Transcripts For CNBC Squawk On The Street 20150217

With eurozone partners. Apple shares poise for a new alltime high. Vehicle integration, watch demand, and lengthy profile on johnny ive in the new Yorkernew Yorker magazine magazine. Starwood, what it means for the companys future. A shortened trading week with the dow above 18000, s p off the record closing high. Futures lower after talks between greece and eurozone finance ministers did collapse. Head of the Ministers Group says greece has until friday to request an extension of the bailout ten days or so jim, until the credit line does go blank. It does feel a lot like the United States and the brinkmanship and we knew there wasnt going to be a deal until after. What i expect will happen the talks will collapse until not the day but a few days after, because theres money found. Remember that . We found a little money . I think the talks are about whos going to blink. I still feel theres going to be a stretchout of debt but you have to hear there were talks, on friday and thursday, we heard plenty of sense there was a deal apparently first offer the greeks wanted to take and then pulled back. Taken away. Well come in every day, and sell bristolmyers on it and midday people buy bristolmyers. Not a formal deadline. Right. They have until this friday, potentially get an extension but bailout goes until the 28th. Thank you. Then early march until you start worrying about running out of money. Bank deposits starting to disappear and thats a concern. Thats what would cause ireland to come to the table im urge people to be this is not like the old days. We saw some car registrations this morning, spain is very strong. We had a series of companies that reported last week. Italy a standout for retail sales. Were not where we are. I think greece can be isolated. Take it with a grain of salt. It not going to be resolved this week and its not going to bring us debt. Threeyear bond in athens 19 . Car sales, up 6. 2 in january. Thats the 17th month of increases. Doing better. Low inflation doing better. Standing by your green chutes. Go over the quarters last week Columbia Sportswear classic Discretionary Income stocks sketch ofs numbers were extraordinary. Cisco said resurgence of spending for digitizing was incredibly strong. Dont be surprised by hearing continued, creative good numbers. Germanys very strong. Even r. I. M. Would you argue theyre getting the tail wendwind most from currencies or oil. I think currencies playing a big role. Domestic spending is up and thats clearly oil. Well keep our eye on that obviously. Best week for tech last week since october back here in the states. Now apple is poised to open at a new alltime high. Working on aan apple branded vehicle. The journal asking suppliers upper to 6 million watches in the First Quarter and a lengthy profile on the new yorker apples design chief revealed he and the retail chief are working on redesign of apple stores 16,000word piece, fascinating look at tim cook trashing google glass. Ive been waiting for erins to make her move. I find the stores, what she did was so exciting and she did a lot of Customer Relations management. You can see what she did if you go to salesforce. Com site. In terms of apple car, piper says its a favoryear initiative. Remember we know steve jobs wanted to solve the problem of the car, there were no plans that he left but i understand its been a dream come true if they could do it. Just in terms of the watch, ive been saying last week my cardiologist very involved with this, ben lewis, for his name. And they cant get the high Blood Pressure thing to work. The journal outlines today, had to go with pulse monitoring. No one can get it. The holy grail a spike in your watch and goes to cardiologist and you go to the hospital. And this is what im told many brilliant people from cal tech stanford, and they cant get it to work yet. But thats the thats what makes it so it goes beyond a watch. But what if youre liking talking to your kids and theyre getting annoying, youve got a couple of teenagers and Blood Pressure goes up have to go to a hospital . Theres a certain spike that does anticipate a heart attack. We all have a different relationship with your kids. True. Ive had that spike. I bet you had. I bet the watch would have sent me exactly. Dads got to go to the hospital. If i had that watch it would be like starbucks your third place, overlook hospital would have been third place. You mentioned piper note today. They think cars five years out. Yeah. But stand by overweight price target 160, right . That is largely going to be about the distribution in april . That would be the market multiple and they get that up. I still believe that the reason why you own it is its an undervalued stock. People dismissed the watch initially, which is a mistake. Obviously i wanted the Blood Pressure thing, heard that wasnt going to work. It gets up to market multiple people can say the reason why nasdaq hit x as opposed to the way it did in 2000 a lot of stocks getting the pricetoearnings multiple of a clorox or kellogg. Whats interesting, the affinity for all things apple now, contrasted with we mentioned google glass briefly, it comes in the new yorker profile contrasted with i dont want to say gloom they im using the word less than perhaps affinity for google. Is it benefiting within flow of funds kind of thing. Great question. My Charitable Trust owns. Saw a glimmer of hope in the last quarter. One point they said we care about the share price, we care about doing well. You know it like well are you is it really that bad that you have to say that on air . Because there really were a tremendous number of initiatives that just werent making money. Also the selling, has reached a new level. All of it obviously preplanned. And theyre going to have control no matter what. But selling stock. Selling it. Look, first take no money. Hey, costello another reprieve. First the quarter and then guys selling more aggressively. Not positive. The Charitable Trust owns. Did feel good about the Conference Call. When you see that level of Insider Selling its like are they going to be removing themselves . These guys are very rich guys and thats what they do. Steve jobs did not do that. Jobs did not have different classes of stock did not have hard control. Good point. Which they do. But this is google is and will be forever. I mean look google look at office when you look at any company thats about to merge go to the ftc and say google can come in and wreck us orbitz deal a good example. Google hasnt wrecked anybody, part of the problem. Weve been all waiting for do toll wreck tv. Waiting for google to wreck the networks travel. It hasnt wrecked anything. If the idea is theyre going to wreck something, the stock will go higher. Right now they seem to be the last the google glass shelved in the Conference Call a throwaway. Come on, guys. You know get some religion. Do you worry apple from s p earnings stand point or stock stand point is shrouding an otherwise weak economy . All of the great metrics if you strip apple out, economy looks nothing like you think it does. I would if the semi conducts are didnt hit a high. Im not concerned. I see 17 Million Units for autos, housing coming back. Housing index hit a new high on friday. I think thats very important. Were seeing bank loan that came out from the st. Louis fed on friday night that were extraordinarily strong. So theres a lot to like. When i had American Electric power on last week the southeast is very very strong. Waste management reported a good number than as part of residential, nonresidential construction. I see a lot to like. I not backing away. Yeartodate nasdaq up three times what the dows done this year. A lot of that is you know who. Done without biotech this time. Biotech stocks running in place. They have. Celgene gave up a lot of the gains in a short amount of time last week on patent concerns. It happens periodically. The shorts run with it for a while. Gilead hurt by the price wars and hep c, regeneron recommended today, regeneron has fewer problems but theyre in a war with amgen. That group has not led us. Its semis. By the way, software hasnt led us. Microsoft a big disappoint. Apple is important. But tesla hasnt. No. Oh bringing that up huh . Funny, i checked into twitter a few times this weekend and its i almost, you know, its like youre in i street fight sometimes. I want to come to your aid but i cant figure out how to get involved. Those guys cam with a gun and i came with Chemical Nuclear weapons the gun thing, a knife im have tactical nukes and things people havent seen and havent been tested. Active over the weekend. I was active. They come to us cramer blocked me can you help . My instinct get in there as it would be, of course but glad youre handling it. I have a good time on twitter. You dont need help. Guys that dont like it . You know what sorry . Bother someone else. Like jackie chan. Ten guise coming around. More like chuck. But ill go for that. No. Jackie chan so cool. Can run up walls. Bruce lee. For 60 years old, i can do the chan if i have to. When we come back tale of two Companies Making changes at top. Later, ben and jerrys cofounder ben cohen, a message for washington and wall street. Stick around to hear that. One more look at futures. S p on track for the best month since october 2011. The dow, 84 points shy of intraday high. Back in a minute. Daughter do you and mom still have money with that broker . Dad yeah, 20 something years now. Thinking about what you want to do with your money . Daughter looking at options. What do you guys pay in fees . Dad i dont know exactly. Daughter if youre not happy do they have to pay you back . Dad it doesnt really work that way. Daughter you sure . Vo are you asking enough questions about the way your wealth is managed . Wealth management at charles schwab. