Transcripts For CNBC Squawk On The Street 20140318 : vimarsa

CNBC Squawk On The Street March 18, 2014

But its a mostly positive picture in europe and the roadmap today starts with what else but the markets set to open higher yet again after comments from russian president Vladimir Putin but with the fed meeting kicking off today will stocks go back to trading on news from this country. After a long wait one of microsofts flagship programs is coming to your i pad, well tell you which one in just a moment. And theres a new player joining the used video game market and its the biggest retailer in this country. Find out if used games will boost walmarts stock a little later on this hour. Wow, we got a big day, jim, and most of the news today, the news flow, is coming out of russia. Yes. Putin is responsible for the futures being higher. Well, obviously took a big position at the close. Do you think that do you think facetious and here comes another facetious comment. I saw you said that norway and ireland are down. Dublin and oslo worried about putin coming in there. I love the idea that suddenly we say putin not going anywhere else. That said there was a great guest on squawk who said putin really had to do this. He didnt want nato in there. He didnt want to cut off the fleet. It was kind of rational. Im not defending putin. Obviously not a really great guy. But i do think that this moment is one of these moments where he gives us kind of like what happened in germany in 39. I know you are never supposed to analogize to nazi germany, but hitler claimed he wouldnt go to the next place after he went to the first place. Prague, im done and then warsaw, so lets be careful but lets understand that putin does allow you to go long here. This is a picture youre looking at from earlier this morning. Mr. Putin giving a News Conference in moscow today saying dont believe those who say we need more than crimea. The futures certainly moved on that. And i love your note this morning because you took that to mean putin is not taking over vienna, prague, warsaw, athens, bare riss, oslo, budapest, latvia, yet. There was a dot, dot, dot, yet. I thought i should get a little blueprint going. This is so funny every time we get off the off of anything involving russia, bingo, what happens is, hey, do you know what, Housing Starts are okay. Do you know what happened . Inflations okay. So, we keep it forces us to look at our own country for a minute and i always like that. You like it enough, again, i love the tweet that you put out some, what, two hours ago. I still hope a day will come when we take a cue from our own countrys strength. Wow, the netherlands is off. Im freaking out here. I remember the whole periods, like, from, you know, like, the beginning of the previous century to the end of the previous century when we took our cue from ourselves. And by the way, had you just done that ever the course of this bull market, you would have done a lot more money than if you were taking it from cypress or turkey or argentina. But the emerging people present themselves as big or a hedge fund manager, you want to sound big and have gravitas and look at this ukraine. Theres probably people dont know where ukraine is, but all of a sudden they do, they have google maps. Google maps, look at this, wow, kiev. We should be focusing on our numbers. Our numbers are good. Our country is stronger than we thought. Which is why our markets go higher theres still risk, though, geopolitically, right . Yes. Maybe it subsided a little bit. Look, i know better than to say that i shouldnt worry about an earthquake in japan and i know that i should worry about what putins doing but i also think that in the mix simultaneously should be u. S. As opposed to some sort of flowchart where we go, okay, first we check off putin and then we check off ukraine and then we get to Housing Starts. I would like to reverse that process because of Housing Starts and permits are good, that says good things about retail which is what ive been worried about. Im concerned about retail. Obviously we always have to talk about tesla. Teslas the new apple. The goldman piece, its hilarious, the recommendation, nonrecommendation. This was the best piece i have read. I got to go right to it because i havent mentioned Goldman Sachs says the auto business is worth 180 and the store business is worth 20 but if you value it in the steve jobs analysis you get 442 and if you evaluate elon musk as henry ford you get 478. Elon musk is the may tag repair man you get 329 and a loser, 366. Tesla is the new apple and we have to focus on tesla. Even though apple did something today. I dont care. Lets hope hes not the loser at 66. The actual valuation and this is all people will be talking about, auto business 180, and storage business 220 and target price 200. Well have to focus on whats taking place in washington. Where is secretary kerry . Did he have a Big Press Conference detailing what he would do . Where is kerry . Wheres kerry . I know it sounds like i pronounce it with curry, im from philadelphia and excuse me. Hell forgive you. The fed is kicking off this twoday meeting and yellen will meet the press for the first time. That matters. As fed chairman. Thats big. Yes. Shell likely continue on the road of tapering. Right. I would assume you think its good, too, it goes back to your tweet. The tenyear 2. 