let's turn it over to "squawk on the street." all right, becky, thanks so much. we continue to wait for those minutes coming up at the top of the hour in just a matter of seconds and it will be really interesting, guys, to hear what is inside those minutes released early inadvertently yesterday and what it meant to the rally that we saw yesterday as the rally seemed to pick up steam. a hundred staffers caught it and i believe we're in a position to discuss what were in the minutes. >> i have the bullet points right here. the fomc discusses risks associated with the length and the length of the period of low rates. the ongoing assessment of costs and risks of qe necessary. they say low rates do not appear to have been accompanied by financial imbalances.

trends in some markets bear watching, according to the minutes. they'll monitor for signs of instability. economic data, they say, better than expected, but fiscal policy more restrictive. members also see the sequester restraining and aggregate demand or likely to do so and the jobless rates is elevated. members not confident of sustained improvement. so maybe towards the end of these headlines are the keys to watch here, right? what they say about the jobless rate, elevated and not confident of sustained improvement. >> substantial improvement is what many fed watchers and market watchers are trying to figure out what that means. sustained improvement, substantial improvement and that's the question with every press meeting. we did learn a lot. it is not clear that incrementally it will be that contained. >> it is a bad unemployment number. >> and that's probably the more

important point of all. >> we have them. >> you know what? in months past on the day the minutes have been released the markets have been spooked for the last two releases of the fed minutes. people said oh, my god, the market went down those days. >> you know what? release them at 9:00. stop with the 2:00 nonsense. stop trying to manipulate the stock market with the number, i know they don't want to manipulate, but that's the effect. the congressional staffers. the congress people have to file their trades. let's get the info. >> you're following minute by minute and you are on so often during the course of the trading day, and i want to take a look back and see if there was any move. >> i'll have to look at the intraday chart. >> i'm not kidding -- it seems as though the market picked up yesterday afternoon as the rally added some steam.

>> let's put it this way, these fed minutes is no reason to sell stock. is it a reason to buy stock? >> i think you can say it seems like a positive thing. look, this is not like a kpmg memo telling you what to do with skechers. it's not that good, but it's pretty darn good. >> do we have a chart of the s&p 500. >> an intraday yesterday will be interesting to see. >> steve liesman's on the phone, right? steve, have you had a chance to quickly look through these. what do you think? >> i think there's an interesting question in there. i'm cutting and pasting the most important parts as i see them, but there is a discussion in the policy statement that gets a little more support for early tapering of q ethan we originally thought and i'll read you the question who said a few members who felt the risk and costs of movement would likely make a reduction that's

appropriate around mid-year. so all we know beforehand is that john williams had suggested for economic reasons that his economic outlook suggested a june beginning of the tapering. we now can add a few members to that saying you know what? because of the costs and the risks i'm onboard with the mid-year tapering and the outlook for labor market conditions improved and that's the john williams camp. it's hard for me to count several, but i think there may be three, four, five people in the camp there. >> i an, they got that number that came out since then. if i got this thing on the congressional staffer and then i'll say, you know what? they were thinking of pulling back so i'll go buy the futures because i'm dealing with the futures that indicate some guys

got it earlier and there was not a reason to sell the market. noog in there says you should sell the market. >> that may be true, but if i underscored one of the things that you said in that it was not related to the labor market. there is a small contingent, two, maybe three numbers just because of the risk and the second section that i was going to talk about says they already viewed the costs and outweighing the benefits. >> right. >> steve, you're going in and out. >> we did have a rally and look, his point is an important one here in terms of this question that we constantly represident and we did it much more often before we got the nasty employment report. that's a parlor game that has

cost viewers a fortune by emphasizing when the fed will be finished, you missed the bristol-myers run from 22 to 40. >> not to mention the ten-year has been up. >> we can play this game. >> we can play it. it's like playing clue. it makes you no money, mr. mustard, colonel mustard. we can focus this endlessly or figure out the first solar. we can talk about the upgrade of ibm or we can talk about these fed minutes, but i want to try to help people make money and it has not made people money. it just hasn't. the rally over the next several days and weeks has certainly made people money. it was not focused on qe-2. maybe china is not as bad as we think and it was just the new year. maybe the fed is flooding the world with money. >> no maybe there.

they are. >> there are countervailing forces to the fed including that i don't think they're falling off a cliff. >> let's turn to the markets here, given where we are. what we now know from the fed which is going to be part of any calculation that people are approaching not just today with, but the weeks ahead and earnings season, begin, let's call it in ernesto friday when we hear from the like of wells fargo. >> oh, boy, will that matter. if rates are low you know they can't make a ton of money and that is the way to counteract the low rates. >> the market and the rally itself which has largely, jim, been led by these more defensive sectors, whether it's staples, utilities and health care. are there indications that we're starting to see that maybe you get more cyclical play along? >> yes. >> if you do, what does that mean for where we could go? >> the torch has to be passed on because you're buying these

stocks. you're buying bristol because it's the most generically positive name. it's up 30% in the year and here you have a stock that is basically selling a huge multiple to the growth rate and you probably want to go to the companies selling at ten times earnings. >> who is selling at ten times earning. >> i'm trying to nail the rotation. i want the fed in the back growth fund. i'm putting the fed in the background. the congressional staffers put it in the background and now i've got it and i'm focused on the ten times earnings stocks. china is not falling apart. >> all right. so there may be some sort of a shift from let's call it really safe money into the cyclicals. >> yes. that is the gold call by goldman. they're saying short gold. i always love short gold. gold is what you buy when you think things are not that certain. goldman is saying things are much more certain. it's kind of a gutsy call, but

it would explain why you would want to rotate into clemens. alcoa did say that china was on course. the trucks that use a huge amount of aluminum did talk about the aerospace numbers. alcoa gave you the green light to buy everything other than an alcoa. you saw the cyclicals start with that. and then you got the chinese number despite what 60 minutes says about open housing and then you get the number that they're importing. i say good-bye to cyclicals. >> right here. right now. all right. >> the materials weren't good yesterday and the miners on the china. >> oh! >> they were up big yesterday. >> how many people were downgrading the vail resorts.

>> it was jerry vale, too. >> we have liesman back on the phone with hopefully a better connection. steve, you want to pick up the conversation? look, the bottom line here is do we really have any reason to believe at this point that the fed's going get out of the way sooner than we want or the the bulls would want? there is really no reason to believe that, is there? >> scott, i think there's a question as to what information are you trading on and i was interested in listening to jim owe that score. >> jimmy? >> at one point, scott, the market will be trading on the fed tapering down its purchases. >> did we lose him again? come on, steve. figure it out, wireless! come on! get in the right spot. they do raise the question of the sequester having a real

impact. steve has all of the minutes in front of him and he's the expert, but that has got to still be something that at least is a shadow on the market. all i'm saying is it's a-month-old. if you've got it you have to imput that we have earnings and an employment report that confirms bernanke's worry and not only that, and there are a lot of guys against bernanke, but last i looked he is the chairman and he's been holding sway. i say you put the fed in the box and you focus on earnings because the fed is not going to be relevant. it's china may be coming back and it's u.s. not that bad and it's housing doing better. do you see the mortgage applications. it looks like that wasn't killed by the sequester and you do have a cold month of march. >> and family dollar with people not getting refunds quickly enough from taxes?

>> dollar tree. >> dollar we should point out will be down this morning. >> see if dg is down and dollar tree is where i get my candy. i tweeted that atjimcramer. >> as a result of the sequester. maybe that startings to show up more so in data. maybe that's what ends the rally. i don't know. >> no. i think that's the opposite and i think we get more layoffs and that keeps bernanke from being on the front page. the president in congress are not going to accomplish anything from 1994 to 1998 was bountiful. remember gridlock? gridlock is fabulous for stocks. >> right. >> it gets them off the front page. they're immigration. they're obviously talking about gun control. you notice they're not talking about anything leak money? >> i do. i do. >> other than the budget being rolled out.

>> that's a kabuki thing and now we have the budgets from the senate and the house and that's the process although they're never going to agree. everybody can follow their own budget. >> okay. yeah. you can choose. many when the dividend taxes would be tripled? the real estate investment trusts and now that money is finding a new place and it's getting that the numbers that -- i'm going to mention a stock that will knock your socks off. it has n been mentioned lately, apple. earnings have been cut so much. the analysts now have been divided into two camps and there are the freddy krueger analysts and the jason analysts that have taken number cuts. the numbers have all been cut, apple so if it doesn't screw it

up, it won't go down anymore. >> i'll bet we'll revisit that theme. >> if numbers are cut ahead of when companies report those companies may not form where there are numbers that haven't been cut. we started the show in a rush and you may have noticed that scott wapner is in for carl quintanilla. we have cheryl palmer. >> she's the best. >> she's here at the nyse. yes, it's true, we'll talk to ceo cheryl palmer after the stock starts trading and on monday, one of the heavy hitters in media, john malone, do you have this interview? >> when you go through the companies controlled via liberty or directly by mr. malone or he has a significant stake in. it is truly extraordinary and so many things to talk to john

about. take a look at futures here as we now have the fed minutes five hours earlier than it had been anticipated. of course, some on congress got them yesterday. more from post 9. "squawk on the street" after this.

welcome back. we got those fed minutes at 9:00 a.m. we spoke to steve liesesman who knows there is a wired telephone in his home and he joins us yet again. hi, david. sorry about that earlier. i got about a thousand calls and this is the only one that didn't work. you guys did all of the talking, but i think it's interesting. we sort of knew before and there is a very active debate going on at the federal reserve over whether to wind down qe in the summer and there seem to be two reasons motivating the federal reserve to have this discussion. the first is improvement in the labor market and the second would be a sense that the cost of the program to the federal reserve or to the economy could potentially outweigh the benefits. i still think that the majority of the board is in a full steam

ahead mode here in terms of thinking that this goes all of the way to the end of the year. i just think that if the discussion, for example, on a scale of one to ten was, like one or two before. maybe now it's a three or four in terms of the intensity of the debate and maybe four or five until whether or not there is a mid-year slowdown in qe. now, if jim is saying that the fed is going to be full steam ahead all of the way through the end of the year, then i think there's a little more risk to that outlook, but the question is when the market starts to think, okay, i'm going to make a better bet here of qe ending towards the summer and when that starts to be internalized in stocks. in jimmy's department i can tell you what the risks are and what the debate is this year and it's about a mid-year slowdown in qe. >> thank you, steve. i'm worried about a major slowdown in the economy. if sequester does take hold and if we do have lots of layoffs,

if the bears are right about the earnings then i think the issue is -- are they not worried enough about a slowdown? >> liesman, steve, are you still there? >> yes. absolutely. >> it seems to me that the thing you really need to watch for is when bernanke himself becomes one of the people who starts to have that kind of discussion and there is absolutely no indication at this point. correct me if i'm wrong that anything he said would lead you to believe that the fed is on the side of the fence that says we may end it early and the risks are worth the costs at this point, right? >> i think that's absolutely right, and i think that takious through the summer, scott, and i think the question becomes do more people, more members of the fomc become more concerned about the costs as we get through the summer heading toward the balance sheet and what it means for the exit strategy.

