Transcripts For CNBC Squawk On The Street 20150310

Open as futures are weak. More worries about rate hikes pushing the dollar to 12year highs. Oil below 50 the group likely to maintain production at june meeting. Tenyear yield in the neighborhood of 2. 15. U. S. Markets unpressure taking a cue from earlier declines overseas. Higher dollar lower oil, Interest Rate related uncertainty. Echoing through the ecosystem, find out if apple customers, investors and Business Partners got everything they wanted out of the presentation. Qualcomm higher premarket, launching Million Dollar buyback as well. Stocks are selling off after yesterdays brief rally. Weaker than expected data from china, concern about greeces debt deal helping fushpush futures lower. Dollar strengthening to i 12year high against the euro. Investors weighing potential for early rate hike. Dick fisher saying a rate hike needs to be prompt the wage picture is exactly as you would expect, its a lag and theres not linearity there. Domestically, yes it should happen sooner rather than later. If you look internationally, theres havoc. The dollars moving up so aggressively, its going to cause not turmoil but actual i think, wreckage in a lot of funds that have money in some of the emerging markets. Logical place to look at is brazil. I think its difficult to turn your head from greece where we focus, or europe to latin america. But theres a lot of debt issued. Understand people are out of position. When i say people big mutual funds out of position. Theyve been buying bonds because they wanted yield. Suddenly the moneys coming out of them, weve seen this in 97, 98, i dont think it will be that bad. There a contajing among companies that have issued a lot of bonds and thats what people are reacting to. Plus, no one can move this fast. When you see these lightning moves people are out of position and frantically trying to get short anything and thats how you get this kind of selloff. A lot of traders in various marks, of course. Listen weve talked about Dollar Strength for months and the impact its having on the multinationals will bring on strategists who will point out, its only 15 of the s p or less that are reliant for a good portion of their business on exports and are really getting nurt that hurt in that way. The real weve hit on brazil here and there but we may need to focus more on whats go on in the country. Its not just pet probrass its getting hit not just because the strong dollar but whats going on in oil, but the stateowned banks. Stateowned banks funded hundreds of billions in loans, one has to wonder about whats going on in brazil. 400 billion in dollar denominated bonds we have to worry. There are a couple i dont want to point out who, but large funds that have made big bets on brazil. Ive been focused on mexico. And the peso today, record low. I was in mexico recently and it was at 14. And no one could believe that it could be up from 12. These are happening with lightning speed. Youre long a lot of mexican paper of which there, mexican bonds have been fabulous, youre getting withdrawals. Do you short mexico . You short everything hoping that perhaps at least you can these are happen right now. Real time. I know you dont like big gaps open to the upside respect a gap down here . Research saying buy this. Great question. I think that technically, to really default to that when youre in unchartered waters people default everything hold fridays lows. I dont know if thats possible. I think there are tons of people now who are saying when does this end and when does the euro finally bottom, because david, the 12 , its almost its a it doesnt matter. The s p trades with whatevers the worst part of the economy right now, whatevers the most damaged part. You can pick up health care names, like you can buy domestic restaurant, but the lets use an example, mcdonalds, the burgers all over the world. In the end, their earnings will get really hurt and thats just a good example of something. Someone might say that stock was at 97 ill bank it to 96 fundamentals arent that good. There are a lot of companies in the crosshairs you would not normally think because of the dollar. The dollars insanely insanely as are yields are so many of the european countries. I mean, german tenyear down. 28. Down three basis points. Tenyear paper. Cokecacolaocacola kinder morgan. Our companies are saying its free money there and were going to take advantage of it. But who this is just hedge the currency. There are people frantically trying to get out of the euro frannic. This is happening because qe just started monday. Definitely without a doubt they want inflation and theyre going to get inflation. Theyll get some nice sales. Yes. Speaking of sales, apple, if you havent heard, held an event in San Francisco unveiled pricing and feetatures for the watch. From 349 to 17,000. A new line of mack books, presented a Platform Research kit with hospitals signing up to diagnose diseases and an update on apple tv cutting the price from 99 to 69 partnering with hbo to roll out the streaming service, of course hbo now. Stock sold on the news, as it often does. Yeah. Thats why i say, dont trade the stock, own. You hit on a key, a key element of sales, which is that if you can do the health then you can prevent disease, if you can prevent disease, and im humana, im cigna, if employees get the watch, i will cut your premium, thats where were going. It could happen. At same time i dont know if youve seen the ads, but remember, the other guys cannot put money behind Something Like this. And this is the most this is heavily advertises obviously want this to win. Heres ad. What do you mean when you say the other guys cant put money behind Something Like this . What does that mean . I dont want to single out a particular advertiser but there are advertisers for other watches, but you know this is going to be a promoted product. Look, john legere tweets maybe tmobile should do something. All of the phone companies are looking, maybe they should do something. Health care companies, maybe they should do something. The apps maybe they should do something. This is big. Yeah. But it does not impact this quarter. So those who say, well its big, but so what . I get them too. Its not a quarter. Youre not watching for units sold in calendar 15, whether its 15 or 50. First throw away our watches. Someone has to give you the watch. I didnt like the 18 hours. Those of us who sleep 3 1 2 hours, 4 hours, what is it . 11 00, our watch runs out . What is it like cinderella. Thats a problem specific to you, only your problem. Dont you take your watch off . You dont have to sleep. My battery ran out on my watch a while ago. Mine never runs out. I dont know what kind of watch you have. Canal street . I dont remember. Thats beautiful. This is not 12. Last week you gave it to me but then took it back. You were going to take this and throw it against the wall if the watch did what you thought it was going to be able to do. Is that the plan. I need the 24hour battery life or Wireless Charging. Give me Wireless Charging then this is not only yours but go right through to hit squawk on the street. One thing that how many iphones have they sold . 700 million. Dont you think 20 Million People a watch that syncs with their iphone . Say you have something that indicated what youre Blood Pressure was going to be dont you think it if was flashing something that indicate what your Blood Pressure is going to be. Know how to act. I have mt. Sinai, beth israel, i have Hospital University of pennsylvania, theyre all focused on my watch. I tell you what ubs call yesterday, the title was, can they sell a billion watches, was mostly based on that. Down the road will it be able to tell your blood alcohol level . How that change the game . Turn off our cars. Right. Bmw. The cardiologists i deal with are saying we dont have the Blood Pressure thing, 600,000 lives, there are lots of people doing cancer tests that do not involve invasive pricing the skin. Its health. Its about living to 100. That is the Silicon Valley mode. People there who are 20 are thinking to live to 100. What is Social Security going to be like then in. Are you thinking about it. Youre 51. Did you have to say that out loud. Wow thats rough. My nephew cliff mason, who is here when i started mad money he called me at 60 youll say 63 why . Youre the youngest looking 63 ive ever seen. He says so much better young looking 63 and old looking 53. He had a point. True. You still got three more years till you get there. Finally we have qualcomm today, 15 billion buyback, div hike from 42 up to 48 cents. It would finance the capital return through debt. Well watch the stock today. Going to open up almost 2 . Did you break that story. We. You are a team player. Interesting, because the capital return is above what i think many people anticipated. 12 of the company. 