Good morning. Welcome to Worldwide Exchange on cnbc. Its new music friday. Im sara eisen. Im dominic chu sitting in for wilfred frost. Hell be back on monday. A holiday shortened week of trading here in the u. S. , but no shortage of big news and buzz. Well talk about apple challenging federal authorities and hear why Company CofounderSteve Wozniak believes steve jobs would have done the same thing. Thats just one minute here. That cnbc interview getting a ton of buzz. First, lets get you up to speed on the Market Action this early friday morning. Holiday shortened trading week, but were looking at the best week for stocks since back in november. The best week of the year by far. The gains could continue after a selloff late yesterday. The Dow Jones Futures up 38. S p futures up five. Nasdaq futures up 12. Lets show you whats happening with oil prices, which have been a driver. Maybe not to the extend that tight correlation we saw earlier in the year. It was trying to break down. Then it went right back to trading with the markets all over again. Correct. So lets look at the oneweek chart for stocks. Theres oil right now down 1 on wti crude. Still holding above the 30 a barrel mark. Traders say thats important. Theres the oneweek chart of the s p 500. Look what happened this week. Dont let the lack of action this morning fool you. It was a strong week. 3 . Its not too bad for an s p 500 when you have Oil Prices Still under pressure the way theyve been. As you pointed out yesterday, a huge move higher in wti crude over the course of the past five or six trading sessions. The other factor thats been interesting to watch over the last few days in terms of the weekly action, and you saw this across the major averages as well, stocks that had been beaten down last year, think ibm, which saw its biggest move up yesterday since 2011, are getting bought. That suggests theres action with Value Investors coming in, looking for bargains. Its not universal. Its not happening for all the losers. Walmart a big laggard last year. Didnt get any help with its earnings report. Disappointing outlook there. So it is stock specific. The earnings stories are increasingly starting to matter. But theres also a hunt for value. The dumpster stocks are leading the way. We dont know if its going to be broad enough, but its worth watching. Caterpillar had a good week. That was another beaten down stock. The best performer in the s p so far this week is kinder morgan. And we get deere earnings today. Its going to be an indicator of that global macro economy. Speaking of the macro side of things, while you were sleeping, heres what happened in asian markets overnight. If you look at chinas central bank, they fixed a slightly softer midpoint for the yuan. In japan, the Reuters Survey showed the mood among japanese manufacturers remains largely subdued this month. Confidence is seen deteriorating over the next few months. The yen strengthened against the dollar, and that put pressure on big exporters. Think toyota, nissan, sony. Again, in an exportdriven economy, a stronger currency doesnt exactly help your cause. Heres how the major averages ended the day in asian trading. The hang seng down by about that of a percent. The shanghai composite mainly flat. The moves have been much smaller in china. And this week at least theyve gotten a handle on their currency, which scared everyone for the beginning of the year. The yuan actually surged this week, suggesting perhaps that theyve got it in control. Though its only been a week. China has made such a huge point over the past few years about being part of the global scene, having their currency be regular recognized as a bigger player. Stability to ones currency adds a lot of weight to that discussion. So you want to see whether or not china keeps that in play, whether that stability changes or not. Part of it is the outflows. Part of it is money has been rushing out of china. There was a lot of fear and questions, bigname investors betting against this currency that theyll not be able to manage it. This week things are a bit calmer. Absolutely. Thats the asian side of things. Lets check out whats happening with early european trading. If you look at whats happening in europe, a bit of a mixed picture. The dax in germany pretty much flat for the session. The cac in france up just about 0. 1 . The ftse 100, 0. 2 . The mib, same story. Were talking about very, very small moves so far in european trading. Which means theyre holding their gains for the week. The euro stocks had a 5 move up, best week since 2011. The dax, 5 , just about the same for the cac in france as well. European stocks showing signs theyre trying to even out. Things have turned this week. Well see if it can last. Now to todays trading agenda. Investors will wrap up with a key report on inflation in this country that could help shape expectations on whether the fed raises rates at all this year. January cpi, Consumer Prices, out at 8 30 eastern time. Cleveland fed president loretta mester, who is a voter on policy this year, will be speaking out about the economy this morning and monetary policy. As for earnings, dom mentioned deere is going to be an interesting one. With the decline in agriculture prices and commodities, its hurt farmers income. Therefore, theyre buying fewer tractors. Also look for vf corp. Retailers before the bell. Retail is going to be huge. 30 of Consumer Discretionary names have not reported yet. So were just into the tip of the iceberg. Lets get a traders perspective on the week that was and whether its safe to jump in now. Joining us now, steve grasso. Thank you for calling in this morning. We asked on twitter, is it safe