>> yes. is it apple? >> it is not apple. >> no more, you have to watch and see her new hair style. 10:30. thank you. >> we'll see you at 10:00. >> that does it for us today. make sure you join us tomorrow. right now it is time for "squawk on the street". ♪ >> good monday morning and welcome to "squawk on the street". starting a new week with futures in the green after that record close for the dow on friday. plenty to chew on today. $6 billion deal and ten year yields around 264. a lot of fed speak this week including yell lyin on thursday.

dow starting off from this second record close in 2014. both the dow within 1%. mergerish monday. pfizer presses it's case for a tra s stra seneca. ibm's ceo saying the company is facing a rocky time. geithner saying the country is stronger. some are taking issue with his recount of how we got there. stocks are poised to end with the second record close of the year. let's start the week by talking markets guys. strange that we get this record. and the russell close to that

ten percent. >> i don't think we should be talking about bubbles. i think we should be talking about the incredible shri shrin bubble. they lead the biotechs and they are all about the money going from high multiple difficult to value stocks to kind of classically valued companies that are 17 times their general. 13 times, not many 20 times. i think this is unnatural. not unlike what happened during the second week in march. four of the top five stocks were nasdaq stocks. but i'm saying don't fret. it is happening, it is happening very smoothly. except for if you are in those stocks. and that is a healthy thing in

your view. i think it is terrific. if you add up every software, let's not forget, you are dealing with a market. people want to talk bubble and i say go back to the peak. microsoft, $476 billion at the peak. this is down they report on wednesday, $118 billion. intell was $277 billion. those were the bubbles. by the way think about that for a second. those were major companies that this is 14 years ago. that we were all far more highly valued. those are not the names of what are long gone so many names that have passed us by at this point organ gone to the other side.

those were valued more highly than what we see now. it is supposed to be the first trillion company. but it is worth a tenth of that. i go back over and over and over and i look at the thee cohorts that are so dangerous right now. they are the software to service now. 67 has been the decline to 50. and then you have the biotech stocks. if you add all of them up they come to a couple of billion dollars. only five are positive for the year. 21 are down. and then you have the fire eyes. companies that do enabling security or the web. these companies are over valued. you have a company that is selling.

think blue coat and source fire. those stocks were cheaper even when they got taken out. you have a big, big decline but the rest of the market doing quite well. it hasn't stopped them from upgrading twitter. the guy who liked twitter this morning is a good analyst. he said buy it on the deal and then said flip the stock. >> downgraded in december. >> my problem is when are they going to monetize. sun trust is someone worth trusting. he said this stock can make a come back. don't rule it out. it is hard to value? >> i can't get into this revenue multiple business. i can only get into the earnings business. but yahoo! traded at triple

digit multiples to its revenue. >> by the way, some of it ended up being justified for the winners that we know. amazon, ebay and yahoo!. if you went through that market cap comparison. their cap was higher now than it was then. failed. disappeared. i think that many of the companies that are going to become public will do the same thing and you look at some of these ecommercial projects, the hara's project. you are dealing with projects that are supposed to be able to help companies place adds. you know what? that was the science and buy it of the previous two.

>> of course i remember. and then there was the company that incubated them. cmgi. these were companies that were not $10 billion companies. >> and we want to move on here, but to be fair ge sported it. so okay there were four or five stocks that represented 18% of the s&p. and those were the four that i mentioned that came in at 250. you are so right. well, it is higher. when i'm looking at that shining moment that killed people. announcing the board has rejected that. backed by investor bill ac man saying it undervalues the maker of botox.

hillshire brands has agreed to purchase company and ceo of pfizer will appear before brit ain's parliament. whe when you look at this combination it meets the needs of efficiency and of strengthening our balance sheet and it allows the shareholders to get a benefit from the cash that we would pay them and it allows them to participate in a strong combined company with great cash flows and great portfolio and allows capitol by my company. >> that was not an interview it was propaganda from the corporation. but certainly taking away the reasons why they believe this is

the positive deal. they have made no secret why they will benefit from it. time is of the essence from pfizer. it will extend what is going on here. we will keep an eye on the hearings in parliament. even if there was a force they would not seem to be that dramatic but the idea that washington will get around to the kind of tax reform that will be needed to curb or stop it will be dramatic. many expect that they will race yet again. you want to get something done. by wait. this comes up a lot. given the activity, and i fully

expect to ramp up from here chinese authorities it is going to become more and more important here. so keep that one in mind also in terms of how they are going to navigate this. pfizer wants to move with all speeds. that is why you have to watch today. let's contrast that with pinnacle foods. it march of 2013, formerly run morris america. 11% that first day. he does a series of acquisitions and pays down debt. and then completes the whole merger. it is going to be up today. this is what you want. sell hillshire brands. but this is what i expect from an ipo market.

everybody wins. this is mrs. paul these are tired brands. it turns bird's eye into a more organic and then boom bob is everybody we want out of it. well, you see pinnacle truth up there. that has been a theme we talked about many times. so often the deals are discussed. that is adding confidence to take the risk to do the transaction. but it was worth about $36 a share. half a share reached pinnacle share. it is not $6.6 billion. it is about $4 do 36 times. $4 billion something like that.

he rang the bell and i said what are you thinking here. he said i'm a banker but also a food guy. i'm going to do what is right for shareholders. this is what is good about it. it is a 2014 deal. which are all early sage tage biotechs. >> deals will you are talking about p ipo's. i'm talking about the two classes of ecwiity. they bring out value and the garbage this year. we'll talk more about that in the favor report coming up. tax in versions you and i right now. i can't begin to tell you having conversations there are so many corporations thinking about this. >> yeah, no, we have a lot to

talk about about. what is interesting is the conversation that i had with bankers, i love it. as an american i'm not that happy about it. we'll see. coming up, former secretary time geithner did tell cnbc about the financial crisis. also asaid a lot of buzz about apple and it's deal to acquire beats. >> here is a look at futures. live when we come back.

people have a loss of faith to do anything about the issues that they face. even with those challenges we are a stronger country. and we are healing the damage left over from the crisis. in a relative sense, i think we are in a stronger position today than we were before the crisis. that the president wore this

frus ration too openly and honestly. >> it was kind of in many ways a tragic story. i did everything that he could do but was misunderstood the right way. over and over again he said he does talk about it is not about trying to pun p iss punish peop. he does spend a huge amount of time talking about the soul searching of lehman versus aig. i keep coming back. and will ask him yesterday. who is going to arrest the fed.

he talks about how no one knows it. i felt bad for carole his wife. he was hold up in the federal reserve. and yet frankly you like him very much. >> certainly a great success. right. >> how you measure these things. return on capitol is not too bad. we have more money back and fannie and fredde ede eded fred contributing to the deficit. we should have let our way work its way through. if you let it fail the ability of all of those. people to get it together, get

the debt holders to suffer the pain and we will be better for it over and over again. he talks about sheila bear who i think comes off as a villain. the idea was let's get the deal done and stop worrying about punishment. he wished that the authorities were there. and it is within his jurisdiction to do something about mortgage and fraud and those who are sweeping up the mortgage. they chose not to. there was a moment where the world is coming to an end and he says will my executive compensation be affected? >> he said you got to be kidding

me. >> the times reviews it today and their argument is maybe he doesn't spend enough time talking about the structural challenges at the time. >> he takes a shot at the time. he is saying it was time for goldman. he really shoots that down. that was one of the few things where he wanted to correct history. >> with jim. when we come back. cramer's mad dash as we koupt down to the opening bell. don't go away. greenline do for you? just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today.

