The futures right now are indicated higher as well. Dow futures up by about 90 points. S p futures up by seven. This is off the lows we had seen this morning. Europe is good too. I think negative Interest Rates reminds me of negative growth. Its too long. Its too many words. We need a new word for these. Some people are writing in to me. What about optist rates. Clever. So japan now has put into effect some outrest rates. Its that simple. Its quicker. Its succinct. Someone suggested that on twitter. The head of the bank of japan said the country is recovering moderately, but they made the move to stop risks by falling oil prices. Did cramer make up f. A. N. G. Stocks . I dont know. They have t. F. A. N. G. Now too. Anyway, they talked about the prices and slowing emerging economies theyve been watching closely. He told reporters that there is more policy ammunition available if necessary, but its hard to think what youd be getting beyond that. Lets tell you about some of the other stories were watching today. The first read on Fourth Quarter gdp is coming out at 8 30 eastern time. Forecasts calling for gdp of just 0. 8 . On todays earnings calendar, were going to go betting numbers from chevron, mastercard, american airlines, and xerox all before the opening bell. Yes, speaking of xerox, the company may be bowing i dont want to say may be bowing to pressure i think they are bowing to pressure from carl icahn. Xerox will split into two separate businesses, hardware and services. Icahn will be getting three seats on the companys board of the services side. Were going to talk about all this in a little bit. In november, icahn had disclosed a large stake in xerox, now 8 , making him the second largest shareholder in that company. He said he would seek talks with management. Icahn spoke with cnbc thursday saying, quote, we think this is a major move and will greatly enhance shareholder value. Xerox expected to announce that move when it reports later this hour. We should tell you, you do not want to miss this, chairman and ceo ursula burns will join us at 7 00 a. M. Eastern time. We hope well be able to talk through all of these issues. A 9 billion company. Its been a long, slow, sickening decline. Today it doesnt look like its bouncing. I was hoping it would go up a little to help carl icahn pay for his contribution last night to Donald Trumps charity for vets. The donald, as i was flipping back and forth and i was up. I just stayed up i cant believe you stayed up. Maryland was playing iowa. Im preparing for march madness. Im going to do it this year. Im watching all these. One finger. One button. Fill in the blank. I know six people on marylands team already. Your wisdom versus my one finger. I know all these players. Im so prepared. Im going to do so well. Im going to call them all. Im going to be the kid that got all of them right. But actually, maryland is great and beat number three. Iowa is overrated. The debate was coming on after. I wanted to stay up and watch. I was really interested to see how the donald did. Well, cnbc and msnbc, to see whether theyre counterprogramming. Its not a question of what you are. Its just a question of price. Remember that expression . And theres no way theyre not going to everybody has a price. And they glued, glued on donald trump. Cnn and msnbc. God bless them. But richard, the frack, one of our guests. He gave some money to trump. I think raised 6 million. And some rich guy that usually wants attention for giving money, but didnt want it in this case and wanted to remain anonymous. People were trying to figure out who that was. And donald himself gave 1 million. Were going to talk about who won that debate. Whether it was a debate. Its not just fewer people watching fox. Megyn kelly looked like she was ready for primetime. Did you see her . I didnt see any of it. I fell asleep. Her eyelashes your like this long. I swear to god. Did you see when she looked down in her eyelashes came down to here. It was important. But it wasnt just who watches fox to see the debate. But theyre losing people that were turning the debate over to watch trump. Who knows. The question is, voting with your remote vcontrol s that the same as voting at the poll . We dont have to wait long. You see the iowa caucus coming up in just a few days. But does that reflect what the nation thought about him . Iowa is going to think one thing. They didnt really bang him that much. They still went after each other like pir ra that almost. Its hard not to go after the people standing next to you on the stage. Jeb bush has struggled. In part, when donald trump was there, he makes it tough. I think jeb, honestly, is being held back by his tie knot. Again last night. Big, not pulled all the way up to his color, no center dimple. It was like this big. Maybe we can get a shot of it. Terrible. Look, everybody is checking their ties. You have ocd. No, im tell what other reason is there . Do you have a reason why hes not getting any traction . Its the tie knot. Well have to take a look at a picture. Politic and the Fashion Police right here. Look at this center dimple. I struggled with the dimple. You dont have a dimple going on over there. You dont always need a dimple. He does a full windsor. Its early. Ive been asked for us to do some tie explanation on the dimple. People struggle with the dimple. They do. Struggle to get one. Theres a guy maybe we should have him as a guest one day. He does a youtube thing, teaches you how to do the dimple. You got to put your finger in there, so to speak. Okay. We have to talk some numbers and results. Youre looking at me like im crazy. Amazons results missed the mark on both some and bottom lines. The stock getting slammed, down as much as 15 . Joining us to break down the results is. Its sort of mind boggling. Best results in a way in terms of just pure revenue number that theyve ever had during a holiday season. You say unbelievable. Yet, they miss. Its like, are the expectations wrong . Are they doing a bad job . No, not at all. This is not a structural issue with amazon at all. Its a simple case of expectation is just getting ahead of themselves. When you look at the quarter, the reason for the miss on the margin was in order to meet the demand that was so great, today had higher variable costs than expected. I think the issue was as you look forward, the nature and magnitude of the investments theyre making werent fully