This event isic canning off right now. New Ceo Satya Nadella making his first appearance in front of media and wall street for that matter. Were hearing theres about 100 people upstairs, standing room only. Expectation, hearing from sources now, mobile, cloud, two areas where microsoft has been lag on competitors. Also, widely expected to hear about office 4 ipad today one of the things sources telling us there should be big news around 1 20 eastern. Keeping a close ear out for that. In the meantime, seems wall street is investors are hopeful about nadella. Stock up about 8 since he took the reins from Steve Ballmer last month. With this in the meantime, you go upstairs and walk around at the event, theyve colorcoded m ms to look like the microsoft logo. Back to you. Thank you so much, morgan. Diving deeper into what is a major event for this company. Jon fortt joining me here on the floor of the nyse and Matt Mcilwain with us as well. Both jon and matt correctly called early in the race as mr. Nadella being mr. Balmers replacement. You scored the big sitdown with mr. Nadella as well. Terrific to have you both here. Matt, start with you. What are you expecting and how significant will be the office 4 apple event, if indheed does occur . I think well see announcements around the ipad and more importantly, the idea that microsofts applications and services need to live on lots of different types of devices. Because were in a world of mobile and cloud, which is a world of mobile and cloud. I think that under satyas leadership they understand that in a way that maybe hasnt been fully embraced in past. The other thing you should expect to see is not just talking about mobile and cloud from the consumer perspective, something that gets all of us excited about it, but what about the developer perspective . What about the perspective of right. People having to manage all of these devices that live within enterprises today . So i think this is going to be while not strategically expansive, you know, starting to put a stake in the ground around the different kinds of strategic choices satya is willing to make. Very important, because its his first media event. Wall street has pretty High Expectations for him. Jon what are you expecting . Sue, i think this event is more significant from sort of a symbolic perspective than the actual news that microsoft is announcing. Theyve had a version of office 365 available on the iphone for a while, but, you have to sub describe get value out of that. Theyll talk about the ipad. Overall i dont can expect Satya Nadella to get into the a big developer message. Hell do that at the build conference. Here i think a fill sophilosoph look. Maybe not favor windows as much as they used to. Hold that thought. Going to chicago and Rick Santelli with breaking news with another auction. Yeah. Tell what you. Gave it a b, just upgraded it to a bplus as i got the directs. Putting a cap on 96 billion including the two year and the five year. The grade bplus. The yield, 2. 258. The one issued market was offered at 27. 26. 26. Darn close, like yesterday. Covering close to a 10 auction average. The 44. 4 on the indirects. Zooming, 32. 6 pushing the dealer take on this auction to 26 . A bplus caps the supply for the week, and Everything Else is just going to be left to the markets tohandicap, of course, the weekend and all the issues of the day. Sue, tyler, back to you. All right, rick. Ill pick it up. Thanks very much. Matt mcelwain, if this announcement includes the migration of Microsoft Office to ipad, what, if anything, does that imply about microsofts belief and commit to the surface tablet . Uhhuh. Well, i think that it can be strong on the surface tablet, but what its really imply is that their greater strengths today on onnare on the applicat today and what theyre building out. Theyre saying well play to our strengths. Those strengths are more applications and Services Today rather than devices. We want Microsoft Apps and services on every type of device. We want those to be easy to use, which is why i dont quite agree with jon. I think that they will probably emphasize there are these audiences, developer audience, you know, i. T. Audience and the consumer audience at least freedoming that out of it today. Hold that thought, matt. Youll respond in a second, jon. Back to morgan, because mr. Nadella just took the stage. Morgan, what are you seeing . Reporter okay. So quick update here. Nadella just taking the stage. This event will be about 40 minutes long. He says its day 52 for me, but whos counting, and perhaps that the most, and to say hes asking for everyone to have a fresh perspective and relearn what microsofts about. Also keying in on customer service. Back to you. All right, morgan. Thank you very much. The stock is pretty much flat, jon. That may be a function of the day, because the dow and the s p is pretty much flat, or is wall street, in your opinion, waiting for him to prove himself . I think theyre waiting, and well hear a lot more again next week. I want to note, we saw that shot there. What hes wearing, polo shirt. Short sleeves. Different from the Steve Ballmer uniform. Different than the bill gates uniform. Clearly, hes dressing like a Silicon Valley developer. Which ill say is interesting, but here, expect not so much a shift in strategy here from microsoft from the big picture. They always wanted people to use their software in just about every device. Absolutely. The strategy, make it work really well on window devices. Now i think thats shifting a bit. Under satyas leadership. Theyll want it to work well on lots of devices, including ipads. We have to see how hard theyre going to push that, though, because they havent been willing to offer that much functionality for free on a device like an ipad. You have to sign up through subscription first to get that value on a different platform. Well see if they say anything tweaking that a bit. Jon, youre with me the rest of the hour. Matt, thank you so much. Appreciate it. Thanks 234 for joining us today. King digital continuing to drop. There you see it down another nearly 2 today at 18. 