good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin and a cast of very helpful characters today. our kids are here and you'll be seeing a lot of them through the course of the day. >> prepare yourself about. >> that's right. >> i said to henry, you know, they're getting ready, big moment for them. >> the real youngsters aren't here yet because they can't last three hours. >> how old are max and henry? >> 19 months. >> i told them they are the experienced ones and they need to shepherd and help everybody else out. it's camera ready. >> can't do squawk begins right now. >> are your guys going on get

makeup? >> we haven't talked about that. i don't know. >> kyle is not going through makeup. i'm worried about other issues. i just want to make sure he doesn't try to go for a meal right here. >> that's exactly what i was thinking. he'll feel you up. that would be embarrassing. >> we'll wait and see. >> does he look with a lot of desire at those, though? he knows -- never mind. >> should we talk about exxonmobile? >> yeah. i wasn't talking about kyle. i was talking about matt. no. >> all right. exxonmobile, the headlines are hitting this morning. earnings central is coming. the company is expected to earn $2.09 a share in the first quarter. analysts are looking for revenue to top -- >> does he drool? >> the oil giant announcing it's raising its quarterly dividend by 21% to 57 cents. >> see, you want us to mention

dupont. but it's 5%. do 21% and maybe we'll mention it with more gust too. >> that mean raises the yield to 2.6% for the yield on this. but again stock's also done very well. which is part of the reason. it makes exxon the top koornt dividend payer in terms of dollars surpassing at&t. other names reporting before the bell include aetna, bristol-myers, dow chemical, kellogg, lockheed martin, pepsi, time warner cable, tyco and u.p.s. so a lot of numbers on the way. >> and you can add today's economic calendar, jobless claims at 8:30 a.m. polled economists looking for

first time filings to fall. and later today we'll get the national association of realtor reports on pending home sales for march and at 11:00, we'll get the kansas city fed survey. so between those earnings and all of these other numbers, we have a lot to chew on this morning. joseph. >> do you follow alec baldwin? >> on twitter? >> no. what did he do? >> some day if i ever -- seriously, if i ever got mentioned by alec baldwin, i think i could retire. my life would be complete. but i think this is a real -- alec baldwin tweeted about gary came gary kaminsky. >> what did he say? >> he said he sort of gave him an easy -- you can imagine what kind of interview alec baldwin thinks lloyd blankfein should get. now -- >> the vampire squid. >> right. i'd like to see baldwin interview the ceo of capital

one. but he would give that guy probably a bj interview. am i allowed to say that? probably not. i already did. anyway, andrew -- >> i'm reading it. it was not a nice tweet. gary's good friend of ours. >> he said can you believe this guy would tweet about me when he's a capital one spokesperson. i'm doing gary's work here. >> i thought gary did a great job. >> so did i. >> and i thought lloyd was pretty interesting. >> alec's going to run for office apparently some day. he'd get your backing probably, right, for mayor or something? >> i'd vote for him just because he would make a lot of news. >> give you something to cover. you know who made a lot of news why he had? fed chairman benbernanke. >> way what a segue. >> saying he's comfortable with the policy stance but stands ready to act if needed.

>> so we have been very accommodative. and we remain prepared to do more if needed to make sure the recovery continues. >> fmoc reiterated its expectation that interest rates would not rise until late 2014. fed also adjusted its economic forecasts to acknowledge an him proving labor market and slightly higher in-flaegs over the next few years. i don't feel anymore certain that if conditions change that they would do it earlier. all the other fed guys say, you know, we're ready to do something in 2013 if necessary. so just saying it again doesn't make me any -- >> but if he had said it with less gusto, you might have thought -- >> can i ask you a question some when did you take the last acetaminophen with the codeine? you seem like you're sort of

there. arced up a birtt. you had a thing removed. >> i have not taken it since like 1:00 a.m. >> well that's definitely you're still in the afterglow. and i like it. i like this -- >> i'm being very quiet. >> you're smiling, you're happy, you're narced up a bit. the world looks good. >> at the moment because i'm with you, it looks very good. >> i like this. i think it's working. >> be careful. >> when i had my appendix out, i don't know what i had, something good. i had something good. percocet or something. a couple of beers. >> you're not supposed to have beers with the percocet. >> does it say that? >> yes. >> well, i beg to differ because it was amazing. and all i needed was nothing else but a remote control. >> i have some leftovers i'll bring you. >> no, don't. its v's very bad.

and you no he what the side effect of that is. constipation. >> then i'll definitely bring them for you. >> there was none of that, just waiting and hoping and then finally some serious action on both ends. everywhere. you got -- like concrete. any way. go ahead. >> there is serious action he's talking about, too. tim geithner says the u.s. economy is gradually getting stronger p about he was speaking with john harwood yesterday. listen in. >> profitability that the american business sector today is much higher than it was before the crisis, investment spending private equipment is growing very rapidly, much more than the economy as a whole. so if there is a plausible argument that regulation or the fear of regulation was holding back growth, you would pot snot the american business sector looking so strong. >> geithner will be giving an answer in san francisco today on economic relations with china.

in his conversation with harwood, the secretary slammed mitt romney's approach to china policy, as well. let's take a look at the markets. the puts this morning after a positive day yesterday are giving a little bit back. nasdaq by 5 1/2, dow off by 13. we do have jobless claims coming up at 8:30 this morning. so that's less than 2 mf hou1/2 away. oil prices right now are down by about 19 cents. 103.93. the ten year which has been under quite a bit of pressure in terms of that yield is still below 2%. 1.95%. obviously the market is listening to what bernanke had to say and all the economic news that will be coming this could be a beg impact. if you see where the dollar is trading, the dollar is lower across the board. right now the dollar-yen at 80.86, euro trading at 1.3214.

also gold prices this morning barely bunching o ingdgebudging. >> in global headlines, a german newspaper reporting that the ecb and a group of eurozone countries are working on a possible way to let crisis stricken banks have direct access to europe's permanent bailout fund. the paper says that the group would look at how credit could be directly transferred so that banks that were strapped for cash would be able to survive. >> when we come back, we'll talk more about earnings and the economy. we'll be asking traders what will really matter in today's session right after this. but first, we do have a little sports news. david wright becoming the mets career rbi leader. it all happened yesterday. his go ahead two run homer broke a tie with darrel strawberry. mets beating the marlins 5-1.

