the left! 2014! it's tax day! who cares about july 4th? this is the real day. "squawk box" begins right now. good morning, welcome back to "squawk box." we're celebrating, of course this tax day. joe kernan and they're not celebrating as much. becky is off today. she'll be back later this week. let's tell what you is going on. we have a huge lineup including ko coca-cola's ceo and robert shiller and nhl commissioner gary bettman ahead of the stanley cup playoffs and we'll also be paying a visit to the squawk set. also two more heavy weights about to check into earnings central this morning. coca-cola getting ready to turn in its first quarter results. that's going to happen right before muhtar comes on.

those numbers expected to hit at 7:30 a.m. eastern time. then we'll have muhtar at 8:00. johnson & johnson expected to report. they're expected to earn $1.48 a share on revenue of $18 billion. after the bell, you'll have to wait for it, intel and yahoo are reporting. you can get the numbers on the closing bell. then on the economic front, hire what's going on. the government is going to release the consumer price index for march. economists expect a slight tickup, up .1%. that is coming at 8:30 a.m. eastern time. we have a lot on the agenda. midnight is the deadline for taxes, right? >> yes. >> are you done? >> oh, yeah. i paid for my auto insurance, er. >> no extension? >> no extension. >> straight. okay. good for you. >> huge bulls eye on your back. >> yeah, for sure. >> you're like one big like tea party. you're like a big tea party --

yeah. you're one of those nonprofit. >> yeah. >> they don't like you. >> no one as. going to rain on your parade today, andrew. no one is going to rain. this is a big day. it's a day to celebrate. >> absolutely. >> this is the true independence day. >> is michelle celebrating? >> i'm throwing atyt. a tax party. >> becky is cute. she's starting to notice. she's starting to, you know, she has some combined. her husband has a pretty good job. she has a great job. >> how much? >> and new jersey is not kind to its residents. it's already warm in florida. it's warm and they have no income tax. >> right. i used to live there. >> do you think we could do the show from florida? >> i have absolutely no doubt. >> how many days a year would we have to do it from florida? >> six months and one day. >> okay. >> we've been looking into the logistics of this.

>> you're, you know, there is another one. another do what i say, not what i do. you're ready in a minute. >> i'm onboard but more for the weather. >> aren't you paying for the -- how much is the old folks home for the horses going to run you, do you think? living luxury? >> you know, i was told that my stables is deductible. is that not right? >> that is priority number one. no more central park -- this guy has his priorities right. >> close down the charter schools and get the horses. >> that's right. >> can i deduct the butler? >> don't act like you don't know. >> or you pay him under the table, right? >> i don't know. >> should we give another run down of the he had lines? we have ukraine headlines. military operations have begun in eastern cities to take control of that pro russian militants.

russia's foreign minister says any use of force could drive pro russian protesters out and could derail talks in geneva on thursday. this comes after president obama and russian president putin had a telephone conversation about the recent unrest in ukraine. president obama urging putin to reign in the separatists saying russia's actions were not conducive to a diplomatic solution. he also warned moscow would suffer further costs for the behavior. there is an attempt to support the weakening currency. the country's political crisis is deepening there and leading to that. they raised the benchmark discount rate to 9.5%. the overnight loan rate went from 7.5% to 14.5%. huge jump. >> i think -- no, i think putin, you know, makes a call and i think he has it on speaker phone and a bunch of people in the

room. and i think they're all going, you know, trying to keep from laughing. and then, you know, obama -- and putin is going like this. then he says, well, yes, mr. president. obviously, we are trying to -- and then everybody around him is snickering and laughing. i think it's a big sort of a laugh fest. wouldn't he do that on a speaker phone, do you think? >> you think the president takes it on speaker? is valerie standing by? how is that? >> i think the president wants to get off the phone pretty quick. doesn't he have -- this is kind of a nuisance. isn't it? redistributing to do. don't you think? >> i was on the phone with him last night trying to get the extension for the taxes. so it was all -- >> they gave it to you, right? >> absolutely. >> as long as you sure you have a bona fide "new york times" employee, don't you get some type of -- there's an exclusion, isn't there? >> there is a couple benefits to that role, yeah. >> let's talk about someone that

we know and love because we worked with him for so long. actually for him, jeff immelt may step down sooner than expected. "the wall street journal" says there are several board discussions about shortening the expected tenure for ge and for the next chief executive it could be 10 to 15 years. it was always 20. i remember jack and then before him -- who was that great ceo -- you remember him. he was legendary. >> my vision of general electric starts and ends with jack welsh. >> according to the report, immelt does maintain strong support of the board of directors. but still he might -- it's getting more likely he steps down before reaching the 2021 year which would mark 20 years for him. among the leading candidates identified to succeed him are lorenzo simonelli who took over from the oil and gas unit last

year and steve bolze who leads power and water. that is ge's biggest unit. they declined to comment to the "wall street journal" about mr. immelt's plans but did say that the board routinely discusses succession planning as part of the possibilities. i can tell you, he was born i think february 19th, i think. 1956. >> i think he was born in -- >> why would i know he was and you're not? i guess kissing your ass never really -- but he was born in 1956, born in the same town just on the sort of nicer part of -- but he didn't -- he went to a lesser high school. >> what do you think is really going on? >> is this about stock performance? >> jamie diamond is also 58. and why we're talking about anyone leaving the workforce at

58 is bizarre to me. there is no reason for it. 58 is the new 38. and 78, how old is larry king? there is enough groundswell to bring him back at 9:00 at cnn. >> this is such a grueling job that if you're saying, you know, i've done this for a while. i'll be up 15 years soon. i'm not sure the job is this -- >> it was a standard thing tore a sooeg for a very, very long time. >> today's version of being a ceo, that much more strenuous than 20 years ago. i think the answer has to be yes. >> i think it's yes. you can fly a lot more easily. you're on a plane all the time in a way that you just couldn't be 30 years ago, 40 years ago. >> do you you this the board is pressing this or he is pressing this? >> that i don't know. you also have to ask about stock performance. >> he maintains, you know, the board does -- they like him. >> i'm not dismissing that.

>> he repositioned the company in a way that a lot of things that were never -- you know, bring in insurance, brought in a lot of businesses. he sh rufrpg financial services and moved into oil and gas more. >> he got rid of us. >> yeah. that is still sort of -- i don't know. >> who do you like as the contenders? >> i don't know any of them. >> i like the italian. >> i'm looking for something to tweet. i tweeted a ronald reagan quote long ago and i had a picture when i met president reagan. i'm going to send this into -- his quote is republicans believe every day is the fourth of july. democrats believe every day is april 15th. that was -- >> i remember that tweet. >> i retweeted that a while back. >> to your friends. you said here, tweet this guy. let's bury this. i said the word ah.

i won't say it again. >> on tv? >> i did. >> he did. >> that's not one of the seven -- it's not even close. cable is not even relevant. you know, i was calling myself that. >> it is a family show. >> yeah. people have been used po on the show and stuff like that. anyway -- oh! time for the global markets report. ross westgate is standing by in london. i heard someone told me the ratings weren't so great for the masters. you know what i think, ross? there are nongolf owe fish nad yoes that watch when tiger is playing. so you get an extra, i don't know. you get an extra 10%, 15% of people that don't really care about the masters. so when tiger is out, you have -- you just have the sort of the core golf -- did you watch? it was great. watching the 20-year-old try to -- and bubba, watching him play. it's at augusta. the worst masters is great. i don't know.

>> yeah. exactly. even bubba was comfortable on the back nine. i tell everybody, joe, if you're really a nongolf watcher, there is one tournament you have to watch every year and it's sunday night at augusta. right? it is the one that is worth watching. >> you know, you people -- you people have some history with the game. and you're what you call the open. we know there is the true open is the u.s. open. but what you call the open championship can be compelling on any given -- you remember jon vanderbilt. >> absolutely. the open has to be ground down a little more. you know augusta, because it's the same course every year. you get to know the nongolf fan can kind of get into that. >> how many courses -- you alternate between what is it six and seven and they're all awesome.

>> it is more than that. it is probably up to nine, ten courses. yeah. this year it's at hoy lake where tiger won not long after his first major title after his father passed away. he had brilliant time play that week. that's where we're going back to just outside liverpool this year. >> all right. good. all right. >> that's where we are with the golf. we can talk about this all day. joe and i would happily do that. equities on the other hand, a little weaker today in europe. you can see declines outpacing advance by 7-3 on the dow jones industrial average. we hit the session low around 20 minutes or so ago. the ft-se yesterday was up some 22 points. this morning you can see we're down 18. about .3% low. it was good news after the uk, annual rate of inflation down to 1.6%. that is the lowest we've seen since october 2009. tomorrow we expect three month average earnings to be up around 1.8%. that is the first time for very

long while that they've been higher than the rate of inflation. consumers might start to feel better in their pockets as well. a good position in the bank of england and the chancellor to be in. the dax is down .6%. snapshot of investors confidence. current conditions came in weaker. they are worried about ukraine. current conditions very strong indeed. the cac bond down .2%. micex down 1.4% at the moment. a number of individual stories we're following today. take a look at those. lo loreal posted drop. demand slowing in north america. the ceo is optimistic. relaunching a bid to reunite spirits. the brewer of miller blaming a slowdown in europe and south africa for fall in beer volumes.

