Transcripts For CNBC Squawk On The Street 20140203

With the first snap. Calling it the superbore. 12 seconds. And hitting. They dont throw to sherman i am a huge Richard Sherman fan what was weird, peyton never looked right and the seahawks i fell like i was in seattle. Couldnt hear a thing when peyton was taking the snap. Carl, it was a noshow. It was, it was. We kick off a busy first week of february. Janet yellens sworn in as fed chair, as we speak. Earnings to come. A jobs number on friday. Tenyear yield hit its lowest since november friday. Currently around 2. 67. Asia traded lower on the weakening China Services pmi. Futures, in the green, after a rough january. As the nikkei enters correction territory, are we in for yet another rough month . As we said, yellens being sworn in. Well discuss challenges for her and the fed. Is joseph a. Banks hanging up on mens warehouse. Feels like. In talks to buy eddie bowauer. It was blood, sweat, tears at metlife stadium. Congratulations to the seahawks for their big win. They do well in that stadium, i might add. Yes they do. As we said, saw hawks beat the broncos 438 winning their first super bowl title since 76 and the first championship in any major sport for seattle since 79 when the supersonics won the nba title. Nice to see paul allen get the trophy. Sure was. Moments people cheered, mostly the budweiser dog ad. Yes. We should talk about the ads, because i think the general sense is there was no blockbuster ad, right. No. When people talk about winners, mentioning thing likes the budweiser puppy add. Yit. Radioshack ad. One of the things, i think, stocks, of course, i wanted to bring back the radioshack stock price from 80s, thats not going to happen. Pepsico, giant presence. Owned halftime and light show. Halftime, look, one of the reasons you go to the super bowl, halftime is amazing. Beyonce last year. Looked like fun, bruno, fireworks looked nice. Its a great its a great show and the halftime is a half hour long. Theres tons of commercials. But it was diagnosis congratulations to the seahawks, they played a hardfought, bonecrushing game, and im sure denvers saying they whooped us, period, end of story. Having been in seattle for four days last week, a lot of people, of course, sporting attire. I can imagine theyre excited. Interesting, you mentioned the supersonics. I will say this, theres lingering bitterness against w howard schultz, that team became the thunder. Right. Thunder. Kevin durant, Russell Westbrook drafted by seatle. Incredible. Howard schultz took mckellen, right . Those guys dont pal around much. No. Maybe they have in common that mckellen likes the Information Bureau in the chip po chipotle ad. Corporate overlay with the super bowl. A favorite tweet, go to papa johns, use peyton as your promo code and seahawk will take the pizza from you and eat it. Unbelievable. My most damaging tweet, frankly, was my daughter who said, dad, i mean, hello i took her to the game last year. Come on, you cant just tickets dont grow on trees. You went to two consecutive super bowls. You bet i did. The maserati ad, minutes into the game, chrysler reported sales for the month, beat, 8 up, they own maserati, fiat does, interesting, i dont know. For a broad american audience to go with product that upscale. Well everybody its interesting that chrysler routinely seems to dazzle with its ads. Come on, ads are funny. A couple years ago they had a few breakthrough made in detroit, you know, imported from detroit. One 0 the things i find other guys get lost in the shuffle. I dont hear about the other autos. To the markets here. Futures in the u. S. Pointing to modest gain as head of todays manufacturing data. On the other side of the globe, european and asian markets sell off after data show chinese factory growth slumped to sixmonth low. Nikkei falling 2 to 2 1 2 month low that index incorrect territory. Janet yellens sworn in as fed chair as we speak. Well bring you pictures as soon as we get it. Commentary about january indicator continues, dow down 5. 3 in the month. A bad month. Im lukewarm on the market short term. But there is kind of funny stuff here. If we had a pmi like we had in eurozone two years ago, we would have been up 200 points. The remember the bankrupt bank, they had a huge quarter, again we would have said, wow, buy the futures up, too. But, no, focused on turkey, 700 Million People in europe, thats an indicator, thinking about that. China is total shutdown, but thats a holiday. And the mccau gambling was huge. Bernanke is going to join brookings institution. Not a complete surprise, he had given his final appearance there. David wessel, of the journal is there but officially going there and make rain and did we want bernanke to go to blackstone . No. No. I think i like more of the idea of him continuing to distinguished fellow. Yes. Geithner went p e action. Le did. Geithner, not made the big money. Wow. Thus far. All about the benjamins even for the treasury. Being a lot about that, right . Geithner in Public Service, nor or less his career. Russell wilson making what Public Service makes. Hes going to get the contract. Russell wilson, not making big money. No, but my son was telling me about that, right. Really. Could it be as little as 500,000. Way to go. Got it right. Thats about to change dramatically. I think that is going to change. All right. Lets move on to a saga weve been covering here. Joseph a. Banks, in talks to buy eddie bower, the latest in the struggle between joseph a. Banks and mens warehouse and both companies having made offers to buy each other, the size of the potential eddie bauer deal, its early, talking about a company with 800 million in sales. Not a lot of overlaps between the two. Football, right . Football, eddie bauer. It was joseph a. Banks for mens warehouse, stiff armed there, coming back with the pacman. Dueling proxy fights. I did speak to ricky sandler, not much to report, but well seal if we hear from them. The largest shareholder in men and joseph a. Banks going after two directors, the ceo and chairman up at joseph a. Banks. But this is that and the letter that came out saturday night from joseph a. Banks all of the reasons mens warehouse, youre not what were looking for. Negative everybody if youre expecting that these two are going to get together. Is eddie bauer i remember they its one of the brands in the 80s a great stock for a long time. Went bankrupt. Lost in the shuffle. Too much debt. Golden gate purchased it. Thought decent private equity firm there, probably had taken a lot of the cost out of the business already. So how much upside is there . Yeah. You have questions in terms of the overlap which doesnt seem to exist a great deal. Ones casual, ones not. Right. And the idea that there may not be as much upside if you think golden gates a good aq acqui acquirer. This would be a terrific combination, but i guess it wouldnt be good for cnbc. Lets keep them apart. I thought we i think they both advertised. Were the real story. Our own suits that we get no, no. I never watch advertisements, youre not supposed to do that. I thought i could mention. Front and center. Not that that would color our coverage in any way. A big week for media, time warner reporting, twitter, fox news corps. Linked in, well have our choices. Yum tonight. Yes. Twitter, you know with the more look, i dont want to say buy twitter, because its up a lot, you look at what theyre doing and you look at how you relate that to the super bowl i was speaking to somebody in twitter in the Sports Department from twitter, brilliant guy from espn, super bowl is a twitter explosion. Yeah. Figures ive seen this morning showed number of tweets versus last years is up but not explosively so. The second half, i mean, were dialing around. Wow, im sure there was something on pbs that had good numbers second half. Our network we blew it out. We did. Right, second half. Bill mohrer. Herbalife, a muchneeded pop. Jpmorgans chief equity strategist, tom lee what january was about, where we go from here. Busy week. Olympics kick off, jobs number on friday. More squawk on the street from post 9 in a minute. [ male announcer ] here at optionsxpress, our clients really seem to appreciate our powerful, easytouse platform. No, thank you. We know youre always looking for the best fill price. And walk limit automatically tries to find it for you. Just set your start and end price. And let it do its thing. Wow, more fan mail. Hey ray, my uncle wanted to say thanks for idea hub. O well tell him i said youre welcome. He loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. Yea, and these ideas are across the board bullish, bearish and neutral. I think you need a bigger desk, pal. Another one . Traders love our trading patterns, now with options patterns. Whats not to love . They see what others are trading like the days top 10 options trades by volume and get ideas yea i have an idea how about trading that in for a salad . [ male announcer ] so come trade at the place thats all about options and futures. Optionsxpress. Open an account today and get a 150 amazon. Com gift card when you call 18882800154 now. Optionsxpress by charles schwab. Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. And provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. It is snowing again in the southeast. More storms expected this week across a large portion of the country. Weather channel jen carfagno here. Reporter i heard that again, when you said its snowing again. It is february, we are dealing, of course with more snow here. Its been a long winter for us in philadelphia. But you cant help but appreciate the beauty of snow here in philadelphia. Right on independence mall, Independence Hall behind me, Historic Building there. And its a gorgeous view. Now, theres been a lot of tourists here this morning, and ive seen a couple of people who look like they were walking to work. But overall, tourists enjoying sights and taking pictures this morning. Now, the snow changed over from rain to snow about an hour and a half ago, and its come down fast and heavy, and its sticking quickly as well. Its a very, very sort of slushy, heavy, wet snow, and you can see, on the sidewalks here, its accumulated and its very slick. Suddenly slippery is how ive been describing it. You can see it on the roads as well. Speed reduced on all of the area interstates and roads to 45 miles per hour. Bridges running at 35 miles per hour. Airlines canceled a quarter of flights in and out of Philadelphia International today. Kids have another snow day. I dont think that they have had a full week of school since the holidays, actually, carl. Its been a snowy january. The third snowiest january on record in philadelphia. Now another one. The upside to this snow is that its perfect for making snowballs. I can get snowballs made in three seconds. Ive got my arsenal ready for the snowball fight later today. High water content, thats what we like, jen. For those of us who enjoy snowball fights. Weve got figures on the number of Flights Canceled in the month of january, 49,000 costing the airlines approximately 150 million. Doug parker on mad money last week, started with a buy at Morgan Stanley saying it hasnt hurt us. In the old days you used to lose 200 million. Its not the old days, start focusing. Herbalife, 1. 5 billion, says it plans to raise 1 billion through a convertible note issue. Also estimated Fourth Quarter profits and sales that were above expectations, sending the stock higher in the premark, not quite the shock and awe that many had anticipated previously. Once it got that clean bill of health from its auditors, if you recall, there was a lot of belief they would borrow a lot more than a billion dollars and buy back a lot more than a billion and a half to put it in some perspective. Increasing authorization to a billion and a half. Its 650 million now. They expect to begin repurchasing shares quickly there. Convertible bond offering also, 2019 convertible senior notes, theyll use that to help the cost of repurchasing shares. Battling again, on a number of fronts. I know. Ackman never stops. No. A few other things, sort of slowed momentuomentum. 20 buyback, what do people want . 100 buy back. Thought they would do 50 and squeeze the heck out of them. Weve stalked about stirrus, not an insignificant from his personal wealth in his stock. 400 million. We watched it reach 80 and its been down obviously. All of the political chatters been bad. I know there was talk for 80 dutch tender and it would squeeze. You know, instead, what youve got, kind of something thats good, if youre a shareholder, i guess. Right. Stocks up. Anticlimactic for those looking for more. The stock had been much higher. They say its 67, had been at 80, not long ago. We got the stuff in china from new skin, marquee letter, other things. Models always under attack. I saw avon downgraded. They say how can you lump us . Youre a much worse performer. What stocks to be watching on the first trading day of february . Cramers mad dash. Futures here, not a lot of direction in premarket. More squawk on the street on nyse straight ahead. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Gimme, gimme your attention baby, ive got to tell you a Little Something about yourself a little more than 8 30 before the opening bell. Mad dash on monday. Monday after the super bowl. A lot of people talking about this should be the national holiday. Right. Feels kind of not as much news as you might expect. No. Especially last week, a lot. Major firms, very rare. We had one, costco, jpmorgan says buy it on a pullback. It has been straight down. But the numbers are good. So i retails so hated. Youve been talking to people at costco, and there is just an overall sent among people who follow retail, the weather has been so horrendous. Weathers horrendous. People trying to figure it out. Amazon numbers from last week. Right. 20 up top line, disappointment. Not enough. Lack of bottom line, at least based on what they were expecting. We didnt even see amazon, though it did benefit at top line, it was not a beneficiary in the market from what seemed to be everybody elses losses. Yeah, i thought theyd get better. I still like amazon. Ive good to tell you, seattle the hub of corporate commerce. Its interesting. Costco, amazon. Starbucks, microsoft, you havent talked about that. We may have a new ceo. Not a big surprise, satya nadella, only same were hearing about now from microsoft. And boeing, of course, no longer headquarters there but still making planes. Costco, take another one that has that same ethos, whole foods, these are two companies that work for, wages are good, people move up in organizations. Whole foods, which has been a tortuous decline, piper says, finally, time to buy it. I think both companies are terrific. I want to compliment you, i was with a bunch of executives this weekend at the super bowl, charlie ergan, davids the best. Hey, jim, davids the best. Im here, too. No, davids the best. One of the things that was the topic for the colorado executives offline, pot. All torn about it. Workers, smoke pot and its legal and they dont know what to do. None of the executives i talked about are in favor of it. The governor, the senate theyre no in favorer. Theyre not doing it during work hours. The same way you wouldnt be having a drink during work hours. The idea that this has become the stoner state. And theyre all kind of, you know, theyre not crazy about that. Theyre just not crazy about it. They all i didnt find a single executive who is like, yeah, everybody lights up and its better than drinking, it didnt. Drinking, arguably, is worse. Conceivably worse, right. Dealing with a lot of those things in colorado. A lot of issues a big issue. This is not going away. The pot stocks, trying to work on them, boy, difficult to get a handle on. We need to do investigation. Some of them are not on the up and up. We will work on pot stocks, in addition to other things. 