andrea yet. >> he's close. >> looking forward to that. got to get a grill. >> thank you. >> i think you have nice hair today. >> thank you, i like it too. >> make sure you join us tomorrow wasquawk on thstreet i next. ♪ i'm gonna knock you out >> good morning. we are live from the new york stock exchange. karl has his reigthis rainy day. futures are lower and the dow and nasdaq as well. the ten year note yield and what was the result? i don't know. 26 now. look at spain this morning 2.5. ireland almost declared chapter

11 there. all right that puts it in perspective. you can get less from investing ten years in your money in spain or less. >> 28% unemployment. you can see, let's call it a mixed bag. but i'll wait for simon to tell us what is going on later. it starts with a lot of things i like to talk about. a winner in hillshire. tyson foods finishing it. hillshire what a multiple ballpark franks? >> insane. >> more. we have more news. triple drug combination. merck to buy farm suit kals.

180 shares and up. to takeover allergan that is what he was saying earlier. this morning starting off with tyson foods submitting a binding offer to acquire hillshire for $63 a share in cash. valuing the company the maker of jimmy dean sausage for $7.7 billion. the offer contingent on the company to buy pinnacle foods. i'm expecting that will take place. in the meantime pilgrim's pride stayed at $55. what happened here? >> they go to seal bids and you end up paying more than they should have. what has surprised people not the least of whom are at least $1 billion more than they are able to pay.

$300 million. they put a deck out and have been asked a lot of questions on the call. let's assume it is $300 million, to $200 million you are paying for the premium you paid above the huge premium that pilgrim's pride was willing to pay. this is not a great company. it was a cast off company. so they split it up. maybe attracting buyebuyers. it would be amazing to get there within five years. we come in today for 61. i have oscar meyer valued at $41 billion trades north of $23 billion now.

heinz traded at less. at lez than what this company has gone to tyson foods for. protein. is this plastics? is this is modern protein? protein consumption is incredible. you should probably put that chart up. are you not though embarrassed to hear the cheap cost. you have to make money. >> you know, i was talking again, let's call the people post of the deal. you can borrow nothing but you have to draw the line somewhere. >> this redoes bob evans farms. it is a better brand.

do you know the theme song. because what it says is, i'm a bull, right, but obviously i'm a complacent bull because i can't think about what price to pay. i'm too complacent versus the bankers. do you know that tyson is a very good company? >> i believe it s and i continue to believe that this deal will benefit it. to add another 42 feet ip the super market. >> what is dr. pepper worth? >> we'll see what the numbers are. we'll end up talking about the numbers that are higher than they were once everything has been completed. this is the so called center of the store that nobody wants. this is the whole sprouts, whole foods where the real double

digit growth is, this is low single digit growth. >> i want to move onto what i think is more interesting this eye den ticks deal which brings in a lot of the things you have been talking about. it is acquiring ee ining identi. $24.50 in cash. you didn't hear me wrong. this is a do nothing $7 stock. no one had looked at. who cares. who cares because there is a great hepc drug. which they got by, buying pharmacet. $8 billion a year in sales. and bristol myers bought it.

six weeks ago they released phase two data about a tie that they have. that was very favorrable and people close to the situation tell me once that data came out the phones started ringing. j and j called. bristol-myers checked in. what you ended up having was an all outbidding war between j and j. abv. huge company and merck. to get ahold of this. merck wins the bidding with this deal of course and the hope here is jim that they are going to have a one pill oral treatment to cure hepc. they have something of merck

that they believe they can combine that will create a one pill combo. the same way that they do did it. every organization wants to clamp down on what gilliad is going to make. no one says the pill p doesn't work? sure. no mapintenance. it is horrible to say i can't tell you, i thought this was game, set, match. they think it is a $10 billion market and yes, right now they have a large share of it. do you know how many companies may be worth far more than i shout? i'm watching the stocks be cut in half because of the great

migration and i'm thinking i'm like nuts. i got to go back. how did the market get so wrong? it was sitting there as phase two. the drug companies paid attention to. we had a scientist from as tra seneca and i look at this company and i think all right look at the books and all of the speculative stuff i never like to use phase two data. i was taught that phase two was too dangerous to mention on air. here you are talking about alex

who i thought was using a price target today. i would have thought that a lot of the things might have been irresponsible. i would have done a little bit of thinking. i know i stretched everything. i know that i used everything that i shouldn't have. i'm too old and too rash. by the way, i talked to 55. that is the best you could ever have hoped for.

