Transcripts For CNBC Squawk On The Street 20140320

Note. As for the european markets lets go to the map. There is more red than green on the screen today. Mirroring really what we saw in the United States post the yellen News Conference. Our roadmap today starts with the markets. Stocks under pressure again after sliding during janet yell yellens First Press Conference yesterday. Is it all about interpretation . Well explain. Plus, Goldman Sachs is the latest bank to go bearish on china slashing its Growth Outlook for the next couple of years well tell you why . And how about lennar and underarmor as well the Companies Making big moves thus far this morning and, of course, nike reports after the bell this afternoon. Well go behind those numbers and tell you everything you need to know. Well, its the message heard round the market world. Courtesy of janet yellen in yesterdays News Conference following the fomc meeting the fed chair said the period between the end of the feds bondbuying program and the first rate increase from the central bank could be six months. That indicates a potential rate hike in early 2015. The language that we used in this statement is considerable period. So, i you know, this is the kind of term its hard to define, but, you know, probably means something on the order of around six months or that type of thing. But, you know, it depends what the statement is saying is it depends what conditions you like. Jim, many Market Participants went into the fed meeting expecting to hear the dove and the hawk showed up at least in the ears of some. And therein lies the problem is the interpretation of exactly what janet yellen was saying yesterday. Shes kind of like a dawk. I went through the coverage and i went through the New York Times and the wall street journa journal, heres investors business daily the usa today, and the Financial Times and they all have a different story. Its interesting. Some of the stories have within the story heres investors business daily repeated the pledge rates sustained near zero. Next line rates are going higher. What we have is a genuine confusion which can, of course, trigger what the usa today calls right on their front page a stocks yellen speaks, stocks swoon, how about yellen speaks we dont know what she said. She speaks with listen, were going to raise rates, fed Officials Say rates are going up and you read 2. 25 number, holy cow, 2. 25, you end up saying ill sell because the only reason were up this high is the rates are low. Thats a big prediliction for a lot of people and then ill look at it later and i think thats whats happening. I got to tell you if you go through the press reports you dont get a lot of confidence. I dont know why she didnt say youre a sports fan, youre a sports fan, look, thats next season. I dont want to look through this game. But she may not be as nfl oriented as you and i are. One of the Big Questions going through the meeting and her first fed News Conference was how effective it would be because bernanke had difficulty communicating with the market. Were back to the old regime to what did they say . I thought the Financial Times headlines was interesting, yellen slip. I heard rookie gaffe written in some articles. Well, when i read these things i think that theyre too harsh. Yes, did she need to say six months . Wouldnt it have been better to say as to stick with the data dependent. The six months suddenly gave people something to hang a hat on. I can understand why bonds would trade. Is it a rookie gaffe, let me take it another side, which if it turns out we get closer, do you know what im not going to be bound by the six months then Interest Rates go lower. Maybe she did what we want stock people to do. We want them to unpromise, ceo, stock oriented ceos underpromise and overdeliver, hey, listen, six months, i dont know, maybe it should be nine months. I think shes given us a range. I think those that sold are many people who believe that the reason why were up here is because of the fed. And i can understand that. But i dont think were up here because of that. I think were up here because of profits. Its a fundamental ideological difference between those that want the fed out and if the fed goes out theyll sell and other people say, listen, if the datas good and profit goes up and stocks go up. Either way you are not looking at a hike in Interest Rates until early 2015. Were in 2014, so were looking down the road. And from the statement i wrote down the comment from the statement because theres nothing in this quote that i want your reaction to that leads you to believe that policy has changed in any dramatic way whatsoever. Economic conditions may for some time warrant keeping the target federal funds rate below levels the fed views as normal in the long run. That says rates are going to stay long for a long time. I once had an interview with bob reuben who used to be my boss at goldman who was treasury secretary and he said at the outset of the interview which is what yellen should have said, if uf think theres any news in this interview, if you think im giving you anything different from what ive said to anybody else if you think this statement is of any use to you other than all previous statements, then i know you dont know how to be a journalist. Want to that be great if she started with that . Those that take me out of context would be wrong. Because i think she totally kept with bernanke. She should have taken a page from bob reuben. This is one of the challenges in the new fed if you will with an era of transparency where they have the News Conferences. Youre not relying on the statement which was parsed six ways to sunday. Right. And now you get the comment on print and you get the comment from mouth and they can look like two different things. Yes. It becomes more difficult to interpret. It is. Im not saying that russia went to glasnost and went back to dictatorship and maybe we should go from glasnost to bernanke back to dick tatorshidictatorsh. Its more difficult to maneuver. Had she had said instead of six months and followed or consistent with what weve been saying, i think what would have happened is people would have sold the market and then bought it back. As we can admit it wasnt much of a correction yet. Lets not go nuts. It wasnt that much. At the point it was down 200 and rallied back to down 100 or so. But even so you think maybe you should wait until the rubble sort of settles before you take a stab at the market here or what . Look, theres two markets again. Paylocity, okay . Paylocity . A cloudbased play. Cloud. If you can use the word cloud and software as a service, those four words theres another one today that well have the ceo on this very program has the magic word in it. It opened up 40 . Oh, no, thats not. Scripps says it opens up 40 . Well probably have to wait for that. In the meantime the real cloud plays are doing terribly. Thats the two markets. Theres the market of the non lets say salesforce. Com were to go private today and come public tomorrow, it would open up 20 . Im just say spg the traditional cloud plays arent keeping place with the brandnew cloud plays and that means froth. Salesforce, interesting. It reported, the stock went from 67 to 68 and its never looked up again. Mark benioff the king as software as a service cloud. And these lets say i dont want to use the word pawn plays. How about bishop cloud not secular. Knight cloud plays and game of throne, they look, no, they go sideways. These arent in the league of the companies in cloud that cant get out of their own way and thats worrisome. What may be worrisome as well, jim, to others in the market today is goldmans outlook on china because it has revised its 2014 growth forecast for that country now dunn to 7. 3 gdp from 7. 6 , the firm says both trade and consumption disappointed in the first two months of the year. Theyre looking at sequential growth to 5 from 6. 7 . I mean, people have been concerned about china for a long time. Now goldman says, well, maybe its time for the numbers really to come down. Barely 48 hours ago you and i had a conversation. We said when are the estimates going to come down for china so they can beat them. This is the beginning. This is the bar being reset, so when the numbers come out we can say, oh, yeah, thats in line. Im surprised everyone has to do this and someone ought to take it to 6. 8 , you always got to get a low man so that guy can say china better than expected. Im not kidding, baltic freight has literally climbed almost every day and copper obviously telling the other side of the story. People are searching for knowledge about china. I think if china estimates come down we can get a more level playing field. You wonder at some point if they as we talked about the other day lose the seven handle and start to have a more realistic tone of six. 6 point something. And lets not lose sight of the fact that we had jobless claims today that i regarded as being pretty good. Not so good that shell say five months rather than six months. Well play the month game. But i do think that china more realistic expects as makes it so every piece of data comes out of china doesnt kill us. Right now china comes out they can do beijing, within tiananmen square, zillow, you know, down. Literally its that granular. We got to get out of the granularity of china and start focusing on the macro of the United States which is pretty good. And to your point, lennar out with earnings. Look at that. Following kb yesterday. From a Macro Economic stand point here that gives you more reason to be optimistic about whats happening in the economy here, doesnt it . Yes. New orders up 10 . New dollar values up 27 . These are numbers. We wrote out housing, what, a couple of months ago we decided Spring Season was bad. Were not even in todays the first day of spring, congratulations. Thank you. Hope it matters. I still have a winter coat, by the way, which is absurd. Spring technically doesnt start until 12 57 so its going to warm up between now and, you know, by the end of the halftime show. Its going to be spring. You mean it happens during the halftime . It does. I hope you have carl icahn on versus ackman debating when spring begins. When i look at the lennar numbers, okay, kb homes, was it an outlier, no. Very california oriented. Remember, based in l. A. There are hedge funds, we always get emails and the hedge funds are predont nameminantly sayin what kb and lennar says. Who are we supposed to listen to . I had spencer rosscroft, zillow, hes the keeper of the numbers. Not caseshiller. Hes on his hand held how the country is doing. And rates are rates are going to climb a little because demand is very strong. Pricings up a little bit. Spencer raskoff im adopting zillow numbers and no longer doing caseshiller. Its too powerful. When do the Home Builders themselves become a buy . Even the ceo of lennar said its too soon to predict what will happen with the spring selling season. Stuart miller is a great ceo and hes trying to set expectations a little bit lower. Those stocks have been on a tear. Toll bottomed, kb was up, kb was up a buck 29 and then it was only un80 cents when yellen used the sixmonth comment and as cooler head prevailed it goes back up to a dollar, but what im saying these stocks have already been on the move. I dont want to chase them. I dont mind being in on the stuff in the home, lets do whirlpool. Fortune homes the brands and security, those all work for me. Sherman williams timely upgrade yesterday by Morgan Stanley. These stocks are not expensive. Did you really just get off a plane . Yeah. I dont believe it. I dont believe it. You slept in your own bed last night. No way it could possibly happen. No, i was on seat 4d. The rest of the team was in the back somewhere. I dont know where they were. Steerage, they were in steerage. Its like the not the titanic, because we got home. Coming up sally smith with her game plan about big business in march madness, but first starbucks what a moment that was. Starbucks and oprah making a brewing connection. See what the companys Ceo Howard Schultz told jim about that. Lets take another look at the futures a day after the fed. Still an implied open that looks negative. Down 50 for the dow. The s p and the nasdaq look like they will be negative off the open as well. More squawk on the street live from post nine at the New York Stock Exchange when we come back. 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. For advice, retirement, and life insurance, a 401 k is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable, professional. Im actually a dj. [ dance music plays ] woman [laughs] no way that really is you . If theyre not a cfp pro, you just dont know. Cfp work with the highest standard. I feel good i knew that i would now i feel good i knew that i would now i cannot give you anything other than to say stay tuned and put the seat belts on. Starbucks Ceo Howard Schultz wasnt kidding when he gave jim cramer that message on this program. Hours after that interview the company made lots of news at its annual Shareholder Meeting including plans to debut oprah chai, set to go on sale in the u. S. And canada on april 29th and heres what mr. Schultz told jim last night. Tea is a 90 billion global category that we believe has been commoditized and ripe for innovation. When we started thinking about how are we really going to transform sea we discovered that oprah is passionate about tea and chai. That was schultzs one more thing moment bit it was a big moment for those that were there. Yeah. I thought it was. Let me just explain. Because we debated it honestly as it happens. We debated it, would oprah do for tea what she was able to do for uggs. Uggs was 25, 30 stock. Oprah went all in and that stock quadrupled. Could she move the needle for tea given the fact that shes no longer as visible. I think thats an issue. We ran a documentary if i recall on this network, jim, the oprah effect, right . I always got her christmas the christmas issue and we recommend the stocks that she endorsed. Cnbc potential 25 contender as is howard. So, she has impact. Heres what i think is interesting. If this is, like, the Oprah Book Club, then this will be a top ten seller. Weve all been trying to figure out when is howard going to make his move with teavana, and its a drive along with food and mobile payments and along with consumer packaged goods, along with handcrafted soda along with basically what i would regard as being the worldwide penetration of tea because those tea drinkers, many of them in other countries not the United States. Is there a halo effect to this meeting . The stock started moving up frankly during your interview. I thought it would sell off frankly, i thought it would sell off when it was opera and not the determination that cocacola is joining forces with starbucks to develop a worldwide domination plan. It was just oprah. But, you know, when you look in the room and you talk with people, there is no just oprah. Oprah is the partner you most want to have if you want something in the house. And this matters. It matters because tea has puzzled everyone. Why . Can it really be big . Oprahs big, tea can be big. Is it additive to the numbers now, no. Will we revert to the issue was coffee, no, because what howard said in the interview which was great, focus on the price of coffee. He said if you want to worry about something, its dairy short term the stock give up some of its gains, probably so. It was a pilgrimage like the pilgrimage to omaha, i should hopefully one day if youre howard theres a pilgrimage to omaha and buffett, but do you know what, i think it matters. I think she matters. She has always mattered. Those who