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Opening bells going to ring in just about 2 30. Busy week, of course, coming off the worst january for the dow in four years worst month for the s p since may of 2012. A lot of earnings on the way, 85 S P Companies and a lot of data, adp, leading up to the jobs number friday. Got to be on the fence here because if that jobs number is bad, thats two in a row that are bad, people trying to figure out whether its weather causing the problem with retail. Theres just a lot of question marks that will be resolved this week. An incredibly important week. Bank of england, ecb, we dont talk enough about the threat of deflation over there, even after some of their Economic Indicators last week. A lot of people are saying, look, theres its not enough to offset whatevers good there not enough to offset china. Every time you get off the desk with an executive, theyre telling you not to worry about china. Make me worried about china. A very nice guy on squawk saying buy agio. Are you kidding me . Did you see the chinese clamp down on liquor . Hard, hard. Against expensive liquor. You cant have the chinese crack down on something you think youre going to numbers. Remy had a problem. The only company i heard talking about because one child, going to two child, mattel saying it could be the saving grace. Mattels quart, horrendous, every category. Fisherprice down 13, barbie down by the same amount. Holidays. And teenagers arent shopping what is go on in the country . Are we coming out of the depression and people stopped shopping . I dont believe thats the case. I dont either. I think theyre changing what theyre shopping for, maybe theyre just buying a lot more games on phones and apps. Could be. Xbox. A big part of the abercrombie piece, priorities for young people are different than they were when we were growing up. Used to be clothes now its about a smartphone. Chipotle, the cfo, they had nine plus comps and a lot of this is food with integrity. The next generation, they i dont know if you watched youtube videos, take some time out and watch these youtube videos with buck marshal, youre going not youre not going to want to go to a regular food store. I saw don thompson this weekend and hes saying, listen, mcdonalds, dont count us out. The stock didnt drop last week. Thats important. Mcdonalds versus chipotle, they were related, whoa. Scarecrow. Even as mcdonalds trying tos more like starbucks, but thats a conversation for a different type. Theres the opening bell and look at s p at the top of the screen. Down here at the big board, starwood way point residential trust, spinning off from Starwood Property trust to form Single Family housing reit. Intuit, provider of Business Management and Stack Software celebrating Small Business program. Speaking of taxes, h r block, rather than buying an ad during the game a slew of ads that would run as a preroll on youtube. Interesting strategy going into that event. Theyve been very clever. I had them on for mad money, everybody gets 500 had you used them. Look, main thing is that this the boon here is the health care plant. You cant figure out what youre going to get in the health care plan. You have to have credit. I dont know if anyones looked at their taxes since health care. You need a professional. I used to do my own taxes, that would be when was that . 1984 . Right. Such a vicious guy. Vicious. Its true. No, 79. Oh, 79. I tried it my first year at goldman, zeros, cant do it. Like fit zeros in at goldman. Right. You mentioned whole foods earlier, upgrade at piper. Flat market. Exactly flat. Well, you know what . Maybe we need that. I mean volatilitys been crazy. People are trying to catch their breath from last week. Just up, down, we havent had that in so long. And there will be raids of the market and s p selling. Maybe we need to calm down. Only stock in the dow thats doing well, i find, cat, the worst performer last year. People short cat, that hasnt worked. Yeah. I did notice shares of pfizer up, it may be coming down a bit, up over 2 . I dont know if youre seeing that. I liked pfizers quarter. Apparently, gains on word its combination Breast Cancer treatment thats at a mid met a mid stage trial goal. Isi research firm, after speaking with Officials Say oncology leader, delighted with the final data, came after careful deliberation. So giving some comfort that perhaps this is something that will continue to advance as a potential therapy. Remember, thats important. A lot of drugs coming off patent. Pfizers not come down. Its a Great American company. Peoples 401 k s, i. R. A. S have pfizer, and i think that, you know what . Thats a company that you shouldnt let go, if you own it. There are other better drug stocks but its a fine company and its been delivering. We havent mentioned apple, apples up. I dont want to call it the rumor milk but friday night, reports about the Company Meeting with the fda over wouldbe medical devices. Today, pictures of tim cook visiting Electronics Retailers in dubai and the united arab emirates, virgin megastore, for instance . Yes . I mean it needs pizazz. I wait for the woman to give the company pizazz. Samsung continues to be less and less pizazzed. Doing numbers, remember, growth in apple yearoveryear was quite poor versus other companies. Growth Companies Got to put up double digit. Theyre not double digiting. Facebooks one to watch. Close if not alltime high at 63. 27. Company turns so years old tomorrow, 10 Year Anniversary of the day Mark Zuckerberg created the company in his dorm room. Market cap in ten years 157 billion, 20th Biggest Company on the s p. Behind merck and oracle. When you talk to companies, cmos, ceos of Major American Companies trying to reach younger people they say facebook. Facebook. Its almost like, well, yeah, of course facebook helping numbers. Return on investment. Google, love google, too. Cant reach this demo without these people. Its just incredible how valuable facebook is for return of investment. Twitter, two. Facebook, facebook, facebook. This is how they connect with consumers. Usa today, the number of companies that tried to do what they do and lost. The bbos, myspaces. It wasnt like it was a clean path. No, absolutely. With no other victims. On the Conference Call for chipotle, they just love twitter. If you go on the twitter feed, they just constantly answer people. Like, yeah, thank you, joe. Yeah, good job. Apply here. Theyre doing oneonone marketing with individuals. People are using twitter and facebook in many creative ways. Right. Although not necessarily twitters benefit in terms of generating revenue. No, chipotle, maybe theyre you go to chipotles feed, and its like thank you for that glad you liked the ad. Like a oneonone, very retail marking method for twitter. It can work. One customer at a time, i suppose. Point out shares of microsoft up, of course. We mentioned this during mad dash. All reports seeming to indicate, though we have not gotten confirmation from the company, its now february, expectation was they would have named a ceo, perhaps they wanted what i heard they wanted to before the end of january. That hasnt happened. Satya nadella the odds on candidate at this point. Not hearing any history names. Cloud. Dont have a lot of background why his candidacy ascended above the one or two others they were considering. Microsoft ad, stirring. The new orleans saint player als. Theres some amazing ads, heartstring ads that have gravitas. Were getting breaking news on the Auto Industry. Fords out with sales for january. Phil lebeau has that in chicago. Good morning. Good morning. We did not expect strong Sales Numbers from ford or any of the automakers for the month of january and thats what were getting from ford. A decline of 7. 1 for the month of january. That is slightly weaker than the estimate from edwins a decline of 6. 1 . Ford announcing in the Sales Numbers that the weather impacted sales. I should point out to you, ive talked to a number of dealers and weve talked to automakers, they believe weather did take a significant number of sales off the table because people didnt go into showrooms. But ford down 7. 1 for january and two quick notes. Nissan, up 11. 8 . Subaru up 19 . Well get gm numbers shortly been. You. Weather, weather. Taking your temperature on cars, theyve already said 2014 pretax will be lower than last year. Right. Ford had that big i thought that they would cut the loss in europe, and latin americas tough. Ford did not have the quarter i wanted to see. But the weather, i mean, look, the weather this week, i just feel for retailers, nothings going their way. Nothing. Amazing. Weak. Dows not going either way, either. Up six points. Bob pisanis on the floor. A mixed picture today. I see some stocks on the upside, utilities on the upside. I see eem, emerging markets etf, down as well. Good news is were out of january. And remember, still in that best sixmonth period, beginning from november all the way into april 30th which is traditionally best time for the stock market. The bad news is, februarys the weak link in the best sixmonth period. Its second weakest month of the year, depending which indexes that you look at. Thats bad news. Also dealing with unfavorable trends, particularly asia and emerging market companies. Talking about the fact that the nikkeis in correction territory. Rest of the market, brick brics, not doing well either. Russia down 10 . Brazil down 8 . China, shanghai down 4 . India faring better. Only down 3 . More worrisome is the yen strength that weve been seeing. Remember, a lot of the economic models, stock models based on the yen weakening. That chart is three month of the dollar versus yen. As chart moves to upside that means dollars strengthening and yens weakening. Last month, the yens stronger, about 3 . Thats a concern for people trading the markets right now. Why focus on the nikkei . Why not focus on the stocks we see here that are down more than 10 . I noted friday there are a number of very big multiindustry names that are out there that are already down more than 10 in the year. Parker hannifin, g. E. , dover corp ration, cummins, chevron down 12 . Stocks down more than 10 . Mentioning lousy weather. Ive got a lot of emails mentioning it, not just ford. But Construction Spending at 10 00. Guys, expecting a modest increase. I dont know how theyre doing that. I bet a decline on Construction Spending. That will be out in 20 minutes. Raymond james out with a note saying lousy weather will probably impact nonfarm payroll numbers friday and cloud them as well. A stock market merger today. Direct edge and two former competitors as well as nasdaq, also merging, merger is competing today. Well have bats president bill ow obrien, 10 15, talk about the markets with him. Bob pisani. Lets head to the bond pits. Rick santelli at cme group in chicago. Good morning, david. Its no secret that Interest Rates on high quality sovereigns have been moving down. If you look at twoday chart of tens, a couple of things jump out at you. Of course, it was a big move on friday and that put us at twomonth plus low yields several basis points off the levels. The volumes thin. Expect it to pick up when we get data at 10 00. And of course with wednesday, friday employment scenarios and lots of data this week. If we look at charts starting november 1st, get the picture, basically all of the charts, look the same from a pattern standpoint. Lets look at a tenyear from november 1st. Lets look at tenyear bund. Look at a g limit d. The jgb. Its an odd one. Its so low. Similar. Stick with the topic of japan. Still looking at patterns, all right. Lets look at whats going on with regard to nikkei. Weve been talking about it all morning. Now lets throw up the dollar y dollar yen. Throw up the euro yen. Charts are the same starting november. Its good and bad. If youre looking for macro to change anytime soon, most traders dont think its ready yet. Notion of correlations, where is there any place to hide other than highquality sovereigns . Thats what the markets grappling with. Back to you. Rick santelli in chicago. When we return, the super bowl commercials causing the most buzz. Breakdown our favorites. Late, a different year for the food stocks. Which will be the most satisfying for your portfolio . Well digest that later on. Back in a minute. [ male announcer ] even more impressive than the research this man has at his disposal is how he puts it to work for his clients. Morning. Morning. Thanks for meeting so early. Come on in. [ male announcer ] its how edward jones makes sense of investing. [ male announcer ] its how edward jones but with less energy, moodiness, and a low sex drive, i had to do something. I saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or Breast Cancer. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about axiron. Welcome back to squawk on the street. Im jackie deangelis. We are watching the energy complex, under pressure this morning. You have the weak data out of china, putting pressure on brent crude futures hitting twoweek low and trading under 106 a barrel. Concerns, of course, about the emerging markets and china demand and growth affect oil prices. West texas intermediate, mild gain there. But again, the same issues traders, tentative now at this point. Also watching nat gas prices under 5. Traders telling me they were watching these prices, they are supported by the cold temperatures outside. And certainly the storm affecting us on the east coast now. Quick check on gold prices. Got bargain hunting going on and also that safe haven trade back on the table, holding under 1250 now. Breaking news on the Auto Industry again. Gm out with january Sales Numbers. Back to phil lebeau in chicago. We told you theyd be weak, and they are weak. Down 11. 9 for january from general motors. That is weaker than the estimate for a decline of 9. 3 . General motors, down in every brand. Caddie, buick, chevrolet, down 13. 3 last month, and gmc, down. 81day supply, gm predicting that the Monthly Sales pace will be 15. 3 million units. Put that in perspective, december was 15. 