a lot of news coming up came. >> we have the disrupters. the whole show is being disrupted by disrupters and children. >> will it help? >> it might. >> squawk will be right back. and later the disrupters. these guys are turning the world upside down. and leaving technology in their wake. you may not know their name, but hair companies are about to change your life. box.com, four square, and many more. all in one place, "squawk box." 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.

between listening to the numbers... ...and listening to your instinct. duff & phelps finds the sweet spot that powers sound decisions. duff & phelps financial advisory and investment banking services.

u.s. equity futures, you can see red arrows. dow would open up about 9 points lower. nasdaq about 5 lower, as well. >> we do have a few earnings reports that are already hitting. tyco earning 86 cents a share. that beat estimates. revenue also came in better than expected. and time warner cable out with numbers, too. earnings came in at $1.30 a share. that beat expectations of $1.21. revenue came in in line. also we have whirlpool, $1.41 g

compared to estimates of $1.12. revenue just below. >> and now ross westgate with the global markets report in london. a little bit of red behind you, sir. it imagines your tie. that's probably the only good news i could take from that. >> yeah, not big losses to be fair. earlier on we did start out with another heavy earnings day and that's what's driving us. so 7:3. just around about the session will hes ahead of the u.s. open. ftse 100 fairly flat at the moment. just up 8 after being up 9 yesterday. dax up 1.7% yesterday. down about 0.4%. ibex down 1.6, but it's about the earnings. first of all, the banks. barclays today came out with numbers that were better than expected. the stock is just down, although that's been sort of a turn around during the session. but investment bank doing barely

well. deutsche bank today missed on their profit expectations. big runoff charges. but also they didn't do so well in their trading units, as well. santander had a 24% drop in profits. actually that was better than we might have thought. but they had a big jump in loan loss provisions up 51%. they have hit the capital targets required. stocks actually been hit more than we thought. other stocks in focus, alcatel-lucent the biggest faller down 13% today. a slowdown in the tell are a com market and margin compression. else wrrks not too bad. bayer, stock up 1.8%. did well with fertilizer particularly from the united states. offsetting any margin pressure they might feel in the chemicals business. unilever up 2.4%, they beat today, as well. still cautious about the

environment, but markets like what they're hearing from unilever. and royal dutch up 3.82%. their mums coming in better than expected. 11% rise in their fourth quarter profits helped of course by higher oil prices. so that's where the good news is. bond yields going up in italy and spain. france, as well. we've also seen lch kleenex announce they'll increase margin rermt requirements. this in in france, in 10 and 50. and for spain, issues between 2 and 15 years. margin requirement 50 basis points. not major reaction to that this morning. but yields just heading a little bit higher as you can see. that's where we stand. i'll hand back to you. >> ross, thanks very much. let's get to today's national weather forecast. scott williams joins us from the

weather channel. finally getting through some of the cold weather or not? >> no, in fact cooler times ahead for the northern tier, northeast and new england, as well. we'll find clouds and some showers that will arrive late this evening toward the northeast and new england. the mid-atlantic will find scattered showers and thunderstorms unsettled conditions toward the west coast, as well. so if you have travel plans around los angeles, later on this afternoon into the evening, philadelphia, washington, d.c., moderate airport clays expected. it's chilly across the northeast and new england this morning. frost advisories, freeze warnings here. painted in pink. temperature-wise, it's 45 degrees in central park right now. we have 44 degrees in boston. but around syracuse, currently 30 degrees. we have temperatures in the low 30s right now in albany, new york. quiet on the radar across the northeast and new england, but a fast moving system will bring crowds and showers hate in the day. new york city, temperatures

topping out in the upper 50s. scattered showers and storms in raleigh right around 80 for today. then by friday, that clipper will move away, we're looking at windy conditions, boston upper 50s for you have on friday. but mid-40s toward interior sections of the middle east and new england with rain mixing in with a little bit of wet snow. severe weather moving through sections of kentucky, as well as tennessee, so taking a look at the active radar, damaging winds and large hail moving in to sections of kentucky as well as tennessee. so just be on the lookout for that if you do have travel plans there. otherwise toward sections of california, southern california seeing some wet weather, so just be on the lookout for that. temperature-wise, atlanta 82 degrees today. 88 degrees in orlando. toward texas, look at the triple digit heat around san angelo, 107 degrees. so it will be hot there. otherwise unsettled for you intermountain west. salt lake city a few scattered showers and thunderstorms.

mort lan portland, unsettled weather and mid-50s. >> scott, i hate to put you on the spot, but my sbrbrother is getting married saturday on the jersey shore. will rain? >> it will be cloudy and a slight chance. >> cloudy is okay. that's good for pictures. we'll cross our fingers. scott, thank you very much. >> always looking for the silver cloud. >> cloudy is good for pictures. >> was it raining on your wedding? >> no. >> it rained a little on mine. >> not enough, but just enough, i hope. >> you better. you've got twins -- people say two twins. >> and you'll meet them today. >> i know. i'm ready. >> we have another busy earnings day. we'll get job lales jobless cla. let's get down it to the futures

pits. we've been watching earnings come in and the numbers have been pretty spectacular. we heard from the fed that they think the economy is getting better and don't worry about it doesn't. we're here to catch you. why is there still so much pessimism on wall street at this point? >> i think it's because the jobs number is really never going to be thick enough for the market really to take off and get going. other than one massive technology company who just made the nasdaq gap higher, it's going to always be about jobs as well as it should be and for that reason, i think that these weekly numbers have really put -- dampened optimism into the market and thus put the inflation scenario through the jobs reports. another reason doctor we think it's going to be an elongate the rally some day in other markets. in particular the commodities. >> what about the jobs report would -- is there any print that could make the market feel

better about this? >> i think we have to see something that is probably double what the expectation is on more than a weekly basis. we won't see that kind print come out that would make such a difference. and again, it's still based on fundamental reasons. i think those days are well above us where it's dampened pessimism on a daily basis, but once again, we're starting to focus at least here in chicago on other factors that come a little bit more than euro. today we're seeing soybean prices the highest since july of 08 da0 '08. and it's because of drought in argentina. that will increase demand.

almost getting back to the 16 level we saw in '08. >> all right. michael, again, is there miles per hour chance that there's a print today that actually pushes things higher? because it's been a surprise to me how the mood has changed in the market. >> i think you'll have to see sentiment start to come in well better than expected and at the same time, i think until we see a monthly number close to 5, we won't get anything on a weekly basis that will make a difference. if you get a blip on a thursday initial claims number, it will have to be off the charts and just look at the expectationses for the number in itself. that doesn't give us credence to watch the market change its mentality off this number. >> okay. michael, thank you very much. great talking to you. >> thank you. i want to see if you really are desensitized with the narco.