that's where we stand in europe. back to you. >> all right. thank you so much, ross. markets riding high after strong earnings. putting the nasdaq back in positive territory after last week's big selloff. joining us now from chicago is lou green. good to see you, lou. >> how you doing? >> good. so dow up 146 points yesterday. all that concern that we had last couple of weeks. is it over? you know, can we get back to business here? is there more to come? >> i don't know. it seemed to me there was quite a bit of angst from the peak on april 4th to the low a week later is 4%. sure, that was a pretty bad week. it seems the angst was larger than was necessary for it. i think one of the interesting things and the sources of the concern for the market is the divergence, the nasdaq is falling for, you know, more than a month. and that divergence is reminiscent, magnitude is less than what happened in 2000. you recall back then the dow peaked on january 14th and fell

17% over the next seven weeks. and during that period, the nasdaq went up 25%. so that's divergence for you. but i think maybe that divergence, the high flyers and the publicized stocks coming off pretty dramatically, much more than the nasdaq as a whole. probably added to the concern. i have my own concerns. it's five years since the market began to rally over the last three decades. five years seemed to be a significant period for the market to rally. not necessarily a bull market but for observable rallies. >> what do you think is the message in the ten-year yield right now? >> you know, that's a good question. because the ten year is down around 265 right now. when this rally began back in march of 2009, the ten year closed march of that year at 266. so i think that the key for the ten year is inflation and inflation expectations. so when the qe has been on, you know, for instance it started in march of 2009, went to march of

2010, the ten year note yield went from 266 up to 382. by the time bernanke started hitting at jackson hole in august of 2010, qe-2 was on the way, the ten year yield was down to 247. then it rose as -- you know, during qe-2. qe affects the ten years in the way that maybe this will help the economy. maybe we should start to price in more inflation. and, therefore, you know, the yields go up during qe and once it is done and maybe there is a little disappointment in the results -- >> it is telling us the economy can't lift off on its own? >> i'm telling you the economy has not shown the ability to create inflation. during this rally, the gdp has been relatively anemic versus other five-year rallies. less than a 20% increase during that five-year time and nominal gdp. inflation, you know, the pc core

which is the best of the forward looking, at 1.1% is just a couple tenths off the record low. ten-year yield at 266, that is relatively narrow to the pc core but not absurdedly so. >> thank you for getting up early. >> thank you very much. >> this is cool. >> check this out. are you looking at this? do you see what is going on? >> you know who you look like? >> we have google glasses. >> i don't know who that is. >> i'm wearing -- frs force. >> star trek. >> remember lavar burton with the -- >> yes. is carl definitely assigned to stay on "squawk on the street"? so he's stuck there? to be able to just go like that, i mean it is so viable. what can you do with that? >> is joe naked right now in

your glasses? >> i don't want to tell you how i'm looking at. >> do you blink? >> you have to talk to it. okay, glass, take a picture. take a picture of joe kernan. >> can you say -- >> i got a picture of you right now. >> can you say youporn.com. >> okay. redtube.com. >> janet jamieson. oh, my god! oh, my god! >> another one of your hall passes? >> this goes on sale at 9:00 a.m. eastern time. >> can't you get anyone in the current -- like the 2000s? god almighty. god almighty.

it is time now for "executive edge." it is all about google, google glass to drones to contact lenses. i think these may be passe. sort of behind. this morning we have a pair of google glasses, the wearable pair of technology that has silicon valley buzzing. they're selling them for $1500 each to the public. you can try to order them online starting at 9:00 a.m. eastern time. it's a limited thing. i think the sights, you know, people can rush to the site.

>> you do not look bad in those. they have done better with the style. >> i feel very -- i don't know if it's a good style. i kind of feel like spock. >> you have to get jodie laforth. i think he was blind. >> right. >> the character. it is a little bit -- that is a little bit -- >> see, i wish i could see what i'm doing. if i say okay glass. okay, glass. now it says send a message, joe kernan. you're not listed on the list. >> don't say it either. jason freelander. >> who is that? >> i don't know. hi there. just checking this. >> you're talking. >> i just sent a message to somebody. i can take pictures. i took a picture of you,

michelle. you look lovely. >> can you tweet it from there? >> that's an interesting idea. >> now i'm thinking of another movie. don't pull a john candy on "splash." he walks around dropping change around everyone. you can get arrested. >> is that like what little girls with, you know, issues -- >> bingo. >> this is passe. >> contact lenses, i don't know how that is going to work. >> you have a camera in your contact lens. >> didn't snowden just win the pullser? >> what do you make of the privacy stuff? >> that's what i mean. >> and the drones? >> the drones are a boring story to me. they're twice as high as commercial airlines and they're just to give you internet access really. and they're solar powered. >> why is that boring? >> i want delivery. i want the true drone usage. this is -- like right now i

don't know how cell phones work. i didn't notice the tower. i don't know how internet, i don't know where they have the stations to do it. it happens. it is more magic. these things flying around in the sky. but they're cool looking. >> are you worried if they start falling out of the sky we're going to have problems? >> even though you think you're told that, you know, the earth is really highly populated, if things fall -- like when a satellite falls. do you know the likelihood of it hitting any populated area? it's very low. >> this is true. >> given the ocean. >> how many satellites are up there, do you i >> there's few. these would be -- this would be like not nearly as high. they're twice as high, i think as commercial flights. and they're small. >> they could stay up there for five years. they're solar powered. they ask stay up there and keep flying around. >> pretty cool. >> yeah, it is pretty cool. >> also facebook -- >> facebook is one of those companies as well. >> you got too close, it would melt it.

these need to be close. >> so would you buy one of these? can you see yourself owning a pair of these? >> no. >> yes. >> i can't. >> i love toys. >> if you're sitting at a meeting. the only way it works is you have to talk to it. if you can look through your e-mail very easily or respond to your e-mail just sitting, you have to have a device. i don't know. i don't see it yet. maybe it will work out. they made a zeile. >> yes. >> one day it will happen. we're getting there. >> i think it's nice that you need to come up with jenna jamieson. >> why? >> that's like -- that's like a while ago. >> she's on a nonporn tv show now. ♪ >> she has a family now and explained to her son much it's rough. is she? i just heard she did.

yeah. ♪ >> i don't know. >> oh, good. the producer just said for me it's marilyn chambers. >> i don't know who that is either. >> movie came out in 1974, 1975. she was a contemporary of linda lovelace. she was the ivory soap girl. on the box of ivory soap. >> and then she went on -- >> no, had already. and p & g found out. and they're like -- >> the poor thing. >> i think they recalled them. very scandalous for cincinnati. very scandalous. behind the green door. i was just told. >> you should see what i'm watching. >> you did not tell me that. what are you watching? >> are you watching a movie? >> yeah. >> which one? >> you know what? we're treading on thin ice here. >> very thin ice. >> looking at you watching -- wearing the glasses -- all right. coming up, a rally for wall street says the markets are

going to keep trading off earnings data like they did yesterday. >> i never heard some of these songs. >> is this "super fly,". >> no, it's from a porn. >> you can't see the guys walking out and -- >> find out how to make used evening gowns or expensive cocktail dresses into a tax break. as we head to break, we'll look at yesterday's winners and losers. losers. i have low testosterone. there, i said it.

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good morning and welcome back to "squawk bacox" on cnbc. becky is off today. got to get back to business here. >> we do. >> yeah. >> a lot going on. >> yeah, we have a lot going on in terms of earnings, reports that are on the way. coca-cola is getting ready to turn in first quarter results. analysts expect profit of 44 cents a share, revenue topping $10.5 billion. those are the numbers, you know, that we report from all companies. but then with coca-cola, you use case volume. and around all the different

regions of the world. and there's estimates on what they're expected to do. that's how you judge whether it's a good quarter normally for coca-cola. but at 7:30 a.m. we'll give ut numbers. shortly after that, johnson & johnson will report. and $1.47 is what the street is looking for there on revenue of $18 billion. an allergy sufferer's may have more relief on the way. merck says the fda approved their vaccine for patients age 5 to 65. the company developed the tablet based drug which marks out and it extends the treatment in late april and advisory committee to the fda unanimously recommended the approval of the drug in december. the treatment got regulatory approval in canada. in february, it's been available in europe since 2006 under the

name grazacts. it's a grass pollen. because of the cold winter or something, it's -- it's supposed to be tough. >> it is worse this year? it feels worse to me. >> because of the cold winter. when i was young, i stopped going because the saturday more shot routine, i just -- you know, i couldn't make it through the week knowing that was coming. i was a wimp. you know, you're a little kid, 7 years old and every saturday you're going to get a shot. so i stopped. they did that thing on the back. you see what you're allergic to. as you get older, as you'll see, they come back with a vengeance. i have to take something. you have to switch it around. so now claritin seems to be working. >> i'm going to start taking something. >> it's weird. >> you get allergies every seven years? >> there is a "breaking bad" story in here, too. when you go to get claritin, you have to sign your life away. >> right. you have to give your driver's license because you can be a

meth guy like jesse if you knew how to do it. >> i just got some. i got mucinex in it. >> that is a gross name. >> it has the sudafed in it. >> so a meth lab, you know, they did. that you can't make enough. you need the big barrel you have to get from the lady who eventually died of the stuff of ricin, right? >> you don't give away the whole story. >> if you haven't seen it by now. "game of thrones," i don't know. >> stocks ended the day stronger. nasdaq back in positive territory. joining us now more to talk about it is the chief investment strategist. that is paicture behind you of baltimore, isn't it, bob? >> i think it is. i don't want to turn around. i'm going to guess that's