6 million for the Monthly Sales cade dense. People are saying, bad weather, januarys a weak month. This is not the way to start the year. Back to you. Thank you, phil lebeau. Reaction . Not good, right . Januarys a shutdown month. Just shutdown month for the economy. We see a lot of numbers like that. Im worried about the employment number friday. Well be taking bigger takeaway or thinking its weather . Ive been saying its going to get weaker. Look, the weather can reverse, but lost month after lost month, how many months can you lose . I know, i spoke to American Electric power friday, theyre seeing up numberser for the first time in seven years in all areas, and thats a big part count tri. Theres a mixed picture. But i just i see numbers. Come on, recession numbers. But these are recession numbers. Sure. Speaking of the game last night, sometimes best part of the super bowl is the commercials. Was that true this year . Jurys still out as people take stock of what we watched last night. Radioshack ad earlier where one of the clerks picks up the phone and says, 80s called, immediately mary lou retton, erik estrada, alf in the door. Situational awareness. Im surprised radioshack could be as smart as that or the ad agency at least. Yeah, radioshack was a great company. I mean, those of white house tried to shop at radioshack lately you feel like, wow, i wish our back in the 80s. They seem to be sentimental, too. Balance sheet that ad will not change the Balance Sheet that i know of. David, is that increased cash flow . It doesnt. New storm formats. Not bad. You shopped somewhere . Shopped at radioshack . Looking for batteries. How did that go . Sold a few things. They had a very good deal on mini ipads. Extremely strong. 100 Gift Certificate if you bought one already 299. I have to go to the shack. T mobile had a couple of ads, one with tim tebow. After the game another one text. Just words talking about how they would help you rip up your contract with your current carrier, made a joke about how saving a bunch of money not paying for highpriced talent. Typically asymmetric marketing, you know. These guys are wrecking margins of everybody. The groups awful. Seen at t unveiling a new pricing plan. By the way, at t stock down 2 . Verizon down 1. 77. I dont think it has much to do with the ad. The ads representative of continued competition, you also get back to what is this push, of course, as we know, weve reported on many times, by soft bank and its own company, 80 owned sprint, to continue to consolidate. Meetings reported on today between fcc and dan hessy as they push the case, allow more competition though were see what would seem to be sufficient competition, if not strong competition, from the fact that the Justice Department didnt let at t buy t mobile. Is this good for apple, in terms of new contracts, phones . I guess. We talked about the low churn, though, at at t last week. Yes. Record low. Yep. They claim theyre not losing that much. The larger argument being made by softbank, why consolidation should be allowed, why it should be verizon at t and a sprint combination, youre not able to compete over the long term. They operate their own universe. And were still knocking on the door. Yes, we can get a few million customers more, great. But if you want high speed, if you want to us compete robustly in 2015 for the broadcast spectrum you, need to let a third competitor be a viable competitor. Well see if it passes muster. Is everyone in the world know tebow didnt get a contract . Pop culture. It was a funny ad. One of the funniest ads. That guy doesnt have a contract. Funnier than seinfeld ad, which wasnt an ad. That was strange. The reunion between Jason Alexander and jerry seinfeld. Dont care for that. The moment you said recession we lost 40, 50 points on the dow. Dont blame me. Just looking at auto sales. When we come back, big a big Event Next Week here in the big apple. Jim cramers talk and book signing for get rich carefully. Tomorrow night. Barnes noble, union square, 7 30 p. M. Get there. Speaking of jim, whats coming next on squawk on the street. Investing in this market can be a scary as walking a tightrope. But dont fear. Cramers here. And hell get you started out on the right foot. 6 stocks in 60 seconds when 6 stocks in 60 seconds when squawk on the street returns. 6 stoto manage your money. N squawk on the street returns. Thats not much, you think except its 2 percent every year. Does that make a difference . Search cost of Financial Advisors ouch over time it really adds up. Then go to e trade and find out how much our advice costs. Spoiler alert. Its low. Really . Yes, really. E trade offers Investment Advice and guidance from dedicated professional financial consultants. Its guidance on your terms not ours thats how our system works. E trade. Less for us, more for you. Fifteen minutes could save you fifteen percent or more on Car Insurance. Everybody knows that parker. Well, did you know auctioneers make bad Grocery Store clerks . Thatll be 23. 50. Now. 75, 23. 75, hold em. Hey now do i hear 23. 75 . 24 hey 24 dollar, 24 and a quarter, quarter, now half, 24 and a half and. 75 25 now a quarter, hey 26 and a quarter, do you wanna pay now, you wanna do it, 25 and a quarter sold to the man in the khaki jacket geico. Fifteen minutes could save you. Well, you know. 6 in 60 with jim. Cvx. A disappointing quarter ive seen this year the chevron quarter. Credit suisse says dont give up the ship. I found it wanting, theyre cutting back and its not working. Smith and nephew. Buying. A Sports Medicine company, the stock, again, acquirer stock goes up, interesting. Upgrade for norfolk. How many will upgrade . How many people were wrong about this going . Be careful. Everybodys in the pool. Downgrade for royal dutch. These big chevron, royal dutch, exxon, terrible quarters. We are going to get pandora this week. One of great short squeezes of all time. Goldman said its going to double. Here we have needham saying go to 41. I would not get in front of this, short side. Aol. Aol reports, they have had a monster, monster change. Now backing off of patch. And you know what . Tim armstrongs done a great job. Im not going to beg Tim Armstrong to come on our show. But please come on our show. Thats called booking right there. Mad money. You cant get enough of chipotle. When the stock goes up 50, breaks out, you want more chipotle, food with integrity, buck marshal, talk about all of the great ads. We have this birch box, trying to do squagss situations of ent doing great things. If you like to shop, you like birchbox. Yum with chipotle. Yeah. Yeah. See you, jim. 6 00 and 11 00. Simons here. Jpmorgans tom lee on the program. He thinks now is the time to buy big blue chips exposed to emerging marketed. Yellen, of course, to be sworn in washington, d. C. Well have barney frank on the show to talk about that. John steinberg will talk about Super Bowl Ads. Breaking news, new ad out from apple. Live on that. Hour two of squawk on the street. Peace of mind is important when youre running a successful business. So we provide it services you can rely on. With centurylink as your trusted it partner, youll experience reliable uptime for the network and services you depend on. Multilayered Security Solutions keep your information safe, and secure. And responsive dedicated support meets your needs, and eases your mind. Centurylink. Your link to whats next. Im bethand im michelle. And we own the paper cottage. Its a stationery and gifts store. Anything we purchase for the paper cottage goes on our ink card. So you can manage your business expenses and access them online instantly with the Game Changing app from ink. We didnt get into business to spend time managing receipts, thats why we have ink. We like being in business because we like being creative, we like interacting with people. So you have time to focus on the things you love. Ink from chase. So you can. Theres a look at markets this morning. Dows down 48 points. S p, down 4 to 1778. Obviously, after january, where were down 5. 3 on the dow, the worst january in four years, people are beginning to wonder, to what degree the correction or the pullback continues. By the way, s p for the year, so far, down 3. 6, that is the worst single month since may of 2012. A lot of datas on wait this week. Ism in a few seconds here. Factory orders tomorrow. Adp on wednesday. Of course, big number, jobs, nfp, friday. Current estimates around 185. Lets get to Rick Santelli and get that ism data. Good morning, rick. Ism, we have december Construction Spending. Ism, 51. 3. 51. 3, looking for a number closer to 56. This come off the last look at 56. 5. When was the last time we saw a number at 51. 3 . Boy, i have to go back quite a ways since may. May of last year, when we were at 50, as a matter of fact. We had backtoback 50s. Now, lets look at some of the components, employment component is, of course, particularly high importance at 52. 3, thats a drop from 55. 8. If we look at some of the new orders data, 51. 2 versus 64. 4. Those are large drops. December Construction Spending was up a tenth, thats actualry a tenth better that what we were looking for. So its close. Last look downgraded from up 1 in november, now stands at up. 8. I look at the market, we dropped below the yields we closed at friday, twomonth plus yoelields the movie polar geist said, theyre back, referring to equities. Dow, on that data, down almost 100 points. Reaction from our senior economics reporter, Steve Liesman at hq. Not a good number. Seeing a couple of quotes from people who participated in the survey attribute buing it to weather. But the story here is that this is going along with the third weak report weve had, jobs, in december, durable goods number from december, along with now the ism. Ism held up very strong over the past couple of months and signaled better growth in gdp. It looks like we ended the year on more of an economic whimper and started january not very strongly at all. Inventories look like they took a big step down at 44. Both customers inventories and deliveries. So theyre working off that. Looking for the employment number took a step down but remains okay at 52. 51 is growth for this number. But not as strong, obviously, as it was. 55 to 60 is what youre looking for, a normal expansiontype number. This is one of a series of big economic reports we have this week. This is going to raise concerns, i think, about the Federal Reserve and bring this into focus here, simon. Thank you very much for that, steve. Well pick that up later on when we talk to jpmorgan about what the market is like to go from he here. Apples out with a new movie celebrating 30 years of the mac, shot on an iphone 5. Take a look. The coexecutive editor for recode. Nbc news group a minority stakeholder and has a content sharing partnership. Nice to see you. Trying to create an iconic ad, as they did 30 years ago in advance of 1984. Look, the new mac is going to mean 1984 isnt like 1984, we are empowering people. Exactly the same message as microsoft had last night during the super bowl. What do you make of this one . I love it. Its great. Its not as iconic as 1984 commercial which is one of the greatest commercials in history. But they are trying to get the plessage out, how you use it in the hands of people, the original one was were going to free people from the boringness of microsoft essentially, thats who they were attacking. Now here what they can do with what they have, what weve given them in 30 years since the mac commercial debuted. Expect it to move the needle on the sales . I dont know about that. Apple likes to create buzz around themselves and this is typical. They didnt appear on the super bowl. They didnt pay millions of dollars. They put it this on the web. Its different than what microsoft put up, for example. What did you think about microsoft ad . Well talk about it with John Steinberg in a bit. Did it work for you . I liked it. I thought it was terrific ad. Microsoft does make great ads. I love their surface ads. I dont know if they moved the needle there initially. Theyre beautifully done. Its better than a lot of things that microsoft has done. I think i still think apples more inventive how it presents its products. Kara, what do you make about the news that maybe confirmed this week, theres an internal candidate likely appointed as third leader of microsoft, obviously people had hoped that it might be alan mulally, a bigger splash from ford, but thats not the case. How should investors take that . That was our report, actually. Yeah, i think its i think its not a surprise that microsoft went internally. That was aint clin nation of bill gates and others inside the company with a lot of power. Its a supercomplex company. They got burned looking outside. The whole alan mulally slowdowns wasnt good for them from a lot of perspectives. They gui decided to go with someone they knew, with the help of bill gates. Kara swisher with the new apple movie. The super bowl aftermath is all about the ads. But which ones got the most buzz on social media . Buzzfeeds John Steinberg monitored feeds in realtime. Hell give us top trending ads from last night when we come back. [ male announcer ] this is karen and jeremiah. They dont know it yet, but theyre gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, theyll find some financial folks who will talk to them about preparing early for retirement and be able to focus on other things, like each other, which isnt rocket science. Its just common sense. From td ameritrade. Janet yellen being sworn in as brandnew chairman of the Federal Reserve. Want to turn it over to headquarters. Steve liesman, senior economics reporter, covering this. Janet yellen comes in, the markets in turmoil after that last economic report, steve. Yeah, the challenges didnt wait for the new fed chairman. A weaker than expected ism report, a weaker employment report for the month of december. Obviously we get one this week. That will be significant for how they proceed. Obviously the fed also challenged by whats happening in emerging markets and failing to mention that in the statement, continuing with 10 billion taper. I think the expectation for the market that is yellen will pretty much continue plans of bernanke to wind down quantitative easing. The question becomes, if things appear weak, does she halt the taper for a little bit or does she perhaps lean further on Forward Guidance . Theres the fed governor swearing in janet yellen, a fed governor has the ability to swear somebody in. I dont know, sarah, if that means they can marry you but they can swear in a new fed chairman. Interesting thought. I dont know what their powers are as fed governor. Exciting wedding to be sworn in as a central banker. It would be for me. Sarah would be somebody who would want that. Dead serious. Look, i want to bring into the conversation, talking about the markets and the economy, what happened overnight. Its a huge headline. Thats the nikkei, japanese stock market. Dropped into correction mode, technically speaking, that means dropped 10 off of its peak which we saw in last trading day of december where it reached sixyear high. Many looking at the chart and wondering, does that mean u. S. Is headed for a correction, a technical correction, as well . Steve, i wanted to bring you in on this because, to me, it seems like its not a leading indicator. The u. S. Economy is on sounder footing. In fact, were in the mode of tapering or pulling back qe while theyre pumping it up embarking on a huge monetary experiment, and, therefore, perhaps while we may be in some type of correction mode its not a bear signal that the nikkei entered correction. I think that makes sense. You want to be careful there. Last year emerging markets did not lead the way for u. S. Marks, i believe em was down 5 last year. You know that we have a stellar year last year in the United States. But just because they didnt connect last year doesnt mean this year they couldnt be leading the way. Theres a rethink of equity values worth discussing in light of the fed policy, in light of what happens going on in the economy. I was going to say, for most people, its not a question of which is outperforming. Its whether or not you get an implosion in emerging markets and the thing becomes unstable. Thats the issue, or at least you wipe out growth. What was the imf saying . 