begins with walmart taking a hit after the company cut its sales outlook for the year. the ceo is saying they're on firm grounds in the united states. >> another component on the move, ibm getting an upgrade at morgan stanley. >> just the beginning ever apple's battle for privacy. number of ceo's weighing in, including google. >> walmart, a fourth quarter, 149, beats estimates, but revenue u.s. compss to a stronger dollar, store closures and battles they're fighting in places like brazil. >> now, look, maybe they felt like they had to cool expectations. it's just an under promise, i don't know. the outlook, first quarter, 1780, the eps for fiscal year 2017, 4 to 430 versus 17 consensus, revenue flat? versus plus three or four. >> although they say if not 44 in -- 3 to 4%. is that an excuse or not? >> geez, i don't know. maybe the 60-62, but i think it ran to 66, because there was a whisper there was a turn this corner and not just that it was in line, but a turn. i'm a believer of what he's trying to do. but if we remember, go back to what he said on mad money when he came on after squawk, give us a couple of years. give us sometime here. >> it's the early days for that turn around. >> yes. >> and that plan to fight amazon, which we could look back at 2015 as sort of the one crucial turning points i think when you look at the dominance of walmart and growth through the many years and amazon really being able to just crush it to a certain extent. on the call, mcmilan saying they do see strength, it wasn't there a year ago. >> i like that. >> and their customer satisfaction scores they say have risen significantly this year. i mean, brazil, off point, but that's a disaster in the making that country. >> a dumpster fire. >> everything i hear is if things continue to get much worse in brazil, and it is not an insignificant economy. >> no. >> remember, brazil, russia, india, china, the olympics. are you -- >> supposed to go ahead of nbc olympics, zika and the economy notwithstandings. >> see you late. >> yeah. >> don't touch my tough. i mean, but i -- >> i thought it was a peach assignment. >> then venezuela cuts, i mean, again. i just think that if you have business in brazil, i'm taking your numbers down right now. i mean, literally, it's that bad. walmart, it's okay, the stock ran, you know, amazon. they reported after close. bruce said nordstrom is such a service company. when you come in, they know my size, the shirts i want. but bruce complained that the best customer service in the world is amazon, and they've spent about $3 billion to keep up with amazon. walmart a has a percentage of sales has not done that. i know walmart has a big office. you're trying to get the computer scientists and go to work for them. but facebook has dorms set up for computer scientists that are apparently very luxurious. apple is building this campus that would make it so you feel like you're in disneyworld. >> a spaceship actually. >> with the martian. i mean, they're going to go, brad pitt is there, right. >> they're going to pick him up. >> walmart, wow, computer scientist, i'm going to walmart. ge, i can get that, moving to boston. but the computer scientists, their first instance is mark zuckerberger calls him, mcmillan calls him. >> a very competitive environment. >> hiring and retaining, it's -- it was about this time of the year, we talked to mcmillan about the wage hikes, which the second step will take effect i think in a couple of days now. so labor costs as they've well telegraphed are going to go higher. but your point is, second best dow stock of the year, the run-up didn't, it is not deserving of this report. >> no, i feel bad that people got ahead. i know 63, that's pretty good, yields 3%. suddenly 66, there wasn't -- there was this kind of moment that happened where you started hearing companies talk about how gasoline, spending, price line poll, very good call, great interview. but the problem is, it's uneven, where that additional dollar is being spent. i thought it was going to be spent at walmart. now, again, walmart is not saying the u.s. is bad, but i think that doug mcmillan tried to tamp expectations and he couldn't do it, and he did it today. >> they got experience from headwinds from meat and dairy products on the call. this was great on the walmart u.s. ceo and additional pressure from warmer than typical temperatures, of course, so many retailers have cited. talk about delays in irs checks. >> that actually has happened periodically. >> it has, and from what we know, wa know. >> we had a number that was bad. i said listen, take a look. great deoperatiflation in the m january. boom, i was going over industrial production last night. up from the st. louis fed. industrial -- the capacity. >> yeah. >> going over home building. hey, guys, we've seen a peek. it's not going off a cliff, but we're seeing deflation in food, numbers are just important as just hanging in there. we know wage inflation is almost all mandated by the government. we are not in a situation where we need to raise rates, and i would like to say that my close is jay. >> as expectations are falling, the fed not remotely close to considering negative rates. >> there is a dove building a nest above my doorstep, right above in brooklyn. >> really, a dove building in brooklyn. >> a dove building in brooklyn. i was thinking synergy. that dove, which is a sign. he is no longer a hawk. he is sim pat co. he may be a little bit more than i am. now, look, i make fun. the guy is a terrific guy, but completely agrees with me. >> that's all it takes. >> no tall ceos out there. >> completely agree with me, get on my good side. >> from walmart to disney here, disney's espn says it is in talks with digital streaming services to offer the network over the web. this is what espn john skipper said yesterday at the code media conference in california. >> a number of people have expressed interest and we're in discussions with a large number of people. i can't really make -- i think other people will enter into some market with lighter packages in this calendar year. >> all right, did he point outgoing alone, not the best idea in his view. but left open the possibility that they are talking to an amazon or apple. >> those of us that know skipper, he is the most straight shooter guy. look, bob eiger runs the company, but he has been known to get off the reservation. pretty bold comments from this man. >> yeah. this has been the focus for many media investors trying to understand the changing landscape as we know and the power of programmers perhaps what will be less power in the evolving environment where broad band is the key product and ability to access over the top platforms, groups of programming that are put together by the likes of an apple if that ever comes or amazon or on your own, for the younger generations, even though the bundle may represent an economic, you know, maybe economical, for a big family. this is the world we're dealing with. so espn as we know, will it see fewer subscribers, not including sports, so expensive. what's the average family taking home in this country? what's the number? 60, 50, something like that? you have wireless bill and then you got your cable bill. you are looking for opportunities to cut that down. >> you know, it's funny you say that. because my energy bill is down big. my cable bill is looking like, i'm like, i've got -- we don't have comcast where i live in brooklyn, okay, we have f ios9. i don't want most of the channels. the ceo, isn't this completely breaking the contract? and you know, basically he said these things are funable. >> verizon has found on the skinnier bundles they offer, people don't take a lot of sports. they don't want the sports. >> i get the espn channel that i love, i do get it, but. >> skipper's point is can an existing streaming services only espn really, really thrive. >> right. >> we've seen polls from cell side guys with cell ratings to be sure that a large percentage of americans said i would cut sports to save $8. >> you're not cuts sports. you're cutting, no offense to the conference, because they put up good games. you're cutting off the mac conference. what's happened is that there are great stations if you're really interested in the nitty-gritty sports, of which skipper said they like those contracts. and honestly, that's - d - those are fantastic if you're interested. if you're not, wow. i mean, you get that, the greatest programming in the world is that i happened to love sports, the fantastic espn programming, and you've got your hand-held. i love watching it. >> you do have streaming services over the top for sling tv for example, what's offered by dish, that do include some espn. they've included 175,000 subs, dish just reporting numbers being reviewed. >> yeah. >> the call isn't until noon. we'll get more from charlie then on that whole subject. because he is always interesting to listen to. >> yeah, i mean, i listened to skipper and he is talking about $100 a year figure that he mentioned for over the top. and i said i'm trying to calculate, what does that mean for them? i would point out, most