squawk box." i'm andrew ross sorkin and michelle caruso cabrera is in for us with becky quick out, we hope she's back with us soon. and billionaire real estate investor same zell, barry sternlight is joining us, and then bill miller. plus big news to move the markets. and michelle has more on that. good morning, michelle. following friday's employment report, the focus will shift from jobs to profits. the financial sector is going to kickoff the earnings season later this week. both jpmorgan and wells fargo scheduled to report on friday. profits for the s&p 500 companies are expected to rise by 1.2% in the first quarter. ahead of that, the fed will put out the minutes to the march meeting on wednesday. the markets will look for more clues on what the central bank could be thinking about the future of interest rates and the bond-buying program known as quantitative easing. let's check out the futures, are they working?

right now they suggest the dow would open lower by 20 points. the s&p will open lower by 4. and the nasdaq opening lower as well. >> who is the big star for the week? you said we have a big star for the week and showed those people. >> they were on tuesday, wednesday and thursday. >> who is the big star of the week? >> the week ahead. >> who is on today for the big star for the week? >> michelle carusa cabrera. >> oh, got it. i thought that sam zell was on today. >> and we have the guy from wall street journal. >> that's cool. >> i thought it was the guy who sang that song -- but that's jerry raferdi. will you stop for a second. jerry raferdi on baker street. if you don't let me finish my -- >> there's a punchline there. >> i didn't get it, either. >> no one did because no one got to hear it. a federal judge refrained from

issuing an emergency order that would impart millions of general motors cars recalled for defective ignition switches linked to 13 deaths. the judge needs more time to study briefs submitted by attorneys for two openers of a recalled gm model. also, he received documents from the lawmakers' lawyers and they are ruling on the requested stop drive order that is expected in the coming days. gm has recalled 2.6 million cars equipped with that switch. so far this year, gm has recalled a total of 7 million vehicles. nearly 7 million vehicles are about the same number recalled in the previous four years combined. that's -- you start adding up millions, it starts -- >> did i see a stat where they recalled as many vehicles as they have sold? >> yeah. >> the industry, i mean. it's incredible. >> it is. i don't know, haven't you tried the government's timing of their stock sale to whether we found all this out, have you mentioned

that yet? >> about potential insider trading. they dump it before all the news breaks, i love that. >> the stock before and then two months later all this hits. i mean, this was since 2001. no one knew any -- you have contacts at the obama administration. no one knew anything about it looks a little weird, doesn't it, to sell all your stock before that? >> conspiracy theory at the table. >> not really a conspiracy theory, but i wish i had sold before. no one had any idea? i don't have any. >> and it is not illegal, right? didn't we learn that from the "60 minutes" story that members of congress are allowed to buy and sell, nancy pelosi, et cetera, are allowed -- >> did we not fix that at all? we have a little bit of other news. we have to talk about mickey rooney at some point. >> i didn't know he was a

heartthrob in his 20s. >> i didn't know he's alive, but he's not. god bless him. he lived to 93, great life. >> he was in "the black sta stallion." >> he was a child star. >> have you gone back to watch "breakfast in tiffany's"? that role would not be permitted in today's world. >> that's true. blackrock, the largest money manager shifting ten senior executives into new or different roles. here's what's going on. according to an internet memo, larry fink and rob kapito will stay in their roles. but charlie hallock, the first employee, will become co-president. he's currently chief operating

officer. blackrock with $4 trillion under management. just unbelievable. he's scheduled to report its first quarter financial results in a few weeks. i talked to people about the succession planning, and larry fink says he's not going anywhere any time fast. he's a young man. >> i cannot believe what they did with charlie hallac. >> they are probably saying, who is charlie hallac. >> you're right. >> i think everybody is in shock. honey, get in here. charlie hallac at blackstone is changing position. charlie hallac is changing position. >> this is a very big deal. >> hopefully they have a nielson box. >> this is a lot less fun than watching the changes at pimico, i'll say that. >> that was what i was saying. i thought we were going to hear -- that would complete the circle. >> yes. >> wow. >> wouldn't that be good?

>> yes. >> then we would hear from him every time we had somebody from pimico on instead of hearing from him every time we had someone from blackrock on. he was a competitive guy. >> welcome to the new normal. >> well, you have to be able to ground corners in a multi-speed universe. pfizer's experimental breast cancer drug in a clinical trial nearly doubled the amount of time the patients lived without their disease getting worse. which is whenever we talk about the studies, that's what we talk about. and it can seem like not that much time, but that's the thing, when you are able to statistically prove that the disease does not progress, you know something good is happening. the phase two study which involved women with the most common form of breast cancer found that those treated with the hormone drug plus pfizer's --

>> wow. how do you pronounce that? >> can i buy a vowel? p-a-l-b-o-c-i-c-l-i-b. move the prompter back down. move the prompter back down. no, the other way. that one first game and i was like, okay, i can do that. letrozole. and then they threw that in there like it is -- i want to check out who wrote this, because they think they are funny. live for an average of 20.2 months, which is big compared to 10.2 when just given the drug alone. the fda granted break through status. it is not decided whether to seek accelerated approval. i guarantee they will pick a different name to market the drug under. based on the phase two trial, this drug is viewed as one of the company's most important experimental drug.

some analysts say it could eventually have sales of $5 billion if approved by regulators. and over in india, india's son pharmaceutical industry is buying ranbaxy, which is a troubled company. it is one of the biggest generic drugmakers running into trouble with the u.s. fda, which has barred u.s. import from four out of five ranbaxy factories in india because of safety concerns. before the ban, the u.s. accounted for 40% of ranbaxy's revenue. now four out of five factories can't list it here. and we have a mega deal in europe this morning. time for the global reports market. i saw this happening over the weekend. the two big cement companies. >> but i don't want to make a joke about the cement companies. >> are you worried about the

long? >> i didn't say anything. cement companies, what do you think goes on in cement companies? >> mixing, building, home construction? >> maybe now that they are a big industrial company, but in the old days, cement companies meant something else. >> jimmy hoffa was there? no, no, waste management. >> i was thinking tra ining tra collection. >> ross westgate, you don't really have that there, do you? >> concrete boots. various bits of criminal figures are in various bits of infrastructure supporting. >> what do you think was in the foundation of those buildings? >> yeah, exactly. that's the sort of thing. though it all happens. everything all happens here happens there. all sorts of things. we'll talk about that deal in a second. i want to show you where we

stand right now. guys, on the european equities, 4 to 1 despite advances following a lower move in asia. and the sell-off we saw on friday particularly from the nasdaq. so the activity this morning, not doing anything for the better turn of the market. the ftse last week closed up 1.2% for the week. this morning down .40%. we are lower as well on the dax down a percent. the cac is down half of 1%. and the new prime minister coming out. they are going to try to get a bit more time to meet their budget deficit target. also, we are going to introduce a financial transactions tax. the ftse mib down .11%. these markets a low despite gapes. the cac is lower despite gapes for these cement makers. holcim and lafarge are seeking approval from the regulators for the $50 billion merger. if it happens, it would create the world's biggest construction

company. getting regulatory permission is going to be difficult. they have a lot of overlapping businesses here, and there's also been an eu investigation started into alleged practices, which are against the interest of the consumer as well. so, anyway, lafarge up 2.37% and holcim up 1.31%. the companies may have to be divested to get approval from regulators. if it all happens, the chief bruno lafonte will be the ceo of the combined company. the merger is expected to be completed in the first half of 2015, but it could be long tore get regulators approval. that's not the only deal this morning. vivendi is selling the telecom unit sfr and european cable operator numericable sealing the deal.

the loser is bouygoun. a lot of news today in europe, but it is not necessarily supported in the headline indices. that's where we stand. back to you guys. >> thank you, ross. >> palbo is what it is called for short. mike huckman messaged me. i see him at the gym all the time. palbo is the short. >> wasn't he the new prime minister of -- >> it was not mike huck man. >> look at who is here. >> our guest for the next two hours. dennis hartman, founder and editor of the gartman letter. the momentum stocks were

hammered last week with the sell-off from friday, and it doesn't look to be better this morning. what happened? >> it was as if the flip, the switch got flipped at 11:15. it was amazing. i came back from the gym on friday morning, satisfied with positions i had on, and the next thing i know i'm throwing with stuff overboard because everything switched. currency switched, gold switched, bonds switched, it was astonishing. >> i immediately started e-ma e-mailing kelly evans because i like to make things bigger than they really are, just to make an interesting story. here was my narrative, the death cross on the ten year got down to 2.70. if it goes below that, it means 2.20. the only thing that indicates to me is we are not going to do anywhere near 3%. >> in gdp. >> for gdp, which means the messy exit won't be an exit at all because they have to taper the taper or even do qe 4, and

we are in the hotel they can never get out of. so i connected the stocks to where -- >> not a bad job of connecting. i think the term is empathetic. the most empathetic fed that we have had in a long time. >> they feel every single -- no one can have anything unpleasant happen to them. >> isn't it awful? >> you can't clear any trades or markets because nobody can feel pain again. well, think about that imnighting from the administration. how many new disincentives are there. there's 100% marginal tax rate. >> there are not supposed to be losses in capitalism, right? >> not supposed to be losses to everybody. everybody feels good about everything, let's give a gold star. >> you might as well leave. gartman, me, michelle and dennis. >> this is a right-wing conspiracy going on this morning. >> but welch said, look, i've never seen so much optimism about what's getting ready to happen, but the order, nothing -- why do we think we're going to 3% given we have the

same policies from the administration we have had for five years? >> i would have liked to have thought we would get to 3% but we are not going to do it at this point. friday, for whatever reason, the switch got turned, game change all at one time. >> here's the thing, if you believe that we have a super loose fed for a long time, the momentum stocks should keep going on that logic, no? >> but they said, didn't they say that the benefits of all the qe got less and less and less, even, you know, richard fisher has said that. mainstream members have said the possibility for doing harm is now greater than the benefit we're getting. i don't think -- does anyone think they can come back -- if we slow down or god forbid we go into a recession, is anyone thinking that the fed has anyone left? because qe4, qe5, qe6, do those things help? >> let's put out on the table, the only good thing from friday morning was the fact that at least the things, aluminum stocks, coal stocks, steel

stocks held up relatively well. >> they did? >> they relatively did. >> it was mostly the nasdaq momentum. >> i have seen 20 death crosses in the last year but nothing has happened. i like to say it, though. >> the death cross. >> the death cross in the ten-year, run for the hills. >> could you actually draw the death cross if you -- remember the old days? >> i would draw one of those old goth great big things. >> with the skull? >> maybe. so you don't -- do you say three is off the table now? i still think -- >> i think so. >> the consensus -- >> i think three is probably off the table. >> then the market is over. the market needed three to justify where it already is. >> it is overbought. >> yeah. >> so what do you do? >> go to the sidelines. go to the sidelines. >> for cash? >> why not. i've always told people that there are three things you can do in a bull market. be really, really bullish.