to jump in . What does the action this week tell you . You know, i think you hit it on the head on a lot of Different Things on the top of the show. I think in order for the s p to be able to be bought at these levels, i think you have to have some stability in oil. Youre not going to get any stability with oil unless you get stability with china. A week does not make a trend. You guys started off saying it was a shortened holiday week. I think you have to get a lot of traders back in their seats come monday and see the way they react to the markets. But oil does not look constructive. I dont think that 30 range i mean, the new normal is the saying many people use in the markets. Oh, we lost steve. Live television. What he was trying to say is this idea weve been talking about this requester quite some time, a lot of traders want to see some kind of stability being brought to oil prices before they feel like theyre comfortable to jump in. Hes saying that hes not seeing a constructive bit of price action, the charts arent showing him oil is at least headed for a move higher, trend higher. Though we should not underplay what happened this week, which was key oil producers, opec and nonopec, came to the table. Taking some first steps. Talking about a freeze in output. Iran even offering some constructive ideas there. They didnt agree to the move, which is perhaps why these gains arent holding so strongly right now. But we are above 30 a barrel. Now, steve, i believe we have you back on the line after that Technical Glitch here. To just finish your point about what you were saying about oil. You dont see the price action for crude being constructive right now. So what would you need to see before you think we can get back into this kind of marketplace . Well, if you look at the headline with the saudis and russia starting to talk about a freeze on production, i dont think you need to freeze it, you need a cut. Were talking about 10 Million Barrels a day apiece. I dont think thats constructive. I do believe you need Global Growth here p. I dont think you see any sign of that. Thats the more important sign. But watch cat tractor. It seems to have bounced from the bottom. That was the canary in the coal mine. That was the stock that sold off about a year before china ran into some problems. When you see that stock make a substantive bottom, i think thats the i dont want to say all clear, but thats your signal that china is in recovery and ultimately the market will be as well. Caterpillar stock up almost 5 for the week. Steve, thanks. Watching cat, watching oil. We want to hear from you. We asked on twitter today, and facebook, since were heading for the best week since last november for stocks, have we seen a nearterm bottom . I wish i knew. Its hard to know whether youre watching oil, watching china. Concerns are still out there, but they appear a little better. The s p did close above 1900 for a second day in a row yesterday, even with a little decline. Give us your feedback. Answer our poll. Well bring you results later in the show. Definitely weigh in. Now, this time its a huge story still. Apple versus the u. S. Government. Everyone is weighing in on this polarizing debate of whether or not the iphone maker should help to unlock the San Bernardino shooters phone. Landon dowdy joins us with the latest developments. There have been headlines fast and furious, landon. Thats exactly right. Good morning. Its a big debate. Apple is expected to invoke protections of free speech in the encryption court battle. As of last night, the tech firm was given an extra three days to respond after being ordered by a federal court to help the fbi unlock that iphone. Heres apples argument. Ceo tim cook warns this is a, quote, dangerous request because it would break encryption protections. Hes not alone. The tech giants cofounder Steve Wozniak appearing on cnbc yesterday. He supports cooks stance, adding that the late ceo steve jobs would have done the same. Take a listen. I dont think that the phone should have back doors. I believe that apples Brand Recognition and value is largely based on an item called trust. You believe youre buying a phone with encryption, which shouldnt have hidden back doors. Fellow Tech Companies rallying behind cook, like the ceos of google, whatsapp, and twitter. A cybersecurity analyst telling me if trust is put into question, people could be hesitant to buy iphones. We asked you on twitter how you feel. 63 of you said apple should comply and unlock the iphone. But its kind of a loselose situation here for apple. Not giving in makes them seem unamerican. Giving in, they face blowback from consumers about personal security issues. This is such a complex issue. And everyone has an opinion. And its making for strange bedfello bedfellows. Were going to talk more about that in the next half hour, about just whos siding with who here. Its not just about tech versus the government. Even within those industries, theres a division. Nonpartisan issue for the first time in a long time. Landon, thank you very much. Our mustread stories are all about this. In other Corporate News this morning, Applied Materials posted better than expected quarterly results, offered upbeat guidance. Shares rising on that news. Nordstrom under pressure. The retailers profit falling short of estimates. Its fullyear outlook weak. Nordstrom forced to offer big discounts to clear excess inventory from the holiday season. Shares got slammed in the after hours, down 8 on that news. Shares of boston beer also under pressure. The maker of sam adams offering a down beat view of coming quarters after reporting declining revenue. What would you say, guidance is sort of eh . Overall for the season, yes. As you talk about the idea these consumer stocks are such a huge deal because it tells you how the economy is doing because thats where people spend their money. A key for sure. Some other stocks to watch here, novartis has received breakthrough therapy designation for its fda investigational treatment for acute myeloid leukemia. Shares still down by about 15 year to date. The Justice Department has asked United Airlines for documents and oral testimony related to its contract to carry mail for the u. S. Postal service. United says it believes the probe is industry wide. The company also says it plans to buy back about 1. 