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all right time for mad dash here on a monday. we have 7 minutes. >> i'm speaking so fast like you. perfect the opening bell. we have a lot to talk about. you are a well dressed man. okay ralph lauren this morning. a lot of retailers reporting this week. ralph lauren, the stock was open. the soul of the market says high quality brand says let's pick p it up. here is my issue with ralph

lauren. if it sells at a below average multiple of the group i think spring is coming in well for the weekend. i like ralph lauren. why do you think spring is coming in well for retail. you have a cost that is very strong. but we had gap reported a good number. they made it to the number that was better than expected. you got good numbers and i wonder if the retail isn't in good shape. we have good personal income. >> hearing the way people buy things and the weather had an impact. but this is much more important?

the competition has got ten great. it whohas come in and kroger an cost co has come in. those say that the consumer may be more tepid. but i say the competition has been too great. i'm coming in more positive on retail than i have been. >> all right. the numbers we have the opening bell two minutes away. no subs. for what reality teaches you firsthand. in the face of danger, and under the most demanding circumstances. experience builds character. experience builds confidence.

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[ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. you are watching cnbc's "squawk on the street". we'll get the opening bell in a minute and a half. later in the week people in tune

with what people are doing in this country. >> i think that walmart could be, it feels like mcdonald's to me. when the stock was in the mid 90s. they posted disappointing earnings. they have huge cash flow. you know the stock has rested here for quite some time and i did know a well in the past. we watch it chosely as a percentage of overall public retail sales, it is the only thing that matters still. gretchen morganson saying the things that they bleed out in in order to come to a formula that is helpful. for their compensation. >> interesting right?

>> the a and p is the the top of your screen. it is mexico day. mexican government officials and companies encouraging investment. i've done my best investing in mexico. i'm a sci-fier but i think it is india today. indian stocks. of a dpogovernment that is view as being that way. >> interview with virginia rametti talking about ibm going through what she calls a rocky time. but the cloud computing paying off. >> it has been a difficult stock to own. you have revenues decline. maintaining that earnings

forecast. the analysts don't believe that that forecast can be maintained. warren buffet did say i'm standing by her. they did say it was front end loaded. they are facing a number of challenges. many are talking about three big trends. cloud clouds data. 400 or 50 or 4,000 employees. one of the problems i have with ibm is that cloud has inherit e

it. they continue to bring the price down. it is fascinating to watch. we know that the nasdaq has one of its worst weeks in a month or so. if people have some renewed confidence in the social names do they hide on facebook first? >> i think it will have a challenge from alibaba.

i know people aren't going to like my analysis. but facebook can earn $250. it is not a situation like firewire or spunk. but people do not believe that facebook is going to have actual earnings. do you know that dooggoogle sel below a slight premium in 2016? >> people think they are like all the other fly by night earnings. they don't trade well. facebook is still up more than the market this year. people lump these together and the bubble talk. the bubble has to do for company

s with sales model. if you go back to 2000, you have companies that have revenues or worse. the only interview that i heard was where i talked about valuing companies on tweets. that was totally reminiscent of web van. it is still too early to buy that. let me know when that changes. i knew there was a third. thank you. >> no one cares. i happen to like the company. by the way, trip advisor put itself in there then. >> we are up 78. being lead by pfizer which of course the record is going to reflect the collective user. >> he was interviewed by

himself. i like those that are done with reporters. the door is open of course anytime he wants to come on. they are going to be facing questions from uk legislateters so to speak. delaware's governor was on this morning. as tra seneca has a huge business in london. you keep it open for five years and shut it. a lot of push for the sales. in these places a lot of people regard as sales forces. you have someone who has a magic bullet for cancer.

when you hear that there is a lot of m and a going. it is advantageous for them to buy soma. the conversations that i have been having lately when i have been following up whether they have been real or not tends to go i have not been busier ever. we are going to see more mergers. you get more of an even balance.

is it a bubble? i don't know. companies can take advantage of this tax loop hole. the democrats want a larger keep. it is not going to happen. if you are relying for tax reform when is that going to happen? >> you look at some of the different kchallenges and is it going to take a crisis for them to react? >> these deals will get done and there is more time. i have a feeling there will be deals for the next few weeks.

work, out there for the wrong reason ares. that is right. they say it is sticky in the face of competition and their ability to monetize continues. when you look at this disruption in the yelps and the pandora 's and the links. i can make a face for this. was he saying hey listen? are they going to be bought by yahoo!? apple. $3.8 billion company. but remember, it was bought by

the company. once they do sell a significant stake in that company. they own 22.6% of that company. and what are they going to do with it? even if it is taxed, there may still be a way to do it more efficiently. they should buy it. they are a growing platform worldwide. but they could show a profit if they wanted to. i'm a tba for power. last year was a very bad crop.

instead a got good trip adviser reviews. >> very nice. all your businesses. far and wide. it is a hoot to be able to see what people say about your place and it can be devastating. believe me. i can go into the depths of despair. the nasdaq they have been holding up well. the important thing is the nasdaq is holding up well. you mentioned alibaba. they are going to try to push

through a few names. through may international the largest retail of beauty products. they are going to price thursday night for trading friday. you have new and used car with santa monica. th that will be thursday night. we'll keep an eye on that. the $1.8 billion offering for them. the nasdaq has been under perform

performs he noted that there were 15 times in the past. three months later when that had happened, the s&p was up 4.4%. the russell out performed three months later and it did six months later in these periods where the s&p has not. this is not an indication but it is a good sign. let's move on and talk about oversees and what is happening there. chinese stocks. look at shanghai up 2%.

we had the final day of voting yesterday. and those are opinion polls. take a look here in the united states. roughly $36.02 we see pinnacle up 15%. kellogg's up and right now the dow is at the high for the day. the nasdaq out performing. guys back to you. interesting to note. shares are down. no, it has not been the pattern in the overall price and 0.5 shares up.

allergan that proposal coming a few weeks back and being interesting and of course talking about in versions. >> it raises the awareness of the managers and the ability. we don't expect to see it happen too of ten with them teaming up.

>> and it happens a lot. suddenly they have found the ability to show a higher growth rate than was previously the case. allergan tries to extend it. let's call it the summer. they have the summer to try to a argue that they are undervalue for a variety of reasons. they are seeing it at higher

quarterly than it is currently there it is. he came to 20 for fiscal 2014 and fiscal 2015 it goes up. it is a franchise. they do and they talk about how they transform that product and they talk to the deal about r and d. it is the strategy to cut r and d to the both. they say the dollars are not productively used. in this case. allergan says we have done a great job in terms of actually coming up with productive uses for new products and existing products. they have come up with far more drugs.

good luck trying to build that franchise with the extension of botox to my grains or in contnence. >> they will question their strategy because so much of that is in that currency. that process will play out. it is hard to imagine that they have gotten that far yet. it is a jewel though. it is a longer game and they need to figure something out. many argue beyond raising questions of their own eps

growth. >> that is what we have. and we will see. they said they won't pursue an in version. unless it makes actual business sense. >> wow. >> look at that. the patriots liking tim geithner's book. >> they are going to get mad at me for saying that but there is a great moment where the pe guys says we are patriots. >> better to be a new york giant he when it comes to the super bowl playing against the patriots. >> rick? independent rates creeping up just a bit.

how important is $264. you can see two issues. let's look at the intraday. i know they are saying that it is fixed. that is not for me to determine. what i'm interested in is the effects ip the marketplace. the friday to monday but the yields are up a bit and the currency after getting hit quite hard we see that is very orderly. let's look at the russian stock market it is up a bit. it is getting difficult to see

what i mean. to see what forces are at work. about a one week high on the short end and if you want to look at what is going on the dollar yen is positive. all the other major currencies are down a bit. pay attention to the inflation indexes. and make from the government perspective. back to you. >> we are going to get clues on that later on. when we come back. quentin hardy mequentin hardhar >> look here at the markets. we are at triple digits. be right back.