underestimate opera, how have they done . You short opera, hows it done . Shorting opera is kind of like shorting the s p. Shorting the dow at 9000 not been a smart bet. Shorting netflix for a while. Shorting tesla . Did you almost go there . I did. Its not shorting 3d printers thats probably a good call. Where is the kermit video when you need it. Up next its cramers mad dash. Lets look at the futures, it looks like a down open. More from the New York Stock Exchange straight ahead. Ge stra. Especially if youre thinking of moving an old 401 k to a fidelity ira. It gives you a wide range of investment options. And the free help you need to make sure your investments fit your goals and what youre really investing for. Tap into the full power of your fidelity green line. Call today and well make it easy to move that old 401 k to a fidelity rollover ira. No two people have the same financial goals. Pnc investments works with you to understand yours and helps plan for your retirement. Talk to a pnc investments Financial Advisor today. Because im happy clap along if you feel like a room without a roof along if you feel that happiness is the truth seven minutes before the opening bell and time now for cramers mad dash ahead of the market open. X1. Wow, this was one, this is a 3d pribter it will be down badly. The revenues were down a quarter to a quarter of the link quarter. Really disappointing. Remember, this is a bit of a cult. The people who were part of the cult never believed they are part of a cult. They believed that they are solid investors. Listen up cultists or solid investors hewlettpackard is also talking about the commercialization of 3d obviously for the longest time people are saying when is hewlett going to move in. They have an israeli skunk works that has always been considered going down the next 3d. Had is also going to hurt 3d, ddd. The stock that has just the king. One year. Rises like its sherpas here, mallory and we got what im saying here is this is one of the worst head and shoulders plays ive ever seen. 3d when i was doing my book signing for get rich carefully this weekend at costco, this is the stock that is now most asked about. Its supplanted apple even as, hey, when is 3ds going to go back, when is 3d going to go back, no, they tend not to. So those who are, like, clinging to 3d, and i felt the x1 combined with the hewlettpackard announcement, and hewlettpackard also boosted dividend, make me feel very uncomfortable saying this is the bottom which is what a lot of people feel. A lot of people talking about these stocks. We have many more winners and losers on our plate this morning. Find out which names were talking about. The opening bell is just minutes away. [ male announcer ] a car that is able to see, to calculate, to think and can respond to what it encounters. Even if that means completely stopping itself. Its the stuff of science fiction. Minus the fiction. The 2014 eclass. See your authorized dealer for exceptional offers get a 200 best buy gift card during sleep trains big gift event with purchase of selected mattress sets. Or, get 24months interestfree financing. Sleep trains big gift event is ending soon. Your ticket to a better nights sleep so our business can be on at ts network for 175 a month . Yup. All 5 of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line, anytime, for 15 a month. Low dues, great terms. Lets close new at t mobile share value plans our best value plans ever for business. Became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Today Buffalo Wild Wings gets a bracketseeking boost. Is it a winner for investors. The ceo dishes on rising costs and strategy. Conquer the morning, conquer the day. Squawk on the street 10 00 a. M. Eastern on cnbc. You are watching cnbcs squawk on the street. Live from the Financial Capital of the world where the opening bell is set to ring in about 2 30. Well be watching a lot of stocks off the open and under of them is under armour which stern ag said valuation has gotten too rich and time to bail. Under armour is a teltth technology stock, when you sit down with the founder and ceo and the king of underrm armor, this is the told when hot, cold when hot. Its moved up tremendously since the last quarter. It is even moved up since the olympics debacle that turned out not to be a debacle. I understand the valuation call. It makes sense. But this is one of the hedge fund calls. You got to sell it and buy it back because it has a lot of momentum. Pl th they give a threeyear price target that they dont give a lot. 170 bucks. Its hard for the investors to make sense of a call where they say valuation is too rich. But the stock is going to 170 in three years. Theres no new jersey state trooper looking at a stock with a radar gun and saying i will pull you over. Slow down for a little bit. Give me a break. But when im out of eyesight, hit the gas. Thats kind of this call. But, look, if i were a hedge fund, you know, this is one that has moved up a tremendous amount. Lets say nike which my Charitable Trust owns doesnt do a perfect number, then under armour will probably go down in sympathy. It moved up too quickly but sometimes that happens in a bull market. If you think were in a bull market, which i do, which i do, its part of the course. Do you glean anything from Dicks Sporting Good was good off of what nike could deliver . The ceo was on squawk on the street exclusively not that long ago, a couple weeks back. Dicks and under armour has been a remarkable partnership. Under armour moved into china. Eight stores in china. Its a company that has ambitions like you hardly ever see. Can it get back ten points . Please, of course. Big deal. The clapping has started that means the opening bells are going to start ringing. Theres a look at the real Time Exchange the cnbc s p 500 realTime Exchange. The opening bell is going to ring in just a moment here at the New York Stock Exchange in less than ten seconds. U2 holdings a provider of cloudbased Banking Services celebrating its ipo today well speak with the ceo of that company in just a few moments. And at the nasdaq measurement specialties, manufacturer of sensors used for what else measurement. That makes sense, right . Yeah. Whats in a name . Yeah. Id have to dig too deep for that one. Tomorrow global force becomes public. Symbol thanks, thats kind of a twist, right . Well look for the open if q2 holdings has the magic word in it cloud. Absolutely. Well talk to the ceo as well. But a number of stocks watched off the open. You said based on this move postyellen yesterday and this jump we saw in rates that bank stocks are the most likely beneficiaries from all this, right . Remember, weve got some fed judgments going to be made today on how the how much the banks are able to return capital. I think the bank stocks have lagged here again because they are pure plays on a little bit of inflection. The yield curve. Remember, it never mattered how many mortgages they were righting. What matters is the Net Interest Margin and how little they were paying you. Cd rates have barely budged. Notice this morning as the market opens a touch negative off of yesterdays downdraft pestyellen the banks are moving up. Morgan stanley is up half a. Ers and citigroup a up a fifth of a percent. Jpmorgan. Return capital and the numbers are going higher, isnt that the definition of what you want here . And i feel that a lot of the banks have just kind of waited things out. Its a big part of the s p. If you can raise numbers, an analyst tomorrow could make a call. Listen, im raising numbers on banks and the stocks will take off. Also by the way, its very funny, europes down because of us. The market is sometimes so stupid that, therefore, we say europes down, sell us. I mean, at a certain point theres an end to that vicious cycle down. I think these rate sensitive segments of the market, reits, utilities they got hit. Rates have been lower and now you get a jump, what does it mean for those spaces . Those are plays that wont work in this environment because if you take yellen at her word obviously that things are getting a little bit better, you dont want to hide in the utilities. Cone con ed go down, and i would be careful about the stuff that you buy when you think that the cycles not going to kick in. I would like the companies that do well when the yield, when the tenyear goes to three. Remember, jamie dimon when i interviewed him on this show he wants rates to go three, four. If they get to that he can add 4 billion to his bottom line. Wow. I mean, thats important. This ebay story is getting a lot of chatter this morning as well. Because icahn now, you know, apparently wants a 20 ipo of paypal rather than a spinoff of the entire unit itself. And i just wonder as you look at ebay shares this morning which are down a half percent, if the market views that as negative that maybe carl appears to be softening his tone a bit if thats a negative now for ebay because the stock has had a bit of a nice gain since he disclosed and ebay disclosed the position. I think a lot of people feel when you do one of the spinoffs, all it is it cuts numbers for everything. You have to have separate boards and all this armslength stuff. It is not a solution. I was with Howard Schultz yesterday. I think hes got the greatest mobile payment solution out there. The best technology. Now, i think hes going to license it to the likes of i cant particular but lets say a whole foods and chipotle, that ilk and that can create value internally as people say, do you know what, that could be a rival to mastercard and visa and paypal. This bring out 20 has people saying i guess carl isnt on the warpath as much and the warpath has driven the stock from 48 where it would have been after that notgreat quarter to 58 so lets do some selling. Im not going to disagree with that. I wonder what the next move is going to be, you know, because its gone back and forth in a fairly contentious way between carl and Marc Andreessen who is on ebays board and that goes back to the skype transaction. They have fired off some pretty nasty letters and comments at one another so, you know, carls pretty cagey. Right. Im not necessarily sure hes walking away. Well, is there any hope at some point between 12 00 and 1 00 we might hear from carl . You never know. Im glued to your show if thats the case. You never know. Talk to people that work at microsoft, they find it odd heres carl saying, listen, skype, they let it get away, its worth fortunes, talk about andreessen stole it, but microsoft gets no credit whatsoever for owning skype. And isnt it interesting that microsoft started labeling xbox the most exciting part of their portfolio as xbox brought to you by microsoft. They no credit for skype or xbox. Its really kind of extraordinary how much is buried within the rubric of microsoft. The stock has gotten a nice lift lately off of the office for ipad announcement or reports and, you know, there seems to be i guess a more positive tone towards nadella, what hes going to do at the helm. Look, he has the ability to say, do you know what, the whole nokia system, im writing it off. Im going to go androidlike. Im going to be agnostic and suddenly you have another player that is not wedded to a hardware device, a hand held that people arent crazy about. Turns it into agnostic player with xbox. Xbox is incredibly powerful. I was using the xbox to do a workout with the connects. Like, some woman telling you go, keep going, youre doing great. How does she know . But it is an interesting system. And i think that microsofts going to begin to start labeling things. You know, they put so much money behind windows. The next generation really thinks of windows as something that you play ball with and you smash. I think were going to get rid of the windows, lets say im microsoft, stop spending all this money branding windows, start spending it branding skype and xbox and youre going to get a continued higher valuation for microsoft. One more comment before we go to bob on the floor. First solar because i wanted to ask you about it. Yeah. Today the stock is getting a bit of a bump but its pretty active. Give me a break. I came on the show monday, tuesday, big Analyst Meeting the stock will go up ten. And this morning raising price target. One of the things that annoyeded jpmorgan and deutsche bank, one thing i find annoying they raise the price target when the stock goes up. Okay . Do you know what, those are not meaningful calls. You take profits in first solar. First solars quarter wasnt that good. The stock go from 58 down to 53 and the analysts meeting and the same pattern that happened last year, and the analysts meeting gets the stock higher and then it drifts lower, caching, caching, first solar. Bob on the floor we have an ipo and a pretty good crowd. We do. We have a very nice crowd. The ipo well have 21 ipos in the next eight days as of yesterday my count so its starting today, weve got a cloudbased Online Banking company q2 holdings and indications right now 13. Weve also got one over at the nasdaq severe burn Biotech Company thats a metawound 5 million shares at 14, 14 to 16 and no opening yet and no indications on that. In the meantime today, mixed market but you notice the banks are up again, citigroup and bank of america, higher rates helping them out. But the higher yield curve doesnt but the prospects of a higher rates help them out and energy and materials a bit on the downside. Emerging markets had a tough night overnight. Look at what they are facing now. A stronger dollar potentially higher rates. Less accommodative Monetary Policy in the u. S. And thats not good for emerging markets overall. I think well see more volatility in the emerging markets area. A lot of them have big current account deficits talking about your thailands and turkeys, india, brazil, all of those have the characteristics and a lot will depend on what happens in china. China is down pretty big this year but if they weather some of these concerns about credit risks that are out there, that will certainly help the rest of the world right now. Goldman did lower the gdp estimates for china today here. It was 7. 3 . It was 7. 6 and now its 7. 3 . Elsewhere in terms were still waiting for q2 i think you are right noting that kb home wax not an outlier. I want to put up the numbers for lennar. Orders were up 10 , less than expected but the rest numbers were spectacular. Average selling price 18 up. A tremendous number. Gross margins 25 . Im the son of a home builder, i grew up in this business. A company like that 25 Gross Margins . Thats a tremendous number overall. And heres the most important thing Stuart Miller said sequential improvement month over month was continuing. Thats very important. He said, i dont know what its going to look like but he clearly indicated stuff was improving month over month. In terms of the retail numbers its another bringdown day. Im tired of talking about it already, but cato brought the numbers down for 2014 big time. Im talking 25 below expectations. Those are huge takedowns overall and even burlington guided lower. Specialty has been a total mess this year and it doesnt matter, trendy, untrendy, discount, not discounted, it doesnt matter everybodys lowered guidance. Ann taylor, lbrands, tjx everybody here. The nonaffluent consumer isnt spending much. If things dont pick up in the next month or two, now that the weathers going to get better, some pickup in the next two months id be very concerned about the future of retail right now. The one bit of bright news i dont know if you guys mentioned Herman Miller were talking furniture, they actually gave guidance above expectations, theres the group, guys, Home Furnishings that is doing better than everybody else. New indications 13. 