importantly, disney stock, bottomed at $86.95, like a rocket. more to disney than just this espn number. just like there is more to the market than china. maybe more than some of the things we've been worried about, you know, yellen. sarah said this this morning. sarah and dom on this must watch 5:00 show. you have to get up for this thing. it's really good. don't look at me like that. sarah is dynamite and they have talked about the decoupling. i like it. it is a red hot show. >> what they're saying, do you want to explain to some of the viewers what you're talking about. >> we can start ignoring china, ignoring oil. it may be it's not locked. >> all the trades not from the quantitative machines. >> do you get up after that show? >> you do not get up to the five? >> no. >> i'm going to give you a buzz in the morning. you set your clock. >> do not do that. do not do that. >> i check twitter and a post from you an hour earlier. >> you know, i got the music was too loud the other day, we got that fixed. i mean, they played this rock and roll spotfy. no, it's the substance. >> when we come back, a lot of apple news to get to, a day after the blow up stories, what some of the other ceos are saying, travel ahead of marriott and what happened with ref, that company. morgan stanley, the president announcing his cuba trip for march 21 and 22nd. here is another look for the premarket. ♪ [ male announcer ] fedex® has solutions to enable global commerce that can help your company grow steadily and quickly. great job. (mandarin) ♪ cut it out. >>see you tomorrow. ♪ ngo to ziprecruiter.com and post your job to over one hundred of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. and now you can use zip recruiter for free. go to ziprecruiter.com. man 1: he just got fired. man 2: why? man 1: network breach. man 2: since when do they fire ceos for computer problems? man 1: they got in through a vendor. man 1: do you know how many vendors have access to our systems? man 2: no. man 1: hundreds, if you don't count the freelancers. man 2: should i be worried? man 1: you are the ceo. it's not just security. it's defense. bae systems. apple debuting apple pay in china today. the first attempt to break into the asia payment market. separately, some new data shows the iphone experiencing a sales drop for the first time ever. according to gardener sales, the down 44, in emerging markets. a lot of buzz surrounding opposing the judge's order to help the fbi break into the cell phone by one of the san bernardino shooters. the head of google, with a tweet storm overnight. we build secure products to keep your information safe. and we give law enforcement access to data. that's wholly different than requiring companies to enable hacking of customer devices and data. it could be a troubling precedent. >> yeah, you know, i talked to a number of lawyers who are actually involved in these contracts yesterday. and they basically said that, and they all have the same star, which is of course, we want to get the bad guys. but having looked at the contracts of what the company has said, it's almost, it's just not possible for tim cook to say here is the information. just can't do it. he has to be ordered by a court. now, those of us who have been involved in one of these situations, i was involved in unfortunately two twausituation life saving, where another provider, i had to go to law enforcement and the reaction was listen, we're not helping you, and the reaction of the fbi is we don't give a damn. give us the information. the law enforcement wishes i don't speak about it on air. but there are ways that some companies can cooperate. i'm not going to mention which ones. but it is a back channel way. this is obviously a very front and center way that the government has gone, and i don't think tim cook is even -- i know he is very pro law enforcement, but they made promises, and they made promises to the extreme. >> journal, background, under the radar for a while. the fbi apparently, apple's encryption has stiefled, over the top, right, make it part of a large conversation? >> yeah, well, relying on the all ritz act, something from 1979 is interesting. it does have the feeling this will wind up in the supreme court. it would seem we need that, because we're -- listen, we're going to be dealing with these kinds of issues, whether irrelevantit's privacy, security, go down so many different roads, dealing with both ethical and perhaps constitutional questions as we advance so quickly on any number of technological roots, artificial intelligence. >> war on terror, then you have situation where really should be no issue. you have to give it up. but it's not a troop ship list in a war time situation where you know that you're putting this, people's lives at risk. obviously this is one of the situations where i believe that if you get a judge who is pro law enforcement, and just overrides cook's e edict, appea court, supreme court, and you probably have 4/4. >> free speech, you were talking about privacy. also about protected speech. >> the first amendment is always trumped. it's the weakest of the bill of the rights. always trumped by the government when both the justice department and judges have almost always trumped this, except for the disestablishment in terrorism for when it's religion. >> apple says you do it this time, you figure out a way to hack this phone, it gets out, next thing you know, the chinese have it, and all bets are off. >> or what can a court ask a company to do if they're asking them to constructs something new to aid in surveillance, limiting were principal to that. >> we know what they're capable of. >> it's behind the scenes for now. but when you've been involved in one of these life threatening situations, the companies cave. they cave. >> that was before encryption. >> right. it was before encryption. that's a really good point. >> technology is like more money, more problems, you know what i mean? >> that could be untrue. the too rich, you can't be too rich or too thin. having just finished that cleanse, you can be too thin. i'm taking that one off the table in terms of death taxes, too thin. >> cramer's mad -- count to the opening bell. coke by the way with a hike just now to the tune of about 6%. talk about this ibm upgrade in a minute. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. ♪ ♪ for your retirement, you want to celebrate the little things, because they're big to you. and that is why you invest. the best returns aren't just measured in dollars. td ameritrade®. five and a half minutes before trading. let's see if we can get another up day. >> quite a rally we had. >> since 2011. >> even some energy names seeing a bit. >> yes, they have. listen to this, david. devon, which basically gave you a great story when they reported, some people, some of the bulls were saying, hey, the one thing they didn't need was capital because they told a good story. 55 million shares, the demand so great, 69 million shares at $18.75. over subscribe. why, because the pioneer deal and it worked. people saying $31, this company, which traded here, maybe a buy here with $31 oil. this is the key to this market, david. >> the ability of the companies to sell equity, even at extremely depressed prices, some would argue. i have no idea, hess, i knew they sold here. i'm sorry, buy, bought back here. did they buy back? >> i'm not going to -- i don't know. hess had the numbers. it was a fabulous story as far as buying low and selling high. >> you were a hedge fund and you got stock, you just made $0.50. i am bating thetting they put t good hands. >> 70% for the year. >> energy 21 has come off of its high, ultra, there is a -- real money worked on this stressed out index, but some companies really stressed out. >> sharply yesterday, again, that's right. >> chesapeake, by saying they can meet the payment. devon is a well run company, but david, it's in the energy business. >> yes, it is. yes, it is. 55 million shares. >> no, they under it to 69 million due to demand. $18.75, even after they told you, well, david, devon is key. devon is the horseshoe. >> we have the opening bell coming up next. stay with us on "squawk on the street." hundreds of crash simulations. thousands of hours of painstaking craftsmanship. and an infinite reserve of patience... ...to create a vehicle that looks, drives and thinks like nothing else on the road. the all-new glc. the suv the world has been waiting for. starting at $38,950. ashley bryant, you are a teacher of small children. that's right. i have read it is the hardest job in the world. that's why i'm here. can you... i can offer advice from the accumulated knowledge of other educators... that's wonderful but... i can tailor a curriculum for each student by cross-referencing aptitude, development, geography... sorry to interrupt. but i just have one question: how do i keep them quiet? (pause) watson? there is no known solution. opening bell brought to you by power shares qqq. you're watching cnbc squawk on the street. opening bell in just about a half minute. coming off of the best three-day gain since august. you remember what that was like