markets to chew on. april housing starts report. that's going to be released at 8:30 a.m. eastern time and economists expect a rise of 4% to 984,000 this. could provide more evidence on the strength. later in the morning we'll get an update on consumer sentiment. earnings report will start to heat up again next week. after the bell less than positive reports. check out shares of jcpenney. the troublinged retailer moving higher after reporting a lower than expect loss, $1.16 as well as sales that topped estimates. penney expects same-store sales to rise in the midsingle digits. nordstrom reported earnings of 72 cents a share on revenue of $2.84 billion. both of those numbers topping analysts' estimates. joe, over to you. >> yeah, we're back. funny you ask me anything going on. not much, no. >> nothing?

>> not much. do you have a tattoo? >> i do not have a tattoo. >> you don't have a "new york times" -- >> i don't. >> can those be removed? do you think she's going to -- did you see the cover of "the post." >> long three hour. >> see the cover of "the post." you used to be scared to talk about her. ding dong. she's gone. you can talk about her now. >> i prefer -- jill has been very good to me -- >> are you going to look at this. that is her -- >> there she is. >> her subway token tattoo. i've never seen you completely naked and so i can't say whether you have -- i know -- >> i've shouted about -- do you have -- are you unequivocally saying you don't have a "new york times" tattoo. >> not in a visible area. how about that? >> so you leave and all hell breaks loose, sorkin. it's really -- the last week you

were gone we had every merger -- >> i timed it perfectly. >> this time i timed it perfectly because this is something i prefer to the to talk about, as can you imagine. >> no, i can't imagine. she's gone. you're still afraid? >> in the same way that i would never write about the inner workings of the great family that is nbcuniversal in "the new york times" pages i wouldn't talk about the inner workings of "the new york times" on -- >> this was your chance to be -- for us to have an insider and -- >> that is true. >> to know what it was like in the newsroom. how about this -- >> i don't know. i don't have enough information. >> how about -- do you know him -- good guy? >> he's a great guy. jill was great too. that's why -- i'm not -- i'm like a bad guest. >> instead of a bad anchor,

you're a bad guest. i might get a peacock. >> pretty much. >> for your yard? >> no, for a tattoo. she said -- >> for a at that time too. although i -- >> i don't have a peacock. >> you don't. there's not a whole lot to do in prison. >> you're not connecting. >> desecrate your flesh, is there? >> exercise in reading. >> spent 14 years. anyway, the markets because, you know what, i would not have digressed if there was a huge follow-through. see whether there is today and, you know, i was reading yesterday something from jim paulson about all the technical troubling technical things that converged yesterday in addition to closing at 2.49. we're up a little talking about the ten-year up a little above 2.5%. but that's how the stock market reacted to worries about global growth concerns and, you know, we did have higher inflation numbers in line, but if you put slow growth together with high

inflation or rising inflation, there's a name for that and people don't like that. in the past when we've had it, it's been really bad for financial assets. no one saying we'll get there yet. you know, inflation is obviously well behaved. but with the eurozone, the 18 country eurozone growing at 0.8% annually and you're reading more and more people today in the lead story in "the journal" saying 3%, if people are counting on that for this year and, remember, we've been talking about it for awhile. what's the ten-year telling us? when you have -- what were the german bonds in the one and changes. we can't be at 3 when germany is at 1 and change so we are being dragged down by what's happening on the continent. but it certainly isn't saying we're just growing gangbusters over here. what does that mean the fed needs to do? comments from rosengrin. he wants to do a lot more. what are you laughing at and smiling about? >> your smile. >> nice to see you. >> you missed my smile. >> i just, you know -- we were

like where is andrew? >> yes. >> where is andrew with this -- andrew, you're an insider at the "the new york times." >> was she mercurial and difficult like everybody said? >> you can say she's mercurial. >> that means she's just -- >> introverted. >> i think we'll just turn -- >> i heard that when rob portman did a chicken, i heard huh-uh peered on another network. he wasn't -- i'll do the sound of a chicken or get his sound. >> oh, you could do a chicken. >> because you are a chicken. >> i'm a happy chicken. i'm a happy chicken. >> you know, what you're back -- >> i'm finished. i'm not going to ask you anything about "the new york times" and you're use also. india, the guy won. >> i know. >> no, it should be great. >> should be great. >> straight to there and the

results of the democratic elections in and india will have a new prime minister. we have more on the victory from new delhi. good morning to you. >> reporter: his name is narendra modi and leader of the bjp and they swept to victory today. the count is in. thought only did they secure a simple majority of 272 seats, which are needed to run a workable government here in the lower house of parliament, you can see over my shoulder, but they did so in style. it was a resounding victory. landslide victory, the saffron surge they're calling it securing well over 300 seats. if you're talking about a super majority here, the markets rejoiced bench market sensex powered on to new highs today.

a little profit-taking but similar story for the indian rupee as well. multi--month highs, 11-month highs against the u.s. dollar. what the markets here are banking on that the government will speak with one voice and speak with one voice on the need for structural reform. they should not be in theory any impediment from the fractious nature of politics since they won such a resounding victory. no need for horse trading here. that's what the markets are happy about, but it's going to take time to turn around the indian economy. there's no panacea. no silver bullet here and i think the bjp recognize this. their supporters recognize this, in fact, we were out not too far from here a few blocks away which is where the bjp delhi headquarters are. there is a carnival atmosphere. still partying. people letting off firecrackers and there's even elephants and the elephant is a very useful

analogy here. this was a jumbo victory by the bjp but it's an elephantine task to turn around this economy. a lot of -- a number of challenges they have keeping a lid on inflation, eradicating corruption and also attracting foreign direct investment in a bid to try to improve the capital -- the current account deficit. that's where we stand at the moment. back to you. >> okay, sri, we've been waiting for awhile -- >> yes. >> because elections take a while and this was the outcome that was -- that people thought and -- >> even better then people thought. way better. >> you know what's weird the way -- we'll bring in our international correspondent michelle caruso-cabrera but sri spoke about elephants. the universe is weird because at 6:0 we'll talk about elephants again in a different context. >> real elephants. >> yes, again. >> not republican elephant. >> not republican elephants, no,

no, no, but in terms of feld entertainment, the circus prevailed completely and we'll have ken feld on to talk about extracting $25 million from the humane society and from the animal rights groups that paid a plaintiff to make up false claims about elephant treatment. >> really? >> yeah, he's going to be on. just weird. >> i can't wait to see it. talking about elephants twice in a half hour. >> i love that. >> not -- >> i love elephants. >> there's two kinds, though. >> asian and african. >> yeah. >> did you know that? >> and republican. >> and republicans. >> very aggressive. >> but your symbol is an ass which seems -- i don't know. >> donkey. here to talk about the indian elections and what is going on with the eurozone. a move away from socialism under the nehru gandhi family. if you think there was a political dynasty, they have nothing on nehru gandhi in india. we go from socialism to a pro-market, pro-business leader

in the country. what has modi promised? massive buildout in infrastructure. how it's going to get paid for, unclear at this point but did it in the home state where he was the leader since 2001. more private competition in the oil and gas sector which has been dominated by the state and then for the state-owned enterprises better governance and less political intervention into their running and actually more kind of typical running them like a business which should be more efficient. if you could just do those things it would be extremely helpful for the economy which deserves to be doing far better than it has now for the last few years. let's move on to the eurozone because yesterday and we're seeing it again today in particular with greece. the periphery yields rising focused on the united states on our long-term yields going down. well, greece, spain and italy have gone up. take a look at greece in particular. okay, with all the debt they have and it's not even at 7%, that's still pretty good, but when you see these charts once again we're worried about what's going on? why, in the last 24 hours we've

gotten bad data which really puts a crack in what the ecb has been saying. it hasn't acted much to the complaints of many people because they said, well, we do have a nascent recovery, one, two, we think that inflation expectations are anchored. well, guess what, in the last 24 hour what is did we learn? the gdp recovery is not so good. italian -- >> only in germany. >> exactly. italian gdp went down. france was worse than expected and expectations about inflation went down again. the ecb has signaled they will act in june but a lot of people think it's way too late. why are you so worried about deflation in europe? primarily because of italy because they have so much debt. remember, they come after japan and the united states. and yet they're a much smaller economy. when you go to a closing and you owe 100 grand on a house that's worth 80 grand you have to bring $20,000 to the table. but if you can get inflation going whether it's for good reasons or bad reasons and your

house rises to a value of 1 to thousand and you make money. you can spread that across an entire country. >> what we've done here, devaluing the dollar to pay back all our -- >> exactly. if you get inflation it helps out utley dramatically. >> even the form of capitalism that they've had for -- look what the strides india has made. think if you do unshackle the -- >> when you lift the lid of economic oppression even a teeny bit, the changes are dra mat sdmrik should be exciting. good, fun to watch, i think. >> i hope so. >> all right. >> see you later. >> got somewhere to go. >> thank you for coming in so early in the morning. >> she's been sitting here the last two days while you've been -- god knows what you've been doing. >> hobnobbing. the biggest investors on the planet have been hobnobbing unveiling what they're buying and selling. dominic chu has some of the big highlights here earlier. dominic. >> i am here early and my

producers were here crunching numbers late. here's the interesting part. manage more than 100 million bucks you have to make a quarterly filings. caveat as always is that it's a snapshot from the end of last quarter so it's already about a month and a half old, but it can help shed a little light on bigger investing themes so let's start with one of the biggest, warren buffet, of course, not a lot of changes to his biggest positions like coca-cola or wells fargo but berkshire hathaway has a sizable stake in verizon of all companies. it's 11 million shares worth, half a billion and berkshire decreased positions in general motors and boosted its position retail giant walmart so a big theme there. next there's hedge fund manager dan lobe. the firm he manages took a stake in verizon. 3.5 million shares. small theme. one of his biggest holdings is verizon and took a new stake in american airlines.

