my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. we'll make friends and try to make you money. my job is to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. some dips are made to be bought. you just have to say to yourself, okay, if i don't like what caused the pullback, but

i'm going to take advantage of it, because i'm trying to make some money around here. after an amazing week but a ho-mum day with the dow drop pig and the nasdaq gaining 2.2%, i want to talk to you about two buy dips. google and ibm. now you might think i'm sticking my neck out, but i am saying i'm doing is introducing a notion of long-term opportunity. and it's not a copout. first off, we know google and ibm both disappointed people last night. we know that because they went down after earnings, it's undeniable. and a stock that goes up after a good report is a good stock. and a stock that goes down after a bad report is a bad one.

in other words, people were expecting an upside surprise simply got it wrong. in the world of trading, you buy a stock for catalyst. you get the catalyst, you sell no matter what, good or bad. that's what trading is all about. that's called discipline. have you the discipline to recognize you bought something for a trade and it just didn't pan out. but investing is what i'm trying to teach here is quite different. there's a different set of rules and a different mindset. investigating is not catalyst driven. it's not about trying to predict quarters and scout a few bucks. it is about long-term decision making when given the chance, even though the chance may seem scary, you have to take it. which brings me to google and ibm. any trader knows google and ibm failed as trades last night, unless you were shorting them because they both got hammered. however, if you are an investor

and trying to catch a few points with something big and meaningful, i think you have to buy, not sell these two stocks. counter intuitive? no, listen, let's start with google. what exactly did cause it to go down? what was google's cry? simple, it missed wall street's estimates. a company that misses the estimates is a company that immediately gets put in the penalty box. immediately as in that minute. but understand something, unlike most companies, google doesn't actually help the analysts make their estimates. most companies do. most companies provide guidance right before management takes questions, they outline how the company's earnings and revenues are likely to be for the next quarter and for the next year. google, however, is a rare very be. it doesn't give guidance. the other only company that doesn't give guidance is

berkshire hataway. he wants to win long term, same with google. when google misses the numbers, it's far less important than if pretty much any other company did the same thing. that's because frankly the analysts are pretty clueless about what google can really earn when they try to get these numbers. it's not like google missed its own forecast, they don't make a forecast. so the number that disappointed was only disappointing in the eyes of the analysts. now you might wonder, who else matters in the process of the and lists, big deal, jim. hey, all that matters is the analysts. that's where i can help you because the answer is the portfolio managers themselves matter. they look at google. in a couple of days they will be looking at it within the vacuum and the internet sector like the analysts who cover the stock. no, money managers look at google versus all the other stocks in the s&p. all the other stocks they own. and they will see they are missing an opportunity to own a

company that's growing, remember these numbers, they will be important, growing at a 19% clip yet it sells for only 17 times next year's earnings system. remember how money managers value stocks. you always have to go back to this lesson. you have to make it apples and apples comparison. to make it apples to apples, they look at the price to earnings multiple. then they put google's growth rate against the companies they currently own and make their judgments about what to buy or sell. let's make it easy, suppose the portfolio manager owns coca-cola, that portfolio manager knows coke is growing at 6%. 20 times earnings. go back to google, we stipulated they grow at 19% and selling at 17 times earnings. hmm, let's see, from the portfolio manager perspective, he's paying 20 times earnings for 6% grower like coke when he can get a company that grows three times as fast for 17 times

earnings, a discount. many fort folio manager will be unable to resist google and say coca-cola to pay for it, but not today. do this exercise any time. take panera bread, 6% growth rate, sells for 24 times earnings. why panera, google, these are just two growers, why own panera when faster growth from google with a lower price earnings multiple. a stock like kellogg rose at 5% like google. it has a dividend small one. the stock sells and then they will likely sell kellogg for google. the fact is on a growth basis, google is cheaper than almost anything in the s&p 500. believe me, in a week, most portfolio managers will forget that google ever missed the analyst numbers and instead be saying, you know what? that's too cheap to ignore. and that's how this terrible trade, terrible turns into a terrific investment.

but you might say, what happens if google keeps deteriorating as missing the analyst numbers applies. actually, it's not deteriorating at all. google is just spending a lot of money to promote future growth, something you want them to do to stay ahead of the pact. you want your companies to invest in future, not all should be buying back stock and giving dividends. listen to microsoft, hewlett-packard and dell? you can come back and saying, aren't they mobilized by the revolution? google has the best product out there and trust management when they have a plan to make more money off google. you should listen. you need patience here. i got patience. do you? if so, i think google is a fantastic investment at a great price. a price being set by traders showing discipline and taking trade off the table at a loss. all right, how about this ibm? wasn't that a miserable quarter? no revenue growth and revenue

declined, right? suspect cash flow, miserable earnings that seem to be made by the skip of the company's teeth. doesn't ibm have to be sold? yes, if you bought it for the quarter of trade. absolutely not. if you're looking for a value stock based on net shares earnings like warren buffett who is the big owner because next year's earnings benefit from the new hardware product cycle and rapid expansion to cloud services. sure, ibm isn't hit the mark now, but by this time next year it should be because of the change at the company. however, if you wait until next year, the stock will be too high. it was going up in anticipation, didn't turn around this corner, but i think it will. so you have to get in on the weakness even though you may hate ibm's current configurat n configuration. buy it on sale for an investment to last years and years. google and ibm, two trades that went bust. two investments that can now be started, an excellent discounted

price. the bottom line? one demands trash can be another man's treasure provided that the first is a trader who only cares about the here and now. and the second is an investor who cares about the future. nick in new york, nick? zblk hey, jimmy, how are you? >> i'm good, how are you, partner? >> i'm good. >> caller: my question relates to b&g. a short speech on your show and did some homework, i bought it at 12 and now 11% investment capital. what is your advice based on the recent quarter results which are shy on earnings? >> thank you for taking action owners plus, that's the companion product i do with my charitable trust to tell you what we are doing before buy and

sell. b&g foods yields 4.3. was it a perfect quart her? absolutely not. is david doing a good job, yes. if i had a big gain as you, take out the invested capital and let the rest run. thank you for listening to the show. i think we helped you a great deal with b&g foods. we are the 25th anniversary and proud of what we have done for the regular investor. dubrovca? >> caller: yes, i'm here. and i have a question about zebra. >> yes. >> you recommended it a couple days ago and then it dropped like a rock, so i would like to know, do you still believe it's good or not? >> it's real good. sometimes the stocks don't do what they are supposed to do. the stock went up eight and reversed it a, but buying that simple technology business is a great business and you'll hear much more from zebra from me within the next two weeks. let's go to madelina in new york.

madelina? >> caller: hi, jim, how are you? >> i'm real good, how about you? >> caller: good. i want to say thank you for taking my call. and i also enjoyed reading your book "get rich carefully." i have a question regarding clbx. >> yes. remember, we rated that as our great previous analyst ted graham pointed that stock to us out in the mid-teens and an old friend of mine showed it to me. we left it and have not looked back, so i have not looked at it because it was a trade, speculative stock, it was done and i'm not looking back, i'm sorry. one man's trash is indeed another man's treasure. case in point, google and ibm, trash by the traders, made treasure for the investors. don't go anywhere, i've got an exclusive with the bank that has had the best performance of any bank we follow fresh off

earnings. plus concerns about the company that keeps the lights on in new york. i'm check if the future is still bright for con ed and the white hot utilities. and to get hot in the economy, sometimes you need a little elbow grease. snap-on tools coming up next. >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com. or give us a call, 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.

