of activity, but come on. >> dan, thank you for joining us today. that does it for us today. everybody have a wonderful weekend. make sure you join us on monday. remember thomas pickety will be here at 8:00 a.m. talking about the book that so many have been talking about. time for "squawk on the street." >> good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. the final trading session of may which is actually closing out pretty nicely, futures are weak this morning, all three averages up five of the past six days. ten year yield a boost back to 2.46. april core pce up 1.6. although consumer spending a bit of a disappointment. europe down a touch this morning. going to our road map with your last chance to sell in may, another record closing high for

the s&p. still some market moving data to come this morning. >> what rivalry microsoft and sales force announce broad product alliances. a strategic partnership. crm the stock benefiting. >> speaking of microsoft, steve ballmer buying the clippers for $2 billion. the highest price ever for an nba team. don't break out the champagne just yet. talk about that big story. first heading into the final trading session of the month, the s&p another record closing high up almost 2% for the month and nasdaq up 3% and the dow in positive territory within 37 points of its all-time intraday high. markets still have economic data to digest. chicago pmi, and speaking of the economy, steve liesman will have a live interview with philadelphia fed president charles moplosser in the next hr of "squawk on the street." we're the only show that brings you plosser, teddy bridgewater

and will.i.am. the stuff you did out, just gripped and learning. there's learning going -- we need to learn. that's what it's about for east coasters. >> as i said this morning on twitter the two biggest areas are technology and chicken. i mean, that's the sweet spot of our economy right now. right? >> yes, it is. >> i got to tell you, this food war, this food fight, is for the heart of the slowest growing industry in the world, which is food, and you are at the fastest growing industry of the world, which is it technology. >> what's your thought as we close out may here. dow actually for as we said earlier middle of the month was tough, dow has almost identical gains for march 0.8, and 0.7 for may. >> i'm an old-fashioned guy. the transports, five straight up days, transports led by airlines. i think the stocks are going higher. the rails. those things are doing well. you look at the ups, fedex,

they're doing amazing. you do not have the kind of action in those unless there's goods to be shipped, i come back to what union pacific ceo jack core less ski told me, business in this country is good. there's nothing like good because too hot and we lose the fed. too cold and the earnings aren't made when we see them pretty soon. i like it here. >> you like it? >> i like the economy. now look, there's a lot of stocks that have moved so much i get nervous. i get nervous to come in and buy. i'm not nervous about a sell-off. the guys that called for the 20 to 25% sell-off, said may are bad, june is the tough month. june has been a tough month. in general, when i look at retail, they bounce back. when i look at the industrials doing quite well, maybe europe comes back on-line, what i see is, stocks aren't expensive versus treasuries. >> i'm thinking of a pacific sun today, of an express, i'm thinking of an annie's. why are some of these

consumer-related names -- >> annie's had a material weakness. there was an accounting problem. they didn't deliver gross margins because they use organic wheat. express, i -- they are such nice people. the look is so bad. they just don't have the right inventory. i'm not kidding. the inventory, they gave me, carl, when they came to see me, they said you got to start wearing skinny ties. this is as skinny as i'm going to get. their look is like fashion forward for the 16-year-old. that person kuz does not dress well. zuckerberg is the enemy of express. >> yes, he is. >> the enemy of fashion in general. >> given hundred million dollars to schools in san francisco. >> not giving it to the fashion institute of technology. is. >> pacific sun that's a tough number, you have to cut numbers so low like abercrombie to say hol owe cow, to say a shopper went there. >> apparently two or three.

>> maybe two or three. but generally we talk retail yesterday, it continues to be sort of a key question mark, i guess i would argue, because there are so many different data points, some strength in certain pockets. overall this overarching theme we've talked about again and again, that david berman brought to us last august. >> the paradigm shift. >> used to be a women's clothing store called hit or miss. how about costco yesterday. first looks like -- you know costco well. looks like a miss. you digest the quarter and the quarter gets better than expected. the sign-ups are terrific. you say wow they're opening a few more stores than i thought. growth again. next thing you know the stock is a push. kors top line number looked good. 96 to 99. herb greenberg does a reality check, wait a second, an inventory problem. people talk about inventory problem. people defend kors. these are battlegrounds. where is there no battleground? dollar tree. no battle ground. nordstrom. >> love coming back to that dollar tree. >> you do.

>> love that. >> like the 905 dollar tree -- >> got to mention dollar tree now. >> i will be at dollar tree tomorrow morning because every weekend starts with -- >> candy. >> they have throwback candy. those brands -- >> cow tails, that kind of thing. >> boston chew. >> they have the small and large. put in your freezer. >> do you know my shopping plan? >> one thing is goldman on apple. their note is titled, the next big thing isn't hardware. increasing confidence that cash flow can remain robust. target goes from 6635 to 720 on apple. >> we don't talk -- everyone was talking beats. which by the way i'm not fighting. i think you want music to come alive, get the two best musicologists, i was out with bo dietl last night, it would fit with his thinking. >> he talks but would make a word up -- >> like musicicia in, s. look at the iphone numbers and

see the components, iovti thought to have lost a lot of cell phone from apple but did well, what i'm saying the iphone is doing well and people have to recognize that it is and that was actually a very good product. people are not understanding that apple all it had to do was go from 12 times earnings to 14 times earnings to get to where it is and tim cook, i will say it right here right now, doing a darn good job. >> oh, don't you it. >> come on. you want to say that because the stock is up. >> any different than doing six months ago or a year ago. i just like that clip. right here. >> is that good. >> look the stock is a straight shot up from last year. it's up 1 -- >> he wasn't as bad as everybody was talking about a year ago and wasn't -- >> no. hear me out. he knew itunes had to fix so he fixes itunes. he knows the retail stores are

not doing well and brings in aaron's. one after another. he listens. there's nothing the matter with listening. you ought it to try it. >> oh. i do a lot of listening. >> that was just a cheap shot that really was completely wrong. >> thank you. >> i take it back. i take that back immediately. you listen incredibly well. >> okay. >> the other big story this morning, somewhat regarding tech is former microsoft ceo steve ballmer buying the nba's los angeles clippers for $2 billion. that is a record price for an nba team by far. the agreement still needs the approval of the league's board of governors. it was announced by shelly sterling, the estranged wife of donald sterling. nba bans him for life because of the remarks he made in a recorded conversation. sterling paid $12.5 million for the team back in '81 and up until today the record was for the bucks at $550 million. this is almost four times that. >> well, steve, old friend, business manager of the college paper when i was the editor in

chief. we've been friends -- >> many, many years. >> oh, yeah. and he finally made the acquisition. i wish they made the $2 billion acquisition of microsoft other than skype. here's what you need to know about ballmer. we went to our reunion together a lodge todayal study, a fancy term for looking back to see what we're thinking. what did people say? did they want conjugal relations with the partners, no, kids to great schools, no. wealth, no. they liked vacation and time off and he looked at me and said, have we ever had -- have we ever taken vacation, ever done anything different from our job? have we ever stepped out. this is a step out and a half. $2 billion step out. >> a big number, huge number. these are not typically buys that have a great deal to do with the underlying economics. they are much more about, as you say, sort of pursuing something you want because you have the money to do it. >> a dream. >> that being said, often times the exit does end up being

higher than the entrance in terms of what they pay for these sports franchises. by the way, mark lasru who bought the bucks has to be feeling good about having made that purchase not that long ago at $540 million. >> no. >> the clippers are a much -- with the tv contract with l.a. >> that's important. >> a franchise in ascendants with the likes of chris paul and others on that team. >> part of the commission awarded them a team. >> interesting to look at who buys sports sneems they're vanity. he's not doing it to make money. >> no. >> one of the things that steve did so right. i put he was deserving. people hated me. can i tell you the man has spent his life trying to build microsoft and he always bought more stock during the formative period. >> i think microsoft might have been happy he bought the clippers as opposed to nokia.

