leave us with. it sounds like sdot and i are in agreement. we didn't provide that debate they know cnbc viewers like to have so much, but for individual invest fors in particular, don't try to be cute around this stuff, and i think too many investors try to trade around this. >> do you have a five-second thought? >> basically, don't bet against the fed and paper money will provide the foundation of a bull market for a long time. >> thank you very much. that does it for us today. it's time for "squawk on the street." >> good morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber on the new york stock exchange. the futures stubbornly to the upside as europe comes back from holiday apparently not fazed from negative pmi in france, italy and spain and cyprus' finance minister also resigning this morning. our road map begins with apple

down from four straight sessions and now drops from the conviction buy list. tim cook apologizing to the chinese for what critics are calling poor customer service. >> michael dell tries to get employees fired up about his proposed takeover of his namesake computermaker. >> insurance stocks getting a boost after the government says it will increase medicare payments instead of cutting them. is there more room on the upside? >> and the big banks launch a round of downgrades aimed at each other. goldman and morgan among those in the crosshairs. goldman removing the tech giant from the conviction buy though it does maintain the buy rating. they were at 6.60. apple's most recent product cycle has not driven market growth as they thought and they issued an apology to chinese consumers vowing to improve customer service in the wake of criticism from chinese media. in the letter posted on apple's chinese website tim cook said,

quote, we are aware that lack of communications led to the perception that apple is arrogant and doesn't care or attach enough importance to consumer feedback. we express our sincere apologies for any concerns or misunderstandings this gave consumers and they clearly, guys, cannot afford to upset the chinese too much. it's an important market. >> they have very bad will over there because this was quite an extraordinary apology. it's almost like saying owe're not going to be google. not playing by the rules, apple really saying we will play by the rules. >> 23 billion in sales will get your attention, right? that's where they are up 10 billion from 2010. to your point, carl, it's an important market for them and a market growing rapidly. phones like the iphone have a cache among the chinese consumers and they they have to make the call. >> let's just call it as it is.

there has not been a single piece of good news about apple for 300 points and today is just another day where the news is just horrendous, and go over the goldman downgrade. they're going to miss the june quarter. i am waiting for the company that says they're going to miss 2016 because 2016 will be a very bad year for apple and of course, they'll have $400 a share in cash, but it will be very bad. buried in the apple thing, the new products already are bad. we're already rating. whatever product's coming out in september is a clear loser, right? >> of course. as a matter of fact, we haven't seen it yet, but it is a loser and then how about this? they said the dividend will increase and the buyback will increase. not enough. you know, apple is becoming the jc penney of tech. they're going to hope that everything is key on joe fresh apple. >> they do say.

you wonder why they keep the buy. >> they do say that they added it to the conviction buy in december of 2010 and since then apple is up 23% and s&p is up 26% and they're still feeling good and are they trying to keep the buy to take credit for any upside if they're wrong? conviction buy to buy. the i love you or you love me super duper buy. let's take it down to the i like you super buy. many of the firms did get rid of these absurd terms and just had buy, sell, hold. sell you still don't see very often and this is the watch cheeseburger versus cheeseburger and the deluxe. it's just marketing and nonsense, but as we point out many times, in these reports you do get a sense of sentiment and you do get the sense of real work getting done and real analytics and even some reporting by the analysts if you

get there. i don't know that that's the case with this note. >> do you think apple is under siege or do you think apple says we know what we're doing and everyone else is just an idiot? >> i think that's more likely the case. >> so do i. i do wonder, jim, tim cook. the board, security of his job. when do we start having that conversation? i started it. >> i think you just put it in the public domain, but i think that there is a sense that the company's in a tailspin, and it doesn't seem to matter what they do right now. people are no longer worried. >> remember there was that period of einhorn saying, look, maybe they can do something. these were all downgrades on growth and missed quarters and when you see someone so certain that not only is this quarter bad, but the next quarter's bad and tomorrow we get a downgrade and they say that 2014 would

have -- you need everyone to downgrade like everyone upgraded. this is the classic. when do you get a bottom? when there is no one left who likes it and what you find every day is there's still someone who says they like it. they do say they expect a low-end phone in calendar 13. they say they could invigorate the high end with the bigger screen phone a la the samsung, but there is little tangible evidence in your view and at least in the food chain that that's going on. >> remember when jobs would do these great unveilings and it's incredible and now you feel that if cook were to do one of these big shows and come out and say we are about to announce maybe the most disappointing product we've ever had since the lisa. it's the lisa 2. >> that was a bad day. this is the lisa 2 and nobody likes it and i don't know why we're doing and it's all yours, america and china. >> and we apologize it's so bad.

it's a new product introduction. we're awful. so what is the answer then on apple? >> first of all, i don't think it's awful. second, there is an install base that is really good. third, if they had a wow product it would still matter. fourth, if they took the dividend to 4%. then you would see the floor in the stock and people would be reluctant to downgrade it, but right now, whatever they do doesn't matter. >> we should mention, by the way, the largest market cap company in the country which is no longer apple is exxon mobil did get a downgrade and we tend to focus a lot on apple, but now this is a larger market cap and fairly larger owned as exxon mobil. >> and it has not had the production growth of chevron. now they're spending billions of are dollars building a natural gas hub which sounds difficult to build, an engineering marvel

off of australia. i remember when i was at goldman sachs people would say would you recommend exxon. i would say why? who's going ever, like, come back and say how could you recommend exxon? how could you hurt me? exxon has had the allure, the crown and i don't think this downgrade will affect that. exxon, by the way, can do no wrong. they're the anti-apple. they could announce there's a tiger no longer in your tank and you take that to par which which is gibberish for 100. >> yes, it is. let's talk about dell this morning. employees received a letter from ceo michael dell detailing the company's strategic plans to conjunction with his proposal to, of course, take the company private. in the letter dell says, quote, i am more energized for the future of dell than ever. together we built a great company and our best days are still ahead. perhaps they are. >> that's great. >> perhaps they will be for blackstone, if it, in fact, owns

the company without michael dell being a part of it. that is the real story here. >> right. >> interesting he's trying to rally the troops and this is a distraction for dell. we saw an hp downgrade and one wonders whether hp is taking market share from dell as a result of customers saying what's going on? so these things do tend to have a potential impact not just internally, but they try to make sure they get out because you want to be reassuring customers, as well. >> i think there's got to be resumes coming from dell. >> how many stories do you have to read if the main reason they want to take this private is so they can fire lots of people, so on the one hand you're worried about being fired and then you take the note, and do you suddenly feel if you're fired that it feels better. in a worldwide slowdown for hardware. >> and for pcs.

i do think part of michael dell and silver lake's plan, if they do succeed for buying the company. it will be messy and it's not just about firing people and it's about re-investing and taking margins down to compete in certain areas in the lower end and go after the enterprise business in a more significant way. it gets messy if you had a public stock price out there it might look terrible, but it's not about let's cut and burn. >> look, we're going diminish our business in the low margin. we're going go to the higher margin service enterprise. it hasn't worked. i mean, it hasn't worked. >> the downgrade of hp out of goldman to a sell speak of sells today. they see a $16 price target. they're probably going to miss a couple of quarters and they say any restructuring we see in pcs in enterprise and printers.

>> i do wonder whether hp will continue to take market share from dell, but when you look at that dell proxy, you see a business under siege, that being that pc business. >> we talk about it all of the time and it's in our daily lives. i don't take my pc to work. i take my mini ipad. how does hp manage that. >> it is down more than 4% last yore. >> of course. >> where he says that it's your cell phone that's your command center. this used to be my command center. my pc was -- like i have a command center. >> the emoji. >> the emoji, man, they put out some new once the other day. they had half moons and quarter moons. >> know you work out, but at some point you have to lessen the load in the backpack.

>> i just got this which is a lighter one. hewlett-packard, there's hope! the command center, younger people they laugh at me why do you carry that smith corona typewriter with you, dad? fosius, latin for father. you know the dinosaurs -- >> jurassic park is coming back. >> here i am, you know? right? when dinosaurs ruled the world. >> you've got to run a company that's based in part of that and getting 5%, 6% of revenue from that even though it's less profitability. what do you do? what do you do? >> do you remember when exxon moved into videk and when exxon went into word processors? >> do you know who invented whiteout? >> 3m. >> no. one of the monkey's moms. >> post-it notes. >> i don't know what they're thinking. >> why are we talking about the

whiteout? >> because we're talking about machines that nobody uses anymore. i tried to get a typewriter recently for my father. his typewriter broke. he's typing invoices. i've been calling everybody looking for a typewriter. they're hard to fine. >> woody allen still writes on a typewriter. >> these could be hard to find soon. >> if the market slips 3% a year, right. that's going to happen. >> we ran out of time to talk about hmos and maybe we can do it after the break. big moves yesterday on this medicare news. interesting disclosure in there, too, that people knew something earlier. aren't we supposed to keep trying to keep medicare costs down? the lobbyists, you have to hand it to them. >> although it may have been an unintended consequence of a rule. they had the hmos pull away entirely because it was a negative 2.2%. >> right. and doctors don't want to be the

case. >> meantime, the small businesses can't understand the rules. they're delaying the rules and i had the paycheck ceos and we're trying to understand the rules and they are the company that you hire to understand the rules. >> we'll talk about humana. they'll be up sharp and let's taker a look at the stories we're watching. >> chrysler reporting sales up 5% and 172,000 vehicles sold and that is below consensus and it is calling march its best sales month since december '07. the dreamliner customer reportedly planning to put its pilots through refresher training in june. the ama is planning to use the 787 jet for cargo flights when it returns to service to re-assure the public that it is safe. nasdaq buying espeed, $750 million the price, the seller egc partners can receive up to $1.23 billion and that depends

on how it performs and the nasdaq has been trying to expand into non-stock areas into trading volumes that keep going down. we'll talk with ecg's chief executive howard lutnick exclusively in the next hour. we'll take you inside the calls coming up any also ahead, betting on out. a look at the bullish case for casino stocks. which one is best for your portfolio? futureures are looking pretty good here on a tuesday after dropping a tad on the first day of the quarter yesterday. a lot more "squawk on the street" live at the nyse when we return. everyone's retirement dream is different;

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health insurance stocks rising in the pre-market after the market said it would increase medicare rates by 3.3% by 2014, that reduces the cut that was announced last month after health insurers and members of congress and lobbyists were talking to members of congress. that was on top of the move they've had so far this year, jim, which has been amazing. >> i know there has been a continual search for new health care. here's a team. you get this feeling. humana is domestic. we need more health care names because the health care stocks and pharma has run so much.