63. Its the maker of candy crush and its suffering the worst opening day for an ipo. That was yesterday. The slide continuing today. Out of companies with a negative debut perform later on, three, four, six months down the road . Seema mody is looking at that and tracking the rotation out of some of the big momentum names. Seema, you go first. Reporter tyler, there might be some hope for those bullish on king. We looked at ipos over the past two years and found a lackluster debut on the first day doesnt always lead to the stock underperforming over the long term. Take gogo for for example. Provider of inflight internet, it went public last june. The company traded down by 6 on its first day, but its now up 34 from its offer price. William blair says more customers thanks to word of mouth are using gogo while flying and Going Forward analysts say expansion outside of the u. S. As a catalyst that could help shares outperform. Other examples, mobile security player avg technologies. 18 on its first day a drop. Ouch. Roved. Now at 54 . And lightwave and vipshop, also faced a comeback after shires fell on their first day as a public company. Another trend to note. After the Companies Put out Earnings Report as a public company, more often than not shares moved higher indicating that after investors looked at the numbers, got to hear from management, the street felt more comfortable getting into these names. So for those watching, king digital, that might be something to keep in mind. Tyler . Seema, thank you. Momentum. The dictionary defines it as force or speed of movement, a quantity expressing the motion of a body or system. There you have the power definition. Sheila looking at the rotation out of some of those stocks that really had their own sort of force of nature behind them. They had their own sizzle. Now, not so much. Seeing definitely a lot of that movement, a lot of force you were talking about, that definition. Heres the thing. It is out of momentum names. In fact, a lot of them now are in bear market territory, which means, of course, more than 20 off its most recent high. So lets talk about some of those losers. Elon musk. Solar city down 30 . Tesla down 20 since the highness past months. Getting hit hard. Not just elam talking about. Stocks like streaming music provider pandora, 3d systems, pharma six lix and all three stocks firmly in bear market territory now. Interesting is three very different stocks, very Different Industries but losing steam almost in tandem. You can see the line. Also on the list, names we like to talk about a lot, netflix, amazon, priceline. A big upswing, now actually all in correction mode. All of these names down at least 10 or more from its recent 52week high. Talk about the buy iotechs. A big winner losing steam now. Ishares index ibb down about 15 from its highs. Heres the thing. Its not just about highflying momentum names, nope look at this home builder. Even retailer American Eagle outfits. Those two stocks perhaps stockspecific stories nonetheless in bear market territory. The big question is, why . What are we seeing now . Saying, look, all of this speculation is for sale. Seeing rotation from growth to value. Yes, seeing casualties. Heres the question, though is this just the tip of the iceberg . A senate for the rest of the market . Or one example of a group very overvalued, maybe a lot of sizzle of the froth getting taken off the top . Is the cream going to be next . Well find out. Sheila, thank you very much. Back to Morgan Brennan out in san francisco. Reporter hi. Satya nadella, new ceo of microsoft giving more comments as think event kicks off today pap cloud first, mobile first world, that the two must exist together. He calls it a magical coming together of cloud and mobile. He says microsoft can bring two unique things to the tablt. First they think about end users. The second, coming together of three key constituents. End users, developers and specialists. Well keep monitoring. Back to you. Thanks, morgan. Appreciate it. Meantime here on the floor of the s. E. C. , the composite is trading to the down side, but, bob, there just seems to be not a lot of momentum in this market today. Not the s p. Several sectors struggling now. Show you two trends. First is major indices to the down side. You see the transports, at the lows for the month in the transports. Its not big, but the trend is down. Sixweek lows for the russell 2000. Put that up. Small cap index here. See what im talking about . Yeah. Doesnt look pretty. How about the nasdaq . Same thing. Essentially sixweek lows for the nasdaq. Not enough for technicians to go crazy about but enough for those of us market watchers to take note about it. The second trend, sue, emerging market strength. Remember the trend beginning of january . Sell emerging market, buy new tech. Its reversed. Another day, brazil, turkey, mexico, china, up side. Going on six straight days. The een put it up there. Up six days in a row. Interesting trend were getting now. Near new highs for the year. Not far. Banks, sue, not just citigroup today. Zions either, regional banks eastern. Sydney down almost 5. 