>> hey, good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin and all the little squawkers this morning. yeah, they're here with us for the day. so this could get interesting. we go on to u.s. equity futures. at this hour, you could see some green arrows. right now, s&p futures up by just over 3. of course, the dow is coming off the a losing session. this came after three straight days of gains. we're going to call this a gain even though the s&p 500 was up by 0. 1%. wait, 01? i don't know if i've ever seen a gain like that. >> procter & gamble, that was a

major reason. in fact, i think that was about 4, 3537. >> 40 points there. and then at&t, right? >> at&t, some of the guidance after hours. it is the fourth day in a row we're going to call this for both the s&p and the nasdaq. we're going to keep our eye on gold prices today. it is now up about 10% from last week's low, but still down 36% for the year. still, 1,446. that is a rapid recovery after the massive lost wednesday. >> one thing that started, go over and earnings season are going to determine whether the market is ahead of itself or not, right? talk about the blue chip companies that have had huge misses and where the dow has gotten crushed because of them. how many can you count? procter & gamble. >> well, procter & gamble wasn't a miss. it was lousy -- >> it was down 4 1/2 points. i'm talking about a miss. just talking about disappointing

outlook, whatever you want to talk about. >> there's been a lot. >> ibm down ten points that day. >> that was a crush. you don't usually see that with these -- >> dow component at&t. what was dupont? didn't you have her on? >> two days ago. >> dupont did okay. but mcdonald's wasn't great, was it? coca-cola was pretty good. now there's been enough of these major international u.s. companies cowhere it's not gang busters and you come back to is this better thanky induced incentive? is it justified. >> you didn't see massive loss, like caterpillar. it was already out. >> general electric. remember general electric? it wasn't -- they've beaten, the revenue was -- they were in line and the revenue was above, but suddenly power and water and europe. there seems to -- i don't know. not a stellar -- what was microsoft? is that even reported yet or

google? apple? >> apple is out. >> the red flags are up to where this is not a -- >> when we had doug on while you were gone, caterpillar, and the one thing he said is that he felt better than he has in quite a long time. he doesn't think it will be a significant spring swoon. so even though things don't look great, a lot of them aren't calling for the same sort of collapse that they've seen in the last several years in the spring. >> i looked closely at the cup while i was out. they bought bucyrus. and it helped them emerge from the financial troubles quicker, but now because of a slowdown in commodity, commodity prices, china, the minings base hasn't been great. but in the future, he thinks it's going to be great. >> and it souded dower when he came on. i was surprised about how straightforward they were about how bad things were. >> but he thinks that's going to be a transformative step.

>> he did think it was at a bottom. >> instead of just earth-moving equipment, you go into the -- and for a while, it looked like a genius move. you got a short haircut, didn't you? >> i did get a short haircut. are you going to get a haircut? >> wednesday. >> i thought you just got one. >> i'm on the brian williams schedule now you never know -- >> people will think it's a wig. >> i looked at it yesterday. >> i'm not just the president, i'm also a client. >> i had a dvr with the golf thing. and from the side i looked at it and i go, that's a wig. that is a wig. it's not a wig. but from the side, it looked like in the front, it was here, it looks like you could see the part that was sitting on the top of my head. >> no, i can testify, i've pulled on it. >> yeah, you have. excuse me?

you've pulled on it. we're going to talk about weiner a little later. >> it's bring your kids to work day. >> that's true. >> you missed, by the way, the anthony weiner -- >> this squawk-ward moment is brought to you by joe kernen. >> this squad-ward moment is brought to you by anthony weiner. so what is he actually saying? that there's going to be other pictures? that's just what we need, anthony. people that knew him just before this happened said he was just miserable, just an arrogant, smug -- so i just wish he would go away. but he's not at this point. >> he is back in his whole frontal. >> the full montey. >> verizon is preparing a bid

for vodafone. >> we've been following this potential deal literally since i was in high school. and there's one second component. if you remember, verizon put out a statement literally two weeks ago saying that they had no intention of putting together this deal. number two, this reuters story, loves to say that they have hired advisers. the story does not mention the name of any of the advisers. what kind of story -- >> do you think it's bs? >> this is a reuters story. do i believe that there are advisers around who have worked with verizon over the years? yes. are they there? would they love to do this deal? absolutely. but this story, i'm sorry. >> don't buy it? >> not yet. >> here is the problem. >> this is good. >> here is the problem in the reporting world of m&a. you can say that and eventually auto deal with happen. >> and you can say i called it.

>> right. but eventually you will look right, but eventually you will also look wrong. >> this is not sour grapes? >> no. will it be in deal book now that it's out there? >> no. we may have to report that the stock moved, if it does, but it shouldn't, but if it does, then we might report like that. >> i was supposed to read more. sorry. >> continue. >> no. now it's fee at. >> verizon owns 55% of verizon wireless. feetat is reportedly planning to buy the ipo. the apo says the plans to buy several shares of the company is currently serves as the ceos of

better automakers. they're better than the fiats. >> fix it again tony. >> you know ford, right? found on the road dead. >> boo! >> so mad that i dredged that up because that's -- >> that's so old, isn't it? >> it is. fix or repair daily is the other one. >> but that was in the aids. >> none of those are as bad as government motors, though. those guys cannot get out from under that. >> i missed that show. akerson was here a few days ago. >> yes, you did. >> it was very foshth coming. this company is doing better. they make buicks. >> the sorkin family owned a buick in the household. >> you're all in the city now,

aren't you sthp. >> no, no. where do they get their chinese food? >> there's a local place, the pagoda. >> oh, in scarsdale. >> yeah. >> is everyone on the scarsdale diet? >> no. but we all tried it. >> i do remember that. if you have been near an airport this week or if you know someone who has, you are familiar with our next story. lawmakers in washington are trying to scramble to avoid blame. the white house is backing senate majority leader harry reid's proposal is trying to reduce that. republicans are rejecting the proposals saying it's a gimmick. thousands of flights have been held on the ground, some for a lot of the issues. we're going to get the chance to talk to southwest airlines ceo gary kelly coming up at 6:40 eastern and we are very eager to hear his thoughts.

find out what it's been meaning for southwest aep's business and if they think there's a solution that can be reached soon. plus, it's not just the airlines industry. hill is reporting congress is getting an earful from hotel owners who fear that the sequester induced flight delays are going to ruin their summer tourism season. members of the american hotel and lodging association are visiting house and is senate office toes personally lobby on the sequester. and i think there are thousands of them lobbying lots of offices today. >> i can see the impact down the road, but most people buy their flights, frankly, if they have summer plan webs they probably bought the flights already. >> but you have to have at least on 10% to 20% of people that buy late. >> i think that's margin is out. >> i would think so. and the lost productivity of people who are stuck. this impacts every business that has employees that are traveling. >> i wonder if you're a foreign carrier how you deal with all of this. because not just the connections in the u.s., but --

>> and your connections overseas. >> it has a triple impact. >> this is stupid. we had henry lott who was on railing about this. >> last week he was on filling in for somebody who was -- >> who had a toothache. >> that he, it's time for the global markets report. we're going to get over to london where kelly evans is reporting. >> good morning. i just want to report that vodafone shares are up a little better than 2% on the ftse this morning. it's one of britain's biggest companies. yes, you will probably have to report on that share price move. elsewhere, here is what's happening across the equities space. it's been a macro driven morning. sticking with the uk, gdp figures came in a touch better than expected so the headline writers won't get to talk about a triple dip recession.

0.2% on the quarter for the first quarter was the number. that was helping send the if it is tts higher briefly. it's now down about 0.1% despite that report. elsewhere, the xetra dax is trying to rally. the cac 40, ibex down 1.4%. i want to draw attention to this, as well. we learned this morning spanish unemployment in the first quarter was 27.2%. in fact, it is on bar with unemployment in greece. clearly, one of the highest in the european union if not around the world at this point. so a big problem there for the spanish who nevertheless are trying to press ahead with some of the austerity programs that they've been working on to try and bring their budget deficit down. it's a different story for spain and italy today. italy, of course, getting a new prime minister, helping to continue the rally that we've seen in the mib, although giving up a little bit of its gains. here is a look at the sovereign debt space, as well. pimco is among those looking at profit after seeing the spanish and italian debt.

that's spending markets higher this morning. the sterling, no surprise jumping after that report on uk gdp. the dollar/yep, guys, strengthening by about 0.3%. if you're looking for a reason why, there's not perhaps a little bit more excitement in markets, the yen is strengthening a touch. you'll probably need to keep weakening if you want to keep that wedge of liquidity beneath markets. stay tuned. back to you. >> kelly, thank you. we're going to get to our guest in a minute. do you -- look at this. do you see how small everything is? >> that's what you were talking about. >> right. i said why is this so small? but what happens -- do you know how to -- >> i'm sure there's a font thing that they can change for the overall. >> but is it these people on that -- are these the same people that -- >> these are the interlopers who use our set later. >> and post our guests like chanos, they call and insist that he comes so they steal him? >> and then they change all the settings on your computer, yeah. >> those people.