correct. >> all right. i'll get to you in a second. let's start with mark. we just heard one of our guys say, you know, geez for a small move in the s & p, it sure got a lot of attention. that wasn't a small move in the nasdaq. i guess it's because those are the big winners. there was blood on the street in nasdaq. is it over? >> i don't know that it's over, joe. yesterday was a counter trend rally. it seems to me that markets are poised to continue to test lower lows than what we've seen here recently. no that we're calling for anything dran conans. but we enjoyed the bounce. nothing moves in a straight line, i do suspect perhaps that we're going to see some pressure put on equity prices. unless we fwet some surprisingly strong earnings announcements. so far, while they've been okay early on in the season, of course, we know that about 86 of all companies that preannounced earnings have been negative over positive. so as a consequence, perhaps the

bar set sufficiently low for companies to meet or exceed expectations. but at the same time, that means earnings have to come through i think and be pretty supportive of equity prices to be a catalyst for stocks that move substantively higher from here. >> bob, you know, when we talk to stock guys, we know the markets supposedly is discounting nine months down the road. we can't draw any conclusions. that's why we need you. we need to know what's going on in a ten year, why yields have come down and we need to know whether the economy really is going to take the baton. and give us 3%. that will justify how far stock prices have already run. is the economy upticking in your view, bob? >> i definitely think it is. the economy is better. i think the struggle in stocks and that's why nasdaq had a particular hit is because there is some anxiety now about when and how much short term interest

rates have allowed. long term interest rates are absolutely right. ten year comes down in yield. but what we had is a spike that's only been half in terms of the shorter dated maturities. so lower inflation than expected. a lower long rate. but the middle part of the curve sold off a lot and is only come about half way back. and that's because tapers reality and tightening is the next anxiety. >> the flat ening is not a consequence of a change in attitude about economic activity. i think it's because the inflation news has just been much better than expected. >> it starts to lead to inversion, right? >> flattening indicates that it's not a given that the economy is getting better. >> i thought he ment describing

the yield. >> it sounds like bob is -- >> we're a long way from an inverted yield curve. >> but you're saying that in this case a flattened yield curve is not indicating the possibility of a recession or slowing earnings. >> again, i think the long end has been driven by the inflation expectations rather than disappointing economic growth. >> when you stop worrying about having enough inflation that, is another time when you start worrying about whether you're really going to hit 3% on gdp. >> i'm going to beg to differ. i think a lot of the inflation -- remember in 2011 inflation was higher than people expected with the big output gap. now it's a lot lower? i think in both cases like most things, that swing is made in china. i think china had the big stimulus. it worked, it lifted oil prices.

inflation markets look subdued. neither case is it an indication of what is going on for economic momentum in the u.s. >> mark, what is your year end target for the s & p? >> we're looking for something in the mid 1900s. we think it's going to be a year where stocks are more rewarding for investors than bonds or cash. i think that can be more tactical. we're looking for more volatility this year. full valuations in the equity market makes stocks more vulnerable to less than perfect news. so as that occurs and you get the drawdowns like we're experiencing now, we think you need to take advantage of legging into them. as a consequence, can see a more rewarding outcome over a year over year basis than just allowing sort of a passive ride the index returns. although once again, we're looking for upper single digit results, still from stocks which is better than the other options

available to investors. >> okay. bob, you going to stay? are you going stay pseudo academic? is it the call of the big corporate paycheck? how are you feeling about it? did you make enough? >> i never said i took a complete oath of poverty. i am enjoying being an -- i didn't know i was a pseudo academic. i'm enjoying what i'm doing. >> that is redundant. you're with him down there. you know what i'm talking about. is it not? >> well, actually, i think it's quite interesting. you know, i turned 40 and i decided to do something different. >> i hear you. i hear you. when would that have been, when you turned 40? i think that is the last time the orioles won the world series. anyway, thank you. thanks, mark. thanks, bob. >> thanks, joe. >> coming up next, how do mortgage lenders determine your interest rate? a perfect setup for the spring home buying season. we're going to talk about that.

later in the show, an exclusive interview with the chairman and ceo of coca-cola, muhtar kent after the company reports the earnings this morning as we head to a break though, take a look at what is happening in europe. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪

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welcome back. it's time for the squawk planner. coca-cola and johnson & johnson expected to report first quarter results during a 7:30 a.m. half hour that, is less than an hour from now. the government releases the march consumer price index to get a fresh read on inflation. 9:00 a.m. eastern time, google will begin to sell the google

glass wearable technology. the pricetag, $1500. and that is your "squawk planner." tomorrow the government releases the march housing starts report and we get deep near the spring real estate season. dianne why olick has a great story on focus on mortgage rates. >> how does a mortgage lender determine your rate? when a lender gives you a mortgage, they're tying up their cash in exchange for your interest payments. your rate is based on what costs them to tie up that cash and, of course, to make a profit. but first, their costs are based on mortgage backed securities. investors bid on mbs thousands of times a day. and like bonds, mbs have a face value. that face value is the amount of principal that earns interest. so an investor may pay $103 to earn 1.4% on principal. they expect to get more than $3 back over time. so that means a lender can loan

you the $100, pay $2 of overhead and earn a dollar of profit when they sell your loan to the investor for $103. lenders adjust for risks like lower down payments and lower credit scores because investors are not willing to pay as much for those loans. >> coming up at 8:40 a.m. eastern time, robert shiller. andrew, back to you. >> thank you. coming up, what does super model heidi clum and glen close have in common? they donated fashions with more than half of the proceeds going to charity. we'll explain how it works and introduce the found irz afters e break. break. ameriprise asked people a simple question: can you keep your lifestyle in retirement?

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welcome back to "squawk box" this morning. >> how did you start this and what was the idea behind it?

>> we decided to change the world one piece of clothing at a time. we wanted an easy way for people to donate the clothing in their closet to any charity they wanted and be rewarded for that. this is a for profit enterprise. >> so 55% of the proceeds go to -- >> a charity of your choice. >> and 45% go to you? >> yes. and you partnered with who? >> we partnered with, you know, we have over 800,000 charity partners. we partnered with make a wish foundation. we partnered with big brothers, big sisters. >> if i do nature, what do i get back? >> you get your tax documents.

you get the full tax writeoff. >> do you? >> and this is revenue you're donating. you're not paying all your expenses and running your business and then donating 55%. >> no. so absolutely, you know, we -- it's a for profit company. >> once your tickets come in, you get a donation receipt. you get a gift card of $40 to go back and get a gift card for $40 to shop at nordstrom and a tax receipt. >> today is april 15th. how are you valuing. if i give you this lovely tie -- there will be no proceeds.

>> when you donate through fashion project, it prices it for whatever that secondary market price is. so that is a lovely tie. it would go for maybe 30% of value. but since it's coming from you, we can probably get more. >> most of this is women's stuff. >> right. >> tell us approximate this purse. who donated this purse. you're going to list it for how much. which charity will get how much? >> so this is a valentino purse donated by one of your very generous dough norse. it is originally 1345. >> $1,345? >> yeah. >> you need to say. i thought it was $13. >> somebody donated it. >> used? >> yeah. >> $1,345. you're going to list it for how much? >> $499.

>> $500, let's call it. what's going to happen. >> it gets listed, sold for $263.45 will go back to make a wish foundation. >> do i get the money or the deduction only if it's sold or it doesn't matter? >> it doesn't matter. >> the minute you start going very, very high deductions you have to be very, very careful. >> once or twice a year i sometimes go through my closet and try to take old stuff. i often bring it to the salvation army in a big garbage bag. >> and you still have to put in a value. >> yeah. >> in this case, am i bringing a garbage bag worth of clothes. >> when you sign up to donate on fashion project.com we have prepaid mailing bags. you get a donation box that tells the story of the charity. you take that bag, fill it up with your items. it is all free for the

customers. >> normally i have to lug it around town. can i send you suits? >> you can send us suits. there's a qualifying list on the website. >> i knew this was a a diane von firstenberg. it's not my size. it's a 2. can you wear it? >> i can't fit into that. >> how are you pricing the secondary clothing? >> we had a lot of stylists that went through and figured it out. consignment shops, ebay, original retail price, bunch of department stores. >> you will only take merchandise that is valued over $50 in the original retail.

if you bought it for over $50. >> this tie was more than $50. >> i have never seen you so interested in something. >> in donations. >> i lifetime like everybody else. it's tax day. >> coming up, the odds of getting -- it jumps, like andrew, if you make a million dollars or more. >> no. >> a government inquiry. putting the markets up front and center. jim paulson is our guest from wells capital management. tal ma.

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coca-cola getting ready to report. will its earnings put a smile on your face from the beverage giant. that's 7:30 a.m. eastern time. its response to activist criticism. >> an awful lot of money is being transferred from holders to management from a company that's not growing very fast. >> your chances of getting audited by the irs are the lowest in years. the chances rise dramatically. we will break down the audit odds. >> fixing a troubled company as easy as high. >> when i told employees i was 100% in charge, i wasn't kidng. >> you better be right. >> i know i'm right. >> the latest turnaround challenge.

