Line, General Mills exceeding expectations. Prime minister netanyahu declaring victory in israels election. Tim cook explains why its okay that you dont flowknow yet why you need his watch as apple gets set to join the dow after the bell today. Investors bracing for the fed statement. See theyll drop the word patient. Janet yellen will hold a News Conference. Well have complete coverage of the fed decision beginning at 2 00 p. M. Eastern here on cnbc. Its being called the end of an era, end of the zerp era and end of an era that promises low rates for a given period of time. The word patience. The reason its important, if she does remove it it gives her flexibility to lay the groundwork for Interest Rate increase as if it werent a high stakes fed meeting, how about the letter from ray dalio, major Macro Hedge Fund strategist, talking about risks here. To be clear, we dont know nor does the fed know how much tightening will knock over the apple cart. What we do hope the fed knows, which we dont know is how exactly it will fix things if it knocks it over. Sort of begging and warning the idea of the fed having a plan b, in case the tightening backfires, and thats a traders position. Thats a traders shortterm position. At the homemoment he doesnt want to be overexposed to the market. Its the rubber meets the road. Janet yellen recently when she came up before the senate and the banking committee, people were impressed, professional watchers, with how she handled the language and the questions. We can expect more of that at 2 00. Its the beginning of a long process. She was warning four months ago there would be consequences. Already, weve seen up and down moves. The dow posting its seventh triple digit move in eight sessions yesterday. Havent managed to have two straight days. Nasdaq did ittiest. S p and the dow. Its tough to put two together. People people are blaming the fed. Lets bring in annika kahn and Quincy CrosbyMarket Strategist. Is ray dalia and others worried about what tightening looks like on this economy and Financial Markets justified . You know the biggest question of the day is going to be whether the fed removes the patient language. I think it hopes the door to the possibility of a rate hike in june. The fed, of course looking at an expansionary period thats maturing and of course want to use all of their tools. Especially if some imbalances start to brew. But they wont follow a predetermined schedule. Quincy what does that mean for the markets . Does it mean 100day swings are here to stay . Does it mean that volatility is going to be the way of the markets Going Forward . Does it still pay to buy the dip, as it has in last six year of the bull market . I dont think youre going to see buying the dips the way you did before with the underpinning of low rates for a long time. It does increase volatility. It turns everyone into a datadependent economist because the fed is trying to be data dependent. Ray dalio mentioned 1937. The fed does not want a false dawn like 1937. It is considered by many many economists, including ben bernanke, to have been worst mistake the fed ever made. Janet yellen is not going to repeat that. She is going to continue to be patient, even if she doesnt say it. She wants to normalize rates, not begin tightening per se but get us off of the emergency level. And thats what i think shes going to try to attempt to discuss this afternoon at the press conference. Quincy lets be clear, i believe in 1937 the stock market actually fell by a third, as a result of the central bankers turning round. Presumably, this fomc if it saw the markets falling precipitously, would be back in with something else. The markets are not going to fall by 30 for as long as this fed is in charge surely. No. It was more than that. We started to see tax hikes to pay for some of the programs during the war, but it was the cumulative effect that knocked the economy down. Look she in 1994 janet yellen advised greenspan, according to the fed minutes, look, i know we made be behind the curve in terms of inflation, but lets not go out there raising rates quickly. Its going to have an effect on the economy. She is going to be very careful, watch to see how the market reacts, Mortgage Rates react, and the economy overall reacts. Shell take away the word patient but she is going to be patient nonetheless. That brings to mine the press conference today. I mean she does have some ability to clarify however the street reads the statement. Of course fisher set to speak on monday. If the next couple of days as r. J. Obrien points out, if theyre truly messy, he can help clean that up, right . Yeah absolutely. In general, we are in an economy where we are getting mixed messages from the Economic Data that is flowing in. Of course we have a labor market that continues to strengthen. We have recent Economic Data thats showing weakness. We have a disinflationary trend and the way the fed will look at it is what is the labor market doing . As long as we can continue to see some improvement there, theyll continue to move and make sure that the economys moving in the right direction. This is going to