Transcripts For CNBC Squawk On The Street 20140219

Morning as the violence in kiev has left at least two dozen dead. The roadmap begins with netflix youd over verizon as the primetime download speeds allegedly slow. And lets make a deal, cigna jewellers agreeing to acquire zale for 21 a share while one wall street firm suggests walmart should pick up Family Dollar. First up netflix has a bone to pick with verizon this morning and its fios service, according to the wall street journal, the average prime time speeds fell 14 last month as netflix is rolling out a new season of house of cards theyve been in dispute with verizon and other broadband providers how much content theyll carry without paying additional fees. It is sort of a story, david, simon, of two companies but with broad ramifications as we see other deals coming down the pike. Without a doubt. We know this is only going one way which is up as Broadband Usage will only continue to increase as more and more people stream. There are statistics that say 30 of the streaming that takes place in prime time in the u. S. Is related to netflix. How much capacity youre using and the move to high def by netflix, for example, using more bandwidth, its going to be a contentious issue and one were with for some time, who pays the freight . Should it be the carriers who have to continue to upgrade their networks to handle the increased capacity or should netflix and others who are providing the content using so much bandwidth chip in as well . If you read the article it looks like Reed Hastings is out on his own. The article says google, microsoft and facebook have already been paying additional fees north for their carriage to be taken. The deal apparently, the implicit deal on the internet is you dont need to pay extra penalties, extra fees provided as you are shich ipping out as data as you are bringing in and in netflixs case they have not. And the fees potentially should be paid. At the same time our Parent Company comcast, of course, the Largest Cable Company in the country soon to become programs if it is, of course, the deal to acquire Time Warner Cable is approved even larger has agreed to Net Neutrality under this deal. Even though it doesnt have to. Because it is such an important issue at this point for the consumer at home who cant suddenly get to watch breaking bad or house of cards its simply a frustration. But its something thats going to play out financially over time and one has to wonder what netflix is going to be able to do to stave that off and or handle the potential impact of higher feef eer fees. Which makes some people argue that netflix has more to lose than the providers. You would agree with that, im guessing. It would seem in the case of the journal, it would seem that would be the case. Are you going to rip out your broadband provider or simply say, all right, this is not a Service Working for me . Let me put it this way saturday night when i was watching house of cards its buffering so frequently that i actually gave up watching it, if i was repeated would i still be a netflix provider . You got to go up to the higher speeds, thats all. I probably already have that. You may. Do we have a sense of how much it cost to build out the networks the pipes get a little more width . Its billions. You are talking about what theyve already spent. They already do. Listen, its still a great business, thats why comcast wants to get bigger and once you sign up a new customer after i dont know what the payback time is but then we are talking significant money even without video, of course, that is the larger concern here and this is part of that overall trend that weve also talked about so often, socalled over the top where you only become a broadband provider because people can get their video options via other avenues. Although in this case, if broadband is not able to do that, maybe you keep them as a video customer. You have more reason why as a distributor you perhaps want to crack down or not provide the necessary speeds. Yeah. Turning into a rich soap opera thats far from over, no doubt about that. It is indeed. Blackberry Ceo John Chen is sounding off a tmobile after the wireless carrier emailed customers last week pitching them free iphone 5s and calling it a great offer for blackberry customers. In a blog post chen called tmobiles offer clearly an inappropriate and ill conceived marketing promotion. He also thanked blackberry customers for their loyalty. Yes, blackberry is still out there. Feisty. There are a number of investors who are somewhat constructive on it, not that they believe that blackberry as a device has a future but theres a lot of intellectual property at the company and this is a guy who has successful turned around other companies particularly sybase in the past. Im hearing positive pitches at least of why you might want to own blackberry. We get a disclosure that thats right, loeb is one of the investors there and a few others. You know, when it comes to tmobile, theyre just being so aggressive that i think you have to look at the larger landscape, all right, theyre attacking blackberry, but this is all part of bringing prices down and really we have yet to see the full response from the verizons or the at ts, weve talked so much about that in terms of what theyve been doing and how aggressive tmobile has been. And i wonder, you know, ledgers been aggressive on marketing, on promotion, on smack talk. On crashing parties. But blackberry might be the first who has nothing to lose by responding in a way that maybe at t cannot. You know . I just wonder what the subs s subsidies are, if you are get an iphone for zero dollars down, switch now, does that mean apple is giving tmobile a better deal . How does that work out . No. I dont believe so. I dont think thats the case. Thats a you are just taking less margin. Theyre being very aggressive which goes to the larger conversation that weve been having for some time as to whether the fk and the department of justice would allow for current competitors in wireless become three. Because we know that softbank which controls sprint would love to do a deal to combine with tmobile in some fashion, not clear how that would be accomplished, and yet faces considerable potential opposition from regulators. This only increases that. Every day were talking about legere its working for this guy. I agree. And hastings, too, the disrupters are coming into business and were finally getting some real contact. I mean, in tech especially, its becoming more and more of a contact sport. Having said that, tmobile said it will fast track anybody who wants a blackberry by the end of the week. There was a slight climbdown there, just a slight one. Housing starts dropped 16 in january the biggest drop in three years. We want to bring in andrew berkeley, the managing director of institutional portfolio strategy at oppenheimer, and good morning to both of you. Good morning. Lets talk about the Housing Starts. You look at permits december to january, didnt change much, but starts themselves really did. Is it weather . Yeah. I mean, i think a lot you have to attribute to the weather. We got an Interesting Data point from the architectural billing point which tends to be a better leading indicator in terms of construction activity. I think were still generally going through the soft patch in terms of the weather. The data was probably a little stronger a few months ago before the weather inducement and now we are seeing a bit of an echo effect. But i think you can attribute it to weather. Some economists have brought down their gdp estimates to one. If some of this can be made up later and some of it cannot. How many are we really losing here macrowise . From the weather . Maybe not. 0. 1, 0. 2, 0. 3 percent, its more than weather. The thing i look at most carefully are the Single Family permits and those have flattened the last six months and dropped the last two months and those are not affected all that much by weather. Theres something more going on than just weather. Really . What do you think it is . Well, i think its probably these obstacles that builders are saying that they cant get credit to build, to develop land and they cant find a good, qualified, trained workforce, so they ra they want to ramp up but they cant and they want to ramp up but they cant build homes. That was sort of behind the nahb yesterday, right . The biggest decline in that index ever. Thats correct. Thats what theyre saying and i think thats whats showing up in the permits numbers. Let me just pick that point up. It would seem to people who have watched the unemployment data or the employment report come through month after month inconceivable that you couldnt have sufficient supply of labor within construction, because construction has really lagged. Its been hugely disappointing. What do you think is going on here . Well, with labor, i think its having a trained workforce. We just lost a lot of capital in the last six years because we havent been building a lot of homes and its just going to take time to build, to train these workers, to what happened to all the other what happened to all the other construction workers . They didnt retrain as data configurers, did they . Some of them returned to mexico, some of them went into other trades. But weve lost these skills and its just going to take time to build them up, one or two years. I was expecting things to take off later this year, but it may take longer than that because of these these roadblocks that were running into. Interesting. Andrew, meantime, were seven someodd points from break even on the year on s p. Weve repaired some of what we lost. Is that because people are realizing weather is ephemeral . Yes. I think it gets back to the idea that the economy isnt growing at the 3. 5 and 4, its the steady trend state and were coming back to that now. I think Interest Rates have backed off a little bit and thats helped. Every time weve gotten up 3 on the ten year, we know the market has gotten a little fidgety around that and we think we can climb above 1900 and 1950 as the momentum picks back up the volatility will be here as we go through the ebb and flow. And were late cycle, no doubt. Andrew, patrick, thanks, guys. Talk to you later on. At least 25 are dead and hundreds are injured in the increasing violence in the ukraine. Jim maceda is in moscow with more. Jim, these are extraordinary scenes for many people given where we are. I mean, this is violence in eastern europe. This isnt north africa. Reporter well, thats right, simon. And ill tell you what looks like an insurrection in kievs Independence Square at least overnight and into this morning has now for the time being turned back into a standoff between protesters and riot police. Those police are coming out now in larger numbers. They control much of the square, after as you say a full night of extraordinary pictures, of protesters with stun grenades and Water Cannons being hit by those police. Many of the fires that we saw all night longer also still burning tonight as we approach darkness and being used by protesters carrying themselves stones, clubs, and firebombs to hide behind. But under pressure from both the u. S. And european officials and the pope to end the violence and return to the negotiating table, prorussian president has remained defiant and warning opposition leaders that theyll need to be careful because they will be treated accordingly if they dont come out publicly and denounce the radicals amongst those protesters who have reportedly killed up to ten policemen by gunshot. Theres a lot of talk about a new round of talks between both sides. But its really hard, simon, to see how either side can find a political compromise given all the vie leolence that weve seed the mistrust. Meanwhile with ukraines economy in free fall, the fear amongst the protesters is that the president has really struck a deal with russian president Vladimir Putin promising to crack down as he did last night if russia goes ahead with that latest 2 billion bailout installment which, of course, he has done. So, its now expected that even a prorussian Prime Minister will be named by yanokovich even as Vladimir Putin here in moscow criticizes the west for meddling in ukraines internal affairs. Well see if its more of the same on the square tonight or if some lessons were learned last night, but we seem to be very far still from any kind of compromise, carl . Jim, how dangerous is this from your experience . How much will this shape the future, the geography and the relationship between europe, russia, and the United States . You know, how far back does the United States and the u. S. Push in penalties here given that you could push the Prime Minister further towards putin and that open question as to how putin will react once everybody has left the winter games . Reporter right. And putin, of course, does seem to be holding the ultimate cards right now. We saw that in the way the Ukrainian Government has reacted, the riot police have reacted. Just hours after that latest 2 billion tranche was made, that latest bailout was made. Putin can come out and criticize the west specifically the European Union for meddling in the affairs of ukraine, but at the same time but at the same time its clear that ukraine has run out of options. The problem, of course, is that its not just an east west situation. That would be too simplistic. It really is a story about ukrainians figuring out who they are and what ukraine is. Thats going to take nothing less than a major compromise between both sides and we just dont see any daylight right now. Yeah, its in a very strategic country. Reporter too far apart right now. Still to come this morning, tesla as you know is sizzling. The stock at record highs. Well get you ahead of the curve on the electric carmakers fortunes after the bell earnings. Also ahead taking the pulse of the consumer and economy, a live interview with the ceo of clorox who had interesting comments on currency effects today. Another look at futures. A relative weakness here and the nasdaq is going for nine straight, something its not done since 2010. A lot more squawk on the street from post nine in just a moment. [ male announcer ] we dont just certify our preowned vehicles. We inspect, analyze, and recondition each one, until its nothing short of a genuine certified preowned mercedesbenz for the next new owner. [ car alarm chirps ] hurry in to the mercedesbenz certified preowned sales event. Visit today for exceptional offers. With shares at alltime highs tesla is due out with Quarterly Results after the bell. And phil lebeau has what to expect and its already been a huge week. Its been a huge week, the numbers wont be as much behind the news of what happens with the tesla shares over the next 24, 48 hours, when they report earnings it will be for the Fourth Quarter and all of 2013. The street expecting a profit of 21 cents a share on 677 million in revenue. Keep in mind tesla has already preannounced Fourth Quarter sales and full year sales of the model d of more than 22,000, that was greater than expected when they announced it back in january. But the Conference Call is really going to be the focus after the bell tonight and what elon musk has to say about where this company is and specifically is he going to raise guidance in terms of sales for all of 2014 . Three catalysts to look for on this Conference Call, first of all, will there be some kind of announcement about increasing model s production . Remember, they already said they planned to be at 800 per week by the end of this year, do they have enough lithium ion batteries to increase that . Giga factory time frame, will he give us something more definitive. And china Sales Estimates theyve already begun basically soft sales in china, the first delivery will happen in the next couple of months, is there something more concrete in terms of how strong they expect sales to be in china . Take a look at shares of tesla, you said it at the top, this stock has been sizzling at an alltime high right now but there are some out with notes already, carl, saying this stock has gone too far, too fast. Theres a note saying it should be more in the 120 to 150 range as opposed to greater than 200, as you know this stock in the past has been extremely volatile and continues to be at this point. Thank you, phil, we know youre all over it. Hear what art cashin is expecting from todays trading action as we count down to the opening bell. Kcups runneth opens, brian kelley talks about the recent deal with cocacola. And the implied open is down 36 points. A lot more squawk on the street straight ahead. