that's not the only record that got broken. the blue chip index finishing higher. 17 straight tuesdays is the first time that's ever happened. that's a weird record but one we've been watching closely. the dow is now up 15% this year and that is more than double its gain from last year. meantime, the s&p is up 14% so far for 2013. that also exceeds all of its gains for the last year. tech, energy and materials have been the biggest winners in recent weeks. this is notable because the three sectors have been laggers since mid november and year-to-date. in the last two weeks, tech has outperformed the dow and s&p 500. we've been watching futures this morning and after new records we seem to knock out every day, you do see modest green arrows. these are very modest at this point. the s&p 500 is up by less than half a point. dow futures up by 1.8. we've watched european stocks and some early trading and right now you can see biggest gains are coming in france where the

cac is up. in asia overnight, yesterday the big news was japan and everything that happened there. you can see this morning the green arrows continue. the hang seng up by 0.8 of a% and nikkei gained. it's at 14,285. andrew? >> welcome back, becky. great to have you back. great to see you in omaha. you did an awesome, awesome job on monday. >> under adverse -- >> under adverse conditions given the condition with the bird. the bird. >> that bird hung out until the last four or five minutes because it would have been awful if it happened earlier in the show. >> you knew it was there. >> i did. it splattered all over my notes. it was everywhere. >> you washed your hair, right? >> no. i left it up there. of course i washed my hair. >> it's white. that's what i don't understand a lot of times. >> could you see it on camera? >> i thought it was hard to see. >> it was a white -- >> i knew something was amiss.

when she came back from commercial she was laughing. >> in the commercial break i looked into the rafters and i said there are a lot of birds up there. >> a direct hit. >> they combined the poop with the urine, right. it's all one -- i don't think they go one and two. think they just go. >> i didn't just get pooped on. >> yeah. >> thank you. >> looks good though. i think it adds body when i look at you. >> it's good luck. it's good luck. that's what they say when it rains on your wedding. >> whenever something bad happens. >> good luck. >> we're going to move to the headlines. we'll see you in a second. a few after the bell earnings from last night to discuss this morning. disney reporting better than expected 32 cent percent increase. revenue topping wall street

consens consensus. results helped by higher spending and attendance at u.s. theme parks and box office success with "oz the great and powerful." >> you have a steadily improving economy and that's clearly helped us. we made some really big bets over billion dollars in california adventure at disneyland resort and new fantasyland in florida. two new cruise ships. three new lands. two of them opened in hong kong, disneyland. those are helping a lot. there's been great demand for all of our parks both the new attractions and the new lands that we built but also for the experience that we provide. >> we'll talk to a media analyst in just a few minutes about disney's earnings talking about earnings, let's talk about jcpenney and the soap oprah that continues. a decline in sales. the company blaming ron johns johnson's strategy of eliminating coupons and sales in

favor of every day lower prices. investors brushed off sales news as jcp reporting that cash levels that imply the chain went through less money than many feared. that stock did not fall the way some people expected. >> the other thing they were saying is there's 505 stores under construction right now. that's part of johnson's plan is to do this whole remodel which is great but living through 505 of your stores under construction -- >> this is not going away any time soon. >> i don't know. the new ceo, you walk into this thing and you are dealt these cards and you can't pass them off to anyone else. and finally, earnings and revenue beating the street. maker of cadbury chocolates is raising full year profit guidance due to a benefit from a tax item but revenue growth was below the company's long-term target and ceo said she was

clearly not satisfied and one of the questions i wonder is whether nelson is satisfied. if you remember, nelson is taking a stake and there's been speculation about what he ultimately is up to in both of those investments. >> electronic arts we waited for yesterday getting a boost in extended trading. video game maker forecast full-year earnings and also say that cost cuts are taking hold and higher margin digital sales are picking up and that was a nice gainer. looks like around 1840 when it closed. our charts are not showing the price for you. you can extrapolate from 20 or so which is up around 1.60. shares of web md also jumping after the bell. health information provider had better than expected first quarter results. that is not accurate there. trading up around 29.

web m.d. announced the ceo is leaving less than a year after being appointed to turn around the company and whole foods was another winner in extended trading. >> are they afraid to show it? >> it's working. it's working. we fixed it between second and third stock. beat by three cents. revenue announced two for one stock split. >> in corporate news, black rock is reportedly turning to a small company to vote on the issue of dividing the chairman and ceo role of jpmorgan. "the new york times" says black rock deferred the vote to the firm governance for owners. jamie dimon wants to remain ceo and chief executive of the bank saying this is what i enjoy. this is said to be one of dimon's most direct response. the shareholder meeting will be

may 21st. there will be a recommendation of split of ceo and chairman duties. >> this has been on the front page of so many papers recently. jamie dimon under pressure. i feel like there's context and perspective here missing. i appreciate there's a philosophy in the world now that people want to split these things. jpmorgan even with the -- we were talking about this year. even with $6 billion whale, it's sort of a rounding error in the grand scheme of things. to have everybody running around in circles -- >> you guys love this story. you overplay the 6 billion from day one considering the size of the bank. >> here i am trying to say -- you brought it up again. >> we're talking about it again. >> it's not my fault. >> yes, it is. >> why is it my fault? >> we don't need to bring it

because because it's in the financial times, do we?>> this about. 15,000 on the dow. all of the people that have been wrong. >> he's making a point that he agrees with you. >> we're agreeing. >> we brought it up again. it's like saying i'm not going to mention that all of the peasants -- i won't mention that my rivals have slept with sheep. i'm not going to mention that -- you know -- >> all i'm saying -- >> i'm tired of the jpmorgan story. someone said you guys just love to talk about it. it makes for interesting conversation. >> it makes for interesting conversation -- >> by media types in new york city i think. >> hold on. now you're trying to force me to defend the story. the larger point is you have three big corporate governance companies that have to figure out what to do. you have black rock who has a huge stake having to figure out which way they're going to vote. >> sounds like they are washing their hands. >> there is a story to be told

about this. a story that i'm suggesting is that actually we have to put this in perspective and context. why deciding that somehow jpmorgan some grand failure when ultimately if you look at their earnings, they've done better than just about everybody else out there. that's all i'm saying. >> move on. >> i apologize. >> movies before 1999 or 1998. >> i don't know. >> any way, this is the most elaborate doodle. you know what i'm looking up? i'm looking up the day of when they -- i've been ranting since october. i'm looking up the day of that rant to see -- what was it? do you remember? >> the market that day? >> we had that guy on and he said don't commit any more money. we'll have jeff on for more

details. i'm trying to figure out how many points. it moved between 14,000 and 15,000 really quickly. >> it's probably gone up about 2,500 maybe. it's moved about 1,000 points since then. >> 1,000 points. initially he said why are you picking on me? >> april 11th. i can search that. also, let's talk about two major investment conferences taking place this week. cnbc being there on the ground covering both of them. in las vegas, the market is close to fully valued and if the market goes higher, it becomes speculation and not investing. meantime, there's a huge gap between wall street and main street saying that real economies are weak but there is not yet a bubble in the equity markets from his perspective. he expects a rally in risk assets will continue for the next two years. in new york today, a

conference made famous by david einhorn's call on lehman brothers before the financial crisis. that conference draws the most powerful hedge fund managers but many ideas don't really pan out. an investor who followed every top idea from the 12 speakers last year would have made 19%. >> wasn't that interesting? you saw his piece this morning. >> i didn't read through the entire thing. >> people pay enormous amounts of money because they want advice and it's charity and people want to support the cause. there's a sense that you're trying to be in the room so you can go run out and try to make the investment as quick as possible. >> 19% sounds good but it's less than 22% gain from a passive index fund tracking the u.s. stock market. maybe part of this is that it's hard to be fantastic when the market just basically overall all boats are lifting. hard to outperform in a market like that. >> what i would love to see is what happens to stocks a month

after. i do wonder whether these are quicker pops that come in and out. i don't know if there's long-term investments. >> hedge funds guy that come in, you're outperforming hedge fund but you have a market that's up -- i think it has to do with the reflection of the market itself. the market has been on fire. it's difficult to outperform. by the way, kate kelly is going to cover the event all day. stay tuned to cnbc for complete coverage. >> we went down three or four points. that was just when the article got written. people have been negative since october. we don't have those guys back on. we should have them back on to check in to see if they said i want to go in now because they can't. >> maybe some of them can. >> there are some people that deserve kudos like paulson. tom lee at jpmorgan was right.

they are far and few between. let's check on markets this morning. futures are still green after another nice move to new highs yesterday. oil has been acting better as the move in the markets kind of implies that economic growth must be getting better. when we have analysts on today, we'll ask them. is it the money that improves the economic environment eventually? >> is it a leading or lagging economic indicator? >> money flows downhill. is it justified because it eventually goes into the economy and helps. sooner or later qe might not be -- >> qe helped in a lot of places. it helped with housing. it helped a lot of other things out there. >> a lot of money that will help at some point. ten-year note at this point is probably the yield moving up a little bit almost back to 1.8%. and yesterday we heard people

say if it moves up 200 or 300 basis points, it may be a problem. that would bring it back to 3% or 4% which over time was average. the dollar still didn't hit 100 on the yen and gold was down yesterday. it is up today. a nice rebound. it reminds me of apple under 400. gold under 1,400. time for global markets report. ross westgate is standing by in london. is manchester a big enough city that is where it's based? why is this news over here? we're put it in our headlines. in a cold open. who was this guy. he's a manager of a soccer team? >> yeah. just because mass united is in terms of global sports franchise, joe, it's one of the best known. they are huge, huge asian sales. asian supporters.

and we'll pull up the board for you. they partially floated this company in august of last year. alex ferguson has been the driver of success for this business in the last 20 odd years he's been in charge. in that time what he's achieved is 38 trophies in total. he won two champions leagues and around 13 division 1 league titles as well. hugely influential. the godfather of football managers if you like. the fact he's stepping down is material to the business as well. he's leaving it in a fairly good shape. that's really why everyone is talking about it. and of course they are speculating about who might take over as well. joe? >> that's him? all right. i just wonder how many -- there

were goals scored while he was in charge. there were a few games that weren't 0-0? >> there were a few, yeah. there were a few. >> it's like watching baseball that's boring enough but watching baseball where there are no-hitters pitched just about every game. i don't know. we're trying to catch on over here. we even had the guy with the tattoos on the one married to the singer. >> david beckham. >> you saw that? >> yeah. >> he's gone, isn't he? >> he's out making more money than who knows what. he plays in france. >> he's gone to paris. >> he was going to bring popularity to the sport here. >> they paid him a lot of money to try. >> love me a ham. i do. >> galaxy, wasn't it in. >> i played sector for 12

seasons. >> good for kids. hard to catch on. just makes european people really mad. they are fanatic about it. >> it's really built up here for kids too. >> it is. i know. my kids played it. >> all right. now, so ross, you see that we're leading the world economically and in terms of stock markets. you're willing to follow us, aren't you, and just take our word for it that things are getting better, right? come onboard. >> apparently if you look at equity prices they are, joe. is that what they're telling us? we're up with a session high here right now. fresh record high in germany. 8,225. that's a record high for this stock market following record highs in the states. much better than expected. we had concern about weakness of the german economy. industrial production up 1.2% month to month in march.

