>> does it start with fiscal responsibility? >> fiscal is the part of it and it's not the end in itself. we have to deal with long-term entitlements and for the future. we all know that. what's so frustrating is we know what we need to do. our politics just aren't doing it. >> that does it for us today. now it's time for "squawk on the street." it is wednesday, the first day of may, and the burning question is do you sell this month as the saying goes? >> good morning. welcome to "squawk on the street." i'm carl quintanilla, david faber at the new york stock exchange. adp did disappoint, ism hits in about an hour. of course, the fed decision later on today. futures are off of their highs. in europe, most of the markets are closed for the may day holiday. the ftse is rising out of manufacturing data out of the

uk. our road map begins with the job market. the report missed expectations and is that a bad sign for friday's number from the labor department. we have the media world out this morning. comcast, time warner and via com. we'll break down the numbers for you. >> the new safe haven and investors piling into the $17 billion debt offering. apple is sitting on a lot of cash, but is that a guarantee the company will even be around in 30 years? pharma troubles. merck sales coming up short after pfizer's disappointing announcement yesterday. >> we'll begin with the markets which exited april like a bull. the s&p 500 at a new all-time high. $1587 and the nasdaq closing up six consecutive months and the dow posting a fifth straight monthly gain and as you saw, futures are under pressure after adp did add 119,000 jobs and the estimate was 165, this as the fed gets ready to wrap up the

two-day policy meeting. in that month, it is past few years, it was down 6.2 and 1.9 and the numbers are good for the nasdaq. what do you think? reversion or not? >> i do know that if you look at months that have been up 1%, predecessors, april, the numbers change dramatically and then you start getting 50/50, a coin flip situation. we also know if you have the first four months of the year going up and it's 14 out of 15 times, thank you btig that the market finishes up with another great run. so let's make it this way. if may comes down historically, you better buy it and those are better odds than what happens in this coin flip although the last three years, clearly negative. you've been laughing and poking fun at parables that go away. >> one suggestion on twitter was

make my day. >> i think that if may had a different name, we wouldn't do it. let's say it was festive us. >> we might just say sell in festive us. that doesn't make sense. i do think if you ever get these platitudes, what ends up happening is you look at companies that report and you say geez, you know, i should buy that even though they sell in may. it's been very much of a stock picker's market. we know that dow components are continuing to disappoint and four days later we say why didn't you buy it? sell in merck and merck is a stock that i've been trying to accumulate for my charitable trust and i look at it and say 3.7% yield and i like it more than apple bonds. the fed will look at numbers that have been generated by the adp and say i can't tighten and you keep coming back when they say i need yield. >> we'll watch that fed today

and we'll get the statement around 2:15 or so today. i'm starting to come to the belief like many others, it's all about cheap mono pep it's about reaching for yield on dividends which as you're saying is sustaining stock prices and it's about the continued buyback by shares from companies. we'll talk about apple in a moment, but many others and simply continue to have creeping, not lbos, but shrinkage of their market cap, hence eps higher. that's it. if rates were to go higher, it's all over. they have access to the capital and pfizer is talking about splitting the company and people who sold pfizer will say why did i sell it? it was disappointing. i go to buy the apple bonds. microsoft actually borrowed even better than apple and these are all to me, sucker punched. because i want to borrow at the

same rate that they want to borrow. >> in the same way when i look at my mortgage, i can't believe that the banks would lend it to me. i don't want to go by the people issuing the bonds. i want to take the bonds. i want to offer. i want to get that mortgage rate because it's so cheap, our kids will look back. any new propertieses we should know about? >> yes, there are. another one in mexico to play the peso. >> you mentioned merck by 6 cents and the yield 6 cents. >> the guidance, was down. they mentioned currency problems and don't these companies show that they'll have to execute and the guidance has to hint they'll execute. >> merck has one of the greatest pipelines in the industry and people don't understand, the stocks totally play on pipelines. merck has 21 candidates in phase 2 and phase three.

that's a big shots on goal situation and that's how these trade. they do not trade on previous earnings and they trade on pipeline so you listen to the conference call like eli lilly. it was down badly. johnson & johnson supposedly missed and i'm saying that's been the pattern. they've all passed their patent cliff. yeah, i don't like that, but if they have new drugs they'll go higher. look at what happened to celgene and biogen. these are all pipelines so we can't trade on what we currently see. merck has got one of the best. so those who look at the year so far and say gosh, stloez been weak and you don't think that is over? >> i remember merck in 1987, they had terrible numbers and they had this drug and it's called mevacor. >> what lowers cholesterol? what does lowering cholesterol do? cholesterol created a situation with fewer heart attacks.

fast forward. they bought lambert who just had a competitor. it's pipeline, pipeline, pipeline, and watch it go to 200 and say why is it a 200? the last quarter was bad. pipeline. >> it is interesting to note pfizer has taken aggressive steps to separate businesses whereas merck hasn't. they have other businesses there as well. >> i'm not saying that, but it is interesting. >> i met with him recently and he was the schering-plough ceo who sold it to merck. merck tomorrow could wave a wand as could j & j and as could pfizer and create a tremendous amount weight the way bristol-myers did. if you look at this company on a static basis is be hit on the head because they haven't integrated. there's so much more to come. merck, should you have shorted it yesterday? yes. should you get longer today? yes. >> okay. >> my head's spinning a little

bit. >> it's the church of what's happening next year. >> what is happening next year? it willy, let's talk about what's happening this morning in media if we can talk about that. it is a big day. we have viacom earnings and comcast, of course, and our parent, all 100% of us and all three media giants did post better-than-expected earnings and revenues. i'm not going to get into that. let me tell you what's actually going on. let's start with viacom itself and it sdashdoes appear that th was a positive surprise. what they were looking for is where is domestic advertising and it was up 2%. overall networks for the media domestic and worldwide it was up 2%. you also had affiliate fees up 3%. film entertainment that created a headwind in the quarter, but we all know, right? films, one quarter great. next quarter not so great and these are cable companies, via

com, time warner and it's going on right now for via com and there are a lot of of questions. one of the key ones is what about netflix? >> we're in the driver's seat now and we'll start cherry picking content as opposed to buying the bundles. if you look at the media stocks they have underperformed. on the conference call, important questions about the netflix relationship. we know that they'll sell a lot of content on netflix and what will they be selling and will that hurt. what i heard from the call at this point is it's not going to be an issue and they still see things proceeding a pace for netflix, but it's an interesting question. >> i think this is again, the situation we're faced with. bernanke versus the fundamentals. >> yes. i want to know very much about what they're doing with threat fliks? >> when i look at these buybacks, i'm saying i can't believe the share count. for years, the share count for

most companies stayed the same. other than cracker barrel, when you looked at the share count they did a lot of options and now i look at share counts and say 25% of the company vanished and when the buyers come in they move the stock. >> it is one of the key drivers of value in the media sector. no doubt about it. they bought $700 million back this quarter. it was 2.8 billion over the year and they returned 1.7 at viacom. time warner looks good on the bottom line. a lot of of cost-cutting or attacking the cost-based there at time warner. however you may see some disappointment down 1% and the sub numbers, they redid's lot of the affiliate agreements and that's what gave juice to the stock price. that number may be a tad lighter than people anticipated. that call has not yet begun. finally, let's get to comcast,

our parent company. you say that because you can decide if you want to believe what i'm saying or not. they did lose 60,000 video subs in the quarter. maybe some concern there. overall, it is so much about broadband and not video a la netflix and the concerns there and the power that netflix had. here's what brian robert his to say about the power of broadband to the company earlier today on "squawk box." one of the things we're trying to do is redefine in the consumer's expectation, what is the broadband experience? so it's not just coming into the house. it's transmitting throughout the house that has the fastest wi-fi experience in the nation which is one of the new investments we've been making and a claim we're proud to make. >> overall and speaking to a handful of investors this morning, most in out saying looked pretty good. solid quarter. >> is the battle here how someone who is 25 is going to

look at the world? are they going to buy the t-mobile or the at&t and watch on their device or are they using it on a tv? it just seems like everything is in flux. >> this huge debate of heinz and blackberry. >> how about charlie jurgen throwing mud. when you look at what my kids and i was talking to john earlier, the ceo. >> he'll be joining us from t-mobile. >> all people are thinking is, okay, that 21-year-old is just a data hog, but where? are they data hog on the verizon fios? >> they're using the wi-fi on their home on a tablet or mobile device, right? >> when you want to watch a movie you're still going to do it if you can on your tv. it doesn't mean that you're necessarily going to use the cable or the broadband to do that.

>> how can there be room for everybody? how can we have room for telephone and how can there be room for via com and room for netflix. reed haste suggests basically saying it's one world, partner. it's netflix. >> all of that disruption you're mentioning we were going to do apple briefly. the 30-year part of their bond offering as we mentioned yesterday raises the question with all these changes and even with all that cash. do we know that they'll be around in 30 years? you don't know. you do what charlie jurgen is doing. he's making a bold move if he can get sprint. >> he is. >> if apple were to say, you know what? all these companies are small. >> jim, we don't know the answer and you are right. we are at an important flexion point and there is no doubt that people are not going to be taking full cable services in the distant future. how they're going to be using it

and how they're going to be paying are all question marks and largely the same companies that will change the product offerings and the content providers will still be in a good position. >> who talked about netflix? >> these younger people are price conscious because this is a new world. you want to play bernanke? these people don't have as much money as they did when they were that age. they're comparison shopping and they'll say i don't need 340 to 600. >> broadband is water. you'll need that. >> what are you aqua america? why are you telling me what to buy? >> that is the key product. as brian roberts just said, our fearless leader. >> on a day when we'll get a new fcc leader. there's a lot going on in the industry. >> anybody trying to gain the 21-year-old which is historically, by the way, what the advertisers want is misjudging because they're not 21 and they don't know unless you pay for their data plan and

boy, do you ever know that. wait until your kids exhaust well data plan on may 2nd. >> this will be a bad day, man. >> the emokicons. >> i speak emoji and it costs the lot of money to speak that. >> when we come back, call it ceos on parade on "squawk on the street," live interviews with the heads of t-mobile, iac, spirit airlines, halo, the company behind the app that allows you to hail taxi cabs and real estate website. the stock is up nearly doubled so far this year. take one more look at futures trying to make some sense of the adp miss this morning. will ism be negative in 45 minutes? we'll find out and we'll see what the fed says later on. back in a minute. changing the world is exhausting business. with the innovating and the transforming and the revolutionizing. it's enough to make you forget that you're flying five hundred miles an hour on a chair that just became a bed.

you see, we're doing some changing of our own. ah, we can talk about it later. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪

