ount to conduct official business as secretary of state. possibly violating federal rules. it's tuesday march 3rd 2015 and squawk box begins right now. >> live from new york where business never sleeps this is squawk box. >> good morning, welcome to squawk box here on cnbc. i'm becky quick with joe and andrew. we're listening to santana's smooth right now. it was one of the top songs in the billboard charts in the year 2000. we follow nasdaq's run back to 5,000. benjamin netanyahu is set to talk to congress. we'll have details on who will be there.

coming up in a few minutes. >> a couple of different stories we're watching. the nasdaq partying like it's the year 2000. closing above 5,000 for the first time since then in only the third time ever. the nasdaq now .8% away from the record close. there is a surprise from down under this morning. australia central bank holding back on further easings. gasoline prices jumped 37cents a gallon. now that's the largest week to week increase since the agency began it's survey in 1992 but life is relative and if you remember where things were six months ago it's hard to complain. so it doubled in three and

doubled again in three. so it doubled -- >> 72 divided by 3 is 24. >> 24. >> so it's probably -- is it 24% return in six years if it quadruples? >> yeah. if it sits right you can do it. so the nasdaq is up -- so instead of 6 or 7% for equity appreciation the nasdaq since 2009, 24% a year. so stay out of the market. if you put that money in 15 years ago you're just giving it back. >> they didn't have money 15 years ago. they were 6. >> millennials didn't. >> we'll go in the nasdaq. among our stocks to watch barclay's topping estimates despite having to put more money aside for potential foreign exchange litigation.

it just rolls off our tongue. getting a boost this morning. just use -- spelling something backward normally wouldn't work. >> it's not a harsh laxative it's natures. it's a slow natures. >> it worked for evian. naive spelled backward. >> you know what that is spelled backward? >> that means nothing. >> yeah. the mortgage servicer says it will sell residential service mortgaging rights on $45 billion of fannie mae loans. and neighbors missed the mark on the top and bottom lines as you would expect. the company was hurt by lower drilling activity amid a drop in oil prices and that's something that eventually might rescue

oil. people don't know when it might happen. harold had interesting things to say on friday. >> i thought so too. >> he's seen this happen before. he knows the laws of supply and demand on how long it will take. he has shutdown things pretty quickly in terms of the investments he's putting in. >> i was wondering whether you changed your -- because they can't export it. >> what changed my opinion is they can do it. >> they can do it. >> they can do it here and that does change my opinion on it. we shouldn't have a more strict set of regulations for penalizing them for being here. that did change my mind on it. >> i figured mine. >> joe talked about the nasdaq hitting 5,000 for the first time in 15 years.

i've never been able to say the nasdaq closed at a record level. we were within 0.8% for a record close for the nasdaq. if you look at the dow futures we're down by 32 points. the nasdaq down by 7. there were record closes yesterday for the dow. the s&p 500 and russell 2,000. i said that a million times but in over a decade i never said that. >> we're 40 points away essentially? .8 of 5,000. must be around 5050. >> let's check out europe this morning and see what's happening in the early trading. it looks like green arrows even in greece. looked like moderate declines for the hang seng. if you want to check out oil prices wti is up 1.5%. $50.31. in the bond market the ten year

note looks to be yielding 2.103%. if you want to take a look at currencies at least right now the dollar is up against the euro at 1.1165. dollar down against the yen 119.86. gold prices look now like they are barely moving but they are down slightly 1207.10 an ounce. >> we want to get back to tech this morning. mark zuckerberg is in spain speaking before the mobile world congress there and john ford is there. he joins us with news this morning morning. >> yeah, mark zuckerberg was on a diplomatic mission yesterday when he took the stage. didn't break a lot of news. didn't seem intent on doing that. he was talking correctly to carriers in emerging markets about the benefits of sacrificing a little bit to expand internet access to more people. take a listen.

>> when people have the internet overall, you get access to information, health information to stay healthy. education information to increase opportunities. you can find jobs. the economy. so it's incredibly important so that's why it's something that we're all focused on. >> i also had a chance to talk to the head of growth for facebook. he talked about how monthly and daily active users are still the key measurements for growth flying in the face of what twitter is trying to spread about other metrics being more important. he doesn't care about logged off users as much either. take a listen to him. >> as you know it's about 1.4 billion people monthly active and 900 million daily active users. that's too much important. we of course look at different engagement metrics about time spend. how much time they spend on facebook and there's parties

reporting that over 20% of the time spend on mobile comes on facebook. those are the metrics that we look at. >> facebook was clearly, mark zuckerberg was clearly trying to get more carriers on board with it's internet on board initiative giving some data away for free. mainly sbook access in emerging markets. had executives on stage like this giving figures like this. 7 million people used mobile data for the first time as a result of this program. and in countries where they launched the internet.org app. the rate of acquisition for new paying data customers was up 40%. that's the thing that carrier executives might care about. the folks in the crowd maybe not as much but facebook trying to lay the groundwork for more people to have access. maybe economic development. probably people buying things and advertising on facebook overtime guys.

back to you. >> thank you john. before you go, there's a story in business insider that says that mark zuckerberg's lecture or speech was so boring they have pictures of people in the audience sleeping. it's remarkable. >> is that staged? >> i don't know if they're sleeping or looking down at laptops. john, were you there? were you sleeping? >> they are probably sleeping. i was not in that room. i was monitoring the panel from where i could be close to a camera but i'll tell you, he wasn't throwing out all the stats he could have about facebook's growth. this wasn't a speech for the masses. this was a speech to telecom executives in emerging markets. he was very keen on diplomacy for apps they're afraid are taking away sms revenues. he's making the argument that the opportunity in data revenues that they're spurring on are even bigger.

>> i appreciate it. thank you. >> i guarantee you if it had been jessizenberg no one would be sleeping. >> he's a better mark zuckerberg than even mark zuckerberg is. let's get some perspective on how the rally we're seeing now compares to the boom we saw 15 years ago. i was trying to figure out because he doesn't drink. he doesn't smoke. he hasn't changed at all. you were there in what year? >> 97. >> so you were there talking about new highs in the nasdaq big time. he is the senior columnist at yahoo! finance and the chief market able list and cnbc contributor that fought every point up since 1700 and doubted it's veracity basically? >> over the past year and a half yes. >> where was it a year and a half ago? 3500 wasn't it?

3,000? >> yeah much lower. >> okay. you might be right. you might just be early. we're going to have a lot of people on today. i was reading in the journal, everybody says no no no. it's fine this time: this is no overvalued. >> i don't think we should worry because people are trying to reassure themselves that it's different and better and not crazy. i don't know what take away we're supposed to have. it's the craziest we've ever been in the stock market. that was such a singular exchange. it shot like a needle from 4,000 to 5,000 and right back down. it didn't spend time there.

it was at 3,000 a few months before. >> you have much an enormous impact. being able to carry it such a long way. >> by the way, the nasdaq you mentioned it was a little under 24% from the low in 2009. >> you're right. >> but you know what else was, the s&p mid cap. it's just been another index. >> right. >> it's a spicier version. >> it was stretched on that side. >> i know it's only four or five stocks driving thing with the nasdaq. is that unusual? does that happen with other indexes? like with the dow 30 or anything? to me why not just buy those four or five stocks. >> first of all, nobody owns the nasdaq. it's even more concentrated than that. in fact they have to have rules to keep those big stocks like apple from essentially dominating even more. they cap their weight. used to be the microsoft rule i used to call it. >> to that point, the advanced

decline line and the nasdaq stopped a year ago. so yes it's less stocks driving it but it can continue. >> the last time it happened and you probably -- he's gone now. when we went through 3,000 he got really bullish on the nasdaq because of the way it just felt -- it went to 5,000 but shouldn't have been above 2,000 based on anything other than the mania. >> absolutely. that's why people get excited with break outs to all time highs because there's no more resistance. if you're a tech nix, it wants to hold you back. >> that was the other thing. it took 15 years to get back to 5,000. so i was trying to figure out with a normal rate of return for equities how overvalued was it in the year 2,000. so if you did 10% a year it was