those stocks have been up big. americans up about 50%. then there's yahoo! he liquidated 8 million shares he had left and loeb has been winding that down and john paulson he made a new position in verizon. again, another investor in verizon. speaking of american airlines, paulson upped his stake by 3.5 million shares and bought a new stake in media giant cbs so those are three whales. next hour we have three more including david tepper. the man who doesn't want to be too frickin long this market, john. over to you. >> you're going with the hard "k" instead of the "g." we didn't know if it was frickin or friggin'. 4.4% yield. >> i didn't do it as a "k." >> you do it as a "k." >> yeah. funny that the way we are, isn't

it that -- everybody knows what the word is and it's implied but you can't say it. it's just weird. everybody knows what you're saying. >> there's another version that have you can't say. i'll tell you about that. >> when you look at -- you know what you missed yesterday. i don't know whether you saw this. >> i feel like i missed you. i missed so much. >> i know you did. >> but mostly you. >> you wouldn't have been -- you wouldn't have gotten anything because it was just for me. >> what was that? >> i'm just wearing something in and out of work. >> a murse. >> the two of us -- >> the proof -- >> strutting our stuff. >> did you bring that in this morning? >> it's in my drawer. i didn't bring it home. i wore it up the steps from the set to my desk and that was about -- >> can i call it a satchel? >> you could call it a satchel. >> wasn't satchel rowan farrell's real name --

>> yeah. >> then he stopped using it. >> what about -- >> satchel paige. >> call it a fannie pack and call it a day. a front. >> all i carry is an iphone. my makeup is here so i don't need to carry that around. my compact i leave it here primarily and, right, i don't need to carry it around. you can borrow my murse. there was no bro in it. a legal battle under the big top coming to an end talked about this earlier. feld entertainment ceo used to go to the circus there were protesters about the elephants there and my kids are like, what are they doing -- it didn't ruin it but, anyway, the ceo will tell us about the big win for ringling brothers against animal rights groups and first a great murses in history here. you got a couple of good looks here. tom brady, that's a good one there, and right in the middle

you can see john and me showing off our murses. back in a moment.

vrj there is an end to feld entertainment's case. other groups have agreed to pay almost 16 million to settle a

suit over the company's treatment of asian elephants in the ringling brothers and barnum & bailey circus. we have the chairman and ceo of feld entertain many. thanks for joining us. not a national nightmare but your nightmare is finally over. >> it's been 14 years, so almost a quarter of my life spent in litigation and we won the case in 2009 and won two appeals and this was where these animal rights groups sued us and what they actually did was they found the plaintiff was a paid plaintiff and found to have no credibility whatsoever and the case was thrown out. they finally settled so they sued us and they wound up paying us with the hsus and the aspca

and these other plaintiffs, they wound up paying us over $25 million which was actually what we had in attorneys' fees over this time period. >> so that basically covers your attorneys' fees and thinking about the way this is going to be portrayed and we all have a pretty good -- a favorable opinion of the humane society. who doesn't? who doesn't want to protect animals. who doesn't want people watching to make sure that those that can't sort of speak for themselves are treated right. you won't see this vindication in "the huffington post." i look in "the new york times" i seriously doubt you'll see it there either because you're a corporation, you're making money and exploiting these animals. that's going to be the narrative from there but it doesn't make it okay to pay someone to say you're mistreating animals if you're not. >> that's for sure. they really misused the justice system and they got found out

and they paid the price for it. but it dragged us through this -- the court system for more than a decade. and for us, you know, we're focused on entertainment and we're focused on the welfare of all of our animals. i mean, it's really their agenda, their animal rights activists, we are animal welfare advocates and practice that 24/7 every day of the week and in addition to what we do on the circuses for these animals, we have a center for elephant conservation in central florida and we also have programs since 2008 in sri lanka which is -- has the most asian elephants per square mile of any country on the planet. and there's a huge animal elephant human conflict and we've come up with several ways to resolve that. so we're doing all this good work. we'll continue to and we'll

practice our animal welfare. they will, i'm sure, continue their legislative and -- >> let me ask you this. and it is sickening that this went on as long as it did with them. just because -- it's funny. you wouldn't want to root for them but in this case it's awful. what they did to you in this case. where are they going to come up with the money? that's what i was going to ask? >> well, they came up with the money -- >> they came up with the money. >> it's all paid. >> these organizations, the hsus, the aspca are collecting hundreds of millions of dollars annually through donations from people. >> so they had to end up using the donations to pay -- it's just ridiculous. i mean i'm not saying it's not ridiculous to pay you. ridiculous if you're a donor. how bad to you feel if you're a donor that the money you're giving them to help the animals is now going because they had a specious lawsuit, right? i mean, that's --

>> well, that's right. i mean it really, i think, should be a warning shot for the public to really look into where their money goes when they contribute to charities and 501(c)3s to make sure it's going to what they think it's going to. >> where are we, while we have you here, where are we on your view and that this economy is a 3% plus gdp economy based on what you're seeing at your operation? >> well, we have various operations. it's not just ringling brothers and barnum & bailey so we have a motorsports business, we have -- we operate disney on ice, disney live and we have a new show coming out marvel universe live, so what we have are special events. they come to your city once a year. we found out our business has been quite good. >> on a scale of one to ten, is

it a seven or a three? >> no, i would say it's up about a three. it's not what we thought it was going to be. but it's still good because people want to go out. i mean, what really hurt everyone, there's no denying the first quarter of the year with the weather, people couldn't get out. there was one weekend i think we canceled five or six different shows and different cities because the snow and the weather was so awful. so that was a hit but that's an anomaly and that stuff can happen. so it has picked up since. our business is strong and our international business is very strong. europe has been great for us this year. and we are now in japan which has been very good. and we have our full summer tour there. south america has been pretty flat the last year. >> how many global -- are they independent contractors? how many actual feld employees

are there? do you know? >> we have about 3,000 associates all over the world. so all our performers are also employee. >> yeah, we've had your daughters on eye few times and always ask them. they were born into the circus. did at the want to grow up -- want to run away somewhere else because they're -- >> well, i mean they could have wanted to run away and join the home, right? >> that's whafs thinking. >> no, they -- all three of them and i was really surprised wanted to come and join the family business. so they represent the third generation and, you know, it's the greatest thing every day to be able to go to work with your daughter. >> greatest show on earth. have you brought max and henry yet. >> we haven't yet. next thing to do. we've been to the other one. big apple circus -- >> come to the greatest show on earth. >> the greatest show on earth. >> next month in new york. >> i'm a three-ring circus kind

of guy. >> it is my favorite thing when they go on the motorcycles insi inside the -- >> scary. >> accidents happen. i know we had some video but things are going to happen when people are doing thrilling things from time to time and i though that this -- a month ago or so, i know that it was on may 4th, yeah, but for the amount of stuff that goes on at the circus, that -- it's amazing it doesn't -- and i hate to say it but the part of the thrill is, i think there is a lot more nets being used now. we don't need to press the issue with no nets all the time, do we? >> no, i mean but what you have to understand is these people are extraordinary and they're perfecting an eight-minute act that they will perform eight to ten times a week. really for the sheer pleasure of the audience and, you know, they're really true athletes. real superhere rose of today. >> i see them walking on the ceiling of the united arena and

it just kills -- i mean sometimes i have to leave. i can't -- >> you're nervous. >> about heights and -- for some reason i'm up there with -- vicariously and it just -- anyway, ken, we appreciate your time and -- >> okay. >> you got your money back at least on the litigation fees and -- >> the good news is it's a big victory for the elephants and we will continue to really go ahead and lead the way in elephant animal welfare. >> okay. thank you. appreciate it. >> thank you. when we come back, what's next for the markets in this current environment? we got that discussion when we return. then the china factor. reality check on the country's economic slowdown as we head to a break. take a look at yesterday's winners and losers. ♪ life in the fast lane

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i want to know. good morning and welcome back to "squawk box" here on cnbc. oh, my god. i thought it was phil lebeau out of the corner of my eye. >> i'm not sure -- >> do you know anything about appeals or loans -- >> never buy the one i want. >> both important. >> both important. >> we do need to talk -- >> i'm always in the middle seat

by the bathroom. >> you don't limit chicago -- >> phil is here. di see him. he is here. i'm joe -- i'm joe kernen along with andrew ross sorkin. becky is off. fresh read on the housing report. 8:30 eastern they come out. economists are looking for a 4% rise to an annual rate of 984,000 units. housing start were up 2.8% back in march. consumers are snapping up new video game consoles but ott as entuesday as tick about buying the actual games on those console. >> what are they doing thenny. >> it's about a hot name. >> the ones you can't use the old games on the new one. >> streaming services. >> and npd says sales are up 76% compared to the same month last year. new consoles from sony and microsoft helped out there. sales of new games fell 10% from a year. all about titles. sharz of verizon are rising. berkshire hathaway and paulson

added new stakes in the dow component. watching the sort of some of the rotation in the market, it's been a way from the growth names to dividend and income names and now you see the filings of things that already have happened and purpose wondering what was happening -- >> they moved. >> that's what was happening? >> people were moving into those and whether that is a commentary on the prospects for whether we are upticking overall in economic growth. i mean you buy dividend stocks -- >> verizon one is interesting. >> verizon -- do you think they're not going to be able to pay the dividend and continue -- >> that's a tollbooth forever. >> getting 2.5 on a ten-year note and 4.5 on verizon, but people will point out it doesn't take much for you to wipe out a 4.5. one day if, you know, you get a sell-off. >> these telephone -- you know, they're funny businesses. all they need to do from a strategy perspective decide

