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tv   Worldwide Exchange  CNBC  April 11, 2018 5:00am-6:00am EDT

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it's 5:00 a.m. on the east coast. here's the five big things you need to know number one, day two of facebook before congress. can mark zuckerberg keep shares of his company moving higher or will the house bring tougher questions today than the senate did yesterday? the tug of war on your money continues. futures indicating a lower open after yesterday's big rally. three, global trade in focus. the head of the imf is out with a warning for the world. four, watch oil. inventories on the rise again, even as oil stocks have been great money makers lately. five, shares of sprint and t-mobile jumping, the two
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companies restarting deal talks. it's wednesday, april 11th "worldwide exchange" begins right now. ♪ we'll make a dragon want to retire good morning from wherever in the world you're watching. here's how your money and the global markets are shaping up on this wednesday futures indicating a lower open. the dow indicated down about 100 points after yesterday's big rally where the dow jumped more than 400, a gain of under 2% coming up, a guest who called the recent drop and he has the number for you to watch right now. we'll get more of that in a moment first your top story is day two of facebook before congress. mark zuckerberg went before the senate yesterday julia boorstin was there all day and really all night and joins us from washington with some of the highlights julia? >> good morning to you
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more than 4 1/2 hours of testimony, mark zuckerberg was grilled by 43 senators, each taking five minutes to press him on topics ranging from data privacy to election manipulation to social media addiction. senators pushing zuckerberg to confront facebook's dominance and some shortfalls. >> would you be comfortable sharing with us the name of the hotel you stayed in last night >> uh, no. [ laughter ] >> if you messaged anybody this week, would you share with us the names of the people you've messaged >> senator, no, i would probably not choose to do that publicly here. >> i think that may be what this is all about your right to privacy. the limits of your right to privacy, and how much you give away in modern america in the name of "connecting people around the world." >> are you a tech company or the world's largest publisher?
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>> i view us as a tech company >> you said you responsible for the content, which makes you a publisher. >> we responsible for the content but we don't produce the content. >> is there an alternative to facebook >> yes the average american useseight different apps to communicate with friends and stay in touch with people. >> which is the same service you provide. >> we provide a number of different services >> is twitter the same as what you do >> it overlaps >> you don't think you have a monopoly >> certainly doesn't feel like that to me >> okay. >> how do you sustain a business model in which users don't pay for your service >> senator, we run ads >> on a number of different occasions, zuckerberg had to explain how facebook works, both as a service and also as a
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business and he also had to tell the senators he would follow up with different details, including one question about how he thinks facebook and the rest of the industry should be regulated. zuckerberg will take the hot seat again today when he testifies before the house at 10:00 a.m. >> i wondered how hot that hot seat is. the senators clearly indicated they had never used facebook or were not exactly sure of how it worked that aside, i won't ask you to comment on that. >> some of them did say they used facebook, by i was surprised by the number of questions that zuckerberg answered by saying that's not true we do have that safeguard in place. or you can do that with your profile. i was surprised by the number of times he had to correct them >> it was sort of that -- that's what i was going at.
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the senates would say how does that thing with the thing on the internet thing work? do we expect the house will come maybe more prepared today? >> they had time to watch the five hours of testimony yesterday. we will see if it becomes more intense or if they mix it up more today in the house hearing. i'll be there. >> you will. you will be working hard julia boorstin, thank you. >> >> thank you. let's bring in michael purves. we ran a poll during yesterday's hearing. we asked a simple but important question about facebook. dear america, is facebook a media company? yes or not 69% said yes, it is. that's bad news for facebook, isn't it >> certainly theoretically it is look, that 69% makes some sense.