both you and jimmy have raised the issue of watch the unemployment rate and what people think about the unemployment rate. remember, we had a one-tick decline to 7.6%. we need to understand how they view that and whether or not they see a kind of qualitative assessment of the decline in unemployment rate which is hey, it's going down and getting better. >> right. some people don't think that. i talked to bullard yesterday and he thinks we'll be toward 7% as we get toward that area, we'll start to think about tapering and he started toward the end of year and is i'm hoping to tuke those guys for a couple of days. >> jim, i will say this young then. >> chief money -- end of sentence. >> i totally agree with you. the idea that we'll see the end of cheap money with these employment numbers is wrong and

it's fans ifl and as long as there's cheap money we have to focus on what's going on go higher. it is still the magic carpet ride. quick, who wrote that song? and i see it going. herman. >> oh, right. i see the magic carp the ride. that's my point. >> i think that makes sense. >> i've got it in my head, though. >> this is born to be bullish. >> right. >> i don't know. the markets have been quite a roller coaster lately. >> indeed they have. thank you very much. they have been on quite a roller coaster ride lately. need help making sense of it all? guess what? cramer's here for you. his "mad dash" is next. let's take a look at futures right now reacting to the fed minutes released early at 9:00 a.m. this morning rather than the traditional 2:00 p.m. and that's how it will look at open. the daimsler-be the dow industrials look up at

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>> squawk on the street live, and the opening bell set to ring in four and a half minutes. scott? >> former kpmg partner scott lundgren has apologized for his

role in leaking data to a third party and that resulted in the resignation of kpmg as auditor of herbalife and skechers. in a statement that appeared in "the los angeles times" it did not impact accounting audits of the two companies. we focused a lot on this story yesterday. surprising, to say the least, that this gentleman spoke so publicly in the newspaper after all, right? >> the justice department would just wave at them. the justice department just looks the other way. not! this is what i think he did, if you go back and look at the 10:24 release of skechers, they did an absolutely horrendous job, but if you looked underneath which is something what kpmg might have done, this is the turn quarter so when the stock got hit in that quarter and february 13th, they report a miraculous quarter, what a piece of information he's apologizing for. it may not have passed any documents on that golf course,

but eamon quartered to get this ahead of time. >> all he had to say looking good or not looking good to whoever the third party was. >> we don't know who the third party was. >> that he was deriving dinners, cash, a number of other things. insanely stupid. >> what a great call to have the skechers information. to have this upgrade ahead, basically that's what you had. what would you do for that? w wow! take him out to dinner or a couple of johnny walker blacks. >> you better go blue. >> the guy became cheap. >> yeah. feds got on to this so there must have been trading they noticed and it was a round of speculation. >> if it's the fbi they obviously will accept the apology and move on. hey, get a lawyer. >> how about the reaction in the

stocks yesterday was so different after this whole thing unfolded, right? skechers went up and herbalife went down and it sort of tells you what's been going on. >> it's a huge undertakinging for them to have them and they've got an annual meeting coming up and a lot of costs and kpmg will definitely be sued. >> you can't buy back stock. >> that's right. an important point. you saw the animation and we have two minutes before the opening bell will and we do have time for the "mad dash." we'll stay seated. >> there was a squeeze yesterday of unbelievable proportions. first, solar. okay, now been ththis is a chin. if you go through the presentation like i did yesterday because i have no life whatsoever and you're reading at the barclays center. what you realize is that the chinese have walked away from

solar. jenko reported a hideous number. first solar had stepped into the vacuum with a low-cost solar module and it just dazzled people. they raised numbers gigantically and there had been a free fire zone for their short s became a squeeze of a lifetime. they made it cheap enough that it becomes ubiquitous. what they're saying is they have an ability and there was a guy, gar biddian, and how the costs have come down so much that it is now economical and they don't need subsidies. this is a fascinating play that probably is overdone, but first solar office everybody's list, david. it was, yeah. big move yesterday. >> was to everybody's list. >> it's true.

that is an ipo here. forget the swift part. >> it could swiftly rise. >> here we go. you hear the clapping, of course. [ bell ringing ] [ inaudible ] the gea energy association and that's a trade group of u.s. companies supporting the development of geothermal resources. >> david, there were some private equity firms that made a lot of money on this, right? >> yeah. i think so. >> they came in when real estate was at a low. >> right. this is truly a very smart company. >> and it's a very good time, you would think to bring these kinds of companies public. we've seen a number of them over the last six month, if you can play housing play, scott, in

some way you're probably not in a great spot. real energy came to mind and that ipo did extraordinairily well again from public e question, itty numbers and i think it remains a way to play and i'm not going to back away from it and it's in good shape. >> good markets that taylor has been taking it right? >> look where they are, southern california, text techs. those are the markets you want to be in. now it's almost impossible to go by land. we don't talk about how florida is a huge part of the country with everything from tourism. we had the ceo of waste management recently, wm, david stein or "mad money," florida is a gigantic part of his business and construction is what he's levered to. that is part of the theme of the florida comeback that's underrated in our thinking.

>> that's underrated in our thinking? >> the sunshine state is the place to make money. >> brazilian money coming in? >> that's a state where you want to try to -- i mean, i was at w. buzz i'm cooler than anybody else in the world in south beach. there was a group of germans in and i was on the fifth floor. they bought nine floors when i was there. a group of germans would take nine floors and it was unbelievable. >> i went up nine floors. they got it. >> starwood. >> h.o.t. >> we start off with a decent rally, about half a percent on the s&p. the market digesting the fed minutes which we pointed out have had an impact in the last couple of months when we receive them. the all-time high on the intraday is 1576 so we're basically right there. we're about a point away as this rally and i'll tell you what,

guys, last week there were so many steigns that you could be concerned about the rally. the midcap stocks and the airlines and all these groups that led us up, and you start thinking was there a question and the airlines got hammered and the toll brothers went from 37 to 32. the first-quarter winners were not rolling over and noi i think that we're back on track, and i remember -- let's talk about cyprus for a second. do you remember the story when the cyprus banks opened there was going to be unrest in cyprus? what happened there? where was the unrest? what did bond yields do for spain? yesterday there was a call to buy bbva and this is a large spanish bank with a tremendous

business in texas and they were all supposed to fall apart and it didn't. the bulls in this market have a better call than the bears. >> the shorts made comments on the halftime show that short the s&p on your peril, because you've got money coming into the market and you have money overseas looking for a place to go and it's coming into our market and one of things why the large cap safety stocks with yield have done well. i mean, you know. not to mention on the credit side, you have the boj just on this binge and investors in japan reaching outside their borders to look for any sort of yield resulting in italian coming down. >> if you're a rich person in japan, of which they have them. you wire your money to j.p. morgan. >> yep. i want to take a look at shares

of facebook up almost 2.5%. we didn't get to it at the open of the show. >> right. >> gm returning to facebook with the testing of the mobile program. facebook, interesting article in "vanity fair." one of the great business workers talking about the transformation taken at facebook that we tend not to focus on as much. what an advertising they know and about all of the different people and how are they spending rnd? >> it is an underrated company at this point. if you remember, you were sitting over here, david when gm was pulling away from facebook. that was part of the ipo botching. maybe -- whether it be a domino ceo or soft good it is.

>> how's digital media. mcstorm ak spice is putting a lot of mono are money, maybe they're doing facebook. there we go. >> we have a new record. >> there's an all-time high and you get that nice little animation. >> wow! >> it's taken a bit longer than the all-time closing and the intraday highs and the s&p finally catching up and, jim, it's barely doing it, but it says a lot about where we've been and where we've come to. >> you know, it really does. the dow obviously underperforming last year. the dow has a lot of dividend stocks, but this is a market that had -- that people have avoided. they've avoided because qe2 will

stop any minute. they've a ivoided by the earnin will be so bad. they've avoided because the government is in disarray. the government is in disaway worldwide and the earnings are overseas and frankly, we're the best police. >> your own peril. hedge funds are only up 3%. what are they going do? are they still going to short it? >> that's another key point you raise. if hedge funds have underperformed and they've got to keep money to work, right? they do, although they want to take risk off at your peril. you've got another sector continuing to go higher. we're seeing good growth and there's a supply/demand tightening. the bottom in katricaterpillar

they couldn't take it. >> even jc penney is up. >> you know it's a good day. >> remember, that's my tell. >> it's an interesting situation. almond talking to a number of investors in the last 24 hours. a number of them telling me this guy didn't know he had the job -- he didn't even start talking about it until the weekend. that's pretty quick. he's 36 hours ahead of everybody else and that's all. >> that's it? >> he spent his first day back at the office yesterday. >> is he going to commute from the suburbs of plano to plano versus com commuting to california. i want to get to bob pisani and we look right behind him and see the crowd behind him. taylor morris. it hasn't opened yet, right? >> they increased the size of the ipo 28.6 million. it was 23.6 mill twron and the price talk was 20 to 22.

we've had a number of ipos and reller gee, and it will be down today and the important thing is the ipo did very well and we had tri-point homes and that was the end of january and that was the first ipo in ten years. yesterday we found out william lions are a big california home builder and this parade will continue and of course, we'll have cheryl palmer on just a short while from now. we had another ipo and that was not partners. this is one of the companies that provide oil tankers which shutter oil from platforms. it just went public at 23 and it was 19, 19, this is the fourth, mlp and the appeals are these are 7.5%.

let me talk about the fed minutes briefly. we'll be -- the official commentary was released some time after 2:00. all of the rally occurred prior to 2:00 and the market did droop in the last hour, but i didn't see a lot here that was particularly hawkish. there were only two looking to extend past 2014, but i think enough people are stopping purchases plenty to that. i don't think it made a big difference on his training and mentioning they make bolts that go into everything and their guidance was rather poor overall. their sales were lighter than expected and they slowed further from february to march. that's got me concerned because they're a great leading edge company. have you noticed how weird the global markets are? put up the screen.