appreciated. Think about it. Billions of dollars going into content. Building out a massive Logistics Network with ships and planes. You have the you want a economics issue with the sameday delivery. India. Well, first of all, aws seems to be doing okay. On the margin side. Lets talk about all the money theyre spending on logistics. Does it make sense to you . I was talking to some of the guys from alibaba who reported yesterday. They obviously had gone a completely different direction. They dont want to own any logistics, but they want to partner with everybody. They view that as a better investment. They can effectively, without actually making the underlying investment, have what they think ultimately will be the same type of logistics. Maybe not. I think what we learned from jeff bezos, at least watching him, is you got to give this guy the benefit of the doubt. The only other ceo in tech i could say that about right now is mark zuckerberg. I think the logistics investments will make sense as we go forward and when we look back to see how much efficiencies theyre able to drive from it. They know where their customers are ordering from. They know exactly what the purchase patterns are. If they can add efficiencies to their own fleet, supplementing the established logistics players, you can create a winning scenario. Given the investment, the longterm numbers, you expect this company to ever really make s significant money . Ultimately. What does that mean anymore . Really . Look, they made money last year, right . At times they do check in with the market to show they can deliver the kind of results people think that they can deliver. But the issue right now is but the question is can they deliver those results every quarter. Its an expectations issue. Theyre delivering the record sales, but if the expectations are xplus ten, its going to constitute a miss. Just as estimates overshot on the high side, you know, i do think that there will be an opportunity to get constructive because theyll probably overshoot again on the downside. Whats your price target now . Na, neutral. Downgraded at the beginning of the year. You dont have an actual number on this thing . No, neutral. Its market perform. When i was a buy, before our downgrade, it was 705. Okay. Thanks, james. Appreciate it. Great to see you. It is the final trading day of the month. It has not been pretty if youre a bull. For the Third Straight year, all thee major indices are down in january. The nasdaq is on pace for its worst january ever. Can the markets turn it around, or is this a signal for a touch year ahead . Joining us is ed campbell, principal at qma, and peter brook far. Lets start with what happened in tokyo overnight. Bank of japan moving to negative Interest Rates to outrest rates, whatever were going to call it. Peter, what does that mean . I think its economic kamikaze. Lets create higher inflation for the japanese people, who are barely seeing a wage growth, and lets amp up the currency battles and hope everything gets better. I think its insane. The old saying, if you get in a hole, stop digging. They keep digging. I think the 54 vote was evidence that kuroda got a lot of pushback to get this through. If this means now theyre out of bullets with qe and this is their last hope, then i think this is a mess. I think this was a bad choice on his part. I dont think were going to get a different result. Ed, what does this do to the Federal Reserve . Does it additional pressure for them not to raise rates just so were not going in the complete going full speed ahead while bank of japan and the ecb are moving the opposite direction . Well, as you pointed out in europe, opening comments, markets had gotten very oversold in january. Thats what you think . And we expected that to generate a policy response. Policymakers were going to try to lean against this because they dont want financial conditions to tighten so much that it further damages growth. So we saw the fed back off a little bit on its language. Not as much as some people had been anticipating. We saw the bank of japan respond here. I think the ecb is going to step up asset purchases in march. So i dont i think this is likely to generate a relief rally. I think its probably going to be short term in nature. I think were going to have a lousy year in u. S. And global stocks. But i dont think this is the beginning of a new bear market. But you think a lousy year, meaning things will go down from here even . No, i think we probably rally from here to end the year, but 2015 was a pretty unrewarding year in u. S. Stocks. I think 2016 is going to be deaa vu all over again. Peter, you said financial kamika kamikaze. Thats something you think the japanese are inflicting on themselves. What does it mean for us in terms of u. S. Stocks . Whats your take . If theyre trying to steal growth through weakening their currency t affects everybody. The irony is the more it gets love, the japanese and weakening their currency, they love the europeans when they weaken the euro, but everyone freaks out when the chinese try to weaken the yuan. Central bankers have really run out of bullets to keep things afloat. The problem is we have inflated the valuations of asset prices so far above what underlying fundamentals are. Were now beginning to see some catch up. Thats the unfortunate thing in terms of multiple compression, which i expect to see. You think its not kentucky th china, its not north korea, its not all these things. Its the last seven years of reserve. Right. And we inflated asset prices so far above the underlying fundamentals. This is the converse of that. Now asset prices will catch up to the underlying fundamentals. Its a good thing we can focus on fundamentals. The problem is asset prices got so far above. You think even with the declines weve seen in the first month of the year that theres more trouble to come . Unfortunately. Look at the futures this morning. They were up 20. Then were giving it back because if central bankers lose their influence, multiples are going to compress. Its nice to be able to travel around the world looking for any signs of easing anywhere. We got draghi last week turning us around. Then china does something, they ease. Now today were going to get a boost from japan easing. Its called the shots for five years. Still is. Unfortunately, its beginning to wear off, the impact. And thats the problem. I think one