the drivers are bigger. it's easier to hit the ball. to take it beyond that, i have reservations about making --s. >> all right, tom. i'm sorry. we're going to have you back. you can't fix andrew, believe pe we only have five seconds. >> thanks for having me on. i appreciate the opportunity. >> great to see you, tom. thank you. >> join us tomorrow. "squawk on the street" begins right now. welcome to "squawk on the street" i'm carl quintanilla, with jim cramer and david faber. ford confirming it has chosen mark fields as its next ceo. ♪ he's going to succeed alan mulally who will retire on july 1 after more than seven years on the job. ford's actually getting ready to hold a news conference right about now. we're going to dip into that in a second. as people familiar with fields by now, running a lot of the important meetings, joined back the month of may who has in '89, ran mazda for a couple sunshine t-mobile announcing years, pride of rutgers added 2.4 million net customers university. >> absolutely. jersey guy. in the quarter, well above year

so different from the pattern ago. it says aggressive discounts won over cust mers reporting a but so engrained in the company and has been very involved with quarterly loss and the stock moving on all of these numbers. the marketing part of the turnaround. fourth quarter in a row of seven in other words the positioning. he's kind of an old hand, a figure gains which is mind young guy. i know they were talking earlier blowing. >> you got to read the release. on "squawk" there's never been a called the uncarrier and talking about average revenue was not procession where there was a great ceo and followed by a down, it was -- people looking for 49.8. great ceo at ford. 50 million customers they have i like fields. >> we'll talk to bill ford at and added more new customers than the rest of the industry 11, hear from mulally at 11:30, combined. >> it's amazing. there was an expectation when phil lebeau is on assignment in west hartford tweeting not just massa son from soft bank took over they would be the insur fields but the legacy of mulally himself and the way he turned those losses around after 2008. insurgent. that has not happened. if they're doing sell so well, >> yeah. you look at the numbers, carl, why would they enter into a and it's pretty striking. merger agreement as well may be keep in mind that ford not only the case with sprint at some had its own problems but you point, given the anti-trust started to see the implosion of potential anti-trust the u.s. auto market between implications of that and the fact it might not happen. 2006 when alan mulally came into why would they if they're having such success. what i hear is while they are ford, and 2008, which was the worst of the days for the auto having incredible success as we industry. ford lost $30 billion. see reflected in the earnings now a lot of those losses were they will run out of road.

>> always happens. >> only so much in your balance incurred as the company was trying to transition and grow sheet. only so far to go, and and downsize, but you go from eventually it's going to be much 2009 all the way through the more difficult. first quarter of this year, ford >> and one plus one may equal made $42 billion. so that gives you some indication of the transition 2.5 here. under alan mulally that ford sprint had a build out. okay quarter. they could use all the help they made from really just being a can get. >> an owner in deutsch that does money losing operation into one not want to put more capital where it has been steadily into the united states. >> so important. it's kind of vodafone/at&t. profitable. on stage at the ford >> how a deal would be headquarters you will see alan structured with sprint and what mulally, bill ford who is the it would look like to try to chairman and they're beginning the press conference, and mark offset any concerns about fields the coo who will become anti-trust denial would be ceo effective july 1sts. interesting or do you get a merger of equals where john it's not surprising they're doing this in the main ledger returns it. the likely that ledger would run auditorium. every time ford has monthly earnings, alan mulally holds an a combination likely than the current management at sprint. employee town hall meeting in >> ledger, how disruptive of a that auditorium. ceo he is, he tweeted we have i've been to some of those. the great thing about those meetings, any employee in there outpaced the competition 12 can stand up, say hey, you know what, alan, i have a question times over. and he takes all questions after i blank you not. >> he's been outrageous forever, those meetings. he sits and he meets with all the minute i met him. the employees who want to come up to the stage and meet with

one of the more -- a break the him. this is very important, i think, mold ceo perhaps. both for alan mulally as well as but sprint tends to take a long-term view right there. for bill ford that they show there is a smooth transition, >> massa son, 300 year. something that we rarely see in the auto industry from one ceo >> 300 year approach. >> longer than boeing, longer to the next ceo. so again, they're going to have term play. >> and exxon 50 year. this press conference really it's an employee town hall >> we are going to talk to john legere later in the program. meeting for the employees at the >> he's a hoot. >> stay tuned for that. headquarters and we're going to be talking with bill ford, first we'll get stop trading with jim, on cnbc, at 11:00 and then we'll dow still up 10 points. be right back. be right back. be talking with alan mulally first on cnbc at 11:30. back to you. >> thank you so much. you know, phil mentions the need for a smooth transition, guys. there was a period in there when mulally was flirting with microsoft where it wasn't guaranteed this was going to be smooth. >> no. and that whole period both for -- was not a distinguishing period for microsoft and i didn't think it was a terrific whon a certified pre-ownedan unlimitedmercedes-benz?nty period of ford. been a backer of alan, made no secret of that. what does it mean to drive as far as you want... this was convoluted and i think both companies benefit from the for up to three years and be covered? idea things are straightened it means your odometer... out. i think microsoft's problem was is there to record the memories. microsoft's board.

they have to get it a little during the mercedes-benz more tight. certified pre-owned sales event >> take a quick listen to see now through june 2nd, you'll get complimentary pre-paid maintenance what ford is saying about and may qualify for a two-month payment credit. fields. >> was developing the next generation of management and how only at your authorized mercedes-benz dealer. important that was. and that we -- and so that we could have ultimately a smooth transition. the other thing we talked about, though, was the ford culture and i spent a lot of time talking to alan about all the great things about the ford culture and the not so great things about our make it happen culture. and we talked right then about with fidelity active trader pro. the importance of changing the it's one more innovative reason latter. serious investors are choosing fidelity. we had to remove the things that call or click to open your fidelity account today. were standing in the way of us achieving greatness. so here we are, eight years later, and you did it. >> we did it. [ applause ]

>> and that's why this transition is -- >> as we said, we'll hear from bill ford himself later in the show and alan mulally at 11:30 eastern time. in the meantime move to the markets. the dow coming off it first female announcer: sleep train's interest free ends sunday. record closing high of the year. it's your last chance the blue chips finished april to get three years interest-free financing with a third straight monthly on beautyrest black, gain as did the s&p but the stearns & foster, nasdaq down 2%. serta icomfort; meantime claims unexpectedly even tempur-pedic. rose ahead of a friday's jobs plus, get free delivery, number and exxon mobil leading and sleep train's 100-day low price guarantee. the earnings parade beat the but hurry! sleep train's interest free for 3 event, street. china pmi under whelming. ends sunday. >> ukpmi. that's one of the great ♪ sleep train ♪ turnarounds. ♪ your ticket to a better night's sleep ♪ >> five-month high. >> a lot of their banks are turning around, by the way. lloyd's good numbers and retail sales over there, some of the stories stores are very good. trwith secure wifie for your business. they're doing stress tests on it also comes with public wifi for your customers. banks. >> barclay's seems to be going not so with internet from the phone company. through changes. >> boy, you are polite. i would email the phone company to inquire i have to learn to be as polite as to why they have shortchanged these customers. as you. i would never get in trouble. >> have you gotten in trouble

but that would require wifi. lately? >>er switch to comcast business internet >>er. >> you never know. >> everything is about sell in and get two wifi networks included. may and go away. the statistics about the six comcast business weeks beginning in may, the built for business. worst of the year, you have to get through that, right? >> if you cut back the ipos which is what they had of what they've done, that actually helps the may case. i have a thing i do with that. sell bad stocks in may and go away. it's a twist on that. >> the ipo calendar has lightened up. >> the calendar -- >> box and the journal today. it is time for cramer and >> there were three major stop trading. >> no longer a turnaround, it's obstacles to the market going up. an earnings story. drop box, box, and air being right aide, same-store sales, beat. 5%. i was looking for 3 to 4%. all had $10 billion valuations remember it's now an cvs, wall in the last round, all three in the last 48 hours. it's not just box. drop box, little interview, little website, they're green, and rite aid. postponed. say postponed they never come yesterday a bad number from express scripps. looking for a challenge number out and say maybe we don't need from mckessen. the money. maybe don't need the money. cigna fantastic quarter. they're being beat $10 billion hmo winning, drug store winning, middle man losing. valuation.

switch to the what i call the algorithm of the internet. . >> there is a great deal of you saw yelp do well. hubris and money being made by the firm. what happens? it's almost as if the machine sequoia, holy cow. says yelp good, we have to buy oh, my lord. >> geez. >> the returns they've had are facebook, work day, concur and whether -- >> whatsapp also. this is what's happening. it's incredible. >> billen there alone. a move all at once in the >> the returns on some of their funds that alone, that one investment, what it did for the internet two names. if fund it was a part of is >> interesting. what do you make of the virginia astonishing. >> and that really turned a lot case where they're suing some of of people's heads but also may the reviewers for defamation, be along with the sales force.com, february 28th, that's free speech case. >> yelp, i thought stoppleman when it all began. did a good job. >> the whatsapp, sales force, gave you a percentage of how many are negative. gap up after the quarter and then slammed down. germany are doing more slamming there than in the united states. >> when you say that they're talking about throwing out the look, yelp is -- is it an honest high multiple stocks, the high growth -- >> started with sales -- broker? yes. >> the change, the significant i have 4.5 stars right now. change in the market in which >> ve-- in the restaurant. we've seen. >> yeah. >> whether amazon or twitter. >> what happens if that falls? >> or yelp. >> i'll tell you what i think of three upgrades of yelp today. >> yelp is -- there's a lot of yelp if that falls. >> 4.5. people saying look at yelp. i thought -- can you get 5? see, the exact opposite of all >> guy came in and did 3 and

the others, amazon which went up blamed, you know, i don't know big after they reported a sales said that i wasn't hosting well. force. yelp went down immediately. as soon as the release came out. hosting last night, did a darn first time. good job. first time the stock went down. >> what's coming up on "mad okay. money" tonight? >> two companies that reported . and then gap up. that is a completely different dynamite upside surprises. pattern. one is reacting positively, the do you hang your hat on that? you do say we don't have three other is reacting negative. now they're both negative. $10 billion deals coming that very interesting. we're going to be an abomination harman and dominos reported i felt. upside surprises that were up, yelp's pattern is different. remember a lot of these stocks stocks up, getting hit. that's the old pattern we are broken and i had concur on experienced with the yelps and last night, a good company, they concurs. how about this. reported a number that was what old economy not doing as well people were hoping for and a little more and that got slammed today. look at clorox. another one that people thought, down. but it did come back at the end of the day. hey, you can't miss. that's an unusual pattern. watch the patterns. so let's see, i happen to be big believers in harman and dpz. everyone is saying it's the ball game over, just when yelp gaps not giving up on those. we have to learn more. up. i thought there were problems >> finally after this week's gdp with the yelp quarter. i didn't think it was as clean number, here's "usa today" as some of the other quarters. despite chilly winter the u.s. there's a little sentiment change now that three $10 economy is heating up. billion deals are on hold. is that how you see the the market could not handle remainder of the year. that. >> i'm told mulally is coming to >> april a strong month for a the mike. let's take a listen. lot of companies. >> earnings up 1.4. >> i'm not giving up on this economy.

>> thank you. i think that the retailers have all said april is better. the restaurants saying april is okay. make mis my eyes water. better. so i think that april is going bill, thanks a lot. to be back to normal month. i just want to maybe just a we'll see tomorrow if they nail couple of thoughts about that the number. there's a lot of good happening first day. in the economy versus happening as you know, when i got a call with the weather. from bill ford, i didn't reject >> algorithms, david. the call because i just found it >> algorithmses. so interesting, because this is wonder how they structure that. the ford motor company, you what constitutes the highest know, a fabulous american and multiple you would have in the global icon, and here is a great basket and how does that work? >> enterprise divided by sales. >> right. >> is that what the metrics they grandson of henry ford that was calling. i'll never forget when i arrived us. >> and it's the average historically for the last ten at bill's house, he welcomed me years f you take out last year, in. we sat in his living room and that's bubble inflated, 7.5. within a couple of hours, you all know bill, he's just -- he's morgan stanley has done fabulous work. >> something happens you buy a neat human being, so that basket and sell the knowledgeable about the otherses. >> see you tonight, jim. >> what a show. business, shared everything. >> you got that right. >> when we come back, rbc clearly had some claelgss. talking about yelp. one of three upgrades today. had a clear vision about where he wanted to take ford going we'll talk with mark about that. also ahead cigna's ceo david forward and cared so much about our customers and our dealers cordani on his company's results and our suppliers and our and health care landscape in a minute. minute. employees worldwide. and i think we came to agreement

within like a couple of hours and as bill pointed out we agreed on three fundamental things. one, that we really wanted to pull everybody together around a compelling vision and a why relocating manufacturingpany to upstate new york? comprehensive strategy for ford going forward that would create i tell people it's for the climate. an exciting, viable ford, and the conditions in new york state are great for business. the next thing we agreed on was new york is ranked #2 in the nation the management system that bill referenced, that we have a for new private sector job creation. method and a process where and now it's even better because they've introduced everybody would be included, startup new york - dozens of tax-free zones review the world every week, where businesses pay no taxes for ten years. move decisively on the actions you'll get a warm welcome in the new new york. that needed our attention and continue to create a viable, see if your business qualifies at startupny.com profitable growing company and we would actually change the culture as bill said because he was very clear about the opportunity to do that and if we were going to reach the greatness, we really needed everybody working together and we established the expected behaviors and then the last one that i just thought was so fantastic was his comment about the leadership development and

ford is always attracted the best and brightest. here they are. it's just fabulous the tallens that ford has -- talent that ford has. leadership and development program for every person in ford cozy or cool? and especially the leadership "meow" or "woof"? team and the ceo succession and exactly the way you want it ... until boom, to do something like bill said it's bedtime! that had never been done, to your mattress is a battleground have an early succession, not of thwarted desire. enter the all-new sleep number classic series. only at ford -- >> alan mulally who will exit as designed to let couples sleep together in individualized comfort. ford's ceo beginning july 1st starting at just $699.99 for a queen mattress. putting closing remarks on that chapter, amazing few years he's he's the softy. his sleep number setting is 35. had there. >> got some people say just got you're the rock, at 60. lucky did that big financing and snoring? right before the downturn. others have said that he did the sleep number's even got an adjustment for that. find your sleep number setting only at a one profitable growth. always talks about pga. sleep number store. i think the stock has got to know better sleep with sleep number. move. it's been flat lined at 15 for a while and not that it's a what have you done for me lately business, but -- ♪ >> they didn't file. they didn't file. >> they did not file and the government did not own them and the share take has been good and the cars are better and alan ♪ mulally promised on "mad money" actually that he would not leave ♪

until europe was steady an it looks like europe, i think the losses have bottomed. latin america such a black hole [ male announcer ] great rates for great rides. that was hoping to turn around. geico motorcycle, see how much you could save. i think ford is in good hands. is it my favorite stock? i think it's okay. it's okay. there's other companies doing better. >> yeah. when we come back, this morning, t-mobile's ceo john legere whose company has been the subject of some takeover speculation, wait up till you see what he says not just about the quarter but the customers ads pacing the competition. >> his tweets are classic. love following them. >> he's blast, that guy. >> sigma's ceo will talk about the health care law, the dow beginning the day at a record high for the first time this year, s&p needs 7 more points. back in a minute. a minute.ic) welcome back to "squawk on the street." we are awaiting march construction spending. april ism. defiance is in our bones. and the statistics are, 54.9, defiance never grows old. citracal maximum. calcium citrate plus d. highly soluble, easily absorbed. 54.9.

