hi, everyone, welcome. i'm becky quick. it's the apple of wall street's eye but can the stock split overshadow fears of a show me market? how you can hedge against the risk. >> can you afford it? house hunter sticker shock. the legendary martin guitar, how this american brand stays in tune with fans and amplified sales to new heights. "on the money" starts right now. >> here's a look at what's

making news as we head into a new week. wall street flirting around all time highs as corporate america releases a wave of first quarter earnings. more than 150 s&p 500 reporting this week. among those beating expectation, microsoft, dow chemical and boeing and caterpillar. and gm just beat with profit impacted by the recalls. apple making news with strong earnings raised dividend and increased buy back pack and surprise 7 for 1 stock split that floods the market with more shares at lower prices may make it easier for individual investors. the market shrugged off the positive earnings news closing lower after six straight days of gains and staying exactly unchanged thursday for the first time in 12 years for the dow. bank of america is discussing a $10 billion deal with the federal government to settle charges that it misled investors

on the quality of mortgage backed securities months after j.p. morgan paid $13 million. books and diapers and now sopranos. available on amazon. they have a $300 million deal to stream the network's programming to amazon prime subscribers. we're wrapping up a busy week of earnings season. what does america's report card mean to you and broader economy? alison deans and senior columnist at yahoo! financing. great to see you both. we're halfway through and there has been a lot of surprises. what do you think so far about how this earnings season is shaping up? >> it's turning out to be as frustrating as the past several months have been. there's a biased towards a positive but it's not overwhelmingly positive. there isn't a clear indication out there that the economy is really picking up speed, picking up steam. two-thirds of the companies reported better than expected results but not incredibly

better than expected results. more of the confusion. >> i will say, i have been pleasantly surprised maybe because my expectations were so low coming into this, there have some that seem -- the industrials in particular have more steam than expected. >> that has been the theme. expectations were beaten down low and had a noisy first quarter with the weather effects. we didn't know if it was a real slowdown in the making or not of the and the results have reassured investors that nothing dramatic happened in the way of slowing but we didn't necessarily see indications it's accelerating quickly either. pleasant surprise but the overall stock market kind of keeps bumping up against what were the all time highs and hasn't seen enough to say we have another leg on it. >> a lot of push from the bulls and bears. i asked warren buffett if he thought there was a lot of froth in the market. >> a big zone always of reasonableness but stocks ought to be higher every ten years, it

goes back year after year. stocks will become more decade after decade. >> i agree. the market appears farely valued and and things aren't expensive and things do seem to be improving. we've been used to sort of boom and bust type era and maybe now maybe returning 8% or something along those lines. do you think there's going to be a resolution soon as to whether or not we get a 3% growth for the overall economy? >> second half of the year, every year second half of the year. i don't know if we'll have that soon. we've had four months so far this year of the market figuring out if last year's great gains were justifiable in all of those sectors that did the very best and the ones that didn't. i do feel if we're in a year of transition -- maybe not the full year but for right now seeing the federal reserve is on the margin becoming slightly less

generous and then we're also seeing if corporate america can deliver again with profit margins so high. >> let's talk specifics. apple, i want your take on this. not only did the economy beat expectations but came in with a raised dividend and raise more money for stock buybacks on all of this. answered just about every question analysts had going into that report. >> they did and i think it's also good representation of how the whole season has gone. nobody really expected gangbusters growth. the fact they had a great quarter for iphone and overcame the fact that ipads are sluggish at the moment and the moves they are making, they make sense right now. you never needed the cash to fund the growth. it does seem as if they are doing what they can as they wait perhaps for another generation of products to come along. i think this idea that they are failing to innovate is kind of unreasonable to be honest with

you. they can't change the world every two years. they put movies in your pocket. it's not really something you can just sort of flip a switch and expect. i do think they are doing what they can. the split is an interesting move. i don't know it changes the whole picture for investors. >> is there anything from the global risk perspective that truly worries you, he is sfeshlly with the latest concerns with russia and ukraine? >> that worries me a lot. when i look at what's going on there. i think at this point you're not apt to go into some sort of militaristic war and europe is really in a very precarious position because they are so reliable on russia for energy. while it doesn't look it would affect us much if we have some sort of gas or energy crisis that's a big deal. and so there's a lot of unknowns as to what the ripple effect would be if we have an economic war. that's a big deal.