75 . All banks down, insurance companies, people are getting used to higher rates, not great with a yield curve. And 3 on ipos. Talking about king earliers three ipos today all up double digits. Tremendous relief to the ipo market. Sure is after yesterday. King an anomaly. Not like the whole ipo market is lousy. The problem with king. A very different way of interpreting the ipo market. Bob pisani, thank you. See you later in the show. Ty, up to you. Its been the Gold Standard for credit cards for a long time, but is American ExpressPlatinum Card losing some of its luster . The big changes that cardholders may need to know about. Plus, after decades of sanctions, cuba now open for business in a big way or is it, michelle . Making big changes to invest law, tyler. Encouraging some, maybe, but is the money going to roll in . I dont know, homer. Discuss that right after the break. Doh. Be right back. Ight back. Real estate in hong kong, and the optics industry in germany . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. How much money do you think youll need when you retire . Then we gave each person a ribbon to show how many years that amount might last. I was trying to, like, pull it a little further. [ woman ] got me to 70 years old. Im going to have to rethink this thing. Its hard to imagine how much well need for a retirement that could last 30 years or more. So maybe we need to approach things differently, if we want to be ready for a longer retirement. Welcome back to power lunch. Im Morgan Brennan sitting outside mike soft event in san francisco. Breaking news for you now. Right now microsoft executives one drive app on ipad. This is new. Also turns out today we are Hearing Office for ipad, goes live in the app store at 11 00 a. M. Pacific time today. We are following that and confirming that now for you. Back to you, sue. All right, morgan, thank you very much. And the woman demonstrating the office for ipad that you just saw was the product manager, julia white. Jon, i guess the question is, will apple devotees adopt it . Absolutely. Theres a long history of mac users, apple using Microsoft Office software. The question is, whats microsofts strategy going to be for becoming the defining app for mobile like on the pc . Is it possible at this point when so many others apple, google, others, offered certain productivity suites for free . Is microsoft consent to be a niche player chau eer charging everything or a cheap or free entry level . What does your gut tell you . You know mr. Nadella. What do you think . Tells me they want share. Here is the place they announce a new tier, im interested to know, either for free or a few features for a little bit cheaper, or if they wait to do that at another time. Theyve got to get more share for Productivity Software on mobile. Well wait for more announcements. Jon will stay here. Meantime, ty, back to you. All right, forkes, cuba opening for business, kind of. The communist government offers tax break to bring in inve investments. Still a number of things before this happening. An international move. Here to explain for years socialist cuban government claimed it was interested in Foreign Investment yet did nearly Everything Possible to make the place uninvestable. A new law expected to be approved saturday changing some of that. So instead of being forced into a joint venture with the government, Foreign Investors can supposedly own a business completely outright. Huge change, remember, long ruling dictator fidel castro seized all businesses in the 1960s and had everyone work for the government, not themselves. Taking a page out of the republican playbook, cuba lowers corporate taxes dramatically, from 30 to 15 and taxes on labor go away completely. This doesnt mean the money will pour in. First, no rule of law in cuba. No Real Property rights either. An invest hear no assurance of a clean, transparent judicial path to resolve contract disputes. Those make up the bedrock of a good investing clilt. Cuba desperately needs investment. When you see them there, seamstresses working on 1950s era Singer Sewing machines. Regardless of what cuba says or does, americans are prohibited from doing business there in any way, shape or form. Cuban government says they would no longer prohibit cuban exiles from investing in cuba. Heres a weird twist. Koonce living in cuba are not permitted to invest in cuba. A critic said this is so odd. Allows others to do things your own people cant do. Government control, but out in welcoming the four seasons some theory that this is designed to incentivize the cubans living here to lobby the u. S. Government to end the embargo. Interesting stuff. Well see. Michelle, thank you. American express has apparently been cutting back on some of its perks as of this week. Platinum cardholders no longer have access to American Airlines and us airways lounges. A couple of the other airlines had done the same previously. Amex godid announce two new benefits, wifi and covering the freeh check travelers. Shares of American Express are up 34 over the last one year. Cnbc. Com kelly grant is reporting on the website on this story today. Platinum cards, its about a 400 a year fee. Ship in it . 450. Even more. Is it worth it still xwnch . If youre delta flier, lounge there, almost 700. Pretty good deal. For everyone else, cobble together all the benefits and see if it works out. A 200 fare reembersment. For checked bags . Yes. Success from people buying Airline Gift Cards with it and get reimbursed. Things like that tsa precheck reimbursement and they do it for global entry, which gets you into precheck. Might not be substantial benefit for people. Then a couple other perks here and there that might be able to add up, if you fly often enough to pay for itself. Other cards that are competitive with this one . That may cost a little less . Thats the thing. If youre the sort of person youre knot loyal to one airline and like to earn rewards, a lot of other cards are out there. Airlines dont seem thrill to me. Im not loyal to them totally. Exactly. A lot of people feel the same way. The way to be really in the Airline Market now and a lot of cards getting double miles. Theyll get you a lot of other benefits at a lot lower cost. Bottom line here, customize your