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Ive got a big date, but my sinuses are acting up. Its time for advil cold and sinus. [ male announcer ] truth is that wont relieve all your symptoms. New alka seltzer plusd relieves more symptoms than any other behind the counter liquid gel. Oh what a relief it is. Six minutes until the open for trade this wednesday morning. Art cashin joins us here at post nine, director of floor operations for ubs. Still a lot of commentary that were really flying blind because of the weather, would you agree . I wholeheartedly agree. The only hope we got today is three fed speakers and the minutes and the minutes unfortunately will be properly laundered so we wont get inside the room. Well only hear reflections of somebody reporting out of the room. But the data is so tainted now under the perception of the weather that not only is it difficult for traders to try to guess whats going on with the economy, its difficult for the fed, too. Would the economy what would be driving this market, though . Shouldnt it be earnings . Well, earnings weve gone through earnings season. Right. It was satisfactory. It was unspectacular. They did better on the revenue line that many people had thought. But i think right now it is the economy, and people are wondering where does the fed stand, will they taper the tapering. The economy shows some signs of weakness. Is it all weather related . And we think, as i said, not only are we flying blind, the feds flying blind, too. One tell today is options expiration. Yes. Youve argued bias is mildly to the upside . That is correct. When youve got that hint last thursday and friday, you had two up days, that usually precedes a move to the upside. The history of this particular option expiration is also tilted to the upside. But its always volatility, for example, last night we had 200 million to buy on balance, and somebody used it as an opportunity to sell into the market. So, things arent always what they appear during option expiration week. Meantime, if were trading around 18 times earnings, broadly where do you think the market is likely to go once we resolve our weather hiatus . As i said, i believe that the economy is showing some signs of weakening, so i think it might be a bit of a struggle here. If we get to new highs, that will force some short covering, but as far as the economys concerned, i think weve got some headwinds. Okay. Art, good to see you. Have a great day. Thank you. Art cashin from ubs. With all that in mind the opening bell just a few moments away. Squawk on the street right back. Through sunday, save up to 500 on beautyrest and posturepedic. Get a sealy queen set for just 399. 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We can do it now or just tease if you want. We can do that. Its rare that you see an analyst particularly a well respected one who already has a name come out and talk about a potential deal. Coming out with a note this morning thats getting some attention, saying that walmart should consider buying Family Dollar. The shares were up a bit. Theres a lot more history here which ill get into after the bell. Yeah. Its interesting to note, and david will walk us through some of the arguments that Credit Suisse is making on that front. Obviously a huge name too watch. In the meantime, we are, again, looking for the nasdaq to make a nineday winning streak something it has not done since 2010, sort of belying the volatility we are seeing with some of the other names and the dow continues to remain a laggard for the year. Theres the opening bell and the s p at the top of your screen. Down here at the big board, deutsche asset and Wealth Management and over at the nasdaq, a Pharmaceuticals Company doing the honors. Well watch some of these things. How about zales, david . Cygnet buying 1. 4 million and the stock opening up 40 . And signet will be up as well. This is one of the stories of the market at this point when you talk about companies that are overcapitalized, that have been hoarding cash and put it to work to do a deal and they get rewarded and signet agreeing to acquire zale for 21 bucks a share and cash, that is as carl said a 21 premium to the Closing Price yesterday and its immediately accretive, in the high Single Digits they are talking about hence why signet is up over 12 and it had been up prior to that because of corvex moving into those shares. Its a theme weve talked about. Its a driving force behind the deals that we are seeing although frankly were still seeing very few of them, though yesterday we saw that very large deal in pharmaceuticals, activists making a move to acquire forest labs, frx. And there the accretion numbers the analysts are still working them, but, again, very significant. It will be impacted by a much lower tax rate, another theme weve seen a lot are the tax inversions weve been talking about. You see it time and again. Golden gate is the seller of zales, golden gate, the private equity firm, to a company that was facing pressure. And golden gate selling eddie bauer to joseph b. Banks they are under pressure from activists and mens warehouse. Well see whether mens warehouse makes a choice and decides to come back at least 65 bucks a share to stop the deal from happening although you do have a 50 million break fee which is a large break fee for a deal of that size, but this has been the rule here. As for another potential deal that we have sort of talked about certainly when jims here, weve shot it around, that is, Family Dollar. No secret there that theres been a lot of conversation about consolidation of the dollar stores, main buyer thought to have been Dollar General. But this morning as we said, cs comes out with a note. Its well respected analyst michael ickstein and walmart needs to compete for its core customer in the fillin trip. And we think one of the Top Priorities for new ceo Doug Mcmillan will be to come up with a small store strategy and aggressively pursue it. He says why not Family Dollar. Which it believes is best positioned geographically for walmart should it choose to play. Even the idea of this may be enough to at least spark some thoughts on the Dollar General side. What i can tell you is at this point at least Family Dollar has not been in any talks, and when its talked to its shareholders, many of whom are fairly active, think nelson pellson and a number of others, its not indicated at this point at least a willingness to potentially doing a deal. It withstood the went through what might have been a potential proxy fight last year but nothing says that wont come and you connect by written consent here. Will that happen . Who knows. But this continued chatter about consolidation in the Family Dollar space no doubt thats going to continue. Some execution issues have been certainly a key when it comes to Family Dollar and some of its critics. But were watching both of those shares. Its rare that you see an analyst come out. Used to be they used to come out to try to get something in place so they could participate in the Investment Banking side. I was going to say that. But here everybody is lined up already with their advisers. Take it for what it is, some analysts coming out saying something interesting. If it happens, it will be interesting. Walmart does not typically do large deals of any kind in the u. S. It has pursued acquisitions of some size internationally but here in the states, as people well know that is grown organically, so this would be out of character were they to even consider it, but, again, it will continue this chatter about consolidation and back to the accretion and spending cash, cash is free kind of theme that weve seen in this market, which will be an overall theme i believe this year as we watch Companies Work capital. Even in the past few days obviously you brought us the comcast news last week and forest labs when you were out yesterday, and today a smaller deal. We are getting a deal with some weight with more regularity. A bit more regularity. Some would say how cheap money is and the accretion and the fact that the acquirer stocks go up when they announce the deal im surprised there arent more. People have come back to the comcast deal and wondered on the accretion question why comcast is not using some cash. To use more cash or any cash from the Time Warner Cable deal would bring more accretion yet comcast chose to make it a fully stockbased transaction. Which while perhaps stronger from a from a Balance Sheet standpoint in terms of not taking leverage up, is not as strong as it might have been had they used some cash. A couple other names to watch, keep an eye on garmin up more than 10 . Earnings 76 cents did beat by 14 cents but the news really was that almost half of their sales are now coming from nonautomotive products. We know the kinds of Competitive Pressures theyve been facing in the car market. Fitness, where basically you dont have a smartphone because, of course, its the Smartphone App that is the are challenging them. And lazboy, comes in 32 cents, misses by a nickel. They are blaming weather. Not just for sales, but production, distribution, logistics, getting their furniture to the retail stores. Comps up 36, but thats down from 98 in the previous quarter. That seems to make a little more sense than panera, which also blamed the weather. And potbelly, too, potbelly revenue was a miss as well, but well see a lot of this as the tail end of earnings seasons. If you cant get the staff into the stores to actually open successfully as weve seen with so many of the retailers theres an argument regardless whether people are actually out buying. Theres two sides to that. Yeah, thats true enough. Not sure if pisani is on the floor, is he, guys . Wait until he gets to until we toss to him. A weatherrelated event. Yes. Samsung, a nice piece in usa today about samsung unveiling their new smart watch when they go to barcelona for the global world conference which will not use android, instead this new open source system is it called tisen, well figure it out relatively soon . Youre the one we go to for pronunciati pronunciations. They launch in europe where they consider it to be the key market arguably more than the United States, much more difficult market with so many different languages to tackle but thats where their focus is for the launch. As samsung continues not to get a divorce but maybe a trial separation from google as opposed to being too reliant on android. I think there was a talk of a listing here for samsung. Im told pisani is on the floor with the dow down 17. Hi, bob. Good morning, everybody. Interest rate stocks on the weak side and utilities and emerging markets are on the weak side, how much longer are we going to use the weather to give the economy a pass . Art cashin has been using the phrase get out of jail free for three weeks now and the question is how long it will go on. Overnight we saw five companies, five retailers came out, had somewhat disappointing results and guidance and all the blame, weather. Put up list. Mattress firm holding. Group one automotive, lazboy and panera put up the five stocks on the board, all of them came up and said we had disappointing results because of the weather. How much is it hurting . Panera got the closest. I was very impressed with what they had to say, weather impacted transactions by tonight with and it was impressive. And group one was vaguer. They had a good point, stores in areas boston, new jersey, new york, new hampshire, oklahoma, kansas, have seen significant closures that far exceed normal weather conditions. They also said a lot of stores in houston, new orleans, atlanta, that normally never close had to close. All right, thats not a number but thats a good indication of what exactly is going on, the bottom line, have you seen weather . Eyes break i it is breaking, well not have this excuse for very long. Well see what the fed has to say, theyll have their minutes out at 2 00 eastern time and maybe theyll talk about the polar vortex. You think Housing Stocks would be in trouble . But have you watched Housing Starts, the etf for housing basically it is near the highs it had in december. Multiyear highs and Housing Stock despite the weak data is not falling apart and the markets continue to believe down the road the data will improve. And the geopolitical risk is back, it is true, syria and the ukraine and venezuela and whats going on in thailand and after watching the overall markets even that is still not impacting the stock market. Guys, back to you. Thanks very much, bob. Well send it to sheila at the nasdaq. We are coming off an eightday winning streak at the nasdaq but keep in mind for the past eight sessions the nasdaq has gained 6 1 2 percent leading the rebound in the overall markets and the technicians say a breather is not a bad thing especially on the day with upcoming fed movers. Garmin moving big time on its earnings after its Fourth Quarter ruls came in better than expected and guidance was solid and biotech mixed action, and look at amgen and the nice leader is social media. Take a look at facebook, linkedn, groupon, they are up a percent today, but you got to talk about tesla, thats the big one everyone is waiting for, they hit a regard butted to were trading lower ahead of the earnings and, of course, ahead of what mr. Elon musk is going to say himself. All right, sheila, thank you very much. Lets shift to bloonds and e dollar. Rick santelli at the cme. Hey, rick. Well get to the dollar. I dont know if what a year is the word i would describe. What a boring year is way i would describe it. Let us start with Interest Rates, the slippage of rates in 2014 there was a bounce, of course, when the equity markets righted themselves but it is having an impact on the curve. The twoyear note its yield even though it moves in much smaller increments because eyes only 29 basis points, this is the lowest yield closes since early december. Lets move down the curve and five year, if five year was to close it would be the lowest yield close since the 3rd and 4th of february, that was the lowest yield close since the big high yield close we had to finish off last year. Ten year lets look at intraday, we are slipping under 270, and even though it doesnt appear to be very busy, these are significant high volume areas. Open the chart up, and these are the lowest yield close since the 10th of february. We were talking about Foreign Exchange and the dollar index. Heres a chart from middecember, the dollar index and i picked middecember so you can clearly see we are virtually unchanged and on the year and yesterday intraday trading dipped below 80. We settled around 80. 03 and were down on the year. Where are most of the gains coming from . The euro currency, the dollar, the euro, the pound have been doing better against the yen recently thats where the big gains are on the dollar. Maybe weve delinked with the japanese markets on the equities side, not true on the interest ra rate side. And back to you, carl. Lets send it to the nymex where natural gas is moving. Good morning, simon, lets start with nat gas, were near the 6 level mark. Traders are telling me in anticipation of the department of energys weekly storage report tomorrow. They are expecting another drawdown in supplies and while the cold weather does seem to be breaking, its the impact of the storms weve had and the weeks drawdown that is impacting the nat gas trade, and want to switch gears and talk about crude for a moment because we are marching higher. We are seeing west texas intermediate pushing 103 a barrel and thats ahead of the department of Energy Inventory report tomorrow delayed because of the holiday. While traders are expecting a build there they are saying increased Energy Demand and the cold temperatures as well as the impact of a few days of a weaker dollar impacting the oil trade. I want to talk about gold prices hovering around the 13. 