the consensus was negative so substantially better. another lift this morning on european equities as you can see. as far as bond markets, it means yields dipping further in italy. 3.8%. they are heading lower as well. it's also boosted the eu euro/dollar. we are following on this liquidity. we're following on coattails as we say. >> pay attention. we'll find out from the next guy some important stuff about whether there's a lot left here and when you would maybe expect a correction. we'll define correction and everything else. another record breaking day on wall street. above 15,000. joining us now to talk more about the milestone is chief investment strategist at raymond james. the first question to ask and you give good reasons, the

question is because a lot of this is liquidity based from the fed, that doesn't necessarily mean it's not justified. that liquidity can eventually cause the economy to do better, cause corporate profits to go higher. i'm not ready to write it off just because it's the fed that it's not justified. is it about half and half? half of liquidity and half that seeps into making things better? >> i think that's well said. i think the real estate recovery, housing recovery is for real. it's not just the fed. the fed brought out the double barreled shotgun and then the new administration over in japan brought out the bazooka and it feels to us like 10 trillion to $20 trillion is going to flee japan and i can't believe not many people are talking about the statement sunday night i believe it was where he said they're going to do the same thing and expand the balance sheet. i think ross is right. the markets are floating up on a

seal of liquidity and improving economy. >> the next question, i guess, jeff, you add money today. if you had a client come in and say i've got a million dollars. the journal is saying people find this hard to resist. someone came in and said i had a million dollars. is it your advice i commit to equities right now, would you say yes? >> i would say you break it into four tranches. >> you would add new money at this point? >> absolutely. >> the next question is, what is the ultimate level you think is possible before we get to 20% pullback? 20%. i'm not talking about a 3, 5, 6, 8. people can talk about those all the time. i don't know whether that should bother you if we have an ultimate objective of 18,000. it shouldn't bother you we pull back 5%. what's the objective if this bull run? >> markets will trade higher to the end of the quarter up to 1,700 on the s&p 500 and then i

think in july and august you are suspect if you will or vulnerable to a double digit decline. i don't think it will be 20% because i think the economy is going to strengthen in the back half of this year. i do think after you get through the end of this quarter, i think you are subject to a double digit decline. >> something that would qualify as a correction that you might want to sit on the sidelines for. you might want to take your profits then by the end of this quarter is what you're saying. >> i don't think you take all of the profits. i think you layer in some downside hedges like we've done the past three years. we've raised cash in the spring and layered in downside hedges to insulate the portfolio if you will against the decline and then put that capital back to work sometime during the summer. i said last week on your show, i don't think the sell in may and go away plays that way this year. the first point of vulnerability is when we get into july and

august. >> did you say $10 billion to $20 billion is fleeing japan. >> 10 billion to 20 billion yen i think will flee japan. >> why has the nikkei jumping to new records? it seems like these boats are getting pushed higher everywhere and it's not money that's necessarily leaving japan to go to other places that's doing it. >> it's a lot of foreign capital that's flowing into japan into the nikkei/dow with new etfs brought about and japan was profoundly cheap six or seven months ago. i mean, it was one of the cheapest markets in the world. it's had a pretty good move since then. >> the other question is if you think we're subject to potentially a double digit decline at the end of the quarter, is that because central banks efforts wean out at at point or because markets have climbed so far? >> i think markets climbed so far and once you get into july and august out of the d.c. beltway crowd, you'll start hearing about continuing resolutions and debt ceilings again and that's going to stir

up fears. >> do you think technology is a place to be now moving away from utilities and dividend stocks? do you think cyclicals are the place to go? >> i think we've been in consumer discretionaries. at the marge yins you take mone out and buy technology and health care. >> you don't signal with anything with mustache or no mustache, right? >> no. >> we've been doing better without the stash. >> my wife made me shave it off three years ago. >> is that when it was done? >> three years ago. three years ago in june. >> she called the bottom. when someone has a mustache even when they shave it, they look like they still have it. you will always have it. all right. you have been leading for three years at raymond james in all of

the polls. there's more to it than just shaving it off. keep it off. thank you. we'll see you later. >> a pleasure. >> as good as a super bowl indicator or skirt indicator. >> i forget what that is. >> no. no. no. roaring '20s, baby. >> that's right. >> think about it. >> things go well -- >> yeah. things go well, bring up the skirts. there's a song, do you like a short skirt and a long jacket? i like girls -- we'll play that song. that's an actual song. we'll play that song. we'll find it and play it. >> i have to think about it. >> looks like you're wearing your boyfriend's jacket at that point. >> that's another good look. >> when we come back, we'll talk about the street's take on

disney results. the stock trading at all-time highs. we'll ask if the company will continue to be a good investment. i got this. [thinking] is it that time? the son picks up the check? [thinking] i'm still working. he's retired.

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good morning, everybody. if you are just waking up following the dow's record

15,000 close yesterday, we've been watching the equity future this morning and so far there aren't major moves. you can see that it's mixed. right around the flat line. dow futures up by less than a point. s&p down by less than a point. we'll see how things start moving as we get closer to the trading day ahead. let's get the national weather forecast from the weather channel's alex wallace. i think i've been following lousy weather all over the country. >> no question about it. new york city really in the thick of it right now. here it is showing up on radar rotating in heavy rain. you've been dealing with it during the early and overnight hours and more to come to your south. that will slide on in. this morning commute not fun at all. we'll be in this for quite a bit of time. heads-up could even see ponding on some of those roadways. here's the forecast for the day. from mid-atlantic and spreading northward into new england that threat of rain will continue into tomorrow as well. we'll see that across upstate new york. all of the way up into maine as well. a bit of a wet next couple of

days in the northeast. middle of the country seeing rain stretching from the upper midwest all of the way back down through the plains. wichita, you've been dealing with a cluster of showers and storms. that will be unsettled area for a good portion of the day. right in the middle of the country. western half of the nation stays nice. warm weather still in place here for us across the pacific northwest and finally getting a chance to warm up in parts of the south, areas that have been on the cool side. 77 in atlanta after an early week. 82 around tallahassee. into tomorrow, just about everyone into the 80s for the afternoon. finally feeling more springlike in a lot of these areas that have been chilling down. back to you. >> okay. thank you for that. we'll talk about disney right now. disney reported better than expected profit after the bell. the mouse house earning 79 cents a share. two cents ahead of estimates. revenue at $10.55 billion also topping expectations and on

"closing bell" it was called a great quarter. >> our parks and resorts had a great quarter that was helped a lot by some of our new investment notably at disneyland and florida and cruise ships and investment in hong kong and we had improvement in our studio and consumer product. a great quarter for the company. >> with the stock at an all-time high, is it a buy joining us on the "squawk" line, we have an entertainment analyst here. the question of the morning -- >> over here. over here. >> do you see where he's looking. over here. >> there's a picture of you -- >> we took a picture of you looking the other direction. >> did we get your name wrong or something? >> is he looking at disney stock? where are you on the stock now? this thing has gone on a nice

ride. >> i'm still a buyer of the stock. we took our price target up to $73. the whole tv network group is a great group right now. you've got a lot of secular strength. they get paid more for content. there's pricing leverage over television advertising. disney layers on top of that a real huge momentum turn right now in their parks and resort segment where they made a lot of investment and brought in new cruise ships and invested in disney california adventure and fantasyland. that was star of the quarter last night. for this group you have a group that's trading at a pe average around 17 times. disney is close to that at 18 times. you have eps growth better than that. the peg for the group is close to 1. peg for s&p 500 is 1.8. you are paying about the same multiple for tv network stocks and for disney as you are for s&p. you are getting much better earnings growth.

i think the idea of multiple expansion for this group continues. >> what did you make -- advertising grade increases at espn helped offset what was a 40% drop in operating income at the broadcast business. that includes abc. does that concern you at all? >> we don't like that type of trend at the broadcast segment. you have to put it in perspective. espn dwarfs the broadcast segment. operating profit in cable networks is a factor of 10 or 20 times. it's not that important. turn at the parks is much bigger. these guys are really killing it in movies right now. "iron man 3" was a big driver. >> is there any other movies over the summer that either you're thrilled about or worried about and then i go back and think about john carter last year which obviously hurt the bottom line ultimately. "iron man 3" looks like a big winner. >> yes. clearly movies are icing on the

cake for these guys. they help drive parks and license merchandise but movie products themselves are volatile. that said, these guys will bring back "star wars" in a couple years. they have more pixar movies coming out. they have a good pipe line. what they have done with marvel to bring that up to the next level with "avengers" and more sequels to come is a boost for this company. >> interactive. they licensed their "star wars" business to ea. was that the right decision and there's been debate about that because they used to do or still do a lot of their own stuff. >> i think it's absolutely right for them to work with best in class company like electronic arts. the best model is the licensing model. you let someone else take the risk of selling games and you just get a license fee for each unit they sell. it's a good choice to disney to focus on things they feel better about.

online social media driven initiatives and let ea do what it does best. that's a good choice for them. >> we all remember disney when it split and they were going to buy gibson greetings and he took up and split ten times and then when he came in, he was under the shadow of him and he's out of it now. >> he's a great executive. >> he overcame -- a lot of people didn't give him the credit that obviously that he's a lot smarter than people thought i think. >> just because you're a nice guy doesn't mean you're not smart. he's both and done great job at disney. >> fno risk to money they paid o "star wars." they'll make that work, huh? >> they'll make that work. if they do in reboot movie of "star wars" what inflation adjusted the last one did will

alone make the acquisition worthwhile. >> we'll get a picture of you looking at us more directly next time. >> my son does that. it's almost like you are looking in your brain. ron barron has a lot of stuff. we'll talk about it next time we talk to him and see how many facebook followers i have? 600 million. versus 20 million. i guess it's a big deal. coming up, another record close for the dow. what's going to propel stocks to the next level or do they start heading lower? we'll talk about earnings, the economy and central banks. as we head to break, look at yesterday's biggest winners and losers. my mantra?

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♪ >> you have heard this? >> i have. i don't recall understand it. i want a girl who gets up early and stays up late. >> why would she wear a short skirt and a long jacket? >> for the pleasant surprise when you come in from outside. you take the jacket off and there's a short shirt.