>> what about next week? anything that jumps out. what's on your radar screen? >> jobs numbers and obviously the fed. we're going to hear from janet yellen and get another picturep she's going to do everything possible to help the economy or we have a plan and we'll reduce our systtimulus and expect thatr a time to come. i hear people say ukraine is something so fixate on and i agree with that and the market is right in how it treated today so far. >> thank you both for being here. >> thank you. >> great talking to you. up next, we're "on the money", house hunters might suffer from sticker shock this spring. is buying a home worth it no matter the cost? and later, what does a nearly 200-year-old family business no about innovation? reinvention is music to the ears

to fans of martin guitars. look how the stock market ended the week.

housing sales took a dip and home prices are flying high. who should home buyers know about the market this spring? joining us is our real estate correspondent diana olick. thank you for being here. >> thanks for having me. >> the march numbers, that was a bit of a setback. what happened to those existing and new home sales? >> well, really we expected to see a bump up in march because we blamed so much of the weakness on rough weather during december and january and february. we thought when spring finally came we would see more people out. demand was just continued weak. we saw it in existing home sales and basically flat month to

month. the real kicker was sales of newly built homes really plummeted. those are based on signed contracts in march. folks looking to buy a home and the demand wasn't there. >> usually you see higher prices because there's so much more demand. with that demand dropping off, do you think high prices should come in there? >> the prices will moderate a bit. this has been an incredibly change recovery because this housing crash was so unique. prices were jacked up last year by investors on the very low end of the market. it wasn't regular buyers pushing prices higher. now that investors are pushing back you're getting sticker shock from a lot of regular buyers looking to move up or down size or get into a home for the first time. we're starting to see sales come down because you have few erin investors in the market, you're going to see price gains have to mad rate. the trouble is for the builders, they have higher costs and not

been lowering prices very much at all. >> were you surprised to get march numbers? >> i was surprised on the newly built home sales because we've seen such low inventory nationwide. we expected the builders to pick up and see more demand. the fact we didn't really shows it is not necessarily about the amount of homes on the market but again, that sticker shock. >> thank you. diana olick. those rising home prices and low inventory could keep home buyers from moving in the spring. is this a sign homes are becoming less affordable. spencer rascof, great to see you today. >> thank you. >> would you consider this a buyers market or sellers market? >> it depends on where you're looking. certain parts of the country are definitely buyer markets and others seller markets. the thing that's missing from the conversation so far is the impact of limited inventory because of negative equity. so 19% of americans with a

mortgage still are upsidedown on the home loan and 38% of people with in a mortgage are in a negative equity position. the reason that's important, they can't list their home because they are upsidedown on the loan. there's limited inconvenievento that is not enough to satisfy buyer demand. that's why home prices have spiked and as diana points out, then creates the sticker shock because home prices have stocked because there's limited inventory. >> that sounds like a circular argue mgt. what breaks that cycle? >> as home prices increase people get brougt out of negative equity. that 19% was 30% during the housing recession. it's starting to break but they need to time to list and if they list their home there will be another home they can move into. there's a bit of a cycle that

needs to be broken. in the meantime what usually creates extra supply is home builders that bring on new supply into the market. and as diana points out, that isn't happening as quickly as we would like or what limited supply that is coming from builders is coming in a high price point, too high to satisfy demand because of the sticker shock. >> the lead story in the wall street journal on friday was all about these higher mortgage costs and what that's doing. declined in the lowest level in 14 years. does that mean owning a home is becoming less affordable? >> the mortgage data, you have to pars it, it was all about refis going away. everyone who has equity has already refied. and purchased mortgages and purchased loans are okay year after year. the question though of has the american dream changed? are people no longer going to buy homes? i don't agree with that with that supposition.

homeownership rates went to 62% and picking up to the mid-60s, i don't think anything fundamentally changed about the importance of owning a home. what probably has changed is that people no longer buy a home for the potential appreciation or at least they ought not to. they are hopefully buying a home because they love the home and right place to live for the next five or ten years. if there's appreciation during the time period, that's gravy. but i do think people's perceptions have changed, at least i've hoped they changed. what got us into the last bubble people buying homes they shouldn't have bought in the first place. >> you think it's still a great investment but only if it's something you're living in. >> it depends on how long you li live in the home. the breakeven is three years. it makes more sense to buy than rent. certain parts of the country where it is ten plus years. >> spencer, one other thing we have coming up next week, the

jobs number we'll get a look at how things are going across the nation. how important is that to the housing market and housing recovery? >> it's very important. people don't buy houses when they are concerned about losing their job. and certainly the economy is so much stronger today in terms of consumer confidence and confidence in unemployment numbers than it was two or three years ago. there's obviously still uncertainty and that undoubtedly impacts the propensity to buy a home. >> we'll talk to you soon. >> up next, we're "on the money." doesn't it sound great? inside one of the most beloved brands, written its own story, again and again. >> my dad caught the folk boom and there was disco which was no good for any of us. time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates.