i just want to show you, even germ no isn't doing much anybody. it's basically the united states and japan and everybody else is slightly flat to down. i bring that up because most people don't believe in the concept of divergence and look at that, a little strange there and just the u.s. and japan on the upside. still $23. still $23 on taylor morrison just a couple of minutes waiting to open. guys, back to you. the partnerships have been quite extraordinary as the search for yield around the globe is finding those. let's shift to the bond, and a lot to say about the fed minutes and everything else. >> i don't know. i spent about half a minute looking at the fed minutes. we're at 177 looking at an intraday chart. the guys way out in the bleachers that ought to curtail

the programs? do you think that's meaningful? it's hard to say it moved a couple of basis points and we're still up to 1.80 and open up the chart to december 1st and that tells outstory. as a matter of fact, between the adjustments and duration which made the players way too short. part of the buying that we've seen over the last two weeks, more importantly i think that the yen carry trade is alive and well as they borrow yen which has a low interest rate and tries to gain things and i'm thinking that the jgbs are not the gain, and even big bond managers. i will mention more of a sudden they're more enamored with treasuries. you want to talk about some volatility and here is your volatile animal right here. look at the intraday. they jumped up to 58 base points and not sound like a lot, but it is. the futures markets had a haerlt, too. it was so crazy.

open the chart up and you can see on the year to date. we went from 61 basis points to 62 basis points and here we stand at 58 and if you want to look at currency which is key, because if you'll get hurt in the carry trade the key is you can't have the yen rally against whatever you converted to whether it's dollars, euros or pounds. so you can see we're hovering very close to 100. back to you. >> rick santelli for us. still ahead, ipo excitement building here at the beg board. we're still wait for example taylor morrison to open for trading behind us at post 8 after that happens. the home builder ceo will pay us a visit at post 9. >> also, the ceo of principal global investors $300 billion under management and jim mccaughan with where he sees potential for profit. [ male announcer ] at optionsxpress, our clients really appreciate our powerful,

easy-to-use platform. no, thank you. we know you're always looking for the best fill price. and walk limit automatically tries to find it for you. just set your start and end price. and let it do its thing. wow, more fan mail. my uncle wanted to say thanks for idea hub. he loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. [ male announcer ] open an account and get a $150 amazon.com gift card. we have an open on taylor morrison. >> $23.35.

$23.35. tpg and oak tree, and oak is a public company, as well. >> yeah. sig give kant stake there taking this builder public, just a little over two years after they took it private or rated it. it was up nicely at the open and we'll see if it maintains and succeeds in staying above. >> as most ipos have. it's been great, david, and i think a lot of people have to recognize that there is an aspect of this market that is strong. the ipo's up 18% on average. you can get in them, too. this was a very big deal. you can get in them. i thought this was very impressive and once again, housing continues to shine and people like this group. good-sized ipo. 24 million shares going out today. big markets that this company is in, arizona, california, texas, they're where you want to be. >> this housing market that we

don't talk aboutive in as we don't talk about the auto market. there goes carmax. autos and housing are very big parts of this economy as are oil and gas and this is where the action is and they're giving you stocks to play it and people are taking advantage of it. >> all right. we'll take a break and we'll be joined by the ceo of taylor morrison. today's initial public offering as you see right there having a very nice open. "squawk on the street" right after this. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online

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fresh from the opening bell. >> first on cnbc celebrating its ipo today. home builder taylor morrison. they're absolutely doing great. the high end of the range and still goes higher. joining us now is cheryl palmer. congratulations. this is a great moment for you.

>> unbelievable. >> the company was wimpy and you bought it at the absolute low and already have been able to make a fortune for shareholders in a very short period of time. >> just remarkable, but can i start, jim, by giving you a little token from taylor morrison. a hard hat. >> my real job. >> and that, too? how high our stock goes today, okay? >> we need a sharpie. the tape measure today. >> that one will go high today. >> yeah. i would love to share with you. the company, as you know, was acquired back in july of 2011 by tpg and oak tree and it was just at the perfect point in the cycle. i don't know that we appreciated just how perfect it was, but truly the low point and we were positioned so well to actually go out, as you said and acquire land and really some of the best

markets in the u.s. today and complement our canadian monarch business, as well, and really have spent the last two years getting ready for today. >> now, explain to people how in those areas, and i'm talking about five stage which is accounting for 30% of the total u.s. population. there isn't any land now for sale. you have options to buy. you did it correctly, right? >> yeah. we've controlled all of it, so look out, right? no, there is. the land market is very difficult. it's very tight especially when you want -- our core mantra within taylor morrison is to make sure we stay in those prime, core locations. so when you look at the land availability in the market, you're right. the supply is very, very constrained, but that's good for us. >> of the big marketious see, arizona, florida, california, texas. >> you know, they're all hot. they are. it depends what you mean by hot and if you think about runway i think about phoenix and i think

from how low from just an activity and the permit and i look at the affordability and the opportunity to have land in front of us, texas is great, california -- northern, on fire. it's just great. >> what are you going do with the money. you're raising the money from the ipo? what are you going to do with it? >> it's really growth capital, you know? the good news is the business is in a very good place as far as the land in front of us right now and it affords us the opportunity to be very selective and make sure that the land we bring on to the portfolio is the right land that's creative to the business so we'll keep our powder dry and we'll make sure that we're ready for those right opportunities. >> when investors see two significant shareholders who have made enormous amounts of money in this case oak tree and tpg still own 39% of the company. >> they'll each own about 39%. correct. >> will they be selling? >> it's got to be tempting for

them to realize some of those gains and they're realizing that today -- >> i didn't realize they were structures and they absolutely are. they are, after today they will still hold about 39% each. >> sheryl there's another aspect here, it's the right kind of housing. when you get asld i am -- >> i hope i -- i guess -- >> you do fancy nester housing. we like to call them jewel boxes. >> what did you call them? >> jewel boxes. it's to meet the individual needs. it's their own little personal jewel bock, but you're right. we feel very fortunate. we get to build homes to really meet the needs of the homeowner and those needs are pretty the u.s. for cohorts.ld across >> what do you see with mortgage rates along with them?

>> i think we'll will see movement over time and if you look at affordability and where we are today, quite candidly, we have some move ahead and over time we'll expect that. we're at all-time lows right now, and i think we have a long way to go before we have to be concerned. >> on david's point, do you see anything that would lead you to believe that the housing recovery is not sustainable. oh, no. we are in such a good place and everyone talks about early innings and whether it's the first or the third. you look at the fundamentals around us and you look at the affordability and the availability of inventory and the confidence people have back in jobs. i think we have good times ahead. >> this is not correlating with unemployment with the number woe saw on friday. this is the industry that will feed job growth going forward. i would like to think every day

we're being able to deliver dreams to homeowners. it's a good time. >> congratulations to you, sheryl palmer, taylor morrison here at the new york stock exchange. >> thank you very much. it was wonderful being here today. >> congratulations. >> thank you. >> let's do some "six in 60." again, we'll stay seated today, but let's start it off. >> ibm. this is an upgrade, and he says it will be a terrific quarter and in 2015 projection. >> goldman initiates neutral on mark west. >> the partnership and it's a great place to be. mark west is one of the best of all because it has pipeline out of marcellus and a bad call by goldman. >> selectus. this stock was up yesterday and i just put in because the biotechs continue to be red hot. >> amerisourcebergen. goldman saa neutral in this

thing and they had to go positive and it is part of the deal. >> i did that for you. they're saying that maybe with the catalyst, you should sell it. >> qualcomm, stern agee. >> you need to see qualcomm break down if you'll have a rally. >> and it hasn't. stuck in a rut. it's got cement galoshes to quote that -- one of the absolute great star trek adventures where they went back in time. >> right. >> okay. >> peace be with you. >> what have you got on mad tonight? >> live long and prosper. >> we are continuing with our endless search for yield. we're going a little biotech. >> i wouldn't think biotech -- we're doing big drug, and i have to tell you that this rally should have lost the big drug. david, they still go up.

you're not supposed to have katrina and niners go up at the same time with the drug. it's not supposed to happen. it's what happened in '94 and '96. the screen is wrong! it could be the magic carpet ride. >> when worlds collide. great book. >> or george costanza from "seinfeld." more contemporary. i do want to point out again, s&p, you can't get an s&p high without a raw rally. we never mentioned north korea. how many people got short because of talk that north korea launched this. when the north koreans are in the league with the bulls and it they say they're going to do something and they don't do it. there's one issue that we don't want to see, is north korea degree anything that you're

talking. >> thank you very much, guys, what i hot show! it was so hot and no dangerous. >> not only do you have the hat. >> is anyone more handiy than i, david? >> no. your the handiest man. the new record hit intraday highs and jim will tell us where he's seeing opportunity right now and later, the tech gadget that's becoming a serious competitor to traditional cable and satellite. the company is here to tell us about the new streaming milestone and what it has planned for the future. we're right back. ♪