>> what do we do shane yoes now? is he allowed back on here? >> yes. we love chanos. >> if there are multiple transgressions, then we will have a -- you know, the insidious conniving bookers or anchors on that show, right, that try to poach our -- >> it's a team orderented operation. >> you're making me very uncomfortable. really? >> no, i agree with you. >> let's get more on -- >> he's our guy. let's get more on the markets and the global economy from our guest host for the hour. christian flates is our guest host and we should very protective of christian, as well. if someone approaches you, just let us know if you're thinking about cheating on us. you wouldn't do that. >> never do that. >> okay. good. normally i don't necessarily talk to you about equities. but i need to today.

have you seen these big misses of ibm and -- i'm not saying -- when i say big misses, i'm talking about the stock action because i'm not going to go into the details of whether it was this quarter or next quarter or whether it was margins organic sales growth. but for whatever it is, the stocks have sold off after reports. ibm was down 10 points. procter & gamble, at&t down yesterday. are we starting to see where the markets is disconnected from the companies that make it up? >> well, i think it's just the market being executiviskittish. last quarter, if we got a beat or a miss by 2% or so, the market would move it by about zero percent. this time, they're moving the stock by about 2%. in other words, it's just a mison sales or earnings is having a reaction right now. to me, it suggests the market is fairly nervous about the levels we're in. >> really? >> yes. and is ready to punish people who are missing from either top

line or bottom line. although the top line is much more important. >> because i think it's telling that this has been happening with these big stocks, important stocks. you know, they almost -- the -- on a school, the length of a school -- >> but the school is -- the s&p, it's funny, it didn't go down. a couple of times, the s&p managed to stay positive even though the dow was down. >> well, i think what happens is happening is week sear weakness aftermarket. and i bet you the futures will come in on what's happening. the caps are posting big on the market.

>> the character market is open and it has different reaction. >> we're less than 11% off the highs for the s&p. so we have not -- no one has had a chance that has wanted to get in when it got cheaper. >> if you don't buy on a 130 point dip, you missed it. >> there's a huge underpinning going on in the market right now. >> you always find a way. i was fought going to -- there's a story on the front page of the

"new york times." >> is it? >> and i was going to ask about the fed induced -- and then i was going to ask what is going to happen if -- >> she's a rock star. >> if she becomes the next -- >> will you touch a rupert murdoch entity? i will slather it all over myself. >> she's even more dovish than bernanke. >> with the, she is, but she made an excellent speech last september. then she reiterated it where she said, look, not just on the unmroit arraignment, but things like the jolts, the equipments, the openings. she's doing down a layer too look only on the current rates. >> i think she's got a very good

handle on the equity markets. she's the first woman on the federal reserve. >> the jump of the story. do you like roger ferguson as a potential? >> no. >> that's no good for you? would you take larry somers? >> no. >> do you want to think about it? >> well, i mean -- they did a sidebar of all the other potentials. then tim geithner, how do you feel? >> that would be a disaster. >> why? >> i mean, i think geithner is sort of up there as -- i don't know, the worst treasury secretary we've had or certainly the most ineffective one. >> really? >> i look at him as -- >> we have to have a lot of conversation about this. sgr we have to go to break. >> he did that. wa single kb namtd of the last ten years new mexico ever? you're attacking him from the left, though, right? >> no. i'm acan tagging him from a

pragmatic to have. >> geithner resisted nationalizing banks. are you from that said or the other side? >> no. he's just been sort of an empty suit for the last -- >> oh, man, i feel like he worked so hard. >> stay where you are. we will continue this conversation. >> what we didn't talk about -- >> it's early and you're feisty. >> in the "wall street journal" -- no, but i do think -- >> did you see this snm. >> yes. where she -- >> did you see where -- i've never seen that movie. >> i didn't know. abc, always be closing. and she's saying you salespeople sucked this quarter. >> yeah. they got rid of the guy who was in charge of hardware. they want today sales up there. he said you need to respond -- she said you need to respond within 24 hours. we've done a lousy job of keeping in touch with our customers and making sure we are responsive to their knees.

but he had a tough time bill about that. let's go to a brock. we're going to come back and continue the are the of this. a "squawk box" interrupter who wants to change the way individuals are -- aaron is joining us after the break. disney sounds revolutionary to many of us, but not to our special guests this morning. the squawk kids are all about technology. they know more about this than any of us. it's take your kids to work day. get ready for a big day here on squawk and wherever you are out there.

commercial carriers are now offering you vip treatment for a price. american airlines five-star service and delta's vip select gets you a personal greeting when you arrive at the airport, a faster security check and an escort to the gate. the cost starts at $125 on top of the ticket price. anyone, though, can buy into the american program. delta tells you that you have to go through corporate sales for theirs or you can use a travel agent who knows someone who can hook you up. united offers a similar vip plan but only for top customers with

its mega mileage status. for more, check out roadwarrior.com. our future guest this morning is aaron levey. aaron is one of our favorites and i should say, i don't think you've gone to sleep yet. is that right, aaron? you're in california right now. >> yeah. i still have to get dinner at some point. so good morning to you. hold on. what is -- for those of us from the east coast who don't always appreciate the palo alto schedule, wa time are you usually operating at? >> well, we generally operate out here -- well, i'm a little different, but generally start the day at about 10:30 a time, 11:00 a.m. and end at around 4:00 a.m. >> and how many people, travrm, when you were leaving the office to go over to the studio this morning, how many people just still going at it? >> i actually -- he only had to step over three or four people sleeping. so it was okay tonight. >> okay. let's talk about the cloud. and i actually want to talk

about security in the context of what we just saw this week with the ap and twitter. and i know people are rushing off to do double authentication. by the way, if the audience doesn't know what i'm talking about, google it and go for every bit of e-mail or you're on the box, do it immediately. how should we feel about security right now? in terms of all this information we're throwing up into the cloud? >> yeah, i think that a lot of it is changing rapidly. i think the systems that are securing these types of platforms are becoming much more secure. as an example, we invest significantly just in the security of our systems and that's a very end to end approach that we take to securing our data centers and our information. we actually just announced that a chief trust officer joining us company used to be the chief information security officer of yahoo! and prior to that the

chief information officer of symantec. it's the changing nature of threats on the internet .how people need to be able to take production better into their own hands and, you know, certainly the ap thing this week is, you know, a very more of a -- less of a likely event to happen to less people, but one that certainly raises the awareness around security. >> and you have a lot of obviously important data up there. have you had -- have there been attempts, either successful or otherwise, that you've had to deal with? >> well, we're always protecting kind of every element in every area of our system. and that's something that any large scale internet property has had to do because there's so many different attack vectors and threat vekters on the internet. in a lot of ways what we end up having to do is build out much more security, much morrow bust systems than even other customers would be able to do. that's what customers and large

enterprises get as a benefit is you do get to rely on people that are much more focused on that effort than you otherwise would be able to do in your internal environment. so that's the benefit of going with vendors like google or amazon or others. >> how much time are you now personally spending and how much money are you having to devote to security as opposed to how much are you having to think about what is the consumer actually really want? and security is a huge portion of that. but it's not traditionally the thing they come to you for initially. >> security is not the area where you're getting innovation around. security baked into everything that we do and making sure that both end users and large enterprises can fully trust moving their data to the cloud is something that is an underlying enabler of our business. and so we have to maintain that kind of no matter wa we do. but i would say we spend a disproportionate amount of time and effort and resources on this type of problem, which is the only reason why we can go and is serve large enterprises like

procter & gamble, like ebay, like ea. we serve 92% of the fortune 500. that's because we focus in security and the scaleability of our systems for the enterprise. >> aaron, your ceo about a month ago was at a conference and he said, you cannot ignore microsoft. we on this set are often ignoring microsoft because we think about the world as an apple, google and android world and that's about it. where are you on microsoft? >> i think he meant to say you cannot ignore microsoft if you want to be entertained. so that's probably what the complete quote would look like. but, no, i'm -- you know, i think microsoft is going through a very, very interesting time. they have a sort of very profound sort of very significant force of all of the changing devices and is all of the changing services and applications that people want to be able to use inside and outside their business. and microsoft is in a very difficult, you know, period

where they don't exactly now how to respond to all of that change that is happening so quickly. they're used to a world where we bought all of our devices and we bought most of our applications that came from microsoft. that world has changed dramatically. if you look at microsoft over any long period of time, a decade or so, they end up investing in the right areas over the long run and they end up usually being successful over the long run. that doesn't necessarily mean they will be able to pull that out again. but it's meaningful from a start-up standpoint that you have to pay attention to that. >> do you have a guess for quarterly sales for microsoft? >> give me a number. >> i'm sure aaron would love to make even 0.1% of whatever that number is. >> we would be fine with that. >> what do people need from microsoft any more? >> yeah, i mean -- >> 21 billion. >> a quarter. >> what does google do in a quarter? >> less than that.