5 billion in stock this quarter. More than some analysts had previously thought. Then were watching whats happening with true car as well. The Fourth Quarter results came in. Revenue outlook for the First Quarter and 2016 missed analysts forecasts. The car shopping cite attributing that to mounting costs. Again, data sharing still part of the story. Thats an ugly chart. When we come back, european leaders holding allnight talks on britains membership in the eu. A live report next. But first a trio of business birthdays to celebrate today. First, former sony chairman and ceo howard stringer, 75 years old. Happy birthday. Hes now a nonexecutive director at the bbc. Also, nfl commissioner roger goodell, 57 years old. A budding young media mogul named Andrew Ross Sorkin turns 39. You may know him as the founder and editor of deal book, the awe to be of too big to fail, and of course coanchor of our own cnbcs squawk box. He does a lot. He does a lot for only being 39 years old. Happy birthday, andrew. What have i done with my life . Happy birthday to them all. Well be back after the break. You can fly across welcome town in minutes16, or across the globe in under an hour. Whole communities are living on mars and solar satellites provide earth with unlimited clean power. In less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. And if you thought that was amazing, you just wait. No, youre not yogonna watch it tch it we cant let you download on the goooooo youll just have to miss it yeah, youll just have to miss it we cant let you download. Uh, no thanks. I have x1 from xfinity so. Dont fall for directv. Xfinity lets you download your shows from anywhere. I used to like that song. Welcome back to Worldwide Exchange. Were monitoring developments out of brussels this morning, where european leaders are holding overnight talks on britains membership in the group. Julia chatterley joins us live with the latest. How worried are the leaders about a potential brexit . Reporter i think theres always a concern here, sara, but at the same time, theyre committed to reaching a deal that at least David Cameron can go back to his u. K. Voters with and say, this is how the relationship is going to change and hopefully this is how its going to improve. I think that was demonstrated in the fact, as you said, marathon talks finishing in the early hours of this morning. David cameron, the u. K. Prime minister, in fact, didnt leave until 5 30 this morning, and hes just gone back in there now, saying, look, im doing all i can here. Hes making a real show, i think, of putting up a fight hire to get the best terms he can. What hes fighting for here ultimately is to reduce the amount of welfare payments they make to eu workers operating in the u. K. He also wants to restrict the cash that they pay to the children living in other countries. So its a real topical issue. Whats complicated the debate is other countries like germany, like sweden, who are also struggling with this, are saying, hang on a second, we want to get better terms too. Thats adding. I think what youve always got to remember here in brussels is we like theater. We like to have a debate. We like to fallout. Then we always reach a deal. I dont think this is going to be any different. It may just take a while. The real battle for David Cameron, the u. K. Prime minister, is when he goes back to the u. K. , tries to hold this referendum, and of course the polls are very, very tight between those that want to stay and those that want to leave. But for now, wed just like some terms, please. That takes care of it, of course. The whole idea, sara, of this brexit, youve got to figure its a contentious debate right now. Julia, can you just remind us quickly we havent been following it as closely as you have over there. The british pound has been very volatile. Give us a rundown of what it would mean for the markets, why this is so important that David Cameron and european leaders push to keep britain in the eu . Its such a contentious issue. Reporter no, it is. And the big question here is actually how bad it is for the u. K. If they dont manage to renegotiate trade deals and the like. So what impact it would have on the u. K. Also, if we go back to the scenario with a risk of greece leaving, what does it mean for one country leaving and this idea that the European Union itself. What we have seen is sterling underperforming the dollar. There is a bit of a risk here. Whats the risk of internal investment in the short term as well, even though many analysts are saying longer term, the eu would renegotiate. Shortterm risks are higher. When is the vote . Is it scheduled yet . Reporter no, and this is what David Cameron has now got to go back to the u. K. And announce. The expectation is it will be in around the 23rd of june. He wants to do it asap before we see more tensions over the refugee crisis likely in the summer, similar to what we had last year. I think sooner rather than later, particularly given the uncertainty. He just wants to draw a line under this. I think the other eu leaders want to, too. All right. Well watch the politics. Absolutely. A huge political situation there. Julia chatterley, thank you so much over in brussels. Speaking of their politics, coming up on our side of things, the race for the white house. A new poll this morning shows Bernie Sanders cutting into Hillary Clintons national lead. Those details coming up next. But first, as we head to break, heres todays Weather Forecast from the weather channels reynolds wolf. Hey, sara and dom. Good morning, great people. Lets take a look at your forecast around the country. Pretty quiet for much of the eastern seaboard. Take a gander towards the west. My goodness. Take a look at that. Rain drops up in seattle with 51 degrees. 