>> biogen will go through 200. how many times can you take gilead? >> people have been talking about the fact that the government wanted to put them out of business for years. that doesn't appear to have been the case. they're up sharply, you know, even since then. >> and many would say they actually are the innovators, you know, that you need in the marketplace. there are clearly two sides, but they're not going anywhere. they're not going out of business. >> but if you remember back with we first heard affordable health. sure, united health. they're going after profit margins. that just wasn't true. you look at fannie mae, and it was a story where the policy bears said this is going to end in disaster today. the biggest profit for the -- that was a nice quarter. >> yeah. yeah. writing another big check. >> and there are preferreds and a lot of people think the preferred will be able to own

something, whatever that is and they held on their preferreds and it was question tote figu f out the preferred. >> i have to focus more on the enormous return of profitability and they're still digging out of a hole that was pretty big. you can't say t.a.r.p. was a success because fannie mae is obviously returning to business and it's a very health move. people have been playing the fannie mae common. that does not figure in necessarily. >> it's the preferred. but when you mention that and when you mention that fannie mae is not going up. beware @jimcramer. it will be a hard day. >> blocking going on? >> the know only time i got any sympathy at all was last night when the phillies fell behind and people felt bad for me and i like that sympathy. >> 161 games to go. >> i called my dad in the sixth

inning and i said dad, we're finished. it's horrible. >> can we at least decide to finish the game before you see a loser? >> no, that's ridiculous. are you even from philadelphia. >> all i know is the mets are in first place. >> congratulations. >> enjoy it because atlanta and the nats have a bit of a combo going there. >> second quarter, the markets are trying to rebound after the slow start. how can you beat the bear? cramer's got you covered as "mad dash" is up next. opening bell in a few moments. "squawk on the street" live from the nyse straight ahead. at tyco integrated security, we consider ourselves business optimizers. how? by building custom security solutions that integrate video,

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. six minutes, four minutes before the opening bell. time now for cramer's "mad dash" ahead of the market open at 9:30. let's get to it. >> carl icahn active again. david, i feel like every week he has a now stake in a company. this time 9.2% initially disclosed as a passive investment in a speech recognition company. speech recognition historically has been a very hard business. you know what? the man acts as if he's in his 30s. >> god bless him. >> how does he do it? >> it's all his money. no investor money, that givious a certain amount of freedom.

>> right. yeah. he is very active. dollarwise, while it's a 9.2% stake, it's a large stake it's not that large. let's not forget. how much money has he made in netflix alone? >> thank you for bringing that up. he's invested in companieses that people have given up on. the insiders were selling the stock. he has a great eye and to follow along with peltz has been the best. to follow along the cause is more difficult because when he announces it the stock speaks so big. you are almost afraid to take a position. >> although many times when you do follow the portfolio you still will do better than the market. real quickly, hertz. >> hertz is an invest or -- david, you have of ais, you have hertz and a private company, and you know what? these guys are on fire. they're raising their guidance and saying that cash flow is big and don't forget, was there a

shortage of cars from sandy. the rental market, it's no longer football. you can't play each one of these guys off each other because the pro-justice department -- sorry, the antitrust department busted this like the airlines. >> ever since the republicans won the white house -- i keep getting confused. the antitrust department and this administration is the most pro-business i can recall. >> all right. we've got the opening bell just a few minutes away. get ready. another big day of trading ahead. more "squawk on the street." ♪

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and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. >> you're watching cnbc's "squawk on the street" this morning live from the financial capital of the world. the opening bell set to ring in 45 successeconds. everyone wants to try on call the top. >> thank you, carl. the ratio says the upside and downside guidance is overwhelmingly bearish. i just wonder if that tells us anything right now, where we are. >> i just think that people don't believe once again and yet the numbers say if the first

quarter's good you shouldn't believe. i agree with you. i find the weight of the world on this market with the exception of humana. >> let's get a look at the bell here. s&p at the top of the screen on the cnbc real-time exchange at the big board. options a autism speaks. you cannot overstate the importance of this topic and we'll talk to the founders in a few moments. prevent child abuse america, an organization helping to ensure the healthy development of of children. let's do what we did not do in the first half hour, david, talk about some of the these bank downgrades because there's crossfire action between goldman and others. >> credit suisse taking down a few also. you know, capital markets activity, i think people got a bit overjoyed earlier in the year. >> certainly with m & a and there were others tempering that enthusiasm and we'll see how it

turns out and both of the notes pointing at -- it's not great on those fronts at this point, but the key thing, jim, that credit suisse says in their note about the morgan stanley downgrade is very simple that we've had a meaningful amount of expansion and a limited amount of earnings proof across the sector. >> we don't know. they turned into a retail brokerage and we don't know how extensive the earnings power should be. i'd like to know how much morgan stanley can earn. credit suisse says goldman is the one to own. sister, mother, sister, mother, it's a chinatown kind of market. and i struggle over the idea of a top because we don't have the -- the multiples aren't too high although they have an expngz and we are the only ones that have movement. remember that yesterday, if there's this much earnings weakness, are the feds going to

be able to spike the punch bowl and they'll add to the popov. >> does rum and popov go well together? >> do you think it matters? it's a punch bowl. >> just asking. >> you put hawaiian punch in a punch bowl and people will take it. >> it's the second time talking about the punch bowl. >> davis square, man. we could hit that place this weekend. >> that place has come around. >> in 30 years. i would never get off the subway, now i want to go there. >> people once again watching s&p intraday high which would take us to 1576, right? i wonder is the fact that europe is open again today? is that because we're seeing more buying? because of some unemployment numbers that were not so bad? they were the same as last month. >> okay. still the worst ever, 13% for the eurozone. >> another reason why it's up. if you have a reason, step up to

the plate! >> all right. so that's where we are now? it's only 13. it's not getting worse? it's not, actually. >> ireland was better. that's great, 4 million people. >> it was rough everywhere. germany at 49. >> it was rough, but europe is not down on it. i think that's important, and i don't like what i saw over there, but i haven't liked anything i've seen, but it just doesn't seem to be -- there wasn't another step down. >> yeah. >> but it is in no way, shape or form going to be an engine of growth for the world economy and that's why it was expanding in the united states and no longer just -- they're willing to be able to have a chemical plant and where they're cheaper. >> we don't spend enough time talking about the revolution in energy and jeff sacs yesterday said forget about it in an op ed

piece in "the new york times," it will be short lived and why will a company like basf decide you know what? maybe we should have american action. >> the marcellus is actually getting better and not worse. >> and royal dutch is moving in aggressively and they were mentioned possibly. >> i do believe that i was going to see, and ambr downgraded. pipelines away from the keystones. >> it's a good part and a feel good story in a world where the greens hate fossil fuels. hopefully more longer lasting. >> that could be. >> it's not over yet. he wants to call an end to the seasonal ready. >> after santana i was glad to see it. >> i'm sure it will be short lived. you're probably right.

we should point out hewlett-packard shares are down and we talked a lot about the apple who -- it was even a good buy? that downgrade of hewlett-packard has had it. how about qualcomm, raymond james, a strong buy from qualcomm. if you think that apple is losing share, it doesn't matter to qualcomm, they're everywhere. qualcomm is 4g and they're in every single phone and so therefore it's unassailable. would it shock you if that reversed if all of tech comes down today. people don't like material stocks. they don't like tech stocks or anything that are industrials because these are europe. >> the shares trended pretty much in line with the market even with the buyback and even with better guidance and historically the valuation relative to the s&p is at a low. >> that's why i want to own davita. that's why i want to own

anything that is health care, and the valuations are at lows and they go lower. u.s. steel number cut today. i mean, if it makes something that is not in the health care system it's not getting love. there's no love. there's love for vodafone shares, and i did want to point them out. this is on an alpha story. >> they cite usually reliable people as saying that at&t and verizon are considering buying all of vodafone and you split it up. >> as you know, i've been talking about this idea that is something afoot with verizon and vodafone where it was 45%. on the verizon side there is a willingness and there has been for a long time to do something, namely to buy what they don't already own of that partnership. the question has been vote

phone. what would it do with the enormous proceeds that it would take in from that potential sale, expecting, though, that they will team up with at&t and at&t will buy the international properties and verdzon will buy it back, but i do want -- >> yeah, 250 billion. by the way, you could throw in a $110 and 2w0e68 valuation of verizon wireless. >> what would be that fee? >> the financing fee would be the big one because verizon would do it in cash and stock. >> that could make a company's quarter. >> yes, it could. back to the banks. >> it could. i do find -- look, the dow hitting another high, but this time led by united health and there's a new leader emerging and there's been consistent

leadership here and it is hard to be as negative as you'd like. >> yeah. >> and we'll get more data points today. factory orders at 10:00. we've gotten chrysler auto sales. 5%, that's the best month since december of '07. ford's up. we talked about the anecdotally whether or not auto sales flat ebb out here. >> incredible. >> not so bad. >> let's check on bob pisani and see what's on the floor. >> i'm getting suspicious that europe is helping us out that we're a beneficiary of europe's chaos. the markets have beeny weaker a lot recently there. yesterday i was expecting decent inflows and the first day of the month and you expect flows in and usually it's an up day. the volumes were weak. europe fsz closed. hong kong was closed and today stock futures are up and and it is open and europe is a source of a lot of the money that we've

been getting recently. black rock strengthens this theory and it had a huge quarter, and 93% of the inflows were stock fund funds and u.s. equity flows for etfs so we are definitely the ben fish row and it was very, very weak and still no great rotations, more modest, but still inflows into fixed income. let me talk about a deal. i don't think you mentioned the nasdaq acquiring espeed, the electronic bond trading platform. the head of nabbing wsdaq was o us talking about it. people are asking me, why are they doing this? the stock-trading business is awful. low volumes, low volatility and low margins overall. fees, exchanges and all of them have got to diversify in order to keep in business right now. the hope is a pretty good one,