on ism. what were we expecting? about 54.4. so it's definitely a bit better. (announcer) scottrade knows our and invest their own way. last month, 53.7 unrevised. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. how does that stack up? their quick trade bar lets my account follow me online 54.9? well, at the end of last year, so i can react in real-time. december, 56.5. if we look at the internals and plus, my local scottrade office is there to help. it is important, in front of the because they know i don't trade like everybody. big job number, to start out i trade like me. with the employment index, 52.1 i'm with scottrade. our last look, 54.7 our current (announcer) scottrade. look, definitely improvement. voted "best investment services company." 55.1 on new orders. (music) that's a lateral move. pretty much what it was last look. march construction spending up defiance is in our bones. 0.2. that is a little light. defiance never grows old. looking for half of 1%. citracal maximum. calcium citrate plus d. highly soluble, easily absorbed. we saw a downgrade from originally released 0.1, now down 0.2. the data on construction a little weak. ism, better than expected. carl, back to you. >> that's a lot of information. thanks a lot, rick. let's get a deeper dive into the data.

senior economics reporter steve liesman at hq. enough for folks looking for an april bounce? >> you know, not by itself, carl, but really goes along with a nice trend we've had which really points to the weather as having been a big issue out there. a nice bounce from where we were before. rick talked about the internals doing better. i also like the construction spending numbers because there was a nice snap back in the residential construction. up 0.8. want to get that number right. i'll come back to it. a nice snap back in residential. what really seemed to drag it down, the commercial but also government with the particular decline in educational spending. so i like the idea you had this, again, the bounceback in march. also the personal income numbers coming back strongly again. up 0. 5 with a nice gain inside the wage data, spending hour. than expected 0.9. jobless claims. the consumer spending data and what's happening.

the trajectory upwards from a depression that happened end of last year and ticking up. best numbers year over year we've had since back in 2011. on the claims issue some real questions being asked out there right now about the easter and the seasonal adjusted. robert gruska never minces word and now clear that drop in claims was overstated by bad we'll take you first to seasonal adjustment factors. this is now in the process of deerborn, michigan, mark fields being remedied. as a result we no longer have who will become ford's ceo in any idea what the true trend in july, making remarks. >> it's the best team i have claims is. it will take some weeks to sort ever seen and i feel very this out. simon, back to you in general, fortunate. i want to thank bill, you and the board board for having the the trend of improvement from faith not only in me but in the the winter weather woes seems to entire team to bring the company be intent. >> i guess the highlight we saw forward. and i am just really excited to it yesterday in the gdp data the highlight has to be the consumer have a great transition with spending figure rising strongly. alan, a seamless transition, a i think for the fastest pace in fun transition, and, of course, now five years some saying? alan is the ceo through july and the way the gdp works and i can explain this but i don't think you 45 minutes, is if you 1 1st. end on a good note and then want to make that clear. just want to make that clear.

don't do very much afterwards i want to make another thing end the quarter on a good month and don't do very much clear. our one ford plan has served us afterwards you're still going to have very strong spending. so well over the years. john from rdq points out if we and it is going to continue to do a 0.1% increase the next serve us well. >> mark fields being introduced several months, april, may, not introduced, making some june, we're going to do 3% on remarks to the ford rank and consumer spending. file. not the only succession plan so again, the three number being announced. breaking news out of yum. doesn't look crazy, 2.5 would you see this? >> yeah. that's a shocker actually. >> yeah. probably be the bottom, three an >> is it a shocker? average of what i'm hearing from economists on the street for the >> i thought david would stay second quarter. >> okay. until we had a definitive turn steve for the moment thank you very much. steve liesman at hq. in china. my charitable trust owns it. slightly lower on the session >> the company announcing david overall. just retrenching from the record novak will become executive we set last night on the dow for chairman on january 1 of next the first time this year. year. he will still be executive chairman but will be replaced as ahead clearly of tomorrow's big employment report. ceo by mr. crede, i believe it let's bring in ward mccarfy is. >> taco bell guy. jeffrey's economist, and katie came up with this breakfast part stockcon with btig. that is very importance. yeah, that's him. welcome to the program both of but again -- you. >> thank you. >> crede. >> i just -- i'm surprised. >> thank you. >> do you think that we are not david novak is a terrific ceo at an inflection point? and they stumbled in china and do you feel the data is becoming he's gotten that back together.

i have to feel that maybe he to bounce back quite strongly on what we've got so far? feels that the situation in tomorrow is the big data china is stabilized, not what i clearly. >> there is an inflection point was looking for, though. but not all of the data has bounced back strongly. >> crede a 20-year veteran with we have seen the consumer bounce the company. listen, it's interesting that back which i think is the most you -- succession is one of the important thing. we've also seen some pretty good most important things that a, a manufacturing numbers, so in my ceo does and a board of mind what's happening is that directors is supposed to do, and the economy is reverting to the they are -- boards are pushing growth rates we had in the second half of last year. these companies to have ceos in when we grew over 3%. particular, i should say, to and moving out of the problems have the plan in place, the from the winter. successor. in the case of ford we've known the one troubling aspect is that it was fields for a long time the housing numbers still and you want that to be a clear haven't shown much of a response sign to owners, shareholders so i think we're going to have that hey, we've got a plan just to wait another month or so before we get a handle on what's in case something goes awry, for happening there. example, and, of course, over >> yeah. time because we know we're going exports obviously were a concern to need to know who steps into in the data we got yesterday. where are you on business the job. >> you're dead right. investment? the companies that have one of the great promises was that this year's ceos would i s struggled where the companies that did the hamlet thing, to be increasingly invest in the or not to be microsoft, the to be or not to be hewlett-packard. economy, capital expenditure would pick up. you see that and say wait a where are you on that? >> we're on the threshold of second, that's dysfunctional. capital expenditure picking up. the functional companies know we're not quite at the capacity but the surprises, david -- i utilization rates that you would

normally expect to trigger capex deal with david, he came on "mad money" when the stock was much spending. and corporations have been lower and said listen, we're going to turn china. focused really more on the short term in terms of buying back david novak, a terrific book by the way, wrote a great their stock and giving their autobiography, lived in his car, up from nothing and really has stockholders some help on that built a great chain and i'm curious, i don't know. front. but i think you're starting to i just didn't know. see a shift in focus to the i mean sometimes you get a real longer term. for example, we've seen some shocker. >> he's got eight months left as very prominent investors recently talk about how they want to invest in xecompanies tt ceo. >> and he's the chairman. i'm sure he's going to e-mail me invest in themselves and that and say i didn't leave. will be one of the stories that office of the chairman. i love the sghi executive unfolds over the course of this year. >> katie, what is your view of chairman position. >> not a -- right. the market levels we're at from >> you mentioned ceo of taco a technical perspective some. bell, the few ceo -- greg crede >> depends on what index you're who will take over as the ceo of yum was behind the think outside talking about. something like the russell 2,000 index, obviously it's underperformed significantly but it's come down to its 200-day the bun campaign, the doritos moving average. if you're looking for an taco, i would argue of all the inflection point you might see units in yum that have tried to one there to the upside. make some noise they've done the whereas, of course, the s&p 500 most. >> david has signaled over and index has been very strong, very over again, got to go to taco close to new all-time highs and we've really seen in the large cap arena more breakouts and bell. bar san miguel, go to taco bell

breakdowns. for. twice as many during this these things are the tastiest earnings season which drives the and best. volatility in the name. passionate leader of a company. to me the breath behind the rally is still very, very strong passionate. >> only 61. >> i told you --s. while everybody focuses on those momentum names in the high beta >> young, man. >> thank you for saying that. names that underperform so >> i'm not about to become the significantly we've had leadership sort of hold with the old -- "squawk". cyclical sectors or the large >> not expecting your retirement caps within those cyclical to the executive chairman. >> executive chairman of "mad sectors. that existing leadership has money." >> who's going to be the ceo? held up the market and up the >> i haven't named him yet. not going to be an early s&p 500. in terms of levels what i look succession. >> what does your board of for on the s&p 500, obviously a directors have to say about that? >> the board of ducters is out breakout to new highs would be a bullish development. to lunch frankly. we already from a previous hewlett-packard's board of directors look like, you know, breakout could drive a price target from a technical the -- frank sinatra chairman of standpoint of about 1975 to the board. >> okay. >> there was a chairman, sinatra 1985. and, of course, we have the dow had it when he was chairman. industrials on the verge of a breakout as well and we can get >> chairman of the board. >> anyone better than sinatra. to about 17,200 for breakout there. >> ward, i would love your take >> no. >> we will he get cramer's mad on the ten year. for the past couple weeks people dash, opening bell, and the have been pointing to it as a premarket here we'll get this gauge of fear. in the 2.6 range it's suddenly market day started in about ten minutes. minutes. i take prilosec otc each morning for my frequent heartburn. yesterday people were arguing it was actually one reason stocks

were higher. does a lower yield, is that positive or negative for equities at this point? >> well, to the extent that lower yields and the bond market represent less of an attractive alternative, i think it's probably a good thing for the equity market. it just seems that a lot of investors right now are so concerned about the possibility of the consequences of tapering they want to be short and you continue to see a wide range of investors being short treasuries and, of course, that has frustrated any types of increases that we've seen in treasury rates since really late last year. >> i guess in many senses we start a new chapter tomorrow with the employment report release and a lot of these -- of indices could move rapidly on that. thank you for your time. katie and ward. >> got news out of the auto industry this morning. ford naming mark fields as its next ceo. phil lebeau is in hartford, connecticut, with more on that this morning. >> wans to show you something

you don't see often in the auto industry. the picture at ford headquarters been the last hour. you had ford chairman bill ford on stage with outgoing ceo alan mulally and incoming ceo mark fields. this was the announcement about the official transition. by the way it's going to take place on july 1st. that's when fields will take over for alan mulally. effective july 1st, alan mulally is leaving ford completely. so he's not going to be on the board, not going to be involved with the company at all. for mark fields, he made it very clear this morning he does not plan to make any major changes in the near future. >> the success we've had on the one ford plan, my commitment is to build on that success, to accelerate our pace of progress because as we've seen, we're because you can't beat zero heartburn. woo hoo! just starting to see the benefits of the power of the one [ male announcer ] prilosec otc is the number one doctor recommended ford plan. frequent heartburn medicine for 8 straight years. >> and investors have certainly benefited under the one ford one pill each morning. 24 hours. zero heartburn. plan that alan mulally brought in starting in 2006.

it's called truecar. under alan mulally ford shares and truecar users... have risen 92% over the last save time and money. eight years. so when you're... we will be talking with bill ready to buy a car, ford first on cnbc coming up at make sure you... never overpay. 11:00. we're going to be talking to him visit truecar.com today. about the transition from alan mulally to mark fields and then at 11:30 don't want to miss this, first on cnbc, we're going ♪ to be talking with outgoing ford ceo alan mulally about what's next for him and i have to tell ♪ you something, carl, you want to have some fun this morning, go on twitter. ♪ see all the people who are suggesting that alan mulally [ tires screech ] take over a particular company chewley's finds itself in a sticky situation today because they're not happy with after recalling its new gum. the management at that company. [ male announcer ] stick it to the market before you get stuck. we'll talk about alan's future get the most extensive charting when we talk to him in about an wherever you are with the mobile trader app hour. >> thank you very much for that. from td ameritrade. phil lebeau on the transition at ford. >> the treasury is hosting the global women in finance symposium in washington bringing together some of the biggest names in government and finance from around the world. inevitably our own sara eisen is amongst them, live. what can we expect later in the show? good morning. opening bell in just about nice to see you. >> good morning. nice to see you.