pleasantly bullish or neutral. it is time for neutrality. >> and holding cash is not very painful. >> it is not a bad thing. it's not a bad thing. okay? i'm amused at people saying, you can't just hold cash. of course you can. >> if you held cash for the last year -- >> if you held cash for the last year, it's hurt you. you lost money, yes. or you were lacking well behind, but cash right now may not be such a bad place to be for the next month or two. >> did they find that guy in that guy's house on "60 minutes,"? did you find that, 40 pieces of historical -- >> this is from the museum of modern art. i think this is a france clay painting. >> you are good, dude. >> you can tell that is because, you know, i'm trying to understand it a little bit. >> my wife thinks it's a good tie. >> this is a family show. >> i bet you have some nice

ties, that she can tie you up with. that's from "caddyshack." given a good tie, i don't know if you can say that. >> we'll have a lot more from dennis gartman throughout the next two hours. >> get ready for that. before you get a case of the monday blues, your day likely won't be worse than the day of this fedex delivery van had last week. columbia, tennessee, camera footage shows what all delivery truck drives are doing. and the dogs are going crazy in the yard as they spot the delivery man, but what seems to be a cute dog video takes a turn after the van rolls backwards into the frame with no driver behind the wheel. a fedex delivery man is seen running alongside, wait! wait! trying to regain control before losing track of it. there he is, hold on, whoa! whoa! not a good idea to try to jump into a -- at that point, it's going to go where it's going to go. narrowly missed a tree. >> right through the trees.

>> right through the trees and stopped at a fence. and i think he probably just drove it out of there. the driver assessed the damage. despite the unexpected loss, no injuries in the accident. a representative from fedex meanwhile says, while this video shows the unfortunate situation for the driver, they immediately were saying safety is our top priority and we are relieved no one was hurt. >> no good luck charms for those device. >> really. >> ups, fedex, you don't make left turns, ever. >> it will be super hard. >> no, it saves gas and is much more efficient because the left turns -- >> for the cars coming the other way. >> right. that was a logistics thing ups figures out to save a lot of time and energy. >> it eliminates a tenth of a mile and over 10,000 trucks, it adds up. >> in this show all you do is make left turns. >> and we have three right turns here, so we are good to go. >> we are right back to where we started.

coming up, we'll talk about amazon on the move. this time the online retailer is making a dash for your groceries. feels like every week they are making a dash for something. then the box office dominated bay superhero, "captain america: the winter soldier" smashing its way to $96.2 million all in one weekend. that's the ticket sales setting a new record for an april release. " squawk box" returns after this quick break. ♪ ...work with equity experts... ♪ ...who work with regional experts... ♪ ...who work with portfolio management experts, that's when expertise happens. mfs. because there is no expertise without collaboration. alrexcuse me, should just about do it.

what are you doing? uh, well we are fine tuning these small cells that improve coverage, capacity and quality of the network. it means you'll be able to post from the breakroom. great! did it hurt? when you fell from heaven? (awkward laugh) ...a little.. (laughs) im sorry, i have to go. at&t is building you a better network.

welcome back to "squawk box." we have severe weather across the south. thunderstorms, tornado warnings and flooding issues galore across parts of alabama and mississippi. each one of the green boxes a flash flood warning as a flood emergency is near birmingham, alabama. today we watch for the threat of severe storms across parts of the southeast, even over towards new orleans we have thunderstorms on the doorstep to start this monday. tonight, still watching for severe storms right along the southeast coastline. jacksonville to savannah to charleston, up to raleigh. tomorrow morning, showers and a few rumbles of thunderer in the same spots. then we keep the chance for showers and storms going throughout the day across parts of florida. now, up into the northeast, you're seeing the rain showers get awfully close to you in d.c. it's going to spread northeastward through the day today. philly, new york, it's the afternoon hours you'll begin to see the rain showers by tonight in boston. tonight the heaviest rain is focused over parts of the northeast and new england. you'll hear the rain while

sleeping, showers into back parts it have mid atlantic and the ohio valley. tomorrow, still dealing with rain particularly during the morning hours and mainly up to parts of new england. it will be a nicer tuesday afternoon for you in places like new york city. and we've got nice warmth headed your way on wednesday in parts of the midwest, low 70s in places like minneapolis. back to you guys. thank you for that. it is now time for the executive edge. amazon is making a dash for the grocery shopping aisle as a high-tech flash amazon launched a new product named amazon dash to allow the user to add groceries and household goods to their shopping list using the company's amazon fresh service. the black and white handheld wand-shaped remote control features a microphone speaker as well as a bar code reader and links directly to the user's amazon fresh account. this is only for users of amazon fresh, which currently operates exclusively in southern

california, san francisco and seattle. the device is free during the trial period. so you can work with the supermarkets out of business right now. you guys don't do fresh direct. >> i do fresh direct, yeah. because in the city you can't walk to get some of the stuff. >> but when it happens by amazon, it's a game changer. >> why would i not? >> you have not had it yet? >> no, we have a great supermarket five minutes from where i live. i drive there. >> can you imagine carrying every three blocks in the city? >> that would be difficult. like a juice and you add a couple foods, dog food, 24 bottles of water -- >> you would be getting your groceries from amazon. >> some day. >> you just got a song from itunes, so it's coming. >> i have not done it yet. >> you'll break down and it will happen. yahoo! now raising ambitions in the online video space.

with plans to acquire the kind of programming that typically winds up on high-end cable tv networks or streaming services like netflix. the wall street journal is reporting yahoo! is close to ordering four of them with a web series. and unlike years' past, yahoo! is not looking for short form web originals but ten-episode half-hour comedies with per episode budgets raising from $700,000 to a few million dollars. these people say the projects being considered would be helmed by writers and experience in television. one of the people briefed said to the wall street journal. >> this is the third time i try to see yahoo! be content instead of the pipe they want now. but remember bertha coombs, we hired her while she was on finance tv during the dot com bubble. >> then marissa meyer came in after a host of other people and shade they were going to turn it back to a technology company. and now they are back to tv.

>> i think this is the third time they have tried to do tv. >> if you are going to do tv, you need to have -- it's a whole different skillset. you can add reuters and so forth. >> people are good at picking pilots, which is an extremely difficult thing to do. >> from what little i know now about the tv business, $700,000 for a half-hour comedy may sound like a lot, but relatively to the networks is nothing. if you are a writer, director, actor, i'm not so sure you are taking that. >> i was watching the "game of thrones" marathon. i remember -- >> what's after that? >> but then i also saw, there's a new, like, spa new mexico the revolutionary war, which could be cool. but then they keep advertising this silicone valley. >> by the way, people say it's good. >> those nerdy -- i don't care

about their life. >> mike judge -- >> i can't tell with young people like you. do you want to watch the nerds try to make it in silicon valley? >> very funny. elan musk went to the premier last week and didn't like it. >> if he doesn't like it, that's him. >> apparently it was streamed by south and southwest and people thought it was hilarious. i have not seen it yet. >> and you never did watch it. you argued with me and never did watch it because it was so bad. coming up, is momentum really shifting on wall street. we are going to get into the market story with kentucky losing five freshmen. these two teams have won a lot of titles already. nobody except ucla has won more than kentucky. an amazing shot in the final seconds of play. will the mo men tim carry over?

they are going to run into that buzz shot. ♪ i know a thing about an ira

♪ and i got the tools ♪ to do it my way ♪ i got a lock on equities ♪ that's why i'm type e ♪ ♪ that's why i'm tyyyyype eeeee, ♪ ♪ i can do it all from my mobile phone ♪ ♪ that's why i'm tyyyyype eeeee, ♪ ♪ if i need some help i'm not alone ♪ ♪ we're all tyyyyype eeeee, ♪ ♪ we've got a place that we call home ♪ ♪ we're all type e ♪

what'swithout the thinking capitathat makes it real?? what's a vision without the expertise to execute it... and the financing to make it grow? whatever your goal, it can change more than your business. it can change the future. that's why, at barclays, our ambition is to always realize yours.

good morning. welcome back to "squawk box" here on cnbc. i'm joe we are knapp along with michelle caruso cabrera, and andrew ross-sorkin. becky is out this morning. in the industry, two companies to get extra attention from investors following the news of a multibillion takeover deal. one is generic drugmakers following news that india's sun pharmaceutical buys ranbaxy.