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts mean your peace of mind. Now you can get the works, a multipoint inspection with a Synthetic Blend Oil change tire rotation, Brake Inspection and more. 29. 95 or less. Changes in the top of two companies, starwood announcing ceo fritz redesigned by mutual agreement. Adam aron named interim ceo, former ceo of vail resorts and norwegian cruise line. Steven newman stepping down replaced by the companys chairman. The oil Services Firm slashing its dividend by 80 , amid sliding crude prices. A lot of impairments, jim. Theyre always a mover, not always because of management though. One of the reasons rig is trading up people felt they wanted to preserve the capital structure and starting to lose money, obviously, big rollover. Rigs are the oldest in the group. One of the reasons also that its not going down a lot, pete millers the chairman and pete miller has tremendous credibility, being lent to transocean. Deutsche note which has more downside is true if you think oils not done going down. Contracts are rolling over. Twoyear problem here. Youve got to be cautious. On Fritz Van Paaschen, fritz gave in and did the starwood like. Being the ceo of starwood. And adam aron i think, not going to be a i think a takecharge interim ceo. Great job at vail really great job. Hes been working at the sixers, the sixers i think are an Exciting Team but dont show it on the record yet. Ive always liked adam. Both guys frequent guests of the shows. I think that star wars starwood star wars comes out this year starwood too slow to keep up with windham and marriott. What i heard from somebody close to the board, frustration in terms of the faith in mr. Van passionens ability to execute, they were late to do things. Yes. Late to the spinoff. But got to it last weekend, benefited the stock. Late to the buyback. And most importantly, not gaining scale at the same rate as peers. Bingo. When youre managing properties for a fee, not owning the underlying property theyre not adding room quickly enough. Why does interim ceo execute better than a former ceo . I think interim ceos there to say dont fall behind youre going to fall behind in 2015. Really push this company. Youve done it before. Aron is not the kind of guy who could take interim he may become permanent ceo. Right. That will be five or six month before we know. I think hes going to blow the numbers out in 2015. Really. Put up a lot of hotels. Ive got to tell you, steve holmes at windham has done a remarkable job. Marriott. These companies are taking advantage of the fact not a lot of new hotels built, its been greenfield for them to run. Fritz has fought it. Fritz is intellectual in a business where people want operators. He did some innovative management things took his team on the road for 30 days. Live in china a while. Hes also a charming guy. Not saying that charm doesnt work. Im saying they why did he take so long to split the company . Kept getting pushed gave special dividend they were terrific but not what the rest of the shareholders wanted. He had seven years. In this environment seven years is a long time if youre not performing at top of the game. Better start looking over your shoulder. Change here in early 15 gives mr. Arnon to effect the numbers at the top line. This is more International Company and peers are benefiting nose focused on north america, because they are getting hit internationally by the dollar as we know. Its not the greatest time to have more of your mix, if you will, international than competitors. His decision to go internationally. A globetrotter. I mean you know it will be good. I think adam aron is a very bright man. One of the pioneers of hospitality hospitality, going back to pan am. A philadelphia philadelphias a small city. If youre involved in philadelphia, you know him. And what you know about him is that hes not going to sit back and say, im going to spend all of my time finding a guy. Hes going to put up hotels make moves, a lot out of starwood. Starwoods a good place to be. Stocks go up for a reason. They go up because people say, this companys going to be much more aggressive, fritz was i think dragged kicking and screaming into hotel life. And adam is a guy that hits your start. A good guy. Fun to watch. Cramers mad dash as we count down to the opening bell. A look at premarket on tuesday after a long weekend. More squawk on the street from the nyse straight ahead. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Say youre a finance guy. A farmer. A researcher. You used to depend on experience. The internet. Your gut. Today you can use ibm watson analytics. It can make sense of all kinds of data. Uncover hidden correlations and new opportunities. And give recommendations with more confidence on who will buy. What to make. Where to plant. Which helps you make smarter decisions. Theres a new way to work and its made with ibm. Let it go let it go raising numbers, disney, on frozen. Lets get to retail this morning. What do you want to talk. Barclays downgrade they initiate nordstrom with a sell. They have macys as sell. Saying that nordstrom has to spend too much on omni channel, it looks like its peaked out. They report thursday. So, a lot of people are saying this is a great domestic way to play things. Terry lundgren macys may not like blue mercury but the stocks not expensive. One to watch. Be careful selling nordstrom because longer term a great plan of action new york city doing a slow rollout canada do have a good omni channel. I think the idea of blowing out a nordstrom mid screen is not a good one. What aboutplace . Macys doesnt have the growth that nordstrom has. Its not a good thing to bet against terry lundgren. No. Nordstrom watch out. People are going to presume they know something thursday. They have been spending billions and the stock has done quite well. They did blowout the quarter a couple of times. And i dont expect a blowout this time but would not get rid of this. Too good a retail. Fits my domestic consumption story. Right. Where else do we want to go here on mad dash . People continually impressed by everything that goes into an auto genuine parts reported good noom number Goodyear Tire reported a good number. This is a very tough industry, a lot of people accused many Different Countries of dumping tires. If your business is strong because autos are strong, goodyear goes higher. I think goodyear inexpensive stock. Its not my favorite. At any given moment the Chinese Communist party can say lets destroy them and takes a while for the u. S. To figure out what theyre doing. If you talk to monroe theyd tell you that. Goodyears good for a bounce. What happened with the cooper tire deal . People are highly leveraged deal. Look anything involved with auto, whether genuine parts, goodyear, everythings dragged up by the fact were making 17 million automobiles and its a sucker play to bet against the autos 2015. Keep an eye on autos and other stocks. Opening bell on this tuesday. First trading day of the week just a few minutes from now. Stay with us. Squawk on the street. What does it mean to have an unlimited Mileage Warranty on a certified preowned mercedesbenz . What does it mean to drive as far as you want. For up to three years. And be covered . It means your odometer. Is there to record. The memories. During the mercedesbenz certified preowned sales event now through march 2nd, youll get complimentary prepaid maintenance and receive your first two months payments on us. Only at your authorized mercedesbenz dealer. Youre watching cnbc squawk on the street, live from the Financial Capital of the world. Opening bell in over two minutes or so. Busy week ahead. Well cram a lot into four short trading sessions. We get inflation data, earnings from the like of marriott and walmart. A lot going on not to mention whats happening in europe. Walmarts going to be important. Story about Discretionary Income has been playing out. Hearing that over and over from many of the Apparel Companies that reported last week. Its really kicking in the spare dollars are kicking in. I think that thats one of the most important quarters. Focused on eog, because thats the growth oil and theres a lot of people who are saying that oil just bottomed in the last since january 28th. Theyre not takinging that away. Thats something. We havent talked about oil this morning. Interesting you mentioned eog. Im looking at a quick chart. General, 120s the high. This has been lower, a lot lower, eog. Its come back because it has very low finding costs. The drilling costs have come down. First, you used to have to drill for 21 days now 8. Second it was 29,000 now its 22,000. You have this incredible raw cost story coming down. The First Quarters going to have big Production Growth when we look at these together and no ones cutting Production Growth. Theyre cutting cap x. Big Production Growth does not lead to higher prices. Right. Thats why i think that the idea of going 70 80 is not going to happen. I that 43s going to turn out to be the low and the 20, 30 call are in sync with the fact there is demand in low 40s. We have seen some of those. Zillow you mentioned, a miss on higher expenses. They might close truly at today and average monthly unique up 41 from a year ago. Its very interesting because how things have changed. The ceo you read about it on twitter. You, he does projections on twitter. I think he either likes to be right there at the end or likes to be twitter. The man is kind of the modern way of communications. And i didnt i