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forget about all the problems we have in the stock market. because when you look at the actual companies that benefit from the improving economy, they are doing well. take snap-on tools, sna, they make power tools to auto repair shops with 3500 vans here in the united states, and they sell to agriculture, construction, mining, power generation clients

and bound for european companies, too. snap-on is a nonstop up no say or the creating innovative systems to make it easier for the professional task. they earned 1.62 per share. that's higher than expected revenues that rose 6.2% year over year. snap-on's commercial industrials run 9.1% driven in part by a fabulous surge in the european segment. the stock has given us a 23% return since we last talked to the ceo past july. i bet it has a lot more room to run. so let's take a closer look with nick, the chairman and president and ceo of snap-on to learn more about the company and its prospects. welcome back to "mad money." >> thank you. >> great to see you, sir. yours was one of them, i would like to think it's because you innovate with such things as wrenches. >> correct. i mean, that's the thing,

snap-on is the type of company that is actually a technology company that innovates. it innovates based on a practical understanding of the workplace and associated with its technology. take this, for example, and we can talk about a wrench here. this is a tech wrench. we call it a tech wrench that has to do with measuring torque inside an engine or aircraft. aircraft frame, it is the state-of-the-art in terms of measuring torque and getting the right tight anything necessary for the critical task that takes place in those places. >> this could be initially for automotive and it can tran send and go to aerospace. >> sure. one of the things about snap-on is it has always been an automotive repair company, but what we realized is snap-on means a lot to any professional as long as they are performing critical tasks. that is the need for repeatability and reliability is important that they have to perform with certainty. and that's aerospace and oil and gas and aviation. and we apply technology to that,

for example, not shown here is one of these things where we have a smart tool box. one of the big things in the aerospace line is don't lose a tool in the engine, sounds crazy. >> don't lose forceps in surgery, right? >> exactly. so we make a box that uses imaging technology that tells you, boy, jim cramer took out screwdriver a from door a and is working on bay 6 on engine 2. before you button up, check the box to see if you returned it. that's driven a lot of the growth. cni, the commercial industrial business was up 10%, 200 basis points, driven by the extension because people value snap-on with technology inside to bring them. >> nick, a lot of people felt like you shouldn't be moving into europe or try to minimize europe because europe was bad. obviously, they were wrong. >> right. we established a business in europe and i mean, i've got welts on my back for europe. i told you, last time i was

here, france is giving me a headache. i didn't want to hear the word france. well france is up now. france is up now, germany is up now, spain is up now. the thing about this is, we spent a lot of time not taking down productive capacity because -- >> everyone told you to do it, though. >> we had faith it was coming back and knew our customers were still there and kept improving productivity. so even before the revenue started coming back, profitability was getting better. now the revenue is coming back and we get a double-dip. >> what did you learn in terms of what you will do in asia? >> well, in asia, if you think about it, china, the united states, they both buy a lot of big cars. a lot of new cars, a lot of new cars. >> a lot of people in china. >> a lot of new cars and a lot of people in china. a lot of cars on the road already and they are old. in china, 11.5 years old and 3.5 million on the road. in china, there are not many cars on the road and they are

all new. so the repair wave is just starting. i lived in asia 11 years myself and learned you have to have the physical capabilities to take advantage of this. so what we have been doing is building those physicals. when i arrived in chi in about nine years ago, shanghai, the only people who worked for snap-on in the city of 50 million people came with me on a plane. now we have -- that was about eight years ago, nine years ago. now we have five factories, 1500 people, 31 offices, a design center, 700 contributors. so we are building those physicals because we know the weight is coming. >> let's go back to oil and gas because we have been visiting these sites. we have been on an oil rig 1300 miles off the shore. utica, shell, north dakota, you guys are there now? >> part of the snap-on base is the technology and also understanding the business. so we understand automotive repair very well. we have guys at snap-on that can tell you why mechanicals take his rag out of his right hand

instead of his left. so they really understand. they understand the job. they understand the work. so we're developing the work in oil and gas, so when we visit oil and gas sites we see a lot of people welding tools together to do a job which nobody makes a tool for. we are making those tools today and starting to build business there, too. >> look, i happen to love the people at stanley, they are terrific, you know, they are not doing that. >> i love them, too. it's a different business. >> it's different, right? retail business, what are they? professional business. >> different business. our business is based in criticality. and criticality, in other words, the need for reliability and repeatability so that nothing can fail. like an aerospace or mining, we are based in technology to take this thing here. for example, this thing, this is a diagnostic unit. and this -- you plug it into a car and it will tell you what the car is saying in terms of the car's heartbeat and allow you to make the car to run

tricks, sit up and do dog trickles. and this particular one allows you to go out to the internet to get special database. we have a database which we use our field information and we can tell you exactly if a honda is at 56,000 miles and it has this symptom, here's probably what is wrong with it. and you get this device, it's called a verace pro. high-technology in an area which is increasingly dependent on high-technology, but people don't think of it that way. >> that's interesting because you are the only industrial and technology stock to hit the all-time high in the s&p. now people know why. that's nick, the chairman and president and ceo of snap-on, sna. now you understand why i think this is a great company. stay with cramer.

in a market that's gotten far too exciting for comfort, today's ho-hum station notwithstanding, maybe you need stocks that are boring, one of my favorite utilities is con edison, or con-ed as some of you know, or just ed. this is low risk and con-ed is as low risk as they come.

designed to supply the most densely populated city in north america, yet here's the kick, they don't own any power generation assets. this is strigtly a wires company that means they are immunized against apa action and commodity costs. the company does have to face aging infrastructure issues daunting for any utility. con-ed following 2% because investors are looking for the bountiful dividend. they have been treating this stock as a kind of fixed income alternative. so in buying yields spiking dramatically, that made con-ed look less attractive by comparison, but the company has a lot going for it. kevin burke on in 2009, copper is giving you the 87% return in dividends, far less than the s&p 500 for that same period, but that's good when sacrificing for comfort, you may fall behind the market but doesn't mean you didn't give dividends and live comfortably off it.

let's dig deep we are the new president and ceo of con-edison who took over in january. welcome to "mad money." >> nice to see you. >> thank you so much for coming on. >> pleasure to be here. you have challenges but you also have technology working for you and i want to very quickly show peop people. i'm convinced if i had been more sensitive to what my appliances were doing, i would have saved some money. you have a new device that's kind of a cool stealth technology play obviously with honeywell, how does it work? >> probably i'm one of the few ceos to come on the show to tell you how to use less of our product. that's what we are doing with our energy-efficiency programs. these are two of the devices we roll out to the customers. this is a why why thermostat used for central air air-conditioning. there are 400,000 in our service territory. we partner with honeywell with others available on the market. many have that device, but this device is really unique because in our service territory we have over 6 million window air

conditioners. and you can't use central air thermostat with that, so we partnered with a company called vink echo to develop this smart ac modulate. you plug your ac unit into this and it connects to your wall and the wi-fi system, and you can use them while in the home to raise and lower the temperature. but it also communicates to your smart device, so your android, iphone, ipad to set the program for your air conditioner and change the temperature in your room from wherever you are. >> okay. let's start with the presumption you just said is that people at home are saying, wait a second, why would someone want to sell less energy, isn't that how they make their money? >> because we are a wires and pipes company and all revenues are decoupled from the amount of sales we have for electric and gas systems. it allows us and puts us in a position to help customers become more efficient, use less product, save money and also help the environment. >> david cramer was here

recently and he's very aggressive buying up companies that allow us to put solar on the rooftops. you can do that, should i just call you if i want solar on my rooftop in this area? >> we are not installing rooftop solar right now, but you call us to allow you to integrate it into the system. >> conversion into the system. >> that's right. we think that's an important role. we are trying to make that as easy for the customers if possible. if they want solar or other type of distribution, we want to facilitate that so the customer can make the choice they want. >> is there incentive for it? >> there are incentives from others, we don't provide incentives, but there are state incentives and rebate offers. we are a wholesaler in the wholesale market. >> i was going to ask you because you are the fifth larger player in the country. >> that's right. we have expanded with 400 megawatts of solar production now, some in the southwest and some in the northeast. it allows us to take our power generation experience and apply it in a new way and do it in a