>> are you thinking flasher? >> i'm not thinking flasher. >> is it cold outside and she needs a long coat? >> you're outside. when she gets inside, wow, she's dressed conservatively. >> it's like the reveal. >> there you go. >> you are turning it into -- >> welcome back to "squawk box." dow closing above 15,000 for the first time in history. joining us right now is the chief economist at wells fargo security and also paul is with us president of heritage capital. i want to start out talking about the economy. john, the big question people have are markets at these levels, does it make sense from where we stand in the economy right now or is this something being fueled from the economy ahead of where they should be. >> look at the private sector economy growing at 2.5% plus and federal government restructures and state and local government

is restructuring. we settled into 3.5 years now of 2 plus years of economic growth. investment spending continues. housing is in a recovery. you talked about that earlier today. >> yet the employment picture is lousy. >> there is a disconnect between the output of the economy and the employment. there is a lot of employment going on in the service sector and high tech for example and we'll talk about stocks later on. you do see that it is the back office white collar worker. the traditional blue collar manufacturing worker that is finding difficulty getting a job. there are jobs being created for those with the skills to really compete. >> are you still committing new money to stocks at this point or do you worry that they have run too far to be putting in new money? we talked to jeff who said he would put in new money at this

point. >> the answer is yes. yes i'm putting in new money and yes i'm very concerned. i think to your previous question, it's a combination also. earnings are not great. they're fine. everything is okay. i think we all know that without the feds massive liquidity, i couldn't venture a guess where they would be but not within thousands of points of 15,000. as we have said for years, enjoy liquidity when it's here. when the feds begins to turn off that spigot, we're in deeper trouble. >> if the fed turns off the spigot, it's because the economy has taken off at that point. wouldn't that be what swooped in and offered support at that point? >> the fed is working on this wealth effect and clearly it's working. it's been working for five years.

if things get more stable, employment has not been good. it's not going to be good. i know that the fed is targeting the mid sixs. if dow sees 15,500 or 16, they will taper off liquidity. the dollar strength frankly has manifested itself. you saw utilities. you saw health care. those things are going to work on a go forward. we saw materials and industrials and transports kicking into high gear starting last friday. i don't think that's the huge set of rotation for next leg higher. >> you don't think that is the next rotation? >> i don't. i think that it's temporary. enjoy it while it's here. as long as this rally lasts, it should be with discretionary and with staples and with health care. still with things that are dollar positive. i think the dollar is in a a

bull market that began when bear stearns had problems in march of '08 and companies that benefit from strong dollar is where you want to be. >> i like your point though. i think what investors have to think about is what are conditions under which the fed changes policy? and my sense is they're going to change policy probably when they see really sustained economic growth and improving labor markets. i don't think the fed will arbitrarily turn it off. >> you don't think they'll get scared off by how the market is running up? >> it's dangerous for the fed to be perceived as targeting asset prices. that will set the bench mark for employment and how the economy is doing. >> that's a tricky thing to step away from the benchmark they have set. >> haven't we heard ben bernanke talk about how powerful the wealth effect is? a lot of times what they say and

what they do don't always meet. the fed has been trying to inflate asset prices. i'm one of the few. i think bernanke is a genius. i'll be the lone on my island for a while. thankfully we had bernanke here in '08 and we didn't have alan greenspan. >> what will happen when you can tell that he's stopping or tapering? what would you tell your clients to do? >> before they actually take the action, i do think they're going to flow a lot of trial balloons and prepare the markets months and months in advance. >> what if it comes clear, the market won't like that at all. >> the market is absolutely not going to like it. >> that's why it will be scary for an exit. >> if you think the fed is going to stop when the economy has real sustainable growth, i would argue that it could be years and years and years until we have this -- since when is 2.5% growth really acceptable and sustainab

sustainable? it's not. several years ago we would have laughed if that was acceptable. i think if we're going to wait for old days, 3.5%, 4% growth, we'll wait until the next decade. >> let's hope not. how long do we have to wait for the jobs picture to catch up with everything else we're seeing in the economy? why is it taking so long? >> we learned to produce with fewer workers and productivity and technology has really taken over. labor force growth in terms of participation rates for both men and women are declining. and i would say in part we're not going to wait for 3.5% 4% growth. you won't get there. sustainable path looks to be 3%. it's downshifting. >> okay. >> different ball game. >> thank you very much for coming in today. paul, it's been great talking to you. >> coming up, "squawk box" disruptor ready to change the way you look at health care. stay tuned for that and a lot more. we're coming right back. [ male announcer ] they say that hard work

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our disrupter series today features a company that hopes to revolutionize health care by connecting doctors and patients across the globe. the founder and ceo of health tap. and you've been here once before. but for those who don't remember, your service allows doctors and patients to talk to each other over the internet for free about their issues and i don't know if people remember this conversation, but we were all a little nervous about what doctors had time to actually do this. my question for you, because i was actually e-mailing with my doctor recently and thinking to myself, at some point, he's going to want to charge me for this conversation because it

actually went on back and forth and back and forth. and usually, when i walk in the door for a p minute and a half, he wants to charge me 600. >> is that thing you picked up in vietnam? >> i had a check-up, annual check-up. >> you went to the doctor. >> that was to get the water out of my ear. that was the ear inspection. >> oh. all right. anyway. >> thank you, joe. thank you, andrew. it's a pleasure to be here again. and yes, we have more than 38,000 physicians that will answer any questions you have in minutes or a few hours and some of the best doctors in this country. and they take time to answer questions on the mobile apps. and they're doing it to build a reputation to serve patients better. they're doing it to want to help you. >> do you see a time where doctors who are doing things more and more virtually. you'll be able to meet with your doctor, not just by e-mail, but perhaps over skype or some kind of video conference. is there money to be made for

you on that end? how do you think about the revenue model? >> absolutely. you can interact over one of your apps. basic service where you can get the initial answer for free, it's short, it's quick, get it very reliablely. but there are premium services to build on top of it. you mentioned video, we can actually have interactive patients over video, immediately from your phone, just click a button, in front of a physicians in seconds. we have 38,000 of them available any given time of the day. we will have served more than 1,000 new people. >> what is the shift going to be? once obama care really comes into effect in terms of the audience for you? >> yeah, so the 30 million, 40 million americans coming into the health care system, right? there's anticipated more than 45,000 primary care shortage in this country. >> right. >> so we are becoming the

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dow 15,000, can the momentum last? >> the same guys that we're talking about saying don't commit any money to this for the past six months. they're all wrong again. >> the magic touch for the magic kingdom. we'll break down disney's latest quarter. plus, today's disrupters made quite a name for himself in the online ad space. the former ceo of double click talks about his next big venture

as the second hour of "squawk box" begins right now. good morning, everybody. welcome back to "squawk box" on cnbc. i'm becky quick along with joe kernan and andrew ross sorkin. we've been watching the futures this morning and they are setting some new records yesterday. actually, the dow closing above 15,000 yesterday for the first time. you can see at this point there are some very modest increases that are showing up on the boards. we'll see where things get ahead of the opening bell. in our headlines this morning, yahoo is reportedly trying to get out of the partnership with microsoft. the "wall street journal" reports that marisa mayer has been trying to end the ten-year deal since she took the job because yahoo's revenue per search is now lower than when it was operating on its own. >> till 2015 no matter what, the deal extends until 2020, but there's an option out in 2015.

but they just renewed, so at least through for another year if not longer. >> all right. also, target is partnering with facebook in an effort to try to lure facebook users to its brick and mortar stores. new software will allow users to earn savings while logging into facebook and use smartphones to redeem those savings in stores. toyota earned $3.2 billion for the latest quarter. that was more than double the year ago profit and above analyst forecast. the auto maker benefitted from cost cuts, higher sales, and weakening japanese yen. as we mentioned, the dow powering ahead of 15,000 for the first time ever for a close. will it be a quick jump to 16,000, what do we do from here? on the phone right now is charles campbell. paul hickey is co-founder of spoke investment. and paul, why don't we start talking about what you would do at this point. would you put new money into the market? >> well, i think right here in the short-term would be a little bit maybe cautious. you take the risk/reward.

we have seasonality eight of the last ten years. first half of may has been down. the market's overbought right now. and what we've seen in the last two days, increased supply coming in the market. last two days, we had 6.5 billion in new offerings equities announced and that's the highest since mid december. in the short-term, maybe 1%, 2% pullback, single digits. long-term, a bull market, it's the fifth strongest and sixth longest of all time. some people aren't willing to call it a bull market yet. it is what it is. we see valuations are only in line with their historical average right now. >> why do you say the market's overbought right now. >> we look at the s&p 500 versus the 50-day moving average and standard deviations. >> how long has it been like that? >> about two days now. since last friday. >> you honestly didn't come on with this -- you didn't have this -- this notion until two

days ago? >> no, well, actually about a month ago, we were on when gold had the big decline and talking about how they're bullish for the stock market. but in the short run, two other instances this year and we've seen 1% to 2% pullback following it. bless you. >> should you be concerned with 1% to 2%? >> no, that's why i'm thinking for the very short-term. >> you're saying don't add money. >> in the very short-term. in the very short-term. >> it might not go down either. >> anyway? >> in the very short-term -- >> in the next two weeks. >> what we're doing with our money right now looking for a shorter term pullback. a month out after the overbought. >> every guy has been saying that for eight months. the day that they're here, they're saying it's the first time they've said it. and a lot of them said it seven months ago and saying the same thing now. and if it had a 10% pullback, it

would be above where it was when they were saying it the first time around. >> i agree. >> everybody covers themselves by saying near term it might be overbought. i'm not saying buy right now and they never get called. that's what kills us. >> we're not selling. >> it's only two days. >> since last friday, the market hit two standard deviations. >> you were buying with both hands for the last seven months? >> we're steadily putting money to work. >> okay. also, charles, why don't we ask you what you think about it? we've had this ongoing debate trying to figure out how much of this is because of what the economy does, how much is reflected in the market because of where the economy stands right now, what's happened because of the fed. what do you think? >> right. a couple things we can say. asset allegation and investing in the equity market at this level may depend on what type of investor we're talking about. for the individual investor, dollar cost averaging has proven over time to be an effective strategy. for the institutional investor, however, many of the institution's mandates require them to be highly invested from

the time they receive their allocations. so they really have no choice but to invest those funds. >> let's talk about individual investors and what you think they should be doing. >> okay. let's start there. the market while it may be technically appear to be in a vulnerable area, i would say that things structurally are different now than they were three or six months ago. for example, the boj with their expansive and impressive quantitative easing that they implemented last month validates and verifies what ben bernanke and his federal reserve had done the last three years. and one of the reasons you see gold com in at $100, the debasement story about the u.s. dollar because of our monetary policy. >> right. >> debunked. and so -- >> what i'm trying to figure out is what this means for the futures for markets. if the fed starts to pull back at some point, is that okay because the economy is there to support this whole thing? >> if they pull back for the

right reasons, i would say so. if inflation remains tame, which it appears to be now. payrolls continue to improve, the 12-year average is about 173. moderate up to the 200 level or 225,000 level. if initial claims at cycle lows. >> i think your getting it at the right point, charles. do you think they will pull back for the right reasons or the wrong? >> i think they'll pull back for the right reasons. and i don't think we'll have an inflation problem where treasuries sell off dramatically. i think we're going to continue to do well. i think economic data will be favorable and constructive. i think a move 5% higher is not out of the question at all and is probably likely before the end of the year. >> before the end of the year. >> and that means 1,700. do you think we can hit 1,700? that's a much more psychologically imposing question than asking do you think we can have a 5% advance from here? >> so you at this point would say, yeah, you're still pretty optimistic about this you would commit new money? >> absolutely. look at the correlation between

the s&p 500 and the initial claim, something favors to look at, the extreme correlation is very impressive. they fall very, very close together. and so with initial clients at cycle lows here, i think the data will continue to be constructive. but i mean you can have an exogenous factor that throws the economy off a little bit. >> thank you for coming in. appreciate it. >> thank you. >> even the point there is even if we do get another 5%, since it's only beginning of may, that's going to feel like sideways almost. >> right. >> compared to the 15 we've already had. >> right. >> five, maybe we do only five, but that would be sort of ending up 20. >> up 20 for the year, that's not a bad thing. >> i know, but you never know. we hit three straight years up 30 back in the '90s. i know you think it can't happen again. i'm not saying it will, but 5% will feel like kissing your cousin as we said.

