twitter. it's crazy. 5,000 followers? >> day one. >> very disillusioned already. >> i'm disturbed by the fact that you're even on twitter. even though i wanteded y ee eed there. >> i thought could i tweet things like that. but i'm afraid to put things in writing. it stays forever. i was going to tweet a shot of my wiener and go out on the grill and have a beautiful ballpark frank. i'm not going to do that. i'm afraid to send that to 5300 people. they will retweet it and it will say kernen's wiener. it lasts forever. >> yesterday you know how i changed the tweet because i sent it out without the space in between? >> they yelled a t ed at me for. >> but the broken one is there forever, too. >> i did a radio show last night, you hugh hewitt, it's a

conservative show, and i got things back, hey, man, tweet from the heart, what is this? this is -- this is business. tweet from-of i don't know. the glow is gone. >> my guess is you'll get over. >> i follow all these people, but i'm not following them, i'm not looking through and reading it, so nobody is even reading me either. >> even though they love us or we like to think that they love the show -- >> 99% said this is grade, i've been watching you for years. 99% were really good. but we have to talk about -- eventually we will, we'll get to this story, but i don't like the way exxon is developing resources in this country. >> what? >> i don't want to give obama

any ideas, but why not seize exxon and nationalize them? >> do you think argentina will be a good model for us? >> it's a western country. i thought it was a democrat he can country. it's not a communist country. they want repsol. they may compensate spain's parent company. but don't you think exxon has done enough with the pillaging? think what that could do for the obama administration if we were to see -- just an idea. have you thought about it? why don't we, in your world, why isn't that something that we could do? >> as a free marketeer who believes in free enterprise -- >> me? >> no, i'm speaking from the heart as your twitter followers would say. you don't want that to be your model. >> i mean, it is a -- you have said how much you envy brazil

for their democratic system and that things are going well down there, their economy is going well, why can't we be more like them. i just thought that this might be the next accept. accept. you're absolutely sure -- >> i feel pretty confident it's not the next step. on the plane yesterday i was reading a fortune article about exxon and natural gas and they're doing interesting stuff. >> you don't think the government could do it better like everything else? >> no. >> i'm glad you're back. did you see how the othether ha lives? >> i was down in mexico. a lot of security everywhere. >> that was a fast trip. >> yeah, it was. i wasn't withere long enough. but it's tax day. >> i guess the whole colombia secret service thing was out of the question. did you have $47?

>> i know where you're going. never mind. it's tax day today. if you haven't gotten your returns in, here's your friendly reminder. you only have a few hours left. >> has everybody done it is this. >> oh, yeah. >> check's in? >> i get money back. >> e filed, everything? >> i'ved a some things going on where we got paid by someone in new york for -- >> oh, yeah, i don't know what that was. >> i got something for a glenn -- i did a quick thing for a glenn close show. >> i got residuals still. >> if you get one check from new york, you have to file. a pain. and then -- >> for like $43 or something. >> and then there was a trust when my mother passed. so i think i got it in time, but there was -- like romney, i'm not really -- but my main stuff has been -- >> i'm writing checks this morning. >> i wrote checks for next year for estimated taxes, but i

always overpay. >> you don't get back money? >> i wish i did. >> change your withholdings. >> i'm a 1099 filer for certain things. >> i pay extra every quarter to make sure i get money back. >> you're a huge 1%er. is it an a and.thing with you? >> no, there's a lot to it, but we don't need to talk about it on air. let let's talk earnings. >> we'll get johnson & johnson, goldman sachs and coca-cola before the bell. after the bell, ibm, intel and yahoo!. people will be watching closely after everything we've seen with apple. i think bob pisani put out something saying that with everybody selling apple, maybe her buying some of these other names that haven't performed at the same rate that apple shares have. >> and there is also the

economy. at 8:30, march housing starts. then coming up at 9:15, industrial production. >> and let's it talk tech news because this seems to be the crazy story of yesterday. keep your eyes on apple today. the stock dragging the nasdaq to a lower finish yesterday in its worst five day losing streak in porn three years. shares falling 8.8% during the last six sessions alone. now down 9.9% from its record intra day high. i want to say on april 10th, is that the day that there was an analyst who said this was going to 1,000? >> 1001. >> if apple is down today, it will have its worst six day losing streak since before the ipad was released. the last time the stock had so many bad days in a row, the iphone was still more expensive than shares of apple and of

course if you own the s&p, the s&p would have been up. >> things like this happen. >> but there was no warning. >> they don't ring a bell. when you try to hold apple and the people that have bought it down at 10, 15, 30, 100, 150, if you hold it, it took a lot of -- it's paid off to hold it and it's took a lot -- so it will constantly give you reasons to think, wow, i should have sold and then maybe it goes it new highs. but it shakes out the people with the weak hand, but then again always in the back of your mind, cisco. you get up to almost three quarters of -- it's $600 billion. you get up to where you're above half a trillion dollars and you don't even know who is gunning for you. you don't know what other company has great engineers that might come up with something that's better than an ipad. probably not. probably iphone stays dominant.

but everybody is trying to get a piece of this. apple got a piece of everybody else. so always somebody gunning for you. sooner or later, you'll have a pull back. >> over the last five days, journal points this out, they've most $50 billion in market cap. that's more than the entire market cap of hewlett-packard. >> but it gained the whole market cap of hewlett-packard in a month. how wrong have i been. i started at about 250 saying the law of large mums -- $250 is share and it's doubled from there. >> a lot of people who watch the show are apple shareholders. do you double down, do you get out, do you hold steady? >> if you are long term believer, it's 10% cheaper than it was. if you made a great profit, maybe you sell half your position. i think so depends on where you were in, what your entry level

was, your age, all those things. is 1,000 shares good or 500 better for issue when do he want me to call you, tomorrow morning or tomorrow afternoon? >> morning. >> morning is better for you? >> mornings are better for you. >> you don't need to talk to your wife about this decision, do you? who is wearing the pants some she'll just say do what you think is right, am i right? let's just move forward now. give me 10% of your confidence. let me earn the other 90%. is 1,000 shares good or 2,000 better for you? >> that's what they taught you to do? that was great. that was great. >> sociopath. >> let's talk about other news this morning. the trial between oracle and google getting under larry ellison will be taking

the stand today. google says oracle cannot copyright certain parts of java. the trial is expected tos last at least eight weeks and i think we'll see some fireworks from a man who really has a lot of zingers up his sleeve typically. you know there's no cameras in that court, but i wish there were. i was told no cameras. it would be good if there were. we should take it live. >> everyone agreed last week that google was evil. >> i wrote a column about that whole thing. and i got to the evil part, but only at the end. >> when you're going to do that, would you tweet you're going to do that? >> how with about about if i just call you? >> a federal judge is extending the deadline for the bp oil spill agreement. energy giant and lawyers for individuals and businesses who claim that they were harmed by

the 2010 spill will get more time to file details of their proposed settlements. details now due on wednesday. this coming friday as the two year anniversary of that accident. and a unit of toshiba plans to buy ibm's point of sale terminal business, price tag $850 million, that business focuses on cash registers and software it monitor inventory for retailers. toshiba wants to secure clients such as walmart and toys "r" us. and in washington, senate republicans blocked -- only two crossovers. pryor went against and snowe i think went for. so it was 51-45. that didn't stop them from -- it has to filibuster. that's why they said republicans would block it. legislation would put a 30% minimum tax on mill

millionaires. sorry, it was susan collins, one of those rinos in name. she voted for the tax hike and mark pryor, he voted against it. >> let's get to some global market headlines. spanish yields jumping at the auction that was held there earlier today. the country sold 3.2 bill gone euros of 12 and bills just above the target range of what they were expecting. yesterday spain's key ten year bond yield hit a five month high above 6% and yields higher than they had been a month ago for the 12 and 18 month bonds. more on that in a little bit. >> and japan says it will provide $60 billion in loans to the imf, the first noneuropean nation to commit money to boost the fund's financial fire power in an attempt to contain the eurozone debt crisis. tokyo's contribution will be formally announced at a g-20 financial leaders meeting later this week. and china's foreign correct idi

investment at a record pace. analysts saying this trend coupled with a difficult trade outlook will keep monetary base towards supporting the economy. >> what if he were to tweet right now sorkin told me he wanted to see zach's makeup. >> then we would be in a -- we would have to flame each other on the tweet because i would say that's not true and then you would -- >> should we do that? see, we're shy. this is what i don't like. this is what we would do on the air. >> yeah, but it's taken out of context when it's in print. when you watch it and you

>> some people. >> you might want to tweet this right before you say it even aloud. >> off after i do. india central bank is cutting interest rates came for the first time in three years. it was an unexpectedly sharp 50 basis point move. policymakers want to give a boost to a sagging economic growth situation in that country. central bank warned there is a limited scope for further rate cuts. will is something you would tweet. >> i would tweet it if it happened in breaking news. >> i've seen you, you keep it strictly business. >> i've done a couple of things and then i get flamed for doing it. one time i talked about how babies are like frat boys because they puke and then go back to drinking. and i got so much stuff on that. >> that's a good point.

all right. i think i'm following this lady. time for the global markets report. beccy meehan standing by in london. i'm following 130 people, are you a twit, a tweeter? >> i am. i'm a twit as are you. you better have been following me otherwise i'm going to be personally offended. so followle me in the next two minutes. >> have you tweeted today? >> i tweeted like every 30 second of my life, so, yeah, would i have tweeted very recently. >> you have to teach me how to do it. and what is worthwhile tweeting, what have i done that's worth while tweeting today? don't answer that. anyway, your report. >> what did you have for breakfast, you know, how many cups of coffee have you had so par. that kind of thing. >> okay. got my gas taking filled. it was almost $50. >> that's not bad.

