tv Squawk on the Street CNBC February 16, 2018 9:00am-11:00am EST
worried. >> upholding onto the gains. >> courtney ragan, market timer. we'll have her on as a guest. >> wait until the 1:00 p.m. buying surge >> that happens on fridays. >> that's true we'll see. as for now, you're santoli santelli is the other guy. mike santoli, thank you. >> kelly, you have a long day. good luck. >> we both do. >> god speed. >> andrew made it. make sure you join us on tuesday. i forgot "squawk on the street" is next ♪ ♪ good morning on a friday good morning and welcome to "squawk on the street. i'm david faber with jim cramer. carl quinn la is in the wtanill winter -- he's at the winter olympics in pyeongchang, south korea. been be doing an amazing job covering so many aspects of that let's take a look at futures as we wrap up this week
been a good week for the markets. if you're long, the markets are rebounding dramatically from the lows that we saw made up almost 60, 70% of the losses that we saw in the s&p. european markets have also had what you might expect, a good week also. this morning no exception. green across the board ten-year yield note has been a focus. today didn't care down 2.86. there's a look at wti back above -- back above 60 solidly this morning >> yeah. >> all right let's get to our roadmap this morning. it does start with the market comeback two weeks since the selling began, and as we just said, stocks have been seeing what was one of the best weeks in years plus, well, the negotiation kind of continues broadcom's response to the meeting with qualcomm or qualcomm's response to its meeting with broadcom signaling a deal well, is there one to be done?
we're going to give you all the analysis on why that's probably not the case and a busy morning for consumer earnings. numbers from newell, coke, kraft, campbell's soup jim and i want to talk about kraft. he has a lot on coke as well. the markets looking to extend what has been a winning streak to would be six days with the s&p on track with what would be its best week since 2013. it has been two weeks since the release of the jobs report that showed wage inflation that sparked that major selloff on wall street. here's how much stocks have recovered from the peak losses as i said, there we are, 68% of the s&p. the dow and the nasdaq almost all the way back really since the -- that's measured from february 1st of the close to the february 9th interday low. you can see all the numbers there for those respective averages, jim. are we kind of back to normal? what am i supposed to make of it
all at this point as we edgnd a very strong week >> i think it's okay to say a lot of people are very confused. the market didn't sell off at the hedge fund level, what i mean is the level the hedge funds say they punctured 2.9 now we see the interest rates coming back down it looks like that we finally blew out a lot of the people who are doing that short volatility. it's up a little bit today long s&p where there was a big margin call. so here's what i say the margin calls are over. doesn't necessarily mean the volatilities are, but the margin calls. the market is incredibly thin. looks like more people have left the building i think it doesn't take much to move the stocks. you'll see stocks move on 300,000, 400,000 i think that makes things volatile none of the brokerages want be to position or get a position where they short stock you or buy stock from you but it's
probably run almost in its course still over sold. been a magnificent rally back, and i think there are a lot of people who missed it. >> right that, of course, looking at yesterday's performance, i believe, as you see we're set up for sort of a mixed open >> apple was the key to this market because you had warren buffet buying more. >> yeah. >> and you had katie ubertidy saying, don't worry, china is okay you had the analysts on the run. all the analysts who came out in the 170s, 160s saying the best time is over david, i couldn't find them. maybe they're at the olympics under the luge. >> how about that skeleton still quite amazing. that korean guy. wow! >> did you see the dmz stuff that carl did? >> i didn't see it i'd like to. >> jesus, it's like the war ended about three minutes ago. it's a little scary. >> i know. you know, there is a proliferation of wild animals in the dmz that you don't see
anywhere else because nobody's been there for 60 years. >> have you seen the video of the wild boar in hong kong >> no. >> it's incredible they're unchecked. >> speaking of wild boar in hon kong, we'll get to kraft later, speaking of pigs. >> geez. >> velveeta, david, i think the north koreans are stocking velveeta for whatever happens. >> we're talking coke and kraft. >> hot on monday wednesday was themeeting between qualcomm and broadcom. i talked about the two-hour meeting. this morning we got a response from qualcomm in terms of what they heard at that meeting and what they think and 82, which is best and final for broadcom
continues to be too low for qualcomm to really want to consider, but much of the meeting was spent, at least according to qualcomm, dealing with or trying to get some answers on the anti-trust front. a lot of this comes back to what seemed to be somewhat unclear plans for the licensing business at qualcomm. remember, it's a key part of their business, a key part of their profitability but not as much of their revenues they asked apparently a number of times, well, what would you do with the licensing business didn't get sufficient answers to understand what the antitrust implications would be because, of course, the remedies that regulators would take depend on what broadcom is planning to do with that business take a look at what they had to do with the release out this morning. they did say we have constructive talks but they went on to say broad com continued to exist. required by the ftc, moff com. other government regulatory
bodies broad com declined to respond to any questions about the future of that business finally they went on to say, which could make remedies more difficult, that they also -- broad com they say insisted on controlling all material decisions regarding valuable licensing business during the extended period between signing and potential closing, which would be problematic one could imagine that would be the case, for example, if broadcom were not to allow them to continue to resolve the litigation that they're involved in right now to get their licensees to pay them again ala apple's providers. >> right. >> apple's manufacturers or sign up new licensees you could argue that during that period, jim, the licensing business would be put in a difficult position if the deal were not to get to the finish line an $8 billion reverse fee would not be enough to the cash flowsa business i would point out one thing here a lot of this seems to be this e theater for i.s.s., for iss. iss likes to tell you we like to
see that you engage. you can make the argument now that qualcomm did try, we did enga engage > >> the last line, we would sell the company at the righ right -- that's kabuki, too, right? >> it could be kabuki. at the same time qualcomm at 88 bucks a share, close to hell or high water they're unwilling to do either one of those things and they made it really clear if they were, qualcomm would be in a difficult position to say no qualcomm believes is not enoughed henough has offered. qualcomm will tell you, we asked them -- on the broadcom side was as waste of time >> wow >> so this is really important >> we have not gotten a statement from broadcom as yet