seven minutes or so. and i'm actually here in the lot of earnings we haven't gotten to. cramer's mad dash. treasurer's office inside the >> talk exxon for a second. treasury department where the a lot of people see that number, dollar bills are signed. the treasury is hosting today see a gigantic number, much global women in finance. better than expected and don't it's a mix of private sector realize oil stocks do not trade on earnings per share. they trade on production growth. powerful women and public have to cut to the production sector powerful women. growth line. getting together to talk about let's do that. ideas, to get economic growth, oil equivalent production to get more jobs growth, the decreased 5.6%. take out the expiration of an same topics and we'll speak with alibaba and decrease 2.9%. two of the most powerful women i am used to seeing eog 30%, in the administration a little bit later on "squawk on the pioneer. street," valerie jarrett, when you get to the american renaissance of oil and gas you president obama's number two woman, the senior adviser in the see double digit, high double white house, to talk about the digit, 25, 30% growth. economy, jobs, talk about ukraine as well. exxon doesn't deliver that. how did exxon make the quarter? we'll be speaking with the expenditures down $8.4 billion, commerce secretary, penny down 28%, made it by cutting prittzker. something is in the area and back on exploration. whether businesses are spending that is not what you want. enough to get hiring started. it's topicals especially it's what warren buffet wants. why? sandwiched in between that flat because of the key line. corporation distributed 5.7 gdp report and a jobs report billion to shareholders through tomorrow. carl? >> sara eisen, flanked by the dividends and purchases. american flag there, nice to see that's what warren wants and gets it. you.

i like growth. look forward to more later op we were getting better growth this morning. shares of yelp spiking thanks to from oil companies than we were strong mobile advertising numbers. stocks getting an upgrade from from technology and that's why several firms including rbc and exxon will not rally bill. we'll talk to mark ma haney on bp had a good number this week. why he is bullish on that name up 10% today. royal dutch had a good number. ford chooses a new ceo and we exxon, ran up because of those will be joined by both executive others that i just mentioned. chairman bill ford and outgoing >> all-time high, right? >> all-time high. ceo alan mulally. >> not great performance but -- we're back in just a minute. n je >> when i was at goldman sachs in the '80s i used to say give me a stock that won't haunt me. they said buy exxon. no one got hurt buying exxon. financial noise no one will ever get hurt buying exxon. >> one of the bigger stories of the morning from "the wall street journal," of course right in my area of some expertise, financial noise they report that an approach had been made from at&t to directv and the journal, with some financial noise sourcing here, saying one source says the approach came since comcast and time warner cable announced their deal. they also say unclear whether the companies are in detailed because you can't beat zero heartburn. woo hoo!

talks. another person who they say [ male announcer ] prilosec otc is the number one doctor recommended said, direct would be open to a deal. what i can tell you having frequent heartburn medicine for 8 straight years. spoken to a few people around one pill each morning. 24 hours. zero heartburn. this, there does appear to have been an approach made perhaps about a month ago, but i don't have much more to offer on details regarding the state of conversations then the journal does at this point. we can back away interest the story and provide analysis as to whether it makes sense or not visit truecar.comoney,com,tine and never overpay.yer's remorse. a good deal or not. "okay, this is the price,"sman comes and you're like.ells you, and what at&t may be trying to achieve here. the company would not comment when i contacted them to ask them about this particular report this morning. listen, three years ago at&t or maybe four was close to doing a deal to acquire dish. they had gotten down to the final details and it fell apart. that's dish. that's charlie urgen's dish that earns an amount of spectrum as well. directv dealing with a mature, perhaps not a declining business man: we know when parents and teachers work together... by buying back a lot of stock. woman: our schools get stronger. >> right. >> dish saying we're going to man: as superintendent buy a lot of spectrum. of public education, that's been now on the face of it you would think at&t would prefer to tom torlakson's approach.

acquire dish. woman: torlakson has supported legislation why? well, because it's similar in to guarantee spending decisions nature to directv on the video about our education tax dollars business and it's got enormous are made by parents, teachers amounts of spectrum, spectrum and the local community... and not by sacramento politicians. that will only be getting larger and we need to keep as ur gen participates in that legislation on track. man: so tell tom torlakson to keep fighting auctions. i'm talking about nearer term for local control of school funding decisions. auctions. that being said, if they were to acquire directv, at&t would get on brand name mattress sets. get three years interest-free financing something that would be helpful. a lot of free cash flow and cut plus, get free delivery, and sleep train's 100-day low price guarantee. costs, some analysts saying maybe you get as much as $15 sleep train's interest free for 3 event, billion in synergies from cost ends sunday. cutting. but they'd be dealing with ♪ your ticket to a better night's sleep ♪ programming costs, something they deal with their 5.7 million subscribers to their tv product u-verse. that free cash flow could help with the payout ratio which some people have concern about. namely, maintaining that dividend payout ratio. >> right. >> i must tell you in the conversations i've had with investors this morning, many scratching their heads in terms of why they would do this. now, irgen may not be a seller.

welcome back to "squawk on he probably is not a seller. the street." check out shares of abercrombie is this an opportunity or attempt to try to smoke him out & fitch. nominated four new board members is the question, not clear that to settle a dispute with would be the case. because either he's a seller or california activists, engaged not. three years ago he was very capital, which accused the close. doesn't appear he's been close company of years of failed since. wants to pass pate in these leadership. jeffreys is upgrading the bank. upcoming auctions. we don't know what his plans are, but he has a lot of optionalty. you can see up about a 4%, carl, the analysts have weighed in. i noticed one i thought was on the morning. back over to you. interesting, citi, which says we >> thanks so much, dom. don't think it's a positive for yelp beat the street on the first quarter numbers, stock up nearly 10% as the company's at&t given the continued added features like listing challenges and a specific business by bitcoin acceptance valuation, the value synergies would be needed to refine our and em mowgy as search filters. per speculative. you can make an argument why mark ma hani is at rbc capital they would want to do it. markets upgraded yelp to an at&t signaling europe is no longer focus for them. outperform along with a couple >> down this morning on this -- colleagues on the street. good morning to you. >> vodafone down, dish may be >> good morning, carl. >> nice move in the name today although we're not back to the down, keep an eye on at&t shares. that's important. does feel like if it were to 200 day. are guys like you positive on it happen it's a deal for a deal sake. you can make arguments to why it jumping the gun? makes sense. it helps with the u-verse >> it's possible. we've had a 40% correction in platform in a big way. the shares.

it gives them a lot, 20 million the valuation therefore has come subscribers, there would be in a lot. you have consistent revenue overlap, but there are still growth here. it's not like we're spiking questions about whether it would be the best deal they could do. >> okay. here. we've gone 60 to 70% revenue growth for three years in a row, so comcast does time warner, outlook for triple digit ebitda does stevenson, ceo, say holy cow, we have to do something. growth, what we call growth gap is that the way it works. up opportunities. we can go through. when you see the stories, are finally we think it's an all these stories created equal. interesting strategic asset. did this story read like mike we've said in the past we white, the fabulous ceo, i thought yelp was a good asset we would buy on a dip. believe, at directv, is saying we're buyers. hey, we're open. >> it could be. >> $88 price target. i don't know where -- i can't tell you where the leaks come >> that's correct. from. you wonder why they want it out our estimates have gone up a little bit. this has one of the fastest there. it's hard to gauge the seriousness of these growth rates in the small mid discussions. everybody looked at everybody. one person said to me, these are cap internet space. books that you blow the dust off this and zillow probably two the of them. >> right. best fundamental stories in >> because they've been around terms of flat out growth. so long. >> you mention you think it's a these approaches in the past have been made. and they've gone nowhere. strategic asset. you say there's at least half a a directv deal would be a very large deal. dozen large cap net companies white have significant that might want to buy yelp. synergies, bring cash flow to the company, but bring it into a google attempted that some years business that's mature. ago and were rebuffed. that's not going to necessarily provide a great deal of growth. where do you think we're going on m&a in this sector. >> why would you want latin america? >> i don't know. >> the confiscatory environment are people willing to buy, buy

is not talked about. when things are volatile and is take a look at the numbers for management willing to give up venezuela. when they have this sort of argentina has become a closed off state. growth rate? brazil is deeply troubled. >> that's the right question. why do i want that expand -- i don't think management is willing to give up but there's >> all good questions and i two interesting recent data points. think shareholders will have look at the whatsapp acquisition those questions as well. by facebook. some of these names willing to we'll see what develops, if make big acquisitions. anything develops, and it's ebay announced whatever 24 hours unclear anything will develop here. now the market at least is ago that they were willing to pay 30% tax rate to bring back having an opportunity to adjust. directv shares will be up rather cash here into the u.s. to make sharply. we'll keep an eye on at&t, see if dish is impacted. ac sigses. the idea it's an opportunity to interest in new growth areas. try to smoke outeringen to come the area that yelp represents is to the table and do the deal. local internet, local search. you have directv and dish which people say would be $40 billion nobody has cracked that code in synergies although you would yet. maybe yelpp is the fast way for be linking two mature businesses. one of these large cap names to >> everyone saying the era of the mega deal is back. do that. >> what do you think that ebay does that make you give stories story is all about? like this more credence than you what are they up to? would have six months ago. stew it's a head scratcher. there are a lot of ways that >> it does. it does also because at&t likes company can raise money, debt to do deals. i don't know, they feel like they got this need. i know they strategically look markets, et cetera. at everything and have to have a that's probably the most

great ability to -- >> you don't feel like you did expensive way. this company is clearly about sprint/t-mobile, sprint at committed to buying back stock and clearly committed to looking to new avenues of growth through 7.25, 9 -- >> that's a deal that's likely acquisitions. going to happen. our guess they're signaling to the market expect more share >> well, likely going to get repurchases but expect us to do one or two large acquisitions we announced. >> sprint lshs t-mobile. think in the payment space or marketplace space. >> i'm sorry, mark. >> you're saying the bell is can't think of a more expensive going off on that deal. way of raising cash than to >> whether sprint/t-mobile repatriate $9 billion and pay $3 happens because it will get significant opposition from the billion to the treasury. sec and they will have to go to >> yes. i -- simon, i agree. court to beat the dodj, but wil my questioguess is they don't g we see announcement of said deal through with that and if they i think that's likely. need the cash they'll do a debt >> we will ask john legere later raise. that's my guess. on the show. >> the opening bell at the big >> yelp, you talk about yelp being a core story in terms of board brazil's bradenco doing growth. how wide does that halo extend? the honors. does it extend to we mentioned over at the nasdaq, viggle an work day and concur earlier this entertaining marketing and rewards platform. morning is it -- can you extend the dow trying to build on the record high as we said earlier, it to a facebook story. the s&p needs about 7 points to how far does it go? >> you mentioned facebook. get there. in addition to that, ford we have gone through earnings success story, monthly auto season. we're in the middle of a sales today and phil lebeau has tradeoff or have been until that. recently in momentum names. hey, phil. >> hey, carl. i think you lie lited the one

let's go through a couple of the name i think the -- highlighted monthly sales numbers important to note here. first of all start with general the market has most miscorrected motors. the street was expecting an on. facebook has pretty much the strongest results versus increase of 4.5% in terms of april auto sales. expectations and fundamentally in the large cap space, that's gm increase of 6.9%. the one to us we think is the most mispriced near term. >> the negative news not we would be buying that stock. impacting in terms of show room a large bucket of ad dollars traffic and sales for the month of april. going into local marks and ant ford which is announcing the transition to a new ceo today, social advertising. those two names, yelp and monthly sales coming in a slight facebook are the best plays off those two trends. decline of 0.7%. >> twitter got punished that is weaker than the street yesterday on some of those was expecting. concerns. the street was expecting an was that a more fair judgment by increase of about 4.5%. as i mentioned as we speak, ford the market? is holding a town hall meeting >> probably. the valuation on twitter is for employees at the world extremely demanding and they headquarters in deerborn where can't miss on anything and they missed on maus an engagements. they have announcing the transition from ceo alan mulally who will be leaving on july 1st we think those metrics will to new ceo mark fields who will reflect back up. be taking over on july 1st. to us it's a trading buy. coming up at 11:00, you do not i prefer nine out of ten days to want to miss a couple interviews buy facebook over twitter but yeah, the correction in twitter we have coming up. at 11:00 first on cnbc we will shares, until they can stabilize talk with ford chairman bill or inflect up those user metrics ford about the transition, a

smooth transition at ford, and that correction is warranted. then at 11:30 outgoing ceo alan >> mark, i've heard you mention mulally will join us first on a number of times during the cnbc. conversation the fight for local we'll talk about not only his tenure at ford, but what a lot search. who's in that fight and who do of people are talking about you think is going to win? today, carl, what's next for >> there's not that many players alan mulally and believe me, in the space. groupon a potential play, local he's not sitting still after july 1st, he's completely free commerce play. we have a sell rating on it. of ford. not staying on the board. he will be effectively a free there's been small plays in the past like a reach local. agent and a lot of companies don't have an opinion on that. will be calling him. the stock that we think and the company we think is best >> something we've tried to. i him down on in the past. positioned right now for a local search outside of, of course, thanks a lot, phil lebeau, busy day today. directv one of the biggest google is yelpp. gainers on the s&p as we just finished that conversation about >> mark, covered a lot of ground all the love that's in the air. there and will read your upgrade of yelp today more closely later avon products we have not gotten to, misses by 9 cents. on. thanks a lot. >> thank you, carl. sales down in every region, down >> talking some yelp. >> up next on the program, box 25 in north america. is delaying its anticipated ipo they make coach's comps look after the poor performance of other cloud companies. good. >> avon just sherry, she came how bad is the trouble in the from j&j, very, very strong exec cloud? more on that after the break. an entire with t-mobile's ceo, earnings just out, perhaps more importantly, the stock is moving shows you how challenged that model is. on speculation that it will do i think ma coy, i thought macoy the deal with sprint.

