S p futures off by five. A coalition of middle eastern forces pounding targets for a second day. Oil prices surging after a first roun of military action but right now crude oil prices are falling back down. Down over 2 for wti. Goldman sachs saying the strikes would have little impact on oil supplies because yemen is a small producer of crude but theyre worried about instability in the region. Crude oil prices are backing down. You can see wti is down by just over a dollar. 50. 28. Theres also a straight there with Something Like 4 million its the fourth largest position where oil is being moved through that. Just in trying to understand who is allied and who is not allied its almost impossible at this point and the talks, whether were doing it just to try to diffuse the Nuclear Situation and were not interested in being an ally of iran for some reason were definitely it looks like at least the people over there i heard on the other news networks, it looks to some people theyre not sure which camp were in now and we do look definitely closer to iran than in the past and iran was mortal enemies with a lot of our long standing allies so here we are in yemen and the saudis are stepping in because theyre iranian backed rebels. The enemy of your enemy is now at play over there. Its hard to say youre my mortal enemy on this front but were allies on this front. Its screwed up. When you look at isis and how were saying wed rather be with you because isis is a bigger enemy. However on this active war front were going to side with them and the criticism is coming on the administrations yemen policy. Earnest as recently as two days ago was saying it was a huge success. The guy had to leave, the backed regime is in saudi arabia now. But this is not something new. Saddam hussein was our ally too. That took five to ten years to turn around. This has been in an instant. We conceded on a lot of issues on trying to get this deal done but trying to hard. The question is do we have any teeth or not. Right. Obama already has one. Maybe he wants to bolster the credentials for why he got it in the first place. Part of the problem is the economic sanctions on iran were effective in getting that regime to the table. Theres not necessarily any idea that we could get back to that position with the European Partners that they don want to go back to the sanctions. Its a question of whether you can put those back in play. It seems like a reflection point. If earnings are going to be tough and going up this might be a tile where people say well theres nothing else well you know you want the best return you can but sometimes a return of your money is a pretty good return and if things are going to which may be why the ten year was back above 2 yesterday. All right. And then we got this. The investigation into the german wings flight crash into the alps is now centering around the life of the copilot. Officials believe as you know by now that he locked the captain out of the cockpit and deliberately took the plane down. Police in germany seized a lot of stuff. A host of items including a computer and well have a live report on the investigation coming up in just a few minutes. Nbcs bill nealy will join us from the crash site. Switching gears to look at the stocks that could be on the move this morning, yahoo announced it be boost the stock buy back by 2 billion. This is an extension of the 5 billion buy back program and that was started in 2013. Restoration hardware giving weak guidance after Fourth Quarter results in line with expectations. Theyre citing the negative impact of that west coast port shutdown and check out gamestop. The video Game Retailer missing expectations after a 5 drop in revenue. Also giving weaker than expected guidance for the First Quarter and for the rest of 2015 and the companys cfo will join us at 8 15 eastern time to talk about the latest results and what it means for the next quarter. She will have a base pay of 650,000. A 5 million one time signing bonus and a 25 million in stock grants that i think vest through 2016 or 2017. She will join google on may 26th of 2015. Amazon. Com may be about to add more luxury goods to its product line. Amazon is in talks to buy the online luxury retailer netaporter. It says the talks are in the early stages and might not lead to a deal. Those were nice numbers. Even more. It was Something Like 70 million. Go to school. Study technology. Finance. Work hard. Go get a good job. Sounded like the numbers. 70 million, isnt that the same pay package i recently saw for an athlete, for a Football Player that went back to the jets. Dont go work in media like at the New York Times where youll be bitter for the rest of your life and writing about how unfair this is that this lady is getting so much money. Embrace it. Its a great country. I love that. Most of this is stock option compensation so hell only do well if the companies do well. She is very good at what she does. The first actress to break through the 20 million for a movie, do you remember when it was . She played a legal assistant and she was a pretty woman once. Julia roberts. In 2000 or 2002 or something. I remember when that happened. Dont be bitter with a was her name ruth . Dont be bitter for her. She has to work years to make the 25. This was for a movie. The Senate Passed a republican backed budget with 5 trillion in spending cuts and a rule that would allow repeal of obamacare with a simple majority vote rather than a 60 vote threshold. The vote took place after a long session that didnt end until after 3 00 a. M. Local time. The house passed a slightly different version on wednesday night. Im sure this is going nowhere. Its not going to get past the president s desk. Definitely not. I had fun. I wouldnt stay up past 3 00 a. M. If i knew it was all for naught. Theyre going on recess today. So they had to get that. Well if i did stay up wed come straight in. Because its a half hour before the alarm clock goes off anyway. Exactly. Lets get a check on the markets this morning. The stock market has gone 0 and 4 for this week. That hasnt happened for the dow since march of 2014. It hasnt happened for the s p 500 since may of 2012. You can see some moderate declines this morning with dow futures down 23 points right now. S p futures off by 4 and nasdaq down by 4 as well. In europe in the early trading youll see mixed performance. Cac is slightly higher. In asia overnight numbers were roughly in line with expectations. Nikkei down by 1 . Shanghai was up by about one quarter of 1 . Wti this morning looks like it is down. Down by close to 2 . Of course this comes after big gains yesterday when wti was up by better than 4 . Right now its trading at 50. 