i switched it to kissing your cousin instead of kissing your sister. the question we've asked a few times a day, boris, is whether the money is being effective that the boj or any central banker in the world is flooding the system with. we get the idea that it just inflates asset prices and it's not justified. but doesn't it do something with the underlying economies, as well, so they might catch up with where asset prices are? >> well, the central banks are definitely trying to push any money they can out into the riskier assets. you know, they clearly are concerned, i think, with the japanese problem with the liquidity trap. and that's why you see central banks continuously flood the market for liquidity. and a lot of it going to asset prices. the hope is that asset price increase, confidence increases, economic activity increases.

but, you know, the flip side of all of this, which i think is fascinating in the fx world right now is that we're having central banks having second thoughts right now about the fact that you have all of this risk on going on. in australia, in new zealand, in the commodity currencies, the central banks are talking down their currencies. those currencies still have some yield. and when central banks are suppressing interest rates, everybody's chasing yield. you have this interesting conundrum where commodity prices have come down like your former guests were saying. but commodity currencies continue to be stubbornly high. and the reason for that, they still have yield. now central banks are going out and saying we're going to lower our yields because we can't have them be so high. so, you know, it is kind of a situation where there are a lot of unintended consequences that are a lot of these policies. >> you have no idea whether these valuations are stretched right now? >> you know, on a historical

basis, they certainly know near a - near on a historical basis. >> but we seem to be based on the underlying economy, we seem to be what is it -- out over your skis? >> out over your skis. >> seem to be out -- but we're not out over our skis if all of this easing eventually makes for 3%, 3.5% growth. >> is the fed going to pull back for the right reason or the wrong reason? >> the central bank hopes, bernanke's basic case is if he can levitate asset prices, it naturally creates more economic -- >> we can pass -- the fed can pass the baton to the real economy some day. >> right, we grow into our -- essentially grow into this rally. but that's an open question right now. i think we did have positive nfps, but the first positive print for a month going forward. we got to see fundamentals. if they do, yeah, if they don't,

we still have a contraction, i think those prices will start coming off. >> you've taken max and henry, have you taken them? >> we actually just -- >> have you done them? >> i've done them before. >> i just did it, these are 1/2 size too big. >> kyle grows out of them every two months. >> that's what i mean, there's no such thing as a half size too big. >> that's true. >> i know for sure -- >> once you're an adult, then you could be -- >> are we an adult or kid? >> we're still a kid if you're growing. >> if you think you're growing. >> that's the question. i think the fed is orchestrating the foot growth. >> at some point they may orchestrate the shrinkage. >> all right. disney profits getting a boost on the improving economy. he's been following disney for -- i'm not going to say he's old. the entertainment giant 2 cents ahead of estimates, revenues also beat. and here's what talked about,

consumer confidence, as well, as bookings heading into summer. >> at the summer, the pacings that we're seeing for the june, july, august period are running relatively high single digits above where they were last year. i think that continues to show a consumer that's feeling a little bit more confident and obviously it's helped a lot by a lot of the new product we've put online. >> portfolio manager and anthony, internet and media analyst. have we now got -- were you following disney during the early mid-'80s. >> i picked it up, joe, in '88, when they started to open the disney stores. >> it was like the greatest stock on the planet for about seven or eight years, i think. >> yeah, and i think we're in the second stage of this. i think it's deja vu. >> he's no longer in the shadow

of eisner, and he was a good pick and not just some operations guy that they brought in. he's got vision too, don't you think? >> oh, yeah, and i think, joe, the thing that's being underestimated is the financial skills here. if you go back to the '70s, the three great stock repurchasers, charles tandy at the company that's now radioshack and cap cities. and disney has been just splendidly managed financially. they paid $4 billion for lucas films. they've bought back in the last six months basically all the shares that they are going to issue in that transaction. so they now own lucas films that are basically an interest cost of around $50 billion a year. and they can recoup that, joe, royalties from action figures and video games to say nothing of making a movie. the movies are all additives. so the lucas deal is going to be phenomenally accretive once they

start producing the films. in addition. if you look at the share repurchases, the history of the company is that they have not really bought shares above ten times pre-tax cash flow. they're doing that now. and i think what you're looking at is a company that has a lot of debt but an extraordinarily low cost of debt. so they're covering their interest around 30 times. they have phenomenal incremental capacity for leverage. bob's going to do that. the operating part of the business is just firing on all cylinde cylinders. people are going to the parks, seeing the movies, it's just -- stock's way undervalued, joe. >> going to universal parks too, it's amazing. orlando must be hot too. anthony, you look at the chart, could've bought disney for 15 at the depths of the crisis at 65. doesn't look a whole lot different than the dow. and you have to ask yourself the same question, i think, 65, commit new money at 65 to disney, you feel good to do

that? >> yeah, i think you make a good analogy to the market because disney is firing on many or most of its cylinders. and, for example, we took our estimates for the full year and for next year up overnight. a lot of this most recent rally has been multiple expansion. and so, you know, you look at what your price target's going to be. for another 20% upside, joe. you need high teens 20 times earnings. historically larry will tell you if you look back at disney's historical multiple, it has traded at a premium to media and to market. to get to multiple in excess of 20 times, you go back to kind of the internet expansion periods of the early 2000s. we have seen it, but we are kind of a couple of deviations above that standard deviation mean right now. >> is there anything ooiger is

doing that you can agree with. i think the cruise business scares the heck out of me. but i saw another ship that carries -- they have -- i saw simon interview them, this incredible ship, 4,900 people. is that a good business for disney? >> i do think that the theme parks business can be a lower return on invested capital business. and the media business certainly lower margin. but i think that for any slowdown in operating momentum that disney has seen either in the parks business or at the studio business, frankly, they've done a good job spending capex dollars or acquisition dollars to try to fix any of those issues. you think about the disney animation unit and you think about the parks with their investments in the cruise ships. you're seeing that flow through the p & l now. well managed, well analyzed deals. >> anything that you would take issue with that iger's doing? >> well, i think the interactive

need works, joe. i think they should have bought the whole cow with electronic arts rather than doing the joint venture. they spent close to $1 billion trying to figure out the interactive business. they've got a big video game coming out trying to mimic sky landers from activision. and they've been trying to build and i think they should buy because this is a business especially given the youth orientation that they need to be in. >> what was that pixar -- how does that pay for pixar? how much was it? >> i think it was about $5 billion. it was a huge amount per film, but if you looked at pixar, joe, they needed the creative content because the cupboard was bare and they needed the characters like woody and -- >> that's not a big price when you start thinking about how they franchise that stuff. >> ea would have to spend -- it'd cost you $7 billion to buy

electronic arts. >> no, there's $1.2 billion of net cash. only cost them about $5.5 billion. >> buy ea. >> that 3% finance cost, ea has about $300 million of cash flow. it would be accretive. >> oh, man, is there no china wall? you're an analyst and a banker. >> well, i'm not a banker, but you know, joe, the companies that are leading the market right now have been companies that have been making acquisitions for cash and using financial leverage. >> i'm going to start that. >> it's quintessential in this. and it's going to continue. >> yeah. >> we have a lawyer/former banker, deal guy about to come on. >> ea. ea. >> ea disney. >> we should get the fee here. >> all right. we'll split it with you, larry. >> okay, joe, that's a deal. >> see you later, anthony, thank

you. >> thank you. coming up next, one of the most successful mergers and acquisitions, turnings on wall street joins us to talk about the deal environment. he's going to join us for the remainder of the show. maybe we can make a deal between ea and disney before 9:00 rolls around. and then a road trip from the garden state. this is sad from those in the garden state to the sunshine state. announcing going to be moving the headquarters to florida. happy, though, for florida today. governor rick scott will be joining us to attract business. "squawk" is coming right back.

welcome back to "squawk" this morning. our guest host for the hour. mergers and acquisitions superstar. you're going to be a superstar today, the deputy chairman. why do i have a hard time? and i should say you had a sort of interlude as a banker. >> i did. >> at jpmorgan. >> that's right. i was in the business there. >> maybe we'll talk about jamie in a little bit. but to the extent that we think about deals as a barometer for confidence. >> right. >> and look at the markets going crazy. >> right. >> and keep reaching all-time highs and keep saying, can it continue? and look at m & a which has historically tracked the market, there's a disconnect this time. >> there is. >> why? and what does it say about

what's really happening and whether the market's right or wrong? >> i think we're getting the market that we've kind of regulated ourselves and gotten ourselves into post crisis. if you look at the overall trend, andrew -- >> you're saying stock market or m&a? >> m&a market. the standard that deals need to meet today to get across and hit the tape where in the old days it used to be if you got 60% or 70%, you would do the deal. today it's 80%. look at the scrutiny these deals are going through. everybody's afraid of an autonomy. >> hp, which turned out to be a disaster. >> a ceo is not going to lose his job in today's world for not doing a deal. but he can lose his job for doing the wrong deal. >> so is m&a no longer a good

barometer for where the markets go for the confidence that we think?k? usually, if there's confidence in the board room, there should be confidence in the markets. >> it used to help you lead your way into the recovery and cycle so you went back to say '04, '05, m&a helped drive us in that recovery. in this case, m&a's going to lag a little bit. and i think that's kind of the market that we've put ourselves in in terms of the way deals are second guessed. what's interesting is shareholders want deals. we're in a market where shareholders are driving what you heard on the last segment, they like the accretive deals and they're bidding up deals. they're bidding the buy side stock up to historic levels. >> what about all the cash? you would say, look at all the cash, there should be all these

deals. what's going to happen to this cash? >> cash will be used to do buybacks, dividends, largely or in terms of deals, it'll be used to some extent, but it's not being used to drive acquisitions in the statement proportion as it would have been in the last market. >> where were you going to go with that, joe? you were about to say something, i can tell. >> no, i'm a big admirer of this person. eastern kentucky, which is almost appalachian. >> it is appalachian. when you make it, you come up and watch a reds game. >> i've been to many reds games. >> you have left that behind and you're in the upper echelons of the elite of the world from eastern kentucky. >> you think this is elite, it's not elite down in kentucky? >> it is elite, people don't know that. it is elite down in kentucky. and related to the phenomenal

chuck -- >> it is. >> one of the biggest conservative tweeters in -- i read his -- i follow. >> i should have known you were going to make that point. i should have known that. made that connection. >> well, i'm hoping you've got some of the blood coursing through your veins. >> little bit. >> fantastic. >> you're handsome and engaging according to this piece i'm reading on you. and young. >> young. >> a lot of gray hair. you worry about these deals you do. >> you've got to worry about it. >> james will be with us for the rest of the hour. we'll talk about headlines when we return. [ male announcer ] at optionsxpress, our clients really appreciate our powerful,

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♪ nespresso. what else? welcome back to "squawk" this morning. let's take a look at stocks in the news. electronic arts reported fiscal fourth quarter profit of 55 cents per share. that's excludeing certain items, that's 2 cents below street estimates. current quarter revenues are also forecast below analyst consensus. ea expects improved fortunes later this year. also, whole foods earned 76 cents per share for the second quarter. that was 3 cents above estimates. same store sales for the quarter, they were up 6.9%.