"squawk on the street" will be could turn it around. right back. right back. they did do settlement with the why is our arizona-by government but it ain't turning. its just isn't turning. look, there were a couple companies in freefall for trying to get a quote up not looking at the camera and doing that stuff. weight watchers in a dch thought they were in race. weight watchers using the word stabilization of earnings even though the earnings were hideous. avon no stabilization. >> none. >> none. >> no stabilization. avon not calling at all. >> mastercard did beat by a penny. revenue a beat, purchase volume up 13. >> i misjudged and thought this would -- after visa, i thought they couldn't deliver. this was last quarter, it was mastercard's turn not to deliver and visa delivered. this quarter visa's turn not to deliver and mastercard congratulations. you know sometimes got to take your hat off. i didn't think they could shoot the lights out versus the previous quarter which is not that great. they did a great job. this was a great quarter. mastercard back, i apologize for

thinking they wouldn't be back. >> sony on the other hand, cutting their forecast for the third time in six months, almost by 70% as the electronics, relocating manufacturing to upstate new york? getting out of pcs, that's going i tell people it's for the climate. to take you back to not quite the low of the year, but close. the conditions in new york state are great for business. >> yeah. i don't know. new york is ranked #2 in the nation walkman there. >> wow. for new private sector job creation. >> that does, of course, you remember the dan loeb is still i and now it's even better because they've introduced believe the significant startup new york - dozens of tax-free zones shareholder there. made one foray trying to get the company to do an ipo of its film where businesses pay no taxes for ten years. you'll get a warm welcome in the new new york. and television business or subsidiary ipo. see if your business qualifies at startupny.com take some public to show the value. for a while seemed to be working in and of just simply showing the value. people focused on that. [ girl ] my mom, she makes underwater fans but he's an active activist. >> to unlock japan as our part that are powered by the moon. ♪ of our celebration for 25 years she can print amazing things, right from her computer. with terrific note written, my [ whirring ] old friend saying japan ruled the world when we started, sony [ train whistle blows ] she makes trains that are friends with trees. ruled the world and then steve ♪ jobs kind of took the world back and looks like sony never my mom works at ge.

recovered. i really believe that by the ♪ way. sony never recovered. >> no, they haven't. >> sony was when you were in the '80s, the first thing i bought when i had my -- paid down my student debt was a sony boom box. >> you could argue -- >> yes, i did. i bought it at 40 -- >> i don't believe that. >> come on. make it happen >> it's true. >> you did have a lot of hair with fidelity active trader pro. back then. >> different. >> i had a lot of hair not a lot it's one more innovative reason of money. serious investors are choosing fidelity. now i have no hair but a -- well. call or click to open your fidelity account today. >> i want a picture of that. [ banker ] sydney needed some financial guidance cramer walking up 42nd street so she could take her dream to the next level. with a boom box. >> i was so proud. so we talked about her options. goldman, just paid down my student debt with my first week her valuable assets were staying. of commissions and i went and got myself a sony boom box at and selling her car wouldn't fly. 42nd street photo. we helped sydney manage her debt and prioritize her goals, 47 -- >> 47th street. so she could really turn up the volume on her dreams >> 47th street. right. >> so long. >> yeah, it is. today...and tomorrow. >> ages. so let's see what we can do about that... finally, yelp up almost 7% as we remodel. motorcycle. [ female announcer ] some questions take more than a bank. they take a banker. mentioned before the open.

make a my financial priorities appointment today. 4 cent loss narrower than because when people talk, great things happen. expected. revenue up 66. make a my financial priorities appointment today. average monthly uniques up 30. at your ford dealer think? they think about tires. >> right. >> vooers of upgrades today. and what they've been through lately. >> 93% gross margins. polar vortexes, road construction, the yelpers write all their and gaping potholes. stuff. internationals really going to be able to have leverage. so with all that behind you, you might want to make sure you're safe and in control. they tossed toppleman wait until ford technicians are ready you see the back half. to find the right tires for your vehicle. there have been a lot of companies that have reported get up to $120 in mail-in rebates on four select tires numbers that are just as good honestly as yelp but today when you use the ford service credit card people are saying you know what at the big tire event. the bottom. let's see. see what the ford experts think about your tires. let's see if there's a bottom. at your ford dealer. but yelp delivered the quarter we've expected from yelp which is they are the yellow pages to the world and it was impressive. >> carl, i see shares of twitter up a bit. >> what? >> less than 1%. i'm curious, given your time there, your previous time. >> yes. >> flying back and forth to the coast, i don't know how he did it, what's the sense when they watch the stock down 10, 12%, and i guess almost 40% for the year? >> you know, we talked about -- in a blow to the ipo market

i asked them off camera just box is delaying its ipo until generally what was the feeling when it was at 70 and the sense some time this summer. in the room people were telling kayla tausche has more details each other, so they say, don't on that and joins us now from the floor from the trading floor of the exchange. believe in this, we -- even we i can't imagine what they think don't believe necessarily that is going to be better in the the core engine of the business summer? >> well, simon volatility is enemy number one. is reflecting that kind of valuation. so they think they've probably i can't pretend to know what the feel like it's more reflective company is saying, what they think about the summer markets. now of what the business is doing. all we know right now is that >> right. >> it has been tough to watch. right now is not the right >> what have they been saying. >> promises we're not going to environment. we've seen what the market has done to momentum names and sell going unheard for the most part. especially to cloud names that >> there are early people who are already public. if you take a look at the can sell. performance of some of these people were stunned by your on-line software companies like interview that i talked to and i work day, service now, viva talked to a lot of people about twitter. systems, all these have traded stunned that it was almost -- off sharply since the year they may have not believed it at began. viva systems down nearly 38%. 70 but trying to get their message and the -- the nbc view, investors are not rewarding the it was called the emperor no lack of patience for earnings to close view, and you're listening to a conference call and one of actually come to the floor. the things there's an etiquette. box is not profitable. the etiquette is basically, ask filed for an ipo on march 24th. a question, they say thank you all expectations back then were for that question. that it would be public at least and a guy asked the question, do you have no close, emperor with by now and investors at that

point would be willing to hang no clothes. on and put their money stowed i'm like geez. i don't want this on my call. away in that stock for growth cut that guy. which some critics have cut that guy's mike. described as nothing more than not supposed to have that kind of thing. an on-line file cabinet. so it was a kind of shocking -- now we have spoken several times >> only their second call. on this show to box ceo aaron >> yeah. >> got to get it right. >> they'll get it down. >> i should add -- levy. has described his quest for >> first facebook call about growth and take a listen to what he told us recently. zynga, come on guys. >> the key is to build a very they became shakespearen in terms of their conference call. >> the company has only been public four months. >> they'll learn. >> yeah. substantive product and company >> right now that was like a and have a very, very long term cable access show. view on the park and what we're they got to get a little more trying to build. that's going to be something polished. i mean time warner like an hbo that we've always had and what will carry on into the future. production. >> um -- >> the stock did close up. i told you. i told you. so we're just focused on the it was true detective. long term and want to make sure wasn't just "game of thrones". we can bring our software to every company in the world no >> leslie moonves in referencing or i referenced that quote that the questi you just mentioned. >> yeah. -- >> the question is the long-term >> said they can't measure whether it helps with the structure of box. ratings. that is twitter and tv. many said that it needed but there is a beneficial he proceeds from an ipo to actually believed something beneficial to having people tweet about shows help its balance sheet and that they're watching. >> doesn't hurt. buttress some of its earnings.

that's one of the things can't no doubt this market has not hurt. you know, can't hurt. >> can't hurt. >> i have a million people been friendly to potential ipos. saying turn on the oscars. back to you. >> jim would argue, kayla, the that's better than having no one say turn on the oscars. three best things going for i was surprised that there stocks are delayed ipo out of box, out of drop box and air b wasn't more cause and effect demonstrated. if you go and listen to facebook's call, all you hear and b. about and you'll hear dominos on three deals he said would have "mad money" tonight, and patty been abominations. >> can't blame them for wanting doyle will say the way that to put this off for a little we've been able it to build our bit. we can't say the market will be business is facebook. better in may or june but at not twitter. facebook. least it won't be right now >> yeah. >> the app. which no one can doubt is a very the great app. i love the app. >> with all of that, dow is down bad time. >> it's a statement to the 16 and we'll talk t-mobile in a obvious. how long ago was it like two or three weeks getting like six bit. first bob pisani is on the floor. hey, bob. ipos a morning. it was just this thunder of ipos >> good morning. just want to point out some of the earnings here. here's yelp. and now virtually nothing with look how yelp opened up almost the exception of alibaba. 8%, 7.75% on its earnings and we >> that's a company that has real left, it has real earnings just had an open if in linkedin power. there is really no patience in the market for the names with no move a little left there, you can see linkedin right now up profits like box, like spotfy, 4.2% right now. like drop box. a lot of names would be an now, i believe that that's related to the fact that yelp abomination for a market that already saw the floor come out had a very, very good number from under some of the momentum

overnight but also linkedin is names. gopro another company we expected to be public. going to be reporting tonight. this is hurting the companies. strong volume right here at the open. underwriters said a lot of this stuff is moving on better than expected numbers. speaking of tech, you've been conversations were moved forward because the window was so good. hearing these reports the box the question now is, whether a ipo is delayed, the journal new window will present itself. mentioned this. the company has not made an official announcement. >> see if that happens later in more than 21 days since they the year. in the meantime senior white announced they were going public. house adviser valerie jarrett publicly announced they were will join us live from the going to have an ipo. global women and finance normally there would have been terms announced and road show symposium in washington. would have been set in motion. her take on the economy, jobs, that hasn't happened and part of the indications that this may be that m&a picture and more when we're back in a minute. delayed here. in a mi. now again, they haven't made any formal announcement on this but obviously the choppy markets, poor return for technology ipos, talking about this putting up numbers for the last week, they've been terrible recently and the fact that the company isn't profitable and people looking for profits at this point factors in this what looks like a likely delay at this point. let's talk about earnings. i know you mentioned exxon but these numbers were really good for exxon. and connaco. this is impossible to move these companies because they're so

gigantic and big. oil and gas segments generate a billion more than expected. whon a certified pre-ownedan unlimitedmercedes-benz?nty we had higher crude prices, production, a canadian oil sands project that did better than what does it mean to drive as far as you want... expected. it's down right now. for up to three years and be covered? but remember these companies are impossible to move. exxon generates about 4 million it means your odometer... is there to record the memories. barrels a day, almost 5% of the during the mercedes-benz world production levels and so certified pre-owned sales event it's very difficult to find now through june 2nd, replacements for that. you'll get complimentary pre-paid maintenance and may qualify for a two-month payment credit. that's why they grow slowly. they pay the dividends. only at your authorized mercedes-benz dealer. look at the dividends of the oil companies. exxon is 2.7%, but conco is 3.7, [ male announcer ] when fixed income experts... ♪ royal dutch almost 4, bp pays 5% ...work with equity experts... and still paying out billions because of the gulf disaster. ♪ ...who work with regional experts... exxon has the lowest dividend because they're the cadillac of ♪ the whole business. you pay a premium to have that brand name and own that. ...who work with portfolio management experts, believe that's gold in the bank for them here. so let's move on here. i saw mastercard's numbers and i that's when expertise happens. completely agree with your mfs. comment. i heard what you had to say. because there is no expertise without collaboration. i thought you were right. mastercard was terrific numbers.

particularly in light of what happened with visa last week here. you look at the purchase volume growth here. in the u.s. almost 9%. that was really good. this is your key metric. europe good, asia pacific good. latin american 21% above expectations. finally just want to know, bezer was a disappointment. conference call at 10:00 an hopefully get a clear up, maybe get a better idea of what the guidance is. we don't know what it is right now. home builders disappointment. back to you. mfs. that corporate trial by fire when every slacker gets his due. >> we'll head to the bond pits and check in with rick at the and yet, there's someone around the office who hasn't had a cme group in chicago. rick? >> thanks, david. you know we've had some data performance review in a while. today and the increment spending someone whose poor performance were good. is slowing down the entire organization. jobless claims maybe a little holiday distorted up 14,000. but ism, national number, top of i'm looking at you phone company dsl. the hour is going to be check your speed. see how fast your internet can be. potentially a very important number. switch now and add voice and tv for $34.90. let's look at two day charts. that is the way to go today. look at a one-day chart of 5s, comcast business built for business. looks like yields are up a bit. two day puts it in perspective.

look at the 10s, same thing, one day, wow, looks like yields are climbing up. welcome back to "squawk on the street." no. that's computer scaling there i'm jackie deangelis reporting from the nymex. this morning we are watching the folks. two day tells you the truth. the long end. energy complex coming under pressure today. a lot of technical selling here. the ten10s looking like 30s. traders are saying. june of last year, imagine the based on what we're seeing in the equity market. the department of energy just trend line under there. yes. released its weekly storage many traders are looking for potential breakouts. report on nat gas inventories. remember the long closing yield of the year for 10s, 257. 82 billion cubic feet, more than 30s, they're two basis points be what they were expecting and away from the lowest yield close substantially more than what some of the traders on the floor was expecting. since june. we're watching the price action 344 that bench mark. right now and prices going lower i believe was the close on it. on this report. 25th of april. couple things i want to mention, expectations were revised down dollar index tell you what because there was a fire at a technicians are everywhere on nat gas plant in wyoming. the floor, they're getting pretty bearish. that took some of the storage dollar index. it doesn't take a real off of the table. also remember, spring is when technician rocket scientist to we're transitioning here from look at this chart going back a withdraws to injections. traders are saying the cold weather has really impacted ways and see that this is on this. this number showing that we're precarious ground hovering where seeing a little better than it closed last year for many expected. of course they are looking to closes. now you want to monitor this the summer. it is going to be a hot summer very carefully. but they want it see how quickly carl, back to you. we're going to transition to