>> that raises an interesting question. would there be a better return from the clippers and perhaps so. >> yeah. >> by the way, you know what, salesforce.com, ballmer and benioff not that close. what happened? steve goes and buys the clips and salesforce.com partnership. >> not a done deal yet given the relations. the clippers between sterling and his wife and the nba and how that's going to fig per in here. not yet -- >> kitchen table discussion. >> money talks. >> when we come back, nfl rookies in the business of football. we'll talk to the quarterback of the minnesota vikings, teddy brid bridgewater first pick in the nfl draft ha who has done more to win games. >> not marcus smith, the defensive end, our first pick from the eagles is not in. all right. never mind. >> also, at 11:00 a.m. eastern pop star black eyed peas front man will.i.am, the deal from

apple to buy the company. a lot from most pine in a minute. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

software maker

salesforce.com struck an agreement with microsoft that will allow applications to work on window devices and within microsoft's popular office software suite on what's been a big week for benoff. >> i think that mark, one of the driving forces here, marc, the ceo, bought [ inaudible ] that's a great indianapolis company, besides the colt, huge company, which by the way has employed a lot of people, exact target a marketing arm of sales force, built on a microsoft platform and i think exact target if you sit down and read where benioff, one of his major initiatives, his exact target, you needed the microsoft platform to make this work. in the meantime sales force, some people would say it's a trojan horse for sales force. i think marc goes out of his way in the conference call, it's the technology that is trem pal, and a lot of it is just kind of like a piece in our time because marc

did call microsoft the evil empire. it's going to work for both. if you ask me who benefits i know maybe -- look -- >> can you ever imagine steve ballmer doing a -- >> couldn't have happened. >> similar -- >> steve as i know from the days when i first met him, intensely competitive man. and it's always zero sum with steve as it will be in the nba if he gets that franchise. zero sum. this business is about cooperation. i want to ask you a question, when you were out there, aren't you surprised, while companies tend to hate each other they don't. they work together. >> funny, kind of like politicians. you know, there's a disconnect between their public personas and private personas. but it can get nasty. but then they'll -- you see them hugging in the hallway. on crm, 54 is still a long way from 67. >> well, i mean, you know, salesforce.com you take a look at a company called splunk today and splunk, which guided higher, didn't guide high enough. i mean this is the new -- now

sales force did guide high enough in the last quarter which is why it's been reversing. yeah, the enterprise to sales -- sales force is cheaper than software to service companies, splunk being the -- >> splunk is getting a little -- >> it's cave dwelling today, splunk. >> although when you hear about consolidation conceivably in this area as i've learned, starting to bubble up lately -- >> what are you hearing? >> not talking about spike deals but a general conversation -- specific deals but a general conversation -- >> talking about cooper -- >> we talked about this yesterday. splunk is another name that comes up. >> not as much. this quarter showed a slowing of growth. there was a degradation of the increase. one of these things it's doing well but not as well. and i don't know how well they cooperate with others. it's funny, i met with jim mcnerney, ceo of boeing, i said when you guys get together, like air bus, i mean it's kind of --

it's collegial. no. you like each other. no. i don't hear that in tech. i hear like -- if you read through the salesforce.com, this is like these guys are brothers. the -- >> i'm not sure i like that. i don't know how i should view that as a shareholder. >> a sense that especially -- >> don't want them on their throat? >> there's always the chance you could go work for that company week after next. >> that's a good point. >> there is a lot of revolving doors. >> and there was collusion to make sure nobody hired anybody else. i mean they sort of -- >> that's right. i forget about that. >> tend towards that as well. not crm, i should say, in general, apple, obviously we know, under steve jobs. >> benioff is a guy, worked with steve jobs, worked with larry ellison, never really had a close relationship with microsoft. it's not coincidence that steve ballmer steps out and the company -- the new company reaches out. >> no. >> i think is a man of peace. he comes -- a man of peace. like ten bears in outlaw josey.

comes in peace. >> not always a good thing. >> ten bears does not get enough play on our network. >> we want to mention brad ruben, the tech manager for us at the nyse, makes all the tv you see from this exchange happen, and his wife lauren, have announced the birth of their baby girl melanie ann ruben, born thursday at 10:00 a.m. 8 pounds, five ounces. >> total m >>. >> mom and baby are doing great. we miss you. hurry back. >> cramer's mad dash. count down to the opening bell. we'll take a look at the premarket on this friday. we're back in a minute. cialis tadalafil for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure.

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♪ got eight minutes to the opening bell and the last day of trading for the week. certainly this week, a shortened week. one of the highlights was this not unexpected but the battle for hillshire has been incredible. of course yesterday we get the $50 a share bid from tyson topping the $45 a share bid from pilgrim's pride, trying to break up the deal under which hillshire has agreed to buy pinnacle foods, a deal not well received by its shareholders when first announced a few weeks back. a lot of complexity here, but one thing we know, this stock has moved a lot higher. >> yeah. that's why bernstein says downgrade but follows up with a higher bid is coming. this is an amazing thing. at these levels, this was the sara lee, they had spun off the

coffee -- >> right. >> a lot said this company is dead in the water and the brands are dead in the water. ballpark franks, what does that have to do with snarl jimmy dean sausage, what does that have to do with organic? what it has to do with is aisles of the supermarket where you cannot grow. the bidders are really stuck in a certain part of the supermarket. they have to crossover from the commodity side to higher value. they need hillshire, both of them. >> talk about globally protein is a big deal. and global growth in protein in your diet, regardless of whether it may not be organic or natural, but certainly some of those brands you mention, do deliver that. the brazilians control pilgrim's pride, they own 75% of that. >> right. >> tyson is the lead bidder. a key to remember when it comes to m&a strategy, they've got to figure out a way, hillshire, to get out of the deal with

pinnacle. >> pinnacle. >> it's a relatively small break free. you don't pay a break fee until you have a deal signed up. that's -- >> pinnacle, pass our break fee if you want us to go away otherwise we're going to stay in our deal. >> this is a deal. someone has to buy pinnacle. pinnacle has kind of checked out. someone has to buy them. i want to know who. because so many companies are shedding the assets in this segment. pinnacle has to do something. so let's not lose sight of the fact that it's got a good yield, good management, bird's eye is a good brand, somebody teams up with this. >> right. i'm not sure who buys pinnacle once the deal breaks. i think it will break, of course, between -- >> it may take a little while because it's -- they've got to deem one of those other potential offers superior or leading to superior proposal which clearly it will. nonetheless not like they can make it happen right away, i wouldn't think. because if you're pinnacle you're going to say, pay me my

break fee right now. >> i like the brands of pinnacle more than hillshire. >> really? >> yeah. pinnacle was able to make this vegetable -- trying to get natural and organic with bird's eye. vegetables are actually -- you want protein, still prefer vegetables. better for you. >> you should see what his salad looks like during lunch. >> are you kidding me, $16 salad. >> i was wondering what you pay. like this high. >> ought to buy stock in airmark, 20 million shares offered 25 and change, looks like it's a good deal. >> unbelievable. >> the opening bell, knows all of those different things, about 4:30 away. back after this.