>> 14. >> so it's just weird that microsoft -- what is it? is it windows something? i don't -- i mean, microsoft is a behemoth. it's a cash-generating machine. >> but, erin, to me, the other question this begs, it's about your company and companies like yours. why aren't -- why isn't microsoft and google and everybody else stomping all over what you're doing or frankly just buying you? >> well, it's sort of -- we're certainly not for sale, so it's hard to do the latter. the so i think from a competitive standpoint and from a why aren't they stomping all over us, i think it's a competitive and dynamic landscape. what we do is very, very focused on one prop problem of how do you help businesses store, share, manage and access their information. and if you look at wa google is doing and the level of efforts and the breath of those efforts, this is one very small area for them. they're very focused on how do they bring fiber into everybody's homes and how do they make sure your cars can

drive themselves and how do you make sure we all wear weird glasses in the future. that's not conducive to how you build enterprise software. microsoft is a little different story, which is they deal with the innovator dilemma of how do they focus on a lower cost, much larger scale platform agnostic proposition that we're building when they have these other difficult challenges that they have to face. that leaves a lot of opportunities for companies like box, companies like salesforce.com or work day. a lot of the independent players that are able to sit in between a lot of the disruption that's happening in the device landscape and in the types of services that are really changing. >> aaron, real quick, you have a huge valuation. drop box has a -- there's a lot of companies in your space and in your world who have had a huge valuation. ultimately, what happens? meaning are companies like yourself, you still think there's an opportunity for everybody to go public? is this something where you say to yourself, i still want to be

a private company? how are you thinking about all this? >> yeah. i think that we're on a path that is sort of likely leads to the outcome of going public. i think if you look at the size and scale of the says, there's 280, $209 billion spent every year on ender surprise software. we believe the vast majority of that are transition to the cloud in the nk next decade. i think actually if you -- you guys were just talking about ibm and some of their numbers. i think you're seeing what's happening where a lot of the vendors in enterprise technology are reaching what they can create in terms of change and disruption. we're obviously going to benefit from that and a lot of other companies will, as well. >> aaron, thank you for -- i would say for waking up early, but in this case staying up late this morning. >> absolutely. take care. >> aaron, you look like some of

the kids that are here today that their parents brought in. >> i haven't seen them yet, but hopefully that's a good thing. >> i thought you were here, in fact. it's a -- though, it's not. he's very young, isn't he? >> how old are you, aaron? >> i am 28. >> oh. clean living, wow. have a drink. god. not now. >> i have a lot of gray hair. i don't know if it's picking it up on the camera. >> oh, yeah, i see that. >> it gifts you gravitas. >> in the board room two this morning, the investors behind it. are a bit on the young side. the squawkers are in charge on this take your kids to work day. sthoo thank you orville and wilbur...

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. welcome back. joining us on set is peter bang, ceo of old asset management. christian thwaite of investments management. thank you for joining us. >> happy to be here. good morning. >> we've talked about a lot of things offset. but you think there are some real missed opportunities that investors who have been high into e he tfs and other indexes are missing a serious opportunity. what is that? >> well, ultimately, i think what's going to happen is we've got to get past this breakdown of the policy. right? we've got a fundamental disconnect between the private sector and government regular

tatory authorities dealing with the crisis. we're five years into this thing, if you think about it. they still can't tell the markets what the rules are. they still haven't agreed on how we're going to regulate the financial institutions that drive growth. and so you have this deep, from my perspective, underlying capital that wants to be invested. you have very, very engaged business people would want to build, who want to hire, who want to deploy capital intelligence. who always wants to. it doesn't know what the rules are. and i think if we could get on the other side of debt, deficit, entitlements and tax structure -- >> i don't see that happening any time soon. i was more hopeful about this a year ago. but given how things are played out over the last six months or so, it is difficult to see a grand bargain or some sort of tax reform. i don't think you're going to get it. >> i think you're right. and i think that's why what you're seeing in this earnings season is a very tentative market. earnings have been, what, 73% of the announcements have beat

earnings, but revenue is the short call? revenue is your growth engine. revenue is what the growth comes from. >> the ceos have not been all that optimistic the. >> though. >> so i think you see the market look at that and what they say is the growth is not there and is we know ta because we're the ones generating it or not. and, by the way, we don't see the grand bargain, so you're seeing the market begin to be skil skittish again. >> we're sitting on them. we're not climbing any more. >> we haven't climbed for three weeks. >> exactly, joe. you're seeing people going, the growth is really not there. i think you had optimism in the first quarter. i think you're seeing people respond to see quest railing. the air traffic controllers discussion is it ottic. i think the market looks at that and goes, if that's really what they're going to talk about, forget it. >> and it's not politically correct to summarize. i can tell you what happens.

get one of the sequester to bite if they didn't know about it. the department of transportation runs the faa. they've got so much money that they blow out so much crap that they could have easily not furloughed these guys. they fuel it because -- >> it's the whole 50 million in research. >> look, we've got to go. i'm sorry. >> please come back and we would like to have a longer discussion. >> happy to. >> peter banks. >> my buddy? >> yeah, your buddy. coming up, we've got southwest air leans posting better than expected earningses and revenue. that's happened minutes ago. we'll talk to the company's ceo. ♪

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southwest earnings are out for the first quarter, excluding items and revenue beat estimates. gary kelly is the chairman, president and ceo of southwest airlines. gary, thanks for joining us. we appreciate it. >> great to be with you. and we've got to talk. this incredible stuff that's happening with the delays and the furloughs and -- but let's not ignore your results this quarter. i don't remember too many times when i've had to say, how did you miss? it's a well managed airline and you continue to do pretty well. >> we did real well. january is a tough month and we have to overcome that weak ps in the month of march. we had a real solid start to the year. we're essentially on plan.

we see softness as we reported in march and april. but the nice thing is it seems to be temporary because the bookings right now for may and june are quite strong. they're showing a nice year over year growth. if those trends continue, we'll have a really good second quarter. the other thing that's going on is that fuel prices have been a rule roller coaster this year, but right now, they're very moderate. we're very well hedged for the rest of the year. so except for wa i know you want to talk about, you know, our outlook is pretty good. >> right. because i saw a report last night on the nightly news and, you know, i watched the way it sort of presented. the airlines are saying that they were blind-sided by some of this. and then the reporter immediately showed la hood a couple months ago saying that this was going to happen. but then some of the people involved came back and said, yeah, we knew something was going happen, but it's happening

in sort of a haphazard way. and the airlines were not aware of which places were going to be affected and how to deal with it. did you not get a heads up on where the furloughs were actually going to come? >> no. no. there was no heads up. and, of course, we're just like you. we're hearing that there's a -- finally, we hear that there's going to be tax increases and budget cuts. but exactly how those budget cuts are going to be implemented, we have to idea. the briefing that was provided by the government was last week. and even then, there were no details offered. in other words, what airports? what flights? what type of day? and we still don't know on a day-to-day basis. so there's no way for us to -- there are suggestions we should adjust our schedules, but we have to idea on a day-to-day basis where we might need to adjust our schedules. and plus, it's against the law

for the industry to collaborate with each other on these kinds of things. >> gary, you -- >> we're in litigation. we are in litigation with the government to hopefully bring this silliness to a rapid halt. >> right. is it -- is it just in people's minds that this could have been handled had the government wanted to handle it but maybe they wanted people to feel the effects of the sequester because they said we would? i hear that there's money all -- even within the faa. not the department of transportation. there's money all over the place and they only had to cut from the d.o.t. but even in the faa, there's a slush fund, 60 million here or 50 million there that they could have, if they had agreed to the legislation to do it, they could have done it two months ago, but they didn't want to. >> well, again, let me -- >> you're not going to say it. you're not going to actually say that, but i mean, that's -- i'm not wrong, am i? >> let me speak to it. so, first of all, our trade

association, airlines for america, has already filed suit. so that should say a lot. and because we're in litigation, there's not a lot that i can say about that. now, with respect to the funding, the american people pay all kinds of taxes, all kinds of i've agdz taxes that go directly to fund the faa. we pay more in taxes than we get in services from the faa. so perhaps if we're going to have a furlough of the services, maybe we ought to have a furlough in the taxes that the american people pay also. but, yeah, your points are very well taken and, as i said, we're in litigation, so all americans should go to the airlinesfor america website so they can contact the administration and congress to end this madness. >> how much is it costing you, gary, for every day that these rolling furloughs take off? >> well, you know, so far, it's

intermitte intermittent. our on-time performance, the day before yesterday, the vast majority of our flights were on time. so it's pure speculation as to what it could ultimately cost us. now, if the ultimately cost us. if the delays are itself what it predicted last week, the the harm would be the hundreds of millions of dollars certainly for each individual carrier. >> gary, i'm as truss traited as anybody and upset about this. my only question, to the extent you don't win the suit, is it possible that somehow the faa figures out how to do this better. >> congress. >> i know it's congress. but i guess the question is. >> the white house said they will do it. >> taking savings from war. >> no. carney said they were open -- >> that was the story this morning. >> is it possible just on its

own they can make it better? >> that is the essence of our suit. of course we believe they can. we have league opinions that would suggest they have a lot of discretion as to how they can apply their budget cuts. air traffic controllers are essential personnel. that's the essence what we're arguing. this is really just unfolding since last week. we're kind of on an hour by hour, day by damon toring. hopefully people come to their senses quickly and restore this. it will damage the economy if we hurt air travel. so far i don't thithink may and bookings look good. if we can address this quickly i think everything will be fine. but we need to move quickly. >> thank you. appreciate it. thanks for coming on as you

normally do. appreciate it. >> always a pleasure to be with you all. >> in the next hour, earnings and outlook from dow chemical with ceo. and this will be your premium right here.

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we're back with the "squawk" kids. my first question, is it better to be faster or slower?

>> faster. >> i've seen that so many times. take your kids to workday. you blog about take your kids to workday. >> it's on the huffington post team. >> and you peace love profits. >> tonight she's on some web thing from huff post. >> 9:00 p.m.. >> this is like the don't show. she had plugs to get in. >> scotty, what do you want to be when you grow up? >> director and producer. >> of what? >> horror movies. >> who is your favorite director? >> sam riley or wes craven. >> they are the scariest ones. andrew, what do you want to be when you grow up? >> director or producer? >> he does that with sidewalk box. >> how about you, what do you

want to be? >> first or third grade teacher. >> how about you, kimmy. >> i want to think about being a teacher or lawyer. >> we have been talking about law school. >> you don't have to be union type teachers. >> thank you very much for joining us. the kids are sticking around. you have your kids too. >> that's my son's picture. >> he's 22 now. money has to last longer. i don't want to pour over pie charts all day. i want to travel, and i want the income to do it. ishares incomes etfs. low cost and diversified. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. i know what you're thinking...