>> rick, thank you very much. that hot weather and going to be rick santelli. when we come back ford picks looking for some strong mark fields as its next ceo. injections in the next few coming weeks. stay tuned for some live of course that's what they're interviews with executive going to be watching. chairman bill if ford and guys, back to you, simon. >> yeah. tricky time of year to be outgoing ceo alan mulally. trading natural gas. also ahead t-mobile's john thank you very much. some of the biggest names in legere on how his company is government and finance gathering upping the ante in the wireless in d.c. today for the global women in finance symposium. wars. so many questions for him. dow up 13. 3. inevitably we offered one of our brightest and best and sara eisen joins us live from d.c. >> well thank you for that nice introduction, simon. i'm happy to be here with valerie jarrett the senior adviser to president obama. she's been vocal on issues like equal pay, getting women in the work place. that is a topic of discussion here, but the el fans in the room is the lack of economic growth. 0.1% in the first quarter. that has to be a setback. >> well as we know, we still have a lot of hard work to do. it's why the president is working very hard to get congress to invest in infrastructure which would create jobs and growth right away. we think weather was a contributing factor in the last few weeks. i've met with a group from the retail and high-tech sector and

they both felt the weather was a significant factor as well. now that we're going into the better weather enjoying the beautiful spring day -- >> rainy spring day. >> a lot better than the winter i can tell you that much. we still have a lot of hard work to do to get our economy growing and we're very interested 2in working with congress to itdo that. >> politically it has to be difficult to tout improvement on a recovery when you have growth flatlining. >> we've come a long way. remind ourselves when the president took office over five years ago we were losing 750,000 jobs a month. our unemployment rate was four points higher than now so we have certainly made a lot of progress. over 8 million jobs in the private sector created. we still have a long way to go and that's why we're going to continue to be vigilant. >> looking forward to the jobs report tomorrow, hoping to see a better number above 200,000. better but not quite where we need to be. >> no. look, as long as there's anyone in america who wants to work, we still have work to do. so the president is very

interested in first priority is growing our economy and we're going to do everything within our power working with the private sector to do just that for the short term but also for the long term. >> housing has been a bit of a concern lately. lot of signals pointing to a slowdown in the housing recovery we were seeing. many people don't know that you actually have background at the habitat company, housing and development, before the white house. >> uh-huh. >> are you concerned that key piece of the recovery puzzle sort of missing right now? >> we have to get it going. it's interesting, one of the reasons we need comprehensive immigration reform. that would be a boost to the housing market. the president, that is probably his most central legislative priority right now and we're working very hard with congress. the senate has passed a bill that would provide for that comprehensive immigration reform. that would be a huge boost to our economy. we should get that done and have a vote in the house. >> you inevitably hear that the regulatory environment, uncertainty, burdens, obama care v been holding back the economy and holding back hiring.

obviously you dispute that. >> sure. >> what is it? >> i think there is a perception and let's face it, having gone through the kind of recession that we've just have been through, many of our business leaders have never been through anything like ta. none of our business leaders have been through anything like that before. takes a while before people, their confidence begins to grow. having had now four years of solid private sector job growth, beginning to see some optimism, beginning to see some investment. people are going to be cautious, going to be prudent, but we believe it's coming and as i survey the business community, many of them are feeling more optimistic and they think there is a gap between the perception and the reality and they are contemplating strong investments. the united states is still the envy of the world over. if you talk on a global scale people are interested in investing in our country. jobs coming back to the united states that have been outsourced before. >> speaking of the world, i know you advise the president on foreign policy. the new sanctions on russia, do you have any indication that they are having an effect.

>> it's too soon to tell, but the president has been very deliberate, very measured. we've had a lot of engagement with our business community here, engaging their reaction to our sanctions and so far we have had their full support as well as, of course, importantly the support of our allies in the g- 7. >> want to ask you about an issue that has gripped america this week the nba scandal. do you think a $2.5 million fine and bap for life for donald sterling is punishment enough for what he said? >> well look, we support his decision. it's up to the nba and adam silver did a swift and thorough investigation and he reached a conclusion and we support his conclusion. >> do you think your fellow chicagoan oprah winfrey should bid for the clippers? >> i heard about that. i was excited to hear she was interested. seems to be a lot of buzz going on about that. >> sounds like you support the idea of him no longer owning the team though. >> i support the decision of adam silverman. i think what he said was outrageous. no place for that in the nba and

in our country. >> on a variety of issues, has to go to you first and then to the president. the powerful woman in the white house, valerie jarrett, here at the global women in finance event at the treasury department. thank you valerie. send it back to you, carl. >> thank you so much, sara eisen. >> to dominic chu and a market flash here. >> hey, carl, two health care companies heading in opposite directions today. we'll start with cardinal health falling after its third quarter net income fell about 9% as the termination of a big contract last year hurt the prescription drug distributor's bottom line. cardinal health down about 6%. it's a different story for health insurance company cigna, moving higher after it reported better than expected first-quarter profits. up about 3% in trading today. now stay tuned for cigna's ceo david cordani who will be on live later this half hour. we'll all be paying attention to that interview. >> just a few minutes away. thanks. >> also coming up new information says that just 67% of obama care enrollees have

paid their premiums and completed the enrollment process. congressman tim murphy who helped compile that information will join us after the break. dow is down 22. n 22. whoyour boss?rk for? yourself? your parents? your family? at baird, what matters most to you... matters most to us. as an employee owned firm, our financial advisors have the freedom and resources to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.

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the oversight and investigation subcommittee discovered as of april 15th only 67% of individuals and families that selected a federally facilitated health care plan paid their first month's premium. on that note, let's get to rick santelli in chicago who's got more. hi, rick. >> hi, carl. and i like to welcome our guest, he's not only a congressman, but he's also a doctor. psychologist. welcome, congressman murphy. >> great to be with you, rick. >> all right. now i looked at this data and basically seems to me the house energy and commerce committee took the advice of the administration when questioned numerous times as to ultimately how many people have paid with regard to the affordable care act/obama care. they didn't know. they said you know, you have to talk to the insurers.

that's what this committee did. tell us in simple form what their findings were, congressman. >> indeed. we asked the insurance companies how many people did sign up and paid their premium. the president said 8 million have signed up. we found two out of three. on top of that it's important to know who signed up. what we found is, that most of the people who signed rupp actually over age 50 and less than 25% or so are 18 to 35. the administration has said you need about 40% of the sign-ups to be in the younger category, the young, healthy category, to make the plan sustainable. what it makes us realize first of all they're not getting the money in yet and secondly, the people are signing up are those that will use health care and not just paying the premiums. i'm wondering how this whole thing fits in a business plan to really make economic sense over time. >> now, congressman, that's what i'm interested in. we're talking 1/6 of the economy and different metrics like ism service sectors, but i have one

question, this is mandated. this isn't voluntary. this whole thing about the numbers, okay, charge a small fine if you don't sign up this year and if people don't sign up and the numbers that the administration wants, they're just going to up the fine. so how many sign-up inevitably, it's not a voluntary process. what i'm interested in is if the risk pool as you pointed out is polluted meaning we don't have enough of the younger people who pays the freight and if insurance companies lose money, is there a bailout? that's what i want to know? >> well, the bailout will come along the lines this thing is not financially sustainable. no other company would be allowed to operate like this, no insurance company would get their plan approved if they didn't have the numbers to sustain it. couple things, will they increase the fines on people for not singh up, two, increase the premium costs and three will the tax payers have to come up with more money to pay for this. when this was first sold to the taxpayer on top if you like your health care you can keep it,

keep your doctor, save you $2500, save the taxpayers $100 billion, now say it's going to be over a trillion dollars cost but these numbers tell us it's goings to cost more. if we don't change these numbers it's going to cost us upwards of a trillion a year. these numbers won't work yet and it's important the energy and oversight committee is asking questions how does this fit? the numbers don't add up. >> i'm sorry, cbo tells us how much it's going to cost. what's wrong with their output, sir? >> the cbo told us initially it was going to save $100 billion. now saying over several years going to cost a trillion. these new numbers are telling us the numbers the cbo has need be to be updated. >> this is telling. the average american ta doesn't have time to dig down in this like you and are, they see cbo, think it's written in concrete like hollywood puts their hand prints in concrete, but it isn't. as the numbers change these

costs can really have no ceiling, is that not correct? >> i don't think kite have a ceiling the way it stands now. look there was supposed to be 45 million who didn't have difference. 6 million who lost their insurance. now 51 million people that have some need of insurance. i look at these numbers and don't know yet if we can tell and i don't think we candle, if the people who signed up were basically those who did not have insurance before. when i asked secretary sebelius in front of our committee, she said there's no way of telling if the people who signed up are people who lost their insurance or new folks, if they'ring by a more, less or the same. i'm not sure we have information this has fixed the basic problems. more problems emerging now because these costs are not sustainable. >> congressman, thank you for taking the time. there's an election coming up in november. get these kecommittees to work. americans have the right to know before they cast their ballots. thanks for taking the time, sir. >> thank you. have great day. >> simon, back to you.

>> thank you very much. next we'll take you inside the insurance industry, cigna spiking after reporting quarterly results that beat expectations. the ceo will join us in an exclusive interview next. later, t-mobile ceo john legere will be with us to tell us how his company is firing the next shots in the wireless wars and whether it will be taken over by sprint. this show will be right back. for over 75 years, fannie mae and freddie mac

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now you could have done it twice. this is awkward. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business. the stock of cigna is making a comeback this morning. cigna is playing catch-up on earnings that beat expectations for its quarter as it raises its full year guidance as you know subsidiaries mostly offer their insurance products through employers, government organizations and labor unions. joined by david cordani, cigna's ceo. welcome back to the program. >> good to be with you, simen. >> we're struggling with what the first quarter of the year was. does the bad weather benefit you? because essentially people can't travel as easily to consume health care that you might have to foot the bill for? >> true. simon for our business portfolio, which is a global

business portfolio, each offous -- each of our businesses ha has had a strong fourth quarter portfolio. we did not see a major impact from the weather. we saw a slightly less acute flu season that happened in the quarter of 2014, first quarter of 2013, but net net we had a strong first quarter. >> you're significantly raising your outlook by 15 to 20 cents on the range. citigroup analysts is wondering out loud the degree that is due to the share buybacks which flattered the eps. what can you tell us on that. >> sure. we started this year with an expectation to grow earnings year over year, unique in our space because of all the change in transition and that is the power of our diverse portfolio businesses. the global business, the disability business, as well as the health as well as the health care business. we had a strong first quarter that enables us to increase our full-year outlook. our full-year outlook increase is driven by two items. the share buyback.

two, the underlying strength of the first quarter results. and finally as we discussed with analysts this morn, we're still keeping some conservative view in terms of what the rate of medical cost growth may be later in the year. on an all-in basis strong start to the year, increase to our outlook and something we're proud with. >> david, can i bring you into the health care debate, which of course continues to rage about obamacare and the health care exchanges. i think you actually sold products directly to consumers in five states. so you are partially active though obviously it's not the main focus of the business. what do you make of the news from the commerce committee that as of two weeks ago 67% of people that had enrolled in the exchanges, those 8 million people, had actually paid their first premium? is that good or bad? >> i'll tell you what we do know from our business. first, it's a small portion of our company. we decided we would make a very focused play in 2014 in five states, as you made a reference to. we estimate it will be about 3% of the enterprise revenue for

2014. what we saw was that the early -- on the exchanges had a little different profile than the folks that were enrolling through the latter part of the year. on average, about 85% of all of our customers paid their first month premiums. and what i believe -- >> i think we've lost him. the ceo of -- >> just getting to the interesting part, too. he has said that the early enrollees were older and that a second wave of early enrollees were on the younger side. and the obvious question is whether or not that balance is now acceptable. oh, we do you. david, i apologize. we lost your sat signal for a few seconds there. but fill us in. after those early enrollees were on the older side, what's happened? >> sure. so -- well, i think we've picked back up here. the later enrollees are a little bit younger. a little bit younger. and have purchased a little leaner benefits. so a little more bronze purchasing. the final point i think where you're going to, those individuals may not have benefits that are activated until may 1. a larger portion of that group has not paid their premiums yet.

net net it's early in a new marketplace. there's higher utilization from a slightly older population and the key to success here as a society is does this business portfolio in total for the country settle down whereby we could have sustainable affordable solutions going forward? >> let me ask you specifically that question. congressman tim murphy was on the program just a few moments ago with my colleague rick santelli suggesting the whole system in the way it's unfolded is not now financially sustainable. is he right? >> i can't comment whether or not because i didn't hear his specific point of view. what we believe, to create sustainability, is a couple points have to exist. one, individuals have to be actively engaged in their health cares and behaviors and lifestyles. fully 80% of health care costs tie to behavior and -- >> okay. i think we've finally lost that satellite. david, if you can still hear us, you probably can, thank you for joining us. david cordani, the ceo of cigna. still ahead on the program,

we'll be joined live by ford's executive chairman bill ford on the outgoing ceo alan mullally as the company of course names its new incumbent. you don't want to miss that series of interviews. we'll be back after a quick break. break. de>>who's got twond rhooves and just got ae. claim status update from geico? this guy, that's who. sfx: bing. and i just got a...oh no, that's mom. sorry. claim status updates. just a tap away on the geico app.