66 in los angeles. Across the central rockies, 65 in denver. Scattered showers in the twin cities. Normally this time of year its snow. Mild weather, its going to be rainfall. New york with 39 degrees. What a difference from last week. Very mild condition there is. The warmth is going to continue for the central and southern plains. Four corners look fantastic. Again, remember folks, beautiful times on the beaches of southern california. All right, folks. Youre watching cnbc. More on the other side of this commercial break. Every year, the amount of data your enterprise uses goes up. Smart devices are up. Cloud is up. Analytics is up. Seems like everything is up except your budget. Introducing comcast Business Enterprise solutions. With a different kind of network that delivers the bandwidth you need without the high cost. Because you cant build the business of tomorrow on the network of yesterday. Because you cant build the business of tomorrow can a a subconscious. Mind . A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Im in vests and as a vested investor in vests, i invest with e trade, where investors can investigate and invest in vests. Or not in vests. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Welcome back to Worldwide Exchange. Turning to the politics it front ahead of the South Carolina republican primary this weekend. Donald trump is trying to hold on to his front runner status while taking heat from ted cruz, marco rubio, and pope francis. On the democratic side, polls show Hillary Clinton and Bernie Sanders are running neck and neck in the nevada caucuses. Tracie potts reports live from washington, d. C. Tracie, theres so much to talk about here. Lets kick it off with the republican side of things. This is getting heated, and its the home stretch, right . Reporter well, it is. Now we have this interesting back and forth with donald trump and the pope thats adding to the drama, quite frankly, in that republican race in South Carolina. The democrats, who will also be competing in a week in South Carolina, Hillary Clinton has a big endorsement coming up there, trying to hold on to her lead. For now, the democrats are focused on nevada. That race tomorrow. The Clinton Family campaigns in nevada today with just 24 hours to go until nevadas democratic caucus. Hillary clinton and Bernie Sanders are essentially tied. Both going after the states large latino electorate. My immigration policy is to unite families, not to divide families. I was the first person to call out donald trump. I said, busta, enough with this prejudice and paranoia. Reporter at a candidate forum, trump with a smaller but still firm lead in South Carolina, blasted president george w. Bush on iraq, defended against claims that he supported the war, and toned down his criticism on pope francis. The pope called him unchristian for wanting to build a wall with mexico. I think he was very much misinterpreted and given false information. I dont think its appropriate to question Donald Trumps faith. Reporter ted cruz and marco rubio are hes sure the republican nominee and the next president of the United States is a real and proven conservative. Id really appreciate one of those hugs youve been talking about. Reporter and while he is numbers are not in the top tier, john kasich is making voters feel good. We all need to slow down a little bit. Reporter as the democrats and republicans go after their next election prize tomorrow. So the big picture, donald trump and Hillary Clinton are still averaging national leads, but clintons lead has been cut in half just in the last month. So well be watching both races very closely. Tracie, just to bring it back to whats happening overall with the democratic side of things, we know Bernie Sanders in that same town hall setting kept bringing up this idea of the banks and financial regulation. How importantly does the democratic side of the debate in the caucus in nevada focus on the Financial Services industry and how it views wall street . Reporter well, its really sort of Bernie Sanders driving that issue. Thats been a hallmark of his campaign from the very beginning. In terms of whether hes connecting with voters, the polls and the surveys have shown us that does connect with voters, people do like the big guy versus the little guy argument that hes been setting up here, that hes going to be tough on these big banks and for the average american. Thats really sort of been the big focus of his campaign. His numbers seem to prof that it does seem to be that message does seem to be connected. Well see what the voters do this weekend. Tracie, thank you. Tracie potts reporting for us in washington today. In other washington news, justice antonin scalias body will lie in repose today in the great hall of the Supreme Court building. A private ceremony will be held before the public is invited to pay their respects as part of the Supreme Court