you can understand. why it may deliver a lot of value. but i mean look, we have a guy who took a stake in family dollar this morning. and going to merge. $350 for dollar general. not a deal on the table. we are put ping numbers out. later on friday disploesed family dollar 9.4%.

i will tell you family dollar put in a poison pill. this hit one year i do not believe baseded on the phone call s that we talked about a lot between dollar general and family dollar. it w it wasn't $800 million worth of stock. >> it is a better company. one of the reasons why if levine stepped aside, look at what it is doing for dollar general this morning. the combination of the two, this

could be laying the ground work for room for it to do well. you do not pay $62 for a company with $3.50 in earnings power unless you know there is a deal. we are far from that point now. the combination of pelts could you get them all? not that they need any convincing. let's put it all together. we know there are activists everywhere. they pay over this.

we know that uber, you can conclude we are again, bullish versus what uber says and karl icon says and pilgrim's pride and tyson says. and pinnacle says. >> i mean tyson is a conservative company. >> thank you that is my point. they no longer are. >> analog devices is a conservative company. that is another deal we didn't mention today. >> it is too small to mention. >> we have a lot more coming up.

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♪ >> this morning on squawk box acman was asked about the bid. >> tactical because we are in a takeover battle. i met on thursday with the shareholders. they said we like the deal. make it easy for us. if you get the value of the deal we'll support the transaction.

there will be significant increase. you are using more and more cash it is still largely composed of stock but not as much. it made sense that look, please, this is why it went up? it is pretty clear that ac man and vallient have to work to make sure that it is a legitimate company. there is a backlash against this type of thing. it reminds me of when the pope

was against stal iin. >> it is not enough for them to say no, these guys you don't want to on this paper. they are going to have to do some sort of value creating transaction. money is cheap. can you rule those things out? does anyone know allergan is for sale? no. >> do you remember federated stores canadian bid? you got to hit a bid and it disappeared. you don't want to hit a bid when you have half of the considerations coming in stock. >> also this morning ac man said things about my lawyers you

can't say. joe asked what is next for herbal life? arrests. i've been taught that when you -- if you do not know of a felony and the u.s. attorney saying that there is criminal behavior you can't say there are going to be arrests. it doesn't matter i guess. look, i've said on twitter that ackman is going to destroy her balance li bal life. we know that from himichael corleone. you can't say that if you are a journalist but i guess you can say that if you are a prosecutor for gotham. >> by the way, we got to save

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it is time for our mad dash. 2.5% up in asia. i think that this is interesting. trying to figure out why it keeps going up and up and up. that is why it has been going up. general mills and kell log have been hurt by restaurant traffic in the morning.

is that the taco bell breakfast that david nocak is sures me that i can have without going to my cardiology? >> please do. i mean you are going to go to taco bell instead of going to your doctor? >> i think there is a theory going on here. julia stewart talking about how fast casual prices are going up too much. there are so many trends but the main thing is if mcdonalds is coming up. the trend is magnificent. perfect place to end before we begin watching the stocks. just three minutes from now. stay with us. i bought a car, over and tells you, and you're like. a good deal or not.

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♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. we are live from the financial capitol of the world where the opening bell is set to ring in 1:30. jim, i want to come back to our conversation at the open of the

show. all of the activity that we are seeing multiples that are higher than we might have thought or premiums that are higher than anybody had anticipated. we know about low rates. the flood gates seemed to have opened. >> yes, so you haven't seen it in tech. the devices it is a parts company. there is nothing special about it. analog is a parts company. there has been a place where there hasn't been a take off. you will see the super markets of tech haven't been doing that well. there is a refresh going on right now. we know these are heavily shorted names. the final one will be the pe permion they need u.s. oil

because that is where it is. >> and aubrey mcclendon's company buying some assets as well. i think i saw that. see that? >> you know permiun, halcon got a new investor. that stock is going to be higher. they have more in an area. they are forward thinking. but there are three pipelines that are going to be opening up in the next year. so yes, if you want to be in there of course is partner from american realty capitol. also sold a business. >> amazing i was with somebody the other day and the fracking you have to watch it. there is a colorado potential

moratorium on fracking and yet they keep going higher and i like it. >> you heard the bell 50 seconds or so. it was the publisher of "time" we will speak to joe ripp. there is a look of course back at hq. it does appear that losers are outweighing winners at this moment on the market. not the case of course with idenix. putting up idix you could look at it all day. it is not of ten you see 232 jumps in stock prices. i'm searching my head for deals. because the japanese were playing with different currency.

