Looking at the worst week in two years with all of the averages well see what happens today its been interesting to watch volatility to see whats going on meantime, lets take a look at whats happened overnight in asia the nikkei was closed for a national foundational day holiday in japan the hang sentence down over 0. 1 shanghai composite and stocks in south korea higher with the kospi at 1 . In early trading in europe, you can see things are in positive territory as well. Big gains. Gains of 1 or better across the board. In fact, the dax is up by 1. 9 right now. Then if you take a look at treasury yields, this is a big story. What kind of inflation do we see. The tenyear is yielding 2. 88 this week, were going to be getting inflation data cpi on wednesday and thats something that else to see if inflation is really out there. A couple big stories were watching before we get back to the markets. Vice president mike pence said the u. S. Is open to talks with north korea but will continue to watch the rogge state economies. Pence also said the south korea would first engage with the north. And then the u. S. Could soon follow suit. The Trump Administration will be unveiling its infrastructure plan today. It will include 200 billion in federal funding, over a decade, to incentivize new state and Municipal Building projects. Were going to get a live report from washington on all of that in just a couple minutes then on this weeks economic agenda on wednesday, january retail says, cpi thursday, jobless claims, ppi and philly survey and home production builder survey. Friday, housing starts, consumer sentiment. As earnings two dow components, 57 companies in the s p 500 theyre reporting. That list includes pepsico, under armor, metlife, cisco systems, marriott, heinz, kraft, and cocacola. The market may key off fundamental news as opposed to speculation. Though we got earnings numbers as well. And thats eye its own adventure. These are stralers. Were done with earnings joes closing the books were done with earnings. Looks like eququalcomm and broadcom are planning a valentines day meeting. To talk about broadcoms 121 million acquisition offer. The wall street journal reports the company has secured 100 billion of Debt Financing for that hostile bid also enlisted the help of two private equity firms the ceo of broadcom will be on squawk on the street today frld automatic toy plaker planning to raise production of the expedition and the Lincoln Navigator by a quarter wife this year. Both plants manufactured in the companys plant in kentucky. Ford is looking to challenge rival General Motors and boost its own profit marking and oxyconte maker Purdue Pharma is cutting its sales in half Pharma Companies have come under fire for the way theyve marketed addictive painkillers privately held purdue has been sued by 14 states accused of deceptively marketing opioids to try and generate higher sales. And then there is the weinstein, ill call it a drama, a saga, i dont know new York Attorney general Eric Schneiderman said hes filed a suit against Harvey Weinstein, his Brother Robert the suit alleges that the board failed to protect employees. More than 70 women have accused Harvey Weinstein of Sexual Misconduct the studio has been in talks to sell to a group of investors the sellers lawsuit puts the negotiations on hold in a statement, his attorney said we believe that fair investigation will common a 38 that many allegations against Harvey Weinstein are without merit. Irrespective of that, the lawsuit, to me, changes the game potentially if other a. G. S were going to try to stop transactions not just Sexual Harassment but any claim where they believe theres some aggrieved party and that that party could be paid the proceeds of the transaction, you could see this actually moving itself into many different places, far afield from this weinstein situation. Theres always been issues where a company has tried to sell itself after theres been a scandal of some sort but if you guy a company, arent you stuck with its liabilities . Weve seen that happen time and time again bear stearns if you buy a company, youre stuck with whatever liabilities they have down the road. And you normally normally that would be the case well, either you go into bankruptcy court, sell the company where a lot of liabilities oftentimes dont transfer but now you have an a. G. Jumping into the middle of a deal like this, it changes the whole dynamic. Its not just that the liabilities arent transferring or how they transfer, its that they wanted them specifically earmarked in a certain way to have these people be put at the top of the list they become the ultimate credit creditor right arent there about ten things Eric Schneiderman has embarked upon at least most rational people get raised for some of his actions . But a new York Attorney general attorneys general, they many times, have pretty aspirations that go beyond attorney general Eliot Spitzer i take everything with a grain of salt. But certainly in the weinstein case, and all of this stuff, and it gets even more i just wonder, in other states, in other instances how successful that is. I used to say its a magnetic thats bad to throw in the ambulances just in case, you dont have to chase the ambulance. Your Business Card ends up on it if people need to sue. Anyway, to the Broader Markets coming off a week in which the dow up and down moves made for a journey of more than 22,000 points joining us now, chief strategist at oppenheimer, jim turny, and a doppelganger for Vice President hows he doing . Hes doing great. Fantastic. You look like a younger brother. Hes been youthful but hes in his 70s now, and he doesnt look like it. Anyway, you look like you could be his somewhat younger much younger. Yeah, much younger. Ill tell you what i was gratified by with recent market moves we used to watch 50 and 100point moves and think we were actually reporting on moves in the stock market. And we didnt real iize that was like 2 . Now at 25,000, you need to recalibrate what the actual move is its really just 1 . But at least now, were in a position where our eyes arent when you see 1,000 points down, you think you need to go hunker down in a bunker. But really, it was what, 3 , 4 . Whereas in 1987, there was a oneday move of 23 . At least were calibrating a little bit what i want to ask you guys about is whether there is anything that you believe to be fundamentally broken or totally extended, either if the economy or in the stock market in other words, is there a housing bubble is there a Central Bank Bubble a bond or is there something that needs to be worked through or a reaction on 2. 