i will tell you different opinions on both sides of in terms of what happened in that meeting. >> if you are broadcom, does it make you likely to get you people on the board? >> i think you are going on the votes. we kind of knew that going into the meeting. it seems that likely coming out of it goes to the vote the only question is getting delays and getting the chinese approval for nxp does qualcomm choose to delay their votes so they can have an nxp resolved some way. i don't know the answer. >> i need your history when darden got rid of the board. do they not have some sway over these large institutions hey, you got to give us a chance or is it just the institutions that are renters like everybody
else they're not going to take the co palo alto call >> tom darden, he's been around. by going the full board to six, broadcom, if they were to get six. all it takes is one director saying wait a minute, i don't think the 82 works >> we are talking about this so much because it is the largest take over in the history >> it is so front and center everyone has to know this thing is going on right now. this is monumental >> a final point for broadcom, if we are going to pad on $50 billion, we are not going to destroy value. >> it is amazing >> i didn't get any of it. lets get to carl now at the winter olympics in south korea,
pyeongchang. >> what a day, a bit of a rough day of the u.s. as two of our hopefu hopefuls missed the solum. lindsey jacobelis. she was asked earlier today about making it to four olympics but being forwarded each time by some tough brakes. >> i consider myself having a strong day making it to finals and olympics is nothing to look down upon. i was pretty happy that i have done that since i have not done that since 2006. it is little strives and i am in the mix with these girls and these girls are looking up to me and now i am still apart of this and growing with the sport is
really cool. >> david and jim, lets wave the flag a little bit for our colleague at nbc wednesday's night broadcast topped other broadcast by 70%. that's the most dominate night, that's the night when harding and kerrigan competed against each other digital streaming is huge. nbc sports streamed 822 minutes live that's already doubled the content that we saw at sochi later we'll take you to the sea, the strip of land that separated the peninsula. stepping briefly into north korea. there is some north korean troops right there a fascinating look of the political tension even despite kim's charm offenses and some of
the tones that comes as a result of these games a big morning. >> carl, lets go back to to that i saw your tweet of the ratings. why do you think it is is it just because i know a lot of millennials because of my kids they stopped and watched, they're not tv watchers, what's happening here, is it the sports or the millennials i never heard millennials tell me, hey, did you watch that? there is something happening here >> part of it is sort of the migration of technology, viewing habits of younger people jim, i am reminded of what pepsi told us the day we are in minneapolis the weekend of the super bowl where they were describing the marketing strategy going into that game. and the words of their cmos, we
think america just want to smile right now. the winter games are allowing for ra bit of an escape for all kinds of larger questions that's been sort of troubling and tire some to deal with overtime >> that's interesting again because there is no controversy and not that i -- you are right, carl, even football with concussions, it became divisive. there is nothing divisive about this >> that's true, it is hard to find for anyone who's not rooting for team usa >> you continue to do great stuff. >> those norwegians are unbeliev unbelievable they keep on winning >> they're making like mmga? ma
shares of coca-cola are up the ceo says he's encouraged of coke going into 2018 are you encouraged >> yes, i am i spoke to james today, i felt that they have a lot of things going for them smaller packaging is working and not pure diet coke but a derivative coke zero is working. a big turn in brazil helped a great deal
the nimble nature, if you have a distributor, they normally use that eight different approvals to be able to make different changes. they're using a lot of digitalizations. my hat is off to them. they're also doing tea they have a drinked call called topochico. it is a mexican drink. you pair that with pepsico that's going red hot the analysts are going to like this because they're going to like the organic number because of the 6% is hard to come by >> is it more like air bust and boeing, both doing well. >> yeah, well, in diet they are doing poorly both of them are down. i would say the war ended so
everyone is making money so we have organic growth. how are we doing in organic growth in nobody got hurt buying the stock of coca-cola a warren buffett's stock that overtime had a high pressure with a good dividend, i still preferpepsico because they hav better growth. some people are going to say coca-cola is better than it used to be. >> sometimes it is okay. >> yeah. >> all right, can we say craft for the "mad dash. >> can you do kraft as a "mad dash." >> up next, we'll have jim's "mad dash. we'll talk about kraft we got earnings from cbs and take a look at the futures here. nus t at an awful lows here ten
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david. they do not have the so-called outside ring where a lot of the millennials buy. they don't have frozen food that millennials buy. they have what's regarded not organic, product line. i don't think they know what to do even at the beginning of their release, they basically are throwing their hands up. >> well, there is no question that their financial performance of '17 did not reflect thei their -- they tried to get people focused on their strategies and image >> q-4 is impacted by the below items. when they go on talking about an
expected first quarter decline followed by better growth the year by folds. >> i don't think they can streamline whatever they want. in the end, the dogs won't eat it you can say new and improved, they don't have the product line they put together two companies that do not have the product lines that young people want >> they have zero base budgeting. now the question is okay, what do you got >> when you go down this i like to go to the super market when you go down the isles, the are in the deadly isles. they are not where you need to be the oscar meyers which represents the good value with the lunchables the kids won't eat it. anyone below 30 says that is
pantry company and no one wants pantry food anymore. >> we got a lot of other things to keep an eye here on "squawk on the street" and the opening bell is just a few minutes ay. a bk tethis at the marine mammal center, the environment is everything. we want to do our very best for each and every animal, and we want to operate a sustainable facility. and pg&e has been a partner helping us to achieve that. we've helped the marine mammal center go solar, install electric vehicle charging stations, and become more energy efficient. pg&e has allowed us to be the most sustainable organization we can be. any time you help a customer, it's a really good feeling.