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believe is related to the fact that the gulf of mexico, a lot of the exploration keeps being put off. i don't want anyone to be dissuaded from owning the stocks. most of the growth is coming. remember are when you think that is pioneer pxd and that is eog. i have ran gold. i believe there is going to be turmoil in the upcoming elections. the move is too strong and in another week it will be back in focus and this is the best run gold company in the world. see you tonight. >> when we come back we will be right back. with their electrical vehicles. but you can't take a trip from lisbon to stockholm if you can't plan and re-charge along the way.

the european commission is using cloud to make this possible. creating a single charging and billing network across 28 countries. so drivers can travel as far as they want to go and when they want to go. you'd do that for me? really? yeah, i'd like that. who are you talking to? uh, it's jake from state farm. sounds like a really good deal. jake from state farm at three in the morning.

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high. we'll help you navigate it. >> tim geithner is speaking out and an exclusive interview with jennifer anniston. that coming up in the next hour. >> you are looking at a shot of the washington monument which is opening up to the public. it has been covered in scaffolding. david rubenstein paid for half of the cost of the repairs. he was talking about why he chose to support this cause. >> i live in washington and i think the monument is a symbol of our country. i thought it was a good thing to

support. >> he went back to the maryland quarry where the original stones were to makerepairs. sharply higher, the dow up at triple digits. let's talk about this market. gary castillini, you are a noted optimi optimist. very little in the way of economic data. i think more than anything. i would say it is the persistence of this market that is generating some optimism. you get a sense that this thing wants to go higher. we have had bad first quarter growth. we have had bad economics and ee earnings reports. we have had to deal with

tapering. and i think you don't want to be out. it seems like the momentum is up shifting. you think it is going to go 1900 real soon. look at the tech stocks. it looks like the small caps are continuing their bounce today. but so far that has been the area in the cross hairs. you want to stay away from them? you want to in be in the dow and the s&p? >> you make a great point. in the beginning of the year where those were the leaders. we look at those high fliers and the risk they would go and to see those come back 10, 15, 35, percent and the dow creeps to a new high. the investors in core stocks good solid companies.

these are the names that people are going to be attracted to and they are not going to be fooled by the notion that there is no risk in a social media name. it is not just that. let me pick up the point with you. they are talking about people getting a false sense of security here. you have had a stealth correction. even now it is down 8%. the nasdaq is down 6% p. their concern is that will deepen and broaden and there will be a downside of 12 to 15%. would you accept that? >> i don't think so. if you look at leadership. i think there is no leadership and yet all of the sectors and all the different aspects and characters of the market have been corrected.

small cap, large cap, they have gone through a corrective phase. i think we are refreshing this bull market in the last few months. we have -- i think we are setting up for another run. >> i was talking to you on the excess valuation point. twitter still trades at 300 times earnings projection? >> that is the type of name take a look at for a portion of your portfolio where you want to take that type of speculation. these are 15, 16 multiple stocks. very solid under lying growth. there is nothing about this valuation. that is why we agree. the overall market if you find the right thnames, i think you

will do very, very well here for the next six months and whether or not twitter is about p to bounce is not the important aspect of this market. where we have gone on the bond market with this strong rally to 2.64. how does a bull on the equity market go the other way? >> i don't see a big mess saage from the bond market. i think it has been trading at 2 or 3% for six months. i also wouldn't give the credit to bond. in recent years, the stock market has been a better indicator of what is coming than the bond market. it constantly has been suggesting the end of the world is coming and it has been suggesting it is not. who has been right? >> i suggest that if stocks

rally to new highs i think we will see bond yields going back up and i think they will be going 3.5% before the year is out. i think that is the mess same. >> i know that we are owl of time, but to repeat the point you cannot go tom 2.3% to 100 basis points on the yield if you are correct. surely. >> we did it last year. it wept from 1.5 to 3%. >> well i guess it would have to be determineded on the speed and what comes from donny yell lynn. thank you for joining us. good to see you monday morning. >> exit polls from the indian election out this morning and we wait to see russia's next move after the referendum.

chief correspondent is back at hq with the latest on two huge stories. good to see you. the candidate seen as the most favored by international investors appear to seat in the general election. there were more than 800 million registered voters in the country. they have heavy turnout. there are high expectations about the results. to eastern ukraine two provinces a reverenferendum was held. it lacked controls and they saw

a woman vote more than once. they voted to have more autonomy away from kieve. we await to see what russian leader p umtutin said. he was busy over the week end. he was playing hockey over the weekend. his team won. he scored six goals had five assists. russia is not going to invade and it has had plenty of opportunities to do so. as a result, people are starting to buy russian risk again. so oil and bass exporters because deescalation is not certain. a lot of folks here are looking for that end of may date for the election as well. >> all right. thank you for the update both on

india and the ukraine. hear what it was like inside the white house during the financial crisis. tim geithner is speaking out. later jennifer anniston sits down for an interview. we will be right back. it become. if frustration and paperwork decrease... if grandparents get to live at home instead of in a home... the gap begins to close. so let's simplify things. let's close the gap between people and care. [ dog barks ] ♪ [ male announcer ] imagine the cars we drive... being able to see so clearly... to respond so intelligently and so quickly, they can help protect us from a world of unseen danger.

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programming note. michael small will be live at 3:00 p.m. eastern right here on cnbc. back over to you. >> thank you john. before we get to that. we should tell you about a controversy related to his book. he spoke with glen hubbard and they told him that republicans were prepared to raise taxes saying that geithner is a lier coming back this morning saying that he stands by the story.

>> you are in a plane. you are in the cockpit and the engine is burning and you have a bunch of terrorists onboard where people who built the plane messed it up. theyn't wassed you to come out of the cabin and beat up the bad guys. when you land the plane safely, the only way to prevent the damage is to protect the people most vulnerable.

>> this is what bill clinton told him. he said people wanted blood. you could take out your favorite investment bank er in the alley and the next day people would want more. you said that about lloyd. that was his example. he was making a more general point. the amount of damage caused by the crisis, huge amount we are living with the scars of the crisis today. that is mount of anger is something you can honor in trying to fix the problem. there is a number of revelations in the book.

his relationship with ball street with larry summers a big about lehman brothers and whether he was on the same page with ben bernanke and we'll leave it there. back to you. >> the federal reserve might lend the british enough money. >> it may have been. they never got the chance to take it. that is always the best. andrew thank you. >> we have one deal which i want to start with and we have a couple of news stories related to acquisition opportunities. hillshire is buying pinnacle foods. the two companies combined when you add the $6.6 billion.