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of course tomorrow is jobs friday, and that means another chance for you to nail the number and win a nice prize. just tweet us your predictions for the april non-farm payroll number. use our handle @squautstreet and use the #nailthenumber. if you win, it's a good one. duffel bag autographed by the "squawk on the street" gang. and of course as usual you'll have until one minute before the friday release, 8:30 a.m. eastern time, to submit your predictions. best of luck to you. busy show coming up for the next hour. if you're just joining us today, here's what you missed. >> welcome to "squawk on the street." here's what's happened so far. >> there's never been a procession where there was a great ceo and he was followed by a great ceo at ford. i like fields. let's see what he does. just i'm surprised. david novak is a terrific ceo, and they stumbled on china and he's gotten that back together. and i have to feel that maybe he feels that since the situation in china's stabilized. not what i was looking for,

though. >> in my mind what's happening is that the economy is reverting to the growth rates we had in the second half of last year. when we grew over 3%. >> as long as there's anyone in america who wants to work, we still have work to do. so the president is very interested in the first priority is growing our economy and we're going to do everything within our power working with the private sector to do just that. >> good or thursday morning. it is 11:00 a.m. on the east coast, 8:00 a.m. out west. let's get straight to the big story of the morning. of course that is ford announcing the long-time ceo alan mulally will retired on january 1st. he'll be replaced by c.o.o. mark fields. we'll have an interview with bill ford, alan mulally later on in the morning but in the meantime let's bring in phil lebeau, who's been reporting on this not just for today but the last several weeks. he's in hartford, connecticut today. phil, it's an important day and

investors will need to know what it means. >> i think most investors are looking at this and saying we've seen this telegraphed for months in advance, we've known that mark fields, who was in the position of c.o.o., has essentially been rung the day-to-day operations at ford, at least for the last six to nine months, and before that he was taking on some of alan's responsibilities. so this transition has been telegraphed for months from ford. the question now is let's look beyond the next six months. because nothing's really going to change. and mark fields even said during today's announcement that nothing was going to change. but when you look out let's say a year, a year and a half, three years from now, does mark fields have the vision to lead ford to that next leg of growth? that's really the question that investors need to be asking themselves. and at this point i'm not sure if they are asking themselves that. we're not seeing any change in the shares of ford. but his challenge is going to be let's look out three years from now. yeah, the one ford plant is going to guide you over the next year or two. what happens down the road and

does mark fields have that vision. that's really the question for investors. >> phil, he's run the america since '05. even ran mazda for a couple of years. obviously, he's been handling the key meetings at ford for a while. >> right. >> where would you argue he has demonstrated his ability to either turn around a division or build on its momentum? >> ford in the americas. because when he took over the ford of americas division they were just beginning their transition with alan mulally and he was a key architect behind them saying look, we can be profitable building and selling small cars, we've got to sell more cars, we just can't be suvs and the f series. and he was a key architect of that plan. so he has the chops in terms of running this company as a day-to-day operation. and he also buys into the idea that not only do you have to be successful in the u.s. where ford is successful, you've got to ultimately get europe to be profitable and you've got to continue growing in china. that's the legacy of alan mulally. he took ford, which had very little presence in china back in 2006, and he said we're going

there and we're going there big, and look at the growth that they've seen there. that is really where you're going to see mark fields really push ford in the future. he knows that china is the growth. >> more short-term, phil, we did get auto sales this morning from chrysler, from gm. from ford. with that .7 decline, an estimate that was positive, what should we make of that? or actually, i'm going to let you get straight to bill ford. >> okay. well, let's do that. we'll talk auto sales a little bit later on. let's bring in billing ford, who's the executive chairman of the ford motor company, joining us from the company's headquarters in dearborn, michigan. bill, we took a little bit of the town hall meeting earlier today with both alan and mark, and i know it's not very often that you have it in the auto industry. a smooth transition. what was it like for you to be on stage with both of them today announcing this transition? >> well, in many ways it was the culmination of something that i'd hoped for for some time because i think the culture change we've had at ford has been so positive and i really

wanted that to continue. but for that to continue we had to have a very smooth ceo transition and a transition to someone in mark who has actually been part of building that culture. >> did you look outside the company? i know you mentioned today that yes, we did a full search and we did look outside the company, but a lot of people looked at that and they said oh, come on, let's be honest, we've all known that mark fields is going to be replacing alan someday. how much did you consider outsiders? >> well, clearly, i did look outside, phil. but -- because i have to. i've got to make sure that we are scouring the globe for the best talent. but i really kept coming back internally as did alan to mark because we thought he's a great candidate. he's grown tremendously as an executive and, as i said, really importantly, he's part of the culture of ford that i think is so positive. >> you talk about the culture. i'm not telling you anything new. that you know that back when you were ceo, before you were ceo, the criticism of ford was its

fiefdomes and its little areas fighting against other areas in the company. that's changed under alan. will it continue to be one team and not a return to the fiefdoms under mark? >> none of us wants to go back to that, and everybody's so energized by the way the company is operating today. and it's actually made for a much better management development process because today everybody's expected to chip in on all the problems. and also, everybody's exposed to the entire business. so you have -- therefore a much better educated executive team than we used to have. and nobody wants to go back to the old ways. and part of my role is to be the institutional memory to make sure that we don't. >> as you look at the team now under mark, he doesn't plan to make any changes in the near future. can you kiehl keep the talent bench you have there? because that's one of the hallmarks under alan is you guys have been able to really build a solid bench. can you keep that bench there? >> yeah, i mean, i think we can

and we plan to. because the people who are here leading our company, they love this company and they love this industry. it's fun, it's exciting. but you point out we do have really good people and is there a chance that someday, some of them could leave? of course. but one of the things i feel really good about is we haven't just filled the executive seats with good people. we've actually got a very talented bench underneath them. >> one last question. bill, when you look at what's happened with alan mulally, it's clear that he is going to be leaving the company completely. he's not going stay on the board after july 1st. was that his desire, or was this a case where you guys said you've done what you've needed to do, what you've wanted to do, be free, go do whatever you want to do. or did you ask him to stay on the board? >> he and i have been talking about this. one of the great things about the last eight years is the kind of partnership that alan and i have. and we've become very good friends in addition to colleagues. and that doesn't always happen. so this was a very natural

thing. i think we both believed that alan had done obviously a fantastic job. but from a governance standpoint it's tough to have an outgoing ceo sitting on a board. so i think we both really came to the conclusion that it was probably best to make a clean break on july 1st. >> and we know that alan has plans for the future. we don't know what those plans are. is there anybody chance somebody calls you and says can i get a recommendation on alan mulally and you'll pick up the phone? >> hey, listen, anybody who needs to call for a recommendation doesn't know alan very well. >> that's true. bill ford, the executive chairman of the ford motor company, joining us from the company's headquarters in dearborn, michigan on a day, carl, when you see something you that don't see very often in the auto industry. a smooth transition from one ceo to the next effective july 1st. back to you. >> great work, phil. and of course you're not going too far. we're going to have more on ford later this hour. we will talk to alan mulally in a first on cnbc interview. that starts in about 25 minutes

at 11:30 a.m. eastern time. in the meantime, let's send it over to dominic chu and get a market flash. hey, dom. >> check what's happening with netflix. up big today. no specific news but investors may be looking for a bottom in this stock, at least trying to find one. currently up toward session highs, up about 5%. since hitting that record high of 458 bucks back in early march the stock has lost about a quert quarter of its value and that's including today's gains. snm and dow marginally higher or lower but the nasdaq up in part due to that surge in netflix. >> still down 25% this year, dom. interesting chart there. up next a big surprise from cloud software company box. the company's delaying its ipo until june and that has a big impact on the broader ipo market. we'll explain why in just a moment. plus shares of t-mobile rallying this morning. the carrier adding over a million new subscribers in the latest quarter. t-mobile's ceo john ledger is let's just say a little excited. he tweeted this morning "we have

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welcome back. time for the squawk feed this morning. the top stories in the world of technology. joining us this morning john steinberg, buzzfeed's president, c.o.o. and a cnbc contributor. good to see you. >> good to be here. >> first up this morning cloud storage company box announcing it will delay its ipo until at least the month of june. box filed for that ipo back on march 24th, was eligible to list shares as early as april. here's box ceo aaron levy on this show back in march talking about the future of the company. >> the key is to build a very substantive product and company and to have a very, very long-term view on the market and what we're trying to build. and i think that's going to be something that we've always had and what will carry on into the future. so we're just focused on the long term and want to make sure that weng bring our software to every company in the world. >> box declined to comment on the story, but a sudden sell-off

in stocks in cloud companies may be a big reason for the delay. this chart tells some of the story. cloud companies like service now, workday, viva systems all making obviously big moves to the down side over the past month. you've done a lot of reporting on what the framework, what the window looks like right now. is this the poster child for where we are? >> i think it is. john and i were talking before the show about companies like square and dropbox going and getting these credit facilities, and at the time it looked like a defensive move. now it almost looks like an offensive move because equity capital is harder to come by. so at least making sure that you have that coffer with a little bit of extra capital was a very smart move come the end of march, beginning of april, when this window started to close. underwriters had said the beginning of the year, the first quarter was very hot. it was very active. a lot of companies tried to get into that window. if you missed it, you're going to have to sit out for a bit. >> also, these credit facilities can be done relatively quickly. i wouldn't be surprised now if it's already under way or they're already doing that. this company is definitely going public. aaron levie very much wants to

be independent. he seems to enjoy dealing with shareholders. he seems enjoy wall street and there's a definitive marketing benefit. this is a company that goes after the enterprise. this is a company whose clients listen to earnings call, watch business news, read the "wall street journal." definitively the credibility of being a public company has a real benefit to box. >> it's on lots of lists of things large cap tech companies would, should, could buy. but you think they're going to go independent. >> he owns very little of the company actually when you look at it. he owns about 4% and change now. i think it goes to the high 5 percents based on his unvested options and things like that. he's doing it from a place of passion that he wants to build this company, he wants to mix it up with the big players. i don't see that happening. anything is possible. if he got a crazy offer. but given the losses on the company i don't see them getting a crazy offer. >> to that end dan primek over at fortune discussed this in his blog post about this delay last night. he says ceo aaron levie "would have a heart attack if the board told him they seriously want him to sell. if he wasn't so insistent on staying independent he would have already accepted an offer

from citrix or sales force." that quote attributed to an unidentified source. >> yep. >> but still it begs the question why is he so insistent on being public if this is a company that is becoming a commodity? we talk often about amazon, google, microsoft having such strong cloud ofrgds. should he have accepted one of these offerings? >> he doesn't view it that way obviously. none of these guys view their companies as commodities. they always have a way of viewing it they do something special in terms of pruvlthty. but i loved in primek's article they were talking about freelance bankers going around trying to stir interest. these freelance bankers going around stirring conversations and rumors. i think dan has it spot on. i'm sure that's what's going on right now. >> a lot of analysts with sleepless nights trying to put last-minute picks together i'm sure. >> next up, snapchat now more than just disappearing pictures. the app's latest update is adding two new features. instant messages that vanish and a big one, live video chat. if you and your friend both have snapchat open all you have to do is press and hold a certain icon and immediately you start chatting face to face.

do you think this is a game changer? some say it is. >> i love the way they announced it. the way i found out this smorng i opened up snapchat and in there was a message from the snapchat team talking about this new product. everybody wants to go into messaging and everybody is competing in messaging. we saw facebook last night roll out photos, almost like a selfie function inside of messenger. we saw dick costello at twitter talk about kind of secret or whisper conversations he wants small groups to be able to have on twitter. they're all going into each other's space. snapchat needed to have that basic messaging functionality as well so people don't leave to go to what's app every time they want to have a meaningful conversation. >> if you have what's app, facebook messenger and snapchat, why would a customer essentially choose snapchat over those? >> that is the battle. they all realize somebody's going to be choosing over one of them sow need to augment with features. the issue is that snapchat is so much smaller than these other guys. snapchat probably has 20, 30, 40 million users -- >> 20 million. >> that's the number coming out of comscore. it's always hard with comscore

numbers to -- i think that's on the low end just in my gut. but what's app's 450 million. it seems easier for snapchat to go into what's app than what's happen to go into snapchat. >> the feeling is people are doing something illicit they want the message to disappear because it's something they don't want to live on their phone. but we argue twitter can't go mainstream because moms and grandmas and people don't feel the need to get on twitter. but how can snapchat make itself more accessible to the mainstream? >> i think people realize that spontaneity and impermanence is a feature, not necessarily about cloaking something else. it's about making life a little easier. i use snapchat during the day to share pictures and videos of what the kids are doing just because we don't want to have all this stuff adding up on the phone. you don't need to keep all this stuff. it's like a piece of paper you throw away. >> i agree. twitter, all of our tweets are being catalogued in the library of congress. i don't think that's a selling point quite frankly. >> as it is right now once your kid gets to 5 years old you will already have so many photos clogging up i photo you don't know what to do with them

anymore. the last thing i need is a bunch of photos from the day -- >> you want the hall of fame. >> yeah, the best. absolutely. >> the stock yelp well into the green and getting greener after first quarter earnings did beat expectations. reviews grew 46% year on year. the company continues to work ilths way toward a profit. upgraded several times. mcquarry, rbc, piper jaffray. if rbc's case to an overweight. they're saying as the stock's now up 13%. >> let's talk about it from the fundamental business components. three numbers that are very exciting. unique users, reviews, small business advertisers. 28% unique user growth. review growth keeps staying in the high 40%. right? and active local business advertisers, 74,000 up 66%. all the key metrics, which say will this be a mainstream thing that everybody uses are going in the right direction as compared to a lot of the stories we've seen this quarter like twitter not going mainstream. i think that is why people are excited despite the fact the company's not that profitable. >> but only 1/5 of the users on desktop use this product on mobile. do you think it needs more

headway there? >> 60% of the searches this quarter were on mobile. so i think there are some nice mobile numbers in the quarter as well too. and it's really just a question of how long that transition takes. i think they basically hit everything people wanted to see in the quarter. thaur still not quite as big as some of these much larger platforms and there is always the rix of facebook or someone going into that but i think they're an attractive takeout target. as was discussed during the first hour of the show it's under 5 billion bucks. 5 billion bucks these days is not that much money. >> that's a sweet spot for a lost these high cash companies. >> absolutely. apple has been rumored to be talking to them also. >> that would be interesting. >> a ceo that's not i think a promoter, so to speak. relatively reserved and shy. he could be doing more to get the name out there i think. >> well, with this community. he's someone that is very visible in silicon valley in san francisco but to our conversation earlier about aaron levie he's not nearly as engaged in the investment community talking about his great vision. he has a great chief operating officer in jeff donaker who thinks a lot about new ad products. there definitely is a lot more they can do to be out there.