actually. the hope is private trading of u.s. bond industry and electronic trading specifically will increase as the fed eases off uncertains. they could broaden the platform to fix other income products as well. something interesting about this, the nyse was not approached as a buyer on this spikily. >> this had a feel of almost a private transaction. let's talk about some business and what's going on here. take a look at the airlines and everybody is watching these numbers because these have been really good recently and up 2%. as far as i can see that was below expectations and delta was down pre-open and it looks like some of the airlines are trading down. >> you also hear about the government increasing the medicare advantage rate. we heard about that yesterday. let me tell you, that was a surprise to everybody and the talk down here was that the

worst fears of the hmo business will not be rollized. the draconian rate cuts, not happening and we're speculating that maybe the medicare programs will be part of the politically predecked police down there, it was a little bit of a surprise and you can see that in the stock prices today. >> thank you very much. by the way, the dow with a new intraday record high as we see it at 14639. i want to get to phil lebeau. >> we have ford numbers out for the month of march and better than expected. the street was expecting an increase of 3.8% and ford coming in with an increase of 3.6%. truck sales up 6% and the real strength is in suv ates, cuvs and up 14%. three note, guys that are important for this sales release and fusion and escape, best monthly sales ever. best first quarter or best quarterly sales ever and the f-series, we talked so much

about pickup trucks being so important and a gauge of the economy, and up 16% for the first quarter. best first quarter since 2007. we have gm coming up in 20 minutes. back to you. >> remember, that's united states. it's your honor that's been hurting ford. so jump on the ford and you get european news and you get hurt. rick santelli at the cme group in chicago. >> it looks like we're back in the sell mode pushing yields up. hold on, if you move to a two-day chart, you will see yesterday similar and we didn't end up at 190 and we're still most likely, home on the range and 180 and 180 to 220. let's look at the spread between our 10-year and the booms. you see the right side of that chart and we're hovering in the mid-50s. if you believe as many traders do we've re-linked and it has

peaked in terms of its wideness and then it gives you some clues especially if you look at the european data today. it's been referred to and their pmi was lower, 46.8 verts us 47.9, but since it was better than they were looking for. that's called an improvement and it's twernt months under 50. i guess you could find a silver lining and what did it do to the euro, check it out and looks like it wants to open it up to november and you see the left side and right side, and this is the formation you'll look at and just drive a horizontal line and many currencies have re-established the range-type trade and it was breaking away from that a little bit as it continues to slip again. jim, back to you. >> there we go, carl, see? rick agrees with me and it airnt so bad. >> between euro, the gold's off

17, the dow's up 57 here. >> it's been down so long it looks up to me over in europe, carl. >> when we come back an exclusive with bcc, howard lutnick. what does that mean for the trading landscape and bgc. take a look at early movers and not a surprise. humana, and cigna on the list. >> want to show yore e pad extra love in why not use the cnbc cover signed by the entire "squawk on the street" gang, well, it can be yours if you can guess friday's non-farm jobs number. tweet to @squawkstreet. oh, yeah, you have to be at

least 18 years of age to enter. sorry, kid. for all of the official rules and details go to sots.cnbc.com. you have until 8:29 a.m. friday morning. good luck. i know what you're thinking... transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for. with xerox, you're ready for real business.

welcome back. straight from the opening bell marking the sixth annual autism awareness day, bob any suzanne wright, our good friends and the founder of autism speaks and bob served as vice chairman of cnbc, joined by holly robinson peete. mat yas, my grandson. say hi. >> hi. >> it seems like every day we see a new study and survey about autism. what have we learned in the last year? >> we did a stud ney korea over four and a half years and it basically was one in 27 and one in 25 boys and that's probably the right answer. the latest one you just saw was one in 50 in the united states and cdc will probably motivate

itself, and there shouldn't be any doubt about that anymore. the issue is how -- why, and how can we provide services and help? the one thing, carl, of autism and people distinguishes unlike cancer and others, the treatments are very, very expensive and most of them are borne by the parents and the services are very expensive and most of it borne by the parents. there's almost no financial assistance to these families as there is to diabetes and other things and that's the killer and in terms of community that's the thing that hurts. i want to say one thing. our national sponsor is toys "r" us. they've been with us for seven years and they are the largest and we want to thank them and dollar general is also one of our largest. we have many other, but those two and now major league baseball, we are very, very proud to have this arrangement here, as well. >> we are seeing again, it's a one to one state issue, school board issue and how is it to get the law firms to be able to

bring the suits to make it so there's fair treatment for families for someone with autism? >> part of the organization, because a lot of us are lawyers. we started a federal legal appeals program and we get on a pro bono basis the very best law firms in the world dedicate resources and we've taken in many cases, the supreme court. we have three major victories here and we're in appellate courts all over the united states. and we look for cases that are blocked. it has to happen faster. these people have to catch up. they need to be treated fairly and equitably and evenly and that's still not the case, but we're making a lot of progress. >> suzanne, you want to walk me through where i think. i keep thinking back to where awareness was before you two started this? >> we're in a different world now. >> i couldn't believe it here. bob was running nbc and we got the diagnosis of autism and i said what's autism?

and that was just eight years ago. in eight years, now we're lighting up the world. we have 93 countries. we are half way there. next year we'll have the whole world. we have 8,000 buildings around the world so we're grateful for the awareness, but the world is changing and unfortunately, the world is changing and the whole world has autism. >> the international space station. we had that last year. >> holly, can i ask you what drew you to the cause? >> my son has autism and he's 15 and i'm a proud board member of autism speaks. i've learned so much from bob and suzanne, advocating for families affected by autism and happy to be here and happy to be a part of autism awareness day. >> it's nice to have sports onboard. >> major league baseball are the leading science and advocacy for autism and lizfeld who heads the

organization, it's been fantastic and all of our clubs are committed to doing an autism awareness day and we're committed to do that. >> great job! >> thank you for everything! >> bob and suzanne wright. "six in 60" coming up next. the little moments that make life truly amazing. that's why southwest worked hard on the little and big things to build a better in-flight experience featuring access to wi-fi, live tv, and updated cabins. getting there just got better. we are southwest. welcome aboard. a confident retirement. those dreams have taken a beating lately. but no way we're going to let them die. ♪ ameriprise advisors can help keep your dreams alive like they helped millions of others. by listening. planning. working one on one.

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>> and happy birthday to marvin gay. >> the best star-spangled ever, nba, all-star. >> yelp's number one. >> cantor says recommended away from this. yelp is the best mobile device. that's why people like it. >> nordic american, nat. >> he does another one and buys another ship and buying 1.5 at least on the secondary. >> astrazeneca. this is a high-yielding stock and they let go a lot of people and it looks like earnings momentum there. >> hanes, swap out of hanes celestial. it has tremendous momentum. >> i found this shocking. the last mid-quarter update was very strong. i don't know what could have happened that quickly. >> and you mentioned you were in

an urban outfitters. >> headquartered in philadelphia, and i've got to tell you, the stores look great and anthropology is a play. >> what's coming up tonight? >> waste management. this company has been talked about as maybe doing a real estate investment trust. they run their trucks on natural gas. david steiner has been a visionary and he givious a good yield and i cannot wait to speak to him. >> interesting what they've done in landfills. >> methane comes out of it and don't forget, this is a commercial real estate play. sandy, has hurricane sandy produced a lot of debris? that's something we're finding out. >> there is a plant powered by methane. >> got to hand it to our country. we're figuring this stuff out. >> we'll see you tonight at 6:00 and 11:00 p.m. eastern. tech stocks lag in q1. can they get their mojo back in q2?

marc faber, what's he most bearish about right now ? we'll talk to marc after the break. wiof back pain...winge and a choice. take up to 4 advil in a day or 2 aleve for all day relief. [ male announcer ] that's handy. ♪ [ male announcer ] that's handy. what's the "new" in the new new york?. a new property tax cap... and the lowest middle class income tax rate in 60 years... and a billion dollars in tax breaks and incentives. new opportunities for business. over 250,000 new private sector jobs were created over the last two years. and 17 straight months of job growth. with the most private sector jobs ever. lower taxes, new incentives, new jobs, now that's news. to grow or start your business in the new new york visit thenewny.com

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the moment you land. it's just another way you'll be traveling at the speed of hertz. welcome back to "squawk on the street." we are about 25 successes s

we are about 25 successeseconds from factory numbers. we had ism come out at 51.2. we don't often follow all of the regionals. we follow all of the biggies and this was a big lower than the 58.8 last look. we are looking at a stock move up, pushing rates slightly higher and the survey says february factory orders were up 3%. that's pretty close to expectations which were between 2.8 and 2.9%, and our last look for january originally released it down 2% is now only down 1%. carl, back to you. >> all right, rick. thank you so much. rick santelli. i want to get a quick check on the market reaction to the factory orders and the dow which has hit a new intraday ridiculous high has done that for 12 of the last 20 trading sessions, unbelievably. we are now at 14,653 and the s&p is up nine to 1571 and don't

forget the intraday record there 1576. chairman and ceo howard lutnick. his company is selling the e-speed trading network to the nasdaq. what does that mean going forward? >> are we in store for a turnaround in the second quarter? our top tech fund manager tells us the names to play now. from park avenue to try rebecca,s fiscal cliff is over, and the aftereffects of the penthouse cliff is felt in manhattan. he'll take us inside new york's uber deluxe apartments post-cliff in a matter of minutes. >> all right. we've got some break news right now on general motors. the company out with its march sales numbers. cnbc's phil lebeau joins us now and he's got a special guest. >> we are joined by kurt mcneil. thanks for joining us when the sales up 5% is lower than what

the street was expecting and how would you characterize what we're seeing in march and the consumer going into the showroom? >> well, phil, you know, the positives still outweigh any of the negatives out there, any of the uncertainty in washington or any of the international events, housing, jobs, consumer credit and a stock market performance is all leading to some good business. >> you're looking at utility sales up last month. i believe 31% for the quarter, easily, the segment that led the way versus cars and trucks. what is it about that segment because we're seeing similar numbers from ford and automakers. what is it about that that's attracting the buyers and has people rotating into that segment? >> yeah, i think, you know, we've been talking about housing improving which has led to pick up sales here recently, but i think we're starting to see the american family return and start to shop a little more. that's why you're seeing

mid-crossovers and small utilities all up in pretty decent numbers. >> kurt, you have the desupply for pickup trucks at 117, that's up 20 versus where you were at the end of february. i know you've been up and you've been down as you wait for the new release of the silverado and the sierra. so it brings up the question from people out there. do you have to goose the market at the very end to start off loading some of these before the next batch of redesigned pickups come in? >> i think slow and steady wins the race. we're still very confident. we've been working this plan for about 17 months now. our pickup sales are up 21% in the first quarter. we still feel like we're in a very good place and work in a very good plan. >> kurt mcneil head of sales for general motors when it reported an increase of 5%, more than what the street was expecting.

