Business confidence there down for the first time in five months. Our roadmap begins with the nasdaq looking to turn around a second consecutive slide in biotechs, deterioration in what some of these momentum stocks we say. Cloud storage firm box planning to raise over 250 million in an ipo and list under the ticker box. Reports that manager knew of the gm ignition problems prior to the launch of the cobalt and withheld some vehicle data. First up the nasdaq hoping to rebound the morning after the selloff which saw the index closing at 5 1 2 week lows and biotechs took a hit and tesla and netflix. We talked about it yesterday, and wonder if this is a longerterm dynamic in terms of leadership. I think that gilead comeback yesterday was significant but a lot of the others didnt. You know, were going to be talking about box filing and i look at that offering and i say or drop box, too, i say, these are the kind of companies that are putting a lot of pressure on the rest of the companies. People will sell high multiple to sales in order to get on other high multiple to sales in order to get a pop. As long as that happens i cant be sanguine about any ever recovery. Gilead was major league oversold. But, remember, if you have more Biotech Companies coming Public People will sell gilead to get into those, too, you need to see the competition from ipos cease. How much of the money is rotating from the high fliers into safer, highyielding names . Plosser today talking about, you know, 2 somewhere in the 2s in terms of rates in 2015. Its happening. We saw it with the banks. The banks just keep going higher. Jp does that go up on cavanaugh. I thought there was a chance he might one day, well, lets see mike cavanaugh. Shocked. Going to carlisle as a copresident and was largely seen as somewhat of an heir apparent when dimon eventually exited the firm. I thought that. I look at that and say this is a good example, if that stock can power higher, it doesnt matter. People want to be in lower multiple stocks a lot of the lower multiple Semiconductor Stocks kind of held up well yesterday and the industrials. The industrials you could argue they could be hurt by russian sanctions, nobody seems to care so russia voted out of the g8. See you later. And markets, like, what, we dont care right now. I was shocked. Germany europe is up, germany does a huge amount of business with russia. They said lets put it aside. I dont like it either. One day people wake up and say wait a second. Theres a new float of a chinese stimulus plan. I hesitate to say these things because these are central casting when you go down people Start Talking about a chinese stimulus, when you go down people Start Talking about peace breaking out. I got a new one. This one is astonishing, the ruble indicator. The ruble was higher today which indicates that maybe the sanctions wont play that big a role or the sanctions are done. People are taking their cue from the ruble. Its insane. That is insanity. Although some dow theorists are looking at that more triedandtrue theory. Yes. The transports did set a new high in march. Industrials failed to confirm, things like that. That im totally on board with. I love to see the rest of the market catch up. There are a lot of dow stocks that are doing quite well. I mean, yesterday i focused on ibm versus splunk versus mad money. Splunk is without a doubt the best analytics data company. Ibm was very strong yesterday. Ibm no one has a profit in it in the last year, ibm, Warren Buffett has stuck by it, ibm has big cash flow and earnings. Splunk has a big multiple to revenues, not earnings. Its just a casualty. Now, when you look at splunk for the year its up nicely. Someone that owns splunk might say when it rallies today, hey, i got a chance to preserve my gain. I think theres a lot of gain preservations. A lot of the biotechs that are selling off, theyre up huge year over year. Sure. Why not sell gilead, again, i really like gilead, why not sell gilead and get into biotechnology x, it doesnt matter. I was looking at my twitter feed going over today at 4 00 a. M. Because i am completely psychotic and i had a nightmare from watching true detective. And im saying i cant keep up with the developmental biotechs. Yes. You look at them and theyre just a sheet of paper but thats what people want versus gilead. Gilead got knocked down because of waxman saying something, got knock down because the scripps didnt blow away for hepc and its remarkable and the Insurance Companies like it and theyll pay for it. I understand if you can sell that and buy endocyte. I like tried and true. I dont like the rotation. The rotation is to end, carl. Has to end. Whether its biotechs or ipos box jumping in the ipo waters. The Cloud Storage firm filing plans to raise up to 250 million in an ipo and list on the big board under Ticker Symbol box as the Company Faces intense competition from drop box, amazon, google, microsoft. Boxs ceo actually addressed that issue recently on our program. Listen. We have very healthy competition in the market. I think our unique differentiation is were probably the only company that has a focus on the end user and consumer from a delight and a User Experience standpoint that can also deliver their technology in the large enterprises. He owns 4 of the stock and is closely associated with the brand. Closely associated with summit high school. Now, thats okay. We know the younger, the better. Yes. When a 5yearold goes and has a ceo who is a ceo, i want all over it. Box is actually really terrific because box is corporate, its enterprise. I like that even more than drop box. I wonder why hasnt apple bought drop box . Why hasnt ibm or microsoft bought box . Karen swisher said it was on a wouldbe less for microsoft. I thought