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whichbut my shoes didn't what we'always love me.oesr. they spend most of the time under my desk, instead of on my feet. until i found dr. scholl's for her. they slip into my heels to support and cushion my feet all day. now, i'm a believer. and these are for flats- so comfortable! so i've got energy and style all day. this is happiness - happy feet. i think i can wear these forever. dr. scholl's for her insoles loving your shoes starts with your feet. i'm a believer! earnings rolls on. >> can u.p.s. deliver? >> find out what brown can do for you. >> plus, dow chemical with a

read on the economy. will my parents be able to afford a vacation this summer? >> we'll ask where gas prices are headed. >> a preview -- >> of exxon mobil earnings. >> a preview of exxon mobil earnings. >> it's bring your kids to workday. ♪ we're the kids in america >> good morning and welcome to "squawk box" on cnbc. it is bring your kids to workday. and you'll be seeing more of them throughout the show. it's always fun when they're here. >> this is one of my favorite days. >> controlled fun chaos. >> i don't know about the

controlled part. tpaouf futures right now, the dow jones opening it up. >> when are the twins getting here? >> harry and max will be here in an hour. and kyle quick. >> none of them could do three hours. >> not yet. you're not ready for them to do three full hours. >> i'm not ready to do three full hours. >> max is very excited. weren't you one of the producers of too big to fail? >> i was. >> it said producer. >> that is true. >> henry, max and kyle later in the show. >> matt: meantime, let's get to some of the morning headlines. the big one as airlines delay pile up, democrats and republicans are sparring over ways to solve the issue. the white house backs a plan that uses savings from decline in war spending to replace the cuts of furloughs in air traffic controllers. republicans say the president is

using it as a political maneuver. at least for a day as the george w. bush center is dedicated in texas today. president obama will be there with all the living presidents. and finally, verizon reportedly hired advisers to prepare a $100 billion bid to buy the rest of verizon wireless. it is currently held by vodofone. the bid would consist of contact and stock. a formal proposal has not yet been put forward. verizon came out about two weeks ago and said we're not doing this yet. and the story they wrote today said they have hired advisers but they haven't named the advisers. at some point in time it

eventually will happen. >> dow chemical out with first quarter numbers. the company earning 69 cents per share on an adjusted basis. eight cents better than expected. it looks like dow did see an improvement of pricing and profit margins for the quarter. joining us first on cnbc is andrew, dow chemical president, chairman and ceo. andrew, thank you for being with us this morning. >> thank you, becky. >> you know, looking through these numbers a beat of eight cents. revenue a little lighter. $14.4 billion versus $14.8 billion. that's a story we have been hearing all through earnings season. the idea that people still make or beat their numbers even though revenue is coming a little bit lighter. how did you get to the bottom line given where the revenue numbers came in. >> a little misleading, becky, contracts coming off following a

divest cher accounting for half of that. it's not indicative of much, versus anybody else. we have seen actually a stable economy starting to appear in front of us. and we said a couple quarters ago we would control what we could control. we have a price increase, deflationary environment. u.s. improving all through the quarter. the last 6 to 9 months. rebounding latin america, a china still mixed. but we have been focusing on operational efficiency as a way to get out numbers and to keep improving our numbers. that's what we said a couple of quarters ago. >> price increase, was that mostly in the agricultural sciences area? i know sales were up 14% there. >> sales were stellar in agrisciences.

two-thirds of the increase was actually from new product. it's a bit of a mixed thing. although there was price as well. i'm talking about the other businesses. from electronics, to performance materials, performance plastics. performance plastics increased its margin 720 basis points year on year. lots of good block on tackling. we're continue to go see the momentum in april. a sign not that the world is great but the world is stabilizing, which is a key theme attic and why we have been able to push price. >> you said china is meigsed. how does that match up with what you were thinking three months ago on china. >> well, three months, six months. we started saying china was going through a massive

transition. that transition is not yet done. i was there very recently. i would say to you their leadership is now all in place. that's a great sign. when i say leadership, i mean the top 2-jobs, not the top five or seven we get to read about. when you're there, you start to see them take new measures to urbanize, basically driven by services and lots of things that the west has. like pollution prevention for one. that stabilization is upon us in the next six to nine months i think but still not with us right at this moment. consumption is down in china. it's not just the usual stuff like consumption is done. it is government excess spending being clamped down. this is very intent to controlling consumption. as many things as you see, the banquets all changed as a result. >> if they're intent on consumption, does that mean

they're intentionally trying to slow down growth and you won't see a growth to 7%, 8%, 9% and even greater than that? >> i think it's more a tech nonic shift than that. it's introducing social security, health care, insurance to give citizens a sense of security so they don't have to keep a lot of savings and literally privately held. 37%. so that will liberate to actual consumption. >> trying to create more of a consumer economy along the way. >> yeah. exactly. >> so if that's the case, does that -- i mean, just what does that mean over the next couple of years? obviously longer term that's probably a goal they can get to. does it mean it will be choppy the next few years? what's the transition look like from here? >> it's being export led. now less than 25% of the gdp is

coming from exports. that number was way north of 50 two or three quarters ago. domestically which is in essence controlling what they can control just like what we did during the last quarter or so. that means, if you like it, an economy that has exports but is domestic driven. it means good things. 7.5%. 7% to 8% growth but a different type of growth. great opportunities for lots of companies like dow where 85% of the revenues in china are from high-tech specialty products. you know, even though china numbers were down 3% year on year, i think the trajectory is starting to move in a positive direction. i'm not calling china yet. for the whole year, we're saying 2013. we're planning as if it was 2012. because i do think it's going to take china a while. europe is still persistently weak numbers are down 9% year on

year. that's a dramatic down drop still going down. mitigated, as i said, by a good u.s. and rebounding latin america. >> hey, andrew, do you see like australia kind of feeling the effects of this? i was just wondering. i wouldn't call it a swoon. but china goes, so goes australia. is it slow down there at all? >> well, australia, joe, is a two speed economy. and the resource sector is the high-speed. everything else is the low speed. the high-speed has gone down to medium speed. the premier of china recently said even though with we dekphod taoeuz and less intensity now in the next five to seven years we will import $10 trillion of commodities. at the end of the day the kphods

led economy will be fine. it will create diversified economies which is mandatory in today's global world. so i think they will do just fine. at the end of the day i think china will rebound in the right way and the way we all want to see it. frankly, great opportunity for companies like dow. >> but does adam scott -- does that make up for whatever slowdown you're seeing? i mean, finally. i don't understand that. and you had like five guys trying to finally do it. were you happy? >> well, you know, the old theory if you couldn't do it with great playing you throw as many people out as you can and you'll emerge as a winner. is that where you were going? >> kind of. >> i know adam quite well. it was great to see him do so well. >> at least he's a good golfer despite being so ugly. maybe he can be a hollywood

matinee idol if he ever loses his stroke. that was good to see. >> we're running out of time. >> do you love kangaroo? tastes like chicken? have you had it? >> yeah. >> a little gamey. >> have you had it? >> i have not. kept hopping away. >> andrew, thank you for joining us today. >> i'll hop away right now. #. thank you, andrew. there he is. still to come, earnings from 3m and u.p.s. the incomes and the market reaction.

welcome back to "squawk". we have green arrows across the board. dow jones opening 56, 57 points higher. s&p 5. >> we have a power pair this morning to help us slice and dice through this busy earning season.

chief investment strategist and there's a kid in my ear telling me more energy. let me try this. >> whatever it is. >> jason trenner is here. he's going to talk a lot about the stock market. but if you think monetary policy is controlling everything, we have gray gibb. he is a cnbc contributor. guys? i feel like the woman on fox business with faux energy. >> there's a bunch of young whipper snappers ready to step in. >> you are equal in terms of how i would start this. i would say 1% off the highs. ibm, procter and gamble. we have had really not great results. and the people that predicted

the margins and corporate cash, it's not going to get any better from here on out. that's what people argue. yet the market has not peaked. s&p doesn't even go down when the dow goes downment it's confined to ibm. you stay in here. >> yeah. i think you have to. it's because of the idea of financial repreparation. we're seeing risk free assets. and we're seeing the acronym t.i.n.a. >> you pass the baton to you pause is it fed induced? >> when you look at how the numbers keep coming in, light on revenue. we heard from dow. beat numbers on earnings. >> everybody has been light it seems like. >> given economic numbers are

bad, keep missing on revenue, doesn't the market retreat more? it's got to be the fed, right? the thing i worry about we haven't heard the fed back the idea they want to taper off quantitative easing. next week we will have a better idea. but if you don't have the revenue and the fed proceeds with this determination to start to wind things down i think it raises some fundamental questions where the support is. >> my own view, i think there is no exit strategy. there's tightening, there's easing and then -- >> you don't think they have it? >> there are people there. i think the only people that really matter on the fed are -- no offense. i love dick fisher. bernanke, dudley. they are the most dove-ish people. you have taken it from 800 billion to 3 trillion plus

hasn't worked, it stands to reason that you want to take it to 4 trillion plus. i agree that if that happens it's a problem. earnings were flat. you had a total return of 16%. and so i was worried about earnings. it didn't wind up mattering all that much. >> greg, he just talked about how bernanke, yellen and doug were all that mattered. do they matter? >> they do matter. there's dissenters on the hawkish side. sometimes the dissenters aren't quite as loud in their dissents. you have charlie, rosengren. their voices matter. bernanke still trying to be chairman bringing the voices together. even though yellen and dudley are on one side, they're closer to bernanke than you might

realize. >> does that mean bernanke or more dove ish? >> if you're part of that leadership triad as they all are, you don't want to get too far from center. i would say some of the concerns they have are common concerns. there is a lot of worry. are we stirring up trouble. >> i want to go back to my favorite topic. ultimately, if there is succession literally in the next 12 months we wouldn't have to care frankly about what bernanke is doing. we have to carry about yellen or some of the other names. how does that change? how does the pour structure inside change the relationships if yellen, for example, becomes the person? >> well, i think that's one reason why you will not get an

official announcement. i'll say this. one of the legacies he will leave behind is federal open market committee. it's about economic projections. it has the forecast. it's harder for a single individual to turn that organization around 90 degrees. >> i'm less interested in that. i don't know why. it's like gossipy stuff. i'll tell you what i'm interesting in. 6.5% unemployment. supposedly is when they decide they're allowed to taper. what if because the participation rate never goes back up, what if, you know, we're stuck at 10 or 11. what if disability keeps right. what if people keep getting added. and the fed never really gets to the point where they can say we have satisfied the dual mandate. why couldn't they be here forever?