after we took the big spill, 5.3% over three days for the s&p, last four day streak was in october, so it's been a while. >> right and remember, when we had that 2011, if you go back and look, 2011 was when europe was falling apart. what a come back. thursday was the big, even though vix didn't reflect it. people were saying that was a, at least temporary bottom, because that was the day where it seemed like the world as coming to an end, banks got crushed. since then, a lot more positive. go back to the day, and you watch the tenure, that was the sign of tremendous crisis in the system t seems it has past. he is one of the few fed guys who can change his mind. i have to hand it to him, because he basically said listen, there was some damage, you know. this rate hike didn't reverbera reverberate, and a lot of people who said it would mean nothing, are now saying that it meant nothing are trying to walk -- >> you've said that before. by the way, here at the big board, ethan-allen, and we've talked disney, walmart, ibm upgrade at morgan stanley, 140 price target, 169 where the companies got news. >> yeah, i'm going to go over there. because ibh has been fighting to get to 35% cloud. and they got there. but nobody seemed to care. now, they had a constant currency, they had problem of all the companies i dealt with, they are the ones if you sit down, you know currency has been the biggest impact. share price doesn't reflect the transformation. that's very true. of course, the problem is that in the interim, we had so-called cloud companies gloe up, linked in, not a cloud company, when you look at the one day, two fridays ago, when sales force was down big, ibm was not helped by it. key line, free cash flow could surprise positively, if this piece is right, then you have to buy ibm. you have to. because the turn is at hand. remember, the basket of currencies is up. do you know the peso stopped going down. euro versus this week last year, inches negligible. so it's possible this could happen. against all this is just the rest of the business is just not good. >> yeah. ibm, the third biggest s&p gainer, 4% move on a large day. health analytics for $2.6 billion. >> a big deal. they want to own that market. you know, ibm is not as bad as people think. how by put it like that? they're not as bad as people think. >> okay. >> damning with feign praise. >> but it may be deserved. >> the deal from late yesterday, micro selling out. >> thank you. >> to a chinese company, hna, by the way, founded in '93, 1993, they have about 90 billion in assets across the globe. 29 billion in sales in 2015, they recently bought an ireland aircraft leasing company for $7.6 billion. a bought a stake in red lines hotels. they have a chance to buy ingram micro, technology for $38, 12 times forward earnings. 6.7, which is not -- it's a price that at least the analysts who i've read this morning who think it's reasonable, jim. but there are questions, as there always are with chinese acquisitions about these so-called review. interestingly, despite a lot of language in their merger agreement, around siffius, they say they don't currently plan to file for approval from them. meaning, you know, it's -- the panel that essentially approves deals based on national security. and a number of people say, that's weird and may be ill-advised to not be seeking or voluntarily file for a review. perhaps, while i am that being ingram micro doesn't own any sensitive intellectual property, people pointing out they play a major role in the supply chain and have access to the technology and we all know about our concerns about china and technology, given the massive hacking that they are constantly doing to try to steal secrets from corporations. >> geez, i know the company, and the company is part of a trio, avnet tech data. they would have sensitive supply chain. ingram is more of a pure distributor, but this is a god send, because it's dog-eat-dog. ingram has been doing a little better. i thought this was a very important deal coming on, in the wake of adt. what happens is kind of these companies, chinese company, apollo doing adt, saying you know what, prices got reduced, let's strike. >> we see some value. 31% premium here is what they signed the deal at, implied multiple, 12 times, 16, $3.25, jim, and to your point, apollo good at seeing value also. >> yes. >> it did raise some eyebrow, because the stock had fallen dramatically and they saw the opportunity to come in there, unclear whether there is any strategics that may want to take a look. go shop with apollo in which they agreed to acquire adt. >> well, you know, i just think it's a positive, this is a very positive trend. ingram in particular, because there is just so many tech companies that are just out there that have done so poorly. now, fortunately, ingram habs exceeded a lot of these others, but when you talk to abnet, has not been a lot for sale. rick has said there has been a downturn, particularly in the united states. ingram gets a big con sure shum of companies, there are guys with a lot of cap. to me, i did raise eyebrows that they didn't want to go the route, because i got to tem you, the government is not going to like this deal. >> speaking of tech names doing better than expected, inn invida, brocade has been a while. >> i remember visiting them any guess 1998, 999, they were the hot product for basically cisco, cisco killer. they were a cisco killer. they did not kill cisco, but this a major, a major come back for them from really the depths of the tech depression. invida i don't think should have fallen as much. i think that's a mistake. their chips of internet you of all things. they're fast, fast chip and color. and intel is not against them right now. it was always the thing intel should buy them or not. but this is a company that got hurt off of gaming sales and i don't think it should have. >> how about jack, today? jack-in-the-box traffic was disappointing, a week 2016 guide, down 18%. >> let's talk about that. one of the reasons why we own it, the company has been quite -- things were very strong, told you not to worry about mcdonald's, not to worry about -- >> mcdonald's, burger king and wendy's have been doing well, all three. >> i'm not sure whether i like jack-in-the-b jack-in-the-box's analysis. they had been very, very positive, and the reason why that stock is down, remember, it was down a couple of bucks yesterday, the whisper was amazing here. it's not just because they were going against chipotle, which has bottomed, it was because management has been quite bullish. i want to caution management, when you do this, it's not something that -- it's kind of antibulllard so to speak. i don't buy what they say. >> you sound mad. >> i wasn't -- my wife at $11.40 said when are you going to go to sleep. i said when i stop thinking about the jack-in-the-box. >> really? it upset you? >> yeah ex it upset me. it upset me and i used some foul language after we had done the new york mini crossword. we do that right before we go to bed. she said what is it with you. i said jack-in-the-box. jack-in-the-b jack-in-the-box. >> how about pergo. >> because it's from philly? >> no, you covered that company very closely. >> i was disappointed. >> they reported numbers we should point ount 1.42 billion. but it really was the guidance from pergo, and what seems to be under performing from band of consumer health care business, which they say now they're embarking on a number of different things to try to fix, restructure, and now looking at the back half of 2016 is the way, the place they can claw back some of the earnings they're not going to post. stock as you see, down pretty dramatically, 7%, near the lows for the last 52 weeks. >> yeah, joseph, the commentary in the quarter was somewhat out of sink with how bad the numbers really are. that was not -- >> shareholders can't be happy. can you live, we will not take that bid from myland. we'll let you survive, premium, get it now and get some performance. they amazingly chose to let them continue to be an independent company. not rewarding them so far. >> this is an israeli company based in dublin, main office in philadelphia. >> manufacturing in michigan. >> yes. three different content nents, very angry at these guys. i am surprised. i mean, i thought the problems, vitamin supplements, but the problems are kind of myriad, and acid impairments, this is below expectations. you know, this perrigo belongs in the jack-in-the-box. lisa, i'm sorry, i know you wanted to go to sleep. jack-in-the-box. >> walmart back to the 50 day, take you back to levels we saw in late january. bob is on the floor for us. hey, bob. >> a little bit more of a either-or kind of market today. not clear up trend or down trend. in fact, basically flat. take a look at the sectors. modest strength at the open. energy names, almost modest, you could see consumer staples weak. walmart is in the consumer staps sector, not in the consumer discretionary, rather oddly. mixed market. not mixed in japan. i want to know, japan had a descent day here. nikkei up, bank stocks up 12% for the week. despite the three-day rally there are some signs of stress still out there. i think it's very useful to remind ourselves what happened with devon energy. following their report, they came out with a dividend cut of 75%. they announced they were going to do asset sales and announced a 20% cut in the work force. you think that's enough liquidi liquidity, that's about 15% of the float there for the company here. so i think the concern here, the surprise, you would have thought plenty of liquidity in the earlier announcement and the secondary is more. the implication the company sees a much longer path through the downturn. the good news, plenty of liquidity, the bad news, the dilution. 