way that's renewal and environmentally friendly. >> you have new technology, solar, but you are also saddled with an older infrastructure. we have tragedy unrelated to money here, we have the east harlem blitz that occurred, but i just presume you have a big maintenance. you have an infrastructure that's from a long time ago. what do you do? how much money can you really generate to be able to make the infrastructure current? >> okay, so we have a very aggressive infrastructure renewal program. we put $2.5 billion into our electric systems each year. and we develop -- >> each year? >> each year, $2.5 billion added into our systems. and we have developed some pretty advanced algorithms to decide where is the best place to put that so we get the maximum benefit for every dollar we invest. >> is it possible to try to at least cut down on the kind of

terrible incidents we have? >> very much so. and part of our infrastructure investment strategy includes very significantly risk reduction as in play. the incident in harlem is a terrible tragedy. we are working closely with the ntsb, the national transportation safety board to identify the cause. we have looked at the cast iron piping and the new plastic piping as well as the water mains in the area. and i'm confident we'll get to a place to understand the cause. in the meantime, we've been working to help support the community and the people who have been affected by the tragedy. and working to encourage customers that if you smell gas, act fast. leave the area, when you're in a safe location, call us. call 911 or 1-800-75-coned and let the experts respond. >> in may of 2012, he said an astounding figure saying we have 7,000 buildings that are using oil. i mean, oil is $105. how have we done at that in terms of reducing the number of

buildings using the inefficient fuel? >> we are manging good progress on gas conversions. buildings that use heavy oil, number 4 and 6 oil, we are changing out 800 to 1,000 buildings of natural gas each year. and driven by the price compareson, we are getting buildings to switch from number 2 oil. those are the large buildings. then the 1 to 4 family buildings, we get 1500 to convert a year. it's better for the environment, saves our customers money and it improves the operation of their equipment. >> excellent. look, i think if you want a safe dividend, you have the best record of the utilities. and with consistency, you have it if you own coned. thank you so much. that's the new president and ceo of consolidated edison. not every stock has to shoot the lights out. sometimes it's good to have something to produce a lot of income. stay with cramer.

jim cramer. >> hey, mark, how are you doing? i have to put up with you twice a month. >> i wish it were more, you know that. oh, come on, don't -- take off

that kissing. haven't you heard my love of "squawk"? >> that's kernan. >> those were the days. i miss mark every day. cnbc turns 25 today, so i think this is a terrific moment. moment to reflect on how business has changed over that period, how we have changed with it. first of all, when the network was born, i counted myself among the skeptics. i had watched the financial news network when i first started managing other people's money out of my dorm room at harvard law. i thought it was useful. you had to call brokers about how your stocks were trading. in all honesty, i did watch it for the tape. the ticker thing in the bottom lower third of the screen, much more than for the information. i wanted to get a feel for the action, the way the day was going. nothing tells the tale like the tape. then i went to goldman sachs after graduating from law school and i think i would have been fired if i had suggested watching f&n. i had my own machine to bring me all the information i needed and

had the dow jones news tape to give you all the corporate news until 7:00 a.m. yeah, it started at 7:00 and ended early. if you were a stock junkie like i was, you are still watching public television that is still produced by cnbc. and other words you can watch the national news with volume. that was it for the news until the wall street journal came out the next morning. when i left goldman to start my hedge fund in 1987, i brought along the tools that i had at the brokerage. a couple years later i heard people talk about this network where they were breaking news and talking about stocks in a creative way, talking to ceos, but back then about having a television in your office seemed like the height of uncertainty. you are supposed to be, log and not watching tv, for heaven's sake. i would dismiss anyone watching it have at work, so how can i put a point in? two years after the network's birth and i realized i had no choice, cnbc was becoming a realtime newspaper, a living, breathing organism. and i was tired of hearing about

stories secondhand that i missed on the network. i ended up having to beg the landlord to wire the place for cablement and one of the reasons i moved my office is he wouldn't let me have my cnbc. not long after i found myself messerized mark haines, i used to talk to everyone in the office back then. they should be yelling this or saying that, next thing we know we have e-mail and i'm screaming in all caps saying how he's getting this thing wrong or should emphasize this bit of news right up until he finally answered my e-mails and said it was time to put up or shut up and be a guest host on "squawk box." he put me on the air. life has never been the same for me since. i hope it hasn't been the same for your either otherwise all my years as a guest host on "squawk" followed by nine at "mad money" haven't made much of an influence, but i hope that's not the case. but this network is indespepsable, but because you ignore cnbc at your own pearl.

business news is too important to wait until tomorrow's paper. and when the paper arrives, it's been overrun by events that this network covers in realtime. these days we all do our part breaking news and explaining it and making judgments, teaching. all to help you make money without fear of favor. i'm proud of what we do at this network and carve out at "mad money" to celebrate business and hold people accountable for what they do. i'm thrilled to be a part of it. thank you for taking us into your hotel, office or home. up like when i got started in this industry, these days i think it's fair to say that if you're in the money business, you get fired if you don't watch cnbc. and you know, it takes a lot of great people to keep a network thriving for a quarter century, including one voice you hear every day on the show. but never get to see. we'll change that tonight. ladies and gentlemen, jim birdsall. >> thank you, jim, and thank you

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good evening. i'm jim cramer. welcome to my world. we call my world "mad money." i want to help make you rich. really rich. what is "mad money"? it's that little bit of extra money. scratch that, it's a lot of extra money. and that you can make by making the right investments. >> no, that wasn't a puffy shirt. it was a puffy guy. anyway, can you believe i haven't aged at all? maybe i look a little younger, not really, but this is all in honor of cnbc's 25th birthday. we want to remind you how handsome i was when "mad money" premiered nine years ago. back to business though. now it is time for the lightning round. buy, buy, buy, sell, sell, sell! the lightning round is then over. are you ready, steve dad day. time for the lightning round. i'm starting with shawn in iowa,

shawn! >> caller: hi, jim, this is shawn from muscatine iowa, and black rock reported today. >> that stock was going up. it was going up before the quarter. i want to buy it. i think it's doing a good job. let's go to tyler in my home state of new jersey. tyler! >> caller: you're from the garden state, jim. great to be on your show. the medical equipment manufacturer whole logic. >> they just haven't really delivered the good for so many years. we have to move on. by the way, ge's health care number was not that good either, that's a nice cop to hologic. gelall? >> caller: thank you for taking my call. i am talking about sunedison. >> i'm thinking this is the

right way to go. i do like first solar but sunedison has gained. i like it. domenick in hi home state of new jersey. >> caller: jim, how is it going? >> going okay, how about you? >> caller: i'm okay. my question is on mankind. it has been doing well with the fda, they have to get approval but i want to get your thoughts. >> mankind is a cold stock. if i say something negative about it, i won't go to twitter for four days because all that will be in my feed is what a jerk i am. i think the new device, i wish them luck, i don't know how big the device is going to be. that's all i'm going to say because i'm critical and skeptical. now i'm going to fred in ohio. fred? >> caller: hi, jim, five-year listener, you've done a whole lot more. pcar. >> pcar, i have to spend more time on this one because there's a truck bull market. we know that from the companies

talking, from alcoa all the way through to the companies that reported today. you are in great shape. as a matter of fact, buy, buy, buy. pull the trigger! christine in pennsylvania, christine? >> caller: this is chris but my grandsons call me boo, i have a boo-boo-yah for you. i'm talking about whole foods and i want you to tell me that i'm going up otherwise whole foods is going to lose a customer. >> i have to say, i'm shocked in the decline of this stock. they have a small position, wanted to buy more, we are just scratching our head. we know there's competition and know that walmart is coming in, but these guys are good operators and this stock has been straight down. we are taking a pause trying to find the right level to buy more. we are obviously not there yet. i feel your pain and you file my pain. this is a tough one and i don't have an answer about why it should be this far down, not yet. i need to go to james in texas.