>> i'm ready. read. >> let's have the camera on andrew and see his response. this is about the romney opportunity. >> yeah. >> one of mr. romney's -- this is "wall street journal." one of mr. romney's trickiest challenges will be how to handle mr. obama's er veracity. more than any other president we've ever seen, this incumbent is willing to say things that aren't enin the area code of the truth. thus he gives himself credit for the natural gas drilling boom. the deficits are still mr. bush's fault. mr. obama has never raised taxes. and green jobs in his dream economy are blooming by the millions. now, that is just -- wow. nothing from -- see? >> i'm trying to think through -- >> it's working. >> i'm trying to think through what i could possibly tell you -- >> he hasn't raised taxes. he's raised the prospect of

taxes. >> this is one version of propaganda a one side. we could maybe read the "new york times" editorial page and say that's the other side. the truth is probably somewhere close to the middle. >> but just about definite s deficits. in eight years, bush headed $3.9 trillion. in 3 1/2 years, $5 trillion. >> a couple caveats to all of that, but i won't dispute the numbers. >> but we matt point before, the buffett tax over ten-years will raise $47 billion. >> it's a gimmick. i won't debate on you that particular point. does that make you feel better? >> you're pops those ace se--

>> people on the other side have the completely different view and i imagine neither is really accurate. >> j it will be i prevented a great depression, i saved gm and killed osama bin laden. >> and all true points. >> and those are valid points. >> he saved the economy from a depression? >> i do believe i think that was bipartisan. i think the bush administration started that. i think paulson can it. and it carried over. >> by the time the t.a.r.p. was done, we weren't going in to -- >> the bush administration gave the first payments to the automakers. >> then you give that to bush, 00. >> in the same way that you don't want to -- i remember saying to you once are you going on blame george bush for the financial crisis. and you say no. so if you're not going to -- this goes back to do you give credit or blame. but the point is do you give credit for what happens while you're in the office --

>> and even bin laden. sooner or later, someone will be in the office when we finally got him. >> my point is whoever is in office gets credit or blame for whatever happens. >> he's not getting any blame for 8.2% unemployment. >> i think he has to take credit for that, too. >> he's taking credit or blame for it. >> he can take credit and blame for it at some level. >> they're not miked up, but i'd like to ask blake about this. but we can't. take your child to work today here at cnbc. that means makeup. did they already leave? >> whose kid is that in the middle? >> yeah, that's natalie. who else do we have? >> there is your son. >> wow. >> looks like lloyd blankfein will be on again. no, that's not him. there's blake. >> there she is. >> the girls have -- where was

natalie? >> kim amy was in there. she must have gone through already. >> it looks fun in there right how with the music on. we should have the music playing in there when we're in there. >> like game show music, doesn't it? >> a little bit. we can play a game show coming up. it is synonymous with apple. -- what is synonymous? do you know what it could be? >> apple puns? >> the i-comomy, the i 35d, tip. the guy behind the letter. but beyonce has been named the most beautiful woman of 2012. top honor be stowed by "people" magazine. she said she feels more beautiful than ever because of the birth of her daughter. i think her daughter's name is blue, is that right? previous winners include

angelina jolie, halle berry, and last year's winner, jen pnifer lopez. a lot more beautiful women on the show later today. laces? really? slip-on's the way to go. more people do that, security would be like -- there's no charge for the bag. thanks. i know a quiet little place where we can get some work done. there's a three-prong plug. i have club passes. [ male announcer ] get the mileage card with special perks on united, like a free checked bag, united club passes, and priority boarding. thanks. ♪ okay. what's your secret? [ male announcer ] the united mileageplus explorer card. get it and you're in. feeding your lawn need not be so difficult neighbors. get a load of this bad boy. whoa. this snap spreader system from scotts is snap-crackin' simple -- just snap, lock, and go. [ scott ] feed your lawn. feed it!

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he is the guy who put the i in apple's most revolutionary products. ken seigal is a former ad agency creative director for apple and next his new book is called insanely simple. the obsession that drives apple's success. it is good to see you, ken.

refresh my memory. initially something else called i something? >> i don't remember there ever being another i thing. >> so you came up with "i"? >> i did. it's one of the things when you look back at it, it seems obvious. it was imac, getting on the internet. but of course nothing ever comes easy. so basically we got the assignment to come up with a name for this thing. and went back to the office and we all churned out a bunch of names and had to go back to steve jobs and present. >> what were the couple options? >> some are too embarrassing to reveal publicly. >> tell us the worst one on the list. >> we went in with five finalist names. but just to prove that our people have good taste, imac was our first choice. that one where he tried to get steve to buy. but steve was everything he's cracked up to be. he didn't usually like things the first time through. wanted you to try harder.

so that initial -- in fact i found the original list recently and i was really terribly embarrassed. >> come on, you have to share at least a couple. >> psychology didn't usually work that well with steve, but anyway, one of the names was mini mac. so that wasn't so awful. but then there was this idea that this would be the mac for everyone, so the name was every mac. and it's like -- that's kind of lame looking back at it. >> was there one that he liked besides imac? >> there was actually. and this is the interesting thing was he had a name in mind and it was basically you got to beat this name or this is going to be it. and the name was mac man. and there were some interesting things surrounding that. he basically said i don't want it to sound like a toy. and mac man sounded like pacman.

