News. Uk had its best manufacturing numbers in three years but the Ukraine Tensions remain as well. Our road map begins with the markets right now futures edging higher as the nasdaq looks to bounce back from the worst threeday drop in over two years. Will i turn around . Citigroup agreeing to pay over a billion dollars to settle claims dating back to the financial crisis in 2008 but thats not the only tough news for the companys stock. Well explain in a moment . Another rough quarter for samsung, operating profit falling over 4 this year. Does the tech giant have some reason to smile . Its coming in a box this week. Well talk about that in a few minutes. First up, what will it take to end the stock markets losing streak. The nasdaq suffering another big drop closing at a two month low and down more than 6 from their recent highs hit a month ago. The dow and s p posting their worst threeday losing streaks since late january. Jim, yesterday on this show you said you would not be afraid to take a flyer on one or two and there was some breakdown of momentum on the downside. Heres what jim said on camera yesterday. I would take a shot at one or two high multiple stocks. Right here. All right. Buying. I would. Prepare to be wrong to erm . I am prepared to be wrong. I would take a shot. I think theres strength underlying. I know its early. Thats a dangerous thing. Im saying one. Not saying that this is your bottom. Thats false. But i think some of these act better than i thought they would. If you had chosen wisely you might have done okay on that deal. Thank you. The ones that we all now are familiar with has been the leaders of the decline did reverse. You know, look, we had kind of a mini rally after the margin clerks were finished. Usually they finish between 1 00 and 2 00. Started seeing stabilization at 2 00, but 2 30 to 3 30 looked good and profit taking came in as people said i cant take any chances. But the analysts are out of the bunker today. I see a number of reiterations. Ive been waiting for. More importantly, the second thing you started with the ten yi, the tenyear is not in that kind of freefall interest. Prices are finally going down and that signifies to some people, maybe were not as in as much trouble. I think people take their cue from bonds whether they should or not because the bond market is so big and got scared yesterday. Thought im missing something, going to do selling in the industrials not just the high teches. Took their cue from janet yellen a few weeksing by a and thats where the stocks started getting no mowed and high multiples coming down. I say this every day but i have to tell you the pain felt in hedge fund land and so many of these names, jim, i think are particularly vulnerable when theyre owned by hedge funds. Talk to tmt guys, telecom, media, Technology Managers or funds focused on it, you cant imagine the losses that theyve taken in march let alone watching their year go away and being down. Sometimes down as much as double digits because these stocks, even though the nasdaq is down a bit, the s p is flat, man, the pain is plentiful. Its funny in this period in 2000, after a lot of people didnt want to compare the run up to nasdaq and we had people saying its very different, you and i have gone back and forth, but this was in 2000 if you go back to this week and next week, you saw the biggest volatility and what you saw was the beginning of the major divergence. The fact i remember this, i dont know, but there was major divergence starting now which was the s p held in and the nasdaq kept rolling over. The rollover had to do with the insider selling, the nonstop deals. We have more deals now. When are these deals going to be this is the busiest week for ipos since 2007. 14 deals will raise almost 5 billion. I was so excited this morning between 5 30 and 6 30 the market looked like it was rolling over the way the nasdaq did and the futures ticked down to 3, 4, and my hope for bulls, that you would open down and people would come in. This is the exact opposite of what you want. I dont want an up opening. You have to shake people out some more when you start hearing what david was saying, some of the hedge funds are turning capital. I find the underperformance so glaring. Were these people saying im not trying to beat the s p, im trying to make a fortune. Usually theres a lets beat the s p socalled delivering alpha and we were all making fun, the papers making fun of warren buffet not delivering alpha, hes delivering performance. I think many of them are trying to deliver alpha. What you talk about when you talk about hedge funds and they own an awful lot of stocks, why many should be aware of the names theyre heavy in, you take down the book, sort of the way they would talk about it. You take down your leverage, exposure, running one, eight, youre running one four. Its not about the money. Its how many times youre levering it, whats your gross. You cut your gross by what, 35, 40 , that takes the stocks down in terms of your ownership. Everybody has im looking at imf things comes out, u. S. Is stronger. Honestly if you own these stocks, high multiple stocks youre betting that theres going to be subpar growth because these companies can exceed growth in revenue and thats not whats happening. Youre seeing yesterday was because of the tenyear. People sold everything except for this is a General Mills market yesterday. Companies that dont have profits. Shares. Companies are very profitable. Ibm, no one, that had a rema remarkable day. Kelloggs, General Mills, campbell soup, companies in the tech space where there were no gains and in the mean tooimg the withdraws and the redemptions truly were ferocious yesterday and then they ended as they typically do, in the last hour when the margin clerks are done. Having served as a margin clerk for one period of my life i can tell you i really didnt have causion with you. I debated whether i should take the keys to your house or let you have another day in your house of which i tended to get a lot of heat when i let you have another day. I wanted the keys. Where did you do that . Where were you a margin clerk . I worked at Goldman Sachs. Right. Oh. Oh. Okay. That was oh. I get it. Yeah. Look, margin rules are margin rules. Im not saying anything. I wanted to make sure i hadnt missed something in the work history. When you were at goldman. Youre like when my daughter was a freshman and said dad, i cannot believe it, did you really work at Goldman Sachs . Like i was a war criminal. That was not the reference. You made me a war criminal. I dont think thats what david was saying. Yes or no. Lets go into the high frequency. Established work history. I did work at goldman. I didnt work at jordan belforts firm. We are going to go over some of the upgrades you mentioned earlier. The fireeyes, netflix, later on today. Well talk citi will pay over 1. 