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from a regulatory point of view, this question that's enduring is it like a phone company? effectively where they're not responsible for content or a media company? at&t when you and i were growing up, they didn't run ads. so it certainly looks like it's a media company there. i think -- i also want to clarify that i am not a facebook analyst, i'm a strategist there. i think what is happening with facebook, if this narrative continues about regulation, it is a huge market risk. >> it is it's a broader market risk >> it is because as we pointed out, facebook is so big it's such a heavy weight in so many market etfs even if viewers don't own facebook, don't care about facebook, have never used facebook, what is facebook's role in the overall market >> i would say facebook plus the
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other f.a.n.g. stocks. it's been an incredible driver of earnings growth for this company. it is central banking incentive, whether the central banks are aggressive or hawkish. it's been a high risk asset class, these f.a.n.g. stocks they have been de-risked by the market we talked late time the bait of amazon being 1.0 there six of the largest -- six of the ten largest stocks in the s&p 500 are tech stocks. half of those are f.a.n.g. the question is where do you get leadership from. >> we asked this before. if these names don't go up, can the market go up >> that's the $64 question i'm not sure it can go up right
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away, unless you have a strong economy. above consensus economic growth. >> if i'm hearing you right, there's roughly 3500 publicly traded equities. are they reliant on how five or ten stocks do? is all of our viewers money reliant on how a couple of stocks do? unfortunately i think the answer to that is yes >> that's scary. >> it is scary >> it's 5:0, i don't want to scare anybody. the weighted pe of the f.a.n.g. index has a beta of 1.1. low beta there one way to calibrate that is if the fang beta getsweighted dow to 26, that's almost 1.3 multiple points right there. there's another facet about who else will lead the charge forward if tech gets rerated downwards? >> banks
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oil companies? >> you need oil to break through. >> oil has been okay slee chevron and exxon have done well >> but you are beholden to oil prices so much of the -- if the tech stocks get rerated downwards, all the wonderful technology in that sector that helps those tech stocks, it is still there regardless of what happens in d.c. so that is one of the challenges to find the next leaders forward. they'll still be struggling with the hollowing out of -- >> we can't have a market where everybody is buying the same -- they have been if you look at every major hedge fund and etf, they've been buying for the last five years the same ten stocks. >> yeah. one way to put context around this, look at the -- compare the s&p 500 to europe and then how the tech sector relative to the
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s&p 500 has done -- compare that to how the s&p has done to european equities. almost the same chart. you strip out tech from the u.s., you basically are left with something that looks like europe, not bad, but more beholden to central banking, the trajectory of central banking and economic growth and whether those companies can continue to perform. so it's not necessarily disaster but certainly you won't see the kinds of high quality returns. >> so wrap it up with this technology is sexy these companies have made people a lot of money amazon and facebook are sexy stories. central banks wonky and slow but are central banks, the fed, the ecb, are they more important for viewers money than tech? which one is more important? boring bankers or sexy tech? >> i guess at the end of the day, when you ask the question about money, that gets to interest rates, not just the
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equity market -- >> that's right. i asked that for a reason. >> i would say the central banking -- if central banking were to radically change course, that would be much more important than whether facebook and amazon will be rated downwards. >> i love it that's why we watch the fed. great stuff. a three beta morning you said beta three times. zuckerberg back on the hill today. he will appear before the house energy and commerce committee. that hearing getting under way at 0:00 a.m. eastern full coverage on cnbc. there's a lot of news outside of facebook today kate rogers has some of the other big corporate stories. sprint and t-mobile, david faber says the companies are back in merger talks they called off previous discussions in november after they were unable to agree on terms of a deal. shares of analogic are higher
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after agreeing to be taken private for $1.1 billion the european commission raided the uk offices of fox networks yesterday, regulators are conducting an antitrust probe into sports rite s rights and distribution of content. and starboard value is seeking seats on the board of newell brands. starboard says more work is needed to repair the maker of rubbermaid containers even after carl icahn was handed board seats. coming up, a man who called the recent market slide has the next key number for you to watch as the market tries to march out of a correction. and did zuckerberg get off easy in front of the senate yesterday? will the house come with tougher questions? a preview of day two of that big
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hearing. 5:12 we'll be back after this but i'm not standing still... and with godaddy, i've made my ideas real. ♪ i made my own way, now it's time to make yours. ♪ everything is working, just like it should ♪ ♪ ♪ wake up early, o. ♪ slap on some cologne ♪ i'm 85 and i wanna go home ♪ ♪ just got a job ♪ as a lifeguard in savannah ♪ ♪ i'm 85 and i wanna go home ♪ ♪ dropping sick beats, they call me dj nana ♪ ♪ 85 and i wanna go don't get mad. get e*trade, kiddo.