and he didn't want to sound portable because even though it had a big handle on it, it's not really portable. so i was like macman sounds like walkman, so that sounds portable, 00. so just wrong in every possible way. but he didn't like any of the names and he said now you got a week to come back with some more. so we went back and churned out a few more and then we returned with new ones which i don't remember. i'd have to do more research on that one. and we said we still like will one and we showed him imac again. an his response to that was, well, i don't hate it this week. but i don't like either. so now you have two days to come up with something better. so back at the office the next day, i phoned someone at apple and really heard that steve was running around showing people imac silk screened on the model and getting opinions. and i never heard another peep after take. it just became imac. >> did you work on the other

products, as well, ipad or ipod? >> i wasn't around for those things. i was around for imac and e mime and ithings. but it was one of thoefs things that you have no idea it's going to turn into what it turns into. so i wish i could say we were all that smart. >> you weren't there for calling it out. and there was that big lawsuit with apple records for that at the time. >> that's rutrue. >> and there was somebody who sued. >> that was i pad. >> i did an add for music software and they did run if to trouble with -- we quoont rcoul the add because the legal concerns about apple in london, the beatles. >> but it is -- we make fun of people that spend $500,000 on

some type of branding that seems simple, but withis is one lette. you had another 25 to choose from, but -- >> funny you should you say that because when i do projects for people now, oftentimes it starts with them saying, well, that "i" sure was smart. and i'm like, okay, but i have 25 other letters to choose from. >> how important ultimately in terms of the success of these products was the name? meaning you were working with a great company who was turning out a great product. not to diminish the name at all. but how do you think about that issue? >> i think it's just -- it is hugely important, the whole trick to product naming. you can see some horrific names, letters and numbers that nobody will ever remember. so getting that great name is such an important thing. and the "i" thing opened up all these doors. and when iphone came out, cisco

apparently owned the name iphone, at least they claimed on. >> that's what it was. >> you acted leike you had no idea what i was talking about. >> deep dark secrets. >> if the guy that painted a couple of those crummy paintings for zuckerberg is worth $100 million, i hope you're worth $100 million. >> the funny thing is when you work for an ad agency, you sign a paper at the beginning that says everything you create belongs to the ad agency and then the agency signs a thing with apple that says everything you create belongs to apple. so, no, sorry, just the little moment of glory. >> just a little shy of $100 million? >> i wish. >> he wabltspainted the walls. got stock in the company. >> you've got 25 letters. next time you come up with something -- >> i should have loaded up the truck with apple stock.

>> we like "squawk box's" name. but if you could rename the show, what would it be? >> no. >> just curious. >> we didn't like it at all at the beginning. >> it works for us now. >> jack riley, the late great jack riley and roger i think said, yeah, that's what it is. and nobody -- >> it's a great name. >> very memorable. could use a little letter in the front of it. >> the isquawk would be better, yeah. we'll have to work on that. ken, thank you. congratulations on the book and the $100 million. >> we hope he sells enough books. >> that's right. >> the book of course called insanely simple. and he's dressed very simple. >> he is. >> kind of like steve jobs. >> you have to come back and tell us more about steve jobs. >> anytime. >> did you like him? >> incredible awe and respect of

the man really. >> did he humiliate you? >> oh, sure. no, i only got batted around a couple of times over all those years. but i think pretty much every time i left a room after a meeting with steve, you really couldn't help but think, man, that guy's smart. he really just cut through all the crap and just nose to the grind stone, doing really important things and keeping everyone on track. it's no mistake, no coincidence or whatever you want to call it that he became what he did. >> edison-like. >> i think so. >> thank you for being here. >> my pleasure. >> comments, questions about anything you see here on squawk, squawk at cnbc.com. we like our name. but if you have a great -- >> you're not wearing your jacket, you'll change the name of the show. >> no. >> only here six months and you're disrupting things.

>> a new brand called the did his resu hiss are rupters. so we can turn the world on its head. revolutionizing the way business is done. the facebooks of tomorrow. i read this guy every single day. he's from business insider. where social media meets news and a whole h hoe lot of exciti results. there he is. "squawk box" returns after this. e numbers... ...and listening to your instinct duff & phelps finds the sweet spot that powers sound decisions. duff & phelps financial advisory and investment banking services. departure.

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kicking off our disrupters summit this morning, the next generation of inventors, social media giants and soon to be billion naaires changing the wo of business, we start off with social media and what impact it has on business news. joining us is a media stalwart, deputy editor for business insider. i read you every single morning. you are up actually -- >> you watch squawk. >> of course. >> you're up at like 4:00 in the morning. >> about that, but that's not early for you guys. >> we love people who get up at the same time with us. >> i feel like the pre-dawn kin ship. >> and isn't it good to be up, you don't you get a head start? >> that's the best part because other people are just getting in, you've already beat help.

>> try getting up later and everybody else is tied with you. you're not ahead of anybody. >> let's talk about business insider. you've been there how many years? >> almost four years. >> a start up still in some regard and you've made some business inroads. tell the audience what you're doing. >> started off basically as a blog, i covered tech and i started covering finance. started by henry blodgett. we were in one little room and now we have 100 people and we cover tech and wall street and markets and international stuff and advertising and sports. >> and so what is the future? i know other news organizations big establishments have tried to poach you and you have stayed. but i ask because what do you see as the future of business insider? >> we just want to be really big and read by everyone.

people ask about the model, but in my world, i just want everyone to read it. >> and what is the model? >> the model is get a lot of people to read it. >> and it's free. but you've built some premium elements. >> yeah, we have subscription services, premium research, we put on conferences and stuff like that. >> and this originally started and it's interesting because we're calling it tthis the disrupters series as still silly con sincers. a tech blog that has really expanded. so set the table if you will. because we'll have a number of people on for the next two days. when you think about this space and what's happening with -- how old are you now? >> 31. >> you're 31.

we have chip adler coming back who is 28. but there's some whole community of people who are remarkably young that are changing the face of social media. >> and flies under our radar. >> when we started, obviously startups and whatever run wild, but just the shear volume of companies that people actually care about day to day seems to have really exploded in the last few years. i've seen our tech coverage expand. and especially here in new york, there are just a handful of new york companies and now pour square and -- >> we finally got joe on twitter. >> very exciting. >> that has changed the business fundamentally. >> joe being on twitter? >> twitter itself has changed the way business news has been disseminated. i follow you on twitter and i learn more tlchere.