and already up 9.4% this quarter. and antivirus software maker semantic reported fiscal fourth quarter profit up 44 cents per share, 6 cents above estimates. but its quarter forecast also well below analyst estimates. the quarter is being impacted by the weaker japanese yen. coming up next, governor rick scott on doing business in florida. and later, playing the fed. we have three stocks for qe-driven market. plus, more on dow 15,000 and where this market is headed. all that when "squawk" returns. ♪

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it is? welcome back. hertz is on the move, the car rental giant announcing it'll move its headquarters out of the garden state to the sunshine state. rick scott joins us now with more on this corporate migration. good morning, governor, it's good to see you. >> good morning, joe, it's a beautiful day in florida. >> yeah, yeah, yeah. port christie. we're doing our best and here you are poaching more of our jobs and companies again, governor. you know, you're lucky you've got beautiful weather, but you're also doing some stuff with tax advantage stuff for

hertz too, right? >> well, absolutely. but you know, look, i believe american business can fulfill all the jobs. we need more jobs in our state, so we're recruiting companies by lowering taxes, less regulation. but what a great day for florida to have a great company like hertz come down to lee county, ft. myers area, i'm excited, a great ceo and a great company. >> and we know mark. i guess we shouldn't have sour grapes up here. it's not a zero sum game. and we're certainly, new jersey, we're certainly capable of doing things in a more business friendly way. i guess whatever happens to us, maybe we deserve. but you've got a lot of nerve comes on our station based up here gloating about this today, don't you, governor? >> aren't you going to move your program down here? everybody's moving to florida. 230,000 people last year came down, moved down. you saw disney's earnings, our

tourism is up. but hertz is a great company, i'm real excited about mark coming down. i hope everybody rents more hertz cars so we can add more jobs in florida. because what i believe in is american business building businesses in florida and adding more jobs. >> well, explain to me. i just saw a number that said 85 million is what florida is induced hertz to come down. what's the number, and how is it that -- will you make it back with 500 jobs? >> absolutely. it's about total between the state and local, it's about $19 million. >> 19 million -- >> every project like this, we've got to get a return on investment, it's no different than return for shareholders. i've got to get a return for the taxpayers. but, look, this is going to help our state grow and it's going to be a great place for hertz to be very successful. >> how quickly -- when you say you need to get a return, how quickly do you get that return? >> what we do in all of the projects i've done, over 300

projects since i've been governor, got to get five times return over the next five years. if we give $100,000, the state taxpayers give back $500,000 over the next five years. but, you know, it's great to get companies like hertz down and i want to get more companies down here. and you should do your show down here. >> and we'd like to come down and do it. i'm not sure what happened there. you're opposed to it. i guess if you're the governor of florida, you can make the case that you want to help people get good health care and as a governor you need to do that. but then -- where does it stand right now? your legislature didn't go along with that, right? is it going to happen? are you giving up? are you going to still push for that? the conservatives think you, you know, sort of turn your back on them when you push for it. >> well, as you know, i completely oppose the president's law. i organized a group before i was governor opposing it, but it's the law of the land.

we don't have any choice. while the federal government's going to pay these taxes, which are our taxes and we don't have a choice about these taxes, i can't deny floridians access to care. >> other governors -- they do have a choice. other governors have said no. and they point out that when you sleep with the devil, eventually, you're only guaranteed for three or sooner or later if the cost rise, the state's going to have to handle some of the costs, right? >> sure. you know the right thing to do is just to give us a block grant from the federal government, let us run our own program, it would be the right way of taking care of our citizens. we know we can do a better job than the federal government can do. but that's not the choice they gave us right now. but what i'm focused on is jobs, jobs, jobs. get everybody a job in our state. we're below the national average in unemployment. over 300,000 jobs in two years and we're not going to stop here. >> no income tax. >> would you like to tax internet company? >> what i want to see whatever

tax i can eliminate, i want to focus on it. we've cut property taxes, business taxes. 80% of our businesses -- >> are you against the sales tax on internet purchases? >> you know what i've said is, look, i think we've got to be fair to everybody, but i don't want to do anything that takes another dollar out of a florida citizen's pocket. >> it's not a new tax -- >> anything we do, i want to reduce taxes, not raise taxes. >> it's not a new tax and it does create an unlevel playing field for the brick and mortar businesses that are there. which side would you come down on? >> what i've said all along, i think it has to be fair. you shouldn't have a different tax depending on where you buy. but what i'm concerned about, i don't want to raise any taxes, i don't want any more money out of families' pockets. >> you're either for it or against it. which are you? >> i am for -- i want a fair tax, but reduce other taxes to make sure no money comes out of a florida family's pocket more than what they're paying today.

>> i'm still not there. i apologize. you're for the tax, but you want to change other taxes. >> that's andrew. that's andrew. you need a monitor down there. our voices are totally different. anyway, go ahead, andrew. >> okay. so here's what i'm saying. if we're going to have this tax, which i believe there ought to be a fair tax, we've got to reduce other taxes so florida families don't pay more in taxes. the average florida family has one of the lowest taxes out of their pocket in the country, i want to keep it that way. >> okay. i think we understand it a little better and thank you for explaining. >> all right. rubbing it in our face today. do you want us to come down there? >> absolutely. you need to move your show down here. everybody's moving to florida. it's a great state. >> orlando's right there. go to universal. >> go to disney world, universal studios -- >> we prefer universal. >> we're universal fans. >> we could stop at disney on our way to universal. appreciate it. thank you. >> when we come back, one of the

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welcome back to "squawk," our guest host for the hour has been part of high profile m&a deals. and the conference is happening today. all these big investors, david einhorn, everybody's out there. what's your sense -- as being the lawyer on the other end of this. so many of these guys are activists, coming after your companies. >> right. >> are you happy about this? are you unhappy about this? do you think these guys are a good thing for the market? bad thing for the market? >> well, i think in general letting shareholders have a say is a good thing for the market. i think activism as a strategy there's a lot of money flowing into it. you have to ask yourself why do we need this catalyst? in other words, look at the bmc deal that happened, andrew. that started with act activism. what we need from a public company standpoint to get a

little bit more on our front foot and have the companies lead the deals and not doing it at the end of a gun with an activist would be a better way to do it. but look, the strategy is effective, institutional shareholders are more favorable to activism than they have been. and i think what we have to don the public company side is get more engaged with the shareholder base. >> are the investors right, though? >> pardon? >> are the investors right? i look at the jc penney thing. there are times when you look at things where investors come in and they say we need to make it this way and then they're just wrong. >> the shareholders can't manage the company from the shareholder base. the board and management team need to do that. you need to hear what they have to say. but i don't think if they say oh, go do this deal or separate these assets or whatnot, i don't know that's always that the board just needs to follow that. there needs to be a conversation. it needs to be with the institutions.

the activists are taking advantage of the opportunity. >> okay. james woolery will stay at the table. in our next disrupter segment, he once ran a juggernaut double click. now he's back some of the most promising start-ups, and word he might launch a couple more this year. here now founder and chairman of guilt among other companies. other companies, business insider, one of our favorites. >> absolutely. yes. >> and then -- >> tengen, a data base company. >> which may be your biggest. >> it could be. it's very, very valuable. an open source data base used by 25,000 companies. >> how much did you sell double click for? >> ultimately about $3 billion. >> and it could be for more. >> it could be. >> you need to make friends with him immediately. >> oracle's worth $150 billion.

a company worth about $11 million, data base market's a big market. >> how do you value gilt right now? >> about $1 billion, we haven't done a financing since then. the next couple of years might be if we go public. >> e-commerce, we were talking to the governor in florida about the internet sales tax. i assume you have a position on this. >> well, look, here's the challenge on that. i think at this point, e-commerce can do just fine with internet sales tax. it's done well today, the sector's done great. it's helped a little bit. i don't hear from our customers every day saying, look, i buy online, they do it because it's more convenient, there's a supply, they value their time. i don't think it'll have an enormous impact. >> i mentioned bill ackman, talking about jc penney, and we talk about best buy being a library, if you will, that then spurs people to go and buy stuff on amazon. >> right. >> is it different in the clothing business. do people go to jc penney or macy's, check out clothes and go

to gilt group? >> not at gilt as much because we probably won't have that item that day. we have special opportunities that are really discounted. but might not be there two days from now. i don't think it happens so much on gilt, other places. i know people who shop online and then choose it in a store and many people who go to a store and buy it online. >> you think it's going to be a blend? >> yeah, absolutely. and all of our clients, all of our vendors, you know, look at it that way. it's both a marketing brochure as well as sales channel. >> what do you think about the online sales tax and whether it should be applied to online retailers as well? >> so we have not taken a position on this. i don't think it'll have a big impact if it is. there's a good chance it doesn't get through the house. there's certain districts, don't forget, that benefit dramatically. if you're in nevada, population centers that have low population, it's a good place for e-commerce companies to have a base of operations because it's an area where you won't

lose a lot of revenue because there aren't many customers buying from your site. nevada benefits, kentucky benefits. >> advertising question for you. one of the stories earlier this morning is a report that yahoo wants to get out of its deal with microsoft and into a deal with google. see it's unlikely that is going to happen any time soon. but as somebody who created effectively the online ad business, when you look at google and microsoft, is there even a competition at the moment? >> no, no. google invests, i don't know, ten times more every single year on search. and so search gets better and better. and it's hard. no one has figured out a way to disrupt google on search. in many of the areas, and everyone thinks about it. >> i keep hearing that bing is supposed to be as good as google in terms of the actual results. is that true? >> it's pretty good. but it's hard to beat google and google has a brand too. it becomes a verb now. it's hard to overcome that. >> would yahoo fortunes have

been different if it was not using microsoft? is this a problem of google's so strong? >> it's money. they make more money if they would be working with google. and they've, you know, yahoo is many things to do, but competing with google is not one of them. >> why do you say they can't get out of the deal? >> talking to the lawyer. >> talking to the lawyer. my understanding is the deal goes to 2020. there's a window of 2015. renegotiated through 2014, i assume it doesn't come up, unless you're involved and you want to tell us. >> no, i'm saying the contract is a basis for negotiation. just because there's an agreement. >> doesn't mean you can't change. >> the fact they've gone out and said that, i think it sort of lays the ground work for a negotiation. you're right, that doesn't mean they couldn't. >> the broader issue, is they're so dominant in ecommerce, that could -- >> do you worry? >> yeah, i do. i think if i were macy's or best buy or anyone or walmart, i

would be very worried. amazon grows by $20 billion a year. that's adding an entire macy's every single year. >> do you own stock in any of these companies? i know you do a lot of private investments. would you own stock in these companies? as an investor. either a google or amazon. >> yes, i would. i think there's a ten-year trend and they'll continue to do well. and even though they're large, they continue to execute very, very well. that's what's powerful. >> thank you for coming in. come on in again this was fun. thank you. when we come back, the bernanke bull run. three stocks that can make you money in a qe-driven market. we'll have the names after the break. and at the top of the hour, a financial journalist round table on dow 15,000. "squawk" will be right back. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused.