80 of growth supposed to come from emerging markets . If you stop wiping that out, that changes dynamics, clearly for the big blue clips that are exposed. I want to ask you what Deutsche Bank said, they are suggesting this will be a good year for risk assets because the first half will be bumpy and the second half, janet yellen and co will realize that theyve got to keep printing money or keep being really loose in order to get everybody through this. Because weve not yet healed. I reckon that the fed wants to get out of the q e or the infinite q e business. Thats what i think is policy now. And i think the fed wants to get back to is a place where theyre directing the economy through Interest Rates. And i think that they have a hard time making a case for what what are emergency measures now, simon, and thats where i think theyre going im think making an investment thesis, based upon a speculative turnaround in the fed in the second half of the year is interesting but a hard one to invest on. Well, well continue to watch the data. Big e on friday with the markets report. Dow down 114 point as lows of the session. Steve liesman, thanks for the commentary. Buzzfeed keeping an eye on the Super Bowl Ads from this year, from the virals to the flops. Lets take a look at some of the most impactful ads of night and break down factors that influenced their reception. John steinberg, president and coo of buzzfeed as well as cnbc contributor. Good morning. Good to be here. The plot thickens. Theres an apple ad out. I know. Timely. You wanted to talk about the microsoft ad last night, why . I think that when i watched last nigh i was thinking what moved the needle for the companies. This is a commercial about cloud and enterprise where microsoft is historically been strong. It was about how microsoft is a company changing technology landscape. I think it was basically a welcome ad for nadella. Hes very much a cloud and enterprisetype executive. This will be looked back on as a formative ad in the trajectory. Really . I absolutely do. See it in perhaps greater detail because you understand the references. To me, it was just another feelgood ad about technology 30 years on from the great apple ad. Right. It was a lot of footage of hospitals, health care, whether there a ton of i. T. Spend, high lied connect, had hardware device, one of most successful invasions in past decade and positioning themselves were going to win in corporations. Corporations are battleground 2014. For me, i imagine that the ads that succeed the most are generally those that tell an underlying truth that consumers can discover. I happened to go into radioshack saturday, my god has radioshack changed and i watch the ad, hey that works because maybe people will go in and realize theres a story to tell. Im not sure that theres a greater realization around what microsoft did. I think whats interesting is, these ads hit everybody, right . Maserati ad, everybodys wondering why did maserati do any. Carl quintanilla discussing it on cnbc, 9 20 in the morning, monday after, right . Everybody on cnbcs a maserati potential buyer, right . It works. Things are hitting everybody and the microsoft ad is hitting all of the people who work in enterprise, people potentially stock buyers saying this is where were strong. Theyre not going to argue for phones, not going to argue for search. This is where were strong, its truthful and rings realistic to me. Interesting. What is the rebranding, what is the idea here that the new ceo can take and run with in . What is the new face of microsoft . Theyve been so behind in so many different products. We saw something in all of the ad was applies to microsoft as well, the sort of post modernism in the advertising which is, acknowledging the fact that its an ad, being truthful about what the companys good at, what theyre offering and pulling the sheen off of it, so to speak. We saw this in tmobile ad, in the ford ad talking about double length of commercial. We saw this in some of the bud light ad, behind the scenes punking. When we talk to investors and consumers, lets be candid about things. Its an interesting juxtaposition, isnt it . One of the great tv events were talking about traditional advertising. And youre sitting there as a social media news guy, i mean its a juxtaposition. Yeah. And the juxtaposition. Youve will restrained. Everybody knows whats going on now. Ads put on youtube before the game, right, most of them. Then there was the game and the twitter conversation about the ads and then the postgame. Actually, the fact that you buy the Super Bowl Ad and have a Super Bowl Ad is more impactful than the ad. Social medias winning again. Its interesting, also. New york times pointed out underscores importance of live tv. Little tired of the live tv thing in sports. Financial news, sports the last salvation of live television. Well done. Cnbc contributor, John Steinberg. All right. Toyotas out with monthly Sales Numbers. Back toful. Phil . Carl, bad numbers for toyota, lie the rest of auto months for january. Decline of 7. 2 , well below the estimate, expecting decline of 4. 1 . Announcing drop in january sales, toyota says january was off to solid start but the weather conditions slowed Industry Sales in key markets late in the month. Well hear this all day long from the auto executives. Weather impacting january sales. Again, toyota down 7. 2 last month. Back to you. Phil lebeau, thanks for the numbers, all about the weather. Merger with bats closing today by volume. That would make it the Largest Exchange, sur passion the nasdaq. Well talk to bill obrien next on squawk on the street. Mine was earned in korea in 1953. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. [ male announcer ] at optionsxpress, our clients really appreciate our powerful, easytouse platform. No, thank you. We know youre always looking for the best fill price. And walk limit automatically tries to find it for you. Just set your start and end price. And let it do its thing. Wow, more fan mail. My uncle wanted to say thanks for idea hub. He loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. [ male announcer ] open an account and get a 150 amazon. Com gift card. Call 18883303136 now. Optionsxpress by charles schwab. A check on the markets here. Session lows, Dow Jones Industrial average down triple digits, 155. S p 500 down a percent. Nasdaq down 1. 3 . Disappointment in the manufacturing number, weakest read since may 2013. The market flash. Sheila . Well, i have a winner for you right now, check out shares of pfizer, that stock the best performer on the s p on news experimental Breast Cancer drug succeeded in mid stage trial. The drugs considered to be one of pfizers most valuable products in development and analysts saying it could have annual sales of 5 billion if it came to market. Direct edges merger with bats, the company will make the exchange the largest by volume sur sp surpassing the nasdaq. The ceo of direct edge. Ceo direct edge the president of bats which is the merged company. Bill obrien joining us, been here many times on cnbc. What does it mean to have a merger of stock exchanges . How important is it . Why should they care . District edge and bats two Great Exchange operators for several year but was we have complimentary strengths. You saw the data in the u. S. , the Largest Exchange operator in europe. That changes the Way Investors and traders look at market. How did l. It change the way people trade . What will it mean to have a big competitor to the nyse and nasdaq. Continue broad of the variety of choices. The biggest immake is area of market data. Investors are thought theyre seeing the entire mark when they look at nyse and nasdaq date tap taking in bats and direct edge, free for the user, theyll have a complete picture. Put up the full screen that shows you the breakdown by volume for january here. Bats and direct edge, not the final numbers, but as of now, neck and neck with the New York Stock Exchange, total stock market volume. Nasdaq is number three there, thats trf, the fourth one, trade reporting facility, where the dark pools report to and others a tiny percentage. Bottom line, bill, you all of a sud arent right in running with nyse and nasdaq for a major part of the volume. Trf, tell me how you feel aboutta, pools . Why do we need volume going to the unlit market . Whats your position. Generally, im not concerned than ebbs and flows with nature of volatility in the market. Whether youre an institution. Investor trying to get a large order done or retail investor, you can get a better deal, being on an exchange isnt always the best place for every order or investor. It causes concerns with investors. Dark pools, High Frequency traders, debated frequently here at cnbc. Is the average investor getting a fair shake in the market now . I think they absolutely are. Our Market Structure has been built on the premise of giving a great deal to the individual selfdirected investor, the person tapping on the keys with individual brokerage account. For buy side investors, the self, indirectly managed money, always looking for ways to get larger ors done. Its always been a challenge. We can work hard to make it better. One thing you dont have is listings. You only have a few etf listings. Is that going to change . Will you be a competitor for listings. Were not going to list the next generation of twitter soon but a great product for structured products, etfss, we can build on that with technology and costs. Ipos, the bats ipo aborted that didnt happen. Will we see a bats combined ipo in the future . Its a means to an end. Its not an end in and of itself. A great story, investors receive it well. If an ipo makes sense in the future, well do it. You wont see us announcing anything in the next 90 days. Poor start to february. Thoughts on the market. Its a period of consolidation and transition. With the transition of the fed, people will pull back. Ism number, disappointing. Bill obrien, now the president of bats. Congratulations. Well keep following you. Any changes in the Market Structure, ill be telling you about that. Bob pisani at New York Stock Exchange. Brutal commute in the northeast. Snow at it again. More storms expected this week across a large portion of the country. Jennifer has more for us. Reporter good morning to you. I tell you what, snow in philadelphia here coming down at a pretty good clip. A couple more hours of this left here. Im standing on independence mall, historical, Independence Hall behind me. And you have to admit, the snows much of a pain as it is for travelers and people trying to get to work and school, its gorgeous on independence mall. A heavy, wet snow. You can see how big flakes are around me. This snow is the kind that packs together. Really quickly. Its the kind that makes great snowballs. Also the kind thats heavy to shovel and thats a big concern we got. Its unlike the snow we were dealing with all of january from philly up to new york to boston. Those snows in january were the light, fluffy kind. Not this kind, its going to fall and cake like mud. Expecting 5 to 8 inches of snow in philadelphia. About the same up in new york city as well. Again, this heavy, wet snow, snarls the morning commute, all interstates running slower, speeds reduced, bridges as well. Airport delays and cancellations at major hubs in the northeast. You can hear sirens going, accidents are happening as well. Tough day because this is one of three more weather systems that we are tracking this week, sarah, here into the northeast. This one, though, likely to be the most snowiest, the next one might be more rain than snow come midweek. For now, from philadelphia, snow falling here on Independence Hall. Back to you. Never ends. Certainly beautiful. But creating major headaches. Thanks for that. Good snowman building kind of snow, carl. Yeah. Coming down, no question. By the way, new era has dawned, janet yellen, officially taking over for ben bernanke as fed chair. What can we expect from yellen from day one . Well talk to former congressman barney frank. Down dow 149, the lowest since halloween. Sound of spray paint] we asked people a question, how much money do you think youll need when you retire . 500,000. Maybe halfmillion. Say a million dollars. [ dan ] then we gave each person a ribbon to show how many years that amount might last. I was trying to like pull it a little further. You know, i was trying to stretch it a little bit more. [ woman ] got me to 70 years old. Im going to have to rethink this thing. [ man ] i looked around at everybody else and i was like, are you kidding me . [ dan ] its just human nature to focus on the here and now. So its hard to imagine how much well need for a retirement that could last 30 years or more. So maybe we need to approach things differently, if we want to be ready for a longer retirement. The dows down 139 points. Lets bring in ben willis. This looks rough today. It does, but its well worth the wait to see this market finally fall apart. Weve been looking for it for over section months, starting to get the correction, were in full correction mode. We had a little bit of a lift this morning in futures markets that really couldnt be explained other than a fat finger. But that being said, keeping an eye on the tape, we continue to pull back, and its not a bad thing. Why are you taking joy almost in the fact that the market is down . Because its necessary for it to be able to go higher by the end of the year. Its like trimming a rose bush. You dont want to cutaway the bloom but was the fact matter is if you want it to be healthy you have to make these moves. Ism has disappointed, going from 57 to 51. 