8, 2. 9 on the tenyear we had gone straight up for 15 straight months, 22 out of 23 months were positive we were due for it boringly. Going up 50, 100. No volatility right this is introducing risk and volatility back in the market which i think is appropriate but is there anything fundamentally wrong . Is the fed introducing risk someone saying that the fed is finally introducing some volatility back into the market with the four raises we did this year qe was winding down i think the market was expecting two raises and now saying okay, the fed is right, three, maybe four were going on this path and the market is waking up and saying, okay, were on our way are we on our way to effectively measuring inflation . Is it possible itslooming in much worse state than it is . We dont think so we think the big offset is the secular and relentless move in the process of globalizationa gore ri algorithms, robotics on the factory floor and lower ends of technology whether mom and pop operations is this what caused the market selloff no its not what caused the market sel market selloff but it means inflation is not a concern. Of course, what ive been wrestling all week as the market was tumbling obviously, it starts as good news bad news scenario the question is, could the bad news create a spiral of additional bad news . Which is how much of this has been a wealth effect, to the extent there has been volatility and will continue to be even more, does that change the underlying dynamic of the ultimate economy i dont think so, i think what you have here is a situation where were in a period of price discovery as a result and were seeing a normalization of Interest Rates but we have a Federal Reserve that has shown to be remarkably sensitive over the nearly last ten years. You dont think the consumer is going to get any more sensitive as a function of what were talking about every morning, to the extent were talking about this, and this type of volatility for quite some time . I dont think so. I think well just have a return to a more normal level of volatility were you hyperbolically looking at this . I mean, were going to be at 24, 500 today. Art had this 24 hat on a month ago. Weve been begging for a correction thats been normal and routine and happen every year is this a tumbling horrific thing thats going to cause people to pull in their horns . I mean, are we there yet probably not. But if you had think the wealth effect goes at 24,500 i know, when i said this is the worst in two years, were till 10 up from where we were then youre worried about 20 . No, im not worried about 20 . I actually said you werent watching lasts wee ing. I saw you wrote a big piece on explaining the volatility when i did, i said i didnt think there was an underlying point to this at all however, as the week progressed and things got worse, i started to try to understand give me your viewpoint on the gains we had for the year. Right and as it was happening last year, the 44 gains and your sort of resistance to the idea that the market was moving up. Isnt coming down 10 sort of more rational for what you were thinking all along the market you didnt think much and that it could be here by this you shouldnt be surprised by this, right . Its not about being surprised. 10 should be welcomed for you, it makes more sense in the world of most people, right . I think relative to the consumer, are they going to be dislocated by this i dont think they will because wages are going up and the tax cuts and its only 10 and i just dont think its only thing that scares me nothing scares you . No, what scares me is the reckoning that we may some day have to come with yenky yellen andco and central bankers. They think they can extricate we take it for granted they went in and did this unbelievable accommodation but they spend more as a government the one thing is, what has drastically changed has been the evolution of technology in our lives. 30 some years ago, when i got into this business, if i was talking tech, i was talking about what technology would do for corporate. Today, its ubiquitous, its embedded in all of our lives how come our productivities arent any better . Sometimes, i think were working so hard at keeping track of our passwords and the process of cryptology, to protect what were sending. But i believe that we will see that work out in a process but relative to where weve been before, becky, it dcould be different because this is a huge disrupter and it dislocates i know, im a lot more productive in my personal life everything from ordering groceries online, the shopping, the hours that has cut out of my daily life and our Business Days are extended as a result and not necessarily uncomfortably, because its very convenient to pick up the iphone or pick up the samsung and catch up on issues you can be on vacation answer emails and not totally we live considerably differently than we did 20 years ago. Yeah. Is there a recession on the horizon . Or is there a cycle where we need to deal with inflation on the horizon . Is either one of those things possible possible, but which one is more likely . One leads to the other sometimes. I think inflation in the short term given the stimulus were seeing but in longer term, think about what amazon is doing. If they bring about this Health Care Program with Berkshire Hathaway and jpmorgan, thats 