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>> all right. welcome back to "squawk on the street." the s&p hitting a fresh all-time high. it seems the fed may be, you know, there's always been speculation and ends qe sooner rather than later. we'll have complete analysis

straight ahead including insight from robert keller. >> then earnings analyst has spoken to the returning jc penney ceo mike ullman after ron johnson's abrupt exit this week and now we'll be the first to talk to that analyst and foin out what ullman could have up his sleeve for the retailer. >> plus television over the air and cable versus over the web. that is heating up. first on cnbc we'll have the ceo of roku. >> we should note that kayla tausche is joining us for the next hour. >> i should note that wasn't written in the prompter. that was your own volition. >> will you talk about banks and mobile banking. >> that's right. >> a lot of concerns there. >> exactly right. you shift to the mobile banking and you shift away from doing stuff in person, is your money safe? what the risks are and how you can be safer. >> that's ahead. let's dive, meanwhile straight into those markets. the s&p hit arth record intraday

high, if you are just joining us this after the fed released its minutes early due to a leak early this afternoon. the big question, will they end qe sooner and as early, possibly in this summer. global investors which has roughly $280 billion in assets under management and he joins us on the left and on the right bob brown, the cio of northern trust global investments so a real turnout for the books. we have the fed minutes early and it would appear that when they last met they were engaged in a debate about when they should tail off this $55 a month of bond buying. the suggestion was it might come as early as mid-summer and i know to a certain extent that that may be outdated and we have the budget just being released from obama and we'll come back in a few minutes and it is outdated because of the poor employment report which we had on friday which isn't taken into

account, but what would you say to investors about, request e. >> it's partly that data has moved on a bit where the minutes are being released. the minutes always give a more hawkish impression of the fed than the likely outturn. bear in mind there are several hawks on the fomc who are not very comfortable with quantitative easing. however, chairman bernanke and the people around him are much more of the view that quantitative easing until they can declare victory. the impression of the minutes will be negative, and i think monetary policy will be quite accommodative. >> i asked you how long the sweet spot was between the u.s. economy actually improving and getting that draw from the fed or concerns about the withdru that might upset markets. you said to me, we can go

throughout theier in that sweet spot. do you think that's true? >> the key issue here is the unemployment rate. the fed has talked about using the unemployment rate as the signal and the trigger for the adjustments to monetary policy. the job data that we saw for march were quite disappointing and it was quite good for the unemployment rate down to 7.6. i think by the end of the year we'll be getting close where the fed declares victory under 7% unemployment and the exit there should be quite benign for the market. >> bob brown, would you agree? >> well, we agree at that time fed is absolutely committed to keeping qe in place for probably longer than the market would expect and that they're probably misinterpreting those comments. anyone running an investment team will tell you you always have the to and free of the debate and no doubt in our mind that ben bernanke is committed to a sustained, broad, economic

recovery and we don't think they'll be doing anything that could reasonably be interpreted as a tightening of policy before the end of 2014. so that would say on a morning on the s&p 500 when the markets right now, as we're speak are at their highs of this early morning session. you think this goes on. >> we are overweight in equities and have been for some period of time and it's not because of the support of monetary accommodation and that is a key pillar, but earnings have been solid. we are past the 2006 peak in earnings. the rates are low and the overall capital attraction of the united states and the global environment, we think, is very, very key, as well. we think global capital will continue to glo grow into the u.s. markets. starting to think where treasury yields and the mid-year point

would be important. >> jim, you said they expect to be -- and where do you think this trade goes? i would not be optimistic for the ten-year treasury and i think it's going to be in a trading range which is probably around 160 to 190 in term of yield for the next few months and it will be by the fed's ease in monetary policy, but ultimately at some point as the economy improves and the fed declares victory, you are going see higher treasury yields, so i would disagree with some of the comments coming from notably pimco and black rock in the last 24 hours and i think they're so committed to high-quality bonds they have to stay there. >> we live in a different world now, jim, where the bank of japan is intent on pumping a tsunami over the system. that money is also going into treasury, isn't it?

>> yes. we're seeing our japanese clients investing abroad with some of the monetary stimulus, but it isn't going into treasurys. we've seen japanese clients buying investment, and buying in the last few months and last few weeks and it is one positive one for the treasury market and i think it will help credit a lot more. >> we should underscore the facts that the markets have hit a new interview day high on the s&p. technology is performing quite well today. we're at the highest levels we've been on an s&p sand point, 1578.42. i just mentioned technology and if we start to think about what this next leg of the move higher could potentially look like. it's been a very defensive rally, health care, staples, utilities and the hunt for yields has been going on and do we start to see a rotation into some of the cyclical names

picking up leadership now? >> i think that's a good observation and i think the real reason why i expect further positive momentum in the u.s. market is that the u.s. domestic economy is doing really well. it's a matter of low energy costs by international standards and innovation and manufacturing and the housing market turning. i thinkal of those things tend to point to domestics and cyclicals doing better. i like manufacturing and small and mid-caps that are very -- the market will -- before we let you you go. how far do you -- our five-year forecast will degenerate 7% to 8% and our guess is we'll get a big chunk of that just given the overall environment in the

positive view. >> thank you both for joining us. bob brown there. >> thank you. >> i wanted to give you a story on the story we've followed and the fight between jena partners and agrium which has retail and wholesale components. yesterday the shareholder vote was revealed, released and janna came up empty in its fight to seat as many as five directors and this is a battle that went back quite some time. janet did have an opportunity that had at least had one director of its joyces and not losing very happy about it. not losing with great grace. a statement that came out after the annual meeting and there were arguments about the comparables and how well the company had done over time. it was always an interesting battle and janna has done quite well in the position and they're the largest shareholder in

agrium and it was already doing well and not a typical territory for activist investors. now to that letter yesterday which i just feel like is worth mentioning again. barry rosenstein wrote i congratulate you. if you play dirty enough and violate corporate governance and democracy, you can still lose the campaign, but then barely manufacture a victory after the voting is supposed to be over. >> e on, yeah. you think that's -- >> you're a board that condoned lying about shareholder support, switching comparables and these are all his contentions and many of them may not, in fact, be fully supported. switching comparables that you came up with yourselves and bribing brockers and financial advisers and he went on to say you hired a mercenary banker who argued for it when paid by you. that's rob kenner, by the way, of morgan stanley. attacking me personally as

lucky, a pain in the -- those are his words and they were in the letter. improved corporate governance and a power-hungry behavior. we're done with this although they continue to be the largest shareholder in agrium. those conversations will continue to be rather heated. >> to say the least. >> i just continue to be fascinated by this renewed. i don't know if you want to call it an age of activism, david, that we're in, but it seems to have become more public than it has in a number of years. the activity level is higher and it really has made a huge impression on boards and ceos. even when you and we are not aware of the presence of an activist are always thinking about that possibility. >> it's a mistake to assume that the activist is always right. >> that's a good point. the activists also don't always win in this case.

>> in their janna case and underscores that, right? it's fascinating to follow. after the break, the lone analyst on the street and we personally spoke to jc penney and it's the siren inside scoop and we we have the analyst who has details. that's coming up next. rb heller and the s&p crossing its new introo day all-time high and the highs of the morning right now. we're back at post 9 after this. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses,

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the budget itself arriving on the hill set to be released in just about an hour. john harwood is live at the white house. it's 3.77 trillion is real money, i guess, john. >> it's real money and those books are real heavy, too. they're a little bit archaic in the digital age, but those are being delivered to capitol hill this morning and the president will come out in the next hour and formally unveil the budget. there aren't that many surprises here and this is an attempt by the white house to bridge the gap between the house and senate. the house republicans and senate democrats coming out with their own budgets and i want to highlight tax elements of this budget and the first is the $580

billion that the white house says is for deficit reduction and that comes from the last offer to john boehner and the house speaker and the fiscal cliff negotiations and it comes from two sources and one, implementing the so-called buffett rule that anybody with incomes over $1 million after accounting for charitable giving pays a tax rate, and the second is a limitation of 28% on the value of deductions where people in the top two tax brackets. so those rates, $580, and there are other to pay for tax cuts or spending programs for the middle class. for example, you have the end of the carried interest break for hedge fund managers. you have a limitation of 3 million on the irass. you can accumulate more, but you don't get the tax benefit and the third is an increase in the tobacco tax and those things

like the expansion for universal preschool education the obama administration is for and the education grants and credits for middle class families and other programs in this budget. rough sledding ahead for a lot of those tax increase items and the real question, david, is going to be, does the president succeed in luring republicans into a compromise discussion in which republicans accept additional tax increases for deficit reduction? if not, there's not going to be any deficit reduction. >> that is the key question. >> the carried interest is still out there. john harwood, thank you. we'll be watching closely. >> david, now from the white house to the front office. after ron johnson's exit, mike ullman has returned to jc penney in hopes of turning around the dwindling retailer. ullman spoke to one sell side analyst after the announcement was made and here with his big takeaway is matthew boss, retail analyst with j.p. morgan. matthew, welcome. >> good morning. thanks for having me.

>> i want to get right to it. what did he tell you what the strategy will be? is he going to continue what ron johnson did, or will he do his own thing. >> he'll definitely do his own thing. the biggest thing that he talked about, number one priority is reconnecting with the customer. he talked about having the right product, but more importantly having the price and the value perception, something that he believes was lost over the past year. taking a look back at the shop strategy. they are are still going to open the 30 shops by may here. they are going complete the home transformation, but after that they plan to take a step back and look at that is how many shops does the customer want, not how much does jc penney want. going back to high-low pricing and trying to stem the -- and returning to deep discounting

which he thinks was lost over the last year even though the purchase has become better and the store experience has improved and the inventory has been cut and they lost that connection with the core customer over the last 12 months. >> beyond strategy, what did he say about the strength of the balance sheet. i'm sure you spoke about the financials of the company and i think there are strength going forward and whether they need to raise money. what did he say? >> there's definitely a lot of questions and that's my number one question, what is the status of the balance sheet and how bad is the first quarter here and i left the call still with more questions than answers and the one thing he did say is as we think about capital expenditures going forward, jc penney will not be going on a diet, but it would be fair for the haircut for the 2012-2013 and $800 to $1 billion a year as long as the

shops and transformation is pared back. i expect probably over the next four to six weeks we'll hear something further on the balance sheet. to ullman's credit, it seems he was contacted over this past weekend to take the job. so i think it's a little early for him to comment on exactly the road map ahead. >> he knows the business, obviously, and getting back on that seat a few years away would take time to get that speed. >> there was a report out yesterday saying that penny sales in the fiscal first quarter was down about 10%. any clarity that you can give us as to what the business is doing as we sit and have this conversation today? >> so no clarity on current business from the new ceo last night. we're actually modeling a down ten which would be a free cash flow burn of 500 million plus in the first quarter which again, is dangerous and might have been, you know, basically the breaking point for the board in

terms of if that was the case. i do think in stores as they return to the deep discounting in the month of march, i think that traffic has picked up, but i think that because of the aur was associated with this as well as the construction on the home shop, i think that the aggregate comp is not necessarily, the needle hasn't been moved as of yet. >> matthew, thanks so much. interesting to get those insights from mr. ullman. >> absolutely. >> david, you know this company, right. you know how all of this stuff works. do you think it's inevitable given where the balance sheet seems to be at this time that they'll have to raise capital at some point to do what they want to do. >> it's not clear that they have to at this point, but i think it is an interesting point that was raised by the analyst. the board was at the breaking point in terms of concern about the cash position in terms of the cash burn and it's something that investors should be watching for jc penney. it was $1 billion last yore and

half a billion in one quarter. so you're accelerating. >> you have to get that turned around and moving in the right direction, and the expectation is that ullman will stabilize or hope to stabilize. in the conversations that he had with investors, they indicated he also was saying that i'm not going to be here forever. >> he's 66. i don't think anybody expects him for the really long haul. >> speaking of leaving. we have to take a break. the music is on us and there is no time. have you ever wanted to invest exactly like warren buffett? >> how about david einhorn for $1.99 a month, yes, $1.99 the i-billionaire app can help you do just that, find out how when we talk to the co-founder after the break. plus with the leaked fed minutes hitting the market and a fresh record high this morning on s&p, where do we go from here? this is cnbc on a wednesday morning. clients trade and invest exactly how they want.

