have mixed futures. the dow futures are up by about 23. s&p is up by just over 2 points. nasdaq is slightly weaker, but it was the biggest day for the nasdaq of all the markets yesterday. the s&p and the dow turning in record closes yesterday. s&p surpassed its record interday high from october 2007. by the way, all 10 s&p sectors finished the day in positive territory with six posing gains of better than 1%. the nasdaq ended the session at a 12-year high after its second best day of the year. and that market was up the most in terms of percentage. a monthly assess for the markets, we had some numbers coming out. the weekly jobless claims will be the biggie. last week, it j's jumped up to 380,000.

after the lousy jobs report we got on friday, this will be the number of people that are watching to see if this is reflective of another weak number in terms of job markets. forecasters are expecting first time unemployment filings to fall from 360,000 from last week's 385,000. meantime, import price res seen falling by 0.6%. >> and the markets are really doing well. really in rally mode. >> yeah. >> yesterday, remember the guy at the cme with the bad jacket on -- >> which by the way he saw your bad jacket and tweeted about it. >> so he had a bad jacket on, but he was one of the same guys, i have to have a correction here. no way i'd put money in here. yesterday we're up 140 points. and he tweets out, my jack is bad? and i went back to him, not as bad as your market call. so he has a good sense of humor.

here is my deal, seriously. you only need to get back about a month to get a 5% decline here. so anybody that before a month ago was saying -- you know, these pampas blow hards that come on here and say, oh, we're due for some type of correction. i don't fight the fed, but i'm looking for a correction near term. it has not come and there's guys that have been saying that for five% a month. so they were telling people not to get in and even if we did get a correction, it's not getting back to where we have people -- people that have watched, have thaerd hesitate guys saying the safe way -- now, when do these guys ever come back and say, alrea already.

there's a guy we get a message from four times a day, comments on everything in the world, he's been bearish the entire way up. how do they become redeemed? >> this market has fooled a lot of people. >> it has fooled a lot of pem. we have been saying almost all along if anybody -- and there's no excitement. the thing that worries me, no one is excited to be rich. and we're in this kraep economy where i know we're at 7:00 unemployment. and people -- it almost seems to be the time for social issues. i'd be interesting to see what the percent of people, the general percent of people invested in the market. there are still times when cocktail waitresses are talking

about it, where parties are talking about it. the only thing that scares me is the back drop still feels kind of negative. it doesn't feel like a bottoming economy that makes me think this is 85 million coming in from the fed and maybe this is artificial and that the economy has gone up with where the market has done. there's people not -- >> no this year n. >> wow. that will be -- >> it wouldn't be that 18% kissing your sister that we talked about yesterday. i'm getting excited about about the market. watch out. >> it is catching. >> and we'll see today, if one guy comes on today and says,

oh -- >> well, you're scaring all of them away from that right now. >> they should be. they make money. they get paid at these firms to say this stuff and they have no idea more than anyone has. i'm kicking out some of these market masters. >> you've already kicked out a couple. >> i had to kick out a kubl. i thought they had to die. also, would he have been watching the markets closely. philadelphia fed president charles plosser is repeating for his call for the fed to begin tapering the asset purchase program. he says tapering should begin with the goal of ending asset purchases before the end of this year. in an appearance at hong kong this hour he says he was not in favor of expanding the fete bad

sheet. some people wanting that table we can talk about smrlgs. >> i was thinking at every issue we're like this. even guns. you have the people that don't want to do anything. they're so set in their ways. you've got people -- they have to compromise, but "the daily news" says all for nothing. on one said, they're so happy that they got something done and it took a big compromise with toomey and mancion to get this far. then the journal says it's dead on arrival. this lead story, obama budgets whittles away at the pillars of the democratic party.

>> yeah. >> but i think it's kind of good that we have people representing us. we don't do anything crazy here or here so we find common ground and move slowly. >> but we haven't found common ground. >> you want to be sure before you do some of these things. >> you do want to be sure. but there are so many things that seem leak they would be common sense and the common sense -- >> like the background checks. there was a person who said this is the first step to a ban. then dianne feinstein, if he could get the senators, we would ban all guns and we would go house to house elect whiching th them. >> background checks, it seems like it's going to get done.

>> everyone is still talking about how the fomc minutes were sent early. does that give you confidence? they did it earlier to more than a hundred people. unfortunately, they were congressional staffers who those guys would never trade on info. the fed has launched an investigation into itself. >> no kidding. >> some sometimes this reveals 12 banks, a wall street banker.

a lot of banks -- >> half the world. >> it's just letters, yeah. in corporate news, some of the nation's retailers will report same-store sales today. costco will be out of the gate. the retailer says march comps rose 4%, not the 4.5% people had been loepg for. and yum is dealing with food scares and bird flu in china, its most of the lucrative number. >> just when everything was turning around from the probes. just as the latest numbers come out. yum could be in doubt at this

time. else wrb toyota, nissan, honda and maz sxda have recalled 34.4 million vehicles. there's been no injuries or deaths reported at this point. >> again, let's talk about the markets. we did mention that the futures at least for the dow and the s&p are higher this morning. naz dance looks like it's slightly lower. oil prices, which it's interesting to affect that. the 10-year note is in the 1.6% range. the dollar is weaker against the euro and the yen. euro is at 1.31 is 1937.

>> if you had to describe opec, my daughter, she said what is that? would you have trouble describing that? >> it's complicated to tell what a cartel is. it's hard without sounding -- >> yeah. >> what you will look sup it's a group of countries that there to provide stability for the oil markets 37. they control output theoretically to control supply and demand. >> but it's to control prices. >> they totally do it to control the prices. but you can't just give an objective -- it's like -- >> you? >> it's hard to explain what opec does without somehow -- >> well, even the idea of a cartel, you have to describe what a cartel is, as well. that knows this.

>> if only ross westgate were mere. >> there he is. >> ross, we can't think of a better person to turn to. >> what particular help do you need? >> what c doross? liv in london. they drive ferraris. i've seen them all over there. >> there is some middle eastern money. you're right. it does find its way to london, joe. i don't know that it's necessarily all the opec members. we had the ima -- sorry, the iea data out today, as well, saying, you know, saudi arabia has a bit of a problems because they're already reducing their supply. but as we get supply increasing from the united states and canada, they have a bit of a

balancing act to try and achieve. we have seen brent couple down, 1.18 was in february. 1235rs the equity markets is concerned, you have to go in. nos far away from its decliners at the moment. right now, it's slim gains, up 0. 25% for the ftse 100. the ibex is in the red 0.13%. xetra dax up 0.5%. ftse mib up 0.5%, as well. let's show the sectors. only three down in negative territory. basic resources, a big gainer in the previous session is the one where we've seen a fair amount of profit taking. financial services, travel and leisu leisure, household goods doing

fairly good, as well. italy raised 7 billion of those. the yield coming down, again, 4el had 8. the fact that there is no government in italy, it doesn't mean people aren't prepared to keep buying up debt. back to you. >> ross, i was thinking about that. i was thinking london is very cosmo. a lot going on there in terms of -- >> ross is very cosmo. >> he's very cosmopolitan, as well. speaking of the entire planet, here we are again. the world is on alert for a north korean missile launch or launches. chery kang joins us from seoul was uneventful. we keep talking about it every

morning on, right? >> why. having north korean watchers going the north korea, i could major a turning point in all of this. we have a ministry solely in charge of the inter-korean matters. he came out with a statement saying the two koreas should discuss ways of normalizing the industrial part through dialogue. pyongyang should come to the bargaining table immediately.

and now north korea announced that it's restarting its nuclear reactor and threatened to carry out a nuclear strike gets the united states. the south korean government's response came today. this is what i've got. but although this is -- this does not mean no missiles yet, you know, there is no change in terms of the alert level that we've got going on here in the south and in terms of north korea's preparations detected at its launch site. guys. >> i hope he can -- you know, at this point, he's gone so far that you rather that he needs to save face. i wish.

i worn, i'm fofsed to come back to the table. is that what you all are thinking? >> exactly. all relevant parties, south korea yab, china and the united states, we all need an excuse, a way out of this situation. and if north korea goes ahead with its test fire, then it loses its leverage. it can work. that's why i'm paying attention to this statement and how north korea can take this statement that came out today. >> chery, thank you very much. when we come back, bill ackman is speaking out on his jp penny disasters. first to come, yesterday's par three matters contest ended in a five-way tie with nobody

begging to win the. cotigz and loeshlry jinx it anything other than a matters title.