they'll make a big capital investment in something and then all of a sudden the market whacks them. >> s.e.c. stuff like which happened yesterday which i'm sure -- it's amazing. you look at "the new york times'" take on the whaler and went 3-2 with the two republicans saying no and then the journal says it's way too much regulation and "the new york times" says neutrality is dead. it's unbelievable in this world how it depends where you're sitting for how you feel. >> sit in the middle. >> you do? >> i do. >> oh, yeah. i put this paper over here and put this paper over here and i try to stay in the mid. >> when i think of you, i think middle. that's what people say to me too. more on the markets. joining us is jeff saudi at raymond james and drew mattis, senior u.s. economist. ubs. jeff, when we hit 249 yesterday on the ten-year i got a lot of tweets that said, wow, we have -- and we have. we've been beating this ten-year to death on "squawk box" since

it broke below 2.75 and wondering what it meant and all along people have told us don't worry about it. it was a crowded trade. it's europe. it's this, it's that. is it indicating we're not going to do as well for the remainder of the year gd wise in your view? >> i don't think so. i think you'll get a pickup in cap x and be at 2.5% or 3% by the time we get to december. i do think the trifecta of bad news is what hit the markets yesterday. you had tepper's comments overnight as you point out and the below 2.5% yield on the ten-year and had military drill, if you will on the ukraine and i think that's what broke the market below 1880. >> and a weak -- a growth number in europe too so add that in, that's like four things, right? >> but the people i talk to in europe, joe, tell me there are less head winds and spoke to a number of pms yesterday and was

in montreal earlier this week. i -- i think there are less head winds and europe picking up. >> 2 1/2 -- we'll get to a 2.5%, 3% for the year. the market already ahead of itself hoping for 3% or will that be enough to satisfy the equity market? >> we gave away the first quarter to a large degree due to the weather. i would point out what we got was a flash gdp report at plus 0.1%. i think that will be revised upward but -- >> revised downward, they say it's going to be revised downward because they didn't import export numbers. no? >> yeah, i lived in washington, d.c. we'll see. >> all right. drew mattis will be advised up or down. >> looking down but wouldn't surprise me. economists take three runs at the number. by the time -- >> they can usually be right with three, up, down or -- >> i'm usually wrong all three

times. >> it's hard. you do the unexpected. but they get three shots up, down, and -- >> i think, though, if you take a step back, you know, ubs' views are rising rates are good, volatility is good for the economy longer run. first half will average around 2. a little over two. second half of the year will average a little over 3 so the trajectory is in the right -- >> you just said rising rates are good. rates are rising and going down. >> you know, the break point is three. everyone has three in their head. probably not going to get -- >> do the math. >> didn't you say -- >> well, yes, but you're moving in the right direction and second half is going to be where you want to be. the first quarter, i mean, you know, look, what are you going to do? blame the weather. it was the weather but at the same point there's no way to get it back, right? if you couldn't get to get your hair cut there should be and couldn't get it in february you won't get it cut three times in march. >> did you just say rising rates

are good. >> yes. >> rising rates are good because they encourage people to make decision. >> they're not rising. >> but going to be. the expectation is that the fed is moving higher. >> they're going to be. >> are you telling me that -- >> that people made a lot of money in the first five months being long bonds and people have been saying they're going to rise -- >> but for you to say -- for you to say rising rates are good assuming they've been rising they haven't been rising so falling rates are bad then. >> if you want to sit on a ten-year note and the fed looks like -- >> there's a lot of stupid people willing to do that. >> there's always a lot of stupid people in the market. >> the bond market usually isn't stupid but the people following it. we'll see. but -- >> we'll see. >> i don't see how you can use that as a positive that rising rates are good when rates haven't been rising. >> people are looking at the fed moving towards a rate hike cycle in the middle of next year. it's that expectation, right. if they don't rise the rates --

>> in they don't do it then you're in the -- >> if janet yellen chickens out -- >> joe tepper -- >> there's a problem. >> i'm with joe. she tapers but then -- >> you think she raises. >> middle 2015 they've been saying it for three year. >> all right. >> if you go back and look at the number. >> all right. jeff, thanks. he's mustacheless. is that a seasonal -- are you going to grow it back? i mean we -- >> my wife won't let me. >> it was a one-time weather-related -- >> your wife makes decisions in your family. >> you bet you. >> what do you mean you have to talk to your wife? we used to put a wedge in between decision -- anyway, my wife makes decisions too, jeff and i'm man enough to admit it. how about you, drew? >> my wife makes every decision. >> well, you know what -- >> andrew, it goes without saying. >> you know who runs my house. >> you can't -- >> she wouldn't let me wear a murse. when we return we have a big

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gm is under fire, the iconic automaker is a subject of a criminal probe by the justice department and a regulatory investigation by the nhtsa. do you call it nhtsa? >> everybody who covers the industry calls it nhtsa. and the focus on the faulty ignition switch.

what did gm know, when did they know it? phil lebeau joins us now. it was -- it was a report was needed. >> yes. >> for you to do for cnbc. >> and what stands out as we put it together over the last month and a half. a lot say these were accidents back in the early 2000s but is it still happening? we found people who drove those vehicle, still drive those vehicles and as you can imagine for these people when they are out there driving, to have them lose control of their car or lose the ability to control their car is easily as it should be controlled, well, it's every driver's nightmare. >> jessica justice was the kind of young driver general motors had in mind when it debuted the chevy cobalt in 2004. >> i was driving to work and the car just lost power, like it just shut off. no power steering. i couldn't accelerate. there was no brakes, nothing. >> reporter: she had problems right from the start.

the same ones that some other cobalt drivers would also experience. >> you know, it would take me a couple seconds kind of to realize that the car had shut itself off. >> jessica justice, she is one of the people featured in our documentary "failure to recall" investigating gm, she's not alone. we've talked with other people. people who have the cobalt now and a couple of things stand out, one, some of these people even despite the publicity and efforts of general motors to contact them about this recall, we found one guy who is like, nobody told me. nobody told me at all. i had no idea and what's interesting is when you look at how this was discovered, it was not discovered because of general motors and the federal government saying, hey, folks, we found something. it was discovered because of a very tenacious family of a victim and their attorney and when we come back in a couple of hours and show you guys -- >> a piece of that. >> does your knee have -- >> came unraveled. >> does your knee have to jiggle the ignition?

>> does witt to jiggle the ignition? there's a couple of things that can happen. one, your knee could bump it. two, you could be on an extremely bumpy road. if -- >> steering wheel absolutely lock? >> no, it does not look. you lose power steering and we tested one and it's not easy. as you know without power steering. >> all right. okay. >> yeah, we'll see you in an hour or so. you don't want to miss what phil has been working on. cnbc original called "failure to recall," investigating gm 10:00 p.m. eastern on sunday night and pacific as well. >> debunking the myths about china. does the asian giant have any room for growth ahead? we'll break out that discussion when we return. at delta we're investing billions of dollars,

improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we'll raise it yet again.

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why did g.m. wait so long? >> it angers me it took over a decade to correct. >> go inside the scandal rocking an american icon. phil lebeau reports. >> should g.m. have caught this sooner? >> they probably did catch it. welcome back to "squawk box" this morning. our next guest on s on a mission to cut through the mythology surrounding china. his hot new book "age of ambition, chasing fortune truth and chain a new china." with us is the author of the book. a staff writer at the former china correspondent. you were there eight years. >> eight years in beijing. >> it is a hot new book. >> "age of ambition" you can

check it out here. >> i still think there's advice to be talked about. i love to talk about what's really going on. >> money laundering society. >> yeah. you could say that. more importantly you say china's slowdown is real. for our audience, that matters. >> yeah. you say that because of what? when you say it is slowing down it slows down to what? >> we are all accustomed to what happened the past 30 years, which is this enormous economic growth. it has doubled size. that period is coming to a close. and we can talk about the short-term and the medium term. it is an incredible debate on both sides. the reality is today you have more people over 65 than you have under the age of 5. that's the first time that has happened. the fund memory demographics in the labor force is changing. >> do you believe the numbers in

china? >> i believe there are some of them. there was a lot of statistic al analysis you can find whatever number you want to support your hypothesis. >> if a viewer is looking at numbers, which do you read and go that's real. and which should you completely disregard? >> the primary of the country, before he took that job, he said i don't trust gdp numbers. what i trust is the number of cars moving through on the rails. i look at elect usage and i look at loans. if i can use those three measurements i can get a real sense of the economy. the gdp are for political benefit. >> for a while it was watch sales. >> you knew the corruption campaign was actually starting to bite in.

>> it didn't occur they would eventually have this type of effect? >> they felt like they were facing -- they had an urgent economic crisis in effect. they said if we don't do something we're not going to have enough to feed all these mouths. they were coming off a famine. they were trying to figure out what they could do to get the country on its feet. >> knowing that young people need to take care of the old people eventually. if it's a burgeoning, aging population. >> it is an experiment. >> what are they now? >> it is hard pull off. >> we have the short seller on our show frequently. he often loves to show us pictures of the go cities. is that a real concern?

would you be short klein that like him? >> there is a world he is describing. you see ghost cities, ghost malls. but it is also a two-speed market. you go into the cities -- big cities in china where families, only one in three has a kitchen or a toilet. this is really in need of redevelopment. where they have put capital in areas where they shouldn't be, you end up with these decisions. >> google, facebook, will they ever able to? >> they see them as a political existential threat. >> and alibaba, is that a company you have a lot of faith in? >> it's a pretty amazing place. what he has been able to do, and you know this company well, they

have tapped into eye change of chinese life which is incredible power of choice. this is the thing that's happened the last 10 years. >> you don't need an estimate of the capital that's been missal indicated. it's been a problem. how much capital has been misallocated? >> i think there is an entire element that is very hard for us to evaluate. there are places where people got around the rules for years. it's only now beginning to come do the surface. this is a period of reckoning. >> with didn't even talk about as they move into -- everybody knows everything now. everybody knows about the lifestyle we have over here. that's going to be hard to keep. although the people realize you have to keep order. >> we've got to run. "age of ambition" is the book. come back. >> what's ahead for the market? with growing concerns about growth here and europe, mark

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a selloff for wall street. concerns about growth here at home. and worries about the eurozone putting pressure on the market. should investors brace for more selling? which stocks are getting snapped up or dumped by the most famous investors. >> want to get away? time for million dollar homes, the summer edition. shore house, lake house, ranch in the mountains. we'll look at all of those and figure out who is going to make the cut with the real estate guru. the second hour of "squawk box" right now.