at least 100% overvalued. it was probably more overvalued than that. >> yes. >> it was probably worth 1500 and trading at 5,000. >> right. and -- >> it caught up though. it sort of caught up. it deserves to be much higher than 1500 but does it deserve to be 5,000. >> if you look at the s&p and the dow they have exceeded their inflation adjusted 2,000 high. nasdaq needs to rally another 36% to get back to its march 2000 inflation high. >> how much have we exceeded it? people still haven't made much money. >> in dow it's about 2,000 points on an inflation basis. >> that's pretty amazing. the point you were making with the ad line what do we draw from that? >> you're six years into a bull market so it just aged and typically that's less and less stocks that end up driving the indices. >> this is apple although they haven't done much. >> apple contributed about half

of the year to date gains in the nasdaq. >> he's going to be on today. >> the most interesting thing to me if you want to break it down is the nontech stocks that carried it to the round trip. costco up 200% and bio tech and it's less than half pure tech anymore. so it's really honestly it looks a lot like the rest of the market. so the question of does the nasdaq 5,000 make sense is the same question as does s&p 2100 make sense right now? does the market trading at 20 times trailing earnings make sense right now? and you can see yes and no but it's not a special case nil. >> ipo fever, there's about five or six or seven things that you can engage. i wonder how many of them are behaving -- ipo is not flashing any warning signs now.

>> you'd be looking at the fund flows. they have not been strong in an enduring way. you don't want to benchmark yourself against mania. the little guy has to get excited before this thing ends. it didn't happen in 2007. >> but they should be talking about it. they probably won't talk about uber. >> it's a different story for a different reason. >> you can't say we're insulated for bad stuff. >> so at least in tech it's preipo. >> so back in 2000 if you had no revenue in public now you stay private so it's in the premarket where as before it's in the ipo market. >> that's the other thing he's going to say today and that is that you're seeing some in private valuations and i think everybody knows that. i did a trivia thing over the weekend and one of the questions

was uber and the way the question was phrased it didn't go high enough. what's it valued at? >> $40 billion. >> it ended at 40 and when they advised it 40 was one of the middle numbers. it wasn't shocking anyone. we can say it so easily but is there -- it's just hard to believe. >> how does that translate? does it transmit itself into the public market at all. >> the one you might do it is with the analyst coming on saying instagram within facebook is worth 35 billion based on what the private companies are based on. >> it has to equate to it. >> it came out based on it. >> i said you didn't drink but you drink. >> not anymore. >> oh you don't. that's why you look like peaches and cream. >> i have been on a limited calorie diet until the nasdaq

got back to 5000. >> hunger strike. >> all right. but you do, you haven't been on in awhile and you haven't changed. >> doesn't age. >> no. >> you're human, right? >> they worry so much over there. >> yeah sure. >> that guy was as trim as could be. >> yeah thank you. >> thanks peter. >> when we come back this morning, why hilary clinton's use of e-mail is raising red flags this morning. plus israeli prime minister set to address congress today. we'll head to the hill and talk about the controversy surrounding the event right after this. barbara just bought a bike. she wrote a tweet about it. you can't learn much from that. but take data from millions of tweets combine that with your company's supply chain and sales data. apply ibm analytics and expertise,

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prime minister benjamin netanyahu is in washington d.c. set to address congress and tracy is there with details on who will and who will not be there. good morning. >> good morning. there's a number of lawmakers, a growing number that say they will not attend this speech by netanyahu this morning because they think it's more about politics than progress. >> my speech is not intended to show any disrespect to president

obama. >> but his speech invited by republicans two weeks before his election has prompted 50 members of congress to say they will not attend. >> i don't want to see the congress of the united states being used as a prop or a photo opportunity in his re-election campaign. >> president obama calls this speech a distraction from the on going talks to curb iran's nuclear program. >> it's a distraction from what should be our focus and our focus should be how do we stop iran from getting a nuclear weapon. >> netanyahu and lawmakers here think the u.s. isn't doing enough. >> i have a morale obligation to speak up in the face of these dangers while there's still time to avert them. >> for three years we have gone round and round in pointless negotiations while we endanger our security and israel's security. >> national security advisor susan rice tried to reassure israel. >> the bottom line is simple. we have israel's back come hell

or high water. >> and now there's concerns they may leak details of the secret talk before a deal is announced. >> they're trying to freeze the nuclear program for at least ten years. >> but even president obama says the odds are against this deal. they're still working on it. the foreign minister is in switzerland trying to workout the details and that's why the white house doesn't want anything to leak out before. if they're able to seal that deal. >> i think i saw the president isn't going to watch the speech either. did you read that anywhere? >> yeah the white house is saying he didn't watch netanyahu yesterday and that he doesn't plan to watch him on capitol hill today. >> i just want to know -- i just figure i'd want to know. the whole thing seems like a

couple of children arguing with each other. anyway tracy, i appreciate it. thank you for that report. >> let's tell you about other political buzz stories going on this morning. this one involving hilary clinton. he used a personal e-mail account to conduct official business when she was secretary of state. her actions could be in violation of regulation. she never had a government e-mail address at all during her entire time there and i imagine -- i don't know if you use g-mail or hot mail or yahoo! or whatever and by the way this has to be -- this is a larger issue than just hilary clinton. this goes on all the time. everybody in government has -- >> is that the beginning of the mainstream media's defense -- >> no. >> i'm sure the new york times is working on a piece that excuses any action. >> i'm not excusing it. i think there is a bigger story here. >> you're saying everybody does it. >> there's a bigger story here. >> if everybody does it it's

not a big deal. >> i'm not. >> did you come from there this morning. >> that's not what i'm saying. >> but there is electronic correspondence on how to handle this right? >> what i'm saying is -- >> it will be out tomorrow. >> there's a larger story to be told about government officials -- what she has done is on the bigger scale given that she didn't have an address. there's a lot of political operatives and others that use their own personal e-mail address and i imagine they do it for others should you have to hand your g-mail over? there's interesting issues about this. >> get your sore yachts to put this to bed quickly.

>> just in terms of the consistency of your logic, who broke and reported this story about hilary's e-k times today. >> grudge. >> no, the new york times. >> continue on. >> get it out first. so they can handle it. so they did diffuse it. >> let's do that. we're honing in on gold prices. currency levels in crude oil this morning the founder and editor and publisher. it's great to see you. >> good to be here. >> we love seeing you when you're in town. thank you. >> you're scraping the bottom of the barrel when you get me in. >> never, sir. we're thrilled to have you here. let's talk about what you think. we talked about nasdaq 5,000 already this morning. >> i'm on board with that already. >> i'm watching what's going on in the foreign exchange market more than anything. we got to 120 and we had somebody come out last night, a professor that said that 120 was a bit extended and the yen came

back a little bit but i'm watching what's going on. the chinese are upset that the yen has been as weak as it has gotten and they're worried about losing market share. i'm interested in what's going on in the oil market where they're moving 2 and $3 against one another. things are happening that haven't been happening before. i find those things interesting. >> what can the chinese do? they may not like that the currency is weak or what the central bank is doing but they have been doing it for a long time. >> they have been openly manipulating their currency for a long time. they get a good deal weeker relative not to the u.s. dollar. they can make that work. they're concerned about that. >> it will be a manipulation and not a reflection of weakness in the economy. >> when it comes to china it's always manipulation. that's the way it is.

i understand it and i don't blame them. they're concerned about the fact that the yen moved to 120 and they're picking up export trade. they'd like to tell us they're going to be consumer oriented society and the fact that they're losing relative japanese is disconcerting to them. >> it seems there will be a lot of problems in the coming years. the central banks are acting aggressively and you're going to see things with a little more friction than in the past. >> not a question. you're going to get a lot of upset people here in the eyes and upset exporters here in the united states as we watch the dollar continue to get stronger. we're only in the fourth inning of a nine inning game as to where the dollar can go when you compare to where the dollar went during the regular administration. i think we just started and it's going to be terribly disconcerting to the automobile manufacturers and farmers because they're going to lose export trade with wheat. that's something to pay attention to. the dollar can get stronger.