welcome back, everybody. bill ackman is breaking his silence. ackman says he is sticking by the beleaguered department store retailer. he says we are digging in. i don't know if that means he's buying more shares or if it means he's not selling a single share. but if you were worping, bill ackman is still in the picture. >> calling all road warriors. if you have about a million-and-a-half dollars and two years of vacation time bank, you could take what could be the world's most expensive trip. a website called veryfirstto.com is offering the trip around the world. you'll visit 962 sites as picked

by the united nations world heritage having outstanding world and cultural value, places in the u.s. just yellow stone. >> jelly stone is a chain of campgrounds around the country. >> i was doing yogi -- >> rin. but it has yogi on the sign. >> they named the statue of liberty. international locations included the taj mahal, the great pyramids in china, also peru's machu picchu. your flights will be of business class and your hotels at a minimum ultra high end. >> there it is. wally world next three exits. wally world. >> well, better pack lightly,

though. otherwise, you'll rack up some serious baggage fees. the thing is, i was thinking about taking a little bit of a sabbatical. i was wondering what you would think if i was to take some time off to manager weiner's campaign. do you think he would let me manage his -- we need the weiner, we do.we need the weiner coming back. he wants -- erect me. >> is that what it says? >> erect me, mr. mayor. it says it right there. weiner, give it up. >> nobody needs weiner, do they? >> no. >> definitely. >> do you want me to pick that one up and run with it? no, we do not. and i can't believe he's even considering -- >> why is everybody laughing at that? i don't know why.

but would you be terribly upset if i were to take off and manage his campaign for him? >> yes. yes. i'd miss you terribly, first of all. >> i got on twitter and i was going to tweet my weiner out at the grill. >> i remember. >> i was going to tweet the picture of a ballpark frank is what i was going to say. i say it, but i'm afraid to do it. >> you'll say identity national television, but you won't tweet it? >> i won't do it because if you did tweet your weiner, it would be there forever. thank you but no thanks. mayor? give it up. i thought desome polls. you know what he's got? he's got that really connected wife. >> she's a very hard worker. >> me having a great wife doesn't rehabilitate me. >> penelope goes a long way.

she does. >> becky doesn't need a weiner. okay. we are taking a look at immigration. a debate in washington and opinions around the country, we start with a report from jane wells. >> strawberry season in california, a drive along the 101 in oxnard and you see the workers, those that can be found. >> it's getting more and more difficult to find workers that come out in the field and do this type of work. >> fewer migrants are moving north and examine pickers are getting pickier about which crops to working with holding out for the highest pay. of the 70 beds, this season, only 40 are filled. >> are you surprised to see this place almost half empty? >> i was very surprised because the need is higher. >> some farmers have stopped waiting for changes in immigration, instead, investing in big up front costs for machines to reduce the need for

human pes. >> people are getting bigger pieces of equipment that can cover more ground with less employees. >> wayne barrios is spend background 50 grand to upgrade a tomato harvester and cut the manpower on board from six people to two. >> this sorts the dirt, sorts the green, sorts the rotted tomatoes that we don't know. >> he's also putting in expensive drip irrigation. >> how much does this save you in terms of labor? >> probably around 0% or so. >> and many farmers are changing what they grow, transforming labor intensive crops to those that can be harvested to machine. some crops, however, may never been pick mechanically like fresh strawberries. >> the next generation of farm workers aren't going to be born in the united states. they're going to be born on foreign soil.

we need to provide the mechanism to access those people. >> jane wells, cnbc news, sacramento. joining us right now from washington is john harwood. he has the latestfindings. when the poll came to immigration, three or out of four americans are in favor of finding a legal passion to immigration? >> that's right. remember, this is why immigration has a good chance of moving on the hill. we also have a question in the poll that asks do you think overall immigration is good for the country? it helps the economy, helps culturally in the country or does it hurt for various reasons? and in the past, we've seen the majority say it hurts the country. that's usually in periods of greater stress and strain

economically and when the flow of immigrants is higher than it is now, now we see a majority saying immigration helps, which is one of the reasons why it is a relatively good environment for the president and the congress to pursue this. >> we kind of new this after the election results of last time. you mentioned this is definitely an issue. the president out with his budget yesterday. when you talk to people about the sequester, most of them don't feel it's affecting them permanently? >> not necessarily on the president's side. what they say is 47% say the budget sequester hufts the economy. this is one of the reasons that might explain why the president's approval rating has dropped. he was 53% in december after the re-election, a victory over mitt

romney. he's now at 47%. what's happened since then? the white house and the congress could not avoid the sequester. we now see by three to one, 47% say it hurts the economy. 53% say it helps. >> that's a pretty funny number, too. you can always count on that year. >> there you go. >> but if 30% say they don't think this matters at all, people look around and figure on either side the sequester has done a stupid way, but at least it's some sort of cut coming through? yeah. but what happens is on the margin, when you see a number that large, the 47% saying it hurts the economy, that's going to have a follow on effect on how people look at how

washington is performing. the public opinion environment for the president, as we just discussed, is better on immigration than it is on the budgetlty this moment. and on guns, it's promising, which is one of the yoens, again, why you saw joe mancion and toomey coming out with background checks. 52% of people say sgun laws must have been made less restrictive. but the president is trying to see what he can is leverage whatever exists in public opinion. >> john, where have you been? many times i've needed to talk to you about all this stuff. >> i've been around. you guys have been focused on markets. you're not paying attention to washington. washington is falling off the map. >> that's what i'd like to do. it has and that's bothering me. and i'll tell you, let's get

this immigration done, please. let's get the guns thing done, do it. with background or whatever you need to do. do everything and let's get back to jobs. because at 7.6%, that jurndz states how people feel in this economy, john. i'm just telling you it does. it doesn't feel like an economy that's cranking, that's going to add a bunch of jobs. >> it's not cranking. >> we've got a market that is ready to have the underpinnings of the economy validate where it is right now and then head even higher, i think. but no one is paying attention. this could be great. >> when you look at the two repiecing proposals -- >> but they just need to -- >> and becky, i'm glad because when one side thinks that, you

know, entitlement reform is the end of the world and the other says it's not nearly fal nar enough, that means neither side is going to do something crazy to mess things up. >> true. >> we'll get some compromise and let the u.s. economy do what it does. that's just what i wish we would get back to that. because the market is ready. the market and corporate prots, they've got cash, we've got money jovr seas. we're ready, john. >> think about it, joe. so some degree -- whether it's gay marriage, immigration or guns to some of these core issues that we're pauking about, washington said, are renotice going to have that? that is a way that the waters get a little calmer and it gives the market more time to move in the direction it wants to go.

we'll see whether it results in growth. >> right. i know. i'm hoping it's not that 85 billion flowing downhill into the stock market with no, you know, real economy underneath it. one could come after the other. >> yes. >> the economy could catch up and then we go to new highs. theunder pinnings are there. thank you. we'll see you, john. coming up, fed matters. we're going to talk to a central bank watcher about the economy, stimulus and the course, of course, that early release of the promising minutes.

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welcome back. how soon should the central bank start tapering its bond purchases? bob brown is with fidelity investment bond groups. bob, in the last two weeks, has it become more clear that it will be by the end of this year? >> you know, joe, we have a very conservative view on the economy. it would be our hope that the

fed does not start any tapering until the end of the year at the earliest. we're coming out of a global financial crisis. we're in year four. the chairman is a scholar on the great depression of 29 to 32. the treasury, reserve requirements in '37, we saw the fragile economy fall off a cliff. unemployment. this is the first time in a 0-year recovery that the drop in unemployment is being driven by people leaving the workforce versus people entering the workforce. again, a very, very conservative view on the economy. >> we were just talking about what the employment picture, what it really feels like. 7-6 is nothing to write home about. i can remember, you know, in the bush and clinton years at almost 8%. 7.6% isn't great itself, but how we got there is even worse. the 102 million people thaernt working at this point, nothing really feels that great.

i think bernanke, who i've criticized and who is saying how long do we leave the training wheels on, he seems to know that we need to training wheels. and you agree, i guess. >> i absolutely agree. participation in the workforce is 63.3%. the peak was 67.3% over the past decade. and if you look at that going forward, what are we going to be faced with? we're faced with, you know, higher taxes on disposable income and basically flat to down top line revenue. so we don't see a rather optimistic picture for employment growth over the next three quarters. and it is weird because we -- the president -- no problem proposing another trillion. we did this 600 billion or 700 billion already and there's another trillion in this budget, right? it's almost as if -- i mean, i understand that spending cuts can hurt the economy. do they not understand that you can take money out of the

economy with tax hikes, as well? i don't think they understand that. >> i couldn't agree more. >> and you're in boston. you're not allowed to think up there, are you? you'll get thrown into some camp if you face stuff like that. >> a well functioning congress could go a long way to -- >> you're in new hampshire. are you getting any calls from the public at fidelity now to do anything? >> in terms of -- >> stocks. >> are they coming back? you wouldn't know. you're the bond side. but i'm wondering why there's no excitement about this market hitting new highs. >> look at the return o ten year has been 5.6% on equities, it's been 5.8%. they're both out for good long-term value. >> thanks. appreciate it, bob. see you later. when we come back, goldman's jim o'neill shares his view of the economy, the global and the market. then at the op of the hour ted

leonsis joins us. my mantra? trust your instincts to make the call.

