second longest bull run in market history. morgan brennan tasz a look back and ahead. >> reporter: happy birthday to the bulls. bull market that is. 8 years ago the market hit its bottom after free falling in the worse financial crisis to sweep the globe since the great depression. so much has changed since then. the end of the recession a tidal wave of global stimulus, two presidential elections a commodity price collapse and a record string of record market highs. >> everybody's down here talking happily about eight years ago when the market bottom and they seemed to have forgotten eight and a half years ago when paulson and ber knacky actually discussing the possibility of invoking or declaring martial law in the united states. that's how close we came to the wheels coming off the loc motive. >> reporter: the s&p 500 has surged almost 250%. the dow jones industrial average has more than tripled and the nasdaq has outdone both, up more than 350%. what's led the rally? consumer discretionary stocks like beauty product retailer ulta beauty which has surged more than 6,000%. also biotech

travelers. morgan brennan has the details. >> reporter: president trump budget blueprint includes sweep changes to transportation. both on the ground and beyond. he cuts the department of transportation by 13% including no more subti diz for commercial air travel service to rural areas and no more support for amtrak's unprofitable long distance service. amtrak's ceo warning these trains connect our major regions, provide vital transportation to residents and rural communities and generate passengers and revenue for the northeast corridor. the railroad's long distance lines comprise the only amtrak service in half of the 46 states it serves. the cuts are drier ire of democratic lawmakers. >> the president wants continue to crease infrastructure but slashes the department of transportation. so it's somewhat hypocritical and contradictory budgets in many respects. >> perhaps biggest change is privatization of air traffic control. a plan has been to transfer them to an organization. >> you and everyone else, plus the airline. so wasted time and run direct technology is there. they just have

ahead, will truckers keep on trucking? >> and morgan brennan in new jersey. more than 200 moves by truck. this is an industry with a direct take on the economy. truckers are sounding off about how president trump could improve business. that story coming up on "nightly business report." >>> helalth care was on the agenda today at the white house when the president met with a group of trucking executives. he praised their work, but after a tough 2016, are things looking up for the sector, especially under an administration that wants to roll back regulations? morgan brennan reports from richfield, new jersey. >> big rigs rolled into the white house today as trucking executives met with president trump to talk health care regulation and infrastructure. the trucking industry is the top employer in 29 states. including three and a half million drivers who haul ten and a half billion tons of freight each year. a highly regulated industry. many ensure drivers are at their best on the road. companies are in favor of those safety standards, but there are other regulations the industry woul

performing member. morgan brennan tells us what we know at this point. >> reporter: it's a knock on the door no company wants. law enforcement officials searched three caterpillar facilities today including headquarters in illinois. the u.s. attorney's office for the central district of illinois confirmed the searches and said agents from the irs, the federal deposit insurance corporation and the commerce department were all involved. caterpillar is cooperating with authorities and said, quote, while the warrant is broadly drafted we believe the execution of the search warrant is regarding, among other things, export filings that relate to swiss subsidiary. the matter first disclosed in caterpillar's form 10 k file an updated in the most recent form 10 k filed with the scc on february 15th 2017. the caterpillar's referring to investigation into whether the company tried to evade paying more than $2 billion in taxes by using a swiss subsidiary to sell replacement parts that came from u.s. operations. even with this previous disclosure investors did not seem to like the pictures of fe

going broke, but one nfl team owner is helping his players think beyond game day. morgan brennan has the story. >> reporter: life after football. miami dolphins are getting schooled in winning off the field. >> boom, they hit into one another. >> 16 players headed to a combine steven ross arranged for his team. >> i think as an owner, i have the responsibility to develop as great football player, to prolong their career, but also the fact is i think it's a responsibility to make sure when their career is over. >> midtown manhattan is one of dozens events they will take in over the course of the week. >> they want to think about the future and predict they come in here and speak with our executives. one of them was just asking me, what's the difference between the steel building and a concrete building. >> it takes them to a lunch-time q& a with equinox. to learn more about business and investing. >> to kind of shadow these business millionaires, billionaires. it's an amazing opportunity. >> football is a short career. that being said, you have to plan. >> players chose to participate, pa