james? >> caller: howdy, cramer. boo-yah as you say in cramer land. >> that's right we do. >> caller: an actual subscriber, i started to listen to you in bulgaria. >> bulgaria, they have a king there now. he's a savvy guy. >> caller: yeah. mark haines recommended i listen to cramer, so i started listening to him. >> thank you. >> caller: i've been following you ever since. what do you think about isis? i was wondering if it's time to start snizzling back a little bit. >> yes, the bio tech stocks have not found their footing yet. the btk is one of the biggest danger zones in the market. that said, this stock has been cut in half. i think there's some real value to the situation, but remember, we have not reached the bottom yet because they keep humping out new bio tech stocks.

that's the problem, too many ipos and insider selling. it's day will come, i'm not calling the bottom here. and that is the conclusion of "the lightning round"! >> the lightning round is sponsored by td ameritrade.

for the last couple of weeks, the banks have become real dolls.

and when they do fall back, then earnings seasons starts and the banks report for their quarters. today we start to hear from the regional banks key for you home viewers, one that i liked for a long time. so what did key based in cleveland with over 1,000 branches across the country have to say? they reported a 2% earnings off a 24% basis with inline revenues with 4% growth year over year including the 9% in commercial, financial and agricultural loans. meanwhile, key is still cutting costs left and right. if we take interest rates, these guys will make a killing. that's how banks make money. they pay you next to nothing for your deposits and lend the money out at a much higher rate. while we wait for the uptick in rates, this is aggressive for shareholders. in the past quarter, they used $560 million with a buy-back authorization for 2014 that

equals 9% of the market cap. they are boosting to give the stock a 1.9% yield. now the stock has given up a 16% gain since we spoke to the ceo back in october. let's check in with beth mooney, the chairman and ceo of keycorps to find out more about the quarter and where her company is headed. miss mooney, welcome back to "mad money." >> thank you, jim, glad to be back. >> you have a tremendous 9% commercial industrial growth in loans, where are those loans concentrated? who is taking them? >> it was one of the strengths of the quarter, and i will tell you that we are leading our peers in that regard. our commercial lending is up 9% year over year and 4.5% length. and generally it's across the board. our business model is whipping with clients, but if i were going to look at sectors that are doing particularly well, i would say energy, health care,

technology, but geographically it's well dispersed and a strong quarter for us in lending. >> it turns out that geographically key has a lot of overlap with what turned out to be the new oil and gas portion in this country. >> it does indeed. the energy sector that the natural gas and the shale play as we like to call it is right in our backyard. >> okay, so let's go over, i think people always want to hear, wait a second, they hear that if interest rates went higher you could make more money. what exactly, what rate is the optimal rate for shareholders to make the most money on owning key corp? >> any lift in the short end of the curve will be very very good for banks, but particularly good for a bank like key. with our large commercial lending book, 70% of those are variable rate loans, which are tied to one-month liable or prime rate. so as we get some lift in the short end of the curve, that's where you will really start to see some momentum in the earnings and revenue. >> okay, what are the things

that you mentioned in the commercial that are doing great, you have an impeccable home equity book. what is it that you guys do right? that the other guys aren't doing? >> good old fashioned back to basics lending. our home equity book is branch originated, they are customers of the bank. we make sure they have strong credit, but it is also for a strong need. as you pointed out, 58% of them first liens, so many act like a mortgage for our clients. we keep strong fica scores and very low loan to value. so at the end of the day, it was a high performing book through the crisis and for us has been one of the most profitable consumer lending proublgts. >> let's look back n the 2006/2007 period, key very high dividend, 400 million shares, is it reasonable to think one day given the fact that the country is growing again, we could go back to that smaller share count and higher dividend? >> well, as you know, through

the downturn we all issued equity as part of the recapitalization plans in the financial downturn of 2008 and 2009. and then in 2010 as we all repaid our tarp obligations. so we have a larger shareholder base, but what i think is important is where you started is that we are successful in returning capital to our shareholders. our second consecutive year through the process, key has been able to return levels of capital to shareholders in the form of dividends. and our investors find that very attractive. and it is one of the reasons many of them hold key. >> m&a comes up as being a bright spot, people don't think there's a lot of m&a going on in the country, who are the companies? who are they acquiring and merging with? >> it's interesting because when we look at what uses for the commercial lending, it's not a lot of historical plant and equipment sort of lending or building of up event terroeven .

they are looking to buy competitors as a way to grow, so yes, there's a fair amount of m&a dialogue as well as m&a activity going on. it's just son a smaller scale, but it's part of corporate america learning how to grow their business in a slow economic environment. >> well, excellent. i want to congratulate you on the best performance of the banks we follow. great job for key corp. good to see you. >> thank you for your support of key. >> of course. this has been a big winner and will stay a big winner stay. with key corp. and cramer. monday, kick off the day with "squawk on the street." live from post-nine at the nyse. >> listen, i don't like it either. i don't like it either, but you have to buy it. >> it all starts at 9:00 a.m. eastern.

all right. google and ibm, did they stink up? absolutely do. people hate them now? yes. why would you own them? because actually one is going to turn in 2015, that's ibm. you can't wait for 2015.

and google wasn't even bad and the money managers are going to flock to google because it's got growth at a very reasonable price. happy 25th cnbc. i'm jim cramer and i'll see you next time! ♪ good morning and welcome to a very special edition of "worldwide exchange." i'm domenick chu here at cnbc headquarters along with sarah islip. >> the european markets are closed and the hong kong exchange is closed for a holiday, but the u.s. equities open in four-and-a-half hours. maybe 5:00 a.m. here in the u.s. on the east coast, but there's a lot happening around the world already. let's get to it. >> all right. we'll get a check on what's happening on u.s. futures. again, we have markets open here, you can see the s&p up about, we'll call it just about

flat. the dow jones implying a 25-point rise and the nasdaq up 7 points overall. remember, we are coming off a short trading week. the s&p and the nasdaq had four straight days of gains. the dow spent the week in the green only to lose a little bit of steam on thursday. and close out just in the red. of course, the nikkei and shanghai composite, the dow industrials are down, the nasdaq composite and the s&p overall. with the asian markets it is a bit different, we are just getting our feel for what the markets are doing. so sarah, an interesting day. >> we have big news overnight with japan and the record trade deficit. here's a look at what we are covering for you this morning. big things at the new york and beijing auto shows. we'll show you some hot new cars. the whole lineup live from beijing. we'll also get the latest on the new revelations about potential problems with general motors' recalls. also, a huge week for earnings. the earnings parade hitting up with major names reporting including netflix out later

today. we'll breakdown all the numbers you need to know and the big names. and with momentum stocks losing steam, the old school tech the way to go. we'll look at why investors are saying time to get back to the basics, perhaps the early '90s. all that coming up in the 5:00 a.m. hour. >> it's a great show, but coming off a strong week with the major u.s. averages still in the red for the overall month of april here, so what should you be looking for for this week overall? david deets is the president of point wealth management. david, welcome, with the markets the way they are, there's no sense of panic. we are just a couple percentage points away from the all-time highs in the s&p 500, but the markets have given investors a reason to be skittish, right? >> absolutely. we have seen a massive rotation in the last couple weeks with a move from the momentum stocks through teslas, facebook and twitters into the value names. so that's masked by the overall market averages, but you point off just a little bit off the

all-time highs, but there's real carnage. the real question for investors this week is that is that going to be contained in that biotech social stock area or is it going to spread into something more only nouls. >> do you think it's going to be contained this open? large cap value stocks, large cap growth stocks, just the ones with more stability or longer track records, are they the ones investors should be going towards now? >> we think so. you know, we've got a u.s. treasury which has dropped overnight down to 2.69. what is that telling you? that's telling you the economy isn't quite as fast as everyone would like. therefore, i think there's going to be a gravitation into the big names, the more stable names, the dividends, better value names. >> so are you saying that the treasury market and the stock market are telling different stories? >> i think they are. and that's one ominous thing that investors have to watch for because we've got, as you point out, all-time highs nearly on the stock market. very robust evaluations. over 16 times earnings, but where is that ten-year treasury.