3, new orders look weak, employment looks weak. Could it be were in an environment where the economys slow doing unas the fed also withdraws its money printing. Could it be the case . Absolutely. It could be the case. You also had, i think, a very important impact on china six months low reading on their pmi today. I think chinas been the most important economy in the world for the last five years and you need to keep an eye on that for the broader picture because thats the manipulation if the u. S. Economys slowing down, if the chinese economys slowing down, europes going nowhere, emerging markets are imploding, how can the market gain to yearend. Market, climb the wall of worry ahead of these expectations, point your finger at whatever you want to point your finger at, people want a reason for a selloff. The correction was going to come one way other another. If we point at ism numbers, yes, that may be the case. I think this may just be a seasonal, cyclical, and by the end of the year that will change. Im usually a bear, this is unusual. Thank you. Ben willis. Its a new era at the Federal Reserve. Janet yellen sworn in as new fed chairwoman. Ben bernanke on other hand joining brookings institution. How will the transition affect fed policy . Barney frank, a cnbc contributor. Good to see you. Good morning. Im not sure how much youve been able to read this morning but the ism number was no good. Follows durables which was no good. Jobs number, of course, no good. Trying to taper. Is janet yellen running into a buzz saw . Its not a buzz saw. But theres uncertainty. Remember, the decision to taper i was a supporter of the expansion that ben bernanke put into place with overwhelming support from the entire open Market Committee with one or two dissenters, and i think its worked well with one of the negatives predicted they always have the option of tapering off the taper. Theyve never said this is an automatic thing. Yeah, we are in a situation where growth hasnt been what we wanted it to be. Its obviously too early on the basis of one set of numbers to say that. Youll see continuity. Continuity will be that, well, janet yellen clearly agrees with ben bernanke and i guess with any rational economic observer it would be better if fiscal policy addressed this, that they will do the best they can. As i said, theres nothing for ordained about the pace of the taper. It may be if things are worse than we expect, they will not taper at the same pace. You know, clearly, should get a lot of questions when she testifies on february 11th about the taper, about the economy. But i want to ask about the feds role in regulating banks and specifically your expertise here, macro prudential Risk Management here from the Federal Reserve. Does the fed need to step up when it comes to regulating banks, when it comes to monitoring Financial Stability and under its newfound powers, under dodd frank how much of a challenge is this for the chairman . First, i want to thank you for nostalgic moment in the circles, macro prudential not often discussed. Its an important concept. We should not lose sight of it because that means that obviously we dont just regulate institution by institution but we focus on what this can mean for the economy as a whole. I think the fed did have to step up, it had a kind of laggard role before. I think that they are doing an appropriate job now. Its also the indicate that we have changed the landscape in the legislation. The fed no longer has the dominant role that it used to have even in the macro prudential area. Youve always had control of the currency and the federal deposit insurance corporation. But you now have the board of regulators, the fsoc, Financial Stability oversight council, and i think theres a clear step up in the level of oversight in whats happening, capital levels are up, Derivatives Market is better regulated. So, yeah, there was a need for the fed to step up the pace. And i think theyve essentially done that. Well get a jobs number on friday. Big think piece in the journal today about the labor slack, the slack in labor market, Unemployment Rate coming down at such a rapid pace, that may be her single biggest worry or challenge, would you agree with that . Yeah. Look, one of the things and i talked about this before on the show that hasnt gotten enough attention, our central bank, Federal Reserve, has what we call the dual mandate, unlike almost any other central bank in the world. They are equally to focus on unemployment and price stability. People forget that, some who are have criticized bernanke and others worrying about employment. Thats part of the law. Many republican colleagues wanted to chiwant ed change that law, ben bernanke with his george bush credentials, standing out so strongly against that, diminished. But, yeah, that will, i think, and janet yellen clearly with her background, very much agrees with that. And that, i think, will be one of the focal points in which i think she will make clear again she takes seriously equally the parts of the fed mandate that say you dont inflation and also you want to maintain a decent Employment Level and the Current Situation of those two issues, the far greater risk is excessive unemployment. The inflation monster has not yet appeared, despite a lot of the predictions it would because of the quantitative easing. Mr. Frank, surely it has to be price stability and employment overtime, not at any one moment. And we have no idea what the Downside Risks may be moving forward of having such a very swollen fed Balance Sheet which still continues to grow by the day. Were not even sure if they can exit from the printing of money today. Well, i would disagree with you as to the relative fears. I guess what we have is an unEmployment Situation which is unsatisfactory, a rate thats too high, Participation Rate thats been driven down. So we have the reality of an Employment Situation that need as tension. We have potential of an inflation situation. I disagree with you that they would have trouble tapering. I think theyve been showing ability to do that. But the other point i would make is this, ever since the days of the fiscal crisis 2008, there have been predictions the activism of the fed that bernanke has led, inflationary impacts, and none of it has happened. It doesnt mean it can never happen but it does mean that focus successively on that potential banker in the face of experience and ignore the real problem we have in employment would be a mistake to me. We could have a long discussion about janet yellen, congressman, but on twitter, all they want to talk about is your beard, which continues to be very handsome. Well see you next time. Thank you. My husband will like that endorsement. Barney frank. We can talk about macro prudential supervision as well. Jawatching jcpenneys tweets . Preplanned. Total stunt for one of its campaigns. More to the story . How effective was that . Can you start tomorrow . Yes sir. Alright. Lets share the news tomorrow. Today we failrly busy. Tomorrow were booked solid. We close on the house tomorrow. I want one of these opened up. Because tomorow we go live. Its a day full of promise. And often, that day arrives by train. Big day today . Even bigger one tomorrow. When csx trains move forward, so does the rest of the economy. Csx. How tomorrow moves. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. Were here to help you turn your dream into a reality. To manage your money. R guy around 2 percent thats not much, you think except its 2 percent every year. Go to e trade and find out how much our advice and guidance costs. Spoiler alert. Its low. Its guidance on your terms not ours. E trade. Less for us, more for you. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Another ugly day on the stock market. The cme group in chicago. Check in with Rick Santelli. Good morning, carl. We welcomed 2014 in many ways in surprising fashions, whether it was direction of the markets or where some of the problematic areas were going to occur. And with regard to the eplerjing markets, i dont think that was a secret. I think on an objective, very macro level, a catalyst of global liquidity retreating, even if its only the u. S. , we dont see china retreat as much as many think they will or the ecb or the ongoing qe programs and potentially larger type buybacks that the japanese are embarking on, its an important aspect of 2014, it was the end of ben bernanke, janet yellen, of course, takes the helm today, and there really hasnt been a huge shift in the strategy. But the qe ending is a big deal. Main problem is, many believed, as i do, that the emerging markets were aggressive in addressing this, even if it wasnt something that was pretty and unlike times of the past in the 90s, maybe would stablize. But its a twofront Economic Situation developing. Truly. If we look at the way we finished out 2013, whether it was Third Quarter gdp or even Fourth Quarter gdp, sequentially weaker but a solid number, the issues always been, its not impossible, its not even hugely difficult, to create positive economic course power. The real trick is sustain ability, weve seen this movie before. Lets show the s p cash chart, s p 500. Since about midnovember. So the second front is our own economy against the backdrop of these other moving parts, and nothing says it better than this chart. Weve been knocking at door on the support between 268 and 12 1268 and 1270 for quite a wheel. Many believed its a matter of time before we start to go through. I dont disagree with that. Look at data today, with regard to the u. S. We all know that the end of last year one of the things that was difficult to handicap was the inventory ballooning. Indeed, that was a pretty good deal. But as i look at employment, which is weaker in the report, what i want to concentrate on is combination of new order and inventories. Second month below 50 at 44. Know orders dropped to 51. 2. Now, if we get another one of these retrenchments where were growing but not at the pace as we built in, when you add the twopro tw twofront picture with equities and carry trade, its not like what we havent seen in january wont have some legs moving into the first quarter. Weve cut our losses, down 116 on the dow. Lets get over to sheila for a market flash. Shares of fire eye, down more than 7 today after the company said it was going to be doing a secondary offering of 700 million. Remember, this is one of the hot ipos of 2013. Over the past three months the stocks up 75 but today taking ahit. Beer drinking down among people under 30 with preferences straying towards liquor. Bud light attempting to reverse that and started with last nights super bowl. The brand may be on to something. John steinberg will explain, next. Be a victim of fraud. Fraud could mean lower Credit Scores and higher Interest Rates when you apply for a credit card. Its a problem waiting to happen. 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According to a survey, beer drinking aamong those younger than 29 fell from 71 in 1992 to 40 20122014. This Super Bowl Ad tries to gain back the share through schwarzenegger, lalamas and othr things and it seems to be working according to John Steinberg. A cnbc contributor. Why pick this out. I tried to pick ones that made sense from a corporate perspective, what were they trying to achieve . 1996 the liquor industry lifted their ban on television and radio. Liquor sales have gone up substantially amongst 18 to 30yearolds. With the bud lite commercial, bud lite can be for the night out it doesnt need to be a liquor and they picked a lot of themes that work well with people. Webbie type humor with llamas, behind the scenes punking of an average guy they picked out, behind the scenes clips. Makes sense from a story narrative. The millennial seems to be key here. Its almost genx. The matrix ad done by kia, matrix is 15 years old. Arnold schwarzenegger is someone people know largely as a governor who are watching this commercial. Yes, but ian rap pa port and his 15 minutes of fame. I know. I think the realness behind the scenes, this idea that beer is what you should be drinking instead of vodka or scotch plays well to what buds trying to achieve. Interesting they had another ad about a bottle that has a twist top that you can then reclose. That was considered one of the worst ads of the night. Right, the puppy one was one everybody loved as well. And the puppy and horse falling in love struck me as something theyd done time and time again. But usa today ranks this ad the puppy ad is number one for usa today on their panel, this is 26th. So theres a big difference between perhaps the intellectual kind of side of things and what might be viewed as being a hit in the midwest with kids who are 18 to 21 who actually want a decent night out like that surprises and the rest of it. Thats a fair point. This has close to 10 million views on youtube right now. I think the puppy one was in the 20s. You know, you make a fair point. This one might be a little overintellectualized. I think this isnt intellectualized. I think this is appealing to those people, to a 17, 18yearold who just wants to have a night of their life courtesy of bud light skbl and to the point about television having problems. You know i love to talk about that. The ad didnt work as well because they had too cut it into two parts to put it on tv. When you watch it on youtube you get the whole narrative, the whole behind the scenes thing as well. So it loses something when it was cut for television as well i think. We are going to get twitter earnings this week. Yes. And the number of tweets maybe because the game was so lopsided might have seen better growth from year over year. And the articles i read facebook had more public interaction. But facebook is a much larger, five times the size of twitter. I think what well see with twitter will be a clear revenue beat. I think the number is so low, the expectations are so low, the question is in the whispers how much is it run up, wheres the whisper number and what will the stock do based on that beat or miss. Are you coming back to talk about another Super Bowl Ad . One more. Joel steinberg from buzz feed. Virtual reality like youve never seen before. A closer look at a new kind of Virtual Reality that lets you exercise in a completely different world. Thats next when squawk on the street returns. Liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. [ male announcer ] introducing fedex one rate. Im bethand im michelle. And we own the paper cottage. Its a stationery and gifts store. Anything we purchase for the paper cottage goes on our ink card. So you can manage your business expenses and access them online instantly with the Game Changing app from ink. We didnt get into business to spend time managing receipts, thats why we have ink. We like being in business because we like being creative, we like interacting with people. So you have time to focus on the things you love. Ink from chase. So you can. That its given me time toabout reflect on some of lifeseen biggest questions. Like, if you could save hundreds on Car Insurance by making one simple call, why wouldnt you make that call . See, the only thing i can think of is that you cant get any. Bars. Ah, thats better. Its a beautiful view. I wonder if i can see mt. Rushmore from here. Geico. Fifteen minutes could save you fifteen percent or more on Car Insurance. If youre just tuning in, a big disappointment on the ism manufacturing index. Not as robust as we hoped. The market is starting to head down again. Were now down 143 points. Oil is down, gas is down. Interestingly enough gold and silver are slightly higher. This perhaps the theme that maybe the fed is not going to be able to exit its money printing as it had intended if the data continues to be weak. All right. Forget simply strapping on a headset. Our next guest is on a mission to get more than just your head in the game. A 360 degree omni directional treadmill allows gamers to be fully immersed in their environments. The founder and ceo joins us this morning from houston. Yon, good to have you with us. Good morning, carl. You showed this at cvs in vegas. It shows you to be totally immersed in the game, but you wear special shoes and a harness. Walk us through what you have to do. Thats right. With the omni youre able to walk, run and jump in 360 degrees which puts your mind and body into the video game. It comes with a harness so youre safe, comes with special shoes. And you get on to the platform and you play the game and youre part of the video game. The treadmill itself is sort of were looking at pictures of it here. Sort of concaved. I guess that allows you to simulate the actual mugs of running . Thats right. The omni is an omni directional treadmill but eliminated all the moving parts. So were using a low friction surface on which the user walks and with the shoes you can walk in every direction without sliding left or right. The objective is to mimic a natural gait. I think it ships in may. Walk me through sort of price points and what demands been like so far. Weve sold close to 3,000 so far. We had a Kick Start Campaign a few months ago and raised 1. 