the conference call went particularly well. hillshire brand was thought of as a takeover candidate. that is not happening. you have that deal and you have what was not a great conference call. i talked to a couple of people who were. the multiple pay looks like 9.6 times when you take into account synnergy. when you take them out they are paying 13 times. for that reason it appears that people are choosing to sell

hillshire. there seemed to be selling going on for a stock price. well they are saying the next three years or so. it is 0.5 shares hill share and $18 a share pinnacle. let's move onto a deal that we are watching. that is valiant and the unsolicited proposal. allergan coming out and saying we are not interested at the price that you are offering. in fact rejecting it out right for different reasons. conference call offering and explaining all the reasons why allergan believes it is underval undervalueed. they did not go into detail

attacking stock price. i would expect would be weapon number one. there are many who questioned whether it is sustainable. they use that word in the letter and on the conference call. raising questions but nothing attacking the currency. you are going to have the shareholders with the deal happening with 40% of the combined companies stock. you would think they would question the strategy and what it is that has made valiant so successful. and a very, very advantageous tax rate that they have. being a canadian company. we'll see what happens. it is going to take some time. you can ask for written consent here, this is going to play out for the summer before we seem to get a resolution and allergan

may have to do a few things beyond raising guidance to fend off the attempt. >> it will h be a little bit of soap opera. you have him in there and he is going to keep wielding that back. >> you said has to do with the price. it seemed like they like that p frozen meats. up next, why are more than a dozen states battling it out. we'll have more on that story and why mountain dew is staying on top. we are back after a quick break.

when folks think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.

the competition is heating up so much so that more than a dozen states are battling it out to be the destination for the fiery source. good morning. >> we are still crunching the

numbers. and here they are crunching chile peps. this is cirraca sauce. they make it with chilly peppers. you know that sets off aroma. the city council here has called this a nuisance. and now the battle is on. 15 states and cities have said come with us we'll do better. a stit rate representative has this his cause. they want this plan to move to texas. they have a lot of competition.

it is the most expensive place to do business. third worst for business friendliness. but it is tops for innovation and capitol. >> texas is never ranked below number two in our study. they are going to make that pitch to the food folks today. they have a lot of competition. 2014 coming next month on cnbc. >> fascinating battle. mountain dew it interturns out d been rare in north america and

it is actually growing. why has it held up so much better given the fact that consumers are so health conscious. loyal dew drinkers. they are mostly male. they are active in the lifestyle. and pepsi has figured out that it is the same demographic anywhere in the world. there is the market share. you can see it actually has kicked higher. where you see a downward arrow for colas. it is the number one 20 ounce bottle sold in convenience stores.

so the question is how can they leverage this to help drive growth? >> they can invest and introduce products. baja blast. it was a favorite are only available in taco bell. but the take away here, about that the carbonated soft drink would look even worse. we are talking about less than half of the portfolio here. but it has been a weak spot. >> coke, diet coke, pepsi and then mountain dew.

it beats pepsi dr. pep per. >> thank you for including me in that i appreciate that. >> sounds good to me. we'll see what happens when they remove the vegetable oil from it. and the one and only art cash will join us live on whether you should be worried that perhaps not all stocks are winning in recent days.

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the dow currently up 22 points. good morning to you. you describe the record close we had on friday unenthusiastic. are you more persuaded by what is happens today? >> somewhat so. part of what happened on friday was a nice reverse al of the victims. the small caps some of the stocks they are leading on the upside today. the nasdaq is up 60 points. it has led the s&p. trying to break out and the nasdaq coming up again.

coming up against resistancep up around 41.50. >> do you see this as a bounce? >> well, friday did look like a reversal. the proof is in the pudding. it has to continue further. that is why i'm taking note of it. the next 20 points is probably going to be tough. but if they can break out above the $18.95 area, then it might have staying power. the sl money aideline money andt could turn into small pyrotechnics if they do it right. the message for the people at home, for the anxiety that we have been through. the dow is at a record high. the market still has a chance.

people still believe we'll let them believe and prove the case. the fact that everybody is up right now. the nasdaq is up 1.5%. what does that tell you? >> that they are not moving together? >> it was worrisome the other way. the fact that they are leading on the upside, tells me that this is more of an over sold bounce for now and they have to proof themselves by breaking out. >> did you see what has happened over the last few weeks or a self correction which could get bigger and while the headed lines a false sense of security. i think the rotational correction could get bigger. for now it seems rather narrow

now. the winners were earlier in the year. people started to take it down. >> that broad base, of the stock. >> i think there were three things that happened. it is not usually one thing. i think we saw a couple of things come up. the announcement that alibaba is getting close. it is not infinite either. that is going to draw down some stuff. you had facebook making take overs using their stock as capitol. if their stock is better than dollar bills or cheaper, then make we are over valued. finally, we had that dramatic week and a half and everything went to a big premium and we got crowded and the strength got

zapped. that is what was you'worrisome has to proof itself. >> a lot of people are focuseded on that. >> people who have watched their years go away. so again, what is the key point that people if it can break above 41.50. that will tell me the reversal was successful. everything was behind in trying to play catch up in grabbing the momentum. have a break week off. >> speaking of hedge funds, institutional investors releasing their ranking of the largest firm.

kate kelly joins us now. they are followed by jn mar began asset management and $69 billion. interestingly performance wasn't necessarily the driver of growth last year. the all weather fund was down. other changes to the top ten list were that blue crest switched spots and aqr and viking global made that upper

strattum for the first time. a 50% spike which representsed the offering as a company. and loan pine and viking benefited for the loan only strategies which did great in the year where the s&p did 30%. bold, viking and loan pine played a bold mark. amid the volatility and growth stocks. we sti we still have three quarters to go. the first few days of april and march have grown. >> it will be interesting to watch that. i had no -- loan pine and viking are so large. when you get to that level of assets, you filed this with

paulson and you have to stray, you have to deploy the capitol from your core capitol. not in terms of people but in terms of assets. it is a great point. but i think when you are successful you have to come up with an expert idea. they had their housing short. and then the next thing they did was this goal long position. it works and then it didn't to the point where they are trying to deemphasize that. hedge funds are always talking about remaining nimble. they make big place big purchase orders or short stocks. but at the same time having that huge aum to work with is nothing

to sniff out either. >> right, but as you point out it seems to be something that the big institutions actually like. and perhaps predictability although less performance. you remember bridge water had trouble with the all weather found. it is a strategy that they pioneered and is designed to do well in almost any weather. >> for the moment, kate thank you for that. we issued 100 points on the dow. >> all right well check out what is happening with whirlpool. it has reafirped 2014 home building and building products conference. that stock is trading up 2.5% so another descent sign if you are looking for the tea leaves if you are looking at where they

are hoping to lead the building higher. >> still ahead, the inventor of these headphones joins us live on the possible acquisition. but first jennifer anniston gives us an exclusive look at her hair care line. all stations come over to mission a for a final go.

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rick are santelli with the exchange. >> you are not the only one watching the dollar. here in the u.s. welcome peter book far for our wild monday first guest. peter you did extensive writing today and over the week ent with some of the good things in china. give us a quick taste. well, i think everyone is

looking to china in our they are going to enact their he reforms. we know china is going down. but everyone is looking for a growth rate that they can maintain. they announced more today in terms of capitol markets. do you think that the demand for copper that everyone is trying to pull through, but they used many of these commodities as collateral in many of the loans and corporate finance structures over the years is that still going to be an issue. are we getting a true read on whether copper is saying about the economy? >> i think one thing that people are missing, let's look at

india. if there is any country in this world that needs massive infrastructure spending it is india. if he wins the election which i think he will. that is where you see the biggest demand for copper, not necessarily china. >> you eluded to the fact that the gdp is smaller but the country is bigger. do you think the u.s. economy is sustainable at above 3% or be low over the next 20 quarters. >> it is going to be low 3%. it is still going to be the 2.5% level. the second half of the year is it a new acceleration of growth or are we going to the trend of

2.5% gdp growth? >> i'm with you. there is a group of this and think that, the new normal that is put forth is the true state of affairs. if china is in the same mode it could go on for a long time. it doesn't make what the treasury market is saying untrue. what do you think about that? >> i agree. the other elephant in the room that is going to determine the growth pattern here is the federal reserve. the equity market thinks that we can get through the bond market which has more doubts. the bond market is paying attention. we have had previous episodes of

planning. and it is thinking that we can skate by this. interest rating will have to go up. so, if the fed were out of the way i would say 2.5% better is the possibility. >> we are out of time. i agree with you. when i look at venezuela's stock is going up. thanks for taking the time to be here. >> but it crashed. >> exactly. thank you. >> simon back to you. >> up next on the program. sara has an interview with jennifer anniston. we're back in a moment. trader, the information that's important to you is all in one place, so finding more insight is easier.