>> let's get to mary thompson who has the latest on mastercard's conference call. >> interesting comments from the company's ceo. he says the economic environment is mixed. they're maintaining a cautious outlook on the environment as they have throughout the year and they're not changing their outlook for 2014. a little bit of color on what they saw from the consumer in the first quarter. they said consumer spending in the u.s. was sta strong at the start of the year and started to cool in february as concerns of

higher taxes and some of the economic data had an impact on consumer confidence. he did say with housing prices improving that could translate into higher spending. however, he did say that the outlook for the second quarter in the u.s. looks, quote, dodgy. in europe he said growth in europe is slow ask mixed. we develop countries and seeing higher spending there with some of the e merging markets in europe or developing markets in europe. in asia, consumer confidence is improving. however, he did say that the outlook for china is mixed right now and that will have imp implications not only for europe, but also for the rest of asia if china growth slows more than expected. as far as latin america, a mixed picture there. overall, a cautious, some cautious statements from mastercard which again came out and beat on the first quarter numbers this morning. carl, back to you. >> that's going to get our attention. thanks, mary. >> i mean, i had a couple of

ceos there and they say china stabilized. this is so day to day that you understand why stocks are going crazy and then again, you understand why they're up in the end because if things are mixed in china they can get better. if things are mixed in europe maybe they can get better. all i'm trying to do is explain, there are very good companies who come on and say things look darn great. >> they do. we rarely hear that. even when they do they're not going say this. >> the only company that i've known has come on to say we have great visibility is dominos pizza. >> you had your cheesy smiles. i'll tell you what was so strange, just to give you a sense about crazy. the place where they have the most demand for pizza in the fewest store, france. they have 200 outlets. they need 1,000. the french are crazy for jerry lewis and domino's pizza and they're very similar. >> wow! one of mcdonald's biggest

market, too. >> in france. >> that was incredible. >> when i was in france, was there a mcdonald's and i did go to it and it was near the champs-elysees and i said i'm spending a ga zillion, give me a happy meal. >> it's a royale with cheese, by the way. we'll get the mad dash after a short break. how do traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason

serious investors are choosing fidelity. now get 200 free trades when you open an account.

the new blackberry z10 lets you peek in and out of messages in the blackberry hub from any app. blackberry z10 with blackberry hub. built to keep you moving. see it in action at blackberry.com/z10. ♪ ♪ ♪ ♪

>> six minutes before the bell this wednesday. let's get cramer's "mad dash." we were talking about some of the social housing names, trulia, zilo. there are companies reporting very meager be ins, but the buyback's big. if you want growth, it is this area, trulia that reported a monster number at zilo. these were the ones that were looking famished when they came public, but this housing market, finding a house, valuing a house, there is room for more than one. what we hear about is shortage of housing, trying to get the best value. these are the ones. these are literally the price discoverers for people looking for everything. >> trulia record arpu, but the complaint on both of these names

is when will we start to see that on the bottom line? the multiples are interesting. it did come. i do tell you if there were 2 million houses being built in this country, you wouldn't want it, more importantly, houses are so hard to value right now. the houses are changing in price regularly as we saw from kay shiller. so how do i find out whether i'm overpaying? these guys. zillo and it does matter and people are forced into using advertising, but realgy is doing real. these are the housing plays that are ancillary. i want the picks and shifls for the gold rush of housing, trulia. >> the the limited supply is key. >> no one is playing anything housing. give me a housing play and i'll buy it. >> when we come back, a different ring for t-mobile this porning. we're talking about the opening bell. the ceo will pay us a visit to post 9 and i think we'll get a

surprise a few seconds before the bell. that's anything up next.

welcnew york state, where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit thenewny.com oh, boy. [ groans ] ♪

♪ [ engine revs ] ♪ [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade.

on the street" opening bell set to ring in 90 seconds. the big story here is t-mobile, guys. the combination of t-mobile and metro pcs, 3 million customers, wireless customers and we'll get some sort of bell or ringing tone before we actually get the opening bell themselves. >> i like that girl on the motorcycle. i enjoy her. >> are you talking about the attorney general of california? >> i like the speed of the network. i don't know what you're talking about. >> sorry, guys. i apologize i -- think -- >> if you could get politically correct, you would realize that that woman is no different than anyone else. >> the fact she's leather clad -- >> and she's smoking hattic mas no difference and you should go buy the net worth? >> see? by the way, where is that lady? why isn't she here? >> i think you're right.

i have no idea what the story was. >> michael douglas' wife is going up. ♪ ♪ ♪ >> there is the opening bell and the s&p at the top of the screen. t-mobile celebrating the completion of its merger with metro pcs and we'll be talking with the company's ceo in a few minutes. at the nasdaq, paterson companies, distributor of dental, veterinary supplies. people like their pets. >> petsmart has come back and patterson dental, remarkable company as is henry schein. he doesn't have a racing model -- >> david's not interested. >> i used to meet -- >> i knew henry schein when i was a little boy. >> really? >> yeah.

yeah. yeah. >> the man behind the -- >> yes, henry schein. the man who started it all. he passed away. sorry. i wanted to share that with you. >> we didn't get to apple which closed positive for the second month, just barely yesterday and the big of the corporate debt offering in history and tim cook will speak at all things d-11 and that was news yesterday, as well. >> there were six price cuts and one downgrade and there were price targets and it's clearly again, i'm going come back to this, and i know people were sick of this. buyback plus 3% yield means bernanke says the buy list. >> bernanke is taking merck and hold the buy. he is telling you that pfizer, he's raising the price target and the federal market committee and forget what he says. when he's saying is i think vie on com is a conviction buy. >> right. >> we say it many types, and apple can borrow 2.4% of ten

years and they can buyback stock and don't forget, interest payments are tax deductible. it can be cash flow accretive and they're shrinking the shares and it's also eps accretive. >> what does the fed want? it of thes you to hire. when i had dominos on, listen, our guys who want to open the franchise and they're using money to buy back stock. >> we'll talk more about this in a success, but the problem seems to be it's more about buybacks and less about capex which people say is long-term negative. >> let's get to phil lebeau and these ford numbers at the bottom of the screen. >> carl, we have better-than-expected numbers coming in for ford for april auto sales and an increase of 18% and the estimate was for an increase of 16.2%. it breaks down like this, cars up 21%, utilities up 16 and cars up interest and in particular, i want to focus trucks. f-series sail sales increased

24%. combine that with chrysler who said ram truck sales last month were up 49%. it is clear that we're seeing a definite re-stocking of the pickup truck inventory in this country and that certainly bodes well for small businesses and contractors. ford up 18% in april. we've got the gm numbers coming up in about a half an hour. back to you. >> that is a big deal. your point about the pickup phil, is well taken here. the pickup truck is a small business story. >> the f-150 is a small business story. ford is having problems in europe, if ford gets the restructuring right. look at that stock and it's moving up and general motors, who knows? it could be out of the s&p soon, and i think that's a buy. i think there is a part of the economy that is on fire and it is autos and housing and it's just a feel good story that's working. >> sort of flies in the face of arngs dp where small business was adding 100k in january and

february and went to 74 in march and went to 50 this morning for april. >> small businesses can't get credit and there's not a lot of demand for their products and this is big business and doing well for people. ford has been higher, but it's not the kind of hiring that bernanke wants. so ford, he's right now neutral on ford, bernanke, but he may take that to a strong buy after the fomc. he is calling the shots here. >> and has been for quite some time. >> he has a great research department and it's mostly hold the buy and raise price targets. >> he's got a lot of phds. >> they do a lot better than the goldman sachs guy who cut his price at apple and do you think that bernanke was cutting the price to apple? >> no. >> my favorite -- >> speaking of price targets and my favorite stock of the day is harvey silver blat and takes the price targets and manages them for waiting and it shows a 12-month target on the s&p of

1721. that's what professor segal said. and dow 16,180. >> a guy on the subway asked me if we're going to 18,000? >> come on. >> that's the shoe-shine boy. >> again, look, you can do a lot if you buy back stock. >> 28.96. does anyone think that pfizer with that yield and that balance sheet can't bootstrap itself higher and that's what's been happening and i think those statistics that you just gave us are really a function of bernanke and bernanke stays easy, then some of us will be right. >> i do want to mention the nim names in media. viacom is up almost 4%. and via com being rewarded by investors. it's not about revenue growth, but they've had real struggles at nickelodeon and there have been questions about ratings

there and advertising, but it is up 2% worldwide and that is being embraced by investors. time warner, on the other hand, as i said, they haven't had the call yet, i don't believe. >> don't you think it should be addressed? do you think the analysts will risk talking about it after congratulations is always the great quarter. >> remember i do the congratulations ratio, when you have more than 50% congratulations, that stock goes higher and it doesn't need bernanke's report. great quarter david. >> netflix saying hey, we know our users better than anybody, so we're not just going to buy everything that you want to sells. >> to be fair, reed hastings always praises the time warner model. he's actually very acumenical about it. >> he'd like to get $14.99 a subscriber also. >> so would t-mobile. >> bob pisani is on the floor

watching what else is moving. >> there are a lot of t-mobile executives and that merger now complete with metro pcs and t-mobile and it just opened at $16.25. there must be a hundred t-mobile officials and the management people walking around today. i want to talk about earnings because everybody is unhappy about the top line. i just want to say we're having record quarterly earnings. i know, nobody believes it, but it's actually true. the s&p 500 right now $26.44 according to s&p capital iq and that's an all-time record. i know. nobody believe wills it. how could this be? revenue is terrible, merck's missing. caterpillar's missing and it's a little bit of an illusion. 70ers. of the companies are continuing to bet bottom line, not on the top line, but on the bottom line and it's been by the biggest sectors, so health care, despite what happened with merck today, financials over 70%. technology, 70%. those are the three biggest

sectors in the s&p 500 and when you get the three big sectors and all of them beating by at least 70% or more you will push the new estimate and that's why we're at the new high in earnings. the big story as everyone said is the top line, the revenue issue. so only 43% of the companies are beating on the revenue side. 73% on the topside. two-thirds reporting for the quarter. it is the bottom line growth, it's less than half of the bottom line note. that's a lot of dividends. we saw it again. look what's happened, cost owe, american express, pepsico and ibm and so far by my count, i had 175 companies raising their dividend this year and only nine have lowered them and we saw what happened.