>> good morning. and welcome back to "squawk box" on cnbc. i'm joe concernern along with andrew ross sorkin. becky is off today. she'll be back monday. our permanent guest host mark okada will be here every day now. he is the co-founder and cio. we have a morning job, kind of. no, we do. we work all day long with sources. i can't even describe the amount of work. very complicated. >> exhausting. >> down 22 points on the dow jones futures right now. that has gotten a little bit worse. but i don't like fridays because they lead to mondays. after you hit that selloff yesterday, which a lot of technical areas were breached, if this were to get out of hand, you worry about monday.

i'll never get over what happened. friday gets nasty. then people worry all weekend long. let's look at the 10-year. if it goes to 220 it might get scary. it's at 2.49. that's a big move. 249 is a big move. >> where do you want to hang out over the weekend? i assume people going into this weekend. >> might flat ebb out a little. >> the whole week has been crazy. you call your broker. you're a little anxious. >> whole world buying yield stock. they're not buying tesla or netflix or amazon. >> maybe they should be. >> we'll talk to mark about that too. >> you know who is also being bought? 20% move in jc penney. >> j.c.penne?

i like that. >> fancy. >> is it me? >> i believe it's you, joe. >> you can't pronounce j.c.penne correctly. >> nordstrom. both jumping. look at nordstrom. wow! it's not up as much on a percentage basis. walmart and other retailers, kohl anticipates didn't go as well. this morning jc penney reported a smaller than expected loss and a 6.2% increase from same store sales. 6.2 is still -- that's not bad, though. >> i think walmart had five straight quarters of lower sales. penne is actually doing better. that's pretty good. second quarter in a row meanwhile, nordstrom reported 72

cents. i used to play a piano. >> the thing is moving. >> i know. but there's a couple places where they have those pianos where the keys move. >> they had them at nordstrom? >> if you are a kid and you see that, it's awesome. what is it, replicating piano? >> prosecutors are seeking a six and a half year sentence in the case which involves tips o'dell and vidia. >> that's more than what was initially even suggested, which was i believe four and a half. and that's going to be the debate today in court. >> new opposition has arisen for pfizer bid to astrazeneca. >> everybody except everybody in d.c. >> they say if the bid comes

before shareholders, they should reject it. officials are worried about the 5,000 jobs that happen to be in that country. it's based in the uk. it has roots in sweden. having been formed in 1999 from a merger. so astra was british and zeneca swedish. >> the biggest investors on the planet are unveiling what they are dying and selling. dominic has been going over some of those. he has the lights. >> last hour we told you about some of the highlights from warren buffett, john paulson. a couple of interesting themes, how these like verizon stock. other next three starts off with a man that may have given a nudge to the market down turn after hedge fund manager app look sa said not to be too

freaking long. he notably sold out of verizon. he made interesting trade in the higher growth momentum stocks. he took a position in facebook as well as online travel company expedia. he got completely out of computer storage emc. next up, george soros made an interesting theme attic trade in large cap financials. like citigroup, bank of america, jpmorgan chase. he got rid of those from his portfolio. and omega advisers has been performing well. this time around he made interesting trades. one of which is dollar general. and ebay. he got completely out of t-mobile usa which is still in the headlines and news for

possible deal discussions with sprint. maybe not. interesting themes developing. next hour, guys, we will bring you some of the more interesting themes. >> normally dollar general is not what you buy when you think the economy is going into high gear. who knows in there may be other reasons why he is looking at other things. normally you wouldn't. those do well low end when money is a little bit tight. >> the market has been all over the place. >> let's go back. someone worked really hard on this. let's talk more about the 10-year yield and yesterday's selloff with our guest host mark

okada. >> i'm chief investment officer of highland capital management. >> how much do you have? >> 19 billion. >> how do you feel about that when you go to sleep at night? >> it's hard to sleep at night sometimes. you have to stay up late. you've got to work hard in these markets. the market has been all over the place. and you look at that 10-year move, right? i came out in january and said the market has moved hard. at some point we go to the 3.50. we just keep going lower. >> i don't know what it means. >> the only theory coming to me is the markets are bigger than the fed in the short-term. so technicals, right, the

technicals could be driving this. we have a lower deficit. the sequester. we have lower military spend. lower health care. we have qe still going on. >> yeah. we still do. >> it's a little bit of a supply situation. gosh, i would love to see them. >> we still have 45 billion coming in, right? >> right. so that demand for treasuries is still high. but the supply may be shrinking. >> are you, as manager right now, one of the things tepper sort of indicated yesterday was there are times when you're looking for a return on your capital. and then there's times when you are looking for return of your cap tl. is this a return of your capital phase? would you be happy over the next -- could you do 6% for the remainder of the year and be happy? >> easily. >> you would be happy with 6%? >> those would be nice returns. we have no inflation.

6% is a good number. if you remember what we said in january, we said this market was going to have a tough time going up after 13. >> right. >> fantastic year. >> 30%. >> that's one for the history books. and it's happened. and it's been a little bit of this calm and storm from the big indexes. if you look under the hood, you have all this rotation. you have a lot of small stocks. anything that is liquidity challenged. >> 6% from here on out or 6% for the year. >> you have to get -- >> the s&p is 20 points above 1850 which is flat. >> but you have to remember, i'm a credit guy. 6% in my world from what we've done historically and what we try to do every day, that's

doable. >> that's not going to give you money. i can get 4.5% in verizon. >> hold on. that's doable by buying the index or hustling? >> you have to be active. this is the whole difference. it is sell away, tradeaway. >> you have to work to do 6% for the year? >> is 7 a better number for you? >> no. >> 8? >> no. >> wow. you're greedy. >> i want my money to double in six or seven years. i need 12% a year. >> most people who are sitting in indexes who hustling are going to be sitting where at the of the year? >> i'm not calling for a bear market. but i think we have a consolidation. maybe this is a risk off. >> did you buy any bond funds? what are bond funds up?

>> three something. >> is that all? >> if you have a leverage, you could be up 10, 15, 20%. >> the short etf is down 20% this year. that hurts. >> some people make more money in bonds. >> oh, absolutely. >> absolutely. >> that's the only place anybody has made any money for the most part. >> did anyone say that? >> no. no one. >> that's the point about this market. it is very hard to call this market. >> all right. big kudo if you get 6%. he's really lowered. >> we will slip in a quick great. mark okada here. coming up, million dollar homes for rt summer. given what mark is saying, i don't know if people will be able to afford them. we'll quick off today's real estate challenge. and the impact of today's

election results on one of the biggest global economies and what it means to us. we'll talk about that. and find out what's going on behind the scenes at "squawk box". was it freaking, fricking ofrigin. >> plus, joe got a new murse. this can only mean the latest version of talking squawk the blog. cnbc.com is where you can see it.

welcome back to "squawk box". india has a new prime minister just as polls predicted, the the decisive win by opposition leader modi could a significant economic shift. our next guest says it is likely modi can change things in india. young sus the founder and group ceo of ambid holdings. michelle caruso-cabrera is also with us along with mark okada of highland capital. for those of you who didn't see in the 6:00 hour, give us a

quick briefing what this all means. >> landslide victory for modi. this is a pivotal shift from dominance by socialism under the naru gandhi dynasty that dominated for so long. now a pro-business, pro-market government for the first time, which should hopefully help their issues. he has hurdles, lots of things to get through. a dramatic shift pushed the stock market to all-time record highs. >> does it makes sense that the market is as high as it is now? or are people estimating things? >> there is a little bit of expectation over here. modi is decisive and a clear-thinking leader. he should be able to resolve several outstanding regulatory and policy-making problems that have been ailing the country for the last two, three years.

having said that, there is no magic wand. he isn't going to be able to come and change things. because he needs time. and he needs, you know, ability to be ale to put a team together to resolve these issues. >> so when you say there are certain regulations and other things he's going to change, just tick off a couple of them. >> there are three or four critical things he needs to address. he needs to encourage manufacturing. there are barriers in setting up manufacturing businesses. he needs to ease the regulatory environment. there is a significant amount of angst on tax issues in india. he needs to take a firm view on those issues and address them once and for all. and i would say he needs to come up on a clear policy both in retail as well as generally. because that's low hanging fruit

that can bring a lot of dollars to india. >> we have seen a big in flow in the last six months in particular. the previous government tries to impose retroactive corporate taxes for years. >> we don't do that in california. >> do you have a problem for that? >> competitive bidding on government contracts has been done for many years. new to india. low hanging fruit that could be done. >> mark, would you invest in india right now? >> it is so difficult to get your money in and out of the country. he's right. that is their issue. look, there's a global pot of money out there. it tries to figure out the best place to go. it is vet difficult to invest your money. >> it has to stay for a certain

amount of time if you invest. >> and the primary pay system is all messed up. in the u.s., we know if we're secured, if we're equity, where we are supposed to be. >> how quickly can this happen in in terms of our expectations? >> some of the changes don't need big bank policy. in some ways the significant band-aid he has been given -- remember, this is 30 years that any one party has been given a single majority which effectively means he doesn't have to rely on coalition partners. so he's been given the mandate. and i think he's a decisive individual. some of these things can be easily implemented. the tax issues, for example, leads a strong message out to

the tax regulators to say, hey, listen, we do want to collect taxes. only fair taxes. let's not impose taxes because we have budget requirements to get there. i would say some can be done quickly. >> when you look at the market, is it all priced in? does it now sell on the news? it's been a huge rally. >> i think today's results, despite what anybody else will say, will be a surprise. in egypt, they had 333 mandates along with coalition partners. >> thank you very much. michelle, how did you kpaeurbgize it? after years of socialism -- >> more pro-business, more pro-market. >> any way it could reach the

united states, for example? where we would elect someone. >> we are relative to where they a are. >> is there any way it could happen here some day. >> coming up, getting a loan in the housing market. ceo of quicken loans gives us an update from his end of the spring buying season. football season just a couple of months away. woody johnson, jets owner, gives us off-season playbook. i'm selfish. i wanted to bring johnny football here. woody knows best. a read on the draft and the presidential field for 2016. more "squawk" next. . time now for today's aflac trivia question. which city has the most billionaires per capita. the answer when cnbc "squawk box" continues. aflac.