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you are watching cnbc, "squawk on the street. the opening bell is only a minute from now. >> jim, do you want the market to be up or down >> i wanted to be down because we went straight down and if we go straight backup, that seems to be a lot of people as phony as it is strateight down. the quarter was difficult to understand because they saw nautica and campbell soup, they had this big dispute with walmart. people are reassessing that. there are companies that's
setting the tone for the decline, i think it is okay to have a pull back it is gotten too hot again >> here we are with the opening bell of this friday. -- you can see it is the winner of the dog show, flynn he's son way to go. he gets a high-five and over the nasdaq, celebrating the lunar new year >> qualcomm would hope they would get the approval to that transacti transaction. it is not a one-day affair it is very important that qualcomm get it. i see reymond james issued a
hole on apple today talking about no super cycle that's negative at 155 and they're reiterating that negative you cannot just be cell phone anymore because it is not enough the growth is just peaky for now. you got to have more than that david, you got to be in the multi tr multi trillion dollar market nxp eye hhas it >> we have just begun to discuss what it is going to mean when we have automated cars. >> a couple of quarters about how truckers cause the problem well, you know what, there will not be shortage of truckers when we have autonomous truckers. >> and we won't. >> it impacts so many different
industries and different things and will people move out of the urban center because it would be easier to get back and forth and parking will disappear for real estate, people think a lot about this there won't be any need for parking potentially. we are talking years out >> i don't know if we are talking years out. >> right >> until we have fleets of vehicles on the streets of new york or major urban centers. >> i have to tell you, david, the unforseen handicap is baby boomers. it is an empowerment story >> you have people now who are focused on the impact because it is not many years away there are so many industries or other things whether it is housing or real estate or shopping mall.
>> insurance rates and lawyers and hospitals because your accident rates go down >> we saw some numbers that's disturbing in terms of fatalities and that's texting. jensen wong in his conference call talked directly about how many semiconductors you need to have a car figure out whether someone is going to run the red light against you which is the primary thing that the autonomous cars have been if we cannot is that car is going to run the red light against me >> you make the ultimate decision of -- >> pedestrians verses you. do you hit the pedestrians or not. that causes -- that's a
tremendous thing for computers to understand. >> thank you for that one. >> remember computers, it is not sky net but it happens to be a great thing. the number of people would be having a 747 drop in the sky everyday when you think about the number of people getting hurt by current drivers, drunk driving and tired driving. it would never allow humans to drive car if we knew about autonomous driving >> great story >> without a doubt in the investment business are talking about it and thinking of the implications >> what do they say? the a lot of t a lot of the things we are talking about. >> lets get back to the market itself we are down.
not much in the s&p 500. >> we need that. >> the financials they have been on fire and they keep creeping up and creeping up, they're taking a little bit of a vacation today and, i think that's important. david, oils are all over the map. the oils have been an anchor forward. short squeeze of sales force in workday, these are companies that help you on board to the data center. nvidia, right here and right now at this moment, nvidia is only a dollar from its all time high. >> no kidding. >> you take out that is the one to watch
i got some pictures. arista, is one of my ultimate favorite people are looking for a 35% guide from her she gave you high 20s. she gave you rational expectations she used to be in cisco back and forth and chuck robins ongoing, chuck is a guy who is loved in silicon valley he never disses anybody. this was a recess by a risk itself >> cbs, i follow quite closely, the numbers were good. >> yes, i like them. >> generally positive and guidance of high cbs growth well above a lot of their peer groups at this point. >> let me ask you, david, why are they not -- is it good of 5
million substance on cbs >> that's a good number >> again, you split between access and show time that's a big number. >> it is one of the premium networks that i like >> maybe a higher number that people anticipated >> okay, you got that. >> of course, it continues to be what about the viacom deal, as i reported a couple of days ago, they have met and they discussed things and there is due diligence going on right now and exchanging various financials. i would argue of the cbs side of the math itself. >> i think that could be 60th if they were not fulling around with viacom stuff. >> i really want to encourage this i think the ceo is less willing to put up a fight than the last time through when they did not
get to an actual offer and there was a lot of back and forth about shareholders' rights or his voting rights or things of that nature. i don't want to prejudge we'll see. help me on something the retransmission numbers were plus 31% which is rather remarkable what's the read through for disney if those numbers were so high, right? >> not bad, right? >> not bad the new blaplatforms that we mentioned, over the top platforms that are apart of all. those numbers are fairly large, in fact, sometimes you will hear from the content providers they're getting bigger numbers >> netflix international, is it buzzed >> come on, it is amnex's
growth >> we don't want tuna with good taste -- we want good tasting tuna >> that's a $100 billion market value. >> is that incredible? >> i remember when netflix was 25 and cbs is 50 >> it is incredible. i know that jeff fugas great america. he was always saying hbo should be worth more.n netflix's programming is amazing. >> we had hock tan and martin franklin >> that was this week? >> yes >> as cost synergy and lower tax
rates and offsets. negative pricing, commodity cost inflation and they have more shares outstanding >> david, when i went over the different divisions under performing writing home fragrance, food storage, what is writing related of retail inventory restocking? you know what it says to me? >> no, what? >> those are prejargons. that's part of what i think the story that martin franklin is saying jarden is doing better than newall brands. a lot of factories were off flying because of the storms
david, transportations once again, trucks. >> so far not the best for star board. the activist investors that's in there aligned there with martin franklin >> it is not a great quarter now they're reaffirming which is different. >> my understanding is he may have been convincing the activists. >> it is going to get ugly especially when i saw who did well and bad >> it is going to be run through you. >> that just means it may get ugly >> i am going to tell you that you will have the insights on that >> right >> some of the things that i have been wanting to happen today for the bulls. the semis are leading and nvidia is taking its highs. i did not understand for a minute why any one did not like that because -- gary dickerson