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welcome back, everybody. goldman sachs asset management chairman, he is on the advisory board for cnbc's delivering alpha conference. jim, the headlines this morning from the ft include those comments from christine legarde from the imf. real concerns she has about what's happening in what she's calling a three-speed global economy, thinking this could be what leads to the next big crisis. how much do you think about this and how much credence do you give it? >> well, i'm just fresh off the plane from three days in africa.

i can certainly feel some sympathy for what she's saying. that part of the world is doing spectacularly well and it's very exciting the.we have to remember that there are, albeit smaller places that are still doing exceptionally well in many parts of the emerging world. i don't know, i think the broader issue is that the bank of japan's policy, which is so warranted and welcome, in my opinion, for what japan needs. i just saw the previous discussion with joe wondering about the stock market. it's probably an incorredirect consequence of what the japanese have just done. it's having a huge impact on the european bond yields, including the peripherals and probably many other places. and in some cases, it's adding to the challenges because it's making a lot of currencies of

increasingly strong when the domestic policymakers in those countries don't want them to be strong. and japan's at the cough that many of the rest of the world is worrying about, he's with the rest of the world. >> have we gotten to the point where you would call this a currency war? >> i don't think it's right to think about it in those terms. it's very interesting to see what christine legarde said the other day where she monday embraced the new japanese policy. it is geared towards getting japan out of what some have described as a happy depression for the past 20 years. and if the consequence of it is a weaker yen, that is problematic for some of the countries, particularly those that compete directly with them in some markets. but if one of the consequences of japan getting out of domestic

recession, and i note lots of analysts making significant upward revisions to our growth forecast, we shouldn't forget it. it is the largest country right now. they have plenty of policy decisions they can use to try and offset it. >> jim, i be you radio at markets around the world, but given what the economic back drop is, are they too high or is this justified? >> i mean, i think in the past week or so, we're clearly had a liquidity and pulse to the rally. i'm very torn about it, becky, to be honest. from a valuation per speculative, clearly the u.s. is no bargain basement give away

any more. but against that, you know, the last time i would have been here before the data for march. it looked to me the u.s. economy was accelerating in line with what we've had thinking. but the latest data is a disappointment. and so it's a little surprising for me to see the markets so strong and the only way i can explain it is because of the indirect consequences of what the boj is doing and maybe some belief that not only is the fed going to not do what the minutes implied more if the economy remains with the current momentum. >> is it okay if let's say we're in a beggar thy neighbor world where all currencies are going to be worth less. then all assets that are denominated in currencies that are worth less, they have to go up to be the worth the same amount, i guess. but your buying power is going

down. it's not that simple, is it, where we're spinning our wheels? the nominal numbers are going higher, but all the currencies are going to be worth less so we're not any better off? >> well, what happens to the intrigue from what you imply, one would imagine this is an environment where gold should be doing really well. >> and it's not, yeah. there's a number of slight contradictions. i don't want to take too strong a view on the whole push today. t the other thing i would mention, there are quite a few other currencies in the emerging world that are not going down. one could argue from a 20-year perspective, this is part of an ongoing change of the leadership of the world and the developed world as we know it is just not either economically or in terms

of financial allocation of capital the same place where it was. >> interesting. >> so, you know, i was a guest speaker at a huge african conference on capetown on monday and the place was buzzing. there were world wanted to put money there for equity and other reasons. >> interesting. good to know all those things. i hope you didn't bring back anything with you. you look good. got some sun and everything. you probably got your shot. thanks, jim o'neill. coming up, gambling in america. casino expansion in maryland. why other states are taking notice, next. ger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz.

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welcome back. in the early hours this morning, maryland live casino began action table gaming to the public. joining us is the man behind that venture, david cornish. how is it going so far? any big jackpot wins? anything to tell? >> well, there was a lot of money bet. i haven't gotten the financial results yet. we opened at midnight, the table games portion. it was phenomenal.

the results of who won and who lost i can't give you yet. >> where do we stand on you being able to maintain -- atlantic city is not that far. will you see everybody try to do this eventually? >> well, i do think it's a trend across the united states that state by state they are adopting gambling legislation. and it's sort of a domino effect. and the question will be when you have too many that you start reaching saturation. certainly we are located in maryland. we're nowhere near close to that. because we're relatively new legalizing gambling.

we've been open now seven, eight months. and we're the number one casino revenue wise in the middle atlantic area. i think of about 36, 37, we're number one. we're already pretty well surrounded. delaware, pennsylvania, west virginia has gambling already. and we've got our own pocket of customers here, which is very affluent and very dense with a good road pattern. but it will be interesting to see whether gambling spreads, for example, down south where -- until you get to florida there's not much of it. >> good luck. wishing you luck, which must sound a little bit ironic. it's all about luck when you're there. we'll check back with you and see how it's going in a couple months. thank you. all right. when we come back, groupon's ceo. plus, another squawk market master. stay tuned.

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it's been a wild ride for stocks. the major average is logging the best three-day rally of 2013. market masters and top business leaders tell us where they are putting their money to work and where they are finding opportunity >> breaking down the president's budget. senator ron johnson talks about the proposal and whether or not this budget blows the chance of a bar ban. one of the most successful men of our time. groupon ceo is our special guest host as the second hour of "squawk box" begins right now.

good morning, everybody. and welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen. andrew is on vacation this week. right now s&p up by one and a half above fair value. dow up by 14 points. nasdaq slightly lower, down 2.35. nasdaq up by 1.8 yesterday. dow and s&p touched new all-time highs yesterday. in our headlines today, the nation's biggest warehouse retailer short of the latest sales figure. they came out with 4% gain, a little shy of 5.2% streak it was looking for. cost cohurt by lower fuel prices and a stronger dollar. sequester cuts are harming the u.s. economy according to the latest nbc news poll. 30% say they have no effect at

all. 16% say they help. 47% say they hurt the economy. 46% say they either helped or had no impact at all. 58% of those polled say that the cuts have not had much impact on their own families. >> no idea. really. they have no right to judge either way. we don't know. do we have firsthand knowledge? it's just an opinion. >> no. we do have -- we have talked to ceos and cfos. they ran numbers. >> but that's the public. is the sequester hurting the economy. >> it's hard to say. we were watching all of these economic numbers so closely. it will be important too. microsoft is developing new version of tablet computers according to the wall street journal. it will include 7-inch version to compete with the mini and google's nexus.

s&p 500 finally reaching that all time high setback in 2007. joining us from cme group is jim yurio. jim, this has defied all logic. watching the jobs report that came out 8:30 friday morning. what do you think is really happening here? shorts getting washed out in every direction? >> no doubt. correction is the most expensive word. i have used that word a few too many times the last month. right now -- yesterday was an impressive show of strength. not only did it take out the highs, it stayed above the highs and settled strong, which i didn't think it would do. just two or three days ago -- to defend us. 18% is a hell of a move the last couple months. we should be a tiny biittner vows. i'm not saying wait for the dip but i will tell people the fact that volatility is at historical

lows. but i think on futures a couple days ago. his point, when the 10-year is hovering around 1.7%, those dividends at mcdonald's and the utilities, the the stock market looks good in comparison. and i think longer term it's going higher. i do think once it gets to 1600, then that's 25, 30 handles away. that's where i will get the most nervous. >> you have the benefit of hind set. you're looking back at 18%. the guys who said we would have a correction up 5, 6, 7, up 8, up 9, up 10 all the way to 18. from 18 you can say probably ready for a correction. all the way up they have been saying that. if we get a 5% correction it's still not going to get back to where they were in the market. once they missed the 18% they could never, with a straight face say, okay, i was wrong.