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e my mom works at ge. financial noise financial noise financial noise financial noise

now the answer today's aflac trivia question. london has a total of 104

billionaires. >> coming up, what kind of summer home can $1 million get you? it depends where be, obviously. we'll unveil the first two houses in the competition. and judd gregg will join into the corporate tax discussion next on "squawk". tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do.

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[ female announcer ] the x1 entertainment operating system. only from xfinity. tv and internet together like never before. welcome back to "squawk box". we are about an hour away from the latest on housing starts. they are looking for a 4% to the an annual rate of 984 units. that's the number to watch for. also out today, the university of michigan's early may reading on consumer sentiment. you can get that at the exact same time as anybody now. nobody is getting that joke. and use of adobe creative cloud sweep has been hit with an outage. many customers have been unable

to get into their accounts. joe has been struggle to go get online with that. adobe working on that issue but did not say when full service would be restored. you don't know what i'm talking about? >> no. >> donald sterling is not planning to go quietly. you had to expect this was coming. his lawyer threatening to sue the nba in an attempt to oust him as the owner. stellar said he would not pay $2.5 million. that was a fine assessed by the league for the comments he made. sterling would have little chance of winning the chase but a lawsuit could delay the process. and this story is just getting started, ladies and gentlemen, i think. >> i don't. >> you don't? >> no. i think it's going to be a long litigation. >> years. >> a long litigation, but not

top of the column. what more do you need to know? pfizer's efforts to move for greener pastures. joining us to talk more about that is former senator and governor judd gregg. we had congressman frank on. we had a calm reason to date. >> that's boring. >> i know. i couldn't get beyond there are clear differences here. i will tell you some of the points that i made to him. and i want to have you address these two, too. the president doesn't want to do anything until we can be revenue neutral or raise corporate tax reform. i showed congressman frank a study that was done provided by aei that shows if you do a curve

because of globalization it used to be higher. 36% might have been a good place to be. but the entire world is below us. we're 40% if you add in state taxes. so the ultimate rate was 26%. and they made an argument to me that economic activity, in sources, investment capital flowing here that it would be not just neutral you it would really generate a lot of additional revenue. because with our 40% rate that we have right now, we collect less than anyone else. we collect collect less than 2% of gdp. it's not working. barney said no way lowering rates ever raises more revenue. >> you are absolutely right. there is no question that if we straightened out our tax laws we would generate revenues. we would get more revenue everywhere if we were to follow

the simpson boles proposal. >> you know, the only time a democrat will quote alan greenspan is the one time he said, it's theoretically possible that cutting taxes could generate additional revenue, but i have never seen it happen. supposedly he said that. >> the post '86 tax cut, which was the last really major tax reform method which we did, showed that revenue grows when you create an atmosphere where people invest. it's just logic. if people are investing for return versus investing for tax avoidance, you get a much more efficient use of dollars from investing for return. and therefore you get more revenue. you get more jobs. you get more opportunity. you get more economic activity. if you invest to avoid taxes, that's in efficient use of capital. and our tax laws force people to invest to avoid taxes. it is especially true in our international tax laws.

because we're not a territorial system unless you have all these major corporations. huge amounts of cash overseas, which in order to utilize the cash have to buy companies overseas and create jobs overseas. >> we're seeing it happen. here's what we were finally able to agree on. this is what he will do for me, congressman frank. we will cut the corporate tax rate. it doesn't need to be within the corporate sector. we cut corporate taxes. as shareholders make more money as corporations do better and as corporate executives make more money, we tax them higher. we get more from them but unleash the corporations. is that anything republicans would do? >> i would hope not. we already have an extraordinarily progressive tax law. 86% of your taxes are being paid by the top 5% of your income makers.

if you live in new york city, your tax rate is probably 60% rate. >> i could even get you to sign off. >> you would do that? >> totally. >> but then you end up with a situation where you no longer incentivize people to invest efficiency. >> you don't have to pay for the tax increases. you have to pay revenue increases. there's by big difference between raising tax rates and revenues. >> so the left, possibly the far left looks at repatriating on a tax hole day. this goes straight

to the piketty the rich getting richer. they look -- >> you didn't read feldstein yesterday. >> i did. >> the numbers are wrong. >> dividends in shareholders, not in the form of infrastructure, spending, new jobs. the question is how do you -- to the extent you're dealing with a perception problem, if you think that's what it is and it's not on merits, what do you do about it? >> the perception problem should be this. did a company like pfizer or apple, which has hundreds of billions of dollars overthe seas. >> absolutely. >> is not willing and not able to bring that money back here to create jobs here but is willing to buy a company in italy or ireland or singapore and create jobs there. why do we want a tax system which encourages that from american companies which would rather bring money here. >> i'm not going to dissuade you

of that. how do you persuade the left that you are right. >> if a company brings money back, whether they put it out in dividends, stock repurchase or build plants and add jobs, it all adds to economic activity. >> the astrazeneca deal is tax driven, at least in large part. having said that, in an environment where we are growing 2.5%. if i'm the manager of a global multinational company i'm looking for opportunities where the gdp will be more than 2.5%. i might use that internationally anyway. this is the argument on thor side of the case. >> absolutely true. but the point is there is no better place in the world to invest than in the united states. our future is so much stronger. because our structure problems are so much less than what the the other major industrial countries have. >> and they haven't invested recently. >> why should all this money be

left overseas? i understand there's an a atmosphere in the left which say people shouldn't benefit from profit essentially. that's basically what they are saying. think about who is benefiting. if you pay a dividend it goes to a pension fund which is probably -- the stock in that pension fund is reflective of the savings of somebody who is -- >> andrew, i also tried to get congressman frank. i even suggested -- and i don't know whether we should bring him back, the repatriated money into a public-private infrastructure. people got mad at me on the right. don't the we need -- >> you wouldn't go infrastructure spend something. >> i would. but i wouldn't do it by saying if you bring your money back you must use it to build capital. >> it was a moment of weakness.

>> if barney and i got together. >> he's smart. >> he's smart and he wanted to govern. same thing as ted kennedy. there are people who want to govern on the left. >> you want to do all the wrong things. >> we need some leadership. we need fiscal leaders. >> we didn't get to talk about your nuclear stuff. >> that's why i'm here. >> i know it is. and the salt conference is going on. is that what it is out in las vegas? >> no. >> they are not trying to disarm? isn't russia there? isn't that the salt treaty? i wonder by scare muchy was involved there. different salt? why call it salt? >> alternative. >> skybridge. we need more nuclear. >> we need a field. it represents 20% of our energy

supply. what we are seeing is some nuclear plants, about 20 to 30, are at risk for being closed because of the dynamics of the time. they are not being given credit for sustainability. >> carbon dioxide? >> do you have to say carbon too? >> you give me so little time that i have to shorten my answers. >> grit to have you here. >> it's a pleasure to be here. >> we have to bring him back. >> i work with him every day. it's going to affect me eventually. >> we're in the middle. >> that's something. >> you'll be back, right? come back and guest host. i feel like you need to shake. like the godfather. i'm waffling. >> you do remind me of sonny. >> i'm johnny fontaine.

>> cfr. for $2.9 billion. >> that's not the council on foreign relations? >> no. some think it is the most evil group in the world. it's weird. i don't know why. headquartered in santiago, chile. it will double its presence in the latin america drug market after the deal. >> coming up, g.m. still deal with the fallout of the massive recall that led to 13 deaths. phil lebeau's special report this weekend. it's a documentary you do not want to miss, 10:00 p.m. sunday night. we're back in a moment. really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175.

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13 deaths, 31 accidents. an&an investigation to find out what g.m. knew and when they knew it. a switch that took too long to uncover and then a recall. a documentary report is coming out this weekend. >> the one question i get is how was it uncovered? it festered for years and how was it discovered?

you have to go back to the case of brook milton, 29-year-old woman in georgia who drove a chevy cobalt. she lost her life as a result of g.m.'s faulty ignition switch. her parents were determined to get to the bottom of what happened to their daughter. and their lawyer made a shocking discovery. t t the. >> they asked us to investigate further, knowing we may never know the answer. >> cooper hired an engineer, mark hood, who started testing cobalt ignition switches he fought from junk yards. when he compared older switches to newer ones he discovered something shocking. >> when he put these replacement switches through the test protocol he found they were almost three times stronger as far as the difficulty to turn the key. he said, lance, you're not going

to believe what i found. and i said what? he said they changed the switch. >> cooper and hood realized g.m. had changed a part, quietly. >> you do not want to miss the cnbc original. failure to recall investigating g.m. this sunday, 10:00 p.m. eastern. that segment with the meltons, their attorney, a lot of people when you watch it say, are you kidding me? they went tie junk yard. they did the gum shoe work of going out and finding out what the problem is. >> but when -- let's say any issue in a car, you find out -- you get -- reports trickle in there's a problem, they the don't always do a recall. a lot of times they will just fix the problem. >> if you go back, you will see hundreds of complaints about stalling g.m. vehicles. >> and that's why they switched because of complaints from that?