in 1999 there was a lot of currency that we ended up not wanting. these are real companies though. j and j is one of the best companies in the world. you have companies in there that we all revere and they are looking at phase 2 data and saying we are pretty convinced that this isn't going to kill anyone. face two to phase three they found fatalities and you have to write it off. >> that was bristol myers and that was 0. >> and quickly after it. the only reason i mentioned that. >> there is risk in these. and the belief that this nucleotide is going to be very strong and positive and get to a drug that is going to allow them

to combine with what they've got and create one pill to cure hepatitis c. >> it is finite. if you broke up kraft you could get $90 a share. the pickle company that could be sold. oscar meyer is $23, $24. you could get a dairy company. kraft is splitting itself up. kraft. >> can you expect to get 17 times -- >> are they ringing? >> yeah, that has been trading the spin. time warner is now officially just hbo a movie studio and a number of cable networks and yes, does by the way this thing

does all right time inc in terms of free cash flow. i'm not sure what they have said actually. $600 million getting paid to time warner by time? time inc will be levered 2.1 times. the question is what do you do with this business? >> that is a tough one. i know that bucas and disney have contested the valuation of what the public views their companies and they are in there with aggressive buybacks. not like the company people are saying what is going on with apple. there will be another time david 7 for 1 split would be all that we are talking about. it is back burned by the

situation that you are seeing now. it is a split that is looking like it is attracting ip ve ini. that had been the way but on the other side people are saying i get it for under $100 rather amazing. there it is $92.64. technology, oil, these are areas we have not had. the great consolidation that we are seeing. they have a little bit of growth. but still, does walmart have to buy a dollar store? >> walmart is trying to create that concept and compete with them. smaller for mat. 7/11 type format. icon puts it in play and levine says i'm done.

family dollar has continued to try to reinvent itself but the other guy's stores look better. they do. >> family dollar shares are up on that over 9 position. triggers at 10%. you know between him and pelts there is a restive shareholder base there that may try to pursue a proxy fight. peltz is on the board once but did not come again when lockup had expired but the talk about consolidation won't go away. for a while the market accept s kept saying there was. there are many people that have family dollar and they will take the best company and they will

have a buy. and a lot of guys will have a dollar hold and good-bye back and then they have a sell. they can't have all companies be a buy. you are seeing a short family dollar covering so afraid that a walmart comes in. dollar tree has a good quarter. these are incredible moves. these are single digit growers. we are not talking about chipotle here. >> $800 million you can think if they were going to move ahead with a big deal they would not be doing that. >> the plays are endless. this reminds me of dome petrole petroleum. this reminds me of texas gold

sulphur. these are things going on where i'm going up. >> you don't remember 1964. you are old but not that old. >> the directors decided to snitch a little. that was a no no. that was the original insider trading case. he has the first ever interslew. bob take it away. >> tom farley is here. welcome to the new york stock exchange. 38 years old he is the youngest guy. what makes you qualified to run the new york stock exchange? >> i don't feel so young after close to a decade here. this business has been here and it is certainly not about me. this he is about our customers

and i'm excited to be a part of it. >> this is a new level here and the top management duncan and what are you going to do that is different than what he did? >> we have a great team here. we have supplemented that with the best and brightest who are known for running some of the best and rightest. as a matter of personal privilege this is the third global exchange that i'm the president of. when markets change significantly it is important that i'll be able to take some of the recognition that i've seen and bring it to bear here. >> thoptions 4 x across the boas what do you think is going on

will that change? >> that is a pan asset across the globe phenomenon. our equities business is doing very well. market share is increasing. those things are very good. i look at healthy corporate balance sheets. i look at all time high prices and i'm hopeful that volumes will rebound and one more note on that. i'm focused on the areas that we can control. >> still you are in a three way race. with nasdaq and it is a three way race right now. it is a small part of the business. a derivatives company what are you going to do to increase the revenues here and how do you feel the floor is going to participate in that? >> look, it is a minority of the

business this business is doing very well. this is do no harm on the listing side we have bun more than 50 ipo's day-to-day. our equities business is growing. i hope to bring some adiditiona momentum of innovation here. >> i spoke with your boss he wants less order types and fewer exchanges as well. i gather you are onboard with that. are we going to see a simplified trading structure? >> sure. i have spent a year emersing myself in the markets. everyone voices displeasure in the market.