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with valiant pharmaceuticals for hair care. i asked her what she sees in the opening for the hair care market. >> we overdo everything for hair care. you go into any woman's bathroom, the drawers are like chaos, mousses and serums from this company and that. i think it's all about trying to simplify and get the easy steps so you're not being confused and spending way too much time in the bathroom getting ready which i think what is so great about living proof is they really do have a simple system. >> which she says she uses. it is also the 10 year anniversary of "the friends" finale. as she's branching into the hair care business, i asked her about the rachel, how could you forget, the hairstyle was the inspiration behind her getting into this company as an investor. here's what she said. >> no, i don't.

if i'm ever flipping through the channels and i see it, i always stop and reminisce and be very happ happy. >> i guess that was the answer to the question whether she watched the finale for the 10 year anniversary and she said she didn't realize it was the anniversary until a friend reminded her. we asked her about the entrepreneurship. she feathgets a lot of offers, celebrity spokesperson but she chose living proof. i asked her what other companies she admires now that she is in business. here's her answer. >> tesla pretty -- >> why? >> what an amazing design. the mechanics behind that are incredible. isn't that going to be able to power our homes eventually? i have driven one. i don't have one yet.

>> there you go, the woman admires elon musk. >> not the only one who is interested in buying a tesla. a good deal of demand. >> interest. >> what about the living proof system? are you persuaded? >> i keep it very simple already. whatever shampoo is in the bathroom is what i use. i don't even know what it is. >> we could get products and do a test off your hair. i use shampoo and don't even use conditioner. >> you don't use conditioner? think how much better it could look. seriously, there are huge players iron this -- >> better? >> better. it's wonderful but even better if you put conditioner in it. >> are you tempted to cut yours now that -- >> i'd like to see a rachel on you. >> rachel is in the '90s. >> bring it back. things come in cycle. she has brown hair now. interesting she is getting into

the consumer products. they won't give us the size of the business. always interesting when celebrities branch out as entreprene entrepreneurs and interesting to see what they do with it. >> she's had a very strong career. >> she said she doesn't watch it on netflix. coming up on the program, beats inventor noel lee gives us his take on the possible acquisition by apple.

when folks think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.

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welcome back to "squawk on the street". check out shares of vieri phone systems. apple will be switching to a 5s shell and using a payment system easy point of sale system used at apple stores. if you go in apple stores you will be using vieri phone systems. it is very symbolic and that stock is up 7%. >> thank you very much. let's check where we are in the markets. up 85 points, sarah.

more jennifer aniston on the show. seems to be buzz about that. >> yes. we'll get you more on her. if you break down the high of the s&p 500 and look at the groups outperforming you see telecon and consumer staples not your typical cyclical leaders in a better economy and speaks to dividend plays given low rates environment we've seen in treasuries and uncertain economic environment. does look like the nasdaq is outperforming up 1.4%, dow triple digits up 85, earlier up 100 points. >> thank you. we'll see you later in the show. if you're just tuning in, good morning, this is what you've missed so far. welcome to "squawk on the street." here's what happy so far. >> i think we should be talking about the incredible shrinking

bubble. the amazing air going out of the balloon in russell, biotechs and software into service stocks. >> the market is going to new highs. i think you don't want to be out. it seems like the economic momentum is upshifting and you want to be in this thing. probably going to go to 1900 pretty soon. m >> the s&p can break out above the 1895 area. then it might have real staying power. sideline money and shorts that are nervous, this could turn into small pyrotechnics if they do it right. welcome to "squawk on the street." 11:00 a.m. on the east coast, 8:00 a.m. on the east. the inventor of beats head phones will be joining us live and will he be able to cash in?

>> the dow and s&p both near record levels but the nasdaq the best of the bunch up 1.5%. does this mean the correction on the so-called momentum stocks is over? >> speaking of momentum, eagerly awaiting alibaba's announcement later this year. it will also bring plenty of risk for ceo marissa mayer. we'll tell you why. >> does jennifer aniston binge watch her own shows on netflix, one of the questions we're asking the star actress. more of our exclusive interview coming up this hour. as always, discussing the biggest tech stories, our cnbc contributor along with jon fortt. thank you for joining us this monday morning. shares getting rallied after upgrading. see that stock up $1.10, nearly 4% to the upside.

nasdaq also seeing big gains today, up 1.5% as well. the collapse of momentum stocks from the beginning of march, twitter is in that group. if you've been holding on the entire time should you expect things to bounce back. david is talking about the future of the momentum last week. >> there's a strategy. momentum reverses and tends not to be a factor that leads the market going forward. the idea of price momentum and strong enterprise to sales historically speaking has not been a successful strategy over a one year, five year basis. we're looking more for valuation as a characteristic to look at. >> just this morning, kostin has a note out saying you should expect further slides in momentum gains.

do you have a sense this sell-off will hit those who have been able to hold on or what do you think? >> you look at net sweep, up 5%. paolo alto networks, up 5.1%. momentums having a decent day. when you look at what companies like apple is doing if this beats deal goes through. they're looking for a little bit of growth in an adjacent area. hard to tell. we had comments from the ceo, jenny, saying we figured out what our road map is going to be, how we will grow. there seems to be a decent amount of faith in those companies despite headwinds have been able to deliver something consistent. >> you look at the upgrade to twitter, he puts a 45 dollar target on the ebitda to ebitda growth of .5 basically the

opposite of what kostin is saying. peck says it is over and those are the two contradictory opinions on this. >> there is a comment from an investor saying we've gone from two times silly to three times shrill. look at linkedin and netflix priced over 400 times earnings and 15ish times earnings is expensive. >> you look at ebitda growth you're looking at 20, 30, 15 times growth. when does three times silly become two times silly and when is two times silly enough? i think the growth is getting enough to justify these prices but they could come further. >> it's hard for me to imagine a scenario all these guys win. look at twitter and linkedin. there's an assumption they will do an amazon and electronics

selling everything. they will bump into each other. at a point they have to think is it five years out? three years out? >> and do they do it with something they have with the exception of twitter that clearly needs to grow? >> you look at linked in, it has a great look at people's connection and history and who they're linked with. you want to see them capitalize on that either through advertising strategy in content or go way outside and own the entire resume an career process. you have to expect they will do that. other companies are locking at that space. >> we've been looking at this since the beginning of march and there's no cause except the psychology of this. it started when facebook bought a company for over a billion

dollars. do you think sometimes in the private market they're starting to recalibrate this and say take it down a notch. >> i think the latest deal is so outside and any time you evaluate with sales and not earnings, the key is it can get to the $2 per user monetization rate facebook is at. right now at 91 cents. right now we have an argument it's a great company and can they get the user base up to do better quarter for quarter and is that enough for the $45? >> the part that has me scratching my head about this, twitter doesn't have the personalization facebook has. without that, without those great signals about what people want i don't see how they close that gap. >> i think we have to start thinking about twitter from an unfrozen caveman privilege. that was the saturday night live skit, unfrozen cave man comes

back and sees the world. a big site lots of people put media and information into. people can go and look at all that stuff. there should be enough audience to monetize at a high rate. if they keep it simple rather than user engagement we will be okay. >> the stock is up pretty big and we will continue the twitter deba debate. up next, fcc to vote this week on a proposal that would allow companies to pay for internet that is faster. concerns concerned the new rules could lead to a new type of internet one with a slow lane where most of the traffic lies and a slow lane for those who can afford it. we had this debate before. some people are saying just because you create a fast lane.