tradition, a black drape is also hung over the courtroom doors. Scalias chair on the bench and the bench itself. The funeral is scheduled for tomorrow. A huge driving force in american justice. Coming up, this mornings top stories, including trouble for apple pay in china. Plus, well tell you what billionaire investor ken griffin is buying for around 500 million. Heres a hint. Its got nothing to do with stocks or real estate. So stay tuned. Youre watching cnbc, first in business worldwide. I think it landed last tuesday. One second its there. Then, woosh, its gone. I swear i saw it swallow seven people. Seven. I just wish one of those people could have been mrs. Johnson. [dog bark] trust me, were dealing with a higher intelligence here. The allnew audi q7 is here. Watching tvs get sharper, youve had it tough. Bigger, smugger. And you . Rubbery buttons. Enter the x1 voice remote. Now when someone says. Show me funny movies. Watch discovery. Record this. Voila. Remotes, come out from the cushions, you are back. The x1 voice remote is here. Good morning and tgif. The bulls are charging to the finish for the best week for stocks in three months. New opponents on the campaign trail. Wait until you hear the latests in this drama. Trump versus the pope among todays top trending stories. And a picture is worth how many words . Were going to tell you how much billionaire investor ken griffin spent on a couple paintings. Its friday, february 19th, 2016, and youre watching Worldwide Exchange on cnbc. Good morning and welcome back to Worldwide Exchange on cnbc. Im sara eisen along with dominic chu sitting in for wilfred frost. Its been a good week to have you here. Its been a fun week. So much news. Its been exciting to be a part of it this early in the morning. And its been a good week for the bulls. Lets show you what equity futures are doing right now. A higher start. Yesterday we paused, broke the threeday winning streak. Today it looks like futures are marching back higher. Theyre small gains. Well see what the inflation number looks like at 8 30 a. M. Dow futures up 27 points. S p futures up four. Nasdaq futures up eight. Oil prices also sort of holding on to some well, theyre losing now. Nothing like the gains we saw in the last few weeks, i would add. And were holding that 30 a barrel level. The chart of the week is the u. S. Stock market. S p, dow, and nasdaq all having pretty good weeks. The best weeks since back in november. Best week certainly of the year. And a lot of the beaten down stocks from last year, caterpillar, some of the energy names, ibm yesterday, have gone to the top in terms of the market. A lot of the highflying momentum names, facebook, amazon, netflix, have lagged. Well see how that dynamic shapes the picture for today. A lot of folks have also been saying during this recent rally, of course, that among the biggest gainers, the stocks that also have very high short interest. Theres a question as to whether or not this kind of rally would be short lived if its only people looking to take profits on big profits theyve made on the short side of things. That remains to be a huge point here. As for the global picture overall, check out whats happening in europe. Very mixed picture. Fractional gains and losses across the board. As for what happened overall in asia, again, were seeing some red across the board here. Nikkei in japan responding to that yen strength. The nikkei off by about 1. 5 . The hang seng in hong kong down by about one half of 1 . And just about flat, very, very small losses on the shanghai composite, which some bulls will take as a victory, at least for that market overall. Moving on to todays agenda, investors will wrap up the week with a key report on inflation that could help really shape expectations on whether the fed raises rates at all this year overall. January cpi is out at 8 30 a. M. Eastern time. Consumer prices forecast to slip by 0. 1 after a similar decline in december. The core rate, which strips out food and energy, some view as volatile, its expected to rise by about 0. 2 . Also, cleveland fed president loretta mester, a Voting Member of the fomc, speaking this morning about the economy and monetary policy. As for earnings on the microeconomic side of things, look for results from deere, an Agricultural Equipment giant, and vf corp. On the apparel side. All before the opening bell. A very big mix here. Not a lot of data but key points on the macro front for inflation and Company Specific side of things for just how strong and how well Industrial Companies like deere can fare in this kind of environment. And commodities is the story with cpi. Highfrequency economics put out a note saying dont be freaked out to see a big drop in that headline number because it cant continue unless you expect oil prices will decline 30 to 40 per year, which is what weve been seeing. Among the other stories front and center today, San Francisco fed president John Williams says the central bank should stick with its plan to raise Interest Rates gradually. He believes unemployment is headed to 4. 5 later this year and inflation is set to reach 2 in two years. Lipper reporting investors pulled 5. 