you have a low gas tank. >> you have to put some business in there otherwise nobody whether want to follow you for more than about a day. >> can people defollow you? >> yes. >> oh, my god. if that starts happening, that's all i need is rejection. i didn't even ask for this. anyway, sorry, bec. >> when you check back and they have like ten fewer than you had ten minutes ago. but follow me by the time i finished the global market report, otherwise big trouble coming through to you there. but we are looking at the markets today, you can follow me on twitter and get more updates. we've been talking a lot about the breaking news in the past couple of hours. it's had a big impact on the green that you can see on the wall behind me. so yesterday we were talking about modest gains for european equity markets after four tough weeks on this side of the world. today we're seeing another day of gains. in fact almost 1% higher overall

for this region. if you look at the individual markets, you can see exactly what's going on for the ftse for instance which is up by 0.8%. so strong day back above the 5700 level. germ any gaany gains of over 1%. possible clouds on the horizon. and one dark spot is shares of burberry, down in the uk by 5.3%. burberry in the luxury goods sector has been doing well for emerging markets and also had growth in north america, but the rate of growth has slowed and that's had a negative impact on the stock today. 1.5% higher for the cac. and i want to briefly mention the ibex which is up after the successful spanish bond auction. yields much sharper on the 12 and 18 month t-bills than the last time around, but it was a

well bid auction and in fact it sent the yield on the spanish debt a little bit lower today. but the other big story across in spain is repsol. you've been talking about this already. extensively on the show. this is the impact on the spanish quitequity markets. down by some 6.7% after argentina announced plans to take rocontrol of that business. back to you. >> i'm not following her, but this is the great thing. people like all those guys this there, all these guys, they have my password. so they're controlling this. which gives me also plausible -- >> someone else has your password? will. >> yeah, plausible deny ability. so i can say that wasn't me. >> unless they figure out which ip address it came from about. >> but i like someone having my password, then i can always

blame -- >> everyone has your password here except for me? >> someone else at home could -- >> i won't tell them here. but i'm going to start following beccy. i'm going to follow beccy meehan and i'll go international now. i'll see if i can't get some -- so you can retweet me over there. >> we'll have more on that in a hint because if you want to follow us, we have our twitter handles for you. when we come back, kevin ferry is standing by. if you have can question about anything you see here, we're asking you to tweet us @squawkcnbc. that's the shows. and andrew is andrew r sorkin, i'm becky quick cnbc. joe is joe squawk. auto-bliss.

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scott williams is joining us from the weather channel and he has today's national weather forecast. what can we expect? >> well, yesterday it was a scorcher across the northeast and new england. look at the actual high temperatures here yesterday. hartford, 89. it was 91 if albany, 88 new york city and 89 in philadelphia on

yesterday. current temperatures right now, central park, it's 71 degrees. we're looking at upper 50s around the boston area. 70 degrees currently in washington, d.c. there's also a red flag warning in effect for the the new york city area, boston as well as philadelphia. we'll find dry conditions, low relative humidity values. temperature-wi temperature-wise, 6 temperature pretty comfortable, not as high as yesterday. high temperatures in new york city right around 75 degrees for you. 76 in boston by 5:00. so a bit of a cool down today across the northeast and new england. toward the southeast, we'll watch scattered showers and thunderstorms along the gulf coast. toward new orleans, could cause

some delays. otherwise fairly quiet, new york city as far as are conditions in chicago, no major air travel problems expected. joe, back to you. >> all right, scott, thank you. how it to the trading day ahead. kevin ferry engines joins us fr cme. i guess that's club med country, spain and italy. what's happening today, anything new with the credit default swaps or the ten year? >> i think the point i was going to look at this morning was nothing really aggressive or policy wise was achieved or propped, yet the market was able to place some debt and move a little bit more in a positive direction. so i think what you're really seeing is this ebbing and blowing of a game playing out over will. and it's not going to go away for some sometime. so a little bit more positive

came, but they exacted the toll last week 60, 80 basis points higher to get bills off in spain. >> i really have a hard time trying to forecast how serious things get because greece was bad enough, sort of the second greece we went through three or four months ago. they had to deal with that. spain and italy are not greece. and we've had smart hedge fund guys on and pe guys say that i think europe will stay basically like it is. not great, not horrible for the next two year, but it won't derail the global economy, it won't derail the u.s. economy, but then here we are again with spain, about it got really bad, if it got 7% over there and if they couldn't get these auctions off and you're starting to hear people say that the euro can't survive, they need to devalue because it's never going to work with austerity.

is that possible that faber or soros is correct? >> two length wigendary guys. but staying the same is not an option. right now they're getting away with that. twice last week, the rate collapsed below or at the japanese two year yield. so i think the united states and germany have a short term positive advantage over these other countries while this is going on. but over the medium term, they can't stay the same. so the objective is somehow on get the government debt you can the sovereign debt, off of the banks balance sheets in exchange for cash and then you've at least separated the two issues.

>> they used the ltro to buy sovereign ket. >> to a certain extent they do. and that's exactly why you continue to have the rolling forest fire over there. you have to separate the two issues. whether between bank capital and the sovereign situation. and right now, they're grotesquely intertwined. so i think you'll have these kind of rolling forest fires go through the market. and bond vinlg plan dayities are alive and well over there. >> you said that with notice panache whatsoever. >> joe makes fun of the way i say it. >> did i get wrong? >> vigilante. >> i'm the one who is wrong. >> one sounds fancier. >> you say it with your pinky in

the air. >> yeah. >> so i'd like to say that this will go away, we could get back to more important economic issues, but it seems that this will be with us for a long time. >> all right. you don't tweet, do you? >> oh, happy birthday, by the way. >> oh, yeah, cnbc. >> do you tweet? >> no, but my dog does. >> what? that's you. >> yes, i tweet. ? oh, it's under your dog's name. that's an idea. i've got three dogs. all right. thanks, kevin. >> plausible d deny ability. >> that's right. that's what weiner said, that's not me. >> maybe if you put your dog on the roof and then tweet. >> i saw that yesterday. the dos lovg loved being on the.

and even had a reason for getting the hershey squirtses. he had eaten turkey off the counter and got sick from it. dogs do love -- >> do viewers know what we're talking about at all? >> yeah, they do, if they've seen collins' columns. >> they said they loved -- the dog loved being up there will. . >> when my dog rides in the head, her head is out the window totally. and they gave it the choice, do we put it in a couple or does it come up to maine with us. >> soundeded like something that my family would accidentally do. >> you can distort whatever you want, you know, if you want to. i think the potential for seizing --

>> this will undermine romney's character, so keep bringing it up and we will reelect obama. >> coming up, we'll and you can t talk to the man who runs ifg fiy bond pund manager and today he's helping us what's -- excuse me. i was cloakchoking on my own wo. this is a very important day this history. april 17th, 1989, cnbc went live. so happy birthday. i don't know if we want to sing. you seem excited, but not excited enough to sing. theres. now take a look at yesterday's winners and losers. ♪

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among our top story, spanish yields jumping at auction. joining us from london is fidelity's head of international bond portfolio management and he helps to manage $248 billion in assets. jamie, good morning. thanks for joining us. >> good morning. happy berth dirthday. >> thank you very much. we are celebrating a bit around here. we looked at what happened with the spanish bonds, and the auction of 12 and 18 month treasuri treasuries, yield up significantly over a month ago, but well subscribed. so how would you rate this auction. >> t-bill yields are a lot lower than where her back last year, but i would extend to look more to thursday's auction in the bond market. bache in mind degrees is still -- i would look at the

bond market so thursday for a much bigger test. >> would you recommend that people buy spanish t-bills? >> i think that you can find other assets around the world yielding 2.5%, 3%. typically corporate bonds which i'd rather buy first of all. >> how much of a risk are we in? we know europes props are not cleaned up, but how do you put he's hinge this is perspective? >> i would say over the last three years we're going through cycles of rescue and reality. over the last foyer months, we had quite strong risk on market after the rescue. now that we've come into q2, we're back to reality. so i think we should be quite concerned about the eurozone periphery. we should be cautious.

and i think all eyes should really be on the ecb to see what they do next to try to aleve kuwait the situati alleviate the situation. >> is austerity the right move? spain's plans are more severe than anywhere else we've seen. the idea of taking down the debt to better than 8% of gdp to 5.3% i believe in one year is a massive move. is that the right step? >> it is a massive move. i would say that will are no easy choices. all the choices here are tough. and here in the uk, as you can see, they've had to discuss how much austerity to low at the economy just to get the fiscal accounts back in order. so no easy choices in here. clearly if spain were to persist with an annual budget deficit of more than 8%, then it will get locked out of bond markets.

>> so tell us about a few more opportunities that you like. >> we prefer corporate bonds to government bonds. i think there will be more it opportunities in corporates later this year. governments are the ones going new the real crisis right now. and many corporate sectors, whether in europe or the u.s., went through a lot of their painful period in 2002. so first of all, we prefer corporates to governments. second of all, you have to look at country risk very carefully. so we're spending a lot of time with sovereign analysts visiting countries, yidistinguishing between one countries. germany, scandinavia, switzerland, parts of asia, australia, canada, where we're happy in the international space and you have to look at country risk very carefully. >> jamie, thank you very much. still ahead, he cut 2,000

jobs last week. i can't should y yahoo! ceo are promised to talk more about the company today and since then, plenty of rumors. now comes a test for the markets. we'll have the inside line on yahoo! straight ahead. tomorrow on squawk wogs, our guest host will be former hchl b chairman and ceo carly fiorina. we'll hit the rails with michael ward. and the squawk master of the markets becoming more cautious on europe. goldman sachs asset management chair than jim o'neill will join us. [ dog barks ] appears buster's been busy. [ man ] yeah, scott. i was just about to use... that's a bunch of ground-up paper, lad! scotts ez seed uses the finest seed, fertilizer, and natural mulch that absorbs and holds water better than paper can. looking good, lad! thanks, scott. ez seed really works. so, how come haggis is so well behaved?