it looks like when we look at march auto sales overall an increase there of between 6% and 8% for the month which a lot of people will look at and they'll say, you know what? we'll take that slow and steady growth. back to you. >> thank you, phil lebeau. >> bgc is selling the benchmark u.s. treasury, to nasdaq omx group for nearly 1.3 billion in cash and stock. bob grienfeld said the deal is about believing the government will spend more money than it takes in. >> we think that the size of this market will grow every wrong and every month they do a treasury option and the amount of dollars outstanding right now is 11 trillion and the reasonable forecast has it growing at about 16 trillion. we look at patty murray's budget proposal and she has the deficit being cut to 160 billion of new

product and opportunity enlarging the market and you like that. >> howard lutnick is chairman and ceo of bgc partners. the reason he's smiling is the stock is up about 40% this morning. howard, happy to have you with us. why did you do the deal? >> the stock traded at $4 and it made no sense to us. we're an extraordinary company with great technology. analysts have us doing 8.5 million and the market cap was $1.2 billion so we took a small section of this company, $100 million in revenue and did a deal with nasdaq and sold it for $234 million and now everyone understands that it is more valu valued. >> you sold this for 12.3 times revenues. >> are there any comps out there on come to base that? where did you get that number?

where did they get that number? i would imagine it is down sharply. >> there were two big players in the treasury business and obviously lots of primary dealers and in a marketplace like company. bgc's fully lech ronnic benchmark business, the things that every day the two-year note is .24, that is on the platform nasdaq bought. >> it is the deepest, most liquid market in the world and it's time for us to express shareholder value and it will be worth in cash now than the market cap in yesterday. it was just an extraordinary value. our dividend, 48 cents a year and when you have the cash equal to the market cap of the company. >> you're asking a lot of questions and there were a lot of guys that are short the stock, but to the point

you'you're rasing and then you are taking in nasdaq stock for the next 15 years. what will you do? return it to shareholders? >> look, we have a great real estate business. we bought newmark and grubb and ellis. we have a grit real estate business to grow. we have other assets like our electronic trading business that nasdaq bought. we have other assets that people are really, really interested in and maybe the analyst will start to look at those businesses and value them better. our whole financial services business and we have huge, huge amounts of patents and my objective is to make sure that our stock trades fairly to the assets underlying it. our huge balance sheet and our 48-set dividend which is absolutely rock solid and i can't imagine anybody writing and we don't have the wherewithal when weir getting $1,280,000. >> all right. you keep saying that, and part of the steal to deliver stock over 15 years, correct, howard? having to do with tax advantages

with the nasdaq in the business, correct? >> correct. nasdaq gets to have deductions over time and they'll give us the stock over 15 years, but those are assets of the company. so we become one of the nasdaq's largest shareholders. so we think it's a great transaction for them and we're obviously rooting for them to do well with it it. >> do you think they'll do well with it? ? cantor used to do a lot of stock trading also and it was always a bond shop, but that doesn't particularly seem to be a good business, anymore, does it? >> the equity business, volumes are down, but volumes and equities will be back and bob grienfeld and the people at the nasdaq were right and the suppressing the volumes of trsh rows and with they come back and quantitative easing ends, people will talk about what a great

thing it was for grienfeld. >> at 12 times avenues? >> how did you get them to fix that? >> when you go into fixed income, the platform they bought is a spectacular entry point. we are joints in fixed independent counsel. it's good for us and over time people will return to respect the transaction that he's made and we're trying to make it very clear to our shoulders that we're theer make them money and our stock's 40%. if you think a 48-cent differ denned which is rock solid and why wouldn't the stock be higher and 96% of the dividend was without tax. we are a very tax-efficient company and i think our shareholders will be very, very proud of the assets we have and how well we do with them. >> your sheer enthusiasm sent it

up 7%. howard lutnick, as always, great to have you. >> great to speak to you. technology talking as the big laggard in the first quarter, but is the sector ready to rebound in q2. we have the answer, and should you roll the dice on macau. macau is the place to be for the next big gambling boom. we're back in a couple of minutes. >> want to show your ipad some extra love? why not use the cnbc cover signed by the entire "squawk on the street" gang. well, it can be yours if you can guess friday's non-farm jobs number. tweet your guess to @squawkstreet and don't forget the #nailthenumber. you have to be at least 18. sorry, kid. for more detail goes to sots.cnbc.com.

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while the s&p was up last quarter, the tech sector was up, and apple was up 20% during the same period and they removed apple from the conviction buy list and then cramer said this

this morning. take a listen. >> apple is becoming the jc penney of tech. >> they're going to hope that everything is key on joe fresh apple. >> clearly jim referring to perceptions sur rounding tech. the question is what's next for the sector. kevin land is the ceo of the firsthand technology value fund and capital management. >> welcome back. >> thanks. good to be here. >> we've had buybacks and decent growth and we've had div hikes and tons of cash and what's it going to take for the sector to start doing leadership. >> it sounds like for apple specifically, all i can say is it's never a pretty hand off when you go from the growth investing crowd and that leads to the chart we've seen lately. >> growth in tech is always about new products and what we've had for the last couple of

years out of apple and there's not a new product which is the gotta have thing that everyone is buying right now. >> the dearth of new products or the inability of new products to drive share and is that a broader comment on where technology is right now? >> no, no. take the comment broadly. if you look at the decade of technology, there's a lot of great innovation, but if you look over the course of a few months or sometimes a whole year, there's not always a blockbuster product out there and that can give you dull spots in the growth curve and i think we're going through one of those right now. >> everyone is hear budget wearable products whether it's a watch or you call it something else, that's pretty fascinating and it's spurred by cheap, sensor technology. the problem is a lot of the innovation is happening in

companies that aren't public yet. >> if we put on our blinders, we don't see it now. if they're not able to meet consensus over the next couple of quarters, we've seen what happens with social and groupon and facebook close to the lowest levels of the year. what areas of the sector are you most interested? >> first of all, i'm not predicting that apple will miss its numbers. >> no, but a lot of people are. >> fine. fine. let's hope about half, but i guess there's good innovation going on and we'll see how much people really embrace them and your they just think of the piece they put in their ear, it cook on the belt, and you can

turn your smartphone into the personal hub of innovation and it could be really will cool. i just don't think it will save you from this earnings season. >> netflix, the biggest gainer on the s&p for the first quarter and it's doubled in three months. bubble here or not? >> you know, we've been in and out of netflix since -- gosh, probably 2003 and, you know, i find it fascinating and i get pushback even in our own shop that it's too expensive and that they'll have to pay the contend provider, and i can't shake the notion that the stranglehold that the cable companies have on the u.s. households is loosening and there's a lot of cash there and that's just a fascinating area. netflix has as good a chance as anyone at coming out on top in that struggle. that's clearly a fight we'll

watch closely, believe me, both from an inhouse standpoint and watching the stocks compete against each other. kevin landis joining us from san jose to talk tech. speaking of tech billionaire -- speaking of tech billionaire investor carl icahn, we were aren't talking about him, but he take a 9% stake in nuance communications. it uses speech recognition as part of the siri voice recognition feature. they're up rather nicely on the 2.9% passive position that mr. icahn took and all of this bringses us to this morning's squawk on the tweet. what would siri say to carl icahn about her taking a stake in her parent or in her inventer's company. tweet us @squawkstreet. we'll air your responses throughout the morning and would it be in carl icahn's voice? >> that was my first question. >> could i provide the voice

interpretation. >> you know, you don't want to do it too much because then it gets stale. the impact lessens. >> i'm not going to do it right now. >> looking to buy a new place off pack avenue? perhaps soho is more your style or the lower east side. before you do, you'll want to see how much inventory buildup the island of manhattan may have and we'll talk with robert from high end to low end. some of the markets and the dow 75, a new intraday high. back in a minute. but we can se your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

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we promised you before the break that we'd give you a check-up on the state of the manhattan real estate market. our own mary thompson is live on the upper east side with all of the latest data on the city's inventory, the closings, the pricing, and the lack of lit or the east side versus the west side. mary has you covered. >> reporter: low inventories is one of the prime reasons we're

seeing a healthy real estate market here in new york city and mortgage rates, high rents and the strong local economy. here's independent appraiser, jonathan miller. >> the year over year numbers are up in terms of activity and price, and i think that's reflective of better conditions we're seeing now than a year ago. >> a year ago, this was just to give you an idea, inventories are down 34.4% from last yore's first quarter and that's a 12-yore low. total sales of 6.3% and the average days that an apartment will be on the market down 13.2% from last yore's first quarter. new york is reflective of a nationwide trend. miller saying many homeowners are aren't motivated to sell, because they bought in the peak in 2008. they have negative or low equity and they couldn't trade up if they sold now so there is no reason to. >> that should change as prices

firm. first quarter data is mixed. declines noted by some real estate agencies set to be used by the firms and second to the rush of high-end closings that were accelerated into the fourth quarter so sellers could avoid paying higher data. the median price of 5.9% to over 820 thousand and stevens telling another story and the median price down 5%. on average, elliman, up 5.9%, and down 16% to over 1.2 million. brown harris pointing out that in the fourth quarter there were over 50 sales of $10 million or more compared to nine in the first quarter. so that's behind the decline in those first quarter average prices. however, the yot outlook is for prices to firm in large part because these inventories are going to remain so tight. guys, back to you.