for sure microsoft would buy it. The one thing i dont like about this market the Public Market is paying far more than microsoft was. They have a great Balance Sheet but theyre not into buying high growth, high multiple to revenue stories and apple obviously is and im sure they are watching. Cramer, what a joke. Has he done any work on us. Ive done a lot of work on drop box i think its a great place to put your pictures if you are with apple. And howston is a bright guy. You say, wow, theyre young and you look at zman and the guys behind google and you say, eight, listen, youth, they own it. Yeah. As they say in the prospectus we do not expect to be profitable for the foreseeable future, how important is that . Valued at 2 billion back in december. Its the amazon model, people keep thinking, do you know what, work day, do you know what, concur, do you know what, amazon. These guys are basically splunk. They are saying you always hear the same thing the opportunity is so great we cant afford to be profitable. Its a very Venture Capital mindset it works if there are only a couple of these but when theres, like, 20. Sure. Suddenly im waiting for software as a Service Company that tells you how to turn the lights on. Wow, you put this in, it tells how to put the lights on. And tells how to make lunch. And it becomes such a buzzword that, again, theres too many of these. Theyre not dotcomes because a lot of these Companies Really do have great businesses but how many can you buy off of multiple to revenues, carl . You cant. Yeah. They got to stop. Some deals have to stop, you know, amber road came. Amber roads a fine company. Its also, by the way, identify think its from plank road brewery, amber road. Fat tire. Im being facetious. Have you watched some of these in the aftermarket are doing quite poorly and you go on your twitter feed, what do i do . What do i do with amber road . Well, what is amber road . Well, amber road is i think its budweiser. Maybe its a mexican beer, right . It could be a mexican beer. Your points well taken and in terms of levie its been does he does business with a smile and a quip and some of his tweets demonstrate that. This is what he said about going public, ipos if you stock shoots up, you left money on the table. If it drops, you screwed investors. If its flat, youre boring. Thats right. If i were aaron levie and ive seen him many times hes very bright speaking of true detectives think of how they made matthew mcconhkoconaughey,n do that. Ive seen it on the movies. There is more fallout this morning from the gm ignition recall. The journal said documents showed gm managers knew of those ignition woes before the 2005 cobalt was launched but felt drivers could safely steer a stalled car off the road. Also the times says that back in 2009 cocall black box data confirmed a potentially fatal defect but gm told accident victims families it lacked evidence. Theyre getting pounding on two fronts. The Charitable Trust owns this and you dont want to read the stories because the stories are so horrible. They are just so horrible. You read this stuff and you say this is your Worst Nightmare some Family Member has been hurt or killed and you really did believe that there was nothing wrong. This is terrible. Ive seen some technicians charted out. Death cross over the 50 and the 200 intersect. It yields 3. 5. Its got a much better Balance Sheet. Look, my Charitable Trust beside myself because when you reeffed the stories and you really dont want to be affiliated with the company at the same time its inexpensive but you dont want to be affiliated. How many people were in on it . Its not asbestos, though, asbestos brought down a lot of companies. Were not talking about a union carbide. No. So, you are going to ride it out . Yes, i am. Obviously these are great lawsuits if you wanted to bring them and theres lots of problems. We dont know who was in charge of the company. Its kind of murky. That said i just feel for everybody and anybody who lost money. This was you got i mean, you really got taken. When we come back, what is the state of housing in this country, in your part of the country nobel laurettereate rob shiller will join us. And it appears to be a tu turnaround tuesday. Ay. Lets get back to the key housing data this morning the latest caseshiller shows the pace is slowing the ten and 20 city composites rose 13 year over year but the 20 city composite posted its third consecutive monthly decline. Robert shiller is a Nobel Laureate professor of economics at yale. Great to have you back. Good morning. Good morning. I think 12 of the 20 had sequential declines going into january. Eight of those were worse than the month before. Is this a weather pattern or is the housing recovery really taking a breather . Well, yeah. The weather was bad this year, but even just normal weather winter or spring is normally a weak time for the housing market. On a seasonally adjusted basis its going up 0. 8 of 1 nationally. Thats good. I mean, there would be something, like, 10 a year. But thats a little bit less, so youre right, it is slowing gradually in the data that we have. Less than the 13 that we just saw. Right. What do you thinks driving that . I dont you know, ive been doing surveys of consumers and following the data. The 13. 2 increase in the 20 city index really isnt driven by individual home buyers and their excitement. Home buyers dont expect much. The new York Fed Survey of home buyers one year expectations has it up only 4 . Thats not exciting. So, i think maybe investors played a big role in this in the runup weve seen in the last year. Robert, jim cramer. I saw 12 cities declined in january. Chicago decreasing 1. 2 . Thats pretty big, isnt it, to decrease 1. 