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yahoo! due report its first quarterly results after the bell today. this about a week after the struggling internet company ceo announced a big reorganization plan. larry haverty joining us now, closed he saend funded owned sh. let's talk about what you need to hear to stay with the stock. >> the key thing is what's going on with the off balance sheet assets. the strategy to monetize yahoo! japan more importantly what's happening in ali baba. yahoo! bought ali baba about eight years ago, their share for about a billion and a half dollars. probably worth somewhere gross we estimate between $12 billion and $15 billion. and it's very secretive and growing like a weed.

it has a huge share of internet commerce in china. and we need to know how we're either going to be able to value that ownership on an objective basis or have some way to monetize it. and i don't think, andrew, the issue is really that you need to sell the asset. i think it's that you need to tell u.s. investors what it's worth and what its potential is and how the company is working together maximize value for all the constituent. >> if you take alley bai baba o table, is there a chance to turn it back into a growth company, do you see a place for this company? and i'm curious, do you look at this as something that ends up getting sold in the next year or two? what is the play for you some the stock is trading at about 14.78. what should it be trading at ultimately? >> i think the assets a break up basis tax adjusted are worth slightly over $20 right now.

>> but that's on a break up basis. >> on a break up basis. and i think that actually and i have for some time that the best course for the directors is to sell the kcompany. turnarounds have not happened. that said, i don't think doing a turnaround is an hhi impossibil is really the best situation. i think the assets can be turned around. internet advertising is the fastest growing category of advertising. it's essentially an aloe gop pli. five companies control 08% of the cash flow of the market. i can't new is one of those five companies. it has critical mass in terms of brand. >> but in continues to lose sha to google and everywhere else. >> that's correct and that's why

i think the best mode is have it be bought. principal buyer is clearly microsoft. >> are you a proponent to back dan lobe and his slate of directors as he's mounting a proxy fight against the company? >> we have a committee that makes that decision. i'm not a part of that committee. if you look at what mr. lobe has been saying, and what i've been saying, they're pretty coincident. so i would back mr. lobe and ild tell our people that that is my input, but i don't make that decision myself. >> larry, if there is no break up of the company over let's say the next 12 months, is this a stock you stick with? >> i think so. we're value investors and we've got a situation here even without competition where the asset value is far more than the stock price. china and the internet, 30 million people a year joining the internet. ali baba will do nothing but get

more valuable over time. so this is a keeper. it's been frustrating, though, and i think there are easier ways to make a living. >> appreciate it. we'll keep an eye on that number. >> when we come back, the newspaper headlines that have us squawking this morning. and then if it's tuesday, it must be time for trump. the donald is ready to dial in at 7:30 eastern. don't miss him. plus we have a wall street legend today, ace greenberg stopping by the set to talk financials and much more. that's all coming up at 8:00. between black and white answers... ...and 1,000 shades of grey duff & phelps finds the sweet spot that powers sound decisions. duff & phelps financial advisory and investment banking services. ♪

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same music, same lame shot. science time -- the one redeem being quality of the "new york times." and andrew's column. >> thank you, becky. >> it's a hard road for those who want to be vegans. it hard enough just to eat protein and no carbs, to do that, but to eat nothing with a face and nothing that was even pulled out of the ground in a violent way, like you need to gently remove the cabbage or the carrot.

you want it all free range. you want to caress the vegetable as you remove it. >> i thought the vegans are getting fat. >> no, this is another story. if i exercise, do you eat more or less? >> if you exercise, you eat more. >> no, that's not true. in fact, they thought it was hormonal, that maybe you'd either want to eat more or eat less. instead they hooked up wires on an mri to people that either exercise for an hour or sat there on their asses for an hour not doing anything. am i allowed to do that? then they measured brain centers that control food lust. then they show them hamburgers

and none of those areas fired after you exercised. >> it depends if it's a habit. >> right after you exercise you don't want to go for the big burger because you felt like you exercised. >> and they studied the parts of the brains responsible for food lust -- >> i was told if you exercised, the next hour is free, can you eat what you want. >> you probably don't want to eat something that's really greasy and fattening. you probably want to keep it -- but the people that just laid there for an hour, they would see these things and be hike ho -- like homer simpson. purple filled donuts. >> i love donuts. you know that. >> where were you going? >> i was going to talk about two things. >> becky is next.

>> pulitzer prize. the "new york times" won two but twoline sites, huffington post and politico gets one. >> and they didn't give one for editorial writing. >> nobody won. it's fascinating. you just write off these prizes. >> i do to some extent. i think they're very political, as epitomized by the nobel peace prize, jimmy carter, al good morning, yasser arafat, barack obama. they're political statements. they gave jimmy carter one the same year w. was trying to -- as an in your face to george bush. >> anyway, arianne huffington is going to be strutting around for a long time. although snl skits where they

say she's scaping all these other sites. >> does someone play her? >> you haven't seen it? we'll set that up. it's pretty funny stuff. >> do either of you guys have a land line in your house? >> yes. >> i have one, too. >> yes, have i one, too. through cable. >> there are moves in different states where they're no longer going to require phone companies to maintain land lines. indiana and wisconsin are the two that just did it. something like 15 states in all are considering doing this, which means you're not going to be able to necessarily get -- right now the telephone company is required to provide a land line to you if you want it but state laws can change it. two states have done, it 15 are considering doing it where they no longer have to provide it to you. the phone company doesn't make

money off this. they don't even have to maintain it. if the line is gone, it's gone. a third of all households are wireless anyway. the aarp and others are fighting this because for senior citizens it a little more difficult. >> if electricity goes out, cable is not there to save you. there are batteries that last for about eight hours. >> what happens if the cell network goes down. >> and they do go down. if you could get a perfectly clear network that never dropped calls -- >> mine drops calls all the time. >> you've mentioned that. >> yes. >> interesting stuff. coming up, we're going to queue the band. we're going to hear from coke, johnson & johnson. but first, the space shuttle is set to take off for one last mission, riding piggy back,

headed for permanent display at the smithsonian hangar outside of washington, d.c.

coca-cola, johnson & johnson and goldman sachs set to report quarterly results. plus apple brews. we'll tell what you it means for your money. >> it's trump tuesday. donald trump talks politics, business and the sweet smell of success. >> plus, former presidential candidate tim pawlenty sounds

off on the race for the white house as the second hour of "squawk box" begins right now. good morning, everybody. welcome back to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. the oracle ceo larry ellison is set to take the stand this morning in his company's suit against google. he claims google's android system violates the java language. and the buffett rule failed to get the 60 votes it needed to proceed with a vote. and average gas loon prices fell by 1.7 cents a gallon this past week to just above 3.92. prices falling for the second week in a row. the energy department said it's the biggest drop in its weekly

reading in four months. >> and we go to madrid this morning. julia. >> stage one in this week's auction process complete. it was a solid auction result. it was short-term debt. they managed to get away 3 million euro. the 18-month yield came in at 3.1%, compared to 1.7% at the last auction, the 12-month at 2 opinion 6% compared to 1.4% at the last auction. it was in line with where the secondary market was trade bugs it cost them to get those bills away. the key focus will will be on thursday where we have a two-year and ten year. ten years are 5 or 6 basis points tighter after the auction result, which that positive sentiment fed into the spanish market, bank stocks up between

1% and 2%. the banks took down 3 billion euros liquidity in march. the spanish banks hold and 230 billion worth of sovereign debt. it tough to see where the incremental demand is going to come from. the spread widening has created a lot of questions about whether the ecb will look at increasing or restarting the asset purchase program. we don't have widespread risk aversion. the funding conditions in europe have improved since the three-year loans to the ecb so obviously the benchmark here is much higher. spain are going to have to keep plodding along with deficit reduction and we'll wait for thursday's auctions. back to you. >> thank you so much. >> and it a big week. we'll hear from goldman sachs

and johnson & johnson and coca-cola. yahoo! intel and ibm coming after the bell today. apple, that stock has been down five straight sessions. some say it's the start of an apple selloff. here to discuss both sectors, dick bove. we're going to get morgue and stanley later this week. you're bullish on this bank. i don't want to say i'm surprised but given all the things we've been talking about over the past couple months with but where the banking business is going, i'm curious why. >> well, basically it's been a very good quarter for fixed income. in other words, we've seen corporate treasures do what they usually do which is lock in the finance for the rest of the year with the expectation probably interest rates will go up this year, despite what the fed said.

plus you have the situation in europe where most corporations tend to borrow from banks and europe and they can't do so right now. they have to go into the capital markets. what you're going to see are very, very strong results in fixed income underwriting and fixed income trading. because the markets have been so strong for the fourth quarter of last year and first quarter of this years, you'll see equity writing pick up. goldman sachs should have very, very good numbers today, morgan stanley should have good numbers later this week and i think it's going to be a very good year for both companies. >> what about the big supermarkets, bank of america and citi. >> the traditional banking part of the company not as well. we're still dealing with problems in the mortgage area, definitely for bank of america. but i think that, you know, we've had ten quarters in a row now in which earnings for the

banking industry have been up year over year. this quarter should be the 11th in a row and i think this quarter will be the second highest in the history of the banking industry in terms of profits. so bank of america is def thitly going to benefit by the trends in the industry. loans are up, deposits are up, margins are stable, costs are going down. everything's going right right now for banking. >> pat, let's switch gears to tech for a second. we have yahoo! later today, intel. your expectations? >> basically from a yahoo! standpoint, these guys are a company in crisis. i believe they'll meet the lower expectations but as i talk to clients institutional investors, what these guys want to know is what is their mission? what are they going to win at in the marketplace? that's the big question with

yahoo!. >> i'm curious, broader perspective we just talked about a potential apple selloff. you think about the impact of apple, of tech on the market now, what are you telling your clients? >> well, apple is clearly the bellwether as it relates to devices and consumer services but apple has had an amazing run-up so far. investors need to realize there is space forothers to come into the marketplace but the biggest challenge for the competitors to apple is putting their full weight in the game. just as apple is dominating the consumer, most are leaving the consumer market or focusing on enterprise. >> if you really want to take a look though, what's been driving the nasdaq and so many of the tech stocks has been what's happened with apple. it has such a large percentage of those indexes.