thought it was more mixed. Agree with bob, a mixed quarter. But people are relieved its done. They have 100 of the market. Maybe people feel theres outliers. Theres the s p at the top of the screen. Opening bell down here at big board, its vista outdoor, chairman and ceo highlighting february 10th spinoff of vista outdoor. At the nasdaq the lion musical, with all of that. Twitter, you mentioned, jim, mkm out arguing for 62 target not 61 on hopes for higher monthly active users. Theyre talking about modernization. I think the stocks going to go i think it goes higher i really do. The trust owns it, making money on. I feel strongly what you needed was guys at top to say, we get what you want. Were going to monetize. Right. I think they can do it. I think its a twitter. Tempur dissolving stakes in facebook, alibaba, apple. Dave filings. Reluctant to attribute most those of to anything because david has taught us listen my views change. They do. If i react to filings and not the man himself i end up feeling that i am not not providing a lot of value added. As we caution people the 13 fs can be interesting but they are dated to a certain extent to your point, jim. Yeah. So its a point in time. It is worth at least knowing who owns what perhaps thinking about longer strategy they may have in terms of why getting into something or out of it. It not indicative of whats happening. When hes been vehicle tollocal to get wilson on, he cant. Can he still sell . No . Gm taken together the four hedge funds represent 2. 1 period of time of the outstanding. Appaloosa one of those. Big of the driver is brozen for this wilson candidacy which i argued as a result of the Incentive Fee associated with it. Capped a million in expenses without having to seek more money from sponsors if they were to run a proxy fight. Anywhere near enough money to do that given capped a million in expenses without asking for more. As ive said jim, Incentive Fee structure, perhaps, perhaps a fatal blow to his condition siweekend si. Well see. On the candidacy mer mittits theres an argument. Someone i have been found of taught me a lot when i was at goldman sachs. You learned by osmosis. Very not somebody that typically fund an activist site. Plus, i think he makes a compelling argument theres a lot of excess capital and can do more. I dont want to see them spend a lot of money building up a finance division. I imagine retailers might want that, car companies, guys who sell cars. I think theres a lot of capitalization. I agree in principle. I wasnt in favor of putting a guy who is not you can say hes aligned i like a nelson pelts, putting a guy on. We discussed it initially, talking about harry wilson this candidate potentially for gms board. But the Incentive Fee structure associated with the candidacy is 4 of the 34 of the appreciation in 34 million shares, thats a lot. Yeah it is. Thats a lot. A lot more than any other directors are getting at gm. I think thats a fatal flaw. But frank rosens has to be listened. Its not his style. Very good guy. Medtronic close to an alltime high, up 2 . Dollar one is a beat by 4 cents, last quarter before the acquisition of covidien. Cardiac and vascular pretty good . A lot of momentum. In favor of edwards life sciences, theyve got device to that doesnt require cracking of the chest cavity. 50 60 70 80yearold people can have that from edwards. Medtronics the merger makes it let dependent on the heart. Very smart. You do . Yeah. 3,000 employees. Medtronic. And Health Care Stocks terrific. Medtronic is one of them. Keep our eye on that. Obviously, did you talk macys at the wall . We did. Barclays underweight. The tough thing about macys because the last quarter wasnt that great, and a lot of people are concerned that macys doesnt have the growth that you want, just that they have generated a huge amount of capital, buy back a lot of stock. Extraordinarily wellrun. But look its raw storage, it tjx, theyve had the big move and Dollar Stores had big move. People people thats where Discretionary Income off of gasoline is playing the biggest role versus tiffany and that kind of thing. National Retail Federation issued their forecast for 2015. They dont count gas stations cars and restaurants but they are looking for 4. 1. A year ago it was 3. 5. It would be best year since 20 11 when they did 5. 1. I agree in principle. They miss badly the way to calculate black friday. I want to see other ways to calculate. The fact you said theyve missed different methods tells me that you know dont go too crazy about their numbers. Invest on bottoms up what the companies tell you. Give you good forecasts. To the degree we get monthly comps anymore at all. Ceos forthcoming about if you go over rick weissmans amazing call from vf he talks about disposal income how much it helped coalition of brands. Remarkably fabulous call. Sketchers said the same thing on mad money. Hes very good. Tim boyle, that took was up 7 on friday. Remarkable call. Discretionary income plus technology. Theyve been able to come up with a way to have down still be warm when its wet, remarkable. You mentioned the idea of Discretionary Income is starting to become a play if you will because initially on gasoline prices fall, we didnt see the pick up we perhaps thought immediately in retail sales, particularly in apparel but starting to to . Yeah. How long does it run for. I listened to Charlie Scharf hes been saying look 25 of is it spending maybe by the end of the year, 50 a lot of people saving. I think that charlie ill never say charlies wrong, hes keep or of the data it wouldnt surprise me to see if the span doesnt kick in earlier. Watching home depot, when spring comes if it does come its a news story if it does come, the tale of consumer spending. I talk about the stocks american express, extraordinary. You had it for them on friday. I had a tesla moment there. That was just they have not been they lost they got pants. Lost jetblue. Jetblue is apple i pay. All of their planes are wired for wifi. Americas best needs to say, listen we have a plan. Just because tremendous amount of our growth comes from costco cards, do not give up on us. We have a plan. It is not clear that they have a plan. So i would like to see it too. Its good to have a plan. Like plan b. Plan b is good sure. I know plan a sometimes doesnt work. You need plan b. You need a plan b. And were not getting it. They better call saul. Maybe they will. Yeah. Those kind of ratings, my gosh. Nice numbers. Hilarious, great show. With that dows down 53. Golds off 15 bucks. Silver having a rough morning. Bob pisanis on the floor. Happy back from the threeday weekend. Mixed market today. But largely to the downside. So we had a bit of early strength in Health Care Stocks. Look at sectors. Some of the tech group which had a terrific week last week was stronger at the open by and large, materials and energy industrials, financials have been open on the weak side now. We did close at new highs on all of the major indyexices in terms of size. Fridays, new highs in the s p 500, s p mid cap index, as well as russell 2000 trading to the downside. Health care technology, sort of leading here but industrial financials lagging. Put up the board for the major indices. We hit new highs as i mentioned on friday, mid cap, russell 2000 s p 500. Even the wilshire 5,000 which i dont normally bring up the broadest index of the u. S. Market hit a new high friday as well. Its remarkable. Across the board in terms of sizes. New highs. Even europe looking better. Look at stock 600, a basket of the 600 largest stocks traded on 18 european exchanges, the broadest look you can get at europe. It, too, hit the highest level. Right near the highest level since 2007 not historic but 2007. A lot of trend followers. People over the weekend, follow then trend, breadth of market improving. I have no problem with trend following. What im worried about is earnings situation. I noted q4 numbers coming down fast. Now q1 numbers coming down fast. For the first half of q1 first six week of the year s p 500, earnings have come down 7. 4 . That is a much stronger decline than you normally see in the first happen. Its normally 2 3 . This is the biggest first half dechine since Second Quarter of 2009. Its got to be based on some kind of fundamentals. When i see two quarters of deterioration, yes, its energy there are other sectors not so strong, you get a little bit of concern. Got to have a fundamental underpinning to the stock market. When you see this stuff, you get worried. This is whats passed around. Transocean, driller, cutting dividend but it wasnt the big surprise. They had a dividend of 3. 15 , 16 dividend. Absurd dividend. Average dividend for the energy play is 3 4 . Conoco chevron, everybody defends numbers around 3 4 . Nobody defends dividend at 16 . Thats a 3. 1 dividend now in line with average. The problem is high dividends are colliding with high debt and theyve got to figure out a way to get get down. Theyve got 10 billion in debt. They have 2. 40 a share times 360 million shares, thats what theyre going to save thats like 880 million theyre going to save a year. You can go a long way towards paying down your debt. They want to maintain theyre very high investment Credit Rating and thats the way to do it now. You can see the stocks down here. The stock was 40. Now its 18. But obviously, theyve got to figure out a way to keep borrowing money cheap, maintaining Investment Grade credit the main thing. The ceo also leaving there take a look at most of the Energy Stocks on a mixed side today. Some on the upside. Now theyve all moved down. A mixed open here. Pioneer, conoco apache schlumberger, halliburton to downside. Schlumberger and halliburton opening to the upside a few moments ago. Right now, the dow down 58 points. Back to you. Thanks very much bob pisani. Talking about Balance Sheets with transocean an upon part of the focus at investorverizon. Verizon held a Conference Call, the first one of the companies that made their bids and won spectrum at the aws 3 auctions that we spent a lot of time telling you about, successful auctions for the government certainly, taking in a lot of money for the treasury and first responders. 