"squawk box" begins right now. good morning and welcome to "squawk box" on cnbc. i'm joe kernen along with andrew ross sorkin and michelle caruso-cabrera. becky quick is off today. what's your middle name? earl mack kitty. futures are given back nine points. we don't know what's going to the happen yet. he has it on his shirt today. i think it is the blood moon. something different. the lunar eclipse. he's confused. he has been here both days. two in a row. or one in a row.

a lot of time off. >> you have like eight weeks of vacation now? >> you have comp time. >> he gets combat pay for working with me. >> he's loving it. >> down nine. so we did have a good -- did you watch yesterday, you guys? >> yeah. >> the nasdaq was up 25 or 30. it went all the way down to down 10 in the afternoon. it looked like oh, no. then it came all the way back and accelerated. it ended up to 4,000. s&p is well below. it is 1830. 1848 is where we closed december 31st. and then the high is 1885, 1890. it's not that much higher. anyway, we will be watching. and cramer, remember yesterday said he wanted the 10-year to go

up. it did yesterday. the markets held up. it went from 262, 263 and closed at 265. it's weird to hope for higher rates. but at this point i think the old, you know, don't fight -- hope for the fed to stay in, crappy economic data is good for the market. that's done. the fed, we can't count on ohm this. we need the economy to start, you know, cooperating here. it's not going to be a taper that helps. >> we may find out more about the economy because two more heavyweights checking into earnings central as we called it. coca-cola getting ready to turn in first quarter results. expecting profits of 46 cents a share. those numbers are expected 7:30 a.m. eastern time. coke's chair and ceo will be here. johnson & johnson expecting to

earn $1.47. >> it is about the next ceo. >> well, we don't really know. >> it might be about him. >> let's tell everybody the story. chief executive mammelt may step down. wall street journal say several board discussions recently about shortening the expected tenure for the next executive between 10 and 15 years. according to the report, maintains a strong support, directors increasingly expect they will step down before reaching the 20-year mark in 2021. is this about the next 20 years or the current? >> or a statement about how long should somebody be in charge of a company. >> it may be about both. identify to succeed him are lorenzo simonelli who took over

ge's oil and gas. steve bolze. he leads their power and water. >> i don't even know whether that's really him. >> that might be our generic ge guy. they said the board routinely discusses planning. born february 19th, my birthday. we're together. >> now you're taking this too even though we were born in the same year in the same city in cincinnati. but now he is tied to you. >> what is your sign? >> pisces. >> as honest as the day is long. hard working.

>> will italian would be a lot more fun. >> i get uncomfortable with the ethnic type. >> oh, you do. >> uh-huh. i think i'll stay. eight more years. still won't be 12021, will it? yeah it will. 2022. right before september 11th. i still think the jobs are a long time. i'm just saying. >> what's worse than three ceos in five years. >> they take pride. do you remember what welch did. we had nardelli. they were all vying for -- >> competed. beat each other out. >> does that mean for the next eight years we're going to have a bakeoff that we talk about

every day? >> probably. >> we will get to know these guys very well. >> i have like i already know steve polz he. i don't need to know anything else about him. >> we should have them both on the program tomorrow if possible. we could have them slug it out on set. see how it goes. >> that guy was definitely an eagle scout. probably marine. anyway, u.s. markets managing the close higher after a volatile trading damon. a real market correction -- which he has a bow tie on. >> you can predict the future. chairman of the index committee at s&p. dow jones. and the aforementioned jeff powell son at wells capital management. no relation to hank paulson. >> i have a little pat in me i

think. >> you've not nothing. >> this was an orderly sort of pull back. i think in the media we have done our part of really overexaggerating it to ring out the complacency. 10%. we would act like that was the end of the world. are we doing our job? >> well, i think the media did its job, got everybody very excited last week. i think the total decline was less than 4%, which didn't account for much. all this news about the biggest weekly decline in the year, two years sort of overshot the mark a little bit. we didn't have any correction except the technology. dow jones ended that index about 16% since the beginning of march. drug market just setting there.

>> i hate to say you were right about things. you didn't think the beginning of the year would be this great. the whole year will be sort of a consolidate the last three or four year. >> a little bit. >> watching this, is this what you're seeing? >> a little bit. we're not done. i still think we might felt as highs on 2,000. but still come back to enjoy the year a little bit. one thing i'm interested in -- i just put out a piece last week -- i don't think growth is that highly priced to make it into a major market event. when you look at what you pay across the s&p 500 in terms of how much to get one more percent of long-term growth, it's only two percent. that compares to four percent the last two years. at the top of the dotcom you had to raise your prices 8% to get one more growth. the price of growth today is one half of what it was on its

ample. it is only one quarter what it was at the top of the dotcom. the growth isn't sexy enough. >> the concerns he has been raising is it isn't going to be that good. >> i heard that. thursday, we had 300 claims. friday, consumer confidence. yesterday, the retail sales. >> guys say that's what -- the bonds will tell you the truth, though. the stock guys have all this noise and everything. if you want to look for the big money tkfp wat-- watch in the 1. here we are back. why? >> i think the long bond hasn't done much since last summer. it has been in the range of the same area, 265. up to three at the high.

but i think if you look at the data on main street, i think it's definitely notched up. if the consensus is still the two and a half number, we will find out we're three, then momentum will return greed to wall street eventually. that's why this is a temporary and probably buying opportunity short-term. >> david, you don't have -- you should have an s&p target. you control everything. you don't have an s&p target for the end of the year? >> i don't have an s&p target. it would be a little bit like double dipping. but i think my real question is why doesn't the media and main street see the economy as good as it is. the weekly claims number was incredibly low. it's been 300 and 350 for several weeks now. retail sales were way up. it's the economy nobody is paying attention to instead of the stock market. we all have anxiety about the stock market. look at the economy. maybe we would change our mind.

it would turn out the market could do better. >> i don't know. you're going to use the one claims number. >> not just one claims number. a whole private sector job got back to their high with the last jobs report. retail sales were strong. consumer confidence seemed to be doing better. and all we can do is find things to complain about in the economy. >> just because we don't understand why, you know, the fed last time we said we were listening for hawkish comments. what we got were worries about inflation being so low. they know a lot, don't they? if they are worried about inflation being low, it just brings us back to japan-type worries. >> think back 10 or more years when the fed was always absolutely mysterious and we had no idea what it was going to do. all this forward guidance stuff, everybody has been spoiled to think all you have to do is turn on the tv or look on the internet and it will tell you

what the fed is going to do. in the good old days we had to think about it. >> here in the united states, if the emerging world growth rate. if we came to the consensus view that had bottomed, which maybe is what they are telling us with the explosion upward as it comes down, that's telling us there is a become coming. if that happens, people will start to appreciate the global economy accelerating a little bit. that could really bring a bid to wall street and always to bonds in terms of higher yields. >> david, thanks stk. >> thank you. have a did day. you'll be the first to know. >> listen to that. jim will be with us the rest of the show. plenty more squawk still ahead. why good gisele blame forbes for getting audited? ben white is here to talk that

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welcome back. we're celebrating.

it is april 15th. the deadline for filing taxes. >> we're not celebrating. some people are celebrating. >> you are. >> rob frank is here with a look at what your chances are of being audited this year. it depends how much had you money you make. is that correct? >> it really is interesting. the irs is doing fewer audits than it used to. if you're weighty, your chances of approximate being audited are more than doubled. if you make less than $200,000, less than 1% chance you will get audited. if you make between 1 and 5, 9% chance. if you make more than 10 million a year, you have a 24% chance of being audited. that's three times what it was prior to 2008. it is one in five people. it is a new s.w.a.t. team they set up to target the global high wealth group. so far it seems to be working.

they collected 50 billion in enforcement revenue last year. you go where the money is. the willie sutton rule. >> it doesn't even bother me. it's not even eye dee logical. >> let's audit 47%. how much did we get? we worked for a year. we have almost a dollar here. >> a lot of people who have been audited and people who push against it say it has become harassment. especially a research audit. people have gone through and they asked for every magazine subscription, every bank account. they feel like they are going through every bit of their laundry. they feel it's become harassment. >> this will get eye dee logical. we don't know what lois learner was doing at this point. we don't. is examine we may find out eventually. but conservative groups were targeted. and i don't put it past them to have targeted conservative

people. >> if you're republican, 8 and 10. >> ben white is here, cnbc contributor a contributor. what do you think of the piece? >> we will see improper targeting of republican conservative groups here. i think that's been suggested. they went over the top. >> i helped him with his overall personal -- and we have become. i mean, we talk about this very. >> don't disclose our personal e-mails. >> i won't. >> two things about the irs piece. >> and we agree on a lot. >> one is, joe, since you're in that 10 million and above group, they will audit your magazine subscriptions. you want to be careful about that. you should support the increase

in the irs budget. you probably wouldn't support it generally. for every dollar you increase the irs budget, you can find 6 more dollars in uncollected taxes. >> they just cut it. >> it makes no sense. >> i think republicans are on to something there. democrats are more worried about that than they used to be. >> you have to assume the government will spend it in a more effective way than the tax cheats in the private economy. >> on an individual basis people may be audited. >> forget about the 501. if you're a risk guy who is giving to a conservative group, do you think they will be targeted? is there any evidence of that? >> they targeted conservative groups. what is the leak to individuals? >> it is a leak. because of the 503c status.

making the leap to targeting of conservatives. >> 10-year exemption being at the "new york times". how do you plain that? >> my corporation, does ma make me more of a target? >> last three. three things to avoid getting audit. make sure your account apt is clean. if they have a record of audited clients, stay away. >> how do i find out? >> ask them. >> i would google them. >> a lot of big round numbers on your return, that's a big red flag to the irs. most importantly, don't use the word yacht. i'm not kidding. ding, ding, ding. use charter vessel.

