Freeze. Our road map begins with global volatility continuing. Jim mcgoggin. And apollo and adt are in a deal. And the death of Supreme Court justice ascalia has creatd a firestorm. First up, stock futures jumping sharply. Saudi arabia, russia, qatar and venezuela agreeing to freeze output at january levels provide that other major exporters follow suit. Crude prices rose off their highs of the morning. Some analysts expected an agreement to cut production. Thats not exactly what were talking about now iran on the tape is saying, maybe, we still want our piece. Thats going to be the question, iran and iraq as well who is also ramping up production to get money, its an expensive fight it has on its hands with isis. Thats the big caveat that Oil Producers will agree. Before this announcement, brent crude was up as much as 5 . Its still higher. The bulls would say, at least were getting diplomacy. This is the first coordinated move that the major producers are doing since the pain began, since the 70 slide. On the face of it, its meaningless. Its no move at all it says we will stay where we are at these record levels if you can get iran and iraq to agree tomorrow. You look at the Saudi Oil Minister, hes saying this is a framework potentially to move forward in the future. Saudi and iran, geo politically are at loggerheads with each other. The idea they wont allow iran to come back in and supply what they want to supply, they cant to keep everybody at the levels theyre at now. Saudi and russia have been at odds over issues like syria. But theres no cut on this announcement. Freezing production at record levels. Russia, in fact, sold more Oil Last Year than it ever has. Its at a record now. They need to because of their budget. As do so many of these countries. Including saudi arabia. Oil is priced in dollars, their costs is in the ruble. The ruble has plunged. Its tight, but not as tight as it might be. More broadly as we said, busy week. Today quite a bit of fed speak. The Philadelphia Fed president and the new minneapolis fed president will speak at 10 30. Ros rosengrin later on tonight. Well get Housing Starts, cpi, ppi this week and the fed minutes, which may be the highlight of the week coming tomorrow. Fed minutes combined with the inflation data on friday, certainly the fed will take center stage. Six fed speakers on the docket for this week. For more on the markets and how you should set up for a week like this, the principal of Global Investors joins us, jim mcgoggin. Clearly friday was a bounce. Today it looks like that positive followthrough is continuing. Do you see this as sort of a bounce from a bear market or actually a turnaround in the direction of stocks . I think that clearly things have gotten a lot worse in the last two months with the indebtedness level in emerging markets, the plentiful commodities and the slowdown tensions in europe. I think those problems, however, are overreflectreflected in th market. The market probably overdid the negativity. This is a fairly natural bounce back. Im skeptical of the oil story. I agree this deal wont hold, and that there really isnt a cartel in oil anymore. I think the oil trade is dangerous. But i would buy u. S. Equities on setbacks and focus on domestic earnings. Its the World Outlook that got worse. Yeah. We just got the release from bank of america of a fund manager survey that they did. The big headline is highest cash levels since 2001. 5. 6 in cash, investors going for capital preservation into cash utilities, bonds and telecom. Does that make you nervous or a sign that the sentiment is getting way too negative and its been overdone . In the u. S. The sentiment is way too negotiate sieve. Internationally theres more reason to be negative. I think there is clearly a risk of contagion from the weakness in oil, the weakness in metals. Commodity lending. Banks have been foolish enough to lend to commodity producers, they may have welcoml compromis. I think u. S. Banks are highly capitalized that should leave the u. S. Market in less trouble. Its a troubled global background. One has to be quite concerned. If i look at many equity markets, such as the european and japanese markets, theyre a buy on strength, the u. S. Is sorry, theyre a sell on strength, the u. S. Is a buy on setbacks. Remind us what the levels of assets under management you have there, jim. I remember two things of you always. The huge aum that you have, and the fact that you are usually positive on the equity market here. Yeah. 370 billion or so. Right. At last count, simon. Yeah. I think the fundamentals of u. S. Equities look really okay. 16 times earnings is not bad given rates lower for longer. Basically a lowyield environment. Thats why for u. S. Equities i have basically a positive tone. And, you know, stay up to weight with your longterm plan. There was an article in the journal over the weekend that spoke about how Fund Managers were guiding down expectations for their clients and saying, hey, its going to be pretty mediocre five years, all in. Then i look at on friday, the staff at cnbc called around and got the targets the major 21 houses have for the s p by year end. Theyre still talking around 2160 for the end of the year, which is a gain of 15 , 16 from here that would seem to be albeit after heavy losses for a month and a half, that would seem to be a decent return for 2016. Yes, simon, that would be better than decent. I think that may be a little high. You know, its even a bit less than that makes it worth buying on setbacks. I would focus on the u. S. Domestic economy. If