7 billion from u. S. Base the stock funds during the week that tend nded on wednesda. The launch of apple pay in china may have gone too well. A huge rush of people signed up for the Payment Service on thursday, which crashed the system. As of thursday evening, local reports saying 38 million bank cards had been linked. Not prepared for their own success. An apple spokesman promised the issue would be resolved by today. Its a cultural thing. But its more competitive. I dont know. Im trying to get more used to using my phone. I have not adopted it yet. Now on to a few stocks to watch in the overall trading today. An owner of a Mercedes Blue tech diesel car has filed a classaction lawsuit in the u. S. Claiming daimler knowingly programmed its vehicles to emit high levels of nitrogen dioxide. They call this lawsuit unfounded. Daimler shares off by about 2 in european trading. Citigroup raised ceos pay by about 27 in 2015. A year in which the banks profits did more than double. Whether or not you agree with the move or not, the profits are there. Co some would argue he deserves it because he boosted profits. Others say its still a lot of money. I wonder how much bonuses are going to get crushed based on the performances of some of these financials. Theyre so tied to equities, these compensation plans. Sumner redstone was the victim of undue influence, according to the media moguls exgirlfriend. She says he wasnt mentally competent. Redstones attorney arguing that his ex is just looking for a financial gain here. Earlier this month, redstone did give up his roles a executive chairman of viacom and cbs. Time for todays trending stories. Got to start with this one. Donald trump apparently has a new opponent, an unlikely one. That would be pope francis. The pope telling reporters thursday that the gop front runner donald trump is, quote, not christian because of his comments on deportation. Really suggesting that its not christian because of these comments on undocumented immigrants and plans to build a wall on the u. S. Southern border. Trump immediately fired back, calling the comments disgraceful. He later said the popes remarks were much nicer than the media reported. Trump also reported the pope has an awfully big wall at the vatican. Of course he would say that. It wasnt really ugly. The pope suggesting we build bridges, not walls. And trump is actually trying to say maybe his interpretation, or rather the interpretation of his comments came through perhaps a little bit lost in translation. Though it is surprising that the pope di i mean, the pope just the latest leader to be pile on trump. You cant get much more controversial. Also checking on whats happening with uber. Its losing a 1 billion a year in china due to competition from a local rival. This is interesting. The ceo saying that uber is in a better position than its rival because its able to fund losses with profits from other countries. Both companies are spending heavily in pursuit of market share there. Uber plans to double the number of chinese cities in which it operates by the end of this year. Very much an aggressive Expansion Plan for uber in china. I wonder if its cultural there. Everyone uses smartphones to pay for things. Which is why they have such heavy competition, unlike in the u. S. According to reports, billionaire ken griffin paid more than 500 million for two paintings. The founder and ceo of citadel bought a canvass for an estimated 200 million and another for 300 million in one of the largest private art deals in history. Its a different type of person who can spend that kind of money on art. But its art. A new dating app, not one based on looks. Its based on smell. Yes, you heard right. Smell. For 25, the company is going to send you a white tshirt in the mail. You wear it for three days, send it back, and then pick from a selection of other peoples shirts to find a match. Based on which one you like the smell of. Yes, because it could be a mix of your cologne, odors. Very animalistic. They encourage you to not wear deodorant, perfume. There is again, people say smell triggers the most vivid responses in the human condition. Maybe it works. You never know. Anyway, coming up, todays must reads. Everyone still weighing in on the polarizing apple encryption debate. Is apple right to challenge the court order to help the fbi fight terrorism . Its a big question. Stay tuned. Youre watching Worldwide Exchange on cnbc, first in business worldwide. Olay regenerist renews from within. Plumping surface cells for a dramatic transformation without the need for fillers. Your concert tee might show your age. Your skin never will. Olay regenerist. Olay. Ageless. And try regenerist microsculpting eyeswirl. It instantly hydrates to plump and lift. The fbi wants a permanent back door built in. I think thats wrong. I think you should buy a product and feel, this is my product, and what i have is what i think i have and i havent been i dont have companies playing tricks behind me in the background. Even google marketing is something apple doesnt do. That was apple cofounder Steve Wozniak defending tim cook and his security fight with the fbi after the agency ordered him to unlock the San Bernardino terrorists iphone. Wozniak said apples steve jobs would have done the same thing. That debate making the front page of every newspaper this week and covering all of the opinion pages, which brings us to todays must reads. Dominated by this issue. The Editorial Board of the New York Times defending apple. I thought this was very interesting. Why apple is right to challenge an order to help the fbi. The Editorial Board writing, criminals and domestic and foreign intelligence agencies could exploit the features if apple does open this up to conduct mass surveillance and steal national and trade secrets. Its that simple, according to the New York Times. It is not as simple as this would be a onetime request, as the government suggests it would be. Its the precedent aspect. For those people knocking the precedent aspect, the reason there are those who will argue for that, that the idea that if this does happen once, does everybody then have to do it and what does that do well, the government