12 of the cap. Talking 15 billion reauthorization, 10 billion will take place in this year. They had their annual meeting at qualcomm. Theyll do an accelerated repurchase, that means in the market nearterm buying a lot of the 10 billion. We dont know how much. How about the stock goes from high growth cut the guidance, and it goes to value, and now its value, dividend buyback. Right. What does that mean when you talk about the growth trajectory for a company like there is . Qualcomm, when you look at its apple in terms of return to capital, buybacks apple number one, microsoft, ibm, qualcomm. Do you want to be in with na group, other than apple, because it has so much cash or slower growths here to stay were focused on effectively allocating capital and returning a good deal of it 75 of Free Cash Flow will be returned stocks or buybacks. Stocks 72. Announced they lost a key customer. Samsung. Stock drops to 62 cant resist because its a big cash generated. Remember, its fabulous. Stock goes up boom you get the buyback and it takes it over the top. Urban outfitters, which were going to talk about, announced buyback ten days ago. That was smart. Howment Many Companies are helping to support the price. Gm yesterday 5 billion. Qualcomm later in the day 15 billion. Sold. Even urban outfitters. I assume thats small but still. All of the companies, theyre in there i remember when 3m in 1987 decided were going to stabilize our stock because of the crash. First real buyback. These guys can buy back all of the stock on a day like today. I hope they space it out, buy some at 10 11 12. Man, theres a lot for sale. The criticism will be buyback stock at the expense of not investing as much as you should be in the core business but many of the companies will tell you thats not the case. Many of the investor whose argue for the buybacks say, youre not allocating capital properly issue debt the way qualcomm will be and take your leverage up a bit because thats the world we live in now. Look a company like honeywell, spends a lot of money in research and development and buying back stock. Its a balance. I like the balanced approach. A big week for jim, mad money, celebrating ten years of that program. Big week of shows as you can tell from last nights pepsis chairman and ceo was on with jim. Take a listen. I think the reason pepsico did well we have a history of being adaptable, we have had courage to make all of the right moves and delivered. Performance fairly consistent over the years and its a combination of adapt ability, resilience, courage, performance thats yielded great returns for all shareholders. Whether it was regeneron, pepsi, starbucks, now a show as you said to be proud of. Thank you very much. She has generated the highest growth of the traditional consumer package companies. Good for you does matter. I was at a super bowl party. They had humus. Burger king today, taking soda off the kids menu. Amazing. Thats what she identified and talked when nelson pelts person comes in he may like the combination of food and beverage. Howard schultz comes on coming from the roastry where hes doing craft coffee. And the stock was at 4. 74, he came on he said look ive got a drug that does better than what lucentis is doing, it was a miracle drug. Say 423 points later he turned out to be right. Not bad. What stocks over ten year mad money viewers will take that every single day. You have a hanes bottom a good buy. On this date in 09. You can say, you know what . This dollars going to kill the peso in mexico or you can look back at say, which is todays regeneron . Which is the company today thats going to get thrown away because of the real . The real . Yes. Len. Lifer was not stopped. No down 14 against the dollar, the real. One point we thought that valet was a man with a velvet voice. Today, this valley can cost us. I miss the days when it was the velvet voice. He was good. No mel torme. He was good. I met vick damone once. Jim and mad money team going to ring the opening bell. Jims going up to the podium in a moment. Well talk to him and get his view as he rings the bell in a few moments. A few different takes on apples watch from the price, fitness, Health Monitoring uses. Take a look at the futures. Its going to be a little rocky at the open more squawk on the street live from post 9 in a minute. 15 years ago today, the nasdaq hit its alltime intraday and closing high intraday 5132. Nothing like that today, futures are weak on concerns about rate hikes, the euro greece and more. Oil as well. Well get the opening bell in ten minutes. [announcer ] what if one stalk of broccoli could protect you from cancer . What if one push up could prevent Heart Disease . [man grunts] one wishful thinking, right . But there is one step you can take to help prevent another serious disease pneumococcal pneumonia. One dose of the prevnar 13® vaccine can help protect you. From pneumococcal pneumonia, an illness that can cause coughing, chest pain difficulty breathing and may even put you in the hospital. Prevnar 13 ® is used in adults 50 and older to help prevent infections from 13 strains of the bacteria that cause pneumococcal pneumonia. You should not receive prevnar 13 ® if youve had a severe allergic reaction to the vaccine or its ingredients if you have a weakened immune system, you may have a lower response to the vaccine. Common side effects were pain, redness, or swelling at the injection site. Limited arm movement, fatigue, head ache muscle or joint pain less appetite, chills, or rash. Even if youve already been vaccinated with another pneumonia vaccine, prevnar 13® may help provide additional protection. Get this one done. Ask your healthcare professional about prevnar 13® today. Oil struggleing, below 50 a barrel. Good morning to you. Thats right, downtoward pressure on both side of the atlantic. Right now, the strong dollar the dollar index, over 98 very bearish for crude prices. A couple of other factors traders are considering bearish as well in terms of production, chat that opec is not going to hold an emergency meeting, its not going to cut production at its june meeting, thats the speculation in the marketplace weep have the latest eia data u. S. Output this year expected to increase to 9. 3 million barrels, thats a record since 1972. We havent seen that kind of production. You also have Strong Production out of russia more than 10 million barrels. Mexico upping its production by more than 2 million barrels. On the production side of the story, a lot of supply out there. Api data this afternoon, a read on the doe tomorrow expecting another build. Prices could head lower from here. Back to you. As we said cramers going to ring the opening bell in seven minutes celebrating ten years of mad money. Hes made his way up to the podium with a gavel and a camera. We dont get the shot too often. Im rehearsing carl. If you screw this up theres no doovers. We did on the 5th, no screwups but this is a bigger event, the tenth. Also a market thats more exciting. Of which obviously i should be overshadowed but its fun for a couple of seconds. Walk us through what it looks like and whats behind the lectern or podium. A guy with hairier arms than me can we not airbrush this. I mean do we have but it is kind of very sur reason back here, which im not used to. Its kind of like a spa. Like a spa. Jim, take me back ten years ago, right . I mean Financial Media looked a lot different before you came along with this concept. What led you to it . How hard was it to break the mold, so to speak . The idea i remember talking to my dad, and i said pop, i want do this show about stocks. He said what do you think, youre like a oneman song and sans band . I said yes. Were going to go out, entertain, educate, explain the market and actually talk about stocks we like and stocks we dont like. Yes, carl that was somewhat radical the idea is that all stocks were created equal. I wanted individuals to be in the game. Called them home gamers from the beginning. I wanted people to be turned on by stocks there are stocks like apple, regeneron, pepsico, starbucks and people to be in index funds. But once they had some mad money, it was time to pick stocks. Im thinking of the franchises, guys the sound board, the lightning round, wall of shame, the college tours, jim. You didnt stop at year one. Wall of shame, by the way, ive made pieces when they leave and stocks go up they come down from the shame. I do think that the lightning round, i thank my radio friends, am i diversified. The idea of a show talk about what happened in the market try to make sense of it i think is still needed. Who will understand today that its the brazilian real thats driving it down. Ive got to make it come alive. Jim, well compact to you in a moment as you ring the bell from the very podium, after this break. Hello. I am a fully automated Investment Advisory service. I can help you choose investments. Monitor them. And rebalance your portfolio. I can do a lot of what humans can. Except have a real conversation. If youd like that, you can always speak to someone at schwab. They arent algorithms. Try not to hold it against them. Say hello at intelligent. Schwab. Com let me talk to you about retirement. A 401 k is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable professional. Would you trust me as your Financial Advisor . I would. I would indeed. Well, lets be clear here. Im actually a dj. [ dance music plays ] [laughs] no way i have no Financial Experience at all. That really is you . If theyre not a cfp pro you just dont know. Find a certified Financial Planner professional whos thoroughly vetted at letsmakeaplan. Org. Cfp work with the highest standard. Looking for a weaker open as futures are in the red. Watching cnbcs squawk on the street live from the Financial Capital of the world. Cramer about to ring the opening bell in about 90 seconds. Jim, people are either saying youre doing your best version of mussolini or theyre tweeting dont cry for me argentina. You know what . I love italy. Im a seller of argentina right here. Actually argentinas stronger than brazil. Its going to be difficult to talk about these countries because people dont think they are matter but theyre matter because of a flow of funds, going to different places, a lot of guys caught the wrong direction. If youre kimberlyclark, long proctor, should it matter . It will because you have overseas sales. You changed you opened the show with the words hey im cramer, welcome to mad money, some people want to make friends, i want to make you money. Argue you never swayed from those ideals in. No and its tough. People whom we have had them on the show i felt very good about and numbers dont come through and the facts change and youve dot togot to change your view with them. Booyah