>> some of the stories i first see on twitter. a lot of journalists all over tweet their stories or takes so then you can see the germ of stories before you then see the full article. but so many things break on twitter in some form or another before you see it anywhere else. >> what do you think of stock twits? >> yeah, it's great. a lot of people, really smart traders and people who have something insightful to comment quickly about earnings or whatever, it's huge. and now i can't imagine whether it's a jobs number or apple earnings or whatever it is, i can't imagine covering those things without also getting people's real time reactions. >> do you think all this is a bubble? a lot of these businesses have yet to reach a profit. instragram didn't make any money before made a billion dollars. do you ultimately think that we are back in 1999? >> i don't think so. in 1999 o 9 thing one thing tha

correct remarkable, this was no discernment between quality and nonquality. at least you're talking about public markets regardless of who they were, the stock went up. you can look now at public markets and the companies that aren't doing good are getting punished. groupon, pandora, people questioning their model. and then you look at instragram and, sure, they didn't have if i profit, but amazing success just that's such a valuable asset for facebook both offensively and defensively. that, yeah, sure, it's a lot of money. you can't justify it on traditional -- but, yeah, i don't think -- it's not a bubble he wi because you don't see the speculative flipping. >> thank you for being here. disrupters series continue its the rest of the week. and get back to writing. who is running the site? >> internet is silent. >> until you get back to the office.

>> did you see the interview where they asked -- >> yeah, it's up. >> we should promote it. joe >> joe kernen on "business insider." >> did you decide ? >> i have to submit my -- i owe them a questionnaire. >> you were uncomfortable with a couple of questions. >> they ask who your best friend is. if i admitted you were my best friend -- >> i couldn't use you as my best friend. it's an earned -- >> someone is tweeting from business success. >> you were in the running. >> total suck up. did you see who he chose as his best friend? >> i've never mark hoffman -- >> the president of the network. >> we have dinner together with our wives, i go to his son's bar mitzvahs. we are bess friends.

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kimmy is your older daughter. natalie and then that's rory. rory fleming, who is greg fleming, our guest host, president of morgan stanley. he's going to be on. and there is the upcoming director of scary movies, horror movies, scott kernen. >> wow, it's take our kids to work day. >> it is. >> blake, blogged about take our kids to work. >> i did. >> it's good to learn about work, right. >> it is so one day can you have a wonderful job that feels like a vacation. >> that's right. >> it's a vacation that you have to wake up at 4:30 in the morning to get to. it's like an early plane to hawaii. >> it's like a science place. >> when you come here, it's like an experiment. >> rory, you haven't been here

before, right? >> i have never been here. this is my first time. >> have you ever seen your dad get make-up before? >> no, i have not. i have never seen him work make-up. >> is this the first time honestly? >> it's honestly the first time. >> this is his first time here. >> he's 12. >> this is his only year he can hereby. >> let's hear from all of you. are you sorry you're missing school today sm. >> actually, i had to fill out an excused absence form and hand in all the work on wednesday. >> if doesn't even matter for me. i have the day off. >> he's got spring break. >> he was off all week. >> spring break. >> these guys are going to be with us throughout the morning. they're helping keep us on track morning. we have three other members of the squawk family joining as you

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what are you waiting for? this is big news.

disruptor ♪ life in the fast lane good morning, everybody. welcome back to "squawk box." i'm becky quick along with andrew ross sorkin and joe kernen. we do have two key economic reports ahead this morning. one is coming up a very important one. the labor department will be out with initial jobless claims. economists are looking for a drop of 10,000 to 376,000. also we have pending home sales and chrysler reporting its biggest quarterly profit in 13 years. sales were up by 39% from a year earlier and those results were boosted by strong u.s. sales as well. also reality track reporting flo foreclosure activity increased tw wh compared to 2011's fourth quarter but says it fell in most

major city when is you compare it to what happened a year ago. you can see now the dow futures down by about 14 points, the nasdaq off by just over 6 1/2 and s&p futures off by 1 1/2 points. treasury secretary geithner saying the u.s. and europe are getting stronger. >> we're in much stronger shape than we were six, nine, 12, 18 months ago and europe is doing a better job of managing their crisis. even though they've got a tough, long road ahead of them, they've done a much better job of providing a measure of common stability and they're putting a lot of financial force behind these reform efforts. >> we are continuing fast and furious this morning. already we're seeing numbers coming out with pepsi. >> 69 cents, 2 cents ahead of

expectations. the company says they expect to return more than $6 billion to shareholders and for 2012 they expected a decline in core constant currency of approximately 5% from 2011. >> are they giving new guidance? one of the big issues -- >> they just said that. they said they expect a decline in core constant currency earnings per share of 5%. a decline of 5% in earnings per share. 4.40 was the actual number last year. 4.09 -- >> that's 30 cents below. the streets looking for bigger than that. >> exactly. this is core and currency is factored out. we're going to talk to the cfo and find out exactly what they're talking about.

revenue view was 3.126 billion. $6 billion returning to shareholders, $3 billion will be in a share repurchase. >> we'll hear more in a little bit and we'll be speaking with the company very shortly. in the meantime let's have our guest hosts weigh in. greg fleming is the president of morgan stanley smith barney and gentlemen, it is great day to you have here. we have been watching what's happening with these earnings. greg, maybe you can shed lighton how you things are shaping up with the earnings, fixtures. >> earnings have been on the positive side. i would say a couple things when you're looking at the macro economic scene. six months ago we were talk

about three different potential head winds around the world, potential double-dip recession in the u.s., which is pretty clearly off the table and the fed reinforced that yesterday, potential hard landing in china, which so far has not materialized. it's still 8% plus gdp growth and then the euro situation and there was a lot of talk for a while would it hold and now roughly $1 trillion of liquidity later there's still a half a step forward, a half a step back and major challenges in europe but the situation is materially better. >> you think it holds over the summer? there's a lot of talk about what happens in france with the elections and what not? >> i think what's going on in places like france and a lot of talk about the netherlands, this is going to take multiple years to work through. you're coming out of this major credit pop and deleveraging going on throughout these kwi km -- economies.