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♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade. you're watching cnbc "squawk on the street" live from the financial capital of the world. the opening bell in about 90 seconds. it has been a challenging may, but a pretty good finish. all the major averages up five of six, nasdaq on track for its second winning month of the year and a 3% gain. we should mention, jim. volume has lightened up the past few days. >> yeah. >> as we set the new intraday highs, want to take a because or

not? >> so many stocks at the top end of the range you better have a catalyst. what's going to happen, you're going to say, all right, i'll go buy -- let's take rail, csx. there's no news coming csx. you're playing the unemployment number next week? you're playing a news vacuum. a news vacuum we've gone about as high as you can get. in a news vacuum. i'm not talking about some big negative pullback. i'm saying, there's no news. in june, there's kind of nothing happening except for big macro numbers. and, for instance, here is a good example. i'm worried europe, everyone's all excited that there's going to be a rate cut or whatever. what happens if they don't do anything that matters. then you come in on thursday, selling the market down. i was reading a story in "the new york times," railcars, people read that store and say there's a shortage in railcars. i'm going to buy trinity. have you seen what trinity has done. shah near gets the benefit of the doubt of the u.s. department of energy. look at the stock, come on, too late for some of these, guys. >> transports have been

unbelievable. >> yeah. >> we'll keep our eye on crude today too. back below 103. >> i'm worried about -- >> what a story that's been, right. >> the opening bell. on this friday. a look at the s&p at the top of your screen. down here at the big board, hosepira celebrating ten years listed. at the nasdaq, aleniam, pharmaceuticals doing the opening there. >> you want to see if sales force goes higher. measure that against splunk, against a lot of the workday reversal yesterday. the soul of the market about old technology versus new tech. do you want microsoft old tech or sales force new tech? i think new tech has run out of gas again. i think they went up a lot, had a nice bounce off the bottom and then they're coming back down. splunk, i think is emblematic of a company putting up great numbers and people say i don't

want it. info blocks, hey, supposed to be big data management device. look at info blocks sold to you. info blocks has been blockedp. they blocked the things. they've splunked and blocked. info blocks, one of the splits that apple is going to have. oh, that's nasty, isn't it? if you're long info blocks. not been a good run. >> market induced split. >> space mountain. >> tower of terror. >> yes. that made me sick at hollywood stud studios. >> big, 50 cents beats by 6 cents, positive comps, first time in two years. >> i was shock. my big lots, maybe they've cleaned it up since the last time i went. i didn't like the way it was thrown together. maybe big lots is getting its act together. >> com the up 0.9.

>> costco did a 5.6 number, i thought the stock should have been up. look at the comp numbers. people are excited, abercrombie was down and people excited. >> it's abtsds expectations. you know that. >> i like that. >> i see you learned something. >> it's all about the money. it's always about the -- >> always about the money. $2 billion for steve ballmer and the clippers, about the money. lionsgate, by the way, lg f, not so good either. down 10% this morning. >> i know. spending a lot of money on divergent which i think is going to be good. a lot think it's going to be like hunger games. >> adjusted ebay da, $29 million for the third quarter. people not happy with it, below estimates. >> you know look, sometimes you have to spend to win. people are spoiled by disney. disney has the rollout of movies. never hear about a movie that costs too much since the john carter fiasco.

people want to do -- lionsgate as disney. no. disney is disney. >> disney is disney. go back with lions gate you will see a stock that's -- >> been a nice run. >> "hunger games" run. a lot of people feel there's not going to be "hunger games 9". >> does fig near conversations about consolidations on the programming side. unclear whether they're going to try to buy stuff or be a part of somebody else buying. >> prey or predator? >> i'm not sure which. >> no. >> that conversation will pick up steam. >> wait until "divergent" comes out. no such thing as "frozen 2" at lionsgate. i think "divergent" will surprise people. >> it's been a few things since dick's came out with their quarter, tough things to say about the golf and hunting business. the ceo making his first insider buy since 2008, buying $4 million worth at 42.56.

>> i think he's lost his way though. think he made a big bet on golf, doubled down with galaxy didn't work. he made of what some people call an ethical decision to take out certain rifle ps in his store. that's why i like cabela's more. in the end they should have done better. i hope he has something up his sleeves. the stores don't seem to. >> the macro data, we mentioned income the smallest gain this year. >> oh. >> spending the biggest drop in a year. and then core pce showed the inflationary pressures we're all worried about. >> look. there was nothing good about any of the numbers i saw and it doesn't seem to translate into anything. i mean, again, we -- we've been getting numbers that are so mixed. yesterday we had that gdp number. it was clearly bad. but then we had a good job number. mixed data is good. mixed data keeps people on the sidelines and not freak out. it's hard to see a lot of wage inflation. but you know what, you look at

annie's today. now it's a complete disaster and some of this again is the accounting they use for supermarkets. very bad. material weakness. this cost of wheat, of organic wheat, does matter. the cost of natural and organics, i have sin nop ta on the other day and they do a lot, they have the big sunflower franchise, when you use organic and natural farming, you lose a lot of product. and it's more expensive. the companies that have had a free ride here on natural and organic they're discovering it's costly versus popeyes, which is not as good for you, but put up fabulous numbers. had them on "mad money," said sometimes when you go out you want a treat, food that tastes good. popeyes. >> yes. not soil and green apparently going to come soon. >> and not to serve serve -- >> s&p, 1917, four straight

days. bob pisani of intraday highs. >> you know what, this is really confounding the whole sell in may and go away idea. i've been talking abililt about. at least for the month of may not working. 2014, we're up 1.9%. still got the rest of the day to go. 2013, we were up too. 2012 we were down. it's not up here but 2011 and 2010 we much down, 2009 we were up a little bit. mixed record here with sell in may and go away here. there's been a huge differential in the s&p, you should see the price differences in some of these, retailers have had a horrible month. so target is down almost 10%, coach is down, staples is down, tjx is down, it's not just some of the other -- really across the board. walmart has had a terrible quarter. down close to 5%. there's avon down about 6%. there are a couple standouts in the retailer. tiffany had a great month. terrific numbers. japan that did it by and large.

tiffany's on the upside. the winners, smaller names in the s&p. airlines and home builders had a good month. you see southwest and pulte doing well. here's the problem. these are relatively mid to small cap names. you need big names to move the s&p. big market cap. here's one, eog, some of the big e and p companies had a go ahead month and this is one of the -- good month and this is one of the reasons. eog, for example, had a terrific month overall. look at that up almost 9%. essentially a historic high. down a little bit today. don't worry about that. overall a good month for that company. let's just talk about the retailers. ann taylor, i know they talked about all this restructuring, but the flagship store down 2.3%. that was a bit of a disappointment here. sales picked up in april. the guidance, basically in line with expectations. that may be the reason that the stock is opening to the upside. big lots had a much better overall number. much better.

0.9% comp store sales. that was a surprise, a discounter like them essentially giving positive comments and overall, raised their goodance for the full year -- guidance for the full year. this company has bought back 3.3 million shares so far this year. that's 5% of the shares outstanding. they're a huge in the buyback area. guys, back to you. >> that's not even half the year. >> no. >> buyback is very interesting. want to move on to cheniere energy, the stock we saw it before the opening bell, it is up this morning, largely because of a department of energy public comment period under which they are considering changing their procedure for reviewing some lng export applications under the proposal the department of energy with would forgo nontrade agreement export reviews until the company is ready for final action. what does that mean?