i was to hold cash, it would be much more against the global background. Jim, we do have gold off of about 25, goldman this week is suggesting shorting the precious metal on the idea that this erosion in policy confidence has been overdone. Do you agree . I would be pretty cautious on gold. Yeah, i do think it has been a bit overdone by the market. You know, for all the natural reasons for nervousness, particularly around the Banking System. Last week early on was the weekend when contagion, when problems in the Banking System was in everyones mind. Thats what really drove the markets down globally. I do think thats been overdone. If you look at gold, gold really trades as the Interest Rates. When people thought rates were going up, gold was weak. When negative Interest Rates got ahold in the last two, three weeks, you have seen a tick upwards in gold. I think that was probably overdone. I think you are entering into a period where maybe theres no inflation but rates are low and positive. If thats the case, thats not a good background for gold. Jim, just quickly on this theme of policy, do you think the uncertainty over the election and the rise of antiestablishment candidates like donald trump and bermnie sanders are feeding into the markets, related to that barrons piece over the weekend . Yeah. I think that i think that the market has been kind of ignoring the election until very recently. And, you know, its still fairly early on. Theres been only two stages of the whole primary process. Its very uncertain what happens. If you look at the bookmakers, they think the winner will be mrs. Clinton, who the markets would view favorably, a sensible policymaker. But there is the potential of a sanders versus trump general election, the markets would find that very unsettling with some of the policy comments made by those avowed popu lilists so it depends on how the nominations fall out. No doubt the markets will pay more attention to the president ial election looking forward. Jim, thank you. Thank you, sara. Well a big deal to tell you about, leverage buyout in addition. Adt is soaring, thats the stock of the Electronics Security affirm after agreeing to be acquired by Apollo Global management. A little more than 7 billion, thats without adding in debt. Once the deal closes, apollo will merge adt with its own protection one Home Security company. Adt shares up 52 . Its a 56 premium. Interestingly, apollo contributing 4. 5 billion in equity to the deal. A very large equity check being written by apollo, and some of its investors as well who appear to be contributing directly into the deal itself. And, of course, apollo contributing from its large funds that it raises for these deals. Koch industries taking a roll here. Theyre helping to finance the deal, and there will be financing of different debt, and new debt. 1. 55 billion new first lien term loan and 3. 14 billion in new second lien financing. And some others that will remain outstanding. But we have not seen that much new entrants from private equity over the course of what was an extraordinary boom in 2015, led by Strategic Investors that being the companies themselves that were typically able to pay higher prices than private equity was willing do so, in part because there were synergies available to strategic buyers that are not typically available to private equity. Though in this case, they do already own Home Security business, far smaller than adt. Some people may remember adt itself was a part of tyco many years ago, having been broken apart when ed breen ran that company. Hes now running dupont, and breaking that one apart as it merges with dow. Not quite the same way. A 40day go shop which is typical in these deals now when they do a private equity deal that may include management being a part of the potential company as it is acquired. Well see if anybody shows up. Given that premium, doesnt seem particularly likely. They were a back up here in april of last year. Thats reversed the losses. When you go back, you can see theyre right near what is the 52week high. The alltime high was higher than that. There was always concern that the Cable Companies could do this same thing and take business from adt. The latest on the firestorm engulfing washington following the death of Justice Scalia. And lets look at where we are on futures. Coming back from a good day on friday. The biggest gain we had for the month of february. Looks like well be able to make headwind on that. They say that in life, we shouldnt sweat the small stuff. But when youre building a mercedesbenz, there really is no small stuff. Every decision. Every component. Is an integral part of what makes the 2016 cclass one of our most sophisticated cars ever. Because when youre setting a new benchmark for refinement, it is the small stuff. That makes the biggest impression. The 2016 cclass. Lease the c300 for 399 a month at your local mercedesbenz dealer. Ngo to ziprecruiter. Com and post your job to over one hundred of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. And now you can use zip recruiter for free. Go to ziprecruiter. Com. The death of Supreme CourtJustice Scalia adding a whole new dimension to the election in november. The Court Vacancy sparking a battle between the Obama Administration and republicans. John harwood joins us now. John, any indication on when the white house will nominate . Soon. The president said in due time but he will not rush it. An obama appointment to the court would tip the balance at 44. The first is constitutional. President obama says he will exercise