you're going to see a 150, 175 yen and well under barrel tif to the euro. >> are you betting that? are you placing bets on the dollar? >> i've had bets on the dollar for a long period of time. i'm long the english speaking currencies and short the yen and short the euro for a long time. >> traders think the dollar already diskounlted the risecounted the rise in rates. we're still at 0. >> before this is done in another several years we have to get the feds fund rate back to 3.5 to 4%. we are going to because we're going to have another recession. >> we stayed at 0 for six years and qe and people assume europe is going to do qe for a little while. they could be doing this for the next two or three years. >> everybody thought it was going to be a one off stance. >> we did qe 3. if you think it's going to be a one off circumstance for the ecb

you're wrong. they're going to do exactly what we did and what the japanese have done. they have been easing for 20 years. the germans are going to have to do the same thing. they're going to argue against it. that's what is going to happen. >> let's talk quickly about oil prices too. which way are you betting on that? >> the trend is downward. the problem is going to be it's going to be completely filled up by april or may. >> so you have to sell this stuff. >> you have to sell this stuff. they're going to have to sell it. there won't be any place to go. if you're going to be a better on crude oil bet on storage facilities if you can. >> the storage facilities look like they're about full at this point. which means there's nowhere left to stick it and stuff it away. you have to put it on the open market. >> that's right. the producer has no choice. he needs the cash flow. i found it amusing. people were talking about iran cutting down production of crude oil because it fell below the

cost of production. that's garbage. second of all they made promises to their societies pred gated about 120, 140 130$130 crude. they need the cash flow. that's the problem. >> you said you have snow in virginia. >> we have 17 inches of snow. >> this global warming. >> it's out of control. >> do you remember robert f. kennedy jr. said any kids growing up north of virginia would never see snow. never see snow never be able to ski. that was before we really understood. >> our children in virginia haven't been to school in two weeks. >> that was before we understood the warming causes cooling. or have we decided that's just weather. >> i'm always confused by that. some things are just weather unless it's a heat wave in the summer. >> it's weather unless it's not weather. >> okay. i need a list of things that aren't. >> thank you for joining us. >> always good to be here.

>> thank you. coming up could president obama raise your taxes through executive action? he could if he could. he might be able to. that controversial debate with this republican congress is totally entitled. first as we head to break, here's a look at yesterday's s&p 500 winners and losers.

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>> not as unlikely or crazy as you might think. it was in reference to bernie sanders who is -- he is a known -- he's not a republican or a democrat. he's a socialist. >> so he has called on the president to raise more than $100 billion in taxes through irs executive taxes. he's very interested in looking at it. now i don't want to leave with you the impression that there's some announcement. there's not. but the president asked his team to examine an array of executive authorities available to him to try to make progress on his

goals. they're talking about closing loopholes for corporations. >> so for example on the private equity issue, that's something where potentially you could have where the irs could say, you know what this is not the intent of the law the way it's set up. >> they say these shelters set up -- they have been things people are skated by with for years and we're not going to allow them anymore. >> obama's preferred option would be for congress to pass a corporate tax hike. >> but since that's not going to happen, this might be the way it goes. i thought we were talking about corporate taxes being too high. but now see i think, obviously, andrew and i know you argued this in the past these guys that wrote this stuff, hundreds of years ago about, you know legislation, to change a law or

something, they did not anticipate this republican congress, right? they didn't -- they didn't know how hard this was going to be. so i fully -- >> endorsed this. >> you think sits way to go. >> absolutely. >> given this congress -- >> i think i should have been stricter on some of the rules. >> i think so too. >> i'm just saying. >> why not -- well tax on individuals. >> that's not what they're talking about necessarily. if that's what they're talking about it's crazy. >> you don't need all of this -- wait a minute the people that have so much don't need this much. why not intimate domain. >> they always skated close to the law and to the letter of the law. >> private property is overrated. >> that's not what we're talking about here. >> you didn't build that. you didn't build your life. >> i built it on the backs of

lots of people including you. >> let's watch this closely. it's pretty good. >> we'll see where it goes. quick story for you because we talked about it a lot. security cyber security credit cards. and supposedly everyone is getting new credit cards with a chip on it. >> i haven't gotten one yet. >> i shouldn't show it because the number will show up on the screen screen. >> indiana statediot. >> we think we're secure but we're not so secure. we're not doing what everyone does in europe and elsewhere which is when you use the chip you have to have a pen. they give you a pin number. american express won't. so all it will do have is the chip because it cost too much. >> is it the credit card companies are too cheap or the retailers are buying machines? >> i imagine it's a combination of both but we thought we had sort of laep frogged and now

we're not. >> if you love europe so much why don't you just move there? if we're so cheap here and they're so great over there and they do things so well all the time. >> it's another one of your fourth grade insults. >> their rich creamy sauces and their mistresses. go over there. >> i'll have to join seema mody. >> you're a fan of france yourself. >> i can't wait to go. >> i love it there. >> skiing the alps. >> i'm kidding around. people know that. but they still get mad. >> we're out of time but when we come back we'll talk about life in the fast line. the ceo is joining us from the geneva auto show when squawk returns in just a moment. in new york state, we're reinventing how we do business so businesses can reinvent the world. from pharmaceuticals to 3d prototyping, biotech to clean energy. whether your business is moving, expanding or just getting started... only new york offers you zero taxes for 10 years with startup ny

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welcome back everybody. a multibillion dollar deal involving citi group just out. they're selling to spring leaf for $2.5 billion. they'll be the largest sub prime leader in the united states. citi group up by 51 cent. >> is that on that card? >> no i see it. i do have this. >> that's what we're talking about. >> we're back to the credit card issue and what the -- it's the gold chip. you can see it. >> the chip is blue. >> it's cold. >> that's what we're talking about. coming up -- work with me. squawk box -- i say --

>> you're doing that one and then i was thinking of the gold and white dress. is it gold and white -- >> are you thinking about the clinton blue dress? on the portrait? that's unbelievable. >> the gold and white dress. i just outed myself. >> squawk box in the fast lane. we're going to hop in the driver's seat with the ceo of lamborghini. come along, next. ameriprise asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry but you worry. what happens when your paychecks stop? because everyone has retirement questions. ameriprise created the exclusive confident retirement approach. to get the real answers you need. start building your confident retirement today.

welcome back. the issue of income inequality is real. but the predicament is how to solve it. warren buffet addressed the topic. >> as the economy becomes more specialized they go more and more at the top and more and more people get left behind. education will help. but the earned income tax credit i think is much better than the minimum wage. it extorts the market too much. >> did go on to say a change in the minimum wage could result in less unemployment. he is the chairman and founder of ceo operation hope. he's in washington d.c. today. he'll be at the white house a little bit later today and you are celebrating the 150th

anniversary of friedman's bank right? >> yeah good morning, first, andrew. >> good morning. >> we'll be at the white house for the president's advisory council and to warren buffet's point at 10:00 with secretary of the treasury and others and we'll be celebrating the 150th anniversary of the friedman's bank which lincoln created to teach freed saves about money. but that's the legacy we plan to continue. >> let's talk about how to fix it. one of the things so unique about this is you think there's a way to do it without capitalism. >> i think to obsess about the minimum wage is really an argument over crumbs. and i don't want to talk about crumbs. minimum wage should be set in a way that doesn't allow people to be dignified and survive until

tuesday without starving. we should be talking so i agree with mr. buffett a hundred just last year. a focus on the earned income tax credit. where it's a reward for working. and if you have two children and work, the government owes you four grand. that's going to be $12,000 to reset your life or start a small business. so we should focus on the fact we have more small business debt than small business bursts today. that's item number two. item number one is aspiration. i slightly disagree with mr. buffett that education can't change this completely. we need to connect education with aspiration which is what we're doing. i'll announce something this morning to lift up young people and connect education to a job or job creation. so aspiration and education. number two is small business creation. and number three is giving people more of a living wage argument, not a minimum wage argument.

>> so how are we supposed to think about what people say is the growing gap. does the gap unto itself matter or is it really about what we do at the bottom? >> it's the hope gap. it's what matters. it's the literal gap that people argue about. statistically this way, or not in the danger zone. that's not true. when people believe their children won't do as well as they did, then america is in danger. when you lost your hope you become not skeptical, you become cynical. now you don't believe what your politicians say. you don't believe what the newscasters say. you don't believe anything. and you don't believe in yourself. and you start to have a confidence problem. so the reality is as you well know andrew, the bottom so-called bottom of the economy is driving the largest economy on the planet. 70% of our consumer spending is the average person.