>> i wrote my first yelp review. in chelsea they did a great job patching up my winter boots. he sthad are you on yelp, will you write us up? i said i will. >> most people just consume. they have a story that's been consistent on that. now we see twitter trying to pivot into a yelp-like story. very few people are going to feet but the tweets are going to be consumed everywhere. if they had had the yelp story from day one they would have been so much better off. >> you think bad reviews are defamation? >> they said bad reviews are only about 20% of the reviews. 80% are neutral to positive. and if you can't have a bad review of a restaurant or -- >> somebody's got to fail. >> i mean, come on. i think that 50% of the local businesses i go to i have bad reviews on. i don't put them on yelp because i don't want to deal with the hassle. >> it's true. it's interesting. but they also had the issue with the new york a.g. where there were a lot of fake reviews too. and the new york a.g. planted someone in an ice cream shop that didn't exist that a lot of these great reviews, very, very

high marks were generated by people who did not exist. >> but they have a good review process for people to go in and file complaints and have these things taken down. it reminds me on the cnbc 25 special eric schmidt was talking last night about how with google and privacy you can go in and there are proactive systems to deal with this. yelp provides those as well. so i think that every business has its privacy or its legal, lake air bnb type issue. it's good to know what your issue is basically. >> those shares up this morning. investors like what they see there, especially with an upped guidance number for the rest of the year. so they think there's a light at the end of the tunnel there. john steinberg, thanks as always for joining us. >> thanks, guys. great being here. >> up next, ford making headlines this morning after announcing ceo alan mulally will step down in july. alan mulally is here in a first on cnbc interview starting at 11:30 eastern. and check this out. john legere tweeted this foughto with the caption "i think the magenta cowboy hat is a good look for braxton carter." but look closely.

could "squawk on the street" be their lucky charm? >> yes he's watching the mad dash. >> there it is. we'll talk to the ceo when we come back. come back. today, you can come to cleveland clinic for anything, everything or just to get that "thing" checked out. big, small, and yes, the best heart care in the nation. it's here everyday, for everyone. that's the power the power, that's the power of today. cleveland clinic. call today, for an appointment today. ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence.

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let's get a check on the markets right now. dow is down by just about nine points. s&p and nasdaq managing to hold on to gains. if the dow closes into positive territory with any sort of tape, it would be close to a record high once again. that coming yesterday, even amid a disappointing .1% reading on first quarter gdp led by some surges in industrial space, which is a better indicator of the health of the economy. we want to bring in alan krueger. he's the former chair of president obama's council of economic advisers, currently a professor of knicks and public affairs at princeton university. alan, great to have you this morning. >> good morning. >> we aw jobless claims tick up this morning. we had a good print on adp. what does this set us up for in terms of the jobs number tomorrow? >> looks to me like the economy's continuing to heal,

that we're shaking off the effects of bad weather we had over the winter. we're getting some mixed signals but i think the direction is continuing to point toward expansion of the economy and i suspect we'll see solid job growth. >> do you think 215 for the con sense sus still too healthy given what we've seen throughout the first quarter? >> the monthly numbers can be very volatile. if you look over the past year, we've been averaging around 200,000 jobs a month. slight pickup from the year before. and i suspect over the coming months we'll see that same kind of a pattern. >> hey, alan. during the crisis i think there were only a couple of cities or metropolitan areas in the country that had unemployment under 5. now we've got almost 50. and i wonder if you think there's enough there to start sowing the seeds of some wage inflation in the near term. >> i do think we're going to see some real wage growth. i think for a couple of reasons. one, as you mentioned, there are

regions of the country where the unemployment rate's very low. and then even if you look nationally, the short-term unemployment rate is also back down to historical average. it's long-term unemployment which remains high. and in my view the evidence suggests that the long-term unemployed exert relatively little pressure on the labor market, that many of them sadly give up searching for a job and eventually withdraw from the labor force. so i do think we've seen a slight pickup in wage growth for production of non-supervisory workers and i believe that will continue. >> there's also a lot of criticism about the low quality of jobs we've added since the economy has gotten under foot. 30% of the jobs have been part-time jobs or low-wage jobs. i'm wondering what you think would help that to turn the corner and get some real growth coming from full-time employers in high-wage jobs. >> most of the job growth has been full-time.

i think if we have more of a high pressure economy that'll help raise wages the way we saw in the late 1990s. i think some government action like a moderate increase in the minimum wage could have a beneficial effect, raising wages, especially for workers who have struggled in recent decades. but it shouldn't come as a surprise that the economy struggles to create middle-class jobs even before the recession and that those problems are still with us. >> companies like gap that have moved to go ahead and raise minimum wage within their own ranks, do you think that the seeds of change need to start with some of those corporates? >> i think that that's a very positive development. and i think it's terrific that president obama has been highlighting companies that are taking the high road. and i think they're doing it because it's in their interest. they're raising wages. they say that it produces productivity, morale, reduces turnover, and in the long run of course it provides more customers for businesses. >> alan, finally, there's been a

lot of noise around this gdp number. barclays is saying given some of this data now gdp would be tracking negative instead of .1%. what do you think comprises that number, be it real or be it cosmetic, and do you think that that actually sets us up for a rebound going forward? >> i think the first quarter gdp number was more or less a one-time blip. we saw weakness in exports, weakness in durable goods, and a lot of that i think was coming from the weather. we also saw weakness in consumption of food and clothing, which i think was a result of the end of extended unemployment insurance benefits. so we had millions of workers who lost the benefits that they were using to support themselves and that weakened the consumption. on the positive side we did see an increase in health care spending which i think was a result of the affordable care act expanding access to health insurance and health care for millions of americans. >> alan, for now we have to

leave it there but we appreciate your insights this morning as we look at that job number tomorrow in the overall macro data and the economy. alan krueger. >> thank you. >> take a look at shares of t-mobile this morning. nice gain. better than 8% after having over a million subscribers last quarter. t-mobile's outspoken ceo john legere's going to join us live after the break. he just finished his earnings call. he just tweeted his picture of he and his team watching "squawk on the street" in the background. of course when we noticed that, he tweeted at us. he's watching, "element to the detriment of paying attention to our earnings call." we'll get a chance to make some news after this break. plus, it is official. ford ceo alan mulally will step down january 1 replaced by he c.o.o. mark fields. mulally will talk to cnbc first about that move. in just a moment. for over 75 years, fannie mae and freddie mac

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all right. take a look at the markets right now. dow down by just about seven points. s&p and nasdaq both in the green. nasdaq by about 25 points as earnings season rolls on. roughly 1/5 of the s&p 500 is set to report today. so certainly a busy day on the earnings front. we do have gdp for the first quarter that is now tracking negative at some firms due to softer than expected residential

construction activity. that out this morning. that of course a lagging indicator. now of course, carl, the entire street is rushing to revise some of their numbers even though .1% looked soft. now maybe it would be even softer than expected. >> .1 gdp. s&p earnings up about 1 1/2%. so american companies have been doing something right. interesting action in some of the momentum names. netflix is working its way back to its 200-day at 344. this has historically been a bit of a battleground for netflix and some of the momentum names in the past few days. we'll see if it survives what we know can be a volatile afternoon session. >> i know we've been watching autos today in the wake of auto sales out this morning which saw a pretty positive gain considering everything we've seen going on in the economy. but the big story has been ford. that peaceful transition happening at the top. we saw that at the beginning of the show. long-time ceo alan mulally will step down on july 1st. he'll be replaced by ford c.o.o. mark fields. we want to send it back to phil lebeau in hartford, connecticut for yet another first on cnbc

interview, this time with alan mulally himself. phil, over to you. >> thank you, kayla. he's the man of the hour. let's bring him in. alan mulally, the outgoing ceo of the ford motor company, joining us from the companying headquarters in dearborn. alan, the main question a lot of people have today, and i'm getting it this on twitter, why now? why are you deciding this is the right time to finally leave ford? >> well, this is the right time, phil. and hello to you zmanand thanks covering this fantastic transition. we've been working the transition and the leadership plan for many years, as you know. and i pointed out this morning in our interview that bill and i decided eight years ago that in addition to a strategy and a management system that we wanted to have a very, very robust leadership development and succession plan, which ford has never had, and really very few companies have been able to accomplish. so we announced probably the biggest part of that plan was to announce that mark would be the chief operating officer about a year and a half ago.

clearly we've been watching the progress of mark and the entire team. they've been ahead of schedule. and now's just a great time to let this new leader and this team take ford flying. >> alan, did you help with the search for your successor? because we talked with bill earlier, and he said we talked -- alan and i talked and we thought mark is the right move here. and the reason i ask this is did you look outside the company? did you say to bill, hey, let's company some people outside the company in addition to mark? >> absolutely, phil. from day one we made that a very, very high priority. in addition to the strategy and the management system. and we continue to look at all the candidates outside in the united states and around the world. because clearly this is a very important company. it's a very important leadership assignment. at the same time we increased our emphasis on the leadership development inside ford and on the succession plan at the highest level, and clearly, especially with that

announcement of mark becoming the chief operating officer, he has been the front-runner, so to speak, or the preferred candidate. and to watch him step up and do this job, and with his belief not only with his record of performance around the world but his belief in the strategy and the management system and the people working together and the culture, we have the right guy at the right time to take ford forward. >> alan, set the record straight because we all know what happened with microsoft. sxim & i'm not going to ask you to tell us whether or not they offered you the job or you turned it down, but it does bring up the question that a lot of investors have, which is was alan mulally looking for another job over the last six months or is this just an isolated incident where they came to you and we all know how that works when you're approached? >> well, you're absolutely right, phil. i have never been looking for another job. my most important commitment was to continue to serve ford, and it's been a fantastic

experience. with respect to microsoft, clearly bill and steve are great friends. i grew up with them in seattle, as you know, at boeing. they asked my advice on a number of things, and i was pleased to provide that. it's just been just a great experience to serve ford. and again, to your point, even now i'm not talking about things i might do in the future because clearly the most important thing is this orderly transition at ford and i'm so pleased we're doing something that's very rare in business, to have an orderly transition not only on the strategy and management system but also on the leadership. >> alan, you're not talking about it but you even alluded during the town hall meeting today, the speculation will begin. you don't have something definite lined up right now but what do you see your next act being? do you have any desire to run another company or are you saying i'll do something in corporate america but i don't think i want to run a company? >> well, clearly, you know, phil, we've been doing this for a long time, and you've done a

great job covering my service at boeing and my service at ford. and i love to serve, and i've loved serving both of these great companies. but there's something nice about announcing my retirement too. and what i'm going to do, i've not speculated on today because i haven't decided. but clearly, i love serving. but the most important thing that i want to do is finish this orderly succession at ford because it means -- it's just so important for so many people in this great company around the world. >> alan, if you were ever approached by an administration in washington and they said we'd like you to come and serve in our administration, would you take that job? is there any interest in serving in a white house administration in some capacity? >> well, clearly -- phil, you're relentless. my absolute focus -- >> i got you tongue-tied, alan. >> this orderly transition. i'm absolutely focused on this orderly transition. but you are really good. you're on top of your game here,

phil. >> yeah. well, speaking of games, i can't wait for you and i to once again play a round of golf. you've got plenty of time coming july 1st, if we believe what you're saying right now, which is your focus is take some time off. alan mulally joining us from the ford headquarters on a day when he has announced he will be stepping down as ceo effective july 1st. and kayla and carl, you guys heard it right there. he's focused on ford. but make no mistake, everybody i've talked with who is close to alan has said he's got plans. we don't know what they are yet, but he's got plans. >> i'll tell you what, phil -- >> thank you. >> people are writing in mulally for president. no matter what he says. >> bill ford saying he needs no references. >> phil, alan, thanks so much. great stuff. we're getting some news on the s.e.c. and the nyse. eamon javers with some breaking news here. eamon? >> this just coming in here within the past couple of seconds. the s.e.c. is charging the nyse, nyse arka and nyse market for

repeated failures to operate in accordance with exchange rules. they're saying that the nyse and affiliated exchanges are being charged for failure to comply with the responsibilities of self-regulatory organizations. they're also saying here that the nyse exchanges have agreed to settle the s.e.c. charges and are paying a $4.5 million penalty. so big news there from the nyse and the s.e.c., carl. >> eamon javers, we'll get more on that in just a little bit. in the meantime shares of t-mobile rallying this morning, up about 8%. the company reported it added 2.4 million net customers in the first quarter. that is well above year ago levels. i think it's the first quarter ever of plus 20 million. the ceo, john legere, tweeting about his results earlier this morning saying "we've outpaced the competition again. 12 times over. i blank you not." joining us this morning for another first on cnbc interview, john legere, the ceo and president of t-mobile. nice tweet, john. you like to break the rules. and you keep doing it.