50 to 14. 50 and priced at 13 for q2. Thank you very much, Rick Santelli in chicago, youve been a busy man in the last 24 hours or so. Whats happening at cme . I tell you what if you are an aficionado of china and trade the yield curve youre in shangrila. Lets look at a year to date of tenyear note yields and the reasonable im picking year to date so you can see how important and how well traveled the ground right below this 277 yield was. And how key it will be should we settle anywhere near where were trading today. Right now for the week, it will be significant. But lets look at where the real action is. Look at this twoday chart of threeyear note yields. Boy, you will rarely see a threeyear note yield this explosive. It was up about 15 basis points yesterday. Contrast that with the long maturity, the 30year bond. By comparison its net change on the day was about four or five basis points and if you look where it was before the statement, after the statement, it was virtually unchanged around 365. Thats what you call a flattening of a yield curve now, lets look at a more traveled maturity, the five year. And lets look at the spread. Fives versus tens. You can see that we havent seen these levels really since may. And its very key. But heres the one you want to watch. The fives, the 30s. We havent been at these levels since the summer of 2012 in terms of flatness. Really need to Pay Attention to this. Another area, the yuan versus the dollar. Actually the chart you are looking at is the dollar versus the yuan, its now on a level on a closing basis, pro to the dollar and weak to the chinese cursesy we havent seen in a little over one year. And the chinese stock market other than a little whisper around january 20th of this year we are coming this thing back to last summer and this really could Gain Momentum to the downside. You want to watch the last two charts closely. David im sorry, david is on vacation. Im sorry. Watch the short rates thats where the banks can make the most minneapolis but they need to go beyond 0. 8 which is what they are paying on the cds. Theres a live look at the big crowd at the New York Stock Exchange for an ipo and another cloudbased one, so will we see another cloudrelated sky high debut . Were going to bring you q2 holdings followed by a live interview with the ceo. And get ready for stop trading with jim. Squawk on the street will be right back. Right back. 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 save you fifteen percent or more on car insurance. D Everybody Knows that. Well, did you know pinocchio was a bad motivational speaker . I look around this room and i see nothing but untapped potential. You have potential. You have. Oh boy. Geico. Fifteen minutes could save you fifteen percent or more on car insurance. Ipomania continues here at the New York Stock Exchange. Were still waiting for q2 to open. Huge crowd just behind us, a provider of cloudbased virdal Banking Services. The ceo will join us after we get the first tick over there. Its got to go up because theres too many other cloud offerings. It has to go to a premium or it will spell consequences for the group. Lets do stop trading. Con ag is number one. Ive th theyve missed quarter and missed quarter. Gary rodkin is the ceo many people really like and felt badly that hes been missing numbers. This is a beat of the lowered numbers, good dividend. I think this group is very interesting. General mills beat lowered numbers and that rallied. These are not the stocks you buy, though, if you think the economys heating up. Congratulations, con agra has it down. If you are a little more defensive switch a utility go to conagra. I dont know how youll top last night on mad with the murderers row of guests you had. If anybody can, you can. Who do you have tonight . We had a controversy. I had vsat, vsat, those who fly on jetblue know its the provider to use the internet on the plane, gogo took umbrage over the interview vsats position and theyll come on and give their side of the story. I love that. Gogo shorted so this is a hot button name. Bomba bombardier, theres a lot of worry that theres a glut of planes. They have a nice lineup of planes and lets talk to the guy who is the third player with airbus and boeing. Murderers row, reference 27 yankees. Got to be careful. Got to clarify what did you say . Stratomatic people know. I play it all the time. Lets talk tesla because the fight between tesla and new jersey is getting uglier. It is. A couple bit s of news, in arizona, now they may let direct sales, they may lift the ban. No shock if they are vying for the battery. But i want to read you this sound bite. This is from the new jersey car dealers association. This of elon musk. He needs to stop and take a breath. If youre an internet billionaire, maybe you think the world revolves around you and the world springs from your laptop, well, i got news for him. This is not a new law. Tesla is on thing illegally and as of april 1st they will be out of business unless they decide to open a franchise thats from jim appleman, the coalition of automobile retailers in the state of new jersey. Its gotten really ugly. And whats a shame is that there really isnt a need for that. I think that you got a showroom next to me in short hills mall. The showroom is frankly just a place to be able to get inside of a tesla. Ive never felt that that was competitive. But this is a fierce group. Elon musk this is the first these are the first bad words weve heard about elon musk and he is a revered henry ford meets edson meets steve jobs but now has met jersey politics and jersey politics is a very difficult place to play. Musk is not one to sit idle either. I wonder what hes going to how hes going to respond. What happens if he decides to open a froon chicanchise . How about if they open a froan chiles. There are a lot of Hedge Fund Guys based in new jersey. What do you have on your show . Rick reeder which i cant wait for because of this move in rates from black rock, hes going to tell us where were going postfed and ed yardeni on the market whether the reaction ot market was justified. China, too. I like to hear what he says. The china and the traders battle it out over a number of things. And maybe icahn sometime this week talking about maybe peace pipe . Like i said, you never know. You never know. Thats why you have to tune in at noon. All right, its the latest ipo to ride on the cloud, q2 making its wall street debut. The ceo will visit us right at post nine right here coming up. [ male announcer ] this man has an Accomplished Research and Analytical Group at his disposal. But even more impressive is how he puts it to work for his clients. Morning. Morning. Thanks for meeting so early. Oh, its not a big deal at all. Come on in. [ male announcer ] its how edward jones makes sense of investing. All right, there it is q2 still waiting for this ipo to open. The latest in what has been really, jim, a frenzy of ipos not only here at the New York Stock Exchange but up at the nasdaq as well. Were going to have the ceo of this company on as soon as you get the first tick here. Looks like its indicated a little bit higher than where it was yesterday which it had already been at the high end of the expected range of 11 to 13 bucks. I think i heard over my shoulder a little while ago 13. 50 and a little bit more than that. You need more of a pop. I dont like this segment. I would like it if i saw workday, salesforce, cornerstone concur, if they were going up then that could support some valuations. This is now froth. Its in froth segment of the market. We dont want to see froth because it makes it so that we dont have, lets say, valuation underpinnings. We have a lot of money going into things that shouldnt be going into. You got to slow down the ipo process. Heres an interesting stat from rich peterson of s p capital iq, onethird of this years 48 offerings lost ground or unchanged on their first trading day. Well, thats actually a good thing. Brings you back down to earth. The biotechs have been the best performers. I was with Seattle Genetics yesterday. Also with Charles River the day before. Because this is where the inknowvation is, so those have a lot of hope involved. Froth biotech. Froth when you get to cloud. This froth on plug. Plug being the rubric. Froth on the 3d printers. How many areas can there be froth before we say it is frothy . Thats what ive been watching the whole time. Bob, youre in the crowd behind us. You want to set the stage as we await the open here . Its getting close. Probably hard to say but another five minutes away. The important thing, scott, the indications have been going up. 15 to 16. 50. 11 to 13 was the price talk. It priced at 13 and the current indications are 16 to 16. 50, we call it cloudbased banking, but thats a shorthand. What happens the communitybased banks dont have access to the technology to enable things like mobile banking which is what everybody wants. The Community Banks need it, the big guys have it. Thats what this company does, it takes Community Banks as their clients and gives them the technology to enable them to do Online Banking. So, important thing here is 15, let me tell you, 13 pricing if this thing opens at 15 or above i would consider it a victory not only for them but the ipo market. We had my count yesterday 21 ipos in the next eight days by the end of next week, 21. Thats a lot of supply for the market to absorb right now. This thing will open anywhere between 15 and 16. 50 the current indications id be very impressed not just for them but the overall markets. Getting very close. Theyre crying out again. If you only get a few buck pop off the open that will be viewed as a disappointment. Hold on. Just opening. I think that, again, it didnt its not breaking the print and its not coming hunch. This gives new life. We needed to see some premium if we wanted to see the ipos coming. Salesforce down 36 cents. Thats the granddaddy of cloud. Watch froth but also recognize that this now lets some other ones play. Global forces coming. That is another one of these cloud plays and, you know, look, keep track of the idea that they have to keep going to a premium to have more to come. There you go the first trade is in the books, q2 opening up 25 , 26 and change. Up more than three bucks. Were still waiting by the ceo who is going to come by post nine. Thats a win. When we come back in just a moment. He is literally getting ready to walk onstage now. Well see you in two. See you in. No two people have the same financial goals. Pnc investments works with you to understand yours and helps plan for your retirement. Talk to a pnc investments Financial Advisor today. Welcome back to squawk on the street. We have breaking news on the data front. February leading economic indicators, up double expectations. Up half of 1 , up 0. 5. Thats better than expected. Now, if we look at philly fed, a fresher more real time number, the march read is 9. 0. That indeed is also better than expectations. It reverses the minus 6. 3 from our last look. And lets see, 9. 0, well, its the best since 9. 4 in january but its definitely a step in the direction. Now, lets take another step in direction and go to d. C. Where diana olick has breaking news on existing home sales. Reporter existing home sales down 0. 04 from 6. 0 Million Units and pretty much unexpected. Sales down 7. 1 year over year. This is the slowest pace in 19 months. Sales have been down six out of the last seven months. Of course, the realtors are still talking about bad weather but they are harping on tight credit and affordability as home prices continue to rise. In the northeast, we saw sales down 11. 3 month to month. In the midwest down 3. 8 month to month. In the south up 1. 5 and the west up 5. 9 but the west is still down 10 from a year ago. Again they are citing affordability there. Median existing home price 189,000. That is up 9. 1 year over year. Remember, that a mix of homes issue. Homes on the lower end of the market are not selling homes. On the higher end of the market are picking up so thats shifting that median price higher. Inventories are the story, though, they are coming back a little bit. Theres your good news, up 6. 4 month to month to 2. 0 million homes on the market today. Thats up 5. 3 year over year and it is a 5. 5 month supply so it may portend we see better sales going into the spring. Single family and condo just about the same. Were seeing more distressed sales, more investors in the market, all cash, though, took a big jump up, 35 of the market today acourting to the realtors are all cash. This are your credit issues. Existing home sales essentially unchanged in february month to month. Lets go to jim cramer. Okay. Okay. Well come back to the data. In the meantime we have one of the two ipos of today trading. Lets send it over to jim on the floor. Okay. Cloudbased Banking Services company q2 is in the house. We got matt flake the ceo. Ive got to understand this because it seems like you are making it so that Community Banks, smaller banks, can compete with some of the big dogs on Online Banking, fair . Absolutely. Absolutely. What weve done is weve created a platform that allows community and regional and Financial Institutions that dont have the technological wherewithal to build it on their own be able to compete. Our customers are doing very well right now, they just need the technology. What would the interface look like . It allows you to get a common look and feel no matter what the device is. If you or a mobile phone or tablet or desktop youll have a consistent experience just like with netflix or facebook. The growth is extraordinary. I got you growing at a 47 clip but ive done my research for it and said to buy it on mad money. I had you at 334 banks. Already im not keeping pace with your numbers. Were up at about 350 banks and 3. 1 million end users. Those are the vct holders of the Financial Institutions. How big is this market . 