20 mark, we are looking for the fed minutes and support at the 1313 level, if we break out and breach 1328 we can break out to the upside, carl, back to you. Thank you so much, jackie. The turmoil at target, an inside look at how executives of the company wrestled from the fallout of the data breach. Great piece in the wall street journal. Later on meet the owner of the reallife setting for Downton Abbey which has become big business as you probably know. [ male announcer ] we all think about life insurance. But when we start worrying about tomorrow, we miss out on the things that matter today. At axa, we offer advice and help you break down your insurance goals into small, manageable steps. Because when you plan for tomorrow, it helps you live for today. Can we help you take a small step . For advice, retirement, and life insurance, connect with axa. announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. Iwe dont back down. We only know one direction up so were up early. Up late. Thinking up gamechanging ideas, like this dozens of tax free zones across new york state. Move here. Expand here. Or start a new business here. And pay no taxes for 10 years. With new jobs, new opportunities and a new tax free plan. Theres only one way for your business to go. Up. Find out if your business can qualify at startupny. Com the bill is mounting for Financial Institutions for targets date da breach, the estimated cost 200 million for the banks and then the new article from the wall street journal this morning sheds some light on the lastminute decisions made by their executives during those crucial days, and the single decision that ceo Gregg Steinhafel made that cost target billions of dollars. Monica langley is with the wall street journal who penned the story on pige one today. Monica, its great to have you back. Good morning. Thank you, good morning. Walk me through, first, how you got this kind of access. You talk about fly on the wall. You take us there during the critical days over the holiday. Yes. Well, you know, first of all, kudos to becky quick she had the first interview with Gregg Steinhafel the ceo and from that i realized, theres a fascinating story here about how this company is handling a crisis that really is threatening its bullseye brand and thats what i worked with the executives. I got there. I hung out. And this is the story thats in the paper today. And the ceo, Gregg Steinhafel, was faced with decisions, day in, day out. And every time he ended up makes these decisions that were costing the company billions, but ultimately what he said to me is target will not be judged on this massive data breach but how we handle it. So, thats why hes making these decisions that are costing so much money for the company. Right. We mentioned this fateful decision of all the ones he had to make, which was the most fateful . The most fateful i think is the one when the company had already disclosed right during the Holiday Shopping season that 40 million of its customers had their credit or debit card numbers stolen. Then a few days later, the secret service informed them that up to 70 million customers had personal information stolen. Now, target would not be required by law to say that, and the personal information could be snippets and some of his executives said we dont need to do this, we dont know how much fraud this would entail, but Gregg Steinhafel said, no, lets go all out, we just need to say everything. Well, what happened is everybody added 70 plus 40 equals 110 million americans, guess what, thats onethird of all americans and that sent targets reputation, the press in the company plummeting. Target is doing daily polls on its brand and its at a record low. And then they go on to explain how they were going to give free credit monitoring to everybody and they said how are you going to limit that . And they said, im not. This is for all americans. This is the largesse of target. Thats exactly right. Lets give it to anybody. If anybody is scared about their credit, give it to anyone. I mean, other decisions he made, the call centers were flooded, and people were waiting on there for three hours they were so scared about their credit cards, so Gregg Steinhafel himself called the call center. He was put on hold for 45 minutes, given the runaround several times. He went into a meeting and said enough. Lets lets fix this. They said, it will take us three weeks. He said, no, do it in one week. They tripled their resources and the cost, now the wait time was down to eight seconds. Monica, are you buying it . I mean, the central premise of your piece is as the ceo says, we will be judged more by how we deal with the problem than the problem itself. I think a lot of people watching would say, well, all well and good, youre doing well, but actually you shouldnt have been in this situation and you shouldnt have exposed me as a customer in the first place and for that i have a real issue. Well, i think that is going to be a key question. And some Corporate Governance people i spoke with said that have they come out now and assured their customers that theyre putting in pentagonlevel security that would keep this from ever happening again. The one thing that target says is they will by early 2015 install Chip Technology to replace the magnetic strips. Thats way ahead of what other retailers and Financial Institutions are saying. So, thats what theyre saying they will do. I mean, the question is, could they have done it right. When the secret service testified on the hill, they said this was a highly sophisticated plan, Gregg Steinhafel said that Shows Retailers are having trouble with this everywhere. Finally, is the lesson of all this the next time it happens, because we know it will, does the general counsels office win, will the companies disclose the bare minimum and nothing more . Thats a good question. Well see what happens with target. The fact that theyre disclosing brand will that bring back traffic to the store . If it doesnt, then i think the General Counsel Office will win, and only disclose the bare minimum. If disclosing all this brings back the traffic, then it will be an example. Right. Monica, its always good to have you. Great piece. Thanks so much. Thank you. Monica langley with the wall street journal in washington. When we come back well get a live interview with the ceo of opentable, how much has the weather impacted business . And Green Mountain Coffee Roasters hoping the companys partnership with coke will heat up some business. Well get that from boca as squawk on the street continues. Could save you fifteen percent or more on car insurance. Mmmhmmm. Everybody knows that. Well, did you know that old macdonald was a really bad speller . Your word is. Cow. Cow. Cow. C. O. W. E. I. E. I. O. [buzzer] dangnabbit. Geico. Fifteen minutes could save you. Well, you know. Through sunday, save up to 500 on beautyrest and posturepedic. E savings go on at sleep train. Get a sealy queen set for just 399. Even get 3 years interestfree financing on tempurpedic. Plus, free delivery, setup, and removal of your old set. Keep more president s in your wallet. Sleep trains president s day sale ends sunday. Superior service, best selection, lowest price, guaranteed. Sleep train your ticket to a better nights sleep google glass explorers be warned, the tech giant has come out with a list of dos and donts for their wearable tech device. It brings us this morning to the squawk on the tweet, naughty google, there are children watching, whats a Family Friendly term, do we say this out loud, the name for people who wear google glass . Thats thats the expression they use. We can say it. We can say it. Ive said it. All right. You want to say it you can read the bottom of our screen. Well get your responses throughout the morning. I just i dont know. I cant bring myself to do it. But its interesting their memo on what to do, i lining tke the standing in the corner recording people with google glass is not going to win you any friends. No. They clearly know theyll be on the ropes with this amongst a large proportion. Theres so many donts, dont do this, dont do that. I dont know. I dont know. Coming up in the next hour of the show, we have three exclusive interviews for you, first the ceo of clorox Donald Knauss will join us on ceo and the ceo of opentable has a new vision about the whole restaurant experience and a third interview for you this morning, the its countess the real owner of where they shoot Downton Abbey will be here to reveal some of the secrets of the british aristocracy. 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. Whatswithout the thinking capitathat makes it real . . Whats a vision without the expertise to execute it. And the financing to make it grow . Whatever your goal, it can change more than your business. It can change the future. Thats why, at barclays, our ambition is to always realize yours. Are you still sleeping . Just wanted to check and make sure that we were on schedule. The First Technology of its kind. 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And later the ceo of Green Mountain coffee joins us for his first tv interview since the deal with cocacola. You dont want to miss it. But we start with the situation in the ukraine following the deaths of 25 people overnight. Protesters in kiev are prepared to stand and fight again today, they say. Nbcs jim maceda has the latest from moscow. Reporter thats right, simon, and ill tell you, what looks like an insurrection in kievs Independence Square at least overnight and into this morning has now for the time being turned back into a standoff between protesters and riot police. Those police are coming out now in larger numbers. They control much of the square, after, as you say, a full night of extraordinary pictures, of protesters with stun grenades and Water Cannons being hit by those police. Many of the fires that we saw all night longer also still burning tonight as we approach darkness and being used by protesters carrying themselves stones, clubs, and firebombs to hide behind. But under pressure from both the u. S. And european officials and the pope to end the violence and return to the negotiating table, prorussian president has remained defiant. Hes blaming the protesters for the violence and warning opposition leaders that theyll need to be careful because they will be treated accordingly. If they dont come out publicly and denounce the radicals amongst those protesters who have reportedly killed up to ten policemen by gunshot. Theres a lot of talk about a new round of talks between both sides, but its really hard, simon, to see how either side can find a political compromise given all the violence that weve seen and the mistrust. Meanwhile, with ukraines economy in free fall, the fear amongst the protesters is that yanukovich has struck a deal with russian president Vladimir Putin promising to crack down as he did last night if russia goes ahead with that latest 2 billion bailout installment which, of course, he has done. So, its now expected that even a prorussia Prime Minister will be named by yanukovich even as Vladimir Putin here in moscow criticizes the west for meddling in ukraines internal affairs. Well see if its more of the same on the square tonight or if some lessons were learned last night, but we seem to be very far still from any kind of compromise. Carl . Our jim maceda in moscow, jim, thanks. Meantime, the city of detroit is expected to release its Restructuring Plan in a few days this as yet another bankruptcy hearing starts as we speak. Our scott cohn is live in detroit with the latest on that. Reporter good morning, carl, this is many reasons the detroit bankruptcy has implications so far beyond the city of detroit. Were talking about the 4 trillion Municipal Bond market, cities, municipalities everywhere use the market because its convenient and cheap. Millions of people invest in that market because they perceive it to be safe, but it appears that all of that calculus changes when the municipality in question is broke. Part of the citys plans here in detroit is to treat general obligation bondholders, those are bonds that arent secured by things like the water system and the sewer system, as socalled Unsecured Creditors just like everyone else, they will take a haircut. Wall street is furious about this. The companies that insure the muni bonds have gone to court to try to stop that plan. The emergency manager kevin orr when we spoke to him back in july said he understands the concerns about the muni bond market. But in essence, its not his problem. Im the emergency manager of the city of detroit and the statute under which i am appointed doesnt say im to figure out a way for the city to proceed in a sustainable fashion taking into account the implication it may have on the Municipal Bond market. It said im to figure that out for the city of detroit. Reporter orr said he understands the argument that the bonds are supposed to be backed by the full faith and credit of the city but the city is, in fact, broke, all of this a prelude to the Restructuring Plan, the socalled plan of adjustment which we expect to now be filed as early as friday or by the end of this week and essentially its the Restructuring Plan, the citys details for how theyre going to restructure their financing as the bankruptcy goes through. It still requires Court Approval and it will kick off a whole nother set of battles over the next few months. The reports that the Pension Plans will get a preference here, 25 cents on the dollar compared to 22 cents on the dollar for the bondholders a result of the aid package weve been talking about, money from the state and the private donations that will shore up the Pension Plans and preserve the Art Collection and also by the end of the week we expect to get the citys detailed plans for its operations and the city and municipalities everywhere already watching. These are never short processes but of course many watching this one especially closely, our thanks to scott cohn in detroit. Meanwhile, netflix is finding itself in a battle verizon leaving subscribers waiting as their content loads. As more and more people stream movies online, who better to ask than John Steinberg the president and ceo of buzzfeed and cnbc contributor and an expert on all things involving the future, the media, et cetera. Weve been talking about whether we did or didnt have problems streaming some of our netflix over the weekend, i prefer to blame my Cable Provider but that may not be who to blame. Thats like saying your vase smashed on the floor and your two kids in the room and your dog runs to the other room. This involves mirroring and the transportation of the server hubs way far from your home. And the issue is netflix wants better interconnections from the Cable Companies and the Cable Companies dont want to do that, the Cable Companies say that netflix should have to pay, but ultimately the net customer is paying for broadband in their home, if onethird of the Broadband Usage is netflix in effect theyre already paying for it and you are in a market where they is often only one Cable Provider so you cant switch if you want to. So the rules here are not necessarily the total free market that exists when thats true competition. It appears its at a stalemate with netflix saying we should be able to do it for free thats what the customer expects and some of the Distribution Companies say, no, if you are using more, you should pay for it. How does the standoff end . The way it stands now the carriers can interconnect to cogent with upgraded hardware and netflix said they are stalling on doing that right now or netflix has built out their own content Distribution Network which they can plug into as well. The carriers are saying we dont want to do it without