>> they kind of have left themselves a little bit of app out. two strategies they're pursuing. they won't change the interest rate to zero. >> so they will taper the other stuff. >> what number are unemployment would they start tapering, seven? >> it could be higher than that. they have been careful to say it's not the actual unemployment it's the outlook. it is a rubbery concept. it can be whatever they want it to be. even if they don't show the genuine job growth you're looking for they may say, well, we will still back off the qu. >> it's the tablet thing. like the combination with goldman sacks. >> sit. all the rational things you just talked about -- >> are off the table.

>> we have a lot more to get to. coming up, can u.p.s. deliver for investors? the the company's latest earnings. and a surprise drop in supplies yesterday sending gasoline and oil futures higher. that does this mean for what the price will be at the pump? we'll talk where prices are headed, what it means for your wallet. and more kids coming up too as "squawk" continues. revolutionizing an industry can be a tough act to follow, but at xerox we've embraced a new role. working behind the scenes to provide companies with services...

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when we return, a look at where prices at the pump are headed. it is up but barely. wti, 91.55. oh, boy. [ groans ] ♪ ♪ [ engine revs ] ♪

welcome back to "squawk box", everybody. this is one of the busiest days of the earnings season. first up, biogen, 1.97 a share, well above what the street was looking for. just 1.61. it increased sales of its multiple sclerosis street. and pultegroup, 16 cents. higher prices for homes and also

4% increase in new orders. southwest airlines came in with earnings 7 cents a share for the first quarter when you exclude certain times, 5 cents above estimates. and ceo gary kelly told us that the carrier is concerned about the ongoing effects of sequestration which resulted in numerous delays for the industry. he pointed out that the airline industry pays more in taxes than services and suggested a little tongue in cheek maybe we ought to have a furlough on taxes. he said they have already filed suit against the government and they are seeking a very speedy solution. >> okay. we were going to talk about oil. in the meantime, we have earnings to report. 3m just out. >> i haven't even looked. i thought you were racing over there. >> so ask me nice.

ask me nice. >> joe, please. >> 1.61. you know what i was doing, buying time. they come right to it. i'm trying to see if there was anything in the 1.61. >> 7.8 the estimate. >> full year, 60 to 685. >> 682 the estimate. if they hit the high end, it would be 3 cents above. considering the stronger u.s. dollar and the softer demand in somened markets it's prudent to alter our outlook for 2013. i like the word alter. >> lower. >> adjust.

here it is. they went down 10 cents on the high -- on both -- they had been 6.70 to 6.95. they're at 6.60 to 6.85. >> you are already seeing it down a bit. >> i know. with a 10 cent switch on a number that's almost $7 it seems to me being a little bit of a nitpicker. >> there are some comments from the ceo who says we remain confident looking ahead and are keenly focused on things within our control, driving productivity and improving the business. that's very similar to what we heard from dow chemical. they realize there's a lot of things they are not going to be able to control. they point out foreign currency, translation is expected to impact sales by a drop of 1.5%. a lot of things are outside

their control. >> i think this is 1.61 versus 1.65 estimate. so this would be a miss on the top and the bottom and a lowering of guidance. >> for the whole year it's only a 10 cent miss. >> this is similar to what we heard from a lot of companies that come through. the concerning point, we remain confident about control things within our control, improving productivity. that means they're not hiring. they're not talking about new jobs being created. that's a huge concern with when you look at the broader economy. >> it's coming from cost side not the revenue. >> currency effect is 1.5%. >> that's significant. a lot of multinationals -- you want to know why the nikkei is so strong. it's the opposite. it's a zero sum game. those companies are doing better.

someone has to do worse. >> two-thirds of costs generally come from labor. you have had all the leverage you can. >> four or five points coming off 3m. >> if they can't make it up the rest of the year. >> that's responsible for the dow. >> what is it, eight or nine or something? four or five points. 104. now we have a narrowing bid. it will be down $3 right now. 3 to 3.50. we'll take a few points off the dow right off the bat. >> the futures are still up pretty sharply. they're up 47 points, 50 points. it's better than we had seen earlier. it was 35 when we first started. >> even 3m. >> dow chemical? >> the dow is not in.

>> if you ask me nice, we can talk about oil. >> they were coming out. and you say, hey, we have 3m earnings. joe? >> you were buying time. >> i was. >> it takes a second for everything to pop up. and we're reading it right off the wire. you think we're reading prompter all the time. we're not. we're reading straight off the press releases. >> i will try to read the prompter, which is the big question we've been talking about this morning, will there be pain at the pump heading into the summer driving season. joe is ceo of gulf oil. i will ask you nice this morning, which is happening to price? we have this supply of gasoline seem to come down. i would have thought that prices

would go up. but it looks like they're going down. >> prices are going to continue to go down. i think what we forget, and we seem to forget it every year, twice a year we have to switch from a summer grade to a winter grade. generally may 1 and september 1st. so the drop is in stocks yesterday was not a demand-led drop. but the fact that we have to clear out our winter inventories, making room for the summer shipments to come in. we do that in september. which, by the way, we think is not helpful to the industry right in the middle of hurricane season to have a mandatory drawdown. if we were squirrels we would be storing nuts before hurricane season not drawing them down. >> what's the right answer there? >> the right answer is to have a gradual switch from summer to winter not a drop dead date is the answer to that. and if you really get behind the numbers, demand is down 2%.

production continues very, very strong with the dollar relatively strong. imports are well priced to come in. so i think we have a good chance from a government perspective to see gasoline go below $3 by labor day. some by labor day? >> by labor day. now, what we would like to see is we would like to see the jones act take it up to the northeast. we would like to see some of the prohibitions be relaxed. >> hey, joe -- >> all of that is a good thing. great for the company. >> is there was no drop dead date, how would that impact the

price right now? or if the drop dead date was extended out. you probably do want to have some date at some point, right? >> you have to for air quality regulations or running the cards. they need different blends for when the temperature 180 versus 40. it's a four-cent differential between winter and supper. i don't expect we will go up 14 cents. the supply on the market will push that down. we have crack margins that are high. they have to pay over that wti price to get that crude to refineries. if the government concentrate odd helping us build infrastructure to take it from where it is to where it isn't, which is fundamentals of

commodity trading, then the crack was probably adding another 10 cents to -- the jones act is probably adding another 10 to 15 cents. i hear there's talk in washington of modifying the jones act to say it doesn't have to be a u.s. build, u.s. flag and u.s.-run ship. there will be some leeway. if that happens, it will be very good news for the industry. >> what do you think of the new secretary of energy or the proposed secretary of energy? you seem to be obviously thinking that policy is an extremely important part of the future of your industry. have you seen any changes in the administration in terms of its attitudes towards your industry at all? >> no. i think there's still a fundamental dislike of the oil industry, that we're old, we're dirty. and i still think -- and there's also fundamental lack of understanding of how commodity

markets work. now -- here in washington, now that we're exporting gasoline almost a million barrels a day i hear rumblings in washington that they want to ban those. well, the the reality is they're going mostly to venezuela and mexico. why? their businesses are run by the government. i'm surprised given what the government runs here we're not importing post office. >> quick question for you. if the white house approves the keystone excel pipeline, what difference will that make to pricing on the east coast. and how soon will it take for that effect to be felt by the customer? >> it will probably be a 30 cent a gallon differential. right now it's costing 35 cents a gallon to ship product from the midwest over to --

>> joe, how much weight have you lost? >> about 85 pounds. >> 85 pounds. a shadow of your former self. but the reason keystone is still an issue has nothing to do with -- anything in nebraska. it has to do -- there's a whole contingent of people that don't want to build hydrocarbon infrastructure. and there's still fracking. it's ludicrous. >> we don't want to encourage drilling. >> they don't want to unlock any of the dioxide in canada. i see robert redford up there. anyway, got to run.

thank you for your time. coming up, stocks indicated up or down. we're halfway through. we have an earnings report card. hello! how sharp is your business security? can it help protect your people and property, while keeping out threats to your operations? it's not working! yes it is. welcome to tyco integrated security. with world-class monitoring centers and thousands of qualified technicians. we've got a personal passion to help your business run safer,

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we are halfway through earnings season. so if this was a marking period -- let me try it again. kids are yelling again. we're halfway through earnings season. so if this were a marking period, what grade would this season get? >> you can do it. >> there you go. this kid yelling more energy. >> it's take your kids to workday. we have slave-driving kid in there yelling. i'm trying. this is all new to me. energy levels and everything. ceo and research officer of call advisory group is here with his report card. good morning. hope you had some coffee. will you make this really interesting. >> we will, actually. >> if not, you won't come back. we always beat expectations.