10. 4 billion the number spent by verizon. Less than people perhaps anticipated. Dish bid aggressively. And at t walked away with a lot of it. Tmobile small part. 8 00 Conference Call verizon summing up a lot of what it did, trying to explain the strategy behind it. Not huge headlines but worth sharing, verizon said we may look to the secondary market for more spectrum. Well explore unlicensed spectrum. Went on to say they expect to stay on track with deleveraging plan, and that gets to what bob was talking about with transocean. You do have enormous Balance Sheet with a lot of debt and enormous amount of cash flow at verizon. Interesting to note, deals they did in part to help pay for this spectrum, namely sale of the wire line assets frontier sale of the towers remember that was a big transaction. In fact that frontier sale jim, they paid 3. 9 billion in taxes on 10 billion deal. Wow. Huge. John malone would not pay that. No, john malone would be very upset. But a lot of companies would look for an opportunity to lessen a tax bill of that nature. I think it goes to verizons desire to say, were going to make sure everythings covered though weve got to pay 3. 9 billion tax bill on a 10 billion deal were going to do it, obviously they sole wire Line Properties that are low multiple to ebitda and included fios properties as well to frontier. Very disciplined. Strong cfo. Very disciplined. And they continue to be at verizon. Many people looking at the least their statement saying is there a possibility that they would look to lease stuff from dish because we continue to ask the Big Questions there, what are they going to do with their spectrum . Hard to say thats the way theyre going to go at this point, they did say they would lease spectrum for others. Does not sound like they need to do anything. Theyve been the best putting a network together. Nobody can deny that. Made perhaps the best decisions when it comes to putting that network together. Citi says dish is in play might be bought by verizon. That seems dish has been a win. I know. Dish has been a win. Hes put together a great spectrum position, although a loot of the spectrum depending who you talk to require new devices and enormal out amount of money for the buildout. You dont buy dish off of rumor about verizon. I dont think you do. Verizon, listen thats a tough one at this point. The questions what mr. Ergen will do are valid. Will he look to work something with the german for tmobile . Will there be would he be a seller . I dont know. We did get answers, at least from verizon. Right. Great report. Because i know people are really playing consolidation. Tmobile this week a lot of chatter about it. Dish has been a winner. Directv, people getting that deal going close with at t. Strategic rational for the at t direct deal escapes me. Wow. Yeah. Well talk about it another day. Okay sure. Lets get to Rick Santelli at cme group in chicago. Rick . Good morning, afddavid weep see treasury rates hoover at highest level since early in the year. Tens the second of january, look at 24hour chart as we hoover around that 2. 05 area. Yeartodate chart reveals what i was talking about. Havent had the yields since end of the year. Traders paying close attention to that level. 24hour chart of the bund up around 36 basis points. But even despite the notion that confidence, Business Confidence in germany better on current and even better on future expectations we see that the rates havent gone far. Yeartodate, havent had a major test of 40 excuse me since ecb meeting. If we look at yeartodate of tens minus bunds, close to 170, we havent seen levels since the late 80s. You wont pick up on that 20year chart. So thats why i picked the yeartodate to show that our rates definitely continue to move higher and even despite some better data in germany, not moving high maybe wait until march. Ten minus twos own yield curve, flattening. You can see on the yeartodate chart as it hoovers around 1. 41. The low point on year to date the flattest the curve was since july 2012. Foreign Exchange Year to date of euro versus the dollar ceasefire, no ceasefire its impervious to that. Its up now. Dollar yen big failure 1. 207 bank of japan not doing more additioning stimulus. Maybe thats the driving force why the trade has so much inner inertia at 120. Jackie, good morning. Good morning. Thats right, wti trading at 5146 now, brent at 60. 70. And we had a couple of headlines this morning from the iea, warning on production in the middle east, really due to the fact of lack of investment over there right now. Also, exports out of iraq are dropping. But this market is so well supplied crude continues to go down. I want to high lie nat gas is down 2. 75 despite the record cold temperatures weve seen across the country, not just here in the northeast. Traders are only expect it to be cold for another couple of weeks. Supplies are robust. Gold prices down 15 bucks. Really inching towards 1200 mark despite a weaker dollar today and the fact theres uncertainty in greece and ukraine. Sort of an opposite day theme here in the commodities pits. But explan nations really for all of it. Thanks a lot. Interesting how cold it is and nat gas not going up. Speaks right to the glut. Really important. Boston hit minus 3, coldest since 04. Can see the Green Monster . Talk about spring digging out until april. When we come back it wasnt what twitter Ceo Dick Costolo had been hoping for. Exclusive with irene rosenfeld, hear her game plan for growing the home of nabisco, cadbury and other consumer brands. Dow down almost 50 points. Goal down to 1212. Back in a minute. In my world, wall isnt a street. Return on investment isnt the only return im looking forward to. For some every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as fifty dollars. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade we looked for the best price and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Let me talk to you about retirement. A 401 k is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable professional. Would you trust me as your Financial Advisor . I would. I would indeed. Well, lets be clear here. Im actually a dj. [ dance music plays ] [laughs] no way i have no Financial Experience at all. That really is you . If theyre not a cfp pro you just dont know. Find a certified Financial Planner professional whos thoroughly vetted at letsmakeaplan. Org. Cfp work with the highest standard. Twitter Ceo Dick Costolo getting into trouble on a recent skiing trip. He tweeted, quote, day one skiing fractured collarbone. Ill do anything to avoid leisure, along with this picture. Not too upset about the stomach at 48. 91, jim. Thats going to take you back to halloween. Get well soon. You wonder how long i mean six months maybe hes got . Well see if things dont. That collarbone comes right back. Fourweek injury. Youre speaking about Something Else . Yeah i was. Missed how many games . Its tough. I dont see i dont see costello starting for any nfl team. Hes pretty tough on cross fit, well give him that. Stop trading with jim in a minute. But the mclass scans for danger. Corrects for lane drifting. And if necessary, it will even brake all by itself. It is a luxury suv engineered to get you there and back safely. For tomorrow is another fight. The 2015 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. [ male announcer ] your love for trading never stops. So if you get a trade idea about, say organic food stocks schwab can help. With a trading specialist just a tap away. Whats on your mind lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. Time for cramer and stop trading. Ill tell you, one group that done stop, the Cybersecurity Software security. A Small Company reports, started to pick up again, fire eye, cybr cyberarc great quarter, fire eye great quarter. Groups not done. It could go higher because cybersecurity is so important. These are a sweet spot for the market. Fireeye going back to spring levels. Doing a lot right. A very good quarter. Mad tonight . Waste management wm David Steiner continues to deliver. Theyre like this a play on residential nonresidential construct. Thats whoo generates most of the trash. People are talking about, huge buyback. Also ethan allen, disappointing quarter. Challenged by crate and barrel our house, challenged by european import restoration hardware. Lets hear how theyre going to be doing. It was not a great quarter. Theyre in transition company. Where did this hour go . Its gone. Its gone. Just as quickly as it began. Never get it back. See you tonight 6 00 p. M. Well, sir. After some serious consideration id like to put in my 15year notice. Youre quitting . Technically retiring, sir. With a little help from my state farm agent i plan to retire in 15 years. Wow youre totally blindsiding me here. Whos gonna manage your accounts . This is a devastating blow i was not prepared for. Well, im gonna finish packing my things. 15 years will really sneak up on you. Jennifer with do your exit interview and adam made you a cake. Red velvet. Oh, thank you. 