let's get in now. that's what i was saying. they're doing a great service to investors. keeping people out. keeping people, you know, as far as bricks in the wall of worry. yeah, i know we need a correction. but all along we've been saying as long as all you guys are saying it, it's not going to happen. >> no. and i agree with that. the day that we all say, forget, there's no correction, throw everything in. that's the time to be worried. >> they're all wearing those ugly jackets. the guy yesterday i said your jacket is ugly. >> he also made a short joke about me too. i'm hoping you guys had my back. >> that wasn't nice either. >> that was not nice at all. i think this jacket is a solid one. >> we have wild colored jackets in the pits because we want to

be noticed. i could have had a cow jacket. >> one of the lead sequence is stoc stockophobia. they have gotten burned by 50% pullbacks since 2000. they are nervous. but it lays out the case just with the next how often the market goes up. it goes up 75% of the time. just over the last -- there have been 32 years since i believe 1926 in which it soared by more than 20%. so they're pointing out maybe we have forgotten some of these things. is itteer rational to think we could be looking much stronger than 18%. >> it's not irrational to think that at all. remember, that's market positive. the way this works is the market

still has a strong last leg. fall 2008 was terrifying. to put it in perspective, after the depression, my father never invested because he didn't believe it. those scars heal very, very slowly. >> and it doesn't feel like this is, i don't know, money, wealth, prosperity. none of those things feel like they'ren vogue right now. >> joe -- >> i think you would have to be ashamed to say, wow, this market is great. i'm making a lot of money. you ought to be worried about immigration or gun control. >> yes. >> this is not what we like right now. you're not socially responsible if you just try to enrich yourself. >> but i think there's a little element of that too. if people thought they were picking great companies and beating the market. they're not, though. they feel like the fed is pushing them. they feel like it's stolen money.

>> jim, thank you. >> ted leoncis, chairman, majority owner of monument al sports and entertain, verizon center, former president of america online. have you written a book? >> i did. it's good to see you again. you're pretty amped up already. >> i am. i think about you and the great story that was aol. you traded that currency for a company the size of time warner. now i look at aol. it's definitely alive and

kicking. you trade i.d. for a $100 billion company. >> well, tim is doing a great job. we're proud of tim. he's positioned the company exactly in a sweet spot. subscription side still keeping it. he built the brands, multiple brands network and is able to sell advertising against it. so i think he was the the right guy fort job and someone there for a long, long time. you're rooting for the company and the employees. and the stock has done well too. steve case was able to buy the state of hawaii. so it's been very, very good to

you. >> steve and i are partners with don davis and former aol exec. we had a good time back in the 90s. aol stock was the best performing stock on the exchange. what we did then and i think why would like to do the last two hours -- you guys talk wall street, wall street, wall street. you need to talk main street. small business, consumers. >> we still have paper, which is representative -- >> i was really surprised. i have my mini. and you have the new york daily news. >> i do have a mini. but i like the papers. >> can you see wiener's chest like that? you can't. >> you're saying that's the down side. >> yeah. that's the down side of having paper. it's a different world we're in right now. and we need you to tell us how

to maneuver around. i guess some of the points you're making, online -- everything on line, buying, all that stuff is continue to go replace. >> well, i was struck yesterday by the google announcement of how they are expanding their connectivity play. what they're doing is what aol did back in the '80s and '90s where we got people online and then we added services and content and had advertisements. we had multiple revenue streams. >> we called it a portal at that point. >> it was connectivity with a portal on top of it. really has a shot i think of disrupting the cable plan, the satellite plan. what they're doing is really dramatic. as long as we continue to have more and more band width with lower, lower prices, you'll have lots of entrepreneurs making lots of new applications. that will drive our economy.

entrepreneurs drive the economy. that's where all the jobs are being created. and i heard you in the greenroom complaining about why are we talking about anything but job creation. i couldn't agree with you more. it seems that's the higher calling for business right now, to be able to grow and provide platforms for employees to have security to be able to feel safe in what they're doing. if they do, they will start to buy houses again, cars again. they will start to travel again. and the spiral will start to go up. that's the seminal challenge. the focus should be on entrepreneurs, small business, and job creation. >> you don't want the government being the entrepreneur. >> well, i live in washington, d.c. >> and real estate is soaring. and i thought that was representative. i thought how well washington is doing. that's a metaphor.

that's why there's no excitement about the stock market. it's not a private sector story right now. unfortunately it's a government story. >> right. one of the things i think you should take some confidence in, though, is the best and the brightest, really, really smart people are coming into washington. people think they can make a difference, that their social responsibility will be done best by trying to transform deposit. >> transform smaller? >> well, we would like to see smaller government. but i think that bringing in data and oriented people and people who understand the digital world that the next generation really will try to find ways to be able to listen better to what's happening. >> we've got to relearn adam smith? digitally it's going to be easier to understand how the private sector brings prosperity

versus government? why do we need digital geniuses? >> because washington has always been in the bubble. 300 million americans, 2.2 billion people around the world connected to the web. young people now, this is the medium. these young people as first generation are the voters, the the equities, the folks that are driving the economy. and they want to see government that really acts the same way that a business does. what we should be demanding in the business, faster, better, cheaper, almost until it's free. and our expectation of services and excellent from our providers is really, really high in the consumer space. >> we talked about this yesterday with jonathan bush. he was talking about the transparency coming to how medicare and medicaid programs are paid and how that will create competition.

when you talk about looking to entrepreneurs and trying to empower them, what do you mean? what does washington need to do? >> you talk about the immigration bill i think that's a very, very important law that needs to be passed. because the best and the brightest from our universities and mostly it's mathematics, engineering and science. >> stuff very important in the digital world. >> and ph.d.s are such a premium. people who are deep data scientists. that's what is driving the technology basis. >> how would you describe how companies innovate, there's a profit motive there that drives all the efficiencies? i mean, we've tried to have the smartest 100 people in washington deciding how to do things. i find it hard to believe no matter how many computers we have the government could ever drive itself to efficiency

without a profit incentive. do you think that's possible? is there a single agency that work well? the post office. >> trying to stay in office. >> that is a problem. >> i agree. that is the single biggest issue that we're seeing is a lot of decisions are being done from a political standpoint as opposed to what's best for americans. >> well, is spending -- borrowing more money from china in cresting in new energy? >> well, that is what i would do. having less debt is really what all companies look for. having positive cash generating businesses. >> you're describing companies again. we're so far from that. i'm glad you're down there in washington. always ahead of the curve. aol. now you're smart enough to have

all your companies in the growth capitol of the united states, d.c. you don't feel guilty about that? >> no. i think you will see lots and lots of new platforms to transform the health care industry. we have infest indeed a condition called fedbid. it is this platform with about 50,000 merchants. it's reverse auction platform. we have saved the government 10%, 12%. >> they didn't have it? it seems pretty natural. >> no. and it's shocking because consumers, if you're going to go buy a car, if you're going to go buy a phone, television, you shop around and try to find the best pie. that's the groupon den no, ma'am

no phenomenon and amazon. b to b has been slow to adopt that. and government has been incredibly slow to do that. so this year i think fed bid in terms of trafficking a couple billion dollars can save the government a couple hundred million. but it's a trillion dollar opportunity. and i think it's general racial. i think as we start to see younger people get these employment opportunities they will demand -- they want to live their life on the map. they expect to do things better, faster, cheaper. that generation will help our government be more efficient. >> he's our guest host the rest of the program. former vice president of gold man sacks robert caplan will be joining us. and reaction to the president's

budget. we'll be right back.

>> welcome back, everybody. jc penney raises the question, how to keep the customer happy. joining us is robert kaplan, senior associate dean and professor of management. former chairman of goldman sachs. robert, it's great to see you this morning. jc penney situation we have been talking about several days at this point the. this was a really hard revamp trying to completely tear the store apart while operating in business. what happened? what went wrong? >> they went from being a company known by its customers for value and execution to try to change that to being known for store experience and store within a store. that change might work. it might still work. but it takes a long time and

it's a risky thing to do. and they tried to do it very, very fast. there's a greater risk the customer is going to be confused. it cost a lot of money. they are a leverage company already. they want to slow it down and try to repair the balance sheet as best you can and buy more time to finish this. >> does that mean trying to lure back in the customers and offering deep, deep discounts. >> he's going to reconnect with customers. and the reason he's got to do that is their comp store sales, store over store sales year over year down 25%. they haven't announced their first quarter. best estimate is they're down another 10%. and that means big losses in free cash flow.

so while he's giving this time he has to find a way to bring customers back in the store. >> you saw what happened yesterday. at 9:00 in the morning instead of 2:00 in the afternoon. it turns out somebody accidentally sent minutes to 100 people people. some were banks. some were lobbyists. it raises all kinds of questions how we manage data and how the government manages this sensitive data too. how big a problem was this? is this just the way of the world where we all live on these e-mail planets? >> maybe it's the way of the world. it's a glitch. and we have seen a few glitches. we have seen several in different contexts. i'm sure the fed is very upset. they're not going to make this mistake any time soon. but it also shows that when the

government is so highly leveraged. you were talking previously. we are very dependent right now on what the fed is doing. the u.s. government and western government are highly leveraged. we are susceptible by banks and policymakers. and i think this is going to persist sensitivity for a long time until we get our leverage down. policymakers do matters more than any time in our lifetime. >> i don't know if you heard the last segment but he thinks it is the single most important thing that washington needs to be focused on and the rest of us too. what do you think can and should be done? is there anything that washington in particular can do?