came from a call in once. Yes a caller in new orleans radio affiliate and says thats what happens when you make a lot of money, you say booyah, and thats what we did. Jim cramer, about to ring the opening bell. Ten years of changing media congratulations, were all so proud of him. Theres the opening bell. [ bell ringing ] on the right side of your screen our boss mark hoffman to the left side to the right, regina helping make that show happen. National instruments provider of platform based systems for engineers and, david, we should make the point the show doesnt produce itself. Jims a force of nature but it happens with a lot of support. Without a doubt. Everybody needs a team and hes got a great team. Great deal of loyalty to to that show ever day is a beast, as you well know. Yes. Actually, the production of it is amazing to watch. Nick our managing editor on the podium as well. Thats a nice who is going to get the banner if nice takeaway. Head of business news. I know. Theyve got to sign it put it up for auction. Something good. How does that sound . Right . There you go. Jim delivering the address from the lectern, quite something, i must especially up there. That worked. Well let mim make his way back down. You mentions urban outfitters, david, in the first half hour. Comps up 6 going positive for the first time in a long time. Thats an 8 gain almost for urban. Yeah. I mean as weve said so many times, its sort of a tale of two cities went it comes to retail, as you well know carl. And in this case its working. Others, of course, we know even in apparel, its not working. Janney upgrades, blair upgrades janneys target to 48. The companys regaining inventory control. Apparently the whole sale business tracking ahead of last year which might mean good things for the second half of 205. Right behind it qualcomm not as much of a gain up 1 . But of course we mentioned the 14 div hike and the 15 billion buyback. People are starting to crunch up in as to how much of the market is supported by buybacks over the past several years. Ive seen numbers as well i dont know if theyre quite accurate, but interesting, some saying a large percentage of the volume in many of the names due to the Companies Buying back shares. Weve seen a lot of buybacks but in an environment like this where, for example, qualcomm can issue debt at what we expect will be extraordinarily cheap rates, to go and perhaps lever up your Balance Sheet the slightest bit and buy back enormal enormale enormous amounts, so they will access the Capital Marks in part to help fund this buyback. But, you can do both in this world it would seem. Invest the way you need to but allocate capital so theres a return and help support the stock price. Intel has big factories. Qualcomms an intellectual Property Company and that matters tremendously. Urban, dont forget urban outfitters, the flagship had good numbers. Anthropology anthropology, very good catalog. We can say why are we talking about anything thats good . Some of the companies are going to triumph over the turmoil. Theyre just going to triumph. Maybe because of selfhelp. Maybe because of speaking of turmoil, weve seen plenty of it in oil. Talked a great deal about it. In fact ten years on mad money, i think one of the things youre done is educated people so well on the revolution that took place in fracking. All of the names, trying to understand its not just across the board, that there are differences. Ive learned so much from you on that. Drilling costs 29,000 down to 20,000 in permian or balkin well. Takes eight days to drill a gad well. Some people are saying productions peaking. I dont see it peaking. That would argue well stay around 50 or go lower. Rex tillerson and i agree on something, ceo of exxon, saying its not coming back. Rich kinder saying its going to hold 42 43. Dave cody tremendous amount of refining chemicals thinks its 50, the right level. You mentioned exxon. Exxons going for its ninth day down nine days on xom. Just went negative. Chevron is up. Article today in the journal about all of these oil companies, not up that level, that have been able to issue stock. And keep moving. We talked about it yesterday, too. Look weve got calumet doing em Bridge Partners yield 6 8 Million Units today. We have to watch these because now those are different, these are not companies that are just doing it to theyre not goodrich petroleums. But it does matter. Everyones amazing money, taking advantage of this and they have to. The Balance Sheets have to be fixed. With the rate hike worries and fisher today, yesterday s p says were in for 10 correction. You havent said thought that yet. I do think we can go down. Im not crazy about the market because these flow of funds do worry me. Fisher wants to send it over the edge, you do that. You do it emergency rate hike im done think that anyone wants to necessarily send it over the edge but this is a very disconcerting market if youre sitting there running money and youre getting withdrawals in your latin because of your latin american exposure. Many of the really im looking at names that have gigantic amount of fixed income in the countries, fixed income and theyre not going to hold up well. Remember 97, 98, stanley fischer, some of the countries, they need the money. We done foe what the reserves are. Theres a lot of opaque nature. We focus everything about greece, we know everything about greece. Greece is a pimple compared to brazil. Without a doubt. It wasnt long brazil was one of great growth cases for mr. Oneill. Its not a bric its not rick, its i. Its i. There is no i in team. Just india. The breadth pretty horrible. Maybe, what 20 names in the green on the s p. The hanes level, when you get nine stocks down for every one, youve got to think about a crescendo bottom. You covered some of that yesterday with anniversary of marks call was today. Right. In which he said im going to step out on a limb here i think were at a bottom i really do. Specifically the 200day moving average on the dow. Mark was remarkable in his sense of equity mimity. Period lick i he said, hoe kay,jose, he said enough, and it was enough. Responsible for putting you on tv, good move. Yes. And was look he was my biggest backer what can i say . Terrific. Six years ago. Yep. Six years ago. Six years, wow. Goes by. Everything goes by. I think youre 52 now. Happened so fast. What a year that was, though. S p, down not quite 1 . 18 points to 2060. The important thing we did not quite have the really awful open weve been anticipating people think wed be down one, 1. 25 . Were sitting near lows down 0. 9 . Fed may break hike rates in june. I think thats the major issue. The dollar seems to be the big issue as well. If you look at the dollar against the euro 1. 07 right now. There you go 1. 07. The dollar index, foreign currencies against the dollar a 12year high. Also seeing a big drop in european bonds today. The strength in the dollars causing real problems out there. You look at the eem, a basket of emerging market stocks down eight Straight Days now, eight. This concern about the Dollar Strength is not a new one weep have been dealing with this for the last week and a half. The Dollar Strength also causing a lot of problems with earnings. I showed this a week and a half ago it has not improved. The s p estimates for the current quarter, s p capital i. Q. Numbers are negative. We have turned negative. Everybody knows about Energy Stocks being weak but many other sectors, lower estimates because of the strength of the dollar. And now were starting to see a real impact. Q1 is negative compared to q1 of last year. Yearoveryear. Q2 is negative 2015 up 1 now. If we stay down on this quarter, this would be the first negative quarter for earnings in the s p 500 since the Third Quarter of 2009. So, yes, there are Energy Concerns that are weighing on the markets but the strong dollar is also ill figure out a way later on in the day to tease this out, the relationship between the strength in the dollar and the weak oil that we have seen and effects its having. Two major reasons were getting negative estimates and this is a major, major concern for the markets right now. What you want to watch today is some of the high beta names. Initially, were not that bad. Ibb, biotech etf, a classic high beta, down 1. 25. You often will see that move 1 on a day. Thats down more than the market but not that much. New tech another classic high beta play that you would want to watch on a day like today. Yelp and twitter are down facebook. Pandora turned positive. That stock was initially negative on the morning. I want to talk about apple quickly. I know carl you mentioned this, this was amazing to me when i got up and said i wonder what the analysts think, the apple watches are going to sell look at this opinions out there, for what theyre going to sell for 2015 on the watch. 40 to 45 million, susquehanna, 20 25. Stifel has 11. I get the whole idea here i get its an imprecise business forecasting demand for products not out there is hard. Look at this. 40 to 45 versus 10 to 15 were talking. A factor of four times difference here. You get the point. Bottom line nobody knows how many apple watches are going to be sold now. Finally, a tribute you mentioned mark haines our great colleague, theres apple there, down fractionally the bottom was today. The beauty of marks call, a simple call. He saw that the 200day moving average as well as 50day dramatically far off from the current price in the s p. We had dropped to 666 on the s p a couple of days before his call, down 57 from the high. Marks simple observation was, rarely happens that the 200day moving average is so far away from the current price of the s p. He could have used fancy words like standard deviation or reversion to the mean but mark wasnt that kind of guy. He didnt use those kinds of terms. He expresses the idea it was weird, really weird, that the s p was so far way from that 200day moving average. And on that he called the bottom. A great call. A great guy. Back to you. Fully agree. Thank you, bob pisani. Rick santelli joins us from the cme group in chicago. Good morning, rick. Good morning, david. We all realize that the ecb Program Began yesterday. We saw some movement in markets that had been kind of stuck in a range like bunds, we continue to see how that dynamic playing into weak equities gives treasuries a renewed life as a hedge against all issues of the day. Intraday of tens. Set itll with 219, trading down seven basis points but most important, we settled last year 1. 