anniversare or something like that. >>> we've all heard stories of athletes going broke. morgan brennan has the story. >> life after football. miami dolphins are getting schooled in winning after the field. recently 16 players traveled to new york for a business combine dolphins owner steven ross arranged for his nfl team. >> i think as an owner i have a responsibility to make sure they develop as great football players, prolong their career, but also the fact is i think it's a responsibility to make sure that when their career is over -- >> this tour of hudson yards in mid town, manhattan, is one of a dozen events players will partake in over a week. >> they won't be playing football as long as they can. when they're done they want to think about their future. for them to come in here and speak to our executives and learn what we're doing. one was asking me what's the difference between a steel building and concrete building and why we would build steel versus concrete. >> reporter: from new york's hudson yard $25 billion project to a lunchtime q&a with the ceo of equinox. they've been mee

perform he of the blue chip index. morgan brennan has more on the latest twists and turns. >> "the new york times" reviewed the report which is not yet been made public and says it was commissioned by the u.s. government which has been investigating caterpillar's activities tied to a subsidiary for years. account thing professor at dartmouth's school of business conclude caterpillar did not comply with u.s. tax law or u.s. financial reporting ruse adding, quote, i believe the company is not in come blinls the rules with deliberate and primarily with the attention of maintaining a higher share price. these actions were fraudulent rather than negligent. >> you're supposed to pay tax on it with a credit for whatever you paid overseas. and the professor's analysis in her view, cat pillar brings billions back to the u.s. without paying tax and without accounting for it for tax purposes, in its financials, even though it didn't have the ability to do that based on her analysis of what was good on offshore. the bottom line is that her position was the company owed billions in tax and didn't p

be right back. >>> welcome back. let's get over to morgan brennan for a quick "market flash" on tyson. hey, morgan. >> the usda confirming a second case of bird flu in tennessee, two miles from the farm infected earlier this month. like the first case, this site supplies tyson. tyson says it's coordinating to euthanize the chicken. all of the chicken quarantined, being tested. the company doesn't expect disruptions to its chicken business, still plans to meet customers' needs. nonetheless, shares are down almost 2.5%. we're also seeing pressure on other chicken producers, pilgrim's pride, sanderson farms as well, and that is in part because, as we saw in 2015, contagious, lethal strains of bird flu have the potential to wreak havoc in the poultry industry and spur some trading partners to ban u.s. exports. i'll just note, we're talking about a chicken health issue. at least at this point with this strain, not a human health issue. back to you. >> thank you very much, morgan brennan. >>> this morning, luxury apparel-maker canada goose surging in its ipo debut. this is ceo dani re

rise. morgan brennan has more from wall street. >> reporter: those so-called bond proxies, consumers staples are are outperformed the s&p' 3.7% gain. the utility etf up 5% over the last month, despite expectations that etfs will post lower. bond yields fell in february on concerns the trump rally was losing steam, policy reforms may not materialize in the economy until next year. but that's changing. so fed speak started last week. a steady drumbeat of more hawkish commentary from central bankers, culminating in a grand finale speech from fed chair yellen last week. the fed sent the two-year note to its highest level since 2009. investors are rotating out of staples and telecom, making these the biggest laggards so far in march. brian belski noting reits should be sold. those defensive names will come under pressure not only as the if he had likely raises levels next week. a growing number of economists forecasting four hikes here rather than the two that markets had been factoring in just a few weeks ago, scott. >> morgan brennan from the new york stock exchange. >>> our

technologies. and its ceo spoke with morgan brennan. morgan joining us from washington with more on what he had to say. >> that's right, so long heat martin chairman and ceo talking growth, innovation and of course president trump saying this past year was one of the most complex volatile geopolitical environments of her entire career. and that she's lockheed's growth process penkts. so in an interview with me earlier today, he's been saying from her perspective, it looks very positive that proposals for more defense spending moves forward. she's also hopeful that sequestration is eliminated. in remarks this morning, she noted a trump effect on nato members vowing to beef up funding. on the fighter jets, houston saying president trump quote absolutely made a difference in negotiations of the recent contract putting a, quote, sharper point on price. but also noting that he hasn't been involved in the newest contract negotiations which are expected to be wrapped up this year. a big focus on international business as well with lockheed on track to grow international to 30% of overall sales ove