>> i will take it in pieces. i would say business for starters. business leaders have done a very good job trying to adopt to the new environment. imperiled middle class that's deleveraging. and they have adapted very well. there's no getting around. we need some growth here. we need the federal government and the fiscal policymakers to do their job. we do need immigration reform. you were talking about that. people neglect the fact that part of the growth in the united states historically has come from population growth. we need population growth here to grow gnp and to sell houses and improve a lot of these markets. so we have to get that resolved. i actually think immigration reform might be a good -- one of the most important first steps. yeah, we do need sensible regulation. we can't go back to no

regulation. >> right. >> but we need sensible legislation. business leaders around this country are doing a good job. they are just trying to avoid a lot of sand in the gears that are slowing this down. >> thank you very much for joining us. >> thank you. >> coming up, we'll break down the president's budget and speak to ron johnson on whether buy partisan agreement is possible. squawk pox will be right back. [ penélope ] i found the best cafe in the world. nespresso.

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welcome back to "squawk box", everybody. we are just about an hour away from the labor department's weekly report on first time jobless claims. economists are looking for 360,000 new claims, down from the 385,000 last week. that was a lousy number. investors are watching this closely too, especially after last friday's disappointing numbers last week. yum brands dropped 13% in china. one of its key markets. the bird flu outbreak in china

will have a significant negative impact on april sales. also, check out shares of metropcs. it has restructured its offer. it reduces the interest rate on a loan by half a percent. deutsche telecom calls it the best and final offer. microsoft has been downgraded. slowing pc sales and sluggish adoption rate for windows 8 are among the reasons cited. down about 14%. >> peeking to a real visioner. ted leonsis, co-ceo of groupon. the daily deals i guess has slowed a little bit. so you have to reinvent certain parts of the business.

still bullish overall if it goes international? you're co-ceo. you have a lot of other things going on. how much time are you spending on groupon? >> i'm spending a lot of time. one of the cofounders is running the day to day. it's this local industry. >> that's where everything is going? >> you still spend 80% of your dollars within 20 miles from your house. so local will continue to be big. mobile. 40% of our customers will order mobile. facebook obviously is moving quickly to mobile. groupon is in 48 countries.

it's interesting to hear about yum brands. there was a bird flu scare in china and it drives down their sales. globalization offers a ton to companies who can explore it. the united states is small. less than 10% of the overall internet connectivity. there's 2.3 billion people around the world on line and we have 280 million internet connections. so we want to take our digital properties and bring them everywhere. groupon a good example of that. amazon is getting aggressive. facebook and google, they are global brands. microsoft certainly was a global brand. >> does it cost a lot to build it out internationally? >> well, i think we have already

built that infrastructure. >> you could pay for it personally. >> again, when you talk about main street, consumers want a good deal. you're talking about jc penney. consumers are being trained. >> they're smart and savvy shoppers. >> they know. so who doesn't want a good deal. i believe the next generation will be more informed and expect the best deals. >> partners in comcast. we'll talk about that a little bit later. i need to hear. you have a little presentation for us? >> no. but mark lazarus, runs nbc sports, great guy. live ratings. >> comcast sportsnet. >> we should talk about it. >> i want to see your plan for the future. see if we have to seen off on

it. it's counter intuitive. ten years ago people would have said sports would have been disaggregated. the opposite has happened. it's the only programming that brings large groups and communities together in a time specific area. >> amazing. >> seinfeld used to be 9:00 on thursdays. now you can watch apple tv. >> we'll talk more in just a moment. ted is our guest host today. when we come back, more from him. and the founder of best buy on jobs. and recent resurgence of the company's stock price. brad anderson our guest in the next hour. "squawk" will be right back. still to come, the budget battle heating up in washington.

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welcome back. president obama released his you proposed budget. is it a basis for bipartisan

agreement? joining us is senator ron johnson, member of the senate budget committee. at the top of the show, senator. good to see you, i held up two different papers. one, "the wall street journal" talking about the deal, how it's dead on arrival with republicans. and i held up the "new york times". their panties are all in a bunch about this. the pillars of the democratic party are crumbling given his offer on this minor thing with entitles that we're seeing. that sums it up, doesn't it? >> listen, this budget is two months late. we have already passed a budget out of the senate which spends less than the president's budget and reduce the deficit by a little bit more. i don't know why the president even bothered to do this.

by the way, the deficit, social security next 10 years will be 1.3 trillion. you have to take a look what is his budget proposed in the first year. increases $160 billion. where do you go with that? even the senate budget, which is not adequate, never balances. his nevers balances. i guess i have to agree with "the wall street journal". >> he is getting a lot of flack. do you think it was a true olive branch?

maybe this does give us something to actually talk about. >> put it all in perspective. when social security will run 1.3 billion deficit the next 10 years. by the way, the trust fund has no value to the federal government. i made that point in our committee hearing yesterday confirming, or confirmation appearing on the next director burr well. it has no value. so we have to look at the depth of the program. that's where we need to start. we have to first agree on the depth of the problem. >> yeah. first of all, you have to admit you have a problem. that's a problem on the left. they're not even admitting they have a problem. it's going to run huge deficits. you have to first admit you have a problem, then define it. >> senator, the other thing, i

don't know. i don't know whether the gop hired a pr firm yet. one thing i might bring up is that you talk about the sequester. show people what that -- spending cuts, what is it 80 billion a year? what about another trillion in taxes. can't you explain in 10 years taking 100 billion out of the private sector every year is worse than the sequester. he throws a trillion dollars like it's balanced and what we're supposed to do. that would hurt the economy and hurt jobs, wouldn't it? look at the payroll tax cut. >> joe, you don't have to convince me. >> economic growth is far more effective.

revenues increases $344 billion per year. revenue through economic growth. the "new york times", the left has done a good job of addicting americans to government. everybody is looking at the federal government to solve their problems. the problem is the federal government. all the rules and regulations. i was in wisconsin last week. there was a business that did an engineering study. it will cost $5 million to try to comply. it will reduce particulate matter two dump truckloads per year. that's it. it is forcing businesses to comply with regulations that have very little effect. >> he said he thought it would be a step in the right direction because it was going to tick everybody off on the far left

and right. i take it you disagree with that statement? >> trying to figure out what the true inflation rate is $130 billion over 10 years. $13 billion per year in 3,800 a year budget. it's nothing. but it's a step in the right direction. again, the real realty is social security is going bankrupt. medicare is going bankrupt. unless we start looking at structural reforms, which by the way i put that in the process. it shows their level of seriousness. >> why anyone thought you should be spread so thin trying to turn around jc penney and serve as a senator is beyond me. >> i try hard. >> you got rid of the job. this is the more important job. thanks norfolk using on the

senate, ron johnson. thank you. >> when we come back, our guest host reveals his next big investment idea and what he's learned creating a successful business portfolio. coming up, a special interview you can't afford to miss. jobs, economy and the future of best buy. brad anderson, former ceo. 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. ♪ arrival. with hertz gold plus rewards, you skip the counters, the lines, and the paperwork. zap. it's our fastest and easiest way to get you into your car.

