Cutting the number of rate hikes it expects this year in half. What that means for the markets. Shares of fedex are up on earnings and company taking a shot at amazon on its call yesterday. Plus jim cramer spoke to target ceo about competing with amazon. How hes positioning his company against jeff bezos. First up something that would have been nun thinkable. Dow and s p down 1 for the year after the fed reduced the number of rate hikes it expect this year from four to two. Futures moving lower. Caterpillar issues First Quarter estimates in the wake of lower Commodity Prices even though they stayed firm on their guidance for the year, jim. Yeah. I found that two surprising things was one how deep the cut was First Quarter. And two, how they believe that somehow things are going to get better quickly. I think that caterpillar is in a nutshell what fed did. Look these are Great American companies. Not doing well at all. That has to do a lot with oil and gas and mining. Not just all international. It kind of took my breath away. The data was looking good. I have my green tie on. Up morning. Luck of the irish day. And, no, because caterpillar chose once again listen we cutback and cutback but we dont have the sales. Its not a shaving, its a cutting. Looking for 65 to 70 cents streets at 95. Its a meat axe. You were looking for smothering subtle than that. One of the thing i do like about caterpillar is that they show you exactly where the weakness is. What i didnt like is every business. Hoping just one other business. Every business. Do people understand when you use shale, when you dig shale, when you go up to the canadian tar sands these are giants caterpillar earthmovers and you cant get the stuff out of the ground. This isnt like hey lets drill a hole. You dont drill a hole. You move a mountain. One of the monies why the environmentalists are so upset because when you do i mention that because thats where were going, 2 Million Barrels a day we added in north america that involves moving mountains and make being very pristine area look nonpristine. All that said the stock isnt selling off that dramatically. This is hard to tell. Less than 3 . People do believe when the company says well be okay for the full year. Yes, they do. By the way i go through the charts as meaningless as that can be. This was the best chart in the dow. Stock had been up 16 . Been roaring. Remember, we keep thinking china is going to do something great so we saw iron ore up. But copper which people relate very closely to caterpillar is on fire. Oil is up dramatically. People are saying hey wait a second this quarter was hurt at oil being at 25, this quarter was hurt by no Real Infrastructure build in china and wait until you see what will happen in the second half. Wait until you see. It will being a great. I think they keep saying it. Fedex was more solid rising. Wow. Better than expected quarterly results. Raising the full year end guidance. Talked about shipping competition from amazon saying i want would cost the internet giant tens of billions of dollars to effectively compete with fedex. Last night on the Conference Call fred smith concerns about industry disruption is fueled by fantastical and let me emphasize i chose this word carefully, articles and reports which are devoid of indepth knowledge of logistic systems and the markets which fedex serves. It was a beat down for people like me. Amazon are 3 . He did say that this was the year where its no longer just a peak day. People shop every day online. They talk about six days. What does he mention . I love. There was a moment in this call. When mike glen who is president and ceo of Fedex Services getting involved in the Conference Call. What are people shipping out . Mattresses. Canoes. Swing sets. Big screen tvs. But they figured out a pricing mechanism to make it so they make money on those canoes. Im glat you can okd you can. Ive never seen them deliver a canoe in manhattan. You dont need to shock me. You can go on whatever that river near you that toxic river. The one in brooklyn. The gowanus. Its going to be venice. As of now its still eat the bottom away. It has a different color of water. Looks more like what mr. White made in breaking bad. A product. I came in this morning, first thing i saw was you on the floor of the exchange interviewing head of target. Whats the Fastest Growing digital Shopping Company . Target. 30 some mid30s. I think Brian Cornell awfully low base. Hes killing walmart. This is a new store. New direction. You got to listen to him. The guy is monster good. Hes reinventing a company we like to shop at. Heres a taste of what brian told jim. Youll hear more on mad tonight. The Fastest Growing digital both online and offline including amazon how are you melding those two. Sometimes in our stores. Other times on their phone clicking, placing orders, come by at their convenience and pick it up and sometimes they just want it shipped right to their home. We got to make sure experience counts whether they are in store or shopping online. Heres a man who is really using all the stuff he laerchd at sams and pepsico. Hes talking with elm pathy, need for touch. People want to shop. 90 of people like to go bricks and mortar. Reinventing the front of the store. Now they have some great stuff. Billion dollar brands. They have a lot of categories. Growing 20 , 30 . Brian cornell has reinvented target in a way that says were opening in tribeca. In october you go to target. Target greatland where you need those giant land masses opening next to colleges. How many times when you take your kids to college im not going to walmart im not going walmart. Take that gun from my head im not going walmart. They will go target. We havent experienced that yet. How many apple crates do you need to put your clock radio on. We go