6. The tenyear is marching to the beat of actual Economic Activity where there are some people i think the bonds a little too bearish. Remember the Interest Rates did not go up after we had a good employment number but the bonds are divorcing themselves from yellen. You want to get back to the model actually pre1998 when the fed was oh, whats the fed up to. This will be a period where i think that its an era of good feelings still. I think yellens still very honeymoon. I think there will be people that blast the futures down. As soon as she comes to the podium. Thats kind of, like, a test, you know, like, lets throw a few shots at her and the futures go down and theres no followthrough and then they go back and you are okay. There are probably some people out there who are still hanging their hat on the belief that the fed is going to at some point stop its tapering process and that is going to be good for the market. Theres got to be some people out there who are still hoping for lack of a better word on that. The people who are taking nova. Theyre taking nova to win it all. I mean, theres always people who are taking baylor to take it all. These are peopling going for long shots its not paying off right now. It might pay off. Maybe these are people taking a 16 seed against a 1 seed. Hows that worked for you . Not good. Yeah. Not good. Exactly. We want to focus it may bee good at some point. Doesnt have to happen at some point . I think people have to recognize as important as we think the fed may be, its less important given the fact that the ten years doing nothing. We have to stay the course knowing that the fed is not our enemy. The f enemy and remains not our enemy. Did you see the china numbers that were not as good as we thought . No, i just made that up. Thats something you say every day, too. Thats what people are looking for. Can i just tell you if i were part of this people the people who were polled about china, i would come in with these minus five baselines, suddenly wed be saying, wow, its better than we thought. I would skew the whole thing down. Have you ever thought about how wrong theyve been for months . Why dont they lower their estimates if china were my crone, if china were intel. Cutting numbers the estimate are starting to come down on what the expected growth is going to be. Soon i was going to say soon six is going to be acceptable because well be conditioned about it. And then we dont care about china. You need to this get to where the estimates can be beaten and we take china off the table. Why dont we talk about venezuela . Ill throw that in the mix. I didnt realize venezuela after saudi arabia and canada has the biggest untapped reserve of oil. Some people think its the second biggest. We never talk about that and i throw that in the mix of another baylor to take the final four. We can make scenarios. I like housing doing well. I like the fed being our friends. Those are the scenarios im focused to make money. Lets talk a little microsoft. May unveil an ipad version of the companys Office Software on march 27th that according to reuters. Satya nadella who replaced Steve Ballmer will address the media and industry executives in San Francisco. Investors have urged microsoft for years to adapt office for mobile devices from apple and google rather than shackling it to windows as pc sales have declined. Theyve been sacrificing about 2. 5 billion in revenue as a result of all this, so if you cant beat them, join them. Yeah. I think this could be a glasnost period of microsoft. Theres great stuff in the steves jobs biography about how they feel about microsoft and they are hopeless. Do i think its hopeless . A new guy comes in and a new broom sweeps clean. If thats true why isnt mark ballmer exiting . And i can say that because i was a ballmer buddy crony from college. This may have happened sooner if not for some reported internal divisions over, you know, whether this was the right way to go or not. And that tells you that even though theres a new ceo, theres still some of the old in microsoft. Very much. People are not willing to take that big leap forward yet. No. Thats why the stock goes up incrementally. The stocks not a bad stock of the cohort of yesteryear companies that people care far too much about. Its done better than the rest of the cohort. Its interesting the cloud plays have done quite poorly although the cloud ipos have been done quite well. Theres a mix between old and new tech. People dont know where to place the bets. People are quietly putting money toward microsoft because they feel theres kind of an activist approach to turning it upside down. Dont get too excited. Its a big day for old tech. You got oracle and adobe from the cloud play with earnings after the bell. Adobe has reinvented itself. Hp upgraded, a downgrade for cisco, its old tech that is taking center stage. I saw someone say buy my crone off a japanese earthquake from march 13th. People want to talk about these names and i think that, do you know what, i dont see any of the old techs really moving up that much. Hewlettpackard has done quietly well over time. Ciscos done poorly. Hp the stock up, you know, 30 plus percent over a year. Ever since meg came in. Ive had the debate with some of the traders on the halftime show as to whether the ship is really turned or its just the street views the captain as more credible so that maybe its heading in the right direction but its not fully turned yet. Installed base is good. Dell has been quietly telling people that the business has gotten a little bit better. I think that she has credibility. Yes. She is a credible ceo. In what was an incredibly ridiculous situation. All right. Well, coming up next, or coming up, yukar kane is the author of a new book. Lets look at future future dow an implied up open and the Dow Jones Jones is up 40 and the nasdaq up over 5. More squawk on the street live from post nine on the New York Stock Exchange when we return. Welcome back. In an address to russias parliament the countrys president Vladimir Putin defying western sanctions by signing a treaty to make crimea part of russia but he said he has no plans to seize other regions of youve crane. Steve sedgwick is live with more details. Reporter its the last line that has got everybody a little bit calmer in this crisis in ukraine. We have no intention of splitting ukraine. He told the people of ukraine directly in that address he said dont believe those in kiev and elsewhere who say that is our intention, of course, that is what a whole series of politicians have been telling us on cnbc and the world that they are concerned that there is a greater extent to