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it's a 181-year-old brand that tells america's economic and artistic journey through martin guitars played from elvis and we look at their long legacy and how they stay in tune today. american re-made. >> people who love martin guitars, you guys are a cult almost. >> pretty fanatical. >> willie nelson has a martin guitar that is amazingly still in one piece. worn a big hole through the top. johnny cash, eric clapton. >> martin guitars are the

instruments of grammys and gold records and sold out arenas and home is a 600 employee pennsylvania headquarters where design, detail and craft have made music for generations. >> learn what you're doing after 181 years. >> mostly hand made since 1833, martin built and rebuilt a signature american sound and one of the music industry's most enduring brands. >> the craftsmanship is impeccable. i think that's what's carried the brand. >> it got tough back in the 1980s. >> it's been tough in the 1880s -- >> 1880s too? >> we had to deal with things like civil war. we are affected by economic and political instability. >> chris martin is the sixth c.f. martin ceo since his great, great, great grandfather took his skills to a violin factory. >> they were dismissive, you

should stick with your father, has a good reputation as a cabinet builder and the guitar is a fad. i think that was the impetus for him to go, i'm out of here. >> the immigrant businessman designed nine new models of guitar, all of them recognizable today with variations of size, shape and strength. >> martin literally wrote the book for the design of acoustic steel string guitars. >> matt has sold martin guitars since the 1950s. >> it's the one. you can't beat the original. martin could be like the bmw or mercedes, ever had your hands in one, that is precise machinery. >> with a price point ranging from $2,000 to more than $10,000, martin shares 3% of the $1 billion american guitar industry. changing musical and economic tastes threaten the brand in the 1980s. >> mtv came out with unplugged

and eric clap ton came out for first one playing a martin guitar. what happened then? >> the phone started to ring. >> a martin artist model guitar, in collaboration with clapton sold out in hours. >> we don't call someone up and say, you're famous, would you play a martin? we recognize they are famous and they are playing a martin and call them up, wow, yeah, let's talk. let's do an artist model together. >> how many of these do you make every year? >> a lot. my ancestors would be amazed. our peak year in the '70s was about 23,000 guitars. last year we made 140,000 guitars. i think it has to do with the fact that right now there's something very exciting going on with popular music that embraces a acoustic music, we have

mumford and sons and lumineers, someone recognized it's time to reintroduce that to the consumer. right now it's on an upswing. we're fortunate that i meet young people that they get excited about guitars and guitar music. they'll read an interview, john mayor, he'll say when i was young i went to find out about my hero bob dylan. when i was young and got excited about the guitar, i wanted to hear about wooddy guthrie. all along the way you find guitar heroes holding martin guitars. >> martin balances legacy with the demands of running a modern lifestyle brand. martin ambassadors like ed sheeran are among the new innovations launched for a new

consumer. >> what are new ways you've made partnerships? >> once the musical, it's been a great relationship. we have a partnership with lucky jeans because the folks that run lucky are martin guitar fans so they do martin shirts in their shops. >> who are you selling these guitars to? >> folks that want a fine guitar. it's not usually the case, although i would love it to be that a beginning starts with a martin but a beginning who stays excited ends up with a martin. a look at the news for the week ahead and makeover for a familiar face under the golden arches. is it fast food fashion or clowning around? you're not just looking for a house. you're looking for a place for your life to happen.

look for on the money on facebook and more about our show, follow us on twitter. here are the stortryes coming up that may move the markets and impact your money. lots of economic data, first on tuesday, kicking off the two day meeting on monetary policy of the on tuesday, we'll get the s&p shill e erindex and thursda we'll find out the ism manufacturing index that tracks economic activity in the sector. on friday, it is the big number of the week, the jobs report. one celebrity's new look caught twitter by storm.

ronald mcdonald is returning the clown to the marketing campaign in an effort to boost weak sales. the fast food chain plans to include ronald mcdonnee old on the -- tell us what you think on our facebook and twitter pages. that's the show for today. i'm becky quick. thank you so much for joining me. next week we'll bring you the show from omaha, nebraska, where thousands of berkshire hathaway gather for the annual meeting. each week keep it here, we're "on the money." i'll see you next weekend. female announcer: get three years interest-free financing

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(man) the sharks are back, looking for the best products and businesses america has to offer. the only thing that really matters--what is it? money. if the sharks hear a great idea, they're ready to invest, using their own money... seeking a $3 million investment. whoa. and fight each other for a piece of the action. are you gonna send money to die here, barbara? would you mind your own business? you're out. i'm trying to save the money. mind your own business. i don't care what happens to you. i'm trying to focus here. i'm worried about your money. i'm trying to listen here. but first the entrepreneurs must convince a shark to invest the full amount they're asking for, or they'll walk away with nothing. this is a fractionally tiny market. this is not a tiny market. tell me why i'm wrong. all i know is you're not selling anything. it's sink or swim. you've gotta get off your ass and get out there and sell.