>> our mary thompson uptown and from the low end to the high end in new york. >> is uber lux the word? >> when you uttered it, it became a word. >> the penthouse plummet post-fiscal cliff. >> the cliff is long over, but what i call the penthouse cliff we're just feeling the effects of that now. wealthy homeowners around the country raced to sell real estate in the fourth quarter to beat that hike in capital gains and especially true in new york and the very top end of the market we're talking multimillion penthouses here. those saw record sales numbers in the fourth quarter and all of that test in the fourth quarter starved the first quarter. all of that business was shifted to the first quarter, so the start at the beginning of this year, sales of apartments of $5 million or more fell by more than half to $347 million in the first quarter. that's where they had the

biggest fall crashing to $139 million, down by 70%. so that was really the big jump as mary talked about before. brokers tell me that after working 20-hour days in december to close all of those deals their phones are now dead. we'll see whether things pick up in the spring season which we'll see, but right now the very top end of the market which is so discretionary and people are saying, look, we beat the taxes. we closed the deal, now let's wait. >> those are people that had embedded gains more than half a million because that does not get taxed if you move into another residence. >> that's reit. >> and they were trying to beat the increase that went up 5%. >> so they're getting 8% less off their capital gains and this is not just real estate and we're seeing the effects of this. >> businesses were sold in the fourth quarter ask that's one

reason m & a and the member of deals were the lowest in the first quarter since 2003. there was a huge economic shift that we're starting to feel now of economic activity that was supposed to happen now in the first quarter that actually happened in the fourth quarter. that will affect tax revenues. states will get all of this money in april thinking it will repeat next year and it won't. >> it's an amazing example of policy affecting economic behavior. in some ways good if you managed to close it at the end of last year and in some ways not so good. >> new york is its own market and certainly the high end whether it be hedge fund managers or others. it's unlike anything else in this country. >> absolutely. i did speak with realtors across the country when you're talking about miami, and ski homes. this was across the board and the walingy said when, and they said i'll pay cash if you can

close the people quickly and this was across the board which is a small number of homes, but dollarwise it's a big part of the market. >> thank you, robert. stay right there. don't go anywhere. still ahead, we have marc faber. he pronounces it differently, marc faber of the gloom boom & doom report, what worries him about the second quarter? we'll hear from the man himself next. plus lobbyists for healthcare insurers helping to change the payment rate for the new medicare program and we'll get the details of the new plan and why it has had such a positive impact on some of the names you're looking at right there. n. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance

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one hour into trading and here are stories we're squawking about. 7:30 on the west coast, 10:30 on the east. shares of hp 55% this year. kimberly-clark any clorox among the stocks hitting fresh all-time highs and the commerce department says factory orders rose 3% in february. that was boosted by demand for aircraft. major victory for health care insurers. the centers for medicare and

medicaid services releasing a final estimated payment growth rate of 3.3% for insurers. for more on that ruling we want to bring in bertha coombs. big reversal on these payments. >> unprecedented. analysts are raising price targets and after that big reversal, and which is now projecting growth in the medicare advantage. by all accounts, it represents the best case scenario. jefferies analyst says it gives better visibility on 2014 earnings and it called the reason for the cms reversal unprecedented and the agency went from a proposed negative 2% growth rate in medical costs to a positive growth rate of over 2% after changing its calculation on next year's budget. by law, reimbursement rates for physicians are due to call 24%

and congress will again find a so-called doc fix and those will be unchanged. humana, the new assumption still means rates will be lower in part because of new risk-adjustment factors under health reform. this morning humana ceo bruce brussard praised the decision, but says it will be negative in some markets and he managed shares to a 2-month high because without it the impact would have been a drop of 7% or 8% for 2014 when all was factored in. citi analyst carl mcdonald says it's likely humana now will be able to maintain its target of 5% margins and grow membership. the cms number crunches saying they oppose the recalculation, but they were pressured by secretary kathleen sebelius. guys, that has seen as a big win for the industry and also for the 14 million seniors who like

these private plans and worried that insurers might drop out for 2014. >> important and powerful con sfich wensy. no doubt. >> let's talk u.s. markets here and the major averages closed at a record high for the quarter and one believes it will end badly this year. marc faber editor of the gloom boom & doom woreport. you see this ending badly this year. have you put a timeline on a correction,a i major correction that you see? >> i think i spoke on your program months ago and i said either we would have a correction now and then, or no correction and a blowoff like in '87 and what concerns me real willy is that most foreign marks

have to form since january, emerging markets are down 10% and your honor eeuropean market grossly underperformed. in other words, the u.s. is the only game in town. each time there was only one game in town, and in 1997 to 2000 and commodities in 2008 and then emerging markets. i'm very cautious about the u.s. market and i think we can very well have the crash from the summer onward. >> i think on the last appearance in early march, you're worried about how you just described, but you're not short u.s. equities, is that still true? >> yes, correct. >> i'm not sure about u.s. equities because we have this money printing which obviously

will lead to misallocation of capital, and i would like to remind you today or today someone published an article with the reviews of stockman, if the stock market makes a new high, things can't be that bad. the problem is that 92% of financial wealth is owned by 5% of the population. in other words, the majority of people don't own meaningful stock positions and they don't benefit from a rise in the stock market, but they are being hurt by rising costs of living and we all know that the real income of the median household is going down for the last few years. there was another thing i worry about. we're making new highs, but a lot of important stocks like ge, ibm, fed ral express, intel,

merck, oracle and the homebuilders are lower than in january or not to march higher than last november. so we have a narrow leadership mostly concentrated in stocks like johnson & johnson and procter & gamble. in other words, consumer stocks. >> marc, ge was about 21 in november. it's 23 -- it's near its highs. y feel like you've made a number of different arguments and i want to come back to the u.s. market itself because the idea that the emerge markets are lagging and europe, we know, one would argue that the economic fundamentals in the united states are simply better, hence, why it is a place to invest right now given the multiple, given the prospect of earnings growth. clearly, you don't believe that's the case. >> well, the earnings are here and citing the official figures for operating earnings by

standard & poor's. they peaked out in the second quarter of 2012 at $25.43. in the first quarter of 2012 they were at $23.16. in other words, they were down 9% from the peak in the second quarter and given the poor outlook in europe and the slowdown in emerging economies which has been confirmed by companies like caterpillar and mcdonald's, i would say that the revenues would continue to disappoint and that earnings could very well disappoint quite badly, and concerning ge, let me just point out that ge on october 15th was at $23.225. yes. $23, and now we're at $23.22. we went down into november and then rallied. >> --

>> it did. you said november originally. >> marc, hey, it's robert frank. you mentioned the important point that outside 5% of the financial assets were owned by the top 5%. i think it's closer to 80% by the top 10%. either way, what do you think is the problem with having so much financial assets in the hands of so few and where does that lead us? what could the ultimate problem b. what do you think could go wrong with that rising inequality, if you look at what happened in cyprus and we can debate whether it was fair or unfair, but people with money they will lose part of their wealth either through expropriation or higher taxation. >> do you think that can happen in the u.s.? >> yes. it can happen anywhere in the world in western democracies

because you have more people that vote for a living than people that work for a living. >> how much could the wealthy lose in the u.s. if that happens? >> i think you better be prepared to lose 20% to 30%. i think you're lucky if you don't lose your life. >> that would be bad. there's no bailout for that, marc. no bailout to get you back your life. >> i've been defending on what you believe, afterlife, maybe not that bad. >> let's hope so. >> marc, always a nice dose of reality. good to talk to you. marc faber, from the gloom boom and doom report. bye-bye. >> no relation. fannie mae being pay you, the taxpayer, back right now, but it isn't. eamon javers will explain. they're making a lot of money at fannie mae $17.5 million.

>> all of a sudden, a big turnaround story at fannie mae and they have back years of tax losses, but they're not going to take that even though it will be profitable here for the foreseeable future and let me walk you through what the company said in its call. the 2012 results were terrific and that they were a turning point for the company annual net 7.6 billion just in the first quarter and they've paid back $20 ooh on it expects to remain profitable here for the foreseeable future and they said on this call that this is an indication that the housing recovery is well under way and all of these good results for fannie mae raise a question which is what is congress going do about the gses and the federal involvement in the housing market. there was some concern raised by fannie mae on this call that the

ironic result here could be that because of the good result, congress may actually slow down its efforts at some kind of housing reform legislation in getting the government out of the market because once these companies are generating profits, thatty becomes less of a problem to focus in washington and they'll move on into other things and a counterintuitive effect. >> fascinating story. a maker of bps products on the move. >> hi, joshing check out garvin and it has selected garm inas the global naff gigz provider for future mercedes benz models and it speaks to the success of the dashboard systems they've been rolling out. garmen doin 16%, but in the reason room. thank you very much, josh lipton.

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>> we want to take a closer look at gaming stocks which have been on a roll lately. over the months these stocks have seen nice gains. one big driver is macau. which our next guest says will soon overtake las vegas as one of the top gambling destinations in the world. funny, i already thought it was. is it already number one in any other way in terms of take or how much is wagered? >> absolutely. in terms of gaming revenue, macau is six times las vegas overall. when you look at asia overall it's taken over for the center of gravity and singapore is on track to outpace nevada or las vegas in terms of gaming revenue and several years down the word we see the philippines doing the

same thing. >> what is the biggest risk, in your opinion to that model continuing? >> in terms of casino gaming revenue for macau we see the number one risk being the china economy, of course. however, that's been a driver so far this year. in fact, there's a 90% correlation between vip in macau which is 70% of macau revenue and china gdp. so as long as we see that continue to increase we're bullish on the overall market growing steadily. >> david, hey, it's robert frank. i lived in asia and i wondered if macau could become an atlantic city in asia and it had its day and now that they have more money and more choices, will they go to places like singapore, the u.s. and europe? >> we don't think so at all. it's only the legal place to gamble in china and he's looking at the whole pro delta region. access is opening up and visa policies are loosening and we

see that continuing and remember, this is an asian culture and we see critical mass in macau and we see people that like to gamble. >> all right. las vegas sands has certainly been one of the key ways that u.s. investors have played this. what are the others? >> one we like a lot is mpel and when you put melco up with las vegas sands and then if you look thea the projects it has upcoming, and even if you put it on a timeline, there's a long way to go with mpel. >> not yet. >> when you look at a chart like that don't you have to start to wonder a bit and get worried? >> think. and continually we want to see consensus move higher on a name like mpel, with that type of momentum and that type of stock

chart. i think you'll see that. we saw march revenue come in today and it's an all-time record and i think you'll see consensus move higher from mpel and lbs. david, appreciate your time. thank you. >> when we come back, rick santelli talks profits and pennants after fannie and freddie posted their larger -- and take a look at the u.s. markets and the dow is up almost triple digits. back in a minute. ♪ ♪ want to show your ipad some extra love? why not use the cnbc cover signed by the entire "squawk on the street" gang. well, it can be yours if you can guess friday's non-farm jobs number. tweet your guess to @squawkstreet and don't forget the #nailthenumber. you have to be 18 years to enter. sorry, kid. for all of the official rules