russian ambitions in the ukraine and its that latter point which is the absolute key. He also added, though, that theres no one to talk to legitimately in kiev saying that the government was full of antisemites, of radicals, of ultranationalists as well and he said the west had overstepped the mark, we had behaved irrationally in the west and had lost its original sense. He said the original agreement to khrushchev to hand crimea to ukraine had violated norms as well. Very adamant it was crimea was russ russias and it was theirs all along. This is getting less airtime in the west so far, but theyve made the admission that nato membership is not on the agenda. That could be quite good to calm russian nerves as well and may be part of a diplomatic process as well. They said ukraine does not regard relations with either eu or russia. It could be obviously a commonality. It doesnt have to be a all or none principle and adding to build relations with russia is the key point. One thing i want to tell viewers i understand the Prime Minister yatsenyuk will be speaking by satellite to armed forces in the crimea, to Ukrainian Armed forces in the crimea in the next hour. I think its absolutely fascinating what yatsenyuk, what the russians dont recognize and what the west does recognize what he says to his troops in crimea could be absolutely amazing and quite fascinating and could be the next level in this whole hopefully diplomacy and hopefully not aggravating the crisis. But the take away line from putin, we respect the rest of ukraine. Back to you. Right now the market the great report. The no nato initiative. I am concerned about certain factors factions within ukraine being provoked which would then give the russians a chance. That would be kind of what would the Worst Nightmare would be that ukraines not in control ukraine. And that would cause the russians to take action. There was a feeling i think late last week that it would get worse before it got better and maybe thats off the table. Yes. At least at the present time. They come in nato and the west pays billions of dollars i think thats a quid pro quo that seems to be taken off the table now. Watch ukraine to see if it does provoke russia. That would be bad. Its cramers mad dash as we count down to the opening bell. Lets look at futures as well. It looks like this tuesday on the street will start out a pretty good one ask a green one at that. The dow implied open 43. More squawk on the street live from the New York Stock Exchange is straight ahead. K is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable, professional. Im actually a dj. [ dance music plays ] woman [laughs] no way that really is you . If theyre not a cfp pro, you just dont know. Cfp work with the highest standard. No two people have the same financial goals. Pnc investments works with you to understand yours and helps plan for your retirement. Talk to a pnc investments Financial Advisor today. Eight minutes or so before the opening bell, time now for cramers mad dash ahead of that market open and we are starting with amazon. Yes. Now, this is a classic sign of the times piece. Im going to read the headline. Underperformance creates buying opportunity with catalyst. The stock has underperformed for five nanoseconds here, opco says ged behind it. They are raising estimates. They are saying this, i love it, valuation remains compelling. In that world where you dont need to earn anything if you want to stack all the companies that dont earn anything together, this is the cheapest of the companies that dont earn anything. Theres a report that amazon will come out with the video streaming device, the longawaited product. I would probably try it out. One of the things about amazon if you like this, youll like that. I mean, i like a lot of things i dont even like because amazon told me to like them because theyre able to anticipate my corporate intelligence. Maybe not an accident, too, that they come out with the price increase for prime and they give you something on the back end, hey, were coming out with a device, too. I think this works. I think this is a timely push. Lets talk Luxury Retails. This is a shattering of the idols. Barclays goes to an absolute sell on kors. This was a gigantic short geez and the stock has maintained this valuation for a long time. This will take the street by surprise because this is the momentum retailer that everyone has been behind. This is dare i say the chipotle of handbags. It makes you wonder, though, what it means for the overall Luxury Retail sector which a lot of people are bullish on. They are. And tiffany reports this week. They raised the estimates. I think tiffany will report a good number. Kors this stock has moved too much for me. I feel like, yes, its a great story but were just paying too much for a great story because you only have a lot of 20 , 30 comp situations out there. I feel better buying a philip vanheusen. But im not a momentum player when it comes to apparel because ive been burned too often. They were more positive on pvh. I thought that was an interesting call. People are saying that Manny Chirico and pvh are not going to deliver. I think they are basically saying its in the stock. The best is g3 Holdings People dont realize it as being a terrific apparel play because it just doesnt capture the fancy of investors. Michael kors stock will be heavy. Well take a look at that. The opening bell minutes away. Squawk on the street will be right back. [ male announcer ] a car that is able to see, to calculate, to think and can respond to what it encounters. Even if that means completely stopping itself. Its the stuff of science fiction. Minus the fiction. The 2014 eclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. You are watching cnbc squawk on the street live from the Financial Capital of the world. Where the opening bell is set to ring in about 2 30. Theres a guy on a boflex, jim. If you like that story, you should like the life f

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