their stock dropped. elsewhere, the big story again today is deflation. lock at these commodities, silver copper aluminum. materials and energy stocks are under considerable pressure today. so today when we had the fed meeting although there's no press conference everyone will look at the comments on inflation and see if they're low enough for the fed to continue the qe policies and that will be the issue. meantime, the overall trend in the big multiindustry companies continues. spx very big in fluids and various technologies around fluids and had a very disappointing number. some of these big multi-industry companies have continued to cite europe as the main problem and once again, this was the situation with spx and rid now, metro tpcs, and 16.29. guys, back to you. >> thank you, bob. >> i still think in the end we see via com up. >> what's it doing?

buying back stock. >> let's head to the bond pits. rick santelli at the cme group in chicago. >> remember we had the may refunding announcement by the treasury. if you want to get some good detail on not only the announcement today, but what it may mean looking forward. patty dunn has a great piece on cnbc.com. they're talking about two-year floaters and this is nothing new, but maybe we're getting closer potentially later this yore for sure by 2014. it would be the maturity and they would maybe ease back on some of the coupon issuance. it didn't affect threes, tens and 30s for next week. we still have $32 billion on 3s. 16 billion on 30 and then you go through two reopenings where they reduce the size to 66 billion. you see the 163 on the intraday. look at yesterday, what was the low before the hedging for apple pushed yields up. it opened up to december and

currently the yield close is from friday of last week at 166. a good chance that we'll modify that just a bit. >> hey, when apple came out everybody was falling over themselves. three to one bid to cover and diversification and it's a good name. no matter how you slice it, though, anything seems to have a price target that's not high enough. just look at all of these charts on etfs or barclays, whether it's hyg and now look at barclays on the spread and look at the investment grade etf, and look at barclays on the investment grade spread. everything is moving up and we're plunging up into a leverage scenario and keep an eye on japan and the jgbs and one of the biggest providers with the accommodation. >> carl quintanilla. it's all yours. >> talk to you soon. >> thanks so much. >> when we come back the wireless wars hitting a whole

new level. the ceo of t-mobile will visit us at post 9. how does he take on rivals like at&t, verizon and sprint? as we go to break, take a look at some of this morning's early movers. >> it's that time of year again. are you trying to get your body back into beach mode? you better stay hydrated and what better way to do so than to drink from the cnbc water bottle signed by the entire "squawk on the street" gang, well it can be yours if you can guess friday's non-farm jobs number. you have to be at least 18 years of age to answer. sorry, kid. for all of the official rules and details go to sort sots.cnb.

you have until friday morning. good luck. [ male announcer ] here at optionsxpress, our clients really seem

to appreciate our powerful, easy-to-use platform. no, thank you. we know you're always looking for the best fill price. and walk limit automatically tries to find it for you. just set your start and end price. and let it do its thing. wow, more fan mail. hey ray, my uncle wanted to say thanks for idea hub. o well tell him i said you're welcome. he loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. yea, and these ideas are across the board -- bullish, bearish and neutral. i think you need a bigger desk, pal. another one? traders love our trading patterns, now with options patterns. what's not to love? they see what others are trading -- like the day's top 10 options trades by volume -- and get ideas! yea i have an idea: how about trading that in for a salad? [ male announcer ] so come trade at the place that's all about options and futures. optionsxpress. open an account today

and get a $150 amazon.com gift card when you call 1-888-330-3137 now. optionsxpress by charles schwab. governor of getting it done. you know how to dance... with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro.

>> t-mobile closing its acquisition of metro pcs. the deal announced back in october. the new company is known as t-mobile u.s. it's trading at the nyse as tnus we are joined by john legere. nice to have you, of course. >> nice to be here. >> you are still number four in a crowded market and many say the wireless businesses is still a duopoly with pcs. how do you effectively compete in such a crowded marketplace. i'm sure you saw a very loud opening here. this is now a $25 billion company with about 6.4 billion of ebitda last year. 2.7 billion in cash flow. so it's a huge company, 70,000 points of distribution of our products. importantly, with the deal with metro pcs is 6 billion to 7 billion and 1.2 to 1.5 billion on the run rate, but the

spectrum was so highly complimentary. let's just take it in new york. we have 30 megahertz of coveted xlt spectrum. we have 20 of continuous spectrum. we have 50 megahertz which will give us the ability to turn two by between the lt and there's a chance that in march we were already in a gross ad basis and the share leader here. >> you said you will add to shares of better service that you'll be able to deliver. >> what you have to do is update. what's happened from t-mobile from the time we announced this deal to a close. the network modernization and the rollout of lte and the quality of the network, along with the trajectory of the post-paid business which is the big question. now you bring in metro. we will keep that brand. metro had 109,000 net ads on the prepaid side. we're going to expand that business. we launched the uncarrier which is listed on the new york exchange for the big carriers

and not acting like them. we're going to grow through the uncarrier business and push metro pcs and together, i think that puts us in a -- >> there's still concern that your largest shareholder, of course, deutsche telekom is a seller. they locked up for 18 months as a result of changes because of activist shareholders in the merger agreement. nonetheless, people think this is a modernization for them. isn't that the case? >> after the at&t-t-mobile transaction didn't take place. last summer when they approached me, this is a doubling down. 4 billion in the network. bring a ceo in to keep this company public. as you saw them, they fought very hard for the metro pcs deal. yeah, they have the option to exit, but right now i think they see this as a pretty exciting opportunity to participate in the business. i think it's a great growth opportunity, but they're a 74% shareholder with an 18-month

lock up. i think they can make money a lot of different ways. >> i get a big data bill every single month and i can't figure out why it's so big and what i should do. >> jim, i don't know if your kids use this or this, but if you do and you're a verizon customer is an average use or a galaxy three which is probably your children uses more data than your entire family plan. the average usage on the galaxy 3 is about three gigs of data. your plan's probably two. the reason why you want to look at t-mobile is we want 100% value plans and we want all unlimb theed and you can understand our plans. they're very sichl. 60, $70, ten for the third and all no contract and because of the equipment installment plan, i can can get you and your children in and out the door much cheaper and then you can change devices whenever you want. so it's a whole new model on the

side of the customer and this unlimited thing didn't play out yet and i'll innovate even more. when i came in and i took this job, i couldn't believe how much customers hate the wireless business. they hate contract. >> spies. >> they hate the subsidization. we're changing all that. competitors may respond, but right now i have news for you. it's working and that's the good news. >> can number four or number three get together? i ask that because despite all of the things you're saying about growth there's still a perception that to really compete you're going to need to combine conceivably with whatever sprint is in the future. >> is it still something that t-mobile and deutschtel will consider? >> my desire is to make number four number three. right now, let's take it either way. if they going to be a requirement for us to stand

alo alone, as you saw in the recent doj indications that they'll try to find spectrum on the low band much more available. if i can get my hands with low band spectrum with the model that i have now, i can really have a field day. on the other han, about 85% of the ebitda is controlled by the top two guys and that prevails over time, my feeling on consolidation and it's not a matter of if, it's when. and i think the good news for us is we can be a great stand alone business and we can also be a very power frl comment -- >> do you think that needs to be allowed at some point down the road. >> the question is who's going to be around? two years ago did you know dish would be playing? >> what do you think he really wants? >> you know, what i want you to do is what you did before with i kuhn and -- i'm in for a table at $1,000 a seat.

>> we are working on this idea. so you -- all right. thank you. because we all want to know. t-mobile dealt with dish a bit and there were conversations and you might have insight. >> i would love to talk to them in the future and who knows how that will lay. dish has an innovative idea about the future and they need someone to partner with. right now what i know is they're playing in consolidation because they need something. what metro and we have now, we don't really need anything, but we're always open, and i think right now we run like crazy, put some runs on the board that i think will stun the marketplace. we have a great currency now. focus on getting these two companies together and then if some of these folks want to talk, glad to talk to them, from a position of strength, and i think that's important. >> thank you. appreciate your time. >> great to talk to you guys. >> the old days with john, global crossing. >> that's right. >> thanks for coming in.

we'll get "six in 60" after a break. ♪ ♪ ♪ [ male announcer ] this is a reason to look twice. this is a stunning work of technology. the 2013 lexus es and the first-ever es hybrid. this is the pursuit of perfection.

and never back down. who believe the american dream doesn't just happen, it's something you have to work for. ♪ we're for those kinds of people. because we're that kind of airline. and we never stop looking for a better way. it's how we've grown into america's largest domestic airline. we are southwest. welcome aboard.

>> time for "six in 60," six stocks, 60 seconds. >> mortgage insurance, bad ones rolling off and new ones coming

on. it's a buy. >> i haven't looked at chesapeake going. >> it was a very clean quarter from what i can tell. people still don't understand chesapeake. >> they don't? >> no. they left a very difficult company to understand. >> regeneron. >> this is a company out of the s&p and they have a lot of the drugs in the pipeline and it has been one of the great performers. >> humana, we've got good earnings. >> they know how to execute. this turned up an execution business and united health didn't make it and this company is best of breed. >> sve. >> this is a company that's on at 11:30 to speak to carl. what a remarkable situation in terms of the cheapest airline. >> and tim horton's. >> activism everywhere, david. he wants to be able to break it up. when is it going to be enough to serve good doughnuts? >> when is it enough? >> when is it enough to get a

good, darn doughnut? >> what do you have coming up on "mad money." you know there's a battle with a very smart -- >> they want to split timkin with commodities and steel and rich, you know, this is a company that's a supermarket to semiconductors. when he says things are good tech goes higher and when he says things aren't good, tech goes lower. >> can i say the t-mobile interview. i learned a ton. very interesting. we'll work on yergin. we'll work on it. we have breaking ism data coming up right after the top of the hour so we'll see you then. i've always had to keep my eye on her... but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out.

with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. the ocean gets warmer. the peruvian anchovy harvest suffers. it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment. it funds a marine biologist... who studies the peruvian anchovy.

invested in the world. bny mellon. welcnew york state, where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit thenewny.com

>> welcome back to "squawk on the street." march construction spending, a big disappointment down 1.7 and we're looking to up 1.6 and last month we did get a little more in the other direction. originally released in february at 1.2 and it is now upgraded to 1.5. april ism 50.7. 50.7. close to expectations arguably, a bit better. remember, chicago yesterday was under 50 for the first time since september of '09.

we've had this number in the ism go under 50 in november and that was the first time since july of '09 and this number is performing better and prices dropped from 50.5 to right on the nose and everybody wondering why that is need look no farther than dropping commodity prices. simon hobbs, back to you. >> good morning to you, rick. that's exactly what a lot of people wanted to hear today. the manufacturing is still expanding in the united states and we're cutting our losses, as you can see. there was concern that the world was slowing down after we got data from china overnight. certainly, rick mentions the commodities and we were down over 3% on oil and over 3% on copper. we are off those lows as you can see, but still, there is a huge concern, carl, about the growth outlook moving forward and not least with the move with the bond markets. >> commodities responding more to the adp than to the ism and we'll see if that changes throughout the day.