>> you know whenever you're on i think, wow. yes, yes, yes, yes. i just nod and nod and nod. and i'm just wondering. the president can only do so much. but i'm wondering instead of -- you know how many speeches he's given on the minimum wage. you know how many times he's done that with the bully pulpit. >> yes. >> i'm just wondering if he had replaced that -- this is what i argued. it's not -- it doesn't do enough. it doesn't help enough. it's crumbs just as you said. if he had instead used a push for other things you're talking about, wouldn't that have been a more productive use of his time? and what do you attribute it to? should i be cynical that it's a purely political move to sort of pigeon hole the republicans? why not do something that's significant instead of crumbs? >> well, i think that part of his job is justice and part of his job as president is setting a baseline.

we never like our presidents. we like them before they're president and after they're president. we don't like them when they're president. >> speak for yourself. >> let me check that box. and this morning we'll deal with a print issue. so to your point, what we will be announcing in operation hope today, this is going to help the president help america. it's going to help everybody. we need to return to an apprenticeship generation. what i'm calling for is a b-minus group. the kids with d's, c's, and f's, we want them to aspire to get a b-minus. if they do that i'll give them a business internship right out of school. and for 500 bucks we'll give them a business suit a business card, transportation and food money for six weeks. if a kids works at "squawk box" or ibm or google or wherever for six weeks, the kid will change

the business and the business will change the kid. and that will connect education with aspiration, give the kid a reason to go to school. for 500 bucks we can do that per kid. that means the little barbershop can have the internship. or cinnabon can bring on 200. i think that helps the president say yes to something that's more aspirational. he needs our help. >> one final question for you which is about technology. one of the things we worry about is technology is going to displace workers. where do you stand on that and what do you do about it? >> i think that we're human beings not human doings. we're spiritual beings having a human experience. we cannot displace the fact that behind apple was steve jobs a small business owner at one time. so i think technology -- the

internet is a new tv. and the tv was the new radio. and the radio was the new morse code. you know? we can't overestimate it. it will be transformational. if we over-rely on it. america's magic salts will die. we've got to believe in our people. that's why we're in with frederick douglass started and put a thousand in these bank branches. >> john bryant, that's a great message. also i need to say i misspoke when i introduced john i mentioned warren buffett. >> freudian. >> it was not. i said he thinks there's going to be less employment. >> and you say we worry about -- but you worry about. we've had tech visionaries on here saying there's always been this disrupt of progression. it never displaces. >> i'm not alone. when we come back we'll also be hearing from the ceo of

lamborghini. plus nasdaq 5,000. we'll talk to rick sherlund. also david rubenstein is our guest host. "squawk box" will be right back. [ male announcer ] at northrop grumman, we know in the cyber world, threats are always evolving. at first we were protecting networks.

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the nasdaq hitting 5,000 for the first time since the year 2000. >> segment revenues for cmgi rose 2,150%. >> erin brockovich was tops at the box office last time these levels were here. trip down memory lane and a look ahead coming up. plus are flight systems in danger because of cyber attacks? why air traffic control may be vulnerable to hackers. and legendary investor david rubenstein is finding value in one of this year's hardest-hit

industries. >> takes a lot of brains to do what we do looking for a way to make some dough for you. we do it all. so pick up the phone and give us a call. >> why carlisle is putting more money in the sector that burned them in the fourth quarter. the second hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm becky quick along with joe kernen and andrew ross sorkin. the tech rally. the nasdaq closing above 5,000 for the first time since the year 2000 and only for the third time ever. now 8% to go to get to a record close. dom chu will join us with a look at the giants in the nasdaq. in other technology news, google planning to build a small scale

wireless service. and a big move for gas prices on the west coast. the eia is reporting a spike of 37 cents a gallon for the week that just ended. that gets us up to $3.12 on average. thap is the largest week to week includes . let's check out the u.s. ekquity equities at this point. the dow closed at a record level yesterday. s&p futures off by 4. the nasdaq down by 9 points. best buy is posting results. i love this. you know what? let's get them all. the net number it started with $1.46. adjusted $1.48. luckily they're all within a couple of pennies of each other. $1.35 was the estimate. whichever one you use, either

adjusted or continuing of $1.47 probably. it's above. revenue, though is just below. 13.345 was the estimate and the company talked about 14.21. pretty interesting, though considering the company does $9 billion in the april quarter. around $9 billion in the july quarter. around $9 billion the christmas quarter. so this is obviously the most important number. looking at comp store sales in the fourth quarter rose 2%. the company is also declaring a special dividend of 51 cents cost $180 million to do that. another billion-dollar share of purchases over the next three years. it was weakness in the tablet category that the company is talking about. and i'll put all this together. stock's now trading up.

the bid is $39 a share right now. >> 51 cents a share because of proceeds from a legal settlement. it's not something they're necessarily going to do often. they also are raising their quarterly dividend to 23 cents a share. >> that is. that's a huge increase. it's not a yield stock necessarily, but it's a 2% yielder now. that will raise it to about a 2.5% yielder which is not bad. >> as we mark the nasdaq's long and very strange trip back to 5000 we're finding out not all giants of the nasdaq are giants today. dominic chu has the list of leaders then and now. >> there is one company that's a constant here, but let's make the comparison. back in march 10th of 2000 that's when it hit record closing highs. we're trying to get to those points right now. but if you look at the stocks that made up the top three in the nasdaq back in that particular time frame, back in march of 2000 they're names we're all familiar with.

large cap technology names. intel back then worth $400 billion. cisco $467 billion. and microsoft, $526 billion back then. these aren't the record highs for each stock. rather where they were in terms of market value on that day march 10th of 2000. if you look at microsoft, its peak was back in '99. it was worth over $600 billion back then. those arewere the top three. it's not that different. microsoft is still in the top three in the nasdaq of today. worth $360 billion. google, $381 billion. so one internet giant that wasn't around as a public company. and then you have apple. we know how much it's worth. today $748 billion. it was pushing 770-plus at one point. the comparisons are always going to be difficult for a lot of our viewers out there. if you look at the inflation adjusted numbers, if you can't

compare microsoft today. microsoft's peak back then if you adjust for inflation was somewhere around $800 billion or something more. again, these are not apples to apples. i know you look at this all the time. you look at the way these companies are structured, large cap technology is still very much a driver of today's nasdaq much like it was back in 2000. back over to you. >> dominic, you remember a guy named rick sherlund? this guy was -- if you could get rick sherlund on to talk about microsoft, it was like having bill gates on. i think sherlund knew more about microsoft than bill gates, actually. >> during that time i was just starting my career on wall street back in '99 and 2000. so a lot of these names were very familiar only because i was just so in tune with what my new career was going to be like. of course it was at the height of the dotcom boom. >> thanks dom. let's bring in rick sherlund.

a software analyst, head of the u.s. tech research team. he joins us to look at the differences in the dotcom bubble. also with us is our guest host for the next two hours, david rubenstein rubenstein. chairman and ceo of the carlisle group. you'll be with us for awhile. it is more justified in your view at this point, rick the 5000? more underpinnings in terms of results? >> i think there are four big differences. first there's a massive difference in valuation. nasdaq was selling for well over 100 times earnings in 2000. it's now about 23 times. interest rates are very different, markets don't usually end because they have a long duration. they end because the fed forces the rates higher. so we've had a long market and it's done well. absolutely. but valuation underpinning looks very different. the composition of nasdaq is very different.

we had seen over 600 ipos in 99 and 2000. we saw a little over 50 last year. companies are largely cash flow positive now. so the balance sheets are very different than they were. they're not so much concept stocks. you're not getting the day trading we saw last time. you're not getting stock tips from cab drivers. the fact they're asking the question is a healthy sign i think, that the individuals are a little skeptical about the market and not the hype that we had seen last time. >> i want a cabbie to give me a stock tip on uber. that might not happen. >> no. >> or hotel on airbnb. did you mention ipo dzs -- >> i cover the cloud area. the computer software service names. so i got stocks that sell at ten times next year's revenues. most of them are cash flow positive at this point.