1 billion to 18 institutional investors. That payment will settle claims involving Mortgage Backed securities sold prior to the 2008 financial crisis. They will take a charge of 100 million related to the settlement. The journal says theyre warning investors they may miss a key profitability target after the fed rejected the capital plan last month. Hoping to hit 10 return on tangible common equity by 2302015 and the journal telling people that wont happen. Its biblical there. Biblical . Theres jobs and then jobe. Its got a jobe feel going on there. They dont need capital. I know. What i was trying do was apiece regulators. Say, listen, we will do what you want. Pay fines, you want us to do we will do what you want. Throw yourself at the mercy of the regulators, bring them in and say what do you want us to do . I think that when you look at the staffing of some of the other banks, in compliance, i think you basically are saying i got to take down my return on equity because i have to take up my payment of people who are dead weight loss. Date dead weight loss compliant people. They dont add to the bottom line. They subtract. On this metric return on tangible equity a lot has to do with the denominator being how much equity you got, more than they would have had because they were planning on buying some back, right . Right. Unless im missing something. Unless the numb rater is smaller than people expect i wouldnt think it should have much impact. What this is, if you look at you see these companies in the food business, thats revert to that, growing at 1 to 2 and their earnings per share is growing at 12 to 13, thats the wonder of buybacks that was supposed to help. How long is the market and are investors going to continue to be happy with that . I come back to media stocks which, you know, i tend to focus on. There it has been so important but investors have been willing to not necessarily accept Earnings Growth organically as opposed to manufactured through what are significant buybacks. I thought this was the year you better show revenue growth. Lets watch alcoa today tonight. I know hes going to be on mad money and dont expect the blowout numbers, but you need to hear revenues are Getting Better. You need to hear that europe is better. I mean uk, you mentioned the uk. Yeah. So you need to hear if s growth in the world is rising, the revenues should rise, not just the earnings. 4 of the s p already report and theyre missing the bottom line by about a third of the time. Thats above average. Obviously a small sample of whats to come. But if that continues thats not going to be good. No. Its not been a great run so far. 2014 has been a very rocky period. When the s p is down a point, two points and youre losing 8, 9, 10, 11 maybe you have a problem with your Portfolio Management. No one said, theres a lot of increased volatility and i said on squawk having been a former manager increased volatility that means i got it wrong, lost you a lot of money, betting on stocks that went down. Volatility is a great way to put it, makes it sound like youre almost like jefferson. Or simply at the mercy of something bigger than you. Wow. Existential conflict that caused me to be down 9 . I like that. What could you do . Not much, right . Out of your hands. Its noah. How is that movie doing . I dont know. Got beat out by captain america. Captain america on the cover of booek all about marvel saving disney, the thing weve been talking about a week or two. I would have thought disney would be up on the marvel. Yesterday was a day that should live in infamy for the longs. Yeah. When we come back well talk live with white house Senior AdviserValerie Jarrett, a lot to discuss including the president s equal pay push by takes part today. The past month has been rough for tesla shareholders. Not stock the electric car maker from launching something new. We will talk about that. One more look at futures here as the s p tries to get back in the green for the year. Hasnt fallen four Straight Days since december 13th. Back in just a minute. We showed you the imf outlook at the top of the show. International Monetary Fund saying Global Growth is projected to strengthen 3. 6 in 2014 led by strength in the u. S. Head winds remain as figures remain are 0. 1 below the previous forecast in january. We will talk to Olivier Blanchard coming up in the next hour. Samsung estimating operating profits for its january to march quarter fell 4. 3 . As smartphone sales Growth Continues to slow. Puts the company on track to post a profit decline for the second consecutive quarter. Theyre hoping to get a boost from the new galaxy s5 which rolls out globally on friday. A lot of reviews, embargo was lifted on them overnight. Usa today a strategic decision to tone things down, all those crazy features theyve had in the past, sometimes less is more, and arguably goes further than any rival device in pushing health and fitness. The journal, jeffrey faller, youll see on the screen in a minute, barely moves the needle. Smartphone evolution stalled . Yeah. This is familiar. I did the same thing you did. Immediately turned to the tech page of usa today and i said well, should i switch . I know that verizon is offering a compelling switch offer but not for this one, for the 4. And i think that one of the things thats happened is that its not just tech slowing, its just that, you