target my eldest for throw pillows own clothes. My youngest for swim wear and furniture. What cornell is doing is saying were going intercept when you have a baby well intercept when you move your kid to college. When you move your kid to college you dont go amazon because you got to get towels. This guidance out of Williams Sonoma is soft. Lb downgraded credit suisse. Im tired of the excuses at Williams Sonoma. They are charging too much. Memo, youre charging too much. I was very disappointed. You loved these guys for a while. Die. They kept saying west coast was a problem. Now were seeing supply chain a problem. Were seeing this core store not doing that well. The branded stuff is not doing that well. Williams sonoma lost its edge like restoration hardware. Too expensive. You want to go to home goods and target for your stuff. People are staying away from this Williams Sonoma stuff. I put it back on the shelf im not waiting in line for these expensive candies. Why would you . Thank you. The downgrade of lb argues that some of these stores have an outsize footprint and others are going to be they are too reliant on companies that will go direct. I disagree with that call. I think he has developed a mosaic of businesses that are unassailable. Victoria secret undergarmentes in double digits. Thats a franchise i want to be more involved in. Dont forget bed, bath beyond forget them. Bath and body works. Have you seen the accessory numbers . You write off wexler you write off retail. He got out when the getting was good. Go ahead make my day. Good luck. When we come back this morning what Pershing Square bill ackman is selling after taking that beating from valeant shares. Nike taking its sneakers back to future. Well talk to the Ceo Mark Parker about what they are talking about the hyper adapt 1. 0. Take another look at the futures. Break even for the s p. A little farther off at 2043. Well see how the morning goes. Back in a minute. Is moldbreaking. Sleek desi. Its intelligent drive systems. Paradigmshifting. Its technologyfilled cabin. Jawdropping. Its performance. Breathtaking. Its selfparking. And selfbraking. Showstopping. The allnew glc. Mercedesbenz resets the bar for the luxury suv. Starting at 38,950. Man 1 he just got fired. Man 2 why . Man 1 network breach. Man 2 since when do they fire ceos for computer problems . Man 1 they got in through a vendor. Man 1 do you know how many vendors have access to our systems . Man 2 no. Man 1 hundreds, if you dont count the freelancers. Man 2 should i be worried . Man 1 you are the ceo. Its not just security. Its defense. Bae systems. During a week in which bill ackmans purchasing square lost a billion dollars in the drop of valeant he said they sold 20 million shares of mondelez. It originally had been about 7. 5 but they had trimmed it previously to get it down to about 6. 5 . It was at one point the mondelez position at 5. 5 billion the single largest acquisition weve seen. Mr. Ackman has not been active, if you will in mondelez in the sense of challenging the board of directors or anything along those ways but simple Portfolio Management jim says that when you suffer the losses that pershing has and he said this, mr. Ackman in a memo to his investors you have to take down the size of one position given its outsize role in your overall portfolio from a Risk Management perspective hence they sell the 20 million shares in mondelez but its all because of valeant. Thats what its about. If you have an outsize position that wasnt outsize because valeant was so big before. 4120. Yeah. Is that someone who went to college to get stupid. Who bought that at 41. 20. Why does somebody want that business so badly. Block trading can be a dangerous thing. Its one of the things where wall street firms step up and provide liquidity. Maybe they are finding what a cadbury bar. Mondelez is looking down a bit below where that trade taoo place. For mr. Ackman its been a difficult 18 year period. Herbalife going up. Platform specialty going down dramatically or whether its Canadian Pacific which i talked about which has been at highs but well off those highs or valeant. All of these significant positions in his portfolio, adding up to a 47 decline from the high that he saw in 2005. I had the privilege of interviewing for delivering alpha where we genuine alpha. His position was fannie mae. I didnt know the treasury could do a two for one split. Fannie mae down dramatically. No one had to attend. First amendment allows to you recommend fannie mae all you want. I checked into it. The Founding Fathers have been asked a lot. They say you can buy fannie mae. They do. Im not sure why youve been asked a lot about Founding Fathers. The other day apple booked Founding Fathers. Listening to the Hamilton Sound track in my house over and over. Founding fathers would love this election. Keep him on the 10 bill because of that show. Everybody would like a general growth. Street being too tough . Number one performer since the hanes that was a great position for him. Now we can also remember jc penney where the dollar losses were nowhere near where he suffered on valeant but where you could argue his decision to install ron johnson cost so many people their jobs. I rather be all in rather than all out. I got people who were in the target special Purpose Vehicle for many years ago. All that said mr. Ackman manages to hold on to his assets because hes got locked up money, permanent capital as well given he issued that abroad. Thats come down by half if you went into that vehicle. And then hes also got provisions that prevent anybody from taking their money out in a rapid way and so he still is down but got 12 million. As long as he doesnt start buying sears im all over him. Might be an interesting level to get involved with bill ackman. I dont think hell continue to do that poorly. Thats terrible performance. Come on you give the guy 100 bucks at the beginning of 2014 and where our im from philadelphia. We have many sports teams that are far worse. Phillies havent even started playing. Sixers, the sixers, he makes the sixers look fabulous. Other than nova we have nothing to touch that kind of performance. I think you have to think about it city by city not hedge fund by hedge fund. Valeant the incredible down draft it suffered. That went up a couple of pennies. 