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you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back here's how you and your money and investments are shaping up today. stocks indicating a drop of 100 points at the open, this follows yesterday's big rally. overnight in asia, we are seeing the nikkei down.
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the hang seng and shanghai are higher overseas in europe, we are seeing a mixed market. italy and spain are up germany, france and the ftse are down again, these moves fractional. in a few hours we will find out if inflation will remain a worry for the federal reserve and how much the price we're paying for everything is going up or not. that's the march consumer price index, that's at 8:30 a.m. eastern this morning at 2:00, the release of the latest fed minutes a few months ago your next guest told you the market was likely to drop did you listen to him? you should have. he's back now with how things are looking for your money and investments. joining us is craig johnson from piper jaffray. well known to our "trading nation." great call, you see more pain ahead. how come >> we titled this a hop, a drop and a pop.
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we're still in the drop. you were chatting earlier with michael about the tech stocks. what i see happening in the tech world, you look at these fang names, you have facebook, amazon, netflix, going m that is one-third of the weight of the nasdaq. >> repeat that amazon, facebook, google -- >> amazon, facebook, google, netflix represent one-third of the nasdaq >> no offense, nothing to do with those companies, that doesn't sound like good market structure. >> correct 100% we saw something earlier when we made the call back in january with the dow we saw that you have got boeing, you have caterpillar representing 15% of that index you look at those stocks and the par boliabolic nature of those stocks, there's only one way that ends, with a price correction several of these names are extended in terms of the charts.
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if you look at amazon, you could see a 17% correction and be in an uptrend you could see a 20% correction in netflix and be in an uptrend. these are great companies, but not great stocks >> do you think we will see those kinds of turns >> i think you probably will see those pullbacks. >> 15% to 20% on netflix and amazon >> correct >> so if you're right, and you have been, if you're right on those names, we just went through the importance of the market weight, that doesn't bode well for the overall market. exactly. that's why people need to be more cautious. we need to be cognizant that these names are such a big part of these indexes so, we have to watch these when you watch the amazon and netflix specifically, it's not reality to have amazon up at the peak 30 plus percent for the
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year these stocks need to take a breather, great companies, but just not great stocks now. if you marry that together with what's happening with interest rates, ten-year bond yields, the spread between the two-year and ten-year continues to narrow when is the last time we had a narrowing in the two to ten spread we had problems. that was in 2000 also in 2007 >> wait. you're sending -- 2000 and 2007 were not good years for anybody on any level unless you were short everyone >> correct >> why those comparisons >> if you think back in time in terms of 2000, 2007, those are other peaks you have seen in the market when you think about 2007 specifically, the financial sector disengaged from the rest of the equity market that's a significant sign and that's why we got more cautious in 2007.
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right now i don't think this market needs to take a breather. it needs to come in further. the key number i'm watching, i'll watch the february lows >> which are what? >> 2533. >> 2533 is the number. >> the number to watch now a break below that number, you'll start another leg lower in equity markets. you have got roughly half of the names in the s&p 500 already trading below those february lows those four stocks i mentioned earlier are key to holding up the overall averages >> i want to give a shout out to your team here his team at piper puts out this book every quarter >> that comes out ten times a year >> i don't know how you do it. massive book all kinds of good stuff in there. you're optimistic longer term. you said the hop, the drop, the pop. you made the case for the drop, where is the pop
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>> drop is still playing out we have another 12% to get to 2325 to 2350 is where i think the drop phase ultimately settles out. it will happen the mid part of this year. then you get the pop coming into play we're looking for 2850 at year end. by the way at 2325, 2350, you have a solid technical argument and a great valuation argument at that point in time you will be trading 13 1/2 forward earnings >> if the marketfalls 5%, 10%, they can look back at this interview and we can say you told them about it >> correct. coming up, a shot of mark zuckerberg's notes from the
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congressional hearing. and oil under pressure this morning. we'll find out why when "worldwide exchange" returns try align, the #1 doctor recommended probiotic. with a unique strain that re-aligns your system. re-align yourself, with align.