i think there's a point to the private market that will book early and recently went into potential bubble characteristics and the private market. you've got some mutual funds investing. so companies don't just go public as quickly as they did before. >> you might know about that. >> we have about 75 companies today with a billion dollars of value that are not yet public. that's a high valuation. whether they will go public or not, we don't know. valuation is $30 billion for uber is high for a company that's not public. and as you pointed out, a lot of the companies that didn't used to invest in pre-ipo companies are now investing. >> that's what i wanted to get at. when you think about blackrock getting into uber or you guys all of a sudden the pensioners and people who have 401(k)s and stuff like that are in this stuff in a way they didn't think they were. >> that's true but so far it's worked out reasonably well for

them. most of the companies getting ready for ipos and going public are much lower valuations than before. that was not the case in 2000. also point out the 5000 inflation adjusted it would be about 7000. we did mention that earlier. what about valuation on $40 billion for uber. that's what we were talking about earlier. >> it does seem high. but remember a lot of people thought facebook's valuation before it went public was high. and it was much higher than that actually. so a lot of people have made money on companies like facebook before they went public. now people feel that investing in these companies before they go public is probably a good bet. when the first one of these goes bad and people lose money, then it will change. right now there's a feeling i think in the market that these are pretty good bets. when you take companies that are known around the world, people feel these are not just companies that will go overnight down. so uber or airbnb have real

earnings and devoted followers. >> do you think, rick that there's any correlation? finally microsoft, finally. how long did that just build a base. ten years maybe? the stock. >> it peaked at six times earnings. he hit a price of almost $60. it's at $43 now. but microsoft is fundamentally a different company. it missed the cloud. it missed social. it missed mobile. so its business is more challenged than when it was a monopoly. and 15 years ago juxdge action wanted to break it up. farce is the leading tech names, you've got google and facebook selling at 20 times earnings now

on the internet side. cute little sock puppet identified what was going on back then. it was about eyeballs and cliques. now we see companies as david mentioned that are much more seasoned by the time they hit the public market. so i think for microsoft, oracle s.a.p. apple, you look at tech companies and if they're at multiples that's high to a lot of the universe. >> now everybody knows them. it's just different than before. used to take about five years. now it's about ten years on average. these companies are much more mature when they go public. >> we have the pets.com founder joins us tomorrow. >> that's fun. i was going further back. do you remember when he was at goldman? >> absolutely. >> you were able to do all the banking business and do the

analyst work at the same time. right? >> yeah. in the '90s -- >> he's no rubenstein, but you're -- i mean you did very well back then. i thought you had as much money as ballmer at win point. >> no joe. >> close though. now, those were some heady times. >> yeah. so i passed on the internet space. my colleagues did internet. i stayed with enterprise software. i was involved in the ipos of many of the leading client server software companies. it's all about the cloud today. but there was a wave of ipos because it was a platform shift from main time frame to new client server companies back then. so it was a very exciting time for the market. those companies of course didn't get to the valuation levels a lot of the dotcom companies got to. but they participated in the froth you saw associated with the bubble as well. >> i would say microsoft,

sometimes when you have a near monopoly, your company falls apart. microsoft has reinvented itself and has a high market capitalization and still a successful company. even though it's had to lose a lot of its monopoly power in the pc. i think it's done a pretty good job of reinventing itself. >> is it hp? >> probably. >> compact, hp. >> okay. anyway, you punted on my question how great it is to be an analyst and banker at the same time. >> i think we did a good job drawing a line between the two and preserving credibility. >> all right. i wasn't saying you didn't do that. take it easy. all right. thank you, rick. thanks for coming in. we appreciate it. david will be with us for the rest of the show. when we come back coming up we're going to talk more to our guest host david rubenstein. he says energy is a great investment. we'll get his thoughts on the drop in oil. then we're going to talk nasdaq

5000 with bob davis. plus the next tech friends. ben lerer. and at the top of the hour you're not going to want to talk about this. we've got an interview with fcc chairman tom wheeler. we're back in a moment. ** opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. so what's going on today?

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♪ welcome back to "squawk box," everybody. we've been watching shares of best buy this morning. getting a boost after the retailer's earnings came in better than expected. the company now announcing a special dividend of 51 cents a share and raising its dividend regular dividend by 21%. and the downturn in the energy sector late last year hitting a number of private equity firms with exposure to oil and gas companies created distressed debt opportunities at the same time. let's jump on that topic now with our guest host david rubenstein. you had some energy. >> we've been a long energy investor for quite a while. >> so you had it killed on one side of this. >> i wouldn't say killed. it's part of our legacy business being relatively small in energy. now we've got about $9 billion

to deploy. we're happy with the lower prices. when prices are down about 50% in the peak you can buy things at lower prices than you could before. i think it will come back. probably two or three years it could not happen overnight. we have a long-term perspective. >> your long-term perspective is two or three years on this. >> we actually hold on your companies for six or seven years. >> when you think about the price, what do you think the price will be two or three years from now if that's how you're looking at this? >> i think it will be higher than it is today. but every time i ask an energy expert, i wouldn't say i'm an energy expert they say know don't know. nobody predicted what was going to happen. if you ask them to predict a year from now, they'd be the same. >> is this an issue where you have to pick your places? we spoke with warren buffett yesterday. he recently sold out exxonmobil shares.

he thinks he can take that money and better deploy it. >> i'm not going to say warren buffett doesn't know what he's doing. he certain i did does. in terms of exxonmobil that's different than companies we're investing. we're investing in smaller companies. and we're making investments around the world. we think investments outside of the united states are also very attractive in the energy area. energy infrastructure very very attractive. buying some distressed energy will be attractive. >> thinking about fire sales. >> some of those. the great fortunes are usually made when prices are low. it's not when you buy at the top and think they'll get higher. prices are low and that's where you make a lot of money. >> if you wonder about demand you think everybody in china is going to buy a car eventually. but then going to 30 miles a gallon. you think about all kinds of disruption technology that may not make demand grow as quickly. you may need to cut back and not have as much activity.

if we keep cranking it out, supply might continue to rise. >> populations are going up. >> i know. that's been the long-term story. >> we should have never caught up with demand. it's amazing what's happened in e the last five years. it's amazing we have added 9 million barrels a day. >> and as they become bigger and bigger they will become bigger and bigger consumers. i don't know if they'll get there right away. >> get any of these guys on here, anyone will tell you -- what you just said seems to be the conventional wisdom. if you're competing for assets that are supposed to be distressed, they're not really selling at distressed prices. >> if steve schwartzman and henry kravitz were buying things only in new york city maybe you'd have a good point.

but it's a global investment world. it's a big world to investment in and we don't have that much money to invest relative to the opportunities. >> in terms of the distress do you claim -- is there any value in waiting? >> well there's always value in waiting. >> right. the question is do you think we've hit the bottom? >> i don't know. but i think generally when you wait to hit the bottom you often miss it. when you say i'm going to hit the bottom it goes past you. and i think you've made a good investment even if it goes lower, it will probably come back up. and some things are beyond your control. we don't really know what government policies are going to be in russia or other things. but still i think energy is something we have to live with. >> more focused on natural gas or oil. >> i think renewable energy is a great thing and we might get to heaven quicker by investing in it, but it's not clear you'll make money in it.

i think this will be one of the great areas to invest over the next ten years as it has been for years. >> tough to make money in some of those things. we don't like ever talking about picking bottom. >> never. coming up a warning for the faa. why air traffic control systems may be at risk for hack attacks. that's nice. but first new data on the world's most expensive and cheapest cities. plus judge judy cashing in. that story next. over 20 million kids everyday in our country lack access to healthy food. for the first time american kids are slated to live a shorter life span than their parents. it's a problem that we can turn around and change. revolution foods is a company we started

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welcome back to "squawk box" this morning. the world's most expensive city. can anybody guess what that might be? singapore retaining that title for the second straight year. that's according to some new data from the economist. rounding out the top five paris, oslo, zurich and switzerland. the cheapest city karachi, pakistan. there you have it. judge judy is one of the highest paid personalities on tv. she solidified her superstar status with a contract extension with cbs that extends through

2020. the judge made more than $47 million a year under her previous contract. >> that's in the previous deal? >> yeah. this time her deal includes a production component. so that could be better for judge judy's queen bee productions. >> i think that's amazing. >> it's the of her personality. she's a trip and it's somehow worth $50 million a year. but you're okay with this? >> i'm okay with this. >> but not for ceos. >> it's a market. >> but not for ceos. >> it's a market for the ceo too. >> like pitchers. it's okay. but not for ceos two or three is the market cap. >> that's no what i said. >> in a market where you're getting there. >> cheers. >> thank you. >> you wouldn't be in favor of that either. when we come back this morning, an internet pioneer on the nasdaq we'll talk to him

about the return to 5000. former ceo bob davis joins us next. as we head to a break, here's what pimco founder bill gross said about hitting nasdaq 5000 yesterday. >> it's a landmark number. i think it reflects some over-valuation in terms of nasdaq types of stocks. a little bit of a bubble. not the same bubble as in 2008 or 2000. but certainly an over-valuation that might at some point be corrected.