let's bring in cnbc senior economics correspondent steve liesman talking about some of those numbers. steve, let's do ism and walk us back to what adp said this morning. >> yeah. i'm just looking at these ism numbers, and i didn't like what i saw in terms of the employment number, the components there. let me give you the details, it is down 52 from 54, and it's weaker than it had been. new orders were higher, 52, versus 51.4. production was up higher. inventories were a big drag here, so that's a kind of a good sign, carl, if the overall number is dragged down by the inventory number and the current stuff and the stuff of actual production and new orders in production are higher or stronger, i think that's okay. the troubling thing is the employment number sub component and that segways me right into the adp number which showed a

manufacturing jobs decline, and the construction game of 15,000 and we had mark zandi on this morning, carl, and he said he was hoping for even stronger construction numbers given what's happening in the housing market and of course, one of the big stories there is what's happening in those businesses that have 50 employees or higher. >> some suggested that the health care rules are limiting employment in businesses that size. we've seen it a couple of months in a row now and it bears watching as to whether or not companies are limiting for that reason, carl. >> all of the regionals that have disappointed the empires, the phillies, the dallases, and how is it they're hanging on to an expansionary number? >> over time these things tend to work together and by the way, ism has been a bit of an outlier throughout this recovery

suggesting growth over time and not working as well as it worked over a long period of time. a lot of economists put money on the ism numbers, but it's not behaved all that well. i would like to say that you could then follow the regionals, but you can't. as you know, carl, the regionals suffer from the fact that they're regional and what's happening in the dallas region may not say what's happening nationally in new york or philadelphia, or in california. >> don't go too far. i want to bring in rbc's chief national economist to talk more about this data. we've been talking about how the macro has not been treating us as well as we'd like in recent weeks. does this number do anything to change that? >> if you look at the guts of the report and i haven't looked at that time in detail, it seems uneven and that's a fair way to describe the backdrop and it's that unevenness that will keep the fed in play for the foreseeable future.

it's con settent with the broad backdrop and it remains uneven. >> does adp and the employment component that steve just mentioned do anything to your model for friday's number? >> no, it shouldn't. it shouldn't do anything to anyone's model and the employment indicator within the manufacturing report actually lags the actual payroll report. so it's sort of a nice, little, if you want to take a little bit of confidence into tomorrow's report, i guess go for it, but at the end of the day any model will would show that the employment index within the ism report doesn't play out from an actual payroll perspective. moreover, you have to keep in mind in the confidence report that deteriorated and for us that's more compelling. >> tom, what has been very compelling is the move that we've had in the bond market through april. he's pushed the yield down to 1.64%. >> this is all about liquid withity, it's coming from japan

and some people want to buy some people, somehow, the whole market is sig noling deflation. >> i don't think tips are placing that in to the extent that some of the chatter would suggest and in fact, what i would say is just keep in mind one thing with regard to these inflation numbers and this is an idea that not a lot of people are talking about. in the coming couple of months you'll see upward pressure headline inflation. i want to make sure this point is clear. it's purely because of base effects and here we are with 1% on headline inflation and this will bump up on 2.5% and what i mean by that specifically is last year around this time guess what was happening? gasoline prices were falling. they fell more then than they are today and that will flatter, if you will, the headline inflation numberses and as a result of that you will see upward pressure on inflation in the next couple of months. >> it's technical, but keep that

in mind. where does this leave the fed? at what point do they start tapering off their purchases and can they indicate -- that's a sign of confidence rather than a tightening. is that where we are or are we talking about longer fed policy? more fed policy? >> let's just bring it back to to today. anybody tapering or adding more in qe, and in that regard it could be status quo. we do expect the tape aring process would begin. we would say it starts around q4 and tapers into the first quarter of next year. keep in mind something. people that come on this show or any other show, the fed will stop asset purchases on x8. they're not being completely truthful with you. the bottom line is the fed wants the backdrop to become less uneven and i think only when

that happens does the fed start the tapering process. >> from our perspective it's probably q-4, but take that with the grain of salt. >> as we go into the fed statement and a khumming we're all on the same page, what are you going to be looking for? >>y think the fed has arrived to the place where they're comfo comfortab comfortable. when i watch how they react to the survey it seems like there's a pretty good conversation going on where the economy weakens a bit and people push ahead their expectations for tapering and ending qe and increasing their amount of quantitative easing. if i were the fed i wouldn't change a thing. they buffed up this section where they have concern about the costs and the market, i think has internalized that. i'm looking for the inscription of the economy and whether or not they are comfortable with the communication that they put together now. i'm afraid this is not a big

news day and three weeks from now, how much discussion about tapering and exit strategy even given what tom was saying about the inflation number now that they're missing on the inflation target and whether or not there are some in there saying they need to do more. i think that won't come out first statement, but that will be in the discussion in three weeks. >> that will be another irwin call and today addressing that topic. thanks, guys. tom, steve, appreciate it. >> we have more breaking news. general motors is out with its april sales feeing uigures. phil lebeau has that. >> we bring in the vp from general motors in detroit. the company reported 11.4%, just a tick below the estimate of 11.5%. kurt, summarize, if you could, what you are seeing from the american consumer right now going into gm showrooms? >> greetings, phil.

we're seeing a couple of things. obviously, housing has continued to prosper. we're seeing that fuel, our pickup business and our pickup's out 23% this month and we are seeing the american consumer return to the marketplace and the crossover's up 14% and many small and compact cars are up 31% and they're feeling better about what's going on. mixed economic signal, but availability of consumer credit is good and fuel prices are relatively stable. i think they feel pretty good and pretty good time to buy a car or a crossover. >> kurt, are small business owners restocking the fleet? you are seeing a 23% increase in sales. ford said 21% increase for the ram series and trucks were up last month. is this an extended return for people buying these pickup trucks for their fleets? >> we think so, phil.

i mean, our small business owners and that portion of the business for us was up 21%. so we're definitely seeing some growth month to month from that space. so it's good -- it's good and healthy for the economy and our industry. >> what about incentives because there have been anecdotal reports around the country of dealers being concerned about the asian auto dealers. those who are representing brands like toyota or nissan starting to increase their incentives because of what's happening with the yen. are you seeing that yet or are we still seeing a cap on incentives? >> you know, it's a very coverage e competitive business. we are seeing the japanese and korean manufacturers certainly getting more aggressive than they historically have been and you know, where we figure we're just going to continue to be competitive where we need to be, but we're certainly not getting

overly aggressive when it comes to incentives. >> kurt mcneil, vp of u.s. sales joining us from the company headquarters in detroit on a day when the increased sales by 11.4% and one last note regarding gm sales. it's always fun to look at this report, with one person bought a chevy aveo. i would like to know who that one person was. >> join how you keep them straight. volkswagen, phil lebeau watching it in chicago. is there a reason for investors to buy into facebook shares ahead of tonight's earnings? we'll find whether the street's hitting the like button when we come back. a market sure to be driven by the fed and we'll tell you how to play all of the headlines when we come back. (announcer) at scottrade, our clients trade and invest

exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login...

to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine.

apple making an historic bond offering in the last 24 hours worth a record $17 billion. apple's bonds have maturities ranging from three years to 30 years which brings us to this morning's squawk on the tweet question. for apple to be around in 30 years it would have to -- blank. tweet us @squawkstreet and we'll air your responses throughout the morning. my contribution for apple to be

around for 30 years it would have to invent a time machine. >> a time machine? >> that it could be in 30 years. >> without that they will not exist in 2043? >> you know what the contribution of our main makeup artist here, the formidable patricia was? can you guess? >> put a woman in kacharge. >> we'll stick with tech and tech investors, they'll be watching facebook as they come out with first quarter earnings. >> we're 18 day away from facebook's one-year anniversary as a public company. >> shares since then, of course, are still down not as much as they were one point, but we're talking about 27% less than what you were being day one. what about facebook ahead of the ernestoin ernestoings? >> they have an outperform rating on the stock and the price target is $35 a share. i assume it will be all about mobile. it always seems to be with

facebook? would i be wrong with that assumption as we head into the quarterly numbers? >> i think mobile is the most important and people will obviously care about revenues hitting consensus or being above and they'll worry about earnings because we'll have to see that expenses are urn control, but you're right. mobile essentially doubled from september to december. it went from 150 million to over 300 million in the last quarter. i think people are looking for mobile to be up and that's in the context of overall revenue being down sequentially. so we're looking for mobile at 330 million, and up about 8% and overall revenue down sequentially about 10% to 1.43 billion. we have to see. we know people are using mobile. we're not sure if facebook is monetizing it better and better each quarter. it feels that way, but i want to feel zuckerberg tell us. >> they rolled out a lot of new productses. >> are we expecting to hear

anything on the call in terms of how those things are actually going? >> my guess is that they're not going to give us any metrics on things like facebook home. those are too new. i think we'll hear the sponsored stories, revenue has, you know, doubled or something. they'll give us some number that says it's working, and i actually think that's kind of true of all their products. it takes one or two quarters before people get used to them. i don't think it will immediately monetize. i think it is just another way to data mine and to see what people are doing on facebook. when you search, you aren putting more data and you're telling them things that you're interested in and you are able to sell that to advertisers and to better target ads and higher rates. so they're not going to have a metric that tells you that revenue from that went up yet, but it's coming. >> michael, you may have a $35 price target, but this is dead money to many people. people say there's a lot more

exciting prop sigs in the space than facebook. what keeps you interested? >>. >> you know, simon, that's a great question and i had this disagreement with my director of research. i covered linkedin that's trading at 140 times this year's earnings. you know, i covered netflix that is trading at over 100 times next year's earnings and then we have facebook that's trading at only 45 times next year's earnings. facebook sounds more interesting to me, a lot more interesting than the other stocks. investors are willing to pay big multiples. facebook delivers it it goeses up. >> so anthony de diclemente was on squawk box and you have to do something from an ecosystem. you can link to apps and buy stuff online and you just have to take it to a whole other place. do you think that's fair comment? >> i think the comment's a great idea. i don't think that investors

expect them to do that any time soon. i think what facebook has to show is that they're focused on revenue and they said that for three quarters in a row and they have to execute. i don't think we should be telling zuckerberg how to run the company. we care about profits so deliver some. if he does it, i think the stock will take care of itself. >> and do you think they'll deliver on cost? so we'll get a margin that's reasonable here? >> that's the big question because they've said the expenses would go up by 50% this year and it's an unfathomable number. what i would like to hear is what are they spending the money on and what's the roi. we're spending another $billion and we'll get $2 billion, that's a great investment and i'm okay with that. >> we'll be listening to the call. >> hold on to the saled, we're taking you inside a 155-acre horse farm complete with several waterfalls and a wine cellar

with over 2,000 bottles. it could be yours for a pretty penny. robert frank will be here with the details on that, plus, it's a very big day for media earnings and we have an exclusive interview with the ceo of iac, greg blatt on what the post calls today a deal of a disappointment. ♪ [ agent smith ] i've found software that intrigues me.

