back to you. >> thanks for putting it in per perspective perspective, diana olick and rick santelli with the number. a big sell-off. the dow's down nearly 300 points. s&p 500 down 1.3%. bring in art cashin director of floor operations with ubs. the blue chip companies missing, one by one by one this morning, that is what it is negative sentiment around earnings? >> more than domestic. you're right impact of the dollar on earnings is clearly being felt and that's casting a pall not only on those reported but anticipation of those yet to report. we still have problems in europe. they kind of let greece slide yesterday. they're back at them today. greek banks are down 10%, in some cases. so this is kind of a combination of several things. the strong dollar impact on earnings, and some lousy 8:30 data. >> why is this coming as such a surprise? we've been talking -- i've been talking about the strong dollar for the last six, seven months and how it will hit earnings and the stock market kept going higher. why is this a surprise? is it going to impact the stock market and earnings for rest of

back to you. >> diana olick great job on that. terrific report. starbucks reported earnings in line, that's heyadline. find out why. joining us exclusively, howard schultz, chairman and president of starbucks. howard, your cfo has a line in the quarter. give me three reasons yp earnings per share growth to accelerate as we move into the back half of the year. that's why the stock's moving up. give us three reasons why that can occur? >> well first off, coming off an extraordinary quarter for holiday which we prepared all year for. it's very unusual to have every business in every geography exceed expectations. so we were extremely pleased with holiday. in terms of the back half of the year, we have plans in place that we think are going to be incremental. mobile pay delivery, coffee in our favor. we feel that we're set up very well to have a very excellent year. i think we're all humbled by the response, reaction the market's had to our performance. >> numbers in china both startling and stark versus some of your i don't want to call them competit

diana olick. over to jon fortt with a look at what is coming up next on "squawk alley" with the dow up 150 points jon. >> a lot for you, sara. we've got microsoft, the writer for wired who got the first look at that will join us. google, is it a good idea to sell wireless service? we'll dig into those plans. adam jonas on tesla coming up on "squawk alley." ife special by being apart of it. (everyone) cheers! glad you made it buddy. thanks for inviting me. thanks again my friends. for everything for all your help. through all life's milestones our trusted advisors are with you every step of the way. congratulations! thanks for helping me plan for my retirement. you should come celebrate with us. i'd be honored. plan for your goals with advisors you know and trust. so you can celebrate today and feel confident about tomorrow. chase. so you can. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and y

let's get to diana olick, breaking news on home builders sentiment. >> home builder confidence, down one point in december. it didn't move for the month. the monthly sentiment index stands at 57. anything above 50 positive and it has been in positive territory for seven straight months. last january, it was at 56. but then it dropped into the 40s for the first half of 2014. a mid higher interest rates and higher sales. david crow said steady economic growth rising consumer confidence and growing labor market will help housing market to continue to move forward in 2015. of the index's three components, current sales conditions unchanges at 62 expectations for future sales dropped four points to 6 on traffic of prospect evg buyers fell two points to 44. buyer traffic the only component unable to break into positive territory. builder confidence highest in the west lowest in the northeast. housing starts tomorrow morning at 8:30. >> thanks very much for breaking news on housing, diana. it has been a volatile start to the year and the morning. stocks opening higher. now dow down 9 points

diana olick has details on that. >> we do have it confirmed that president obama will announce a reduction in fha mortgage insurance premiums tomorrow at a housing event in phoenix, arizona. the reduction will be from the current 1.35% insurance premium to 0.85%. that is a significant drop and will definitely make a difference on many people's monthly mortgage payments. now, a source i spoke with who has seen the president's speech already says this quote couldn't come at a better the better time. especially right before the spring housing market. the spring housing marketing begins in february. why so important? not only will it give a boost of confidence to the lagging housing recovery now. we've seen mortgage applications falling dramatically as fewer and fewer people are getting into the market. but what it will also do is help the fha. as you may recall fannie mae and fred mac announced talo down payment mortgage product. at 3%. and the fha could stand to lose significant volume if all of that business went to fanny and freddy. by lowering the premium they are making themselves compet