Fears and german retail sales were no good either. The roadmap begins with the market and were set to open deep in the red with dow futures down triple digits and the stocks are on track for the biggest monthly drop since february of 2009. And walmart set to open in the red after lowering guidance for the Current Quarter and amazon and google going in different directions. Amazon slipping after Fourth Quarter earnings miss while google moving to the upside after revenue topped those expectations. Well start, of course, with the markets. Signaling a steep drop at the open as stocks aim for their first down january since 2010. Investors still worried about the emerging markets after a drop in euro zone inflation shows recovery overseas is still weak. Thats not counting walmart, mattel, mastercard saying not such great things about the consumer. Mastercard had expense issues. I really love that company so i want to separate that. I think walmarts doing poorly. But i think, carl, unless theres some event that we dont know about over the weekend, this kind of input should not have the futures down this much. So, in other words, unless someone actually knows that theres some chinese number or something that im not and Lunar New Year, so theres not much going on there. This seems like an overreaction. I want to say its much ado about nothing, because if there is something i wont feel that way, that we dont know. Last day of the month. Right. We know month ends can be different. Right . To what degree is that playing a role today . I think there may be someone who is going bust or something. But the dow is set to open down 6 for the year so far. And i dont think the stocks that are in the dow deserve an aggregate to be down 6 . Theres enough good there that you really want let the futures take stocks down and do some picking. I hope the futures knock down y c chipotle because that was one of the great quarters. Streets at 165, theyre closing 50 Underperforming Stores in china, brazil, the reduction of food stamps they say had a bigger impact than they thought. Yeah. There is a food stamp remember, the 40 Million People on food stamps and the government made a series of miscues here, i think. The food stamps, Unemployment Benefits and, by the way, the shutdown. That strikes deep in the heart of america. We keep forgetting when you speak to the ceos who are in retail, they always talk about we forget about the shutdown. But i do think there is a definitive stopping of the government, stopping of spending that happened and walmart also had weather. Im not going to dismiss the weather. I know Howard Schultz of starbucks said dismiss the weather but theres too many places in the country where business was shut down. I think walmart is uniquely in the wrong space. Theyve got the wrong demo its unfortunate, because 100 Million People shop at walmart, but maybe people are going away from walmart to shop. What about those who want to draw connections between walmart and mattel, fisherprice down 13 in the quarter. The ceo calls it a transformative year in retail. Look, i think, again, to go back to what howard said, because howard is shifting his whole business at starbucks toward going toward this change to digital retail, i think some companies had the right merchandise. Costco is up 5 , macys up 5 , starbucks up 5 , the guys that have a good culture are doing well. I want to come back, you did a fabulous special on costco. Costcos got a lot of members. I mean, i was reading my costco connections last night. The cover. They went with samsung. You know, theyre at war with the big dogs in cupertino and i come back and theres a secular shift in the way people are shopping. Certainly shopping, we still if you look at the home builders, those companies are making some money but i dont want to get as bearish as the futures are. Theres obviously a lot of stuff wrong but the government really hurts. Lets get to the big tech movers amazon and google and amazon is trading sharply lower in the premarket, they did miss estimates and the company is considering a 20 to 40 price hike on its prime service and google trading up in the premarket after those results the stock set to open at a new high as earnings and revenue rise. I dont know which one you want to tackle first. Operating margin for amazon is at a twoyear high. But people dont want profit for amazon. I mean, its really absurd. Because why . Because theyre worried that profits mean they see growth slowing down . Yes. The idea is if you have to raise prime which they talked about as being the same price forever and i think is one of the great bargains in the universe, if you have to raise prime maybe people feel like it slows down and when costco raised the price for their first time 100 people going for it. People in prime will stick boy prime. I dont think amazon is nearly as negative. But it had such a run. Google, on the other hand, google like facebook the question is whether they want to own the world. Im looking at the money that google has and they hired a Procter Gamble guy. Very smart guy. Theyre talking about how we can start monetizing youtube. Google if they wanted to could go buy nfl rights and if they figured out the algorithm whether people should pay this much per game, maybe they should pay 24 for the super bowl but only pay 12 for the San Francisco seattle game going to the super bowl. Google is a monster. Its a