those infrastructure projects is amtrak and it comes with a $24 billion price tag. our morgan brennan is at newark's penn station. lucky you. with more on that story. >> hey, kelly, that's right. so the $24 billion gateway plan has been years in the making. this involves the building of a new portal bridge, the doubling of capacity at new york's penn station and the construction of a new tunnel under the hudson river between new york and new jersey. the current existing infrastructure is 106 years old. and the current tunnel which was damaged during superstorm sandy is cracking. even as 240 trains carrying 200,000 200,000 passengers pass through it. so they're all urging the federal government for the work to begin with starting with the prij replacement. but president trump unveiled a 2018 blueprint that would eliminate a future source of money for the project and gateway is on the line right now. with productivity in a region compromising 10% of america's economy. >> there's no other way to accommodate those 200,000 people a day. it would have a very direct and very dire impact. it cou

right though. courtney, thank you. >>> we have an earnings alert on zoom. morgan brennan has those numbers. >> take a look at shares of zoom zuhmiez. it beat in earnings 74 cents per share for last quarter, that was an 8 cent beat. 264 million in revenue. however, this is why the shares are trading lower right now, really disappointing first quarter guidance. seeing a big loss. the company expects a big loss, 17 to 21 cents per share versus what analysts were expecting, a loss of 3 cents. also want to draw your attention to verifone. earnings of 21 cents per share beat by a penny. revenue of 457 million also better than expected. second quarter, quarter earnings outlook was in align. so shares of the payment systems provider are up almost 2.5% after hours right now. >> thank you, morgan. really interesting about zumiez off. >>> time for a cnbc news update with sue herera. >> here's what's happening. legal challenges against president trump's revised travel ban are mounting. washington state saying it will review and renew its request to block the executive order. it comes a day aft

media day in arlington, virginia. that's where we found morgan brennan who just spoke with marilyn hueson live with us right now. hey, morgan. >> so once lockheed martin opens its doors to media. today is the day, i did just a few moments ago sit down with ceo and chairman marilyn hueson. she says she's optimistic of the company's growth, which is expected to be 3 to 5% over the next years, and that the f-35 joint strike fighter will be a big part of that. on the defense budget, both the fiscal 2017 supplemental and the new 2018 budget blueprint that was released by the trump administration last week whereby she says, a lot remains to be seen. that increase in spending does potentially move forward. her biggest concern, continuing resolution. budget stability is a key part of costs coming down. on regulation, pointing out the 20 cents of every dollar goes towards regulation and compliance. thag according to industry reports on equipment and service. so that industry does see room for reform as well as tax reform. now, when i asked her specifically about whether she's concerned for

name is watson. caterpillar headquarters today. morgan brennan is tracking this story and has the latest. >> so shares of caterpillar have been sliding today and that is after federal agents searched and seized materials at three of their illinois facilities including its head quarters. u.s. attorney's office confirming the searches and that agents from the fdic office of the inspector general, irs criminal investigation, commerce department's office of export and enforcement were all on the scene today. the company confirming the searches as well and saying that it is cooperating, but offering no more detail beyond that. in its recent 10 k filing however, cat did disclose receiving federal subpoenas seeking materials related to its swiss subsidiary, specifically movements of casual tied to the sales ever replacement parts. for background, a 2014 senate investigation had said the company created a strategy in the late '90s to reduce its u.s. tax burden by using the swiss business to shift the sale and thus profits ever replacement parts to switzerland. so the s.e.c. investigated i

frost along with morgan brennan in for sara today. good morning. >> good morning. great to be here. >> great to have you with us. not just any friday, new music friday. we're kicking off the show with lo lorde's brand-new song. the "e" is silent, much to the amusement. this is very peppy for lorde. i'm digging it. >> it's called "green light." let's get to the market action. >> let's look at what your money is doing this morning. starting with u.s. equity futures. we have got red today. we have the dow jones indicated to open lower by 35 points. the s&p poised to open 6 points lower. the nasdaq down 15 points. this after stocks took a pause yesterday given the record rally we have seen in recent days. 9 of 11 s&p sectors yesterday finished lower. led down by financials. caterpillar was the biggest negative after federal agents searched their offices, something i reported on throughout the day yesterday. even so, we are on track for all three of these indexes to close the week in the green. turning to the treasury market. a lot of fed speak this week, which the markets have perceive