payment and they are not deliberately throttling, they are just not being helpful in terms of upgrading so it makes it a little bit gray and the ultimate consumer will say i cant watch netflix because its buffering and they will switch providers if they can or blame the Cable Provider. They wont blame netflix . The first thing they say is its got to be my Cable Company and ultimately it is. If netflix is delivering onethird of the usage what is the broadband selling . If i drive an 18wheeler on the highway, not that i typically do that, im paying more at the tolls than a regular car. For if i make a telephone call or if i use more gas or electricity i pay more. You are paying for the calls to come in, right . Why are you paying that phone line if not to be able to get the phone calls and thats why phone calls are flat rate pricing. Netflix should pay more because they are making the call to me. No, if i call you one time and carl calls you ten times you may enjoy your phone service because youre talking to me a lot but you are not paying me more. Or you pay for a bundle of minutes. On the issue of using band width is only going to increase, of course, as everybody starts absolutely. We know that, its increasing every day practically. Where do you believe this ends up in terms of somebody paying . I mean, i think the issue, this goes back to the undergraduate education this is the problem with deregulation in markets that arent competitive, if theres one provider of broadband which will happen with this merger, and if people are unhappy with their service, we have sta get Net Neutrality back. Why arent people saying my netflix is slow im unsubscribing . They may, in fact, do that because theres no choice because they cant switch Cable Providers but if they could and there was clarity they might be able to do that. You dont see this as a threat to subs on netflix . I dont think it is. You think its more of the Consumer Service surveys. People could become so frustrated with netflix that they would turn off of it but i think ultimately people will buffer a little bit, people are not going to watch house of cards and theyll blame their Cable Provider, the best thing will be when they upgrade to the higher cable packages and the speed doesnt increase, if you are going to pay for ten megabits, you should get that. The carriers shouldnt even be selling higher broadband packages if they cant deliver it. Maybe google can bring us one gig to the house. Or we can go to the red envelopes. Or red box. Dominick chu said he went to red box, they worked well. He might be the only one still going to there, but thats okay. I dont want to let you go without asking about one more company, linkedin where anyone can post content to the site. They have a surprising uptake on their influencers platform. This is huge. And i love the title that they used on the blog post announcing it, the definitive professional publishing platform thats what they called it right now. The influencer platform where jack welsh and people like that have blogged has massively driven engagement and page views are up 1 billion page viewers and you sneak visitors up 34 , they are basically t tumblr now. And im sure well be hearing it on the next Quarterly Earnings call. Thank you for being with us. And pay more to cogent to do it. Up next were live at the winter games with sochi with one of the most legendary sportscasters in television. Nbcs al michaels will join us live when squawk on the street returns. Can pick her up. Yeah, we can make room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Oh, its great. Yeah. [ male announcer ] the best thing to share . A data plan. New at t mobile share value plans for business. Our best value plans ever. For example, you can get 10 gigs of data to share. And 5 lines would be 175 a month. Plus you can add a line anytime for 15 a month. Sharings never been better for business. Sharings never been better for business. Through sunday, save up to 500 on beautyrest and posturepedic. E savings go on at sleep train. Get a sealy queen set for just 399. Even get 3 years interestfree financing on tempurpedic. Plus, free delivery, setup, and removal of your old set. Keep more president s in your wallet. Sleep trains president s day sale ends sunday. Superior service, best selection, lowest price, guaranteed. Sleep train your ticket to a better nights sleep the excitement at the winter games in sochi just keeps coming our chief International Correspondent Michelle Caruso cabrera is live in sochi with nbcs al michaels. Hey, mi reporter hey there, carl, were thrilled to have al michaels here, eight olympics, eight super bowls, eight world series. Crazy eights. Reporter weve just finished watching, russia losing and im kind of disappointed because that means in hockey well not see a u. S. russia faceoff. Correct. Reporter how do you feel the russians are feeling . Its sinful to lose in hockey. You have been here long enough if the russians only one gold medal, it had to be hockey. Dont even get into the semifinals. It is a gigantic disappointment. I mean, putin is the guy who, you know, this was the most important thing to him. People were laughing about the fact hes telling his coach who played in the 1980 team in lake placid, you know, who do you use on the penalty kill, that was probably a little overstated. But this was gigantic. This is an incredible disappointment for a country on its home ice and a team that has 11 guys who play in the National Hockey league and a lot of superstars and out they go against the fins today. Pretty amazing. Yeah. Reporter you talked about the nhl, they are talking about not helping out in the next olympics in career. Is that a good idea . The deal with them, i love the National Hockey league. I love hockey. Ive been a kings season ticketholder for over 20 years. Grew up in new york, and loved the rangers. I thought it was great when the nhl allowed the players in 1998 go to nagano and it was a weird year and the guys go the in trouble but they cleaned it up, by 2002 everything was rolling again. I thought the hockey in 2010 in vancouver was the best quality of hockey. The quality of hockey here is phenomenal. I think the nhl is out of its mind if they pull out of the olympics. I really do. I understand what the problem is here, too, because they havent been treated the way they want to be treated, some of the mucketymucks, number one, and number two, some of the owners feel we dont want to shut the league down for three weeks and lose that revenue. But i think the olympics do more for the National Hockey league than anything its a different thing, it puts these guys on display, and i think theyre out of their mind if they dont come to the olympics in 2018 and beyond. Reporter 1980, miracle on ice, those were amateurs those americans. Right. Reporter facing off against what were professional soviet players. Right. And the guys were amateurs. Reporter do this day are we still getting dividends from that game . Theres no question about it. I got to interview the other day on sunday on nbc the torchbearer lighting the cauldron of the opening ceremony, thats how important he was. Three gold medals for the hockey team. Lost in lake placid, they yanked him out of the game. Kind of a wild scene in all of that, what took place there. But he said to me, the other day, he said that team was able to inspire a lot of American Kids to play hockey, and, you know, they are what they are today because what he called them those boys did in 1980. And jeremy roy who played in the nhl for 20 years, one of our analysts, he told me, he said hes completely inspired by what happened in lake placid, that made him want to play hockey. And a lot of nhl players have told me they remember that as kids, they went, wow, look at that, look what happened there. And thats why they decided to play hockey and thats why america is so good now in hockey. Reporter i remember the miracle on ice, it still makes me cry as a child, it was scary. Al, thank you so much. It was really great having you on. Can we get in a plug for fast money or something . Reporter carl, dont take it wrong, his favorite show is fast money. I need to say one thing, carl, who was it that said we have to buy in full blocks on fast money . I know it wasnt carol and pete, but i went out and bought it and i wake up one morning here and its down 45 , explain it to me. Well track it down, al. Explain it to me. Dont you worry. Reporter carl, i walked down the hall, i said, hey, al, good morning, he said the futures are down. But the dows up about, what, 60 right now . Im on top of it. Al, youre the best. Michelle, thanks for bringing him to us. Well see you guys later on. Good stuff right there. Meanwhile up next another exclusive interview this time with the ceo of clorox, he weighs in on the state of the consumer and the companys efforts overseas. Squawk on the street will be right back. So ally bank really has no hidden fees on savings accounts . Thats right, no hidden fees. Its just that im worried about, you know, hidden things. Ok, whys that . Well uhhh. Surprise um. Well, its true. At ally there are no hidden fees. Not one. Thats nice. No hidden fees, no worries. Ally bank. Your money needs an ally. 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. voseeker of the sublime. Ro. You can separate runway ridiculousness. From fashion that flies off the shelves. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. natalie ooooh, i like your style. vo so do we, business pro. So do we. Go national. Go like a pro. Were up 85 on the dow, and facebook is also rising. Now its 68. 03 to an alltime high in the wake of those strong results. Meanwhile from weather concerns to worrying about your wallet, there are many questions surrounding the health of the consumer. Sara is getting some answers and at the consumer analysts of new york conference and interestingly its in boca raton, florida, which looks nicer than new york but shes got the ceo of cloroxs don knauss. Take it away. Weather is top of mind when it comes to Consumer Company challenges don knauss great to see you. Sara. We call it frozenomics the impact on the consumer because of the deep freeze of the weather. Are you seeing it . Were seeing a little bit of an impact. We havent quantified it yet. It may be a point of impact, we dont know yet, but typically the weather events tend to even out over the course of the year. Recall last year we had the coldest march in a long time. It affected the charcoal category in particular, but so far we are not seeing a major impact. Its more of low jess ticks and getting trucks on the road and supplies to retailers. It might be helpful for some of your cleaning products and the bleach products especially with the increased flu season were seeing. We definitely saw an alltime record on clorox disinfecting wipes in the october, november, december quarter, so any of those products that disinfect, youre right, were seeing a big surge in those products and as people stay home more because of the weather, our products tend to do better. Between the weather and the headwinds in seasonal factors its hard to get a gauge on what the consumer is feeling right now. Yeah. You own a number of categories in the consumer market, how would you categorize the state of the American Consumer right now . The consumer is pretty fragile. We play in a broad range of categories from burts bees to charcoal and soy sauce. People dont know that about clorox. We are a pretty good canary in the coal mine in terms of whats going on with the consumer. If you look at all the categories, the last six months they were up a point which is kind of what historical trends have been. The last three months have been flat. Things have flattened out as retailers are discounting more to get traffic into the stores. You get 78 of your business in the u. S. Market. Thats right. You have a great handle on america. Does it protect you and insulate you from some of the problems your competitors are facing in the emerging markets . I think being americancentric Company Helps particularly with all the kunkssy issues were seeing in the developing markets, it does help in some ways and, of course, the economy in the u. S. Is a little bit more robust. I mean, we are going 2 to 2. 5 gdp and its been fairly stable the last few years, so that does help. You mentioned the broad range of categories everything from cat litter to charcoal to cleaning supplies. What segment are you most excited about in terms of growth for 2014 . Its interesting the oldest product we have is our bleach, its 100 years old and whats interesting that category had been basically flat and declining 2 until the last 18 months, that category was up 14 in july, august, september. Is it the increased health care . No. Its really do you know what happened is we compacted that bleach. We took a 96ounce bottle and squeezed it down to 64 ounces, same number of servings if you will, just like laundry detergent if they will, and weve seen the consumers radically shift to bigger bottles and they are paying more for the bigger bottles. Have you trained your consumers to do their laundry with the more concentrated bleach. The old bleach took threequarters of a cup, so weve adjusted to the new hd machines that dont require as much bleach, but people are using more and more to clean and disinfect. Want to get your thoughts on competition, its always been an issue private label versus clorox, where are you feeling it the most right now among the categories . The toughest competition weve had the last year its been in bleach and wipes, clorox disinfecting wipes and both of those products had about a 60 share so were fairly, you know, a strong leadership position in both those categories but weve seen not only branded its more private label competition as people look at opening price points and getting more value on the shelf, thats been the toughest issue, but were starting to see bleach shares come back, for example. Don, my colleague david faber has a question for you back at the stock exchange. Hi, david. Hi, don, how you doing . I know its 2 1 2 years ago that you successfully fended off carl icahn, but back then, of course, activism was certainly something on a lot of ceos radar and now its front and center. Right. Do you have a piece of advice given a successful defense against a guy who has only gotten a lot more active in the 2 1 2 years he came after clorox . Right. You know, david, i think the key thing that we did, and i really stressed this with my folks when we were dealing with carl, lets treat carl as our largest shareholder and not an activist. What it did is it made us much more responsive to his questions, you know, his concerns, his comments, his thoughts about the business, so we were very open and transparent with carl. And i think when you treat people like carl as your largest shareholder instead of an activist who you are looking at as a negative, i think it really changes the mentality inside the company on how you deal with im. It certainly is big issue, don knauss, always good to see you. The ceo and head of clorox, you heard it from him the fragile state of the American Consumer, i think youll hear a lot of this from the consumer analyst of New York Group conference. Thank you so much, sara, and well continue to go back to you with big name interviews. And we want to get a check on wall street because theres a lot of changes going on especially concerning hiring. And now many millennials are trading up to private equity, technology, or even just some time off, so how did banking become a temp job . We talked to some former analysts to find out. At the university of wisconsin, Chris Martinez was a selfprofessed investment geek. His first stop after graduation in 2010, goldman sachs. How many allnighters did you pull . I lost track honestly. On an average week i worked between 90 and 100 hours and there were some weeks where i worked 130 hours and there are only 168 in a week so martinez guessed 5 of his work saw daylight. Graham carroll a former analyst at bank of America Merrill lynch had similar frustrations. There are