it appears it's an agent of good. ge has wired their medical hardware with innovative software to be in many places at the same time. using data to connect patients to software, to nurses to the right people and machines. ♪ helping hospitals treat people even better, while dramatically reducing waiting time. now a waiting room is just a room. [ telephone ringing ] [ static warbles ] [ beeping ] red or blue? ♪

your own horse farm complete with 154 acres, five miles of horse pads, two lakes, several waterfalls and a 10,000 square foot house? well, you can, for a price, a hefty price and our robert frank has some of the details. hey, robert. >> hey, carl. with the kentucky derby coming up this weekend we decided to look at one of the nicest and most expensive homes for horses. it took a fall and now prices in demand are back in part because of overseas buyers. here's a place that would make

any thoroughbred happy. it's an estate in santa barbara, california, where the horses have ocean views. it has an 8,000 square foot home, spa and home theater and there are these lavish stables with chandeliers and bronze fittings. if your horse is a little more discriminating, here is an estate in fairfield county, connecticut, that spans 154 achers and has a 10,000 square foot house, 8,000 square foot barn crafted in rare butternut wood design by a famous architect. the stables have a picture window looking out over the man made waterfall and the grounds have five miles of horse trails. the price for all that, $42 million. carl and simon, you'd have to win a lot of kentucky derbies to make that money back. >> wow! >> i can understand, robert, why you would leave the horses and waterfalls behind if you were leaving, but why would you leave 2,000 bottles of wine. surely, you would take those with you. >> what's amazing is the prices

for these houses and these equestrian estates really crashed during the recession. these among the most discretionary types of real estate along with vineyards and prafrnes. a lot of foreign buyers and middle east buyers are coming into this market and they like their horses and like their wine. >> it worked for tony soprano. >> for those of us with young daughters, david. a couple of ponies would go a long way. >> how do the horses get up the stairs to get to the bedroom? i'm sorry. >> robert, thanks. >> thank you, guys. >> couldn't resist. >> let's leave it there. >> breaking news on crude oil inventory after today's big slide what would the data do? could it push us above $93 a barrel and it would have to be great data for that. plus, a fed decision and jobs data sure to drive the markets into the weekend and we'll show you how to position for that next on cnbc. ♪

[ male announcer ] the first look is only the beginning. ♪ ♪ this is a stunning work of technology. ♪ this is the 2013 lexus es and the first-ever es hybrid. this is the pursuit of perfection.

>> welcome back. i'm sharon epperson at the nymex with more news putting pressure on oil prices. the latest report from the energy department showing crude supplies in the past week rose by 6.7 million barrels. 6.7 million barrels. now this is much larger than analysts had anticipated and it is greater than the big build we saw from the american petroleum's institute's report last evening. we are also looking at distillate fuel supplies that

were down by 474,000 barrels and i should say that's a rise, rather, in distillate fuel supplies by 474,000 barrels and gasoline supplies fell by 1.8 million barrels, but we are looking at a big build in crude supplies. we are looking at crude production that continues to be extremely robust, particularly in the middle part of the country with north dakota really booming there. the production coming out of there that is more than seven times what we saw 20 years ago. that is something that we're watching very carefully and we're also looking at prices right now for the wt icon tract that seemed to be approaching 9050 and that was the low right when the number came out and that was below the 50-day moving average, so technically, carl, there is another reason for oil prices to continue to be under pressure and that is breaking some of the key technical levels, back to you. >> especially coming after april. >> we have crude down 4% and you

know what gas has done. >> sharon epperson. about an hour into trading and 7:31 on the west coast and 10:31 on wall street. the manufacturing sector, the ism for april coming in at 50.7 and it's down from a march reading of 51.3. humana one of the biggest gainers up 5%. it posted quarterly earnings well above consensus, raising the full-year outlook and shares of cvs caremark hitting all-time highs on better-than-expected results. the pharmacy benefits marriage up 21% so far this year. simon? >> the big question for many people is whether the u.s. economy is beginning to slow down like the rest of the world and to that end you've had a very big rally in treasurys. we're very data driven now at this stage of the week with the fomc reporting this afternoon. the dow is down just 60 points despite the disappointment on the adb figure and would you have expected a bigger fall? >> i would expect a bigger fall, but that's been the problem,

right? >> the macro data has been weak. so this confirming weak macro data shouldn't be surprising anybody, but what i think the market is telling you is they're waiting on the fed today. they're waiting to see what they say. >> the fed will not change, but will they change the tone of what they say. instead of talking about withdraw at the end of the year, our foot is on the gas and they'll keep it there. they're been talking about withdrawing to see how the market perceives it. so now the market will change. >> provided the fed hangs on in there if we get a disappointing employment report on friday which adp may signal. right. that still will not move the market, is that right? >> no, it will force the fed to keep the foot on the gas, and therefore, yes, it will not allow the market it sell off the way it would normally because everyone knows the fed is there. if the fed says yes, we're going to start pulling back ask then we get a weak employment number on friday. >> that would be a silly thing for them to say.

>> therefore, i don't think they'll say it. >> goldman had a note overnight that the cyclicals and technology and telecoms and utilities would have been overbought. do you think that? >> i don't think technology is overbought at all, but i do think that -- >> tech was one they thought you should buy. >> absolutely. >> utility and telecoms they thought you should ease up on. >> we've seen people who want equity exposure move into those names and now as the economy weakens and they're looking for the second half to be better because that's what everyone is talking about they want to move money to groups that are underperforming and in anticipation of the move. it makes perfect sense. >> what if the economy isn't improving? do you still have that rotation? >> if the economy does not improve you will not get the rotation, but all of the strategists are saying, it seems to be a temporary aberration and they're still calling for the second half to be better and so you have to make a bet, right? >> so sell in may and go away? >> it's very interesting.

goldman doesn't want to sell in may and go away. it will be an active summer because there's a lot of macro gaita week that will affect it this surge. >> congratulations. you finally made it on to the big show. >> he's normally seen on "power lunch." nice, simon. kenny is one of our favorites. >> do high-speed traders have an edge on retail investors. high frequency traders are using a loophole in the cme computer system to trade before other investors get the information. eamon javers has that story for us now. hi, eamon. >> "the wall street journal" reporting that at the cme there is a 10 mill i second gap there who have them co-located at the cme and they're being able to get buy and sell orders in the market before everybody else. that's called latency, the time gap between you know something and the rest of the market knows something and there are ways to profit from that.

i talked to the cftc's bart chillton about the frequency of trading and he said one of the things he would like to see is he would like to see the high frequency traders with the cftc so he would know who they are. take a listen. >> the second largest trader by volume at the chicago merc an tile exchange in the past and maybe still today is a high-frequency trader located in prague. if i want to get the books and records because i think something potentially ney fai fairious is going on. >> they said that this latency or this timed speed gap here is a result of technological issues. it's not in place all of the time and in all markets, but they said that they are working on their technology and they would like to get this gap down to zero at some point in the future, but it's not at zero now and that's the issue for traders is is there a built-in advantage

for these hfts if they have a 10 millisecond head start, carl? >> a huge discussion on twitter and a lot of social circles and the question, how much is the own us on chillton himself to, i don't know, put forward some proposals that will fix this? >> yeah. one of the things that he has said and he said on our air this morning is he would like to see a transactions tax, something like 0.6 cents per transaction or .0.6 cents per transaction and one of the things is create friction in the system. it would make a cost to a lot of these high-speed transactions and a lot of them would become noneconomic and you would see the stuff disappear. that's one idea being floated out there. part of the problem is that a lot of people just don't fully understand this world. you kind of go down the rabbit's hole here a little bit into a nether world of milliseconds and

nanoseconds and people don't understand what's happening at that level. i call them quantum economics and things happen in a very different way at that speed. >> schroeder's buy order, so to speak. >> it gets weird down there. >> eamon, thanks a lot. eamon javers on an important story. >> still ahead it's a ceo triple threat. we've got not one, not two, but three exclusives with the ceos of trulia, spirit airlines and iac. how can you play the names lighting up your screen? the inside scoop on that, too. [ male announcer ] here at optionsxpress, our clients really seem

to appreciate our powerful, easy-to-use platform. no, thank you. we know you're always looking for the best fill price. and walk limit automatically tries to find it for you. just set your start and end price. and let it do its thing. wow, more fan mail. hey ray, my uncle wanted to say thanks for idea hub. o well tell him i said you're welcome. he loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. yea, and these ideas are across the board -- bullish, bearish and neutral. i think you need a bigger desk, pal. another one? traders love our trading patterns, now with options patterns. what's not to love? they see what others are trading -- like the day's top 10 options trades by volume -- and get ideas! yea i have an idea: how about trading that in for a salad? [ male announcer ] so come trade at the place that's all about options and futures. optionsxpress. open an account today and get a $150 amazon.com gift card when you call 1-888-280-0154 now. optionsxpress by charles schwab.