with the first quarter and my kron micron is going up you got to stick with retailers at home. costco just straight up now since they reported a great monthly number we are getting some good and bad. i think that's good, that's what we want. we want the market not to trade in uni son that's just the vix stuff. i like what i see. that kind of sums up some down things >> we are up on the s&p 500. the nasdaq is up 5% for the year lets get to bertha the lunar new year is issuing a lot of those we see them come back. take a look at the 10-yr back
below 2.9% that's helping sectors and real estate. take a look, you start taking a look at nasdaq in particular made a really nice recovery and now less than 4% away from those all time highs housing stocks have been hit hard as interest rates have risen, down about 4.5% the last couple of weeks and have started to bounce back when january housing starts much stronger than expected. the third increase is new home constructions, we are seeing some of those stocks are real dogs d.r. horton of 8% and home depot, they may challenge homes. retail general out performed and
now we'll get a little bit of a tail window, those tax returns are starting to come in, people are getting rebate, in addition to that, tax cuts are starting to cut in now into people's paychecks this month it is a story of tech as jim is talking about, apple is up but it is positive for the month and the year again and amazon and netflix have really taken up about 10% here, month today. jim, i got to tell you, nvidia, if they are going to program those chips to really drive well, they got to take it to boston when they can figure out how to go and merge into a rotary of what people call traffic circles, that's when i know they have really done it. >> the year of the dog, how about the year of nvidia i just took out my all time high this dog is prolific >> that cramer dog is incredible >> is that dog-amazing
>> yes, adorable >> he's a rescue mutt. >> when i told jansen, he gets a little kick out of that. >> all right, lets head to the bonn report now with rick santelli >> good morning david, i always talk about the higher the time frame the more prioritize the close should be. we are going to take a weekly perspective being friday look at one week of two's, they're actually up. they're acting very much like bund that are not acting much like 10-yr lately. they're for sure most likely getting their lowest yields close of the week. we are well below the tight closing yields in the low to
mid-70s that we have had all week in the bunds. let's switch gear a little bit some huge move this week along with the big flattening move, we had the dollar gives a lot back against the variety of currencies remember when that's when stocks were going down. if you look at everything in unisom, the dollar loss is bid maybe you can make a case against 3% test any time soon, although certainly looking into the cards. you realize we closed around 90.5 last week and we are at 89 as we sit now. look at one week of the dollar yen and dollar is a big down and swits of the following two charts, the dollar is secondary. it is euro verses the dollar one currency we did better again is the currency we have not been
doing better is the chinese currency jim and david, back to you. >> bitcoin is rebounding it is up 20% we'll discuss that cryptocurrency and we'll talk to robert herjavec. more "squawk on the street" back in a menomt. hi, i'm mindy kearns. it's great to finally meet you. nice to meet you too. your parents have been talking about you for years. sorry about that. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. have a seat. yeah. knowing that the most important goals are yours. with 15,000 financial advisors, it's a big deal.
why. >> check cnbc where ever you go. >> the dow, s&p, and nasdaq hitting record highs -- shake shack out with results, investors not particularly digging it. earnings beat expectations, but a weaker result. it is down 8% for danny meyers >> my friend could tell me this could happen they were up and they're talking about flat same store sales which include a 1.5% to 2% menu
increase they are still valued way too high against others putting up fantastic numbers like wendys, burger king. they're not. i wonder if the price is too high i don't know but something is wrong and they're going to have to address it. you can't have at this stage o a growth story flat same store sales. you to reassess what exactly is going on and get it right. right now they're not getting it right. i happen to love to go there >> i do but not quite as much as i did initially. it doesn't quite do it for me the way it did -- >> there was a lot of excitement, and i now look at the calories and that's a real problem. the calories get posted for an egg mcmuffin it's 330 and for these the calories are high.
once you got them on the menu, you're like wow, i'm being one of these -- >> a wild boar they're frightening and they have no natural enemy. i want to introduce a stock to you. red hat reported a weaker quarter. people didn't like the quarter they didn't understand why they didn't like the quarter and now they're taking out their all-time high. they have a way to onboard, an inexpensive way to get onboard the cloud. including what jenson wong is doing by the way did you know -- here is a little
something they was kind of blown away by when i at crew point on? the new thing they do is they get in, hijack your pc and mine for cryptocurrency >> that is something else to watch. >> up next we got stock trading with jim as we wrap up the week here for ts hipart of "squawk on the street" but we have a lot more we're coming right back organic avocado on everything thing. doing it yourself or tagging a friend thing. more checking-in or checking out things. like faaaaaaaaaar out of this world things. far out. more revolutions in the making thing. that play like a girl thing. is it a '4 your eyez only,' thing. more of a 'no role modelz' thing. that triple-double thing.
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uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. all right, let's get to it we talked about it so many times. sometimes we say that is just disappointi disappointing. this morning campbell's soup said this is a disappointing quarter. they're having an altercation with walmart that is producing minus 7% and i love these fabulous great robust super premium juices and they're not doing well that was an accusation they
made they're doing a lance schneider deal, did they take on a lot of debt for that? >> they did. snacks did well, pepperidge farm, for them and i say got to because they spent a lot of money and their natural stuff is not working right now. they're behind the eight ball and they have to solve the problem with walmart coming up, a high flier why yp wldtoor the cnbc investigation and who is behind the company we're talking about. world turns to cm. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here.