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a brand-new show kicks off on cnbc prime time tonight, it's called "staten island hustle." in the first episode, the guys try to turn new york city water into gold. >> the scale on the ph goes from 0 to 14. 0 being the most acidic, 14
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being alkaline anybody with half a brain knows this >> the total dissolved solids. >> sounds like a urinary tract infection. >> i don't know what this is >> new york water is 160 >> you have to go down the whole thing? >> yes the best water has to have oxidation reduction -- calcium, magnesium -- oxidation -- negative ions. >> mike and ron, they were cross-eyed their jaws were hanging open flies are going in and out didn't these guys go to high school this is science 101. >> easy, right >> you can catch more in our series premiere can t"staten isd hustle." tonight at 10:00 p.m. on cnbc. let's hustle over to frances rivera with the top stories
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around the country. we're waiting to hear when and how president trump will respond to the suspected chemical attack in syria the president is promising a forceful response this week with reports that his advisers are weighing a more robust strike than last year's 59 tomahawk missiles one russian lawmaker says any strike on syria will lead to a military response. there's new fallout on the raid on michael cohen. the president believes he has the power to fire robert mueller, while the "new york times" reports the president wanted the investigation shut down in december. the royal wedding is a little over a month away now we know who will not be there. kensington palace says political leaders, both british and international will not be invited. so no prime minister theresa may, no president trump, and no former president obama who is a good friend of the prince. i don't know what's worse, to know you're not invited at all or be on the "b" or "c" list
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>> we'll have a great time it will be fantastic >> enjoy >> i wish. thank you very much. do appreciate that. still ahead, silicon valley and social media buzzing about zuckerberg's first day on the hill some of the hottest top takes straight ahead. and why a havenventure capit is sending a warn to congress about tech and regulation. stick around ur brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. my mom washes the dishes... ...before she puts them in the dishwasher.
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whichever audience you're looking for, we'll find them we're the finders. we work here at comcast spotlight, and we have the best tools for getting your advertising message out there. anywhere, any way your audience watches. consider them found. facebook under fire part two. mark zuckerberg heading back to
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capitol hill today hitting the pause button wall street pointing to a lower open following yesterday's big move higher. we'll find out what is dragging things down. and a youtube hack attack to tell you about some music videos defaced. it's wednesday, april 11th you're watching "worldwide exchange" on cnbc. ♪ welcome back thanks for being with us i'm brian sullivan good to be back with us. here's how your money and investments look right now futures indicating a drop of 100 points at the open, this coming off yesterday's big move higher, 4 400-point jump a lot of volatility. shares of facebook, we will see if they continue their run coming up in your morning rbi,
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how much money -- zuckerberg is struggling, he needs more money -- how much money zuckerberg made off of facebook's stock move yesterday. it's a big number. that's your morning rbi. that's in a bit. let's stay with the facebook story. really one moment in yesterday's hearing caught a lot of peoples attention. came randomly. during an exchange over content between texas senator john cornyn and zuckerberg. take a listen. >> in the past, we've been told that platforms like facebook, twitter, instagram and the like are neutral platforms. and the people who own and run those for profit, and i'm not criticizing, doing something for profit in this country, but they bore no responsibility for the content. you agree now that facebook and other social media platforms are not neutral platforms but bear
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some responsibility for the content? >> i agree that we're responsible for the content. >> joining us is david mccabe from axios i think me and a number of other folks were surprised that zuckerberg admitted they were responsible for the content. were you >> it was certainly a surprising moment for basically its entire existence facebook and other companies like facebook relied on the fact they don't have responsibility for the content to basically avoid liability for any of it. if you're responsible legally for the postings of 2 billion people, that's a lot of liabilities to assume. the question is what would lawmakers do about it, they could make changes to a key law that shields companies like facebook from that liability they could create more carve-outs but we have not seen a lot of willingness to do that >> we haven't. bra