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welcome back, everybody. the federal reserve's money printing policy has sent stocks soaring. how should investors be picking stocks in a world of quantitative easing. john blank is chief equity strategist. and john, you have three names of stocks you think will perform very well in this environment. the first is omega health. >> correct. omega health care investors, becky. the ticker is ohi. and what i'm looking for when i'm looking for a qe driven stock is a couple of things. first of all, i want to be well above the 2% ten-year treasury rate that's out there or could

be out there. i'm looking at a 3% dividend or greater, which omega has about a 5.4% dividend right now, which is perfect. then the second thing i'd like to see is some type of agreement between the stock's basic earnings profile and a growth space in the economy that i believe in enough that continues. which is in this case, skilled nursing facilities, which is a great growth area for them and they could keep that dividend growing and keep things going. >> sure. >> the final thing, becky, is a valuation in this market that's not out of line. >> okay. so omega fits that profile, how does brookfield fit it? i know they've been making new moves, i think in los angeles. >> brookfield infrastructure partners is another one of a large cap reit that makes a lot of sense for a qe-driven world because they also have a high dividend, 4% or so, 4.5%. what they focus on is a little different, though, for growth drivers, they're actually a global growth driving reit

because they own railroads in australia, a coal mine, they own a lot of power transmission places like in chile and brazil, toll roads. they're focusing on a global growth story. they're among my three picks. the one with the lowest valuation as a result of that and may well be a longer term play if you think the global economy is the place the be. >> and ticker cor, this is the small cap of my three picks but also a reit. the reason i like them, it's an i.t.-driven stock, basically back office cloud services, internet type thing where you buy outsourcing share in one of their rooms. and they've gone bicoastal, about 14 facilities, they offer a 3% dividend and the most pricey of the three. they've got about a 21 price earnings ratio on a forward look. but they have the growth of a small cap to deliver on that. and that's the third option that you have here. get the growth, get the strong dividend and hopefully get a

position that the federal reserve's got your back. >> john, thank you very much. great talk to you. >> thanks, becky. >> thank you for being with us for the hour. you've got to come back and we'll do it again. we're going to get reaction to disney earnings and what's ahead for the media conglomerate, journalist and media pro jim stewart will join us and find out if the dow is ready to fly to 16,000. we've got that and a lot more when we return. [ penélope ] i found the best cafe in the world.

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this hour on "squawk box," we're going to tackle the day's biggest headlines with our reporter round table. >> got the biggest story in years and i want you to tear out the whole front page. and never mind the european war -- >> journalists from "fortune," the "new york times" and business insider are here to talk about the stories that matter for your money. >> disney's big earnings beat, jamie dimon's future, the proposed internet sales tax. >> the dow closing above 16,000 for the first time, and the manager of a major sports team stepping down after more than 25 years on the job. those stories and more as the third hour of "squawk box"

begins right now. ♪ welcome back to "squawk box" here on cnbc, first in business worldwide. good morning, again, everybody. i'm becky quick along with andrew ross sorkin. we've been watching what's been happening, mcdonald's is out with its numbers, sales numbers, just taking a look at -- looks like mcdonald's sales were down by 0.6%. the expectation was 0.7%, right about in line with it. remember, the company actually guided that april global comps would be negative back in april. i'm just looking through trying to figure out which of the arenas on this. looks like the u.s. was up by

0.7% and better than had been expected. we were looking for a decline of 0.2% there. in europe, looks like we were down by 2.4%, that was weaker than the 1.5% than expected when it comes to asia-pacific, middle east and africa. and that was not as bad as expected. the decline was expected decline 4.1. looks like europe was a problem there. maybe not a surprise when you consider the things happening there. but if you look at the comments from don thompson, the ceo, he says they're trying to do things in the second quarter against a backdrop of persistently challenging macro environments. he's talking about some of the broad things that have happened there. mcdonald's up at this point by about 22 cents, to $102.29. >> they've got a burrito out. >> i haven't tried the burrito. >> but they got one out. >> still on the egg and cheese. >> i do know people who rush to try and get there before 10:30.

>> and you can't get fries before 10:30, i know that. >> but you can get a hash brown. >> you can get a hash brown. >> we know a little too much about mcdonald's menu. >> yeah. >> joining us now to talk about some of the big headlines of the morning like disney's results in the bull market. head of global programming , an executive editor of "fortune 500." is this the biggest year for you guys? >> and becky quick's editor, as well. >> also jim stewart who is columnist at the "new york times." welcome, everybody, and hey, how about we start talking about the markets and where things stand. jim, i know you've been watching this for a long time. but when the dow gets to 15,000 and people start worrying, are you in the camp that worries this is not a time to put new money in? or the camp that says, hey, this is that new bull market and it's time to get in no matter what.

>> i mean, this is basically a four-year run without any 20% correction, that's pretty extraordinary. i think it's a time for prudent rebalancing. although, i am optimistic i think long-term the market looks very good. i think we're hitting this new high in part because europe is looking a little better. i mean, look at the head winds we've had. terrible situation in europe. relatively slow, comparative growth in asia. those things start to improve a little bit. you could see some really dynamic improvements to earnings in the u.s. market which could drive the market higher. but there will be a correction at some point and personally that to me would be the time to jump in. >> 20% would be a bear market, though, 10% would be the correction. i think we've had corrections in the past four years. >> we had, i think, summer of 2011 was the last correction. even that, that's pretty long ago. and it wasn't all that huge. >> but we had 12 years of

underperformance too. >> that's true. we're coming off extraordinary times. i was thinking of all of these bearish people, you know, two years ago, three years ago, wringing their hands. that was the time to be loading up. i'm not saying -- look, i'm still optimistic, still think we're going higher, but we know nothing only goes up and there'll be a correction at some point. >> the business insider's list of idiots. isn't that business insider? >> they're all there. >> we don't really like to call anyone an actual idiot. >> they were total -- >> it is true. >> made a lot of very smart people look -- >> anyone interested at home, i'm going to get the website again. >> has made a lot of people look like idiots. >> it has. but business insiders has 35 of them that you can go one by one and it'll recognize every one of them from this show. >> it's called the rally. >> please go one by one. >> this is not the first time he's talking about it. >> before they come on. and our next guest is number 17,

nuriel, what's going on. >> one of the big headlines that came from this past weekend at the berkshire hathaway meeting. this is not the place rebalancing. >> in the green room. i spoke to a bond fund manager yesterday. he's not worried right now. he thinks short duration bonds. until you see three or four months of economic numbers, consistently solid economic numbers without the up and down. but the bond market is not as scary as the equity market. there's a potential there in short-term durations. >> but if things turn. >> talk about a rally that's made people look like fools. >> you've had for ten years you can go back and find quotes. do a search on google for rates have nowhere to go but up. and you'll find hits going back to 2003 the whole time. >> what's different, though, this time, i'm surprised at the people telling it. it's not just warren buffett who said this. we had lee cooperman who said if

you're in the bond market. you're bending over to pick up a dime in front of a steam roller. when that market turns. how do you get out and get out before everybody else and get out without being crushed? >> yeah, i do think it's certainly a risk and that's why there's this whole obsession of when is the fed going to ease off the gas pedal and so forth. but i think the real story is like old experienced investor being freaked out about bonds is a really long story and they've been very surprised by it. it's been incredible the extent of the bond market rally has made everyone feel like fools the whole time. >> and the traditional relationship between bonds and stocks has been thrown off this time around too. where you see stocks on a huge rally and the ten-year. those numbers came in better than expected. iger was on talking about some of the things they've done. the massive amount of money they've put into theme parks and

how they've gone along with some of those things. what does this say about the broader economy versus disney. you've got the fortune 500 out. >> we watch disney closely, and i think that the story of disney is the story of just flawless execution under iger. they've done a tremendous job. one of our writers talking about sort of the casualness, making it look so easy. there's a sort of jobsian quality to the way that apple -- i'm sorry that disney manages -- freudian slip. such a broad swath of customers consistently and not that many other companies that can do that. and i think that's being reflected in the performance and the results that we just saw. >> jim, you wrote the book on this. and i think back to the eisner days, how do you compare the two? >> well, it's night and day in the sense that look at the sort of the calm about this. i mean, making it look easy.

that is the iger hallmark. there's none of this drama. the sort of psych drama. i will say this, there looking back, who would've guessed, because of espn, which eisner was paying no attention to whatsoever. the tail wagging the dog, the espn story is just amazing. >> we're not giving eisner credit, we're going to say it was an accident? >> well, it was a brilliant move for all the wrong reasons. look at what's happened to the abc network which was sort of a glaring weak spot in the earnings. do you think there's any danger here? where is the intellectual property being created here. they're doing brilliantly with the assets they've got. but where are the new original material. they're basically having to buy, if they're buying marvel, buying star wars, not a lot of original stuff coming out of there. and that's fine with wall street. they're executing beautifully. they've got a coherent theory

for the studio operations. but i do think that's -- given its history as a creative company that's a little bit worrisome. >> do you remember, it's almost like absolute power corrupts absolutely. he got out of some of those ridiculous deals they were going to do. but then it sort of culminated with hiring michael ovitz for $200 million or something like that, do you remember that? >> of course i remember it. >> oh, yeah, that's right. >> but that's where you realize maybe the emperor's scantily clad. >> well, one of my colleagues at columbia wrote the curse of the mogul. i iger is modest, stays in the background. he pays attention to the results and he says he's stepping down. there's not this succession drama out there. >> also, guys, i want to throw this out. we've been talking about jc penney, let's throw this out to

the panel, as well. they came in with another quarter of declining sales. and this time, probably very rightly pointing back to ron johnson and the strategies he'd already put in place. something like 505 stores that are still under construction that are going through this process. but a lot of people look at this and say once you start to lose customers like that, it's next to impossible to pull them back in. what do you guys think in terms of whether or not he'll be able to turn things around. it's a pretty tough task. >> i don't think that tradition holds anymore. you've seen h & m and other stores take customers, fashion's more disposable. the product turn around, the product cycles are shorter. able to go in and change. you can come into penney a year from now with one or two in the right places. i don't think it's doomsday. i think they just -- that johnson had a multi-year

strategy and went bad so quickly there was no hope. so i think they're going to, you know, i think stopping it now, better now than letting it go on and you can still turn. >> i was really surprised considering johnson's background coming from a technology company at how poorly they seem to use data mining and data technology to really target customers. to me, that's just table stakes these days. you meet with people from walmart, people from target. famously, they can tell you your getting a divorce before you know you're getting a divorce. and, you know, i don't live anywhere near a penney's, and i'm getting these flyers that are targeting teenage kids. i'm not the target audience. to me, that was a clear, glaring example of how a ceo with the right background failed to see the nose right in front of his face. >> we're going to take a quick

break right now. jim, thank you for joining us. jim stewart. we'll talk to you again soon. >> business insider still has, 21 experts saying nowhere to go but up. >> that's great. >> if you search, you don't need the link. if you search idiot maker rally, you'll get to see everybody. and this you search -- and you know who's in here that complete idiot from -- he took a guy from fight club and took his name and thinks -- i think he got thrown out of the business. can't go back into -- >> zero hedge. he loves us, by the way. >> i know. >> he's going to love this segment. >> i've never met him before, but banned for life. and he's like a composite of different freaks that are avoiding the law, right? >> all right. >> fortunately, stephanie, dan and joe are with us for the rest of the hour. >> he doesn't like you, right?