>> yeah, sure. >> the big name brand companies have not beat expectations. it's 1% from a high. >> there's a couple things working there. you're right. the quality of earnings i think is in question right now. okay. you have 73% of the companies that beat expectations, but two-thirds are missing on the revenue side. >> two-thirds. >> that tells you there's a lot of manipulation going on in terms of trying to beat expectations. okay. manipulation in a good way, efficiency way. that's good. companies are executing. we give this a b-minus, c earnings season. what's concerning is the outlooks. four negative to one positive. second quarter expectations have gone from 7.3% to 3%. okay. why are the markets -- what you care about and what your viewers care about? i think it's simply a valuation thing. the s&p is expected to earning

$110 a share. >> will it? >> what are you shaking your head for? >> i think there's no way. >> for us to get to 110, we have to grow at 7.5%. okay. if we come down to 5%, they will bring us down to 105. >> we're using 96. >> 96? >> listen, last year, i'll tell you this, last year we were using 97. you started the year at 108. you wound up 96.82. you had virtually no growth in earnings. first call, which is after the fact. >> in other words, you were right, you were right. >> you were right. we were wrong. we actually thought it would matter. >> so even if you look at the number of at 105, 110, i think the market is looking at pe. let's just use 105.

you look at 15.80. you're looking 14.6, 14.7. now, historically, i'm not saying this is 2007 or 1999. we traded 19.20 forward earnings. can we get there? >> there's nothing else to invest in. if there was ever a time when there was nothing else -- >> it brings up almost exostential markings. the moment of sovereign debt is down 60%. you lost u.s., uk, france. people now i think are saying you know what, johnson & johnson is more of a aaa rated security than treasuries. >> is absolutely true. it's hard to know what the right multiple is. we have never been in the scenario. >> there's something that people aren't talking about.

you go back a year ago, we were worried america was going over the fiscal cliff. that it was going to collapse. it was headed into a hard landing. just to be a devil's advocate, can you justify the market. more or less they have faded away. >> very fair point. >> if you look at the earnings, the headline numbers look really good. we look at line by line. and there's a lot of one-time gains here, gain here. i just don't think -- i think the market is completely ignoring this. like you said, we're in a very unique situation. bonds are not attractive. people are -- where is a good place to put your money? dow 30. johnson & johnson. it's been around 100 plus years.

why not? it makes sense. i don't think you need to be a rocket scientist. because the outlooks are terrible. four or five negative to one positive. and every day you're seeing it. companies are bringing down expectations. you would think that, you know -- any time -- at some point we're going to pull back. but that hasn't happened. >> tell us when the bull back is going to happen. that would be something. >> thank you. >> when we come back, a special edition of armchair analyst. our little squawkers will tell us whether exxon mobil will meet, beat or miss expectations. and why. we have the futures ahead of that report. right now they are indicated higher despite, again, what we heard from 3m. we'll be right back. [ tires screech ]

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♪ we're the kids in america there's no tell prompter. i'm supposed to do stocks to watch. okay. now it's on. it was turned off. this is a loosely oiled machine. u.p.s. reporting earnings of 1.04. x items. that was three cents above expectations. you were talking about u.p.s.,

guys. dow chemical 69 cents a share, excluding certain items. sales slightly short of consensus. and 3m, earnings miss reported first quarter profit of 1.61, four cents below consensus. then the company cut its outlook to 6.60 to 6.85, 6.70 to 6.95. and exxon mobil in just a couple of minutes. so we're going to play armchair analysts kids edition. now, what is your name, please? >> samantha. >> samantha, you were in my ear. what was wrong with my energy level? was i flat? iowa boring sort of? why did you tell me more energy? >> i don't know. my dad told me too. >> i knew it! it's the director.

i knew that! i knew you wouldn't do that. you seem to sweet. you're really kind of stern with me. but that's okay. all right. now, who knows what exxon mobil is? you're natalie. what do they do? >> gas. >> like gas? you mean -- sorry. you're not miked up. >> cars. what do you think gas costs right now? >> a lot of money. >> it does. do you have any idea per gallon. >> my dad's car is hundreds. >> because he uses a big gas guzzler. i want to know whether you guys think it will be better than expected, worse than expected or in line? what do you think? what's your name? >> chris. >> what do you think? >> it's got to be one of the

three. better, in line or worse. >> better. >> you think it's going to be better. >> i think it's going to be better. >> i'm not talking to you anymore after that. do you think it's going to be better or worse? >> better. >> better than expectations. >> do you have a number that you think they can earn? what do you think? >> $3.69. >> whoa! that is pretty good. you could be an analyst. you might be an analyst. anybody have a guess? okay. who said at&t guy? if we had a house -- >> faster or slower? >> that guy did a lot better. i think he did a lot of takes. >> bigger or smaller? made out of candy. we've got to end this man, i'm dying. coming up, results from exxon mobil.

now, if he gets it at $3.69, you have to run. the sec might be coming. nfl draft tonight. what are the dolphins hoping to do now that the jets don't have darrelle reavis. we'll be back. 3.69 expected. flying is old hat for business travelers.

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we will bring you the number and the reaction from an analyst who covers the stock. >> it's draft day. miami dolphins picking 12th. we will talk strategy with steven ross. breaking employment data out. we're going to be getting the closely watched weekly jobless claims at 8:30 a.m. eastern time. it's bring your kids to workday. we'll find out how much our little squawkers know about the world of business. >> it's "squawk box" right now. welcome back to "squawk box" here on cnbc. first in business worldwide.

it's bring your kids to workday. u.s. economics at the economist. also, cnbc contributor. and chief investment strategist at strategic research partners. more in a minute. first your morning headlines. i'm out of breath. i can't do this. i cannot do this. >> explain to everybody. you have a child in your ear acting as producer today. >> with a whip. more energy. sit up. pretend you're interested. that's a little bit of what's happening. this is exhausting. >> exxon mobil 2.12. street looking for 2.05. >> it takes a little longer for exxon mobil's press release to hit the wires. we're still waiting. it looks like a significant beat

in terms of the bottom line. 2.12 versus 2.05. we'll tell you more when we get it because i still don't see anything. >> they made 9.5. used to make 10. in the past they have made 10. >> right. >> and they have done 100 billion a quarter in revenue before. >> while we can actually get a release and look through, other big earnings stories we have been following this morning. u.p.s. reporting earnings of 1.04. x items. revenues basically in line. 3m reported first quarter earnings of $1.61 a share, four cents below estimate. you can look at that stock 3% off. revenue also short of expectation. perhaps just as worryingly. the outlook not so hot either.

they were lowering their outlook. u.s. equities at this hour. still strong. dow up 67. nasdaq up 10 points. >> exxon was one i thought might miss. >> why? >> gas prices have come down a bit. commodity prices, oil price, everything else. and, you know, exxon was one of the ones i said, wow, other big -- i think of the masters portfolio. exxon, at&t and ibm. >> ibm had real troubles. >> i don't think they missed on their numbers necessarily. there are some troubling things some people saw. exxon home up 69 cents. >> earnings continuing to help with s&p. the next guest says the lack of revenue growth is concerning. joining us is chief investment officer for wealth and management of barclay's in the

america. you're absolutely right. a lot of companies missed, including 3m and dow chemical. revenue was lighter than expected. they were able to beat in terms of the bottom line. what's going on? >> we should not be terribly surprised. we figured the first half of the year would be slow. and you think about it, on the 15th day of this year, we had a tax increase, right? so it hit everybody. what was remarkable about this, the first look at retail sales number were very good. and they were revised lower. and they should have been. it's hard to believe the numbers were as good as they were at first plush. this is playing out the way it should. this should be a slow first half. and it should pick up in the second half. >> some of it is also because of the strong dollar. 3m was 1.8% of a negative impact. fluctuations just for the

quarter. that is probably not as big of a deal as what you're talking, though. >> americans won't spend less. it will go back to old habits. >> of not saving anything. >> consuming is a full contact sport in this country. i think we'll get back on track with that. but it's that transition period. you were talking with peter bain this morning. he is a great guy. used to work for him years ago. he was bang on. when you look at economic policy uncertainty and map that. and i think you have done some work on this, you look at the willingness of small business toss spend. knowing what the rules of the gapes are. it has an impact.

i think we are starting to see a revisiting of higher levels of uncertainty on the policy front. >> so what does that mean just from the markets? jason pointed out that he knew earnings would be weak last time around. does it matter this year? >> yeah. i think we're sort of -- yes, it matters. but i think we have this rotation going on from cash into equities. it's helped by fed policy and the like. the earlier conversation about what is the right multiple is a fair one. we have been doing work on that. it's hard to relate it to interest rates. we don't know what true interest marks are because we have been so heavily managed. there's a lot of it. it's probably hard to do. the answer you get is up around 16 or 17.

that said, you have to crank that multiple. >> two basis points in your money market funds. a lot of talk at the start of the great rotation. >> right. >>. it looks more from cash than fixed income. >> we are getting sovereign to get rid of cash. you're losing money. we're getting bayed from the risk. and from the public markets to private markets. private markets you still have opportunities to invest in

broken markets. it's one of a few places that still exist when you get a return that is perhaps better than the risks that you take on. >> so i actually hate to admit this but i actually had some people -- you know how if you have any assets here it went to ubs. paine webber used to be g.e.. >> right. >> so i actually talked to some financial people. i'm all g.e. no diversity or anything. >> you're kind of boxed in. >> i have no diversification. >> we're not allowed individual except g.e. and comcast. >> 60% equities. i said, listen, i'm not going to do that now. isn't this a unique time in history where really you can make the decision that i don't want it. i want like 5% fixed income. >> sure. >> is there any reason to be -- >> i just went down to 3%. >> see, i can't believe i have

to do this now. i told these guys maybe it's better not to do 40%. >> look at the real yield curve. investment grade, sovereign, high yield. you have to go out, what, seven years plus to get a real return. of course. >> we're not going to hit some spoon. >> and people putting 40% in bonds. >> that's the orthodox. but at a time like this. greg, 40% of fixed income right now? i don't want to say this but it's age-based. >> andrew! >> they ask for your age and they try to apportion it. like vanguard. >> here's a great factoid. apple yields 3%.

that's almost double. that changes the equation as well. >> you're paying $60, $65. if you play the dividend stocks, tell me, which do you buy? >> this guy said i like the sloopy sullen at joe sidewalk better. >> i like the energized. >> are you going to be blocking him? >> yeah. >> sarcasm is the domain of losers. not me. >> coming up, new class of nfl superstars will be drafted tonight. up next, we'll talk to one of our favorites. miami dolphins owner steven ross about how he will use the team's 12th pick. and we have heard from several squawk masters this week. still ahead, we'll be hearing from squawk minors. >> they made it.