guggenheim has put a note out, the proposal is favorable for cheniere, given the advanced progress of its enormous terminal in louisiana which it's going to be exporting liquified natural gas. cheniere in the news this morning, the journal talking about its long-term incentive plan and something i've been looking at for some time as well. there's going to be a vote on it, i think it's june 12th. shareholders. spoken to a number of the larger shareholders here. a good deal of opposition to a long-term incentive plan that would give these -- the owner, particularly the ceo, as much as -- they say 1.9 billion, could be as much as $4 billion. now that would have to be hitting every target, and obviously performing extraordinarily well. having the stock price do extraordinarily well. sort of this preferred return built into it. this performance based equity incentive plan as i said. it could be at least 30 million shares more, pp what's interesting also, it's set to have started on november 1st,

given the performance of cheniere, where the stock price is now, they're starting with a floor of 35. so they're starting off with a heck of an advantage. >> right. >> and there is some significant opposition, not to these guys paying themselves extraordinarily well, because they have created a great deal of value, but conceivably taking as much as what could be, i don't know, a third of the company. >> yeah, i was kind of shocked at this. shareef made -- did more than $100 million and he's been on the show every -- pretty much every quarter since he started the this project. look, in his defense i would say it was at $8, no one believed him, critical comments, he said i believe, i'm all-in. when you see these numbers you say how did the stock get so high and the answer is kind of a slight of hand, not by the company, but by the president and the administration which said we're going to open up export. now, you can't, these projects take years to build. this guy is the only game in

town is what i'm saying. no one else has been able to get these trains, as i call them, the important thing, this is not going to central and eastern europe. so be careful. >> yep. >> we'll be watching the long-term incentive plan as it gets to a vote. let's head to rick santelli at the cme group in chicago. >> we see on the intraday chart 10 years don't look like there's a lot of action. pair it with yesterday's action intraday we did trade to 2.40, open up the chart we are still hovering in the zone on a closing basis we haven't seen since june of last year. for all those out there, talking about the big short covering in treasuries, here we sit at a 2.48 yield right now. february 3rd we had a 2.57 yield. is it really that much different? the main issue is, there has been no real sell-offs. we look at basically a one-year chart of boons we could see a similar dynamic.

everything is linked together on the efficient market arbitrage between the higher quality sovereigns. i think it deserves some attention to look at the euro currency, down since lowest of february, but it certainly is holding and we'll be back momentarily with chicago purchasing manager. back to you. >> we'll get that in a moment. and stop trading with jim. don't go away. can you start tomorrow? tomorrow we're booked solid. we close on the house tomorrow. tomorrow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. csx. how tomorrow moves.

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holy cow. 65.5 on chicago purchasing managers survey. why the holy cow? that is the strongest read going back to parch of 2011 -- march of 2011 and that was one of the strongest going back into the '90s. this is a powerfully strong number. it doesn't seem to fit with some of the earlier numbers today. will it be a sentinel read for the national number we get next week? we have to wait and see. still have university of michigan, may final read on consumer confidence coming up, carl, back to you. >> all right. rick santelli, thank you very much. time for cramer and stop

trading. >> i'm tired of hearing the rumors of yelp being acquired. yahoo! appointed -- yelp chairman max lepkin to the board. people say it's going to be yahoo! that buys them. citi talks about the idea, the speculation that google is going to buy them. no one i think is going to buy yelp. you're buying yelp because you believe that they've got a long-term version to be the yellow pages of the world. let's stop rumoring the stock. accept the fact that it's just an earnings story and stoppelman wants to build a great company, have delivery.com to take on grub hub, like to take on opentable. don't buy the stock for takeover. buy it because you believe in stoppelman and the franchise. >> should you buy it? >> yelp? yes. >> okay. >> yes. >> that's about as clear as you can get. when we come back, breaking news on consumer sentiment. a few moments from now. but first how will teddy bridge

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. all this week the nfl's top rookies are in los angeles at the nfl players association rookie premier. they are just learning more than the xs and os out there. it's their opportunity to meet with sponsors and learn about the business side of the nfl for the first time in their professional careers. joining us now in a cnbc exclusive is teddy bridgewater, first round draft pick by the mn. vikings. teddy, welcome to our show. good to see you. >> oh, thank you. thanks for having me. >> okay. teddy, you have a great reputation and one of the reasons you have it, nate silver who does fabulous work at espn, says you were more responsible for wins per team than pretty much everybody else who was drafted. if the same thing happens in minnesota, what will this mean for endorsements? is it local? is it national. what are you trying to accomplish beyond just being a great football player?

>> really, i'm just trying to maximize every opportunity that's out there. to build relationships with the sponsors that are out there and connect with them and try to go national and also local and just try to, like i said, maximize every opportunity. >> i have to tell you, there's a troubled company in your area which is target. they could use you. a nontroubled company, 3m, you should partner yourself with. now what is -- when you're at louisville, that was not a major market. minnesota, is it a big enough market to make as much money as say the guys who are in los angeles and here i'm thinking about steve ballmer paying 2 billion for the clippers, but i don't see minnesota talked about as being a national market to make a lot of money in. >> i think as time goes on, we'll be able to tell. right now, it's a fairly big market market area, there are some opportunities in minnesota. there is target, the best buys,

and school books, there's some opportunities out there. >> teddy, jim mentions the clipp clippers' deal, a different sport but big story. you have mergers on nfl rights continuing with certain companies. people are saying there's never been a better time to be a professional athlete and you're entering the zone. i wonder if you are cognizant of the opportunity of the time you're coming into this business? >> yeah. i'm somewhat aware of it. i have a team, a great team, i put together that's been helping me from my adviser to my agent. those guys have been helping me and giving me knowledge of what's going on in the marketing field and all the opportunities out there. so those guys have been in my corner and they want me to also maximize every opportunity. >> teddy you're a young investor. you're going to be getting a lot of money. how are you going to preserve that? what are you going to do to be sure that you invest well?

when i meet with nfl players they investorbl terribly. what's your plan? >> for me my first couple years or first year i want to focus on football. you know, having a team i put together, i feel that i can take some advice from those guys. i'm still in the process of hiring more people, you know, to help me in that aspect and help me in that field. as far as making the decisions, i feel that once i hire the correct guy or the correct person, they'll help and guide me in the right direction some. just trust in the process, trust in what's going on and being able to take coaching and learning and accept the knowledge i'll be receiving. >> teddy, talk about this premier. it doesn't get as much attention as it should, but it's a chance for new players, obviously, to learn the business side of the sport and the league. what have you learned so far? >> just like you said, learning the business aspect of the

league, learning about your player rights and what the union really stands for. i think it opened my eyes to see the other view of the nfl, which is the business aspect. everyone knows the planning side, what goes on on sundays and mondays and thursdays but not everyone knows what goes on behind the scene s as and who t players have working for them. the rookie premier allowed us to gain that knowledge. >> finally, it's -- it might be a touchy question, but you got a dream sponsor, someone you would love to work with that you don't already work with? >> oh, man. i think -- i would say rolex, you know. >> oh. >> i was thinking pepsico but rolex will do. >> sends a good message. i like that. >> yeah. as long as the payment comes in the actual product, yeah. that's a good one. ted teddy, we're going to love watching you, man.

appreciate the time very much. >> thank you for having me. >> teddy bridgewater joining us from the nfl rookie premier. what a story. >> wish him well. >> about ten seconds to consumer sentiment. to rick santelli in chicago. hey, rick. >> hi, carl. we're awaiting the may final, keep in mind the mid-month read on this was 81.8. what is it? >> 81.9. >> 81.9. not a big change from the 81.8. 81.9. you know, just to put a face on how this all fits in, april's read at 84.1 was the best since july of last year, which was 85.1. that was the best since july of '07. it seems like anything with a survey is doing extremely well. it seems like some of the more hard data like gdp may be not. makes the job report coming up that much more important. carl, back to you. >> all right. rick, thank you very much. rick santelli. jim, "mad money" tonight?