14 year low. remember, it was $40 a short while ago. another one i want to point out is anglo american. it had a rally, but s&p cut it to junk. they're talking about restructuring, pay down a lot of debt. and the current commodity slump may make it tough. is this isn't going away. we need commodity to stabilize. on walmart, it's interesting, they cut the sales forecast for the year and implied the dollar was a problem. i mean, maybe. yes, they have significant sales in china and significant sales in brazil. more than 70% u.s. i think the problem here is their u.s., they were talking 0.6% for a u.s. comp. some people 11.5%. what's going on in the united states, walmart, take a look at walmart, discounters all down on that. walmart to the downside here. but i think competition and i think their deoperation flation issue. meat and dairy products. they claimed that their comps were being affected because of deflation in food. that's good news for the consumer obviously but not great news for walmart. as for the three-day rally, it is tough to keep it going. we asked our friends at kenshow what happens when it rallies 5% over a three-day period. what hams the following day, which is today. this has only happened six times since 2010, s&p has been negative all six out of six. after rain return, 0.86%. we're on track for that. carl, back to you. >> bob, thank you very much. we've now mentioned jobless claims at a three month low. let's get to rick santelli in chicago. >> three month low. there used to be a time when the markets would have looked at that as a positive for the economy. you would see interest rates up. they're down a bit. once again, look at a two-day chart of tens. today's range so far is inside of yesterday. so it's an inside day. most traders are operating under the assumption that that won't changed to. sometimes you know, breaking out and having a wider range as a trend reverse sal, trend continuation, wait and see. listen, the next five charts, i want you to know how similar the patterns are, just as a sidebar. february 1st, start on ten year, you could decfinitely see we hae turned a bit. i don't know how temporary it is. it looks like it's losing steam. you can see the dynamic in a more exaggerated fashion, february 1st start to ten year boon. of course in the mid 20s in turning down a little bit today, yields also lower. j.j. bs, less do a year, they had the big drop of course, negative rates and if you notice, one day they settled in this recent move, at a negative rate of course, and that was the 9th of february, minus two and a half basis points. it seems as the market rejected that knows, volatility started to slow down a bit when they went positive, everybody was affected. think about the dynamics that may have occurred there. look at the dollar index, same pattern exactly. now the dollar index is a far cry from the high levels, but the notion of a higher dollar in business and too warm, too cold, i'm sure that will be ongoing. ten minus two, with a more aggressive tightening cycle of the central bank, notice it has been steepenning of late. market aspects to the correlated world we live in. let's see how the correction. >> rick, we'll talk to you in a little bit. still to come, shares of marriott down in reaction to the quarterly results. live interview with arnie sore -- arne sorenson. we'll be back after a break. can a business have a mind? a subconscious. 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? okay, so you launched your bank's app. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at 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tomorrow, today at business.ny.gov after all of these reports of the company closing a number of verticals, real estate, food, travel, autos, parenting, and then the ongoing story, david, of whether not a proxy fight is in the making. >> listen, i think, and there are some reports. more likely than not they will a he do something, unless they give him a board seat or two, proxy fight there. then you have bob peck, i know, jim, sharing some research about all the potential buyers who have lined up to look at. >> 20. >> he says 20. i don't know if that's right. >> i know micadams. >> drive away any potential competition for the asset. still questions about how serious they are. i think they're fairly serious about at least investigating it and the independent directors will be pushing towards that end. but it's not that easy. they've got that yahoo japan stake. which is very significant. what do you do with it. you can't leave it behind, because alibaba leaves under the 40 mark. verizon is not taking the japan stake. they may want to figure some things out, go give ip soft bank and what he is going to do with sprint. maybe it will be interesting to watch, but that certainly complicates things as marissa myer seems to be ignoring it. she's focusing on the core. >> speaking at the conference where skipper, espn spoke yesterday. >> i thought these were very important verticals that were closed. i don't know, i mean, these were verticals they could have dominated, frankly. i mean, when you look back, look at what they could have done, you say, wow. i mean, that could have been a great vertical. put all these different food related -- of course, i had designs for everybody, meaning -- >> of course you did. >> for instance, i thought the time warner should break out hbo, but that's just shuffling the deck. it's a trader kind of thing. bring out about 30 points of value, it's trading. >> you have to leave that with the studio. they can't split it up any way. >> no, they can't. they've got a good plan and going to work, because they have a lot of earnings. >> correction, meyer is speaking at the mobile developer's conference. nod code media. my mistake. >> do they ever work? >> hi, i am speaking today at the society. >> i'll be speaking on the three train going uptown. >> i spoke at the brooklyn historical society. >> that's a good one. i ask for a little money. not a lot. like everybody else. >> stock trading with jim in just a moment. dow is up 7. cramer, so much news, devon, 18 and three quarters, like at this thing. just a huge win for people got in that. the morgan stanley people loving it. foc foc focus they again devalued, ten boulevards to the dollar. clorox, when donald gave up the job. he literally said we're getting out of vens watch them. they're not there. that's why they are very forward. they are doing a great job of ceo, but holy cow, unbelievable devaluation. our country's companies refuse to walk away, and it was a bad move. >> jim, what's on mad tonight? >> i got some real big news. waste management looks like doing some interesting things. jim reed anderson giving up the john duffy. jim reed anderson, one of the great gasoline prices. i hate to see anderson not be the ceo, but maybe john duffy is good. this and fun cedar fair have been great places to get income and always go by the way. can i say i am a theme park guy. >> same here. >> ever since, look, when the -- okay, so i threw up on apollo's ch chariot. i didn't throw up on fire and ice. >> jim, we'll see you tonight. when we come back, breaking news on lei, the head of go daddy, up 9 points. don't go away. we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. 