below 2.7 this morning. what is that telling you? the bond market is looking for deflation, slower growth. >> i just wonder, we have been in the earnings season before where it's been low expectations, the companies deliver mostly profit beats, but a lot of weak signals on revenue growth on outlooks. is it good enough this time given that valuations have climbed, is it good enough to keep the rally sustained? >> it's going to be the actual earnings numbers, and those are expected to actually be down year over year. and that's not just sufficient to keep this market up at the all-time records, so it will be all about the outlook. now the and lists are talking about in the second, third and fourth quarters, earnings up 10% to 12% year over year, is this going to be confirmed in the guidance and in the conference calls post earnings? and also, what are they doing with the cash they are making? are they increasing dividends and buy-backs? that's where the rubber hits the road for investors looking forward.

>> your clients where, are they asking or telling you they want to be right now? or are you advising them because overall your clients have to be feeling like there's at least some places they want to be or want to avoid, right? >> absolutely. what we have seen this year is certainly there's increased aggressiveness in terms of the market. and that actually can be a little bit of a contrary from point of view nerve-racking, but so far at this point we are not seeing a lot of clients on main street saying, get me into the ipos and the m&a action. in that sense, we are not in bubble territory in terms of the market. >> i want to ask about international because we saw big news overnight, japan's record trade deficit. obviously this is a country that is in transition, but it's important now that we're all linked. and now that monetary policies have start toddy verge, how does that impact the u.s. market? >> yeah, that's a great wild card. the scary thing is overseas economies are not doing well. they are slower to recover.

that's the bad news. the good news is that monetary authorities overseas are far more aggressive in terms of continuing to potentially provide more monetary stimulus including japan, including europe. and i think china, too. so we'll see what happens here. >> now how are you playing the internation trend? with etfs or picking stocks individually for clients, how are you doing it? >> it's a combination. we like the major u.s. blue chips with great franchises, the cokes of the world, the phillips moore based here for the most part and have operations over there, but selectively we are also looking at etfs and major holdings, particularly for the emerging market. over the last four years, you have seen no growth in those stock indices while the u.s. market has doubled. and so that has developed a valuation discrepancy worth looking at. >> you are not scared off by the stronger dollar with effective earnings, you have seen it across the board.

proctor and gamble, coca-cola, pepsi, all the names. >> sarah, that's a great point because most analysts are not talking about the effect of a stronger currency. and if that dollar starts to rise as we taper here ultimately with interest rates going up, that pushes the value of the dollar up. >> that's going to generate profit. >> it will make things overseas worth less. that could be a head wind. >> always about currencies. >> thank you, david deets for joining us on "worldwide exchange." up next, the nba playoffs are underway. we'll talk to the new ceo of the atlanta hawks fresh off this team's victory on saturday about his plans for the future of the franchise. he joins us live, next. and plus, has the fast food industry gone too far outside the bun from waffle tacos to fried chicken burgers. are these bets paying off for the stocks? and sarah, we know it's early out there, or is it late for you? we want to know, are you just

waking up or still up from your shenanigans on sunday? tweet me and sarah with the #perkupmonday. "worldwide exchange" is back after this break. thisreak.

welcome back to "worldwide exchange." the nba playoffs are kicking off in the eastern conference. the atlanta hawks defeated the top seeded indiana pacers on

saturday. game two of the series is tomorrow night. now, with us now is steve koonan, the new ceo of the atlanta hawks and the former president of turner entertainment networks. mr. koonan, thank you for joining us today. with the atlanta hawks, it's got to be an exciting time to be the ceo of a company or a team that seems like its on its way up. what does the future look like as a ceo coming right into a new position like you are? >> well, it's very exciting. first of all, i'm undefeated as a ceo and an owner of the atlanta hawks. >> that's great. >> i think that could go in the history books today. we'll see about tomorrow. but nba is a growth sport. nba is a global sport, it is being played at a very high level and in major cities around the world. the tv ratings are great, the attendance is great, the virtual consumption through video games, through jerseys, and it's making

its way around the world with increasingly more international players. so i look at this as an opportunity to move to a real big growth industry. >> i love reading your buy yiogy and your background going from atlanta to atlanta. coca-cola to turn ir. i guess being at turner, the nba isn't really new to you, how does that help you stepping into this role with the hawks? >> well, actually, my first big project at coke 28 years ago was an nba fast food deal. i heard you were going to talk about fast food next segment with a new meal, a box of nothing but legs and a spun web meal. >> the new meal, that's great. >> what year was that? >> it was 1986. >> whoa. >> it was a box of nothing but legs and a spud web meal out of wings, potatoes and of course a coke on the side. >> now, steve, it's interesting because you talk about your background. these days it is not just about

big brands, basketball, all other sports are about cross-branding and cross-platform entertainment. you're coming from turner sports to the atlanta hawks, how much is the entertainment side of things, that the sports network and the broadcast side of things intertwined with all of sports now and how much more will it grow that way in the future? >> they are linked. every time somebody sits down at the television, we compete in sports against entertainment options and vice versa. and what we love about sports is technology is taking a lot of television to delay viewing, whether through video on demand or your dvr. and sports is live, it's of the essence, it's real and then we are also seeing incredible interaction with technologies like twitter where people are talking during the game and are running dialogue. and it's kind of become america's water cooler. >> you do have some work to do, steve, i just want to mention the fact here that the team had the third lowest home attendance of any team in the league, even though you did make the playoffs last year.

how do you intend to fix that? >> we have to build an emotional bond. there are so many wonderful entertainment options here in atlanta. and we have to make the hawks mean something to the fans, so we'll be working very hard to craft messages to be in the community, and that was a big part of me coming and to have a local face with somebody's family invested in this community for virtually 100 years, coming and telling people that we are serious, we mean business and will create the great entertainment experience to draw fans to phillips arena. >> mark lasery, the hedge fund paying $550 million to buy the team with the worst record in the nba, the milwaukee bucks. i mean, clearly, this is an investment in the nba and in the franchise. you see it as a good value proposition here? >> i do. actually, mark cuban thought he stole it. he feels that every team should be, you know, valued over a billion dollars. and again, with the increase in

live television and sports becoming the mainstay of live television, with the increase of different types of consumption with handheld devices and mobile being so popular, we think the nba is a big-time growth vehicle. >> all right. steve, thank you very much for commenting on your new position. and we know you know fast food earnings, mcdonald's and dunkin is going to be reporting. and menu innovation is still the topic du jour, pick week for the global economy. steve, what do you think about the innovations we have seen at mcdonald's on the dollar menu at more? >> it fits our mobile lifestyle. there's so many -- when i was coming over here very early this morning, you could see people getting off the highway headed to mcdonald's for a breakfast solution that barely breaks the speed as they are going to work.