>> sage kostin burg. the wheaties box, talking about endorsements, to me the highlight of what an amateur professional athlete can do. so exciting. quintiles, the letter q, may be the next person apple teams up with, one of the best, successful ipos of last year, a good company that does contract research for drug companies. want to ask them about the mergers and does that possibly hurt the business. >> all right. jim, see you tonight. have a great weekend. >> welcome back. your stuff, west coast, fabulous. >> thanks a lot. >> when we come back steve liesman with philly president charles plosser. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase like 60,000 bonus points when i spent $5,000 in the first 3 months

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trades at a 14-year high. talk about where we should put our money right now. >> the president of the philadelphia fed will join us. charles plosser. find out what he has to say about the future of the economy and interest rates. >> elon musk wants to help get astronauts into space. we'll show you his brand new spacecraft. >> but first, the final trading session for the month of may. and if you look at the mauj e-- major averages flattish, following mixed economic data. watching the bond market where treasuries have been surging during this month. bring in a panel, keith, president and ceo with capital advisors, we've got john, managing director with armore armored john, you're the bond guy. what a stunning month. best performance since back in january. i've heard a number of reasons why. forget it. can i make money in treasury at 2.4% for a ten-year yield? >> we've come off a 30-year bull marks in bonds, but the story of the day, the story of the year,

of the decade, is that we're in a bear market in bonds. bond yields are ultimately going up and i'm not excited about the idea of trying to buy bonds on a short covering rally. >> so in other words you're not a fan. i just want to get stocks in the conversation and we can go back to sort of the relationship between the two because, keith, the flip side is may was actually a pretty good month. if you sold in may and went away you would miss out on a 2% rally for the s&p, 3% for the nasdaq. are we looking overbought going into june? >> well, you know, the funny thing is as long as interest rates are down at these levels and surprised everybody, including us at capital advisors, coming down in 2014, stocks are the only game in town and we've seen it again and again over the last 18 months, when the market tries to pull back 2 or 3%, the buying enthusiasm comes in. we're become in this dynamic that until something more scary

happens, expectations are that enthusiasm will come back in every time the market tries to correct. >> john, one of the reasons bonds may be doing what they're doing, stocks are no longer for the big pension funds we're told the only game in town. in fact, they don't see much opportunity cost, it is said, in checking out of stocks, and buying bonds and that is why they're doing as well as they are at the moment. >> oh, absolutely. there are technical factors driving markets up and down by a couple ticks or even 20 or 30 ticks, you know, in any given month. howev however, ultimately, interest rates are driven by fundamentals. fundamentally inflation is ticking up across the board. you're looking at wage inflation starting to tick up. and also interest rates are driven by the real interest rate, in other words productivity, return on capital. we're seeing now a return on capital. not just in the u.s., but globally. >> john, let me pick up the point about inflation.

90 minutes ago we got the fed's preferred measure, the pce defla deflator, came at 1.6%, to the point you're making not that far shy of the 2% it targets. why then is there this all pervasive argument in the bond market about a lower terminal funds rate. in other words, this great realization people are supposed to have, because growth and inflation will stay so long, so low for so long, that actually none of the major central banks it is claimed will aggressively raise rates moving forward which is why you've come down to 2.4%. >> yeah. no, i don't buy that this time is different. i don't think -- i don't think things have ultimately changed the laws of physic, the fact is in life there are no free lunches and in markets there are no free options. it doesn't make sense in a fiat currency to have a 0% real fed fund rate. if you had a 0% real fed funds

rate leverage would continue to grow and grow and grow. trees would grow to the sky. it's not a logical equilibrium. >> let's talk about the economy because it's sort of been a mixed signal. coming off a first quarter that saw negative growth where the economy shrank. we did see a decline in personal spending today. keith, next week jobs report, more economic data. are we really set up for a 3 to 4% economy which is what we're hearing from wall street economists next quarter? >> well, that's the expectation. they haven't been good at getting it right, have they? you know, i think the safe expectation is somewhere around the 2% gdp growth rate we've been on the last couple years is where we're going to be and that does kind of create a setup for a decent environment for stocks. not too not, not too cold. this will end. interest rates will go up. but for now it's just about right. >> do you think that the q1

number we got yesterday sets us up for a bigger snapback? i was looking at the wall street journal today, the quote that he uses to describe what q2 will look like is literally boing. boing. is that what it's going to sound like? >> i think so. i think the reason people are confident in that is because when you talk to companies, business is fine. so it really does feel like q1 was an anomaly, part of it is weather, part of it is an inventory cycle, but businesses are doing fine. there's no reason to believe that we won't get a nice bounceback in the second quarter and average out to something in the 2.5% range for the year. >> quickly, john, market event of the week will be the ecb. everyone is getting all excited. are they going to be satisfied by mario draghi or disappointed some. >> well, i'm long funds, short treasuries obviously. europe is very weak, slow. the ecb has been behind the

curve. i expect the ecb to follow through forcefully with lower rates, quantitative easing. possibly negative interest rates. >> good luck with that, john. we're out of time. before you go i want to ask you one very important question. you talked about trees growing to the sky and why you couldn't keep rates lower forever. a note has been put out they're going to elaborate where they believe the fed will keep interest rates lower for longer because it is so scared of the balance sheet that it now has and the potential that they could scare the markets as of when they begin to unwind and that is actually, they believe now, the fed's major focus. would you have any trouble with that at all. >> look, i'm very uncomfortable with the size of the fed balance sheet. you can think of the fed balance sheet as part of the federal -- the treasury balance sheet. in other words, it's all part of one massive government balance sheet. the fed balance sheet can't get out of hand.

that's why the fed is better off acting prudently, tightening sooner rather than later. lacquer yesterday said a year from now is probably when the first tightening will occur but also highlighted it could be earlier, could be later. i think it will be a year from now or so that the fed prudently starts to raise interest rates. >> we'll see what charlie plosser says this hour. we have an interview with him. philly fed president. thanks for joining us on the markets. keith and john. good to see you. gentlemen, another chart for you, stocks and bonds, how about bitcoin. a while since we checked this. this is the i told you so. >> super. >> oh, boy. here we go. >> bitcoin has staged a pretty nice little rally over the last few weeks. back up above $600. dish network saying it's going to accept payments for customers. david faber, dish network, a reputable company you cover, is going to take bitcoin.

>> not fully clear is this is is a great advance for bitcoin but incrementally of importance. >> overstock. virgin. >> i'm not a disbeliever. you know that. >> i know i appreciate it. we have two disbelievers on the other side. >> that's fine. there are many out there. having been out and spoken to any number of people, there is a great case to be made. maybe not today or tomorrow. >> more about the underlying technology of this. >> not bitcoin in particular. >> i would agree there, that people are really into the block chain and the fact that it takes costs out of money transactions and you see that with more retailers. >> until it drives visa and mastercard and banks to xhods tize what they're doing. >> that would be something. >> they will if they're going to survive. >> bitcoin back above 600. there's your headline. >> sara is feeling so good speaking of volatility, despite

volatility in the momentum names, nasdaq is up 3% this month on track for the second best month of the year. seema moody back at the nasdaq with a look at the stocks that helped turn the index around. >> good morning. quite a comeback for the nasdaq up about 3% for the month. outpacing the gains we've seen on the s&p 500 as well as the dow jones industrial average. q1 earnings helping confirm the bullish thesis for the momentum stocks which were under pressure in march and april. now in terms of the biggest winners on the nasdaq 100 in the month of may, netflix on the top of the list, better than expected earnings. talk about growth overseas. that seemed to get wall street excited. trip adviser, green mountain coffee and ill human na all up double digits in the month of may and contributing to the nasdaq's turnaround. apple a source of strength for the nasdaq 100 which hit a 14.5 year high this morning. apple's earnings, ex panneded capital allocation program and excitement ahead of the iphone 6

launch driving shares higher. apple now approaching $640 a share. back over to you, sara. >> let's split it apart next week, see ma. let's send it over to dom chu for a market flash. >> how about another nice gainer for today. check out what's happened with madison square garden stock. the stock is soaring up about 4% off session highs. msg owns the new york rangers nhl franchise who are in hockey stanley cup finals after defeating the montreal canadianss, 1-0, last night. the team's first trip to the stanley cup finals in 20 years. now, another factor here, the proposed sale of the nba's los angeles clippers for a staggering $2 billion. raising the value of big market sports teams like new york teams, like the rangers, so a very good day for msg and, of course, carl for ranger fans. congrats to them on the stanley cup appearance. back over to you. >> and dom, you may know this as well, last time the dow had a year to date gain this small,

was '94. the same year the rangers -- ♪ >> stanley cup 20 years ago. >> how about the new york post cover. >> anybody going to hold up the front page of "the new york post"? >> when we come back, steve ballmer buying the clippers for $2 billion. the highest price ever for an nba team. is he just following the latest trend for billionaires. later on, that interview with philly fed president charlie plosser. liesman has that in just a moment. in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.