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(announcer) over 400,000 businesses have already used ziprecruiter. and now you can use ziprecruiter for free. go to ziprecruiter.com/offer2 welcome back to "squawk on the street." the new york stock exchange, you know by now we're coming off of three-days of 1% gain. it has only happened 29 times in 50 years. a fourth day would be hard to do, but we were mildly in the green a moment ago. oil still helping out. lei, rick santelli in chicago. rick. >> the january read on lei is done 2/10ths. we could say it was wild. expectations was the actual number, and it was our last number until revised down 3/10ths. an interesting fac toyed i just noticed. two negatives in a row. only the pm is have many negativeless in a row, i can't see back-to-back negatives other than august and september of 2011. so always trying to find pat he were -- patterns. yields slipping a bit as equities slip and maybe for the reasons carl just outlined. maybe we won't string them together. end of the correction? i don't know. closer to change, volume picking up on the floor. back to you. >> rick, thank you very much. meantime, one reason the dow is losing some of its gains, walmart, falling 5% right now. the company reporting fourth quarter results that beat, but walmart cut its outlook and reported disappoints u.s. sales. the lower forecast being blamed on recent store closures and stronger u.s. dollar on international stores. ceo doug mcmillan is optimistic. listen. >> we do see an underlying strength in our walmart business that wasn't there a year ago. our customer satisfaction scores have risen significantly this year. and we now have had six consecutive quarters of positive comps and five straight quarters of traffic at walmart u.s. >> he said it was quote, awesome to give a raise to more than 1 million people on the same day they've been investing almost $3 billion. we'll see how long it translates to any meaningful growth. it's sluggish. results, walmart results a little later on in the show. analyst for you on the phone after the call wraps up. >> in the meantime, the broad stock mark mixed, fourth day of gains, continued rally in oil, which continues to move eyer will boost the markets later in the session. joining us now, john stallworth. john, highlights in there at the top of the show, these three-days, strong days of gains on the equity market, historic, many senses. 20% rise that you've had in the price of oil. that claimings the perception perhaps of where we've been recently, doesn't it? >> well, i think the good thing is it certainly works against the grain of the thought that we're going into a recession. and what it does show is there is demand for oil. we're beginning to see some growth in europe, fourth quarter came in as i recall at 1.5%. fourth quarter in the u.s. was 0.7%. you're getting a recover reprocess. >> you're on a pin there. i thought they started covering their oil shorts. >> that's part of it. but you've also, if you take a look at the supplies, it was expectations as i recall yesterday, that you were going to see supplies rising and there was actually as i recall, a slight drop in oil inventories. and when you get that kind of a move, what you're looking at is, we've got a growth here situation. not uncommon after a bad start to a first quarter. >> michelle, is that your perception of where we are? >> the most important thing to be watching is how i think the u.s. consumer is doing. we saw that even the story there about walmart. the most important thing is to the extent that international developments ultimately come back or not to undermine the u.s. domestic story, and the good news is so far, there really isn't, i mean, the u.s. economy is showing a lot of resilience. i think when we see numbers like we saw with retail sales last week, that sets the stage for the better performance in the equity market and just a better feeling generally that, you know, as john said, we are not necessarily headed to recession if there is more resilience here. it's coming from the underlying support that ongoing low energy prices, even with this up tick are giving us. >> i hope you're right, but i thought we had this nailed earlier when joe was here from deutch bank. remaining quite strong. recessions are about capital investment, ceos pulling back and laying people off. >> that's absolutely true, and so far, we're not seeing that. and again, i think that ultimately, businesses do that when they're worried about the sustain ability of the consumer. you know, when we look at the employment report, we look at even in areas where you first expect, you know, companies to be nervous. companies in the retail sector, in the restaurant sector, they kept their workers that they hired over the holidays than they usually do. good gains in those areas. the data in discretionary spending, all the things that undermine business confidence about domestic demand, it caused them to pull back, isn't there. i think that they're looking through and what they're still seeing is good under lying support for the consumer. i think ultimately, that's what comes together to give us more resilience with the u.s. ee con me and people are maybe giving credit for. >> it sounds like you might agree with that. >> absolutely. >> where do you invest, capitalize on that in. >> we're still overweight u.s. versus international, and but we want consumer discretionary, we want technology. we want health care. because of the boomer demographic, we also want industrials for moving ahead. we think industrials are the new technology. if orange is the new black, industry is the new technology. they were generally a lot of metal, gear and gauges. a lot of kmuchb indications today. >> not quite as sexy. >> it isn't, but getting sexier. >> industrial recession? >> i wouldn't say we have an industrial recession, but we certainly have an industrial reaction to over investment over the last six or seven years. much of it, and beyond that, even 20 years, when expectations were for china to just keep growing and growing. >> so why would you buy now? >> they're cheap right now. if you look at the -- the multiples on industrials and materials, they're attractive. if i am a long-term investor, i'm looking to build wealth, i see value. >> a lot of optimism, reflected in the markets right now. what does it mean for the federal reserve. questions about whether march is still on the table. the market doesn't think so, but economists that sound like you and potentially some of them are inside the fed voting members of the federal reserve might vote otherwise. >> again, first of all, i want to clarify, there is an opnism which is probably best said a lack of pessimism in terms of looking at when you fell in the markets last week and it might be around the corner. i don't see that. i also don't see a scenario we're going to be looking at a big acceleration for the growth. for ot fed, even i've probably think march is too soon. i suspect, they'll want to wait more to, you know, kind of look at the data for at least another month to figure out whether there is some economic fall out from the tightening of financial conditions that we've seen. you know, i wouldn't rule out a move in april, if conditions continue along these lines, stability we have seen. certainly underscore the fact that every meeting is live. plenty of time to set it up. but it just, even to me, feels march is going to be too soon for this fed, who is in this watchful waiting mode. >> i guess going from march to april kind of a loosening of policy. we'll leave it there. michelle and john. >> up next on the show, the debate over apple's refuse al to help the fbi is heating up. former nsa worker when "squawk on the street" comes back. dow up 23 points. 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customers here can enjoy more privacy. also, they said that the service is just easier to use. all you have to do is take your iphone and tap one of the millions of terminals out there and run by their partner here, union pay, state run company, and you're golden. now, this, some of the people today on social media were just talking about how excited they were they could try the service and in fact, in the first hour of the launch, 100,000 people signed up. according to chinese immediate yeah. this is what some of the customers had to say. >> translator: the apple pay system is very fast and convenient. all you have to do is scan your fing finger frint. >> translator: it is more secure because it cooperates with union pay. >> apple does face an uphill battle here. some of its competitors like alibaba that they currently do not have. pay stocks, utility bills, using the services, transfer money, offering discounts and coupons, however, people still are really impressed by the security feature, and one of the other big discussions here has actually been about the big privacy debate that you guys are having over in the united states. and what's interesting is that a lot of chinese aren't really talking so much about how they're concerned about the fbi hacking into their iphones here. the focus has been mainly about how apple is allowed to take a stand against the u.s. government, because the people here are saying that any company here would just go along with whatever the chinese government wanted. >> e uni thank you for reportin. it's fight against tcourt order to unlock the phone. google sundar, could compromise user privacy. data based on valid legal orders, that's wholly different than requiring companies to enable hacking of customer devices, and data that is what could be a troubling precedent. so does the fbi have a case or would the set a dangerous precedent? joining us now, command cyber, orran, area 1 security. thanks for joining us. >> thank you for having me. >> so first tell us which side you come down on? is it apple's or the fbi who is right? >> well, i think we all have a common interest, which is to make the internet safe and that's not putting government against technology companies or technology against government. but rather, us working together and creating bridges so we can achieve a shared out come. >> right, but the question is does this make us less safe in apple is forced by the u.s. government to unlock what it is calling a back door to the