you probably know some of ranbaxy's products but they have been banned for u.s. import because of concern about manufacturing plants in india. and another industry in the spotlight, cement makers, switzerland's holcim is buying lafarge to create the world's largest cement maker with combined annual sales of $44 billion. cemex and eagle materials are among the cement company that is trade here in the u.s. we'll see if there's a bounce in those companies. gasoline has gone up 5 cents over the last two weeks says the latest lumberg survey we talk about on monday to put the average retail price at just under $3.61. demand is up 4% from the same period a year ago. and the survey from lumberg says that's a key factor in the jump in price. >> are you not going to talk

about the blackrock news? i want to prepare people before i say this at home. >> i did. i just wanted them to -- because if you just hit them with that news. >>. let's kick off the monday morning strategy session. how do you account for the action last week late in the week, brian? and i don't like flat yield curves. and we always ride it off and say, well, it could be this, could be that, and what it usually means is that the economy is not as strong as what people think. are we on track to live up to everyone's expectations this year as far as gdp? >> no. not on a near term basis, joe. i think it's pretty clear that it's not too hot, not too cold type of economic environment is starting to bore investors,

especially the move give last year we saw in markets and how the market has been extremely resilient. we would call it near-term complacent, not only in terms of people's views on the u.s. around the world, but also investors' views regarding the fed. and as we go around and talk to clients around the world in this kind of real complacent thought, oh, we have to own u.s. stocks with nowhere else to go, it worries on a long-term basis. we still think that u.s. companies and u.s. stocks, in particular, remain very bullish relative to their counterparts around the world. but we think we are at a bit of an inflection point here where we have to as investors begin the transition away from the need for quantitative easing in the fund toward fundamentals. that's why investors are becoming nervous on the earnings front. and we can finally see this

blessed pullback that nobody really wants to admit that the market needs. >> i can paint the picture for you. it would be troubling. and and the fed not only started showing rates, but we began tapering. we are at 55 to 65. so we're getting diminishing returns even though the fed is still -- hasn't really turned off the spigot and only for qe. we have only tapered a couple of times. and i don't think if they were to taper the taper, i don't think anyone is going to take that as -- oh, good, the fed is coming back in. it's not going to do it this time. i don't think. even if they went back to $85 billion. i don't think -- what we need is the economy to finally respond to come up to where the market is so we don't have the wedge in there that he talked about. we need to justify the evaluations. and i don't think the fed, i don't think there's anything that a weak economy and a strong fed isn't going to help us now.

>> that's exactly right. you are spot-on. i think the biggest surprise, joe, this year is when ten-year treasury yields dip below 3% and investors that were very risk based in terms of momentum strategy you have been talking about all morning so far were neutral or underweighing some of the more yield instruments. now that the market has turned a little bit, we are now officially on a near-term basis in a show-me state. the market needs to show that they are growing. we need to start the transition into organic growth and sales growth. then second half of 14 to 15. griffin how much the market has been up on a short-term basis, we need a bit of a pause. this could be our 1994 as we see a sharp connection to '94 and

'98. but it won't sway the equities outperforming, especially across the u.s. >> thank you, brian. >> thank you. >> if we have argued -- of yield? >> no, we have not argued with the economy but because of the activist government, because of uncertainty and high taxes, because of obamacare. if we have argued that's what has been holding them back -- >> then the fed can do nothing about it. >> why would it be different now? >> exactly. >> why would we get to 30% with the headline removed? >> no. >> then why would we get 3%. that's for people who just believe we need to work off the debt and other things. >> a good chunk for all the people who said friday's important number was so good and none of them remember the 300,000 numbers in the recovery in the '80s. >> the table is set for the ncaa finals. we'll break down the teams and

what will steve cohen's new firm look like? we'll have exclusive details when we return. e financial noise financial noise financial noise financial noise

welcome back to "squawk box." we'll see how the market is setting up on this monday morning. dow looks to open dow off 30 points. nasdaq off 20 points and the s&p 500 off a little over 5 points. we should know today a new era for sec capital. a lot of questions all about it. and kate kelly is joining us now with some of the exclusive details. good morning. >> good morning, andrew. i do hope to a have some

answers. everpoint, point 72, i think we'll be calling it point 72 because that's what they are calling the flagship long/short fund. but anyway, it's 20 years, actually, after steve cohen founded this firm using his initials sac. as i mentioned, the famous long/short trend fund based in stanford, connecticut. today, we have video of the stone outside their offices, it becomes point 72. it's a family office only managing private capital. this comes after the company was forced to pay $1.8 billion and to return its public investment money. that pact expected to be agreed to some time this week, possibly thursday, is when the courtroom sentencing is scheduled to be. that also mandated that sec establish an independent compliance monitor and plead guilty to securities fraud. so far it appears that life as a family office hasn't been bad for the fund operating mostly on

on assets that belong to cohen and his family. most of the last public investment money wassing with returned. he still has about $9 billion to play with and its performance in january and february were pretty solid in double digits. there will still be more hurdles to come even after this dramatic change, cohen himself facing failure to supervise charges by the sec, which i'm told he would like to settle. and in the face of the illegal setbacks and employee monitoring, some senior portfolio managers are jumping ship. i'm not say it's because of the monitoring, but it is just a different environment now than it was a year or five years ago. >> and so is he out of the woods criminally? is that the expectations? >> no, he's not. every time someone gets asked about this, he says no one is off hook and et cetera, and they continue to try to turn people. on the sec front, if he

settles that, what does a settlement look like and could it impact this group? >> they are trying to settle this on how far they are barred from investment money. they threatened to bar him from super vising public money, which the sec did anyway. i know cohen and his senior executives would like to do that in two or three years, so the language about that bar is going to be critical. >> so this is not a permanent ban, necessarily. >> no, i think it was a potential ban on trading money, which i'm sure anything is possible, but given they didn't quit that on the table to start with, i doubt they are going there now. but that would obviously be devastating for him. he's known as the hands-on manager. >> kelly, thank you for that. >> thank you. >> point 72. >> he has 9 billion in assets right now. and, you know --

>> you can't really use devastating in any contact. >> he wants to trade this money. and if he enjoys it, that's what he's good at. you wanted to watch -- >> can you read the tape for march madness like you do for stocks? dennis? >> only nate silver. >> he didn't do very well. >> no kidding. >> i was actually surprised. >> he went to nc state. they won twice. only 35 teams have ever won. and like ucla won 11 times. and kentucky won 8 times. uconn keeps whipping. >> we have debriefs coming up. >> i know. we had the 1983 win. anyway, two teams gaining momentum. dave briggs will be on to tell me who has the edge tonight. anyway, we'll be back to talk about the masters, too.

we cstantly evolve to meet your needs every day of the week. could save you fifteen percent or more on car insurance.s everybody knows that. well, did you know bad news doesn't always travel fast? (clears throat) hi mister tompkins. todd? you're fired. well, gotta run. geico. fifteen minutes could save you fifteen percent or more.

pcentury link provides reliable yit services like multi-layered security solution to keep your information safe & secure. century link. your link with what's next.

♪ uconn and kentucky are going

head-to-head tonight. david briggs is here, uconn has already won three times and kentucky has won several times as well. >> he is now looking like a genius. >> i don't know what to do. >> this is before the sec. >> it has the nine right there. >> wow. the bracket we have here with tv news has been stuck for the last, like, five -- i've been stuck at 12 because nobody has kentucky. because, i don't know. it has been frustrating. kentucky i watched play this

year. i didn't think they were very good. >> they lost so basketball games. >> louisville beat uconn by 60 points. 81-48. >> they also lost to houston. >> yeah, to houston. >> if you watch kentucky late and if you know the talent they have, you shouldn't be shocked they're here. they made t-shirts that said 40-0 because the talent was so incredible. but they're not stunning. uconn is. if you had them and you live outside hartford, connecticut, you're a genius. nobody saw that coming. >> why? >> shabaz napier is about all they have. deandre daniels has proved to be a tough guard. this was a team academically ineligible. >> they make florida look like -- i watched that. i had florida.

it looked like florida's defense was on itself. it was like pulling teeth for them. >> really shut down scotty. look for him to do the same thing against these harrisons. shabaz can knock them down. they beat michigan state and florida, the two best teams in the tournament. by all accounts, the two best top to bottom too. >> wichita state was good too. >> wish ta state. kentucky has more talent. the least sexy state in basketball, free throws. 86%. the top 10 of the nba for individuals. forget about teams. >> i spent the year yelling at the tv stet. can't anybody make a free throw? >> no, they can't. they don't care.

>> kevin ollie preaches it. >> i watched some of the ladies yesterday. >> i cannot, i do not -- >> be careful. >> go ahead and send me the negative e-mails. >> notre dame was amazing. >> two undefeated teams. uconn can win the men's and national titles in the second time in a decade. it happened in '03-04. two undefeated teams. tuesday night, maybe i'll watch. >> undefeated for the ladies. they can play. i watched them. they couldn't hit any free throws. >> you're die hard. >> no, i'm not. >> i want to talk about tiger woods. >> that's too bad. >> it hurts the prices. tickets are down 20%. >> i watched kucher.

did you see him hit it into the water? >> matt jones. hit it into the water. >> i didn't see that. >> kucher will win the masters. the other is jordan spieth. >> he's very good. >> he can golf his ball. >> he's not phased by the pressure. he's cocky. he's 20. with tiger out, this is the dream story for the pga. cocky young kid. >> graeme mcdowell. >> that would be my choice. >> he's going to be on. >> are you going to get some tips? >> i saw some pictures of me playing. i have a lot of work to do. i'm all hunched over. i look at the way these guys finish. i have to finish high and strong. i have to show the world my

follow through. >> do you think tiger gets jack's record? >> no, not a chance. >> not a chance. >> five to break, four to tie. >> even if he does win the record, jack has 22 second place finishes in the majors, an astonishing record in and of itself. >> odds went to 25-1 to break his record. >> no, he won't do it. >> he's so tough. i wouldn't count him out. dave, thank you. >> prospecting for bitcoins. joining us on the set, ed core in chief gerry baker. the state of education, jobs in america. america. [ male announcer ] when fixed income experts...