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visit esd.ny.gov. welcome back to "squawk on the street." breaking news, survey for the month of february, and it says 99.9 a nice number. we were expecting a number between 95 and 96. and 99.9 is the best reading since october when it was 100.7. that was the best going back to january of 2004. you want to go through some
internals, the university of michigan has a one-year inflation gauge, and that is unchanged from the last look a five to ten year inflation gauge. we are down on the week, pretty substantially with regard to the long end the short end having a powerful week probably has march meeting implications, and the dollar index had a tough week >> good morning, mr. santelli. welcome back to "squawk on the street." we have jim cramer, mike santelli, we're all here, carl is at the winter olympics in pyeongcha pyeongchang. you can see we have dipped back into negative territory after a brief gain at the open our road map starts with the
markets. stocks going for six as gains did pick up a bit after the open, but you just saw the nasdaq downright now they have had quite a come back over the course of the week. >> from eight to 40 dollars in just two months, pulling back the curtain on riot, block chain, and camp bell and coke beating the street, a deep dive into those straight ahead. first as you just saw the s&p in the red, but we're trying to extend what would be a five-day winning streak already and on track for what would be the best weekly gain since 2013. you and i have had an hour to talk about these markets we would kind of like to see a pull back, but you're not excited about the straight down and straight up. >> i think you want to see a market that is taking it's breath and saying okay, let's reassess
i think the individuals at home, they don't like straight up any more than straight down. what are we doing? this is not an asset class is that what we're worried about? >> if it behaves the way we see it playout a logical place for the rally to settle out a little bit, right it's more selective on the way out. the breath you might be the equivalent of it i guess it is also telling you what was the exacerbating factors, maybe it was pushing this down, and we got deeper >> the average investor might say if it went straight down and straight up was it worth it at all? >> we have jim stewart here, james it is obvious to me, you tell me oregon these are those
kinds of things where the market is not able to function well what was that all about. the word then was oh, higher wage growth means higher inflation. but guess what this week we had higher inflation and we had higher interest rates and we're having a huge rally it suggests to anyway it was not about higher inflation it's exactly what you said, jim. it got too high, there was selling, the programs kicked in and overdid it it was like a mechanical reaction >> real wages were not that robust, and i think a lot of what passes as imflags could be more temporary than people realize. when you look at a way to handle your portfolio in this period,
peoplement to buy, hold, and forget >> if you slept through it, you're okay and you didn't get worked up about it on the other hand, volatility is an opportunity if all you do is what i do which is rebalance the portfolio you came out ahead with this by mid january it was out of line, overweight equities and then when it plunged, i looked and i rebalanced back. when i finish this show i'm going to go back and look today. with these kinds of gains i bet i balanced out again and could do some selling. people think you only have to rebalance once a year, but that is not rebalancing you can get way out of whack from your target allocation. sometimes you have to rebalance every week >> that keeps you busy >> okay, you don't have to rebalance every week, but look look at that little pie chart on
your computer for your account, and see is it close to your target range also you only rebalance when it is 5% or 10% out of whack. how about 3% in these markets now, this market is still expensive. it is historically at very high levels i don't want to get 5% out of line i want to stay right on my target >> there is a subplot, jim people that look at that portfolio that way, that is the first time where both legs are potentially going to move together, all right? bonds and stocks, that's what happened to the downside to some degree so i don't know if that plays into this at all i don't know if people are panicking in advance >> they move in tandem, but they don't move at the same rate. they don't go down 20%
they could but they're unlikely -- >> that would be a very bad week >> yes >> the taper tantrum thing you didn't see massive moves then historically you get a good counter balance with the bond portfolio. if you're putting it in a simple all bond thing you're getting a total mix of maturities. you're not in 30 year treasury that's are more volatile >> you're column this week asked a very core question can stocks go up when interest rates go up. they suggested at first that no, they could not they say in the early stages of tightening sequence, they go up you don't need to worry about it too soon but now we're two years into tightening, but they have gone up a lot in two years.
we're getting into the range where you have to be weary historically it took 5% to 6% in treasuries the fed is not very good at engineering a soft landing i had the data in my column. in the last seven tightening periods, five ended in recessions it is really hard to fine tune that at some point when exactly nobody knows, at some point rising interest rates are not going to hurt the market they hit a tipping point and then they really startto creat problems >> let me ask you, james, one of the things that was a second leg was warren buffet buying more apple and then apple traded like a small cap stock which worries me how did it happen that the stocks that came back the most are the stocks that typically --
facebook came back some, but sales forces came back they're not supposed to come back at a higher inflation, and how did he move apple? >> why are the tech stocks doing so well when they have the highest multiples out there. it's not loj kal, it makes me nervous. a lot of smart people are pairing back on that they want growth growth growth that's where you can find growth the question, i don't get the story myself, but buffet is very high in cash i think he is in maybe -- roughly 20% cash if is pretty high >> that's a lot of cash. >> he is in a veteran cautious mode
>> it's so big, how do you grow on that base, and what are their products it makes me a little nervous they have the phone and then what but i will look, it has done incredibly well. i don't want to bet against the thing. it is a great consumer product people have the money to spend on it. i'm not saying anything against it, but i don't see it as a big growth play. >> i guess has to be service revenue. otherwise what happens, that's a great revenue screen is it selling well that is not the way to get a premium multiple, trying to figure out how it sold yesterday. >>ly now get pelted with e-mails every day from apple lovers.