so former microsoft ceo steve ballmer is buying the los angeles clippers for $2 billion. a record price if not a stunning price for an nba team. have sports teams become the new collectibles for the uber rich? robert frank at hq with that. >> good morning, simon. this is kind of a unique situation for the buyers and seller. one friend of steve ballmer's told me this morning, he's obsessed with basketball, he needs something to do, and by the way, he has $18 billion. that about sums it up. we can't extrapolate too much from this yet. it does underscore a fundamental shift in sports, that is, teams are valued more like picasso's now and rare diamonds and vintage ferraris than fundamental companies. driven more by the supply of billionaires and their money than the bottom lines in the win/loss records. how clippers are like a collectible. the main buyers are rich people, not companies. most big companies have divested of their teams, but the

clippers' bidders included david geffen, and oprah. of the franchise, values are determined large lly by more emotional bids from millionaires. they're scarce assets. look at the nba, nfl, mlb, not making new expansion teams so like a picasso he's not making more paintings so it's not replaceable. third and perhaps most important, an access to an elite club like the ferrari club or joining an art museum board. buying a sports team gives you membership into a special group. now more than 2,000 billionaires in the world. opening a sports team makes you feel special, like having one of the five ba loonl dogs that jeff made. last and perhaps most importantly is the parabolic valuations when you look at sports teams and collectibles. sterling bought the clippers in 1981 for $12.9 million.

if it sells for $2 billion that's a 16,000% gain. the only thing i could find compared to that the ferrari 250 gto, sold that for 18,000 in the mid '60s, they sell for over $50 million today. back to you. >> robert, beyond the feel good factor i have to think that the value is there. you see the tv contracts going up, both at a national and local level for the sports teams and in a world where people are turning to the internet, live sports programming. >> come on. >> still very -- am i right? >> sara, that's a terrific point and here's where i would draw the line. so the other bids on this, if we believe the press reports, were around 1 to a little over $1 billion. ballmer is double that. this is clearly the emotional factor with billionaires. >> and l.a. the second biggest tv market. >> the supply of money as opposed to the fundamental value which other people said is closer to a billion than $2 billion. >> about being one of the boys. >> absolutely. >> you've seen it for years,

brom vich who bought into chelsea, pumped in hundreds of millions of dollars. >> it's ego for sure. but a case to be made there's value there too. >> may be value but $2 billion as robert said, the cover bids are a billion in the economic -- >> and look, one thing you can't underestimate the passion of rich people when they really want something, ballmer got shut out of two previous efforts to buy an nba team. he learned his lesson and said i'm not going to lose it this time around. when they want something they get it. >> this is checking out, what you do when you've made your money and retired. this is the engad game. >> a man of passion. >> up next the ends of the month for trading. how should you be setting up for june? the last month of the first half. art cashin will be joining us here live at post nine with his take on today's action and how we're set up. back after a quick break.

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s&p 1920, four straight days of new intraday highs. materials as well, one of today's worst performing sectors in the s&p, dom chu at hq with more on that. >> it's been a tough day for materials. now when we say tough, relatively speaking it's tough. among the weaker sectors in the s&p 500. leading the way downward for these particular stocks, u.s. steel and nucore. knewcor saying oversteel capacity is the greatest threat. alleghe allegheny technologies and freeport and dow. nice assortment of stocks contributing to today's mine o losses. back over to you. walmart the biggest employer in the united states is heading to high school to teach retailing 101. courtney reagan has the details on that program. starting them early i guess. >> that's exactly right. it's the last day of school for

many houston area high schools and a number of students will take on summer jobs in retail. begrudgingly. a program at scarborough high school is working to change that attitude. >> there is this perception of retail it is a go nowhere job, that it doesn't pay well. so why would a parent say hey, son, hey, daughter, ever thought about going into retail. that doesn't happen because it's the perception that we have to change. >> the university of houston downtown and walmart have teamed up to run a pilot program, a four-year class called e-retail teaching about the business of retail. walmart has set a retail lab at the school providing training at area stores too. they learn all assects from logistics to marketing to the finances involved in running a store, running a store comes with a surprising salary. walmart says 70% of store managers began as hourly employees. >> a store manager is going to

make on average $150,000 a year, managers will make from 50 to maybe 120, 130, something like that. those are good jobs. if you want to move up we're in good shape. if you want to join and be a cashier for a long time, we get more challenged with that. >> the kids we spoke, thought $150,000 a year sounded good sophomore jewel lopez has a bigger goal. >> to own a company as big or bigger than walmart. >> he can take them on. the pilot program has become so successful retailers firestone and krogers have signed on to sponsor other houston-area high schools. back to you guys. >> courtney, thank you very much. courtney reagan with retail in the schools. markets are slightly lower as we speak. down 17 points on the dow. bring in art cashin, director of floor operations with ubs. good morning. >> good morning. >> you described yesterday a stunning moment when the yield on the ten-year game down to 2.4 and rebounded, as it rebounded

it lifted the stock market. why did that happen? >> well, it would apoor two things. it would appear that the reversal in the bond market was above internal technicals. it had gotten a little overbought at the point. but there were also some very mild bits of inflation beginning to appear. if you look you will see there is strength appearing in the tips bonds, the inflation protected bonds, so i think that might have spooked the bond market a little bit and as i say, having been overbought. the reaction in stocks, i believe, was maybe the fed's activity is working. they've been talking about trying to get the 2% inflation. >> are we saying we want inflation for the stock market? we want steady reliable inflation, 2.5%, would be good for stocks? >> up to 2%. >> the pc is at 1.6 this

morning. >> i know. you'll have to speaks to the fed heads you're going to have on and see. they have suggested that you wouldn't get to 2% for another year and/or year and a half. >> plosser is going to call for rate hikes sooner rather than later. that isn't where the rest of the committee is presumably. >> absolutely to the. you've heard all this, we won't see normalized rates if my lifetime routine. >> ben bernanke said not to up 4% as long as he lives. >> many echoing the same thing. the idea that you're beginning to get some inflationary move gives the sense maybe the economy is really beginning to kick in, it's gotten past stall speed. don't forget we had the gdp go down. >> minus 1. >> and everybody was looking at that. and then you started to see some signs of inflation perking up. now understand, like anything

else, you want a little bit, not a lot. everything in moderation. >> slow and steady. sara? >> don't you think that bond market is signaling something is not right with the global economy, with the u.s. economy, and that's just not being reflected in stocks and the bond market is always right. so one of them are going to have to catch up to the other. >> the bond market is not always right. >> usually it is. >> it gets credit for being the smarter of the two markets. next time we get together pain we'll cite cases where it hasn't been. the -- i think there's a thing going on here up until yesterday and may resume again, you've had a lot of people short the bond market, the short end of the bond market from the front end through the ten-year, and mr. draghi is going to have to do something next week. >> what if he doesn't deliver on qe? he's not going to be buying sovereign debt next week. what happens when that doesn't happen? >> you and i discussed that.

they are not structurally capable -- >> are they positioned -- are the markets positioned to fall rapidly in europe and possibly here? the fixed income markets? >> if he fails to do anything or fails to do something of substance, then i think the markets could have a severe reaction. >> i would love to talk on but we have loud wraps in our ear. have a great weekend. >> my pleasure. >> art cashin from ubs. up next the fed president and co charles plosser sits down for a first on cnbc interview with st. louis steve liesman. what he thinks about the economy and the interest rates.