>> welsh i think ultimately -- we don't know for sure because general motors has not said why this part was changed. but you put together all the document. >> is that the part? >> not to get too technical. when you start your ignition, if there's not enough pressure from the plunger, it can slip back into accessory position if it is jostled, if there's too much weight on the keychain. which is why people say use a single key by itself if you still has this car and it hasn't been fixed yet. >> they made a better plunger. >> they made one that they could have made originally and then they went back and did it. >> they definitely did that? >> yes. . >> wow. i don't envy any automaker at all. >> when you watch the special you'll see how all of these pieces were there. and nobody connected the dots. and it took the meltons's

attorney sos, hey, this is what happened. and then ultimately you find out what was done and more importantly what was not done by general motors and the federal government. >> enforcement. >> for sure. >> all right. 10:00 on sunday night. >> 10:00 eastern. >> what happens if you're in the middle of the country? >> time zone learned to think an hour behind everybody else. >> or ahead. >> in your view, they are about an hour slower on most issues in the middle -- definitely. up next, a million dollar vacation home. dolly helps you get ready for summer. great properties made for relaxing and entertaining. find out what goes on behind the scenes at "squawk box". only certain things can we really let out. interpreting tepper. was it fricking, frigging or

freaking? and my new murse. i have two words, indiana jones. squawk.cnbc.com. >> look at him.

cnbc million dollar home

competition is back. seven homes. which is the best bang for your buck. since we are just weeks away from the summer season, all the homes are located in popular summer vacation destinations. so here's how it is going to work this morning. two $1 million dollars homes will move on. to make it more fun for the reporters, they're not going to say where everything is. we're going to figure that out after we get a look for this round. check it out. >> a summer getaway, this spacious contemporary is two acres of gorgeous river front. sail from your own on backyard. a scenic beach is just a short bike ride away. this custom built home offers 3,500 square feet of open living

space with riverviews from almost room. cooking won't feel like a chore even on summer vacation. "the master" bedroom has a master bath with a big soaking team, sitting area. and plenty of space for visiting family and friends. it is all about nature and the mag jif sent water views. fish, sail to the ocean from your own dock. this piece of vacation land can be yours for $950,000. >> this traditional style home sits on a secluded 1.5 acre lot. the wraparound porch overlooks the massive yard making it an ideal spot to watch the sun rise and set. this 4,200 square feet features a bright eat-in kitchen. a living room and den, vaulted ceilings and wide open floor plan that leads out to the backyard where you can host

fabulous summer parties. in 5 bedrooms, 4.5 bath features a finished basement with a home theater where you can kickback and relax after a day at the beach. start off in a heated poll, early tee time at the golf accuracy, go to a local winery, and end the day with your feet in the sand. all this summer fun for 1,050, 000. >> the second one is on long a land somewhere. >> yeah. >> the windows on the first one through me for a loop. the formica. >> it's only a million dollars. >> just only.

>> you're right. it is long island. >> on the river? >> bettiford, maine? >> you muff u cheated. i love it. well, both houses are terrific houses for their locations. >> right. >> long island house is in the north forecast. that's kind of a starter area for the wall street gang. this is the million dollar area for the wall street gang. >> i'm buying that house first. much more value than the house in maine. >> i like the river and the like maine. >> maine is terrific. but there are lots of houses for a million dollars in maine. that's a lot of money for maine, i have to tell. >> you a little house for a lot of money. >> it's going to be a tough sale. it's really nice there. it's great there. however, there are a whole bunch of choices. in the hamptons, there aren't all those choices. >> location, location.

>> it rents 60 grand for the season with that house in formica. >> i will get my money back on that house with formica. >> you can't get to the hamptons. >> chopper. >> you're renting? >> yeah. >> you'll take both? >> i'll just rent it. >> you're the winner. long island. north fork. vacation rental, exit strategy, everything about it. >> does it come with all the long island accent, though? >> it comes with long island accent. >> you saw that other house and you thought chiggers, bugs, outdoors. >> there's a deep water dock. >> you don't need fish, worms. >> they have comes of off.

>> and the sunscreen. >>. >> you put a tent in a four seasons room if you're roughing it. latte or au lait?

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will markets recover ahead of the weekend? a closer look at what yesterday's selloff could mean for stocks and treasuries? high prices and low inventory keeping buyers out of the market. and woody johnson jones us on set. we'll talk about the jets draft and who will be the starting quarterback this year. plus, where you can learn more about joe's murse. >> yes! murse. i carry a purse. >> the third hour of "squawk box" begins right now. ♪

welcome back to "squawk box" here on cnbc. first in business worldwide. i'm joe kernen alongside andrew ross sorkin. becky will be back on monday. mark okada has been with us for an hour. right now andrew has your morning headlines. >> i will give you those headlines. >> india's parliamentary elections, the opposition and date won. modi ran on clean efficient government. his win is considered to be a positive for business and foreign investment in india. bombay began rising sharply as exit polls indicated a victory by modi's party. we're watching shares of j.c.penne as we have been seeing. loss of $1.16 a share. that was smaller than analysts expected of $2.8 billion.

comp sales rose 7.4%. ceo said no major changes on the horizon. he returned as ceo last april after j.c.penne ousted johnson. red lobster sold to golden gate capital for $2.1 billion. >> p.e. firm. >> it is a private equity firm. >> $1 billion in debt reduction to darden. a new share buyback of 700 million. just didn't fit in long term with the darden plan? >> you know, there was talk they were e going to start looking at selling certain assets. this is the beginning of that. i need to look through the release. >> i will venture a guess that

you have never been to red lobster. >> that is completely and utterly untrue. i completely love fried shrimp. there is a red lobster on the corner of 7th and 41st street, a block from the building. i have been there several times. years and years ago i went in westchester on central i can't think near yonkers. caldors. there was a red lobster. >> maybe long john silver. >> there was was an all you can eat shrimp. >> ever been to walmart? >> i have been to walmart. >> mcdonald's? >> i love mcdonald's. >> the biggest investors revealed last night. they are buying and selling

their latest. we have new highlights for us. dominic? >> can i just say right now before i start this, i'm with sorkin. some of the fondest memories i had as a child were going to red lobster with my family. >> thank you. >> we went there all the time. we couldn't eat meat on friday so we went to red lobster. >> different between going with your kid. >> cheddar baked biscuits are still good. >> i think i have gone in the last six months. >> that is a total crock. >> i'll give you a credit card bill. >> that is what you will need. >> my treat. we will go in yonkers or something. >> they have fried shrimp. that is very, very valuable. >> sometimes unlimited. >> you remember that. >> along the seafood lines, investor trades developing out

of this season. just a handful here are the ones -- someone caught our attention as a news desk as we pored over all these numbers last night. first, it's a company trade. it's been in the headlines for all the wrong reasons. we're talking general motors of course. the recall issues, the investigations. i'm looking forward to phil lebeau's documentary. we are talking about big names. berkshire hathaway, cooper man's omega. meanwhile, a man who has made a lot of money for david tepper is actually adding to him g.m. stake. a nice trade going back and forth there. we take a look at the two biggest sectors in the s&p 500. financials one of them. there are those who think banks are a buy right now. like dan lobe. he has put on a new position. 2 million share stake in citigroup. like we said last hour, he's on the opposite side of the trade from george soros who sold completely out of citi,

completely out of bank america and completely out of jpmorgan. that brings us to technology. the biggest sector in the s&p. but we're looking at new tech stocks. these momentum growth type names. one that specializes is tiger global. no secret that high growth tech stocks have been hit hard the last couple of months. as of the end of march, tiger sold completely, completely out of its stakes in both amazon.com and netflix. these are larger positions for this fund. it did, however, add new positions in online real estate companies like zillow and trulia. real estate a big theme all day with our million dollar home stuff. all day i'm tuned in. guys, over to you. >> have you ever heard of it referred to that? it is warren buffett's shop.

it is berkshire hathaway. >> it is warren buffett's company. it is an investment vehicle. >> shop. >> how about shopping cart? >> thank you, dominic. >> you've got it, guys. you can always tell someone with -- because we talk about all this ridiculous stuff that is meaningless. someone wants to play along. dominic. he didn't say i have stuff to get to. >> come over, dominic. hang out for a little bit. bring some fried shrimp over. >> you can hang with us for a while. >> the reason i love you guys and this show is because we get to talk about all this stuff i never get to talk about. i'm buying -- red lobster is my treat for all of you guys. >> have you ever seen a place called seafood broil senator. >> no.

>> how about sushi? >> sushi is different. >> he's going upscale on us. >> the producers are livid. dominic, i'm sorry. you can stay. >> you got it guys. talk to you later. >> we'll talk about the action in the market this week which started getting a little scary on wednesday. then it got worse on thursday with some of those tepper comments. i can't remember what it was on wednesday. all of the -- not all the economic numbers have been great. this whole 3% gdp and the uptick in the economy. everybody is worried, wonder tpg things are going along as planned. >> it is what's going on with the 10-year. i think there's a bunch of things that make it an easy read. it's about the ecb in europe. yields so low that there is a trade where you sell your german bonds, go long.

it's not an indication of growth at all. that's the real story. >> what are german bonds. >> 1.3. >> and they were growing 3.3. that's much weirder than us. >> and at the seven-year later, you can get them at the same level as spain and italy. we were talking about spain and italy going out of business. there's no yield partnership in that credit. there is a lot of carry trade that explains this. equity investors are saying never bet against the bond market. you never know. the inflation data, and i don't think we have an inflation threat. if you start to see inflation pick up, that could make people -- >> let's bring bob michael, head of global fixed income for jpmorgan.

that makes sense to me. if it's not our fault, it is europe's fault that it is doing these weird things. is our economy still great and we are growing at 4% for the second half of the year? >> it's always the bond inves r investor's fault. when you look at the it recently, it has been stronger. it's a pricing we cross through 2.5%. i think there are a number of reasons for that. i think first credit, if you want to give credit, foes to janet yellen and the fed. they have done a very good job of keeping the markets calm and using forward rate guidance to suggest they won't do anything damage to go interest rates over the near term. the second reason, i think the biggest reason, there's a new breed of bond vigilantes there. back in the 80s, they would come in and sell the market with when the yields got too low.

you have massive pools of dedicated buyers that are coming into the market and any backup in yields. it is pension funds looking to derisk as their funded ratio has improved the last couple of years. in the front end, you've got hundreds of billions of dollars of corporate cash in the tech and phrma industry trapped offshore that is tired of collecting zero on deposits. so that's coming into the front end of the market. and i agree with jonathan. there's a lot of foreign money comeing into the intermediate part of the curve because suddenly treasuries at $2.5, 3%, is the high end. >> the regulators have also told the banks to move towards treasuries as well. there's a whole tsunami of reasons why there is a bid. who would be crazy enough to buy them at 2.5 yield.