we are going to advocate for multiple lateral change. >> is the floor going to stay? >> yeah. we love this floor. this has been here for more than 100 years. we are investing money into the garage next to here. >> there was a lawsuit filed recently alleging high frequency traders were taking advantage of individuals. >> i think you are referring to an article over the weekend. it was 85 and sunny out here and i was outside with my children. i'll have to defer and give you a no comment. >> thank you for joining us here. >> back to you. >> wow. >> i know. >> he makes me feel old. >> good luck.

>> all right let's head to the bond pit pits. rick? >> good morning david. i think that today the word is watch out for the short maturities. as we look at charts starting on may 1st. they should be not very volatile. if the notion is that the fed is going to be forced to federalize rates, well then you see pressure in the 2s. you look at the fives you see the highest yields going back to the 20th of april. what is interesting about 5s is that they are up twice as much as the curve. a lot of pressure in 5s. the street has been the wrong way. we continue to get flattening.

but the real key is thus far after the 244 low yield close from the third of february we have not closed above $260. technicians are a pretty precise bunch. today may be the day but there have been a lot of highs that seem to get washed out towards the end. now, if we look at other charts that are fascinating. look at the charts in spain. theirs is two under ours. both of those charts you don't see lower yields over the last 20 years. you talk about a look of volatility look at the euro versus the dollar. but realize as we compress if we start to close under $135.75 that will be something to pay

close attention to. david back to you. >> thank you very much. time, sports illustrated "people" magazine they are all part of time inc now a stand alone public lly traded company. if you want a piece of old media. and i know they won't like hearing that. >> that is the question for that man ceo and chairman joe ripp. we are going to talk about the future of time inc next.

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all right fresh from the opening bell. we are joined by joseph rip p p

chairman and ceo of time inc. shares of time trading today. you can see it had been trading when issued and is up rather nicely from when it first started trading. welcome and congrats on a big day of course for an independent company. pure play if you will. pure play in old media that can't grow and they have no idea what the strategy would be. we are going to prove them wrong. when you look at private equity companies you look at the real assets. i can reach every ceo in america. i have some of the most trusted brands. one of my brands was the oldest magazine in the world called the field. i have a great marketing machine and to write off a company like

that is incredible. if you had the $3.3 billion revenue base and a 17% margin your bosses would say you are killing us get it together. how do you get those margins up given that is not the way private equity would deliver. >> during the last couple of years, nobody asked me a question about it. they said what is the next movie and what is turner going to be doing? >> we get to stand in front of you guys and how we are growing so that will help. and i get to keep my cash flows. our conversion is very high. the opportunity for us to see how do you make these brands so

much more than print. we have been focusing on producing these brands. >> you are going to get pressure from the shareholders. say again? >> over $300 million. many of them will argue you have an attractive cost to capitol. you are generating the free cash why not buyback more stock and invest in growth it is never going to work. this company has been under invested in for years. i think these are great assets and we are going to be showing what we are doing for years. it is a great company. >> meredith time to buy them? >> there are real opportunities out of the gate are a des extraction. >> how about newspapers selling boy are they giving them away.

>> you would stick with the old prime media napemes. i think any kind of a passionate product that you have. we are a content company that surrounds passions. if you think of yourself you spend your wealth on a passion. i have two wine magazines and one is called food and wine in the u.s. if i super serve that passion i can be so much more of a magazine. >> it does make sense. i don't know. when you talk about your assets in the uk i know your investors talk about ipc in the uk. why does that fit in? >> one of the things that came

over was a larnlge building wor $400 million. will you sell it? >> i've been with the company for nine months now. we have been looking and saying one of those that we have the opportunity to invest in and we'll think about the portfolio. >> i know right off the bat earnings guide in your presentation you gave guidance that didn't include that this wholesaler is that going to hurt your guidance? >> we issued the details of what that impact would be. we were able to sign up for a five year deal. we think we are stable for a period of time. fewer magazines are sold on a newsstand. >> you know we are routing for you. sports illustrated still gets delivered from my house.

i want time to win. >> there is an emotional connection. >> thank you. >> joe ripp, ceo of time inc. i spent my entire childhood seeing the world in reverse, and i loved every minute of it. but then you grow up and there's no going back. but it's okay, it's just a new kind of adventure. and really, who wants to look backwards

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it is time for stock trading. the election is in egypt. steve farris is a great management it can the stay independent. not the way it is going. apache, 120. okay. like this. calling for the take down. either way i would not recommend a takeover basis. and i was worried about it. you have it with egypt whether you like it or not. you can rest although don't rest

on your laurels. we have the missed quarter. they are both quarter missers xtd did not turn out well. last of the quarter. i'll see you here tomorrow. yeah. rest up. rest up. coming up you will hear what they are saying about tesla's future.