1 million on kick start. Reached our goal in three and a half hours. The first units are planned to be shipped in may, thats correct. Its kind of wild stuff. Im curious about the outlook for the industry in general. You say theres a revolution in Virtual Reality. I know that Mark Andreson and others have been in on this. Is this the year the industry comes alive . I believe so. A lot of market comes this year the revolutionary head display gets a lot of attention. So Major Players are expected to follow suit. So we believe towards the end of this year i think virtual will make a big push towards becoming mainstream new medium. Anybody whose been in a simulator of any kind knows the dangers of motion sickness when your brain is being tricked into believing its somewhere its not. Is that a factor with this machine . The latest prototype at cvs solves the problem. Its all about fast accurate response time. We believe its a soft problem. Do believe fall over in it . Do people fall towards the bar . It looks like that might be possible . No, theyre actually completely safe because a support harness that youre wearing around your waist keeps you in place. You cannot fall on the omni. As this industry evolves, is there any use for it beyond just gaming and perhaps exercise . Any other sort of practical uses for Virtual Reality . Certainly. Gaming is just the beginning. We get a lot of calls from for example the military, for military training and simulation, health care, physical therapy, even Architectural Design where you want to use Virtual Reality for the design work and the architectural world. I can tell were going to need to get one of these onset, jan, in a hurry. Our thanks to you and good luck with sales this spring. Thank you very much. Joining us from virtuix omni in houston today. Meantime watching the markets all morning long. Dows continuing to fall within a range of about 150 points. Some of the emerging markets and foreign markets are more interesting today. Russia has officially entered correction mode. By that we mean a 10 drop from the highs. Sarah mentioned earlier on whats happened with the nikkei. The closest to anything like that in the states would be the russell. Interesting. You want to go defensive. That might be the analysis. Utilities are doing well, small caps not so well in that environment. Wanted to point out last time we entered a technical correction here in the u. S. Back in 2011 during the european debt crisis. Weve only fallen 5 ish. The u. S. Is seen as healthier in terms of economy. The question is are some of the problems in the emerging markets going to spill over. Or has market direction changed, when you have so many days that are down, do you say this is a market going down now, not going up . See you guys later on. Well talk some europe in half an hour. If youre just joinings, heres what you missed earlier on. Welcome to squawk on the street. Heres whats happened so far. Youre not going to have great growth until we reform our tax code to make us more globally competitive. You know, were not going to have growth or mobility unless we are able to invest in education. I do think well get a clean debt ceiling bill. I just think people understand the consequences for the economy would just be so serious if that wasnt the case. Why most damaging tweet, frankly, was my daughter who said, dad, i mean, you know, helll hello. I took her to the game last year. Tickets dont grow on trees. Quick headline here out of dow jones, bernanke is going to join the brookings institution. Theres the opening bell. We told you theyd be weak and they are weak. Down 11. 9 for the month of january from general motors. A little tired of the live tv thing and sports. Thats the last in the Financial News and sports are basically the last salvation of television. I was a supporter of the expansion that ben bernanke put into place with overwhelming support from the entire open Market Committee with one or two dissenters. And i think its worked well with the negative predicted. They have the option of tapering off the taper. Good monday morning here. Lets get a check on the markets. Big miss on ism this morning. Third big economic miss of recent days after durables and jobs number. Thats pushed the dow down 150 points, s p is down to 17. We broke 1770, which many had considered some initial support. Verizon and at t falling sharply today. Tel kecom is the worst performi sector. Forced to provide the same discounts as tmobile. And at t plans to cut by 20 . Whole Foods Trading higher following an upgrade. Lets get you the road map for this hour. Another ugly day in the moments. Well talk to barclays about how to navigate all this volatility. And well talk to the ceo in waiting about the companys latest venture in to technology. How theyre changing the way you drink your cocktails. And the turkish finance minister is speaking out about the countrys dramatic Interest Rate hike. Well hear from him in a cnbc exclusive later on. First, we start on the markets. U. S. Stocks continuing to slide after their worst december for the Dow Jones Industrial average since 2009. The dow, nasdaq, s p in negative territory. We saw a weak reading on factory data here in the United States. A down day overseas as well. The nikkei in particular worth noting, japanese stock market entering correction territory technically speaking down 10 from the december 30th high. Lets bring in the expert. U. S. Equity and quantitative strategy with merrill lynch. And barry with barclays. Barry, you have to Pay Attention to whats happening overseas. Correction on the nikkei, correction in russia, is the u. S. Going to follow in these markets footsteps . I dont think the u. S. Is going to follow. I think the u. S. Is leading. The nikkei down 10 given that its at 26 volatility equity market compared to the s p, which is a 12 volatility equity market is about the size of the pullback that youd expect. And the reason i said that the u. S. Is leading is because this is all emanating out from the Inflection Point and Monetary Policy. Theres a really impressive history around this going back to world war ii. And it really just represents a point in time when the fed recognizes something that the markets have already priced, which is growth is accelerated to the point where they can stop easing and start normalizing policy. You typically get an 8. 5 correction, the standard deviation around that is fairly small. And, you know, in todays environment that permeates out through the rest of the world. So our way of framing this whole dynamic now is to think, well, well probably get something similar, roughly 8. 5 , means somewhere around 1700 on the s p. Typically lasts two to three months. At that point the rest of the world will probably stabilize as well, at least where they havent done serious damage to their economy by raising Interest Rates sharply in response to it. Japans obviously not going to do that. Their currency is rising, not falling. Barry, let me turn it over to savida, do you agree this is a normal adjustment period for stocks say a correction of 8 or so and the u. S. Will lead the rest of the world higher . You know, i would agree i think we could see some more volatility. To barrys point corrections have been around, big changes in monetary cycles. But i would point out that some corrections arent that unusual. So, you know, we went back over the last few decades and we found that 5 pullbacks happen on average about three times a year. So i think that what were seeing right now is just kind of a normal phenomenon. I do see this as a great buying opportunity for some of the Higher Quality names in the s p 500 that have sold off on emerging markets exposure or sold off because they have a whiff of some of these regions with dangerous signals. I think right now you have the opportunity to buy high quality names with global diversification at quite attractive price tags. At these levels here, guys, the dow is about 70 points from its 200day moving average. S p and nasdaq have a little more to go. Also around the lows for dollar yen. Barry, after auto sales and jobs and durables and ism, i mean, everything but Consumer Confidence it seems, is there still too much optimism . Does that need to be wrung out . Or is this about weather . Well, i think there is an incredible amount of optimism. When we started the year, when we talk to clients about what we thought would be the drivers for stronger growth through the course of the year, as we map those to the sectors associated with that, so for example a pick up in Consumer Spending mapped to the discretionary sector, you were hard pressed to find anything related to u. S. Growth that was cheap. In the case of discretionary, it looked decidedly expensive. Much of what has happened really was pulling forward all of this acceleration in growth already. You know, i agree that some things have cheapened up a bit, but not to the point where anythings particularly compelling. You know, you are going to have to work through the ebbs and flows of data. I think the ebbs and flows of data is ironic though. I would note same thing happened in 04. We had three strong payrolls, fed started tightening, we missed on payrolls two months in a row, it wasnt the end of the recovery, but thats part of the narrative that happens, carl, where people think the fed is taking the punch bowl away too soon. Its part of the dynamic that triggers the normalization reactions. Savita, do you think thats looking no, i dont. One data point does not make a trend. A couple positives were noticing in the data, cap x guidance this earning season has been better, suggesting companies who have been completely absent from the last couple of years of a bull market are actually starting to unleash their pursestrings. And that i think could be the next big driver for upside within equities. And i would also point out i dont think everyones optimistic. And i think that, you know, the evidence for this is still low allocations to equities. You know, were still climbing this wall of worry. Youve still got High Mutual Fund cash balances sitting on the sidelines, you know, waiting for the pullback thats going to be a better entry point. So i think that there is less of a constructive outlook on the equity market than everybody says. I think were still in that wall of worry phase where were looking at what could go wrong instead of what could go right. Yeah. Yeah. Finally, barry, lets put a number on something. 1700, is that when you get more interested . Oh, absolutely. 1700 would be 8 , thats the typical pullback. At that point i would expect measures of volatility, for example, which have moved up in shortdate e ed options, i woul look for the 12month options to move up and indicate people are starting to buy protection, buy that downside insurance. At that point i think youll probably have enough of what savita is talking about where people do truly get skeptical. And the data wont roll, i agree with that as well, and then well be set for a bounce. Yeah. All right, well, thanks for the perspective on this day where we are looking at session lows for the s p, nasdaq. Savita and barry, good to see you as always. As we talk about some of the falling stock markets, by the way dow down almost 180 points now, gold prices are rising. Jacqqukie deangless at the stoc market. Traders are saying the safe haven trade has been off the table for a while. Thats because quantitative easing was prompting up equity markets. Safe haven trading is back because we have weakness in emerging markets, concerns over china and the data here in the u. S. Not really supporting the equity markets moves higher. Now, the bulls are seeing some upside momentum here, but in order for them to really take the lead, theyre going to have to close over that key technical level, the january high for gold of 1280. 10. And traders are saying on the bear side were watching the key level of 1230. 80 to be able to see a downside leg lower. But again, i dont think were going to get there today. It looks like as long as the equity market continues to see this weakness, gold is going to continue higher. Back to you, carl. Jackie, thanks so much. Jackie deangles covering gold this morning. Janet yellen swornin. Steve liesman has more on that. Call her chair, not chairwoman. Yes, thats how she wants to be referred to. New fed chair janet yellen and predecessor ben bernanke with more on the situations they face rather than in their styles. Heres the reason, change is engineered in the fed by bernanke, with the help of yellen herself. I mean, the fed is more rules based now leaving somewhat less discretion to the fed chair. And where there is discretion in like how much say the chair gives to the committee, the thinking is that yellens going to be more like bernanke, more like than bernanke was to his predecessor alan greenspan. Some of the new rules, Quarterly Press conferences. No question really about the fed chair facing the press. A 2 inflation target made public. An unemployment target but economic forecasts every kwartder and now Forward Guidance. Bernanke grew up in south carolina, that gap though bridged by educations. Both received economic ph. D. S from ivy league universities. Bernanke and yellen spent considerable time in academia. Now, stan fisher was bernankes thesis advisor in the 1970s. They both come from a school of economics and a close relationship between high unemployment and low inflation. And believe in an active fed role in bringing down unemployment. They both do not see the eminent inflation threat from the feds 4 trillion Balance Sheet. One area where there could be some difference, could yellen be quicker than bernanke to use Monetary Policy to pop bubbles that she sees . Heres what she said about it in a november confirmation hearing. I think its important for the fed hard as it is to attempt to detect asset bubbles when theyre forming. An environment of low Interest Rates can induce risky behavior. And i would not rule out Monetary Policy conceivably having to play a role. Whatever the similarities, the difference will come in the challenges they face. If bernanke did his job, hes handed to yellen the task of reducing the stimulus he put in place at a time when the fed hopes to rely more on Interest Rate Forward Guidance than buying bonds. Yellen will have to navigate unwinding the big Balance Sheet while sustaining economic growth, bringing down unemployment and not spooking markets that shes moving too fast or too slow. And that is a very different job from the one bernanke did, sarah. Steve, my only question to you is quickly what is taking so long for the senate to confirm stan fischer with emerging markets in crisis modes front and center. This is his wheel house. I think you should get on the phone and immediately press the case for the need to confirm the vice fed chair, get the fed board up to full membership. I dont know, sarah. I dont think its an incredibly controversial appointment. Maybe the full package ends up being controversial. There are three nominations. But im not hearing from the hill, sarah, that theres a big issue with these nominees. All right. Start a petition. Steve liesman, always good to chat with you. Coming up on squawk on the street, markets in pullback mode, no question about it. More on the big stock movers. First, Rick Santelli, youve got to be