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♪ welcome back to "squawk box" this morning. the last time the nasdaq was above 5000 it was the year 2000 and destiny's child topping the charts with "say my name." we'll talk to bob davis in a moment about the comparison between the tech rally going on now. macau gaming revenue slumping a

record 49% last month. that drop happening. and take a look at retailers beating the street. best buy announcing a special dividend of 51 cents a share. >> we should also tell you about two senators raising the alarm of hacking vulnerability to america's aviation system. senators bill nelson and john thune warning that weaknesses that weaknesses in the faa's networks could put traffic control systems at risk for cyber attacks. they know this because of a january report from the government accountability office. it's a huge concern and obviously for anybody who's on the plane today thinking about these things, too, not exactly what you want to think about. they will be calling the transportation secretary to testify in front of them. it's been a long road back to nasdaq 5000. since the year 2000 we've seen the apple boom the rise of facebook and social media and the markets suffering a major

crisis. before all that in 1995 a search engine with lycos was one of the leaders of internet and search. bob davis founded the company with $2 million. it would then become the fastest ipo in history. by 1999 it was one of the most visited sites on the world. and in 2000 lycos agreed to be acquired by terra networks. bob davis left in 2001 were high land capital partners. he joins us with his perspective this morning on this long trip back. it's great to see you today. thanks for joining us. >> good morning. it's great to see you. >> how do things feel this time around when we hit 5000? >> i'm wondering if there's any possibility you could cut me in on the judge judy deal you were talking about? that sounds nice.

>> if we could get our hands on that we would too. >> the nasdaq is better than it was back then. the names are all different. you have companies like facebook that didn't exist in 2000. we have a very very different appetite, i think, in the marketplace today. and what we're seeing in the companies that are out there for the most part really based on real revenues and real earnings which is a different phenomenon than we had in 2000. i jump back when lycos was a public company. fortunately we grew into our valuation and became a real company with earnings and revenues. at the time we went public we had less than a million dollars in accumulated revenue. that just wouldn't happen today. you wouldn't think of seeing something like that today. >> did you know at the time it's really easy to look back and say we were all crazy but i remember the mania at that point where people thought it doesn't matter. you can just look and build these things. and eventually the numbers will catch up. did you recognize at that point that it was maybe a little bit of a mania? >> yeah it didn't seem real. that was one of the principle

drivers to why we sold the company when we did. we missed the peak of the bubble, but not much. it traded down right after that. we announced it at the peak of the bubble. it didn't feel real. opposed to today, today it does feel real. you can argue any given day is valuation right or wrong, maybe it's a little high maybe it's a little low. but it doesn't seem out of whack. you compare it to 2000. we had a revenue multiple on the market today at about 100 times revenue on the stock. today it's about 30 times. we had a pe multiple back then that was -- i'm sorry, that was a pe multiple. we had a revenue back then that was similarly high. >> bob, one of the things we've been talking about is how average investors feel about it. 15 years is a really long time to get back to 5000. david rubenstein pointed out if

looking at inflation terms, the nasdaq should be at 7500 just to get back to that point. do you think average investors will burn so badly so the young people don't want to come back into it? >> no i don't think they're looking at it. it's a different market we have. as i said companies are out there based on real earnings and real opportunity. you look at the businesses that are exciting today, it's different. you look at the top five nasdaq company, the only one that's in there in 2000 is microsoft. so it's become a very different scenario. and the companies by the time they're becoming public today achieved a different level of accomplishment. what i do private markets are financing companies to such a significant level. companies like uber that you look at today with an excess of a $40 billion market cap, private company, that wouldn't have happened in 2000. they would have been a public company in the blink of an eye. it would have happened very quickly. so it's become something very different today. in fact, if you look at a lot of the real success stories that

didn't exist back then. twitter didn't exist in 2000. facebook didn't exist in 2000. >> google wasn't public at that point. >> google was a year and a half old as a business at that point in time. it was all very different. as i said if you look at the pe multiples that we're seeing today versus 2000 or for that matter, the revenue multiples we're seeing today, they're just very different things. the companies are far more fairly valued in terms of what we're seeing in the market place today. >> the market, you got to give it credit for recognizing the potential of the internet. the internet incubator, i don't know how much that was. >> i sure do. it seemed like that was the wave of the future. unfortunately not the companies that were going toic ta us there. >> you just had to have the word incubator in it. >> but the market was right. we had no idea the internet was going to control every aspect of

our lives. >> unwith of the changes that occurred is in the old days 15 years ago, if you needed liquidity, you had to go public. one way to grow your company. the venture capitalists didn't have as much money to feed these companies. and also you had to go public to get money. now there are a lot of people who will give you money pre-ipo. and there's liquidity in that market. so you can sell your shares pre-ipo which was done with facebook and others. that's a common thing now. >> the whole thing boggles my mind. i've been watching older shows. when they have flip phones it was like when was this made? it was only four or five years ago. it's like they don't have iphones. when was this made? every person on "sons of anarchy" would have an iphone now. what are those little things? that's only four years ago. >> if you extend that out and look today at the wall street journal publisher's list of the 71 most highly valued companies

they're private. that wouldn't have existed. there would not have been a single one of those in 2000. they all would have been public. if you look at the 70-plus names today, i think it's a safe bet. i don't think any of them existed in 2000. but when they hit the market, the difference today versus then. that they're really qualified solid businesses that have real metrics underneath them. and that was a different game in 2000. i mean you look at the companies that we're seeing public offerings, a web van that was ultimately bankruptcy at the time of its ipo had total revenue. and $96 million on accumulated loss. you compare that to apple today and they earned earnings of $75 billion in the last quarter alone. so we have real substance underneath it today. i don't think it's unreasonable to look at nasdaq and say we could have a market of 10,000 or

11,000. now as quick as i say that, the market will come crashing down. i don't think by today's standards that's an unreasonable expectation. >> nasdaq in 2000 had about 80% of its companies were tech companies. now it's 60%. but it's not only a technology oriented exchange. and the numbers on revenue we think were this. in the year 2000 when companies went public they were trading at 31 times revenue. now it's about six times. >> why did you choose nasdaq? >> our cfo at the time had previously been the cfo of nasdaq. but most of the investment bankers didn't honestly say it made that much difference. >> much cheaper. >> well, the fees were cheaper. but relative to the amount of money we're talking about, we thought the services we'd be provided by nasdaq were

different than what we're happy. >> hey, bob, want to thank you for joining us today. always appreciate talking to you. >> it's always great to see all of you. take care now. >> what happened to the -- remember b 2 b? who dominates that now? must be a big company now. >> i don't know. in the old days they told me this is the last line of the internet world and it was a way to get things to your house. and it was the last line of the internet. it was basically people on bikes taking things around manhattan on their bike. that was a high-tech thing. look, i think that the world has changed a bit. but mostly it's because these companies today are really part of our lives. before they weren't. the power in the world in the united states has shifted. it used to be the power was in new york city the money. and washington political power. now the power has shifted to silicon valley. the politicians go to silicon valley. >> and that rings true to what

we've seen with the regulatory debates and what's happened with net neutrality. >> what's the internet of things going to mean. five years from now we're going to be talking about the same way i just talked about flip phones five years from now. the internet will change things so much. >> wearing a timex watch. >> if i lose it it's $19. >> jeez what if you had to replace an expensive watch on only 8$800,000 a year? >> i appreciate it. >> i like it. >> sure you do. okay. up next we're looking ahead -- in fact, you should have a disposal -- none of your business. next big thing in tech. ben lerer and his father have invested in 185 start-ups and

have stakes in buzzfeed. and ben will join us next with a look at what's next on the horizon. hey mom, you want to live by the lake, right? yeah.