the last time i said something bad about apple someone in my elevator said how can you say that about apple i don't quite get that >> do you like alex isa? >> i don't use it, but everyone i talk to loves it >> talk about saying something bad about apple, alexa leaked it >> my message is rebalance often often. >> were message was you hate apple, isn't it? >> no, i'm sorry, that's a mixed message. >> let's bring in carl from the winter olympics in pyeongchang >> over here we're finally getting to some events that are really, really cool with great names. namely the skeleton only an olympic regular since 2002
you run 25 meters, on the turns you can pull four or five gs on the turns. only nine countries won a medal in skelton including the u.s., germany, canada, and australia for john daly, a heartbreaking finish, wound up in 16th place, an emotional interview he said it may be time to say goodbye to my career we asked him with all of the wins, and some losses, how he manages emotion and how he manages risk >> focusing on the process and not the end result one curve at a time. curve one, curve two, so on. if you think about curve nine and three you might crash in four
it's controlling everything you can to the best of your ability, and then take it one curve at a time and it will be the result you want >> one of the great things about this event, guys, are the helmets. i don't know if you have noticed them, but some contestants from canada have a polar bear ghana has a tiger. some of the u.s. team has a eagle. they are going down head first, at 80 miles per hour, and we get a really good view of some of those artistic helmets a lot more to come this morning as we will take a look not just at the olympics, but to the dmz later on today, the trip of land that divides the korean peninsula. that is the use of robots. roaming around olympic park. roaming around the athlete villages, not just kiosks at mcdonald's these are moving and talking robots it might be a sign of the future
that is coming up later. >> sounds cool, carl have you been able to go to any of the events, usually when you're covering an asian olympics you're forced to stay up all night because you to report dayside for the u.s., the l logistics get tough. >> yeah, time difference is a killer, we're 14 hours ahead is it midnight here? yeah, we'll be here until 2:00 or 3:00. the events have been minimal, but that's the number one question we get. what did you see and the answer is very, very little saturday is tomorrow, and monday a holiday, so we'll go to some events and maybe tape some stuff as well. >> thank you, carl, i like the advice from john daly, too when we come back, $8 to $40 in two months, riot blockchain.
a microcap company that soared on the idea it was getting into crypto but they are getting a mysterious start that stock is down as you see almost 18% this morning. plus the future of regulation, former scc regulation harvey pitt will join us. "squawk on the street" will continue after this. see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st.
welcome back, one of the highest fliers in the crypto world. the fcc raised concerns about companies that pivot to blockchain without a credible business plan. it turns out there is one investor in particular that got in and out at the right time >> we went looking for barry hoaning because he once evened half a million shares before it was riot after winning his fight to change the board of directors, he got 700,000 new warrants that he could convert to stock at $3.56 a share and promissory notes he could convert at $2.50
a share. after they changed their name, the stock soared to a high of $46.20 since he was not at his office, we went to his home. that's when he finally called us back and said he would think about talking to us, but only if we left. finally he agreed to go on camera the following week while he was in new york only to back out two hours later. but he did agree to talk us to by phone two days ago. >> i'm a successful investor i have a beautiful family, college educated i'm very comfortable that the truth will come out. >> he filed a new form with the fcc just this week showing he sold a massive amount of stock just before the end of november, which meant he was selling two months immediately after the company changed it's name to riot blockchain. this was after they released press release after press
release. he said he made 100% on his investment and he still has exposure in the stock. and just this hour, he said he would do a live interview on "power lunch" this afternoon but backed out ten minutes later when he found out they would be conducting the interview we will air it in it's entirety today on "power lunch. >> so what's the key allegation here in terms of mr. honig it has a pattern of things i would cover 15 or 20 years ago in terms of things that are not necessarily ethical. >> right, so pushing the stock higher, through acquisitions or press releases, and then selling
as the stock is moving higher, and then waiting perhaps a lengthy amount of time to let the investing public know that you, a major investor, left the stock. >> and would that be a violation? >> so, we have spoken with attorneys who tell us that when he waited two months before he told the fcc that he dramatically reduced his decision, they would say he had to have done it within 24 to 48 hours. i asked why he waited and why he didn't file a list of his sales for the last 60 days and he said you answered your own question to imply that he waited two months and therefore there would not b a list necessary >> do we know about his past at all? any sense in terms of his work
history and things of that nature >> he was fined for stock manipulation in 2000, and he has decided not to continue with his broker's license and you can see more about his history on the story on the web >> that's great reporting. that's the kind of reporting that no one is doing, really fabulous >> i remember us sitting here telling people steer clear >> when this sequence of events happens, people are pushing the stock perhaps and you said they changed a name right >> yeah, right at the citizenship toe -- cryptocurren cryptocurrency >> what's your advice for people
and companies interested in investing in companies like bitcoin. >> first, figure out what company does figure out why you want to make an investment. find out if the it is a real company or a name. if you satisfy yourself on those elements, then invest. the problem that we have is that most people investing in these companies are doing it because they want to partake in the crazy, and they don't know why they're making investments >> how long is someone supposed to wait to file a 13 d one of the forms that the s.e.c. requires when you get in or out. what is timely >> timely is particularly if you have a critical position with
the company, or you already been disclosed as an owner, you're supposed to file updates promptly and certainly not longer than ten days at the most so i think there is a serious problem with somebody who is already over the tlhreshold not keeping current on his stock position movements >> what about the market moves we have seen recently in terms of the extreme volatility and people talking about whether or not the mixed related products have been manipulated in some ways to destroy them or to bring on some of the craziness that we saw in the last couple weeks >> the problem we have is our markets have been extremely volatile, and as a generalization, we have become a
nation of day traders. people that no longer buy on the fundamentals of company, companies and holding for the long term. the volatility we have is troubling. and a product like vix could be valuable to institutional investors that want to hedge against the precipitous drop in the market but it is quite clear that these indexes options can be manipulated and when there were complaints about possible manipulation, the cboe as the marketplace should have sprung into action, i think the fact that finra is taking a close look is very important to determine if there has been any manipulation at all. >> harvey, jim cramer, always
great to see you, thank you for coming on. one of the things that i'm concerned about, is there a way to make it so institutions can trade maybe off board, some of the pruoducts, but the individuals don't get hurt, they feel like you can't lose money if you short calls on it these are products that should be for the most sophisticated investors. does the sec ever try to find a way to say wow, be careful here. these are not for just the retail investor? >> the s.e.c. has disclosure requirements that should provide investors and particularly individual investors with the kind of information that says you should stay away from this product unless you are very sophisticated. the problem you have is that disclosures are not always made appropriately, at least
targeting investors who perhaps should not be involved in the product, and the brokers who sell these things whether they are soliciting trades or approached by customers have an obligation to say don't do this unless -- and making sure they're highly credible. >> thank you so much, harvey pitt for more of our information, go to cnbc.com and tune into power lunch this afternoon >> i want to do that myself. see all about it up next, robots taking over at the olympics, we're going to take you back to pyeongchang and show you some of those robots. in fact, let's bring in carl who is at those winter olympics in pyeongchang. we'll go to break first and then bring him in hey, need fast heartburn relief?