13,500 Financial Institutions in the country, that includes banks and credit uniious. About 50 of them do it on their own the rest are open market for us. I felt that you could do 30 Revenue Growth for a long time. Maybe thats even conservative given the total addressable market. We feel theres a tremendous opportunity in front of us. Its important i like to always point out whos selling. What is the percentage of selling by the company and how much by insiders . So, none of the executive team is selling. The chairman who is the founder and who funded this business from the ground up in 2004 made payroll for three years is taking a little off the table for his family and its well deserved. Software as a service, there have been a series of ipos in the queue. Are you ever concerned that maybe there are too many cloud plays . I only put it like this because the big daddy cloud plays i regard as workday and concur and salesforce. Those have stalled. Is there an ano normally that ty have cooled . I cant tell you about the those. These guys need the technology and all we have to is give them the technology and theyll be around for a long time. Were joined by the American Bankers Association today and several of our customers and so all they tell us is just give us Better Technology and well continue to take market share. Lets speak technology. I was with Howard Schultz yesterday the ceo of starbucks, hes talking about the importance of mobile technology, of mobile payments. If i used your system, merged it with a mobile play, would i be able to know how much is in my account after i bought the triple cappuccino . You would. We initiate payments in the application. Wow. In other words, i this is the seamless at the register to your account that everybody that i used to think i could only get at the biggest dogs i can get from my community bank. We kro the front end and then the payment comes will settle that transaction, so yes. I got to tell you. I understand now why it goes to a premium because you have the classic recipe of a company youre not profitable, but that but you could be profitable if you wanted to be. Absolutely. We are investing in growth and technology. Were all about products and all about growth. Weve doubled the size of the sales force in the last 12 months and were putting all the money into technology. We could get profitable overnight if we didnt want to grow at this rate. If you didnt want to win in the category. Thank you so much. Congratulations to matthew flake, q2 Holdings President and ceo, another cloud play with incredible growth. Back to you guys. Yeah, and another incredible debut here. Shares up 27 after the ipo. We want to dig a little bit deeper into the Economic Data that we got at the top of the hour. Also weve got the hangover from Janet Yellens first meeting yesterday. Steve liesman senior economics reporter back at hq for us. Ive been dieing to talk to you. Obviously sharp reaction to the Federal Reserve yesterday. Here we are morning after, stocks are down. Yields are up. The dollars stronger. There is a definite interpretation here that she was hawkish. Are the markets getting it wrong . I kind of think so. I dont want to i hate to argue with big money because big money has gone the line the way that i dont. But when i read yellen i think there are two possibilities. One you take her at her word and that means an extra quarter point in 2015 is the best analysis i come up with than you might have otherwise gotten, so instead of 1. 75, instead of 2, its 2. 25 whatever you thought it would be. Or she made a mistake. In either case you have the statement which suggests a shallower glide path to a lower place than you otherwise would have. I think that operative idea where she said or the statement said that if all thing being equal the Unemployment Rate is where we want it to be and inflations where we want it to be, sara, then we end up not being at a normal fed funds rate. Thats operative. So, you get that quarter up front, but you have a slightly lower glide path ahead or lower rate ahead. It strikes me that its not that big a deal in terms of whether or not hes being dovish. I think she made a mistake, though, sara, i dont think she meant to say six months cold. She said around six months, i think if she had it back, shed say at least six months or six to nine months, something along those lines. Steve, its scott. Here we go again. Here we are all sitting here, the markets are trying to interpret what the fed chairman said or didnt say, what did the fed chairman mean or didnt mean. I thought we were going to get more clarity or maybe a more coherent message to the markets and apparently we didnt. Well, you know, scott, i think ive been saying this for about a dozen years now which is that its still humans, right . This is not a computerguided system here. Its still unless you can repeal, you know, the februarys of humanity, youre still going to have situations like this and especially situations when its a new chair. Right . Im a little bit surprised she wasnt a little bit more prepared for guiding the markets and what she was going to say for 2015. Whos that . My only question to you, and it wasnt just the sixmonth thing. There was definitely optimism about the economy. I know she said not to Pay Attention to the dots in the forecast but it had moved up Interest Rate expectations. Why is it too soon to be thinking about an Interest Rate hike . Its not. Its not. Its what we argued all week long, sara, when we were talking about the leadup to the meeting was the fed had 14 in the bag. The market and the fed were all together on this glide path on ending qe down to zero october or december, pick your meeting when it happened. And that the whole question, everything the market wanted to know, was about the guidance for 15. I just want to show you our fed survey which shows where the market was. You can see theyre all over the place. 23 wanted thought the first half of 15, i dont know if we have that chart. 40 , though, thinking the second half of 15 and thats where the rub is that it may be three months earlier than that. Youre right, sara, its time to start thinking about it. It may be that the market had also gotten to a place where, hey, shes talking about it. Maybe i wasnt thinking about it enough so theres more focus on it, but i dont think that yellen, i think this is the most important takeaway here. No matter what she said, yellen did not want the market to walk away with the idea that she was going to hike rates sooner than the market thought the day before. Okay, okay. I see a new table as well, steve, the Financial Times reporting that they actually cut the legs off so they were shorter and shed fit better through the session. Interesting. Thank you, steve liesman. Lets check where we are with the markets yesterday we fell about 1. 2 on the s p 500 before recovering to a loss of 0. 06. Weve stabilized today. Lets get expert pin, brian bellski and joe livorn io joins us from deutsche bank. It seems obvious the woman let the cat out of the bag. Steve is being way too kind. Just go back to last june when bernanke said qe purchases would end when we got 7 unemployment. That changed. We had the september nontaper. We then lowered the unemployment threshold to well below 6. 5 and now weve scrapped that to go to some qualitative metric which wasnt defined and then, by the way, were supposed to ignore the dots. This is the problem with transparency and a fed that really is flying by the seat of its pants. Thats whats happening. Its a classic central bank error, the type that bernanke would do and you are pushed and you end up putting dates where arguably you wanted to leave it loose. But its overengineered, simon, i had to get it in. Its smoke and mirrors you are not supposed to know where they are going so you think that forever rates will kind of be low but now we know its march. We know that from the guidance. 32 two major things going on in the market. In 2014 we said it would be a year of transition as we, quoteunquote, wean ourselves off of qe and move more towards fundamentals. Were starting to see that stage. Number one. Number two, what we saw yesterday was clearly a reaction. We are still deep in the reactionary mode of this bull market. We have not accepted that equities are the asset class of choice and were going to react to every little single data point. Thats not investing longer term. Thats a real problem short term. But heres the reality, okay . The economys improving. Interest rates are going to move higher. That is good for stocks ho s lo term. Its like the anger management movie. Let me just make the point, though, as far as this is to what joe was saying earlier, the median expectations is by the end of 2016 rates wont be at 1. 25 theyll be at 2. 25, yes, rates are going higher but theyre coming sooner and more rate rises than we had anticipated. In is a different scenario, joe. I think it is a different scenario. The markets are telling you, you had a massive move in euro dollars and you are seeing the volatility pickup. If the fed gets what it wants, it cant credibly keep rates low and as low as yellen and crew would tell you right now. Thats the fundamental problem with the forward guidance. Isnt the concern that the rates move up too far, too fast and that chokes off the nascent Economic Growth . How do they control that . The problem is this we as investors lack perspective. Coming into the entire year we gave the fed all this credit. The fed is priced to perfection and it can only mess up from here. Were losing the perspective that the fed has misstepped and it will misstep this time around and investors were giving it too much credit and this is noise near term. Longer term if the u. S. Economy continues to improve it will be good for stocks. As you go out along the curve you havent seen the sort of move that we had when bernanke last made a misstep and started giving us an idea of when the taper might end and i think or might start i think that was labor day at the time. You havent seen a big moveup in rates albeit the short end has moved. The short end has moved. I agree with everything brian said. But heres the thing, it seems to me what the statement did yesterday and you highlighted earlier or scott did, theyre more confident the labor markets improving. If over the next few months we get strong data, the market will be very confident regardless of what chairperson yellen says tomorrow or the next day or next week that rates are going up if the data actually improves. Still a selloff in the market as you get closer to the fed raising rates. For both assets but brian is right. You put money into equities. You seem to be making the argument that there may not be. There will be. There will be because we have to now digest the new way of investing. Weve now reared an entire jen rag of invests all they know is stocks go up because Interest Rates go down. Thats not the fundamental way to invest. What is the new strategy . Yellen is the first fed chairperson to organize a direction rate increase since volcker. Think about it. Its a big change over the last 30 years. What should investors do . Investors should accept the fact that stocks lead earnings which lead the economy. Stocks run because earnings head higher. If the economy improves, stock market will go higher. Thats what were involved in for the next five to ten years here in heamerica. Thank you for your time, both of you, brian bellsky and joe livornio. Arnold schwarzenegger posted a photo of himself from facebooks campus, with the campus is facebooks philosophy is move fast and broke things so naturally i broke some of the rules at their headquarters thanks for a great visit. That got us thinking brings us to this mornings squawk on the tweet, arnold couldnt follow the nosmoking rule what other facebook rules did he break . Get creative. Tweet us and well air your responses throughout the morning. All right, coming up q2 holdings up big on its first day of trading. Another ipo on tap this morning as well, metawound will open in a few moments and the ceo of that company is coming up as well. Well. Weve just had a statement from the white house. The president is going to make an address, a statement, himself on the south lawn at 11 00 a. M. On the ukraine. Well be taking that live on cnbc. The assumption at this staining is hell talk about whether sanctions from this country are ratcheted up given whats happening from russia. I know the europeans certainly meeting today are talking about more individuals facing bans on asset moves and their own travel. And, of course, well bring that to you live 11 00 a. M. At the top of the hour the president set to make a statement. Meanwhile in the last two weeks nine different ipos have priced. Weve been all over it at the stock exchange. Six more expected to price this week. Weve heard about froth in the general market but what about froth in the ipo market . There is a bit of a frenzy. Well talk about that after the break. Break. 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 no two people have the same financial goals. Pnc investments works with you to understand yours and helps plan for your retirement. Talk to a pnc investments Financial Advisor today. Welcome back. Were watching two ipos this morning q2 holdings is metawound at the nasdaq. Those just two of the nine ipos were expecting this week. Bob pisani is on the floor with more on that. The parade continues. Weve got a lot coming, too. Q2 had a very strong open this morning. The price talk was 13 to 11 and priced at 13 and opened at 16. 25, up 28 , 16. 65. This is a continuation of a trend started yesterday, paylocity ended up close to 47 and we ended at 17 and they had a tremendous day yesterday. A cloudbased Payroll Software provider. So, the important thing is we have huge amounts of supply coming. And not just today. I said two days ago, scott, more than 20 ipos in the next seven or eight days in the close of the First Quarter. If you look at the ipos in 2014, the estimate right now is there will be 64 ipos for the First Quarter. Is that good or bad . Thats twice what we had in the First Quarter of last year. And 2013 wasnt a bad year for ipos. That was definitely an improving year over 2012 which was kind of on the youawful side. Were steaming along very nicely. There is an etf, i get asked all the time, how do you invest in ipos, renaissance has one, ipo the symbol that went public back in october. Its up 5 so far for the year. Scott, you can argue about whether or not and sara, whether we are in a frothy market but when you have 20 ipos coming in the next eight days and one of the main ones opens up 25 , i dont think thats that bad. You can argue maybe it should have opened up 50 but so far down here everybody else seems to be pretty pleased. Back to you. And, hey, bob, it makes our lives a little bit more exciting down here on the floor. Thanks for the setup, bob pisani. As bob mentioned the ipo market is heating up and the froth is here according to jim cramer. This is now froth. Its in the froth segment of the market. We dont want to see froth because it makes it so that we dont have, lets say, valuation underpinnings. We have a lot of money going into things that shouldnt be going into. You got to slow down the ipo process. Now, that was earlier this morning. But recent offerings like Castlight Health seeing huge, huge boons. Hugely anticipated offerings like candy xrush in the pipeline next week. Alibabas planned ipo that some say could break facebooks record. Lets bring in ipo expert jean erkin m m specialist with capella group. So, jim, are we in an ipo bubble . You know, i dont think we are. Dealmaking has returned to prefinancial crisis levels. 