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today's new tech star -- today's new stars of tech rb, rather are companies will revenue to back it up. here to walk us through the next step of landscape -- who's -- i'm having a tough morning this morning. ben lerer, he's the managing director of lerer hippo ventures. >> thanks for having me. >> we keep talking about the valuations of this stuff. especially the content companies. >> what content companies do you think has crazy valuations? >> buzzfeed. i don't know. vox. i know you're conflicted. >> yes. buzzfeed i think is a very special case. i think they have an opportunity not to be just sort of viewed as a competitor to the "new york times" or media potentially could be looked at as more of one of the social media

platforms. i think their motto also enables them to start to let advertisers self-serve down the line which makes this a much bigger business than it looks like. >> so it's not just about content. they're not a content creator? >> no. they're a technology company at their core. they're about data. they're about engagement and distribution. >> haven't all these decided they're pretending their technology companies now? >> i don't think all of them are pretending. i think lots of them are, absolutely. but buzzfeed is not a pretender. i think at the platform -- >> you think it's a technology masquerading as a content company? >> i think so vox is much more about a content company than technology. but they have technology that enables them to distribute more effectively. and therefore have a leg up when they're competing with traditional media players as they go digital. >> how about vice? >> vice is an interesting one. i think vice is much less of

one. using digital to build a brand. this is something my dad talks about. 30 years ago you can build a brand in 30 years. and ten years ago you could build a brand in ten years. and today you can build a brand overnight. vice has done a really good job building a brand with marketers incredibly quickly. they don't have a huge owned and operated audience. but they've done a great job using traditional monetizization. now as they think about going to tv as they think about their international licensing business they use old school monetizization to build on the back of a brand they've built. >> i'm trying to figure it out. do you think we're in a bubble or not? >> i don't think we're in a bubble and i think you're talking -- the companies you've mentioned now i think are special ones. i think there's a tier of companies that are sort of aspiring to be there that are overvalued. so companies raising it $200 million on an idea that they are

going to figure out how to monetize. they're sort of rapidly growing audiences. i think those companies have all done a good job monetizing. so i don't think those are good examples of bubble. >> do you think when we talk about bubble you know we talk about the nasdaq and where it is now. we think to say that's a public market. the private market has become a public market. >> it's definitely -- there's definitely a lot more sort of scrutiny and a lot more coverage that these private companies are getting today. everyone is really focused on them in a way i don't think used to be the case. but it'll be interesting as some of these companies do go public. and it'll be interesting to see how that sort of goes and how the company gets treated by public investors. but that's a company that people love. and i would see that stock performing really well out of the gate. >> we teased the viewer at the beginning of this that you can tell us the next big thing. whap is the next big thing?

>> i focus a lot of my time also on commerce businesses. so i'll give a shoutout to my guys at kas per. i don't know if you're familiar with it yet. it's a mattress company. >> yes. i've been seeing ads everywhere. >> the reason you're seeing ads is the business has extraordinary financial dynamics out of the gate. they have awesome margins. it's a king size mattress that's $950 a queen size that's $850 et cetera. and super transparent supply chain. >> how is that different from sleepies, or -- >> well -- >> and they deliver it i think. >> it was one of the creepiest experiences to buy a mattress. you went into a store and you laid down on this thing for ten seconds while some guy stood over you and you're like that's the one. and you wanted to leave because you were trying to negotiate and then the price got cut in half. it's terrible. and you can't actually -- like, buying a mattress traditionally is a terrible experience. what they've done at casper is

figure how to offer incredible level of customer service. you can have it for 100 days and return it for free. the margins again are awesome. it's growing. >> it's the one with the -- you know -- >> a box. >> it's in this box. casper does. >> cooperman's and another one had a bunch of -- you know it was like not just a mattress company. it was the one where i think you've seen it where you pound on it and the glass of wine sitting there and it doesn't move or something. >> therapeutic or something? >> you got to come back. >> it begins with a "p" i think. >> the mattress thing, it sounds interesting. i guess the only thing that really sounds appealing to me is you can return it for free for 100 days. >> they will accepted you a mattress and you can try it. >> that's okay.

>> then they sell the ones that have been used. that will work for you. with the bedbugs. >> what happens to the beds after they've been returned? >> it's my understanding that they donate them or chuck them. but they're not reselling them. >> you can sell at a higher price? >> only with my old mattress would we do that. >> thank you b. >> come back. we've got to talk more. when we return this morning, we'll go behind the wheel with lamborghini's ceo. he joins us av this. stick around. "squawk box" will be right back. can it make a dentist appointment when my teeth are ready?

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welcome back to "squawk box." the world's biggest automakers gathered in geneva and phil lebeau joins us with a special guest. >> thank you very much andrew. we had a chance within the last hour to talk with stefan wink lman who is the ceo and president of lamborghini and always seems to top himself. this year he rolled out this vehicle. this is the new aventador. how fast? it can go 0 to 62 miles per hour in 2.8 seconds. if you want to press it and go up to 124, that only takes 8.6 seconds. top speed, 217 miles per hour. they expect this to be a strong seller going into the market this spring at $350,000. if you have that much coin. and speaking of that he believes the market right now for these ultra luxury cars and lamborghini has never been stronger. >> this business is stable for

us luckry it's growing. it's growing around the globe. the biggest and strongest market is by far the u.s. followed by greater china. then comes the middle east. then comes the uk germany, and japan. these are the top six. and these are the markets which we are relying on. but we have in the major regions. >> things have never been better for lamborghini. because joe loves it when i throw up these kinds of numbers. coming off of record sales in the u.s. look at the sales last year. up 6.7%. i know ferrari and porsche are at a lower price point, but look at the sales for those guys as well. up 4.5% for ferrari. and joe's beloved porsche, 11.1%. again, guys it's going to be here in the u.s. this spring.

>> thank you, phil. coming up when we return, we've got a first on cnbc interview. tom wheeler, the first since last week's net neutrality decision. back in a moment. ameriprise asked people a simple question: in retirement, will you have enough money to live life on your terms? i sure hope so. with healthcare costs, who knows. umm... everyone has retirement questions. so ameriprise created the exclusive confident retirement approach. now you and your ameripise advisor.... can get the real answers you need. start building your confident retirement today.

80% of the poor in africa are rural farmers. 96% of them are doing rain-fed agriculture. they're all competing with each other; they're all making very low margins making enough to survive but not enough to get out of poverty. so kickstart designs low cost irrigation pumps enabling them to grow high value crops throughout the year so you can make a lot of money. it's all very well to have a whole lot of small innovations but unless we can scale it up enough to where we are talking about millions of farmers, we're not going to solve their biggest challenge.

this is precisely where the kind of finance that citi is giving us is enabling us to scale up on a much more rapid pace. when we talk to the farmers and ask them what's the most important thing. first of all they say we can feed our families. secondly, we can send our children to school. it's really that first step that allows them to get out of poverty and most importantly have money left over to plan for the future they want.

march comes in like a lion for the nasdaq. we'll go back to the bubble with scott mcneilly. is the rally really different this time. plus tunnel mystery solved. it's more of a man cave than a terrorist threat. we'll dig into the details just ahead. and super cars for the super rich. a look at what ferrari, lamborghini have to offer when it comes to speed and luxury. we're all revved up for the final hour of "squawk box" which begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box," everybody. this is cnbc first in business worldwide. i'm becky quick along with joe kernen and andrew ross sorkin.

check it out. we could have a new rubik's cube world record. he solved five and did it all with only one hand. we have that story coming up in just a moment. >> i could never do that. i used to peel the stickers off and try to put them back on the other side. but first before we get to that let's tell you what we're watching at this hour. the nation's automakers reporting today. looking for signs that the winter weather could have hurt results. also target will meet with investors this afternoon. the retailer is expected to revamp its business to focus on younger shoppers. and pay attention to the situation in europe this morning. mixed reports on whether the eu is now considering a third bailout for greece. we will see where that goes. earlier today we took a look at the greek market. it was trading higher up by about .75%. we're less than 90 minutes from

the opening bell on wall street, if you want to see where we're at, check it out. there are some red arrows. the day after nasdaq hit 5000 for the first time in 15 years. the dow down 53 points. the s&p futures down by 5.5. and if you check the markets at this hour, still looking at greece in positive territory. up close to 1%. modest declines in france germany, and london. >> tempur-pedic bought sealy. >> but remember they were flipped and bought and flipped and bought. the mattresses. >> they had some therapeutic thing. not just getting it quickly. >> that's the one you can really push down on. >> and the wine stays. >> if you want to know why we are talking about mattresses, you should wake up earlier. >> it's just 15 minutes ago.