>> fishing poet. >> can we talk about gisele also known as ms. brady. >> always happy to. >> explain this to me. she was on the forbes list. >> yes. >> because of being on the forbes list she's a target. are we sure that's what happened. >> that's what she said. because she was on the list of highly paid supermodels it put her in the cross-hairs of the irs. i think between the two of them their family income is above $10 million. safe to say. everybody i cover is being audited or has been audited. it's just amazing. especially at the billionaire level. they all get audited now. >> but the reason is it's not all w-2 money. there's a lot more places to hide. >> exactly. your tax return is probably a lot more complicated than mine. you probably got a c-1 corporation. if you have a private company, that's where they target.

>> you know what we will do too are agent fees. we write them off as business expenses. and they want -- they're like you have receipts? how many dinners does it take to pay my agent. >> the biggest tax chiefs report their personal income through -- >> we have to end. >> they need corporate auditors. >> i did this just to bring this up. and for paulson bringing this up would be like bringing up a picture of jimmy carter for me. this is not what we're talking about. anyway, he's had this google glasses for a while. look at this other thing. this i tweeted out. this for all of you. this is a direct the quote from the guy on the left right there, not the guy on the right. republicans believe every day is the fourth of july. but democrats believe every day is april 15. ronald reagan said that. paulson will bring up iran

contra. >> i didn't know you were a big liberal. >> oh, god. >> do as i say not as a do. >> these are great. >> these are better? >> i don't have my glasses-glasses on so i can't see anything. >> there it is. >> cutting down the coca-cola results at 7:30. results at 7:30. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪

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google buying titan aerospace, the maker of solar powered drones. it could bring internet access to remote parts of the world, as well as solve other problems. it could be used in assessing environmental damage. not yet commercially available but can reportedly stay in the air five years.

wall street journal reporting that jeff immelt may step down before his 20-year tenure. among the leading candidates identified to succeed im diagnosis melt are lorenzo simonelli and steve bolze who leads ge power and water. >> is there a third option? >> 36 cents a share. the 36, i don't think that's a clean number yet. we'll check. the estimate is for 44 cents. the revenue is 10.58 billion. that is above expectations of 10.548. but you would call that more or less in line. the net number equates to 1.62.

in europe, case volume down 4%. latin america up 1%. north american unit case volume was flat. worldwide unit case volume was up 2%. we'll see how those compare to expectations. someone is going in here. people that write the headlines for -- what is this? i'm guessing this might be reuters. down 6%. 44 cents. see, would it be that hard to flash that? no. 44 cents is right in line with expectations. that number they use, though, was 36 cents, down six. >> showed no reaction. >> 44 cents a share.

>> restoring momentum. we are fully commit to go further advancing growth trajectory by focusing on marketplace execution. >> we will hear that from the horse's mouth in just about a half an hour. the stock is up now. 39.02 is where it is. it's trading higher on this. you know, i think flat is sort of what you were looking for in the u.s. in north america. >> it is supposed to be flat. nothing is supposed to be flat. >> it is flat like the numbers. >> you have pepsi with all the other stuff that some people think they should spin off.

>> snacks. it is like peanut butter and jelly. >> or a tuna company should buy a mayo company. >> just put them together. maybe lemon too. fishy stuff. you put lemon on fishy stuff. you've got to. lemon or lime. >> let's get reaction to the numbers. joining us on squawk news line, bill schmidt from deutsche bank. any of the numbers, bill, different than what you had? sharply higher or sharply lower? >> the buy side, at least the negative number was 0% to 1%, which is the case volume of product they sold. i think it is a little bit of relief for people.

>> yeah. in north america, what's most important for coke? north american or international? >> it has always been international. that's where we live. that's where the data comes from. >> where do they need to do better internationally? >> latin america is a little bit of a trouble spot. they are offsetting pricing. brazil, argentina, venezuela. geo politically it has been a good volume growth market. >> what would management need to do to jump start? they have their bottling operations the way they want them right now. they have taken -- it's been the last five years. do they need to do things with, you know, sugar -- sugar is still sold in a lot of the parts of the world. and now we're worried about aspartame. >> there is a lot of stuff.

stevia. it is an all natural no calorie sweetener. they are making in roads but it still very, very early. >> we're going to have him on in just a little bit. what's the big question you would ask him? >> is it a natural food is a great one. and focus quite a bit on how they refranchise the operation. three years ago they brought them in. now it is sell out again. i would ask how long it is going to take and what the new supply chain will look like. >> wrong answer. andrew wants you to ask about compensation. wrong answer. >> no. that's not my question. >> hold on. while we have you here. >> it's just as loud. >> now that you mentioned it, what is your view of the winters campaign and coca-cola?

>> i don't have a large opinion. you see trends. compensation is a big part. in terms of payouts. equity. >> would you vote in line with management? >> yeah, i would. >> you see reports of phobias over there and rising anti-reufpl. are th >> it is. it's an important market. it is not mission critical. it's not falling off a cliff either. there's geo-political unrest and whatnot but people haven't decided they're not going to stop drinking soft drinks because something is going on in

moscow and the ukraine, for instance. >> any comments on either bitcoin or income disparity? >> no. >> did you see our segment on getting audited? >> no comment. >> thank you, jeff. >> bill, thank you. >> i don't want to leave anything out. >> still to come, the season finale of "the profit." key lime pie with the host. and millionaire marcus lamonis. ask if he has ever gotten audited. and muhtar kent will join us 8:00 a.m. eastern time. you do not want to miss it. t to.

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it makes rugged mobile computers and tablets. it has struggled. they expect to close the deal by the end of 2014. coming up next, star of "the profit" talks about getting a piece of the key lime pie. i hope we get some. we preview tonight's big season finale. tomorrow squawk goes blue. kentucky wildcats basketball coach john cal peri stops by. and the new york auto show. executives are here to talk business. the fun begins at 6:00 a.m. eastern time right here on cnbc.

welcome back. don't is the season finale of "the profit." take a look at a quick preview. >> look, you're coming in here telling me you're closing the store. >> that's right. >> what are you going to pull next. what's going to happen tomorrow? >> whatever it takes to be very successful. because the plan that you guys have had didn't work. >> i get to go to sleep at night and lay in bed, what the hell is going to happen. >> you get to go to sleep at night and know your irs bill is paid. you get to go to sleep and now your payables are paid. you get to go to sleep tonight and know you're making money.

>> it's my company. if you don't like it, get out. >> i told the employees i was 100% in charge. i wasn't kidding. >> you better be right. you better be right. >> i know i'm right. >> can't put up with this anymore. >> star of the show himself joins us now. we will talk in just a minute. we have breaking news. >> johnson & johnson is out. $18.1 billion in first quarter revenues. >> the bottom line is, what, $1.54, which is seven questions above estimates. they reported $1.64 the. that's the adjusted number to compare $1.54. stocks immediately trading higher. the revenues above expectations. 17.996 was the number that people were looking for. $18.1 billion for the guidance. >> yeah. it is increasing 2014 guidance to 5.80.

>> the street is at 5.83. i so a flash that says it beats estimates. i think it's wrong. i think it's $1.54. you probably use the adjusted number. it depends what analysts knew. diagnostic sales, $7 million. $2.24 billion. they break out risperdol and the key drugs. we have enough to know it is now trading up 80 cents on the news. i have 97.95 on my machine. so it's up. >> i hear you saying under your breath good company. >> it's a good fundamental company. it lines up with the

demographic. 12,000 people a day turning 50 years old. so you listen to the things joe mentioned and they really line up with all those people. >> you're not a shareholder? >> i'm not a shareholder of any stock. >> you are just picking people difficult. you are. the last interchange was where did you find this. >> you're next, joe. >> you gave them money, right? do they not know who you are when they come in there? >> they knew. >> today is the date. >> it's paid now. they had the grim reaper at their door. >> tell us. you have the pyrite here. what is going to right here. >> so key lime pie company is one of the most popular desserts in the company. this is a company down in key west that ironically was an assembler, not a manufacturer. they were putting in a powder topping. so i wrote a big check and found out everything in there was --

>> did you taste it before you wrote the check? >> i did. >> so it tasted great. >> they lied to you straight up. >> in the end, we're good. so the place was shut down. i shut it down, gutted the place, redid the kitchen, changed the process. this is the one episode we changed the process. we sold 22,000 pies on the internet over the weekend. >> is it more expensive now? >> it costs us more to make. it does not cost more to the consumer. i lowered the price by $2 a pie. >> so you squeezed the margin. >> increased volume. put 15 more people to work. >> you replaced the entire staff? >> did not replace any of the staff. >> how do you work with people who are lying to you? >> it is not the staff that lied, right? >> they said it was home made. they made it at home. >> i turned the corner and i see

a keebler box. they said this is how we make our pie. >> anyone can make the filling. but it is a graham cracker crust. the the crust in this pie is actually my recipe. >> what is it? >> i can't tell you that. >> i'm making one this weekend. >> it has key lime zest in it. it is real whipped cream. >> and they're in key west. >> why did those people get is so mad at you? >> i redid the whole website. >> they're not mad now. they're fine. >> you sold 22,000 pies just over the weekend without it being on tv yet? >> power of "the profit". >> what do you think will happen the next week? >> i hope it grows. i'm not sure we're capable of

doing more. heads popped off over the weekend. >> you're saying you don't think you can produce enough? >> i don't. sometimes in a case like this enough volume is enough. >> so they have to raise their wages. >> i did actually. >> we were talking about ceo wages. how do you feel the ways ceos and boards are paid? >> i don't think it's any different. i believe in a performance based metric. if people perform, they should get paid. if they look at the calculation and say this is too much. you have to know what you're signing up for. you have to expect them to hit it on it of the park. i do get frustrated when i see large pay packages for ceos that are leaving. but ceos staying and performing

and hitting their marks. >> so you don't really want to be a huge company. >> i do over time. >> but you can buy it on the web? it comes refrigerated? >> it is expensive to ship. that's the hard part. it comes in a styrofoam container with dry ice. a single pie is not a good deal. it is $50 for dry ice and shipping. the product that is cool e. they take the pie, freeze it, dip it in chocolate and put it on a stick. so the likelihood of you seeing that in the grocery store -- >> who makes the best key lime pies right now? >> we do. did you think i was going to say somebody else? >> who is your competitor? >> there are self different manufacturers making them in key west. every single one of them i found out uses a keebler crust.