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the app tracks the portfolios of more than 10 billion investors. lou moreno is the co-founder of i-millionaire. nice to see you. >> where did you get the idea and how accurate is the app as to the portfolios of these billionaires? >> got the idea because i had apple stock and in september i was looking to know what happened to the stock, right? i wanted to know what billionaires were doing with the stock, so i went online and searched the sec filings and others were selling, and i just wanted to have a better way to track this on my iphone and that's why we created ibillionaire. >> you talk about sec filings and where else are you sourcing this information? it's hard to come by and you're looking at insider trading websites and you're looking at their quarter end letters and how comprehensive should i feel like this information is? >> all of the information is from the sec. so we created a software that actually gets all of the data from there and it's 100%

accurate. so we don't want to make any -- there's a lot of websites that get this data anywhere else ask we just want to be 100% accurate. >> and not 100% up-to-date. the holding's today of any one of these billionaires are not the same potentially as they were from the filing date. i think that's an important point to make. >> right. most of them have invested for a long period of time. >> we take the hold in history and they have seen that they have outperformed the s&p throughout history, right. >> we're actually tracking long-term investors. >> i think it explains a lot. we were talking during the break that you follow warren buffett and that's a much slower moving portfolio and that has worked for you. >> there's a stock that he has and it's wells fargo. in the app you can see he's been buying the stock for ten years. >> that's the type of information that you want to present to the investors. he's bullish on the stock for a long period of time. >> there's some hedge fund

managers that move along more quickly than mr. buffett does and given the 13f and the timeline that scott says they can change their portfolio a lot between their filing and the current moment. >> right. exactly. what we've given investors is we have push note if i kayings so say david faber bought a stock, we can let you know if the stock is trading lower than what he got. >> you have the average price to the extent you know it. you don't always know it. >> it's an average price. right. >> where would you like to be in five years' time? where will you take this approach? what would you like to do? >> we see the app can go multiplatform for everyone and people like to mimic what the investors are doing. we can have an index like having a partnership with banks is something that's important. >> to get this app this morning you had to submit your email address in the weeks prior and then you'd get an announcement this morning that you can

download it. what type of demand are you seeing and what are you seeing on the premium site. my understanding is that's where the real information is. >> that's five bucks, by the way, for a year, not free. >> it has push notifications and a lot of more functionality. so we're actually happy with the demand. we're seeing a lot of people downloading and you can download it from the apple store today. >> good luck. >> thank you. >> thank you very much. >> raul moreno ibillionaire. >> i like that app. >> who wants to trade like a billionaire? >> exactly. >> we have breaking news on crude oil inventories and for that we go to sharon epperson at the nymex. >> we're looking at oil prices after the latest report from the energy department which shows crude supplies rose by $250,000 barrels and that was far less than analysts were predicting

and they were predicting we'd see a build of half a million barrels and it showed a build of 5 million barrels so we are much looking at a much smaller build than was anticipated and we're looking at $94 a barrel. gasoline inventories did rise by 1.7 million barrels and gasoline inventories up by 7 million barrels and a decline was expected there and we're looking at distillate fuel supplies that were down by 169,000 barrels. 169,000 barrels was the supply in distillate fuel supplies. we are looking at supplies having built in the past week by 900,000 barrels and that was expect with the pegasus line taking crude oil from illinois to texas. keep in mind, even though we saw a much smaller build than expected for crude inventories and we are still looking at them near a 23-year high here and we are near 390 million barrels here for crude supply and that

is a significant amount of crude and what is different from 23 years ago and we are seeing a crude production ramping up. >> thanks, sharon epperson. >> the battle for your set-top box is up and we'll see the ceo of roku. what does he think about the plans to go after cbs? on friday, one of my favorite media moguls and one we don't often hear from. john malone in an exclusive interview. we're back in two. [ female announcer ] it's time for the annual shareholders meeting. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom.

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the s&p 500 setting a fresh ridiculous intraday high this morning on the back of the early release, yes, the early release of fed minutes as a result of a leak yesterday afternoon. the authorities are investigating. for more on what is a broad-based rally, let's bring in ubs director of floor operations, art cashin. >> i feel it's my life's work to get you excited about the record high. are you excited this morning. >> >> i'm frustrated more than excited. >> we made a new record high and at some point you would think the market is going to explode and it's going to break out. it's been in a consolidation pattern and it's been moving higher in baby steps. many people thought that once we got the s&p up to this 1578, 1580 level the shorts would go into a panic and things would seem to burst forth.

instead, we've got two indices, the dow and s&p that are carrying the whole load. >> what do you expect the blowout to be, though? if you expect a breakout to come after this. where do you expect it to go? >> i thild expect enough of a move to say almost a kind of capitulation. look, i've been short or i've been resistant, i've been whatever and the market's proven to me i've been dead wrong and i have to come following along behind it and breaking out of that rectangular consolidation phase should set you up to 1600 in the s&p. >> the flip side to that is it's a market that you can't fault. >> it continues to rally and today the fed minutes, we're talking about a possible exit in the middle of the summer and tapering off and still the market rallied through and that is a phenomenal position to be in. >> one anchor said to me as he went on air, he said this market will never go down and we laughed, but it's worth a

thought. >> no. it certainly has moved on and as jason and his people have said, for now, there is no alternative. it's the tina market and they are moving into it and away from the lack of alternatives. i'm a little concerned that things like the russell and others aren't quite following through. in all of the upward move, and in all of the new record highs there is a sense of seeking safety and protection. it's a dichotomy, but art, the russell 2000 and the midcaps have been performing quite well. maybe it's healthy for the market that you have their this leader group and big names and more risk on, so to speak. cyclical names start to play a larger role in this, wouldn't you say? >> i think the technology and to some degree the financials are stepping up have been fairly nice. take a look at the transport

which is have been diverging negatively and then turned around and looked like they had an absolutely marvelous resurrection and stopped dead in their tracks. >> there is a train of thought that said transports and russell 2000 are all closely linked to the u.s. economy and they're in step with what we've had in ten-year yields across the market that people should pay close attention to and friday's employment figure is a point to that. >> well, i think there is concern, but the interesting thing and pisani raised this point a little earlier today. i wrote about it in my comments and that is if you look at the other markets around the globe, they're not all participating in the same manner. they decided to almost begin to take the summer off already and it's been the s&p and the dow jones. that's encouraging. they're the two drivers here, but you would really like to see it broaden out a bit. either you would like to see that kind of breakout that i mentioned when we first began or

a broadening out to say, come on, russell. come on back and see where we're going. >> should you be worried that you have bears on your tie this morning. >> they're teddy bears. they're lovable bears, okay? >> art cashin here from ubs with lovable bears. >> those early morning fed minutes saying more me minutes are possible and the qe sooner than originally expected. up next, our steve liesman breaks it all down for us. we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. only hertz gives you a carfirmation. hey, this is challenger.

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as the streaming and smart tv wars heat up, the way viewers watch content keeps evolving. roku is a streaming player with over 800 channels that streams content from the like of netflix and hulu via the internet. anthony is the ceo ask joins us on cnbc. >> i can go buy a samsung television somewhere equipped with wi-fi and loaded with netflix and amazon and a lot of

services i wasn't even aware of. why would i want to buy a roku? >> probably the biggest reason is we have a lot more content as well as a much easier user interface. on roku you can get time warner cable which isn't on samsung and our feature that's widely regarded as the use. >> it's the ease of use and the content that you're using to at least compete against and differentiate from the tv makers? >> well, yes. and also, think, lots of tvs don't come with stream offing. >> most of the new ones do now, right? don't they? >> maybe half of the tvs shipped have streaming built in. in the roku experience you can get a roku for $39, $29 on sale and a much faster, easier experience than you'll find on most tvs. >> what's the device cost right now? >> we have four different models

$49 up to $99. we just launched the roku 3 which is $99 and it's the number one-selling streaming player on amazon right now. >> as one of the pioneers in this industry, i would love to get your take on areo. we've been hearing a great deal about it, of course, using antennas essentially to capture broadcast channel, but in a way that the broadcasters are not happy with via the internet. what do you think about it? is it something that could be pared with a roku device and allow me to completely avoid having to pay a cable bill, of course, i still pay by broadband bill. >> what we are seeing the transition of cable, to the internet. when there is a big technology change like this there are always business model changes that come along with it. you remember when the vcr came out they didn't know if it was legal to record or not, the famous sony betamax versus sony

case. there's a lot of changes happening and there are changes in the copyright law that aren't clear and so i think we're waiting to see how the courts will decide. you can get areo on roku today and it's a private channel and it's not one of our 800-plus public channels that are available in the channel store today. >> anthony. it's scott here. cnet took a look at your box and compared it to apple's. the apple tv and they rule in their august 2012 cnet price fight that apple tv wins by a nose. why are they wrong? >> if you look at the vast majority of roku review, we almost win all of them and it's rare for apple because if you look at the amazon reviews we

come slightly ahead and if you look at the best selling list of amazon we're ahead of apple tv. we have three other models which also sell. so we're very happy with roku 3 sales. we're the leading selling player right now. we're the dominant platform os for tv over streaming and we've just announced that we passed 5 million roku players sold. we stream over $1 billion hours of content so we're doing really well. >> you'll need a big broadband connection to get all of that and in addition to kansas city and you support those, forts on google's part? >> i think broadband is something people like and obviously it's required for streaming and you don't need that much broadband speed to stream. you can stream everything we have on roku and if you have a higher rate you can have high-def and you do need higher broadband speeds when you are

streaming to four different tvs in the house all in hd. >> right. not to mention my ipad, my mini ipad, my tablets. anthony, as always, appreciate your time. thanks for joining us today. >> we are counting down to the president of the united states launching his new budget live on television in about 40 minutes' time. in advance of that, rick santelli will give us his take on the president's plans and the yen carry trade. stay with us on cnbc. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ and never back down.