is there a chance if they come in with numbers at least as good, if not better, than expectations, does that reverse that mentality? >> i think it does. if apple scores well, it going to bode well for the rest of high tech. >> but it's almost -- i struggle with that because it's almost a reverse strange logic. if apple does well, it's taking market share from somewhere else. if apple doesn't do well, the others could come pup what's the good news, what's the bad news? >> it's more of an emotional reaction. people look at apple and quite frankly at tech leader intel as a bellwether. when they see them doing well, they see consumer spending going well, nt prize doing well. it's all one package. >> when you think about the markets broadly and the run-up

or pullback that we now seem to have, do you say to injuries we're still out over our skis, do you say broadly the economy is better than we think it is? where are you? >>. >> i'm very bullish. if you took a look at the kbhi in 2011, saw in the first, second and third, fourth quarters, each quarter showed better growth than the prior quarter. everybody indicated at the middle of last year we were going into a double-dip recession. no one indicated you could have the second quarter be first, the third be better than the second, the fourth be better than the third. i think what we're looking at is an economy in which the consumer is coming back, the commercial sector is clearly come being back and the banking industry, commercial loans are up 15% year over year. that's five times better than normal. so within banks we're seeing clearly a resurgence in the economy. >> dick, before you go, we have ace greenberg coming up at 8:00. if you had a question for him,

what would it be? >> oh, my gosh. ewouldn't have a question for him. >> we'll have him do imagine being tricks instead. >> thanks so much. >> coming up at 7:30 eastern, donald trump. he'll talk business and politics. "squawk box" coming right back. >> he's conquered road rage. >> what are you doing? >> he's a master on the golf course. >> it's in the hole. it's unbelievable! i can't believe it! >> and now joe kernen is taking on twitter. >> one giant tweet for mankind. @joesquawk is his handle. the numbers... ...and listening to your instinct duff & phelps finds

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welcome back, everybody. take a look at the futures. they're up almost 50 points for the dow. the nasdaq did see a decline yesterday. today it is seeing green arrows as well. joe? >> it is america's least favorite day of the year, tax filing day. it's good to get it off your chest. in an election year, it means taking an extra look at tax plans on both sides of the

aisle. joining us foreign minnesota governor tim pawlenty, a campaign surrogate for mitt romney. that's one way to get into a discussion on taxes, i guess, governor. did you have to file an extension? >> no, i got mine in on time but it certainly was a fair a work and i know it's a day most americans just demoan but it's got to be done. but we need to have a brighter future. that's why i support mitt romney, 20% marginal encome tax rate cuts, tax reform more broadly, no tax on income for -- dividends, for capital gains. >> the president released his returns and one side said, wow, he's not affected by the buffett rule. the clear intent was to show he

paid a much higher rate -- below his secretary interesting enough. but he released the last 12 years. mitt romney has not. they're trying to contrast that. do you think governor romney ought to release more than the last couple years? i don't think he's going to. >> i don't think he should be held to a different standard than presidential candidates have been held to in modern history. he's released the most in volume of any of the candidates, released his tax records for the last few years. he will for this one after it's completed. he's got an extension, it's an extensive return. the idea he should release 23 years of tax returns when nobody has done that is yet another gimmick by president gimmick. it's like the buffett rule. instead of focusing on the real issues and get off the obama economy, he keeps dangling these shiny objects in front of the american people that don't mean much and to try to hold mitt

romney to a standard of 23 years of releasing tax returns when nobody else has done that, give me a break. he should be focused on the real issue. >> do you think the romney campaign could ever score points with, you know what, governor romney was really successful, he's really good at fixing things, he's really good at buying undervalued businesses and fixing them, he made a lot of money, he's been very, very successful and that's how he's going to run the country. and contrast that to we don't like this guy because we're envious of him because he's made a lot of money. that has never worked in past elections. do you think it will work for the other side to take that tact? >> i think class warfare doesn't work. the president of the united states should be above that and instead of trying to have people fight over a slice of a

shrinking pie for a pie that stays the same, he should be leading the charge with optimism and hope and confidence about growing the pie. he can't do that. he's never been in the private sector, he doesn't respect it, he doesn't understand it and u he uses it as a red herring. i agree with your -- mitt romney's strength -- >> no, but can the campaign get comfortable? the campaign, in my view, has been a little bit shy about that. i wouldn't say that they're ashamed of it but i think that they're affected by what they hear from the other side. i would say say it loud and say it proud. and i don't know. you're on the campaign. other times i've said things to to you try and give him some tips. not to try and help him but just i'm watching an an objective observer and saying they're

screwing this um on the way they're doing it. >> he just got through a very difficult republican nomination process. i think you'll see the campaign gain momentum. mitt has said i'm not going to apologize for my success. he's said that. we celebrate success in america. we want people to be successful. the idea that the president of the united states demonizes success, demonizes successful people and uses it as a political wedge is incredibly disappointing. it says a lot about barack obama the president and it also says a lo about barack obama the person. >> governor, we have seen some more details of mitt romney's tax proposals. he was a little more forthcoming ort day with what he said behind closed doors saying he would get rid of second home mortgage deductions for wealthy individual and he'd be willing

to make more cuts there. is that something you peel fooel comfortable with, too? >> he was describing without final details ideas about further tax reform. he supports moving towards the flatter, simpler tax system where the rate reductions would justify some reductions in certain exemptions, credits or other deductions. >> it could mean wealther in people are paying more in taxes, though. >> it depends with what you do with the rates overall. if you drop the rates low enough so overall the tax plan is ref nuch neutral or perhaps a tax cut, that's not necessarily true if the rate are low enough. >> we had a bipartisan guest yesterday who suggested dropping the rate to 25% and getting rid of all kind of things and bringing up dividends and capital gains close to 25%.

>> governor romney has a different proposal than what you're history skrooiing from mr. walk are. we can all agree a flatter, simpler tax with fewer exemptions, credits and deductions would be a pro growth, pro simplicity, pro productive -- >> let me ask you quickly. we talk how these would be revenue neutral. doesn't mean everybody will be paying the same taxes temperature are you okay with wealther in americans picking up a bigger share of that? >> i don't think you're ever going to have a tax reform where everybody has the exact same effect because the system is too big and we have too many people. but if you move directionally the way i just described ament ago, i think that's the proper direction. the exchange for getting rid of

reductions is having the thing at least be revenue neutral. >> governor romney has talked a lot about cutting taxes. what we haven't heard a lot about is specific plans to cut entitlements. he's talked broadly about that. strategically, politically, how far should he go in terms of really describing where he wants to cut? there was some speculation about and some comments that he made directed at the department of education just two days ago. we had donald trump coming on in a couple of minutes. he gave paul ryan last week a hard time -- was it last week or the week before -- for his medicare plan saying ultimately that's not good politics because the second you start talking about these things in detail, you start scaring the voter. >> part of the responsibility of leadership is to educate, to raise awareness, inspire, to mobilize. that means you have to take some risk. mitt romney has put out a fairly detailed proposal in reform.

he's got a premium support model for medicare that keeps medicare in tact but offers other alternatives, he's talked about social security. that stands in direct contrast to the president of the united states. he hasn't said squatski about what he would do with entitlement reform. we shouldn't have to play come out come out wherever you are with the president of the united states on one of the most pressing issues of our time. heaps leader of our country and will not come out and propose entitlement reform. it's abysmal. mitt romney has put a proposal on the table opinion. >> would you accept the argument that even though he plans to cut rates and has talked about some entitlement cuts, that the budget ultimately sill doesn't balance and we're gill going to have to hear about more cut, which we have not heard about to make the numbers -- >> if you look at a pie chart,

this part blue, medicare, medicaid, social security, national debt, that blue point would be at the halfway rate and most of the rest is defense. there are other important issues but entitlement reform is critical. governor romney has a very specific approach pose al on the table to do that, anotherth president doesn't. another failure of leadershipnd this president. >> governor, thank you. appreciate your time today. >> larry will be talking with governor romney tonight at 7:00 p.m. eastern time. >> coming up, earnings are in full effect this morning. the numbers and instant market reaction when squawk returns. time noum for today's aflac trivia question. on this day in 1998, what song

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we have goldman there. you can see the bid and the ask. remember when it was below 100? i think it was last quarter. was it the greg smith -- i don't remember. 117 now, 3.92 the company is reporting for the first quarter, 3.55 is the expectation. revenue just shy of $10 billion. net revenues and investment banking, 1.15 billion dollars for investment banking. that is 9% lower than the previous year. the ratio, you love your compensation ratio. >> i was just looking there. that's also down 9%. >> 44%. >> the company points out it is still number one world wide on announced mergers and acquisitions year to date.

but because client activity remains relatively low in certain areas, they think the mix of businesses gives the firm significant room for revenue growth as economic and market continues to -- >> many analysts suggest you'll see more activity, more activity and the margin gets there. a lot of people focused on fixed income. it's 20% lower than 2011 but higher than the fourth quarter we saw. people are going to keep an eye on that. dick bove was talking about that earlier. >> equity was also down, right? the net revenues and fixedin come. there as a lot of down things. 20% lower, fix income commodities. client execution is down. but the bottom line number is

above. >> we talk about effective income tax rates and who pays what, they paid 33.7%, the effective income rate from the third quarter. >> if you have any comments for questions about anything you see here on "squawk box," you can e-mail us. and still to come, more earnings on para ahead. >> it's trump tuesday. entrepreneur donald trump talks business and the economy. never one to mince word and alwayson point. trump on tuesday always on "squawk box." zap technology.