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If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. Why pause the moment . Ask your doctor about cialis for daily use. For a free 30tablet trial go to cialis. Com good morning, welcome back to squawk on the street. Im Carl Quintanilla with simon hobbs, david faber, live at post 9 at new york stock exchange. Saras on assignment. Dows got moderate losses in the early going, down 32. S p down 4. Going to get home builder data in a moment. Road map for the next 60 minutes. Apple hitting another alltime high, the stock up 20 in the last month. Now theres rumors about integrating Apple Technology into vehicles. Find out what you should be doing now with the stock. Plus new read on what sites and apps people are using on smartphone. And ben from ben and jerrys has big ideas about Campaign Finance reform. He joins us live here at post 9. To diana olick in d. C. Home Builder Sentiment. Carl home Builder Sentiment down 2 points to 55 on the National Association of Home Builders monthly sentiment index. 50 the line between positive and negative. The positive still but builders blaming all of this rough Winter Weather on the february drop. We are better than february of last year, when sentiment stood at 46. The builders saying quote, downturn attributeable to the unusually high snow levels across the nation. The different indexs components Sales Conditions down, traffic, down 5 points to 39. Sales expectations flat staying in the positive territory at 60. We had a crew out in maryland saturday, five hours, one potential buyer came through that open house. Thats your buyer traffic going on in much of the nation due to the harsh weather. Remember, last year, though at start of the Spring Season president s day weekend, officially the start of the spring housing season we blamed it on cold weather but it turned out that slowdown went right through to the summer. It was because of higher prices. This year we have price moderation but very low inventory. While you can blame it on the cold now, we need to see more in inventory on the into the see a Spring Season. Thank you so much diana olick. Stocks modestly low, despite concerns over the greece debt standoff. Joining us this morning, tom lee, Fund Advisers founder. Good morning. Good morning. A pretty good run, as you point out in your note. You say that hedge funds are derisking and thats a bullish sign. It is. And its bullish in the sense that markets are capable of rising while a large player is derisking and thats going to provide fuel later as they rerisk and add buying power to the rally. What evidence are you pointing to on derisking . How do we know theyre doing this. We speak to clients constantly, so the anecdotes are definitely there. We like to track the hedge Fund Tracking data to the s p. Its been declining, its at the lowest levels in almost five or six months. All right. Derisking, why . I think everyone thinks theres a chance of an idiosyncratic event, right, whether its greece or something happening geopolitically or something, a deflation surprise coming out somewhere. In peoples minds, look theres a chance of this happening and it could cause a correction. Youre on the side of dissing hedge funds saying because theyre derisking, things will go higher because theyre never right . Thats definitely not what were saying. What are you saying . What im saying is were seeing a movement a rise in markets while a large contingent is taking themselves out of the market. So that obviously someone else is coming in. The ones coming in are saying hey, Interest Rates back to normal levels crude is acting not like in continuous decline. High yield, spectacular rally in high yield. I dont know if you know people have not spent enough time talking about that. Thats bull. Recently. And very recently yes. So i think because of that what we see happening over the summer, like the gasoline the Consumer Credit i think theres a story about ka passcapacity tightening as well. Its a 5 gain since the beginning of february on the dow and the s p, that is a phenomenal move. How do you match that against the fact that were entering a period where presumably if the fed members are to be believed theyre going to talk up that Interest Rate rise possibly in june . Yes. Now again, its a reason to be nervous, nervous is good. We always have to ask ourselves, what are we going to do if markets get shaky . And fed tightenings one of the times. We showed if you look at 14 fed cycles since 1950 isolate instances where investment spending was low, which is where we are today, and the yield curves steep, which is where we are today, the markets almost lifted off vertically when the fed began to tighten. Five or six instances. Were not cherry picking one tightening cycle. I think what happens is fed tightening, if it does happen its a reflation signal saying look the economys Strong Enough to take this. Because thats a big doubt in the markets it might be quite good. Im not saying thats the case im saying historys shown thats what happened. More confidence among corporations. When people think prices are rising and Interest Rates are price rising thats what gets people to act. Theres a significant number of people who think that although there is a number of people who think that a rate rise from the fed would be inappropriate at the moment, and they would point out the possibility of slowing growth and whats happening further down the yield curve, they would say thats a signal that the market, a lot of money, believes we are in a low inflation low growth environment for a significant amount of time. Thats now, you know i have an opinion but my opinion doesnt matter because the markets can do what it wants. But id agree with the camp that says, is this right time to be doing tightening in the midst of uncertainty . I think confidence is fragile. I dont think we have real strong core inflation signals. I dont think peoples Wage Expectations are anchored higher. Id be in the camp i dont think its appropriate to be tightening. Doesnt that in you view undermine there would be a strong ill say i think only under the conditions where the fed feels theres enough confidence would they tighten. If a tightening takes place, i would say thats why its i bull. You light up the phone lines no matter what tom. People say, all right, herjs derisking is bullish. A rate a rate cycle, bullish. Anything thats not bullish to tom lee . Again, for folks that have known me ive been doing this for 20 more than 20 years ive been bearish in many instances especially when i covered stocks and people didnt like it. But i think a lot of people said, when i turned bearish, its with conviction. I wouldnt say i was born bullish. I wasnt born with cattle horns and charging. This event that hedge funds may be derisking to avoid, because they want to make sure they dont lose a year so to speak, you dont think its going to happen . David, i dont know. But when people ask ming i say im not sure what id do. In other words, what should i do if i thought there was a 10 chance . I dont think id be selling stocks. I would say i would put a little bit of insurance, extra cash in my portfolio ready to buy but id buy the dip because i think europe is prepared for a grexit. Central banks are ready to do something to battle deflation. And geopolitical events never have long lasting damage to markets. I think its a buying opportunity. I dont think its setting us up for a huge tumble. Tom, always good to see you. Provocative as always. Tom lee. Financing talks between greece and the European Union going down to the line in brussels. Lets link in with julia live for the latest on that potentially market moving event. Reporter thanks simon. The last finance ministers leaving here in brussels over in greece the greek Prime Minister saying there will be no compromise, and thats exactly whats needed from the greeks over the next few days. The question is can they achieve that . We need something that will appeal to both eurozone countries and the greek voters 80 about of which supporting hard line stance that the greeks are taking weve got deals discussed in the last few days but two extremes. The first one from the eurozone finance ministers, they want greens to accept sixmonth extension here. Theyre saying you have to follow conditions of the old program, that of course a huge red line for the greeks going forward. Theyve tried to soften the blow of that saying well introduce flexibility but theyve not given details. The other extreme, the greeks theyre saying they want a shorter, fourmonth extension. They wont spend and fulfill election promises continue to pay debts but thats it. Between those two extremes we have to find some kind of compromise and we have to find it by the end of the week otherwise the likelihood is we get to the end of the program and greece has to go it alone. Thats going to mean increasing pressure on the greek banks right now. Fact one guest i spoke to today say if we dont get a deal this week, we could see capital controls in greece coming in as early as next week. So thats the backdrop now. You look at broader assets it seems that people are saying look, qe is keeping markets calm keeping investors calm and ultimately they believe the greeks will brink first. That blink comes in the form of a compromise deal over the next few days. But you listen to the Prime Minister and hes making this tough and lard. Hard. We wait for the next few days. Julia chatterly. The buzz comes for apple. Another high 128. 