it's a multi-year session with austerity and the need to keep the economies from going over the edge in the recession. so there's going to be a give and take. it's going to remain a challenge for the global economy. all the discussion of greece last summer, would the european step up? and they stepped up with a big way with liquidity and walking this line between orstairity and recession and i think half a step forward, half a step back but a long deleveraging process. >> robert, you look at that and that's a more optimistic view. greg' right, it's better than things like six months ago and yet europe hit a stall smeed. >> i think we'll continue to muddle along. while low rates are is negative for savers, it's a benefit for companies. companies are flush with cash. they don't want to reinvest right now in the business because you don't know what some of the regulations might be, some of the tax issues my be so

they're doing exactly what they should be doing. they're buying back stock and raising dividends. there's an incredible opportunity for investors to move out of savings into dividend paying stocks because this is going to be more of the same. you saw exxon today, you just announced pepsico, same thing, buy back stocks and raise dividends. >> do we run into a trouble at the end of the year with all the questions surrounding tax policy and what's going to happen to dividends tabses? >> it may be interesting. over 3d 00 billion from stock will come out of the market with buybacks and it not being replaced by new ipos. can you see the stock market go up, even though the economy is muddling along. >> that's interesting. >> the bad this evening that will happen is if the politicians believe the economy is getting better just because the stock market is going up and it's really going up for technical reason, not because the economy is better.

>> did you say $300 billion? >> over $300 billion will be taken out of the market. all the companies will continue to announce. >> how much is the total? >> over $10 trillion. think about the buybacks occurring. >> how does that compare with what we have historically? >> it above average and it's above average because they're not investing back into the economy. it's an interesting statistic. but what's important is that we recognize that savers now are being penalized and we have to talk to them about moving their assets out into either high yield securities, which are yielding somewhere around 6%, to etfs, preem errol or to equity stocks or even munis.

but sitting at zeros, it's a cost to cash and it's dramatic especially in light of the fact that people are living longer. it's going to take longer for them to retire. >> you could i say our savers have been -- i don't know if i'd say sacrificed but you look at who is really benefiting, not just companies with lower interest rates but the government. what happens to our debt service on the deficit right now if interest rates double? >> take a look at who is bailing out the financial institutions. is it the government or the taxpayers and the savers? >> think of the flip side. if we didn't do that and we did allow savers -- but you think pension plans? it would be nice to have the states not be so strapped as well. but the priority is the government and the debt service, is it not. >> it's all connected, joe. the pngs plan, the liability,

the gap is getting wider and wider. this is a negative of low rates. so we're in a situation here that we're trying to convince people that they need at this time to come out into the market. a lot of people have moved from active management to passive management. but you have to be active -- the market is moving toward asset allocation. this is a time you'll look back and say the market went up and i missed it and everybody will run into it. the best investors make their money when nobody else wants in. >> greg, you know. smith barney -- >> have you been reading the business section yet? >> both retail and institutional still very cautious. you see it in new york stock exchange volumes down again and again. i think the 2008 crisis had enough of an impact on psyche

that investors remain very cautious despite the fact having the money in cash. >> 30% easy this year. >> i'm just saying 30% easy. >> but i started in october. kaminsky's right. remember we had that flag, all the manager backs in october, we were at the exact s&p number that we were in tween and everyone said last time it went down. we're up 30% from there. but we could do another 20% from where we are and the retail guy is not going to be back here, you're not going to be in a cab where the guy says hey -- go ahead. >> when you look at the first quarter, you have the s&p up 12% in one quarter. despite that volumes have stayed down and investors have stayed cautious. >> what percentage of your clients have their money -- what percent is in cash right now? do you have any any sense? >> on an historical basis more

than one would expect against the back drop we have here, with an economy that's starting to get healthier and a fed that's starting to acknowledge that yesterday, with the s&p up 12% in one quarter, the reaction to that set of facts is different at this time than it would have been in the past. >> there's $10 trillion sitting in cash right now in banks. that $10 trillion is going to move. that's also going to go somewhere. if it goes into the stock market or some of it goes again that will help the stock market. >> would you bet your life we don't do 30% this year from the calendar? >> i think it's unlikely. >> we did it three years in a row in 90, right? ? what are you looking at? >> i think it's somewhere between 15 and 20. it prit a pretty darn good return. >> 10% chance, 15% chance? >> i think it's a very high chance.

>> what do you think? >> 30% is high. but i think if you ask rob or really anybody that question about the first quarter in december and said what are the chances in the first quarter the s&p will be up 12%? they would have said the same thing. >> that's 48% -- >> quickly. that's not even compounded. >> i'm good at math. >> rob, we want to thank you very much for joining us. greg will be with us for the rest of the morning. he's our guest host today. >> we're going to be poring over pepsi's quarterly results. and our special series, "the disruptors." the founder of skribs and box.com will join us to talk about the future of silicon veel and making money in the new economy. squawk returns after the break. , working, working, working.

and now you're talking about, well you know, i won't be, and i get the chance to spend more time with my wife and my kids. it's my world. that's my world. ♪

>> welcome back, everybody. take a look at the futures. at 8:00 a.m. eastern this morning, congressman paul ryan will be joining us for a special interview on taxes, jobs and the economy. stay right here. squawk will be right back. we've been reporting pepsico releasing first quarter numbers. that was the quickest commercial

break in history. we're back. >> all right. >> tada! >> let's try and sell something. >> pepsi! >> okay. all right. who thought about snacks and soft drinks. this is the one synergy -- >> do we have chips? we had a whole basket of chips. >> hugh johnson, thank you for joining us today. cfo of pepsico. >> good morning. happy to be here. >> we're wondering about guidance. the guidance i saw and we're trying to do ams to apples and that was the constant currency, it was a slight decline, which seems to be less than what first call is looking for. i don't know whether you were watching hugh, but 440 was your actual year and 409 is where the street is. you forecast less of a decline than that. is that true or are we not doing apples to apples?