iphone, setting up what could be a vulnerability to hackers? there l that make us less safe? is the government wrong? >> i think it's clear that anything that weakens the security of data protections across the internet on specific devices with specific technologies is not in the best interest of either government or consumers or businesses. you know, the iphone has long been considered one of the most secure products, particularly for enterprise customers, and anything to degrade that, either perception or in reality, would be extremely troubling. >> but the government is arguing this would just be a one time thing. just a specific court order request to help them track down what was a terrible terrorist incident that called 14 people in this country in december. >> look, there is no doubt that we face serious challenges, whether terrorism or nuclear but the government asking for what they're asking for a little key, casts a frpretty large number o the over all security of the worldwide web. that's a slipperly slope and needs a more shared response between private tech companies as well as public government institutions. >> you see, oren, the problem seems to be whatever your view, the doj and the fbi have chosen very carefully. they'll ignite very, very strong passions because it involves terrorism and terrorism on the soil of this country. if tim cook is seen to be belij rent by some, the backlash by congress and others could be greater. you know as well as i, the security forces have been at congress for a considerable amount of time to get movement here. we thought there might be bills brought onto the floor. this is a big process. they've chosen their moment extremely carefully here. >> well, simon, i think you're absolutely correct. you know, we have a democratic and judicial process. i'm not a jurist progre. everyone understands the seriousness of the situations and kind of the aftermath of san bernardino, but the reality is that last year, statistically had half of their information stolen by cyber attack. we have a large issue to address here, security issues. more cooperation between technology companies and the government, both here in the united states as well as internationally. >> i'm not sophisticated enough with the technology. would it be possible for apple to unlock the security code for the government in this instance, and then lock it back up? doesn't it have the capability to do that? >> well, think what you're dealing with devices, it's not an individual device this particular iphone. i think what apple is suggesting is that this little key that the government is offering, or asking for, create ace slippery slope could be made vulnerabilities for the millions of phones that are deployed around the world, and set a precedent that could be dangerous. we'll see how the courts play out on that. but i think that over all companies and the government need to be working much more closely together and the sort of divisive rhetoric here is something we need to move past. we're not going to be able to achieve our goal, which is to make the internet great and safe and a great economic country. >> you keep coming through that people should negotiation. it's a very. >> i'm not suggesting that they negotiate. i'm suggesting there is technology and privacy solutions that can be cooperatively worked out. remember, you know, the internet that we're talking about here, that was created through public academic and government partnership. and so to suggest that we need to litigate a solutions, i think would be -- would not be a great out come and would erode some of the confidence that customers have, consumers around the world have in these devices and it would limit companies like apple and google and facebook's ability to expand their market presence internationally. >> i think silicon valley would agree with you. we have to leave it there. thank you very much for weighing in on this contentious topic. >> all right, thanks so much. >> when we come back, shares of go daddy sinking after the quarterly results, getting him by the strong dollar. blake irving joins us live for a first cnbc interview in just a minute. systems... paradigm-shifting. its technology-filled cabin...jaw-dropping. its performance...breathtaking. its self-parking...and self-braking...show-stopping. the all-new glc. mercedes-benz resets the bar for the luxury suv. starting at $38,950. ithere was 14 of us in a four bedroom apartment in the projects in boston. to be the first, actually, kid to buy a house in my family... ...i just realized that, i'm the first kid to buy a house... ...it's a very proud moment. whatever home means to you, we'll help you find it. zillow. despite a nourt quarter earning beat. what can we expect going forward, blake irving, the ceo of go daddy. good to have you back. >> good to see you, carl. how are you? >> doing well. even on quarters where you post positive surprises, the stock tends to sell off afterwards. why do you think that is? >> i think, you know, software, i think a pretty high expectation for beats. we beat our number. we felt good about the quarter. we were up 14.4%. on a constant currency, 17% of the bookings line, we grew, 30%, unlevered free cash flow nearly 150%. the market reacts. gosh, the market has been so peculiar as of late that you know, look, we're going to continue to deliver the business results by rolling our strategy, continuing to be consistent. it's a subscription model, sas based business. expanding internationally, went over to 11 new markets. did all of the work entering asia. we entered all the asian markets surrounding china and did that within our 2015 budget, which is pretty amazing. it shows the ability to actually get operating leverage while you're going global. >> you talk about 4 x, not alone here. walmart saying the exact same thing today. can you characterize how hard you think it's going to be beyond the current quarter if you can? >> you know, we think that we're going to have very similar, you know, similar headwinds. we figure about 200, 300 businesses points of fx, down the middle for the rest of the year. that's the way we're planning it. no upside or significant downside. >> blake, i'm thinking back home, stateside, nfi b surveys coming under pressure, a lot of small business owners expecting to pay more in wages. wouldn't that impact their willingness to either start or maintain a domain? >> you know, it's interesting, carl. we have a -- we are not counter cyclecal, but people in a large business, and perhaps their roles or jobs are at risk, have an idea, do it for a long time, get a domain, stand up a digital presence and start something. so even though the small businesses and remember, that the businesses we serve at go daddy are pretty small in size. sole propriet things just getting started. just have an idea. >> blake, i guess you're note getting a lot of action from the campaigns. what happened with jeb bush.com. why did you mention it on the call? >> you know, we did mention it on our earnings call yesterday. the -- for those of you who don't know, if you type jeb bush.com, you'll ends up the donald trump's site. one of the things you need to own your own eye density, all of the things that are around it, whether it's dot com, you'll want to be in possession of your own domain name, or things can go horribly wrong. >> blake, we were talking about this challenge from the dog against apple a couple of moments ago, people are talking about it again today. i would be interested to see what view you take on the unlocking of the iphone and where the tech community sits as a group of people. i remember the first time that edward snowden, for example, was beamed into a tech conference, he got a standing ovation. i think the moment that the satellite came up. where do you stand? >> well, you know, look, we feel it's our right and our frankly our obligation to protect our customer's privacy. so we have a lot of information that we host on our servers for our millions of customers. we do respond to subpoenas and government documents when they're issued. but you know, honestly, the whole notion of providing an open door hacking your own system, and applying an attack vector into your back end so whether it's the government or anybody can use it, and the key, one of the key issues i think is that if you are providing an attack vector that allows folks to go, call it a back door, call it whatever, go into your servers, into your operating system and get private information, there is no saying that over time, that can't be used maliciously. once it is there, once you have figured out how to do it, it is a pretty slippery slope. my dad was an fbi agent for 22 years. i respect the government law enforcement. i respect local law enforcement. they have a tough job. it sounds like something that's going to have to be fought in the courts. and i think that most of tech falls on the side of protecting privacy, but also, trying to help government when it makes sense to go as deep as they want. and some places, it's just overstepping. >> well, you're definitely right about the court bit. we fully expect that, blake. good to see you. thanks again. we'll see you soon. >> thanks carl, good to talk to you. >> ahead on the program, both dish and discovery trading lower today on their quarterly results, and we have an fcc vote to come through. more on both of those, after this break. hey, jesse. who are you? i'm vern, the orange money retirement rabbit from voya. orange money represents the money you put away for retirement. over time, your money could multiply. hello, all of you. get organized at voya.com. ngo to ziprecruiter.com and post your job to over one hundred of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. and now you can use zip recruiter for free. go to ziprecruiter.com. all across the state the economy is growing,arts today. with creative new business incentives, the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. like in utica, where a new kind of workforce is being trained. thanks again. let us help grow your company's tomorrow, today at business.ny.gov here at the td ameritrade they work all the time. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade. welcome back to "squawk on the street," i'm jackie reporting from the department of energy, weekly natural gas storage report. withdrawal of 158 billion cubic feet. in line with expectations, but a little less than the five year average. let me put it in context for you. demand higher because of the blast of cold air that we had over the last week or so. but if you look at the ten-day forecast, which was what traders watch when it comes to nat gas, we're looking at above average temperatures in most parts of the country. meantime, matt gas under the pivotal mark, more than 3% on the day. last time under $2, it was because of expiration. we aren't going to expire the march contract until next week. down 10% in a month, and 20% in three months, that's because this winter has not had the gusto we've seen over the last couple of years. remind you, we'll be back with crude data, part of what we're seeing the api and the lift this morning. send it over to sharon epperson with the business news updates. >> here's what's happening at this hour. president obama tweeted he will travel to cuba next month to, quote, advance progress in efforts that improve the lives of the cuban people. elv obama the first u.s. sitting president to visit cuba since calvin coolidge in 1928. six turkish soldiers killed. the military said a handmade bomb detonated by remote controlled while they traveled in a military vehicle. the blast comes a day after a car bomb attack killed 28 in anakara. toyota rerecalling 28 million vehicles. seat belts, 2005 to 2014. and filipino boxer manny pack yoe, following his statement, calling gays, quote, worst than animals. he says he is looking at other brands to sponsor his clothing. the boxer has apologized for his remarks. and that's our cnbc news update for this hour. back to you. >> thank you very much. the fcc kicking off its monthly meeting in d.c. right now. expected to vote on a proposal that could boost cable box competition. live in d.c. with the details. what should we look for amon? >> fcc tom wheeler, just getting seated over at the fcc. later on in the session, they'll bring the measure up for a vote. all about access to the set top box that the cable industry now provides its customers, tom wheeler has criticized that process, ultimately customers being $231 a year to rent that box. this proposal would allow other companies to produce the interface by which people get their video on demand services. the cable industry as you can imagine doesn't like the proposal. they've been lobbying against it. companies like apple, google or tivo could get access to the cable box market. we're going to watch here. the process is they expect to have this vote today, but after that, a comment and response period. so final rule making here could be a while from now. of course, i should note, guys, as we watch this hearing that our network is owned by comcast corporation, which is of course, involved in this debate. guys, back to you. >> without wanting to mention the parent company, that's a very big divide between the technology that the cable companies. time warner on the weekend, you'll see lines of people who are returning their set top boxes and reducing their monthly charges, because the time warner app is so good. if you look at verizon, however, the app is really, really, for my own experience, way below par. so you know, some are meeting the technology head on here and some are not deciding not to oh do so. >> the industry has argued there is innovation in this space and they should be allowed to continue to innovative and be able to come up with new offerings that customers will like. wleel letter is saying if you open it up for other customers to get access to the top pox market, you'll have a lot more innovation and all kinds of products and services that we can't imagine at this point will be out there with that kind of competition. the industry simply doesn't like that argument. they don't want to hear it and they're going to fight it in washington. >> thanks a lot. speaking of video being distributed, whether over cable or broad band, we did get reports today are one programmer and one distritt bore ter. start with discovery. both stocks down in this case, whether it be discovery, which is down almost 5% after the company reported numbers that were -- it is above. they were bit below the estimates out there. $0.34 versus had one sent estimate. they were hurt by the dollar, of course, half of the revenues at discovery comes from overseas and of course the stronger dollar did pressure those excluding fx, which they like to do. discovery's revenues up 10%. but when you take it out, you get a much different picture. in fact, revenues were down -- up 2% on reported basis, adjusted eps, down 4% for the company. on the conference call, ceo david, near trends are healthy doe messcly and we expect double digit growth, growth is locked in. they always like to say this, long-term affiliate agreements over the next several years due to contracted price escalators each year. the cable companies pay a bit more, whether over here or overseas. did get asked the question on the call as well about the changing dynamics within the business itself in terms of the skinny bundles, a lot of talked to about some comments from the man who runs espn. he said listen, in 2015, there was all this noise around skinny bundles and i've said before, the majority of programmers have contracts for the next several years. so the ability to start to change when it comes to these bundles, the way you offer service is going to be another cycle. that's going to be several years away. minimum threshold agreements from the programmers, they have to be carried on a certain number subscriber within a certain cable universe and nbds we like to call them, so it may mitigate how many can be out there. real quickly, get to dish. complicated report this morning. just going through this alone, accounting issues and things they have here is very difficult. they did seem to benefit from a massive improvement in interest expense that did seem to help reported earnings number because they started to capitalize, u.s. three licenses, of course, that being spectrum, where they have a great portfolio. what dish is going to do with d. noon is the conference call. charlie will speak then. we'll get more insight. talking about over the top, offerings, sling tv was one of the first out there, but again, complicated to figure out exactly how many subscribers they'ved added. 220,000. what was a significant decline in people actually take the good old dish satellite service. carl. >> all right, david, thank you very much. when we come back, an exclusive with the ceo of marriott that is coming up during squawk alley, rev pars on the call. dow up 23 points. back in a minute. is it time to get short the small company stocks, that's what one technician tells us. find out why at trading nation, march "squawk on the street," coming up. welcome back to "squawk on the street." check out what's happening with material stocks. best performing s&p 500 sector is however lag anything today's trade. you can see the worst performing sector in the s&p down by a half percent. weighed down by names by new alcao, bear market territory, something referred to when assets are down by 20% from their recent highs, simon, a focus, momentum trade for quite sometime. keep it up in today's trade. >> indeed, tom. thank you very much. rick santelli at the cme in chicago for this morning's exchange. good morning, rick. >> good morning, simon. where have all the oil speculators gone? i don't think they've gone any where. i think they turned their card over that. was the title of a piece penned by the following gentlemen, brad schaeffer, my guest today. brad, thanks for taking the time. >> it is a pleasure to be here. thanks for having me. >> listeners viewers, off camera, i said five or ten off bets. this has cracked the list. what i like best, brad, and you can expand upon this, is the noeks that the last time oil was at $100 in the front was i