>> getting ready in the squawk boardroom. there is kyle to the left, max, and henry to the right. guys, do you realize you're on tv? >> no. >> i think kyle has been crying. he does not look happy. >> we're back right after this with little squawkers. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. but i wondered what a customer thought? describe the first time you met. you brought the flex in... as soon as i met fiona and i was describing the problem we were having with our rear brakes, she immediately triaged the situation, knew exactly what was wrong with it, the car was diagnosed properly, it was fixed correctly

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welcome back to "squawk box", everybody. after a raft of earnings we got this morning, in fact, some disappointing. 3m disappointing. you still see dow futures indicated 53 points above fair value. stronger than expected numbers and that is helping the dow. in corporate news, verizon reportedly hired verizon for a cash and stock bid to take full control over verizon wireless. it partnered with vodafone. they hope to start discussions soon for a friendly deal. it is said to be prepared to take a bid public if the british company does not engage in talks. andrew has been reading about some of these things this morning and what a lesson-running story.

>> we have all been waiting for the moment this is going to happen. we're going to talk to dave. >> he will join us on this. eventually there will be a deal. he's going to come on our show and talk all about it. >> we are hours away to the kickoff to the nfl draft. the chairman and founder of related companies joins us now. the dolphins have the 12th pick. good morning. do you know who you're going to take? >> you don't know who you are going to take. >> depending on who has already been taken. just give me an idea, offense and defense. >> you have a lot of needs offensively and defensively. you want to talk the best player on the board at the time. you go through mock drafts and

all the trades that might be take place. you don't know really where you stand. and if we should trade or not. it makes it an exciting event. >> are you going to tell us anything or give us misinformation to throw everybody off. >> i think it would be good to bring the kids out here. >> you can be an armchair analyst and tell us who you are going to pick. >> with when we ask about investments he does that to throw us off. what a year last year. best ever for the nfl. for some reason it was just great. we have to live with our mistakes. hopefully you can eliminate them and get new players.

>> it has been business for five years. i don't know what that coincides with. miami, what a great -- as far as demos go. it wasn't the growth industry of the entire planet. >> well, miami is today the hottest city in the world. so aspirational, it's incredible. so there's a lot of exciting things going on in miami. we're trying to -- >> when you bought the dolphins, i thought you might have paid too much. now, i don't know. where are now? do you think it's worth more? do you think you can sell for more than you paid. >> how much money have you spent? >> we had an active off-season this year. free agency. you buy a football team to create a winning team. >> wayne is the best seller of anything in think business. he's the best seller of all time. >> so that doesn't make me look good. >> yeah kprbgtsly.

. >> what about new york real estate? >> new york really is doing really well at this point in time. the economy is still good in new york. and people -- we haven't built in a long time. apartment prices are going up. and the market is great. will it stay a that way? it's like any part of the economy today. we're a function of jobs and continued good economy. we're active, though, and that's good. >> i was with a friend, a billionaire guy yesterday who said he thinks new york real estate is remarkably underpriced. that because on a relative basis to a london, to a hong kong, shanghai, just completely different story. that it could still go up two, three times. i was sort of surprised when he said it. >> it's hard to believe. cap rates are an all time low. so i don't know how you get the

prices. there's not a lot of -- from the office market, demand is sluggish at best. companies are moving because they are moving to intensify and consolidate. so i don't see the office market. interest rates are so low. so people are buying and hoping because of lack of other investments the alternatives. >> do you think they are driving people into silly things in real estate space? >> yeah. we have seen it before. and hrbg of other investments. you see that. and khep money. we're getting used to the low interest. and i think that's a big thing. >> can you pick who is going to be big next year or do you have to wait and see? >> all fans are waiting. >> based on last year, who is going to be the top three? >> you have to like the 49ers.

>> that guy is only getting better, that quarterback. >> new england with tom brady. that's a constant it seems like. >> you don't have a fantasy football league. >> real-time. >> who were you saying? san francisco, miami. >> miami. i like what we're doing down there. what our staff is doing. we lost a lot through free agency. that's why people keep following. it is set out to be. start 8-8 and see what happens. you never know which way the ball will go. >> you're a new yorker. what about the jets? >> i'm not a new yorker but i

live here. i'm from miami. >> we have to talk jets or giants. >> i'm glad this year we're in the jets division. let's put it that way. >> that's cold. good to see. >> you exxon mobil reporting a few minutes ago. up next, an analyst who covers the stock. up 6 cents. breaking economic numbers. weekly jobless claims at 8:30 eastern. plus, if you notice the show looks a little more polished today, it's because we brought in extra help. little squawkers getting a look behind the scenes. they are cracking the whip today. we'll find out how much they know about business. i know what you're thinking... transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you

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welcome back to "squawk box". max, can you say hi to everybody? >> hi, max. >> there's a picture. >> that is a picture of you. >> we were talking exxon mobil. they just released their results. moments ago reporting earnings of $2.12 a share. >> that's a tv. >> that's a tv, max, and you are now on it. joining us on the squawk news line phillip weiss. we can see you. energy analyst. walk us through the numbers if

you can, phillip. >> sure. first of all, exceeded expectations by a little bit. production was a little bit short of what i expected. it looks to me like the performance was mostly in the chemicals business. >> were you surprised? we were a little surprise because i can there was a little bit of a worried given gasoline prices. >> it really didn't happen until march. they're looking a little bit weaker in the second quarter. in real terms, 1.5. sometimes that's a problem people point to. now the stock is not up. is that a problem? >> production is supposed to be down this year. that's expectations. but like i said it fell short where i expected them to be.

they ended up 3.5. >> so you don't use the adjusted number. it was 3.5% or so. >> right. >> all right. thank you for your perspective this morning. >> you're welcome. >> we appreciate it. kids are coming and going all over the place. >> it's getting a little more chaotic. >> that is max. henry is over there too. and now max is crying. >> he can't make up his mind. coming up, breaking economic -- you want your mommy, believe me. we're minutes away from weekly jobless claims. as we head to break, take a look at u.s. equities futures. >> mommy is better. henry, come here.

welcome back, everybody. we are just ahead of weekly jobless claims. the market is looking for

350,000 in those weekly jobless claims incomes. rick santelli is standing by at the cme. and joining us from new york, the futures this morning have looked prt good. a lot of earnings numbers in. so far so good if you are a bull this morning. again, these weekly jobless claims could have a big impact. rick, why don't you take it away. >> we are witnessing a pretty big drop in claims. revised from $3.52 to 3.55. that dropped to 339,000. so down 16,000. that's rather substantial. and anything under 350 has a threshold of significance to many analysts and economists. you will see an extension on the dow rally, dow futures. s&p futures ticking up a bit. but in the final analysis you are not going to drag me along.

the claims numbers haven't led you to the promised land in terms of true job creation when you take all the variables into account like the size of the labor force. what's note worth, truly, becky, you never see many days like this. preearnings equities are up. and every single major currency is up against the dollar, including the yen. very unusual setup. you want to pay close attention today. and i think the world is definitely going into kind of the twilight zone. that's evident by some of the stories today. how the european funding markets are doing great. long bonds and some of the shabbiest european economies has cause to celebrate. gee, where have i seen that movie before. >> yeah. that's weird. we keep hearing from all of these companies and the foreign

currency and how that will be hurting sales for the rest of the year. >> what i find fascinating, we hear from the companies and the analysts, really it's not so much the fed. these companies are great. balance sheets are wonderful. they have big horsepower. yet you get foreign exchange movement, they throw that away but they don't acknowledge the significance of how everything has improved due to managed low interest rates. there's not an ebg quitable and fair. >> some of the brand new multinational companies have given a lot of weight that the stock market is not necessarily up on good earnings and positive results. ibm, procter & gamble. i told you it's all money

flowing downhill from the fed, right? >> well, i think what it is is there's a big time lag. ultimately, whether it's about business and how the government and the fed fit in with stocks, programs, and whether it's about health care, anything the government is involved in, i think that it takes time to get into the consciousness both from an awareness and even unfortunately an honest approach to the realities of the world. >> the poor guy on main street is a couple years even behind that. >> you think there is a day of reckoning coming? >> there has to be, joe. there has to be. if everything going on in the globe was the way you're supposed to fix problems we would never have a recession or glitch in any economy again. >> this could go on several more years. >> no, no, no. it could go on for decades.

the more i look at everything going on, we just have a squashed economy in terms of output for a very, very long time. not only us, all the older developed economies is going to be a huge switch to asia. some of the asian economies. this is a global economic and we will look back and say that's when it started. >> whether it's take the coal industry. if we wipe out the coal industry. i'm not saying we should or shouldn't. just as an example. or wipe out everybody on the trading floors because the market squashed it. when things disappear it's hard

to resurrect them. aspects of the economy and productivity are going to disappear. it will be hard to recreate the magic because it is so resilient. it can't be destroyed. >> they said they're going to be focused on trying to control what they can control. that translates into productivity and fewer jobs. what do you think? i sees it as a squashed economy maury, are you there now? >> can i cut you off for a second? can he start over? >> the unemployment claims coming down are not exactly portraying a squashed economy.

in fact, despite all the worries about the problems that rick talks about, the reality is that the claims have been lower this year. they have been coming down. we had one disappointing job number in march. that had to do with bad weather in march. >> you can say that with the numbers and that makes sense when you look at the numbers. but the participation rate is what's been coming down so drastically. it makes people wonder how much you can buy into the numbers. how much is demographics and how much is because people don't think they can find a job. >> jobs are actually being created. again, what happened in march was likely weather related. the participation rate has to do with how you measure the laborers.