and traveling. so you have to reenergize your menu. you have to offer both value, but you also have to offer up no ovation that fits a lifestyle. >> now, steve, at what point does refreshing your brand go overboard? i mean, how much do you dilute your message and offering if you offer too many options for your consumers for your viewers, for >> if you are not true to your brand and stay authentic to it, you are not staying true to your brand. there are occasions for different opportunities, but if you remember the mcdonald brothers starting 50 years ago, they served hamburgers, french fries and coke. today, i don't think you can get away with that, but you have to stay true to who you are. >> you mentioned breakfast, that really is what investors are looking at right now when it comes to mcdonald's. obviously, it has the lion share of this market, but young brands making a pretty big and aggressive move with taco bell

and the waffle taco. >> i want to try one. >> starbucks also getting into it. i mean, how much does mcdonald's have to lose? >> i think taco bell's had a history of innovation and what y have done in creating the hard shell tacos. now they are going after a big segment and portable segment. and the incremental cost of keeping their stores open is really driven by the uniqueness of their offerings. and i think it's going to be another war in fast food. >> steve koonin, thank you for joining us. the newly minted ceo of the atlanta hawks. steve, maybe just one more quick rediction, how far do you go in the playoffs this time around? >> i learned in television never to make predictions on how something was going to do. so i was thrilled to have the team play so fantastic on saturday night. i think we're going to give the number one seed, indiana pacers, a very difficult run for their money. >> outstanding. we wish you the best of luck with that. good luck with the atlanta hawks

and everything else. thank you so much. >> thank you, join us for a game. >> you got it. next time in atlanta, we'll do that. >> we would love to have you. >> thank you. up next, netflix shareholders are taking a big hit from the last month, so will today make things worse for netflix? plus, are you watching the real estate earnings? our next guest says you should be investing in some of the reid stocks. much more "worldwide exchange" straight ahead on cnbc. @@

still dark in times square right now there in new york city, so we are kicking off a big week for earnings. take a look at the names set to report just this week alone. check it out on monday. today, we got netflix, we have been talking about that. and fun and games with hasbro. on tuesday you have big names, mcdonald's happens on tuesday. at&t and travelers. and apple on wednesday along with proctor & gamble. thursday, caterpillar, microsoft, blue chips, all across the board. then on friday, you've got ford. if it's a big week, if you thought last week was heavy for earnings, this week you have close to 150 s&p companies and 11 dow components all reporting

their numbers, sarah. >> yeah, set the tone. netflix is the biggie as you mentioned after the bell today after flying high last year. take a look at shares. they are actually down nearly 20% over the past month off of those highs in february, but despite the recent pull-back, if you take a longer term perspective, shares are up more than 110% over the past year. netflix projected to report first quarter earnings of 81 cents a share. here's what to watch for when it comes to streaming video subscribers. content acquisition, costs and any mention of amazon's fire tv. just looking at the analysts estimates, netflix is forecasting itself 48 million subscribers by the end of march, which some analysts say is a little ambitious, though netflix does tend to be conservative when it comes to guidance and does tend to beat. obviously this is a momentum stock and will be a big mover. >> the fine line between ambition and conservative, netflix is a stock that needs to find some way to show investors

to get growth. why? because it trades at 180 to 190 times earnings. and it trades at a massive valuation for a lot of investors. so unless you can get some kind of show of force with earnings growth, subscriber growth, something along those lines, it may be tough to justify for investors where the stock is going. it's off 25%. it lost a quarter of its value since march 6th. it will be a big valuation story for these guys. >> no question about it. when it comes to netflix, the question is whether it can generate that growth internationally in a more saturated u.s. market, which it's already dominated. the other question is amazon, which has been a formidable competitor. >> big balance sheet, yep. >> i wonder if reid hastings forthcoming on the earnings call will make a mention about it and we'll talk about higher fees, because that's at stake here, whether the competition is leading to higher acquisition costs for the content deal. >> it feels like an arms race for content acquisition and they will keep paying until they get

it. >> netflix always a show stopper after the bell. speaking of earnings, a lot of real estate earnings on the way up this week. my next guest says real estate investment trust will be the real star this week. with me is the riets, maybe not the sexiest story out there, but certainly one to pay attention to, right? >> absolutely. thank you for joining me. you have to look at commercial real estate as a whole what is a great alternative investment because of rising occupancy levels, still low interest rates and expanded lending sources. and riets are some of the best operators of commercial real estate and they were overly punished last year because of speculation that interest rates would go up more than they actually did. and this year because the environment is more stable, they are performing pretty well. >> let's pull it apart further because when you think riets you

think housing, but there are a lot of folks like you included like industrial rates as opposed to apartment or more traditional housing rates. >> well, the apartment sector has been the leader in this commercial real estate recovery cycle. and it's very mature in the cycle, it's still doing well, but there's a lot of demand for apartments by renters by choice as well as new demand coming into the marketplace. but industrial as a sector that moves along with the economy, so global trade and the distribution of goods around the country, which really kind of echoes what's happened with retail sales in the comeback of the overall u.s. consumer, speaks for very well for the industrial sector. >> think of it as a macro play on what's happening in the u.s. and overall. are there specific companies and real estate investment trust that is you're looking at as standout propositions going into the next 12 months? >> sure, there's a lot of great players out there. at a macro level, industrial, which we just covered a moment

ago, offers a lot of opportunities. and within that sector, of course, first industrial are market leaders, and within apartments there are a lot of interesting things happening. essex property is now the leader in the western u.s. supplying stream markets. on the retail side, there are a lot of great names like gdr, simon properties and general growth are leaders there. and even though lodging sector, which is tending to be at a macro level more volatile has shown great performance over the past few years. in fact, it's the number one performer if you go back to the recovery since 2009. so there's a lot of options in the space, but again, looking back at it, even private investors that milk up the bulk of real estate investing in the u.s. are back in the market, very active, direct ownership by institutions is way up as well as the obviously option to own riet shares. >> my professor in real estate

college told me this is the most fixed asset place to put money in your portfolio. thank you for joining us on "worldwide exchange." >> tuesday, xirsing home sales, wednesday, new home sales. meanwhile, several deals, blockbuster deals that could be in the works. we know talks between barick gold and new mining have hit a snag though discussions are likely to resume. the companies aagreed to a deal where barrick would buy newmont mining. and square discussed a possible sale to bigger rivals such as google and paypal as the mobile payments company continues to lose money. square denies its ever been in talks with google at all, but this just speaks to this growth industry of payment systems and payment networks. that's going to be a huge deal for sure. >> yeah, for facebook getting in as well. the u.k. sunday times reporting pfizer has approached

astrozeneca about a possible $100 billion takeover. no talks are underway after astro resisted the offer. >> talk about a blockbuster deal if it were to happen. so that is the deal talk out there. straight ahead on "worldwide exchange," a few rough weeks for tesla, priceline and amazon, so perhaps it is time to get back to the basics when it comes to technology. find out why one investor says old school stocks are the way to go. >> it's going down. i'm yelling timber.