2013 was certainly a breakout year for ipos. What i believe we just reached a more normalized level of ipo rather than a bubble. Whats driving it . Is it really just the rising stock market, the fact that Interest Rates are super low and theres this better feeling about u. S. Equities or is there more to it . I think along those lines, yes. I mean, the ipo market is really about the confidence of the markets to take on the risk and the confidence is clearly there. The equity markets are strong, so thats driving the fact that ipos are pricing at or above expectations and privatette and Venture Capital groups who drive much of the ipo financings are still very, very active. Can you make a blanket statement here about valuations, jim talking about froth. Do they seem out of whack to you . Or do they seem right . You know, thats a good question. And as far as valuations go, i think its demand. And the demand is there. And the you know, the markets are willing to take on the risk and obviously their valuations are what companies are looking for including alibaba. It looks like investors are looking at Industry Group biotech is the number one, technology is number two. It seems like every day you either have something about biotech or something about cloud software. I mean, these are the buzzwords that get investors really excited. No, thats right. And i think 2014 is going to mirror 2013 pretty closely with health care, and Financial Services leading the way. In addition i think the ipo filing pool is going to be dominated by healthy cashflowing companies. Well, thats pretty positive statement there. Alibaba is, of course, the big one. Is that setting off the feeding frenzy here . Well, certainly its going to be huge, but beyond that i think alibaba is choosing u. S. As a filing over hong kong for two reasons. One is theyre looking for the most liquid market and the highest valuation they can receive which i believe theyre going to get in the u. S. And secondly, and more importantly, i think its about control. Look, i think jack mah owns about 7 of alibaba and by having a u. S. Filing hell be able to nominate Board Members which will aid in his ability to maintain control of the company. Well, ipos are certainly the flavor of the month. Were showing metawound it literally opened on the nasdaq as you can see up 20 . Im here at the post of other ipo, q2 which is up 30 right now. Thanks for your perspective. Obviously it is the story right now. Simon, over to you. Thank you very much. And the ceo of medawound will join us shortly on the show. Straight ahead the ceo of Buffalo Wild Wings will join us to give us her game plan for success during the pivotal march madness season. Well be back in a flap. Be back [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. My mom works at ge. Geico motorcycle. See how much you could save. [ tires screech ] chewleys finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. Get the most extensive charting wherever you are with the mobile trader app welcome back to squawk on the street, the department of energy just released the number for its Natural Gas Storage report for the week ended march 14th. The number coming in at a withdrawal of 49 billion cubic feet. This was less of a withdrawal than they were expecting and also substantially less than what we saw last year at this time. But still todays report bringing nationwide stocks below 1 trillion cubic feet. This is a level that weve not seen since the winter of 2003 where by april we had seen record low storage for nat gas. Tim evans from citi saying that numbers in these range in this range could possibly bring nat gas to about the 5 level but on this report were trading lower, 4. 37. Believe it or not the chatter in the pits right now is about warmer temperatures ahead especially with the first day of spring today. Of course, traders are saying are we going to have that catchup period for some of these inventories to catch up before it starts to get really hot. Guys, back to you. All right, jackie, thanks so much. Theres no question coal as a fuel source is controversial. But with nat gas prices up sharply in the last few months its also not going away anytime soon. In fact, demand has been so high that miners are getting ready to restock dwindling supplies. Hey, scott. Reporter hey, scott. They have a lot to be excited about here in coal country for the first time in a while. This is the powder river basin really part of the richest coalproducing area in the country and everything about this is big. Behind me that contraption there is known as a dragline. The arm on that thing is the lent of a football field. And essentially what its doing is its peeling back about 200 feet of earth and rock to get to the coal below which is very much in demand these days. Heres whats going on. Well, theyre going 24 7 to get this coal and here is whats going on. As you heard at the outset the price of natural gas is going up. It is now coal is very much competitive with natural gas where it wasnt for a while because there was the glut of natural gas, so it is very much in demand. Weve had the cold winter and so you know the rest. Lets bring in Colin Marshall who is the ceo of Cloud Peak Energy which runs this mine. Youve had quite a run particularly in terms of your stock which is trading at 52week highs, but the question for investors i guess, is that sustainable . I think, scott, thank you very much for coming to the spring creek mine. Reporter sure. I think the stock has gone up obviously our investors are looking forward. They can see that stockpiles have come down, that Natural Gas Prices have gone up enough so the powder river basin coal that we produce is very profitable. Utilities are burning that coal and i think the outlook at the moment is very positive for it. Reporter there are potential headwinds here, though, you have the potential for more epa regulations on Carbon Emissions that could hurt demand domestically. Youre also trying to build demand overseas but you need the facilities to do that. So, long term, what does that mean for you . I think long term, of americas electricity in the future in 2030 is going to come from coal. It will come from the powder river basin, lowcost coal, there will be regulations that will particularly hit some of the other coal basins but prb coal tends to be burned in the newer plants that tend to be very efficient and produce lowcost electricity. I think the demand will be flat for the long term but wont go away. Internationally the demand is tremendous. Coal will be burned more and more around the world. If we can get ports built then i think the outlooks for western prb coal is very, very positive. Reporter the story of coal is a tough one to tell. Theres been a lot of bad news out there about coal whether its Environmental Issues or otherwise and the whole question of Climate Change and things like that. It sounds like youre trying to make annest to tell the story a little bit more proactively. Certainly wed like people to be a balanced discussion about coal. We see, look, there are genuine concerns about Climate Change, i dont know whether the world is warming up or not, if its an issue to deal with it, then coal is part of the solution. Reducing Climate Emissions its a technical economic issue that can absolutely be solved and we should be developing that technology in america to do that. Its not a political or emotional one which is where the debate is now. I think potentially that did have bad outcomes for america. We think there really is a future for coal because otherwise we wont have the lowcost Reliable Energy to let the economy grow in the future. Reporter Colin Marshall, thank you for having us out here and well be talking about that and those Environmental Issues to come later today on power lunch and a lot more about this on cnbc. Com. Sara, back to you. Looking forward to it. And what a shot, inside the coal mine, scott cohen thanks for that report. Up next during march madness last year Buffalo Wild Wings sold 80 million chicken wings. 80 million. Will the company be able to replicate this time around . Or will bad weather and a thrifty consume r r 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. Return on investment wall isnt a street. Isnt the only return im looking forward to. For some, every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Ido more with less with buless energy. Hp is helping ups do just that. Soon, the worlds most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. Multiply that across over a thousand locations, and theyll provide the same benefit to the environment as over 60,000 trees. Thats a trend we can all get behind. Welcome back. March madness is upon us and that means big business for Companies Like Buffalo Wild Wings. During last years march madness Buffalo Wild Wings sold 80 million wings. Here for a cnbc exclusive is sally smith. She is the companys president and ceo. Sally, welcome back. Ill forgive you for not sending a big bucket of wings here to post nine but ill carry on nonetheless. Ill try to do my best. Maybe next year. Thank you. Is this the biggest deal for you guys because the duration of the tournament lasting two weeks say relative to the super bowl . Super bowl is probably the largest or biggest sales day, but if you take this weekend in particular, we by far exceed super bowl. We love the tournament. Hoping that, of course, its great rounds and that theres some great matchups coming but definitely the biggest time of the year. Which is the biggest sales day of the event . Sit the day of the final four games or is it just consistent throughout . No, actually, the biggest sales day really are the next two days, or today and tomorrow. And then moving into saturday and sunday, its really the first weekend when all the teams are still in competition so thats what really drives people into the restaurants. Sally, i wanted to ask you about a broader trend in the industry. Obviously food prices have been elevated lately. Beef and pork have borne the brunt of it, but chicken prices also higher. Are you looking at raising prices at all this year . You know, we make that decision right before we roll out a menu and our next menu rollout will be sometime midsummer. We enter into a lot of our contracts and were contracted for the bulk of our chicken really through 2015. So, i think if anything it would be very modest. Chicken wings have actually moderated since last year at this time. Could i ask you, sally, about your use of technology. Citi put a note out where they said that he thought you and brinker and applebees were really at the forefront of i think it was using tablets in the restaurants for the Customer Experience and he felt that because you were early adapters youd be able to finetune much better moving forward for final sales and strategy. Can you give us some color on where youre going to take the technology and how that ultimately will hit the bottom line . Sure. Technologys always been a big part of Buffalo Wild Wings with our trivia tablets that we had in there now. It will bring you news, trivia games as well as music and moving into being ordered to pay at the table. Technology is one of the reasons guests come into Buffalo Wild Wings. How do you expand that . Where do you take it . Well, what we want to do is to make it very interactive within the restaurant and within the Buffalo Wild Wings system so that if theres if sports isnt showing, perhaps theres other game competitions through the tablets that will engage our guests for long periods of time when there isnt a big game on. Sally, hows mexico going . Three new stores there since december. And what is that part of the business i guess as a part of a broad are rollout internationally . It is. I just returned from mexico last night. I visited our restaurants, our new restaurants down there. It is like walking into a Buffalo Wild Wings in the United States. The tvs, they are the stadium design which is the new prototype, and the food, the experience, the place super bowl sunday saw record sales in mexico. And their sales are exceeding their expectations and theyre anxious to get theyre already moving on the second, third, fourth locations. Beyond the international expansion, technologies, i know youre also working on recent collaboration with pepsico. You chose pepsi instead of coke. Im curious about why. Because pepsi might say, and as you know theres this current debate going on about whether pepsi should split its soft drink business and its snack business. Pepsi would point to the Buffalo Wild Wings or some would to show that it can do both. The power of one because youre really leveraging not just the soft drink business of pepsi. Would you agree with that . I absolutely would. Certainly the pepsi brands resonate with our guests, but they also have a unique understanding of music, of sports and of entertainment and thats one of the things they brought to us in addition to their research and development around food. As evidenced by our rollout of the deep ridge Buffalo Wild Wings flavored chips. Wed like to be able to utilize some of their snack products in our restaurants perhaps as part of men hadu offerings as well as the as well as the beverage offerings that they have. I like having both together. All right. A vote for pepsi over nelson peltz there, interesting. Sally, whos going to win the ncaa tournament . Well, my standard answer is i want the games to be great. And i want them to go into overtime. Going to be a good question. I think theres some good matchups this year, certainly, you know, people are watching Wichita State is the only team to go in undefeated since, what, 1991 . Kentucky last year switching conferences. I dont know. It will be fun to watch. Well, you know your hoops. Its great having you on, sally. Best of luck over this twoweek period. Well talk to you soon. Simon, thank you so much, enjoyed being here. Theres still time for the wings to be delivered in time for the halftime show. Just saying. I got big traders here. Coming up on the program mediwound has made its debut into the nasdaq today, they are in to treating severe wounds and hardtoheal wounds. They priced to the bottom of the range but they have gained at the open. Well talk to the ceo first on cnbc after this break. This bre. Let me talk to you about retirement. A 401 k is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable, professional. Im actually a dj. [ dance music plays ] woman [laughs] no way that really is you . If theyre not a cfp pro, you just dont know. Cfp work with the highest standard. [ banker ] sydney needed some Financial Guidance so she could take her dream to the next level. So we talked about her options. Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a bank. They take a banker. Make a my financial priorities appointment today. Because when people talk, great things happen. Mediwound the israelibased Biotech Company that develops treatments for severe burns and hardtoheal wounds has just debuted at the nasdaq this morning. Mediwounds ipo priced at 14 a share. Joining us for a first on cnbc interview is mediwounds ceo gal cohen. Welcome to the show, sir. Thank you very much. You priced at the bottom end of your range 14 to 16. Do you think perhaps you could have gone higher given where youve opened . I think we had a lot of demand and we wanted to make sure we had the best quality book that is out there and we think that is good and we are very pleased with the result. You are, of course, part of a long stream of ipos to the market at the moment. A number of them that have come from israel. Why did you choose now to actually list . Well, we think this is the right opportunity for us. We are now commercializing our product and reaching out to patients. We are expanding the opportunity to the u. S. And we are advancing our plant that addresses real medical needs. So this is the best financial decision to us to be able to do everything that we need to do in the right way. Just going through some of your numbers here, it looks like no real revenues to report yet. Obviously you Just Launched the product in europe. When can we expect the numbers revenues growth to start to come to the company . First of all in general we always prefer to execute first and promise later and this is why we prefer to be more conservative. As you know in pharmaceuticals it doesnt take a day to change the market. We believe that our solution its the best way to remove the and therefore in time well be the standard of care in all burn centers. Let me explain to people that theres one product in focus here. Nexobridge i think i pronounced that correctly, which removes dead or damaged tissue where you half severe burns but doesnt harm the viable tissue. Why is that got an okay in europe but from the notes that i got here, youre not expecting it to launch anytime soon here in the United States . Well, first of all, we are very excited to be able to bring this solution to patients in europe and in the u. S. We are just about to launch a study and following this study should it be successful well approach the fda and ask the fda to approve the product so it can be used in the u. S. Population as well. What sort of timetable do you think you might have on that . Well, according to the design of the study, we will follow up the patients for about 12 months which means that. We beave in 2017 if we are able to stop the study at the interim analysis like we did in europe