65 on 5s, there not long ago, like this morning, now under 1. 60. 2. 17 on tens back below it. 2. 75 on 30s. Were at 2. 73 simple pivots that will keep you out of trouble. Clearly see on the chart, starting early december how the ten year stopped where you thought it would though there were many nervous longs out there, as it looked as though we were going to see more selling, focus sheftedifted towards europe. Bunds yields overlaid with the euro versus the dollar if you believe the youreeuros going to parity, you cant be thinking bunds rates are going lower. If wu look at difference our tens and bund yields its getting stratospheric. Thats a 20year start. Around 1989 to find that separation close to 230 basis points. Now, if we continue to look at whats going on with the euro currency, we have comp in september 2003. Todays comp back towards april 2003. Last, but not least, if equities get messy, think about all of the corporate issuance out there. Heres a chart to watch barclays high yield spread. If it starts to tick up that will be a weather balloon for you to pay close attention to. David, carl back to you. All right. Happy anniversary to me. And to you. When we come back more on the selloff the dows down 164 points. When we come back katharine schmitts from the university of pennsylvania partnering with apple on the tool to help Breast Cancer survivors to track. Shell join squawk on the street. Apple, by the way, down along with the broader market. Back in a minute. [ radio chatter ] [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage or major disaster, when you need us most, were there. State farm. Were a force of nature, too. Hey mom, you want to live by the lake, right . Yeah. Theres here. Did you just share a listing with me . Look at this one. Its got a great view of the lake. Its really nice mom. Your dad wouldve loved this place. Youre not just looking for a house. Youre looking for a place for your life to happen. Zillow opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. Welcome back to squawk on the street. Nasdaq, 15 years after the nasdaq composite topped out above 5000 were seeing a lot of red here. Qualcomm one of the few components inform the nasdaq 100 today in the green after the Company Raised its dividend and boosted its buyback. The company is really part of the trend. We are seeing that Tech Companies are the big of the contributors to the s p 500 when it comes to dividends. Generally april is the big month when we see these big moves. Well see if that trend continues. Meantime, we have seen a couple of more stocks join qualcomm in the black this morning. Inindividual on upgrade from b of a. Nasdaq 100 trading to the downside. Biotechs among the biggest losers, they are the downdraft again. Acorn, one of the losers the company seeing more generic competition, jeffries take down some numbers there. On the morning after, apple has been in and out of the positive territory this morning. A lot of folks ive been talking to in health care are very excited and looking at the idea of apple now creating a platform similarly as to what happened with music and the ipod, what happened with the iphone, and our use of mobile devices, whether perhaps these new Apps Research apps, watch could also propel Digital Health and monitoring. Guys, back to you. Bertha thank you. Well get stop trading in a moment. S p down a full point now, sitting just below the 50 day moving average. You can see the breadth. Back in a minute. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . At mfs, we believe in the power of active management. Every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. Which leads to better decisions for our clients. Its a uniquely collaborative approach you wont find anywhere else. Put our global active management expertise to work for you. Mfs. There is no expertise without collaboration. Now with the xfinity tv go app, you can watch live tv anytime. Its never been easier with so Many Networks all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Time for cramer and stop trading. Trading. We know the late mark haines called me reverend jim bob, of the church whats happening now. Always, one of keys to the mark two of them ubs upgrades hewlettpackard. Why is this important . Its a weak portfolio, but meg whitman has a lot of room to do things. Want that as an international play that maybe can withstand the selling. People are saying what the heck . Domestic Companies Going down. Talked about cable. Watch supervalu, domestic chain of supermarkets upgraded by Deutsche Bank with 13 target. Should the stock go down if we see turmoil in turkey . The answer i care more about em tire turkeys than turkey when it comes to svu. Kosher kosher turkeys. Got it. Dow and s p, gone flat for the year. They have not had a losing quarter since 2012. Now focused on funds that have money in these latin american countries. You get if you can get the dollar to have three days where it didnt go up youre going it regret you didnt buy it here. But got to get the three days im done see them yet. Maybe well get a little further along in the week and the euro will make it so we dont want to get on a plane. You want to get on a plane and do a shopping spree. I dont do that kind of no never, far be it from you to actually shop. Real estate as part of your purchasing. Id love to go to mexico now but mexico goes to 17 on the peso peso. Communicating that to my mexican agents, not ready to buy. Not yet to bring in the cramer money. When i do i know that pebla, the germans are building factories. A lot of the bmws made get down there, buy real estate flip to the japanese and germans. Need help on the spanish, i can translate. Can you do that . [ speaking spanish ] did you bid or just take the offer . Looking to buy. You know we talk a lot about the dollar obviously it has been stronger than its been in a decade but there was a period of time it was much stronger than it is now. Great point weep no in the 90s there were tremendous rallies in the stock market. Look back at 20 years or more of the dollar living just fine with it. Larry kudlow, king dollar king dollar. The problem with king dollar you have to get adjusted and you cant have flows of funds be so quick. But tonight i have mark fields on ceo of ford. Yes. For think about it theyve got Big International business, can they compete against the countries devaluing their currency in front of our eyes . Mark benioff will tell you growth trumps all. Having a fantastic quarter in europe. The notion of social mobile cloud connectivity how to trump even the turmoil of the strong dollar. Whats this mystery guest action . Regina my executive producer will not tell me. She wont tell you. She will not tell me. Special shout out to my sister nan, my nephew is here. I guess ill see him on the 20th anniversary. Stays in the shadows. Brilliant. Called the bottom november 2011 for the euro. Lets see what he has to say in 2021, thats when ill see him again. Congratulations. Thank you for making the anniversary so special. See you. Its a good choked up. Mad money tonight, 6 00 p. M. More on the selloff that were seeing this morning. Dows down almost 200. Wholesale trade as well on the other side of this break. B ng art of it. everyone cheers glad you made it buddy. Thanks for inviting me. Thanks again my friends. For everything for all your help. Through all lifes milestones our trusted advisors are with you every step of the way. Congratulations thanks for helping me plan for my retirement. You should Come Celebrate with us. Id be honored. Plan for your goals with advisors you know and trust. So you can celebrate today and feel confident about tomorrow. Chase. So you can. Good tuesday morning. Welcome back to squawk on the street im Carl Quintanilla with sara eisen, simon hobbs, david faber. A selloff on our hands dows down almost 200. Both the dow and s p have gone flat for 2015. Oil not helping either kuwait opec governor does not expect the cartel to change production at their june meeting. Our road map for the next hour. Clearly, helping you navigate the big selloff. Find out what you should be doing with your money today. Apple releasing all sorts of new details about the watch. Plus a new line of mac books. Morgan stanleys vice chairman of Investment Banking join us live she will give us her take on the Market Action tonight as well as what she thinks about m a in 2015. First up Rick Santelli at the cme in chicago. Breaking news this time. Its wholesale trade. Good morning, rick. Absolutely. January wholesale trade, looking at whole sale inventories and wholesale sales, these are important to handicap gdp. Up point 3. No revision to december. Sales side disappointing news. We expected a down number maybe down a half percent, down. 6 we ended up with count to 3. 1. Last month doubled down from. 4 to down. 9. On the sales side now, this represents the third month of negative month over month change. You have to go all the way back to the end of 08, beginning of 09 to find a string like that. The string then was five negatives in a row. Pay attention to this. We see yields moving down on the weaker data especially the 30year bond below 2. 