watching the market sell off today. Very closely indeed, sarah. Thank you. Were going to bring in another trader from the floor whos watching it closely as well. What are we going to talk about . All the moving pieces, emerging markets, our own sustainable economic data, the global marketplace and more importantly, the carry trade. All at the bottom of the hour. In 1953. Sa afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Ask me what its like to get your best nights sleep every night. [announcer] why not talk to someone whos sleeping on the most highly recommended bed in america . Ask me about my tempurpedic. Ask me how fast i fall asleep. Ask me about staying asleep. [announcer] tempurpedic owners are more satisfied than owners of any traditional mattress brand. Tempurpedic. The most highly recommended bed in america. Now sleep cooler with extra cooling comfort on our bestselling tempurbreeze beds. Visit tempurpedic. Com to learn more, and find a retailer near you. Volatility is back. The vix is above 20. Take a look at the telecom sector. It is the worst performing sector in the s p 500. Sheila back at headquarters with more on that group. Sheila. Yeah, sarah. Tough day for Telecom Stocks leading the way verizon and at t. This is after at t announced its plan to cut prices on its shared data by 20 . Now, verizon of course losing ground on the feeling the company will be forced to provide the same discounts. Running at the top five in telecom, windstream, centurylink and crown castle. Back to you. Thanks. We have the dow down about 200. Lets check on things at the nasdaq with seema mody. Hey, carl. The selloff in equities definitely impacting the nasdaq. Were looking at the nasdaq now underperforming the major indexes down over 1 . When you look at the nasdaq 100 there are only ten stocks that are trading in the green. One of them actually happens to be apple. Apple is bucking the downward trend in the market. That stock showing some relief. Social media one of the bright spots in todays trade. We have Facebook Trading at a record high, pandora shares higher by around 4 after its price target was raised at cowen and co. And of course our eyes on twitter. Twitter reporting earnings later on this week. Now, in terms of where were seeing the weakness in todays trade, its really across the board. Some consumer names like Green Mountain coffee and then theres amazon, one of the worst performing stocks. That stock continues to move down into negative territory after its disappointing Earnings Report last week. Back over to you guys. Seema, thanks so much for that. The vix at the highest lev since i think late last year back above 20. Psychologically the depth of the European Crisis didnt seem like a lot, but where weve been over the past few months, that is just a shade above 20 which is obviously the high for the year. This as the Dow Jones Industrial average drops 200 points. Now down about 186 at this hour. We will continue to keep you apprised of what is going on in the markets. The selloff accelerating here after that ism manufacturing coming up here on squawk on the street. Well keep you posted on the market loss on the dow, down triple digits. What you need to know. Also about smartphonecontrolled cocktails. Reinventing the way you drink at home. Might need a drink after todays equity selloff. Well be back in a moment. Let me talk to you about retirement. A 401 k is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable, professional. Would you trust me as your Financial Advisor . I would. I would indeed. Well, lets be clear here. Im actually a dj. [ dance music plays ] [laughs] no way i have no Financial Experience at all. That really is you . If theyre not a cfp pro, you just dont know. Find a certified Financial Planner professional whos thoroughly vetted at letsmakeaplan. Org. Cfp work with the highest standard. Who found a magic seashell. It told him what was happening on the Trading Floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. Welcome back to squawk on the street. Serious concerns about the global economy, particularly emerging markets, weve seen in currencies, their stocks and bonds and now concerns about global growth. We want to welcome alex ricard, incoming ceo joining us live from paris. We definitely want to talk to you, alex, about your new initiative with technology and athome drinking. But first, since we have you here with your global footprint as the worlds second biggest spirits and liquor company, are you concerned about whats happening with Global Economic growth . And particularly the emerging markets. Well, listen, youll have the answer to that question next week as we announce our first half results. Right now were in a quiet period, if i may. So unfortunately i am not in a position to comment that right now. All right. We understand. And we did want to invite you here to talk about the ambiguitienburg project. An Exciting New Initiative where you use your computer or smartphone to mix cocktails. How does that work . So basically this guttenberg project is having a bar at home that looks like a newly designed, really cool and slick library. And it is going to be the first fully connected home bar. Basically you can have your own you can build your own cocktail at home. You have the recipe on your smartphone or your smart tablet. And the dosage is going to be exact as well. You know, the two key frustrations consumers have as they go out when they have a perfect cocktail with absolut or any of these brands is going home and trying to do the exact same perfect cocktail. And that device, the first connective device, will allow our consumers to have fun and enjoy doing this at home. Thats what we call the future of its interesting you say its not going to cannibalize sales already. What makes you think people are going to buy this in addition to the liquor bottles that theyre already having in their homes . Listen, its highly complimentary. If youre having a huge party with 40 people at home, obviously youll still use your bottles. But if youre having a small party with Close Friends and relatives and you want to have fun having your perfect cocktail or inventing new cocktails at home with your friends, it is the perfect device. You know, its been an interesting industry to follow lately. We saw suntory of japan buy beam. We saw abm buying back holdings in south korea. Is this your focus instead of going for acquisitions where its been pretty scarce to focus on innovation and Digital Technology . Listen, our strategy is pretty clear. Our strategy is all about premimization and innovation. I believe theres a lot of room for innovation in our industry. From a Product Point of view, but from an experience point of view around the product and from a Service Point of view. We had our innovation day last week and we basically announced that innovation so far accounts for 25 of our organic growth. And i can i think we can go beyond that. Well, theres the innovation part, theres also the m a part that sarah just referenced. I mean, theres only one s p stock thats done better this year than jim beam, thats harman. But on that suntory deal, i know youre in a quiet period, but generally where do you think m a in the space is going . Do we have a lot more to go . Listen, we dont indeed comment on m a. What we have stated we have a twofold clear position. Number one, organic growth through extension, innovation and preem mization. And secondly we have a financial discipline, which is to remain investment grade, which basically allows us to do bolt on acquisitions should the opportunities arise. Thank you for joining us with some color on your new strategy and on the guttenberg project. Alex ricard soontobe ceo of pinot ricard. Well get the bells across europe. Well get the close and impact on the afternoon session as the dow is now down 183. Back in a minute. And it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. Humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohns disease. In clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Ask your gastroenterologist about humira today. Remission is possible. In declining mode. Lets bring in simon hobbs as we count you down to the close in the uk and across continental europe. Good to see you again, simon. With the exception of greece of course, which is up over 2. 5 . There was a report in the german magazine over the weekend germanys third small loan from greece to the rest of the eurozone to the tune of possibly 20 billion euros to cover deficits over the next several years. The big picture is negative territory. And the data actually is quite good that we got out of europe today. But it was the data here that disappointed. And thats compounded the emerging market fallout. So you see that were down quite heavily in the banks bearing the brunt of that. Notably the italian banks. A lot of moving parts in the italian banks at the moment. Switzerland also way down in negative territory. Because of the weak data here, the euro had made an important break lower at the beginning of the session down towards 10week lows, but because data here in the United States is so weak on the ism, the euros bounced and quite substantially. Were now up a third of a cent. See how when the ism data came through at 10 00 how the euro made gains there because you may be changing the view on what the fed is going to do on the printing of money. And of course the big question this week is what exactly is the European Central bank going to do when it meets on thursday. A lot of discussion over the weekend. Potentially further small rate cuts on thursday, or they wait until theyve got a new assessment of the economy, new forecasts next time round. And of course dont forget the draghi raised the possibility whether its true or not that there could be some form of qe. The head of the Lufthansa Airline group, he has a dramatic view. He does notd believe the ecb should go anywhere near qe at the moment because he says the european economies are not weak enough. Take a listen. In mid to longterm perspective we feel that there is, and i feel that there is a substantial risk that the Central Banks who are flooding the market with liquidity wont be able to take it back. Or if it is taken back, then there are some even more serious consequences out of that. And that would be something which this risk i would have like to encounter. I think its significant when you get a Senior Member of the European Industrial community saying that so clearly. Hes actually going to be the chairman of the swiss pharmacy guy. This is a very important businessman, very clear no qe from europe. But of course hes a german businessman. Thats true, but with exposure and knowledge to a lot of different markets. Yes, but with a fear of inflation inherited with the germans in particular that we know so well. Now the question is of course do they need to fear deflation. Its not deflation. Its the fact that inflation will stay very low for very long. And therefore that doesnt pull any of those i mean, a little bit of inflation could do a lot of good in pulling some of these economies out of debt. Thats probably the bigger issue. Yes. Deflation is an issue obviously. Thanks, simon hobbs. Lets get to bob pisani and see whats moving on the floor. Just off the lows of the day and comment i made about weather impacting the markets is definitely happening. S p 500 dropped immediately at 10 00 on concerning economic news. Construction spending on the weak side. It was up fractionally in december, but november revised downwa downward. Then the january ism was weaker. So clearly weathers impacting the economy, its just hard to quantify it. I think the reason we saw such a big drop is theres now concern that the jobs number on friday will also be impacted on the cold. Raymond james had a comment about that today. Sectors, well, were weak across the board. The two sectors up on the year, utilities and health care, are the ones down the at least. Industrials Consumer Discretionary among the weakest sectors we have. Emerging markets weak throughout the morning, russia, indonesia, south korea, south africa, all down about 2 . One bright spots pfizer, twomonth high on the new Breast Cancer drug succeeding in a trial. At t and verizon are sort of weighing on the dow right now. Pfizers the only stock in the dow 30 thats to the upside. Take a look at the vix index. Weve been mentioning the fact that that cash part of the vix 19, is now way ahead of the futures prices further out here. And you can see the february futures are just about even with the march futures. So whenever this starts happening, you get unusual inversions in the curve here. Oftentimes in the past that signalled at least a shortterm bottom. If it gets worse, i think it will start getting more attention. Hope you saw the interview i did this morning with bill obrien, now the president of bats. This is a new merger we had in the stock market, bats and direct edge merging. We put up numbers this morning that reflected how january volume was up until january 30th. Now the updated numbers for january 31st, you can see nyse with a small edge but bats and nasdaq all 20 . The point is we have a new combined competitor out there, bats, which is now bats and direct edge combined as a formidable competitor for the New York Stock Exchange as well as the nasdaq. Bob pisani, volatility is up, stocks are down. For more on these markets, lets go to Rick Santelli in chicago. Rick, im watching dollar yen below 102. That is significant. It isnt only the dollar yen, sarah, its the euro yen and pound yen and rob on the end. Sarahs point is well taken. If you want to know whats going on in the markets, first chart, maybe the last chart every day you need to look at is the carry trade reflected by the yen currency. I couldnt agree more. We came into the year with the yen trading at 100, 405. Everybody had a global macro carry trade on. When you say global macro for some of our listeners and viewers. Im saying large hedge funds. All kind of going the same way. Right. The way they earn money is by borrowing short and lending higher risk assets in emerging markets and many other ways the equity market. And the fed and abenomics have they not . Because of abenomics and boj we have the plan, investors going alone with the plan, but we have the markets going the wrong way. What went wrong . January 23rd we had a few weak economic numbers out of weak economic manufacturing out of china. And one of the members of the Japanese Group in davos said they werent sure they would be able to continue the policy. With that shot up 2 and emerging markets fell apart. Lets look at a couple of things. First of all talking off camera you said the ism was weak, it stole some of my thunder. What did you mean by that . Stronger and little higher inflation, instead we have a slowdown Additional Data point slowing it down. And i was expecting the market to make a move for dollar yen to go through on 102 and it did. Trading on 101 and change. So basically three giant moving parts. We talked about it, you have the domestic u. S. Economy whether it can sustain some of the numbers we saw in the first half of 2013. Then you have china and the emerging markets. And last of course you have whats going on in part just based on the change of strategy by the fed. Which of these pieces is most important, and how can a viewer kind of keep his positions from melting downright now . I think its very