each of those stocks drops below that closely watched level of 20. We do begin with the markets. Stocks unable to get anything going, and a lot of that has