this will be a right time point. If not we will follow the patients for another 12 months to make sure that we can do it then to the outcomes as well as assist our partners which are the physicians that are treating these patients day after day. Good to meet sir. Thank you for joining us. Cal cohen, ceo of mediwound as they debut at the nasdaq. Thank you very much. Looks like treasury yields remain elevated. Lets go to Rick Santelli who is in chicago. I understand youre talking about the value of money. Absolutely. I like to welcome my guest mike. Mike, the interesting thing about you and your organization is, if something happened in 2006. What did the fed do . The fed discontinued reporting on m1, m2, and m3. One, they couldnt track some of the data, euro dollars and repurchase agreements. Theyre the fed. I think they saw things that they didnt want others to see. Think helicopters. Okay. Now, what makes you think that you can reconstitute what they didnt want to continue to constitute because your group puts out the ms . We do. And we use their data. And then one other thing, and that is with the foreign bank deposits, thats double counted in m2 and m3. We track that and take that out. They dont do that. In the early 80s, 2 30 eastern when money supply came out that was the most active time on the Trading Floor back then. I still think its important. So on a simple level, do you see a deficiency or an oversupply of money in the system from a traditional view . From a traditional view, rick, it shouldnt money should flow at 7 1 2 . It hasnt been for six years. So technically were short 3 trillion. So if im understanding this right, dont get too excited, you helicopter printers out there. Youre saying they didnt quite print enough. Thats not the real story. Where is the more than enough sit that isnt counted in your m snz. 2 1 2 trillion is sitting on the other side of the Balance Sheet in excess reserves. Excess reserves is money thats in banks that they just put right back in not depositories. Right. Its on the asset side of their Balance Sheet. What they do is they park it right back at the fed so it doesnt get out. The m. I. T. Models were right. Were going to create money but they were wrong as to where it would end up. End up in the economy. When it does is that going to plug that deficient hole . It will plug that deficient hole, but we cant do tapering unless we do shrinking. I understand. The long and short of it in the last 30 seconds, if we get a good velocity of money and that money moves off the Balance Sheet, theres going to quickly be almost too much liquidity, will it not . Yes. And how does the fed address that . It has to buy back what its been selling. It has to do drains. Exactly. So its going to have to take the 4. 2 trillion Balance Sheet and do some selling to pull that liquidity back. Exactly. And, folks, thats why i have mike today. It makes the exit that much more complicated, as if it isnt complicated enough. Sarah, back to you. I love a good interview on the velocity of money. Rick santelli, always good to see you. Taking notes furiously over there, i saw you. You know me. Shes very big on structured finance. Its tweet time. Also the picture of the day. Arnold schwarzenegger visiting facebooks campus and posting a photo of himself with the caption, facebooks fill loss sooty is move fast and break things, which i love. So naturally i broke some rules at their headquarters. Thanks for a great visit. Were asking, arnold count follow the no smoking rule. What other facebook rules did he break . [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Here we go. Tweet time. Arnold schwarzenegger paid a visit to facebooks campus and posted a photo of himself with a caption, facebooks philosophy is move fast and break things, which i love. Were asking you, arnold couldnt follow the no smoking rule. What other facebook rules did he break . Pretty sure arnold violated the threeitem limit from the cafeteria, which is good but not as good as this. Andy tweets. He bench pressed mark zuckerberg. Good morning if youve just joined us. Welcome to spring on cnbc. This is what youve missed if youre just tuning in. Welcome to squawk on the street. Heres whats happened to far. What we have is a genuine confusion which can trigger what the usa today calls right on their front page a yellen speaks, stocks swoon. How about yellen speaks, we dont know what she said. If this is like the Oprah Book Club then this will be a the ten seller. We have all been trying to figure out when is howard going to make his move. Its been an after thought. Its not longer an afterthought. We are still deep in the reaction thekctio reactionare mode of this bull market. Were going to react to every little single data point. 2013 was certainly a breakout year for ipos. I believe we just reached a more normalized level of ipo rather than a bubble 37. Have a good thursday morning to you. 8 00 a. M. On the west coast. Heres what were watching. President obama is now to deliver a statement on the ukraine at any minute. We will bring that to you live. And colorful whatsapp affect. They get a big investment, this time from internet giant alibaba. Slight positive for apple but has wall street gotten ahead of itself . Apple analyst is here and he is skeptical of what others think of the market. A rosa parks moment. Thats how one silicon founder put it. He says theyre taking advantage of their qulemployees. First, time for this squawk feed, the biggest stories in tech today. Joining us is lance, editor and chief over at mashable. As always, our own jon fortt. We want to start with that alibaba deal. 215 million from alibaba into tango. What is alibaba doggetting into messaging, jon . I think theyre continuing their push to try to be in the consumer space. Trying to position themselves in mobile. Tango, a little more than a year ago past the 100 million user mark. Were kind of giving them new platforms on mobile, particularly emerging market that might not be so browser friendly and alibaba needs to continue momentum. It makes sense. Lance, we have tango between 1 and 2 billion, roughly 200 million users. Whatsapp had 400 million users. 19 billion. Walk us through the differential there. Well, small service. Its growing. You know, i think that the market that theyre going into, for us sometimes feels like ali baba. No matter how you look at this, the mobile investment is a smartest way to go because that is where everyone is spending their time and its also this big shift from traditional calls to data centric calls. They have to own something. This company has to own something that puts them on the forefront of that so theyre not left behind. Another thing is that tango is stronger in developed markets. And it doesnt quite have the stickiness of a whatsapp. Its interesting because tango is based in mountain view, california. Obviously alibaba operates primarily in asia. If you are looking at this as a sign of where alibaba intends to grow, what does it say to you . Alibaba already had investments in building up an asiabased messaging service. I think they want to grow outside that as well so theyre combating asia with a Different Service i think in domestic markets. The biggest indicator is surely that theyre going to list here. Do we have any question at that about this point . If youre talking about where the center of the company is the biggest signal to send is that youre going to list in new york, surely. I think it was a surprise they didnt list in hong kong, that theyre not going to list in hong kong. I dont know if the center its such a vast market in asia. Making this investment over here. Lets not forget the connection to yahoo . Maybe its all an entanglement theory. Big investment with yahoo and alibaba. Maybe theres some sort of closening of that relationship were not quite seeing. In the meantime, i read 400 million of fees, 400 million of fees potentially for wall street to take from this ipo. Thats astounding. Good for them. Theyre meeting in asia next tuesday to figure out what that breakdown of the economics there be, what the valuation of alibaba will be. Its unclear at what point we will see whether alibaba tends to make something more of its investment in tango. Can i remind you were waiting for the president to begin talking about the ukraine. Weve had an announcement within the last hour that before he gets on to air force one to go to florida that he will be making a statement on that. And so as soon as the president does appear on his way, we will bring it to you. We will, indeed. In the meantime, second topic, arcane, hashtags and at signs may be a thing of the past, we hardly knew you. Vivian shiller hinting at a recent conference in denver that at signs and hashtags were arcane and feels speculation that twitter is looking to streamline its timeline. This is part of a lexicon that twitter created. Its really the two most important features of twitter. Its how you find people and connect to topics. Lets be clear what Vivian Shiller may or may not have said. It was hard to find actual record of the word arcane. She did respond and said actually for give me for interrupting. The president just emerged from the house white house. We want to get the comments. Critical of course is whether the country is going to increase the sanctions against russia and what the implications of that might be. You will be aware that eu leaders have been meeting today in brussels. They are expanding the number of russians that have sanctions against them. At this level its still very personal. Its still very individual. And so far, of course, has not really rattled the markets. Back to twitter. Lance, we were talking about this sorry. Hes speaking. I want to provide an update on the situation in ukraine and the steps that the United States is taking in response. Over the last several days weve continued to be deeply concerned by events in ukraine. Weve seen an illegal referendum in crimea, illegitimate move by the russians to annex crimea, and dangerous risks of escalation, including threats to ukrainian personnel in crimea and threats to southern and eastern ukraine, as well. These are all choices that the russian government has made, choices that have been rejected by the international community, as well as the government of ukraine. And because of these choices, the United States is today moving, as we said we would, to impose additional costs on russia. Based on the executive order that i signed in response to russias initial intervention in ukraine, were imposing sanctions on more senior officials of the russian government. In addition, we are today sanctioning a number of other individuals with substantial resources and influence who provide Material Support to the russian leadership, as well as a bank that provides Material Support to these individuals. Now, were taking these steps as part of our response to what russia has already done in crimea. At the same time, the world is watching with grave concern as russia has positioned its military in a way that could lead to further and eastern ukraine. We are going to develop more severe actions that could be taken if russia continues to escalate the situation. As part of that process i signed a new executive order today that gives us the authority to impose sanctions not just on individuals but on key sectors of the russian economy. This is not our preferred outcome. These sanctions would not only have a Significant Impact on the russian economy but could also be disruptive to the global economy. However, russia must know that further escalation will only isolate it further from the international community. The basic principles that governing relations between europe and around the world must be upheld and that includes respect for sovereignty and territorial integrity. The notion that nations do not simply redraw borders or make decisions at the expense of their neighbors simply because they are larger or more powerful. One of our other Top Priorities continues to be providing assistance to the government of ukraine, so it can stabilize its economy and meet the basic needs of the ukrainian people. As i travel to yup next week to meet with the g7 and other european and asian allies i urge congress to pass legislation necessary to provide this assistance and do it right away. Expressions of support are not enough. We need action. I also hope that the imf moves swiftly to provide a significant package of support for ukrain n ukrainianss as they pursue reforms. In europe ill also be reenforcing a message that Vice President biden went to the Baltic States this week. Americans support for our nato allies are unwavering. Were bound together by article v commitment to help one other and what so many generations sacrificed for. Weve increased our support for Eastern European allies and we will continue to strengthen natos collective defense and step up our cooperation with yup on economic and Energy Issues as well. Now, let me close by making a final point. Diplomacy between the United States and russia continues. Weve emphasized that russia still has a different path available, one that deescalates the situation and one that involves russia pursuing a diplomatic solution with the government in kiev, with the support of the international community. The russian people need to know and mr. Putin needs to understand that the ukrainians shouldnt have to choose between the west and russia. We want the ukrainian people to determine their own destiny and to have good relations with the United States, with russia, with europe, with anyone that they choose. That can only happen if russia also recognize the rights of all of the ukrainian people to determine their future as free individuals and as a sovereign nation. Rights that people in nations around the world understand and support. Thank you very much, everybody. And so as president now departs for florida for orlando, lets bring in eamon javers, of course, in washington. One of our correspondents there. Eamon, from a business and finance perspective, ratcheting up of sanctions here but importantly hes talking about a bank. Thats a whole different ball gym if theyre going to start taking sanctions against one of the russian banks. Are you able to give us further details . Were not. The white house scheduled a press briefing before these remarks on a background basis. They canceled now that and scheduled it for after the remarks. We should get details in a few minutes about which sectors of the russian economy the president is talking about here. Youre right. What the president is doing is significantly expanding the scope of sanctions beyond just russian individuals and talking about a bank and specific sectors of the economy. That is something that the white house did not want to do earlier on but all along they have spoken of these sanctions as a sliding scale that they would ratchet up or ratchet down depending on what russias actions are. And, of course, Foreign Affairs experts say when it came to iran it was the targeting of the banks there that really had the greatest bang for the buck, so to speak. Yeah. And ive been surprised in covering sanctions over the years at how many assets in the United States some of these figures overseas actually have. And also how important access it to the u. S. Banking system is for a lot of banks around the world. Dont underestimate that. That is a powerful tool of u. S. Diplomacy. Clearly they decided to use it. The question is going to be which bank, why that bank, and exactly what the impact is going to be. And obviously within the next couple of minutes were expecting more detail. Well leave it there for the moment. Thank you. Eamon javers there in washington. Is wstz overly optimistic on apple . One analyst says, yes, they are. And he will be with us next. And of course, okay, Rick Santelli live in chicago with the santelli exchange. Rick . Yes. I tell you what, simon, chicago may be noted for gank centgster tommy guns but also traders chasing curves. Not those curves. At the bottom of the hour the build curve news is exciting times ten. How much money do you think youll need when you retire . Then we gave each person a ribbon to show how many years that amount might last. I was trying to, like, pull it a little further. [ woman ] got me to 70 years old. Im going to have to rethink this thing. Its hard to imagine how much well need for a retirement that could last 30 years or more. So maybe we need to approach things differently, if we want to be ready for a longer retirement. 