33. 61. We havent talked that often about sequoia. Remember the sum ear couple directors said they left and then valeant still in a significant way and paulson. This thing has taken a lot of people down. How can you not like it at 33 if you loved it at 260, 150, 80, 60. Remember only it came out at 86. A lot of people argue it was always a play on rising drug prices and no one is arguing that story is over. Now youre trying to figure out whats the breakout. They are ganging up. I dont know. Happens. Bausch and l omb was worth a lot of money before everybody shot against it. When you see a wounded animal like valeant believe me you go to the doctor. Hey listen that stuff youre using from valeant i dont know how valeant is doing. Maybe its time to switch to juvener or think about those accuview contact lenses. This is what happens. Its a wounded tiger. Is it still a tiger . Yeah. Wounded tigers eat people because they cant hunt. They may be eating each other on that board of directors the way they must be going at each other. Figure how they got themselves in this mess. Was there a particular drug he liked . Like the model. The whole model. That Hillary Clinton doesnt like. Roll them up, use the low tax rate, dont spend a lot on r and d. Keep rolling things up. Incredibly low Interest Rates to make acquisitions. Raise price of acquired drugs. Henry silverman. Again i did not say i said fhs. Come on facility some hairs with me. I dont have enough to go around. Im way over here. Luck of the irish. Well get cramers mad dash. From wounded tigers to orcas. Well talk about why seaworld is ending their killer whale breeding program. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive sometimes they just drop in. Always obvious. 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. They may want the latest products and services, but they demand the best shopping experiences. Theyre your customers, and as you strive to meet their digital expectations, theyre enjoying more choice and greater power than ever before. At cognizant, were helping the worlds top Global RetailCompanies Face the demands of todays Digital Economy by blending physical with digital to create more responsive, more rewarding retail models. Ones that transcend channels and locations, anticipate expectations, and create new ways to engage consumers at every imaginable touchpoint. Its a new day in retail, where a companys ability to influence a Purchase Decision is only as good as its digital model. Together, were reimagining the store of the future, and Building Customer loyalty. Digital works for retail. Lets talk about how digital works for your business. Im looking around. Lot of green ties today on the floor as you might expect given st. Patricks day. Absolutely. Why not. We have a mad dash here. Oh, my david. Before the opening bell. Oh, my. Here i am listening what i thought would be a placid circuit call. J. Bell does a lot of ble for apple iphones. Then said they mentioned apples name once. They said modest declines experienced in the Second Quarter have turned into an abrupt downturn significantly impacting our third fiscal quarter and its apple. And they are not losing share to someone else they are gaining share. This is extrapolated apple. We saw a note today yesterday morning citi said some positive things. Apple will grow units. They didnt lose the business but i think theres a pause between iterations, but this was devastating and apple was trading up a dollar when it was reported and then dropped. On the down day people will say what was that language again they used. This was a quote. They said let me read it because it was a little stark. They said that this is a quote. Modest declines experienced during the Second Quarter now turned no an abrupt downturn significantly impacting third circle quarter. It was apple. Basically saying apple stopped ordering. Thats the only way to look at it. That will hurt apple. People will freak out. They are switching iterations to the cell phone 7. Theres a big meeting next week with apple. People will say this must be demand bad even though citi said demand good. So, its a clash of the titans. When worlds collide the builders of the product versus what the analysts are saying. Okay. Were going to keep an eye on apple. Talk about it around the bell in terms of potentially moving its Cloud Services from amazon to google. Well have that and oh, so much more when we come back. Youre watching cnbc squawk on the street live from the Financial Capital of the world. The opening bell in just over a minute. A lot going on today. Were coming off the highest closings of the year. Within spitting distance of the close of the year. Philly fed all components up for the first time in seven years. Oil came within about 40 cents of 40 for the first time. A lot of Oil Companies are assessing right now the idea of doing a little bit, you know, frankly selling a little equity the ones that have it. Freeport which has gone from being the biggest dog to the most popular because its got oil, gold and copper thats the holy trinity about whats going higher and that tells you look were in a different kind of market and thats aided by the fed. Thats why i dont think caterpillar will be down that much. Freeport going up caterpillar gets orders. Thats why people wont gi