>> his comment about pension funds is a good one. pension funds are very long-term beasts. if they are 95% funded they will be rotating out of equities. it makes a lot of sense. there is someone who would be crazy enough to buy the bonds. >> is this the beginning of the 10% waiting for stocks? i don't think so. look at this earnings season. beat by 6%. corporations just underestimated how strong the environment was in their guidance. >> what do you take on volume? the activity, liquidity in the market has been fairly low. four days in a row, 6 billion shares a day. we haven't seen a ton of trading in here. >> yeah. as a strategist, i don't really look at the trading act. >> okay. >> everybody approaches it differently. i'm looking at the fundamentals. you know, companies are delivering a lot more margin

than anyone thought they would. >> i don't agree. the fund memories really don't say this is where we should be. technical can. the liquidity has been light in there are technicals too where liquidity is pretty00. coming into the start of the year a lot of bond managers were short duration. they were expecting higher growth and inflation. and what you have seen the last few weeks is people being squeezed into the markets. and i think reluctantly so. >> do you remember this guy? ralph agampora. we used to have him on all the time. >> yeah. >> we waffle to call him ralph i can make you poor. i vice president seen him in a

while. >> it is technical. >> all right. gentlemen, thank you. are you leaving? >> i have to go catch a plane. >> we will see you on monday? >> no. i have to go back to dallas and make money. >> cnbc the best network. >> low inventories and high rises are keeping potential buyers out of the game. quicken loans bill emerson next. and woody johnson will talk the jets, the draft, how everyone else did and whether geno is the starting quarterback or whether it could be somebody else. you probably know xerox

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welcome back. futures down 16 points. which is not that significant given the potential for more weakness after yesterday. we're watching the shares of

darden restaurants. they sold shares of red lobster to golden gate capital for $2.1 billion. the move to sell red lobster had been opposed -- >> you asked whether this was something we knew. they had already announced to sell or spin it off. and there had been some commotion. >> without commentary -- >> yes, sir. >> we mentioned some of the buffett stuff. he bought in verizon. it's not him probably. >> it would be weschler. >> 11 million shares. >> they must like verizon. >> what's the total price? >> 524 million. >> that is something ted and todd could have done without

warren. it's possible. >> but we asked about ibm because of the uneven results and the revenue. >> light way of putting it. >> wondering whether he would stick with it. he said, oh, i've been pwaeug it in the first quarter. now we know 233,000 shares. so you can say i've been buying it, right? >> not dumping it. he added to it. >> huge show of support of enthusiasm. >> remember, chevron, he said that was a big mistake and he got out of it. >> we'll see what happens. >> the first quarter for housing was a chilly one. is that a reference to the weather? will the spring thaw heat up the market? numbers at the bottom of the hour.

we are joined by bill emerson, ceo of quicken loans. give us a snapshot where the housing market is right now. i was looking at some of the notes from the conversation i think you had before the program. your sense, and i don't want to put words in your mouth, is there is still such a lack of inventory we don't have a good accepts where the market is. >> well, actually, i was listening to you guys. i think it is all about who goes to red lobster. home prices have gone up. inventory is tight. i think people thought early in the year as we came out of last year the purchase market was going to start to pick up. it's down 16% year over year. inventory might be part of that. i think folks being able to qualify for a mortgage is part of that. the first time home buyers, typically 40% of the marketplace, they are now 25% of that. a lot of factors go into the

purchase transaction and the purchase market. on the other hand, as you guys were talking about the 10-year, interest rates have dropped the past two or three weeks. when you think about a 15-year fixed, 10-year adjustable below 4%. there's still a great opportunity for people to buy. i think people are nervous about the economy. they're not putting their homes on the market. when that happens, unless you get new construction. housing starts come out today. it makes it difficult for the housing market to recover. >> rates have gone better the last couple of weeks. a, does that continue? and perhaps more importantly, when do the people wake up to that if you start buying stuff this summer as a result? >> well, how long it continues is hard to say. as you were talking earlier, the other piece, it's a global economy. what happens overseas matters now. unrest in europe causes quality.

the long-term trends would tick up. i don't think they will tick up a tremendous amount. i think the fed is doing a good job to try to control that. i don't know that interest rates drive someone to buy a home. either they're feel good about their economic situation, which will cause them to do so. people are out there. a whole lot of people haven't taken advantage and they still qualify. still amount of activity in the mortgage application process itself. >> on the larger debate over fannie, freddie and what that means to the housing market, you are where? >> so fannie and freddie, reform has to happen in my opinion. the status quo really can't happen on a long-term basis. theres no capital in the companies. it's all put back into the treasury. >> explain to us what's going to happen then? >> i think right now given the

momentum and what's happening, it is possible to get something done. i don't think you will see a lot done in the next 12 to 18 months. >> thank you. >> great to be here, guys. >> coming up, new york jets owner woody johnson. the latest read on the strength of the real estate company. we will get the numbers hitting the tape at 8:30 a.m. eastern. we are back in just a moment. financial noise financial noise financial noise

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facebook stock. >> this is the mother of all ipos. we're just a day away from the preakness stakes and california crump. you can watch coverage of the preakness live on nbc 4:30 p.m. eastern tomorrow. and then i'd have to go. and the belmont will be run on june 7th. now, if california chrome wins all three, it's the first horse to do that since affirmed back in 1978 when you weren't even born. >> '78 i was born. i was 1 years old. >> you don't remember anything? seattle slew? >> i can't remember anything at 1. >> how old were you at your first memory? >> it's hard for me. i remember things very healer,

3. >> i remember 3 too. >> the nuns were raising me. i have a fear of penguins. >> i did not know that. >> i was at an orphanage. >> we will talk that and also housing starts data after the the break. economists expecting a 4.0% rise. 984,000 the number to beat.

we know we're not the center of your life, but we'll do our best to help you connect to what is.

welcome back to "squawk box". seconds away from housing starts tore april. rick santelli has the numbers. rick? >> here we go. 1.072 million on starts. >> hey! >> that is definitely a nice number. last month had a very, very subtle revision. 946 to 947. that's 13% plus. if we look at permits, it's a million dollar handle. 1.080. that is pretty much better than expected. although we were looking for the million on that. looking for under a million on starts. that puts that up close to 8%. primarily, primarily it's 8% because we had a positive revision last month as well from 990 to 1 million right on the

nose. so this is fascinating. most of the data doesn't auger for this. most of the experts that we talked to are ambivalent about the positive tail winds emerging in housing. so this is going to have to factor in. and the market is acting logically. we see we are back over 250 in the 10 year. many believe that the only dynamic is flows or positions. it is still definitely tracking economic developments in the u.s. and globally. back to you. >> definitely we have decided it is europe. rick, if you can short the german 10-year, go long. >> i think we were the first to talk about the 10-year spread when it shot over 100 base points many months ago. >> it was. because i had a bet with becky about what the 10-year would do. 2.873.

all of a sudden it got to 2.6, i that's not supposed to happen. that was not supposed to happen. and we got to 2.49. steve liesman join us now. global chief investment strategist at citigroup. >> it looks like the bulk comes from multifamily. single family, 649. but only from 644. we had growth in all the regions of the countries, double digit. the south was 1.5% growth. 30% in the northeast. 42% in the midwest. 11 in the pest. housing has been lackluster. >> this is the only stable reading that's useful in the housing starts report. the bottom line, i heard from

from an earlier conversation. new single-family home buying. home buying intentions is really low. the oil industry, the gas industry in the united states, absolutely booming. overall employment is growing above 200,000 per month. i'm sorry, but the housing industry is not keeping up with that. they have to focus on the whole economy. we can't try to stimulate different sectors. >> steven, i put together a list. i really want your comment on this. i looked at all the april data, a little bit of march data. more april data. it has been so mixed. it has been mixed. after i called my better-better, worse-worse list. better-better, payrolls, jobless claims, nfib, ism manufacturing,

services and empire state. on the worse-worse, industrial production, retail sales, gdp, nahb, home builder survey, and vehicle sales. i would like a bunch of stuff on the right. when you talk about the volatility of the market, it makes a lot of sense. what's your take on this list and what it is telling you about the outlook for growth. >> i think the macro data tprb better. and the ones disappointing have real reasonable excuses. take a look at the unadjusted data for the month of april. you looked at the unadjusted data. it was markedly stronger. a boom in march. and settling down in april. none of that is for real. insurance claims are the best real-time indicator of what's going on in the economy. to plunge through 300,000 is a good coincident indicator of activity. it doesn't mean we will grow like this forever. but we will have a strong second quarter. >> let me show you what that

means. moody's analytics, two tracking surveys. first quarter and second quarter tracking. they couldn't be more track. minus 0.4% for the first quarter and 3.7. a good economist would average the two together and came up with lame growth at 1.6. >> the problem is the consensus is to strong. this is a problem for markets that getting upside surprises when the estimates have now picked up has become very, very difficult. >> where are you through second quarter? >> 3.5% growth. you hear everyone talking 4 and 4 beyond. >> right. >> i think we can do 3 for a good period of time in reality. >> all that growth, that negative number, which may not end up negative, that's all negative to you? >> there is a shift in activity for that. some of it is permanent loss. we had an extremely disruptive winter. some was in the fourth quarter.