♪ that's washington d.c. early on this monday morning. the nasdaq is taking a dip and my next guest says it's time to go old school. tom is the editor of et trends joining us from irvine, california, where we thought it was early here, it is very, very early for you out there in l.a. >> happy perk-up monday, domenick. >> the real question is, have you stayed up all night or are you just waking up? >> i got to bed a little early, woke up, i'll probably get a few more hours later on, but it's great to be with you. >> so tom, we have to get to this because this is interesting

from talking so much about the new school-type companies, the facebooks and social medias, the netflixs of the world, but you're saying it is time to get back to basics with investing. how are you playing this market currently and where are you seeing opportunities for investing in this particular type of market? >> well, you're right, domenick, tech 2.0 is getting all the love, but the old guard, the microsofts, intels, the ibms, the ciscos, haven't been getting as much love but they have a lot of cash. they have a lot of dividends. and what most people don't think about is tech stocks have accounted for over 1/3 the increase in dividends that we have seen over the last seven years. so it's important for investors, especially eft investors that we look at, they are really concentrated on not only tech opportunities but also most importantly dividend opportunities. and with this one, in particular, etf out of all 26

etf, the first trust, nasdaq technology dividend oriented eft has really been doing well so far this year comparing to all tech etfs that really haven't been doing so well. >> it's an interesting point, obviously investors caught on to the trend, but not to pick on ibm that just reported the first quarter growth in five years, eight quarters without revenue growth could be a tough one to swallow for those looking for some sort of a growth stock. >> you're right, sarah. looking at intel as well, on the earnings, they didn't do so well as far as sales, so that's the big question. are the big tech companies going to continue to bring in the cash, but the thing is, they are sitting on a lot of cash. they do have a lot of buy-backs right now. they do have a lot of ownership within this industry, but they are also buying other companies as well. so, not as risky as the 2.0 companies we like to talk about, but a lot more stable than 20

years ago. >> if you look at the theme in some of the companies when it comes to strategy, intel, cisco, i be, m, they are late to the party at not at the forefront of cutting edge technology. is that a benefit at all when it comes to how nimble and how they put the cash to work. do you see that as a defensive play here amid the momentum sell-off? >> well, as far as momentum, absolutely. they are not there, but they really are the pillars of the technology industry. if you look at their capital ratios, if you look at the amount of cash they are sitting on, huge. eventually you will see the facebooks and twitters and linkedns pop back. but today investors are looking for less volatility, stability and dividends and this etf offers that. >> tom, this is the biggest sector of companies representing technology. will it still be a leader in the coming year? >> well, i think so.

that's how the growth is. if you look at all the sector that is are out there, technology has brought long-term growth. you don't look at these, let's say, the old guard as long-term growth, but it's really the stability that gives -- our national gdp a lot to lean on, and i think we're going to continue to see that going forward. >> gotcha. so tech remains a leader in this environment. tom, thank you so much for joining us. he's the editor at etf trends. >> all the throw-back to '90s tech. speaking of old school, we'll go to auto industries. some of the biggest names are at the beijing auto show right now looking to boost sales in the critical market of china. huge market, new products, eunice is joining us now with all the highlights. good to see you, eunice yoon. >> this is the biggest car market in the world. despite the fact that the economy is slowing down, everybody wants to be here, and

that includes gm. gm is a dominant player here and they are moving aggressively saying they are going to be investing $12 billion over the next three years here in order to build new plants. now, they also said they expect to be growing in line with where the market is going to be growing this year. somewhere about 8% to 10%. and this is despite the fact that they have all the u.s. recalls. in fact, the president told me that the u.s. recalls really haven't had any impact on their sales here so far. >> we haven't seen any impact and i have not heard a lot of discussion about that in my days here so far, but currently in the u.s. we are putting the customer in the middle of everything we are doing. we are working very quickly to address and repair the vehicles involved. and make sure that our customers feel good about how we have handled this. >> and gm had another recall evaluation over the weekend. there were federal documents to show that gm waited for years to

recall the saturn ion with steering problems. the company's president didn't say much about that except that he said that gm moves as quickly as they can on recalls. now, in terms of some of the other trends that we saw here from the beijing auto show, despite the fact that the economy is slowing down, the big winners have been luxury cars as well as big suvs. those are the most popular. and ford is jumping on the bandwagon. they are launching the lincoln brand here. and this is what the ceo of ford told me over the weekend. >> in the united states we are bringing all these new lincolns out because we are investing in transformer lincoln. and i think i would characterize it as all the technology that ford brings to bear plus the elegance and it's affordable luxury that people want today. >> reporter: and ford has been moving very aggressively in this market and said they will be unveiling and launching the lincoln in seven cities this year. and then they are hoping to

raise that to 50 cities by 2016. >> thank you so much, eunice. town cars, interesting. i love the iconic brand for sure. that's eunice yoon. alibaba is rumored to file for an ipo this week, so what does that mean for yahoo! shareholders? we'll talk to one live after a very quick break. predicting the future is a pretty difficult thing to do. but, manufacturing in the united states means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done.

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it is hard to believe it's been a year now. the oldest marathon was changed forever by the terrorist bombings in boston, but this year's boston marathon is expected to draw a record crowd and the largest field in nearly 20 years. our very own scott kohn is live in boston with more on preparations for today's big event. scott, i have heard the term unprecedented mentioned with regard to the police or presence of security. tell us what it is like down there right now. >> reporter: well, there is security, don, but it is not obtrusive. they really wanted to make this accessible and yet secure. and we'll get to more of that in a moment. almost from the time of last year's deadly attacks, boston really wanted to get to this day, to prove that they can move

past last year, that this is a tradition worth continuing. you can take a look from above as people begin to gather out at the start out in hopkinton. this is a massive undertaking in any event to go through eight communities. they are expecting a million people lining the route as this marathon goes on through the day. and a field, the largest in 20 years, some 36,000 runners. and they said that nothing was going to keep them away, whether they were first timers or veterans, they really wanted to be here. we visited with some of them at the annual pasta dinner carb loading before today's marathon. and they said that maybe some friends and family were a little bit worried about their staffty in this but they were not. >> as soon as that bomb went off, i thought, there's nothing going to stop me from coming back this year. no, this is more than just a race this year. we're here to prove a point. >> reporter: take a look at some of the security that you can see. we were wandering around a little bit on boylston near the

finish line with more cameras visible, certainly a decent police presence. but as i said, they are trying to make it accessible just the same even though there are restrictions like no backpacks near the finish line. for extra good measure, yesterday at the old south church, the traditional blessing of the runners took on extra poug nance this year as they remember last year. we are about three hours away now from the start of the marathon. sarah? >> thank you, scott cohn. we'll continue to check in with you, the 118th boston marathon on patriots day. now we turn to the markets with futures higher, keep in mind european stocks are closed today. the currency market, though, one of the few that is up and running at this hour. the u.s. dollar is actually starting the week on a high note thanks to better u.s. economic data. recently we got japan's record trade deficit and ukrainian tensions all playing into the trade this morning. with us, dan katsip and michael gerka joining us. dan, the u.s. dollar stronger,

treasury yields rising, is this the new pair dime where the dollar strengthens on the back of a stronger u.s. economy? because it is not always like that. >> i think that's heart. i think the dollar will do reasonably well because yields are gradually moving higher. fx is mostly policy diversions and the fed is getting closer to the exit as other strl banks are staying on hold or moving closer to further easing. >> well, it's unusual, michael, maybe you can address this, the euro is still 138. it's still strong and expensive for us to go travel to europe and for the europeans to export. why is that if the ecb and mario drugge is moving to quantitative easing and the u.s. is going the other way taking away the punch bowl? >> clearly, that's exactly why i puzzle myself on a daily basis. the dollar strength has been off the grid for the last six months and for the euro to even have the quandary of 140 to me makes no sense, and i think absolutely because of central banks alone i

