Good monday morning. Welcome to squawk alley for a monday. John ford, kayla, as well as myself. Remembering david bowie on a tough morning, loss of a major, major artist. The dows down about 24 opponents. Were watching crude falling below 32 as u. S. Stocks struggle for gains after the bruising start to the year last week for some tech investors at least. Will the blows keep coming . Ali ans Portfolio Manager walter price and lead analyst mark mahaney. Good to have you. Good morning. Mark, in a neighborhood here now where everything seems to pivot upon the price of commodities, on chinese regulators overnight, and in the end, some would argue, really doesnt matter what amazons operating margin is going to be going into earnings season. Do you agree . Amazon is a bit of a bellwether for the internet groups of a whole as is facebook and alphabet. Probably more than any other stocks in the group. Amazon, what people want to see are operating margins rising in the north american retail bus
Today is different. I think the number one reason is pretty obvious. We had a big Oil Turnaround in the middle of the morning, and thats primarily what turned things around, if you look at the sector. We have been so deeply over sold. I mean for days. For example, the putcall ratio at one point, thats really elevated. All sorts of sentiment indicators. Retail sentiment way oversold. We just have been waiting for days for many some kind of bounce. Oil was the catalyst there. Look at the s p. It corresponds with roughly the time that oil started moving down. Remember, we have brent exploration today. That may be adding volatility here. In terms of sectors, obviously, you have Energy Leading the rally here. Weve got almost 4 move in energy. Health care, industrials. You see Consumer Staples are lagging here. Thats on the bottom here. Obviously the defensive stocks are weaker here. Stocks blowing up this week, not surprisingly, are doing better. Freeport mcmoran turning around a little bit
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Oil, though, now down more than 16 yeartodate, spencer. What looked like a bounce last week we know now is potentially not a bottom. You know, it just goes to show how confusing the difference in the divide is between wall street and main street. Most regular americans think the price is oil is down, i get to save money at the gas pump and yet were telling them thats really bad for everybody and thats why stocks are down. Clearly investors have rediscovered risk. They are caring about valuations for the first time in a long time and it starts in the Public Markets and certainly trickling upstream to the private markets. I see this in my Angel Investments and in the Venture Capital community for sure. We seem to have this reliance again, mike, on rhetoric as they kick off the twoday meeting this week. I think the muscle memory is very strong. And there was a lot of anxiety going into the december fed rate increase. So i feel like the backdrop is, okay, it seems like theyre kind of takin
European. The tenyear note yield continues to hover around even below that 2 mark. God, i i know. Shocking. Japanese negative to nine years out. Negative to nine years, youre paying them to take your money in japan. And the all important look at oil. Up on friday, down this morning, and we seem to be following on the equity averages. Lets get to our road map this morning. It starts with shares of chipotle are up this morning on some anticipated good news from the cdc. Perhaps a turning point for the company after that e. Coli outbreak . Plus what you need to know about the iowa caucuses. Well take you there live as the area prepares for snow. Shares of tesla falling after Morgan Stanley slashed the price target by 100. What has adam jonas concerned about it. And news on the activism front coming your way. Moments from now on alcoa. Lets get to the Broader Markets to start things off. Global growth concerns sends futures and oil prices lower. China manufacturing, pmi for january indicat