know, theyre indistinguishable and i think that look, my Charitable Trust buys apple, just too low. Enough is enough. Whats too low and enough is enough . Its a value stock and a lot of the value stocks are trading up. If you look at ibm, theyre supposed to have a 2 decline in revenue and that stock cant stop going up. I mean eventually apple will have the same thing. I know thats look, thats not fireeye. I am not telling you its fireeye. But then again when youre at home, you tend to use your apple not your fireeye. I think that this was i was looking for the samsung to blow them away. I didnt see anything in the reviews that made me feel like, jim, your apple get rid of it. Its like old fashioned. I didnt feel that way. Mossburg did say very good fun but not one compelling to replace last years galaxy or current iphone. Thats where i am. Look, im an upgrader. I always like to upgrade. Youre an early adopter no doubt. I have a nice verizon store, i like to go, and a really good apple store. I love going into apple. Theyre always cordial and fun. I find its i like to shop for phones to learn and this didnt sound like anything. I know i saw the big i love the big screen because im, you know, one of those what do you call it, challenged in terms of like my eyes. Yes. I cant see jack, im legally blind so to speak. But im fine. I didnt think this was samsung is not going to have some big growth off of this. It is water tight. Dip it in a margarita as the journal did. Dip them all the time in margaritas and its been a foolish trade. For the highest margarita you include a phone sometimes . We dropped we our avocado margarita, i drop them all the time. Its amazing. The avocado, its a joy to see what it does to the screen. Its funny on apple, talk about it being a value stock. We talked about it last week, samsung viewed that way despite the growth because it does trade at a low multiple to earnings and not to mention it has a large cash position, not as large as apples almost 160 billion but a significant one that is also going up quickly. Look, these stocks are they got out of favor and now theyre people are searching for whats in favor and whats in favor at least momentarily is the socalled derisk you mentioned, lets sell the high risk and go to value. That could revert. One of the reasons i said look, yesterday, you got to buy one of these, that gets to be a tiresome trade. How high can you really take kellogg . I mean kellogg, talk about something that is not like youre not going to see usa today coming out and say the new corn flakes, they are you should switch corn flakes. Because these corn flakes are new and improved. You tend not to see them. On the subject of phones, how high can you take at t . Thats another one thats been defying the what would seem to be the reality. Which would you Interest Rates are low and people searching for yield. I regard steve i think randall is randall like hes my buddy, i met randall a couple. You know randall stevens, ceo and chairman of the at t. 5. 2 yield is a significant one to your point. Exactly. Next together former Vice President cheney and Randall Stevenson didnt recognize cheney because of stevenson. I think cheney thought i was like wow, i just wanted to ask about the dividend. You did say some of the safe havens are safer than ever. Yes. At t is a good safe stock. There are people who worry about that. Thats why. And steve given the needs of the company. Hes never going to tell me anything. Im just a fly spec. When we come you are a fly spec. When we come back well get cramers mad dash as we count down to the opening bell. One more look at the premarket on this tuesday. Squawk on the street is back in a minute. A minute. Look at them. Making moves that would put an adult in the emergency room. Yet all they really want to do is grow up. Its funny, everyone i know wishes they could go back and feel younger. Sound familiar . Then test drive one of these. Current nongm owners and lessees use your 1,500 allowance to lease the 2014 cadillac ats for around 359 a month with nothing due at signing. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Cozy or cool . Meow or woof . Exactly the way you want it. Until boom, its bedtime your mattress is a battleground of thwarted desire. Enter the allnew sleep number classic series. Designed to let couples sleep together in individualized comfort. Starting at just 699. 99 for a queen mattress. Hes the softy. His sleep number setting is 35. Youre the rock, at 60. And snoring . Sleep numbers even got an adjustment for that. Find your sleep number setting only at a sleep number store. Know better sleep with sleep number. Youd do that for me . Really . Yeah, id like that. Who are you talking to . Uh, its jake from state farm. Sounds like a really good deal. Jake from state farm at three in the morning. Who is this . Its jake from state farm. What are you wearing, jake from state farm . [ jake ] uh. Khakis. She sounds hideous. Well shes a guy, so. [ male announcer ] another reason more people stay with state farm. Get to a better state. Anything. Hing. All right. A little clash. You and i are not going to clash. No. We never do. We dont clash. Listen to me do a mad dash. Heres the deal. Yesterday there was riveting selling in the high these high flyers, but this was a shocker. This is incredible. Mallinckrodt bids for questcor. People talking two plus two equals five. I had mr. Trudeau on, the ceo, david, people hate this deal. Permission to touch telestrator. Permission granted. What the heck is this . Thats what, four hours . This was a recognition maybe they made a dumb acquisition. A lot of people get rid of it. A lot of people who went from to because they felt that what happened is that questcor is under investigation by the department of justice. Questcor has historically been a one product company. Mallinckrodt has the irish domi sill soil, add in one company doing well for the gel. I asked him twice, youre a pristine company, mallinckrodt, i know the tradition before it was spun off by ka individual yon how could you affiliate with a company under investigation by the Southern District of new