we get a lot of thanksgiving, easter and christmas business. >> how does the crust hold up in shipping? maybe that's why the dipped in chocolate works better? >> there's no egg in the pie. so i actually had to bake the crust. >> sometimes you don't have to do a graham cracker crust. >> i bought an $80,000 machine that spins the crust and flattens it out. >> like a centrifuge. >> right. >> the ads you said you do over the weekend online. all google? a lot of people are always trying to figure out what's the best way to use search and ad cents and whether you should advertise on facebook, twitter, linkedin. >> a lot of twitter and a lot of facebook. and i find like when you can

target the audience a little clearer the return is significantly graeter. twitter advertising has been shockingly good. we have a little bit of an advantage. >> you have a following of the show and the character on the show. you leverage that as much as you can. >> you being the character. >> yeah. >> are you using the royal "we" there? >> how many servings per pie. >> one for you. >> seriously. how many calories in a serving. i don't want that pie. >> why don't you want it? >> because it adds to my problem. >> here's the deal -- >> there's only three or four ingredients -- >> no i just want to know how much fat, calories in a serving. >> it's not healthy. >> i have to work it off. i have to go run. >> do you sell a certain number

before you label the product? >> this is a mockup. it comes with nutrition information. i don't want to broadcast it. >> it wouldn't help? >> it's like girl scout cookies. we buy 10 boxes. nobody really eats them in my family. i know they're going to get eaten. i know it would go right to me. i don't need the aggravation. marcus, thank you for joining us. congratulations. >> we'll be watching tonight. great. >> "the profit" on cnbc. a lot of yelling with those guys. >> a lot of crying. it is by far the most emotional episode in 14. >> you haven't cried very often on the show. >> i have not cried on the show. >> not like barbara walters. until tonight? >> i have a routine of getting other people to cry. >> google's new patent. we'll talk about that story after the break.

ever get a shot at jordi? earnings from coke a short time ago. mukhtar kent. how the company is looking how to grow its brand when "squawk box" comes right back. passion... omes righr became your business. at&t can help simplify how you manage it. so you can focus on what you love most. when everyone and everything works together, business just sings. without standard leather. you are feeling exhilarated with front-wheel drive. you are feeling powerful with a 4-cylinder engine. [ male announcer ] open your eyes... to the 6-cylinder, 8-speed lexus gs.

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bulls hoping for a turnaround tuesday. can investors keep the rebound going? and earnings and economic data the focus of the opening bell. >> google gone wild. from drones to contact lenses. the company will be in the tech spotlight. we'll show you why. >> coke earnings out last hour. the final hour of "squawk box" right now. >> welcome back to "squawk box" on cnbc. first in business worldwide. happy tax day. i'm andrew ross sorkin alongside joe kernen and michelle

caruso-cabrera. s&p looking up close to 5 points higher. a couple of pieces of news. johnson & johnson reported just a short time ago the company earned an adjusted $1.54. the company increased earnings guidance for a full year 2014 to $5.80 a share and $5.90 per share. we will see what happens there. joe, the other big news, coca-cola. >> reported 45 minutes ago, an hour ago. mukhtar kent, chairman and ceo of coca-cola. good to see you. how are you? >> good to see you. thank you for having me. >> whatever you're a company the size of coca-cola, even getting a 5% gain for earnings per share, it's not a given. what initiatives that you

instituted have you been able to at least beat slightly some of these expectations, mukhtar? >> well, we are beginning to get our momentum back here in in the beginning of 2014. we have grown 2%. it's the smallest quarter of the year. we are please the we have been able to gain 2% on volume. also 2% on currency neutral adjusted revenues. and operating income growth on 7% on those numbers on a currency neutral basis. so pleased that we're cycling a 4% from prior year. it has shifted second quarter this year. based on all of those facts, pleased to report momentum coming back. certainly we believe we have a

lot of work to do. as we enter the year, we're cautiously optimistic at our results going forward. >> mukhtar? >> yes. >> i don't know how many shares you have outstanding. got to be $40 stock. $170 billion. got billions of shares. so, you know, you're moving this thing today. it's not easy to get $1.87 a share. that's not typical necessarily after your report. >> welsh i think the fact that that momentum is beginning to come back. people are seeing that. we are improving in key markets like china, up double digits. brazil is up for us. another key market. russia and india up 6% in the quarter. so we're improving on the entire quarter. it is sequential improvement. we intend to continue it. >> in latin america, when we talked to an analyst, that's one

of the places that's problematic. you can see there's two, that needs to be done down there? >> i think there's work that needs to be done everywhere around the world for us. but, again, we saw brazil coming back with growth. and we saw south latin having good growth for us. so overall in latin america, again, we're pleased with the momentum. it's better than the last quarter. that's the reason why the sentiment is more. >> what's your biggest worry right now? people that go after high fructose corn syrup or aspartame or anybody who thinks just by definition soft drinks are unhealthy. is it going to be diet?

is it going to be sugar? vitamin water? how do you do it? >> look, we have coca-cola and we have another 500 brands and 3,000 products. the key is to offer a wide array of choice to all consumers all around the world and to ensure every product fulfills a purpose and we are in the great business. nonalcoholic beverage business is a dynamic business. we're pleased to be in that business. and we will continue to just focus on driving value for all our stakeholders through growing our business in the nonalcoholic beverage market. >> winter green advisers put out a letter this morning related to coke's buyback program. i want to show you a piece of what he had to say on "closing

bell" earlier this month. >> the buyback program has been hijacked by the company. it was originally put in place to benefit all shareholders. there's an awful lot of money being transferred from the shareholders pockets to management of a company that's not growing very fast. it's just not write. we think it's wrong. >> muktarh, i hope you can respond to that. >> sure. first, andrew, i know david winters. we respect and thank all of our shareholders, every one of our 2 million shareholders around the world. i wish he called me before he put out those statements and others. our equity program is very much aligned with the interest of shareholders. the dilution figures that have been referenced and that are floating out there are completely overstated. it is much closer to 1% levels

than the 14%, 15%, 16% numbers floated out there. our new equity program we have proposed to our shareholders in this coming month in april is completely in line with previous equity programs that we have actually implemented in the company. again, i wish he would have called me. i know david and respect him as a shareholder all along. >> the spirit of his similar is you're not growing the company fast enough to justify what you're getting. >> well, we are prepared to have rated a lot of shareholder value since we started our 2020 vision. nothing is a straight line. yes, we did lose a little momentum last year. we're coming back. and i believe we will continue to create value for all our on

stakeholders going forward. and i think we have created substantial amounts of shareholder wealth and value. it is completely married to the interest of shareholders. when shareholders create -- are given wealth creation and created wealth for themselves, management also benefits from that. and if that's not the case, management does not benefit. that's how our shareholder program works. >> we should note last year compensation actually went down as a result. it goes straight to the pay for performance. >> thank god for that. >> we would all be better off. >> to the point of growth, given that over the last year in the second half of last year, the united states accelerated particularly the private sector here. you had europe in contractions. japan in contractions. they're both growing again. is it a little disappointing

growth hasn't done better much much of the world has come back to life? >> well, i think you have had a lot of volatility in large emerging market economies. china slowed down last year. latin america slowed down. brazil slowed down. turkey slowed down. egypt in the north africa was pretty high volatility from a macro sense. and indonesia slowed down. there was a lot of slow down in the large economies. given we're a business that citizen rates 80% of its income outside the united states. in the last three years, it is important to understand we have had to deal with almost $2 billion of head winds accumulate in 2012, 2013 and 2014 if you add the three years. that's the environment we're in.

and we're doing you utmost to work with partners all around the world to create continued value and improved margins. >> i don't drink -- i love regular coke. i was addicted. i could drink a six pack. but i don't. it's too many calories. that's all i would do is drink a coke and run on a treadmill. i have no problem. i'm not pc. i'll drink a sugary coke if i want to. aspartame is so widely used that i don't -- i think we would have seen more effects but i'm not sure. you're working on -- what is it? stevia? it's a natural sweetener. where are you on that? and is that the future?