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tyson giant multiple and merck paying more than 200% as a premium. plus the cost of cyber crime. the cto of mcafee joins us live. >> and the burger chain is celebrating a decade of being in business. we'll be live here at post 9:00.

we have kicked off the trading worth noting that the dow is sitting shy of 17,000 and on the s&p 500 we are not far off 2,000 as you can see. let's bring in david kelly and nick joins us he is chief market strategist. good morning. volatility is super low. what do you say to people, fill your boots with risk? >> we are very low volume levels. we wouldn't stand in the way. >> this week you think we will hit s&p 2,000? >> they want to keep interest

rates low and we know that they don't want to blow bubbles. citigroup has a note out here that they may try and inject volatility into the market. the next fed meeting could cause a 5% correction. >> i think there is a problem here. but their first opportunity here they may begin to nudge up to when they are going to raise the federal fund rates. the last time it was 7.3%.

they need to warn themselves and get to a balanced stance. >> turning max yum under weight. do you think the fed may intervene and inject volatility here? >> treasuries feel complacent. i would agree with that absolutely. do you think that people should fill their boots with risk? >> i think that volatility should pick up. it is a lot stronger than behind treasuries at these levels. we are looking at the dow close

to 17,000. he believes it will hit 2,000 this week. when does the music stop and what is the cause of that? there is no reason for people to get out of risk just yet and that ends badly no matter where it ends. we are just getting there. i worry about qe a lot. it is all carbs and no protein. we are building up wealth. people should still be overweight risk and cautious and careful about it. in the long run this won't hold. >> do you think we would hit 2,000 on the week as well?

i prefer to try and understand the climate as well. >> thank you for kicking your week off with us as well. thank you. >> merck is by he buying idenix fa pharmaceuticals. meg can explain perhaps why all of this is taking place. >> that is right. you pointed out that huge premium three times. that is a big market. there are more than 150 people worldwide and half of those are diagnosed the goal has been to

develop a single pill that pats can take. getting it's drug there so they had the fastest drug launch is history. another interesting part here is that they have been seeking royalties with those parties there. ags we mentioned this was the fastest drug launch in history. no wonder why they might be trying to get a piece of this deal here. >> the idea here being that merck believes that they can combine what they have. they are acquiring and make it a one pill regimen to treat or

kill hepc. it is not just maintenance it is curing the disease? >> there have been a lot of take ti issues with these drugs. looking to get a cure in the shortest time possible. that is the holy grail here. this is the once a day cure here. all of tdrug makers are trying get that. the market seemed to have miss it. i want to move onto other unbelievable m and a news under that banner if you want. hillshire agreeing to be acquired by tyson foods for $63 a share. this of course a bidding war between tyson and pilgrim's pride. that has yet to be terminated.

that deal is expected to be terminated the fee will be paid by tyson. as you see there 16.7 times trailing. that will take our multiple down. the $1 billion increase over where pilgrim's pride was alone. certainly the multiple is turning heads being that it is above for example what warren buffet paid. many perhaps better known than ball park franks and jimmy dean

a sage. it was a target from back in the day. i'm wondering do you think pinnacle is now in play for someone else? >> it may be. add then when they kacame back $55 the market has had a chance to readjust.

and there is also cheap money. that has been the case for quite some time. there were some who said i'm ready to take a vacation. >> $55 they were ecstatic. $53. >> we want to send it over to dominic. deal related costs are supsiding. back over to you. thank you so much. when we come back. tessla unveiling the right-hand

drive version over the weekend. hear what muks had to say. we'll be back in a few.

musk and tess ca in london over the weekend. over to you. good morning to you.