times when you are sort of at your low and youve been up all night and you are kind of going whats going on here . I tried to focus on sort of whats the Bigger Picture here . The big picture wall street as a springboard for a new job. New yorks Tech Industry circled wall street to poach its weary. Facebook recruiters even using bloomberg terminals to lure bankers here to new yorks ace hotel for meet and greets that according to young money the new analyst tell all. Its no surprise that theres a buzz on campus about the emerging, vibrant Startup Community in new york and the Technology Industry here. Part of that interest is driven by the sense of an opportunity to build something. At all top Business Schools the portion of graduates heading to wall street had been shrinking as had the number of people willing to stay on wall street. Carroll stayed for a rare third year but left for Business School in 2012. There definitely was the culture or the push within my group at b of a to retain talent and one way that they did that was by, you know, coming up with this third year analyst position. There are probably one or two people who are in that position who became associates and are probably still there. Like surgeons, analysts are always on call. Every situation a deals life or death. More face time than substantive work. A quick search on reddit found misery sure loves company. About 80 of what i do could be done by a monkey. If you enjoy Investment Banking you are either lying on a complete masochist. We are literally expected to hand over the reins to our life to the bank and, of course, we do. If you are anonymous you can say just about anything. Goldman sachs is most visible about trying to give the reins back and weve got a special report on cnbc. Com about the problem with the programs and wall streets concerted efforts to keep a lid on their talent and on power lunch well talk about the changes afoot and whether theyll work. Its more about compensation these days. Is it fun working in a heavily regulated industry . Whats the content of the work you are doing . Are you buried in a spreadsheet or are you actually meeting with ceos and getting to have your work actually make a difference . Thanks for trying to figure out a way to actually make some of those things happen its easier in theory than in practice most times. It was the culture of wall street that you began when you begann at goldman or the investment banks and spent 18 hours a day at work and you slept under your desk, thats what you did for a few years and it was hell but you got great rewards at the end of it. As a firstyear analyst you get six figures right out of college but the difference if you go to google or facebook or if you could get a job at a private equity firm right out of college, why wouldnt you do that instead of going through the gauntlet of wall street . Right. Its all very well to bite the hand that used to feed you, but the guys are going for the rewards. You look at what some of these startups, i mean, they are going for money. They are going for where they think they can make millions very quickly. Its the same story just the environment is switched. Some have said they feel like the work they do is more impactful at some of those companies because theyre actually creating a product. You are seeing it through and its something you can hold in your hand or you can view on a website or Something Like that. For sure. Its not something that disappears into the dark corner. Its a good thing when the rocket scientists develop rockets as opposed to cdos and were in good shape. Wall street executives are saying they are getting more finance creating jobs. More finance and economics majors and fewer liberal job majors, but its an interesting debate. Talking about the generation that will lead banking for the next 20 or 30 years so you got to listen to what they are telling you. When we come back the owner of the real Downton Abbey, well see what it takes to keep a centusenn ture centuries old castle running. 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Orks an expert ford technician knows your cars Health Depends on a full, complete checkup. The works. Because when it comes to feeling safe behind the wheel, going the distance and saving at the pump you want it all. Get our multipoint inspection with a a Synthetic Blend Oil change, tire rotation, Brake Inspection and more for 29. 95 or less. Get a complete vehicle checkup. Only at your ford dealer. This countrys ten million Downton Abbey fans know the story line well, wrestling with a changing world to save the family estate. But what about the real life modernday business of owning and preserving a Downton Abbey with us at post nine is the family who owns high Claire Castle in england where Downton Abbey is filmed for over 330 years. Shes out with a new book cady katheri katherine, the earl, and the real downton abby. Thank you for being here. Thank you very much. People will be fascinated where you own the star of the show. How many rooms does it is have . Between 200 and 300 rooms. The state dining room has a dan vike with a giant portrait of charles i. Thats quite a family home to maintain. It is, actually, and it has a couple of other van dykes in there as well, weve got a wonderful selection of works of art collected over hundreds of years and then in the cellars weve got an egyptian portrait as well. Yes, yes. If you look back at your familys history and youve got your third book out and you use the archives to peel away what happened to your ancestors and your husbands ancestors. Do they have similar lives to what we see on the television . Is it the same type of story . It was actually a bigger house, with more william and thomases, more butlers, more chefs, more guests and more parties. Yes. Thats interesting because england is littered with Country Estates that have faded. They couldnt even afford the roofing bills let alone the staff to run them. Im wondering why yours is still in such good shape. Did you start out with more money . Did you start out with more works of art as a family that you could sell over the years, therefore, you still exist . We existed because of a tremendous sale at christies in 1926 to pay off debt duties and we exist today because i think we end up working quite hard and like any other business its our diversi diversification. You live in a house during the summer, a side house, so that visitors can come and visit . Yes. How else do you monetize what you have . We have weddings, private dinners, conferences. Visitors coming. We have country game fairs. We have a lot of different events to try to draw people in. And then theres a culture. We want to try and make people love it. We want to try and make people want to come. And fortunately for us, Downton Abbey has really done that. How much does it cost to rent it out . If i wanted to get married at Downton Abbey, how much would you charge me . I dont talk about money because im a countess. You told me that. But i like net margins, i make it especially for you, how about that . Really . Yes. Whats the off season . How much of the year is filming versus events . Can you do both at the same time . You can do both at the same time. Its a big square house, so its better not to try to multitask which i think is a very good thing for all of us actually. Were not so good at it. We do one thing at a time and the filming started last week and its with us on and off until july. So, its a big part of our diary and its broken up by when we open to the public at easter, other private tours and dinners, so were just like any other business trying to work out how to sustain ourselves and give us a future. Do you remember when pbs or the Production Company first came to you and said wed like to do this, and did you know your life would change as a result . If i had, if i could bottle that formula, i would be terribly wealthy, wouldnt i . I didnt. And we just thought we hoped somebody might watch it. It was a tremendous gamble from julian fellows the script writer and a dear friend of ours and actually itv. Itv backed brides head revisited and that gave where it was shot 30 years so far of visitors. Other parts of the house that you have to hide . I mean, do you have an elevator that cant be shot . We have no elevator or a lift. Or modern radiators. No, no, no. We have oldfashioned radiators. No showers and no airconditioning. And how many televisions . We have one television. How can you only have one television . A 200room house. Let me ask you finally, has this sorted out your financial problems now . Because even quite recently you were going to because i come from your part of england. Yes. You were going to local residences we need Planning Commission because the roof is leaking, has Downton Abbey saved you or is it a continuing struggle . Would you admit if you were still struggling . I think if youre not restless and eager to do better as a business, you are going to struggle and what the press put across at that point was not necessarily the whole story. What we did, we looked at all our liabilities for our stewardship and if you open all those brown envelopes on day one, you find its quite a big number. And over our lifetime youre looking at how you can best support the roof and the asset youre looking after. So, thats what was put in the press in a slightly misreported way, and i hope we will do other things. Your grandchildren be there and your great grandchildren in 100 years . I dont know. I can only do my best and hope i can pass it on. Its been great to meet you. Thank you for coming here. Thank you. Thank you. From high tea to coffee, coming up the ceo of Green Mountain coffee in his first tv interview since the deal with cocacola will join us live a little later on. Squawk on the street meanwhile will be right back. 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Check out shares of garin which are soaring in early trading up 9 after the gps and Navigation Systems maker posted betterthanexpected profit and sales but it wasnt traditional systems that drove the results it was stronger demand for aviation and fitnessrelated products, garmin like i said up 9 in early trading. Back over to you. Diversification pays off. Lets get to the Trading Floor with Rick Santelli. Thank you very much. Theres been a lot of talk about the anniversary of things like the stimulus plan. So, i want to talk about some anniversary remembering here. Most of the anxiety that the country started to feel after the credit bubble, started when president bush on october 3rd, 2008, signed t. A. R. P. Basically i believe thats when larry kudlow coined bailout nation. Bailout was not a happy time. And i will continue to say that, of course, we cant go back and redo things, but all the issues that resulted in t. A. R. P. If we were to go back and look at them, most likely if all those involved would have known five years out the conditions, im not sure that the best regulation which in my opinion is failure wouldnt have been a better route, maybe it would have been worse for a year but i think we would have been on the road to recovery, but that was under george w. Bush. Then you move towards january and there was a variety of bailouts getting penciled in, well gloss over that. February 17th, 2009. The american recovery and reinvestment account known as stimulus, maybe the most Unpopular Program of all, really split the country, and many still remember, of course, shovel ready which, you know, shovel ready wasnt all that it was cracked up to be. It was put through so quickly and without a lot aforethought, then, boom, february 18th, the next day homeowner affordability and stability plan. This is when, of course, the talk was, said the government was going to go and fix all these problematic areas. On february 19th i blew a gasket, but basically what was born at that point was the voice of dissension. How do we know that . Many, of course, still remember the irs issues. The president said maybe there wasnt a smidgen of negativity there or news there or anything inappropriate there. But it seems like if you look back, it was february of 2009 where all of that started, if you look at some of the irs records, but dissension was born. But something happened on morning joe that really caught my attention. You remember the cbo plan or report yesterday that was released that talked about how the minimum wage would cause half a Million People potentially to lose their jobs even though it would bring others out of poverty . We all know the big economic adviser Gene Sperling on morning joe this morning, put it up on the screen, this is what he said regarding the cbo, this is not an area where they have expertise, it seems once again dissenting voices arent very popular. But this is america. Dissenting voices will continue to voice their dissent, because theyve read the operating instructions for the United States of america, and its their right. Back to you. One of the great things about our country, rick, thanks a lot. When we come back opentable struggling this year. The stock down more than 5 so far, but will the companys big bet on mobile pay off . The ceo will join us live after the break for that exclusive. Well be right back. Scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. 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. If ceo of the restaurant Reservation Service open table is laying out a vision of the future in which he hopes will change your whole experience of dining out. Most recently, of course, the recommendation for 17 million. Joining us now in an exclusive interview, matthew roberts, the ceo of open table and also our own jon fortt is with us here. Matthew, welcome to the show. Nice to see you again. You, too, simon. Before we get in the thick of the detail a lot of people will want to know what youre seeing at the moment. You know, with this weather slowdown, you are plugged in in realtime to restaurant reservations. What can you tell us . Well, obviously i think were on our 18th named storm of the season. So really tough for our restaurant customers and businesses in general. So, you know, well keep an eye on it. Theres only so much you can control relative to the weather. But certainly our restaurant customers are feeling the impact. Matthew, im wondering at your plans for growth. You talk in the Earnings Call about the potential for 100 million falling into to the bottom line if you get penetration throughout north america the way you have it in the San Francisco bay area. Right. But it seems like internationally and maybe in a lot of places in north america rest raurants dont want to pay for fee. How do you get them to want to pay that 200 bucks a month, plus 1 per diner . If you look at our Customer Acquisition costs for restaurant, we are the most effective way to fill seats. And in a fixed cost business, thats all profitability. I feel like our return on investment and our customers do as well. Its just you cant beat it. Theres no other marketing vehicle that restaurant can use that has a pay a dollar and get 43 in revenue. So are you going to get those res bookist customers, those 2,000 that you acquired to up grate grade to opentable because it sounds from interview wsz some of them that they arent too eager to do that. Well, they absolutely can stay on the technology, thats what we said at the time of acquisition. And thats still the case today. Matthew, let me take you to the broader picture. The grand vision that your now laying out is impressive. No longer just a transaction company. You have been experiencing company, when people walk into the restaurant, the host will recognize their face. They will know what to order because theyve already seen the pictures of the food and the chefs recommendations. When they walk out of the restaurant they wont need to wait to pay the server. How do you get there . Thats going to require a lot of engagement, a lot of moving parts. Well, the great news for us is that we already have the foundation in place where the Largest Network in the world connecting diners and restaurants. We ended the quarter with over 31,000 restaurants