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this is awkward. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business. welcome back to "squawk on the street." check out what's happening with lowe's, it's coming off its lows. the company raising its quarterly dividend by 28% to 23 cents a share. the yield is now going to be around 2%. you can see lowe's shares down about a half a percent but off their lows on that dividend increase. carl, back over to you. >> very funny dom. dom chu, very much. heavy hitters in the world of economists and policymakers are gathering in california to discuss the future of central banking. senior economics reporter steve liesman is live in stanford with charles moss per. hi, steve. >> hey, carl. thanks very much. here at the hoover institution at stanford with philadelphia fed president charles plosser.

thanks for joining us. >> good to be here. >> lot going on in the economy, minus 1% gdp yesterday, missed a little bit on spending this morning, down 0.1. what is your sense of the economy right now? is the weakness something that worries you? >> not right now. the weakness if the first quarter is something we've been anticipating. the weather had large effects. a lot of forecasters, not just me, seeing pretty strong rebound in the second quarter in response to the unwinding of the temporary transitoriry effects. >> you've had a 3% number for this year. it's going to be real hard to get there. >> probably. so the first quarter is going to make a dent and the weather will make a dent in that number. i'm still thinking that for the rest of the year, 3% is pretty good. >> not for the full year, but we get to that level we can sustain it? >> exactly. >> what happens to unemployment this year? >> my forecast it's going to continue to drift down. the early part of the year, i was predicting somewhere between 6 and 6.2. by the end of the year, we may be better than that.

the possibility we could be below 6 by the end of the year if things keep going the way they have. >> another part of the report put the pce inflation index, the one that the fed follows most closely at 1.6 on the headline, 1.4 on the core. is inflation, is deflation or disinflation still the concern? are we headed back towards the 2% goal? >> i've been saying we were going to drift back towards the 2% goal. the fed has been saying that in the statements. so i think there's a sign we are drifting back in the right direction and that's good. >> what's your tolerance for an inflation level that runs above 2%? >> my tolerance? well, i mean, we can't control inflation precisely over a few months or a few quarters even. we have to continue to focus on what we think the long-term forecast for inflation is going to be, as well as on the economy. i think it's a danger for monetary policy making to get too wrapped up in the month to month numbers unless they really do believe it's going to be a

long-term trend and that's the different -- a different challenge. >> i guess when i ask tolerance, do you believe if the fed hits 2%, if inflation hits 2%, that's the time for the fed to slam on the brakes or if it goes 2.25, or 2.5 -- >> i think you have to look at the forecast of inflation is in part. where do you think inflation is going and right now, i'm worried that as -- if inflation continues to return to our 2% target that's a good thing. but i'm worried that since monetary policy affects inflation with -- as you know the long and variable lags at times, we don't know when it's going to show up, we have to think about our policies of what we're doing now and their impact is not just what's next quarter, but what's going to happen two, three years from now. so i think it's a little bit tricky if you wait too long to react to inflation, not anticipating enough, you do fall behind the curve as they say. we have to be careful about that. >> taking your employment

forecast, your gdp forecast and inflation forecast, when is the appropriate time for liftoff when it comes to interest rates? >> when the data call for it. >> what would -- >> i think, you know, today we're talking about rules here at this conference and many of the rules that people look at suggest that we should be moving away from zero. that doesn't mean we won't be accommodative. we'll still be very accommodative. but that the zero bound so to speak is no longer binding according to many rules people look at. so that suggests that we need to think hard about, you know, what those rules are telling us and, therefore, what our appropriate stance of policy ought to be. >> one more question, i want to get to the rules issue, the ten-year has been below 2.5% for quite a while now. does that surprise you in the first order? second what do you think is responsible for that? a growth call, inflation call? >> i think my guess is no better than a lot of other market watchers. a lot of people are a bit puzzled, if you will, what's

driving that. it's hard to imagine it will continue to fall, but, you know, whether it's geopolitical concerns, concerns about china, concerns about the ukraine, i think we really don't know. we often times want to think, i believe, that there is a lot more that we control interest rates in a lot more precise way than, in fact, we do, that other things affect these interest rates that have nothing to do with the fed or even the u.s. economy at times. so we have to be a little cautious in overreading the month to month or week to week variations. >> this conference is about ultimately putting rules around monetary policy and rules about how the fed bales out different -- bails out different institutions or how it acts in a crisis. that's something you've been talking about for many years now. give us a sense of where we are. this one or two rules you think we're now at a place where there is consensus on that could bind the fed when it comes to monetary policy and a crisis?

>> in the case of monetary policy there's lots of versions of rules out there. i've talked about them. my preference is for rules that are what we say robust, that don't depend on a specific model, that kind of do well in a broad range of circumstances. we're never going to use them mec nistically in a mechanical way. they inform us about guidelines and directions and the stance of policy. so i don't see any reason why we can't take under consideration a range of rules and use those as guidelines to talk about the stance of policy. i think that would be a very useful exercise and maybe that discussion would then gradually lead to -- >> right. >> narrowing down the set. >> it's interesting to listen to you over the years. policy doesn't seem to break your way but bend your way over time. what is a rule you think the fed should follow when it comes to raising interest rates? >> well, i think -- i'll give you two examples. one example is a traditional

tailor rule that taylor has talked about 20 years from now. that's been a useful guide and good guide but there are others what i call robust rules where we looked at changes or growth rates and so one of the problems with taylor rules they tend to have these things we call i'll put gaps or -- >> things you can't -- >> things you can't measure or can't see, can't just -- and so finding rules that are so robust to measurement errors of those things are good. so that's why growth rate rules or changes rules tend to be a little robust against those measurement problems. >> you're presenting later today. thanks for joining us. >> good to be here, steve. >> guys, back to you. and there's a serious discussion about what those rules can and should be and i'll be back in the office monday and try give you sense of a consensus here among the bright minds of the conference here at the hoover institution. back over to you, carl. >> i'll take it from here, steve. that sounded good. optimistic sfru charlie plosser on the u.s. economy. to dom chu for a market flash on

a pharma name. >> this is nps pharmaceuticals spiking as we speak off session highs. check out this chart, it's up about 18%. was up about 20% at one point. this on speculation that shire is considering a possible bid for the company, according to ft's alphaville blog which say shire has been working with advisors working for a potential offer. you can see shire down about 1.3% on this bit of news. according to ft alphaville possibly nps pharmaceuticals a stock that could be acquired. >> deal speculation driving the stock. up next the space race version 2.0. elon musk fighting for his chance to send astronauts into space. our jane wells has that story. she actually got to sit in the spacecraft herself. plus, we'll show you pictures of that. plus she has been called the first lady of facebook. priscilla chen. sitting down for her first ever