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we want to show you the markets here. we're at the highs of this morning. what? about an hour about the s&p setting a new all time intraday high. and it currently sits at 1,581 and change. technology, one of the strong leadership groups today. ibm got an upgrade. that stock is up by better than 1%. intel is up 2.5. yesterday was a strong day for microsoft. that stock adding another to a strong gain. so a change in the leadership groups. technology having a great early day of this trading day.

i want to show you jcpenney as well. we spoke with the first analyst on the street who was the first to speak to the new ceo, mike ullman. it started out in positive territory. certainly moved lower after mr. boss appeared on "squawk on the street" this morning when he did mention that he was hearing of a potential cash burn by jcpenney in this fiscal first quarter of a half billion dollars. this comes after a big loss last year. questions going forward about the strength of the balance sheet. it's a story that we continue to watch. jcpenney, a decline of one and two-thirds percent. the federal reserve releasing the fomc five minutes ahead of schedule. let's bring in steve liesman. >> the official release was ahead of schedule. the unofficial release may be as

much as 19 minutes ahead. one person received it at 2:00 p.m. yesterday. that is giving us an idea of what may have happened. the result of a fed staffer pushing the button at the right time, but on the wrong date. that is right reporting from john carney found that out. some time after 2:00 p.m. might have been exactly at 2:00 p.m. yesterday. they released 100 trade lobbyists in an e-mail that goes out routinely. and also, the inspector general to look at the fed's procedures. a couple of questions come up. this would not be a routine insider trading case. we have no indication that anybody has. did the recipient know they received it early? did they act on the information receiving it was public or act knowing they received it a day early? those are the questions that may

come out if it's found that somebody acted on it. they were a bit more hawkish than h many analysts expected. the question is whether the weak jobs report changed when the fed met. if that's come between now and then. here's what steve and stanley wrote. there was probably more support than i would have expected to see. he goes onto say that support is not all that koconsequential. we think the current intensity of the debate is probably less intense. and finally at bmo, assuming economic activity continues to improve, of course, tapering later this year. what i saw is there are two camps out there. one thinks we may need to taper beginning in the summer because the economies are moving. another camp believes the tapering should become because the costs are outweighing the benefits.

i don't think they amount to the majority of the board. it's still full steam ahead until the unemployment numbers improve. scott? >> all right. steve. thanks so much. >> let's get over to the cme group. rick santelli has the santelli exchange. wednesday's rendition. today this is oversimplified. you get the point. they may be responsible for the fun rallies that we have seen. whether it's booms or u.s. treasuries. maybe guilts. just consider. the corner stone is zirp, zero interest rate policy. so basically an investor goes and borrows yen. let's say he buys a debt instrument that yields 2%. he's going to end up in a short

position in the end. that's where his risk is. take the proceeds and try something at 2%. let's say by a factor of ten. in essence he can walk away with 20%. or in the southern countries of europe he can get higher yields. maybe he can get higher. he'll leverage that 5% by a factor of ten. ends up with basically a 50% return. but the key is watch the dollar yen or, of course, watch the euro versus the yen or the pound versus the yen. in the old days it used to be economy. not so much any. we're going to switch gears a bit. you ever go to a neighborhood restaurant and they say soup or salad? you get soup or salad. let's look at the negotiations that the president has with the

republicans. all right. before the fiscal cliff and before all the issues, we talk about revenues and tax hikes. so the republicans don't want tax hikes. maybe some tax reform. but then a deal is made. but after the deal is done, what they do is in the present political team, they are really smart. if the economic team was that smart, i would be like double thumbs up. but after the negotiations, here is what we are going to hear. we want the soup because we got that in terms of the tax increases and we want the salad. don't you remember back in september, october, november, you guys were all for reform? well, we want it noud. >> thank you, rick. i imagine you dining for lunch at the table in just a couple of hours.

>> coming up, president obama speaks on the 2014 budget proposal. stick around we're right back. w. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪

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on the street." scott, thanks for filling in. you're going to be here. carl is away on assignment. interesting day today. >> yeah. and the s&p hits a new intraday high. you've seen a pretty strong move. we're sitting at the highs of the day. we'll be trading that at post nine for the halftime show. >> absolutely. of course, very strong on the nasdaq. we're going to the president. >> yeah. >> 6.5 million new jobs. but we know we can help them create more. corporate profits are at an all-time high. we have to get wages and incomes rising as well. our deficits are falling at the fastest pace in years. but we can do more to bring them down in a balanced and responsible way. the point is, our economy is poised for progress. as long as washington doesn't get in the way. frankly, the american people

deserve better than what we've been seeing. a short sided crisis driven decision making like the reckless, across the board spending cuts that are already hurting a lot of communities out there. cuts that economists predict will cost us hundreds of thousands of jobs during the course of this year. if we want to keep rebuilding our economy on a stronger, more stable foundation, then we've got to get smarter about our priorities as a nation. that's what the budget i'm sending to congress today represents. a fiscally responsible blueprint for middle class jobs and growth. for years the debate in this town has raged between reducing our deficits at all costs and making the invest ms necessary to grow our economy. and this budge answers that argument because we can do both. we can grow our economy and shrink our deficits. in fact, as we saw in the 1990s, nothing shrinks deficits faster

than a growing economy. that's been my goal since i took office. at a time when too many americans are looking for work still, my budget begins by targeting certain areas and making good jobs to keep down the road. we should ask ourselves three questions every day. how do we make america a magnet for new jobs? how do we give our workers the skills they need to do those jobs? and how do we make sure that hard work leads to a decent wage? to make america a magnet for new jobs, this budget invests in new manufacturing hubs to help turn regions left behind by globalization into centers for high-tech jobs. we'll spark new american innovation and industry with cutting edge research, like the initiative to map the human brain and cure disease.

we'll continue our march towards energy independence and address the threat of climate change, and our rebuild america partnership will attract private investment to put construction workers back on the job, rebuilding our roads, our bridges and our schools and attracting more new business to communities across the country. the help workers earn the skills they need to fill the jobs, we'll work with states to make high quality preschool available to every child in america. and we're going to pay for it by raising taxes on tobacco products that harm our young people. it's the right thing to do. we'll reform our high schools and job training programs to equip more americans with the skills they need to compete in the 21st century economy. and we'll help more middle class families afford the rising cost

of college. we'll build new ladders of opportunity into the middle class for anybody who is willing to work hard to climb them. we'll partner with 20 of our communities hit hardest by the recession to improve housing, education and business investment. and we should make the minimum wage a wage you should live on because no one who works full-time should have to raise his or her family in poverty. [ applause ] my budget also replaces the foolish across the board spending cuts that are already hurting our economy. and i have to point out many of the same members of congress who supported deep cuts are now the with ones complaining about them the loudest as they hit their own communities. the people i feel for are those directly feeling the pain of the cuts. the people who can least afford them. they're hurting military

communities that have already sacrificed enough. they're hurting middle class families. our children who have to enter a lottery to determine which gets to stay in the head start program with their friends. soorns who depend on programs like meals on wheels so they can live independently but are seeing their services cut. that's what the so-called sequester means. some people may not have been impacts, but a lot of folks are being increasingly impacted all across the country. that's many why my budget replaces these, eliminating wastes and programs we don't we don't need anymore. so building new roads and bridges, educating our children from the youngest age, helping more families afford college, making sure that hard work pays. these should not be partisan or

controversial. my budget makes the investments to grow our economy and create jobs and it does so without adding a dime to our deficit. now on the topics of deficits, despite all the noise in washington, our deficits are already falling. over the past two years i signed legislation that will reduce our deficits by more than $2.5 trillion. more than two-thirds of it through spending cuts, and the rest through asking the wealthiest americans to begin paying their fair share. that doesn't mean we don't have more work to do. but here's how we finish the job. my budget will reduce our deficits by nearly another $2 trillion so that all told we will have surpassed the goal of $4 trillion in deficit reduction that independent economists believe we need to stabilize our

finances. it does so in a balanced and responsible way. a way that most americans prefer. both parties agree ha the rising cost of caring for an aging generation is the single largest driver of our deficits. and for those like me who deeply belief in our social insurance programs think it's a core thing that our government needs to do if we want to keep medicare working as well as it has and want to preserve the ironclad guarantee that medicare represents then we have to make changes. but they don't have to be drastic ones. and instead of making drastic ones later, we should be making manageable ones now. the reforms i'm proposing will strengthen medicare for future generations without undermining

the guarantee that medicare represents. we'll reduce our government's medicare bills by finding new ways to reduce the cost of health care. not by shifting the cost to seniors or the poor or families with disabilities. they are reforms that keep the promise we made to our seniors, basic security that is rock solid and dependable and there for you when you need it. that's what my budget represents. my budget does con feign the compromise i offered speaker boehner last year including reforms championed by republican leaders in congress. i don't believe all the ideas are optimal, but i'm willing to accept sthem as part of a compromise. if and only if they contain protections for the most vulnerable americans. but if we're serious about deficit reduction, then these reforms have to go hand in hand with reforming the tax code.

to make it more simple and fair so the wealthiest individuals and biggest corporations cannot keep taking advantage of loopholes and deductions that most americans don't get. that's the bottom line. if you're serious about deficit reduction then there's no excuse to keep the loopholes open. they don't serve an economic purpose. they don't grow our economy. all they do is allow folks who are already well off and well connected gain the system. if anyone thinks i'll finish the job on the backs of middle class families or through spending cuts alone that hurt our economy's short term, they should think again. when it comes to deficit reduction, i've already met republicans more than half way. in the coming days and weeks i hope the republicans will come forward and demonstrate they're really as serious about the

deficits and debt as they claim to be. growing our economy, creating jobs, shrinking our deficits. keeping our promise to the generation that made us great but also investing in the next generation, the next generation that will make us greater. these are not conflicting goals. we can do them in concert. that's what my budget does. that's why i'm so grateful for the great work done in shaping this budget. the numbers work. there's not a lot of smoke and mirrors in here. if we can come together and have a serious debate not driven by politics and come together around common sense and compromise then i'm confident that we'll leave the country

better for our children. thank you. god bless you. god bless the united states of america. >> and that's the president of the united states having just laid out his 2014 budget. this is something that came much later in the process than it usually does. he was waiting for republicans and democrats to lay out their own proposals. you have $580 billion in tax increases by limits the value of deductions to 28%. also by implements the buffett rule, requiring million dollar incomes to pay at least 30% in taxes. you also have some other tax increases on tobacco, limiting tax benefits for iras. and hedge fund managers to pay for lower middle class workers. things like universal, preschool and other benefits.