would get bearish on these levels. >> dan, we talk about the currency dynamic with a number of factors that go into it, but overall it's about whether or not you have economic fundamentals on one end to drive the value of the currency or geo political risks and the flight to a certain type of currency on the other end. where do you think the real balance is right now? the scales are near economic fundame fundamentals or other tensions in crimea and russia? >> the problem is, the fed is moving towards the exits but rates are moving only very gradually higher. we have a two-year note yield just below 40 basis points. that's not exactly very high yet. we think we'll get closer to 50, 60 basis points as we move through q2 and q3. with the ecb leaning in the other direction, that rate differential will widen with a gradual process because the fed isn't exactly hiking very quickly. >> on one hand it's the fed and u.s. yield, which by the way,

yields were higher last week for the first time in four weeks, but it's also about what's happening in japan. and i can't emphasize this enough, the u.s. dollar japanese yen has been a key indicator for the u.s. stock market with a lot going on in japan, for instance, overnight we saw a record trade deficit. how much is that the key to other markets right now? >> well, i think the japan influence and the effects market alone has been huge. everyone i speak with in europe references dollar/yen almost right out of the bat in every conversation, but sarah, one of the things i've been looking at is consolidation in the copper market down near at $3. i think it has a huge proxy, not just to china, but how demand here in the u.s. along with numbers we'll see this week in housing can start rebounding. but again, i think copper is undervalued at these levels at the precious metals are getting most of the attention. as you can tell, i'm somewhat bullish fundamentals for growths due to these reasons. >> dan, you're a chief strategist for fx, you have to

talk to clients about where the best trade ideas are, so where are you advising your clients to put their money now? where is the most compelling opportunity in fx as you see it? >> well, we think you stick with the dollar now into q2 as you move through q2. the fed is moving through the tapering process, it's going to guide yields gradually higher over the course of the year. you have to be patient. we are not looking for a massive move in fx because rates are moving slowly. a dollar against the swiss frank is a good trade right now. dollar/yen will ultimately be a good trade with patience key. >> it's been boring. currency volatility is a seven-year low. is this new regulations or is it -- >> i think it's really because the central banks aren't in play. most of the g10 central banks we know what they are doing, the fed is on a course for gradual tapering as long as the data holds the way it has been. the ecb will be interesting in the second half of the year, but we have to wait for cpi data before we know what the ecb is

going to do. >> thank you so much. on this monday morning, everyone is talking about alibaba. find out why, next. plus, we'll read your tweets. thank you for tweeting in. you still have a few more minutes with all the news that helps you perk up on monday as well. some fun stories. that's all coming up on "worldwide exchange."

welcome back. alibaba is rumored to file for an ipo this week. what does this mean for yahoo! shareholders with a big stake in the company? many investors say they bought yahoo! for the alibaba stake. so will they leave yahoo! when alibaba goes public? david, here is the question, do you own yahoo!? >> i do own yahoo! and have owned yahoo! since early 2013. obviously, we have seen previous to that dan loebs activist role and change in management, but obviously it helped cattize attention on alibaba.

and in terms of the growth, basically it's very attractive. >> do you own yahoo! after alibaba goes public? >> that's a very good question. it's a 2.5% position in funds we manage. and we have seen accelerating revenue growth, but yahoo! on its own, it is very much of a trailing name, but they'll have a lot of cash after this transaction. if they pursue an acquisition of aol, which will say they will be a search partner both to microsoft and google, if that position remains, then you might have something there that's intelligent. but for investors looking for just a cash to come out of yahoo! from the alibaba sale, they will be disappointed. >> how much of yahoo!'s value right now is driven just by the alibaba speculation or how much they think it will be worth for shareholders? >> 24%. >> the value per share is about $25 depending upon sort of where you think alibaba is coming out. 130 to 150 billion dollars. >> is that what you think? you think it can get up to $200

billion evaluation, which is what they are talking about? >> i never underestimate them to pump this up before the ipo, so there could be an upside. i think there's directionally positive support for being long yahoo!. >> back to the zrat ji for a moment, if you strip out alibaba, what about the opportunity to turn this company around? she's made more than a dozen acquisitions already. why is it aol you are banking on and have the acquisitions yielded anything with the turn in the business? >> there's no question whether they paid this out. in the case of going out and buying aol, you have a business that's generating both revenues and profits. if we look at a wide number of the social networking names going public. a lot of them have revenues. some of them may not depending if it's what's app, but investors are looking for marissa meyer to put businesses on top of the list.

>> you want so to see marissa meyer make good acquisitions, so what keeps you as a yahoo! shareholder after the alibaba ipo comes to true with igs. what else do you need to see besides those acquisitions? >> let's look at the timing of the ipo. it's probably sometime in the fall, so we'll have basically march and june quarter results out of yahoo!. we need to see continued acceleration in terms of display business where we have seen year over year starting to grow, but there's a head wind there basically declining prices of subscribers to mobile. we need to see the head wind start to lift and need to continue to see volume growth in terms of pricing year over year and also units improving as well. >> are you a buyer of alibaban. >> on its own, we have a lag here in terms of quarterly results. the numbers for yahoo! were the december number zblls.

we are expecting a prospectus this week. >> it's been rumored, but somebody has been leaking information. if it didn't happen, expect a sell-off in yahoo! this week. >> i just wonder if the current environment to sell off momentum in technology stocks, we have seen it impacting ipos and if it will impact alibaba. >> i think there are enough banks involved in the deal there's support. and it's not a smaller deal to easily be postponed. people will look at this as being a hallmark transaction they would want to see happen. >> well, david garrett, thank you for joining us. ing this a big ipo for everyone involved. it may be early monday morning, but we want to help you perk up for the week. so we have a few stories to help with that. first off, standing in line to check your baggage at the airport could be a thing of the past because airfrance and klm are working on a permanent electronic label. it will actually let you load your flight data at home. >> that would make me perk up

having to save time waking up for the early morning flights. and a new type of powdering alcohol called palcohol is now approved in the u.s. designed to be mixed into a drink or sprinkled over food. it will be available later on this fall, powdered alcohol, sarah. and good news for veggie lovers, haagan-dazs is making new flavor, tomato cherry and carrot orange. sounds delicious. >> i've had that in juice and tend to like it, but it seems like a sorbet or palate cleanser. >> i would try carrot-orange. how about this, we have tweets about whether you have been just waking up now or just staying up with us. >> this is a first for us, 5:00 a.m. we woke up early. >> mike tweets, sleep is overrated. i'll get enough sleep when i'm dead. i've heard that before.

>> dave tweeting, i was heading to bed but sara was going to interview the atlanta hawks ceo. >> definitely still up from sunday funday. and by the way, i really mean because my husband's alarm was way too early. >> thank you for waking up with us. >> thank you for tweeting us with all your stories. we'll get a quick check on the futures markets here in the u.s. like you can see, it's been fairly static the last hour. the s&p 500 up one, the dow jones up 20, nasdaq up 4 points. >> that does it for this special edition of "worldwide exchange." thank you for joining us this monday morning. >> and stay tuned for "squawk box." they have fred davis on, find out how he's disrupting the music business right after this break.

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good morning and welcome to "squawk box." more problems for gm as information shows they waited years to address problems on saturn ions despite thousands of complaints. mega deal for two farm suit call companies. pfizer reportedly making a $101 billion proposal to buy british rival astrazenca. and a big week for earnings with a third of the s&p 500 set to report. we'll tell you what to expect from apple, microsoft, milk donald's and more. it is monday, april 21st, 2014. "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" on cnbc this monday. i'm becky quick, andrew ross sorkin is off today. gm waiting three years to address saturn ion problems with power failures despite many claims. the national highway transportation safety board did not seek a recall on the saturn ion and found 12 crashes and two injuries caused by the problem. gm issued a statement saturday admitting it did not do enough to take care of the power steering problem. phil lebeau will join us at 7:00 a.m. with more on this story. and gm is announcing plans to invest $12 million in china by 2017. speaking at the auto china show in beijing,