be a datadependent fomc. So they would have us believe. Quincy if its one purpose for the network, its people that have wealth to preserve. For those worried about whats been said this morning what would you advise as a strategist . How do you preserve your wealth. Theres nothing wrong with having cash, getting ready in case the market really does get terribly nervous. But one thing we know from history, because thats what we have to look at is that the tech sector does quite well after the fed begins to raise rates, six months out. Tech has been a favorite. We would be actually more quality oriented now and be careful and not get not be a hero in this kind of market until we get there. Thanks for the tips ladies. Good to see you this morning. Reminder cnbc will have complete coverage of the Federal Reserve decision and of course Janet YellensNews Conference 2 00 p. M. Eastern time on power lunch. Janet yellen speaking at 2 30. Mixed results for fedex, the Package Delivery company, beating the street with its Quarterly Earnings but missing for the full year. The stock started positive when we had figures this morning then have moved negative. Its a move of 5 overall. Keep in mind the stocks up almost 30 over the past year. A lot of it had to do with thefact that u. P. S. Stumbled over the holiday period with 200 million charge, loss of productivity when fedex did not come out with a warning. This was the read on the Holiday Quarter it and was pretty look the outlook was disappointing. Outlook was weak. Fiscal year which ens in may, 880, to 8. 95. Softer than expected. Fuel costs kicking in restructuring kicking in margins doubled on domestic packages volume was up four ground up seven. Weve seen they tend to be conservative in their guidance. They always throw a curveball the markets way. Its rarely a clean earnings release. My argument in the beginning was that it looked pretty good. But clearly it has had a nice run over the 12 months. With all of the trucking and package and shipments, you mentioned express margins, more than doubling, though the revenue was flat. I think a lot of people were looking for margins in light of the u. P. S. Stumble and impressed with what they saw. A structural growth area for the economy in that online is obviously accelerating higher. Its a growth stock. 60 airplane 600 airplanes and 90,000 vehicles. Biggest fleet in the world . I dont know one of no doubt. Thats why everyones waiting for the fuel to help them. They downplayed that in the last quarter but it did help on those margins. Oracle Quarterly Earnings of 68 cents a snare line with estimates, revenued missed. Also boosting Quarterly Dividend by 25 . Oracle executive chairman Larry Ellison taking aim at cloud competition during last nights Conference Call. We also think is not you will be specific as what the advantages what advantages Small Companies think they have over us and the cloud when we have, i think, clearly the strongest platform based on industry standards and years and years of experience. Weve adapted that for the cloud. Obviously, ellison founder of the company, recuses himself from the dividend hike vote. But now with this dividend hike the journal points out, hell make 700 million a year. How about the talk of the competition, mentioning sales force by name saying its a close race to who sells more in the cloud this year us or them quote, stay tuned. But it is that conviction the conviction he has theyll make it in the cloud. A note out suggesting of the Big Tech Companies, it is them reinventing themselves perhaps the greatest ability, the most likely to succeed and throwing a huge amount of resources. A lot of Big Tech Companies talk about the cloud. The argument is that Larry Ellison will deliver on the cloud like none other. Reports saying good step in the right direction, better than feared but currency well talk about this later on without i mean on as it was, but without currency revenue would have been up 6 . 6 . Preview the other Big Tech Companies, like microsoft and ibm that have National Exposure that are going to get hit on currencies. Currencies an issue for General Mills, reporting 70 cents per share. That exceeded wall street estimates. The stock got a lift here in premarket. The Company Expects to continue quote, strong growth during the current quarter. The cereal volumes are which everybody looks at because of the declines, they were flat. Some growth when it came to pricing and oneoff charges. But going through the notes on General Mills, no sign ive real turnaround in the core business. And that is these struggles for the packaged goods companiesing like General Mills, kraft, god with that recall out overnight on the macaroni and cheese struggling to keep up with the changing consumer. Jurys still out. Analysts pretty neutral. You buy General Mills for the dividend, not the growth. Closed to major factories. Restructuring. 800 jobs on the line. Almost 3. 5 dividend theyre paying. Thats obviously, for most people, they the be all or end all at the moment. Look at the attention the cereal decline is getting, cheerio cheerios, wheaties. And also baking a problem this quarter. Betty crocker, declining category. I think hamburger helper as well. Annies helping. But on Currency International was down almost 7. 