9 in just a few. >> all right, see you soon, scott. meanwhile, let's get to morgan brennan for a quick "market flash." >>> index provider msci responding to reports it's received or rerejected a buyout. it sent it to a record high earlier today and resulted in it being halted. msci saying we are not in discussions with a third party and have not received any offer or indication of interest. you'll recall, our jim cramer mentioned the stock earlier today, noting its indices represent one of the best ways to access emerging markets but reports of a takeover were unconfirmed. shares are up 1.5% right now, but certainly pairing the gains we saw before it was you. >> morgan, thanks fort update. >>> another important event, widely anticipated federal rate hike coming this afternoon. hours away. joining us, michael feroli and nate fute, head of global asset allocation. thank you very much. we are going to make this quick and dirty, because we got a little chopped by the yahoo! press report. we have been wondering what could surprise investors, they are walking into this fed hike in a pr

some more developments now on that caterpillar story with morgan brennan. >> hey, scott, that's right. we want to give some updates on caterpillar where we have federal agents searching three facilities, including the industrial giants peoria, illinois, headquarters. i want to show some photos here. what you'll be able to see from these photos, this one is the front of the headquarters for caterpillar. those cars lined up in front are what agents got out of to go into that building. in terms of what agents participating, so far we know irs, as you can see in this picture, also fdic and commerce department agents are participating in these searches. caterpillar has said that it is cooperating as these agents search the three different facilities, but not elaborating on any details on what this involves. so we look at shares of caterpillar. the losses are accelerating right now. they are down about 4%. back over to you. >> morgan, thanks so much. >> this is dow component. i imagine everyone is watching it. this is one of the quote, unquote, trump stock sectors that we're talking about.

brennan, dow's down 72. hey, morgan. >> hey, carl, that's right. u.s. stocks are lower today. all s&p sectors are in the red. that's following a down session in europe, french election jitters there, deutsche bank raising more capital all weighing. mixed performance in asia where markets largely shrugged off missile launches by north korea even though three did land in japan's cleexclusive economic z. more hawkish fed speak including chair yellen last week f you take a look at the thompson reuters fed funds futures now indicating 83% odds of a hike this month. all eyes on friday's jobs report. this is considered the final hurdle to that hike actually happening. meantime, china setting its 2017 economic growth target at 6.5%. that's down modestly from last year, but still represents a 25-year low. so that is sending copper lower today. with it freept mcmoran, also adding pressure to crude which coupled with opec comments over the weekend that it hasn't committed to extending its output deal is weighing on energy stocks. names like transocean, halliburton, murphy oil, energy's the worst

points. morgan brennan is with me on the floor of the new york stock exchange. we've been watching the health care stocks to try to get a sense of wall street's response to this. it's mixed. the hospital stocks are down. drug stocks are under pressure. insurance companies are doing okay today. >> exactly. health care one of the laggards in terms of sectors in this down market though not the worst performing sector coming out of the open this morning. as you mention, we've got investors trying to parse out winners and losers. managed care seen as potential winner. humana is trading at 52 week highs. some of the losers, drug stocks. not surprisingly. president trump put out the tweet suggesting he has more pressure on drug companies with their prices. the idb, xdi down 1% each. >> the estimate now, and it's very early in the process, you could get as many as 8 to 10 million americans who lose coverage as a result of this new bill. that would put pressure on hospital companies because they would have to come up with the services to these people who don't have the coverage and find a way t

cartoon character. >> she was. >> morgan brennan is on the floor for us today. >> hey, carl. stocks modestly lower today. second down day here amid a modestly mixed session in europe. higher trade in asia excluding the japanese nikkei. consolidation is the theme with traders i've spoken to as investors take profits after the record highs last week. ahead of the fed meeting next wednesday. the obamacare replacement proposal is in focus. we have the employer mandates scrapped, tax credits replacing subsid subsidies. different groups reacting. we have humana, united health, tenant health care all lower. drug stocks under pressure because of the recent tweet this morning from president trump about a new system with increased competition. the biotech etf is lower today, as well. energy, out performer after the i iea forecasted double oing production by 2020. crude is higher this morning. with it, stocks like conocophillips and chesapeake. we've seen a turn in the last moment. exxon also detailing its $20 billion spending plans in gulf coast refining. chevron, growth productions at its an