that means the existing lane is slower whether you call it a slow lane or not. >> he has a big challenge explaining this. he rolled out a lot of this at the cable show where i was a couple weeks ago and people scratching their head, if one lane is faster and the other is slower, to some degree we already have this. netflix can afford to speed up the delivery of its content in certain cases. xwo google has all this fiber. that certainly helps the economics of their youtube business. we really have to wait to see what kind of regulations is he going to be able to push through and put in place to guarantee a quality of service for all the lanes. >> wheeler is becoming the greenspan of giving commentary. none of it makes any sense, right? the regular service is going to be good, not a slow lane and there will be a fast lane. fast lane everybody has to be able to buy and not degraded to the non-fast lane. makes no sense. seems like he's in the 11th hour

trying to hold onto the fast lane and when this comes out today we will see if he can keep the remnants of the fast reilan. >> 100 came in and weighed against the proposal. do you think the vote should be delayed? do you think we should have the vote thursday? >> i think there's enough of public outcry and david carr had a an article rallying against the detech. i think it is too confusing. >> what do you think the result will be? >> i think the result is he will have to give up. not happen immediately, over the next few days have to give up on the fast lane. >> what will that mean in practice? >> it will mean net neutrality. everybody has to play equally. >> isn't that great? somebody has to pay for fast delivery, right? either people pay for it or companies. or the government comes in and

says this is a very important utility. nobody wants to pay for it. >> you are paying for it. when you pay for your broadband service, what are you paying for? for netflix. if nobody was on there they wouldn't be paying for it. >> everybody wants it faster but say we want more investors in it. >> because most companies only have one or two ways of getting broadband. >> he said i understand there are concerns and i will put an onl only -- ombudsman in there. >> coming from the land of the ombudsman, i wouldn't go there. no. >> that doesn't aswage any of your concerns? >> no. he has to explain it. >> finally, two start-ups branching out into two new arenas. air b&b to have people pay for everything from event tickets to travel. and is launching a new app letting you order at nearby

restaurants paineding for food when it's ready. and both decided the best way to grow is by branching out. does this worry you they're getting away from their core business or do you think they need to justify the evaluation and strategies put in place. >> for air b&b, this is smart. the times i looked at places, it was toward the beginning of my travel experience. maybe i hadn't decided exactly which days to travel. if they have millions of people coming to them to start their travel experience, why shouldn't they get a cut in other transactions. in square's case, they're not big enough. what's a company using square so i can order ahead with them. they're getting into grub hub space and yelp. those companies would be much more successful with this model than square. >> i agree with john. this is air b&b taking a playbook out of traditional companies. if you book a ticket or get a

bike or car, seems like minimal distraction to me. >> you think they need to build the platforms themselves? >> the article was unclear how they will achieve it. i imagine they will do a partnership with lift, another silicon valley company. >> it has created a market everybody will get in on. everybody will have this functionality and they're chasing around to find out something, a, they con commoditytize and will lose the position in the industry. >> you're saying there could be another rentplace for rentals and -- >> in the meantime, they're fighting with authorities on the taxes, like tooth and nail. >> this is the theme we see on the show every single time, the up and comer goes into the incumbent's space and the incumbent says we can do it and

goes down after them. >> air a&b distinguishes them from square. there's a number of people going there because they want to started a travel experience. makes sense if they could get extra dollars from other travel companies. >> i don't, thank ybut thank yo. >> you know travel and sell customers on experiences. i would certainly do it. we do it on expedia. >> even though they're launching this new product, they're actually shuttering square wallet. do you think that's a really -- >> we were talking about apple acquisitions, speculating about tim cook acquisitions. he has to buy square. square wallet has no attraction. it clearly has no attraction because they're trying to have it just be a food item. >> i think so, according to reports? >> i think so. next up, apple made big news

last week over its potential deal to acquire beats electronics for 3$3.2 billion. what does the maker think about that deal? we'll see what they think. next. and rick santelli on "squawk on the street". >> simon, the third hour is the great hour. we will talk about interest rates. the yield curve has stopped flattening, a big surprise, steepening a bit. what conclusions should we draw from this and will it make a difference in long term interest rate movement? tune in, bottom of the hour, we will talk everything interest rates. we started zya with the thought that the kid on the back of the bus might have a song that he has in his head

but he just can't get out. with the technology of cloud, we changed all that. i can sing something into my device. up to the cloud it goes. back down it comes sounding better. we break down the walls of creation, and we give music creation for the masses. ♪ ♪

take a look at the health care sector, one of the big winners of s&p. >> some of the leading gainers are health care stocks in the s&p so far today. you look at the breakdown a lot of momentum plays, think about names like gen -- regeneron, biogen, they've been hit hard the past month or so but doing well today and maybe looking for bargains on the beaten down biotech stocks. at least for today they're to the upside. back to you. >> thank you.

a deal between apple and beats is yet to be concerned. the inventor of the dr. dre head phones is here. the actual inventor of beats head phones. thanks for joining us this morning. >> thanks for having me on the air. >> as the engineer behind this product, what was your initial reaction to reports of a deal last week? >> you know, first is the stunning val stun ing valuation placed on the dee. w -- the deal, it was a surprise and motivates us to do great things. >> you sold it two years ago. what is your hindsight? do you think you got out too early? >> i think i got out in time. you never know what can happen. in retrospect, i could have got

a good share of that and i regret that. >> noel, i remember four, maybe five years ago i sat down with dr. dre and jimmie ivan when they were doing a licensing deal with hp. monster was never really that much of a marketer behind it. do you need to change your strategy now that you see these audio products, the way they're marketed has changed through beats? >> for the first five years, monster was beats. we designed all the products, studios, solos, beat box, beat box portable and devoted our heart and soul, the company to developing all these products. as we go forward, we need to focus on monster's own new products, our new technologies, our pure monster sound and all the great new products like dna and 24k we are now introducing to the marketplace. >> on the marketing side, i

remember jimmie was out on stage, dr. dre was there, t timerland was there. i was there in southern california and those were the people they had representing dr. beats even though you were behind the scenes. how has the marketing changed for you now even though you see even apple paying attention to beats' marketing? >> i think beats has done a good job marketing their company. i don't think we got the recognition we deserved in that. going forward we need to make monster known and game changing technology in head phones belong to us since we developed all the engineering and all the technology. going forward they will be on their own and we will be on our own. >> noel, we still don't know whether the deal is done. obviously, you're probably aware -- i don't know if you've seen the video dr. dre posted

thursday night and then took town, seemed to be celebrating the deal had been done. have you spoke to them? can you tell us anything? can you tell us how you're feeling? are you in contact? >> i am in contact. i can't really say anything about that. i think maybe dre was a little premature celebrating. i want to emphasize that the deal is still pending and that it hasn't been confirmed so it's not a done deal by any stretch of the imagination. >> do you still expect it to be done? is that what you're hearing? >> i can't comment on that. i would like it to be done, put it that way. it would be my desire. you said you thought the price people are talking about was stunning. why do you think they' they're -- they're paying that? why do you think apple might pay that? what are they getting here? what's important? >> if you divide it out between the beats' music and headphone