>> we had delivered 69 cents in revenue was up 5% for the quarter. for the year we just reaffirmed guidance. so from an earnings standpoint we said down 5% on a constant currency basis. in addition to that we returned in the quarter about a billion to shareholders and reaffirmed the fact we'll be returning over $6 billion to shareholders for the year. from the standpoint of expectations, no change in expectations for us and shouldn't be for the sell side. joe, maybe more importantly for the quarter, we really started to play some the building blocks for our future earnings trajectory. we upped media spending in the quarter by 25% and we expect that to continue through the course of the year and we got some great innovation out of door. one example, pepsi next, a product we just got out in the faus weeks, pore terming better than expectations, it's 60% less

calories but tastes just like a great regular pepsi. and a terrific serial you can take on the fruit with real fruit and nuts in it. these are the investments we feel awfully good about and we're seeing our productivity coming in exactly in line with what we told investors. we feel good about the quarter and about the year. >> just talk about soft drinks. that's always been a big point, a big question mark in terms of your relative market share to coke. i know you've been spending a lot more money but how do you see that working itself out? >> yeah be, so we see our market share results slowly building over time. the way that we're going to do it is not through price discounting but rather through innovation like pepsi next, as well as talking to people about the brand. we think the innovation pipeline combined with the new brand

spending and a great new campaign you'll see later this year will put us in a very good position from a soft drink standpoint. we've said our intention over the course of time is to hold or grow values shared. that's the target we're shooting for and that's a building process i think you'll see steadily improve. >> so we shouldn't be watching market share in terms of the soft drink business? >> no, i think you should watch market share. we are the leaders in north america. but what i think you'll see with us is steady improvement in our market share results quarter after quarter after quarter and we're going to do it through brand building and innovation, not price discount. >> i've tried to get clarence otis at darden to start a mexican restaurant chain. i've tried to get papa john's to open a pizza place to deliver.

i know you probably won't do this but in terms of innovation for snacks, can you make something with very low carbs? you can put fat in it or protein but yet for an atkins person, you know what i'm eating right now? pork skins with cheese. people see me eating my house, they're like -- can't you make something that won't gross out my family that's an atkins snack? >> we're certainly aware of people like you who want to get into that space. >> really? >> and stuff in the pipeline we think will meet your needs. if you're concerned about carbs and calories, would i take you back to pepsi next at 60 call pris per cane, 60% less than a regular pepsi. joe, for a guy like you it's probably two minutes on a treadmill to burn 60 calories. >> bingo. and i don't get that aspertame.

>> i'll work with you on pepsi next if you get me off of these -- what is a pork skin? is it actually -- it's good with cheddar cheese. >> is it bad? >> blah. >> there's a lot of people that like them. >> so you have a thing about them. >> no, no, we sell a product called baconyettes. >> do you have a monitor? can you see us right now or know? >> i can't but i understand weep have some product. >> i'm holding a massive can of mountain dew and i'm worried that you're selling this product because it's -- i mean, would you drink this? seriously, think about how much calf teen is in this. >> there is a massive can of

diet mountain dew in to the only can i drink it, can you drink it? >> you don't ask somebody with that look on your face. >> no, but it's huge. >> would you drink this whole thing? >> sure. don't you see people drink big things like that. >> i'm eating pork skin. if i worried about that -- >> thank you. >> i'm on to something here. >> that would disrupt the whole snack food history. od history. isn't major medical enough? huh! no! who's gonna help cover the holes in their plans? aflac! quack! like medical bills they don't pay for? aflac! or help pay the mortgage? quack! or child care? quack! aflaaac! and everyday expenses? huh?! blurlbrlblrlbr!!! [ thlurp! ] aflac! [ male announcer ] help your family stay afloat at aflac.com. plegh!

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i love this song. comments, questions about anything you see on squawk, send us an e-mail. still to come this morning, we've got congressman paul ryan on his economic road map for the country. then we've got some breaking economic news that could move the markets as we get the latest data on jobless claims. the numbers and instant reaction when "squawk" returns. >> still to come, the next, generation of silicon valley's brightest, the founder of box.com and ceo of skribd joins

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internet, the final frontier. these are the voices of silicon valley's new young guns. exploring strange new areas of the worldwide web, seeking new innovations, breaking away from the norm and creating the ne next generation of computing gurus, going where no generation has gone before. they are the disruptors. >> they are the next generation, about to be mega millionaires and possibly billionaires with a b. they are "the disruptors." >> the ceo of skribd, his document reader has been

embedded more than 10 million times across the web site. and then we have aaron levy. >> did you it! >> box.com, ceo of the company, they provide cloud data storage to over 11 million users, over 100,000 businesses and enterprises. thanks for being here. >> thank you very much. >> we talked about what skribd does. let's talk about what box.com -- >> so you know, i don't think either one of us have been up this early before. i adjusted to east coast time but this is blowing my mind. >> do you write code? >> he doesn't know code. >> you guys should have a code-off then. that's what we do in the valley. we do code-offs. >> you do? >> not as much anymore. i focus on products and

strategy. >> how old were you when you started this company? >> i think i was 20 years old. >> how old are you now? >> 27. >> were you in school? >> yeah. i was down at usc and my co-counter was at duke. >> for members of the audience who don't know what box.com does, give us a briefing. >> there's a lot of enterprise soft care that people used to share and manage around collaboration, usually if it's from microsoft, or oracle or ibm is very expensive, hard to use, hard to implement. at box we built a solution that makes it easier for businesses of all sizes to manage it in the cloud. triple a, mcafee uses it -- >> it's sharing documents? >> any kind of piece of information. in the media history people use it to share videos and music and

the finance industry it's prospectuses. >> in morgan stanley wanted to use it, how would they? >>. >> they would use it for business information in and outside the business, particularly in areas where there's already internal and external information and sharing of data. >> i'm user, i don't know if i should say this. >> you shouldn't. >> drop box. >> oh, god. >> how does it different from goolle and -- >> never heard of them. >> aren't they in the valley? >> they are close to us. we started the company with this vision that there should be an all-purpose solution from being able to manage and share your data anywhere you are. companies like google, moflt and apple would eventually be able to subs guise dooiz the cost of storers.

they are giving you nearly unlimited free space. in 2007 we decided to focus entirely on the enterprise market. we build the most secure, scaleable platform that businesses can use to manage and share their data. we're entirely focused on the enterprise and the solutions you mentioned are on the consumer side. >> in the day and age when you've seen instagram going g for $1 billion, you're the ceo of this company. can you say what the valuation of the company is right now? >> i can't say but the ratio is not 13 people to a billion right now. working on it. >> nonetheless, how do you think about whatever the next step is? do you sell, do you -- i mean, the number have got in i imagine much bigger than you ever imagined they they'd be? >> well, i would say that we've always seen that our space has

just massive up side and growth. so much $290 billion are spent every year on enterprise software and much of that has yet to move to the cloud. over the next five, ten years, sales force, net suite will get the most of that value. we just want to be one of those companies. we think there's tremendous up side. wheel we were surprised by a lot of the numbers and how exciting these markets are, if you think of the total potential market sizes for these companies, it pretty appropriate in a lot of way. >> you're roommatr roommates an guys you went to college with -- no, it's an amazing thing. >> we have them last week, eduardo. >> i knew zok, eduardo.