>> first, let me say aspartame is safe. it is the most widely researched ingredient in the world. stepsive studies have been made. as recently as the end of last year. a report came out that reaffirmed its safety. so aspartame is safe. it's used to 6,000 products in the world. in relation to your question on stevia it is a natural, nonnutrative sweeten we have used in coca-cola life. we are cautiously optimistic about the future of that natural

sweetener used in our beverages. >> you have done a deal with green mountain. are we going to be drinking coca-cola drinks and other drinks out of a pod. how big of a business do you think that's going to be? how many people that as opposed to cans or two liter bottles? >> i think it's not not a zero sum game. it is an incrment al opportunity for us and how we are leveraging innovation to create new consumption occasions at home in this case. we believe, if you look at the trends on how successful green mountain keurig have been at home in the united states, we feel, again, this will be a new and exciting opportunity for incemental consumption for our

brands like coca-cola and many others at homes in the united states and all around the world. >> will we get a coca-cola freestyle machine in my home? i don't know if you know about this. 146 different flavors. you can mix them altogether. >> yeah. we're working on a smaller version of that. you'll be seeing it being deployed pretty soon. >> i do that at wendy's. you can get a diet caffeine free cherry coke. >> that is your personalized version of coca-cola. personalization is really important these days. again, our share a coke program where everyone can have a coca-cola with their name on the can or bottle has been very successful. it will be implemented and executed in another 70 markets this year. here is an example of that. you can go get your own cans

with your own name too. >> how much is europe and how much is you have to do better in europe. and north versus south. there has to be difference in selling. >> yeah, it is. south is very challenged. also we have had some soft pts in northern europe. germany continues to do well. it was flat in the quarter compared to last year when it was cycling. we feel that europe will show improved results going forward into the second quarter and beyond. >> that's less negative or positive? >> positive. bloomberg is gone.

ding dong the witch is dead. we appreciate all the time you gave us today. >> why are you laughing? >> thank you, andrew. >> appreciate it. another cup. this one is in the house. it's not a coca-cola cup. the playoffs and talk hockey with nhl commissioner gary bettman. it's a google grass morning here on cnbc. we'll talk about contacts that help the blind and solar drones. all of that more when we come back. check out the "squawk box" market indicator. i'm checking something else out. ♪

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>> the nhl suffered a pr setback when nine former hockey players said they promoted a culture of

extreme violence. given that it is an intense sport, will that affect the game? gary bettman, commissioner of the national hockey lead. cast blanca. there's gambling going on. really? in hockey or football, there might be some hard hits and checks and things going on? >> you would be shocked to hear that, wouldn't you? seriously. the fact is a couple of law firms seems to have gotten together some lawsuits copying what went on in the nfl. we knew it was coming. we're together to aggressively defend the lawsuits because we believe there's no merit to them. if anything, we have the most proactive approach to player safety in all of sports, particularly the contact sports. i can give you a litany of the number of ways we have been a

leader in player safety. frankly, i would rather talk about the bills. >> this somehow has become a big deal in my house. my daughter is getting better at skating. now we are big rangers fansment the one thing i would say, when you go it's the greatest experience. my son, we're all into it. man, it's expensive, isn't it? that's what gets me. it's almost worth it but the tickets are crazy. >> clearly it's worth it. look at the secondary market. price us to other sports, a broadway show. low priced tickets are comparable to going to a movie these days. in terms of in person entertainment, because we have 10 games on cnbc. >> i know. with high-def you don't need to go to a game. ten rows up you can feel the checks on the glass. the whole place shakes. that's why -- you wonder why

they get mad at each other. even when i watched guys in eighth grade play, they get checked. they want to go after the guy. >> in eighth grade, they're not checking. the fact of the matter it's a physical sport. it is fast paced, physical, skillful, exciting, edgy. >> i remember when nbc got a deal. i say we, but i knew nbc was getting a deal. what was it that year? it was almost free as long as we broadcast the games. >> that goes back a few years. the deal we have currently with nbc sports for the first time, and this goes back to this is our third season, every game in the stanley cup playoffs is televised nationally.

>> you're in minnesota, aren't you? other than it disturbs your lefty sensibilities. you do appreciate hockey. >> it changes the game so much. >> a lot of the rules changes that we talked about particularly with the players, the players, the players association tends to be resistant to some of the things that might take a little bit of physicality out of the game. it is good the way it is. >> you say you are being sued because you encouraged too much physicality but it makes changes that reduces physicality. >> if you lead the latest complaint, one of the allegations -- let me see if i get this right. russell crew started in mystery,

alaska. then he got an academy award for "gladiator." because that had a nordic setting and influence, somehow there is a nordic influence in our game that somehow we're liable for something. >> i want a world cup. >> you're talking about it. >> and you won't go to the olympics then? >> we didn't. >> a couple of the teams, the coach of the st. louis blues had nine participate in the olympics. they said down the stretch run they were a little fatigued. >> how about watching that final? >> spectacularly exciting. >> there's a little violence. but it shows you it's not all about the violence. >> you're confusing physicality

and violence. >> there is an entertainment value when they start hitting each other. there is. >> but there is an element of -- you're talking about a game -- >> i mean physically. when they're fighting. >> people watch us. we've got to go. >> 70% of the games fight-free. >> we've got to get that down. >> consumer price index right after this. don't move. don't move. make it happen with fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. ♪

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coming up, after hitting a 25-month low, things ticking north thanks to higher food prices and the weather. u.s. equity futures suggest a higher open. "squawk box" will be right back. . at your ford dealer think?

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welcome back to "squawk box". we are just seconds away from march cpi. that is the consumer price index. guys, talking about the possibility of deflation in some parts of the world, right, as we wait for this number? >> that is a distinct concern. i don't think it's a concern here in part because our service sector inflation has held up not too badly. commodities has been relatively down. we'll be looking for that. one of the things you have had is rising housing prices or owners equivalent has held up. and medical crisis held up as

well. i don't think there's a deflation concern higher. >> we are about 10 seconds away from the number. some would suggest qe has been a success. i'm not even going to let you respond. >> 1.29 on empire. so that's definitely on the weak side. cpi, 0.2. year over year headline 1.5. 1.1. it is 1.7 year over year. that's also hotter than expected. we have new calculus. we can debate as to how poorly constructed experiments through

decades in europe have shown up so they can experiment on larger animals. but i really don't think it's an issue in the u.s. we are below 350 on 30-year bond. mid 260s on a 10. it cements home the idea that there is curve flattening going on. it's the method i think should make central bankers a little bit nervous. they are looking past their lack of guidance. lack of any solid metric and keeping rates a bit more firm. >> do you see any specifically? >> it was up 0.4. twos were wild. gasoline price falling 1.7%. then you have housing and utilities, natural gas went up. where did that go.

1.5%. they offset each other. a little bit hotter than expected. i feel people like you jim and rick are quick to hit the panic inflation button than rather than deflation. yuse people is what i meant to say. >> one other issue, in general, jim and rick, yuse guys, economic numbers have been don't go pretty well. joe has been sitting there, as has rick, over the signal being sent. >> what numbers are doing well? you have decent retail sales. i can't yell, rick, because i was sick yesterday. you're going to do 4% in gdp in the second quarter, rick.

>> give me a break. i don't buy into it. i'm sorry. i bet you a bag of cheese burgers, no four handle on second quarter. >> no four handle. fine. >> he wasn't sick yesterday, so i can yell. >> a three handle? >> not a four hander for second quarter gdp. >> so there could be a three. >> you're backtracking. there could be a two handle. >> what is the 10-year, please? >> vehicle numbers have come back. 16 million. i ran into phil. he thinks we will do 16 million again. >> subprime and autos are kicking butt. >> and the isms. >> i said it is not going to be nearly as affected by weather. >> it is more affected.

>> what were the numbers. >> 190, 190. >> i don't see 250, 275. you have to spring back. i didn't see any spring back in the six-month average is trailing. >> every single piece of data. >> what will be best for us. watching the 10-year, which the bond market is much bigger than all this other stuff. suddenly we were at 2.9. now we are tapering at 2.6. it's not wishful but just because we're in the news business, if the fed -- if this perfect narrative, they come in, save the world, they exit. everything is beautiful, everything is fine. if for some reason the economy doesn't cooperate and the unemployment didn't cooperate they would be stuck in hotel california. and that would be bad skin narrow. as a news person watching it

work so beautifully, i won't buy it. murphy's law will say five-year recovery, we have a slow down. >> i looked at the numbers and i cannot see what the bond market is being. >> come on. come on. look at yields. that's all you need to look at. close, tight were spreads. the relative fall means u.s. rallies rates can't go higher. the rest of the globe is compressing them. it's all relative value.

>> deflation tore that michelle asked about earlier and what the ecb might be doing on rates is compressing the u.s. >> can we explain what peel are talking about. whatever the u.s. yield is you can assume most higher by some degree. except now -- >> the whole spain thing. >> i want to point that out. sometimes the discussion gets a little arcane at this hour. >> we haven't addressed the reasons for this bad five-year recovery. >> i think it is the anti-private. >> socialism.

>> i don't think 3% is a given. people have been predicting 3% the second half of the year for the last four. suddenly there's a pause every time. >> sooner or letter it should be five and it will get to three. >> we heated it up. we have commodities. we have a weak dollar. wages go up. >> no big deal. let them run. >> the fed has a different story. >> we have to go. i think it's a good scenario. >> winter green was watching our interview with coke ceo moments ago and responded with an e-mail. this from a spokesman saying by coca-cola's own numbers the equity plans by more than 14%. that simply is unacceptable given coke's growth and the capacity still available under its current equity plan. coke's buyback doesn't fix the

problems. it makes worse. it was put in place to benefit all shareholders, not five. that's what he owns. in fairness, that's chump change. >> based on number of shares outstanding, you're saying? >> what's the market cap, 170 billion? >> no. it's less than that. >> 170 billion. >> it is 170 billion? >> why wouldn't it be? >> so is there a point we shouldn't listen to him? >> 90 million out of 170 billion is chump change. i'm not saying you shouldn't listen to him. >> for some reason i thought it was 155 billion. irrespective of the issue -- >> how much does buffett have? >> i believe he owns 9% of the company.