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. There are have been some rumor of an iphone6. Some believe it could be a positive for the next two quarters but says the june estimate on the street for apple appear too high. Gene munster is Senior Analyst research with piper jaf friday. Whats the issue here . You think how many of this street analysts do you think have got it wrong here . Well, i think collectively the entire street has the june quarter wrong. March quarter will be fine. This is the catch here. The street is looking for 2 Revenue Growth for overall apple for the march quarter and then that accelerates to 10 for the june quarter. Theres a slightly easier comp in june and that helps a little bit but the reality is there is not a lot of big things happening to justify that acceleration. Our take away is that the street numbers for june arent too high. That doesnt change how we feel about the stock, owning it here, because at the end of the day i really not about the june quarter. Its about all of these products coming in the back half. I think investors should be aware when analyst goes and finetune those june numbers theres a high probability they come down slightly. So we should mention youre overweight the stock, upbeat on the stock, price target is 640. Bottom line it. If theyve got that wrong, what happens . Are you saying that it could be quite bumpy to hold the stock through summer . You hold it into the downward revisions which seems backwards to take that approach but the reason is that theres so much good stuff coming my feedback from investors has been theyre waiting on the sidelines for some of the numbers to come down. Some of the buy sides are there. The sell side is not there. I think when they come down n. And derisk the june quarter, investors are going to take a much bigger wait in the back half of the year which obviously is going to have the largest screen phone in the multiple product categories the Company Keeps talking about. Gene, theres a headline out that china mobile says they moved around a million iphones in february. Looks like most on the street were expecting 15 to 30 million for the full year. Sign that mobile still turning on 4g throughout much of the country. Is this number good, bad, how does that factor into your june quarter estimates . I think from our well, say for our march quarter we were looking for 3 million total for china mobile. Thats spot on. It would have been nice to have seen more of an acceleration in the month of february. I think there was a february number they had disclosed. In general, i think it really speaks to it just takes time. Obviously china is a big opportunity, like you said. I think investors need to be patient about china mobile. Like we had to be patient with verizon. So overall its a disappointment. I think it would be nice if there was more traction but i think eventually thats going to turn on as more 4g cities gets lit up in china. Gene, i would like to get your take on one of the big apple events this week, which has been the publication of this new book by kane, former wall street yurnl journalist. She entitled it haunted empire. The thesis is very much that without steve jobs apple will find life very difficult. It does havent the flare that it once had. Tim cook gave us that statement exclusively suggest that the book was, in his words, a nonsense and she failed to capture the creativity of 85,000 people. Where do you stand on that . Do you think that apples lost its mojo or is it reinventing under the im cook . Are there great days to come . The chief designer told the sunday times . First of all, i followed kanes work and im sure deshid great investigative work over the two years she put into the book. I think overall the reality about tim cook is going to be his kind of legacy is largely going to be set over the next 12 months based on some of these new product categories. So right now were not seeing a lot and we should hold off on making a strong kaul about what his legacy is going to be. There are indeed forgive me for interrupting. Your 640 price target, does that assume the launch of new product categories or just based on what we have now . Product categories are not in our model. To my knowledge theyre not in many of the street estimates. It assumes that the multiple that investors pay goes up based in an mistis pags of the new products. Its not in the model but its in our price tar t get. Its good to see, you gene. Thank you for joining us. Gene munster there on apple. The world of bitcoin, despite Morgan Stanleys ceo saying controversial currency, bitcoin is totally sure veal. The bank will hold a bitcoin event today with a panel of three bit couldnt supporters. Rick is one of those. Hes a panelist at that conference today. Rick, you basically run a think tank for digital currency. When you got the invitation from Morgan Stanley for todays conference, what was your initial reaction . I wasnt surprised. I think to understand bitcoin as both platform, currency, and promise, its important for banks to get their heads around whats really happening. I should point out though that Morgan Stanley is not actually hosting the event. Theyre having a room at Morgan Stanley that the event is a Microfinance Club of new york event. With that being said, Morgan Stanley obviously is having it in their corridors. And thats an important statement in and of itself, i think. It shows that mr. Goreman, banks are reacting to this as they will. And as education becomes more prevalent, were going to see other banks open up and say, okay, whats really going on here . I get the argument about bitcoin being important for transactions, particularly between countries. But im not so sure about the idea that its a store of value, that its a good investment for people to put their money in. Where do you sit on that . Okay. So here comes the education part. You have to think of bitcoin as a platform not just a currency. If you think of it as a platform you can think of it in three ways. One, as a currency. Two, as a vehicle for the unbanked and underbanked. And three, as a corporate engagement vehicle. So mint combine works in the corporate engagement side. We are talking to Global Brands about programs along those lines. But the thrust tonight actually is the microfinance and the unbanked and underbanked side of it. Rick, the wall street side of this is backing engaged in what bitcoin does and theyre trying to figure out what theyre telling us, what do they actually do . In a Goldman Sachs note a week ago they said its not a currency and its much more plausible that bitcoin has a Significant Impact in terms of innovation on payments by fosting existing players to adapt it or coopt it. Right now weve konl only an ad hoc group of players accepting bitcoin. Its still somewhat questioned why theyre doing it, whether its a precedent or what have you. What would force more players to adapt bitcoin . The eco system that its creating. That is parallel to existing financial eco systems. So youre looking at those who dont understand it will be surrounded by it eventually, especially when corporations start acting more like banks then were going to see real interest in the space. You dont know that its going to be bitcoin. Right. You suggest its a platform. Jar square is a platform. Visa payments is a platform. Emailing currency back and forth can be a platform. Bitcoin is a very dangerous thing for people to be in because it could dissolve. No, the idea of bitcoin i thought when mt. Gox went down a lot of people lost money, hundreds of millions of dollars. In the late 1800s as well. But when they were transporting on the rails, cash to workers. Theres less chance theyll lose money using square, isnt there . Square is a different kind of platform. Thats why im suggesting it. If you look at bitcoin its a rail platform really. Its not what you would call it isnt a savings platform per se. Its a rail at that level. When you look at remittance programs, its easier for people to remit cash to far away places to get that without the theres inherent volatility in it. What simon is touching on is what i was trying to get at. Right now the Public Perception of bitcoin is tied closely to the value of an individual bitcoin. People arent looking at its potential as a technology platform, for moving money around without the middle man. How do you get the focus off of the price of an individual bitcoin which is going to be volatile, off the exchanges and on to the technology promised as a platform if. I think there are people always to call this a currency. I happen to only halfway agree that its a currency. I work in bitcoin. Im more earned about the platforms that allows you have to think of bitcoin as a tcp ip later. When the brothers said bitcoin is the internet of money they werent kidding. That was probably the most precedent thing theyve ever said because it is. It is a player that allows you to build applications on top of it. Much more than a currency. Its a conduit for new thinking. Have you made money . Have you made money from it . I havent lost money from it. Well, there are a lot of people who have. They have. We have not heard the end of bitcoin. For now, rick, we have to go. Enjoy the conference. Look forward to hearing how it goes. Thank you. Thank you. Not everyone in colorado is happy with marijuana legalization. We speak to a colorado mayor coming up next who has banned marijuana seals and says it was an easy decision. [ female announcer ] who are we . We are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. With investment information, risks, fees and expenses no two people have the same financial goals. Pnc investments works with you to understand yours and helps plan for your retirement. Talk to a pnc investments Financial Advisor today. Phone your account is already paid in full. Oh, well in that case, back to vacation mode. Boots and pants and boots and pants and boots and pants and boots and pants and boots and pants. Voiceenabled bill pay. Just a tap away on the geico app. Huh, 15 minutes could save you 15 or more on car insurance. Yup, Everybody Knows that. Well, did you know that some owls arent that wise. Dont forget about im having brunch with meagan tomorrow. Who . Seriously, you met her like three times. Who . Geico. Welcome back. Not everyone in colorado is happy with marijuana legalization. Earlier this Week City Council members in colorado voted to place a permanent ban on Retail Marijuana sales in the town citing a high likelihood there would be negative impacts if recreational pot businesses were left to operate there. Mark williams is the mayor. He joins us now on squawk on the street. Mayor, thank you for joining us. This has been a long fight for your town. How did you arrive at this weeks ban . It really wasnt that difficult of a decision for us. We had previously in arvada banned medical marijuana. If youre not going to have medical marijuana which may have legitimate purpose, why would you have recreational marijuana. We received a lot of feedback from our citizens that said we dont want to see this in our community. And so it was really not too tough for us to come to the decision we did. You cite image as something that was a barrier to wanting to introduce marijuana to the town. How do you balance image with the potential to gain a lot of revenue . As a politician is it important for growth and industry in any town. How do you balance those two . It is a balancing act. Arvada is a familyoriented community. We have a lot of Outdoor Recreational activities, a lot of faithbased groups and different clubs and entities that really put a high priority on those kind of values. As to the economic gain we didnt really see that there was going to be that much potential growth or gain for us by legalizing within our Community Sales or growth facilities. It seems to be an interesting debate around the perception of marijuana. Of course, its a largely cash business, the federal government has not necessarily recognized the facility of banks to fund the transactions. If that infrastructure starts to change whats the likelihood that you would reconsider this . What we need to see is what happens at the federal level. If theres a change . President ial administration, i dont know whether or not the federal government is going to look at what they have done with the same viewpoint. What ive talked to in terms of bankers and things of that nature, they are very concerned. Ive talked to landlords as to whether or not they want to lease to these types of facilities. If the cli t mate on a federal level changes, perhaps a future city koucouncil would want to revisit this. We talk often, mayor, about if clash between state politics and federal politics, especially where the legalization of marijuana in colorado and washington is concerned. But how difficult has it been between state and municipal politics to do your own thing in arvada while the state of colorado is doing something differently . Whats so special about what happened with amendment 64 is it certainly decriminalized on a statewide basis, which is an issue of statewide concern. But amendment 64 specifically provided that local communities could use their local control to decide what was best for their community. And thats happened throughout the state of colorado as various communities have looked at this issue. Some of have come down on the side of saying, yes, we want to legalize and regulate. Others like arvada have said we dont want anything to do with it. For now, mayor marc williams, its a constantly changing debate, for now we thank you for joining us. Marc williams, mayor of arvada, colorado. Meg whitman announces a through 3d printing strategy. Is it too late . The next technological innovation for the giant hp coming up on squawk on the street. And new developments in the search for the missing malaysian airliner. Update, yes, from australia, next. In the new new york, we 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 hp Ceo Meg Whitman says look out for hue t let pack cards 3d printers. Expect a big announcement in june for the space. Jim cramer had this to say earlier. Listen up, solid investors. Hewlett hewlettpackard. When is hewlett going to move in . Theyve been considered down the next 3d. This also going to hurt 3d. Dvd. 3d, its all a talk of the town. Josh lipton joining us in san jose with more. Josh . Yes, simon, it was actually the very first question meg whitman fielded yesterday from shareholders at the companys annual meeting, what are her plans for 3d printing. With whitman did not miss a beetd saying that hp is, quote, hot on the case. The Company Plans a big an nowment in june. Hp has been involved in this space marketing 3d printers from stratoses and the company has said it would jump into this market but now we have a firm time frame. What does this mean for the bottom line of hp . It gives the Company Exposure to a fastgrowing industry. Analysts at gartner says its reached an inflexion point with shipments surging by 95 annually through 2017. The industry still faces challenges. Just take a look at shares of x1 this morning which went into a loss and disappointed the street. Shares of 3d systems and stratasys is in the red. Its hard to see analysts say how a still relatively small industry such as 3d printing could have a material Financial Impact for the company in the near term. Hks p is the worlds biggest printing company. They want to know they have a seat at the table when it comes to new technology. Brent of Pacific Crest says a 3d rollout reminds investors that hp can still be innovative and disruptive. Thanks for that, josh. Jeffries says that athome 3d printing still a long way off. Commercial 3d printing may be very close. Well keep an eye on hp for that. Josh lipton in san jose. Now we want to move over to chicago and cme group and Rick Santelli. Rick . Thanks, sarah. I tell you what, yesterday whats notable to me is some of the magnitudes of the yield curve moves, some of the counter intuitive aspects of the moves are really quite breathtaking. Real quickly. Lets put a face on it from two different directions. The low yields or the year and all maturities were on a closing basis, february 3rd. Okay . Here were those closing yields. Okay . We had 62, 144 for the fives, 258 for the tens, 353 for the 30 years. Now, what i find fascinating is, lets look right now where we are and how much difference there are in the yield curves. Right now were 90 basis points. 