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welcome back, everybody. april is literacy month. >> first, we should celebrate financial literacy month. i'm on the board of directors of american express. we see the more consumer really understands how to manage his personal affairs the more successful the company can be. and with the tools that are available. in fact, american express did a

deal with everfi. it is creating financial literacy classes for minorities and inner-city kids because they are just not trained to understand the basics and the fundamentals. >> most go through school and they don't give lessons like that. >> they don't. it's really a shame. you have to push them to go to college. what i've tried to do is i've always tried to focus on companies that either i would start or i would invest in that were in pursuit of a double bottom line. companies that could do really, really well because they were doing something fundamentally good for their customers and society. we had a noble mission, right? build a medium more valuable, more powerful, more enabling

than the television and the the telephone. we never thought about building a companies $150 billion on wall street. groupon started with a basic business model, helping small businesses whose challenge is getting customers and banks weren't lending money. so groupon emerged. it could save consumers a lot of money. at the same time it would drive lots of customers and small businesses. and rather than trying to get ad dollars, a traditional media company, it shared that risk. like tkpwaoelg that was results oriented. we provide them with cash within 30, 60 days.

still getting big fast. spending time within your community is still the easiest and most productive way to build a company to scale. >> ted is our guest host. he will be with us the rest of the program. when we come right back, one loyal squawk fan's quest to connect with our icons and rebels. he has done it. we have the proof. also, check out what's head. former best buy ceo brad anderson. >> and then another master of the market is inducted into our wall of fame. markets and more with the chief investment strategy at the world's largest investment firm, coesterich.

welcome back, everybody. we're in the chairs right now and we're here to give credit to a very loyal squawk fan. about four years ago we had an ad that came out. icon rebels ad. it was a copy that ran in the newspaper. it was all over the place. carl, joe, me. we had some of our biggest guests who were on this. and marshall sturman september this out to every single one of them and got them to sign off on it. bob johnson, jack welsh, boone pickens, donald trump, martha stewart. took four years. i think richard branson was the hold out. >> you know who i can't get? >> who? >> carl cantanilla.

big star. i got everybody else. what do you think? >> marshall september this to us and suggested we auction it off for charity. >> robert johnson. it is amazing. finally got branson. i got branson this week finally. >> marshall sent it to the office and harassed him for months. well done. if you have any ideas which charity, we would love to hear it. >> the printer for some reason has a split in my teeth. i think that's a mistake. that's not a nice caricature, is it? really? you look like a bratz doll. i'm not sure what's going on with carl. he's much, much better looking than that. >> well done. if you have ideas for the charity, let us know. >> up next, best buy's former ceo brad anderson hoping a i

jobs creator alliance meeting. we'll speak to him about jobs. jobless claims could be big and move the markets. check out the futures right now. up again but only 10 points. [ male announcer ] here at optionsxpress, our clients really seem to 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. hey ray, my uncle wanted to say thanks for idea hub. o well tell him i said you're welcome. he loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. yea, and these ideas are across the board -- bullish, bearish and neutral. i think you need a bigger desk, pal. another one? traders love our trading patterns, now with options patterns. what's not to love? they see what others are trading -- like the day's top 10 options trades by volume -- and get ideas! yea i have an idea: how about trading that in for a salad? [ male announcer ] so come trade at the place that's all about options and futures. optionsxpress.

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>> former best buy ceo will talk jobs, the consumer with our guest host. >> portfolio opportunities from a "squawk box" market master. a new member in our elite club of market gurus. >> weekly jobless claims hit the tape at 8:30 a.m. eastern. the third hour of "squawk box" begins right now. >> welcome back to "squawk box", everybody. this is cnbc, first in business worldwide. i'm becky quick with joe kernen. andrew is on vacation this week.

he's the chairman, majority owner and. more from ted in just a moment. >> indicated a little bit higher. six points. great day yesterday. s&p and dow both turned in record closes. nasdaq ended at 12-year high. best day of the year. early this morning. ted was there for that, weren't you, my friend. >> those were the good old days. >> jim o'neill, what's driving the market highs. >> probably indirect consequence of what the japanese have done. and probably many other places.

in some cases it's adding to the challenges. increasingly strong domestic policymakers and those countries don't want it to be strong. >> among other stories, hewlett-packard shares taking a hit in premarket trading after a report from ibc showed pc shipments down 14% in the first quarter compared to a year earlier. pc sales have now posted year over year declines in four consecutive quarters. you know why. consumers shift to other devices. in the nation's biggest warehouse retailer short of estimates with its latest comp store sales. costco sales rose 4% in march. people hoping for 5.2%. hurt by lower fuel prices and a stronger dollar. the challenges facing

entrepreneurs has been a big topic on "squawk box". this is a man shoe listen to. we talked about a few things. your history and why we should listen to you. and groupon. the future is so bright in your views. so many things moving local. what can you tell us about how to capture the move to local that's not going anywhere? >> first, let me say i don't think there's ever been a better time to be an entrepreneur. part of the reason is that big companies, they are not innovating. they're trying to protect what they have. they're not spending their cash. they're not making appropriate investments. so that leaves a big window for niches for little companies to get started. the second thing that's happened is you can buy a service from amazon instead of buying servers and just use it in the cloud and pay $50, $100 a month in a

business. so there's light touch businesses that you can get up and running very, very quickly. >> if you have an idea. >> and there's also an incredible amount of venture capital. that to me is the big differentiation between us, europe, and the rest of the world. we still want to celebrate entrepreneurs. we still want to back entrepreneurs. we started a fund $450 million fund growth. we call it speed up capital. we want to be a throw back to the good old days of venture capital where you made a few big bets. you add a lot of value. you help mentor the entrepreneur. you serve on the board as either chairman, vice chairman and really try to get that company to go from niche to mass. we believe right now is the time to go long shore company.

i'm seeing everything go to the cloud. aol was kind of the originator of that. having a client server. real-time is going to drive a lot. the twitter phenomenal. >> you tweet every day. you have tweeted since you have been sitting here. >> i blogged at 3:35 this morning. >> i don't follow you. >> aol instant messager -- >> that was a small piece of software you invited onto your desk tap. >> joe kernen is a big a.h. what does that mean? >> so i blogged every day. used the software that turns my blog post into a news feed and twitter feed. so i have built -- >> how many followers? >> i think i have 35,000 on

twitter. i think i have 18,000 on facebook. 20,000 or 30,000. i might have people coming to all of my communities than your show gets rating points. >> don't are ub that in. you said something about europe. the world is their oyster, the entrepreneurs. there's a lot of smart people in europe. what are the three things that happened that you appoint to that makes it impossible to be an entrepreneur over there? and how can we make sure that doesn't happen here? >> it doesn't work over there. >> why. >> because of the infrastructure, the banks. still a centralized look at the world. >> possible to start a business. italy, greece.

>> and failure. here, failure through errors of commission. you'll celebrate. if you fail once in europe, you're done. your career is over. you don't get another chance. their risk tolerance is the driver of the economy. >> tell us something that you have in revolution. one of the companies you're seeing coming up. >> we like the in tech segment. the high school and cling and private school environment will change dramatically. it's probably the biggest bricks and mortar business that hasn't embraced technology. courses taught online? >> collaborative, innovative environments. parents frankly just demanding is this $60,000 bill sending my

son and daughter to college worth it. what am i getting out of it? so i think we will see that as a massive opportunity. >> what companies do you have? >> we've made an investment in a company called echo 360. it starred doing electracapture. you can make it available to students on a nondemand basis. they are some of the biggest content generators of university like georgetown. undergraduate, medical school. they will generate more content in a week than nbc will. so we want to be able to export a lot of that content outside of the u.s. so you take a country like india. india has to build 700 new

universities to keep up with its population. it will not be able to do that through bricks and mortar, try to raise money, get a big endowment. now kids in india can start to pick classes from the best universities and package up and get a degree that way. we will see a dramatic reinvention of the junior college system where you will see them going to junior college two years. it gets their blended cost of college education down. >> i think that's happening. >> that's really, really a big huge industry that's about to change dramatically. >> if you were a huge media conglomerate, not comcast or something, one of the big ones, what's the future look like?

how do you make sure you're not just caught blind-sided? >> i think google, apple, facebook, amazon, microsoft, those are the five big platform companies. it's ironic we used to talk about the web being very, very open. each of these companies has become more and more closed. they have their own eco systems. software, hardware, services. apple's genius is to be able to integrate, look, feel, style and also the way the software travels across all of their platforms. and so these big five horsemen are going to set the agenda for what technology is. and entrepreneurs, they looked which of these platforms are am i going to plug into.

which of these companies could i potentially be acquired by. google is a phenomenon to me. we did one of the first at aol. we owned 5%, 8% of the company. when i first met sergei he said, look, we're going to be an arms dealer. we'll license you and we'll do a revenue share with you on our search engine. we said that's terrific. at the time aol was this package of subscription services. it had mail, messaging, content, connectivity. and wasn't too long after we did our deal that google did better e-mail than we did but it was free. and google maps. we owned mapquest. so their basic business model is so powerful. >> what would you do as a disney or as a -- is cop tent going to be the one thing you can control your future with?

>> yes and no. the best thing right now is to redefine scale. i have seen this in spades. at aol we had a big media business. we sold real estate to online real estate to ad agencies and clients. we thought there was less than 200,000 advertisers. google came along and they reinvented the definition of an advertise er. they have 7 million, 8 million companies that advertise. they only bill invoice to 250,000 advertisers. the rest are small business people, home office my massage therapist. i typed in northern virginia therapeutic massage. and pay pal did something very similar, right? if you talked to mastercard and visa, the big banks.