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let's get to the cme group this morning.

rick santelli with the tuesday edition of "the santelli exchange." hi, rick. >> hi, carl. listen. there's nobody in the world that is happier than i am when i hear stories like housing bottoms and government sponsored zombies are actually starting to have a little bit of a profit, or through a potential tax maneuver they're going to garner an extra 60, $61 billion. listen, i think it's great. but there are some bigger issues here. in the end, if i underwrite every young person in the country's apartment, and after a year by the grace of god i don't lose any money, was it the right thing to do? i'll give you a better example. here's a better example. just because we're making money doesn't mean it's penance. here's what we do. okay. let's do this. let's blindfold me and let's me put me in an '87 dodge and put me on the freeway.

take the accelerator pedal all the way, full tank of gas, and if i happen to, by the grace of god, end up at my destination, is that something i want to repeat? of course, not. well, whether it's gm, aig, or whether it's the government sponsored zombies, or whether it's energy, if you don't have a plan or like the gses, in conservatorship, things happen statistically go right. things happen to work out, that doesn't forgive. that doesn't necessarily mean that we're not supposed to continue to try to reform them, use the updraft going on in housing to try to come up with a private sector transition and some of this is in the works. but you also hear stories like, hey, we have to get rid of ed demarco, so we have to put this in perspective to the bigger picture. right now, issues of trust in my

opinion are the biggest issues for so many within the government. and poof, you know, they make coins out of thin air. you have coins at the the central banks. well, in about 40 minutes we're going to have somebody from big coin with us to talk about cyber currency. i think that's going to be very fascinating, and it goes into this notion that it's difficult to tell reality. whether in currency, profitability or strategy. carl, back to you. >> cannot wait to see that, rick. that's up in the next hour. do want to show you the markets. the dow is up in the triple digits. that was the best in five months. auto sales have been good saul day for march, and of course, this is all happening despite downgrades of big names like exxon and apple. down to 1,476.

tweet time. apple uses nuance speech recognition technology in the iphone devices as part of the siri feature. there's a look at shares. having a good morning up 6%. what would siri say to carl about taking a stake in her parent company? tweet us welcome to the new new york state. what's the "new" in the new new york? a new property tax cap... and the lowest middle class income tax rate in 60 years...

and a billion dollars in tax breaks and incentives. new opportunities for business. over 250,000 new private sector jobs were created over the last two years. and 17 straight months of job growth. with the most private sector jobs ever. lower taxes, new incentives, new jobs, now that's news. to grow or start your business in the new new york visit thenewny.com at tyco integrated security, we consider ourselves business optihow?rs. by building custom security solutions that integrate video, access control, fire and intrusion protection. all backed up with world-class monitoring centers, thousands of qualified technicians, and a personal passion to help protect your business. when your business is optimized like that, there's no stopping you. we are tyco integrated security. and we are sharper.

. squawk on the tweet today. billionaire investor carl icahn having a good year. taking a 9% stake in nuance. this company does speech recognition with siri. what would siri say to carl icahn about his taking a stake in the parent company. you want to search for nuisance? please repeat. please be bill's friend. i was told we have one more, but i guess we don't. clearly someone is watching to know what i am talking about.

>> there was even more color. coming home to your mother crying. if only we had that every day. >> we said that many times. robert, you're not going anywhere. in the meantime the dow is up over 100 points. here's what you missed earlier this morning. welcome to hour three of "squawk on the street." here's what's happening so far. >> what is this deal all about? >> well, it's about believing that the government will actually spend more money than they take in. so to the extent the sl country -- >> it's a good bet, right? >> some time over the course of the next three to six months we could see a pullback of 5% to 10%. they said the dividend is going to increase. the buyback is going to increase. not enough. not enough. apple is becoming the jcpenney of tech.

they hope everything is key on joe fresh apple. hewlett-packard, there's hope. in the command center, younger people laugh at me. why do you carry that typewriter around with you, dad? i look at this and i think dinosaur. >> we take a small section of this company $100 million in revenue and naz doek sold it for $1.32 billion. everyone understands this company is widely more valuable than yesterday. >> we're close to the u.s. market. and i think we could very well have a crash the summer on ward. good tuesday morning. we're live with a check on the

market rates. the dow up 103 points almost. europe is back to work this morning. we'll keep an eye hon that. s&p 500 up at 10. that record once is 1576 and the nasdaq up 26 points as well. shares of ford spiking after the auto maker said shares were up 6%. and then there's hp falling sharply. the company's reinvestment needs renounced after years of restructuring that could structure profits. plus, streaming tv startup scoring a big victory in a quest to bring live television to your mobile device. we'll talk about what's next for the company. and then bitcoin may only be an online currency, but one man

trying to bring them to every day life with atm. we'll talk about where he plans to put his first machine and how it works. the dow a new record high. multiple stocks hitting new all-time highs as well and new names. just to name a few. the director of floor operations. is this coming back? why the buy today? >> it's more a levation. there's a not a heavy volume built in there. and i think more and more it's a psychology evolving about america. that's probably where you want to leave your money. and it's drifting in. i think we're beginning to see, not a hemorrhage of moneys moving around in europe. but a trickle here, a trick it will there.

that's why it's a levitation rather than market shot. >> >> many groups are saying the motion of multiple expanding makes sense because the economy is accelerating faster than anybody realizes. is that consensus yet? >> i don't think it's consensus yet. i think it's an approach. one of the concerns for the nervous and cautious has been that we have all time record profit margins. management is sharp enough to do more and more with less and less. if they can expand, people will have to move in. for now things are working out. just an offbeat thing. in japan he said today, well, maybe we won't make the full 2 pblgt.

so they've had a terrific run. if they're not going to keep going as strongly as he was going. we have a lot of undiscovered easter eggs. >> i think terrible is a good word. showing even more contraction and even more in the star economies. >> they are now universally below 50, which is a sign of contraction all along the front. cyprus hasn't been felt yet. the euro zone was developed on the idea of absolute freedom. transferability of goods, money, and now we're locking things up. i sound like the pr apoll gist for the nation, but the more you look at you think, things are not really that unsafe here.

>> right, relative to what's going on. we talk about politics every time that we're on. north korea rattling again. we think it's serious this time. it's almost as if it's not happening at all. >> >> and there is a rationality. people look and think, that's too disastrous to think about. e nobody will step over that line. and people think it may be a ploy. if i were to engage in negotiations with you in a logical manner, you might be table to deduce where i'm going and move away. and if i want to keep you guessing, however, all i have to do is appear to be insane. and they're doing a good job of that. >> i remember back at the

closing high people said, that's not nearly as important. >> no. they have gone past it. interestingly, the market is kind of self correcting. coming in this morning, it looks like they might be building a head and shoulders stop. we just punched through what the other top had been. they erased the potential negative. i think you get up around 1576, 1579, you're going to get everybody reskon figuring how they look at the markets. >> incredible way to kick off the month. >> if it happened yesterday i would swear it was april fool's. >> let's go to josh lip on the for a quick market flash. >> hey, carl. check out delta which is losing altitude this morning. the problem is delta cuts. the first quarter revenue was key. not as impressive as january and february. they are talking about lower

than expected demand. the stock is down just about 7% right now. carl, back to you. >> we're one step closer to being able to watch live television on our mobile devices. the company just won a big victory against broadcasters. the ceo will join us live after a break. rick santelli just got done talking some fannie. now he's going to attack bitcoin. >> i tell you what, i don't know what exactly to do with bitcoin. they don't look like these coins a bit. they're kind of in the ether net. what are they? why is this so exciting? the traffic on the internet is wild, and we're going to have jeff burwick and trying to put b bitcoins in cyprus. flying is old hat for business travelers.

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for the dow jones industrial average. >> another record setting quarter for the dow. up nearly 11%. the best first quarter since 1998. >> the rally goes on and on and on. >> if history repeats itself there will be strong gains ahead. >> every time we're up more than 8% in the first quarter the dow has ended the year positive.

a big legal victory for controversial streaming video service aero, the startup that aims to disrupt the television business. julia boorstin joins us to explain the implications. julia, good morning. >> good morning to you, carl. thanks to the latest legal ruling, aereo can roll out the service without paying the tv providers. federal appeals court approved the legality of the business models, which centered on the idea that they don't have to pay content providers because it

assigns each user a tiny antenna to allow subscribers to access free over the air tv signals. then they transmit live and on demand tv to any internet connected device. the ruling deny an injunction to shut down the service, which was filed by media giants, disney and nbc universal. they argue that aereo violates copyright laws. iac backs aereo but plans to expand to 22 other markets this year. nbc issued a statement saying the case is in the early stages, but we are confident the rights of content owners will be protected. but for now with the ruling aereo can expand nationwide while opponents watch to see how the subscription revenue is affected. >> julia, don't go too far.

we want to bring in the ceo, who joins us hire at post nine. good morning. it's great to have you. >> good morning. >> as an employee of nbc, i cautiously say congratulations. reading the decision from the second circuit court, it's pretty decisive and fairly broad. i wonder if you were surprised by the scope of their language. >> i think we were very happy at the in depth analysis, because it really is about the technology and if the technology is as we say, then we designed it to fall in so that was a great affirmation to see an in-depth analysis. you are trying to frame it as an antenna. you get television from an antenna, just as you would on a television. the fact that it's the internet is almost beside the point. is that right? >> there's nothing that says how long the cord should be.