28 basis points higher than the low yield close. For five, 27 basis points. Ten, 19. For 30, only 11. Heres what really gets fascinating. If you looked at where yields were right before 2 00 eastern yesterday when the statement was read, how much has it moved from where were at right now . Threes are up 14 basis points. 5s are up 14 basis points. 10s are up 6. The 30s are down a basis point. Down a basis point. Now, why is any of this important . Lets take a walk back in time. Remember in july of 2012 . Mario draghi brought out the big ba zoo a, i will do anything, any time, anywhere to make sure the southern european economys Interest Rates are not as high as they are. What prompted that . Ira harris knows, i know. Because if you look at july 24th and look at the southern economies, lets pick spain, throw up the chart. On july 24th of 2012, their twoyear note jumped to 665. Flattened dramatically. Same maturity right now is 74 basis points. Why is that important . Think bear stearns, think lehman, think drexel. When you borrow short and lend long, the real risk, you know, we always talk about steepening good for banks. The risk, what made mario draghi cry uncle was one shortterm rates that Fund Everything shoot up. Now, yesterday why did it shoot up . Because thats important. My rational is by looking at, you know, how the off the runs are trading on the runs getting into all of that nittygritty granul granular. We see that large institutions wanted to hang out and leave the fed that the rates they control on the short end is going to be tape. Its the long end you have to worry about. No, if you listen to me earlier in the year, the long end is only worried about if stocks really have a dump because they will be the new teen and where everybody buys it. But the short fa chmaturities w thought it was safe, they had to get out of quickly yesterday. Hence, the flattening yield curve. No matter the short end does, maybe its just trading logistics, the long end. Tens and 30s that i feel pretty confident theyre ulz going to have one eye on the weakness of the stocks because you could say nobody wants treasuries but if we ever have a time where not as many want stocks theyre going to love the long end. Back to you, sarah. Rick, define Janet Yellens comments diving into the dot plot, always, thanks for bringing us that. Up next on squawk on the street, a rosa parks moment. Thats how our next guest puts it. How quloi es of an entire industry are being taken advantage of. Which industry may surprise you. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim from td ameritrade. All on thinkorswim no two people have the same financial goals. Pnc investments works with you to understand yours and helps plan for your retirement. Talk to a pnc investments Financial Advisor today. Coming up next on the half right here at the New York Stock Exchange, yellen speaks but what did she say . Were going to make sense of it all with two market masters, strategist ed and black rocks rick reader. Dangerous to your portfolio. Could five wellknown stocks end up killing your returns . Were going to explain that. Plus, love golf and all the gizmos that go with it . One startup is hoping its business will score a hole in one with players. We have the ceo and the goody bags. Kayla, see you in just a bit over there at post 9. Thanks. Our next guest has worked at a host of startups in Silicon Valley for two decades and encouraging workers to ask their bosses about compensation. Chris spoke at a pep rally of sports for Silicon Valley employees saying, quote, we need a rosa parks moment where startup workers can stand up for themselves. Here to explain is chris himself. Founder. Thanks for joining us. Explain your rationale between the need for Silicon Valley workers to stand up for tlems . We build very Disruptive Technologies that help the economy get more efficient and we take a lot of risks. So what we found over the last few years is that twothirds of employees dont know the basics about equity and because the founders and the vcs take advantage of that information asymmetry its getting harder for startups to find an retain talent relative to Larger Companies so we need to make the economy better and to do that we need startups to have more people who know how to get what they should get out of the opportunity when it comes to the equity portion of their compensation. Chris, whats an example of when this happened and how it could have been done better because certainly from where we sit it seems like theres a whole lot of wealth being created in Silicon Valley and all the employees are getting to take part in it. Well, me personally, i joined netscape. I didnt know the difference between the ipo and ppo. You know, thats most people starring point is knowing absolutely nothing. But some specific examples are most people dont know two thirds of the people dont know the number of outstanding shares which is the denominator to figuring out how much of the company you own. Most people have a four to 5x delta between what they think they will make and what they will make given the actual average exit value of companies at the stage of the ones theyre in. There are a lot of examples of people not knowing. Chris, i applaud you for bringing this up. I think some people might remember the movie about facebook as being an example of how somebody can think theyve got a lot of equity and all of a sudden they dont. It seems to me like this has changed over the past 15 years. When i first got to the valley back in the very late 90s you heard about secretaries becoming millionai millionaires when an ipo happened. Have the vcs and founders gotten more sav vie about how they structure the packages so the rake in file get screwed over . Yeah, i think theyve certainly gotten more savvy. Theyve learned how to, you know, insert things like repurchase rights that let them buy shares from employees who leave at a price less than the exit value. Theyve learned to, you know, avoid ever discussing things that employees would ask if they know like double triggers which are protection so you can keep investor value after an acquisition. So theyve gotten better but the big problem is really that theyre taking advantage of a group of employees who havent yet learned because we dont teach the basics of equity and its such an important piece. Chris, i want to get your thoughting on a blog post from mark cuban. Obviously noted entrepreneur. Hes saying that not only have investors and employees become more savvy but theyre in seek of these stock options. He said, quote, today nuvo entrepreneurs are looking past the pitch right in front of them who will pay a higher valuation. In essence, startup are starting to market. They havent earned yet against the options they havent received in companies they havent yet heard of. Its a back to the future a arbitrage. They are savvy. A. Call to a lawyer consulting with a former mentor or employer, how can employees be doing this differently and is there a sense where they are just being greedy . Thats not it at all. The reason im doing this, you know, theres a lot of people like me who have to go through 1020, years of ragefilled moments of realizing that vcs on sandhill or greedy founders took advantage of your lack of knowledge. And so theres nothing that individuals can do to get smart thats going to help them assert their rights. What we need is the startup employees to actually get together to decide what their rights are, what inalienable rights they have and enforce those. Its the person its the person who is going to go from nothing to making 100,000. Theyre not going to get there unless they know what they need to know. Arent these people highly motivated individuals capable of programming, programming social media, they surely must be able to connect together and to talk to each other. I mean, youre describing what is almost a problem from the 1970s in the way that youre describing it and the rage that you feel. Surely these are highly educated mobile people who are able to sort it out and to learn what they have to learn. Well, you know, i would say this. Ive been in sales. I dont know how to program. If i asked you what a double trigger was you wouldnt know but its going to decide more than anything else how much money you make if your company gets acquired. This is a very specific set of expertise and its one that we are systematically not allowed to learn what we need to learn. Chris, its an incredibly important point. It fits in the context of steve jobs and some other ceos in the past to not past employees. Is it proven . Absolutely proven. Emails that went back and forth. There is an issue here that Big Companies and ceos need to address. Vcs need to address, about how the rank in file get compensated. It fits into this larger narrative we see here as well. It sounds to a certain extent you would say that Silicon Valley employees need to unionize. Would you go that far . No, they need to educate themselves and know what their rights are and they need to be sure what they ask for are things that they know they can get and then they need to give the founders and investors opportunities to endorse those right toss have the advantage of playing fair. All right. For now well leave it there. Coming up next, weve all heard of air b and b. Jane wells is live in los angeles with another website for the sharing economy. Jane . Kayla, its called airpnp. Rehn out your toilet. I test out the system. It didnt end well. We have that next. Female announcer what will you get with your new sleep train mattress . Man im getting a camera im getting an espresso maker im getting a new smart phone female announcer during sleep trains big gift event get a 200 best buy gift card with purchase of selected beautyrest, posturepedic or tempurpedic mattresses. Or, get 24months interestfree financing. A new tv. A laptop. A game console female announcer sleep trains big gift event is ending soon. Sleep train your ticket to a better nights sleep news this morning from a airbnb, the home rental marketplace is in advance talks to raise funding to value the company at 10 billion. It would make it one of worlds most valuable startups. Speaking to the im her jens of the sharing economy. You can share your home, your car, your bike. But is there such a thing as over sharing . Our own jane wells is not looking at airbnb but airpnp. Jane . You just got a taste of it right there, kayla. You know, they joked about it, peer to peer, has a whole new meaning. Two guys from new orleans started what you just saw there. Launched airpnp, play on the airbnb. Except instead of rintdi irenti your home, you rent out your bathroom. At mardi gras it turned into a real business. A former comedian turned selfdescribed entrepreneur told me in the mens room the rest is history. It just became such a word of mouth story it was out of our control. And people i mean, if you look at it now, we have more people in europe than even new orleans with no marketing. This was an experiment. So the experiment was what if you make a company that is so funny that it markets itself. So here i am leaving san jose airport. And i actually have to go to the bathroom. All right. The Business Model needs a little tweaking. I tested airpnp in san jose, one listing with no phone number but i showed up at the apartment, noktd on the door. Heard the dogs barking. No one was home. I really needed a bathroom at that point so i went where i always go, starbucks. While many of the listings in europe are the real deal often people listing their bathrooms in the u. S. Are just joking. Still, lauren dean says hes making a little money. Theyre hoping to build apps and two wellknown toilet paper brands have contacted him about a potential deal. No background checks on the renter or rentees. So peer beware. And what does airbnb say . The full story right now on cnbc. Com. Guys . With an interview that took place restaurant. Unchartered frontiers. New to me. Im not surprised its doing better in europe, i have to say, jane. Well leave it there. Well, yeah. 3 trillion ps in the u. S. A year, according to travis. 3 trillion. A steady stream of customers. Well take a quick break and back in a moment. Moment. t back. 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 nascar is ab. Out excitement but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. Thats why we partnered with hp to build the new nascar fan and media engagement center. Hps Technology Helps us turn millions of tweets, posts and stories into realtime Business Insights that help nascar win with our fans. To manage your money. R guy around 2 percent thats not much, you think except its 2 percent every year. Go to e trade and find out how much our advice and guidance costs. Spoiler alert. Its low. Its guidance on your terms not ours. E trade. Less for us, more for you. [ male announcer ] help brazil reduce its overall reliance on foreign imports with the launch of the countrys largest petrochemical operation. When emerson takes up the challenge, its never been done before simply becomes consider it solved. Emerson. Big day for banking. When the stress test emerged, kayla will be handle that from the network. What should we expect . 30 banks, 12 new banks. A lot of foreign banks. U. S. Bank corp. And bb t at 52week highs. In the meantime, the Market Making gains as well. Up almost 62. There you go, 62 on the dow in the wake of yellen. From this show, thank youer have much for watching squawk on the street. As we hit noontime on the east coast, lets hand it over to the fast money halftime report. Scott waper . Have a greate rest of the da. Heres the game plan. Janua janets jolt. The fed chair speaks and the stocks sell off. Portfolio killers, the stock some say could kill your returns. Were going to name the names and see if the traders agree. Outside the box with the golf season soon to be in full swing, well meet one startup catering to weekend hackers. Weve got the ceo live and the goody bags. Jon and pete are here along with josh, steve grasso. The market is rebounding today on better than expected Economic News but there are still very much digesting what were