>> well, now he doesn't like you either. coming up, stocks on a roll so far this year. the dow closing above 15,000 yesterday. are equities a smart bet for the rest of the year? we'll talk to a portfolio manager. and next and -- still ahead on "squawk box," a disrupter that's transforming big data into ad revenue. the ceo of radiumone will join us at 8:40 a.m. eastern.

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welcome back to "squawk box" this morning. take a look at futures right now. dow looks like it would open about four points. and we'll call the s&p 500 slightly down. delta airlines this morning, the carrier has initiated a quarterly dividend of 6 cents per share. also announced a $500 million share buyback program. and the dow closing about 15,000 for the first time ever. joining us now senior portfolio specialist at westwood funds in dallas. and -- there he is. i was waiting for -- first we had a blank screen now we've got a guy who looks like woody from "toy story." how are you doing? >> never heard that one before. >> no, we said that years ago

because of the hair. it's perfect again today. i should talk. anyway, we're at 15,000, would you commit new money today, dan? >> yes, i would. and obviously there's people out there who are bearish. in our mind, it's really tough not to be bullish today. obviously what the fed's doing here, what they're doing in japan. they're forcing money into the equity market. the only place to get any sort of yield or return opportunities in the equity market, consumers are benefitting from an improving housing market, consumer confidence improving, the job market is slowly getting better. all of these things factor to create an environment that we think fundamentally merits continue to move higher in the market. >> before we see people talk 10% for a correction, 20% for a bear market. let's start with a bear market. what do you think the eventual high in the s&p or dow could be doing this cycle before we see a 20% move down? >> well, i don't have a crystal ball. but clearly at some point the

market's going to need to consolidate some gains. and today -- >> that could be 5%. >> yeah, that could be 5%, 10%, but if you go -- as you go back to buy and hold where you're not worried about 5% or 10%, you'd only be worried about 20%, could we go to 20,000 eventually in this cycle? >> i guess we could. i mean, i'm not expecting that this year. again, joe, it's very difficult to look out more than a year, we try to look out over the next year or two to see what the opportunity set is. we could get to 20,000. what you have to look like is today, where is the best opportunity to invest? and in the equity markets, you have the best opportunity for yield, you have the best opportunity for growth. and importantly, you have fundamentals that merit it. if you compare today to 2007, the last time the market peaked, the fundamentals are much better today and not a momentum driven market. there's a lot of money on the sidelines. hedge funds aren't fully invested. when you look at the

performances of defenses versus cyclicals. all of this creates an opportunity for continued move higher. and where does it stop? i don't know. >> dan -- the journal finally says that investors are finding it increasingly irresistible, are your phones ringing finally with retail people? >> well, we've managed primarily institutional money. i will say that institutions -- yeah, institutions are underinvested in u.s. equities in particular. they've been moving out of u.s. equities for years into everything but u.s. equities. and i think we're starting to see that money start to come back. the dollar's strong, the u.s. economy appears to be one of the better-performing economies in the world right now, surprise, surprise. and we have started to see institutional investors move back into the u.s. market. i mean, u.s. -- institutional investors in a lot of ways are like retail investors. they want to go where the best opportunity is and sometimes they chase performance. and i think we are going to

start seeing some of that, particularly given the dearth of institutional money gone into the u.s. market over the past five, ten years. >> what does that mean in terms of percentage there? are they at 30% when they should be at 80%? or what are the numbers? how do they add up? >> well, where they should be is really a function of that plan. but historically, 50% ratio to equities was kind of where they were. today, we're seeing a lot of investors in the 25% range. >> wow. >> significant allocation alternatives, significant allegation to bonds, significant allocation to commodities, to foreign equities and foreign debt and so from that perspective, if you see continued outperformance of the developed markets, particularly the u.s., you're going to see money start to come back -- >> does that mean the rally extends itself? they're chasing performance, but by chasing it, do they create the next leg of like strong performance?

>> i think so. you're seeing retail money clearly coming back into the market finally after years of outflows. finally the retail investors are coming back in. normally, that's not a good sign. but you're exactly right, becky. the institutional money should start coming back in. that will provide further fuel and ultimately that's what we need to see. we need to see institutional investors get back onboard, but those fundamentals need to stay in place and we need to continue to see earnings growth. we need to see demand create revenue growth for sustained earnings growth. but today, things look very positive. >> all right, david. thank you. we appreciate it. we'll check back with you. we haven't seen you in a while. we'll see you again soon. all right. when we come back, we have much more from our reporter round table. but first, faith hill is out as the singer of the sunday night football theme. nbc has picked a replacement, we'll tell you who gets this gig when we come back. with fidelity's new options platform,

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welcome back to "squawk box," everyone. among the stories we've been following, nbc has picked a replacement for faith hill to sing the sunday night football theme song, carrie underwood will take over with a new version of "waiting all day for sunday night." the first sunday night game this year is september 8th. the new york giants taking on the dallas cowboys. >> this is a huge --

>> got to get tickets for that. >> will that be in new york? >> for what? >> that game. >> really? >> i would go to that, absolutely. >> do you know anyone you can call? >> i'm going to call you. >> i could get you some. "reader's digest" announcing the list, topping the list of business leaders, jeff besos, beat the ceo of microsoft, google and apple. meaning 43% of those surveyed -- was weird when we mentioned -- he thought it was -- >> i find this poll suspect. >> it's just he extracts less money from us than apple. >> no, it's done by "reader's digest." >> i think they're voting on the company name. so i think amazon might be considered the most trustworthy, then you can have microsoft and google. >> he recently invested in our

company. 100% -- 100% reader's digest poll on this question. >> he's an investor in business insider. and if you talked to him about it? >> i haven't talked to him, but spot-on judgment by the respondees there. >> when we come back, we'll have more of our day's top stories, including the dow above 15,000 for the first time at the close. also, disney's earnings. plus, a disrupter looking to change the world of online advertising. we'll talk to the ceo of radiumone. right now, though, as we head to break, take a look at the u.s. equity futures, gotten weaker through the course of the morning. right now, those dow futures down by about 15 points full value. s&p futures off by about two points. "squawk" will be right back. tdd: 1-800-345-2550 but there is one source with a wealth of etf knowledge tdd: 1-800-345-2550 all in one place. tdd: 1-800-345-2550 introducing schwab etf onesource.. tdd: 1-800-345-2550 it's one source with the most commission-free etfs. tdd: 1-800-345-2550 one source with etfs from leading providers tdd: 1-800-345-2550 and extensive coverage of major asset classes.

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welcome back to "squawk box" this morning, let's take a look at some stocks on the move today. dow component mcdonald's with mixed results for april same-store sales. globally, mcdonald's reports a drop of .6%. that's a slightly smaller drop than the .7% estimate of analysts polled by the street account. in the u.s., the fast food giant posted an unexpected rise in comparable same-store sales. europe, however, saw a bigger than expected sales drop 6789.

also, cognizant technology earned $1.02 per share, nine cents above estimates. the notable part of this earnings beat was it came largely from better than expected growth in the european market. and toyota reporting up $3.2 billion for the latest quarter, more than double from a year ago. the automaker's results helped buy cost cuts, rising sales and a weaker japanese yen. are you ready to hang, joe? >> i am. with dan and joe and stephanie from "fortune." i was looking up on another one of our favorite websites. and this one i'll mention, the "huffington post," my daughter blogs for them, but do you know him? i can't find it right now, but i saw a piece yesterday. normally i would never mention a website because you mentioned one earlier. it's the biggest day in their life now that you finally mentioned that website, which will go -- we'll never mention it again because there's no reason to.

but you did it and now, you know, it's going to be the biggest day in their life that it got mentioned on this inconsequential show. but he was writing yesterday that the dow hit 15,000, so what? and there's absolutely no interest in it. i was just asking you how is biz, business insider, fortune? people are either getting business news some other way which is, i don't know, desperate or separated or this hasn't caught anyone's imagination. >> i'll say two things about that. one is, this market is kind of the worst for news. it goes up a little bit every day. there's no crises going on anymore, no european crisis really. it's kind of a little boring. but i -- there's all these people out there, dow 15,000, who cares, it's just a number, the dow is a bad index. i'm a big fan of these round numbers. i think they do mark nice.

points at which we can look around and sort of assess things and they are a good reason for everyone to do that. and a key thing, you're talking about, you know, the stock market's hit a new high and like is it going to correct or whatever? people hate this market still. you're worried about how dow 15,000, you've got -- >> right. >> that's the thing, you know -- >> there's still this -- >> the round numbers is like the beginning of something or the end of something. and some day we'll look back and say hey, dow 15,000, got there without apple and we'll be at dow 17 before we know it. people hate this market and there are a lot of good stories left in it. we've gotten a little macro myopic and tell the same story over and over again. there are great stories, starting to get told now, individual stock stories. >> the huffington post, he wrote it from the viewpoint that it's justifiable that no one is interested because main street and unemployment and the -- >> that's all changing.

>> it is true, it is true. but he's saying that's why there's no interest. i take it as a contrarian that it's a good sign that -- >> it's not the mass hysteria. >> it has not captured the imagination of everybody else that will talk about -- >> and there's this big contingent that thinks the market is rigged because of bernanke and qe and all of that. as long as those people are out there hating on every uptick in this market, we know there's this big reservoir. >> it is a legitimate question. it is a legitimate question when you try and figure out how much of the market is coming from, what bernanke's done, how much is coming from the economy. the hope is by the time bernanke backs out, the real economy will have stepped up to be there. >> does it truly matter? is the wealth created because of bernanke and liquidity any less valuable? >> it doesn't matter. >> right. but we're going to know when that happens. we're going to have two or three months of visibility before that happens. they're not going to wake up one morning and say, oh, we're out of the picture. >> don't you think no one's going to love the market --

>> unemployment is dropping. >> no, it is. >> that number's rigged. labor force participation rate. so doesn't seem like there's any number we could get to. >> that's because there's been this narrative being created that is either real or imagined and probably closer to real which is the disconnect between the market and wall street. >> that is still the narrative that seems to be on top of all of this. fair or unfair? >> let's talk about that narrative. that narrative is horrifically boring. i mean, it's europe, it's bernanke. i mean, it's not only fun. when you look at the great things, what we're waiting for is another internet, another iphone, ipad, another compelling reason to get -- for the rank and file for the troops in america to get excited about. >> we talk to people about what the next new thing is going to be. and many people have come in and said they think it's going to be energy. that the energy markets in what we're seeing right now, that could be the next big job creator. it's not as easy to jump behind that. we've done stories on that. everybody's been up at the bakken areas. >> it's also timing.

there's so few people working energy. it's exciting what's happening with domestic energy and shale and all that. >> our whole cost -- >> there's almost 100,000 people. >> yeah, but our whole manufacturing base. >> it could be -- >> we talk about news being boring. that's why these jamie dimon stories are blown out of proportion. it becomes a story, because frankly there's not another story. >> there's a small group of newspaper guys that are going to write about jamie dimon. >> e yyeah, but think about thi we've been around for years and years and years, when has the market been less character driven? >> right. >> in the '90s, we had bankers, traders, fast guns, now you have hedge fund guys, there's not the great characters in the market. that's why dimon is fantastic. he's aggressive, he's brash. >> we had two guys on the other day with becky. let's say that you have a wish list. you're a business journalist, your biggest interviews.

let me see, i wish we could get warren buffett, i wish we could get bill gates. we had both of them on for an hour talking at the same time. people watched, but i don't think you -- i haven't read about it on the front page of anything. >> those guys have been around for decades. >> who do we want? we want zuckerberg? or -- >> tim cook and besos. >> marisa mayer. people would watch that. >> i think it gets at two issues. one is, you know, really who is creating the next new thing? right. people want to hear from the people who are taking risks and betting big and developing the thing that the masses will get excited about. you know, the disconnect between main street and wall street is partly because main street doesn't have anything to get excited about. whether it's a technology product or, you know, a stock that they can believe in or a financial product that gets them into the market for the first time.

and then the other thing is that, you know, i think that people really are -- they want the fresh face. they want somebody who is trying something different and that's why, i think, people like marisa are so compelling. she's somebody who is, you know, taking a risk and succeeding at a company that everyone thought was just moribund. >> it's about capturing imagination. for us, it's about job creation, for the real world, maybe it's about job creation. >> it's about job creation for the real world. >> no, it is. but when you look at the investor, look at what drives the market, what makes people buy stock, what makes people put down their money? i was at the street.com on an ipo, that was magical, the '90s, a different time. >> start making a little money, you tell your friends -- do you remember when barbara streisand was investing donna karen's money in internet stocks. >> she was in street.com. >> right. >> she was in street.com. >> that's when there's a problem. >> what?