12, rumors about some kind of car are swilling not to mention the johnny i. Profile talking about redesigning stores helping design the new lightsaber in star wars. What that means for the stock in a moment. What does it mean to have an unlimited Mileage Warranty on a certified preowned mercedesbenz . What does it mean to drive as far as you want. For up to three years. And be covered . It means your odometer. Is there to record. The memories. During the mercedesbenz certified preowned sales event now through march 2nd, youll get complimentary prepaid maintenance and receive your first two months payments on us. Only at your authorized mercedesbenz dealer. Anything worth pursuing requires knowledge, hard work and a plan. At baird, we approach your Wealth Management strategy the same way to create a Financial Plan built to last from generation to generation. Well listen. Well talk. Well plan. Baird. The clock is ticking for apple as the company nears april release of the anpple watch. Asking suppliers pro produce 5 Million Units johnny ive to revamp the stores. Speculations swirling about an apple car now. What does this mean for the stock . Joining us discuss more brian blair, apple analyst at rosenblatt securities. First, deal with reality first, right the journal talking about the watch, 5 million plus units can they do it. They can but not in the time frame the journals talking about. Theyll make 7 Million Units for the first half of the year maybe another 7 million for the second half of the year. But its going to be demandbased. Apple has to tell quanta what they think they can sell but at the end of the day they havent sold a single unit. That number is aggressive for q1. Do you not believe the demand will there be or suppliers cannot keep up. The suppliers able to make enough but we dont know what demand will be like. We know the low end model is 349. We dont know what the killer application for this is yet. I used it back in september and the version they were showing was it wasnt ready, it was half baked. A lot has been done since then. You ask anybody who wants the watch, ask them what theyll do with it beyond notifications, its not clear. Its not able to take your Blood Pressure apparently. Thats right but there are sensors on the bottom we dont know the use for yet. Theres heart rate functionality, there has been talk about potential glucose readings. Possible, sensors on the bottom will do some things we dont know about yet, and thats where we could applications we dont know of. When will you get a better sense of whats improved on it since you last saw in september . Its likely theyll hold an event ahead of the lawn inch hape where theyll walk through everything developed since september and now. A lot of developers have had the kit for months and well see a lot of things come at it. The focus from apple is this is what we can do from the health side thats what were going to see probably in the next month or so. Were you excited to see hundreds of people working on an apple car and to see that smacked down to an extent by usa today, its just about the dashboard. Excited to know they could be working on something carrelated. Theres a lot of buzz around the world what teslas doing. So its exciting to think that apple could be applying resource to that segment then already have the carplay, which is really trying to extend ios into the vehicle. If you sit inside of a tesla and look at the screen in front of you, the massive screen to the side, you can see, an area ripe for development and only tesla is doing something innovative. Isnt that billions of dollars of investment which would take them away from the iphone as an investor shouldnt i get concerned if they go into a new field. No, you should be excited theyre looking at other things. Iphone will grow only for a period of time. They need to look ahead five and ten years at next growth opportunity. You should be enthusiastic. Growth in iphone will slow. Demand will be there, but its growth is going to slow. They need to find the next thing. Whats going to matter most in the spring is distribution of cash. Lightright. Price targets based on buyback in april. What do you thinks going to happen. They could increase the buyback. Tim cook open to use of cash and doing what investors would like to see in terms of use of cash. Id like to think we could see more acquisitions from them this year. Really . I dont. We learned something about beats. Apple is willing to be more aggressive beyond what we know. 100,000 employees, 5 products and now they have beats. We know with the car rumors theyre willing to look at other others. I wouldnt be surprised to see use of cash beyond giving back to investors on the acquisition side, this year maybe the end of the year. Changing character. Well see if that happens. A lot of change in character from tim cook. Well continue to be surprised. Thanks a lot. Up next on the program, oil prices turning negative after brent had been trading near a high for theier year. Any sign of it settling down . Where does that leave you on buying underlying stocks . More on that after the break. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. Barbara just bought a bike. She wrote a tweet about it. You cant learn much from that. But take data from millions of tweets combine that with your companys supply chain and sales data. Apply ibm analytics and expertise, and all of a sudden, you can learn which bikes to build what to make them from, where to sell them. Because barbara and the world just told you how to build a better bike. Theres a new way to work and its made with ibm. E financial noise financial noise financial noise financial noise oil is still on its wild ride with crude sliding now more than 2 on the session, brebt also in the red after pairing earlier gainans earlier gains. A senior emp analyst. Welcome to the program. Thank, simon. I mean where are we going on oil now . We had a good recovery here on some of the concerns about what was happening in the mideast. Now were down again. Thats right. You know volatility it seems to be the order of the day. If were picking letters for the recovery, you can file us in the w shaped recovery camp. See weakness here in the nearterm, least on the front month as were epically oversupplied on inventories in the u. S. But i think that the operative term here is recovery. Investors are clearly gaining confidence here in the sector thats been one of the biggest surprises of 2015 is a quicker than expected rebound here in oil prices. But the voiltlatility will present significant opportunities in the space for cnbcs looking at emp stocks. If you think that were on a weve got a w priced in recovery, where on the w are we . Were probably on the middle part of the w. How far down does w go, chad . Sure sure. I think that its almost certain that we dip back into the 40s here. I think that again, the important thing to focus on here is that the back end of the curve, the months into the back half of 2015 are showing some very you know resilience and strength on that end of the curve. I think thats where investor focuses is on right now as Global Supply demand equilibrium continues to reset and we see the light at the end of the tunnel and gain conviction its not a train. Warning about supply risk in the middle east brent above 62 know whats going on regarding isis in libya and the egyptian christian christians. Thats a great point, carl. Thats one of the factors that we didnt see in the downturn known unknown, and thats the geopolitical uncertainty. Were starting to see that creep back in with libya offline iraq disappointing on their supply side. Something thats going to be in focus. If we continue to see some supply weakness with those kind of factors coming in to play then that is clearly supportive for the rebound. Okay. So the weekend, talk about the individual stocks barrons had a big piece of what people should be buying positive on schlumberger and Kinder Morgan negative on the major Energy Stocks like exxon and chevron. Would you agree with that . Well weve looking at the sector thats one of outperformers for the market year to date. Up 8 i think thats surprising to some people. When you look at you know where the values going to be, as we continue this recovery continue to normalize back to your marginal costs of production something in the 85 range, theres a significant amount of upside there to be realized. We do see a fair amount of value in the emp sector. Again, volatility, the word of the day, down 50 still from our highs last summer. But up over 50 on average in the small and mid cap space that was reached a few weeks ago. Lots of opportunity there as we continue the rebound. If you on the one hand youve got the emp sector doing well. On the other hand w that the price of oil will decline. Do you think the buying opportunities will be more obvious also the price of oil declines on the second leg of the w or people should get in now because the markets heading in the other direction . Yeah thats a good point, simon. I think that the opportunity, the volatilitys going to present opportunities in certain stocks. Again, as investors focus on that back end of the curve, closer to the 2016 as we are clearly going to be exiting at 60 plus type of oil. Wed be playing higher beta type of names right now looking down cap for this cycle of the recovery and looking for good entry points in those names. Some of our constriction buyrated names, callan petroleum, gas r explore race names that havent participated to date in the rebound but again are going to see significant opportunities as we continue this recovery. Good to see you. Thank you very much. Chad mabry joining us. Which sites and apps do people use the most with smartphones and how much do Companies Like facebook and twitter depend on mobile users for ad revenue . The dow down 45, in a moment. [ female announcer ] who are we . We are the thinkers. The job jugglers. The up allnighters. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can say, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. Have you heard of the new dialing procedure for for the 415 and 628 area codes . No what is it . Starting february 21, 2015 if you have a 415 or 628 number youll need to dial. 1 plus the area code plus the phone number for all calls. Okay, but what if i have a 415 number, and im calling a 415 number . Youll still need to dial. 1 plus the area code plus the phone number. So when in doubt, dial it out your cnbc news update at this hour. Apple as asked its asian suppliers to make 5 million to 6 million unit of the 3 apple watch units for the first carter. The watch expected to be launched in april. Would you believe a bond strategist telling strategists to get out 0 bonds. Bill blankfeins blair says get out of bonds and into stocks. Fires burned for hours after a train carrying more than 100 tank ors of crude oil derailed. Fire crews decided to let the tankers burn out. No major injuries reported. Princeton university has received the largest donation in its history. A collection of rare books and manuscripts valued at 300 million. Left by 1936 graduate william sheib who died last november at age 100. Thats our cnbc news update for this hour. Meantime Digital Media creating a treasure trove for advertisers. The time we spent on digital platforms jumped over 160 . Joining us first, cofounder joins us here at post 9. Good to have you back. 160 in 4 years. Most the smartphone, right. Right. Mobile devices 80 of the growth. And then within that the phone was about 3 4 of that that 80 . But were now at a point where the average person is spending three hours a day on the internet, which interestingly is 60 of the time spent on television and it matches the percentage of the ad dollars that are going to digitalj which are 60 of what goes to television. Theres no evidence that its slowing down this growth in terms of time spent. Give people mobile devices they use them to get on the internet whenever they want. Its a very very dynamic situation. I like the chart youve built of the most mobile Properties Properties that leverage mobile the most. Zynga, if you spent any time on a new york city subway makes sense at number one. Right. Categories where the mobile percentage is up around 80 to 90 . Youve got games, youve got weather, youve got maps, obviously social network ones leading in terms of their advertising, mobile tigzadvertising revenue generation. Facebook and twitter generating in the neighborhood of 70 or 80 or more of ad revenues from mobile and growing as 60 to 70 . But still number facebook is 15 twitter ranked 12 behind tribune broadcasting. In terms of its percentage of time on mobile right. Theres a lot of sites, remember. Yes. Thats the other reality. If i look at total Digital Population one is do do. Two is yahoo facebook. Those guys ability to monetize that is different if you look at marissa mayer. I think one of the ways to think about it is if you didnt have a welldeveloped advertising business before then mobile is all upside. But if you had a welldeveloped display business before mobile is a little threatening because the cpms or prices paid are lower than on display. I think theyll get higher. But if you could be looking at a Pressure Point if mobile is on top of what youve already got. Referring specifically to google . No, no no i wasnt referring specifically to google. Im referring to the Large Properties generated most of their revenue historically from display advertising. There its trickier than somebody who is new to the advertising game where mobile is upside. Curious your take on the traditional broadcast companies that are watching ratings come down significantly when measured by nielsen, Cable Networks and the like who argue, were not getting credit for being watched as much as we are on mobile devices. Do they have a point . No i think they do. I think whats happened if you look at total Television Time its really not dropped but its fragmented across different channels and different platforms. So if youre not measuring all of that, you know youre the content owner, i think you have a right to be concerned that youre not getting full credit for all of the viewing. Can it be measured effective effectively . We think were well on the road. But not there . Weve got all of the digital pieces and i think by the middle of the year well have the television pieces rolled in there as well. Hang on hang on. Is that an acquisition did i hear you say . Is that an acquisition . Last time i was on no no thats thats all organic that im referring to. He loves giving you a hard time. Good to see you again. Thank you. News that Fritz Van Paaschen is quitting as ceo of starwood after seven years is raising few eyebrows. It had been an open question how long fritz could survive. He lost credibility during the Earnings Call last year when the ceo failed to explain why it was not returning more cash to share shaers shareholders. The stock of marriott and hilton accelerated away not only did starwood lose its cfo to be in universal, starwoods invests are became angry, pressure resulted in a series of major uturns by the management team. The board publicly correcting guide staked out by the ceo. Ultimately there were major reaccelerations in both sale of Hotel Properties and share buybacks. To many the message lacked conviction and clarity, fritz never recovered from the Conference Call during which experienced analysts pulled rank and lectured the ceo of starwood. A call that frit told me was the worst of his life. What shareholders are saying is you have a great business model, business is good, youre selling hotels your Balance Sheet is less live ran than before. The straw that may have broken the camels back, maybe marriott and hilton are showing stronger momentum Getting Hotel owners to sign up to the bran. It may nobody coincidence both ceos report earnings tomorrow. Fritz van paaschen probably a victim of his prior success overseas, starwood gets 56 of revenues from outside the u. S. More than, say, marriott and earnings that are getting knocked down due to the strong dollar. Starwood is more focused on the luxury segments which are no longer outperforming. David, you were saying you thought it was that signing up of hotel owners that the board was most concerned. Speaking with somebody close to the bore they shared a frugs administration after seven years of mr. Van paaschen in role that he was growing below peers, they were not adding rooms at rate of the aforementioned companies late to things like the spinoff they announced last week or the buyback and coming back to the idea of losing faith in his ability to execute in a timely manner. Seven years is a long tenure. It is. Seven years where you are for a ceo. About all you can expect. Coming up shark tanks kevin oleary live here to talk all things apple from the record stock price open today to the idea of some apple car, ahead on cnbc. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. You cant predict the market. But at t. Rowe price weve helped guide our clients through good times and bad. Our experienced investment professionals are one reason over 85 of our mutual funds beat their 10year lipper averages. So in a variety of markets we can help you feel confident. Request a prospectus or summary prospectus with Investment Information risks, fees and expenses to read and consider carefully before investing. Call us or your advisor. T. Rowe price. Invest with confidence. Take a look at utility sector higher on todays session. Cnbcs dom chu back at hq for more on a sectors that been down most of the year. The best performing sector today despite Interest Rates or yields are higher in the trading today. Utilities standing out as a market outperformer. Shares of higher yielding stocks tend to fall when Interest Rates rise. Today the sector led by anderson international, and dt energy and sempra. Its been on a threeday losing streak. Short side happening perhaps on todays trade. Out to chicago, the cme group and Rick Santelli this morning. Good morning. Good morning, carl. Good morning mark hanson. Thank you for being our guest this tuesday morning. Welcome. Today we had the National Association of Home Builders index dip down to 55 to find a lower read go back to july of last year. Last wednesday, of course we saw applications on the Mortgage Bankers association, down 9 . Interest rates have moved up but historically low. Give me a summation of the condition of housing at this point in time mark. Rates have been so low for so long, everybody that wanted to do something, the end user the shelter buyer, the most important cohort in the nation has already done it. Were in a demandless house price recovery. Sales 20 to 30 below sell side year and twoyear ago forecasts which is highly unusual because prices are a symptom of demand. You have prices going one way, demand going the other way, it creates a divergence we last saw in 2007. Home builders retooled, went into certain regions that looked good, like texas. Unfortunately, we have problems in the reasons that those states have been so strong, well see how that thing plays out. Still i think that the theme this year up against big hurdles from last year a parabolic move in house prices is a lower yearoveryear house price. Not saying a crash, just house prices might be 5 10 below forecasts of 5 to 10 higher than will feel kind of ugly. Thats what were hoping to figure out when thats going to happen, when its going to first show up in print. Looking for catalysts, rick. Whats unique about this cycle . Whats the same . Im looking saying nothings unique. Move away from Single Family homes and consider condos different regions of the country, places like florida, have had very