hour a huge crowd gathering in florida for the victims of wednesday's high school shooting 14 others were injured at the gathering, mourners and officials asked for tougher gun laws mitt romney announcing an ad on twitter this morning announcing a run for the u.s. senate in utah if he wins, he would replace orin hatch who is retiring he attacks immigration hardliners in washington in that video ad >> and that is a sink hole swallowing several cars in rome luckily no reports of injuries and celebrations and parades under way, around the world to celebratele chinese lunar new year they're ringing in the year of
the dog. in honk congre in hong kong more than 30 floats greeted the revelers david, back downtown to you. >> thank you, sue. let's go now to carl who is at the winter olympics in pyeongchang south korea. we saw him hanging with some robots, carl in deed, south korea is pretty tech savvy. one thing they have been showing off here is their progress is robotics which means we had to go check it out. he is a media service robot, he will follow me around if i want. he will project on the floor things like schedules, videos,
and show me where to get to the cafeteria. >> where is the prince access leia projection? >> there are 11 types of robots roaming around the olympic park. you can check out the robot fish at the media center. >> who won women's u.s. -- are you listening? what did you make of core cbi. >> who won in women's hockey more inflation what's amazon's reasonable valuation? and not far away, you can find a ski robot slalom competition. after all of that, we were relieved to find at least one robot that barely does anything
at all >> guys, i think we're obviously just at the beginning stages of what they're going to be able to do, but one day, jim, i'm convinced they will be able to project you into a hologram. >> i don't know how that happened this stuff is amazing. show it able to do a hologram. i know that elon musk said i was a hologram, this is proof. >> i was overall impressed with the gradual but consistent improvement in maybe not so much the voice technology, but i don't know if you noticed on the screen it spelled your name correctly, it spelled my name correctly. the voice recognition part is getting somewhere. >> i have to go here on this alexa. my wife asked alexa who i am
last week, and she didn't know they know me in korea, but not here >> i don't blame them, alexa needs to be brought up to date immediately. >> i like those robotic fish, they were pretty cool. >> yeah, that was kind of weird. i know the skiers that needs work, the ones trying to go downhill skiing >> yes, i think they do. reminds me of my skiing form >> there must be five carls over there. >> great stuff, every day we get something new, you're doing great. jim thank you for sticking around >> i have to tell you in carl's coverage, did you see the north korean soldiers moving it is shocking to me, now we see what real issue is you can't wave at them because they may think you're making fun -- we're really in world
that's have nothing to do with their world, quite frightening quite frightening. >> geopolitical risks. thank you, guys, have a great weekend. thank you for the time >> coming up next, riding the volatility stocks coming back for the weekend. eaaqllw, s&p, and nasd a ahd. [fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name.
conditions or are we right back to them. >> to some degree we relieve the conditions because in the correction you have earnings expectations for 2018. you saw the forward multiple drop by about two points which is good news if is still above the long term median sentiment i'm not as excited about. we see given how swift the rebound has been we see those ramp back up again i would not mind seeing a shakeout in those conditions >> it might almost be one of those things that's like "it wasn't so bad and maybe we're back to the melt up mode just to follow up, how does the potential, the constant alert we're on now for a little higher inflation and a little higher bond yields factor into that equity evaluation at this point? >> it does matter, some of the periods in the past where earnings expectations have been going up, you still have trouble
in the stock market, areas where inflation is rising. we know it has negative impact on multiples forward earnings, trailing earnings, and you do a break down based on inflation zones, it is a curve. but when you move to the higher inflation zones, you see a ratcheting down. i do see that is a factor. not to mention in earnings expectations get high, they have a tendency to switch out points. they have been met with middling market returns and that is maybe contrary to the assumption that really strong earnings automatically means a strong stock market >> we had obviously this little test what did it tell you in terms of what may have worked in this rebound and how it makes sense to position as we're still below
the highs. >> i think we have come very quickly, it was a fear of jumping in a week ago back to the fear of missing out mentality among investors. and i look at some of the institutions that we're dealing with and they're sticking with the names that were winners last year, winners in the portfolio year to date i look at the bio tech space and we're seeing interest there from generalists and the community. and the biotech names, look at some of the base metals. we see them to continue buying i don't see the market ratcheting up from these levels in any meaningful way, but you stick with names, technology names that were winners and continue to beat expectations, and we're seeing earnings growth top line and bottom line earnings growth.