believe around july of 2014. i look up at the board now, i see that oil is trading around 33, almost $34. you know, there was times we were at $150. how did we get this correction in your opinion? >> market forces took over. supply and demand. like it usually does. that was really the gist of the piece that i had written, which was that i had seen so many pundits out there basically the moment the market started to get to a level that they felt was uncomfortable, their immediate reaction was to run to the federal government to have them change the prices, and as you and i know from being in the markets, eventually they do get back into alignment with supply and demand. that's what you're seeing happening right now. it just takes sometime. that's all. >> absolutely. let me get you to pause there. you know, i remember, so clearly for so many years, rig, speculation. >> right. >> you mentioned the senate finance committee, holding hearings, i remember that like it was yesterday. some of the candidates, i don't mean to pick on anybody, but sanders saying this is the enemy, look what is happening. listen, i get it. but now let's move to present time. >> right. >> central banks have taken over much of the economy trying to control outcomes, hearts might be in the right place, but to me, this is the issue. market forces work things out. they don't pick winners and losers. >> right. >> maybe we should left market forces work on the interest rates, gauging global growth. do you see a bridge there? >> i think the almost zero interest rates you saw coming out of the fed had something to do with the rally in commodity prices overall. a lot are dollar assets, and economy 101, assets devalued is going to cast more money to buy one barrel of oil than it used to. i think also, one of the good things you see, when the prices did go up, it encourages more exploration, more technology. you see like horizontal drilling now, which is part of the reason why the united states has become so much more energy independent than it used to be. you're seeing fracking, oil and gas in the last five or six years have created about $1.3 billion. >> i guess what i'm trying to get at more macro, if oil was at $150, all the politicos or people on other channels that were calling for, you know, investigations. >> right. >> that isn't the way markets are supposed to work. so i guess what i'm really looking at, there is something to be learned about the correction in oil that transcends oil into all markets. your final thought? >> right. i mean basically what you're saying is that you believe that the adam smith invisible hand should be applied across the board, whether it's oil, interest rates or the global commodities market as a whole. history shows time and time again you do more harm than good than trying to jiggle the market through banks and what not. do what it wants to do and it will eventually get where it needs to be. >> thanks for taking the time. make sure you send me your next so i can put it on the list. simon, back to you. >> the mind boggles to where that might be, having said that. pledge and scrubbing bubless, one of the united states companies becoming a global company to combat the zika virus. sc johnson's plant in pleasant, wisconsin. welcome, mary. >> mount pleasant, wisconsin. thanks so much. bug spray and insects billions in annual sales. sc johnson began boosting production, knowing they would be important tools in fighting the zika virus. carried by the mosquito, a public health emergency. suspected of causing a sharp increase in babies born with microcephaly in brazil or abnormally small heads. johnsons run the family owned firm, the firm's production of bug repellant is up 900%. in the u.s., it's on the rise as well, at this plant, it's now producing off 24/7, and plans to increase at a mexican plant too. to be sure there is no disruptions, they're working closesly with its suppliers. >> the most critical component right now is supply of raw material, which is deet, which is the active ingredient in off right now. but we have about five or six suppliers around the world, and each and everyone of them is beginning to ramp up their capacity now to help us. >> the firm holds daily meetings to keep its staff up-to-date and also working with governments and nonprofit agencies like the red cross to make sure the repellants are sent to the places that need them most. as the weather cools in south america, it's going warm up here in the u.s., and that's driving as what they're seeing as a rise and demand in some southern states like texas and florida where there are concerns that mosquito-borne zika virus could spread to. already seeing a pickup in demand here in the u.s. as well back to you. >> mary tom son, i wonder if it actually works. thank you from mount pleasant, wisconsin. >> it does, but you have to spray it all over. >> oh, that's different. >> when we come back, walmart as you can see in the red, worst levels weighing on the dow after the quarterly results. what should you be doing with this stock? we'll talk about it in just a moment. the dow is down three points. shares of wall street are sliding after the company reported lower results. the outlook that they downgraded in the u.s. sales, is that what is hurting the stock today? >> yes. sales fell short. they came in at 60 basis points. wall street was looking for 1%. guy dance was a little bit light on the comp store sales line. they guided to .5 and street was looking closer to 1.3. that's a fixation for investors as you look at valuation. this is trading at 14 times pe and they guided it down to 6 to 12% but that kind of valuation relative to growth wasn't good enough in term of the stock. >> if you look at the why oliver, the explanation was store closures and the stronger u.s. dollar so can you give them a pass for that? that some of those things are out of their control and the other one is part of their turn around effort. >> those are factors that lead to the full year in terms of tweaking the full year revenue guide from positive low single digits to flat. we think we're a little bit more worried on store traffic. so store traffic was up 70 basis points. however that's a deceleration from over 1%. so there's a little cautious there and that's more at the core of the business. i would say strategically a couple of points came up. firstly, food deflation. meat and dairy is impacting comps by 1%. also growth slowed a little bit to 8% on international weakness. >> they were talking at the online grocery business that they have been investing in and finding that a lot of people ordered groceries at an atm when their kids go to sleep. do they have the potential to win online groceries? it's becoming increasingly crowded? >> yeah we think that's a big long-term positive. keep in mind food at walmart is 60%. they want to win with convenience. this buy online pick up in store adds tons of convenience for consumers. that's a long-term story and opportunity. they do a great job with this and as the u.s. consumer looks to order food this way and looks for the shortcut it will be a competitive advantage overtime. >> oliver i guess the days of 30% e-commerce growth are over. how concerned are you about the slow down? >> that is a risk factor and walmart attributed a lot to the international markets. china, brazil, u.k. as weighing down their e-commerce growth. e-commerce in the u.s. they seem relatively happy with but the days of e-commerce growth outpacing store growth are still here and it's still going to be an exciting future and we'll look for walmart to reinvent how consumers get food and consumables and we're positive on amazon and amazon is making big strides all across the board here. >> oliver just in the last 30 seconds that we have and we should know that comps are horrible for walmart and the u.k. but in the last 30 seconds that we have what is this read today on the underlying state of the consumer? we had a clip earlier from the ceo that seemed quite robust about where the american consumer is. is that your take away from the conference call? >> well, i am still pleased with the consumer. walmart has specific company issues. we like ross stores and costco and benefitting from lower gas prices. and rising minimum wage. we're positive on the low to middle income still. >> a $66 price target. and thanks for joining us. approximate. >> thank you very much. >> still going. >> takes to the air almost immediately with your preview on cnbc morning. >> good morning, well google ceo lending some support and his entire not to have an iphone, also the fcc is going to vote on something that could change the cable experience forever. should they or shouldn't they? and finally marriott's ceo is going to join us with you and all of that coming up. on squawk alley. or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss 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so coming out with a drop. hah was a surprise that sent them higher. 2.3 million barrels but this is a build. 2.1 million. we're seeing a reduction in a gain that we have and we're

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