very lofty price action in certain condo markets. Seeing in any turnaround in those . New york vegas, miami, in the last few months something has broken there, precipitously, demands off of a cliff. And supply especially in miami is through the roof. In fact seeing any international players, you know chinese, russians, as we see more deterioration in their economic outlooks, is that part of the picture . Theres a great article in the observer talking about how the russians are asking for deposits back, willing to lose 50 0 so they dont lose 100 on the condo. People who thought u. S. Real estate looked so cheap six months ago just saw real estate prices denominated in u. S. Dollars rise 50 . Russians brazilians, huge feature of the southern markets, especially miami. Things are looking expensive now and purchases arent going at a time that supply is cranking up to go through the roof in these markets. So the last time we saw these features, remember 2007 a key feature was the condo market belly belly up. Were watching that closely now. Weve used up all of our time. Youre always interesting in painting different pockets of demand, or in this case demand, than one would have expected a year ago. The former ceo of ben and jerrys, ben cohen, has big ideas when it comes to election Campaign Finance reform. Hell join us here live at post 9 to tell us how hes trying to get money out of politics. Thats when we come back. In my world, wall isnt a street. Return on investment isnt the only return im looking forward to. For some every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as fifty dollars. Welcome back to squawk on the street. Watching shares of apple computer, up another 1. 28 im just watched the market cap of the company exceed 3 4 of a trillion dollars. Didnt want to just say that on air. 3 4 of a trillion dollars is the market value currently for apple, up 16. 6 yeartodate. Simon, over to you. Change the subject and play you this my relationship with Silicon Valley and the Tech Community is historically been really good. Many of these folks are my friends and have been supporters and we interact all the time. That was president obama talking to recode executive, kara swisher friday. The same day some of obamas backers, top executives from google, yahoo facebook microsoft close to skip Obamas White House security summit. Providing the second and third ranking sources of Campaign Cash for obama in 2012. Will the snub influence washington policy . Joining us is ben and jerrys cofounder former ceo, ben cohen, who is leading a National Campaign to help limit the influence of money in politics. Good morning. Hi, how are you doing . I imagine an honesty about google or facebook executives and staff directly donating to the obama campaign. Thats not what youre up against. No, that is what were up against. Okay. Were up against money and politics essentially our democracy being bought and paid for by corporations and ultrawealthy. What are you going to do about stamp it out. This is a stamp, a rubber stamp, and weve got 30,000 people around the country that are stamping Paper Currency with these messages about getting money out of politics. This is a small part of a much Larger Movement of millions of americans that are fed up with a system that no longer represents them because of the big money politicians are being paid as an investment by corporations and the ultrawealthy. I see the Koch Brothers budget for 2016 is probably 900 million. Exactly. Against that when gop candidates are vying for their interest and their backing. What difference can this make . Well you know, the only thing thats going to fight 900 million is huge numbers of people and thats what weve got, is millions of americans that have said that weve had it that we want money out of politics, we want our democracy back. Right now we have government of by and for the corporations and the ultrawealthy. Something youre going to have to do would be seemingly replace some justices on the Supreme Court with those who might look more favorably on your argument given Citizens United many would argue changed the landscape youre talking about in a formidable way. Thats exactly right. We need to change some justices on the Supreme Court, Pass National and statelevel legislation, and amend the constitution. Amend the constitution . That seems a virtual impossibility. You know 54 senators voted in favor of it last time around. So, you know, what do you need . 66. So and all the states. Twothirds of the states too. Twothirds right. Well, theres already 17 states that have voted in favor of having an amendment to overturn Citizens United. Youve been active in progressive causes for a long time. I dont need to tell you about the money george soros has given to its on both sides. Do you have a problem with that side of it at all . I have a problem with both sides of it. The idea is its supposed to be one person one vote, not 1 one vote. We need to get big money out of politics. We need to make it so politicians are no longer beholden to those that pay them big money, i. E. Corporations the unions, whatever. You know what its like to have to market a brand in a busy world, right, a crowded space, things moving all the time. Politicians are their own brand. Where are they supposed to get the money to run to announce their campaigns . Well, you can get the money from individuals, theres been proposals that every person in the United States would get a voucher for 100 that they could use to donate to the politician of their choice. And that would be a great way to level the playing field. It could be a very big campaign. It could be something that really catches peoples imagination. Its a great line. I just wonder how it gets to change anything. Dont you have to in some way mass votes in one way or the other, to have the power making the change. Just having the slogan out there and the currency defaced isnt going to change what happens on capitol hill. We dont call it defaced. We call it decorated. You know so dont you have to somehow migrate votes into one corner or another to get that change . For people to feel you can do that. The interesting thing this is a bipartisan issue. 85 of the American Population republicans and democrats, want to get money out of politics. I cant see how it bites and changes things. Well, like i say, already, 17 states have passed resolutions, some by referendum. Quickly, unions apply to this rule . Absolutely. Still legal tender. And you can get your very own stamp at stampstampede. Org. Its a beautiful thing. Join 30,000 other americans that are making their voice heard because every time you stamp a dollar bill and put it into circulation, 875 people see it. One person stamping three bills a day for a year reaches a million people. Its very, very powerful. Next time can we talk candy bar pie . Absolutely. Mr. Cohen, good to see you, cofounder of ben and jerrys. I do want to update people on dupont shares not doing much right now but we have our latest foray in the ongoing battle between trian and dupont. The latest a letter and presentation sent to dupont shareholdersp. If you are out there as a shareholder take time and read it when you get it. Centering on the debate about who is responsible, if you will for what has been fairly good if not excellent, performance of dupont share price over time. Ive said this many times as has jim cramer when we talked about this situation that it is perhaps the hardest hill that trian has to climb is trying to articulate to shareholders of dupont as to why it could do even better. And one of the arguments they have made is that, in fact, the stock prices performance is in part responsible or a result of their being in the stock and so as you might expect dupont taking aim at what it is calling these trian myths, a myth being dupont only takes action in the face of outside pressure and therefore trian is responsible for the recent valuation creation at dupont. A myth the outperformance is a result of trians investment in 2013 and a myth trians time periods are the right ones to measure duponts performance. Dupont takes issue with all of those socalled myths. As ive said many times this is one of the only real ongoing battles that is out there so often it seems that the activists and the companies in question choose to settle prior to a real proxy fight and simon, thats why this perhaps makes it a more important fight for the future of activism and corporate responses to it. David, thank you. Fresh week fresh alley see whats on deck with kayla tausche. Good morning, simon. Its a big hour and its all about apple. Of course starting with the wide ranging interview that johnny iv did with the new yorker to the watch and whether there will be an apple car. Whether kevin oleary think that will propel apples stock higher. What will the car do to the u. S. Auto landscape well discuss that as well and finally forthcoming drone rules could target amazon and others looking at drone deliveries. How that landscape will develop. Thats coming up next on squawk alley. Automotive innovation starts. Right here. 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We do. Were legalzoom, and over the last 10 years, weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions backed by a trusted network of attorneys. So visit us today for legal help you can count on. Legalzoom. Legal help is here. Good morning. It is 8 00 a. M. At apple Head Quarters in california 8 00 a. M. On california and squawk alley is live. Good tuesday morning. Welcome to squawk alley. Joining us kevin oleary, chairman of oleary funds and investor on shark tank. Kayla tausche at post nine jon on vacation. Its all about apple today. Shares gone to an