>> american express, they traditionally would say there's about five, six, maybe seven million merchants in the u.s. that account for 80% of all the purchasing. pay pal has 90 million plus businesses that accept pay pal. they redefine. they allow the consumer to think of themselves and act like they were a small business. >> but they are having some struggles. the concern is when they move into brick and mortar world, the margins get sliced. >> very much so. but that is a great franchise with 90 million customers in the u.s. they have great, great opportunity. >> well, we have -- we're trying to get more time. we have a bunch of stuff. brad anderson coming up. former best buy ceo brad anderson.

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welcome back to "squawk box", everyone. tpaoufpd are indicated slightly. very, very slightly higher for the dow and the s&p. futures up. this is coming after three days in a row for gains for the s&p 500 and the dow, which both finished at record highs yesterday. nasdaq up 1.8%. it's down 6.5. we'll continue to watch this. jobless claims coming up in just about 15 minutes.

in the meantime, most of the big retailers don't report monthly sales. tjx fell by 2%. analysts had estimated they would report a comparable drop of 1%. and the company formerly known as limited, now known as l brands, saw numbers up 3%. l brands. wow, that's going to take getting used to. it is the parent of victoria's secret and bath and body works. job creators alliance holding a conference on spurring job growth in america. brad anderson joins us on the squawk newslibrane. he's former ceo of bestbuy. after the jobs report we got last week that was disappointing and concerning numbers on jobless claims, this is something everybody has been talking about.

what needs to to happen and what has gone wrong? >> we talked about how it should be a great time to be in small business. you have technology. we should be seeing very robust growth and growth in jobs and driven by the economy that creates jobs, which is small business. it creates two-thirds on a normal basis. we are reducing the in sent and i have making it too hard to operate a small business. it's defeating the other advantage that the fed talked about. that's why we're meeting, trying to see what we can do to help influence the environment to improve particularly for small business. >> what areas of small business do you think felt the pinch the most? >> i think any small business right now is dealing with cost in tpra struck sure they can't

produce. and their incentive is also currently diminished and will be further diminished if further tax recommendations are put in place. the environment around that business is tough. and the banking stebg tore, a lot of regulations. it's harder for them to access cash to grow their business, all of which is coming out of counter intuitive which is trying to stimulate the economy of job growth. >> ted, do you agree? >> that confluence of issues is spot on. banks are just now kind of getting out of their slumber and say let's try to support small business. but there was a three-year period where if you were a small business you cooperate get a loan. they didn't believe in your receivables. they were very concerned about bad debt. the second is health care. monument al sports and

entertainment were self insured. we have to have all sorts of programs to help our employees take health care under their own control. fitness programs and overall wellness programs because it's just become too big of a piece of to support just the the healthcare side. i couldn't agree more. and the the whole rigamarole getting federal, if you're doing business oversees country by country, the regulatory environment seems to have gotten more bureaucratic. >> but you also said there's never been a better time to be an aunt. they are holding their cash. i don't really understand why.

all this money still overseas, they're not able to unleash that cash back into investment. i would love to see the government create a program that said bring your money back and it will be taxed less if you invest it. >> you have heard the insane reason they won't. it might go into dividends. >> so it doesn't do that? god forbid. >> i think that $2 trillion -- all right. take half of it. use a trillion of it. >> yeah. whatever. do something. >> brad? >> my argument is we don't think -- i seven on the board of a lot of big companies. i don't think big companies know how to create jobs. not universally but most case.

it's because they're protecting often time the orthodox that got them to be a big company that doesn't allow them to innovate. i don't know any company that wouldn't like to create new jobs. that's what we think needs to be the jobless. it is. it's historically been the jobs of small business. what a great time in all other senses to be a small business except what's happening. >> one of the companies you've been nominated to go back and serve on the board again is best buy. that company is facing big, big troubles. we have seen what happened with jc penney when a retailer tries to put a store within a store and change its entire operation while it's still open and trying to get customers to come in everyday. how risky is it and how confident are you that this company can turn things around. >> i'm just going back on the board of best buy much i don't

have any internal knowledge about the discussions going on about this issue. but best buy historically has done a lot of store within a store. appliance store, magnolia. it all worked well historically. there is a historical experience with best buy very effective of putting stores within a store. i think that's what they're leaning o. i think fundamentally that companies like samsung are looking what apple has been able to do with its retail stores and want that kind of advantage. >> do you think you can compete against somebody who doesn't have to have a store presence? >> well, i think best buy has been as impacted negatively by what apple has done with its stores. so i think it's -- i think the core thing, and this goes back a little bit to what i was saying about how hard it is for big

companies to innovate. coming up with fresh value propositions that give a different experience. that comes from online and retail stores. it needs to reinvigorate its presence in the market. that's what the team is trying to do. >> good luck with the alliance, with the jobs creator alliance meeting. come back soon when you're on the board and see what's happening there. we want to hear about this turnaround too. >> coming up, closely watched weekly jobless claims. forecasters looking for first time filings to drop. ons platfo, 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

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welcome back. in our headlines right now, bill ackman is breaking his silence after the ousting of whereon johnson. ackman, a major investor in jc penney said he is sticking by the beleaguered retailer. he said we're not going anywhere. in fact, we're going the other direction. we're digging in. that raises the question as to whether or not he's selling shares or buying more shares. >> did he have a bad experience on women's wear daily? >> chafed him down and he finally said something. >> if you want to talk, we're

sheer. scott wapner is here. women's wear daily? >> there could be a ruling on a preliminary injunction that would keep certain products off jc penney shelves through the trial. courtney reaganmonitoring. they started putting out some of the products anyway. >> less than a minute away from weekly jobless claims. import and export prices for march. the famous rick santelli is standing by at the cme in chicago. steve liesman. ted looked over and said look at that thing.

no wonder. >> call mark and tell him we're being penny wise, pound foolish or whatever. >> the numbers, rick. >> here we go, rick. price for march down half of one percent exactly as expected. if you look at the year over year number, though, that's where changes have been. a bigger drop. down 2.7. we're expecting around down 2%. there were some subtle changes to last month. february originally released on headline is up 1.1 split in half, up 0.6. and down 0.3 is now down 0.8. initial jobless claims dropped a lot. they dropped 38,000 -- oh, excuse me, more than that. from 388 to 346.

that's down 42,000. that's a big drop. and it makes me actually look at this number and like it less. but that's just my opinion. this type of volatility, whether it's season alitys, we'll leave that i guess to the dismal scientists of the world to interpret. claims on a wider scope, continuing claims just shy of 3.08 million. i'm not sure what a garnered from that either. there's been a lot more buying and selling in treasuries. many people if you don't get a 3% handle on this auction it will have a bit of a problem. is it going to be u.s. equities?

is it going to be fixed income? europe, southern europe. all of that is in the pool. >> first of all, i applaud how you focused on this and the yen. are we sure that money is going to leave japan? one of the things economists talk about is the home bias. i understand rates will be down. yields are down. they have not acted rationally for a long period of time. are we sure that is going to leave there. >> we are talking two different pools of money. i think you have the japanese investors. yes, they used to have turn wear bond appear. so they are heavily invested. the carry tried trade is more

investo investors, hedge funds. they borrow yen which makes them short. the the money they get where it goes and what currency is converted to and where it's levered if you had that answer you would have one up on everybody. >> they said don't look at the monthly numbers. now we are putting the great import and weekly jobless claims. we're getting whip sawed. i used to look down on what was done, until i watched on a short-term basis and realized the long term the values of the market are actually set in some of these short-term increments. every day the market comes in -- every minute the market prices the reality as it knows it with income coming data. we have the spike up to 388.

now down to 348. it's very simple to me to look at it. we had a correction from a spike last week. and i feel like the the trend is right around where we are. and i think we have that one month piece of data, 88,000. how do i process that? well, i look at the jobless claims. the notion that some people had which is maybe that report last friday exaggerated the jobs market, that is going to be a plus on the side of those who said it wasn't that much weakness out there. i'm not saying we're 250,000. but i think that 88 looks a little more suspect if we do 350 on claims. >> how does the market interpret that, though? if it was up on all this lousy economic news. >> i'm surprised. >> we were having a conversation. that's why i was up in the newsroom about this. it has to do with two different things. you have the the market process

in risk on, risk off. end of the world. not end of the world. and if you think about that, the ballast in the shift. it is shifting to the left. that's the thing that greatly moves the ship. then you have the economy. which right now relative to the apocalypse trade is really minor. the wind comes along a little bit to the right or left. when i see the more hawkish notes and the market ignoring it it's more risk on, risk off moving the markets back and forth. and also maybe what rick is talking about, some of this global capital flows that may be coming out of the yen carry trade in the united states could be a possibility. the end of the world happens only once and you have to trade very carefully. once we get done doing that we can have a discussion about where the market should be relative to the economy.

you have to do this in steps. when i look at, for example, the 10-year trading at a negative yield it tells me there is still a lot of concern about risk. i am willing to lend the government money at a loss after inflation. what does that tell you about how scared people are? >> it's nice when the market goes up 140 because it will stay. and it goes up again when jobless numbers are coming down. it's just great. i love that. >> it was said very clearly. >> and like this instead of like that. >> and bear market good news is good and bad is bad. >> one of the things being under reported on jobs is graduating seniors out of college.

you take people's hope away. you take people's desire to the succeed. they work hard in college. their parents paid or a scholarship and the federal government was investing and they can't get jobs is really a dramatic issue for us. >> i hear more and more seniors. my kids are getting to be that age so i know families whose kids are going on in the college course. they are talking about the value proposition than ever before. there's a paradigm shift happening. >> steve, thank you very much. rick, thank you. by the the way, ted will be with us the rest of the program. a bold warning from sam zell on this market rally. een incredibl. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second.