of the things that makes it maybe not as bad is what peter is outlining is we still dont have inflation. Central banks still have free hand to pursue more actions. Im not saying thats going to i guess the question is the actions they pursue, how effective are they . Theyre not very effective in terms of the economy. But they can be effective in terms of the markets. Inflation is the most dangerous thing that can happen now. Imagine what happens to the world bond markets if theyre actually successful. Imagine what happens to the european bond market. Theyve sewn the seeds for their own implosion of the bond markets if they get what they want. If it works. We want it to work, but we dont want it to work too well. I agree, if we get inflation and get this big backup in rates, then its kind of a disaster scenario. You both agree theyre really threading a needle here, trying to get it to spur things on but not too much. Right. I think its a fallacy to think that you need higher inflation to generate growth. Inflation readings are a symptom of what the underlying growth is. So for kuroda to think i need to generate higher inflation to generate growth is completely backwards. Especially when japanese wage growth is so anemic. Youre basically penalizing the japanese consumer. I dont know what economic theory is behind that. We dont need higher inflation to generate growth. One thing we need is to avoid deflation. For heavily indebted economies, thats the most toxic thing. All right. Gentlemen, thank you both for being here. Really appreciate it. Great seeing you. Coming up, gop candidates taking advantage of Donald Trumps absence in last nights debate. The jabs, the jebs, the ties, and the winners and losers, next. As you know by now, last nights gop debate went on without front runner donald trump, but his absence did not go unnoticed. Im a maniac. And everyone on this stage is stupid, fat, and ugly. And ben, youre a terrible surgeon. Now that weve gotten the donald trump portion out of the way totally spontaneous and ad libbed by ted cruz again. After the candidates tossed jabs at trump, senator cruz and roubo and jeb bush sparred over immigration. We both made the identical promises, but when we came to washington, we made a different choice. Marco made the choice to go the direction of the major donors to support amnesty because he thought it was politically advantageous. I think people, when youre elected, you need to do things, and he led the charge to finally fix this immigration problem that has existed now for, as marco says, 30 years. Then he cut and run because it wasnt popular amongst conservatives, i guess. Its interesting that jeb mentions the book. Thats the book where you changed your position on immigration. You used to support a path to citizenship. So did you. Well you wrote a book meanwhile, donald trump hosted an event for veterans just a few miles away at drake university. He said his foundation had raised over 5 million for veterans in just one day. Trump joked about the timing of his event to steal viewers from fox. Fox has been extremely nice the last number of hours, actually. And theyve wanted me there, and they said, how about now . They called a few minutes ago. How about now . Can you come over . I said, hasnt it already started . We actually thought what wed do is let them start, and you know, we wanted to be about 15 minutes into that hour so that by now theyre all tuned in. Look at all the cameras. Its like the academy awards. This is the academy awards. He said fox news apologized to him. He wanted to do the debate, but after he announced the event for veterans, there was nothing he could do. He asked fox to make up the 5 million, and they said they wouldnt do that. Apparently it was confirmed, i think, by a fox person that roger had spoken to him a couple times yesterday as it got later and later. The report i saw said he was also talking to ivanka. He called ivanka and milania. Not to talk to talk donald into appearing. Thats why i dont feel bad. You saw jebs tie knot there. I dont need to show you a freeze frame of it necessarily, but this campaign is so insane. Weve dwelled on the most crazy stuff already this campaign season, that i really think it could make a big difference if hed put it up a little higher, not make it so big, and get the center dimple going. If you cant, you know maybe he doesnt like the way it feels. Well, i dont like the way it feels, but i care about anyway. Here we have senior aide and white house political director for former president george w. Bush, who always looked put together. His ties always had center dimples. Also, chief political strategist at ddc and cnbc contributor in morris reid. This is what im talking about. There you go. Democratic strategist and partner at mercury. Good morning to you both. What we really need to decide is that netnet, good or bad for donald trump that he didnt show, and good or bad for the rest of the candidates that he didnt show . Morris, ill start with you because maybe you can give me something really spicy about how these republicans are all a bunch of clowns. What do you think . First of all, its very good for donald trump. Master of stealing the spotlight. Could you imagine someone else doing that . No one would have shown up. Good for veterans as well. Thats a great issue to get on. Bad for everyone else, particularly for cruz. Particular for cruz. Sarah, do you see it differently or the same . No, i see it differently. I think it was good for many people. It was mostly positive for donald trump. He won the day, i would say, and he didnt have to take any tough questions, which can be perilous at this late stage in the pray mare process. But i thought that marco rubio had a good night. I thought ted cruz did quite fine. I thought jeb bush did great. It was his best debate performance by far. So you know, they had a good night. They seemed much more comfortable without the side show that can be donald trump standing next to them. All the oxygen being sucked out. I think differently. You know, people would say donald trump has been a side show. I dont agree with him, but he certainly has gotten people interested in this election like no other person could have. 40 Million People tuning in. If he wasnt involved, nobody would be paying attention to this. I think its a fair point. I think the challenge for republicans, as you look to build your party and put someone