his responsibility under the constitution to appoint a justice to replace scalia. Mitch mcconnell the Senate Republican leader says the senate will exercise its constitutional right to not move forward to consent by not affirming this justice. On the campaign trail, republicans appealing to their base in primaries are urging the Senate Republicans to hold fast, not confirm an obama appointee. Hillary clinton for her part sent out a series of tweets last night saying it was disgraceful that republicans would not affirm a justice. Shes appealing to her base. Finally, its going to take place on a human level once we get an actual nominee. You can expect the president to nominate somebody who will have the broadest possible appeal e forks sri srinivasan, or jane kelly, who is close to Chuck Grassley who supported her nomination. She was also approved on a unanimous vote. Those kinds of appointments would put pressure on the republicans by making them appear unreasonable if they would not approve them Going Forward having approved them in the past. Well have to see how this plays out over the course of the election year. John, if they do put somebody forward who is unanimously confirmed for a lower post within the judiciary, is it possible they could collect 14, 15 republican votes in the senate to get that through . Is that a possibility . Its possible. Its not guaranteed, however. Weve seen in the past people who have been confirmed unanimously in one set of circumstances, not move forward in others. Republicans are going to try to make that happen. This is something extremely important to their base of cultural conservatives who think theyve been losing at the court for some time. It will be hard for democrats to move republicans off their resistance but not impossible it will determine a lot how it plays out among swing voters. Okay. John harwood in washington, thank you very much. As we enter the second half of the trading month, art cashin will join us with his perspective as we count down to the opening bill. And Sports Illustrated unveiling its swimsuit issue. We will meet two of the cover models live. The market coming off the best day of february so far on friday. Hard. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. This just got interesting. Why pause to take a pill . Or stop to find a bathroom . 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Good to see you this morning. Good morning. We were talking about the action on friday. You said the bears got beaten badly. How bad . Well, pretty badly. The problem was, as good as the action looked on friday, the new highs were at multimonth lows. It may not have been as broad as some of us perceived originally. Now, we got this report of this agreement to freeze production to january levels. How important is that . Well, if it were effective it would be very important. I have my doubts about it. But well see. The market will benefit from oil being up. That correlation continues to work. I think half of the gains were seeing today are catch up from the holiday. The other half are about oil. So, keep your eye on crude if wti goes negative, i think youll see some of the bids disappear. What about the chinese currency, we saw a big turnaround in that currency. That was a major surprise to many people including some of us who thought that they might be looking to deval yue it down th line. Lets see how long it lasts. Do they allow it to maintain this reasonably high level for a week or two . The peoples bank of china governor gave an interview, i dont think he had spoken for many months. If hes going to come out and reassure in this way. Not necessarily on the dollar. Not saying theyll maintain the dollar to the value, but to the new basket of currencies, that could potentially stem the capital flight. I dont know if Chinese People believe him. Youre right. He had not spoken in a while. They wanted to get into the sdr basket for a long time. Now that theyre in there, im sure theyll target that. Thats a possibility that they will perhaps maintain the currency. But i think that would be a major negative remove from the market, wouldnt it . Thats one of the four things we stress about. Youd have to see how the sdr basket begins to relate. I think there are some assumptions there, its not frequently used quite yet. So, well have to wait and see. The note from jpmorgans trading desk is the vortex of gloom is showing signs of fraying. Where does that leave resistance . It leaves resistance higher up, obviously. I would say probably 15 points, 20 points above where we close. We should be reasonably good. Art, thank you very much. One last point, a shortened exploration week that a sense of hyper volatility. Stay keep your seat belt on. The opening bell five minutes away. Ive been called a control freak. I like to think of myself as more of a control. Enthusiast. Mmm, a perfect 177degrees. And thats why this road warrior rents from national. I can bypass the counter and go straight to my car. And i dont have to talk to any humans, unless i want to. And i dont. And national lets me choose any car in the aisle. Control. Its so, whats the word . Sexy. Go national. Go like a pro. Youre watching squawk on the street, live from the Financial Capital of the world. The opening bell in about 90 seconds on this tuesday as we all come back from a long weekend to a busy few days. Fed minutes tomorrow. Got inflation data this week. Housing starts, along with earnings from the like of it mobil tmobile. So far earnings season has been unable to stem the red. Many people thought