so our argument is well, within law an individual could have an antenna, dvr, and there's no restriction on where that antenna is placed, as long as it's for the individual and controlled by the individual. yeah. i think it's seen that way. >> julian? >> chad, i understand you've been meeting with content and paid tv providers. >> if you think about it, the consumers today that was the deal that they had, as far as the spectrum brand. from our perspective, if you start and then open up the platform, because there's a tremendous amount of population that is entering the market, that is not taking the existing cable subscription bundle. so the goal from our side is to create a platform that any content provider that is not freely -- whose mandate is not

to provide programming over the air, can use the platform to reach these consumers directly. we think there's a tremendous appetite, because historically there's been a packaging, a vertical packaging between technology and distribution. we take the technology out of the equation and make technology universal so consumers get convenience, cost, simplicity, all the things they're using. you think about what's happening in the land lines and mobile phones. you think about in every way that the internet addresses a consumer needs. video is the next frontier in that equation. >> but given that you're in this legal standoff, with all the content providers, do you expect them to stik a deal with you to unbundle the content? >> i don't think we're interested in recreating the cable bundle. that's a big distinction and misunderstanding about the company. our goal is to stay away from it. there's a population in this country that is satisfied and happy.

there's netflix and hulu. what they miss online is this access to live. you have seen bloomberg tv partnered with aereo as well, and there are several more in the pipeline. so people out of the eco system that have great products, that want to serve the same segment, we think it makes a ton of sense to work with them. >> they say the decision alleviates your biggest albatross, which is allowing you to focus on expansion. what can you do today that you couldn't do yesterday? >> the company has always been focused on technology and consumer products. from that perspective, it's not as much. but it does give comfort to people interested in partnering with us, suppliers, buyers, any number of those people in the eco system. the further validation, the more validation, that's comforting. so that's good. >> are there areas -- i mean, could you imagine one day going

into content creation? and then i wonder if you view about this issue would change? you know, just to be very clear about this decision, this is absolutely what a consumer can do today. all right. a consumer can go get an antenna. they can go get a dvr. all we have done is simplified and miniaturized that. the area was never contended. we don't apply the same technology to cable programming which is provided by the cable providers. this is free. this is what the consumer has the right to. in fact, 17%, give or take, 17% of the population does consume tv this way. so who knows what the future holds? and the way technology is involved in everybody's businesses, it's going to be interesting to see what other things we end up touching. >> it's a big deal. especially in our business. appreciate you coming by very much. >> and julia boorstin joining us from los angeles.

>> is tim cook doing right by apple? we'll find out if his latest moves are what is best for the company? and what if the atm around the corner didn't give out cash? what if it dealt solely in big coins. first, one check on the markets. dow is steady above triple digit territory. and the s&p 500 up ten handles. [ male announcer ] how can power consumption in china,

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apple's ceo tim cook is book in the spotlight after apologizing to chinese consumers. after criticism from chinese media, they vowed to improve warranty and customer service. now the chi need media is singing the company's praises following the apology. did tim cook do the right thing by apologizing and what's in store for him in the future. bill george, ceo and harvard business school professor. also a cnbc contributor. bill, good to have you back. is this typical ceo behavior? >> well, i think it is tim did

absolutely the right thing. it appears to me this is a very well orchestrated challenge. you have china central tv. you have celebrities to blog attacking apple. i personally think it goes back to that he is caught in the inner governmental warfare after the obama administration challenged two chinese companies over cyber security, and i think this is a retaliation. so tim was being caught in the middle. he did the right thing, and it seems to have turned in his favor, and it's a new apple. steve jobs never visited apple. tim has been there twice. >> well said. it's not insignificant. a 1% move. we were talking about the way that google played controversy in china versus how apple is now

doing it. a market this size and this important, you almost can't fight that tape. >> no, carl, you can't. and i think hopefully they're learning from the google experience, which is not pleasant. they have a $20 billion business. it's 13% of their sales. it's growing very rapidly. if you look at the whole of a a asia, it's much larger than that. they basically behave as an exporter with multinational companies. they have to become more global. if you look at the executive committee, it's all caucasian american males. and they need chinese. they need people more sensitive to many of the issues in the markets where they live. other companies have done that and diversified their leadership team. it's time that they do that. he did respond well after the fact. it took him a couple of weeks. he should have responded right away.

and that's the biggest growth market right there. would you give them as good of grade for how he has communicated. the strategy for holding so much cash, and strategy for not making a big acquisition which people call on him to do day-after day. still a phenomenal amount of cash that they have. it's obviously an issue. i don't necessarily agree with dave. but i think he's right to raise the issue. i think they need to look at the balance sheet. they want to say, how are we going to treed our shareholders and what it will need to turn this thing around. it's a great company, but they're so visible that they have to really be responsive. that's got to be the new apple, being very responsive to their shareholders, governments, countries, as well as all their customers and, you know, we saw that in the desk top. thoef to be very responsive.

it doesn't sound like he is anywhere near seeing his own job in jeopardy. fair? i think he has done an excellent job. if steve were still there, he would be pulling back. i think tim is moving forward. but it would be helpful to get a little bit ahead of the curb and not wait for the curb to come at you. it's hard in the tech business. i'm very confident that tim is leading the company in a right way and building a strong team. now he needs to broaden and diverse. make him a true global company. >> there's no better analysis of management than when you speak, bill. always good to get your thoughts. thanks so much. let's take a look at the hmos today. some of today's best performers after that, reversal on medicare advantage. these names have led us all yearlong to a 7% move to humana and h&h.

will that rally continue? we'll talk about it after the break. welcome to the new new york state. what's the "new" in the new new york? a new property tax cap... and the lowest middle class income tax rate in 60 years... and a billion dollars in tax breaks and incentives. new opportunities for business. over 250,000 new private sector jobs were created over the last two years. and 17 straight months of job growth. with the most private sector jobs ever. lower taxes, new incentives, new jobs, now that's news. to grow or start your business in the new new york visit thenewny.com (announcer) at scottrade, our cexactly how they want.t with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office,

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the european markets are closing now. >> or they will close in act 40 seconds or so. markets closing, wrapping up the first trading day since easter weekend. they are working together on a breakup bid. that report overshadowing the pmi numbers we got and the unemployment data that we got that were better than expected

but still broadly negative in the expected economies. take a look at the markets. pretty decent moves. 1%, 2% in france. stock markets in cyprus also reopened for the first time in two weeks. published reports say lenders agreed to give the company a two-year extension until 2018 to give them conditions to meet the bailout. cyprus' finance minister has resigned after coming under criticism for his handling of the country's financial crisis. finally take a look at the your o euro. and gold, too, which is down about $18. speaking of which, let's get a check on commodities and energy. sharon epperson is at the imax. hey, sharon. >> reporter: hey, carl. you showed those green numbers across the board. we are seeing a rotation of funds out of gold and into equity markets.

we're seeing actually metals melt down across the board. a lot of traders pointing to the fact that we have seen weak economic data out of europe. that is cribbing to the weakness as well. that is also helping to pressure what we're seeing in the crude market. some of the data we saw on pmi from europe, that is also causing weakness, and in terms of u.s. oil prices, there is still concern about the pegasus pipeline spill. also add to that, concerns over the approval of the pipeline with all the environmental worries that are already around this pipeline approval process. keep your eye, though, on gasoline. that's a good news story here in the commodities market. and we're seeing prices at the pump come down. $3.64. that's less than you paid a month ago, less than we saw for the national average a year ago, by 30 cents or so. only three state where is the

national average is over $4 a gallon. and it's the usual suspects, alaska, california and hawaii. 60% of americans, 20% of the country, living this state where is gas prices are $4 a gallon or more. >> good to hear nor a lot of households. looking at the buying that we didn't get yesterday. >> europe helps us out. money is coming into the united states. yesterday volume was lousy on the first trading day of the quarter. it should have been a lot better. today the volumes are a lot better. europe is open, and the pricing is better. take ha look at what is going on. europe had a tough time in the last few weeks. so this is a one-month chart. here is the s&p 500 on the white line. and here is europe. the european index. the gap is pretty wide.

the tone has been defensive for two weeks now. leadership, health care and consumer staples, this has been going on for weeks now. look at energy materials. of course, there are your names to the downside. that's a tough situation overall. take a look. this is a very simple way to gauge this here. the top line is the consumer index for the last months. those are basically health care and consumer staple stocks. here is the index. and this is basically industrials in material names for the last month. this is what i'm talking about. the market has a very clear defensive tone for the last few weeks. the airlines have had an incredible run. the airlines are up 27%. we talked about how much more they're going to be able to. the surprise is on the downside, when we had 25% move up in the last couple of months. delta airlines down 6%.

the passenger traffic, what is called the unit revenue, came in weaker than expected for the month. so it was up 2%. they're expecting it up 5% or 6%. what happened? it's not clear, but i suspect that some of the restrictions on government travel cut into the travel. and it was a little bit more than some people anticipated. okay, not a big deal overall. but watch what goes on with the airlines as they report their traffic here. de delta will report a profit for the first time in more than a decade. up 7%. they have investor day going on. they said their three year outlook is going to be stronger than expected. not many companies go out three years. but revenues increase by 14% by 2015. pricing is improving. you'll pay more for an auto rental this summer. only two guys are left. hertz and avis. these are new highs for both of these. >> that chart going back a couple of years, unbelievable.

shares of hmo shocks jumping today after the medicare advantage reversal that you saw late yesterday. bertha coombs is watching that story. >> the expectation was the service was going to change the negative growth outlook for medicare advantage. but the reversal by all accounts was the best case scenario. hitting a fresh historic high. they see new assumptions lifting a big overhand on 2014 health insurance earnings. cms went from a proposed negative 2% to a positive 3.3% growth assumption after changing calculation methods. by law, the reimbursements are due to fall 20% this year. but congress will once again find a fix and doctor rates whether be unchanged.