13 points currency knocks off 13 Points International sales. I told you its a big deal. Crazy. A big deal for these companies. You hear tim cook say the best companies will manage. Im not sure how you manage 13 points forex. Wouldnt bright spot for General Mills in convenience stores. This speaks to lower fuel price, lower prices at the pump helping consumer spending. They got a nice boost, 6. 6 better sales at convenience sales. U. S. Retail up one. Overall. Helps if you dont pay much taxes on foreign earnings. Prime minister netanyahu declaring victory in the israeli elections overnight. So nettena hue came through in the end, hadley . Reporter he did, it was a dramatic lastminute win for the Prime Minister, just a few days ago it was look willing unlikely hell be able to pull out this kind of victory. There he was, last night, snatching that from the jaw of defeat. Quite interesting, actually this morning. Many reports in the press wondering how the Prime Minister did it. He did it by appealing to his rightwing base. He pulled out all of the stops in the last 48 hours of the campaign. He basically said no to his twostate solution, encouraged more settlement building. Thats not setting well with the palestinian leadership. Its not setting well with many in israel. Look at eu relationship thats somewhere where they get their biggest export imports from. The eu leaders over the last couple of years putting Major Pressure on the israelis because of Prime Minister netanyahus Foreign Policy and he has the contentious relationship with the white house. We have heard from leaders in washington throughout the morning, saying the longstanding relationship between the u. S. And israelis will continue to be a strong one. But at the same point, remember the Prime Ministers Foreign Policy has put him at odds with the white house on several occasions, not least of which a few weeks ago when he made that controversial speech to the u. S. Congress. Going forward, of course, keen to say, as always that relationship remains a strong one. Of course the Business Community here privately speaking to me saying they are worried about increasing isolation and thats a direct result of the Prime Ministers Foreign Policy. Well have to wait and see what happens next guys. Tel aviv thank you. Tim cook has a message for those who dont think the apple watch will be useful. His case for the wearable device is coming up. Another look at premarket here as we as sara pointed out, tripledigit gains on the down for seven of the past eight sessions. We will talk to art cashin. Protests policies and a new headquarter for the ecb. More squawk on the street from post 9 in a minute. 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Yes, but people didnt realize they had to have an ipod and really didnt realize they had to have the iphone. The ipad was totally panned. Critics ask, why do you need this . I dont think anything revolutionary we done was predicted to be a hit when released. It was only in retrospect people could see its value, maybe this will be received the same way. If they launch the pay tv app, youre able to change the television with your watch, see whether the ovens finished doing what its doing, whether the dishes have been you know its the connectivity. This is what we talk about. Yeah, clearly, sort of you can imagine what people will need it for. I thought it was interesting he hasnt set a number on the watch. The fact that you need the iphone 5, 6, 6 plus to use it actually creates a ceiling. And he acknowledged the fact that people dont know the usefulness of the watch but he himself, said was wearing it and he cant imagine not wearing it. The point about inhome cog test provided youve got your iphone in the apartment youre able to Wander Around and use this as a Remote Control on all of these things. Thats the immediate vision surely. Yeah. Cramer would argue, as you put it yesterday, on this program, its a Health Device that also tells timing. Thats sort of one of the bullish cases, the idea it could monitor blood levels, gluke close, alcohol levels. Dont look at me when you say that. Coming up, art cashin here at post 9 with his market words of wisdom as we count you down to the opening bell on this fed day. Look at futures here. Dow looks set to open less than 60 points. S p also set to open negative along with nasdaq. We saw declines across the board yesterday. Well be back on squawk on the street when we come back. Being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. 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. About seven minutes until the bell. Lets bring in art cashin director of floor operations at ubs who joins us at post 9 and survived st. Paddys day. Yes. Cars on fire in frankfurt, weve got german tenyear selling at 25 basis points. But the real news is going to happen at 2 00. Absolutely. Trades traders are going to watch what happens when 2 00 and 2 30. Assume, exfrom they take the word patient out, does that traumat