can make more requests. Its fighting a lot of terrorism battles. Though, you know, both sides have very strong points. Speaking of both sides having very big points here, that was the New York TimesEditorial Board. My pick is in the usa today and their Editorial Board. This is interesting. Their Editorial Board and their opinion on the apple versus government debate, the feelings were mixed, saying, we failed to reach a consensus. The u. S. Editorial board. No one had any interest in guarding the privacy of a mass murderer. The stumbling block was whether apples compliance could unleash a genie that might make iphone users easy prey. So this idea that its a clearcut debate, not very clear cut. Even the u. S. Even National NewspapersEditorial Board couldnt come up with one single line or view on how to tackle this. That speaks to the internal debate happening. It was also evident by the New York Post yesterday. The cover story was the fight for the security of your iphone or something. Big cover story, no opinion. So unusual from the New York Post. Lets put it this way, we were going through a list, trying to do an unofficial tally of whos forand against this. We know the Technology Community is trying to side with apple. Who else is siding with apple . The New York Times, the aclu. A more liberal leaning side of things. So you have a mix of conservative and but also libertarians. Yes, absolutely. Meanwhile, those who are defending at least whats going to happen with opening up this iphone, donald trump citing with the Obama White House on trying to get these guys to unlock their phones. A very interesting, strange bedfello bedfellows, like weve been saying. A partisan issue here. Everybody is going to be talking about it for quite some time. Were coming up on the top of the hour, which means the squawk box crew is getting ready for their show. Kayla filling in this morning, joining us live from new york. Ive got to imagine apple is still a topic. But thats not the only thing youre talking about. No, but were still talking about it. Similar to be the usa today Editorial Board, its hard to reach a consensus. People want to feel that they are safe and they are not endangered by people carrying weapons, plotting attacks, but they also want to know theyre safe from intrusions into their devices from the government. So its really hard to draw a line. Now that we know apple will not have to respond until february 26th, that makes the argument draw out a little longer. But we are still, thankfully, given a lot of stuff to watch in the markets today, which are currently gunning for their best week since november. We did slip yesterday after the crude inventory data. Everything really hinges this morning on that inflation data. The Consumer Prices that we get at 8 30 a. M. Eastern time and whether they do, in fact, bolster some of this fed speak that inflation is happening, that wages were just one sign out of that, even though the headline number is supposed to tick down by 0. 1 , it still will be very indicative of where inflation is taking place. Is it just energy, where were not seeing it . Thats going to be big. Happens at 8 30 a. M. Eastern time. We have a lot more coming up on squawk box. Big interviews as well. Kayla, thanks. Up next, a check on the markets. Can we see this momentum in futures continue . Weve got our eye on economic releases. Also, earnings from deere. Rob morgan, the chief investment strategist at Sethi Financial Group will be joining us with his take. Worldwide exchange will be right back. Welcome to opportunitys knocking, where selfproclaimed financial superstars pitch you investment opportunities. Ive got a fantastic deal for you gold with the right pool of investors, theres a lot of money to be made. But first, investors must ask the right questions and use the smartcheck challenge to make the right decisions. Youre not even registered; im done with you i can. I can. Savvy investors check their financial pros background by visiting smartcheck. Gov weinto a new american century. Born with a hunger to fly and a passion to build something better. And what an amazing time its been, decade after decade of innovation, inspiration and wonder. So, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. The market. Redict but through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. Welcome back to Worldwide Exchange. Lets show you the wall street setup this morning. Looking positive, building on whats been a strong week for u. S. Stocks from the dow to the s p to the nasdaq. Futures unchanged. They lost some earlier gains. Well see what happens going into a key inflation number, which could have implications for the fed. Joining us to discuss it is rob morgan. Its been a strong week with some unusual leaders. Some of the losers last year like ibm, and some of the winners last year like f. A. N. G. , getting hit hard. What does that tell you . I think the market is beginning to realize that low oil prices arent all a bad thing. They dont necessarily indicate that Global Demand is weak. We just have an oversupply of oil. It seems we have a Double Bottom in place technically on stocks in general. To answer your specific question, i think that as you say, its kind of the dogs of the dow theory. The stocks that didnt do well last year are doing better this year, and i think that may continue to play out. Rob, its dominic. This idea here, you bring up the dogs of the dow. A big part of the thesis is the idea of dividend yield. Yesterdays trade, it was perhaps disconcerting for some bulls because it was the dividend yielders like utilities, consumer staples, those types of stocks that really led the way higher. Telecom