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based on what many consider the softball or misunderstood nature of a lot of these questions, do you think the senate is likely to take action after yesterday a lot of senators apparently fully did not understand how the technology works >> there's two questions to watch. one, do they know enough to enact regulations or write legislation. it was clear a lot of senators did not have a grasp on a lot of the intricacies of the facebook platform people would say a lot of constituents, normal americans who use facebook don't have an incredible understanding of the ad market. that's not something that consumers are expected to understand it was striking from regulators. and it allowed zuckerberg to come in and explain the platform over five hours. he's able to do that comfortable. he didn't give any slip-ups that
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would allow lawmakers to say you messed this up, we have to do something. >> do you think zuckerberg came off as genuine he was being respectful. senator, i agree america needs more information do you think he came across as genui genuine? >> as always, his delivery was a little mixed by the end, lawmakers were joking around. they seemed happy he was there one lawmaker asked him to bring fiber to his homestate of west virginia if he had not won them over, he had won by forfeit >> zuckerberg was the matador and the senate was the bull. the market added 17 billion in market cap to facebook during the day. clearly the market says zuckerberg won >> the market saw this and had an obvious reaction. the market clearly felt good about what they saw, both his
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delivery and what they inferred from lawmakers about the prospects for regulation >> do you think the house will bring a sharper spear today or will it be more nerf >> the house is a different animal one thing to watch, as democrats try to take back the house, we can read into what happened if they won in terms of legislation. another thing is if they do dig into questions around legislation, looking forward rather than the backward looking questions that the senate asked about cambridge analytica and the what happened question >> how many lobbyists do you think facebook has working for them are they pouring cash on k street >> they since last year when the russia scandal broke brought on a lot of consultants they've been working with wilmer hale, to prep zuckerberg for this i saw every member of their policy high command in the room yesterday. every policy executive was there including the general counsel,
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the top policy expert, it was the who's who of facebook policy >> help out. maybe tell us who were the folks right behind zuckerberg. who are those people behind zuckerberg >> one of them was joel kaplan, that's one of the guys right behind him he's the global policy adviser at facebook. another was colin strepps. two rows back, that's the general counsel, there was greg mower, one of the top capitol hill lobbyists for facebook. erin egan who runs the washington office was right behind him all the big names. i would say i got text s from
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friends who said i see you behind zuckerberg. >> if you were zuckerberg's lawyer, and you said this morning here is what you do not say. whatever you do, don't say this. what would you tell him? >> i'm not paid nearly as much as facebook's lawyers. >> nobody is, don't worry. >> i think the key thing now is for him to keep the momentum going. to not make more big mistakes. he didn't really make any yesterday. the story coming out of it was his opening statement, that he apologized, he said they would make changes to keep that momentum going, that's what he will be trying to do >> would you share what hotel you stayed in last night i expected him to say i slept on the jet. i bought a house for one night thanks >> appreciate it.
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tim draper weighing in on the topic of regulation, here's what he hold deidre boyesterday. >> if you get more regulation you get more poverty it happens in every situation throughout history it takes four years for anybody to notice, but all of a sudden, china's rich wow, hey, they were free for 40 years. they're rich we were free for 200 years we got rich. freedom matters. regulations and attacks on the heroes of the country are big problems that's where you see schadenfreude, these politics want to take down the businesses that's a bad sign. that makes you want to leave the country. >> draper also commenting on mark zuckerberg comparing his level of power to microsoft founder bill gates a number of decades ago.