and weve seated over half a billion people through the network today. So we have this really strong business, this really strong connection between diapers and restaurants. Now its really fun to expand from a transaction to an experience company and do the things that you just mentioned. But surely thats a long way to go, to get that sort of engagement. I mean, lets just come back, as you and i have discussed before, the payments pile t lot that you have in San Francisco at the moment and in the Conference Call you acknowledge, you know, how stressed some of the waiters can be, the attendants can be, as to whether they buy into this idea that somebody walking out of the table, out of the restaurant will have paid. That simple communication is still not yet been honed down, has it . Actually were doing some fantastic work there. And we have the pilot live right now. And early feedback, ill stress early feedback is that the experience feels very organic and natural to the service level. And both from a diner perspective and from a restaurant perspective, the team is very excited about the early results. So, yes, it is a challenge but were really up to that challenge. And because we have the technology in the restaurant already and in the hands of the consumers, were the ones that are in a position to actually solve this. And its a really worthwhile pain point to solve. Okay. So lets say you can raise the engagement of the restaurants themselves. Smor gas board of things they might be able to do as a result. How do you raise the engagement of the diner . The idea is that they will have recommendations from their friends what they should choose, what restaurants, what dishes . Is opentable fundamentally a social network . Are there different sorts of people wanting Different Things . Whats really why were in a unique position is were focus and dining out and delivering amazing experiences when youre dining out. And what comes with that focus at a local business is really an opportunity to be the experts and to really help people discover that perfect dining experience. Because we have the Largest Network we also have the insights on where people like to go to eat and they can start to follow their friends or follow chefs, where do chefs like to go out to eat. Theres a lot of extensions that we have available to us because of all work that weve gotten to build the Largest Network in the world. Im i. I know that 2014 by any accounts are going to be a building year. Matd thousand, keep coming in and keep talking to us. Its a fascinating story. Matthew robterts here. Meanwhile, google glass explorers being warned. The tech giant has come out with dos and donts. Im sure among them, dont be evil. That brings us to this mornings squawk on the tweet. Naughty google. There are children watching. Whats a familyfriendly term for Google Glassholes . Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. Whether its building the worlds most advanced satellite, the space station, or the next leap in unmanned systems. At boeing, one thing never changes. Our passion to make it real. Tweet time this morning. Google has come out with a list of dos and dons for those of you who use google glass, so weve asked. What is a familyfriendly term for those google glasswarers . John writes, more like google i have no friends. Mary beth writes, geeking toms. Thats my favorite. And eye van writes, google clickheads. But i think kayla said it all when the Mission Continues to be do no evil. Thats their point. It is. P youre wearing those and no one can see what youre looking at who is to know, who is to police. A bit like manufacturing Nuclear Weapons and saying dont use them. Youre calling google glass a nuclear weapon. Yes, i think so. Its very bad form. I wourchlt have somebody passing the google glasses on. You make them take them off . Yes. And mobile phone is in the corner. You cant have that. Nicely done. David, well see you later. Well talk hopefully more ukraine in a few minutes. Increasingly important story. If youre just joining us this morning heres what you missed earlier on. Welcome to squawk on the street. Heres whats happened so far. Theres only three positions one can have in a bull market. Really long, pleasantly long, or neutral. Sometimes neutrality is not a bad place, but one does not get short. Its still a bull market. I think one other big advantage we have in this country is almost 80 of all the Software Developed in the world is developed right here in the u. S. And thats really going to drive this digital revolution. Weve got a big advantage over the rest of the world. How much capacity are you using, the move to high def by net flex, for example, using more bandwidth. Its going to be a contentious issue and one that we are with for some time. Who pays the freight . I think were still generally going through the soft patch in terms of the weather. The data was probably stronger a few months ago before the weather and now were seeing a bit of an echo effect on that. The opening bell. We saw an alltime record for disinfecting wipe shipments in the october, november, december quarter. Any of those products that disinfect, youre right, were seeing a big surge in those products. We have weddings, private dinners, conferences, visitors coming. We have country game fairs, we have a lot of different events to try to draw people in. And then theres a culture. We want to try and make people love it. We want to make people want to come. And fortunately for us, downton abb abbey has really done that. Good morning. Live here at post 9 at the new york stock exchange. We want to get you a check on the markets. An hour and half into trading. Right now were seeing the dow up by 65 points. The s p is also slightly into the green wall. The nasdaq is slightly into the red. Watching shares of zales soaring this morning. 21 a share and cash. Timely deal post valentines day. In total. Its worth 1. 4 billion. Shares of panera rallying after Fourth Quarter earnings boo beat estimates. Current quarter outlook is below forecast though. The company is saying surprise, bad weather is cutting down on customer visits. Carl . Road map goes like this today. Starts with walmart. One wall street firm suggesting the retailer should expand its portfolio by buying Family Dollar. Is that a realistic option for walmart . Well talk about that. Plus, cokes deal with Green Mountain made headlines last week. We will have the ceo and his first interview since that deal went down. Speaking of coke, what if the next time you went to drink a soda or an energy drink you saw a safety warning label slapped across the bottle . One california lawmaker wants to make that a reality and hell be here to tell us why. Meanwhile, walmart is set to report earnings tomorrow morning. But an analyst note on the retailer is getting a lot of notice today. Courtney reagan is back at hq with more on that with us. Courtney, an interesting proposition in this one. Very much so. Not everything seems to be working as hoped for for walmart. The retailer has touted the Small Format Stores as the point of success and has announced plans to add 250 more of them this year. Walmart has traditionally grown its domestic fifth footprint organically. Credit suisse is suggesting they take a different route to accelerate. Specifically to buy family door. He says Family Dollar locations have the least overlap with walmart compared to Dollar General or Dollar Tree Stores which would mean a lower risk of a deal being blocked by regulators, plus 24 of Family Dollar Stores Larger in markets in areas where walmart has had a hard time breaking down. Buy Family Dollar, if it wanted to, it could. Investors are waiting on new ceo to come up with new strategies to help slipping sales. Mkm partners says some investors would like to hear about a slowing of store Square Footage growth so the retailer can return more cash to shareholders. Thursday morning mcmillan will lead the Earnings Call for the first time. It is taking over at a difficult time, retail in general and for walmart specifically. The retailer already issued a profit warning and noted a strain from a reduction in food stamp benefits as well as weather. Joe feldman thinks mcmillan needs to continue to in aggressive pricing. Walmart needs to be aggressive commencing them to shop eight at its stores. John ledger is finding himself in hot watt were the ceo of blackberry after encouraging subscribers to switch from blackberry to iphones. He responded with this statement. I can assure you that we are outraged, too. What puzzles me more that is that tmobile did not speak with us before or after they launched this clearly inappropriate and illconceived marketing promotion. Our own jon fortt joins us at post 9 with more on this. The war of words. This is some of the best news from blackberry ive heard in a long time. Blackberry customers, the ones sticking with it are outraged they were offered iphones with no money down from t mf moest. Maybe a little Rodney Dangerfield a little reversing here, blackberry getting a little respect. It reminds you in these carriers are not operating at a vacuum. What do they owe the device manufactures . Do they owe them that respect . Only if theyre install base is still paying and still passionate and still loyal. So i think its important that tmobile is actually responding to some backlash from these diehard blackberry fans. I think if youre still using the blackberry, youre still with it after all this time, you like that keyboard, you dont want to be insulted with a suggestion that you should switch over to iphone. And john chen saying they have an offer, upgrade offer, coming for their loyal customers soon. Why pick on blash berry at this point . He was just incentivizing whats been happening already. You look at blackberrys handset numbers and subskrisher numbers. Theyve been going down. I think he was trying to accelerate that maybe. Keep people on more recent tmobile phones. Ones that seem to be more profitable. Are you impressed by chen . Early days in his stewardship here. Im impressed operationally with how he reduced the risk on the handset side. Ill have to see if he can able to lock in on the enterprise customers with kus vservices. We havent seen the numbers on that yet. I was going to ask you about the numbers. Are they show that people are sticking with the Enterprise Service with blackberry so far . Well start to get the first real peek at the upcomings earnings announcement. Thank you, jon fortt here. Heres switching gears, does your soda need a warning label. New proposal in california would do just that. Requiring warning labels on sugary drinks including soda, Energy Drinks and fruit juices. Labels would warn about obesity, diabetes, and tooth decay. For more lets bring in state senator bill morning. Senator, good morning to you. Good morning. What exactly do you have in mind . Quite simply would require a warning label as you described to provide consumers and families with notice of the noerngs proven Adverse Health impacts of sugarsweetened beverages. We know they represent the leading source of increased caloric intake, particularly among children, leading to preventable diabetes. It has both a staggering Economic Impact on our state and our nation, but more importantly, effects the quality of life for a lifetime. We know you tried unsuccessfully to raise taxes on these beverages last year. We know what mayor bloomberg tried to do here in new york. That didnt happen. Now this. Are advocates of health and not to say theyre not trying to do the right thing, running out of ideas when it comes to sugary drinks . No, in fact, i think were all of these are tools in a Public Health tool chest. Were confident the support we have from the california medical association, Minority Health organizations. The Public Health community is united. These drinks represent the leading threat to Public Health. Its been described as a Public Health crisis, as an epidemic. We believe the label warnings will give consumers a very important right to know. Consumer right to know. Were not removing choice. Were not taking the products off the shelves. Were just saying, this is an important part of the discussion and should inform the choice of families, particularly who have been using these drinks now more as a staple in the family diet than a weekend treat. Surely, senator, a lot of parents try and keep these sugary drinks away from their kids. Where does this warning originate from . The signatucigarette label come the surgeon general. Where does this one come from . A panel of scientists and doctors who have worked together nationally to focus in on what we know to be the proven Adverse Health impacts of consumption of sugarsweetened beverages. Remember, these beverages have no nutritional value. When the sugar is delivered in the form of liquid, it has a more impact, it goes straight to the pancreas, makes the liver work overtime. And the sugar is converted rapidly to fat. If this bill passes, a lot of businesses will have some effects and movie theaters, it will be on the counter, at some restaurants it will be on the menu. How have businesses reacted to some of the discussions around this . Its a fair question. We think it has a minimal impact on business, particularly on retail outlets. They would be required to post this warning label on a vending or dispensing machine. Thats a onetime action. For the manufacturers and producers, they would be required to put the label warning on the container, on the liter bottle, on the can, on the 20fluid ounce bottle. These warnings, we think, are a part of a broader Public Health strategy to promote conversation and to inform consumers. Finally, senator, you know, soda consumption is coming down relative to other types of beverages. You could argue that me lennals have a more worldly view of whats healthy for them than other americans. Why not let demographics take their course and argue that younger people are going to make smarter choices down the road . Its a fire question, but the fact is consumption rates, particularly among children and adolescents, are going up and there isnt good public information. This bill goes to sugarsweetened beverages that include the sport drinks, the Energy Drinks. Some of those mixed with caffeine which is a more deadly combination, if you will, because the caffeine has Addictive Properties to move the sugar through the body and to create a dependence and a reliance. What weve seen in some of the polling is the public isnt aware that a 20 fluid ounce bottle of soda has the equivalent of 16 teaspoons of sugar. Thats double the daily recommended allowance of sugar in our diet. Well watch the initiative closely. Appreciate our time very much, senator monning of california. The association representing nonalcoholic beverages, those companies in california did issue this statement. We agree that obesity is a serious and complex issues. However, it is misleading to suggest that soft drink consumption is uniquely responsible for weight gain. In fact, only 4 of calories in the average american diet are derived directly from soda. According to government data, foods, not beverages, are the top source of sugars in the american diet. And we are hearing from some viewers saying put a warning label on ice cream, cake, and cookies, as well. You could expand this to a lot of different products. Certainly that debate will go on. Meanwhile, were also talking coffee. Its been a great year for Green Mountain coffee. Stock up over 50 in 2014 alone. A lot of those gains coming after coke announced a 10 stake in the company. Green mountain coffee ceo brian kel kelley will join us in a moment. But before we do that, Rick Santelli, what are you watching . Were going to be watching four different areas. Were going to be talking about the ppi data this morning under the new strategy and formulation. Were going to talk a bit about housing and weather. Were going to talk about china. Were going to talking about a boon option that didnt quite measure up with andy brenner, bottom of the hour. 