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she has been called the first lady of facebook. even though she says she cringes at that name, mark zuckerberg's wife sitting down with the "today" show for her first ever television interview. morgan brennan at hq with the highlights. she was there to talk about schools but gave nice juicy tidbits about her husband as well. >> she did. the schools, $120 million, how much facebook ceo mark zuckerberg and his wife priscilla chen are donating to underserved public schools in the bay area, spread out over five years, used to start a new school district and charter schools, plus improve the existing ones. nbc's savannah guthrie spoke exclusively with chen, her first ever tv appearance, and chen, a schoolteacher turned aspiring doctor, says education is an

incredibly personal issue. >> when you're growing up in your first generation to go to college, you don't know what the potential possibilities are until someone believes in you and says hey, you could do that. >> this represents the couple's biggest gift through their start-up education fund, having donated $100 million to newark, new jersey, a few years back, and partnering with education super highway to help provide internet access to schools across the u.s. but the so-called woman of facebook didn't just talk about the couple's philanthropy. she opened up about zuckerberg's pension for hoodies which as you recalled wrangled wall street when facebook was going public two years ago. >> the hoodie is -- it's okay. he wears a fresh hoodie every day. as long as it's appropriate for where we're going. so he can't wear it to weddings. but he can do whatever else he wants. >> chan also saying that

zuckerberg wasn't that studious in college and his second priory is their pet hungarian sheep dog behind facebook naturally. back to you. >> i like how she also asked if she wanted to have kids and wouldn't give us clues on that. focused on the dog. thanks for bringing us the highlights of that interview. >> good to know a fresh hoodie every day. >> and not allowed to wear it at weddings. >> the inentventor elon musk unveiling space travel. jane wells has more from california. good morning to you, jane. >> hello, simon. nasa is paying three competitors over a billion dollars total to develop space taxis and the one entry that seems to be furthest along made a dramatic debut last night. >> three, two, one. zero. space x founder elon musk unveiled the dragon v2, version of his successful dragon cargo

craft reconfigured to carry humans with listen to this special abort engines made via german 3d printers to safely remove the crew capsule from rockets in case something goes wrong. this capsule will be able to re-enter and land on land to be quickly reusable. musk is developing reusable rockets, all to help bring down the prohibitive costs of going into space. >> nobody would be able to fly or very few, maybe a small number of customers and the same is true of rockets and spacecraft. >> what he was saying there is imagine that it's so expensive that you had to throw away an airplane every time you went flying. you would not be able to go flying anymore. what he wants to do is reusable rockets. musk hopes to get humans aboard, i got on board, by 2016 and into space after several tests, assuming he wins the competition. nasa is expected to name a winner perhaps this summer.

boeing is in the running. the russians saying they will stop ferrying astronauts to the iss in 2020. i asked about the possibility of space x going public, he says, unlike tesla and solar city, the mission for space x is very long term. he wants to establish a city on mars and wall street investors, quote, that's beyond their normal time horizon. doesn't look like it. back to you. >> we know he has ambition, jane. great reporting. thank you so much. jane wells talking space travel with elon musk. >> music, producer, founder, shareholder in beats electronics. will.i.am will weigh in on that deal with apple, and talk about jimmy iovine and more. he will join us after the 11:00 hour. we're back in a minute. mayo? corn dogs? you are so outta here! aah! [ female announcer ] the complete balanced nutrition of great-tasting ensure. 24 vitamins and minerals, antioxidants,

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visit trulia.com slash win today. that corporate trial by fire when every slacker gets his due. and yet, there's someone around the office who hasn't had a performance review in a while. someone whose poor performance is slowing down the entire organization. i'm looking at you phone company dsl. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business. let's head over to chicago right now. cme group. rick santelli is there with the santelli exchange. good to see you, rick. >> good morning, sara. i would like to welcome our guest mark. thanks for taking the time this friday morning, sir. >> always a pleasure m santelli. >> all right. so on thursday we have the big

ecb meeting and, of course, i want your opinion, what do you think the ecb is going to do on thursday? mario draghi specifically? is he going to have to dust off that ba zu ka dust off the bazooka. >> my thoughts is he will do something with that. and it could be as benign as lowering interest rates, going negative on short rates, or it could be quantitative easing. i think it's very up in the air, but you can bet their going to do something. >> let's keep this real simple, mark, okay? a central bank the side of magnitude and importance as the european central bank embarking on this, in 2014, does that make a good statement or bad statement about their economy? >> rick, i think what the ecb has done, as you know, is lent

money to their banks at a quarter to one 1%. they encouraged -- >> i'm going to pull a dc reporter on you, are they pleased or displeased with their economy? >> they're displeased with their economy and with the inflation right. >> so why is it the big story, the conventional wisdom last year, was stabilization in europe. would you now say that was wrong? >> yes, rick, i think any stabilization has not been provided by the economies of europe, but the ecb itself by forcing down sovereign rating and consequently all of the lending rates in europe. that's been the only thing that's helped. >> all right, let's try to hook this into another big topic. i listened to that interview,

and i will talk about it on "the santelli exchange." no one can figure out why treasury rates are down, how much has to do with europe? >> it has everything to do with europe. and out of the box, you read it, at the end of last year, the beginning of this year, i said interest rates were going down when all 13 of the lead banks were going up. look at the french interest rate. 1.76% on the ten year. the german is 1.63%. >> look at five years, it's more enlightening, i know you look at it. it's unbelievable. most of their five years are most lower than our 153. so i guess the federal reserve has how many trillions of treasuries, they're trying to control where interest rates are. don't you find it odd they stress more in ukraine than the stability and future of the

economics and power of europe? does that make you nervous? >> no, rick. europe has forced down raced. i think the feds cap, and belgium, which is now the third largest owner of treasuries, is forcing u.s. interest rates down, and i think they will force them down until they equate with france and germany, and i think we have further to go with interest rates. >> we're out of time, give me a quick yes or no answer. do you think the u.s. can be strong if europe is week? >> no. >> okay, that's it, we have to go. >> i don't think that was the right answer. let's go to john for more and

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mourning the end of "breaking bad" people need a new show to catch fire. we have a look at this weekend's big premier and what it means for the company, julia? >> this weekend's amc premier of "halt and catch fire" draws comparisons to "mad men." unlike "mad men," amc owns "halt." that means higher risk and potential. it drove their operating expenses higher than expected in the first quarter and sparked some investor concerns. coming up with the lock up expectation held by directors and officers, that's on june 15th, another 78 million shares in december. to build the audience, they did

a tech-centered rollout. screened the first episode at apple, twitter, google, drop box, and tumblr's head quarters. for the first ever social media premier. this sunday's premier is just a week after "mad men's" mid season finale. with "breaking bad" ending, amc is trying to build a new portfolio. the ownership model has paid off with "the walking dead" for amc. it's the number one tv show for two seasons in a row and it returns this fall. as for whether "halt and catch fire" can get the results, we have to see if the early access to the tech audience catches fire. >> i think "mad men" lost some

of the momentum going into the finale. interesting new business model for amc. do you want to talk about next week? >> a big week in the market. we're rounding out may here with a slight loss. next week -- >> markets were higher for may. >> they were. 3% on the nasdaq. we have ecb, jobs next week -- >> and the apple split. >> and the walmart shareholders meeting. that's a lot. let's get through today first, s&p, 1920, as we have been saying all day, that's four straight days. it is 8:00 a.m. here at the staple center. 1 11:00 a.m. on wall street. ♪ ♪ if you want to have a good

time, just give me a call ♪ ♪ don't stop me now ♪ i'm having a good time, i don't want to stop at all ♪ ♪ it's a great tyke to be at cnbc. you have been at this two-day conference, and the read -- red sea parted and nothing is going on except right here. ♪ >> that looks pretty good, putting the week in some perspecti perspective. tech moving on from the beats deal, apple kicking off a conference, big day for mic microsoft, and will.i.am is going to joins