42 cents. In the bond market the ten year yield is sitting below 2 . It pushed back above 2 yesterday for the First Time Since the fed spoke last week and lead investors to think maybe the rate hikes wouldnt be coming so soon. This morning the dollar is up against the euro and the yen. Dollar wrrks en is atyen is at 119. The investigation into the germanwings crash in the alps centering around the copilot. Bill is joining us from the crash site in france bill. Good morning, becky. The search teams, the search helicopters are going back and forth here to the crash site where theyre removing body parts, jewelry, clothing anything that can identify the ones that died on that plane and theyre being brought back here to be examined. But the main focus of the investigation is in germany and theyre looking into the background of the 27yearold copilot. In particular what happened to him six years ago. In 2009 he was training to be a pilot at the Training School in phoenix arizona but he had a severe, what was called a severe depressive episode and his training was suspended. It was suspended for 1. 5 years because he was designated as not suitable for flying. He then retook some of his courses but on his pilots license there was still a code that designated that he suffered from depression in the past so obviously investigators are looking at that. Its also said that he broke up with his girlfriend of 7 years recently so people are looking at his personal life as well. His parents who were flown into Southern France yesterday are due to be questioned by police in Southern France today. His parents, his father a business man, his mother a piano teacher to try to glean if they knew of anything that would have caused their son to crash the plane into the side of the mountain. So were learning more details about him but still its a complete mystery. The announcement yesterday still left everyone here absolutely reeling and as you say; the key question is why on earth did he do this . Back to you becky. Thank you again. Well continue to update you as we get more information. All right. We already said four days down and theres a saying never short a dull market but lets talk about this market and if theres anything that could give it a sort of burst on the upside because weve seen down days some volatility. Joining us now for the next hour is the chief investment strategist and author of my side of the street and steven wood chief Market Strategist at Russell Investments good morning to you both. That sounds childish and selfish. You own a side of the street that no one else can use or something . Yeah. Really . What gives you the right . Isnt it public property . Youll like the book because its defense of the capital markets. We need it. The subtitle is why master of the university dont represent kind of the real wall street. Ive been doing this for 27 years and ive gotten very tired of all the wolf of wall street stuff. He was based in long island. He should have been selling aluminum siding. He had nothing to do with wall street. Exactly. But i had so many conversations on the sides of soccer fields about is that what you do or is that what its really like . No its not at all. Why didnt anyone go to jail when goldman and j. P. Morgan are guys like wolf of wall street. Yeah. So heres my just keep it simple stupid rates are going up and earnings will be flat or disappointing because of the weak dollar. If you believe that some of the move in the stock market was orchestrated by easy money then why not step aside right now . Stepping aside for a short time might not be a bad idea. Correction seems like its in the process of happening. By the same token though i think ultimately what changes or what ends Business Cycles is inflation, the fed might tighten but you saw it on the short end by 150 basis points. They tighten to try to normalize rates. I dont see that as a longterm problem. The fed will tell you that its not tightening. Its getting toward normalization. We know its going to be tighter than yesterday. The day after they move. Thats true but normally though the stock market tends to do well in the initial stages of fed tightening in the same way it does well in the initial stages of margin declines because thats happening for good reasons. You to pay up for labor, cost of capital goes up so its only in extremists that it becomes a problem. You have time if youre looking for the big one you have another year or two years. This might be a correction. I dont think its the big one. Thats assuming they do raise. If they dont raise thats negative too, dont you think . Id be even more worried. Yeah because of what it says about the global deflationary environment. I think the fed is institutionally above zero. Charged for lending money. They go to 50 basis points but i think thats an institutional preference they have. I dont think theyre data dependent at all. They want 25 to 50 basis points and september makes a lot of sense and at that