♪ ...work with equity experts... who work with regional experts... that's when expertise happens. mfs. because there is no expertise without collaboration.

does. prospecting for bitcoins. how so-called mining for virtual currency could get easier. the prospects for gold. the precious metal rallies after the jobs report. should investors expect more volatility? and platinum picks. stocks that could add wealth to your portfolio. it's monday, april 7th, 2014. and "squawk box" begins right now. good morning and welcome back to "squawk box". take a look at futures on this

monday morning. see how things are setting themselves up for the day. can't say it's a good situation. could turn itself around. dow 22 points off. nasdaq down 18 points. s&p down as well. 4.5 points. 10-year, take a look at the 10-year. we flip the screen around. $2.719% is the number. reorganizing management fink planned to be at blackrock for years to come. among those moves, goldstein will take over the role of chief operating officer from charlie howe. >> wow. can't we get all 10 changes, all the names and find out what their old duties and new duties are? oh, we have two hours to do that? good. >> andrew will be on the phone

to run that down. >> by the time you're done, that's how many viewers we'll have, 10. >> at home for those employes, this is huge news. stock trading venue iex may apply to become a fully exchanged stock. the ceo was involved in last week's memorable debate on cnbc. he told reuters his firm has been getting increased interest from clients about such a move. >> shocked that he would get interest in his new product. it is so silly. >> we have that commentary there. g.m. cars. a judge now refraining from issuing an order that would have idled the cars until a repair is made. a final decision could come in a few days.

defective ignition switches blamed for about a dozen deaths. an update on the missing malaysian flight 370. australian navy vessel picked up two extended signals from deep under water in the past 24 hours. authorities said was the best lead yet in the search for the missing boeing 777. the pinger locator in the indian ocean picked up signals from that of a flight data recorder. could still take days before investigators can confirm if the signals did come from the plane. we are joined by another special guest host this morning. gerry baker is editor-in-chief of dow jones and the wall street journal. dennis is still with us, founder of the gartmin letter.

what it means to me on a daily basis, i get pummeled with spin to the point where i'm questioning everything. and i get this finally. and i feel like maybe, maybe there's something. >> thank god you don't have to question. >> i mean, i like the op ed. sometimes i think the reporters are not necessarily. >> for the reporters and not the editorial page. >> you have some work to do. >> we play it straight. i agree with you about much of the media. we play it straight. i do think there is a tendency, as you describe it. what i read as one, especially financial people interested are interested in financial markets. >> it speaks volumes on the current environment we're in. with the occupy wall street environment. or the wedge issue environment. where basically you almost are questioning whether it's worth

it to go forward and try to succeed when it would be better if everyone were the same and we were all feeling better about ourselves. the utopia that people thinks works. >> maybe see things a little bit different. >> i run the news pages too. >> the assumption is always certain things are bad. you read a certain story in the "new york times". imbedded with it is five or six -- >> he's been defending himself against people that are even further left. >> which is amazing. >> right. >> i have to. >> thank you. >> we're partners. and i'm with you on this. i will defend you on this one. >> thank you. >> there are people much wackier than you. we also have david kelly, chief global strategist at jpmorgan funds to talk about the market following friday's sellout.

david is here. we saw a big rotation out of a lot of different stocks. mainly momentum stocks into value. tech stocks took a big hit. tech sector at its worst since november 2012. i don't know. it occurred to me that if the 10-year were to continue to rally, that that says something about our 3% baked in number that most commitments have. are you starting to question whether the economy is going to go into a higher gear? because assumes it is. i wonder if that's just a given. >> i think it will. if you look at vehicle sales, they were strong 16.4 million. the best since 2007. the employment report, we're looking at it through the lens of a falling stock market. all it said was supply for labor went up and demand for labor went up. i think that's why bonds did okay on friday. it was a pretty good report for the economy.

as we look at all the pieces of demand to the economy, growth should pick up to 3%. it should gradually push rates higher. that still leaves investors with very few places to go other than equities. at these price levels you have to be careful of valuations. >> what has changed -- there's reasons we think we have had five years of below par growth. what has changed to release the shackles that have been holding us back in the first place? why assume we can grow at 3% if all of these things are still peldz. >> we have grown 2.6% on average. it is not great, but that's what it is. what i think hopes us is this year we have not going to have the same fiscal drag. they are going to spend money. the federal government is not going to be dragging on us.

the one thing is capital spending. we haven't done much capital spending. now we are at an new all-time high. if you hire work, you have to get all new stuff. you're done replacing workers. you're hiring new workers. as we look at the pieces, we can see the demand to get us to 3% growth. >> i hope you're right. what that would mean is the fed was able to do all this stuff. and they were successful. and now they're going to make a nice exit as the economy recovers, unemployment drops. they slowly get out. what worries me is it's been a five-year recovery. the yield curve is starting to flatten. not any of you are saying there's going to be a slowdown or recession any time soon. if there were to be a slowdown, i don't know what the fed would do. they would find themselves unable to exit. they would feel like, well, if we were easy at 7% and we start

heading up, they would come back in. they would start adding to qe. >> to get to a u.s. recession, you have to have some excess in the real economy. this is like a yankees/red sox game. it's very long and very slow. >> we always discounsel the yield curve when it flattens and say normally that would mean a recession. but we always find a way to say, not this time. >> the yield curve federal reserve buying -- you just can't look at it the way you normally would. >> you're right. >> what do you think about the yields which dropped so drama c dramatical dramatically? greece can borrow despite their death. what's going on? >> it reminds me of the u.s. situation a few years ago. long-term rates, you have to look elsewhere. i think this is one thing that will help european equities.

at this stage you can buy irish bonds at almost the same interest rate as u.s. bonds. it means when you're a european investor you have to look at stocks also. you just can't make the good returns on fixed income. i still think this helps equities overall. i'm getting a little nervous about valuations as things go up. and also the federal reserve is behind the curve. so i don't think there's going to be a graceful exit. i think there will be acid bubbles and inflation before they're done. >> that would be good. i'm worried the other way. >> careful what you wish for. >> the messy exit for me is they can never really get out. we just assume, oh, we'll be at 6% unemployment by the ownend o this year. hopefully we're right. it is already at a level that anticipates more than just fed action. it's anticipating that the baton gets passed to the economy.

and if it doesn't, i don't know. but i'm going to take your word for it and i'm not going to worry anymore. we won't breach the death cross in the 10-year, will we? >> does he even know -- >> what? >> don't worry about it. just call it a death cross. you'll be fine. have you met us before? i'm joe. have you seen "squawk box"? >> i watch it most days. sometimes when i'm on the gym. there's a couple of good business networks. >> we're corporate cousins. we're still very friendly. >> not kissing. >> i don't enforce that kind of behavior. i'm a huge fan.

>> we had that discussion. i talked to michelle. i said we've been arguing the subpar recovery is because not just the depth of the financial crisis. and i know what people say. previous recessions were because economic activity got too high. they raised interest rates. they're expecting a big bounce off the bottom. maybe the reinhart rogoffs are right. it was just a hangover. or is there an activist government that held us back? >> well, i think you have to go back even further. it is a staggering weak recovery by any measure. we haven't had a calendar year of 3% growth since 2006. it is the longest run i think the u.s. has ever gone that long. you do have to look back further than that. that period of growth we had between 2001 and 2006, that was incredibly artificially

sustained, right? it was a boom. largely by the housing market. the amount of housing wealth that was created and ultimately destroyed in that time was basically responsible for the growth for most of the growth that we had. in addition to which you had significant tax stimulus from tax cuts. so you have had it -- even then, even with that amount of extraordinary stimulus, we had great averaging between 2001 and 2006. we have not had a period of sustained trend potential growth for the u.s. economy, which we used to think of 2.5, 3%. we haven't had that since the 1990s. there is something much deeper with what's going on and much more structural with the economy. that said, i don't think there's any doubt what you said is true. there's a pretty hostile environment for a lot of

businesses. there's an environment of uncertainty. whether it is over regulation, over taxes. i think this is just adding to. this is another pressure on these deeper structural problems in the u.s. economy that have been restraining growth. >> even the '90s we had the internet bubble, which helps us there. when is the last time we had normal, good, solid morning in america type growth? i guess you have to go back to the 80s. >> you could. >> now you're getting to where andrew is where we will never have it again. >> i don't think quite. clearly japan has had 20 years. actual outright. they have demographic problems. >> nobody is supposed to ever have kids again and we're going to be fine. we don't ever want anyone to eat a piece of meat.

>> i have five daughters. >> me too with all the cow farts. now it will be 90 degrees in december. >> we're all contributing to the cause. >> anyway, we have jared. >> it's awesome. anyway -- >> welcome. >> thank you very much. >> coming up, unleashing bit fury. telling us about the next phase for the currency. an exclusive interview with treasury secretary jack lew coming up wednesday at 8:15 eastern time. you do not want to miss it. as we go to break, check out shares of proctor & gamble. an increase of 7%. back in just a moment. just about do it. st a mome excuse me, what are you doing? uh, well we are fine tuning these small cells that improve coverage, capacity and quality of the network. it means you'll be able to post from the breakroom. great! did it hurt?

when you fell from heaven? (awkward laugh) ...a little.. (laughs) im sorry, i have to go. at&t is building you a better network.

welcome back too "squawk bo box". there's the micex, which is lower by now. wow. down 5%. down 3% this morning. a lot of eastern provinces in ukraine calling for a referendum, which would fit an old pattern in crimea. it suggests there will be more activity in eastern ukraine, if you believe the pattern we have seen so much with vladimir putin. and questcor phrma.

$5.6 billion kharb and stock dea cash and stock deal. 30 per share in cash and 30.9 of a mallinckrobt. >> $5 million investment in one of the largest bitcoin mining company. 40% of the world's bitcoins are mined by bitfury chips. out of deep respect for both of them, i will not mention their last names. >> you can pronounce your own last night. tell us what this ship does. for those uninitiated if you

will. >> this is a custom design. >> that's a chip. >> it's teeny. that thing can mine? >> hold steady. it is doing only one thing. >> come on. that's all. >> it is mining new bitcoins. >> yes. it is mining new bitcoins. if you send money a to b, it goes through these chips. >> how big a market is this for your chip? the reason i ask is supposedly from what i understand, only 21 million bitcoins can ever truly exist. and we have 14 out there?