beast. Its a beast. The calls really fabulous. You mentioned last night on mad money cost per click down 11. Continues that trend. But the number of paid clicks up 31. Yeah. I mean, they own this thing. Its kind of a not really addressed in a formative way in the Conference Call, but Programmatic Advertising if you want to advertise on the web, you go to them, if you wa been to get advertising on the web, you go to them and they are like a bookie and no one can avoid them. So, google is googles on fire. And i think that when you go through that, theyre very humble on the call. But theyre taking a piece of everything. And if they figure out how to monetize youtube then their earnings can double. We talked about the Google Facebook sophies choice that some investors are in. Which one do i buy . Mark zuckerberg made 3 billion on paper yesterday and hell be on the today show next week. Facebook sells at 35 times 2016 numbers, googles dramatically less than that. These are both really fine companies. I think facebook is a if that is futures bring down facebook i would buy facebook. I dont like to chase up google like this. But, you know, its entirely possible that there are two winners here and i dont want to throw out amazon. Its a cult stock. That will bounce. But, carl, google and facebook when i go through the calls i just say, wow, theyve got the smartest people in the world. We should stop being so down on ourselves as americans. No one in china has anything like these companies. I totally agree. And by the way, the state of the union this week the First Company the president named by name was google which kind of got lost in the shuffle of a lot of other news. We should be proud, these young people. Im in awe. Im in awe. Weve got some breaking news here. Our Steve Liesman i think is back at headquarters with some of that, steve . Carl, thanks very much. The International Monetary fund out with a statement saying recent events show a need for coherent macroeconomic and policies and urgent policies are needed to improve fundamentals in some countries and it shows vigilance over liquidity conditions a bit of an interesting comment right there. They say its difficult to pinpoint a single trigger for the emerging market selloff but the turbulence shows the result of tighter external financing conditions. I think thats the withdrawal of liquidity or tapering on the Federal Reserve. The emerging macket volatility shows the result of Slower Growth and softer Commodity Prices and several emerging markets have taken or responded and taken forceful actions. So, the imf monitoring the situation and putting out a kind of nonpolicy statement here in terms of what they think people should do. Just urging some of the things the imf is already urging saying some have already taken action, carl. Certainly on a morning like this, steve, people want to hear what their take is on a morning like this, thanks so much, Steve Liesman. Sure. Currencies arent moving around as much as futures might make you think. People see 2. 6 on that tenyear and they say, well, there must be a recession brewing or must be something urgent happening this weekend. I come back to the look, i only have the work. I just look at the Conference Calls, you know, i read them and theres a lot of companies that are doing really well and a lot of what ive been addressing the last couple years and thinking about is that the futures take stocks down. They take all stocks down. And then we see about a third of the stocks come back. Im actually going to be looking at the col colgates and the general mills, and watch simon properties, they boosted the dividend and had a great quarter. Real Estate Investment trusts have become accidental high yielders versus the tenyear. If you want to see stability, look at simon properties, look at federal realty. You have been sushsspicious of futures the past couple of days. The guys that trade them, we tend to ascribe great brilliance to them. Its over theyre not theyre not necessarily the smartest man in the room but they all think they are. Okay. Got some big news on microsoft maybe. Reporting the search for a new ceo could end very soon and that an insider is the frontrunner for the position. And reports say that microsofts board is considering replacing bill gates as chairman. Some of the reports suggested an announcement could come as early as today. Nadala runs cloud and enterprise, a sun microyvette. Would that make you happy . Two weeks ago, no, because i wanted an outsider to shake up the company and the last quarter was picture perfect. I want an insider to continue greatness. This guy is doing part of whats right at microsoft. Is he going to break up microsoft . Clearly that would not be. The idea you want an outsider you want a company xbox and skype, you want to have a company that is enterprise and a company that is basically windows. What i see from this man is a continuation of what i think is actually a company thats gotten back on track, surface is pretty good. Windows is pretty good. So, steady as she goes, maybe . Interesting a lot of people now saying im glad its not going to become a car company under mulally. Im glad its not going to be run by nokia. Theres some relief its turned out to be nadella and not somebody else . Microsoft has a lot of good things going, but they missed social and mobile and they caught cloud. They got one out of three. When you go i had