they are likie inlooking to mak sizable investment. five states are vying for that this is a very short time. and this is one of the biggest factories of any kind on the world. it is bigger than the sum of the factories in the world. it will take everything in china, korea and japan and elsewhere and add them together and this is bigger than that. the scale astaggering it is difficult to comprehend. it needs the commitment from the producers and that has been feeding into the volatility that we have seen from the stock of

late. year to date it is still up. we are watching the day-to-day share price. because the value is dry ven by the perception of our future excation that anything that effects people's execution has dramatic effects on our stock price. people try to read the tea leavleave s even though there is not enough. they will get depresseded the market is like dealing with a manic depressive. >> it is valued right now? >> i don't know what the value is right now.

i'm guessing. i haven't looked at it. i think there is a lot of optimism priced into it. we need to execute well. but i'm feeling like we probably will. they'res trading at $207. back over to you. why would you prioritize unveiling it. i'm looking here. most of aftrica drives on the left. it is more common than you might think. >> absolutely. australia and hong kong too.

those are two huge markets. thank you. >> up next on the program. the high cost of cyber crime. the ceo from mcafee will join us live with more after this break.

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don chu is back with more. it is leading the day downward merck is leading the way with the opposition of idenix. it is the leader in that market with the treatment. all rounding out the bottom five on that health care part of the market.

back over to you. one year later the legacy of edward snowden is still unclear. but what is clear is that cyber crime is on the rice. new report out today found that cyber crime cost the global economy more than $445 billion a year. joining us now is mcafee chief technology officer raj. good morning. >> good morning. >> they estimated that the u.s. lost $100 billion a year itself from cyber crime. walk us through this number. $445 billion that you say has lost every year. how do you get there and what

comprises that? >> there was a number that we used. we tried to look at the costs with regard to the impact that it has had. we had to wait with regard to the confidence. asking companies to begin being more forth coming with this information here in the u.s. do you think that there is actually more cyber crime

happening? we are seeing criminals my great over to cyber the risk of getting caught is a lot lower. in 2011 the fbi reported a decrease in crime. there is an eco system making tools and products available for criminals to come into this market. it is almost zero now. >> raj, are you suggesting then that you inflated parts of the report in order to report what the cost of cyber crime is sth. >> i'm trying to cut through why

you would commission this report at some cost. we know that it is a problem. but the industry has cost. we thought on the first day after the mi len yum that everything could possibly shut down. it is only estimates that you have put forward 0.5, 0.6 of gross product. does that make it an emergency? perhap perhaps on 1% when we consider the impact on the economy, it is closer to 2%.

the head line figure that number is so large it doesn't mean anything for most people. this impacts jobs and growth. we saw the department of justice put an indictment out against five people that they saw as hacking u.s. companies. i think it is important to change the methods of destruction and justice. i think you need more cooperation of the federal government. you can see it. given the nsa and flow den.

the cooperation doesn't seem to be happening. that is removed from the cyber crime discussion. there was a decree of overlap. last week the fbi in conjunction with multiple law enforcement agencies put an operation to bring down the operation and that was a public fry rate partnership with companies across the world. the problem is only going one way here. the chinese more and more people

are showing up to work every day to steal stuff. are you saying ta we are getting a handle on this? >> i mean someone has said are we winning the war on cyber crime. people are being arrested. law enforcement is making arrests. but the reality from physical crime to cyber crime you don't have to fly out, you can sit in your bedroom and you don't need technical skills to do that. >> the battle continues to be up held but we thank you for

putting us into context today. >> straight ahead on the program. money for nothing? new report shows that the sec on the top of the list never made a profit. more on that after this break. and if i tap my geico app here i can pay my bill. tap it here, digital insurance id card. and tap it here, boom, roadside assistance. on'tday ooklay, it's axwellmay.

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opened at $22.31. up by just one tenth of one percent right now. there have been 57 of them but we have a few data points looks like fairly volatile. we want to get back to the markets joining us now art cashin we are close to 17,000. some people are saying 2,000 on the s&p this week. this week might be a push. we had a heck of a run. thursday and friday. before that, most of the gains were simply in kre mental. thursday and friday they broke out a bit. they are perhaps consolidating here. so we had ecb last week.