january as well. that shifted activity. >> rick, sorry to keep you out. >> i'm just groaning about the weather. i know housing numbers aren't bad. they have really been bad. we haven't had the jump. season ality had much of it. >> i see 16,000 four handle on the dow. we better have some leading to the better, better camp. to me the issue is so plain. we have a sector in the economy that most people consider synonymous in the form of equity markets. they have been performing extremely well. no surprise that the data better get better. the asterisk the bond market is telling us is true. far fewer in the worse worse.

sustainability. we are learning in europe, manipulating and managing rates is not fixing economies. boy, i agree with joe. i have been saying it all along. stabilization without reform is just a hiccup. >> everybody agree witness stand that. >> thanks, rick and steve. better better. >> better better. >> i like that, steve. that was good. >> i have a thing to go with my thing. >> better butter bought some butter that was bitter. >> would you do it in the camera at the break? >> if you paid me. >> coming up, we will see how many times we can say that sentence. we'll take you inside the nfl owners box. the new york jets woody johnson

is here. he'll talk the draft, the upcoming season. find out what goes on behind the scenes at "squawk box". was it fricking, freaking, friggin? >> it can only mean that the latest talk in squawk blog is out and published. check it out on squawk.cnbc.com. e financial noise

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the nfl draft is over. for the new york jets, the question that's been dominated not just social media. there's more to life than social media. the papers, everybody is talking about. who will start at quarterback? chairman and ceo of the skwroets woody johnson joins us now with more on theup coming season. always great to have you. joe montana was short. watching johnny manziel and seeing you guys saying no, i just didn't know what i liked it. did you think about just bringing him here for the heck of it and giving it a shot? >> we was an exciting college player, that's nor sure. we went right down our board and calvin was our guy. calvin pryor. johnny was exciting in college, no question about it. >> i heard jerry jones -- >> do you think there is anyone who will regret? we don't know yet.

>> we don't know. there were a lot of stories floating around. that's the nature of the draft. >> okay. now we have to decide. geno had moments of brilliance. is he the guy? >> geno looks good. he has been spinning ate at camp. he is a lot stronger. >> why get michael vick if he's not startng. >> he's pretty good to have in the room. we're definitely going to have competition. >> there was nobody -- this is the guy you wanted. there was nobody that got picked ahead of you that you were going to pick? >> no. there's a few -- >> you knew you were going to be

go gone. >> yeah, they're gone. we didn't think we would get pryor. hard hitting good leader on defense, he will be great in the secondary. you will have to account for him as an offensive coordinator when you're playing the jets, that's for sure. >> do you feel the worth of nfl and the jets. have you ever been more interested in the draft? >> it is incredible. i think from the season -- end of last season, there's just really nothing. >> as we get older, our lives aren't quite as interesting. maybe yours is. i crave content, sports content. >> can we talk another sport, don sterling. you heard he is now going to

contest the situation? >> i think the good news is i'm going to focus on the nfl. it's a complicated issue forrer sure. i think the commissioner did what he thought he had to do for that time. >> was that the right call? >> that's up to the nba. >> you're going to leave it there? >> we have to focus on what we do. >> it is going to go on for a long time. >> the franchise itself with him owning it -- people aren't going to go to the games. he can't be the owner anymore i don't think. >> but then again, in this country you say you need to sell private property because we're telling you to. >> what's the rule of the nfl? >> what's that? >> if there was an owner in the and this situation happened, could they effectively be voted off the island if you will?

>> we will have to approach that if it came. let's hope it doesn't happen. there is a certain decorum in the rules. it is up to the commissioner and the league owners to determine the outcome. >> did you know sterling at all? >> no. >> thursday night is going to be big this year. it's a one-year deal. the other guy played for the wrong time, didn't he? >> they broadcast and selected cbs. >> who is the broadcaster, bob kraft? >> there's a number of us on it. >> wait. you're on it? you voted for cbs. >> we did. we thought it was the best opportunity with the talent and

producing the preseason game. >> it's only one year. what happened? why did you lose then? >> what? >> don't say lose. >> you said you voted for nbc. >> no. cbs. >> what? you were shaking your head for the wrong reasons. he was confused. >> i thought he was congratulating me. >> no. >> you thought they were better. even with the success of sunday night. >> there was a lot of good bids. that doesn't mean in a year we won't look at that again. >> you can look at it again. >> when does it go digital? >> it's not ready he yet. you tell me. >> two or three years i could see a package. >> two to five years. three to five years. >> well, you know, when roger -- he seems to have a really good -- goodell seems to have a

really -- this is shiny. you don't want to squeeze it too hard. chris farley. remember that? "tommy boy." he realizes how precious this is. too much can be a good thing. >> thursday will be good. it will be a destination. >> slowly roll it out. >> yeah. >> because you're in a sweet swat. you saw the olympics. >> unbelieve be. >> you can't dvr. >> right. >> you want it live. >> yes. >> giving you the handshake back, woody. thank you. are we done? jeb, christie, rand paul. any ideas where this is headed? and i should say you are a

romney guy, a republican general. >> there are a lot of good candidates. nobody has emerged as a definite leader tip. we'll find out on. we don't know who is running yet. >> do you think christie has a chance? >> maybe his associates thought -- it's not even comparable. it doesn't the even come close to any of these. do you know who will make it come close? you and your friends. right? the mainstream media. >> chris christie was the second coming. now because of that -- are you

serious? >> that's not my argument to make. >> absolutely has a chance. >> you can't live in a world where did you loved him before -- >> i think there's a real question. >> what's the question? >> the question is whether the public will support him. >> that is absolutely true. and coverage does sometimes benefit one party more than another. >> to the extent that he was supported -- >> people thought he was in the center. you take the coverage of hillary and the coverage of christie with the liberal media. see any difference there? >> i'm together to not comment. >> call jill. she'll pick up the phone. >> that's not nice. thank you, woody, for being here. coming up, jim cramer will wrap up the week on wall street. take a look at the futures, by

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what is this place? where are we? this is where we bring together reliably fast internet and the best in entertainment. we call it the x1 entertainment operating system. it looks like the future! we must have encountered a temporal vortex. further analytics are necessary. beam us up. ♪ that's my phone. hey. [ female announcer ] the x1 entertainment operating system. only from xfinity. tv and internet together like never before. welcome back. let's get down to the new york stock exchange where jim cramer is hanging out this morning as he always is. jim, red lobster, darden, do you

have a view? >> complicated transaction becauses there's also a real estate investment trust involved to give them money. this is a money loser. i think this saves clearance otis' job. the buyback coming, get this thing losing money off the sheets, it's a win and it's a lot more than they were going to get if they just spun it off. congratulations. i think the move has been pulled off. keeps his job. stock might go higher. >> broader question about the marketsp people always get jitt jittery. nobody knows what's going to happen over the weekend what do you do given the way the week has panned out. >> the tepper story resonates. dave tepper is a great manager. we have a housing start today which says if you thought that this -- the bonds are going up, interest rates down, because of mortgages, maybe rethink it. i think that this number is

going to make people feel like you know what, this big rush in the bonds, which is really what's causing the weakness, may be more about a bond shortage. high quality bond shortage than weakness in this country. jc penney and nordstrom to the mix, maybe walmart is executing badly. i think you put it together it's not so bad. i wouldn't be so concerned. >> who would you start if you were woody, were you watching that? what do you think? >> i go to training camp every year, i watch vic in action and know vic, and vic is exactly what he said, which is good to have in the room but vic has lost a step, he would argue with me on that, and geno is the quarterback of the future and surprised to hear there was going to be -- woody said a quarterback controversy. no way. vick is not a good starter. he gets hurt. >> we will see you on "squawk on the street." as we go to break, real quick, the defense department and nhta holding a news conference, say they're going to make a major announcement regarding the

investigation into gm's ignition switch recall. also summer blockbusters brought in 5 billion at the box office. how will this year's offering stack up? a preview of his summer's hyped movies. [ female announcer ] working together means working efficiently.

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the summer movie season has arrived. new offerings this weekend are headlined by a mega munster reboot. cnbc's morgan brennan joins us now with more. i hear there's a munster on brian cranston's head too in this movie. >> there is. . if i had to sum up the box season in three word, they would be apocalyptic, sci-fi and superhero. take the weekend's big release. that's godzilla. accounting for over 90% of fandango's weekend ticket sales, on track for $65 million in the u.s. this opening weekend. so a solid start for the warner brothers distributed remake. so far this year, box office ticket sales are up nearly 5% to $3.5 billion and that momentum bodes really well going into the summer season. may through august accounts for nearly 45% of annual box office revenue in the u.s. so the number to beat, $4.7

billion. that's last summer's record total. this season it's all about marvel comic book characters. the film license belongs to different studios even though disney acquired marvel in 2009. 21st century fox has the new "x-men" installment, sony's sequel which is out has raked in $153 million domestically and after breaking records in april with "captain america" disney's got "guardians of the galaxy" and "ma live sant" a new take on "sleeping beauty" and viacom, fourth installment of "transf m "transformers" expected to post big numbers here and china where it shot certain scenes and the last one pulled in $1 billion worldwide. my personal favorite -- >> oh, no, no. whoa. chill. just a mask. >> okay. that's "teenage mutant ninja turtles" one of the most li

lucrative franchises. sold more alsoed toys last year than "star wars." back to you. >> okay. >> all right. thank you very much. i guess we're done. we got to go. the director of "godzilla" protecting the planet against global warming. >> we got to run. have a great weekend. join us on monday. "squawk on the street" begins right now. >> did you know that? ♪ good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. looking for some relief from yesterday's tumble. worst day for the dow in five weeks, futures are stable on the back of a good beat in housing starts. consumer confidence this morning. ten-year is right around that 2.5 level. a level by the way that bill gross says seems fair for now. we'll talk about