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welcome back. making headlines. real estate investor and frequent "squawk" guest host sam jell warns the upward march is stating it looks like the housing market before it crashed. >> every day in 2006 the housing market went up.

what was the number one headline every day, housing price going up. what are you talking about every day now, new high on the stock market every day. i just think we are suffering through another irrational exuberance. >> i don't know. we'll see. nobody believes it at this point. zell predicts where it will go. he does not like printing all this money. his main contention is the fed's responsibility and duty is to worry about the the strength and the credit -- full faith in credit in the u.s. it's a cherished thing and you need to take your responsibilities seriously, not debasing the currency. that's exactly what i had said right there. we did get it right. >> you hear what sam zell has to

say. it's concern for a lot of people who are out there. do you share any of those concerns? >> i think corporate profits will continue to be strong mostly because companies are not innovating. it's a part of the joblessness issue. you just see how hard it is now for companies to hire new people. >> is it a fear factor, just from everything we have seen? >> yeah. it's fear factor but it's also pure economics. you look at adding one person, one head count. now all the an sillry costs, it's a big number. so they are trying to grow their revenues and keep their sgna flat to going down. that's how they are driving their profits.

they're not really focusing on pure top line growth. >> you know, it's inflating the housing bubble too. same guys. >> yeah. >> all right. we'll have more of this conversation in just a moment. we are inducting a new squawk master. here's a hint for you. he or she is the author of the book "the $10 trillion gamble." quick. go to google and look it up. she's always been able to brighten your day. it's just her way. but your erectile dysfunction - that could be a question

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welcome back. we are inducting another new member of the squawk market master class. blackrock chief investment strategist russ kosterich who joins us from san francisco. part of our what's working series. i'm wracking my brains, russ. have you been on saying be very careful, a correction can come at any time or have you stayed positive the last six months? >> equities are still a better deal than bonds. it doesn't mean there's not going to be a correction. you look at the evaluations today. they are more expensive than six months ago but they are still reasonable. rates are low, inflation is low. year out from now you are better off in stocks than bonds.

>> we have had people recently just make the case. go around the world and then look at some of the great american companies yielding. there's no dividend risk. essentially. the stocks might go down. but the dividends are safe. it just almost -- they have moved a lot but they haven't moved to the point where you would expect them to move if interest rates were zero around the the world. >> this is the key thing. part is bonds are very expensive. you bring up a great point. you look at the yields particularly outside the u.s. still a lot of places where you can get a 3%, 4% yield. you compare that to what it takes to get a 3% yield in the treasury market, you're going out 30 years and taking more risk than perhaps you want to. >> so the fed, among all the things the fed is doing, it has moved people out the risk curve or else you will just sit there and have it in your mattress. >> that's exactly -- the fed has

done a couple things. we can have a good, long debate whether this has side effects in the long term. they have lowered the cost for companies, which is one reason margins have remained so high. they have created a wealth effect. and for better or worse, they are pushing people in the risk spectrum, not only supporting the stock market but many credit markets. >> do you think the market could get another leg if we go out even further instead of dividend yielders and get small caps and companies that might have a higher than average growth rate? those haven't moved i don't think as much as as the other utility type stock. >> it's been interesting. investors have been looking for stocks that look like bonds and bonds that look like stocks. it's been utilities, consumer staples company with low data income that have done the best. if you get small cap to move, you need faster growth. one ingredient is still missing.

we have not broken out of the 2% range. we have been stuck since 2010. if you get a bigger rally you'll need faster growth to drive that rally. >> and i don't know whether to be optimistic because the more time that passes from the crisis the less reinhart batters the more deleveraged our society gets and consumers get. i don't know whether that should make me positive or they just need to give it some room to go. maybe that's going to happen eventually. >> well, i hope so. i know the issue is a really interesting point. it suggests debt levels get high there is an exertion drag on the economy. the private sector has delevered but the public added up debt

even faster. federal government debt is over 100%. this is not mattering. it's not a drag on the market. what it does suggest, if you don't address fiscal issues over the long term it is going to act as an anchor on about it this year or next year. i do worry about it over the longer term. >> you probably have plans tonight with the wife. you must be celebrating this whole market master thing. you make reservations? >> we're all set. we're going to have the fine dinner. >> i'd pop some bubbly. congratulations. >> thanks again. you can't start your traiting day without jim cramer's stocks to watch. we'll head down to the new york stock exchange. we'll be right back. tomorrow on "squawk box" -- earnings alert. first of the financials report. we dig through quarterly numbers from jpmorgan and wells fargo. "squawk box" starts tomorrow at 6:00 a.m. eastern. i know what you're thinking...

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let's get down to the new york stock exchange. jim and scott join us now. i don't know, scott, whether you saw but we did this story on

ackman. women's wear daily? if he's got something to say -- >> right here. there it is. >> right after the dolce gabon that tax trial in italy. they cover this ready to wear thing like you can't believe. >> when he dictates what he wants to say with us he's here for as long as a half-hour. now a little heat in the kitchen, he's not going to come on and talk to you. i just ruin it for you. >> like i said, he knows where i'm at. >> that's a schoolboy schoolyard trick going to wwd. >> i should not despair. they have broken some real stories in the past. they actually have. >> they gave you u.s. shoe in 1989. >> what do you make of -- we're

back to -- you got to taper because we're not swooning. i only need one number and i'm back to no swoon. they better taper. >> i'd rather talk masters th e when they're going to finish. >> you know what i would really honestly like to see though it wouldn't be an american? if poulter could translate that performance in the ryder cup to a major, he'd win by 15 strokes. don't you think? the ryder is the other one i'm riveted by. just riveted. pga, of course. >> i'd actually like to see the masters today in the morning but you can't and you can't see tiger online because they won't let them broadcast that on the internet either right now. tiger tees off this morning. you're not even going to see it. >> it is the best run sporting event probably, scott, in the world. anything augusta does to

protect -- that's the crown jewel of the sport itself. >> what president had a place there? >> eisenhower. >> yeah. you bet, man. that guy was cool as all get-out. right? >> you're right. >> making sandwiches in wax paper to take. >> something about the masters. every year it is something. last year it was bubba with that impossible shot on number 10. anyway, guys, it is the best theater around. can you give a shout out for my washington capitals? >> that's a blatant ticket attempt! you've lost weight and you look fabulous and celebrations. you can look around the pillar. when we come back, our guest host this morning will have the last word. stick around. tz expressrent kio,

you can rent a car without a reservation... and without a line. now that's a fast car. it's just another way you'll be traveling at the speed of hertz. and every day since, two years ago, the people of bp made a commitment to the gulf. we've worked hard to keep it. bp has paid over twenty-three billion dollars to help people and businesses who were affected, and to cover cleanup costs. today, the beaches and gulf are open for everyone to enjoy -- and many areas are reporting their best tourism seasons in years. we've shared what we've learned with governments and across the industry so we can all produce energy more safely. i want you to know, there's another commitment bp takes just as seriously: our commitment to america. bp supports nearly two-hundred-fifty thousand jobs in communities across the country. we hired three thousand people just last year. bp invests more in america than in any other country. in fact, over the last five years, no other energy company has invested more in the us than bp.

we're working to fuel america for generations to come. today, our commitment to the gulf, and to america, has never been stronger.

ted, if you had one message you wanted to get out -- >> stop with the negativity. our country's about leaning in, being positive, taking risks and