>> one of the consensus pieces of advice that has emerged in the last few weeks is people talking about interest rates rising and how far they might go and etc. get out of bond approximat prox utilitie utilities. >> we had an under performing rating on not just utilities, but telecom and rooeits there is so much yield chasing what are traditionally valued sectors reallydidn't offer any value and conversely we didn't change any of our out performing recommendations through this period and they continue to be technology, financials, and interestingly our kind of psuedo value play is health care. but none of those were changed purdly because of what happ purely because of what happened in the last few weeks.
>> maybe the other consensus call coming into this year is small cap and value. what you said earlier, you said you think there is not a wholesale rotation away from what worked already. that was really large cap growth and industrials. >> i'm right there look initially coming in i thought the exact same thing but you're right what we're seeing from a fund flow perspective is 100% graf stavii to the growth. and also, ratcheting up in expectations from an earnings standpoint we're seeing real money flows going back into those earning games. >> lizanne, how much are you paying attention to about what is going on with spending from the u.s. government and what effect that might have on bond yields and interest rates? and how much supply is coming? >> i think it is a big factor.
so cbo estimates put the deficit cost around a trillion and a half in the ten-year window. that means they have to issue more securities and that adds to the supply side of the equation, in addition to that you have the fed shrinking their balance sheet. that demand had been pretty powerful in the last many years and it is now dissipating. so any market now, rising fly and lower demand, you lower prices and higher yield. i think that has been a factor in this move up in yields beyond just rising inflation expectations >> quick, dafd, what is the next catalyst that we're looking for here are we waiting for the fed already a few weeks away >> yeah, i think that is it. we need to understand the path forward for the fed. there was a tremendous amount of destruction. a lot of hedge funds were
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is there thank you for joining me this morning, charles >> in my book, no one has followed the flows like you and we're at a historic mark right now. if you look, cisco announcing $25 billion, wells 22.6. they have compiled 170.8 billion up through february 15th in that time frame on a year to date perspective, a record amount of buy backs. your thoughts and what does it mean >> it means there are less shares outstanding companies have reduced the share count by over $3 trillion since the end of 2011 and central banks added $16 trillion to the balance sheets to their balance
sheets meaning they creating $16 trillion with which to buy financial assets we have seen globally, the market cap of stocks go from $30 trillion to $80 the economy. >> well, you know what, charles? it's an interesting point. you know, whether you like this analogy or not, you wrote me yesterday that something about this reminds you of housing prices prior to the credit crisis please explain >> well, prior to 2007, everybody knew particularly in california that the price of single family homes could never go down. it might not go up for a year or two. but it was always going up and, therefore, you could pay more than the house is worth and do some crazy leverage stuff because higher prices will bail you out. so since 2009, the u.s. global stock markets are up trillions and trillions of dollars and
with interest rates at zero, who knows what kind of leverage games have been happening and whether the tide goes out, meaning when central banks stop printing and prices go down, they'll be incredible garbage coming up from when the tide recedes, when the level of the ocean -- you'll see, oh, it's going to be -- it's going to make 2009 and all those problems seem minor in comparison >> all right let me interrupt you we're almost out of time ahead of the bank of japan, another term, another five-year term i believe he certainly didn't seem like he was having second thoughts about continuing, maybe doing more in the last 25 seconds, tell me your thought on that particularly >> well, central banks are going to keep printing until for some -- when they stop, who knows when, until then stock prices will likely keep going up i'm 100% bullish, remain 100% bullish. but at some point the reckonning will come and prices, you know, when the central banks stop
creating money with which to buy financial assets, it won't be nice >> well, i'll tell you what, charles, i get two things from that you're still 100% long and no matter what the eventual outcome is, of course, many traders will stay that way until the tide changes and i hope i'm here on that date. thank you, charles peterman. david faber, back to you >> thank you, mr. santelli d quk t seean"sawonhetrt" will be right back 's the value ? what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley
major food stocks reporting earnings this morning. our mike sontoli joining us from the telestrator. >> that's right. kraft, heinz, coca-cola, very mixed picture in terms of results and perception it's in a weak group if you look at the sector, consumer staples sector, the big stocks reside, xlp has been a very poor performer. that is the white line relative to the s&p 500 barely up for the year to date they got about that in a dif he didn't right now this group has a dividend yield around 2.7. higher than the s&p 500 but not high enough seemingly to entice a lot of people. naturally, they've been in a
difficult spot in terms of their o own per foremanance and investor preferences. if you want to drill into the food and beverage group, there is a smaller etf under the system pbj that is a power shares food and beverage stock etf. it is actually done somewhat worse. it's only up .5% on a one year basis. the staples group includes walmart, costco and personal products and things like that. i'll say investors retreat from this area and has been pretty pronounced the xlp had outflows in the last 12 months of $700 million. that is about 10%, almost 10% of the assets that sit there right now. so clearly it's an out of favor group. unclear, though, if this year it's going to be the kind of market that could have a comeback for these guys. >> so does pbj have some pbj stocks in it >> well, i think james smucker is the stock and coffee and smuckers i do believe it is in the pbj.
>> cool. >> maybe kraft heinz too that is down 5%. thank you, mike. when we come back, bitcoin is rebounding it is up more than 20% this week we're going to discuss that and a lot more with robert herjavec. this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets.
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