>> is he squawking? >> very interestingly, not commenting on this one way or the other. which actually -- some shareholders have tried to divine what that means. >> get him on squawk. >> we have tried unsuccessfully thus far. >> i bet you he's in support of coca-cola. >> his son is on the board of coca-cola. so i think it would be hard for him to come out against the company. but he might. >> $90 million. >> it's worth noting kent believes david winter's numbers are completely wrong. he said that over and over again. he said the dilution that he is suggesting or rather that winters has suggested -- >> i can't believe this guy is getting this much play. it reminds me of -- >> didn't we have the same argument whether carl icahn was going after apple? >> hey, that sounded good.

you're coming around. you're coming around. >> when we return, robert shiller, co-founder of the case-shiller index joins us. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.

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so let's see what we can do about that... remodel. motorcycle. [ female announcer ] some questions take more than a bank. they take a banker. make a my financial priorities appointment today. because when people talk, great things happen. welcome back. let's take the pulse of the housing recovery with bob shiller, nobel prize winning economist and co-founder of the case-shiller home price index.

thank you for being here. help us understand where you think the housing market is going. and i want to throw one piece at you. we have had a number of investors come on the set ream that have been buying up or have been buying up single-family homes. i think of black stone as being one of them. and the suggestions they have stopped. i'm trying to understand what that may mean to the marketplace. >> i don't know what's on the mind of people at black stone or similar places. but i kind of imagine, this is my guess, that professional investors have been clued on to the tact that there is a certain substantial amount of momentum in the housing market. much more so than in the stock market. the way prices have been increasing since the spring of 2012, it looks like a no-brainer to get into the market for a whi while. now there are signs of softening. i can imagine people there are starting to doubt this momentum is going to continue. >> do you have that same doubt?

>> yeah. not an extraordinary situation. but there are signs of weakening. especially if you look at the traffic component. they are all showing weakness right now. >> another thing i think this boom we saw in home price has something to do with quantitative easing and record low mortgage rates, which is interesting. >> can you hold that for a moment. we have breaking news. steve? >> hey, andrew, thanks very much. janet yellen saying the new bank regulations that have been passed cover the existing but don't fully address the short-term wholesale funding. they don't address the shadow banking system. janet yellen says the federal reserve staff is actively considering new measures to address risks and short-term

wholesale funding market. we kind of knew this was in the works. we have seen this before. as far as i know, janet yellen has not addressed this issue herself as fed chairs. something we need to look for, as they have done regulations in the existing banking system, the regulated banking system, the fed wondering how to get to another problem, short teller wholesale funding market. >> bob shiller qe juiced price. even home prices. that's pretty deep, bob. i don't know what to be. even housing may have gotten ahead of itself based on qe? >> i don't think the housing market is so inflated now. it had been so depressed. in terms of timing, purchase of a house, these seem like

ordinary times. maybe it's gone now. home prices are at a normal level. so fine. >> mortgage rates are going back down, though. shouldn't that help. that's the one good thing about the 10-year rally, isn't it? >> yeah. i suppose so. >> we have had the home buyer affordability index go for levels never before seen by man. they are still just off the chart cheap. is it going to hurt that much momentum until rates go up that much more when you have this outsized cheapness of finally owning a house? >> yeah. my son just bought a house. i told him fine. we do still see the upward momentum. it is producing like 25% entire home prices in 2018.

that seems a possibility. i'm not being an alarmist at all. >> is the economy upticking right now in your view? >> i don't know. it's been stuck at disappointing growth rates. >> you wouldn't bet the ranch on 3%? >> i know. i just heard from liesman that all the numbers were great. we have had five years. >> that's why there is so many potential because of all the value. >> you talk about it nationally in terms of national numbers. real estate is always a local business. just tell us real quick where we should be paying attention to. >> las vegas. it's still going crazy. i don't know what's with them. the midwest. chicago is going down. >> go back to vegas, andrew.

>> bob shiller, thank you for joining us. appreciate it. >> this is going to be fun. coming up, the new york auto show stomachs by injure injure right here in studio. joe will climb into the porsche 918 spider while phil lebeau only gets to watch. the latest super car is parked right out front. squawk will be right back. ill b. drivers, tgo!our marks. it's chaos out there. but the m-class sees in your blind spot...

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expected. wrote a piece saying as u.s. ultimately the other countries will go. when they stepped up promotion they did well. looks like muhtar kent pulled it out of a hat and did a great job. >> what do you think about this discussion about compensation? overblown or justified? >> idiotic. >> idiotic. >> what is that guy. i have more shares than he does. what is this? now many divisions does that guy have? >> kim raised an interesting issue. it matters how many shares he has. >> yeah. >> do you think activist investors we should care about

their stake or the argument? >> i care about the record, how much money they have, on the board or want to get on the board v a right to be on the board. i do not care if they're pop offs who i have never heard of and have no say and insulting to people like muhtar kent who happens to be a great executive, done a fabulous job. and in again, some incredible head winds. i respect muhtar kent and i think sometimes these guys who don't have a lot of capital and shoot their mouths off, ought to respect some of these great ceos. they deserve our respect. >> you put carl icahn in the same category? >> carl icahn has a lot of money and done a lot of good in trying to get things right. he can make a difference. i thought he shouldn't have backed off from ebay because i agree with split. and sometimes i don't like his personal attacks because there's no reason for those attacks in this business at the level had he's at. particularly with a man like jon don who who i think is distinguished. if we show no respects of ceos

who do a good job, what does it mean when we have execs who do a bad job. how do we show people at home who are not worthy of respect. muhtar kent i didn't think he could pull this off but i should have because he is a great long-term executive. >> jim, we have a porsche waiting outside so we have to go. so sorry. >> thank you. >> watch. it's going to be cool. >> ligament the ro hitting the road with porsche in a moment. be back with that. today is tuesday

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welcome back. the international auto show is in town taking place across the bridge from cnbc's global headquarters. we managed to bring porsche out to jersey. phil lebeau is here with joe lawrence, coo of porsche north america. the way it's explained to me this is a 918. people are worried about the way the super sports car of the future is going to look because there's going to be so many regulations you need to adhere to. this is porsche's answers. you can get 67 miles to the gallon in a hybrid electric car with how many horses? >> 887. >> 887. >> just 887. >> a mere 887. >> beautiful paint job called liquid silver and carbon everywhere on this. >> carbon fiber tub. that's what helps save the

weight because we have to overcome the weight of the batteries in the vehicle. this is the future of the sports car for us and this is what we would call a technology carrier for the whole rest of our lineup. you will see a lot of this technology filter down. we already have. we have a plug-in hybrid that uses some of the technology from this vehicle. >> basically $1,000 per horsepower. >> not quite. >> 850,000. >> 845,000. >> but that's standard. that's without any options. you get it loaded. >> comes pretty well equipped. >> so a lot are worried they love the feel of driving a porsche. they love feeling the shifting of the gears and they're worried when you go electric, that sensation goes away. >> we need to get you on the track. >> i'm not saying it's me. enthusiasts say this. >> we have a lot of reports coming out of a press event we had at the circa of the americans in austin last week and people have just been blown away, not only how fun this car

is to drive, but how amazingly easy it is to drive at high speeds. i was fortunate last week to be in germany where we had a test track and a production plant and i drove this car with several other exotics. it's a great job. and the 918 spyder is a mind-blowing car. >> 918 will be produced. >> we don't know who is buying them but some are still available. if you were to order one right now it would be a year before we would be able to deliver on the production. but ultimately, our goal is 918 units. >> i assume a certain comedian that loves porsches would -- i presume he's got one on order we won't mention any names. malva. >> he's a big porsche fan. it might be a safe bet. >> i want to open the door here and you were talking about this earlier, five modes right. if we can have the camera come around. explain hot lab. i think some look at this and say that looks cool, want to hit the red button.

>> five different drive modes. what you first have to understand it's got a 608 horsepower naturally aspirated v 8 and then two electric motors, one front, one rear, 129 horse in the front and 156 horse in the rear. this is an all-wheel drive vehicle as well. what we have are five driving modes from auto e-power, pure electric, you can go up to 28 miles on pure electric, 94 miles per hour, and then you can switch to a hybrid mode and then you have a sport hybrid mode, race hybrid mode and then finally a hot lap mode. the hot lap mode is amazing. that's where we set the all-time record lap time at the germany's racetrack of 6:57. the electric motor basically go toward generating as much power as -- >> we have to thank you for doing this, joe. it's beautiful. phil, thanks for coming back.

this is nice. i'm jim canner to. they've positioned me outside here. you can see the effects of climate change. it's april in new jersey right now. we want to thank jim paulson for spending the morning with us. and make sure you join us tomorrow, "squawk on the street" is next. ♪ >> good tuesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. looking for some stability after that roller coaster ride in the markets yesterday, that 145-point bounce in the dow in the last 45 minutes. futures are mild here as we get earnings from coke, j&j and others. ten-year right around 2.65. cpi was in line this morning. empire manufacturing weak again. europe is mixed but check out gold, down $35 today.