when you call 1-888-280-0154 now. ♪ ♪ the new blackberry z10 with blackberry hub and flick typing. built to keep you moving. see it in action at blackberry.com/z10

sunny day in times square and if you own it, the price goes up. wow! new low for the year and, well, just indicative of what we're seeing in this market right now as we await the fed statement

later today and that is the lowest yield we've seen since december of last year, man, was there a time simon not long ago when people thought we would see a two-handle on that thing. >> the sell-off that could have been dangerous, where people for the fourth year running. can i make one observation. it seems to me as a foreigner here that people are reluctant to discuss a slowdown in the american economy. in other countries they're more ready to discuss it and time and again here, you don't see it gaining traction. >> we don't want to discuss that, please. for the stock market to go up. >> stop -- stop him. >> stop the foreigner from talking. >> i know. crazy. >> don't we have a seven-second delay? >> there should be. >> nobody talks about slowdown. let's talk about ise interactive, shall we? it owns match.com, "newsweek," it's trading higher today after it beat earnings expectation and it was reiterating a strong outlook. joining us exclusively, greg

blatt, the ceo of iac and also with us julia boorstin. take it away. >> thanks so much, david. greg, as david mentioned, your earnings beat expectations, but your revenue missed largely because of disappointing search revenue, should investors take this as a negative sign for future growth? >> no, i don't think so. i think we -- the whole notion of missed is sort of an odd thing with us. we missed on revenues slightly. we beat on profits and that's a tradeoff between a series of decisions we made and there was a restructuring there where we, limb nated unprofitable revenue. revenue would grow throughout the year and we feel good about the catalog. >> now your dating business continues to be an area of strength. the match business is huge, but how much potential growth is there in the spaces? >> we think it's actually quite strong. in fact, today we reiterated our outlook that we think subscriber growth will increase

meaningfully both domestically and internationally. i think in the united states you have match that's a well known brand and still growing really well. we have a lot of other brands that are growing domestically. europe, there's still a lot of room and the rest of the world, a ton of room, so i think both in terms of user growth and the terms of ability to drive and increasing revenue per user, domestically and personally, zee a lot of runway ahead of us. >> talk to me a bit about search. on the call you talked about what you expect to be growth at search. i would like to understand what's behind that a bit and the ecosystem of search and you have this tool bar approach. how is that going? what does google think about it? >> i think search is strong. i think we talked last quarter, that there is a way which they take paezing which impacted our growth that quarter which is why

i think this was a down quarter in ters of revenue growth. we said revenue would increase and we have all of the various sectors around the tool business and tool bar is an application's business that i've used to desktop. it will continue to be. we don't see any problems, whether it's ask or about.com that we bought recently have shown's lot of promise and we feel really good about it. >> i don't know, greg, if you're able to tell us how much you will lose on "newsweek" and the daily beast, but your chairman said earlier in the week it was probably a mistake to abort "newsweek" and to have merged that editorial operation. what have we learned from that at a time when other people seem anxious to buy newspapers.

warren buffett, we'll hear about that over the weekend. the cohen brothers buying regional newspapers. what does your experience mean for everybody else that you are unable to leverage it within the digital space that you're really very good at? i don't think he was leveraging in the digital space and that's what we are doing and we feel good about that. i think his comment was on the print part itself. so we did take over "newsweek" and merged it with daily beast and the business part is going great. the losses on the print side did exceed our expectations which is what barry referred to. having sort of closed down the print piece i would say the vast majority of those is in the rear-view mirror. so when we talk about losses going forward, i think they are errors and still anything down and with respect to other people's plan to buy regional

newspapers, yes, they're fundamentally different businesses and, you know, i assume that they've got good, sound thinking behind those strategies. >> greg, i have to ask you about ae aereo. >> diller has defended the legality of it extensively, but les moonves says he's will willing to take his lawsuit to the highest court and willing to do whatever it takes to avoid being impacted by aereo even if it means turning cbs into a cable station. my question is how much is iac willing to invest to defend the business model and to try to make this work? >> well, look, i think things are legal if the court says they're legal. the next stop would be the supreme court and if the supreme court rules on it then it will either be legal or not based on what they decide. right now it is certainly legal. we believe it's legal from the

beginning. we've believed that the courts would find that and we're certainly will willing to continue to invest to the point of getting to that point if that's, in fact, where it goes. that's really not up to us. it's up to the supreme court, obviously and the networks who have been suing us. it's important to remember that the networks make money in two ways and they can access them on cable and that's the way it's also been. over recent years of technology there's been a makeshift from people using their antennas to people using cable and all it does is balance off the technological advantage a bit and it's driving a shift back from cable to antenna. so there's this notion that it's unfair and the other allegations hurled against it is just wrong. the legality will be decided by the courtses, but that aside, i

think these notions of fairness are, i think, misplaced. >> greg, i don't need to tell you how much publicity, free publicity match.com has gotten this week after martha stewart mentioned it on the "today" show. let's take a quick listen. >> i'd like to have breakfast with somebody. i'd like to go to bed with somebody. >> that works. >> sleep with somebody. that's better way to say it. >> i think you would be a popular online dater. >> the tabloids have had a field day with this. >> are you see any response on the metrics from just that mention? >> martha's a normal gal and she likes normal things. so it doesn't surprise me at all and i think it's great. i think look, publicity is always good especially this kind of publicity so we're glad she's doing it, but she's just doing what millions of other americans do, so we think it's great. >> barry says she does tend to

get publicity even when doing the same things as everybody else in america. >> did you finally get married greg or are you still single? >> is that a trick question? i am stillquestion? i am still single. >> all right. >> i was under the understanding there would be no personal questions. >> i apologize, greg. >> i'm sorry. >> that is all right. >> people should no. know. can never be too busy as a man in new york city. >> thank you very much. >> you're very welcome. >> and julie, thank you as well. it was my understanding there would be no math. when we come back, we'll have the santelli exchange on the other side of this break. you know how to mix business... with business. and you...rent from national.

because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro. the act of soaring across an ocean in a three-hundred-ton rocket doesn't raise as much as an eyebrow for these veterans of the sky. however, seeing this little beauty over international waters

is enough to bring a traveler to tears. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving.

welcome back to "squawk on the street." fhfa. federal housing finance agency. it's had an acting director named ed demarco. to some he's a hero.

it's very difficult when no politician has done anything at all to conquer fannie, freddie, at least with regard to housing. we won't talk about college and financing college education. but the issue is pretty simple. we got into a mess trying to promote housing in ways via the government and policy that didn't turn out well. ed demarco tried to fight off what he believed were solutions and quick fixes, the type that gives you jobs and gdp that jump up every once in a while since the credit crisis, but aren't sustainable. the only thing sustainable is the debt or the balance sheet used to create what doesn't last. but anything, a long-time democrat and not that there's anything wrong with that, but he is more attuned to trying to get homeowner ship higher for people on low thresholds. is it a good idea?

zero heads did a big piece on that and got into all the different lobbying and people that have sponsored his various runs in congress. you can go there. that's not my cup of tea. draw your own conclusion. another issue, commodities. everybody is talking about commodities. how good are your memory? at the end of 2010 i can clearly remember the inventory owned by the chi need was expected to come out at the end of 2010 around 1 million times. vetch number that came out was 1.9 million tons. a bit of a difference and more than the u.s. consumes in a year. why is this important? they were stockpiling copper. they were stockpiling lithium and rare metals and then they were using their stockpiles against loans that they were making. long and short of it is, this market needed to deleverage

based on that. commodity prices moving down isn't necessarily the monetary deflation the fed will bring up today, because when you bolster leverage and create this type of dynamic, why would you want to do it all over again? let copper go where it's supposed to go based on world demand and let it all take its own course. back to you, carl quintanilla. >> thanks a lot. we'll see you in the next hour. when we come back, apple is making a historic bond offer. bonds ranging from 3 to 30 years. for apple to be around in 30 years it will have to do what? tweet us. we'll get your responses next. ♪

[ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ge has wired their medical hardware with innovative software to be in many places at the same time. using data to connect patients to software, to nurses to the right people and machines. ♪ helping hospitals treat people even better, while dramatically reducing waiting time. now a waiting room is just a room. [ telephone ringing ] [ static warbles ] [ beeping ] red or blue? ♪ how do traders using technical analysis streamline their process?

at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

"squawk on the street" this morning. apple making the historic bond offer worth $17 million. for apple to be around in 30 years chrks is a long duration, it will have to -- blank. >> channel steve jobs. >> they will need the creative minds of jobs, tesla and d da vinci and steve writes follow

in microsoft's footprints. and drop your stock to $30 a share. >> they do. innovation is the key. it's hard to remake companies. these cycles are shorter and shorter. >> it's how you make fortunes in the new world. >> yes. we'll talk about the ecb later on. see how europe closed. in the meantime, here is what you missed early this morning. welcome back to hour three of "squawk on the street." here's what's happening so far. >> the whole year is off to a great start, we grew fash flow 7.4%, which is one metric i always dial in on and across nbc and cable, both got out very fast. >> waiting for a crisis to come along to force us to do the things all of us know we should do is nuts. we have to get smart within.

we have a knowledge based global economy. >> one suggestion on twitter. make my day. >> it's been very much of a stock picker's market. we know dow components are continuing to disappoint. you can say sell and merck and then buy and merck. >> and i'm coming to the belief that it's about cheap money. sustaining stock prices and the continued buyback of shares by companies able to borrow at extraordinarilw rates. >> i couldn't believe how much customers hate the wireless business. they hate contract buys. they hate subsidization. so we're changing all that. competitors may respond. but right now i have news for you.

it's working. >> a dig disappointment. down 1.7. >> good wednesday morning. first day of may. we are live at the new york stox exchange with a day on markets. the dow selling off on weak economic data this morning. dow is off some 51 points off the lows. but it's a third of the percent from the downside. s&p 500 lost six handles. the nasdaq is down 13. humana spiking after a 91% rise in profit thanks to increasing membership and then yelp falling sharply. company set to announce results tonight. our road map today. the street ready for first quarter numbers for facebook tonight. plenty of global advertising costs, progress on facebook home. we'll show you what to expect and how to play it.

plus, trulia doubling in revenue. he will tell us what it's like being a new aged company. and taxi service halo getting the green light to operate in new york city. the company will join us first post 9 and tell us what else the company has planned for the future. we will start tw the adp number showing companies were a little more hesitant to hire in april. a big day for senior economics reporter steve liesman back at hq. hey, steve. >> hey, carl. the fed making a final decision on policy. they're probably going to confirm the fed's likely decision to continue pumping money into the u.s. economy at a rate of $85 billion a month. here's the data that has wall street perterbed here. that's an estimate of private sector job growth.

now, that was actually a little bit stronger on internals than perhaps the headline indicated. structure spending was the big upset there. down 0.1%. here's some of the e commentary that we're getting out there. the fho saying a jolt of cold hard reality and downward provisions. over at btig, dan greenhouse saying today's ism trend continues the broader "eh" growth and sentiment is where it is. on construction spending, in one line, really, really horrible. that decline led by a decline in government construction spending, and i want to show you something that emerged as a discussion as about the new health care reform bill and jobs. here's the medium business job growth on a month-to-month

basis. this is the 50 plus where the obama care starts to kick in. you can see the yellow line. that 50 plus has been running in general over the course of the year, below or over job growth. back to the overall indicators. and i would say doubtful the fed will increase purposes but those who forecast a summertime end to the fed's easy money program, they may end up being off, carl, by about a year. >> something you have laid the ground work for, steve. facebook tonight as they are ready to report first quarter earnings after the bell. also 18 days away from the anniversary of the ipo which you probably remember it so well. ben shacter is an analyst.