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on this day in 1998, what song by savage garden reached number one on the billboard hot 100 list? "truly deeply madly." >> aflac! >> we're back with goldman's

numbers that just came through. we'll give you coke's in a second. on goldman sachs 3.92. they did beat, 3.55 was the expectations. stock trading down a little bit. they also beat revenue. as becky mentioned earlier, i don't know if it was becky or joe on comp it's 4.38 billion for q1, a 16% decline. >> it's down to 44%. >> that is an interesting number. they've been repurchasing shares, as you know, and they've been doing it for about $110 a share. it's actually looking look a decent deal. >> coke is a non-gap number. 89 cents. the estimate was 87 cents. you have to look at volume growth. >> in the pacific it was up 8%.

>> thirsty. >> they say anything about rising commodity costs? >> in china it was up 9%. i'm still going through the release. >> the revenue number, 11.14 billion dollars. 11.14. and the estimate was 10.82. soap that's above as well. and, let's see net share of purchases in line with what they expected, $845 million and coca-cola, which finally if we look at a ten-year chart final sli kind of overcoming that growth stock bubble of the late 90s that had coke trading at 50 times earnings and it's finally -- warren is finally happy about his cherry coke and everything else. the ten-year charts finally breaking out to some all-time highs. remember back -- you can see it coming down from 70 back at the

turn of the -- with we went from '99 to 2000. it was a 50 times earnings company. so earnings has continued to go up every year and it's just now the multiple is so much lower, the tock price is getting back to where it was return. >> it's a boat load, biggest holding. >> one out of every 12 connection they get the money back on something. >> it is also tax day for americans and it's tuesday. you know what that means here on squawk. it is trump tuesday. donald trump joins us this morning on the squawk newsline. since the tax day, do you want to start off talking about taxes? >> well, nobody is thrilled. nobody's exactly happy about it but it is tax day nevertheless. >> i'm glad it's gone. i'm with joe on this one. we have a whole other year before you have to look at it again. >> 50% of the people don't have

to pay any tax. we don't have to worry about it. >> we go back and forth all the time, do payroll taxes count toward it? >> to an extent. not like at the should. a lot percent of the people aren't paying tax. i guess they're happy. >> if 10% pay 70%, is it unfair if 10% pay 70%, donned? >> it could be fair. >> you're talking fairness from other side. >> yeah. i mean, look, if 10% are doing well and creating lots of jobs and they're pacing taxes, that's good. if they have to pay a certain amount of tax, that's fine. but a lot of people just aren't paying tax and i'm not sure a lot of people like that. >> let's throw this idea by you. david walker was here yesterday. we've been talking to a lot of people about this idea he had where he would broaden the tax base. he thinks more people have to be paying in it but talked about

lowering rates to 25% for individual and corporations and but does that by getting a lot of -- >> health care. >> you health care. you probably have to tackle the health care pee ducks you get for providing health care there's a question of whether you'd have to go to a system about with your 401(k)s. >> you have a lot of loopholes out there but at the same time. like as an example, taking away the interest deduction. that's just what the housing market needs right now is another hit. becky just give it one more nice big hit like that, that will be wonderful for the housing industry. you have to get the housing have industry going. to do it right now, i think it would be pretty catastrophic for the housing industry. >> that's my question is i agree

with you a hundred percent it's a terrible time for housing to take on another hit like that but if you really want to get to a flatter, fairer tax rate or an easier thing to figure out, you have to tackle some of those big deductions. that's one of three biggies that contribute no of the monetary stimulus and monetary gains from the tax deductions. >> you really have to say -- okay, we're going to have a gain. but then you say how much damage will it do? are we going to pick up $500 billion but have a 2d trillion damage to the economy and the market? that's what you have to look at. it's one thing about the interest deduction, then they talk on second homes and third homes and all of thatthat's obviously a different party money but right now housing is so weak, to hit it at this moment i don't think would be

sound policy. >> alan sloan looks at the tax returns of romney and obama and interestingly heap calls the obama tax return a political document. he says the way it's constructed and the deductions he's taking, the relatively few are done for political reasons. he said he's surprised romney has taken the deduction he's did. have you not released your tax forms ofrts years but you have thought about political office. do you think about any of this when you're actually putting your tax returns together in. >> i think it's in your mind. if you're think about running, if you're contemplating running, i think you probably do things that may be a little different, including contributions, what you're giving to, who you're paying to. i looked at president obama's return and he didn't pay that

high of a rate. >> actually 20. 5/%. he give a lot tho charity, which is a positive and biden gave almost nothing to charity, which is a little bit surprising. >> is it? maybe you're right about that. i think i follow you now, you know, the big thing yesterday is i'm tweeting. how many twitter followers do you have now? >> it's getting close to 1.5 million. >> did you follow me yesterday? >> i will start. >> what do i got to do? >> joe, i've just been hearing about it. it going to be major deal. will you have a lot of followers, including me. >> i'm shy to say anything. i got to watch what you do. you are know for shyness and reticence. i'm not sure when to tweet or when not to. but it at joe squawk.

is there some way to tell your followers to follow me? >> i will do it. as soon as i get to the office. >> wait a second, i want to ride that bandwagon. >> becky can to the put your cologne on, which i'm doing right now. donald, here's the quid pro quo. >> i know joe wants something. >> let me slash this all over my body here. >> you have success here. >> i have success. >> there he is. he's doing it. >> it's at macy's, which has a great leader er ier in terry l that we all know. >> those are my twitters socks. donald, this does smell pretty good. >> it's a little strong in here because he used a lot of it. >> he's using a lot.

>> he needs a lot. >> it goes on sale tomorrow at macy's. that's why we were giving it a little sprit here. zip think you smell like money. >> why don't you put it on your wrist. >> that's how my wife does it.

do you ever walk into the store they put it on your wrist. >> put it on your crotch and smell it, would you? be a man about it. >> donald, how would you be sbra spraiing it right now? i. >> i just put it on my neck. the neck and behind the ears. do you spray it or do you -- i sfla it. i like the spray. i spray it. amazing. >> do i need tips. i say things on air but i'm afraid to put it in writing. i'm very shy. what does a tweet look like that people want to read on the one hand but where it's not going to be anthony weiner, you know, it's going to ruin -- >> and you do have to be careful with that. hi a big situation with, as you know, janet talikova. that was a big thing and it was a huge following. people wanted to hear about it.

i did something on you a tim -- autism is so prevalent today. i've been saying this for a long time, that the -- i'm not against vaccination but i'm against massive vaccinations at one time in order to save doctor visits with the doctors. and frankly, a lot of people love that and some people didn't look it. my attitude is if you spread the vaccinations over a period of time, what do we have to lose? autism is so prevalent. you reported it under two weeks ago how bad it is now. that was something that got a lot -- i mean tremendous stir over that but it's true. i believe so strongly. so i just put what i believe in. >> and you don't have a ghost tweet sfer. >> i really don't. i talk about obama, the good and the bad. i talk about mitt romney, how well he's doing.

i was very happy to see he's going to be now going against obama as opposed to fighting republicans for another month. this is great that they dropped out. you know, it's going to be a great race. i see the poles are ahead. >> cnn was a thousand people, had 9-point lead for obama. it was 90% obama, 10% romney. >> but it's early. >> fox came out and fox had him ahead, mitt romney ahead. it's interesting interesting. and we're actually giving, you nope, the soon to be perhaps first lady is coming up to trump up toer today. we're at 11:00, 11:30 and we're giving him a bill level day party. we just have some people come up so it's going to be interesting. she's a trick woman by the way.

she's a really great woman. >> we've been getting some numbers in. oklahoma, they've been better than expected. and we have j & j. >> looks like 1.41 versus expectationin 1.35. which is pretty good. >> it about a buck 37. >> the problem is it is so fragile with what's going on. one little ballistic missile can take -- little mistake can make a difference. >> and they're increasing guidance to reflect the positive impact. >> that's on the trump list, right? >> did you buy that from ace

greenberg? >> i do get things from ace. have i a number of people but ace is a veteran. >> does he take your call, write the ticket and put it in -- >> he does work for us for years. not on is he a very talented guy, he is a great guy. that is one of my holdings. >> revenue is a little light. >> you're not an apple shareholder are you? >> i'm not. hi some and -- i guess i am, yes. i got some when it was at a ridiculously high price and it went even higher. that's scary one to me. somebody suggested the other day buy some more apple. i'm not a believer in buying when it hits an all-time high. i have some from a year ago.

i should say when all of you became my broker. >> oh, goodness. if i did all these great things for you, tweet me, will you. zip will. you'll do great. and it is really amazing. it's the modern aej and if you want to put the word out, which is by the way not easy to get, i guess. if you can get that following you own your own newspaper. >> a million and a half? >> within a month it's projected to be over a million and a half people. that's pretty good considering we didn't start it very long ago so we're happy about that. >> it's amazing. you don't have facebook, do you? >> we're just starting facebook. >> not you, trump organization. >> it's useful in buying a newspaper. >> that's the next thing. i don't know. >> at the rate donald's going, he's going to get a pulitzer prize price. >> that's what i'm looking for. what i really want -- i almost

got an emmy. i was nominated a number of times for emmys. i should have got i don't know it for "the apprentice." we had wonderful ratings the other night. we led the 10:00 hour by a lot and by 57% i think. >> if you're going to go for a prize, donald, why don't you go for the nobel peace prize. that bar is not that high anymore. that's what i would go for. >> i thought you were going to say why don't you just go for the presidency. i was waiting for that one. boy, you really let me down. that was really -- >> well, you've changed so many times, i'm not going to bring that up again. don't do it now. give romney his -- >> >> i think romney's doing well. he's go to be a great candidate. he's up in three polls today.

that's very impressive. >> who is your favorite veep? chris christie is a great guy, rubio would be excellent, bob mcdonald from virginia is a great guy. >> portman. >> i don't know portman but i hear great things about him. i just don't know him. >> does great chick i don't know on air. we'll hear and see your tisch of the week. >> so j snd chang changed. >> that might change. >> coming up rngs more on

thorn's earnings and street reaction to coca-cola. "squawk box" will be right back. the numbers and reaction are next. he's concurred road rage. >> what are you doing? >> he's a master on the golf course. >> it's in the hole! it's unbelievable! i can't believe it! >> and now joe kernen is taking on twitter. >> one giant tweet for man kind. >> i didn't want to make a big deal of this. and don't forget to follow becky, andrew and the show. and the sweet spot that powers sound decisions. duff & phelps financial advisory and investment banking services.