>> women started coming into the workforce enforce. >> a lot of factors feed into the participation rate. one of which is an aging population. you can't look at the participation rate just as an economic variable telling you about the economy. you have to look at how many jobs are actually being created. >> thank you very much for joining us. rick, see you a little later this morning. >> we will get to david faber. a possible $100 billion stock and cash bid. it is currently a joint censure. vodaphone. you're down at the exchange. david, what do you think. >> i don't want to opine on the state of journalism these days,

andrew. >> i already did at 6:00 this morning. we're probably at the same place on this. >> but there is a story here and i want to get to it. frankly, it's one we have been discussing on "squawk on the street" for quite some time. negotiating a term sheet, and that is the story. that's long over. it is a well choreographed effort. there has not been a formal offer made number hostile offer for that 45% of verizon wireless they don't already own. they are in the midst of this very open effort in some way toss get the shareholder base of vodafone to really start to speak loudly and clearly to the company ceo and say you have got to do this and do it now.

verizon made no secret of the fact that it wants to do a bill to buy the 45% of verizon it does not own. why not? many reasons. it is pretty good currency. to borrow 40 or 50 million dollars so you can be half cash, half stock. what i have heard from people is that is the job that verizon is willing to entertain. they are partners. they talk all the time.

they do talk. it works for them in that sense. so, sure, have they had conversations where verizon makes it clear we should get something done here? absolutely. have they hired advisers particularly for this deal? no. they have had advisers in place for a long time as you all know who have been dealing with this issue. is the mandate a little bit clearer? yeah. i would come back to this idea of a well choreographed effort. we heard from the ceo on the conference call talking about the tax consequences for saying they would not be that significant. we know they're trying. >> it's 20/20 hindsight. so they have done it 10 years

ago, 15 years ago? >> '99 they did the airtouch deal. a couple years later, if you rell they created skwrer rye zone wireless. >> it's always in hindsight. they take full control of this important asset. the real yes or no, what does vodafone do? they are left with a hunk of cash. >> that's why this has not moved any faster. >> and european wireless, what do you do with those? they may want to sell the whole

thing. there are a lot of issues. it doesn't mean we won't see a deal this year. the likelihood is higher than it's been in the past. >> david faber, thank you for bringing us the real story. we can lament the state of journalism in other places. talk to you soon. >> coming up, the dow transports volatile in april after strong growth the first part of the year. up next, we'll bring you portfolio picks as part of what's working series. programming note, don't miss the premier of america's gun. the rise of the a.r. 15. that's tonight at 10:15 eastern on cnbc. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs.

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no growth or slow growth trend. chief market strategist and senior transportation analyst in st. louis. are there contrary plays that always work? in there are. there are, joe, there are. the thing is i look across the economy i see a slow growth, no growth economy. we're seeing growth in e-commerce, continued in intermodal, that's moving trucks off the road onto the rail and in fracking.

and bringing kids to work. i brought mine as well. say hi. >> all right. awesome. what's his name? >> this is john. say hi, joe. >> hey, john, what's going on? what do you think? your dad is a tv star. how do you play fracking the best way in the transportation stock? >> fracking is changing the entire landscape. we like european pacific. they own the biggest franchise of connections to the chemical plants in the gulf coast. the cheap feed stock of natural gas going to the chemical plants means the oil out of the balance cans, they are producing chemicals, plastic. now the cheapest place in the world to make plastic. and that is big boom for union pacific. and you can see it in their chart. it continues to grow. it continues to produce more

cash, more shareholder returns. it's been on a tear. >> unbelievable. >> it's only just beginning. >> i remember that in 60 or 70. they were having logistic issues. now it's $150. >> when they bought the southern pacific it took a decade to fix it up to union pacific standards but they have done it. now we are seeing a great return. we got a triple out of that stock since '09 when we upgraded it. >> you have stocks for the other two thesis. i said these is he. we have kids everywhere. i said theses not fees else. >> they have a better mouse trap when you look at their business. agreements with the railroads, burlington northern in the west and norfolk southern in the

east. the largest intermodal out there. >> someone is in my ear telling me to wrap. do you have one more? >> u.p.s. rated hold right now. they printed this morning. they printed a beat. e-commerce drove results. >> i don't know what the big rush is. anyway, don, we appreciate it. we have those three stocks. what's the job in there? >> hello. >> hi. >> is there a problem? >> no. i am just asking you that -- >> you want me to wrap. i know. got you to wrap. everything else okay. >> yes. i am in here and i'm going to switch it on to blame. >> blake will tell me to sit up straight, smile. enough already. >> all right, wrap it up. >> i'm done. >> you keep saying you will.

>> when we come back, our guest hosts this morning. we'll get final thoughts along with all the other kids around here. yeah. hi big guy. >> everyone is good. >> henry and max are good. they're typing. revolutionizing an industry can be a tough act to follow, but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars

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welcome back. it is time for the last word from our guest hosts. guys, we've talked an awful lot about the markets with doing, what the fed is doing and between the two. real quickly, the fed, are we going to see any action from them this year to actually taper? >> i think we will but we need more time to know whether it is the right time. next week will be crucial. next friday we'll see whether the slowdown we saw in the march

data in employment and other data will spill into april. two key indicators told us it was a real problem -- jobless claims and the stock market itself. fact claims came down this week is very important. we've talk all morning, why is the mark so strong, though revenue is so weak? maybe the market is telling us something here. maybe it sees something we don't that's weakness in revenue, perhaps it is temporary. >> what will the market do if the fed actually does start to taper? >> i think if the fed does start to taper probably means the economic environment is a little bit better. >> will they read it that way or will they read it as we can't have our cake and eat it, too? >> rick was saying before, this is all artificial, i agree. the u.s. has the best chance of any of the g-7 of growing its way out of its debt problems. you aren't just fighting the fed know though, you're fighting everybody, fighting all the central banks around the world, maybe with the exception of the

ecb for now. bank of japan, also bank ever england, swiss national bank. >> i can just give you an enormous amount of credit for conducting what seems to be a very serious conversation while basically romper room was going on. >> all my conversations are like that. i'm used to it. >> i love the duck noise. >> they're demanding it. >> they love the ducks. >> greg, jason, we will talk to you both soon. >> i can sort of talk. you can't really hear it's hard. >> try and do it. no, i can't. coming up, time to hear from our little squawkers on financial literacy. we're going to find out if facebook is still cool. ♪

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welcome back to "squawk box." time to hear from some of our youngest loyal viewers. we want to quiz them about what some of them know about stuff. what's your name? hi. i'm andrew. this is henrich. say hello. say hi to the camera.

kids, you heard of facebook? >> i have. i'm just learning about right now though. >> do any of you guys know about facebook? who knows about -- you can't be on it yet. right? >> i'm not on it. >> you're on instagram. >> facebook and twitter. >> you have a twitter thing, too. >> i don't have facebook. >> you have instagram -- >> my blog has facebook. >> your blog -- oh, look at. you're promoting it again. that's shameless, blake. you keep promoting this thing. what about apple? who knows about apple? all you guys have heard of apple. right? all of you? that's the one thing, andrew. that just shows you that it was probably topping out at $750 when every kid that you would talk to, that's the one stock that they would have heard of, probably wanted to buy and that might have been an indication that maybe it was overpriced at

that point. so you have your hands full. >> henry keeps saying he wants to go working which means he wants to go to the computer at the desk. we may have to go do a little work. >> we have about a minute left. who wants to talk about -- what's on your mind? blake, what's going on? you want to plug something again? >> i just want to say something. i've been trying for a very long time to convince my father to get an instagram because it's becoming more popular than facebook and twitter. >> i don't have facebook so they can't bombard me -- >> twitter. twitter. >> i don't even know what instagram -- >> it's @joesquawk. >> i thought it was @squawkjoe. anybody else? i think we're going to wrap it up here. it's been great having all the kids in. it is once a year, which is plenty, i think. we hole our breath a little bit more not knowing -- because all

kids are liable to say -- remember art linkletter? i have a newfound admiration for what he was able to do. where's becky? >> we're here. >> that does it for daus. join us tomorrow. right now it is time for "squawk on the street." bye, guys. say good-bye, everybody. >> bye! . ♪ that's television. wouldn't you say? one of my favorite days of the year. all those kid. just gorgeous. >> makes me miss my own. >> good morning. welcome to "squawk on the street" on the single busiest day of earnings season. i'm carl quintanilla with david faber. jim cramer is at the home of villanova, university in suburban philly as the "mad money" tour rolls into the key state. >> it's take your kidso