>> good morning, carl. and of course, i was on my conference call getting tweets from you the whole time. but yeah, we've had an exciting morning. some great announcements. the one-year anniversary of the creation of t.m.u.s. and a statement that the wireless industry is growing. but until you saw t-mobile's numbers and understood that we took virtually all of the growth in the industry, that was hard to see. so amazing numbers, as you said. 2.4 million net adds. 1.3 million branded post paid. and we've gone, carl, from 11% share of the gross adds coming to our company to 26%. more customers are coming. they're taking higher data packages. and they're staying longer. and that's great news for our shareholders and employees. >> a new low for churn at one five. there are those who wonder the effect on margins. it's clearly not an ebidta story as much as it is a sub story. is this coming at a certain

cost? >> you know, we've given multiyear guidance, especially when we created the company and we purchased metro pcs, and we have never wavered from the multiyear increase in profit and cash flow of this business. there's a short term. this is an acquisition game and in the short term ebidta was down slightly, but it's a trade-off that anybody would take for this kind of growth early in the year, early in the multiyear period. and as you said, churn is at an all-time low, and we're a no contract company. >> i know. >> so this is not at the sake of profitability. it's a quarterly profitability shift. but the medium and long-term profitability is stronger than ever and we've reiterated that. >> john, just this past quarter you led a fight to abolish overage fees for text and data. i know you don't get as much earnings from these fees as some of your competitors do, but you launched a petition on change.org where you're asking them to do the same thing.

is this a turn in your strategy to try to get some of your competitors to get into the fight with you as well? >> yeah, kayla. listen, what the uncarrier movement is about is solving consumer pain points and atte t attempting to fix what i said many times has been a slow arrogant industry that has not focused on consumers. so one by one, whether it's contract, no contracts, anytime upgrade, international data freedom, the things we've done now with paying the etfs and breaking up the need to stay stuck in contracts, as you said, we abolished overage. overage freedom. and that's just a statement that it's silly to punish customers for not predicting what they want to do right. and you're right. i moved to petition to change.org. i have 171,000 signatures. asking at&t, verizon, and sprint to join us. move to not punishing consumers because they made a mistake.

overages were over a billion dollars last year. 20 million customers why wr impacted. it's just wrong. >> but the question is if everybody starts doing what you're doing then what's your competitive advantage? >> see, my competitive advantage is that everything we're doing -- i've said many times, the uncarrier movement is like high school algebra. you can't sleep through chapters one and two, wake up in chapter three and then try to pass the test. abolishing overages is just one of a series of things that have shown consumers that they can have a totally different experience with t-mobile, and i believe the industry will move to where we are over time. my differentiation is we are the leader of the uncarrier revolution. amongst other things, kayla, what we are is we're the group with the fastest 4g lte network. so it's not a sacrifice of one or the other. our competitive advantage is we move fast, we listen to customers, and if you're saying the whole industry will move to where we are, i'll declare victory right at that point in

time. >> john, it's david faber. people don't question your growth but they question how sustainable "uss over the long term. there's a cost to acquiring so many subscribers quickly. more spectrum, more capital investment needed, towers, all the things that go into that. do you have the capacity to continue to grow at this rate? >> yeah, david, great question. couple things. what the united states is seeing right now is the flicker of what competition looks like. the big guys are scrambling. the beneficiary is consumers. but it's only a start. and in order to put this to the big guys in the duopoly and keep competition growing there are multiple ways forward and they do increase significant investment over time and a spectrum portfolio and/or consolidation to get the scale that's required to continue this movement. and there's multiple paths forward for us. we can handle either of them. we've been a big proponent of

consolidation as one path to create the scale that's needed. but as you say there are options. and we do have the capacity because of the growth and the continued profitability of the company to participate in that. >> although in the conference call you did say your momentum could benefit from a significant scaling of the fixed assets and the capital that's required to continue to move. something you kind of just said here. and that was the answer you gave to that question of consolidation, which of course we've talked about a lot here. i know moss and son and soft bank, they want to do it. the question is will the germans, your owners, play ball? what i hear you say is consolidation would help when you look at the challenges in the future. >> yeah. and i think, david, you've been very consistent on this topic. i watch you every morning and i wake up in the morning here in seattle and see you poking this bear. and i think of course deutsche telecom and the board of t-mobile are looking at all of the ways to reap long-term benefits for our shareholders.

and if a consolidation opportunity came that allowed the uncarrier movement to flow and accelerate and get the scale and capability, that's good for our company, it's good for our sharltds, it's good for our customers, and certainly our board would highly consider any option. >> john, final question for me at least. the broadcast spectrum auctions, very important clearly. the incentive auctions. over a year from now. but nonetheless, we're going to get the rules very soon. is t-mobile, based at least on these leaks it seems like it may be favorable to you. is t-mobile going to be a player in those very important auctions? >> yeah, i think one of the trends of today, david, is most news that you're hearing is very favorable to t-mobile. and i understand that. what i said on the call today is that we really appreciate the work that the fcc is doing to create a set of rules and alternatives that create competition, and we're watching and following the auctions and the rules very closely and we'll make decisions about the best path forward for us at the

appropriate time but we have no announcements yet to make today on our plans as it relates to auctions or any other option. >> john, our thanks to you. we're glad you watch. although people are writing in about that picture saying you look like pharrell with the hat. >> that's not me. that's braxton carter. and he's got the pharrell hat on. and if he says "happy" one more time i think i'm going to stab somebody. but we always watch cnbc 24 hours a day. big fans. and thank you so much for having me on. >> john, thanks for coming on. john legere from t-mobile joining us from out west. thanks. >> we want to head over to the cme group where rick santelli is standing by with the santelli exchange. hey, rick. >> well, your guest has good taste in tv channels. that's for sure. welcome to friday eve's edition and the employment report eve edition of the "santelli exchange." great. look at these charts. whether you look at a two-day chart of 10s and then open it up

to february, we're about o'ready to challenge that low yield close to 57. where i'm standing looks like we're about four basis points away. look at a two-day of 30s. yes, 3.42. haven't seen a closing yield like that since june. so why is it all happening? i'll give you several reasons. i think one of the reasonsize that the economy is improving but it's doing so in a fashion like this. and i think what many would like to see is more of a line like this and maybe better data that's sustainable without all the fits and starts. second reason, we had february revisions, lower to construction spending. the march data was a little light. both those months are part of the first quarter. so it looks like maybe there could be a gdp revision in about four weeks that might have a minus sign. we might have to wait and see. but there's another reason. low global rates are spreading. and i'm talking about spreading like you buy one side, you sell another. think about it. whether you have rates in italy

getting close to 10 -- 3% on their 10-year. you have low rates in spain. you have i bund yield that's under 1.50. then you look at the 10-year rate in the u.s. so what seems to happen is our 10-year on a relative value trade is being purchased and a lot of those other rates are being sold in spread activity. it's the relative value trade. all right. let's go to another area, one that everybody wants to talk about the weather. let's say the weather was a normal winter. do you go out and buy more in the spring and summer? of course you do. and there are seasonal adjustments. i definitely can see there was a weather effect but it certainly looks like a lot of the data is coming back but it's not coming back at like the springboard at the old pool we used to swim in 35 years ago. the last point i've been in a lot of fed discussions, had a great one yesterday after the meeting and one of the notions was is that the reason the fed is doing all this is because congress does nothing. well, i will give you one example where i don't buy into that. you remember the t.a.r.p. vote?

why did the t.a.r.p. vote pass after it didn't pass the first time? i'll give you a hint. 1,000 points lower in stocks. if the federal reserve wasn't hunkering down in the zone of the marketplace and the equity markets started throwing little hissy fits because things weren't getting done like tax reform or immigration reform, it would send signals and things would get done. back to you, carl. >> i'm just thinking about the day that it didn't pass. those were interesting times, rick. thanks so much. rick santelli in chicago. pfizer is once again in the news. david faber. >> yeah. bloomberg reporting something that at this point we can't confirm although we expect it would certainly be something you'd expect, namely, that pfizer is going to raise its bid for astrazeneca. if you recall, when it came public with this bid for the company early this it was simply sending a letter with the same offer that it had made sometime back when there were brief talks between the two companies earlier this year. now, of course, pfizer is under

pressure, by i think may 26th, to come with a formal offer under uk takeover laws and one would expect that will be a higher offer because if you recall, astrazeneca said no thank you when the original foray was made. the ceo in a video that was i believe released recently said we thought it undervalued, astrazeneca, the previous pfizer offer. we concerned about the structure including a large percentage of pfizer shares. there are issues about flowback, for example. and, third, they raised concerns about the challenges of executing on the proposed tax structure. we all know about the potential for inversion there, and it would become a uk company for tax purposes, lowering their rate and also perhaps even more importantly allowing them to use cash then. back in the u.s., without having to suffer the tax consequences of what, 30, 35% as they might be. so all of that adds up to a higher bid from pfizer coming and we expected it will, kayla,

what it will look like in the composition. it is not completely clear but others reporting it is going to be higher, perhaps 50 pounds, perhaps even more. >> in the uk, they call it put up or shut up. show that you have the money, show you actually have the financing to do a deal, not small, $106 billion is what it is currently reported at. so you'll need to show they have that. >> up from 98. they have probably what amounts to about $40 billion overseas and, again, that is one of the key reasons perhaps that many would argue pfizer is even willing to do this. $40 billion, not going to bring it home, they can use it, and then, of course, the benefits from the change in tax jurisdiction. they will claim synergies and there are some, but certainly that seems to be central to a certain extent. the financial considerations overall, use of cash overseas and the change in tax jurisdiction. >> health care sector keeping you busy these days. as is the -- >> meet you back on the beat, come on. >> maybe i'll join you. david, thanks. we'll leave it there for you. we have breaking news from steve

liesman, going to give us more on where we are on q-1 gdp. >> where we are is below the zero line according to the cnbc rapid update which comes from -- done by moodys.com. moodys analytics. tracking forecast, average of six economists now negative. they took off 0.2 because of the construction spending miss. rick alluded to this in his report. the range is down from 0.4 to positive .1. there are many revisions to come in the weeks ahead before the next official revision of gdp. there are some in the report that came out, but right now the tracking is negative. note the rebound in the forecast. it is not tracking yet because we have no data, but the forecast is for a nearly 3.5% growth in the second quarter with a range of 3% to 4.2%. that's what happens when you have a 0.1% growth, have a little negative, little miss right there and go negative. that's where we are right now on our q-1 gdp rapid update.

>> very snazzy. we appreciate it. down in d.c., some of the biggest names in government and finance are gathering today for the global women in finance symposium. interview is about to start between commerce secretary penny pritzker and sarah eisen. we want to send you there live to get in on that panel as it is kicking off. >> to the panel here at the treasury global women in finance, the 38th secretary of commerce, penny pritzker. great to see you. some of the headlines in the news lately, m&a, deal activity. that has to be a sign of corporate confidence. you're speaking to thousands of ceos. do you hear it from them? >> absolutely. i hear a lot of positive attitude towards the united states and what is going on here, which is really, really exciting. >> do you want to see that money being put to work in things like deals? i know we're lacking a little bit when it comes to capital investment. capital expenditures. >> i think you're seeing in some

sectors capital investment. in the in sectors, very significant capital investment. we want to see growth is what we want to see. growth in opportunity for our businesses, growth in opportunity for our people. and so i think the fact that there is a positive attitude, i think the fact that the dow is at a record high, exports, record highs, that the demand for our goods and services around the world is growing, it is really all good news. >> and we look ahead to the jobs report tomorrow. what is holding back the economy from maximum potential when it comes to unemployment and some of the lingering issues out there, long part time employment, long-term unemployed, the quality of jobs being created? >> i think first of all, while we made a lot of progress, we created 8.9 million jobs over the last 45 months, there is more work to do. and what do people want? i've spent time talking to business leaders, probably a thousand business leaders since

i've been in office over the last ten months. and what do they want to see? they want to see us invest in infrastructure. they want to see us pass immigration reform. they want to see us invest in our workforce, because there are jobs to be had, there is work to be done in this country, and the way that we can increase our, you know, employment is by addressing some of these things. you know immigration reform, it is said it will create $1.4 trillion in additional gdp. we need to do this. >> valerie jarrett said it would help with our producesing program. housing is slowing down and the data looks like we're losing some momentum we have built on housing. >> and that's one of the -- what do we need to do, increase demand for housing. another way to do it, immigration reform. also, you know, one of the questions i asked the secretary of treasury yesterday is do we

have -- is it just demand or is there also the fact that we need more finished lots available? >> finished lots? >> in other words, if you do a large land development, you know, many -- you need to finish a lot to sell it for a home. in other words, it needs all the sewer and water and the entitlements -- >> back to the infrastructure. >> exactly, exactly. >> when it comes to business investment, just back to the m&a, a lot we hear about from ceos on cnbc lately has been overseas cash. and some of the tax problems in the united states, getting our tax code more competitive. >> yes. >> where are we on that? how urgent do we need to do that, urgently? >> i think it is a big issue and one we have to focus on. it doesn't feel like there is momentum now to address that. it is one that is top of mind for the business leaders that i talked to. >> and -- >> the president has supported having, you know, corporate tax reform. >> i know a question you get a lot is you are the voice of

the -- >> all right. our sarah eisen talking to penny pritzker in washington, d.c. we had to bring it back to post nine. the news between the s.e.c. and the nyse, bob pisani has breaking news on that. >> the new york stock exchange has no comment on this particular report. but the bottom line here is the nyse is fining the new york stock exchange $4.5 million for a series of violations, some which go back more than a decade and put simply, they're alleging that the nyse didn't follow some of the rules that are required for sro, self-regulatory organization, or that they should have had rules but they didn't have them. some of them go back long way, for example, there is an allegation that the nyse had a block trading facility, which it did have for a period of time, but didn't function in accordance with the rules that were supposed to be set up by the nyse and approved by the s.e.c. here is an interesting allegation. co-location services to

customers on disparate contractual terms without an exchange rule in effect that permitted and governed. there is a co-location service, of course, that involves high speed trading here. i think what happened here, and i think we need to check this, but they used to have different data centers around the city. different data centers. in 2010, they consolidated the data centers in one place, in new jersey. they probably had a lot of different contracts for data services provided out there, different terms, because they had different data centers. i think that probably is a legacy of what went on there. i'll confirm that a little later. some other things are a little arcane. here is what i think is the most important thing overall. i didn't see any statement here from the s.e.c. about any fraud that was committed. i didn't see anything about any intentional misconduct. and it didn't say that investors were harmed. normally these were more serious allegations. those kinds things would come up and i didn't see that in this statement. so it looks like there has been a series of rule violations

going back more than a decade, $4.5 million, they thought enough of it to enunciate what they were. but the fact that there wasn't any fraud or intentional misconduct, i think is the important point here. >> after the debate we had in the past month, the words co-location and reg -- they pop up on the paper. >> i think these things involve things that happened a little while ago. and now they have the new facility, i think the contractual -- i think that's probably a moot point. but anybody -- any allegations against stock exchanges these days get our attention. we wanted to read the fine print here and if i find anything different than what i said, after digging a little deeper, i'll let you know. >> thnks f thanks for bringing to. dow has been close to the flat line most of the morning. the russell continues to be challenged and even as we see some of the momentum names struggle once again with their 200 day, scott wapner will have a lot to work with on the next hour of the "halftime". >> thanks so much. have a great rest of the day. welcome to "the halftime show." buy or sell in may?

with the dow at all time highs, we hear from a top ranked adviser in the barons 100 on what the new month will bring for your money. winning hand, a beat and raise for mgm, but why aren't investors hitting the jackpot today? we're going to ask ceo jim myrrhen first on cnbc. high frequency fight. a cnbc investigation on what some popular discount brokers are doing when it comes to the way you trade stocks. let's meet today's lineup. we begin with a big day for shares of