ben, good to see you this morning. >> thanks for having me in. >> you had a neutral when it started trading in may of last year. what do you expect tonight? >>. >> stock was about $22. it's a very difficult number to get to. there's a lot of speculation to get to. $400 million or above on the mobile number. other than that i think people will have a wait and see attitude. >> 400 will be what sequentially? 20%? 18%? even less than that. the real issue is heading into the second half of the year when you get your first year-over-year. and a year ago that number was zero. this quarter it would be 4 # 0 million. so it is doing well. is it doing well enough to

support the stock? >> average revenue per user, some expect 11% year over year. what do you want? >> i think that's about right. the question everybody is focused on is laser like precision around the mobile number. that will drive down the stock. not revenue per user. not the stock. what will it look like when we extrapolate it out? >> they have unleashed a number of products trying to get to the metric that you're mentioning. we all know about the changes to newsfeed. are you getting the sense that any of those are beginning to bear fruit? >> in general a lot of mobile ads are bearing fruit. however, the word of caution is the execution on how they're getting to these numbers. really through facebook exchange

and nonsocial markets. that is discerning for the longer term. >> people worry about long-term engagement, right? people who were users not longing on anymore. not longing on as often. active daily users, is that something we should be watching? is that not relevant right now? >> no, it's always relevant. you can't make money if you don't have users. so people will be focused on it. are people continuing to use this more and more? so far the trends have been strong there. the bears will point to the notion that younger people are moving away. in facebook's defense, they're often moving away to instagram. >> owned by facebook. for those who bought this in the beginning and held on, when do

we get back to 38? does that happen any time in the near future? >> i'm reluctant to say that it can get back any time soon. they are not taking advantage of what the initial promise was. so far, it's been okay. if the stock is trading 20 times. that would be fine. but this is a stock that is trading 50 times. so you need to show a more sustainable competitive advantage here. and thus far, they're not. >> ben, a lot of good insight there as we await the numbers tonight. thanks so much for your time. >> thank you. >> ben shactman joining us. i don't know if you heard cramer this morning calling the company a great housing place. take a listen. >> these are the housing plays. >> the ceo will join us live

after the break. >> we absolutely are. we are going to continue the hottest topic in the blogosphere. ed is out with a new mark from the president. needs to be confirmed by the senate. he is going to go over all the issues we need to pay attention to as to what may be on the table change wise that we may not or should not actually change.

dow is off 51 points. take a look at the s&p 500 pharmaceutical index down slightly. falling 2% from the past week. of course, merck not helping at all. josh lipton has more. >> merck is slipping into the red. reporting disappointing sales from the first quarter. remember, we heard pfizer say the same thing this week. stock is down 2%. still up 12% this year. carl, back to you. >> yeah, interesting sales in north america. keeping our eye on trulia today. shares up over 11%. stocks up nearly 100% so far this year.

the cofounder and ceo joins us for an interview. it's good to have you back. welcome. >> thank you. great to be here. >> it says here we have cracked the code on mobile monetization. i wonder if you have heard of over promising and underdeliverin underdelivering. >> we are growing 100% year over year. we have a product that we sell called trulia mobile apps and that pchling extremely well. we're also able to monetize the audience. >> we had a long discussion about you and zillow.

his view is it's turning into the kinds of companies that actually work. people have to work harder to find good deals and hence they turn to you. how much has the recover made an impact on your business? >> we started the company in 2005 and we had great discipline. great efficiency in the model. now we're seeing the markets starting to come back and we're sli excited about it. home prices are up. over 9 pk year-to-year. sales are certainly flat. and so we feel that we're really at the early stages of a multiyear housing recovery.

>> what are you hearing from the agents themselves? i wonder if they are beginning to see returns on investments. >> the real estate is dramatically transformed. now we have built a platform that enables them to target individual consumers on mobile devices. and the analysis has generated investment for the real estate agents which is incredible boom to the business. so they are increased by a record amount. and the market is just enormous. there is more than a million realtors in the u.s. there's an incredible number of realtor ls. they're starting to migrate their marketing spend. using the tools we have to the

internet. will it make a difference? if by some miracle the construction takes off where people don't have to work so hard to find a house they can afford and that will suit them? >> we think more money in the systems. the better it will be for our business. and the consumers are coming on board. they're looking at all of the options there are. we are insulated from the housing market. on new construction starts the home builders were dormant until

a month o or so go. they're also coming back in a big way. but the number of construction starts is way down from the historical norm. so that is a market that is for sure going to come back and those guys, where they're marketing themselves, they market themselves online and in the audience. every time we talk about you guys or have you on we inevitably get comments for viewers who are not in the name already who say when are the lo losses going to narrow to nothing? >> so we see a very significant duty not only in the top line but also improbability. and we've execute d in theed their consecutive quarter.

this is a massive opportunity. we continue to invest heavily. we have an engineering culture. we continue to invest there to take advantage of the massive opportunity. but as you have seen we have made significant progress in terms of moving up the line. >> it's a fascinating story. it says a lot about the economy. pete flint coming from denver where there appears to be snow behind you. spirit airlines proving the a la carte way of flying up twice as much as the broad index. they will join us to tell us how they have become so successful for the company.

it's that time of year again. are you trying to get your body back to beach mode, you better stay hydrated. and what better way to do so than to drink from the nbc water bottle? # tweet your guest to @squawkstreet. you have to be 18 years of age to enter. sorry, kid. for official rules and details go to stocks.cnbc.com. [ lorenzo ] i'm lorenzo.

i work for 47 different companies. well, technically i work for one. that company, the united states postal service® works for thousands of home businesses. because at usps.com® you can pay, print and have your packages picked up for free. i can even drop off free boxes.

i wear a lot of hats. well, technically i wear one. the u.s. postal service®, no business too small. welcnew york state, where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit thenewny.com

welcome back to "squawk on the street." i'm bertha coombs. boston police have three more people in custody in connection

tw the boston marathon bombing. it's not clear how deep the connection run. the police did issue that statement via a tweet this morning. meantime, carl, in the house they have scheduled a hearing on may 9th on the homeland security issues involved in the bombing. among those invited to testify, massachusetts director herb schwartz. back to you. >> they did tweet that, berth thbertha, as you said and said details would be to follow. we'll have if this has anything to do with reports of female dna on the weapon. >> not much more at this point. they have questioned the surviving spouse of tamerlan tsarnaev, who has been staying with her parents. and they did apparently take some evidence when they talked

with her, but not clear what connection there may be, if any. >> there continues to be a forensic investigation into the quality of the questioning, the investigations always the way back to a trip of russia that we talked about yet. of course the president saying he would look into the fbi's practices. >> right, they did question tsarnaev that watch list has three-quarters of a million people on it at any given time so it is difficult to keep track of the data. >> as the president said, this is hard stuff. let's get to rick santelli in chicago looking at housing reform, monetary policy and big

day for both things hey. rick. >> yeah, it's a big day. big day. first time on the exchange. >> thank you. >> maybe this is politically incorrect, but i couldn't care less. is mel just a reincarnate of politicians of the past like barney frank, whose famous comment i roll the dice with freddie and frannie, are we about to embark on a road we should avoid? >> boy, it sure feels like it. he's supposed to protect taxpayer dollars. senators have been trying to remove him. they said we're going to preserve money and we're not going to open the flood gates and let everybody re-fi. mel watt has been named. the merge market is reacting ha little bit. >> stop there. what is the marge market doing today? >> merge market is off a couple

of ticks because this came out and the probability is still uncertain. >> now he would have to be confirmed by the senate. >> correct. we'll have to wait and see if he can get that. they will take him around washington and introduce him to senators. >> i have no problem with his political affiliations. he has a history with regard to his interpretation of the government's role in housing that mirrors the fore long politicians that have slowly disappeared in the sunset for obvious reasons. >> and barney frank is the guy you mentioned earlier. you improve the neighborhood. >> but it's hard to become into that dynamic. >> right. we were spending a lot of time in washington.

all public policies aimed at expanding homeowner ship. zbr and if you want a recovery you have to hit a real bottom. otherwise we couldn't have this contentious issue. >> right. we spent a lot of money. we're not there yet. >> thanks. carl, back to you. >> thanks so much. a few minutes left in trading overseas. the dow is off 47. back after a break. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ge has wired their medical hardware with innovative software to be in many places at the same time. using data to connect patients to software, to nurses to the right people and machines. ♪

helping hospitals treat people even better, while dramatically reducing waiting time. now a waiting room is just a room. [ telephone ringing ] [ static warbles ] [ beeping ] red or blue? ♪ how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

the european markets are closing now. >> simon making an important point that we're being shielded from data that is not too good. >> only three major markets are trading. it would have been manufacturing data but because of the public holiday it doesn't come through. for the record the data is not too bad for the u.k. for the irish economy, they are trading at now the fastest pace in 19 months. so a year and a half. the big news we're looking forward to is tomorrow tw the european central bank meeting, the with unemployment data, the likelihood is growing that they will cut rates. in the meantime because you have a huge surge on markets in the united states and europe.

i mean, look what we have there in those rates recently. this is a year to date chart as you can see. some would argue the market is doing the work for them. nonetheless they probably will, say the majority of analysts. it will be a symbolic move. it's also made the borrowing costs less in slovenia. yesterday their abandoned an issuing of debt. at the same time they were downgraded by moody's. that may play out as we move forward. 80 countries around europe is internationaler workers day. a remembering the establishment of the eight-hour working day. it's been a chance for the labor movement to campaign. they were trouble on the streets

of istanbul as well. the rest of europe commemorates the day, actually what they're commemorating is the day market affair in chicago in 1886. and that was the beginning of the establishment of the eight-hour working day. you celebrate it. you mark labor day at the end of the summer. so what she saw as a socialist event. >> classic thavper. that's a great tip. and you earned your point. today is a good one. >> that will mask the data release. >> thank you, simon. bob pisani is looking at what else is moving at the big board. hey, bob. >> deflation is the issue here. take a look at the sectors. april manufacturing. march construction spending, all disappointing. the risk on sectors to the

downside, energy, financials and industrials, this is a seesaw throughout the last month. april was more on the downside for the defensive groups hire. commodity stocks taking a big hit. but look at the big commodity names. steel, aluminum stocks, any type of concerns about the issue out there. the fed released comments that will be closely watched. what is working? >> well, the bonds are working. about every bond exchange traded fund is on the up side. it was pods all throughout the morning. the lqd. f corporate bonds. the high yield market is generally to the up side. let's talk about the earnings. despite all the kerns about people lowering their numbers,

we have record earnings on the southbound 500. so you may say, gee, what is going on? merck missed. but most companies are beating estimates. even if they have been lowered a little bit. and that's powering the s&p forward. that's powering the earnings to new highs. don't be confused by one or two companies that are missing. the real issue is tv revenue misses. 4.1% increase in earnings. only 1.8% increase in revenues. so we have half as much revenue increases as earnings but the market needs to be happy with 5% earnings increases. >> as long as there's a yield not too far from the five.