>> 12 and a half. if you were to predict out in five years, will all 21 million exist? >> no. it's going to be another 15, 20 years. when i met val, the first thing i asked, what are you doing with the chips? ohio do you ship it? he looked at me like am i silly. we are chartering boeing 777 and going to iceland and finland mining. this chip will be obsolete in six to nine months. we have a big chip coming out later this year. >> is it in the charter? >> the charter can change. >> 51% of people in the community can go in and change it. >> that changes the will whole

deal. >> it is supposed to be a floating currency. but if you can change the total amount of currency, then it can basically be a currency. >> the fact that you have had governments go in and print money. here you have the power of a community go and step in and decide what to do. the bitcoin, we vowed the need is profound. 600 billion in fees. this is the money going to park. >> when you make the investment in these chips, what type of consideration do you make for the idea? there are critics that suggest it will get effectively regulate out of business by certain countries. >> regulation is good. it is fantastic. we need the regulation.

look in '93 and '94. >> it exists, though. >> this country is based on innovation. regulation is a very important part. >> tax laws would have to change. >> the world is changing. tax laws is part of it. >> you would hope it wouldn't be taxes as property. >> exactly. we are engaging our legal counsel to be part of the discussion. winston churchill said the best way to get excluded is not to be at the negotiation table. >> these are purpose built. >> yes. >> to the another virtual currency comes around, can they be switched around to make the kernan coin. >> you can use the bitcoin as well. >> for others? >> absolutely. >> we have a team of engineers

looking at what other currencies are there and positioning ourselves. >> how much does the chip cost? >> a few dollars. >> it is proprietary informat n information. information. [ male announcer ] how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.

with investment information, risks, fees and expenses they're the days to take care of business.. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next.

coming up, prospects for gold as we tap into the platinum portfolio. we will see stock picks from louis navalier. an upstart. gotta get going. gotta be good. good? good. growth is the goal. how do we do that? i talked to ups. they'll help us out. new technology. smart advice. we focus on the business and they take care of the logistics. ups? good going. we get good. that's great. great. great. great. great. great. great. great. great. (all) great! i love logistics.

e financial noise financial noise financial noise financial noise

welcome back to "squawk box" this morning. in the headlines, questcor is buying ireland's -- how do pwe with he pronounce this? mallinkrobt. dow component psg increased by 7%. that is up from the prior difficult end just over 60%. captain america topping the weekend box office. $96.2 million. a record for april release.

>> what is his -- >> power? >> do you know about the shield? >> i don't think he hosni. >> he just jumped from eight stories. >> he's captain american. he's american. that's what it is. >> based on capitalism. >> this entire movie he's been under cut. you are his kryptonite. thank you. let's check for the price of gold. gold got a nice bump. frank holmes of u.s. global investors is here with us also. founder and editor of gartman. you are in charge. editor-in-chi editor-in-chief. >> just call me chief.

>> in general, i've known you a long time. you just love gold. you have never really thought that gold should not be in a portfolio, right? >> i've always advocated 5% gold and 5% stocks and you rebalance each year. i never advocated that the world is coming to an end. you bet on winning. >> why the physical 5% versus 5% in the portfolio? >> gold jewelry is a key factor. i call it the love trade. it is coming out of asia. that's where the gdp has been growing. >> why different than anywhere else. >> if you bought it in the last few years you feel silly. it goes up. it goes down. >> you can look beautiful. your wife is going to be

spectacularly happy that you just bought her a new gift. >> now you are appeal to go a different thing. >> it's 60% of the world's demand. we are seeing big bricks going to switzerland, melted down to small coins and wafers. >> you can make the same arguments for coats. >> gold lives forever. it is malleable. >> it's not a big problem. most gold guys do not use the -- they don't think gold needs a usage to be valuable. >> true. >> it's a currency. >> it's a currency. >> look at the buttons. >> the buttons? >> yeah. >> how british. >> please.

>> i think the important part is the fear trade dominates here and in europe. any time there is an imbalance, fiscal monetary policies and negative real interest rates we get gold rising. >> would you say it went to 2,000 based on the world's printing of money the last five years? then it stopped going up once it became clear there was inflation with it stop printing. is that what happened? >> there's a combination of that period, of that point of the currency being devalued, of the debt ceiling in america. and you have the beginning of ramadan. 35 years of data starts to rally in the summer and goes to chinese new year. so you have the beginning of this season to the summer and go up two standard deviations. it was due for a correction. i think on your program it was said it was due for correction.

>> i guess we don't believe world war iii is a possibility. we will never respond to russia. he invaded a country. he's taking territory. it doesn't go anywhere. we have red lines all over the place. >> there's a five-year negative bonds. by december it was plus 50 basis points. gold had fall tprepb $1600 down to 1100 stkpwhrfplt right. >> all of a suddeneer at negative interest rates. crp looks like it is breaking out. up 20%. now up 15%. it's really important when you look at the trade, our negative interest rates. what will the government pay you overinflationay rate. >> so you think you can buy it and just hold it. >> no. i'm a trader. i have no allegiance to gold. sometimes you should own it.

sometimes you shed it. sometimes you need to own it. sometimes not. i don't care a wit about gold. >> everybody was testified what the federal reserve was doing. it was going to produce rampant inflation. bank of england was doing the same thing. bank of japan went through a round of it. it hasn't materialized. on the brink of deflation now in europe. japan is struggling its way maybe just into some positive inflation. in police station rates falling in the u.s. >> short-term. short-term i believe it's began. it's important gdp was accelerating. has slowed down. gdp per kappa.

gold run on fear.

literally fear. poor government policy. this whole economic boom shifted the demand. negative news on heating kay care the past three years and obama care. guess what, best performing sector, health care. it's important to recognize one is where is the money going. from that end, lots of opportunities. >> all right. >> all right, holmes. i didn't do that at the top. >> i'm disappointed. >> but i did at the end. >> coming up, "squawk box" launching a new series. platinum portfolio. top investment managers will share stocks with us. the first member of is louie navellier. on wednesday, exclusive interview with jack lew only on "squawk box" wednesday 8:15 eastern time. me. aflac.

♪ aflac, aflac, aflac! ♪ [ both sigh ] ♪ ugh! ♪ you told me he was good, dude. yeah he stinks at golf. but he was great at getting my claim paid fast. how fast? mine got paid in 4 days. wow. that's awesome. is that legal? big fat no. [ male announcer ] find out how fast aflac can pay you at aflac.com.

[ male announcer ] find out how fast aflac can pay you at your ford dealer think? they think about tires. and what they've been through lately. polar vortexes, road construction, and gaping potholes. so with all that behind you, you might want to make sure you're safe and in control. ford technicians are ready to find the right tires for your vehicle. get up to $120 in mail-in rebates on four select tires when you use the ford service credit card at the big tire event. see what the ford experts think about your tires. at your ford dealer.

hi, are we still on for tomorrow? tomorrow. quick look at the weather. nice day, beautiful tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. what a day. can't wait til tomorrow.

yahoo! is raising ambitions in online video. it plans to acquire the programming that typically winds up on places like networks. reporting that yahoo! is close to ordering four web series. unlike in years past, yahoo! isn't look for originaling but 10 episode half hour couple days ranging from $700,000 to a few million dollars. they will be held by writers and directors with experience in television. they want to blow it out big time. we still don't understand. >> i don't understand. >> they are trying everything. >> they wanted to be a media company. they wanted to be a tech company. >> a lot more people now watch video on their tablets than they

did way back when. >> you're right. >> i'll tell you the difference. alibaba has finally given yahoo! breathing room to experiment and do stuff. >> the ipo, they have to get rid of a lot of that. that's what happens. that's why they are trying all these new approaches to tide them over when it happens. >> we will see. >> an all-star club of stock pickers. lieu kwraoeus navellier. his flagship the touchstone cap group is among the top 20% of preservation is at 30% the past year. he has over $2 billion of asset management. the average length of his holdings, 13 months.

he said he is looking for high octane stocks to spice up his portfolio. sounds like a dating show. good morning, louis, nice to see you. you know those ads i have heard other people talking about. haoupl by spicing up a high obtain portfolio. >> all the stocks i pick will have 35% sales growth this past corner. growth managers like me live quarter to quarter. we have a great buying opportunity now because of the tick that happened recently. >> let's get to the holdings. vips operates an online discount retailer for various brands in china. >> should be up 109%. earnings up over 240%. >> up 340% in one year.

there's more to go? >> oh, plenty. plenty. trust me. it's a great buy near term. >> in china, there seems to be doubts about the numbers sometimes. >> that was four companies in deloitte in china quietly done with the sec. i prefer reading financial statements. they're a little cleaner. >> matador resources. should we let that one go? >> we could have a conversation about that for now. >> matador resources. mtdr? >> that's west texas. they are fracking and having a lot of fun with oil and natural gas. >> 58% in the last six months. 200% in another year. it looks like performance

stocks. maybe it mimics that. >> what it is is great risk adjusts. i calculate risks. all these stocks have pulled back a tad. they're at the low end of the range. very good near term buys. >> in your portfolio, are you always long, 100% invested? do you cut back at times? >> we have pockets of cash. stock picking is a lot harder these days. it is much more narrow. late last year was the top 25. a year ago you could buy top 40. the markets got more narrow. the market is like a race. as it goes higher and higher it tends to thin out the leadership. they have 30% sales growth. >> activist too. >> sit a pharmaceutical company. a big one, safe one.

there's a lot going on request questcor's news today. it is running amok. sayles and earnings are there. it's easier to take a pill than workout. >> i want those aoe electrodes i can hook up to my abs and they stimulate them. i don't want to do sit-ups. >> marty has been on it. he was down at much lower levels. that got up above 200, right? >> i've had the stock for quite some time. it is the safest i have recommended. >> go ahead. >> activist is concerted. this is an aggressive stock. >> are you nervous? >> no. >> who are you most worried

about? >> in the platinum portfolio. >> i stacked the odds in my favorite. they will blow out earnings. we will see where they are three months from now. >> look behind you. is that reno really? >> we're in sparks. that's a pretty picture. >> there's some stuff going on, andrew. can you see what's happening behind him? imagine what's going on in parts of reno. that's early. gambling and just debotchry. there's mountains. there are crazy -- >> there's gambling? >> do you live there, louis? >> i have a home here. i have a home in florida. my business is headquartered here? >> why do you live in florida? >> the same reason i live in nevada. >> low taxes.