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sticking with facebook, a photo of zuckerberg's bulleted talking points getting buzz. the notes include from how to discuss election integrity and cambridge analytica to what to say to defend facebook if attacked the answer there, respectfully, i reject that, not who we are. facebook had a lot to say. kate rogers has more on that as you mentioned, mark zuckerberg was restrained in his senate testimony which stretched on for nearly five hours yesterday. before the testimony began, mark zuckerberg posted on facebook that he was going to testify in front of the senate about how facebook needs to take a broader view of our responsibility, not just to build tools, but to make sure those tools are being used for good much of the reaction to the testimony unfolded not on facebook, but on twitter lawmakers like democrat chris coons of delaware weighed in
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saying on today of all days i just found out there are two fake facebook accounts impersonating me and many of the friends appear to be russian accounts facebook and mr. zuckerberg, this is unacceptable recode's kara swisher said oman, i want to marry senator durbin on this hotel question, which shook zuckerberg durbin asked zuckerberg who he contacted that week and where he stayed last night which the ceo declined to answer dan primack said i think zuk is bli blinking out an sos signal so, some of them were more lighthearted a lot of people folki ipoking f
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zuckerberg >> he's young. >> 33. >> still like a grown-up these days, i think. zuckerberg got off easy. except for the hotel question. that is the one that connected with the audience. a lot of senators -- i mean this with all due respect, they seemed to ask questions like how does the app -- >> it was like tech support. >> like someone trying to explain how an engine worked, but never worked on a car engine so your mom. >> my mom said kate, what was facebook called when you were in high school? it was something different i said "the facebook?" >> that was the original name. >> she said it was something else wasn't it myspace. she was asking if they were the same they are ish, but not. >> i will defend your mother here, she is obviously very
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nice >> she's the best. >> facebook killed myspace effectively. so they are kind of related. like we'll put you out of business kind of way >> high school kate was hot on my spai myspac myspace. >> so your mom is technically correct. >> i liked the question about asking people via microphones, smartphones, they said, no, we're not listening. targeting is just that good. >> there's a spectacular story from the "journal" about how much information and data that all these providers including domino's pizza get when you order a pizza using an app or alexa, how much information they take i don't know the author, whoever wrote it, read it. what they know is bonkers. >> it's what we're opting into if you want to know where the nearest starbucks or dominos is, they need your gps information,
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but i don't know if they need your contact lists >> also your connection speed. a lot of that stuff you need to have it work that's the guts. good stuff, be nice to your mom. >> i am. what jcpenney and mark zuckerberg have in common. yes, they have something in common. plus lovable sister jean at it again the 98-year-old nun making waves after throwing out the first pitch at the cubs home opener. first a check of the national forecast from michelle grossman. >> good morning. finally feeling like spring in many spots around the country. that will only improve over the next several days. we've been so cold lately, but this warmth in the middle of the country, that jet stream lifting to the north allowing heat to come in. in oklahoma city, lots of sunshine, 79 82 in dallas
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in the east, still below normal, but better than where we have been 52 in new york normally around 60 washington, d.c. 59. but here are the changes by thursday, we'll add on about six degrees. 59 in new york 75 in washington 76 in atlanta. by friday, temperatures around 83 degrees in washington, d.c. looking good that's a look at your business travelers forecast more "worldwide exchange" when we come back
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stock futures down on an implied open of 105. on a percentage basis, not that much oil has been getting stronger. lower today. watch it, though if technology rolls over, will the chevrons and exxons of the world, will they assume the leadership role? we'll find out oil turning around today up about 22 cents. time for more on this morning's top stories. kate rogers is back with those what is trending >> we'll start with yuboutube's vivo channel which was hacked. t this is widely used by musicians and they were all affected in the attack aaron rodgers meeting with the dalai lama
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he het him during a humanitarian mission to india he gifted the dalai lama with a packers has the and football, which the dalai lama then posted on his instagram account. loyala super fan is still beloved in chi town. she threw out the first pitch in the cubs home opener yesterday don't worry, sister jean still sported a ramblers has the. and after a long winter, most of us are eager to have swing arrive residents in stratford, ontario have a unique tradition to celebrate. thousands gathered to watch the swan parade, where 21 swans march through the streets and take to the river. they met people as far away from north carolina to take in the festivities. brian, back over to you. >> that's a bevy of swans.