>> hey, well, comments made on the earnings call are helping shares move sharply to the up side. shares are up 15% and an analyst telling me they could see a potential delay in the eye drug launch. this is positive because it would have been a future competitor of ilea. you can see that it's slightly higher. back to you. >> wow, the disparity between those two names is incredible. let's get to commodities. everything from oil to gasoline to gold. >> we are looking at commodities across the board here. what we are seeing is a lot to do from china manufacturing. the weak data from the ism on

manufacturing here was disappointing as well. it was exacerbated in the the oil markets by what we heard. according to records, this is the highest level of crude oil supplies that we have ever seen in the country. more than 395 million barrels. and ma is much greater than what we saw in the last week. that's another reason that we're seeing crude supplies under pressure. the only part bucking the trend is natural gas. it's done the whole month of april and the first month of may as well. natural gas up 8% in the month of april. back to you, carl. >> thank you for that. on that note about fuel, spirit is reporting a strong first quarter. higher operating revenue. what can we expect in the coming months? the president and ceo joins us this morning. ben, it's nice to see you again. >> great to see you, carl. hope you're doing well.

>> want to talk about the quarter that looked stellar in the word of one analyst. i wonder if you are as optimistic about the outlook as other airlines appear to be? >> well, you know, we're certainly happy tw the general trend in fuel prices. we still tend to think cautiously about the fuel environment as we think about the rest of the year and mostly focus our airline on making sure we're smart user fuel and nonfuel costs stay as low as possible. >> all the metrics in the quarter looked very good. one of the big discussions is how well you perform versus peers. and people wonder for how much younger you can outperform the general airline index. >> well, i'm not sure. i don't know what the general index is going to do. we're happy to see the market is

starting to understand the value of the company in terms of a good track record of profitability. and having a high growth rate. in the first quarter we had a 28% return on capital. we had 28% growth rate over the previous year. so those combinations should work really well. we're glad to see the market is starting to recognize that. >> almost half a billion in unrestricted cash. one recent report said they did not get the sense that management has much interest in returning free cash flow to shareholders. what is a high growth company like yourself do with that catch? >> well, we're a high growth company also also high capital company. buying airplanes is expensive. if we're going to keep growing at 20% a year, which is our order book, we need a high cash balance to fund that growth.

while we're still growing at the rapid rate we are, we think it will make the best sense to magt through the growth successful. we think it will provide a better long-return to shareholders than sending the cash back now. >> does capacity begin to flatten out in the back half of the year? >> no. we're going to continue to grow. for the full year we're projecting a growth rate over 21%. so we're in a good growth mode now and through the next couple of years. we're now flying 49 airplanes. it's not like a huge airline in that sense. but that growth rate is great at a base of airlines all making money for investors. >> anybody has flown you knows how it's different. how the fees are different. one analyst wrote customers may

complain about flying safe, but that talk is cheap. i wonder how that affects the model overall. if you have to budget more for solving customer problems, or do you just not think about it? >> well, most of our customers really understand what we do. they understand it. travelers like low fares and options. we give them a low base fare and a lot of options. when you order a meal at a restaurant and they say your drink is going to be extra if you order beer with a male, that's an extra $4. do you think of that as a fee on top of the meal? you think i'm buying something else that has a price to it. that's what most of our customers understand that we do. it's our job to make sure they understand what they're buying. we want customers to know what they get with spirit. a really low fare and a lot of

free smiles. >> good to see you. thanks so much. >> thanks very much. >> ben joining us from spirit airlines. and it's a big day for earnings. look at it. the earnings squad there waiting to break it down. and halo is making a big announcement today. it will be competing for e-hailing cabs in new york city. find out what else the company has in store when we talk to the ceo. with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades

when you open an account. governor of getting it done. you know how to dance... with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro. i honestly loved smoking, and i honestly didn't think i would ever quit. [ male announcer ] along with support, chantix (varenicline) is proven to help people quit smoking. it reduces the urge to smoke. it put me at ease that you could smoke on the first week. [ male announcer ] some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these stop taking chantix and call your doctor right away. tell your doctor about any history of depression

or other mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these stop taking chantix and see your doctor right away as some can be life-threatening. tell your doctor if you have a history of heart or blood vessel problems, or if you develop new or worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. with chantix and with the support system it worked for me. [ male announcer ] ask your doctor if chantix is right for you.

want to get you more on the latest news related to the boston bombings. bertha coombs is live. >> boston is telling there is no immediate threat to public safetity. they have taken three additional suspects into custody. at this point they are not offering details about what charges, if any, they may be charged with or exactly what their connection would be. and a statement they said aside from the aforementioned there's no additional info to release at this time. and in fact they don't have any information available right now relative to when they will hold a press conference. all they are saying is they have three additional suspects in custody. >> let's get to the earnings

squad. twitter's new superstar superstar, @melissalee. >> thanks for the flood. i can use all the help i can get. i'm melissa lee along with herb greenberg and cnbc's josh lipton. 69% beat their targets. 11% met estimates. let's start off with the big earnings. there's some this morning. humana trading higher after the earnings raised the forecast for the year but a warning that earnings growth is uncertain. bank rate shares are soaring but first quarter profit did fall 78% from last year. and lowers beat the company, blaming weak sales on the euro but still raising the full year guidance as u.s. car sales

accelerate. and you're watching this trade lower. the main drag, a double-digit decline in charcoal sales because of the cold weather in march. now this is a first. you think of clorox, whites, sanitizing. they did get a boost from the flu season. it was charcoal. it was a cold month of march. who knew that this would have had the impact. the revenue growth fell off the cliff here. when i look at the company. when i look at energizer, which is another one that was reported today. i often think those two companies ought to get together. and the former ceo is now on the board of energizer. it would be a mini png if they ever did something like that. >> and here's one other nugget. we talked about the yen.

arg argentina and venezuela. they are saying the sales forecast will be lowered. but let's move on here. yesterday we were looking at the hotel sector. >> yeah, so hide takes a hit. what's interesting is the revenues and conference conventions. that was weak. now the company is pinning part of that on easter. what's interesting is that is a variable that differentiating the companies for the rivals. marriott, very much so. >> they are just hitting it out of the park in the company. i just joined twitter, as carl mentioned. you can tweet me now to join the

conversation. we'll be back with more during street signs. meantime, coming up next, hailing a cab is now a reality. e-hailing app is going live in new york city. we are live with all the details right after this. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ from td ameritrade. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money?

if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.

. ♪ coming up at the top of the

hour on "the half," traders reveal plays that will keep working during this typically bad time for stocks. who is the king of big money? who had the best trade over the last year and what the next big bets are likely to be. finally, a facebook faceoff to traders in one heated debate. carl, we'll see you in a bit. >> thanks a lot, scott. after a series of court hearings, taxi riders can now for the first time legally hail a cab with an app. hailo has gotten the approval to operate. it had to be cleared by the city for the e-hail pilot program. joining us for a first on cnbc interview, it's great to see you back. >> carl, it's great to be back here. >> you were here on march 19th, as i recall, discussing plans to brake into new york. what do we know today?

>> we won a lawsuit together with the tlc. we cleared the path for this technology m we we technology. we had a successful beta test. e-hail and e-payment, the ability for your phone to pay. we've transitioned that into the umbrella of the tlc pilot program. basically, it is going to be swiping in the cab just the e-hail part for 60 days and then we'll get the e-payment functionality, the full picture. new yorkers love it and we can't wait to bring it on. >> so if you have the hailo app, you can get a cab? >> yes. >> in 60 days, you'll be able to get it and pay for it? >> absolutely. we have 10,000 drivers using this system in new york city and we are totally excited for the fact that we are able to actually make this technology we talked about last time real and on the streets. >> last time we talked about the

way that this changes business for the drivers themselves, the medallion owners. the revenue increase they see as a result of this program. >> taxi drivers spend 40% of their time empty. i've had taxi drivers tell me, they've been out to brooklyn, they've gotten rides back into the city. they are making $100 extra each shift. this is important. this is helping every driver and it's helping passengers. it's doing exactly what we said it could do. it's magical and it's on the streets thanks to tlc. >> you're in london, boston, toronto. what's up next? >> washington, d.c., madrid, barcelona, tokyo coming online hopefully in the next few months and a big expansion planned after that. >> you guys on the block yet? do you talk about profitability? >> absolutely. our cities are backing profitable one by one. london, dublin. that's not the maim thing.

hadn hailo has much bigger things planned to how to use that smartphone for other services. >> a lot of people suspect the taxi thing is just a way in to a larger market. jay, i'm going to try it this week sg you' week. >> you're invited. i'd love to come back to tell you how it's going. >> great. thank you. you got here via cab? >> it's the only way i travel. >> the co-founder and ceo of hailo. >> thank you very much. breaking news out of boston, as you know. bertha coombs is live. >> that's right. three people in custody in connection with the boston marathon bombing. pete williams reporting that they are students, apparently classmates or dormmates of tsarnaev. officials are concerned about items that were removed from a

dorm room there. but right now there is no indication that these people in custody had any ties to the actual bombing itself, at least that's the indication right now. boston police have said that there is no threat to the public with these three people having been taken into custody and at this hour, carl, they have not indicated when they will have more news or when they will hold a press conference on these new developments. back to you. >> yeah. those are important distinctions to make. the boston police have been experts at communicating with the media. the tweet was very prompt. there were no leaks going into this morning. no idea on timing as to when they might be able to fill in some blanks. >> that's what they are saying. they have been trying to be proactive and certainly in the first week there was speculation

about what was going on. but at this point they aren't really clearing up whatever speculation is happening with not giving an end point as to when they will have more details or an update. >> all right. if more developments become available, we'll come to you. they are on twitter @boston under score police. thanks, bertha. we'll follow this more when "squawk on the street" comes back. it's as simple as this.

at bny mellon, our business is investments. managing them, moving them, making them work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ge has wired their medical hardware with innovative software to be in many places

at the same time. using data to connect patients to software, to nurses to the right people and machines. ♪ helping hospitals treat people even better, while dramatically reducing waiting time. now a waiting room is just a room. [ telephone ringing ] [ static warbles ] [ beeping ] red or blue? ♪

east coast here, let's get back to headquarter, scott wapner with "the halftime". >> welcome. we have four hours to the close. here's where we stand on the close. there's the dow down 55, s&p and nasdaq are in the red as we start the month of may. here's what we're following on "the half," following the money. which investors have made the best bets over the year and what their next best plays might be. >> facebook face-off. the stock on a recent run. can the geains continue? the big debate is just ahead. first, our