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cours the white house saying president obama will announce a plan to increase oversight and crack down on manipulation in the oil market today. he'll speak at 11:10 eastern in the rose garden. we'll bring that news to you as it develops. >> coca-cola reported earnings today. they beat expectations top and bottom line. it is indicated up about 60, 70 cents or so this morning. it's back in the 70's, it's been a long time since it's been

solidly in the 70s. that caused you i think to get less positive on the shares? >> yeah, that's right, andrew. >> this is joe. so you're now looking for a hold on it because it has now reached -- it's in line with historical valuation levels, which are what? >> you're looking at levels which are relative to the market about a high 20% premium to the market multiple. >> what did it get to back in the late 90s? did it have a 50% premium to the market? >> if you go back to pre1998, which is when they started to run into a problem, they had a premium above 58%. if you go back far enough it has traded at a higher premium than what we've seen over the last five years. >> notwithstanding what the share does, which you have a hold on, what about the actual numbers? how did they handle commodity costs? was in their anything that stood

out in kmondity growth? >> the balance we saw across geographies. we saw every single region grow. not only that we saw in developed markets, japan and north america, up side where consensus was and emerging markets, the philippines and brazil, up side to numbers there as well. >> did they say anything about the outlook that would cause you -- i think some people think commodity prices might moderate at this point. they were going to announce some cost cutting to deal with commodity prices. anything that would cause to you hold and go back to a buy? >> that's something we're always going to look at with any rating. in terms of what we're see here, what we're seeing is what we describe as what we have been seeing, which is a company which continues to meet or exceed its long-term targets and is a very good company doing very good things. >> 2% yield. maybe slowly goes up over time. it's certainly got the safety

play and the ability to increase the dividend, too. sounds almost like a -- is there such a thing as a strong hold? you got a strong hold on it, mark? >> that might be a healthy way to describe it. we look at the group and see better risk reward. >> mark, thank you. >> still to come, a wall street legend and a magician. ace greenberg will join us for a special interview. find out if he has any tricks up his sleeve to make you some money when "squawk" returns. everything that i've gained in life has been because of the teachers and the education that i had. they're just part of who i am. she convinced me that there was no limit to what we could learn. i don't think i'd be here today had i not had a wonderful science teacher. a teacher can make a huge difference in a child's life. he would never give up on any of us. thank you dr. newfield. you had a big impact on me.

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earnings reports from coca-cola, johnson & johnson and goldman sachs. and it's tax day, april 17th. do you know where your refund is? scott cohn investigates the growing problem of tax refund identity theft. the third hour of "squawk box" begins right now. ♪ ♪

welcome back to "squawk box" here on cnbc. first in business worldwide. i'm becky quick along with joe kernen and andrew ross sorkin. take a look at the u.s. equity futures this morning. they are indicated higher after gains for the do you yesterday. the nasdaq is indicated higher after a decline yesterday, led by shares of apple, down for the fifth day in the row. already we've heard from goldman sachs. it's raising its quarterly dividend. the stock is slowly lower. also dow component johnson&johnson reporting first quarter earnings of $1.37 a years, 2 cents better than

expected. that stock looks like it is indicated higher, 464.13 to 64.30. coca-cola is also indicated higher. 73.17 to 73.25. >> oracle suing google back in 2010. google says it do not violate oracle's patent and that oracle cannot copy right certain parts of java. that trial is expected to last at least eight weeks. and in spanish auctions today, just above their target ranges. spain's ten-year high, a bond

just above 12%. >> our next guest is an iconic figure on wall street. joining us now on set is squawk newsmaker alan "ace" greenberg and former bear stearns chairman. it's great to see you this morning. >> hi, andrew. >> i did almost bring some playing cards because i thought maybe you could do a trick for us. we'll have do that next time. we just had donald trump, one of your clients, on the phone. i was curious. he said he does trade through you. are you making any suggestions to him right now? >> i have no comment about donald. whatever he said, i agree with. >> do you smell anything out here? >> does it smell like success out here? >> i'm tweeting right now. i am. >> joe, i want to start off with a request. i was in that room where they warm you up and i was watching the program. they had a picture of me. i'd like to buy that picture and burn it.

where did you get that picture? i look like that or something. i don't know. >> we'll do that for you. >> i'd like to buy it and burn it. >> like a suit, you want to have it cleaned and then -- do you have a good head shot? >> i'll get you one. >> no photo shopping, though. we like you just the way you are. >> it will look like donald. >> you spend a lot of time investing your own money and looking at things. where are you putting your money? >> i'm very optimistic. i think the country's going in the right direction. the first quarter earnings, there's a big difference of opinion about what they were going to look like. everybody thought they might tail off and so forth. so far everything i've seen has been an increase. >> you're not worried that we're out over our. >> ding! >> i'm going to start dinging.

>> squaring the circle. >> i'm sorry, we're having these -- specifically certain stocks you're liking? >> yeah. the bank earnings were terrific i thought. wells fargo, jpmorgan. i haven't seen the goldman sachs earnings. i just heard what you said about them. they were much better than expected, raised the dividend and alcoa i think was the first that reported, they were way ahead. so i think so far it's been one pleasant surprise after another. >> where are you on apple? i'm sure people call you and say, apple, what do i do? >> i think eight times earnings it should be attractive. it's getting eight times earnings. >> what's going on over there? >> it for effect. i like the smell of trum p kol on. but for the effect of using it, i sprayed too much on me. i can't stand to be around

myself right now. everything in moderation. >> i can't smell it. but are you wearing trump clothes and -- he sells everything you know. >> he does. >> they're pretty nice ties. do you own any? say yes. >> yes. i own all of it. all of them. >> do you know what i want to get to? you saw the greg smith goldman sachs -- >> right. >> you have competed against goldman for most of your career i would think. >> right. >> do you respect the firm as being deep down client oriented and ethical? they're tough competitors. if someone did that when you were at bear stearns and wrote to the "new york times," how would you have dealt with it? >> first i wouldn't have liked it, i'll tell you that. well, look, goldman's success really speaks for itself. in a public relations sahara

right now. competing with them over the years hasn't always been pleasant frankly but that's competition. i had a particular unfortunate incident with them in 2004. i remember it distinctly. it was one i wrote up so i could look at it occasionally because i thought it was so wrong. but, look -- >> that was pre-blankfein. >> i don't want to go into it. i felt i wasn't treated right. >> as a client? >> as a partner. but that was pre-blankfein. i hi think blankfein has done a fabulous job there. they've gone through a bad especially. all of us have gone through times. >> i was a retail broker for ten or 11 years. you can't survive if you're not -- if the client doesn't do

well. and if goldman consistently over the last 30 or 40 years, if they consistently put their interest ahead of their clients -- >> i don't believe they did. >> it seems like it comes home to roost sooner or later. >> it would. i don't believe they have. >> you run a firm. if did you that at bear stearns -- >> with our clients, you'd have nothing. i can't believe it's as bad as they look. i can't believe they treated clients like people say they did, otherwise they wouldn't have been the huge success they have been. their clients seem to love them, seem to stick with them and the proof is in the pudding and the eating thereof. the eating was today. it was a pretty good buffet, right? >> when you read that letter, though, did you write it off and say can't be true? putting goadmldman aside, you'v been around a long time and seen a lot of different cycles --

>> the one of 1902 was rough. i was there. the gentleman had been there 12 years. i really didn't understand what his job was. i didn't know how high it was, what level it was. i think subsequently i've heard that it wasn't that high. and what brought it on, i don't know. but they do keep their clients, their clients do seem to be happy. you can just see from the business they do that they must be doing something right with their clients. >> ace, i had wondered if this gives their clients something to kind of push back in terms of pricing or, you know, if i stay with us, can i get a better price on this. is that something that people do? >> i can't say what they do. i don't know. >> would that surprise me? >> no, it wouldn't surprise me if they tried and it wouldn't surprise me if goldman says no. goldman has a tremendous amount

of talent there, they really do, no question about it. and, you know, one of the things that really surprised me was they had this unbelievable performance during 2007, 2008, and 2009 yet there was a run on goldman in 2000 whatever it was. there was a run on goldman sachs despite their record. it was just unbelievable. >> what do you think about the people coming to wall street today? the conversations i keep having about young people coming on to wall street, people want to work at facebook, do other things. wall street is not as exciting or interesting and therefore some people have argued there could be a coming brain drain. do you buy that is it. >> no, no. there are still people applying all the time for jobs at wall street. they call me, can i counsel them, what can i do? the problem is there aren't that

many firms to apply to anymore. investment banking, there are five left, four. i don't know. >> is that a good thing or a bad thing? >> it's evolution. certainly the clients haven't suffered. the banks, they had tremendous income from their underwriting business, their bond business. the banks have filled the gap of the firms that have left. there are hundreds of investment banking firm when is i started and then there were five and faux there are no -- >> some would suggest the risk is too concentrated. you live in a risk world. >> well, from what point of view? >> too big to fail, too connected to fail -- >> i don't agree with that. >> 70% of the bank asset are in the top ten banks. >> or less. >> or less i think. >> could you do a workout of europe?