we had payrolls on friday and there were pushes to get the market going. this week looks fairly light. i'm wondering what will move the market this week. the ecb is going to implement their plans and i think we'll get a chance to see how that is going to begin to work out. you know the negative rate on depots deposits isn't quite as big. they don't have $1 trillion in reserves. it will be beneficial but not overwhelming. the fed could do that here. that is how they could reclaim their balance sheet. they are parking trillions of dollars in reserves. i think that might be too

drastic for them. i think you have to watch it here, time and time again the money having novel no, velocity. they have to be careful about things springing up out of nowhere. >> but money is cheap. voltility is super low. how many times have we waited for the correction and it has never come. there is no question about it. there has been some close to 40 months or so and history tells us that they could go longer. we had a period in the 90s where we went months. are we saying that equities are not a risky asset. but i don't know about loading up. people want to do this increment

alley. you set a goal for yourself and you put so much into the market each month. if prices come down thinks never get out of your control. just last friday, we saw that break event on the year, is that an important moment on the market? >> i think the russell and the nasdaq composite. you have to get up above a 2013 rand 43.79 somewhere in that area. i'm signaling to the cameraman i'm sorry. >> i thought you had a committee moment. >> i was voting in favor of what he was saying right there.

what level are we watching on the russell 2,000? >> i think it was 12, 13. you have a way to go there. >> all right we should tell everyone you are tied today. it is a blind squirrel searching for an a corn. thank you for joining us. a list of the highest paid ceo's. executive at the top is surprising. >> good morning to you. there were big gains as ceo pains. in the final survey the "new york times" looked at the top 200 companies. the company is building plans to cool natural gas so that it can be oexported. most of it in stock 130% total

return. the highest among the 200 firms. his pay and the company has postponed over compensation. this after giving big stock grants to firm executives. ceo's in general did well in general last year to $17.3 million. second on the list, mario gabelli earned up 23% p more. ellison's pay fell 18% last year. adding to the $38.1 billion he holds in oracle stock. the only one in the top five who didn't fiound the firm he runs. good part of it from the highest

cash bonus given to the top 200 paid ceo's. w nicholas howley was paid 62$62 million. simon back to you. >> who would have guested it. $85 million a year. >> he's been up there a couple of years. >> you know think of it four out of the five are founders of their firm. that tends to happen. they get paid quite hansomely. >> a lot of money. we'll see the next time he is on wa squawk box. he is turning ten years old. what is next. we're back after a quick shake. .

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welcome back. nbc news has now obtained the crim thinal complaint according this criminal complaint the man charged here is kevin jr are oper. he was the driver involved in that accident and the complaint says he has been charged with committing with operating a 2011 peterbuilt truck bearing an oklahoma registration. also according to this complaint the others injured here tracy

morgan. back to you. >> thanks david. i would like to welcome my special guest. thank you for showing up here again. we've seen the central bank. in the long and short of it. what is the issue. why is the velocity of money so low in the united states right now? only 45% p have sufficient capitol levels. >> they can raise it by

earnings. the big guys can go to the market. i know that the interest rates, why is that a negative. with interest rates low, one would think that the economy would do bet per but it seems to be counter intuitive. i think that interest rates are too low. margins are too thin. they have cut their staffs as thin as they can get it and they

still can't make that much money. what happens if the fed raised rates? how do these banks how are they going to be bet per off? if the fed would raise short-term rates and bring down long-term rates it means a booming auto credit business. they need to see about 80 to 85% of all the banks and credit unions and thrifts that they represent.

if i hear you right, this is the perfect time for the fed. rates are being taken care of. i would totally agree with that. anything under five years especially in the two year time frame which is the duration on an auto loan that would be perfect. that is going right to that capitol. back to you and i would like to thank our special guest. >> thank you very much. 61 points away from the dow 17,0 17,000. let's get a market flash. soaring up 35% as investors look for the next target.

this stock has a small market cap but it is trading 10 times it's average daily volume. still lots ofvillium on the heels of that deal. >> lot of movement in that sector. when we come back shake shack is turning ten and we are talking to the minds behind those famous burgers. they are here and we'll talk to them after this short break. ng. for that moment, where right place meets right time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours.