>> please playing spiderman now. oh, yeah, i get con confused. >> we came from an interesting class. facebook inspired a whole other host of startups within harvard. >> and then there's -- >> and -- >> simple style storage, same kind of business. >> you lived near sc when you were going to school? i was. >> straight up in come ton. >> you were on whoever? >> yeah. >> i know the area. >> do you? >> yeah. >> what do you think of it? >> i think when you write in code there, you better lock your door. >> let's say i didn't write in code much. >> you're afraid to go back there. >> i want to end up how do you think about koogle, for example?

these are the buyers for your businesses. i was on the show last time. it's good to be back just a week later. it's good to be here. when you build a company, you generally have a goal in mind that isn't purely financial. you're trying to build something and create something of value. usually the money is a part of that but usually the money is there to really evened what you're trying to accomplish. if the acquisition of your company helps you achieve that goal you're trying to get to, then it might make sense. but if there there and it's going to take your business in a direction you're not willing to go in, it's not so interesting. >> so what is your goal, since the business is changing so rapidly. >> we wanted to change publishing. we want to build a whole product

for accomplishers to distribute, publish and a sense for readers. >> if you're disrupting the police industry, who gets blown out on this one, i think if we bring a good platform, that brings sal u to the publishers. we can connect everyone. >> you get where i'm coming at. you're going to be taking the place of what? who gets upnded in that whole deal? >> i don't think you need to think about it that way. the nt net is getting betterer approximately so i not necessarily a zero sum game. >> can i throw in one point on that? it's a great back called ibm about watson senior and junior but basically thomas watson, sr. had to go to congress they put

together a committee on the elimination of jobs because of automation. this was in 1945 and at that point automation was punch cards. any enough kind of revolution? technology, whether it's what skribds is doing or cloud information story arj, there are things that cannot be predicted. if i pushed -- that creates amazing opportunities because of all the connected devices and the consumer we can see around corners bhap do you see we haven't figured out yet in. >> i don't know what you haven't figured out. >> let's assume everything. >> starting there, i think what's so revolutionary is if you look at apples's numbers and you look at the volume of tablet devices and nut cuts of own.

these are post-p.c. and get to our devices. it's going to have major disruptive effects for both of our -- all of the information technology organizations that are out there. all we have up a all of these oun droid businesses. it changes all of the way europe going to want to get to your information. we're talking to construction companies that manage their blueprints on construction sites without having any other technologier that and plan grid and an ipad. we talked to a major airline trying to digitize how they're getting the flight manuals -- >> american airline, they all have ipads in the cockpit instead of having those big books. it disrupts maybe printing paper and some of the ink companies. it creates brand new opportunities for software developers, building innovate of

applications -- >> what storage network are you using? >> we build outld a lot of it hr sefs. we written system -- >> back to the overall economy and all the angst in washington about jobs, this is the positive story of the united states. i have a colleague that he talks about the united states alongside of the emerging markets. his bullish story is around cloud commuting and what percent j of your friends are focused on technology and potentially building businesses and making a difference as you said? there's a financial side but you also want to create something that makes a difference. >> sort of a selection bias.

>> i'm curious from a jobs perspective -- >> we have 425 employees. >> all in the valley? >> we're going to expand. >> could you start it anywhere else because of the valley? >> we started it at -- i think valley learned itself to reconcentrating within the value because of the republic sources and network. trip and i met five years ago at some start-up party. so this is the kind of energy and if you want to talk about -- that's going to be a tough four years. are all these guys engineers? >> no but this is the payoff -- >> you can't say you need to

be -- you can't legislate we need more engineers. if there's a light at the end for these guys, then you -- >> well, not you. you're the thinker. we need to do a lot to create more competitiveness in the sciences. >> there's a pretty good carrot are we are guys puerto rico sfwlp this tlp is but the reason we do these is because we're trying to create some really interesting change with that technology. that has always existed, existed in the 70s and the 80s. >> what's missing then? intereducational i don't think we needed the light at the end of the tunnel. i grew up in seattle and there was a lot of microsoft inflation. we have to make it cool, i

guess. >> i think in silicon valley, it's just the level of access and the willingness to take risks. . there's just a certain willingness to and learn from mistakes and move on. >> you says you wouldn't sell out for the money but you might -- >> not only an acquisition -- >> are you at that point where you need extra capital to further your goal? >> we're breaking even now and we enjoying having the revenue. >> i got excited about one point

that you made. one of the things on cloud creating jobs and creating opportunities. one of the most amazing thing about cloud, if you were a 35, 10, 50. person business, it would to have at the kmif. so if you looked inside of a smaller, breedium businesses they didn't have the with the same kind of jek pi sm siels force.com pow evers cr. ease so to have that productivity gain where we can move faster, share better, we believe that's going to be the growthnders. >> tip around aaron, thank you

retch very much. >> coming up, earnings on exxon mobile and jobless claims. . we get ready. we'll be right back. you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know.

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their guidance of the year, reiterating guideins of $4.75 to $5. that stock is indicated to open a little lower at this point. closed yesterday at 79.65. the ask is all the way up at 78.99. much more earnings coming through morning and that jobless claims coming up. and we'll have final thought our guest host. and coming up, congressman paul ryan will join us to talk about taxes and et road to economic prosperity. you thought we had a lot going on here, everything including take your kids to work here. say hello to some of our favorite squawkers. squawk will be right back.