point then they become data dependent but it would take something really apocalyptic for them not to get back to that more normal. You were with fisher. I wasnt the only one. I wasnt accusing you of anything. Nothing happened. Did he say anything . Yes. They would like to be in a range and get there sooner rather than later but his take on the labor market versus inflation so a very long question about what about the Labor Force Participation and Wage Inflation and his point was that doesnt make any difference. Once they do their employment then theyre going to turn toward inflation and they want to get close to if not at 2 . So this could, as you say, this could foam that runway on rates for awhile. They go positive but its going to be a lower rate environment. They have to compete with the europeans, the bank of japan, so this is a loose monetary environment. I still liked the guy the other day that said sell everything here and buy japan and europe. Why not . Thats our call. We upgraded europe last fall and japan as well. The economy in the United States is doing well. Sentiment looked good but valuations are something of an issue so hooking last year into europe because things didnt look great we knew that the European CentralBank Mario Draghi is like a wizard. Hes like the gandolf of our age. He gets these huge effects out of quantitative easing. Thats just beginning and from an investor perspective that carey creates upside. I would say japan too. I still find when i run around and talk to Institutional Investors no one is behind japan. U. S. Investors are saying im going to make another mistake. Have gotten burned so many times here im not going to do this one again and one of the interesting things i saw out of japan a couple of weeks ago is one of the companies there had two outside directors. They were some what subject to activist pressure from the United States. And they actually gave back some of the cash to shareholders and you say, boy, youre talking about a marginal change for a Career Company in japan to actually the whole country is potentially a big lbo in a way so i dont know if ooifrd sell everything in the u. S. And buy japan and europe but i would agree theres really great opportunities in japan and europe. I just you know so many things have aligned here. Talking about apple and stuff like that. 800 billion company that we decide thats good yeah lets add it now. It just scares me. Yeah. Is it going to double again . No. The only thing is you and i talked about this like maybe a week and a half ago. The one thing you say is how could it not be in the dow. Weve bbeen saying that for a long time. It has to be. Its supposed to be a diagnostic tool. So it has to be in there but listen the record of companies that hit these types of valuations when it was at 150 billion instead of 750 billion, why not do it then . Well the s p well the dow would probably be like 22 or 23,000 right now if we had done it then. Right. So thats not bad. Thats not bad. Theres much less money index to the dow than s p 500. Thank you. Theyll be with us throughout the oil. Crude oil prices coming back down. Will the violence in the middle east be a one day event for the oil markets . As we head to a break this morning, check out this date in history. You can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. Now with the xfinity tv go app, you can watch live tv anytime. Its never been easier with so Many Networks all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Since 2007 how much have airlines saved by reducing mishandled bag costs . 18 billion. Welcome back to squawk box everyone. A very tense scene in new york city. A building collapsing late in the afternoon in east village. The early reports say it was caused by a gas line explosion that occurred near the ground floor of the building. 19 people were injured. Several in critical condition. It was another night of air strikes in yemen. Hadley gamble joins us from london with an update. Good day. How are you . Hey, joe. So another round of Saudi Coalition air strikes pounding targets in yemen today and this time near the president s compound in the capital city as well as an air force base northwest of the capital. These rebels are highly concentrated as they come as saudi arabia and egypt are refusing to rule out the possibility in that country. Thousand of people taking to the streets yesterday in protest to what they say is a criminal and unjust campaign and today the Saudiled Coalition moved to secure through the red sea through the gulf of aden. Much of the oil exports head easts a sizable portion traveling through the straight. The straight is 2 miles wide. Its closure could force tankers to travel thousands of miles out of their way. The countries and egypt vowed to keep that open. Also overnight a move from arab Foreign Ministers toward an escalation. Theyre agreeing to a join rapid force. Its a move on the table before but theyre countries are now facing unprecedented security threats and theyre talking about iran and all of this is coming as the u. S. Is inching ever closer to a deal with tehran over nuclear capabilities. Its faced it on both sides of the aisle and galvanized sawudi arabia and the uae. Its quite clear its going to go ahead. Thank you very much. Again we have been watching this situation closely as well especially because of what its meant for oil price. Oil prices are backing off a bit this morning. Still crude oil is up nearly 8 this week. For more perspective on this the ceo of brightlink energy joins us now. We know that yemen is a small supplier of oil but theres an important straight there thats a choke hold for oil getting transported and more chaos in the region. What does it mean. The middle east has been on a tender box for 3,000 years. What weve seen yesterday was more geo Political Risk