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the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. ♪ whole lot of shaking going on ♪ from a hot dog cart to 46 locations away the world, shake shack has come a long way. this week the popular restaurant is celebrating its tenth anniversary with plans to open in d.c., florida. shake shack shows no signs of slowing down. here with sus randy garutti, the ceo and danny meyer, founder,

shake shack and a number of new york city top rated restaurants. gentlemen, thanks to you both for being down here. danny, did you have any idea even when you were a kiosk, forgets the hot dog cart, that the concept would grow so large and conceivably a lot larger? >> no, we had zero idea. we pinch ourselves every single day. we didn't even open our second shake shack for five years after the first one. and at that, we really wanted to test ourselves and say is there anything we can possibly did to cannibalize ourselves so the line wasn't so long. and we opened the second shake shack a little over five years ago on the upper west side and every other line just got longer. >> i know that location well it being in my neighborhood and you need some line management help still i think. and i say that kiddingly, but seriously, given the popularity, it's a high class problem. but do you focus on that as one of the issues given that it doesn't seem to be opening a new

restaurant necessarily helps the lines at another one? >> one of the things we've done very effectively beginning with our second shake shack is to increase the size of the cooking space for shakes and for burgers and hot dogs. what that has done is the line just moves very quickly. but we couldn't do that in madison square park where we have 400 square feet right in the middle of a park. >> but you used to have a web cam there so you could log on to the website and watch the line and watch how quickly it was moving. i used to go there when it was raining and i would log on and see the line. >> you can do that today. you can see the shake shack cam. >> gladly now we can have shake shack at citifield where the mets play, at jfk airport when you're trying to hop a flight. any plans to expand to any other ballparks, airports, big tourist friendly areas in other cities? >> this year is really about deepening our roots in the markets that we're in. we are also going to austin, texas, chicago, and orlando later this year. and next year, las vegas. so we're branching out a little bit. continuing to grow at an

appropriate pace as we develop the leadership do so. >> what is an appropriate pace? that sounds like a lot of growth given 46 locations going to what by this time next year? sf >> we should be around 60. >> so percentage-wise that's large. >> it is. and the appropriate pace is when we know that is a community that wants to gather in a place like shake shack, which there are many. and we've developed the leadership that can lead it. internationally we license and work with great partners in each country internationally. >> but here you're only -- if there are people watching now who are thinking about getting into franchises, thinking about this sort of business, what would you say to them, why have you succeeded? what makes the difference here? >> i think that your story is a good one. when we first opened shake shack, we did all of our cooking in the private kitchen of our

restaurant at 11 madison park. and i think -- i don't think we're in the business of giving advice to other people. but shake shack developed so organically. we didn't have a gredream to do >> was it pricing, quality? >> i think we were able to at that time exact same type of sourcing of ingredients and staff members and design and training and hospitality that we would do for any of our fine dining restaurants and bring to a quick serve restaurant, although some wouldn't say it's quick, but at a very, very low price relative to that quality. >> the boot strap story is a nice one, but this is a blockbuster business. the fact that you guys have lines around the block for every location, you can't be in the dark about how successful it is. would you ever take it public, would you ever spin it off? >> i think our feeling about that is just onebu burger at a time. as ran decidy was saying, we ne

open a shake shack without bringing in experienced managers. and that's what is our pace. >> quality control. but this is the largest single component of your business now. >> it has taken over first place from our events company, union square events, which is number two. and each one of our fine dining restaurants is doing great. but there is only one of each of them. >> right. gentlemen, congrats on the ten years. and appreciate your being with us. >> we're vee excitry excited. amazon has a new turf. and plus uber is valued at $17 billion. matter what uber ceo has to say about that. that is all coming up in squawk alley. spokesperson: the volkswagen passat is heads above the competition, but we're not in the business of naming names.

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we have another addition to the squawk family. our producer has welcomed teddy. m m mom and dad and teddy are all doing fine. we have babies and weddings coming everywhere. >> so many things you can do with that pack name.

he was not an economy pack. >> no. >> she knows. you you can laugh. we've had fun with it. i don't know what to do here. i'm just standing here. >> are you going the lunch? >> no, no lunch today. i'm going back to new jersey today. >> that's it for us. now time for squawk alley. >> guys, thank you. good morning, everybody. welcome. it's 8:00 a.m. at the netflix shareholder meeting in california where shareholders could vote to split the chairman and ceo roles. and here it is 11:00 a.m. on wall street. squawk alley is live.

good monday morning. carl quintanilla is off today. kayla tausche is here along with the john, jon fortt. first up, amazon moving in to the mobile payment space.company will start allowing customers to use its platform to make online payments for services. a move many see as a direct shot at paypal. the service will allow the # 240 million active years to store credit card details to pay for services like a monthly phone bill and in turn, amazon will charge a small fee for each small transaction. >> there is a big appeal from amazon. all different people sell stuff on amazon. it's processing and handiling te transaction so you don't have to worry about fraud. if you go on go go wireless, you