good to see you. really appreciate it. >> he's been around a long time. why is real estate in florida going to go up? the guy said i have three reasons. maduro, deblasio and kerschner. >> andrew, you know what our ideas were. we got nervous. chimps throw things. you wanted to give a chimp darts. what you don't know -- go to the screen for a second. see behind you? we have the last one. it might be the chimp. >> i don't think it's a good idea to give a chimp darts and

be in the same reason. >> plastic darts. >> this is a wall street journal tradition. >> it came out quarterly. >> yeah. >> that would be ratings gold. >> diaper. >> diaper part is fine. there's other diapers at this table. we will leave it there. coming up on the next hour, the platinum portfolio. i'm talking about my sons. we will talk dividend stock picks outside the united states. "squawk box" coming back in a short moment. tomorrow, two hours with sam zell. real estate, the economy, activist investing and a lot more. plus, it's day two of platinum portfolio week on "squawk box". we'll bring you invest ideas from oscar schaeffer and tech

picks from kevin landis. starting 6:00 a.m. eastern tomorrow morning on "squawk box". box". peace of mind is important when you're running a successful business.

so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next.

welcome back. jerry is the editor and chief of the wall street journal. we have not talked yet about is the story that keeps on giving. michel louis was on the "meet the press" over the weekend. >> i'm going to get in trouble for saying this. >> you will.

>> i'm a believer in high frequency trading. >> why are you going to get in trouble. >> you can't belive how many times people attack me on the internet. it gets quite ugly. i'm a believer. they have stepped into the place in the specialist system that has all but disappeared. it is a fair shot. people forget a mere five to ten years ago, if you were buying 25, it was 25.25. >> now it is 25.01. >> you won't say what you said off camera. >> which is what? >> you came to a different conclusion. >> i've been trying to understand this. >> you are saying you don't know for sure you're front running because there's a bet -- >> we talked about it. >> i don't know enough.

>> michael's position is that somehow you know the trade before the frayed is made. >> no. >> that's the way it's been portrayed. >> they will do a number of things around a big figure. somebody puts in 25.001, they put it in for 10,000 shares expecting the 25 bid is large enough that the loss they will sustain they can always hit the 25 bid and lose nothing. if they get one bid at 25.02, they will hit that. >> they have them collect the huge -- >> >> here's what is very good. >> it has lowered costs dramatically. >> 40% is dark pools. should some of those be lit up? there is no price transparency.

>> i know what the price is on the exchange. the park pool will not be manifestly different. it's not going to be different at all. >> my ex -- people don't appreciate it. that's just what it is is. >> to pile on the rigging acquisition. >> i think the rigging was the choice. >> look what happened to michael. >> he was very upset he did not make a lot of money on the football book. he sold that movie for very little money. we interview him on power lunch about it. you have to come out swinging. >> if you buy apple at 90, is it rigged? >> it's 90.001. >> i think there's more questions. it's a great book.

>> he's a great writer. >> if you want to educate yourself about the business, even though some of it is too much. it is much more knew answered. >> but it sells books. that's the intention. it has gotten too much coverage. >> they will invite you now to take the other shot. they're looking for people for occupy wall street to hate. >> jpmorgan wells fargo reporting on friday. we talk to big banks. ♪

♪ [ male announcer ] help brazil reduce its overall reliance on foreign imports with the launch of the country's largest petrochemical operation. ♪ when emerson takes up the challenge, "it's never been done before" simply becomes consider it solved. emerson. ♪

afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.

squawk goes platinum. top investors pick for the squawk platinum portfolio. dividend stocks outside the u.s. >> earnings season is here. jpmorgan will lead off on friday. first, what to expect from all the big banks. mike mayo will join us on set. plus, security vulnerability that could put thousands of atms at risk. we'll tell you why the older machines may actually be safer.

the third hour of "squawk box" starts right now. welcome back to "squawk box" on cnbc. becky quick is off today. our guest host is gerry baker, editor-in-chief of the wall street journal. more from gerry still ahead. first, michelle caruso-cabrera has your headlines. >> jrk. jerk. junior k. g.m. cars recalled to replace defective switches will remain on the road for now. the judge refrained from issuing an order to idle the cars. it originated with two owners of

one of the recalled models. since february, g.m. recalled $2.6 million cars equipped with the switch. australian navy vessel picked up two extended signals in the past 24 hours. authorities say it is the best lead yet in the month-long search for the missing boeing 777. it picked up signals consistent with those of a flight data recorder. it could still take days before investigators can confirm if the signals did come from the plane. shares of questcor pharmaceuticals are soaring in premarket trading. a cash and stock deal worth $5 million. 86.10 doctors. the big prize is this questcor's best-selling drug to treat

autoimmune diseases. u.s. equity futures will suggest we see a lower open. not by much. you might see a rebound. overseas in asia, due overnight. lower in japan. and hong kong, shanghai higher three-quarters of a percent. >> ahead of first quarter earnings. joining us is mike mayo, research analyst. he is not metabank in that he does not hate. set the table for us this week. i see you've brought props so you can help us here. >> i have my stock certificate for citigroup that will allow me into their meeting april 22nd. # we start with the annual meeting tomorrow. investors are angry is the main theme. you are seeing more aggressive investors. you see it in the pace of activists whose actions have doubled. you are seeing it with the largest with blackrock, which it

beefed up their units. the bank index is still at the lowest level. the same level at 1997. i know they rallied the last year. >> throw the bumps out? what are you trying to suggest? >> you were talking friday frequency trading. different side of the same coin is the investors are angry that the management isn't doing enough to protect the investment. that goes to the boards overseeing the management. in 25 years, management teams come and go. one constant are the boards which are ensuring they have the right people at the right place at the right time. >> should they become smaller? what should they do? >> a lot of times they should be

shedding assets. one clear message from the federal reserve. that message is simplify. downsize. you see the tax they are putting on the largest, most complicated. take an example keycorp. i looked at my report and it reads pretty much the same as my report today. over two decades, stock is down one fifth while the s&p has gone up four times. they're still in 13 states from maine to alaska. it's ridiculous. and the new ceo is doing a good job. the stock price has gone up. they streamlined. as far as a radical restructuring that's what they need to do. >> they have made the case that the regional banks trade much higher than the big banks. what they will figure out -- and the market is going to pressure them. people like you eventually to restructure and do exactly that. it seems it is taking a long time. >> the annual meeting is tomorrow. seven years ago they pursued a

merger saying we will have higher profit margins. it is the lowest in its peer group. it seems under optimized. why not sell it off? they're about is the same size as state street and blackrock combined. but that by proxy earns stwaoeus as much money with 20% less employees. i don't think they are as efficient. >> walk us through. we will see citigroup and jpmorgan. what should happen there? >> in the case of citigroup, yeah, i recommend the stock now after having had it put on in 2007. they need to claim victory and this defeat from the federal reserve. simplify. processes. >> you say kick them out?

>> he is a breath of fresh air. you have the hedge fund management. you have the fbi and everybody else investigating. >> he needs the get the right team in place. the people responsible are the cfo. he should be fired. or vice chairman. whatever it takes to get the right team in place. >> i'm right there. >> you mean they should pull out? they are very, very large international overseas assets, right? >> citigroup has a big change here. they are managing as a portfolio of businesses. they told you that. take the bottom one fourth of businesses and geographies and restructure or sell them. take the citi holding units. hit the trigger to sell off some of these more aggressively than they have done. >> okay. jpmorgan. you have a problem with jamie

dimon. >> lieu at the stock price from the day he became ceo. he ranks number one on the list. he has protected shareholders interest. >> i see something coming here. >> well, you have to hold the top people accountable. jpmorgan paid a $13 billion fine to regulators and gets a 74% pay raise. maybe he's worth it. maybe he's not. we can have that debate. who is going to pay for that? >> the reputation in the industry. that's why investors hate you, joe, and they don't hate michelle maybe as much. but the whole industry takes it on the chin. >> are you faulting him for paying it or presiding over a bank allowing him to be hit with it? a lot of it i see as a shakedown. up can't fight city hall. in public and not in public, he

said there's no way around it. i'm doing what i have to do. i don't think it was commensurate with the bad acting at the bank. i think it was just the times that we're in right now that allows you to be shaken down for that amount of money. he probably made the right choice to get it out of the way. >> even if i agree of the shakedown, they weren't let off the hook. >> should he resisted and said take me to the court? >> the board should have held him more accountable. it's like a great message fund manager. jamie dimon is worth a lot more during good years. >> 74% pay increase got him half of what sandra bullock made for "gravity". >> but that was a good movie. >> all right. whatever. left with a good fastball makes a lot more than a ceo. >> you need to be pragmatic. i agree.

is the industry being held to a higher standard? why are technology companies let off the hook? >> if i was running a bank i would give my application at a media company can, wouldn't you, andrew? >> these days media makes three or four times what financial guys make. they also get to hang out with starlets. >> i go back to my opening comment. the bank index still at what it was in 1997. the long-term record is lousy. the board of jpmorgan, citigroup. >> you're tough. last week they repositioned to have a whole new range of successors as opposed to jpmorgan. one of the key jobs of the ceo is to make sure you have adequate succession. and right now jamie dimon, for all the good things he's done,

he hasn't ensured squat success. i don't think he's going anywhere any time soon. >> do you want to go private? to me it's no duh. without somebody breathing down your neck nearly as much. >> one of the drivers is to push out more risky. that is a silver lining. revenue growth in the banking industry should be the worst it's been in eight decades. revenue growth is lousy. loan growth is lucy. the silver lining -- big banks are forced to de-risk and de-lever. but the silver lining is the banking industry is going to be some of the lowest risks in a long time. still have more capital than the last down turn. >> i don't know why i defend jamie dimon. i never get invited to that

stupid dinner that you and becky get invited to. >> i get invited too. >> you go there and rub elbows. i don't even get an invite. i don't want to go. >> who was the baseball player that was there this year? >> mike made a clinic -- get it? >> and an analyst and a gentleman. have you heard that one? >> i get that one. >> before we take a break, i'm the only one asking the questions. look at questcor. what is the price they agreed on? it was just at 91. do you remember what you said the price was? 86. why go to 91? >> because somebody -- >> no. it's a done deal. and kay. look at millinkcroot. we're valuing it on clothes.