the questions are do we then get talks on a so-called grand bargain? some want to have this discussion. we'll see where it goes. simon, back to you. sfwl thank you very much. john har wwood with the latest there. during the course of the next hour of "squawk on the street," we're going to mix it up and take a slightly different format than we usually do. we're going to talk about the budget. we're also going to talk about the revival of detroit. could it be a blueprint for other cities around america? and we have fresh fact faces to take us through. also with us, mike santoli you will know from yahoo! a colu columnist there. the next hour we're calling

"squawk on the street" overdrive. ♪ >> the third hour of "squawk on the street." thank you all for joining us. you've just seen the president there unveil his budget for 2014. mike, he said it was a blue prohibit for the middle class jobs and growth. the "washington post" saying the most real venlevant thing is it fall into a political vacuum, the depth of which we don't really know. sfwl i think both sides are not happy with the proposal, which means it probably has something going for it in terms of compromise potential. i think it's a low stakes document. i don't think there's a sense that it's make or break for the economy or the budget. it's sort of a starting point. >> certainly a lot of members of the gop comment that this budget is dead on arrival. if you look at the stocks of the

private equity firms, you would think with the increase and the tax rate on carried interest from 15% and the top rates at 40%, you would see those stocks being hit if people believe they get past 4% today. >> or at least the buffett rule. >> but i'm talking about the income at the private firms and huge funds. a lot is coming from the tax own carried interest. one told me when a lot of the firms were founded, that rate was 28%. you could go back there. 39% for a lot of funds is excruciatingly high. >> it's interesting because it's making a lot of people very angry that obama would mention tinningerring with social security. to the people on the right it's the equivalent of -- >> do you have to be on the far right to want some changes?

>> i don't think so. one of my sources on wall street e-mailed and said doesn't the federal government understand social? we have to fix it or we're all in trouble. >> or entitlements in general. one of the things that has happened is simply by the economy getting better the deficits have become narrow. the stakes seem to be lower. therefore the temperatures are lower around the debate. i don't believe the long-term problems have been addressed in any respect. >> on the subject of the committee, talk to me about the underlying assumptions that you see. >> that's the interesting thing. the asusumptions are are assump

and we don't know. they want to inflate asset prices, which will in a weird way help the budget. that comes with all sorts of dangers. you had paul volcker raising a question about the central banks intervention in the economy. i think it's a frightening question for the future. >> we should mention that we had it released early today. what was your take on that? zbr the take was more of the same. it's not doing to change. it's not a catalyst at any moment. this meeting would have happened before the jobs number. it is status quo until we see something endearing. >> but it does seem like the timetable is being moved up. a lot was being talked about about the end of the year, the end of the year, the end of the year. >> really, even with the poor employment report that we have on friday?

>> well, you can't really take them at face value because of the timing gap that we have there. but when it talks about the fact that the unemployment picture is actually softening but the overall labor market is getting better, reverse those and that's what we saw in march. it's hard to take it at face value. >> i think it's also going to be interesting with the bank of japan moves and what is going on in europe xz that may make it more complicate. >> how would you play in terms of the market? you read most recently about the old school defensive consumer discretionary plays. >> they've been leading the way. that's all outgrowth. the stocks that look the most like bonds are doing well

recently. everyone like me is calling for a pullback for the last two months have gotten the pullback below the surface. these old stocks have survived. new highs, we're getting to the april 15th moment when you have seasonably strong tail winds. we'll see what happens after that. i think it's been overall healthy in terms of the way the market has pased the baton within it. >> call me a skeptic. >> we like a skeptic. >> the fact that the corporate margins are so far above the historical average. i saw 70% above the historical average. and what does it mean for the market if you see a decline in corporate margins? again, i can't help myself. i'm a bear at heart. >> but to quote steve liesman, he pointed out one of the members said asset purchases should end because the costs are starting to outweigh the benefits. not for any other reason.

>> let's leave the markets for a moment and turn specifically to work that you've been doing, which is on the security of people banking online and mobile banking at the moment. how worried should we be? >> i think people should not be as worried as maybe the headlines make it out to be. since president obama called for further disclosure about cyber attacks we have seen a lot of disclosures from companies and banks especially starting to admit that this is a cyber attack. we are being targeted by who knows what in this situation. so a lot of consumers are saying, i'm starting to get scared because of the prevalence of a lot of this information. we found interesting data in our interviews. one bank executive said you done get credit for the crises you avert. that's the case in every situation. but he said banks get nearly 100,000 attempted attacks.

whether they are harmful or not harmful in any given day. a lot of them are low brow 15-year-olds trying to track a code in this situation. but this is the hrsage of hacks that actually happen that affect your money. this is isac. i believe that we have this chart on the wall. in 2009, 70% of hacks that occurred attempted to breach an account to commit wire transfer fraud. go to 2012, the end of last year, 65% were nonharmful. they were trying to blow out the traffic of a website. only 9 pk were trying to get your money. as the hacks become more prevalent, your money is safer. >> it depends on the potency of the attack. i assume they are well fupded with great programming. do you bank online? >> i do bank online.

of course i do. the convenience outweighs the fear factor for me. but i will admit i have a fear factor. when you look at one of my favorite themes is you can never go wrong overestimating the amount of competence in the world. when you look at the the bank's able to handle things like the foreclosure crisis, it scares me that we're placing so much trust in them. >> they still say that the precaution lies with the consumer. you have to be aware of what you're downloading on your mobile device. what you're accessing on your computer. that allows malware into your account. >> if there's a problem, i'm assuming the bank will make good on that. >> it's insured, it is. up to a certain extent. i posed the question to someone on twitter. a lot of bank executives say banking paperless is safer than banking in a branch.

you could drop your check on the way. >> billy risk. >> it's a wonderful life. he loses on the huge deposit in cash. >> one guy said i feel safer banking online because i feel safer logging off a website than walking away from an atm with cash. >> i would like to know what city he lives in. ahead in the program, general motors liking facebook with a new ad campaign. will more companies follow gm? "squawk on the street" overdrive, as we're calling it today, will be right back. my mantra?

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that's how ameriprise puts more within reach. ♪ general motors confirming it is going to advertise on facebook again. the company that famously decided to pull out from the social network just days before the ipo last year is returning to facebook with a test program for the chevrolet sonic.

the returns comes after gm says the $10 million spent on ads on facebook was ineffective. since then, of course, mike changed some personnel at gm. you can only imagine the wrangling that has gone on behind the scenes between facebook and gm, the bargaining to get them back. >> presumably. i think it's telling that they're going it on the facebook mobile platform. you get a return on your investment in advertising on the standard platform. and it seems there was a little bit of fatigue. maybe a small sign that facebook has prospects. gm, a massive advertiser that is not going to exclude my venue with facebook being ubiquitous. >> i think the chevy sonic as well, the two programs come together because the sonic is so

heavily based. zbr i think the gm news was tied in with this offing. you could believe this is a sign of a resurgence. basically why he believes in facebook after spending months investigating it and has come to the conclusion that this is all going to work and facebook will indeed rule our lives. they believe that mobile advertising will work and the company has more new products than you believe. >> do you have a facebook page? >> i do. i'm going to age myself with this. but i was in college when this was invented. this is the way that you met people and that you found study groups and you got to know the people in your classes. i've sort of come of age with the facebook generation. it's interesting to see how many of my friends and colleagues have sort of ditched facebook

because it's too latered with that. it's no longer a place to connect with people. it's a place to consume these. people who have regionally adapted it as a connecting tool don't like the way they see it as a news feed. gm, though, i find it interesting that gm alone is a facebook story. even at the time of the ipo, ford said we don't know what gm is doing. we find their ads effective. >> so you get headlines and you can't understand the weight, but they still get pushed to the front. one last thing on social media and the relationship to financial markets and journalists and ceos, that's certainly changing. >> people feel that's all that they need. it's their personalized news sticker. >> is that arrogant if you're a ceo to say i'm going to use twitter and if you're not

following me that's your problem sf. >> i doubt it. this is the standard. this is what everybody walks around with all the time. i do not tweet. i am so old fashioned it's ridiculous. i'm also a believer in old school journalism in the sense that when you pick up a paper, you read things that you didn't expect to read. something that might change your mind you tend to read more what you're already interested, and that's dangerous for all of us. >> it's been a wild ride on the markets. we'll talk about what is coming next and how you can play it on "squawk on the street." and the bells are about to sound. we'll have a look at what is going on there as well. stay with us on cnbc. clients are always learning more

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and the marks are closing across europe. you'll notice there's an awful lot of green around. european stocks are up for a third straight session. both separately today warned of no signs of an economic upswing in europe, but the promise of another unprecedented tsunami. this time the bank of japan is

ensuring the euro is riding relatively high. the debt markets are also riding high, though. the euro has come down a little bit as a result of the news that we had on the federal reserve. look at that gain on spain. a 4% gain on portugal. these stock markets are really rocketing. italy may still have their functioning government. we have not seen on their bond issue since january and leading the equity charge, those portuguese banks on report that eurozone finance ministers are about to suffer the loans by extending the matureties seven years. so kicking their problems really to the 2020s. astounding move there. what does that mean for american investors? >> well, the backdrop is that central banks around the world

are fot going to wait for markets to throw a big tantrum this time around before they flood the earth with more liquidity, and the japanese efforts are obviously trumping almost all the other ones. that money heading into european debt markets and calming the waters across the world. to me that's the backdrop that the description and explanation for these moves. i don't know if you can justify them on more than a one-day basis, but that's where we're at. >> then you have china trade data. that was positive. you have two data points lifting the markets. >> you couldn't say it was a turn in the european economy. >> it wasn't a turn but another data point that lets people say, okay, the world is not ending today. >> i don't think anything justifies it but the big rise we have seen in markets around the groeb. and the big question is what is the risk that comes with that?