75 where it settled last year. With the dow down 196, the big worry this morning for investors, the strong dollar. Getting stronger by the minute here. The euro weakening to levels we havent seen since fall 2003. The dollar reallys the story of the last year. But this got supercharged in the last 24 hours. Better u. S. Jobs report on friday fueling the idea that the fed will raise Interest Rates, this year at the exact same time the European Central bank does the opposite begins to buy bonds, flooding the economy with euros. Next stop parity one euro to one dollar could happen in a matter of months. The dollars shooting up versus pretty much every other major currency. Brazil, which jim and david and carl were talking about, the mexican peso at a record level. Basically every currency getting hammered. Our currency in the u. S. Is going straight up. Beyond the worry about corporate profits, and we are feeling it Proctor Gamble cocacola, microsoft, mcdonalds, hurting overseas. Also the hit to funds. Cramer was talking about this called it wreckage on portfolios that have been poring into the countries especially emerging markets and its the destabilizing impact of not only the size of the dollar move but the superfast speed of the dollar surge. Thats whats unsettling broader marks today. You have the currency of the world, reserve currency most wildly held currency a steep, aggressive change in value, could be damaging. Some of the concerns we foe about, some of them, not so much. Thats the big worry. The big question of course for the world, whether the United States will be a sufficient engine of economic recovery to pull everybody else out when faltering. As the dollar continues to rise Global Markets are stumbling. Major european indices down more than 1 on day two of the trillion euro sovereign buying from the European Central bank. Oil, priced in dollars, down for the third day in the last four sessions. Energy stocks taking a big hit as crude falls below 50 a barrel. Joining us now rbc capital markets, and scott wren of wells fargo. Good morning. Good morning. Jordan when the fed, when janet yellen very explicitly warned four months ago of rising mark volatility dramaticic market movements, is this what she meant . How far does it go . No i dont think this is it yet. Talk about the strong dollar youre talk about a weaker situation in other currencies. Overnight, you have the dutch finance minister say the negotiations over the laugh two weeks have been a complete waste of time. You had the irish agriculture minister say, whatever you do for greece youre going to do for ireland. A strong dollar may not be attractive to yellen and the fed but the alternate of a weaker dollar and a stronger euro is more challenging. When you layer that with emerging markets which were a problem before yellen even spoke, and now since the jobs report, its only getting more aggressive. Crosswinds are starting to kick up. The fundamental phenomenon is that this economies Strong Enough to deal with moderately higher Interest Rates from the fed. Thats the big picture, isnt it . That is the big picture, simon. I really think that if the fed funds rate was at a percent and a half or even 2 i mean our Economic Situation here in the u. S. , which is modest dependable growth, would be exactly the same. The problem is getting it from here to there, janet yellen is exactly right, you know. Whenever the fed goes from easy money to tighter, theres volatility. Were going to see a lot of 20 30point swings in the s p on a daytoday basis. Weve been trying to prep our clients for that for a long time. I thought 2014 would be more volatile than it was. 2015, were going to see more volatility before the end. Four months ago, scott, forgive for overlapping, janet yellen said when she was warning about volatility, we will strive to transparently communicate Monetary Policy strategy to minimize the likelihood of surprises. Does that mean its no coincidence theres nobody coming out from the fed to say, dont worry about it maybe scott well hang fire on the Interest Rates . I think the fed always they always think they can do a smoother job of raising Interest Rates than what actually happens. You know they need to be coming out which i think they will do theyre going to come out and pretty much tell us three or four months in advance when theyre going to hike. The problem is simon, not when the first hike occurs. June or september, thats splitting hairs. Its the magnitude and speed and i think the fed is going to go very, very slowly. They know they have to be careful. Theyre going to be careful. But the markets so going to be volatile. But thats buying opportunities. So, i mean given that backdrop, jordan we have not seen a 10 correction from the highs on stocks since back if 2011 during the depths of the european debt crisis. Is this normal even though it could be unpleasant to see these 200point swings lower in the dow,s this something thats part of the process as we get to higher Interest Rates . In percentage terms were at higher levels 200 points isnt what it used to be. To your point, volatility, within we get into april may, and june and you have a uk election this year the Party Getting more much more popular in spain not only the uk election the greece negotiations iranian negotiations with the great et of respect everybody do i need to worry in this country if im being told to buy large cap stocks about whats happening in the elections, really . Absolutely you do. Look at the global picture, the a huge mistake to assume you can only focus it has not reached the boiling point, no concern to the United States but enough things out from the emerging markets to uk through europe of course to oil, that you cannot be immune to whats happening internationally. The volatility were seeing now is a small foreshadowing of the volatility that will only pick up as we get into may and june of this year. The greatest mistake Retail Investors make they sell as the markets going down correct. Absolutely. What should you do now . What you have to do is stay with the upside. U. S. Is still very good place to be but be aware of the unt national situation, what yellen has warned about, what they have put on the docket, this is not just an american story there are enough issues that any Retail Investor must have a global view. Scott with the dollar move picking up speed here throughout the morning, if im janet yellen, im not advocating for policy, why not hold off on an Interest Rate hike because of the adjustment in the dollar and theyre not meeting their inflation target to begin with. You know as well as anybody else, you mentioned it earlier, when currencies move fast thats the problem. I definitely think the feds taking that into consideration. But also the market always overestimates the effect of the currency moves and i think that the head wind in reality will be a lot less than what the markets anticipating from a stronger dollar. Scott jordan thank you for your time. Thanks guys. For more on the selloff, over to dominic chu with a market flash. This idea that with the s p 500 and the Dow Jones Industrial average down by a percent today, we have erased all of our gains for 2015. So we are again back to hitting the reset button for the market. Back to zero. Again, all gains erased on the s p 500 as well as the dow. Also watching a couple other things. 50day moving average, shorter term batting average for the market, if you will guys finding maybe some support. See if that holds throughout the course of the day. One sector just one, holding on to ever so slight of a gain in the s p and thats of course the utility stocks. Back over to you. Thank you very much. Apple, of course unveiling pricing and details on the features of the apple watch with a new line of mac books. Should it change the way you look at the stock . Which is still hanging on to 13 gain for the year. More when squawk on the street returns. [ male announcer ] your love for trading never stops. So if you get a trade idea about, say organic food stocks schwab can help. With a trading specialist just a tap away. Whats on your mind lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. With the dow down over 200 points shares of apple down after the apple watch relawn of. The company introducing pricing for the watch that started at 350 goes up to 10,000, even 17,000 for the rose gold version. But does the world really want smartwatchs . Is the question that analysts are trying to answer. Andy hargraves, Senior Research analyst. I thought bob pisani did a nice job showing that estimates were all over the map for demand of the smartwatch. Anything in yesterdays presentation that led you to some answer to that question . No. I wish i had the answer. You know theres battling forces in this thing thats what makes it so interesting. Within hand you say, well not that much incremental functionality and i dont know if i need it on the other hand. Youve got the weight of apples distribution capacity manufacturing capacity and marketing ability. And theres no doubt its the best selling smartwatch ever i just dont know what that means. One thing point to the health and medical research either in the watch or the new set of apps from apple. Will that do it for you . That is going to be the musthave function for the apple watch or some of the other products . Did you get enough clarity on that yesterday . Yeah the keystone if you will and the medical research functionality was interesting and new. To me though thats largely Data Collection. And theres a lot of devices out there that can do Data Collection. Some of them are probably better for fitness and Health Purposes than the watch will be. So i think its still sort of unclear whether or not we want the full robustness