>> half the people are liking that. >> they like both. now it's worth more than 86. it's a cash and stock deal. that's what i was doing. >> i was wondering what you were doing. >> yeah, me too. >> yeah, coming up. much more from the clinic from mike mayo. that's funny. wall street journal edit editor-in-chi editor-in-chief, gerry baker. >> and the new next member of our portfolio series, bubbles. no. know what the experts at your ford dealer think? they think about tires. and what they've been through lately. polar vortexes, road construction, and gaping potholes. so with all that behind you, you might want to make sure you're safe and in control. ford technicians are ready to find the right tires for your vehicle. get up to $120 in mail-in rebates on four select tires

when you use the ford service credit card at the big tire event. see what the ford experts think about your tires. at your ford dealer. e financial noise financial noise financial noise financial noise

let's get back to our guest host. gerry baker editor-in-chief of dow jones and the washington street journal. what are you working on for tomorrow? can you tell us anything? at the journal. >> i can tell you what's in today's paper. it's tuff 'n uff keeping track of today's paper. >> we want tomorrow's news. >> we want to know what's in tomorrow's papers. >> i can tell you -- no, of course. we have lots of big stories that

we're working on. ukraine is going to be a big story. michelle was talking about that earlier. there's going to be a lot of focus on that. we have a great story today about how sanctions, these sanctions are ultimately -- >> worthless. >> -- meaningless. we have an example of a guy in crimea with his company. he's been basically untouched. he's not even on the u.s. sanctions list. >> what's happening in ukraine today? there's unrest there. they are calling for a referendum. what i see is eastern ukraine is lost. and nobody cares. >> yeah. i guess it looks like that. he got in trouble for comparing with hitler just recently. that whole play back of we're acting on behalf -- in order to protect the minorities. >> they're going to hold a

democracy in the same way. >> let's get to this. one thing i'm gratified is you and piers morgan are both from the same place. and you seem -- >> more rational? >> yeah. i like you. clinton freezes -- let's -- you think republicans win the senate in 2014? there's a lot of time left. >> there's a lot of seats that seem to come into play in the last few months that people didn't think recently were in play. you take defending -- >> he gets pretty lucky as we get closer and closer to election dates. we can talk about hilly. she's going to have to recuse herself. because as -- she went to wellsly. she could back bill deblasio and you would still back here.

>> if she had won instead of president obama -- >> you seem to be surprised that she has frozen everyone out. people say is she going to run? fish have to swim. a bird has to fly. any question in anybody's mind she is going to run? >> there are those close to her, we reported this in the past -- >> that's a cover. that's b.s. of course that's what they do. >> exactly. >> that's incredibly ambitious. >> she brings on the right. you keep saying she's not running. she may not run. and then the attack dogs start. >> they asked for her biggest accomplishment. she was like everybody else. what is it? do you have one? how about a senator or secretary? >> we reset relations with

russia. >> i don't know. people think he's edging towards it. there's a lot of people who really want him to run. you know that's where a lot of money would go instantly if he decides to run. >> messed up. >>eo. i don't think that's over yet. i don't think christy is over. >> the most talented politicians. >> you do? >> there will be all these inquiries. >> it is 'em bullet attic of him. >> he's a very resilient politician. he does remind me of bill chin in some ways. he has the ability to connect with people. >> great insight. >> bill clinton in my eyes, his stature, i don't care what he did. he at least understood where jobs come from. from the private sector. he didn't think you could plan your way into 4% growth.

>> he performed welfare in a dramatic way. >> actually, to be honest with you. >> sure. >> i totally, totally agree with you. >> in hindsight. >> he was the ultimate. >> so it could be a bush/clinton election. >> wouldn't that be amazing? 24 years after the first one. >> does it feel like a monarchy? does this look familiar to you. >> you have overthrown all of this temptation. in britain now they have really family connections. >> nobody necessarily wants to go into this dirty business, though, and what it takes to end up president. you really have to get into the muck. >> yeah. you have to have a particular type of personality. >> you probably wouldn't want all that as president. >> paul ryan, is he too young?

>> he's incredibly smart. people like him. but i think he's maybe part of the issue you're describing there. does he really want to go through that process? >> he's got a great family. >> with ryan. ryan thinks there's a lot he can do in the house. there's a lot more he can do. he has his budget. he has a way to go. >> anything to rand paul or ted cruz where a lot of people say you have run moderate. the right wingers can't win. everyone remembers president dole. >> president bush 2000. bush ran as a conservative. he was seen very much at the time as a moderate. he was trying to reposition the past. i'm not sure about this argument. bush senior won in 1998. edging away from ronald reagan.

so whenever i get a little bit nervous when i hear people say the reason we didn't win. >> thanks. >> coming up, we'll preview tonight's national championship game between kentucky and uconn. is the pace in job growth enough to boost economic growth. what top economists are saying when we return. when we return. security solution to keep your information safe & secure. century link. your link with what's next. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ]

...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ cozy or cool? "meow" or "woof"? exactly the way you want it ... until boom, it's bedtime! your mattress is a battleground of thwarted desire. enter the all-new sleep number classic series. designed to let couples sleep together in individualized comfort. starting at just $699.99 for a queen mattress. he's the softy. his sleep number setting is 35. you're the rock, at 60.

and snoring? sleep number's even got an adjustment for that. find your sleep number setting only at a sleep number store. know better sleep with sleep number. . time to take care of business with century link's global broadband network and cloud infrastructure. we constantly evolve to meet your needs every day of the week.

welcome back. sports news, uconn defeated top seed florida to go to the final four. napier scored 12 points, including two free throws to help uconn pull away from the struggling gators. and the huskies are going to face kentucky, who advanced in dramatic fashion. i don't know. i kind of fell asleep. i didn't see it. defeating wisconsin. aaron harrison, a long three-pointer with six seconds left to give the wildcats a one-point lead. wisconsin's trayvon jackson had a last second chance for the win as the buzzer shouted. but rimmed out.

did you see our buddy different? >> i did not. >> at the game in dallas in the wisconsin cheering section. j.j. watt to his right, russell wilson to his left. and it wasn't photo shopped. >> as it would be. >> all three wisconsin guys. >> second straight time that guy did that three-pointer on the buzzer. kentucky. amazing. >> he had a single three-pointer earlier. >> job growth bouncing back. will the pace be enough for economic growth. economic growth. announcer: where can an investor be a name and not a number? scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office.

they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates.

"squawk box" this morning. some markets -- we're looking at a different different. nasdaq down three of the past four weeks. slid more than 5% in one month. takeover due in the pharmaceutical this morning benefiting both companies. millinkcroot is buying questcor

for 5 billion bucks. it is best known for top selling drug apcar for autoimmune diseases. they are both up. it is cash and stock. >> we're watching shares of pandora. the company is positioned for better profits than analysts expected. joe will be joining. >> i've been listening to a lot -- i'm in the joni mitchell thing. i don't know why. but i am. >> i could drink a case of you, right? >> he was buying cds and 8

tracks. >> cds, i was in l.a. talking to the head of universal media. in some markets, cds are incredibly strong. >> high quality streaming music. quality will make a come back. >> is mp3 not as good? >> mp3 takes out data and forces your brain to put it back together. the new wave, the new cool thing is high quality lossless files. it is starting right now. >> it is a format? >> it say triangle shape thing with high quality audio in it. it is a triangle shamed player. you download the music. >> is it a speaker?

>> no. it's a player. this report was borne out of a series of e-mails between know and i. it ended, i want you to know, with me saying, chill out. it was late friday by the time we got there. joe was very concerned, as everybody was. >> greenspan said the most important thing to watch is the 10-year. now it's important again. >> i went back and checked all my data. and back through the jobs report. with all the commentary again. and what came in over the weekend. i cannot make a case off this jobs report. i just want to show you the cnbc rammed update. it is an immediate look how a piece of economic data changes

the gdp. unchanged at 1.74%. we knew it was going to happen. the range 1.2% with morgan stanley on the low end among our nine exists. barclays at 2.5%. fast forward to second quarter forecast. 3.4. unchanged with a range of 2.5% goldman sachs at three. zandy, 3.9. the jobs report settles on winter weather disruption. it doesn't tell me what happens to the 10-year. >> doesn't it mean we defer some

of the moderate growth from the first accurater to the second quarter. >> that's probably right. eye first half annualized growth rate of two and a half? >> the thing that troubled me was the story in the journal. this rotation is a defensive play. >> sure. >> i listen to the economist and the market. the market is spelling something rotten in the economic data. >> i said it could be nothing more than something momentum stocks and treasuries so the yield goes down -- you're saying that happened first. the stock goes down first. >> 11:15 it didn't necessarily seem related to the data. i want to ask michelle. one of the things i said to joe

in the e-mails over the weekend was what about the ecb? they're coming in with stimulus. low deflation. >> have you seen european yields? breathtakingly low. spain is approaching the united states. >> u.s. interest rates as well. if you're looking for a reason other than concern about economic growth, what's happening -- >> if you're choosing u.s. versus spain you would go for the u.s. it's lower risk. >> i think the fed saves us. they have an orlandoly exit. unemployment continues to fall. it's all too perfect. if it didn't work that way -- these guys couldn't get out. >> i think they would argue if you look at what happened when they disappoint onned the market

in june and september, they stool think qe and the prospects for qe have a powerful effect on the market. that's what they would argue. if they reverse course the market would do well as a result of that. >> they think -- >> they still think it's out there. you are correct, however, in your quoting of mainstream members saying there's less impact. but it doesn't mean no impact. >> we are goings back and forth on that. it's not actually clear where yellen is taking them. that's going to impact. that doesn't seem to be having a negative impact. >> i think it's gone remarkable well. >> but yellen is very -- she feels pain. if something doesn't go right. >> she'll be back. >> kicking off platinum

portfolio. we'll add another member and get investment ideas for your portfolio. find out why thousands of bank atms may face security vulnerable. on wednesday, an exclusive interview with jack lew. you can only see it here on "squawk box" on wednesday. that's kind of an old shot. >> i'm sure he would love you bringing that up. bringing that . ♪ i know a thing about an ira ♪ and i got the tools ♪ to do it my way ♪ i got a lock on equities