difficult. Theres this very huge crowd of trade in the carry trade. And its causing exogenous factors in all the emerging markets. I think one has to keep the faith, but i think theres going to be more pain and may be pressure on the Central Banks on ecb or boj to come up with a new plan. Some other abenomics quotes, hard to say. If the world was perfect, if the fed and Central Banks did things to improve in tough times, they should probably pull that in. Pretty much they have all their lines out, right . And we have another issue developing, that kind of makes it dicey. If they reverse course, our central bank, i think the markets would have a problem with that. I couldnt agree. I dont see our central bank theyre doing what theyre supposed to. Our economy is improving, maybe slightly slower. It is improving. More of an issue in europe and japan and this carry trade. Very crowded carry trade. Thanks for taking the time today, buddy. Sarah and the gang, back to you. Thanks so much, Rick Santelli. Lets send it over to sheila and get a quick market flash. Check out shares of ryan air. The irish airline, which is europes largest by passenger numbers reported strong forward bookings and easing of intense price Competition Among european airlines. This is after the Company Reported a quarterly loss of 47 million for the period ending december 31st. Sarah. All right. Sheel la, thanks for pointing out shares of ryanair. Coming up, its been a snowy winter this year, but the season is not over yet. More snow is expected to fall in the coming week. In fact, lets go now to the weather channels jen carfagno. She has more. Looks snowy in philly where you are, jennifer. Sarah, yes, it is snowy here. We went from rain to snow earlier this morning about 7 30, 8 00. Its really been coming down. I have to say, believe it or not, this is about the lightest the snow has been in the past couple of hours. So im here in philadelphia. This is independence mall, very historic area. Around we have the National Constitution center, the liberty bell and many sites tourists come to. Behind me here is Independence Hall. And its just provided such a picturesque scene this morning. Tourists have been taking a lot of pictures, myself included, a great scene this morning with the snow. Now, its causing issues though. Weve got now 30 of the schedule at Philadelphia International has been canceled because of the snow. Delays have been ranging from two to four hours. And of course if you get on a flight, then youre lining up to deice too and that adds departure delays to your flight. Amtrak running on time, thats the good news. Septa hasnt reported any major issues. The concern is that well keep the snow going here in philly until this afternoon, about 2 00 or 3 00 things wrap up with the snow. But then tonight temperatures get cold. And so thats going to cause a whole new set of problems on the roads tomorrow here. And also this is just one of three systems were tracking this week alone here in ph philadelphia and northeast. Sarah, carl, yesterday was groundhog day, phil saw his shadow, legend has it that that means six more weeks of winter. And he was spoton this year. Not even 24 hours later winter is back in a big way. I keep seeing bill murray saying what blizzard, its a couple of flakes. Jen, thats a great reference. Exactly. Jen carfagno in philly covering the snowstorm. Thanks so much. The turkish lira had currency models last week and now russia is in correction territory. Well have a live interview with the finance minister of turkey in just a moment. [ bagpipes play ] make it happen with fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. You walked into the hotel as a 5 but when she saw the room. You turned into a weird 7. When she saw the rooftop pool. You went to 11 you two should probably get a room. Oh thats right you already did. At planet earths number one accomodation site. Booking. Com booking. Yeah but with less energy, moodiness, and a low sex drive, i had to do something. I saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or Breast Cancer. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about axiron. Coming up at the top of the hour, an ominous start to the month following the worst january since 2010. Some stocks now just too good to pass up . Plus, the wireless wars are heating up with at t slashing prices. Is its stock worth a look on todays decline . And with facebook hitting a new high briefly today and apple with a new Ground Breaking ad, whats in store for both widely owned names . Well trade all that at the top of the hour, sarah. Looking forward to it. Scott. The turkish lira in the wake of the dramatic selloff in emerging markets. Chief International Correspondent Michelle Carusocabrera interviewed him earlier today. Joins us now from london. So what do you have to say, michelle . Hi there, sarah. He spent a lot of time saying all the right things and then defending his boss who frequently says all the wrong things. The finance minister hammered again at the idea of the independence of the Central Banks, something that had come into question because the Prime Minister of turkey had pressured the central bank not to raise Interest Rates. He spoke about the Interest Rate lobby, the Prime Minister frequently blames what he calls the Interest Rate lobby. We asked the finance minister what is the Interest Rate lobby, do you believe in it . He says Prime Ministers misunderstood at this point that thats a phrase for domestic consumption and heart attackens back to turkeys last crisis to paying interest payments. Finally, we asked him about the issue of rule of law. Theres been so much interference into the judiciary, it looks like at least from the outside that the tax authorities are used to punish the enemies of the Prime Minister. Finance minister acknowledged they have a problem on that and that they need to work on rule of law when it comes to the business community. Unfortunately weve had a few, you know, experiences that doesnt reflect well. And we are aware of that. Prime minister, you know, if you go back a few years ago, i mean, you will see how progressive platform my party has and Prime Minister is progress i mean, he is in favor of that. Hes a reformist leader. Unfortunately, the reason domestic issues have been taken out of context. And that is reflected negatively on the understanding of where we stand. So its not exactly clear that hes willing to say to International Investors that they totally get it. You know, its we are misunderstood, things like that instead of coming out and saying, yeah, we really made some mistakes and were going to get it right. Guys. Great interview and a timely one, michelle. Especially given what were handed this week. Our Michelle Carusocabrera today in london. We are closely monitoring this market selloff. Were going to sit down with art cashin who was the one who warned us last week about 1770. And sure enough when we broke that this morning we fell quite a bit. Were back in just a moment. In 1953. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Bulldog you know, not all heroes wear capes. Bulldog you know, some wear fur. And mattress discounters good deed dogs is here to help them. Meet yara. She helps veterans like marv stay independent. This is caspin. He helps wallace with things she cant do on her own. And goldie helps children with developmental disabilities, while suzie works with people in the hospital. You can be a hero, too. Give it mattressdiscountersdogs. Com, or any mattress discounters. Mattress discounters good deed dogs helping dogs help people. Keeping a close eye on the markets this morning. Dows down more than 200. Lets get over to sheila for a market flash. Hey, carl. Check out shares of ultragroup buying green smoke for a price tag of 110 million. Now, the deal also includes up to 20 million in incentive payments. Remember green smoke founded in 2008 and has operations in the u. S. And israel. Its a Smaller Company for altria, only about 4 million. No shortage of losers today. We are looking at session lows meaning the selloff in u. S. Stocks is accelerating. Which also means we should talk to art cashin, the director of floor operations here at ubs. Art, youve been warning about this as carl alluded to. How much is this the ism manufacturing number, concerns about the United States . And how much is coming from abroad, emerging markets and the rest of the world . Well, i think its probably onethird, onethird and onethird. Being technical that 1770 level in the s p once we broke that, we stopped there several times last week. We broke that and we went into a spiral. Interestingly enough for old fogies like me they tried to bounce after that and got stepped dead cold at 1770. So support often becomes subsequent resistance. Thats probably onethird of it. The ism is probably another third. And then the concern about the emerging markets, if you look at the yield on the tenyear, thats an important barometer today because it tells you that there are other problems about and most of that is the emerging markets. Threemonth low for the tenyear treasury. Were on the verge of breaking 2. 6. That will get everybodys attention. Wow. What are you looking to first this afternoon . The tenyear, the yen . How europe just closed . Well, i think a couple things. You recall that there was kind of a simple idiot trade for a while that with the fed doing what they were doing you shorted the yen and you went long the nikkei. And if you were that position last week, you got your head handed to you. So theres going to be some wounded hedge funds out there. Well see where they go. Im looking at 1753 to 1757. Thats an area of support thats got to hold a little bit here. If that breaks, it could also bring in alga grit m, im going to watch tenyear, if it breaks 2. 6, when and if it breaks 2. 6, i think it will send signals through the market. I wonder how much of this is flowdriven. What we saw last year into the nikkei, tremendous bullish call. It was the best performing market if you looked across the globe up more than 60 . So that was the one that went into correction mode today. How much is this just a reversal of all the flows of last year . Well, i think a good chunk of it because not only is it that reversal, but you have the carry trade breaking up. And all these people were speculating such low margin it was almost 0 and now thats coming back to haunt them. So well continue to watch the amazing thing of the fed tapering and yields going lower. So that tells you that maybe something out there in the forest we havent seen yet. Last week we were talking we knew the jobs number had been bad, we knew durables were bad, today ism also a miss, you suggest maybe they taper the taper. Do you think thats likely . And what happens to feds credibility if she has to do that . I think theres a high likelihood they will taper the taper, but they will try and drag that out. Now, in about a week shes going to be testifying in what used to be called the Humphrey Hawkins testimony. And that will be her Maiden Voyage of give and take with congress. Well probably hear things about people realize that your qe expanded the break between incomes and tended to favor the stock market and people had savings. So shell have to defend a lot of things. But if we continue to see the economic deterioration, no way i can believe theyre going to keep tapering. And you would assume the fed wants to get back to rates as their key mechanism and get away from qe, but you think the data could be bad enough that they basically abandon that . Isnt it bad enough . We saw 3. 2 growth in the last read on q4 gdp, there had been signs our economy is in a better spot. But in the spillover from emerging markets, okay, let us not forget 1997 and 1998, the tie bot broke. The beloved and late mark haines said who cares and we found out three days later that a lot of people did. That spilled into the russian ruble, which by the way is getting shaken. Crushed, yeah. That led to the fall of longterm capital management. And nearly broke the American Economy down. So a remote and lightly traded currency almost took the world for a spin. And you see a lot of parallels right now . I see a lot of potential right now. There is that interlinking youve seen it over the last week. I mean, you come in talking about the turkish lirlira, next thing were in hungary. Next were talking russian ruble. Reminds people also of what we suffered through in 2008. You dont think those dynamics have been dliluted a little bit as pegs have come off, learned harsh lessons over the past years. I can only point out to you that were still suffering from some of it. Now, maybe theyll be able to walk away in peg, but the tu Turkish Central Bank took a major shot with Interest Rates. And they heard from the currency markets. Well see that. Ask about the vix. Is going long volatility the easiest bet right now . Im not sure. Im not a big fan of the vix. I know a lot of people believe in it, but i think it has lost some of its credibility over the last four years. Id rather watch the yield on the tenyear. Thats a big market. Thats a lot of money. And it tells you a great many things. All right. Well have to watch the data as the fed said its datadependent, its focused on the use, focused on its dual mandate. Friday will be a tradeable one, right . Yes. I think you see people coming in betting slightly bullish on that hoping they get a good number and figuring if they dont get a good number, theyre going to have a get out of jail free card. And the weather. Yes. Dow had 30 100point drops last year, 30 all yearlong. So far this year weve had seven. Yes. Yes. Weve done a great many things in january that we didnt see much of last year. Yes. This is certainly a different year. Art, thanks a lot. Well see what happens this afternoon. Art cashin nice extended chat with art which is good to have on a day like today. Dow is down about 218 points. That does it for us here on squawk on the street. Stay tuned for scott wapner and of course the fast money halftime. That is coming up after the break. Weekdays are for rising to the challenge. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. Fifteen minutes could save you fifteen percent or more on Car Insurance. Yeah. Everybody knows that. Did you know there is an oldest trick in the book . What . Trick number one. Lookest over there. Ha ha. Madeest thou look. So endeth the trick. Hey. Yes. Geico. Fifteen minutes could save you. Well, you know. Welcome to the show. Im scott wapner. Daily deals after a brutal january and a rough start to this month. Are some stocks just now too good to pass up . 30 years of mac. Apples back with a Ground Breaking new ad. Can the company get its creative mojo back. Cara swisher joins us right here onset with her take. Wireless wars, at t slashes prices, the stock is suffering as a result. So what does it mean now for this widely held name . Lets meet todays starting lineup. Pete najarian on whether the correction is about to get a whole lot deeper. Stephanie link on key earnings to watch. Josh brown on where he sees opportunity today. John najarian on the surge of volatility and a surge it is. Steve grasso on the floor. Sarah on japans correction and what it means for that trade. And Paul Richards on the state of chinas economy, what that means to your money. Thats where we do begin with stocks beginning this new month much like they ended the last one, sharply in the red