country. morgan brennan has more on the story. it sounds like a different strain of bird flu. >> it is. it is a strain that's also lethal and contagious to birds. this is why this is coming under fire. someone should look at shares of tyson. we are down 1.40 off the lows of the day. down about 2%. this after government officials confirmed that a tennessee chicken farm that's contracted by tyson did test positive for this strain of bird flu. this is the first case in the u.s. in more than a year. so the 73,000 plus birds are already in the process of getting destroyed. no birds that are affected will be entering the food system. roughly 30 farms within a six-mile radius are already under quarantine. e tyson saying based on the limited scope known to us at this time we don't expect disruptions to the i can whichen business and plan to meet our customer needs. tyson, like other poultry producers have ha tight biosecurity in place for years. south korea imposing a ban on u.s. poultry exports today. the country has been importing products amid its own worst ever bout of bird flu. in the u.s

. stay with us. >> morgan brennan -- >> hold on. here we go. stay with us. mylan is based in america but tax based overseas, 80% of its products in america but makes half its products out of the u.s. it may be a litmus test if we get a b.a.t., they will be impacted. we think it will be caterpillar tractors that will be -- no, no, no. the drug industry could be hurt. i imagine teams of attorneys and cpas are trying to figure out what might happen. >> border swruchlt tax, key part of its design is to eliminate the incentive for inversions. >> that's why i asked her -- >> getting rid of base erosions. >> would you come home? >> why merck keeps getting a higher and higher multiple. they've really been a star. they have been. >> can you a frazier bully? >> huge. life-saving drugs for everybody as another company did. no, he never promises on the real issues -- he can under promise on earnings and over delivery but never over promises on what his drugs can do to save people's lives. trying not to be sentimental about it. but my mom died from cancer. this guy had it. he he's the real deal.

"squawk on the street." i'm morgan brennan. home-building stocks building momentum after a monthly reading on builder sentiment jumped to the highest level in 12 years. d.r. horton, pultegroup, lennar and kb home gaining 1% or more, though starting to come off the morning highs right now. the spdr home-building etf and fhb up as builder confidence has strengthened on hopes that deregulation will cut construction costs. so, with that, i'll send it back over to carl and the gang to start "squawk alley." carl? >> morgan, thank you very much. good morning. it is 8:00 a.m. at yahoo headquarters in sunnyvale, california, 11:00 a.m. on wall street, and "squawk alley" is live. ♪ ♪ >>> good wednesday morning. welcome to "squawk alley." i'm carl quintanilla with sara eisen, jon fortt here at post 9. market treading water ahead of the fed decision this afternoon. our top story for this hour, the president is about to depart for michigan, where he will be meeting with auto ceos and union leaders to discuss his

birds was impacted by bird flu. morgan brennan joins us now. >> that's right. tyson is one of the worst performing stocks in the s&p today. that's after government officials confirmed over the weekend that a tennessee chicken farm supplying the poultry and pork producer tested positive for a strain of avian influenza that's lethal and contagious to birds. the first case of bird flu in over a year. the 73,000-plus flock of chickens is already being culled. no affected birds are entering the food system and roughly 30 farms in a six-mile radius are currently under quarantine. tyson saying it is responding aggressively to help contain the virus. it has tight biosecurity measures adding based on the limited scope known to us at this time we don't expect disruptions to business and plan to meet customers' needs. still, south korea imposing a ban on u.s. poultry exports today. that country has been importing american products amid its own worst ever bird flu outbreak. the u.s. has been little affected since 2015 when 50 million chickens and turkeys were destroyed in the worst ever outbr

a monster storm, snowstorm later today and tomorrow. how are businesses preparing for it? morgan brennan is here with that story. >> hey gang. people are preparing for it. businesses and people in the new york area ahead of the snow and within. we have consumers stockpiling with lines at grocery stores and gas stations today. you can see that in this video. thousands of flights have been cancelled. amtrak says it will operate modified service tomorrow with no acela trains running between boston and new york and limited express service to d.c. utilities have crews running around the clock. coned has additional contractors on stand by. the good news until now an unseasonably warm winter which means government has supply of salt and businesses haven't been impacted by lost sales. but this storm is coming late in the season. some of the traditional blizzard winners will take a hit. for example, home improvement. sales for the industry will fall 1.2 billion compared to the same week last year because consumers are not starting their spring planting this week. companies like home depot