business, the headphone business is a robust business, sales are going up annually. i think monster had a rlot to d with that doing the beats marketing distribution and working with our retail channel partners. i don't know what you experts put on evaluations these days but i'm so glad to see the evaluation is high. for a company like monster, who is kind of like the engine behind all this technology, i think we will look for our own collaborations now. >> noel, the bit you haven't mentioned there is the music, the streaming by subscription. a lot of people are trying to second-guess what's going on here. there is a view maybe if apple does this deal they are admitting to some extent the era of the downloads is coming to an end and more about screaming by subscription where you pay a monthly fee. how do you feel about that

argument? >> i love streaming. i think scretreaming goes beyon buying music, really a monopoly with itunes. for all the other devices out there, google and the android, you didn't have itunes. it gives an opportunity for all those folks to be able to hear high quality music. of course, that just explodes our category of head phones and bluetooth speakers. >> noel, streaming is fairly new as a business for beats. they have $1.2 billion in sales, 20 million songs in this library. how does that compare to monster? where is monster in that game right now? what type of sales are you doing and where do you think your valuation could reach if you see this deal as an inspiration and setting an example for what you potentially might do? >> we lost the beats license. we had to play catch-up. we brought the business up to over a billion dollars. now, we introduce a whole

plethora of brand new products i believe are little baby beats with not focusing just on the hip-hop genre but focusing on sports, fitness, luxury, kids. so we introduce whole slew of brand new products that everybody can check out at monster products.com. >> have you been in contact with any potential buyers about an acquisition either recently or in this wake of this deal, noel? >> no. but i'm going to be looking! throw a few billion this way. i'm good with that. >> are we barking up the wrong tree here? so much of the growth is in video these days, not music yet there's all this talk around the music portions of this deal. you do products across both music and video. where is your focus right now? >> our focus is on audio. because a great audio experience

we strive to provide and improve every year brings us closer to the performance, to the words, to being at the performance. to us, music, you can listen to a song many times. how many times can you really watch a movie? music is the international communications and i don't think it will ever play a secondary position to movies. >> just before we let you go, obviously one-half of the beats business or beats international is dre, and we've spoken about that. the other half is jimmie. have you ever worked with him? what can you tell us about him? what if he ended up as a result of this deal on the apple board, what do you think he would bring to the table? >> first, i have to say i work very closely with jimmie. he's a perfectionist and market and game changer. my kudos go out to him and i

think it would be a dream come true for jimmie. i think he could add a lot on this privilege what the music business is like, how apple can advance. i won't say if he is on the board or not on the board. i have no insight to what apple's intentions are. >> do you think if he was ever given that position, be described as the new steve jobs? >> he is very steve jobs-like. i would say steve jobs was a hero of his. they had often met together, jimmie and steve, and had a really close relationship. in my talks with jimmie he often referred to steve as that inspired leader and creator. >> just a quick final word. i know you don't have an equity stake in this company any longer. do you expect to get royalties or patents or licenses? >> we had royalties up until the end of december 2013, so this is

this fourth -- the first year that we are not getting any income from beats. >> all right. >> but all the products we design up until 2013 we had actually been getting royalties on in addition to being able to sell through the middle of 2012. >> noel, we wish you the best with your company. thank you for joining us this morning. >> noel lee of monster. >> thank you. coming up, investors are eagerly awaiting alibaba's ipo. before getting too excited, should we be worried about the growth of the commerce e giant. more on that. care what age you are.

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bethany, welcome back to the program. >> thanks for having me. >> what do you see this is greatest potential risk for alibaba. i think the greatest risk is a slowdown in china. they're exposed to that. if you're a bull on china maybe you're a bull on alibaba. if you bought anything in china, you should be worried. from the numbers being tossed around we're talking about a company going public 15-20 times revenue and you have to worry about revenue catching up with that valuation and this is a chinese company and will flow to you as an investor. >> what about the argument bricks and mortar retail infrastructure in china just isn't penetrated at the level it is in a developed market like the u.s. and therefore even a slowdown in chinese might not blunt the momentum of a tech company like alibaba. do you buy that? >> i buy that. there is some truth to all of

this. this is an amazing company around since 1999, a real company. not a flash in the pan in any way. the question here is pricing, a company going public at the valuation levels that are being bandied about doesn't leave a lot of room for things to go wrong. then you have a lot of interesting structural issues that are raised in the prospectus, if this were a u.s. company you'd be running in fear. we're all willing to say it's china, things are different. the history of the market is littered with things that appear to be technicalities then all of a sudden they're not i'm talking about this much discussed variable entity structure. >> to elaborate, this is the idea by grace of the chinese government they're able to pay their profits into a shell, i think, in the cayman items and flows back to stockholders here. that link and chain could be broken. >> yes.

it's set up so the company can tell chinese regulators owned by chinese but foreign investors can feel it's owned by them. it might be totally fine but there's always risk in these technicalities. >> we discussed the risk of growth slowing down and the idea that alibaba could use the proceeds and stock to buy companies and do acquisition and hedge themselves against this risk. they're buying stuff in online video and mutual funds to try and hedge against the affect consumaffect -- the fact that consumer spending could slow. do you think they're going on an acquisition spree and do you think yahoo! could potentially be acquired by allibabaalibaba? >> i'm not sure why they would acquire yahoo! unless we thisee

something more from them. how successful acquisitions versus core ideas are in the technology industry is yet to be seen. you have to keep in mind competition in this phase and chinese, too, is heating up. there's 10 cent, arguably the social media thing we see here. alibaba is making that transition to mobile we see here. i'm not taking away anything from alibaba. i am saying at the valuation levels discussed there are risks. >> when are you here? early august? >> they're keeping it under wraps. but sometime towards the summer. >> good to see you. thank you very much. when we come back, more of our interview with jennifer aniston and tell us about her next project and if she binges on her roles.

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europe heads toward the close and greek is heading negative and those stocks have been under pressure some time. wednesday some of the stocks there could use international ratings. there is a kern within greece. let's see how we traded on this stock market and show you how we've been falling some time. there is kern the political

opposition is gaining ground in greece opposed to the privatization. we just lost some ground. what is interesting, jpmorgan has gone from overweight to und underweight in particular. other stocks are murdoch stocks and a rumor he is interested in combining bskyb and sky italia. that would be a difficult deal to get done across the european union. that apparently is what he's aiming to do with one of his sons and those stocks are fairly active. astrazeneca, tonight or the middle of our time. the ceo of pfizer will enter the house of commons and start defending his bid for that. we have more news coming through on potentially what they may do

to get their hands on astrazeneca. >> and in europe it's heating up now? >> on both sides of the atlantic. >> both sides. we'll see what it means for the market. rick santelli is standing by with the santelli exchange. hi, rick. >> everybody wants to know when higher rates will arrive. 2014 wasn't a good year for pontificators, analysts, economists, whatever you want to call them. i'm not making fun of them. markets are quite difficult. when you have so much of the market under pressure by agency like the federal reserve and treasury and all the global issues it becomes that much more difficult. look at the following charts. these go back to march, not today, only to march. looking at the 10 year, look at the spread there and see even

though it's flattening, we can see stabilization in the spreads and steepening going on. that's very relevant, from a domestic standpoint from our own curve. look at a 10 year chart of 10 versus boons. and looks like it's pausing at the very most. why is this important? because the yield curve, anybody who played baseball, knows it's a curveball. you have to spin it. it has rotation going on. when it comes to yields the 30 year bond is up about 11, 12% total return since the year began. that's pretty good. better than the equity markets. it doesn't fit. the reason it doesn't fit is the interpretation by many including myself, a lot of interpretations, one of the large parts of this pricing question is the u.s. economy has

bouts of greatness but no sustainability. that gets me to the spin. i don't think it's a negative issue. i see what's going on geopolitically with ukraine. i love the line putin's playing chess and we're playing checkers. however you want to approach foreign policy from the u.s. and global standpoint, don't see any military options here. the market most likely has made up its mind. the reason this is important, i will continue to say it, i think geopolitics is being used in a disproportionate disproportionately large rate in explaining what's going on. think in retail sales and inflation numbers we will get a good sense how more-or-less in anythings may impact the curve. if you can figure out the curve, you can figure out long term interest rates. back to you. >> thank you. more on our exclusive with

jennifer aniston. does she binge watch her own shows with netflix? and the companies she most admires next on cnbc. just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review.