>> that's usually when there's a problem. >> that's why there isn't one now. >> you were talking about the market at the top. >> people talking about super low interest rates and people talk about housing and farmland, but what you don't have is that sort of complete abandonment of standards, which is kind of what you need to see before you have that euphoria bubble. where you see -- there was a senior loan officer. >> we're all rooting for that, though, now. >> that in terms of what it would take to get credit flowing and get, you know, animal spirits going, there's not much more we can do on the financial side by just like pure lowering rates. it's about this like starting to abandon standards a little bit. actually, they're still very tight. if you look at the latest surveys. people are still tight with money. >> is that abandoning standards or just -- >> loosening standards a little bit. >> if you compare this market to a basketball player. it scored a very quiet 28 points. you know, it hasn't had that carmelo anthony bust out. that's what you want to see. >> i had that last night.

>> yeah, exactly. >> from ohio, so -- >> yeah. >> i kind of like indiana. but what happened in the second? >> it was great. i just heard it from the window outside. i wasn't watching the game, i was watching "the voice" or something. and -- >> good! good! >> nbc show, excellent. that's what i was doing too. watching "the voice." exactly. >> everyone was watching "the voice." >> we have more from our reporter round table still to come this morning. but first, a pioneer in online advertising. the ceo of radiumone will share how he wants to build real time audiences. "squawk" will be right back. [ male announcer ] you are a business pro.

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back to "squawk box" right now. we're lower down about 19 points or so on the dow jones. we were up to last time we were looking. we had a big gain yesterday and we're at highs. >> okay. we're continuing our disrupter series this morning with a serial entrepreneur now on his third start-up, also a best-selling author and are you only 30 years old? >> sorry i look older. >> is that really true? >> no, no, just given everything you've done. joining us onset, i butcher everybody's name, you should know this, and your name is particularly complicated. >> it's pretty common, right? >> you think? i'm going to try. >> wow. >> this one's tough, right? gerbakush. >> he's a founder, chairman and

ceo, he also started his first company click agents at only 16 years old. this is crazy, and sold to value click. he followed up with his second company, blue lithium, which sold to yahoo for more than $300 million? how is this -- it's so depressing. a lot of young people around the table here. tell us what radium does. >> so radiumone is my third advertising company. this is kind of a big wave of big data and just like wall street got automated a lot of trading done through data driven strategies, every ad slide you see on the web, facebook or video ad, or banner ad now even on mobile, within milliseconds it's being traded and based on all the interactions and stuff you do on the web. >> where are you getting the data from? >> wide variety of sources, social networks, advertiser data, crm data, everything's kind of basically, you know, in the cloud, making the decisions based on the -- >> so i'm getting chased around

right now by about five different ads. i don't know if you have the same experience. you search for one thing and can't get away from it for about a week. >> new balance. >> hunting me down. >> new balance is hunting you down. have you bought the sneakers, though? >> eventually, just to make it stop. >> we'll get you buying. >> well, now, what kind of premium, what kind of success rate -- how much does it go up effectively? >> so it's basically -- >> simply by following me. i'm annoyed by it and i haven't bought the product that's chasing me around. >> there are some instances where you might get annoyed by it, but it's better than showing a random ad. imagine being on tv and you have basically, you know, a pharmaceutical ad for senior citizens you're seeing it's not going to be relevant to you. but if you looked at a pair of shoes or clicked on, let's say, a twitter link by mercedes benz, this is related to what you're doing. >> how is that different than what google's doing? >> google's intent based. you're typing in their

marketplace based on you type in a keyword, you know, you're getting a set of ads for that. we're doing a little bit different. we're looking at 700 million users a month, we see 30 billion ad slots a day and have to make these intelligent decisions on the fly based on everything you do across the web. >> and google can't do that, facebook can't do that? >> google's a partner, they supply one of the exchanges, part of the 30 billion ads a day, we get about 6 billion, 7 billion out of that. google's a toll. as long as you pay the toll, they're fine. they're connecting all of those supply side together. >> do we worry about privacy? do we care? >> privacy in terms of there's no pii. this is stuff that you are doing throughout the web. >> what's pii? >> personal identification information. but think about the stuff on the internet. publishers can pay for it and pay for it based on the ads they're getting a premium for.

>> what are you about to say? >> when you do these -- >> scowling. >> no, this is your thing and i'm in awe at everything that's disrupting. >> which established company do you end run. >> software is making marketing automated, you can spend millions of dollars and connect with audiences on the fly. and think about that from a typical ad agency model. you'd have to go ahead and come up with a media plan, buy one side at a time. this is more or less software and data coming together. it's taking away traditional dollars from, you know, print, tv, et cetera. it's also automated -- >> you mentioned premium. is there real premium on these ads? can cnbc.com make enough money using this type of ad environment to support all this infrastructure per se? or -- is big question in online

advertising is can big media companies make high enough margins to support themselves? >> i don't think there's another option. at the end of the day, everybody's making money through online advertising. this is offering a premium in the way that if there's a valuable audience and i have -- >> the target is the premium. >> i'm thinking everybody here is a publisher one way or the other, right. and the rates are continuing to come down, right? the margin compression is huge. and so the question is, i understand you're personalizing. but at some point, i assume everybody's going to personalize it. >> that's where we're coming in first-party data. inventory is just the supply and it's a commodity. so that's bad for the publisher to think aboperspective, but that's why you have to go beyond and kind of look at what data's going to do. and over time, we've seen it, rates do go up. and we've seen it being a positive influence through publishers because if we provide data that nobody else has, mercedes benz will pay a premium for you. >> right. in sling blade, there's john

ritter asks billy bob thornton, you're thinking something very deep, and he says i'm thinking about taters. i was thinking, are those lapels? is it a normal jacket? could the lapels go back? or do they always stay -- >> you know, i packed five minutes -- >> you're disrupting my whole wardrobe ideas. this is very -- can i -- do you see what i'm saying? >> i see. >> you asked me for a really profound thing about what he was saying. >> it looks good on him -- >> i was thinking about -- i can't wear it, probably. i was thinking are those actual lapels. they're really not, are they? it's meant to be open like that and you got it with the tie. >> yeah. >> that's a -- >> cnbc. >> thank you for coming in this morning. >> appreciate it very much. when we come back, the stock stories that we're watching ahead of the opening bell. jim cramer will weigh in.

"squawk box" starts tomorrow at 6:00 a.m. eastern. s command is locked. five seconds. three, two, one.

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. welcome back to "squawk box." jim cramer joins us now from the new york stock exchange. 15,000, jim. we talked about it so many times and we were talking with a lot of people that follow the way that the market's new highs have been covered and there is a distinct lack of excitement just about everywhere. the headlines are a little bigger in the journal, but is that a good sign, a bad sign or is it a reflection that it's all fed manufactured? >> you know, frankly, i don't care because if you wanted to sell 2 million shares of eog resources or disney rpgs it's a bid. if the fed backs away i doubt that we'll go back to dow 10,000 yet that's where a lot of people -- i sense, wanted us to go. a lot of good commentary on your show about the notion that perhaps the whole thing is a fraud.

at a certain point, these people think who are fraudulent will have their money taken away. today we take up the growth stocks because we have disney and whole foods. yesterday we talk the cyclical stocks in the morning and the consumer stocks at the end of the day. this is a great intraday rotation and pure bull market behavior. if people don't understand it they'll miss out on the best part. >> we talked all morning about what type of pullback would cause you to stop adding money or to actually take some prophets. 5%, if you're going higher, it probably isn't worth worrying about although if it happens quick it gets scary, jim. what would cause you to tell people sell half your position? >> well, i would sell half my position if it turns out that it really is -- dan spoke about this and some others, that the employment number was just a flash in the pan. it feels that china may be getting better.

if it turned out that we're not getting better that would change the situation. upper left hand column, "washington post" today, it is taking in more money than we thought. mae returning a lot of money. the sequester working. we've got washington out of the picture and that has given a huge part of the move. >> given the internet crash and the financial crisis and the flash crash, how much longer can it take this time to get people to that point where they really want to -- where they're rushing in saying i've got to get in this market. it could take much longer than normal. >> a lot of people think the market's phony and you had a great stock like procter & gamble lose 30 points in a matter of minutes. >> sentimentwise. >> you might not get the complacency as quickly as you normally get it it. >> no, in the early '80s, people didn't know what the stock market was and they went and got

in it and got completely burned and i don't think we're that important. i think housing is important. i think taxers an important issue, but the stock market doesn't mean much to people anymore and we know that because every day we pick up the papers and other than "usa today" we're nowhere. >> that's probably a good sign. >> i think it's a very good sign. >> we'll see you in a few minutes. >> thank you. we'll get final thoughts from our reporter roundtable and we'll get their last word on business insider right after the break. which help us attract the industry's brightest minds who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world. bny mellon.

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>> welcome back to "squawk box" this morning. let's get to our reporter roundtable. during the break we were talk about apple. >> i have no views. >> you have objective only. >> one guy said apple, apple going from what it was from the end of last year considered a value stock and now it's back up 15%. it's going to be a fun thing to watch. >> apple has been a good story, right? >> it has, but the most expensive stock in the world, can it be a value stock? >> that's the great question. people are thinking about it

like that, what does it mean for the stock? >> some people are starting to say google android is going to be the future. >> i just dumped my android for an iphone. >> you think about the whole world. >> the united states, emerging markets and android's getting big. >> dan, stephanie, joe, thank you for the a wonderful joe. >> right now it's time for "squawk on the street." and we begin this morning with the dow above 15,000 for the first time ever. good morning, welcome to "squawk on the street." i'm carl quintanilla at the new york stock exchange. david is in las vegas at the sky bridge alternatives conference about thor known as salt where, david, very small minds are pondering just where the market goes from here. >> indeed they are, carl. we'll sit down with any number of hedge fund managers, both