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. Anbe a name and not a number . Tor scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. Through sunday, save up to 500 on beautyrest and posturepedic. E savings go on at sleep train. Get a sealy queen set for just 399. Even get 3 years interestfree financing on tempurpedic. Plus, free delivery, setup, and removal of your old set. Keep more president s in your wallet. Sleep trains president s day sale ends sunday. Superior service, best selection, lowest price, guaranteed. Sleep train your ticket to a better nights sleep dow is up 50 points. Energy, one of the best performer on the s p. Dom chu is back at hq with more on that. Carl, there are big individual stories here. Neighbors Energy Leading the s p 500 higher. Land drilling contractor neighbors is the best performing stock there in that index. This after reporting better than expected Fourth Quarter earnings on impressive gains from international operations. Rounding out the top five in the Energy Sector you got big names in coal and natgas like consol energy, also Diamond Offshore and devon energy. Devon energy said it will sell liquid rich natural gas assets to canada for 2 attorney 8 billion. So a lot of individual stories, kayla, driving the big action in energy today. Back over to you. Certainly a lot of big moves there. Thanks so much for broinging thm to us. Green mountain rose 50 after announcing the partnership with cocacola. Sarah eisen has more with brian kelley in his First Television interview since announcing that deal with the soda giant. Just about two weeks ago they announced the deal, the ceo of Green Mountain Coffee Roasters. There is so much excitement about this deal with cocacola but there are a lot of questions still. For instance, do you have any sense of how big of a market this is going to be, this new category for you . I dont know how big it will be. We do know that cold beverages are four to five times the size of hot beverages. Were in the hot Beverage Business today and we think its a substantial market. Do you think its going to be enough to turn around the trend of soda consumption in north america . I certainly wouldnt rest alone on this. I think theres a number of things that can do that. I think this is one of the things that can help as we as we get the machine out there and we get the cold machine out there and consumers get used to using it and see the convenience and see the choice. Do you you have the actual machine, do you have the technology . The way the process works is you do prototypes, make the prototypes. Improve the prototypes. Were in that stage now. Weve made actual machines. Weve made them. They work and now we just keep perfecting it were we launch. Youre going to launch set for 2015, correct . Fiscal 2015 well launch. What is going to be the biggest hurd with getting this out there and getting consumers to start using it . I think the biggest hurdle in building a system like this with our same with our hot beverages is getting an installed base. So were in a little more than 18 million households today with our hot beverages. The keurig hot system. It will take us time to develop that installed base with the cold system. We think it will go and wily it this will perhaps faster than the hot system dade because we were brand new. Ten years ago there wasnt a keurig in a home. Can you elaborate what the financial terms of the deal are with cocacola . We havent made public those financial terms so i wont talk about them. Its a really good deal for both the combined assets of both companies. How do you see the coke bottlers playing into this . Its up to coke. They have a terrific bottling system. Its a youre a veteran of coke. We should say that you were an executive at coke before taking the reins of Green Mountain. You know thats important. It is important. And that well work out whatever coke wants us to do in terms of the bottling system. Thats cokes decision and theyll make that decision wisely. In terms of growth, are you planning to desdisrupt the soda, cold drink category like you did for coffee . What weve done for coffee is grow the category in an accelerated rate and bring a premium to the coffee category and tea category. We think we can do that to the cold beverage categories as well. And if you look at what the consumer told us, because when we go to homes that have a keurig machine today and we ask them what should we do next . What they tell us is can you make a machine that does a cold beverage. They wanted a coke, a diet coke, those kinds of brands at home. They want to be empowered to make them on their own. They want to have choice. They want it conveniently. They want to put a pod in, push a button and get a drink. How much of a competitive threat is sodastream . Theyve paved the way in the marketplace. They have a terrific product. So we see them as a strong competitor. Clearly investors are excited about it. Kayla mentioned your stock price since announcing the deal two weeks ago. You have some haters out there. David in horn who has aently as january 21st said he was still short Green Mountain. What do they get wrong about this company . You know, its hard to say. I would just say this, detractors make us better. They make any company better. When you have people looking and constantly challenging your model you get sharper. You get better. And thats what detractors do. And one of the continuous issues that they raise on the stock is the competition. Competitive landscape, especially since losing that patent. How do you see that playing out in 2014 . Well, we are in the process of moving and converting to keurig 2. 0 and keurig 2. 0 offers the consumer a complete new set of benefits. It does everything that current keurig does, in delivering a single cup of coffee with all the brands, but now they will be able to brew a pot of coffee, carafe of coffee, in addition to the single cup. Thats the single biggest requests consumers had from us. Can you make the keurig machine make a pot of coffee, too. I want to ask you about coffee but first, my colleague out in new york has a question for you. Brian, you mentioned how much respect you have for sodastream and big question on investors minds who watch this space after the deal was announced was what the deal between coke and Green Mountain means for pepsi and sodastream, two competitors of yours, respectively. Im just wondering. You dont know how big the market is but is there room for two athome cold beverage products out there and would you rule out doing a deal with pepsi as well . Well, first, the market, the cold Beverage Market we do know how big it is. Its very, very large and as we were saying earlier, four to five times the size of hot beverage categories. We know its large. Of course, theres room for more than one machine out there and one brand out there of machines. Just like in hot brewers. You know, theres multiple brands of traditional drip coffee machines, of single cup, single serve brewers like keurig. Weve been fortunate to do very well. But theres lots of competition out there and we expect there to be lots of competition. You mentioned on the Conference Call that sorry, sarah. I wanted to ask if the coke deal precluded doing a deal with pepsi as well. What weve said is it will be a multibrand system and it will be a multibrand system overtime. Coke has a series of first mover advantages. And that we think were appropriate and so thats really how the system will work. What consumers have told us is that they want a machine that does, for cold beverages, what it did for hot beverages. They want to put a pot in, push a button and get a drink. That seems to be where consumer demand is. Coffee, that spike in coffee futures yesterday. Expecting higher prices here . I think theres no question the market has come up and may continue to go up, you know. Were protected and well prot t protected and well continue to watch this. The interesting thing is and perhaps the most important thing about coffee pricing is single cup pricing has continued to premiumize the category regardless of what the commodity cost of coffee has done. So we see that continuing. Great to get your thoughts on the coke deal, the 10 equity stake, and coffee prices, competition. Brian kelley, ceo of Green Mountain Coffee Roasters out here north Consumer Analyst Group of new york conference. Great stuff. Enjoy boca. See you soon. When we come back, it was another solid day for team usa at the winter olympics. Well go live on the ground to sochi for an update when squawk on the street comes back. All stations come over to mission a for a final go. This is for real this time. Step seven point two one two. Verify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry, but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Welcome back to squawk on the street. I have bricking news on Net Neutrality. Fcc says its starting over with the open internet rules. Fcc chairman wheeler announcing today he will not try to reclassify broadband as public utility for now though he is keep that option on the table. The fc krrk says it does not plan to appeal a courts decision on the fccs lawsuit against verizon which effectively threw out many of the fccs prior set of Net Neutrality rules which looked to prevent internet carriers from selectively blocking or slowing web traffic. As the fcc pursues this idea of Net Neutrality, ensuring that all data is treated equally, it will take Public Comments and issue new guidelines saying its looking to focus on transparency and to hold Internet Service providers like comcast, Time Warner Cable, et cetera, to their promise that thaip theyll honor consumer safeguards. This comes amid controversy about verizon fios, another one of those Internet Service provider, slowing the speed of netflix streaming. Carl . Quickly becoming maybe the key debate in American Business right now, julia. Thanks for that. Julia boorstin in los angeles. The winter games in sochi are heating up, especially on the ice. Our Brian Sullivan live from olympic park and, brian, it is all about the russians today. Yeah, really is, carl. Sort of two clouds hanging over the games right now. When we get to sports in a second. Want to give you an update on the russian stock market. We are here obviously. The news of what is happening with the protests and the police backlash in kif, ukraine, a country financially and politically supported by russia. Has been a topic here. In fact that is the rsxs etf. Down 1 1 2 today but look at year to date. Down more than 11 . Many of the big Russian Companies have seen their shares go down in the last couple of days. Dont forget the russian economy and stock market and the region all very closely intertwined. Something to Pay Attention to. Carl, you will appreciate this anecdote and this is our segue to sports. Couple of hours ago i went into the tulip hotel next to the broadcast center. There was a group of men watching television during the russia hockey game. I assumed they were watching the game. They werent. They were actually watching a news feed from kiev about the protests and then the speech on National Television in the ukraine by the ukrainian president. This, of course, during the russia finland hockey game. Its getting a lot of attention here. Speaking of hockey, you can understand the mood, carl. You can understand how important hockey is to russia. They are out. Earlier today they lost 31 to finland. You could just feel sort of the mood of the entire Olympic Village deflate. We had thousands of people in the square. The actual circle behind me underneath the flame, watching a big screen tv. They were cheering earlier. The mood turned to desspoponden. A little boy not happy about the finish. A lot of people had tears in their eyes. Looked like they were welling up. You know how important, carl, this was to them. Its really deflating, i think, for russia right now obviously. Unbelievable. To hear michaels with michelle in the last hour talk about if there was one gold they needed to win, this was it. Couple that with whats happening in kiev. The next few days are going to be interesting to just watch the tone that putin tries to set, wouldnt you agree . Yeah, i think so. Listen, you were here for a week. The olympics are more than just about ice hockey but ice hockey, mens hockey in particular, was the sport. That was the hot ticket. You could not get into the game today. It was completely i tried to get in and i couldnt even as a member of the media because there was so much media already in there. I was a little bit too late to the door. So this is where all the attention was. Of course, United States is about to have their faceoff here in a few minutes. Theres hope for the United States. Obviously we look now to sweden, canada, and the u. S. But you could just feel kind of the mood of the place. You know all the security here, carl. You walk around. You see the guards everywhere. Theyve been doing their best to put a happy face on. No happy faces tonight at the security desk. I guess the one thing you can look for is this, russia still leads the medal count. Right now they are tied with the netherlands, 22, the u. S. With 21, and norway with 20. Leading the medal count but you know as well as i do having been here for a week that mens hockey, that loss is going to be a big blow to russia and to the Olympic Games in general for the russians. Interesting to get your take on the ground there, brian, as those results came in because its been news over here, too. Well talk to you very soon. Brian sullivan tonight in show so chi. Meantime, markeds are closing across europe. A mixed session on a day in which the data did show surprise increase in the uk Unemployment Rate. Up a tenth to 72 in the three month to december. The report showed Earnings Growth rising and a decline in jobless claims. Meantime, shares of agri on the rise. Plans to pay a dividend for the first time in four years. Tough day for european steel pipe makers who do big business in north america. The u. S. Commerce department decided not to hit south korea with tariffs on its steel pipes. A lot going on across the pond but theres also a lot going on here at home in the markets. The dow up 57 points. Well get a little bit more on that after the break. Also, a preview of tesla earnings. Whats in store for elon musk after the bell today. All that when squawk on the street comes back. Usic tony stewart in my career, ive learned a thing or two about having the right equipment and a great crew. Ive also learned how great it is to do the things you love. Thats why im happy to be part of the bass pro family. Because a name you can trust, people who stand behind you, and equipment you can count on engine starts mean everything to me. Bass pro shops. Where commitment, passion and the Great Outdoors all come together. You want everything. Orks an expert ford technician knows your cars Health Depends on a full, complete checkup. The works. Because when it comes to feeling safe behind the wheel, going the distance and saving at the pump you want it all. Get our multipoint inspection with a a Synthetic Blend Oil change, tire rotation, Brake Inspection and more for 29. 