of an apple watch or weather purposebuilt Data Collection like youd get from a fitbit or something small somewhere lighter and have longer battery life. Some people were speculating that yesterdays presentation was maybe a shadow of what they had hoped to say because of things they could not get done with the fda. You think thats true . Well i havent heard that. Could be. I suppose. Im sure moved slower than apple would like them to. It was a surprise not to see new Third Party Apps to me. I certainly expected normally one would get things like this youll see them colaunch with specific app developers. I was definitely surprised we didnt see that in maybe the fdas part of it i dont know. The pricing, jpmorgan suggesting that the Profit Margins are 39 to 44 , which would be among the highest in the product line. Yeah. What do you make of that . What does that say about the future . I think the margins initially could be lower than that only because, right, its obviously they put a ton of money into this and custom tooling, Custom Manufacturing line all of that stuff, and some of that will come out of the gross margin. Over time yeah i think it should be a high margin product. Theres not a lot of bomb to it. You look at the comps they tend to get margins like that. Its a reasonable number over time. But initially i think it might be a little bit lower than that. I walked into work one of the security guards here said 10,000 for an apple watch . And i said they have price points at 350 hes like really . I saw the headline for 10,000, because that grabbed so many headlines it might keep people from inquiring about it even on the margin . Yeah. You should have told him youre getting two, one for each wrist. Im going for the 17,000 rose gold. Just kidding. With four different bands. I dont think so. I mean thats the headline grabber, just because its so expensive. But people will figure out quickly and apple will help them figure out not all costs that much and you can get into the watch for 350. You sound underwhelmed. Anything in the presentation . There were new announcements, the sleek new mac book the exclusive deal with hbo now. Anything that excited you or could move the needle when it comes to revenues. We were focuses on the watch because thats the new product and the thing that can drive the incremental leg of growth. Mac book incredible. I dont know how to put that into context, though of the watch because its a continuation of a product line and i dont think materially changes things. Whats the upshot for the stock, quickly, while we have you. For the stock, thats now trading at 125. 50 how much is priced in. A lot, i think, you know over under on the watch probably 20 Million Units and got to have the phone be at least flat as we look forward to the next year. So those are probably reasonable bars to send but theyres certainly risk on both sides. Thank you, morning after the apple event. Andy hargraves. More on the selloff with the dow down 233 points. Also Morgan Stanleys vice chair of Investment Banking joining us live to talk about the Market Action and her outlook for m a for the rest of the year. Squawk on the street will be right back. At ally bank no branches equals great rates. Its a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. Welcome back to squawk on the street. Watching shares of Electronic Arts, down by 3 the stock is falling sharply after the open after down graded to a whole from a buy citing krerns about valuation, Electronic Arts down 3 . Thats on track for its worst percentage drop since october. Back over to you. Thanks very much. Morgan stanley holding its executive womens conference in new york city. Mary thompson is there with the vice claire of Investment Banking at Morgan Stanley. Good morning, mary. Carl as you mentioned, here with suze wong vice chairman of Investment Banking. Thanks for joining us today. Thank you. Youre one of the founders of the conference. Why did you think it was so important solely for female clients. Its a unique event. Its a signature event for Morgan Stanley and its a blend of content, which we take seriously, but also networking. And we have a lot of repeat attendees, they look coming back and seeing each other. I think its a special event. And youve had great success. This is i think the highest attendance youve had in the decade or so youve been having this event. It is. Every year we have more attendees. Weve had to go to a waiting list. I think its partly there are more senior women in management and as there are more senior women, we have more people we want here. Its a sign of the times, i think. A good sign. Lets talk go the markets and your business m a because were seeing choppiness in the marks right now. And while m as gotten off to a good start in 2015 do you think this will give your clients a little bit of pause that we see up and down movement in the markets. I dont think so. I think its a robust year for m a. Weve announced rescale nxp, we work for free scale and abbvie. Big deals are up. What im seeing in the boardroom is that boards are proactive thinking about what that dream deal is. Despite choppiness theres that choppiness, people are being strategic and proactive in the boardroom. Tell us how theyre dealing with one of the things youll talk about here at the conference, that being the activist investor. Theyve had a good start on cnbc. Com, we did a story how the funds have been abelong the best performers so far this year still early. But whats the response in boardroom . How are your clients approaching the activists . Go back to the word proactive again. I think people are thinking hard, whether in he have an activist or not, thinking hard from the outside in what would somebody say about our strategy and performance trying to think critically what theyre doing. I think its been occasion for boards to look at their own thinking from a different perspective, its been helpful. There was some concern thinking about gm with the buyback and some worried act in innistin avivists have gotten to much into theingeing the engineering. What do clients do to balance that. Boards have their eye on the ball. Thinking about dream deals. They ask the questions they think an activist might ask but i think they think about longterm value. Talk about one area your specialty, that being health care. Its been very very active. Are we getting to the point where the deals are becoming too pricey has it reached that point yet . I really think its individual deals. So i think for a lot of the pricier deals theres a lot of growth. So its commensurate with price theyre paying. I think it will be a robust area of activity. We have a stronger dollar here. How that is playing into the activity were seeing . Cross border was up 72 last year over the year before so its obviously a huge area of activity. And were seeing it continue this year. I think that obviously there are theres volatile in things like if x but i think youre going to see cross border continue to be robust. You foe a lot of people i want to ask cow one last question about europe waiting for that figure and there will be opportunity but was we havent seen activity pick up why not . It actually has picked up. Overall, global activity is strong, but in fact activity relating to european targets is up quite a bit this year year to date. Thank you so much for joining us. Thank you. Weve been speaking with susie wong at Morgan Stanley. Back to you. Ahead on the program, what is it like to work with apple on one of the new apps . Joined live by a university of pennsylvania professor thats using apples new Research Tool for the study of Breast Cancer. She was in apples presentation yesterday and attended the event. Well be back with her after this. Mfs, we believe in the power of active management. Every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. Which leads to better decisions for our clients. Its a uniquely collaborative approach you wont find anywhere else. Put our global active management expertise to work for you. Mfs. There is no expertise without collaboration. 80 of the poor in africa are rural farmers. 96 of them are doing rainfed agriculture. Theyre all competing with each other; theyre all making very low margins making enough to survive but not enough to get out of poverty. So kickstart designs low cost irrigation pumps enabling them to grow high value crops throughout the year so you can make a lot of money. Its all very well to have a whole lot of small innovations but unless we can scale it up enough to where we are talking about millions of farmers, were not going to solve their biggest challenge. This is precisely where the kind of finance that citi is giving us is enabling us to scale up on a much more rapid pace. When we talk to the farmers and ask them whats the most important thing. First of all they say we can feed our families. Secondly, we can send our children to school. Its really that first step that allows them to get out of poverty and most importantly have money left over to plan for the future they want. Now with the xfinity tv go app, you can watch live tv anytime. Its never been easier with so Many Networks all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Good morning. Here is your cnbc news update at this hour. A bit later today, president obama will tell students at georgia tech how he wants to make the process of repaying Student Loans easier to understand and manage. More than 70 of u. S. Students who graduate with a bachelors degree leave with an average debt of 28,400. Ride hailing app uber committing to hiring 1 million female drivers by the year 2020. The companys been unscrutiny following a handful of assaults on passengers. Passengers do not have the ability to request female drivers. The secret service will be testing drones in the middle of the