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>> sure is >> a wedge a group of swans is called a wedge. >> no. i'm not surprised you know that. >> do you know what a group of crows is called? >> what? >> a murder. >> really? >> murder of one a counting crows song. >> things you learn during "wex." >> tune in kate rogers, no relation to aaron. grading mark zuckerberg. he may have won over wall street but what's in store for day two. your morning rbi, the random but interesting thing you will hear all day how much money mark zuckerberg made as he crmhaed the pod of congress we're back after this.
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on joining us is jack cafferty. good tosee you it's early we've had all these 1% moves, even a couple 2% turnarounds we had none for years. why are we seeing all this weird volatility >> i think we can try to unpack the news flow and also unpack in terms of market mechanics. let's start with the news flow we come from an environment where we keep getting good news, good news. it built on itself and we continue to get positive surprises. that allowed the market to consistently move higher and volatility drop. more eventually we've seen a divergence you're getting news which is good, but not quite as good as we were expecting. then you have to reassess some of your forecasts in terms of where the world goes and within that, when i move from the fundamentals to the technicals, we have had a rise of no one being willing to take the other wide when you think about how market
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structures have changed, for the most part the system is set up to exacerbate whatever the most recent trade is. years ago traders would tell you the trend is your friend if there is no one taking the other side, you exacerbate news rather than dampen them. so the microstructure in the market is feeding and creeping things >> do you expect that to continue >> i do think it continues effectively when you have taken away the special system, market makers, block traders, the fact is the system is built to go one way or the other what changes its mind is news flow eventually news flow has been better and allowed markets to rally. within that, look to the news, look where things go, ithink i will be more productive. >> that a reason to stay away from stocks? >> it's not. it's a reason to have maybe more of shopping list in mind thinking about what i want over
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a 6 or 12-month horizon. in fairness, you have to balance that for the last eight years you earned nothing in cash today you at least earn something in cash. the most uncomfortable buys are usually the most profitable over time >> we have a fed that many are concerned may blow it. you have these fears of a trade war despite what president xi said yesterday, the tariffs may be impacted by the united states has the market overreactedlempr probabilities? a lot of worry out there
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>> you can try to walk through this idea of the market is trying to work its way through the sense we had of complete certainty that the news was only good in an environment where we're more willing to concede that we don't necessarily know but the good news about not necessarily knowing, it comes back to valuation. that chance of getting better surprises. the good news about positive surprises, they feed on themselves you can get the good nusz and a better valuation on the good news what should our shopping list have >> we're finding lots of opportunities in technology, despite the large weight in the market there are changes within technology that create changes as companies spend more to create more efficiency and productivity we like the financials in the case of we are seeing a rising interest rate environment. it's probably going to be a gradual rising interest rate
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environment but it maybes for some interestings earnings patterns, and valuations are compelling >> a bit more of an optimistic tone your notes on market volatility are well taken it's been a wild ride so far likely more to come. jack caffrey, thank you. >> thank you we will wrap up with the rbi. your random but interesting stat of the day here's the thing, facebook added about 17 billion in market cap yesterday. you know that you heard that all day on cnbc. because he controls most of the company, mark zuckerberg in his masterful performance in front of the senate added 3 billion to his net worth yesterday. yesterday mark zuckerberg made the equivalent of three entire jcpenneys plus a smaller retailer thrown in that's random but hopefully interesting. that's it for "worldwide exchange." "squawk box" is next
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another day, another move out of the gate of 400 points. yesterday it was up 4 0 0, today it's looking down 100. we'll tell you what can drive markets in today's session it's all the usual suspects. investors liking the testimony by mark zuckerberg not sure they liked that hair cut. the stock rose more than 4%. the company added more than 20% in market value. and the will they or won't they merger talks
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t-mobile and sprint talks are apparently back on it's wednesday, april 11, 2018 "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box. good morning welcome to "squawk box" here on cnbc we're live at the nasdaq market site in times square i'm andrew ross sorkin along with joe kernen, kelly evans hanging out today. let's show you the markets now show you how things are setting themselves up. not in a good way. dow would open off about 117 points nasdaq looking to open off 32 points s&p 500 looking to open off about 15 points. let's show you what's happened overnight in asia as we flip the board

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