you can say the age of interfering in marks always ends badly. >> what way do you think it will end badly? >> inflating asset prices today is another way of borrowing from the future. if you have stock markets going up today, easy money policies, then you're borrowing money from the future. you're taking gains today that maybe you should have years later. albeit in a slightly twisted fashion. >> i suppose if you're able to cancel the negative sent maniment if you can maintain confidence, can't you maintain that? it's possible, isn't it? the ratio of the s&p 500 is not outrageous. >> it is possible. and if you believe, for example, the capital gains taxes are going to play into the real economy, help us balance our

budget, et cetera, there's an interaction between the market and the real economy, and it could play out well. that's the gain that central bank chiefs are betting on. >> simon, a lot of people used this as a talking point saying it was lower than the rallies in 2000 and 2007. that's the reason why we have room yet to go higher. there was a study that came out this week in usa today showing the main street investor is 66% were bullish in 2000. 56% were bullish in 2007. 35% are bullish today. i want to talk about what percentage of those multiples were driven by the retail investor that was uninformed and bidding up the stock prices. maybe where we are now, maybe it's a normalized level. >> potentially. i do think you have a lower potential for the overshoot where you get the public very excited about stocks. it could well happen again. it didn't really ap in '07. before the market was cut in half, before everybody was in the pool. so you're right. it could happen again.

that being said, i don't think evaluation is the thing that's going to be this rally's waterloo or the reason to buy it. >> we're all trying to get to the consumer market. from your experience, how important are they as a way of driving markets? >> not terribly. >> my impression is at the top. we had great inflows in january but rallied at the end of last year. >> at the end of last year we doubled the stock mark in four years with investors pulling out. so i don't think it's actually the major driver. it's not the big swing factor that we need. it's a big question if we're going to get a more exuberant feel to things, maybe you would need that. before there was a lot of stop about that. and there's a lot of money ahead of the tax rates. there's a lot of cash that

wasn't ahead of anywhere else. it was ahead of the december 31st watermark. >> there are signs of a bubble in risky asset prices. >> you're very pessimistic. >> i told you, i'm a skeptic. >> yes, you are. march is the biggest month ever. forget the bubble. ever. look at junk bond yields. very impressed. there are scary signs out there. that doesn't mean this is going to end badly. don't be a skeptic. >> speaking of skepticism, electronic arts is number one again. the video game company voted the worst in america. getting inting 78% of the vote. >> sort of bypass it all

together. what i find interesting about this in almost a reverse fashion is customers must feel incredibly passionate to feel that chair cheated this how they are forced to consume them. >> for those who don't know consumers, it's a blog if you go to eat at subway and find a worm in your sand which, you're going to take a picture and post it. this is a consumer driven website where 99% of the content are from consumers disgruntled with their experience at a retailer or a company. to look at bank of america, the second most hated company on the list and on what street it's one of the best. the stock doubled in the past year. >> two shareholder ls. >> >> two shareholders. >> or customers who go into the branches or who bank with them.

>> they also have more deposits. people tend to not be in love with your bank. >> are you in love with your bank? >> i am most did he feel not. i do go to a branch. they let me bring my dogs in. >> television is going to the dogs. find out how soon you'll see dog tv on a channel near you or at least on your channel guide. "squawk on the street" will be right back. coming up, the matter city is taking it up a knock. this time with watches. we have all the details. when "squawk on the street" overdrive returns. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track

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coming up next on the half, live from the new york stock exchange. stocks are record highs. big caps are leading the way. we will tell you how long this trend will last. gold man's gold call. is it time to shorten the metal a bull versus bear debate is just ahead. and normally you need to be a client to get advice from a top ranked final adviser. not today. he's with us sharing his ideas and just for you. we'll see you in about 20 minutes. >> counting.

thank you very much. one company wants to put a new face on detroit. mary thompson is live in the motor city with that story. good morning, mary. >> good morning to you, simon. it's a new company with an old name. they set up to tap through the rich design history and manufacturing history as well as the new energy ceo is fuelling the future. >> if you get in your car, you can drive around detroit and understand the past. the people we meant were so focused on the past. they were focused on the future and where this was going. that helped evolve the shinola story. >> the shinola story is about making high-end watches. it switched over to asia in the last half century. they use good eye and steady

hand. this spring they will assemble 65 styles of watches to be sold in shinola stores and at retailers. come and see the factory before they can sell the watches. now early indications for the brand that also happens to include high end bikes appears to be good. a limited edition watch sold online for $550. it sold out in a week. seems shinola knows watches. >> in fact, guys, there's an article from the editor of atlantic city where he talks about a remodel for regenerating other cities for around the united states as you pull together cher tabl foundations in a city. you're looking skeptically. >> i'm going to come up with a nice comment to say really. >> well, what's the problem with the rebound idea? >> i think the rebound idea is lovely. i'm all for entrepreneur ship and job creation and kudos to

people who are trying new things. there was another article in the journal yesterday talking about keeping police protection in populated areas. >> private funded charities. >> yes. and the last comment was so telling and tragic about how we have to do triage. it was not an upbeat commentary. >> mike, do you believe that we do have a resurgence of manufacturing as the headlines wuld suggest? maybe not in the employment report. >> i think it's around the edges. obviously there is this story on small measures of infield, old industrial real estate and prublgs capacities out there. if you actually are optimistic about it, i don't think it's something that can fix what is a broken city. >> well, shinola has 25

employees. ford, i think probably makes a little bit more of a dent in the economy. i don't think that we're there yet. >> up next. the online retailer making a big bet on brick and mortar. coming up, parker is opening the first flagship store in new york city. will this new venture lead to frame and fortune? we've got specs appeal when "squawk on the street" overdrive returns.

pwc is helping spread that message

. worby parker, which made a name for itself by selling affordable prescription glasses online, continues to transform the optics industry. huge indus. this weekend they will open their first store in downtown manhattan. carl quintanilla has been speaking with the co-ceos. >> we want all the glasses out in the open, have plenty of room to walk around, get opinions from your friends, family members that you might bring in here, and we think glasses are fun and the shopping experience should be fun and really that's what we are trying to create. >> how about the choice of soho? was there any debate? is this almost where you have to put a flagship if you are going to be in this city? >> we thought soho made the most sense for us. there's a good sense of native new yorkers and tourists, so it sort of checks all the boxes

from a brand perspective, sales perspective, from markets and raising awareness perspective. >> we are all big fans of drexler and what he's done at gap over the years and what he's now doing at j. crew, where has he led you strategically, tactically, what has he brought to the table as far as you're concerned? >> the first time we met with him was his gut reaction was, you need to open a store. so it's been able to grab lunch with him and share ideas and just see how he sort of views the apparel and accessories world and retail in general. and he's been really helpful. >> we grab lunch with him every few weeks and he's provided us with a ton of advice. when we were raising the last round of capital, it was great that he was willing to personally invest and that just gave us a huge boost of confidence that what we were building from a brand and retail perspective was something that was really special and we were on to something that could really create an incredible brand. >> you were talking about how

the data you've had for years online, i'm sure it gets fused into the bricks and more for space, too. >> we have a technology naval and we started by selling glasses online. and we wanted to incorporate some of those technology innovations into the in-store experience and make it as seamless as possible. >> we have intelligent systems that can track the actual number of smart phones that are in the store. and we can see how people are moving throughout the store. >> can i ask about the future of that as a platform to sell eyewear? >> i think we would possibly say there's a convergence happening between sort of e-commerce and retail, but there's also a convergence between fashion and technology. and technology is not only going to help brands better sell their products but it's going to change the nature of those products, whether it's apparel designed by, not designed by, by

manufactured by robots that are using as little fabric as possible, that's helping to lower the price but also sort of helps to reduce waste. yep. >> or it's a watch that connects to your iphone or doesn't even need a phone and you're able to check your e-mail on it. >> what are you going to say to those, and i'm sure there will be some, that say, ah, warby parker is going bricks and mortar, the pure e-commerce model is no more. how do you respond to that? >> i would say the person -- i wouldn't hire that person to work in retail or fashion. because they see the world in black and white. and this is really -- it's always gray. >> the co-ceos there talking to carl quintanilla. the store there opens on saturday. old school?

>> i think so. i actually have a pair of warby parker glasses. i'm a huge fan. i have a more expensive pair i sat on and crushed. but these are cheap and indestructible. i don't wear them on the air for a reason, so i will put them down. but they have a speak easy near union square, if you wanted to try them on in person or wanted to deal with a human and actually try on the frames to see how they looked on you, you had to ring this buzzer off union square, go up to the fourth floor, it was a hole in the wall and sort of a cool experience. i feel like i was there from the beginning. but oh well. >> ahead on the show, no need to feel bad for leaving your dogs at home anymore. it's coming, dog tv. we'll explain after the break. i'm here at my house on thanksgiving day,

and i have a massive heart attack right in my driveway. the doctor put me on a bayer aspirin regimen. [ male announcer ] be sure to talk to your doctor before you begin an aspirin regimen. go talk to your doctor. you're not indestructible anymore.

great news today, there's apparently no need to feel bad about leaving your pup at home all day while you're at work. directv is set to offer tv programming, yes, it was inevitable, for dogs. dog tv debuted sometime in the third quarter. the channel broadcasts content

specifically for dogs, which you'll be pleased to know it sees other animals in different sequences and moving objects. good for your pup? >> i don't let my kids watch tv, i'm not sure i let my dog watch tv. >> it could be led astray, perhaps. >> possibly. one of the images they show is of a moving slug. who knows what that could evoke in a dog's brain. >> somehow it may catch on are. you a dog man? >> i don't have one right now. there are two cats in my home, that i tolerate that my wife and daughters like, i wish they would have a channel -- >> are those your cats there, mike? >> that's my wife's cat. >> one of the ways to poplarize a lot of the content here is to have pictures of cats in hats. >> i have resorted to that. >> are they fans of grumpy cat. >> i just hope something tires them during the day so they don't run at night. >> that's the point, right?

>> yes. >> do you have any animals? >> no, i feel bad about this. i'm no dog but anti-dog. i'm going to lose that battle eventually, i know it, but for now i like my peace and quiet and like to take care of me. >> in conclusion, after all we have spoken about, and what we have talked about, what closing comments would you have? >> i think there's too much satellite bandwidth in the world that they need a dedicated network for dogs. that's my one take. >> wow. >> bearish on everything, but i love the dog channel. >> bearish on everything. >> with the exception of the dog channel. you have to celebrate that. there's something to be positive about. >> i'm going to quit my day job and invegetable dog tivo. that will be the next big thing. >> guys, great to have you on today. interesting experiment.