night over parts of washington. The a. P. Says the agencys testing the drones for Law Enforcement and protection. The secret service says the details are classifies. And bugger king is dropping soft drinks from kids meals. Made the change to offer options that match lifestyle needs. Will offer fatfree milk apple juice or chocolate milk. Back to you guys. Thanks very much sue. Welcome back to squawk on the street. Apple moving into health care with a launch of their research kit, taking research out of the lab and into the world. Share the journey one of the unique apps focuses on Breast Cancer patients. Is this a game change for Health Research . Joining us catherine schmitts. Welcome. Thank you. Good to be with you. A lot of promise in this tool. Can you talk about the app and what it tracks for . Share the journey is the brainchild of a group of researchers, including dr. Dr. Gantz, dr. Partridge at harvard and sage bionetworks and myself. I have done other work on developing apps in the space of Breast Cancer research. And what were really doing and what is really a game changer is our ability to recruit on the order of thousands and tens of thousands where in the past were been only able to recruit on the order of tens and hundreds and maybe a thousand. Right. This is it tracks issues that are related to Breast Cancer treatment, fatigue cognitive difficulties, sleep disturbance, mood changes. How does it work . Really important point, its not so much about what we have chosen to track in this particular app at this time. Its about the platform. And the fact that researchers will be able to collaborate with sage bionetworks and research kit to be able to build whatever they want to track in Breast Cancer survivors. That is the promise and that is whats really exciting. We have chosen a few things that are common complaints among Breast Cancer survivors for us to bill the platform to show that it works and to be able to do the early work to show other researchers the power of this kind of platform. In the meantime professor, just to really underline the point that youre making for people watching you now, were not at a stage where you can monitor ekg, for example, blood alcohol levels or Blood Pressure, which might point to an instrument that the fda would certify in some way. This is more about the general feeling of a very large control group amongst that army of Breast Cancer supporters thats what youre heading for . Thats absolutely correct. That said we have the power of being able to have visuals so we have the potential to take pictures with an iphone we have with the advent of the apple watch we can get heart rate data and we certainly can get movement. And we can get sound. So when we put all of those things together, you know i just need to say that you know for example, in the parkingsons app which i didnt work on but is another project in this space, they have over 2000 Research Participants in a very short time frame and theyre getting sound and they are Getting Movement from those people and they are Getting Research quality data very quickly from a huge number of patients. To that point katharine, we are going to generate through biometrics a volume of data points that probably we have never as human kind generated before, because its in realtime and there are so many data points collects perhaps every millisecond. How on earth do you control that information, on the one hand and how do you analyze it on the other. This is not our first rodeo. Weve done this. So, people who have been working in the field of acceleromtry in research have been dealing with massive data sets for decades. We already have the software. We already have engineers who know how to parse out and understand large volumes of data. That is not going to be a problem. A lot of people are hoping down the road this does monitor your Blood Pressure right, your gloe glucose, stress level. Do you think thats possible . How far away is that . I dont think thats very far away but i think it would be foolish of me to predict how things will go in an effort to try to get fda approval. Indeed. Thats the billion dollar question, i think you could argue. Its going to be interesting to watch. Our thanks to you. Youre very welcome. Markets are in selloff mode today with the s p now down about 1. 2 . The dow is down about 233 points lets bring in ben willis senior floor broker with Princeton Securities Group for more color on whats driving the selloff. Jean Claude Trichet used to use the word brutal talking about currency moves getting extreme and painful. Is that the primary concern when it comes to the dollar. Absolutely. Amidst of the currency war that started several years ago and seeing fallout continue. The United States trying to figure out how to defend a rising dollar and the euro i believe will break below parity. 20002002 the euro trading around 80 cents. Shouldnt comes a surprise as they drive their economy versus ours. It helps them. They have a bigger growth problem than we do. What is the concern for u. S. Stock Market Investors at this point from the move . The biggest impact will be on the s p 500 stocks rather than say, the russell 2000. Those that have the exposure to earnings in the eurozone. Basically every stock in the s p 500 earnings more than 50 generated in another currency other than the dollar. With that said thats part of the reason you see the selloff that takes momentum that brings us to the more important with lack of fundamental data other than the currency move now youre talking about the technical numbers like mark newton from grey wolf will put out as you break levels the market starts to pick up its own momentum because of lack of anything else driving it. Utilities the only group in the green and thats on low yields. Pfizerness the only dow stock in the green now. At the same time ben there are as set managers in europe who are looking at record low yields looking at a euro declining and they will be making decisions over the next few weeks and months about where they put their wealth that their guardians of. Some like Deutsche Bank talk of a ur re euro glut and a vast amount of money will leave the eurozone. They put a note out talking about 4 trillion euros reassigns outside the eurozone. Isnt that the benefit of these marks. Absolutely is to the benefit. But the greatest benefactor will be the u. S. Treasuries with yield on a 10year above 2 the real story in the last month, i think that will be part of the drive of the euro coming out of negative Interest Rates, having to find a place thats considers safe halven. What is the response of the Federal Reserve . If the aim of the fed is to slow the u. S. Economy, why its raising Interest Rates, but the yield cant rise because of that influx of money, does the fed have to be more aggressive . Its the bestcase scenario for the fed if the Natural Marketplace is holding down the yield by foreign buying rather than just a simple quarter point adjustment on our own side we dont have to worry about being choked off too much and therefore the dollar continue to drive against that earnings in my opinion. So where do you go right now . Whats the safe haven du jour . Utilities . I think utilities probably are a place because of the fact thefb been driven by fear is not the place. You want to continue to increase exposure. If you want a specific zone i look at regional banks. I he think Master Limited partnerships, they were crushes going into the selloff of the oil complex. Theres a great deal of trading going on in the Energy Sector right now, not just for traders like me but for Institutional Investors buying bond issues buying second dear floats or companies in lock tock and barrel. So theres i dont think you want to lose face of or direction of a market that continues to grow in light of whats transpiring in the United States of america when you have an opportunity to buy them on sale as we are today. Seeing Wti Crude Oil slip below 50. That strength in the dollar is translating to Lower Oil Prices. Im in the belief that Lower Oil Prices are one of the great stimulus packages ever created. While its having a negative impact on the oil complex the rest of the world will benefit, not the least of which japan and china. Thank you for joining us. With the dow down almost 250 points. Credit suisse named a new ceo, the ceo of the uk insurer from prudential. He was on Worldwide Exchange on cnbc and spoke about the move. Youve done a good job as ceo you have to take a company, leave it in a better condition that you found it ive been able to do that. And you have to leave it with no cloud and you have to leave it theres a bit of i think probably a wobble or unsuccession. Im confident we have good succession in place. Its a formality. The chairman made a statement this morning. Will be announced shortly. Widely respected for the time that he spent at the pru. A prop nents minent he was a government minister in his home state of ivory coast and has french citizenship. Whether his appointment marks a move or emphasis on Wealth Management and also of course that perpetual question whether there needs to be some sort of capital raised at credit suisse. Brady dugan has said for a long time they didnt need one, if hes at the helm or his successor at the helm does that change. Mark gurman joins squawk alley. Only 59 plan to buy an apple watch. Only 59 . I would have thought thats quite high. What does it say about the product and future Revenue Streams for apple . All that and more on squawk alley. Help join a continent with nearly 3 million rugged square miles with a single broadband connection. When emerson takes up the challenge its never been done before simply becomes consider it solved. Emerson. An hour and a quarter in trade a rough open dow down 235 points. But the utility sector actually getting some respite today. Lets get more from dom chu. If you look at it one sliver of green in an otherwise sea of red for the s p, utility stocks clear outperformer today. The sector is a defensive play notice mark. Of course known for heavy dividend yields. Todays standouts, ever Source Energy xcel energy entergy, excel lon. All up by around you can see there 1 to 2 today. Every single stock in the sector is green on the day. There are 30 of them right now in the index and i think all of them are 29 of them in the green. Back everybody to you. Thanks, dom. And on that note treasury yields lower across the board. Out to chicago to the cme group. Rick santelli with the santelli exchange. Good morning, rick. Good morning, sara. For viewers, plight know yra harris, one of my favorite guests. Fired up today. Not me. I went to yoga. Logistics wise i didnt agree with most of the qe programs. From the standpoint of logistics the fed did it right, transparent, you knew what the issues they were buying with regard to the numbers, they made itty it easy to see on Balance Sheet, reverse auction information, like a regular auctioning contrast that with the ecb. Its broken the ecb has a problem, they dont know whose currency theyre setting rates for. Youre setting rates for germany youre going to have 4 gdp growth possibly in germany this year with zero Interest Rates. Your eurozone 1. 