services. Is that the way that you want to see bull market leadership take place . Well, dom, at the end of last year, id suggested with the fed rate Hike Campaign, investors really cut back on their waiting in stocks and shifted to defensive sectors. Thats what youre describing there. Defensive sectors tend to have good yields. Utilities you pointed out, one of my favorite sectors, and yeah, i do think at least for the time being, kind of dividend investing is going to be a very positive force here. So what exactly do you need to look for . What are your risk factors or checklists to make sure weve seen a bottom where you can go out and tell your clients to buy some of these names they like, whether theyre defensive or back to the Consumer Discretionary leaders of last year . Just in a simplistic fashion, sara, i think for investors that are watching, you want to see higher lows. Were going to probably continue to have volatility, and were probably going to continue to have bad days, obviously, on stocks. But from a standpoint of going forward, if at least the lows are higher, that is a good indication, i think, that this Double Bottom is in place. Rob, we heard over the last couple days Hedge Fund Titan ray dalio talk about this new regime of expect the new normal, if you will, to be higher volatility and lower than average returns. Is that something youre telling your clients as well . Do you have to be more cautious, i guess, is the best way to put it, about what you can expect in the stock Market Going Forward . I dont necessarily agree with that, dom. I think that, you know, when the fed rate Hike Campaign begins, a bull market doesnt just end. It typically lasts at least another year. Of course, the rate Hike Campaign started in december. I came into this year expecting a decent year on stocks. So i dont really subscribe to the new normal thesis, what have you. Eventually, you know, the fed will raise rates enough that it probably puts us into recession. But i think thats down the road. I think thats premature. As we look to a raft of retail earnings next week and we digest what were pretty weak numbers from walmart, flat sales growth for the year, whats your read on the u. S. Consumer right now and whether it can remain resilient enough to insulate the u. S. Economy and the u. S. Stock market from some of the global turmoil . Well, sara, im surprised with low oil prices that we really havent seen this kick in to the consumer. I pay all my gasoline charges with a credit card, and its about a third of what it was, you know, just a year and a half ago. Eventually i think that is going to find its way into consumer spending. It hasnt happened yet, but im not putting a an overweight just yet on Consumer Discretionary or consumer staple stocks either. I think it will eventually happen. Rob, thank you for joining us this morning. Rob morgan of Sethi Financial Group. Well, the results of todays twitter poll are coming in. We asked you on twitter and facebook this basic question. Since were heading for the best week since last november for stocks, have we seen the nearterm bottom . Turns out most of you are saying no. Almost 60 at this hour say no. 42 say yes. Rob said we have to see higher lows. Steve grasso earlier told us we had to see stabilization in energy. Take a look at this here. If you look at our charts of the day, charts of the week, check out whats happening with s p and the tenyear yield. 1. 75 . Thats going to be a big move there. That does it for us on Worldwide Exchange. Squawk box next. See you on monday. Who are you . Im vern, the orange money retirement rabbit from voya. Vern from voya . Yep, vern from voya. Why are you orange . Thats a little weird. Really . Thats the weird part in this scenario . Look, orange money represents the money you put away for retirement. Save a little here and there, and over time, your money could multiply. See . Ah, ok. So, why are you orange . Funny. See how voya can help you get organized at voya. Com. Four score and seven years ago, our [train horn blares]th to the continent. A new nation. Announcer president s day may be over, but the savings go on at sleep train. Through sunday at sleep trains president s day sale save up to 300 on beautyrest and posturepedic, get three years interestfree financing on tempurpedic, plus sameday delivery, and sleep trains love your mattress guarantee. Hurry sleep trains president s day sale ends sunday. Your ticket to a better nights sleep good morning. Stocks take a breather, but the s p 500 still up nearly 3 on the week. Oil is staying barely above 30. Apples battle continuing. The Company Getting more time in its encryption fight with the fbi as apple cofounder Steve Wozniak weighs in. And the holy war of words. Comments from pope francis take aim at the donalds stance. He fires back ahead of a key primary in South Carolina. Its a very, very, very special day. Friday, february 19th. Someone is pushing the big 40, but not quite. Not quite. Squawk box begins right now. Live from new york, where business never sleeps, this is squawk box. Good morning. Welcome to squawk box here on cnbc. Im Andrew Ross Sorkin. Lets take a check on the markets. Joe just mentioned the winning streak snapped yesterday as Goldman Sachs and walmart weighed on the dow. Right now the futures are looking to open marginally lower. The dow off about five points. S p 500 and the nasdaq even for now. Were looking at wti crude coming down a little. 30. 17 is the number. Were going to talk more about the markets in just a bit. Now to todays trading agenda. Investors will wrap up the week with a key report on inflation that could help shape expectations on the feds rate