last night i had a company i have work day. I talk to these guys and i always think that microsoft could have owned all, all of this this Cloud Platform for human resources. They could have owned it for travel and entertainment. They just didnt move. And i wonder whether this man who is cloud oriented can finally challenge the bennyoff solution to so many businesses because the cloud is the way that everyones been able to reduce their costs and become more efficient and microsoft missed that. They missed mobile, too. They missed mobile. And people might forget it was august when ballmer said he would leave. It has been a Long Time Coming this decision. What about the gates bit . I think its time for every i think that bill gates, look, he created this company and i did work with them when i was at Goldman Sachs and its a great company, but one of the strong signs of companies is when the chairman, founder, they move on and they become more global. He says he wants to do the charity work. Hes been extraordinary at that. Its time to move on. Dont look over the shoulder these people because they cant operate the way they want to. Right. A lot to cover and well see. Well keep our eyes open for any announcement if it is forthcoming today. When we come back a very bright spot in a very down market chipotle seeing a huge move to the upside after a strong order and now it wants to raise prices, will the customers coming, why they are paying so much more for things like avocados. I am paying a fortune for avocados for my restaurant i get it. The dow is up two out of the last eight sessions. More squawk on the street from post nine in a moment. I know one thing that i love you 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. We do . I took the trash out. I know. And thank you so much for that. I think we should get a Medicare Supplement insurance plan. Right now . 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If there is a bright spot in the market this morning it is chipotle, the stock is up more than 10 premarket as the Company Reports a biggerthanexpected growth in Quarterly Sales thanks to an increase in customer visits. It is considering raising prices later this year, jim. Comps up nine three and most of that traffic. Not bad. This is a great quarter. You dont see numbers like that. One of the things i love about chipotle they do the broader ethos call and they tell you what america likes. You should watch, they hate gmos, believes it is farmed and dangerous. Hes about the ethos, and then you have one of the best cfos. The coceo Martin Brandt comes on and then they say, look, the traffics great, the throughput the whole notion of can we get people through, is fantastic. They can raise prices without any resistance. A 9 comp, are you kidding . They are rolling out pizza. We want to see how that goes, asian kitchen, taking their time and making it right. Remarkable. This is a Conference Call that is about my kids. This is about how we like vegetarian food more than we like beef and chicken, how we despise the food chain. This is the antimcdonalds Conference Call and, of course, they are spawned by mcdonalds. Yes. The irony on that will never be lost. One of the great ones. One of the great Conference Calls and its just beautifully scripted. They do see comps for the year in the low to mid single digits. Does that im not worried. This is a seasonally weak quarter and they still blew the numbers away. A lot of people you know, theres group of companies, star burks, costco, chicago pelt lay, whole foods. They all talk. Theyre all winners. They all figured out the American Consumer and the things they have in common are they recognize that organic and natural are what we want. When i look at walmarts numbers and mcdonalds numbers, i do not relate those to being organic and natural. This is a much larger theme than people realize and those four companies that have it right are in a position to take ascendance here. You dont think its ephemeral . You dont think its a fad or a craze . The ceo of costco told me, i said, listen, what do you think about organic and natural . Jim, i thought it was a fad. And it isnt. And im all in. Walmarts struggling. Walmart brings in hain celestial and they are scrambling and mcdonalds doesnt know what to do they are a Great American company with great management. But farmed and dangerous. This Conference Call is about the food chain being corrupt and america believes it. Dairy costs are coming in, but before the break we said tomatoes and avocados and food prices are rising even though the marketing leverage is also rising. I think thats true. Look, i make no secret, i own a Mexican Restaurant and, you know, its get the fresh gauc is important, but you can raise prices at chipotle, i cant raise prices. But they are making 2 million per store. Ive been doing the Square Footage thing, its just phenomenal thats a phenomenal number and they dont serve liquor and tequila and thats where the margins are they got beer. They are not making the margies and getting 12 bucks per, they are just making burritos that a lot of people want. When we come back well get cramers help to set up your portfolio for the weekend. And well get the mad dash next. One more look at futures. Well close owl january the way most of the month has gone. Well be right back. Mine was earned in korea in 1953. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from gener