humana surging to two-month high here. though the ceo warned in a filing that new health reform, risk rating and tactics will still have a negative impact in some markets. but analysts say the reversal marks a real victory. >> that's good because obama has always said that he wants seniors, if they're happy with the insurance plan to be able to keep that option. >> h>> along with the big names we get a lot of revenues from ama united, cig na and etna all hitting two-weeks high. the 14 million seniors on the private plans were really worry that had the insurers may exit them for 2014. back to you. >> it's been tough going on some of these names. they're up, down, up, down, but this is a decisive move. thank you so much. the dow hitting a new high. the s&p 500 making another run

at hitting the all time high. our next guest says we have had a great run but are right for a correction. mark klein with russell investments. mark, good morning to you. >> good morning. >> we keep hearing that we're right for a correction and it's just not happening. we've hit the equity targets for the year. so do you chase it? >> yeah. we have hit our equity tarlgts for the year. we haven't seen a 5% correction for november. usually we get 3% to 5% a year. i thought particularly with policy issues going on in washington. europe is certainly reminded us that they're not going away. we are ripe for a correction. certainly haven't seen it yet, and i recognize that the fed is going to continue to do their easing probably until the beginning of next year. but this market has run so hard, so fast, i city think somewhere in the time frame between now and the end of april we could have a 3% to 5% correction. >> earnings are just a couple of

weeks away. i have to imagine that the bar to keep the rally going, especially in the big performers year to date, i mean, the earnings are goichk to have to look pretty good, and the guidance is going to have to look pretty good. right? >> yeah, i would agree. earnings and the first quarter gdp number. for this market, as you said, to continue at this kind of pace, we need something big. we nid big sur prizes on earnings. we don't see that coming. maybe it's the first quarter gdp number. everything seems to be leading up. more and more folks are saying 3% for the first quarter. we're still in the 2% range. maybe if you have a jobs number of 250,000 or something, it's going to take something big, i think, to continue to keep this market at that pace. we keep waiting for that number. we need the proof with something big. gdp earnings is what is going to have to deliver it. >> i know you're still

overweight with health care. we've been talking about the story all morning long. do you try to ride this train to the extent that it's still going on traditionally defensive sectors? why not play some materials or some tech? >> yeah, i would agree with you. bob mentioned that this has been a defensively led strong rally. it feels like 1995 in that regard. it's been health care, it's been staples. it's been utilities. we need to have them come hay long now. it's time for the handoff. maybe one of the big numbers that we're talking about will do that. when utilities are trading higher than technology, this has been a market that's been up, and i meet with a lot of clients, particularly individuals, they have kind of come kicking and screaming into this market. and you see it with health care staples and utilities. they feel they need to be involved in it. and it's time. materials or technology. i think it's time for them to assume the leadership if we're going to continue to take this to a higher level.

>> we're definitely going to know more in a couple of weeks. >> we certainly will. >> do you know what a bitcoin is? if you don't, you're going to find out pretty soon. why bit coins could be the answers to economic crises all around the world. and later why you may want to keep your eyepad away from the kids for their own good. "squawk on the street" will be right back. how do traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. it's delicious.

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coming up on the half, an exclusive on the hedge fund manager who is schooling his peers, and just how he is doing it. what can turn the sectors around and the names that will lead the comeback? and two traders make their cases on the stock. the jury renders their verdict. we'll see you in 15 or so. sounds good, thanks. everybody is buzzing about bitcoin. rick santelli in chicago with more on that. good morning, rick. >> good morning, carl. i guess we need to start at the beginning. what is a bitcoin? a decentralized digital currency based on open source software that uses peer to peer connections for monetary transactions. and also, invented in '09 by a fictitious person. many believe he's a russian math

me tigs can i get any weirder than that? does this just show how much of a lack of confidence there is in banks? because this sounds a little strange. so now there is going to be potentially an atm where you can exchange currency for bitcoins. and the cofounder is our guest today. jeff burwick, welcome. >> thank you. >> wlets hear how bitcoin and all the interest. you supposedly have hundreds of these atms requested. tell us about your business plan. tell me how it works. >> it's weird how bitcoins came about, but that's the last free market on earth. in the u.s. that doesn't exist new mexico. there's no freedom anywhere on earth except for the internet. these are the interesting and exciting innovations that can

come from the free market. bit coin is an entirely new currency, kpleecompletely decentralized. all designed by the freet market. it's an incredibly exciting thing. enwe have come up with a bitcoin atm. it's been hard to get access to bitcoins. you can trade them over internet exchanges. but it's not all that easy to do. many people meet on graigs list and meet up. >> let me stop you there. now we have an atm. there really isn't a coin minted. when i go to this atm and have fiat dollars, i get a reseat of some sort. is ha that what i get? >> yes, you can just go up to the bitcoin machine. you can show a qr code or type in the code, if you would like, and you can insert fiat currencies into the machine. >> but it's all numbers.

there is no physical coin. >> no, there isn't. that's one of the good things about it. >> i agree. there's only supposedly a finite supply, and the only way the supply increases is through what's called mining. what is mining? explain mining to me? >> that's correct. the program is designed to work slowly over time you can mine bit coins but it gets slower and harder to do as the mathematical equations get more hard. right now there's 11 million bit coins or there will be. it's designed to eventually reach $21 million, and that will be the full limit. it takes processing power and electrici electricity. >> so it's easier to take $100 or swap it into a bit coin in your wallet. another issue, back in 2012, there was a bit of a scam.

$230,000 was lost by bitcoin holders, and i guess a little group was set up. so here's my question. we're almost out of time, jeff. who is the ghostbusters? i understand the central bank thing and lack of confidence. if something goes wrong in my bitcoin experience, who do i call? >> well, that's the great thing about a free market. all of those about the system as we know it. this is much more dangerous than anything bit coin has. >> i tell you, jeff, you have been a great guest. i know you trying to get the first one of these atms in cyprus. i want you to come back and give us an update on how it's going. thanks for being our guest. karl, it's all yours. i'm not sure that i'm convinced yet, i have to tell you. >> rick, i was just watching the comments on twitter. people still trying to get their heads around the notion. that was a great segment. rick santelli in chicago. is your child's ipad bad for

their brain? experts say it could be. we'll find out how that have the break. # ♪ ♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, oh, all the way ♪ oh, oh

market is off of the highs. dow looking at an ominous number here, 14,666. >> carl, nuance communications is the best performing stock on the nasdaq 100, best known for the siri mobile app. carl icahn, of course, disclosing a 9.27% pass of stake in a recent filing.

other tech stocks on the move, apple shares getting a bid even though goldman sachs removed the name from the conviction buy list. chip stocks providing a nice lift. raising the price target on shares of sandisk. and biotech stocks had been on a tear this year helping the broader health care index. hit new highs. big names include dandreon and virtex, jpmorgan morgan's topics in the large cap biotech space. back to you. >> thanks so much. it's becoming a very common occurrence in restaurants, grossgross grocery stores, parents handing over their tablets or smart phones to pacify their kids. as toddlers spend more time to pacify them, what impact could it have on their development. joining us from los angeles, the author of ibrain, surviving the

technological alteration of the modern mind. dr. small, good to have you with us. good morning. >> i'm a father of twin 3-year-olds. my wife and i wrestle with this every day. these products have only been around for a few years. what do we know about the long-term impact? >> we don't know a lot about the long-term impact though we have concerns because we know the brain, especially at young developing brain, is very sensitive to any stimuli from moment to moment. and if young kids are spending a lot of time on the screen that could interfere with their language development, it could contribute to attention deficit problems, and other issues that raise concern for pediatricians, psycho -- psychologists and psychiatrists. >> a lot of these -- "the times" wrote this up in recent days and they rightcited studies out of britain that looked at not just smart phones but television and they did find impact on conduct problems, emotional problems. is that something that is

endemic to smart phone or watching any kind? >> we haven't differentiated whether a small screen or big screen makes a difference. there's a lot of variation among kids. some kids are very sensitive to screen time. and i think what parents need to look at is what's happening with their own children. do they find they're more irritable, do they have less eye contact after screen time. those are kids that might be at high risk for problems. >> we continue to see marketers sort of 4hop on this bandwagon. fisher-price makes some cases that are meant for small hands to hold these devices. some parents might try to justify it by saying, well, doctor, they're on the smart phone, sure, but they're doing a puzzle, right? they're not simply watch a "dora" cartoon. will it make a difference or is is it more about having the iphone versus being alone or

having a conversation? >> i think it's a question of balance. we cannot restrict these devices completely, especially as kids get older. but we need to balance the screen time with off-screen time so that there's proper language development, so young children learn how to look you in the eye when they're having a conversation or notice nonverbal cues or be able to recognize emotional expression of a face. i mean, these are very important brain skills that are critically developed in young children. >> yeah. finally, doctor, when you're in a grocery store and you see a parent trying to get a couple moments of quiet by handing over their phone, what would your impulse be, to scold them, to say it's okay? >> i'm a parent. i know how challenging it is with young kids. and, you know, one could argue is this any worse than giving them crayons and a coloring book. we don't know for sure, but i

think the idea is moderation and balance. and, sure, give it to them for a bit of time but spend time with them having conversations, make sure they're playing outside with other kids. >> dr. small, great insight. appreciate your time so much. >> thank you. >> gary small with the longevity center t at ucla. be sure to tweet us today. carl icahn taking a stake in the icon maker siri. we are asking you what would siri say to icahn about his taking a stake in her parent company? we'll get your answers after the break.

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visit thenewny.com take a look at shares of nuance. they make siri, voice rick cognition feature. carl icahn has taken a 9% stake in the company. we're asking you today, squawk on the tweet, what would siri say to icahn about his taking a stake in her parent company? christopher writes, siri says, he is the quintessential example of the you want a friend on wall street, get a dog. jimmy writes, siri says, what is your nail the number prediction, mr. icahn. speaking of which, the jobs number is coming up on friday. if you want to nail the number send us your guesses at squawk street.

this is an,ipad case signed by us. no stock tips. that could change. new trend in the car collect that might surprise you. wealth editor robert frank is here at "post 9" with more. >> car collecting is all about the hunt and the discovery. the ultimate discovery is known as the barn find. that's when you open up an old barn or garage and find a rare vintage car. it's like the car collector's version of king tut's tomb and the barn find has become big business with it exploding, dusty, rusted out cars are now worth more than shiny restored cars. take this weathered 1956 lancia. auctioned off in january for $803,000. that was twice the estimate. and the dirt and the authenticity of this car was a big part of its appeal. now auctions america is selling the mother lode of barn finds. 42 cars from the