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yammer ceo throws a barb at apple and we look at what he tweeted or whether he's off the mark. twitter on its way back up? the stock is on the way higher and mr. peck is live in 15 minute minutes. >> thank you. meantime for health of the consumer and our own particular ico icon. >> she is helping to run a beauty business called living proof, an investor and co-owner and spokesperson. kind of an interesting model blends pharmaceutical technology and beauty. it actually grew out of an mit lab. biotech experts ventur dabbled venture capital money and she uses the products and why she got so excited on it. i asked her how she thought the

current beauty companies are failing consumers. >> consumers do spend a lot of money on products they make these big claims they will give you this result and they don't. so i think it's worth it if you're going to get the results that you want to pay the moneys it feels like it's worth it. >> we were talking there about affordable luxury and paying up for these premium products which she sells living proof at places like sephora. she would know. she's been getting her hair done and involved in hair care the last 25 years. those in new york who want these results often want to look like jennifer aniston and go into their hairstylist asking for it. >> even at that cut? that's controversial, isn't it? the color is controversial. women are in uproar. >> she went a little brown. the most famous hairstyle is the rachel.

it is the 10th anniversary from the finale of "friends." we talked about this and about her iconic "friends" hairstyle and whether this inspired her to get in the hair care business? >> kind of a natural progression for sure. over the years having been approached before this absolutely made perfect sense to me and also being able to be involved as an owner of course was even more exciting. >> she really detailed how she does take part a lot of the different processes behind the hair caroline and speaking from the headquarters in boston. she gets approached a lot as a sloebt to be celebrity to be a spokeswoman and this resonated with her. >> is it available only at sephora? >> available at multiple places. you can get it online or higher

end hair carouselers. i wanted to share because we did talk about "friends" and media consumption. we talk about it a lot here on "squawk on the street." and i asked her whether she binge watches any episodes of friends or tv particularly on netflix. here's what she said. >> no, i don't. but if i'm ever flipping through the channels and i see it, i will always stop and reminisce and be very happy. >> reminisce about "friends". >> if she did binge watch her own show she probably wouldn't tell you that. >> didn't admit that. interesting she doesn't use netflix. i want to tell you more about tech and media. because it is a high end health care company. i asked her as a businesswoman who she admired the most in business, she said tesla. that's interesting. >> driven one but not bought one. >> doesn't own one but driven in one and think they're the

future. >> interesting with so much controversy surrounding the company. they're at the forefront and have a fan in jennifer aniston. >> that helps. trying to make investment advice for the wealthy and make it easily available for everyone else. can they really help you invest like the 1%? we'll talk to the ceo next. requires precision and anattention to detail.g it takes knowledge, hard work and a plan. at baird, we approach your wealth management strategy that same way. as an employee owned firm we have the freedom and resources to create customized financial plans built to last, from generation to generation. we'll listen. we'll talk. we'll plan. baird. today is monday today, we greet you.

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what do you actually do? >> the typical customer comes based on the recommendation of a friend and tell us about their goals. based on those goals we provide a globally diversified folio of stocks and bonds and rebalance it for taxing and transaction costs to make those costs as low as possible and get those customers the best possible return >> that was a very good explanation. i understood that. how does that consultation happen?

face to face or online? >> all our tools are online however we have customer support seven days a week, 365 days a week and have a close relationship. m >> have you automated the process? am i feeling out a form and your c website steers me to it. >> you sign up in five minutes, links to your bank account, incredibly easy. there are things some advisors we don't do. not doing estate planning, not doing your trust documents. if you just need a great investment portfolio this is the way to go. >> pretty cheap the lowest fee in the industry, .15% for accounts over $100,000. if you don't have $100,000 what will getting at vice from betterment cost you? how does it do against learnvest as to what you do? >> the total cost is 35 basis

points at the lowest end. if you have nothing, start with $10, only 35 basis points. most sites won't even accept you if you have that little money. really accessible. >> there's wealthfront, others. how is a potential investor or investor supposed to decide which one of these is right for them? >> i believe no one focuses on the customer as well as we do. i think our solution is end to end the best experience you'll ever have because it's advised and seamless. we control the whole thing. >> it's a great speech. you're not really focused on the customer. you have an automated service, they're filling out a form. you're not really not focused, a computer program >> you're comparing us to your traditional offline advisor. >> that person sits down and talks with you. they're advertising what theyou goals for retirement are.

what's it worth on the table? >> it's worth something and there are advantages software has. software never has a bad day and doesn't wake up and recommend one stock and a different stock to somebody else. software is there 365 days a year. >> what is the return? >> we found over the long term nothing outperforms a globally diversified portfolio. you can't pick hot stocks or trend and do any better. just symptomized for them and their goals. we found if we compared our portfolio to advisors third party data over had advisories have done over 34 sample periods our portfolio outperformed 90% of the time. >> there's a lot of inefficiency clearly in this space. interesting to see which of these companies figures out the best way to get investors to do the right thing. isn't that where it comes down to? >> agreed.

>> thank you. >> from betterment, thank you. >> at the nasdaq, right now, it is at just about 4132. we'll get you some of the biggest winners on the nasdaq on an update when "squawk on the street" comes back. we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. become the next business to discover the new new york.

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(man speaking chinese)

the real notable one on the rally today is the nasdaq. let's get over to the nasdaq marketsite and seema mody for detail and what's a big move. >> hi. the nasdaq is the key outperformer today. the key question is does it set what to expect later this week. a flurry expected to be released later this week and should help gauge sentiment when it comes to tech. as to the rally. the internet index up 7.7%. google, yahoo! amazon, aol been under pressure until late and rebounding today and biotech up about 2%. the nasdaq houses many biotech names, a key bright spot today. then the global social media, two positives that may be helping, first pandora and

upgrading the online services to buy from mutual and both upbeat processes and apple is executing poorly with its itunes radio project and twitter, its shares under pressure with its growth and suntrust, robinson humphrey upgraded twitter from buy to neutral. three sectors that haven't done well the past two weeks due to valuation concerns, up higher. >> i see trip as adviser up 6% and sales up 5%. thank you. seema mody for the nasdaq. >> take a look at the s&p, all-time closing high, a new closing high. a new 38 week high, consumer staples actually leading the way. >> who's not doing well, verizon, comcast, at&t --

>> recent winners, dividend stocks. i know it's blasphemy. i think the stock market should continuously be hitting records. why we invest in it. thanks. have a great afternoon. as we approach noontime on the east coast, let a's send it ove to scott for the "halftime report." >> welcome to the halftime show. after twitter gets an upgrade from one of its earlier supporters, are the stock's worst days officially over? swoons and snap backs with housing and retailers going in different directions. winners and losers. why did yammer's ceo just called the biggest company on earth the dumbest. on the desk today and on the floor of the stock exchange we begin with the dow hitting a record high for the first time in m