18 that they got to target. It is going to be a year before we see that but its a start. But what has changed significantly are wealth products because wealth has increased exponentially around the world whether a handbag that a few years ago was 800 now is 1600 by louis v. , lv. And tmercedes costs more this year than last year. I just wonder are we wondering about halfpoint hikes, six of them in a year you do four, and were back what, three . Its just hard historically. Its different, double 1 1 2 but if youre doing that as youre shrinking the Balance Sheet at the same time extended process of normalization. Hindsight, well be looking, oh, wear, i remember that 10 correction people love 10 corrections until they happen. Hopefully, its just a quick correction you hope it is just a correction obviously, im invested like the rest of the world. I hope its just like a correction just on market watch, theres no way this correction is anywhere over. A lot of people dont think its over. You cant think its over, or else the market would have to convince you it would its trying to keep you out we havent gotten political about it, clearly, this all began, this is largely a function, are all of the stimulus measures and of all of the things going on. And this is a 10 correction. The reason you are at 24,500 in the first place. Or not at 17,000 like everybody who said it was going down 10 but that didnt happen were up 40 you can give back 10 without throwing away the narrative. Since were getting political, john, jim, thank you guys for being here. Since were being political, why dont we get to white housashin. The white house is planning to release the infrastructure plan. Kayla tausche is here. Good morning good morning, that plan is set to be released today four principles are going to be in that, all recently reported by cnbc. 100 billion in state and local incentives for financing their own projects 50 billion in frontloaded block grants for rural communities. 20 million for socalled transformative projects and the reminder going towards bond and loan programs as well as federal Office Buildings just 14 of the price tag is coming from the federal Government Programs short on funds but long on anticipated reforms to regulatory processes the white house expects the 200 billion in chrises will be offset by elsewhere in the budget and the president is open to raising the gas tax even more. And the bipartisan budget deal from last week included 20 billion for infrastructure which leaders called a down payment for the program but keskeptics have said its an insurance policy and the republican unwillingness to spend more money. The plan will include 11 congressional committees, six in the house, and five in the senate they say last year 40 meetings have taken place on a bipartisan basis with congressional members to discuss the package and that effort will continue this week President Trump will meet on wednesday with more members of congress on all relative committees today, hell meet with mayors and governors. Well see if the plan really gets momentum once it comes out and whether it faces opposition and comes down dead on arrival even though its an infrastructure bill and those are usually things you can get around, the left is not going to like this because they dont think theres enough federal spending on this the far right conservative is not going to like it because they think its too much money after all the money spent at this point what do you think the odds are at this point . I think its probably 50 50, becky, you have the complication, and white house officials are well aware of this you have to get everything done legislat legislatively, in the next five months really all appetite for legislation will try up at that point. There is resistance on both sides of the aisle to this program but the white house says they have been working with congress that they are well aware of whats in the plan theyve been, in their words, socializing this to try and get members on board and if theyve left enough of this plan to be filled in by members of congress, that they should be able to feel some ownership of it. But there is still a lot of work to do. And it does lean extremely heavily on state and local governments to come up with a lot of money too kayla, good to see you. Thank you very much. Good to see you coming up, box office controversy, were going to tell you why some parents are calling for a boycott of the kids movie peter rabbit. Well continue to monitor futures. In the green, dow looks like 270 points higher after a roller coaster ride squawk returns in just a moment and she was just small hey, need fast heartburn relief . Try cool mint zantac. It releases a cooling sensation in your mouth and throat. Zantac works in as little as 30 minutes. Nexium can take 24 hours. Try cool mint zantac. No pill relieves heartburn faster. Mom anits not theirs. Car. Its mine. Mine. Mine. And it always will be, forever and forever. The new rx 350l with three rows for seven passengers. Experience amazing at your lexus dealer. Welcome back, everybody. Fifty shades freed tops the box office it brought in 38 million in the debut weekend. Women brought in 90 of the audience guessing none ever you was there . No. No. Peter rabbit took number two in the box office bringing in 25 million believe it or not, the movie sparks back lark over parents of a scene giblgting allergy bullying in the picture, villain tom has a blackberry allergy, and the rabbits throw blackberrys at him, including one in his mouth. He goes into shock and stabbing him with an epipen it brings light to bullying in a blackberry way henry sorkin saw this film. Did he . He went with two friends. It was a dropoff movie situation. A Birthday Party or something . I didnt get to see it. We had a whole conversation about this film. He did not tell me about that scene so like 10 of tupac, have you seen the two scratching. Have you ever watched. Weve gone from where we can watch the simpsons to yeah. Le