2 . Yeah. But thats an outlier. I think most cities have gone up in seasonally adjusted terms. And so thats what i would look, looking for the overall weakness of the market. Its weakening. You know, i worry that its going to weaken more because i think investors are in the market when they know that theres momentum in home prices more than in stock prices and they were observing these big price increases and its enticing. Now, you know, it may not last and these investors may be gone. Robert, thats a great point because we know there are a lot of investors who said, do you know what, new paradigm, buy the house, rent it out. They always feel so confident when they say that. Could their confidence be misplaced . Right. I think theres theres probably a need to convert Owner Occupied to rental because that seems to be a trend. But the problem is that its not typically a great business to do that unless you can get a good price on the house because its expensive to convert and to maintain disbursed family homes so thats putting just a kind of general drag on the market. You know, investors will be in it, but theyre only going to be in it when they can get a good price. We have heard some anecdotal pieces of evidence regarding inventory in the likes of phoenix and the sunbelt. If this investordominated trend is coming to an end, robert, are we going to feel it first in states like arizona . Well, its interesting that you pick, you know, arizona, phoenix has been slowing down. It was kind of one of the one of the biggest price increases. Also not too far away las vegas is still going gangbusters. I think theres some speculative excitement driving those cities and weve seen it fade a little bit in phoenix. We might see it fade in vegas as well. Yeah. Finally, robert, i had one question on stocks. I dont know if you saw the journal this week took a crack at your schiller p e and in their words stocks are undenbly expensive. Where is your head on that right now . I think stocks are undenbly expensive but im still in the market because i think that even at the present cape, this is my cyclic level, they do all right even at that level. Im not im not pulling out of the market. Interesting take. Yeah. Always got to take your temperature on that. And thanks for the guidance on caseshiller this month. Great. Ive been spending a lot of time looking at zillow and he indicates that things remain plus 4 and he uses different data. Some people like shillers data better, but i feel the value of usual home is not going down and therefore its worth investing in your home which is why a lot of the retailers like a williamssonoma did so well, so i dont want to lose the thesis. I dont think were losing the thee sills that its still a good place to invest in. As he said as the home depot Spring Season begins. One thing i dont like about this as someone who is a gardner. All we can talk about is the ground going to be too cold. 21 degrees this morning. Still frozen two inches below. I dont want to start when you start planting in the third week of may. You miss a lot of the season. When we come back well get cramers mad dash and count down to the opening bell here. Futures are positive. A lot more squawk on the street live from post nine in a moment. Salesperson 1 the real deals the passat tdi clean diesel gets up to 795 highway miles per tank. Salesperson 2 actually, were throwing in a 1,000 fuel reward card. Weve never done that. Thats why theres never been a better time to buy a passat tdi clean diesel. Husband so its like two deals in one . Avo during the salesperson 2 first ever exactly. Volkswagen tdi clean diesel event, get a great deal on a passat tdi, that gets up to 795 highway miles per tank. 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Whoohoo whoohoo just minutes before the bell lets get cramers mad dash before the market open. Watching walgreens here, jim. People that want to believe the market can stabilize will take heart on walgreens. They missed the numbers, however, they gave a very optimistic read for next year with the Alliance Boots deal, stock is looking up. Thats very positive because we know if the markets really rolling over, forget next year, they missed the number. I like that. Comps up four plus and saying the impact of generic drugs will ease later on in the year. And its interesting that perigo goes up and its the generic drug company. Look, i think this is a great company. I think cvs is great and i think rite aid is great. Csx. You mentioned the transports and the transports and the dow didnt confirm. Of the ones that didnt confirm in the transports it was csx because of coal. This piece says that coal has bottomed. Its troughed. Michael word said the same thing to me when he was on mad money. This is one cheap rail versus Union Pacific and norfolk southern. I like it. So, you dont think coal is necessarily a liability for some of the rails here . I think that what happened is it gets so low that it stops being a factor. Norfolk southern went from the high 60s, low 70s to the 90s because basically they said, listen, intermodal is so strong. Csx has great intermodal, too. These are terrific companies. I think they go higher. Thats a good one to watch. Well see how it plays out. The markets are hoping to rebound after a pretty rough monday. The opening bell just minutes away. S away. Bulldog you know, not all heroes wear capes. Bulldog you know, some wear fur. And mattress discounters good deed dogs is here to help them. Meet yara. She helps veterans like marv stay independent. This is caspin. He helps wallace with things she cant do on her own. And goldie helps children with developmental disabilities, while suzie works with people in the hospital. You can be a hero, too. 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