do you know what to tell them, whether it's austerity? >> no. they were just kidding themselves for so long, to take a country like greece where they didn't collect taxes. how can you run a country of ten million people and owe $500 billion and criticize the people who bought that debt. didn't they look and see ten million people owed $500 billion? it was all there. >> should the europeans lend them more or do they need austerity? i see both sides of this. >> i think we have our own problems here and i don't think we should get involved over there. >> what about europe? should germany just open up the-check books for everybody to hold the union together? >> you're talking about spain now, right? >> spain, any of them. the alternative is to give them a new credit line and double down and hope it come back. >> it's a question of how important it is to germany that

these companies survive in the european union. obviously they want it to continue and it costing them a lot of money so far but they run a very good shop. there's no questions about it, the germans are very efficient. >> being able to print your on currency, we now see how important that is, right? if you can devalue, can you pay off all your debts. if you can't, you have to pay them back. >> i don't know. i don't know what's going to happen over there. i know the unemployment rate in spain is utility of sight. >> worse than anything we saw, even if the depression. >> i know. it's just terrible. i don't know how they're going to work themselves out of it. i don't know how accurate their figures are. >> could it be another 2008 if it really got bad there or are we're insulated? >> no, we're okay. we're a very big country. we're a very strong country and we've got a lot going for us. a lot.

>> i wanted to talk about oil prices. they are impacting the markets. you're quoted as saying blaming the administration for the price of gas, they might as well blame him for a lack of rain in the southwest part of the country. >> a certain politician said if he's elected, gasoline would be $2.50 a gallon. even boone picken,s and avid republican -- >> that's newt gingrich. >> i forgot who it was. >> and boone said, whoa, wait a minute! the it ridiculous. you can't hold the administration responsible. the price of oil is set by china, by india, by opec. >> how much do you think it's overhanging the market right now, is a zploud. >> i don't think it is right now. the market is tin. we have our days where it looks lousy and then it's up a hundred

points. >> do you attribute any of that to the fed? >> no. i think the fed has done a very good job. i have no criticism of bernanke. >> no boubl, asset bubbles? >> no. >> good positive, underlying corporate fundamentals in this country? >> i would say more and more people are coming around saying bernanke did do a good job the last six months -- or years. >> i think we're going in the right direction. a year ago would you have thought from what you read that florida, miami in particular, had enough apartments to last for the next 40 years. all of a sudden a year later they're up to 80% and they're building three new huge apartment houses in miami. these things can turn jofrp night. >> but it's not all of florida. >> i just mention miami. but just an example of how quickly this stuff a concern.

>> people are worried that the market is going to have trouble finding the next leg up because of the fiscal cliff next year. >> people always worry. always -- >> monetary policy may be okay at this point. >> becky, it's like the person who says i'm not going to get in the market, i'm going to wait until things settle down. they'll never get in the market, i assure you. there's always some cloud overhanging, something terrible about to happen. >> so don't worry about it and feel good about what's happened? >> feel good, enjoy it. american history is it doing great. i wish more people are going back to work every month and you're you're going to have a bend and a dip. >> next time bring the playing card. i want to see a good trick. >> a miracle, not a trick. dogs do trick. >> a miracle.

>> i said i overdid the trump cologne and this is what someone said, just like your personality, overbearing and obnoxious. is th is what i'm going to get? i tweet about kcologne -- well, up yours, pal! kiss my -- >> we'll take care of that for you, raised. >> i haven't seen any restaurants on madison avenue lately. >> i never got to go with you either and that hurt me. i see you with everybody else. maybe someday we can do that. >> coming up. this guy -- i mean, he took time to -- >> now he got under your skin. he won. >> your microphone is falling

off. earnings reports from some major companies this morning. i want to dig through coca-cola, johns johnson&johnson. the paperwork. zap. it's our fastest and easiest way to get you into your car. it's just another way you'll be traveling at the speed of hertz.

. the futures right now looking up. nasdaq up 8 point, s&p up 6 points. we're going to watch first solar today. moments ago it was announced the company is cutting 2,000 workers or about 30% of its workforce due to deer te-- deteriorating conditions in europe. we'll keep an eye on that as well. >> let get more details on the results of goldman sachs. kate kelly has been looking at the report. what would you lead with? >> their fixed income, this is their traditional strong suit and their wild card because

they're such strogood visitudes. >> whoa! >> that's an s.a.t. word. >> they made about $4.7 million apiece -- i'm sorry, it's 3.5. if you add in their investing and lending business the debt securities portion of that, you still only get to a little over 4 billion. it's pretty interesting they're underperforming those peers. if you look at equities, they're trite right on par, better than citi and jpmorgan. we talk about companies hoarding cash and what were they doing with all this cash on their balance sheet? goadman sachs core xs liquidity is at $171 billion right now. that mighting be an all time h.

i don't know if they're preparing for volcker, if it's been a difficult time. it looks like a more conservative operating behavior. k kbl. >> what do you make of the investment banking numbers? >> on the numbers themselves, fees. >> not getting there. i wonder if that's going to become an issue with the greg smith effect, this criticism they've defocused on their customers and clients, and are they starting to lose a little bit of share with their core investment banking clients? they would always tell you that's step one o building career-long relationships in the industries they support. but the numbers, you're right, aren't quite there. >> buying back shares at $110,

that was the average price? >> not bad considering we're at $117 now. >> and they increased the dividend. certainly some positive signs for investors. the fixed income jumped out at me. >> when we come back, the latest on housing starts at 8:30 eastern. we'll be right back. duff & phels the sweet spot that powers sound decisions. duff & phelps financial advisory and investment banking services. mcallen, texas. in here, heavy rental equipment in the middle of nowhere, is always headed somewhere. to give it a sense of direction, at&t created a mobile asset solution to protect and track everything. so every piece of equipment knows where it is, how it's doing or where it goes next. ♪ this is the bell on the cat. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪

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welcome back to "squawk box." we are just a few seconds away from housing numbers for march. rick santelli, it does look like the futures are indicated higher. we have a lot of good earnings numbers out. we're watching for the housing numbers as well. >> here's the number, 654,000 seasonally adjusted annualized units. that's right on expectations. last month was revised just a smidge from 698,000 to 694,000. that's down close to 6%. if you're looking permanenit, ts a different story, they were up to 4.5%, 745,000

many made cases that building new houses or starts at least the ones that make it through to the final construction phase is just adding, you know, let's get rid of the inventory. others say the inventory is getting old. i don't know what the answer is but this number on the permit side isn't bad but it's not going to change some of the anxiety about weather and yesterday's home builder's sentiment index. the numbers are sitting at 2%. you want to watch the yen, it's had a lot of action. so has the euro-yen. >> scott, the numbers coming in have been pretty strong. what are you thinking of how earnings season is shaping up? >> so far earnings season looks really, really good. goldman sachs not so good but i think johnson & johnson and coke are much more important than

goldman sachs. goldman's had two big misses in two big beats over the last four quarters. i think they're trying to recreate their business, trying to figure out it's what going to be going forward. j&j and coke better. i think we have to pay attention to spain. bid to cover on their short instrument auction better than expected. and on the ten-year, the yield there below 6%. that's all good news. as far as housing is concerned, a little bit of a mixed bag. it's interesting that yesterday home depot hit a new 52-week high. that has just been up at a 45-degree angle since about august. and the chart for home depot yesterday looked really good. so in general earnings good, financials doing well, some names doing pretty well. goldman sachs maybe not so much but i don't think you can read too much into goldman sachs.

>> what about apple and technology? apple down five days in a row. it's down close to 10% from its highs. >> down 4.1% yesterday. part of the problem with apple is it's kind of the headline now. it what everybody watches. if it was all you were watching yesterday, you would have thought things were pretty ugly. you have to remember apple has done really, really, really well over the last year or two. so though it's stepped back 10% from 644 even, which is the all-time high, people have done really well unless they jumped in at the very last minute. >> scott, hi not looked at home depot. that is unbelievable. i mean, that was $28, it's now $52. that's $28 in just a little over a year. it's like a ten-year high. it reminded me of that was the big growth premium -- that was in an 1999 growth premium stock, too. >> you said the same thing of coca-cola. is this all the return of the

big chip stocks? >> i don't know. you don't wear wcare why, you at care that it is, right, scott? >> no, you have to care why. >> why coke and ho depot? people are improving their home and they're going to get thirsty? >> people are always going to buy coke and cigarettes. coke and mcdomd's, those names are always going to do well. >> in ten years had hasn't done anything. something's changed because it's finally breaking out. >> over the last few years you couldn't buy coach or tiff any. you look at that chart from august, it's just -- it's impeccable. it hasn't stepped back at all and if you look at the chart from yesterday, it's very healthy. it would make a level, consolidate there, then take a step higher drurg the day.

take another step higher. really impressive for home depot. >> i'm just looking for some of the other stocks like that, if you look at microsoft, it's gone from 24 to 31 money you have a lot of these big blue chips. is that selling us something? >> and microsoft is not even a beloved -- it's cheap and people are worried about them making some sort of knuckle aheaded acquisition. i think we'll have real concerns about leadership. if the hardware and technology and rerefresh technology is under way, mike is going to do really well. i pointed out everything we saw in spain today maybe not so bad since it was -- when do we worry

about europe and when we don't? >> my own opinion is, i don't know if worry is the word, europe is going to be a concern. it's going to take away from the global economy in my opinion for years. they had a short-term auction. it went better than expected under -- okay, let's look at that comment. they had a better bid to cover but significantly higher interest rates. i've always contended when it comes to normal, nonmanaged markets trying to do it the good old fashioned way, the different twns between something deemed good and bad is about price. am some price they'll buy anything, greek paper being anything they think will default tomorrow. at some price they'll buy anything. is sin talking about argentina? i love this.

but down in argentina, congress voted this is okay, that president fernando -- >> you're really making this difficult for me to the to get a little crazy here. >> but it's okay. congress and argentina had a vote. >> so what's the difference? they're taking over industries. the only difference is they don't have the same flag we do. i think a lot of things our government is doing, sallie mae, are we just splitting hairs here? >> domestically they didn't like the way they're running the oil. i figure maybe the country can run the oil company better. congress passes a law and they seize 51% and they'll find out later how much that is worth.