95 or less. Get a complete vehicle checkup. Only at your ford dealer. Welcome back. Bob pisani on the floor of the new york stock exchange. Lets look at the s p 500. Despite disappointing housing data, second day in a row were getting that s p continues to move up 1848. Theres your key. Thats the historic closing high. We get above that. Were at a new high. Lets look at the Housing Starts numbers. Really disappointing Housing Starts numbers for january. A lot of people would say Housing Starts are starting to fall off. Heres a fiveyear chart. Whats going on here is more of a flattening thats going on. I think some people were more optimistic in the beginning of the year than numbers that were getting. The bottom line is i wouldnt say falling off a cliff. I would say theyre flattening. The Housing Stocks are continuing to hold up. S theres your itv. Thats not a bad chart for a year. Interest rates are low. Demand is not falling off a cliff even if its moderating a little bit. Blame the weather. Five retailers blaming the weather. You will notice not big declines other than format tress and lazy boy. Panera, Lumber Liquidators citing weather for guidance and numbers. Three of the five are to the upside. Natural gas who have been doing this story for days now. Up 35 year to date. 15 in the last few days. Natgas stocks continue day after day to be market leaders overall and if you look at the actual erksz tfs and the indexes around them were dealing with new highs. Look at the xng. This is the historic basket of gas stocks that we have. Sng at a new high right now. Just a few points away from historic highs in the s p 500. Guys, back to you. Bob, thanks so much. Meantime, the Labor Department has overhauled the Producer Price index to include not only the wholesale prices of goods but also services and construction. Lets get to Rick Santelli in chicago with more on that. Hey, rick. Absolutely, carl. Its the talk of the Trading Floors today. Id like to welcome our special guest andy brenner. Thanks for taking the time to be our guest today on the santelli exchan exchange, andy. Thanks for having me, rick. All right. You know, do you think that the change in ppi is just including more, obviously the service side of the economy accounts for a lot. Its the bigger swath of the economy. Is this going to make the number better or is the timing of this, you know, theres a lot of conspiracy guys on Trading Floors, andy. Whats your thoughts . Calculating the old styles saying the headline number would have been three times larger than the 0. 2 that we received. No question if we had the old way it would have been somewhere around 0. 5, 0. 6. I think its going to come back and backfire on them. We see that the shortterm Unemployment Rate is somewhere around 4. 2 . That means that theres a lot more workers that are out there that are a lot less workers looking for jobs and we think thats going to turn into higher Wage Inflation and the very near term. So we think its eventually going to backfire on them and youre going of see higher inflation. I got to tell you my personal inflation rate is off the charts. Cable bill up 40 . Restaurants up 20 . You know, its not even close. You can tell me 0. 2 all you want, not even close. I agree. Sometimes best use the senses that god gave you. And it just doesnt feel right. Im with you. Another area. Today, two different perspectives on the housing data. The fact that starts and permits were both not as expected but the notion that permits being a little less surprising makes sense because, of course, starts are going to be effected by weather. When i looked at starts in the northeast and this isnt me, everybody is talking about it. Surging 55, 56 , that dispels some of the weather issues. Your thoughts . You know, theres no question that the fed is on a path that they want to continue to finish this tapering. They dont believe in qe. Theres a lot of talk now about whether effecting numbers, no question it is. But this is one of those cases where, gee, if there really is the weather, how come the northeast and the south are two areas that got hit hardest, showed up numbers where the west didnt. Let me cut you short on housing because i think you nailed it. Heres the biggie. Okay . The germans could have sold 5 billion euros of boons in options today. Only moved 4 1 3 billion. Should we read anything do that . Your thoughts. Rick, youre very low levels of rates in europe, as well as still in the u. S. Much more so in germany. I think this is going to be a more of a problem than people anticipate. This is your first failed auction since september 12. Andy, thank you. We came in on time. Thank you for taking the time today. Simon, carl, and the gang, back to you. Ill take it from there, rick. And acquired skill ending on time. Natgas topping 6 for the first time in four years. Jackie deangeles has more on that big move at the nymex. Thats right. We havent seen these levels fortunate gas since january 7th, 2010. Traders coming in this morning scratching their heeds a little bit on the move wave seen in the last two days and that is because the temperatures are actually supposed to get warmer especially here on the east coast. But what theyre telling me now is responsible for this is actually the drawdown in supplies that weve seen over the last few weeks. We are supposed to get another department of Energy Report tomorrow and they are expecting another big drawdown pop p. The to put it in context for you what weve been seeing, the trend line has been in the range of twice as severe as what weve seen at this time usually normally this year. Sorry, on a yearly basis on average. What traders are looking to is that report tomorrow. Saying we have options expiration next tuesday. Theyre saying seven bucks could not be far away. Guys, back to you. Incredible. Thank you so much. Its been a great year for tesla. Stock is up over 30 in 2014. Hit new highs over trading yesterday. What should we expect when we report earnings tonight after the bell . Well get answers of that after the break. [ 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. 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. Where you think youre gonna go when your times all gone . [ male announcer ] live a full life. The new lexus ct hybrid with an epa estimated 42 mpg. The further you go, the more interesting it gets. Lease the 2014 ct 200h for 299 a month for 27 months. See your lexus dealer. Excusive interview with John Williams get the view of polity makers before todays minutes come out. And airline rsz flying higher despite the deep freeze but for how long. We check in with the ceo of lowcost carrier spirit. Stock is up almost 150 over the past year. And with stocks rallying, is it time to take your money and run . The traders reveal the highflying names you should be taking profits on. All straight ahead on the half at the top of the hour. Speaking of highflying names, tesla is off new highs above 200 it hit yesterday. Still up 30 so far this year. The company due to report results. Down what we expect, bring in brian lee i have, senior auto motive Senior Analyst to talk tesla. Stock hit an awetime yesterday. Wall street says this is the make or break quarter for the company. Do you believe that . I dont think its make or break for the company but i expected the stock price will move based on what the news is. We already have an indication from the company that theyre going to have a very Strong Quarter in terms of sales. It was obviously a very big year for tesla, 2013. Someone in every single state bought a tesla, production ramped up significantly despite some of those headline troubles from some of the fires. It was a very big year. But do you think that 2014 will have a similar outlook, that it will be just as bullish looking forward . Fundamentally it should have an excellent year in 2014. I think revenues will double. Increase the production. Demand is pent up there. There are more people who want to buy the tesla than actually can buy it right now due to production. And i think thats one thing is were going to be looking forward this afternoon in the Conference Call to hear what the production expectations are for the year. Whats the number . Seems like earnings comes down to production. Whats the key number to watch tonight . Well, were looking at the number production, you know, they did 6900 last quarter. We expect the sequential production. Basically over the year we expect to see constant progress, double again in the u. S. As well as grow internationally. China is an important market for them. What did you make of this apple news this week . Well, i think that was more of a story for the media than it was for the company itself. As far as acquisition, we dont really discuss that. Its the mark and cap, i dont see the strategic value. The more likely thing would be about technological connections, doing a partnership with that. You see tesla revenues growing 466 in 2013. With a company thats growing this fast oftentimes the numbers seem like theyre extrapp trap lated. Is there a number you would see that would worry you in this report tonight . No, because theyre really coming from a very small base. They finally got to the mass production last year. I think i indicated before we expect them to revenues to approximately double this year and the key is for them to improve their margins so that trails down to the bottom line in the Earnings Growth. All right. Efraim, for now, leaving it there. That company reporting today after the break. Live fpictures from kiev. Youve seen the headline. Threemonth stalemate in independent square basically being broken. Water cannons, molotov cocktail, armored personnel carriers, hundreds injured and 25 killed at last count. Its going to be a long night in kiev as it was last night. As we get more headlines we will bring them to you as soon as we can. When went come back, it is time for a showdown. Who belongs on the list of the most important people in business over the past 25 years . Murdoch or malone. [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. As part of our 25th anniversary cnbc is compiling a list of the 25 greatest influencers in business over the past quarter century. And we need your help. Who should make the list . Today weve got a faceoff for you. Its the battle of the media mogals. David is going to start us off. All right. Although both have plenty of merits. Start with john malone who helped create the modern day cable industry before selling the company to at t in 1989. Malone has been at the center of the creation of many of the content companies now in existence. Im not just talking about the ones, of course, that either controls individually or through Liberty Media such as discovery and many of its networks but the likes of a cnn or b. E. T. To which he gave distribution and carriage on tci. Certainly was important in building that relationship. If capitalism is about building value and delivering returns, malone is tops over the last 25 years. He realized early on that levered equity returns are the key to creating value and, of course, as our own viewers know, hes been focus and tax efficiency. Liberty media and many spinoffs has delivered a return to its shareholders of nearly 18 over the last 18 years. Now, liberty to go public in 1991. That is according to the company. 18 beats every single Media Company out there. By the way, beyond all that, malone is the largest individual land owner in the u. S. With much of that land to be preserved for future generations. And hes also doing interesting things on succession and preservation of his own companies for future generations. First, heres Julia Boorstin in los angeles who will present the case for a man he is familiar with. Rupert murdoch is the ultimate media mogul building a newspaper business into a international empire with assets ranging from the music studio to star india and a new sports cable channel. Murdochs launch of the foult network in the 1980s and fox news in 1996 made him a force in television. While his 5 billion plus purchase of dow jones in 2007 gave his publicing business more global power. Murdoch has shrugged off major phone hacking scandal and news of the world has been able to grow shares of his two Companies Since they split last summer. News corps market cap is 10 billion. 21st century fox is 70 billion. That makes the Murdoch Family worth 13. 5 billion as of september according to forbes. Carl and kayla. All right, thanks for that, julia. Its a tough choice and two guys i know our viewers are familiar with. Malone was an early investor in cnbc. Sirius, xm, barnes and noble, live nation. All through liberty. Whats going to happen at liber liberty . Interestingly, weve got news today on john malone and his plans for succession. Its something he menged to me innen interview last may on cnbc, which is how do you preserve the voting shares in some of your companies such as discovery and liberty global, both of which he has essentially what amounts to a controlled stake. Its not more than 50 but his vote is large enough its a control stake. And this morning in filings we learned that he has or will be granting rights to the ceos of each of those companies. Mike freeze of liberty global, david at discovery to buy essentially his Voting Rights from him at some point in the future. No time soon. Malones 72. Hes still chugging along as our viewers well know from the fight, of course, that they lost for Time Warner Cable, or appears they lost. But none the less, this is very interesting. Rupert murdoch hasnt even done that for his own kids and yet malone is willing to do it for ceos who he is completely unrelated to, i might add. A fascinating plan on his part in terms of succession. He is noted leaving this company to his children. Very interesting. I know a lot of those ceos will be happy to learn that, as far as that race goes. David, thank you for that. Julia, when were thinking about voting on the contenders, you wonder who what extent if if the all viewers will feel that the phone hacking scandal hurt the legacy. Well see when they vote on cnbc. Com. Make sure and go there and do that. Apple is bringing its itunes festival to the United States for the first time. Well tell you whether, thats coming up next. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. 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We inspect, analyze, and recondition each one, until its nothing short of a genuine certified preowned mercedesbenz for the next new owner. [ car alarm chirps ] hurry in to the mercedesbenz certified preowned sales event. Visit today for exceptional offers. Apple is bringing its initunes Music Festival to the United States for the first time. Five nights this march apple will be streaming concert live by south by southwest. It will include cold play and imagine dragons among others. Jon fortt joining us with more. I saw a nice tweet the other day. Said, i like imagine dragons better when they were called cold play. Funny. And cold play when they were called u2 as people used to say. Interesting move in apple here. Theyve been doing the itunes festival in london for seven years. Bringing it to the u. S. Moody theater for the First Time Since sous wide. Its interesting because apple is now the biggest music retailer around. They have these artists come in and perform at the festival for free. Kanye west takes a little issue with that. He said at one of his concerts to tim cook in some indelicate language, you are rich as so you shouldnt ask less indelicate language . Imagine that. Its good marketing for apples eco system. Probably not bad marketing for the artists because apple will give these tracks away. A lot of times artists can see a boost in their sales. Artists will be performing live at south by. How do you get it . You can get it through itunes on your foep, on your pc, also apple tv and apple has a way of giving these concerts away for free later in the year often. Keith urban, pit bull, a lot of other artists lined up. Sure to be a big event. Thanks. Thanks a lot, jon. One more picture on the kiev finding nightfall upon it. Youre basically looking at the opposition camp which has now been burned as the debate continues as to which way the country is going to go, toward the west or toward russia. Big questions for them. No compromise appears to be in sight. We may be in for more trouble overnight tonight in kiev. That does it for us here on squawk on the street. Lets get back to headquarters. Carl, thanks so much. What do you guys think, before we go here, about what this market has been doing . Were trying to figure out if this whole move back from the lows, carl, of that correction are for real. Not far from break even, scott. 1848376 is the number to watch. Six points. Certainly a couple of weeks ago you wouldnt have thought we would be here. Nasdaq is only one positive for the year but looks like it could be that back. Well see. Kay larks comen organization you dont want to be greedy here. Up eight straight days. What do you want, nine, ten . Not even Housing Starts can hurt that. All right, guys. Have a great on