morgan brennan has more on which transportation stocks might be affected most, morgan. >> hey, carl, that's right. so some sweeping changes to transportation proposed both on the ground and beyond. we'll start with the d.o.t. budget. 13% drop from 2017. no more subsidies for commercial air service to rural areas, cuts to amtrak's long distance service, which isn't a moneymaker but does account for the only amtrak service in half of those 46 states that it does serve. in response amtrak's ceo wick moorman, these trains connect our major regions, provide trial vpgs and revenue for northeast corridor and state supported services. one of the biggest changes, privatization of air traffic control, which has been shot down before, the concept transfer those faa duties to a nongovernmental organization. now, advocates say this would create an efficient system, mean better implementation of the massive multibillion dollar next gen tech overhaul. major passenger airlines could potentially get more power, more say in that process. satellite operators, rocket providers, potential losers, region

on the street." i'm morgan brennan. aerospace and defense stocks soaring again today. the ita aerospace etf is up after defense was big in trump's speech last night. >> i am sending congress a budget that rebuilds the military, eliminates the defense sequester, and calls for one of the largest increases in national defense spending in american history. >> the administration is asking for $54 billion hike for next year, above and beyond the spending caps, also another $30 billion for this year. now, companies that could benefit -- boeing, whose f/a-18 superhornet has been in consideration for a big order, according to trump, just recently. also, warship builders huntington ingalls and general dynamics with an expected build-out of the fleet and more armored vehicles as well as antidefense and armor systems from raytheon and lockheed martin. speaking of lockheed, the president praising the "fantastic fa-35" last night, touting the savings he helped bring about for those fighter jets. expect that pattern, top-line spending growth but a focus on costs. with that, carl quintanilla

regulatory fat. morgan brennan joins us with more on our special deregulation nation series. >> good morning. when you said is exactly right. so when you talk about regulations, defense highly regulated. that has been the case for decades. that's not necessarily going to change. so defense stocks have rallied post-election for two big reasons. promise of a massive military rebuild and the cutting of waste, which is key to more money flowing to actual acquisitions of hardware since there are budget caps in place and likely not going anywhere. now, pentagon waste is a huge topic right now. analysts point out that 20% of the dod's budget is overhead. there's been a lot of focus on lockheed martin's f-35 fighter jet. the ceo has said in the past that 35% of every modernization dollar is tied up in compliance. some analysts have argued the government could streamline elements of its buying process for some of these weapons systems to trim the costs. lastly, keep an eye on space. there's been a lot of debate about how much to governor the extra terrestrial economy. the obama administration

deregulation. morgan brennan joins us now from the swamps of new jersey. i take issue with that. what are we calling the swamps of new jersey? >> we're at a truck stop in central new jersey. there are a lot of folks here resting overnight. that's part of the regulations. trucking is in focus today with president trump meeting with ceos and drivers this afternoon to talk healthcare. the industry is the biggest employer in 29 states, including 3.5 million drivers hauling 10.5 billion tons of freight a year. this is highly regulated and there are a truckload of rules that carriers would like to see scrapped or tweaked. one example is the epa's emissions standards. >> we had four engine mandates since 2004. since that time my truck prices have doubled. so the industry has been in a very tough position the last few years from a profitability standpoint because our costs have been rising much faster than what our pricing has been able to rise. >> so parker and other truck executives would like to see the age requirement to move freight across state lines lowered from 21. they say that would help e

from washington to new england this morning. morgan brennan has more on some of the hardest hit areas so far. good morning. >> good morning, andrew. 70 million people are in the path of this mid-march more nor'easter. states of emergency declared by at least six governors from the tri-state area down to washington, d.c. public transportation in many areas have been suspended or scaled back dramatically. amtrak isn't running trains between boston and new york and only limited express service to d.c. thousands of flights have been canceled. fedex and u.p.s. warning some customers may experience service delays. norfolk southern has warned services may be backed. home depot saying it's seen the expected demand for winter supplies. also, generators were really popular last week. lowe's keeping a close eye on storm related inventory. both of these companies are moving into more of their march, sprint centric inventory. coned telling me it has additional contractors on stand by. moody's analytics saying it's highly unlikely this will impact gdp in a meaningful way, but it will likely d