5 zblrs if you run that with zero interest costs, your budget theyre going into supreme surplus. Theres not a german debt that needs to be sole on the market. You cant set policy for 19 country because that all in different places. My xlnts years ago we come up with together if the eurozone isnt going to stay in its current form the only form i see that will work will be if who leaves . Germany. Merkel will be in dangerous political water. Why . Interest rates in germany are going to be negative because growth is going to be strong. Its the beggar thy neighbor with currency wars. Listen, do you think the euro could go to parity quick. For sure. What do you think will happen to bund yields . Of course they will go down further. Probably zero. Parity and zero a high possibility. Punishing savers in germany. Ben bernanke and yellen punishings savers said stop being smallminds, everybody else is benefiting. Shut up and absorb. Its going to be very tough to tell that to the burgers of bavaria so to speak. Feds balance shes, talk about the trillion dollars on the Balance Sheet everybody maybe what gets lost three times that amount in china. Talk china. Well, china, you know its an enigma because you have to understand what theyre trying to do and its a difficult situation. We can make it simple. Most likely advertise the new Group Getting together to form new policy that theyre aiming for 7 . Boy, the whisper numbers, significantly less. Can the u. S. Maintain a nice glide path towards 3 growth if the rest of the world is having a problem and germanys distorting the Growth Numbers of the eurozone. No. Ive been trading currencies for 37 years and watched the dynamics the worlds far different place. When they use too talk about United States could be the locate comoatsive of the wore. Japan got through their 20 years of no growth because there was growth in the rest of the world. Theres not enough growth in the rest of the world. The United States is not providing enough. This is a dangerous situation. And you are, i dont care what anybody says, i dont care what jack lew says this is a currency war. It was started by the fed. Not with qe1 but qe2 and 3. Way too much. They had a hammer and everything was a nail and thats the way they look at. Now you cant extract yourself. As simon and garfunkel said it best, all my words come back to me in shades of mediocrity and this is where were at. Everything the fed has done and everything they thought they werent responsible for is coming back to them in spades through the action of the dollar. Will we see 5000 retested soon. Thats beyond ply pay level. Its ironic were there one day and look what happened. Back to you. Cant get over the simon and garfunkel reference, that was great. Thank you, guys. The markets down 239. The worst day for the nasdaq since january 27th. One month lows on the dow and the s p which have lost their gains for the year. When we come back look at the individual drivers in a moment. Now with the xfinity tv go app, you can watch live tv anytime. Its never been easier with so Many Networks all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Nasdaq parks deep in the red. Nasdaq down it late november highs. Oil prices one of the things driving the selloff. Jackie deangelis is at the nymex with more on that. Good morning to you, carl. Thats right. The selling pressure is intensifying on both sides of the atlantic when it comes to oil prices. Again, the culprit today is the strong dollar, dollar index over 98. Traders are talking about 2009 when we saw Oil Prices Drop from more than 140 to around the 30s. The strong dollar was a culprit then as well. This is something theyve been talking about for some time that we can see the dollar index go to 100 or perhaps past that and that will be a very bearish factor for crude. When you take that into account with some of the production numbers were getting out from the eia that the u. S. Is upping production, so is russia so is mexico, this is not a good supply demand story for oil either. This could potentially be the perfect storm that gets out of this bouncing around range weve been sort of hanging around 50 there is for some time. Traders saying we needed the catalyst to take us out either way. This could be it potentially to the downside. Theyre watching these prices closely and we will get another inventory report from the department of energy as well more than 4 million barrel build expected last week that could send prices down too. This is something to watch as its impacting the equity market today as well. The Financial Times put it this industry here fighting with one hand tied behind its back because its not able to export the oil and the huge differential. Look at the market overall the exporter down the most goodyear, ford amazon priceline, bob peseny has more. We are just off the lows of the day, essentially take a look at the s p 500. This has not been a great start to march. Remember we hit our highs for the year at the end of february and match has been pretty much straight down. Were just off of the lows for date. I said at the open what you want to do on a day like today is watch some of the high beta names. When you get volatility they move the post. High beta like new tech names, groupon, for example, twitter, work day, some of the names here. Theyre the ones down the most. Thats true of other names that are sort of high beta Cyber Security space, for example, take a look at your fireeyes Palo Alto Networks all those are down a little bit more than the rest of the market. Interest rate sensitive stocks not doing too much. Reits, utilities, either side of positive or negatives. U. S. Yields had been rising through february generally a negative for alternative yields alternative instruments lick ss like reits and utilities. A rise in bond prices declined today is really slightly new trend, so i dont see a big trend going on here. Banks, though, when you get lower rates as were seeing today banks dont behave pretty well. Flatter yield curve not good for them. Some of the big names, not just money center buying citigroup but the super regionals like huntington zions and m and t below the market. Finally the dollar rally has been dollar rally as well as higher rates recently have been playing halve voj with emerging markets. I noticed the eem a basket of emerging markets Stocks Exchange traded fund widely traineded out there for emerging markets is down 8 days in a row. That is a definite trend. When you get higher rates as weve seen recently and the dollar strong that knocks around the emerging markets. You get a pullback in liquidity in those areas. Back to you. Thanks for rounding out all the movers. We will stay on the markets here and send it to jon fortt with a look at whats coming up next on squawk alley. Hey, john. Were going to continue to follow the markets as well with the dow more than 200, the s p off 1 but we will talk about the apple watch now that weve digested the announcement from yesterday. Is it any good . Mark german from nine to five mac is going to join us and a report that the crycia tries to crack apples security and messaging. That and more on squawk alley. Theres nothing stopping you and a lot helping you. Technology thats with you always. This is our promise. 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We are looking at 1 declines across the board for the stock Market Indices with the dow down 212 points s p down a percent, the nasdaq falling 1. 3 . The dollar is important every day, today its really spooking investors. The strength and magnitude of the strength particularly against the euro causing all sorts of ripple effects hurting crude oil prices Commodity Prices in general. Flip side least affected health care, Consumer Staples and utilities down 7 or 8 so far this year. With that lets send it over to squawk alley. Thank you. Good morning. It is 8 00 a. M. At apple headquarters in california 11 00 a. M. On wall street squawk alley is live. Cup good tuesday morning. Joining us jon fortt, kayla tausche, were all back together like a family here at post nine. Kayla, of course, the apple event yesterday in San Francisco, jon in barcelona at the mobile world congress. A lot to talk about in tech but markets are the story of the morning. Dow down 218, lost gains for 2015 on the dow and nasdaq on the s p and the nasdaqs worst day, lowest level since january 27th. Joining us is jeff clinetop. Good morning to you. Good to be