>> okay, now you enlighten me. 51% that's correct why in argentina. in this company kri the government only owns 27% of gm. a horse of a completely different color. >> seriously, if i was in spain and if i was repsol, i guess chavez did this and cuba, communist countries do this, right? argentina, it's nominally some type of western democracy, isn't it? >> i'll tell you, michelle caruso-cabrera, whenever she talks about argentina, she has her history down. at the turn of the century, they were pretty much equal in many ways to the u.s. in terms of horse power, the standard of living and things went amiss. we all know some of the issues in history. it's really a sad story in many ways. unless you like the sickle and the hammer, it's a sad story. >> i would fall back on to that

could never happen here because of our constitution and you're saying that it's a creeping -- that's we've already seen -- >> hey, even the mona lisa can get splashed by somebody throwing some paint on it. the constitution's a wonderful document. how they respect it, how they deal with it in the jurisprudence of the property and other issues like that, hey, it's always possible that it's going to be either diminished or increased in terms of stature. i think it's an amazing piece of paper personally and i don't think age makes a difference. liberty is at the heart of it all and i don't know that liberty changes. >> people just don't realize that individual freedom and economic freedom, you can't have one without the other. >> absolutely! >> you got to protect both. you know, it ain't being protected. >> good job, joe. i heard did you your first tweet yesterday. today you're probably going to get a whole lot more followers. >> do you -- did you retweet me? are you following me? >> you know what, i can barely

keep up with e-mail. i can't be adding anything else into the mix. >> joe, i'm following you. i'm looking forward to you stirring it up more on twitter. >> i'm hesitant. i'm shy. >> he's shy 24 hours into it. give him a day. >> my big toe is -- i nixed the idea of sending a picture of my weiner. >> this week. >> that was a ballpark. >> a ballpark frank on the grill. >> some people are watching now -- >> because someone named weiner actually did send a weiner. >> i know, but if you -- >> no, i'm not going to do that. >> the water is warm, joe. come on in. >> until it turns cold. >> rick, scott. you can catch rick on friday on "options action." >> what is coming up? a growing problem of identity

theft tax refund? what would you do if somebody filed taxes in your name and collected your refund? and still ahead, carly fiorina, former hp chairwoman and ceo. robert johnson, founder of the rlj companies, who knows a thing or two about entrepreneurship. jim rohr, many say one of the best ceos in the country and a lot more. jim o'neil, big. >> are you suffering from market fatigue? >> you may be suffering from

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welcome back. >> welcome back to "squawk box." futures right now indicating a positive opening, up about 58 points or so. we had a rebound yesterday from an abysmal week last week. >> do you want to let the viewers into what they have just come into. >> i might tweet about it but you need to follow me to know about at that. are you following me? >> yes, i'm following you. >> apple had a five-day losing streak. longest in three years. now down 10% from its record intra day. been it's been hyperbolic. >> and first solar, announcing it will cut 2,000 jobs, about

30% of its workforce. there's a beautiful chart the nation's largest solar maker trying to speed up its cost cutting efforts. >> just flip it around, it would look better. >> it would. that is a reflection of $2 natural gas. that's what that is right there. on this tax day thousands of taxpayers are in for a rude awakening. not just about their tax bills. identity theft is rampant. so that refund you were counting on may be in the hands of someone else. investigations inc. is on the case. is that you? >> it's a bunch of us. >> senior correspondent -- have you found anyone? >> yes. there's a lot of people. imagine you go to file your taxes electronically, you hit send and it says somebody's already filed under your social security number. >> what? >> this is happening a lot. >> this is at the top of the

irs's list at the dirty dozen tax scams. drug dealers have started doing this instead because it's a lot less risky. police began finding stacks and stacks of debit cards issued for online refunds in the hands of crooks. 49 people arrested, $100 million intercepted, not to mention luxury cars seized in the raid. the police chief in tampa says the problem is only getting worse. >> i've never seen individuals involved in a specific type of a crimecrime they will so readilyt what they're doing. taking the government's money is not wrong in their eyes. >> it's the taxpayers' money. >> the federal trade commission

says complaints have doubled in the last two years. they found cheat sheets floating around in jail showing how to get social security numbers, use them to file tax returns online and then claim the refund before the real taxpayer know what is hi her, taxpayers like angela peasley who tried to file electronically in february only to get a message on the screen that a return with her social security had already been submitted. that's how she found out she had been hacked. >> it feels like you're -- like you have no control over what can happen to your finances or your personal information. like you just have no control over anything and that anything can happen to you and it can happen to anyone. >> that it can. her $5,000 refund is in limbo because trying to sort this out with the irs, well, that's a whole other story. we'll have that later today on

power lunch. we want to hear from you. e-mail us, investigationsinc@cnbc.com. >> how do you even sort it out when it happens? >> you go to the irs. they'll have you file an affidavit. it might take a couple of years for them to sort it out. they'll tell you to call the police, the federal trade commission. the agencies are overwhelmed with this right now. >> this isn't like credit card fraud where the credit card companies will give you the money quickly. >> no. this is the opposite. you don't know what it doing with a tax liability. now you have a record of a tax return until they sort it out that is completely at odds with what you made. >> does this mean you shouldn't file electron click cicallelect? >> it doesn't matter how you file. it's just these people got ahold

of your social security and you found out faster because you filed electronically? >> it's not an argument about s security number, don't have to present i.d. to get your money back means it is vulnerable. the irs is working on it and turbo tax and online services are working on it. it's a huge problem. >> scott, thank you very much. >> did you figure out the lighting? >> it's brighter. i don't know what happened. >> people, why do i color my hair so dark? this is going to be a problem. >> you were just -- he wants more followers. that's what it is. >> you know -- >> it's real. >> you look like you color because you have no flgray. >> not yet. it's coming. >> what are you going to do? >> i swear. does it look darker? >> it does.

i'm looking in the camcamera. it does. like when we go to washington. >> the lights are different. >> it's brighter. they tweaked something over the weekend. sorry. when we come back we have earnings reports from coca-cola, goldman sachs and johnson & johns johnson. "squawk will be right back. [ scott ] i grew up playing with little toy trains and now i build them. i am a bigger is better kind of guy. i absolutely love building locomotives. i knew i wanted to design locomotives from when i was very young. [ jahmil ] from the outside it looks like such a simple device. when you actually get down into the bare bones of it, there's so much technology that's submerged. [ rob ] my welds are a signature, i could tell my welds apart from anybody's. you lay down that nice bead

and you look at it, i love it. they don't go together by themselves. there are a lot of little parts, and everyone has their job. [ scott ] i'd love to see it out there on the open tracks. and when i see it, i'm gonna know that i helped build that thing. [ train whistle blows ] here she comes! [ bell clanging ] [ train whistle blows ] wow! [ charlie ] well, it's one thing seeing them built, but then to see them out here, pulling freight across america, it makes us proud. ♪

welcome back. let's get to the new york stock exchange. carl, melissa and david are there. we have been looking through the earnings. what are you watching? >> it's hard to concentrate because the scent from joe's cologne made its way to lower manhattan. >> ooh-wee. >> i sprayed it on every orifice. i put it on my feet. it was a gag for the cameras while they were on us. i didn't realize -- >> he sprayed 20 times. >> it's the gag that keeps on giving. >> people are tweeting about it. >> in the control room. it made it in the control room. >> it's not the scent. it's how much he used. >> he got kicked out of the health club for using too much baby powder. >> that did happen. >> you know where the bodies are buried, so keep it to yourself or tweet it. >> obviously, becky, a lot to

watch today. i know you will talk goldman later on. lots of metrics including thick revenue, investment banking revenue comp this morning, too. >> we'll talk about that and watch the stock as well. try and think about the overall question. kate was talking about it earlier. is goldman losing market share? something i brought up yesterday when we compared it to morgan stanley. we'll see how the stock reacts. >> and the president at 11:10 will issue a statement on cracking down, increased oversight on manipulation in the oil markets with the attorney general. we'll bring you that live and talk about what it means for oil markets down the road. >> see you in a few minutes. >> coming up -- >> smell you later. >> it is really something in here. the stock of the day, is it in your portfolio? when we return we'll tell you what it is. >> tomorrow on "squawk box" our guest host will be carly

fiorina. we'll hit the rails with csx chairman and ceo michael rourke and goldman sachs asset management chairman jim o'neal joins us. don't miss "squawk box" tomorrow at 6:00 eastern. in here, great food demands a great presentation. so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a whole new way. using real-time photo sharing abilities, they can create and maintain high standards, from kitchen to table. this technology allows us to collaborate with our drivers to make a better experience for our customers. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪

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all right. i'm trying to show something. the stock of the day is first solar which will be up today after cutting -- it's the biggest solar company in the world. this shows natural gas down 73% in five years. first solar down 64. but we are starting with first solar before it went up to $320. it was down there where it really has gone from $320 down to $21. what was interesting about this -- if you look at the highs of first solar it was in january of 2008. remember the hope -- didn't sarah palin say hope-y change-y? >> uh-huh. >> it was going to be all renewable, all solar, all wind. hasn't worked out. >> it's continued to go down while the rest of the market went up.