♪ that's why i'm type e ♪ ♪ that's why i'm tyyyyype eeeee, ♪ ♪ i can do it all from my mobile phone ♪ ♪ that's why i'm tyyyyype eeeee, ♪ ♪ if i need some help i'm not alone ♪ ♪ we're all tyyyyype eeeee, ♪ ♪ we've got a place that we call home ♪ ♪ we're all type e ♪ alrexcuse me, should just about do it. what are you doing? uh, well we are fine tuning these small cells that improve coverage, capacity and quality of the network. it means you'll be able to post from the breakroom. great! did it hurt? when you fell from heaven? (awkward laugh) ...a little.. (laughs) im sorry, i have to go. at&t is building you a better network. maestro of project management. baron of the build-out.

you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. and only national is ranked highest in car rental customer satisfaction by j.d. power. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.

this week on "squawk box", we're launching an all-star club of stock pickers to create a squawk platinum portfolio. jim o'shaugnessy has nothing to do with having been on squawk fox for 18 years probably. >> 18, 19. but he has stood the test of time. >> that's quite a picture. very sweet. that's like you're 8 years old. >> chairman, ceo and cio of o'shaugnessy asset management. average return is up 14% one year. 24 in the last five years. average time frame that jim holds the stocks is around 17 months. $6.8 billion under management.

how many stocks did we ask you for? >> you asked me for three, which is a challenge. it's a challenge for us. we're quads. >> do you have a case for them? >> i think so. i think the case i'm making for each of them is very much the same. because we get to them by looking at a model. so we start with a global universe. we first off require that a company be large companies. secondly, we require they be excellent values. we use a value composite of five different factors. not just do they have a low pe, low price to sales. they've got to make it on all of these various factors. >> okay. the composite itself is beaten any individual manager. then we go further and say, look, they have to be

financially strong. they can't do a lot of external financing. earnings quality is paramount. the balance sheet has to be very, very clean. we don't want to see a lot of accruals, gimmicks. from all of those hurdles we then focus on the names with the highest dividend yield. >> that's counter to some of the other stuff you've been talking about. >> we see the world in which baby boomers are getting older, older, older. and they're not getting any return from 10-year treasuries. >> no. >> they're not getting any return from most of the conventional places. they will become much more important to the portfolio. >> i'm ready now. give it to us. >> so, first up, canadian oil. north of 6%.

it feats all these various qualities that i mentioned previously. it's very cheap. >> that is something will go up as the dividend increases. >> sure. it is now north of 6%. this is a good company. >> is it total return? >> so strong. >> starts with six. >> the next would be telefonica brasil. because of all the other factors it can continue to pay the higher dividend and increase its dividend. and ecopetrol on it of colombia. >> i defer for you. >> before we do, just one point. we do think that the nonu.s.

dividend plays are much better priced. for example, in the large stock space, if you're looking at the upper docile on dividend paying stocks for large stocks, they are 18% cheaper than u.s. large stocks. one of the big problems that we find. now, we also use u.s. stocks in here. but the majority of the names in this portfolio are from outside the united states. >> you're not worried about em selloff coming as a result. they were covered in. >> clearly that's a concern. >> yeah. >> and it's one that you've just got to be ready for in terms of the individual picks. >> any government intervention in telefonica? >> that's free. >> you're like the opposite of louie. it is almost like you think the market is -- you're going to

start with 6% and then let everyone else try to catch you. he's recommending stocks up 400%. >> he is a great investor. this particular strategy does not. this is a much more conservative look at basically, look, what happens when we get interest rates going up? we did a study that looked at the returns to a variety of stocks when interest rates are going up. u.s. dividend stocks do not produce rise. i think we have to get ready for that eventualality. >> we're going to remember what you said. >> i know. >> we're keeping track. >> all right. >> see you later. >> thets a whole new concept for financial -- >> keeping track?

>> yeah. >> what will we do for guests? >> coming up, a week of stocks from jim cramer. the names you need to know before the opening bell. >> tomorrow, two hours with sam zell. real estate, the economy, activist investing and a lot more. plus, it's day two of platinum portfolio week on "squawk box". we'll bring you investment ideas from oscar schaeffer and tech picks from kevin landin. don't miss "squawk box" starting tomorrow at 6:00 a.m. eastern. 6, we did a 27-point inspection on your chevy, you got new tires and our price match guarantee. who's this little guy? that's birney. oh, i bet that cone gives him supersonic hearing. watch what you say around him. i've been talking a lot about his procedure... (whispering) what? get our everyday price match guarantee plus a $100 rebate on 4 select tires from your tire experts. chevy certified service.

why relocating manufacturingpany to upstate new york? i tell people it's for the climate. the conditions in new york state are great for business. new york is ranked #2 in the nation for new private sector job creation. and now it's even better because they've introduced startup new york - dozens of tax-free zones where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. see if your business qualifies at startupny.com

s. welcome back. futures are looking down. >> dow jones looks like it will open 12 points. nasdaq off about 3 points. let's get down. to the new york stock exchange and see what jim cramer is going to say about this. >> there have been many firms that i have talked to over the many years. if it is a short. they go up and that says to me that maybe there is something here to act on.

make this application for this thing. you are going to hear shorts say that this whole deal is autonomy but being bought by hewlett-packard. >> jim, your name was invoked by david gregory yesterday. i don't know if you dot a chance to see it. >> no, i didn't. i went to the beach this weekend. it was fabulous. i told david i pretty much agree with pretty much everything. >> i think he took it the opposite way. >> i don't like high frequency trade. >> you endon't? >> no, i don't. >> we have been debating that around the table. >> they have helped reduce costs at all? >> no, they are. i think they are a tax. the prices were coming down anyway. i don't think there is any

instance unless you feel that the rbc or fellow, i think it is pretty self evident that these guys have not helped pricing. it is interesting that charles schwab have been going down. but i thought this was a pretty good job by michael louis saying that listen they are a tax. >> it hurts to have to teams left. it is hard work isn't it? >> i'm going to get them oall right next year. >> my plan was to watch the phillies game. they postponed it because of rain. >> how do you do that ahead of time because of rain?

>> but those two programs, i'm not ,sure. what is it history? how do these guys rise to the occasion. something in the water there. the connecticut game. look, i thought it was over from thewa beginning. but over in the wrong way. it is pretty amazing. i was looking at florida push p pushing around uconn and florida they crushed them. right, i was at the beach. >> it is like kemble woods all over again. it is like taking it all over again. >> was it warm enough to go to the tbeach? >> i went to ocean grove i thought it was warm enough to sit on the beach with a blanket. a nice break from momentum declines. >> the seasonal disorder is hitting hard. >> i had to get out.

>> not. cable down there. >> i'm thinking of kimble woods was a judge wasn't she? >> yeah. >> ♪ >> see you later al gator. coming up possible security v n vulnerabili vulnerabilities? what does it mean for your bank accounts find out next. next. ♪ aflac, aflac, aflac! ♪ [ both sigh ] ♪ ugh! ♪ you told me he was good, dude. yeah he stinks at golf. but he was great at getting my claim paid fast. how fast? mine got paid in 4 days. wow. that's awesome. is that legal? big fat no. [ male announcer ] find out how fast aflac can pay you at aflac.com. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution,

we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. it's the get growing sale from adt. right now you can get $200 off adt pulse for small business and a wireless camera at no charge with a qualifying bundle. woman: when you own your own business, it's a challenge to balance work and family. that's why i love adt. i can see what's happening at my business from anywhere. now manage and help protect your small business remotely with adt. arm and disarm your alarm, watch secure video in real-time, and even adjust your lights and thermostat

wherever you are. with adt, you get 24/7 protection through our fast response monitoring. the get growing sale. call today to get $200 off adt pulse for small business. hurry. sale ends april 15th. i love the convenience of adt. i can finally be in two places at once. helping to protect your business is our business. adt -- always there. they're the days to take care of business.. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next.

this week microsoft is providing security updates for microsoft windows xp. kayla joins us with more. >> hundreds of thousands of atms in the country 95% of those run on windows xp. behind every fasaid there is a computer.

some atm's could be exposed to a security risk. now, that is going to cost up to thousands of dollars per atm to upgrade to a new system. upgrades with deep pockets are paying for support. chase, bank of america, citigroup, pnc are paying for that extended support. u.s. bank says it has met the april 8th deadline. the bigger risk could be if you bank with a regional bank. guys, the irony is that these atm's behind me, run by independent vendors, these run on an older microsoft system but one that microsoft still

supports. so starting tomorrow, depending on where you bank the machine could be safe ar for your money. call them to see what they are doing to support this. so you know that your money won't won't be at risk. >> it is a lot more expensive. >> i had a lot of money stolen at a bodega once through skimming. >> i used the machine and it ended up someone from israel got the codes and they took my money over a period of a month and a half. >> in squaring minds want to know. >> my mother has xp and thinks that she has to upgrade. people think they are going to get viruses. >> see what you touched off here? >> thank you. >> see what you touched off we

are having a wholetice production discussion of the future of xp. >> thank you. come back. great to have you here. our privilege. make sure you join us here tomorrow. squalk on the street begins right now. ♪ >> welcome in. along with jame crim cramer. full week of q 2. after that rough session on friday. ten year stuck around 272.