>> talking about casper mattress company. >> but let's talk about what it says here is the buzz story of the morning. hillary clinton. "the new york times" reports she used a personal e-mail account to conduct official government business when she served as secretary of state. federal rules require that correspondence be retained for the agency's records. so clinton's actions could be in violation of regulations. >> we have david here. did you get -- did she e-mail you from her gmail account or how did that work? >> we're not worried about benghazi anymore, but her e-mail -- >> we stated in the last hour this is a big deal. >> you said everyone does it. >> i think there's a bigger story here. i do think that -- i think a lot of government officials use separate gmail accounts that they claim are personal and end up conducting official business on it to the extent -- for somebody who cares about the archives

archives, he cares about the national archives of the country, do you want to keep and store the e-mail sfs. >> i think all her e-mails will be subject to being collected. she was sending e-mails to people who work at the state department. so they would be there. >> but she never even had a government e-mail address. >> did lois lerner use a personal -- how did we lose all of hers? do you remember? has "the times" looked into that? >> i believe they looked into that. please. >> do you have one e-mail? >> i have many e-mail addresses. i have nbc e-mail addresses, "new york times" e-mail addresses, gmail addresses. >> total shell game. you're not going to pin him on anything. >> i have one. i have a hard time doing one. >> i only have one and it's a business one. >> what's on there? >> that's what i mean. our guest host this morning as we -- well we've just been speaking with him. so he's here. david rubenstein. the co-ceo of the carlyle group.

is there anything that we were supposed to cue you on today? >> not that i'm aware of. in our world we have to keep our e-mails really very five years. and then really keep them for ten years. so anybody that comes in like the government can come in and get the mails. it's great for the government to look at your e-mails, not great for us. but that's the law. >> we've talked about schwartzman's what was it $690 million, god bless him. but it begs the question about is it fair do you really have skin in the game. what if the president -- the president at this point is considering executive action in terms of the irs. do you think that would work if he said carried interest through executive action is illegal? >> i don't know. i'm not an expert in that area. but most of the compensation that i make is actually by owning dividends in the company. so my compensation is $250,000 a year. i probably make less from my

employer than you make from your employer. most of mine comes from dividends. >> okay. then talk about someone besides yourself that does benefit from carried interest. >> why are you saying you don't benefit? yontds why you're not saying you don't benefit from carried interest? >> i didn't. i'm saying my compensation really comes from the dividends that my company makes. or from personal investments. >> you would benefit more from carried interest than anyone else traditionally. >> it's a publicly traded company. that's how i'm benefitted. in personal investments in my companies. that has -- that's not carried interest. your real question is is the president going to be able to change carried interest through executive action? i don't think that's what he was talking about. in part because it's not going to be real revenue. it's a modest amount of revenue for the country. i think if you taxed or changed carried interest when you pick

up $3 billion over ten years, it's just not major source of revenue. >> that's probably true. so you've got a portfolios of companies you watch. is this is 3% economy gdp in 2015? >> i think most people would say it's close to 3%. our numbers would say maybe a little bit lower than that. much better than japan. much better than europe. i think the big delta in the global economy is europe. people don't know whether it's going to be a positive or negative this year. i think we know where china's going to be. we know where the united states is likely to be. but we don't know where europe is going to be. that's the big uncertainty. >> you are close at times to this administration. do you think there's a deal for corporate tax reform in there somewhere? i read this today that they're thinking about raising taxes and closing loopholes without anything on the other side. and it makes me think if you're actually thinking that way, you're not going to have corporate tax.

>> i think the republicans in capitol hill they want corporate tax reform to have revenue neutrality. >> is that like internet neutrality? >> well it's different but same concept. >> it's always good if it's neutral. >> the democrats would like additional revenue to use for other purposes. i don't see a compromise being achieved. i don't think the administration is going to push so hard for tax reform that it will clearly get done. i think the highest priority is probably the trade agreement or other kinds of international agreements. i don't think it's going to be international reform. i think it's likely one of the trade agreements will get done. i think the asian one is more likely than the european one. but i think getting two or three of them done is very difficult in this congress. >> which you mean republicans would -- >> democrats are proposing it. >> republicans haven't seen the details yet. assume they're acceptable to republicans, a lot of democrats don't want this. so far we haven't seen the president put it on the table. it's not resolved yet.

when you know what the details are, you have to lobby. it has to go through both houses. >> when it's all said and done is there a reason the democrats -- do they have a good reason for not wanting to go forward with trade? was nafta a bad thing? was it exporting jobs? you have some allegiance to this party. >> i think the fear is it will take jobs away. >> is that true? don't we know from previous trade deals? >> my own feeling is i'm pro-trade agreement. i think this would be good for our country and economy. some people have different views. >> that's for sure. and the president gets attacked from the left on this. >> he does but that's not the principle concern he has. i think the principle concern he has is he has to get an agreement before presenting it to congress. you have to get two things done. get the agreement approved and presented but trade authority as well. you can't have amendments on

this. you have to have the ability to make sure there's no amendments. then the agreement has to be approved. >> last i heard, harry reid wasn't going to bring it up. >> the agreement hasn't been surfaced yet. we don't know what it is. i think people would decide. >> i think so trade agreement will probably get done. one of them will probably get done. i don't think tax reform will get done. i don't think immigration will get done. i don't think there's going to be any other major legislation of the type that would transform the economy. nothing like that is going to get done for the congress. >> does it matter? >> i think the main game in washington is not the congress. i think people have recognized that the main game in washington is the federal reserve. and that's really where the action is going to be this year. >> the executive branch some things happening there still. >> yes but in terms of the economy the main thing to affect the economy is what the federal reserve does. >> it appears to be the will to

still look at -- for further executive actions they haven't thought about yet that they might be able to do. i think the whole -- we're going to talk to tom wheeler, the fcc commission per. didn't half an eyebrow come up the way that came down? wheeler seemed to be 180 degrees away. the president says i like to do it this way and six weeks later there's a rubber stamp on that. didn't that seem a little strange? >> tom can speak for himself, but usually presidents don't get involved and say what they want independent agencies to do. sometimes they do and this is not the first time it's happened. >> when was the last time? >> well it's happened in many cases in the s.e.c. and ftc when the presidents have said they think this would be a good way to pursue policy. this wasn't a specific case. it was really a policy. so it's not unusual far president to say here's what the policy should be. >> we'll see. we will ask him at some point. i think he's coming up in just a bit. >> couple minutes. >> david rubenstein is our guest

host and he will be with us the rest of the morning. when we come back this morning, the canada cave mystery solved. and the nasdaq back above 5,000. we'll take a look back at the go do days of crazy valuations and how the index stacks up now. "squawk box" will be right back. ♪ at mfs, we believe in the power of active management. every day, our teams collaborate around the world to actively uncover, discuss and

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welcome back to "squawk box" this morning. take a look at the futures right

now. see how things are setting themselves up on this morning. you're seeing the dow look like it would open down 57 points. nasdaq off as well about 12 points. but make it a little hard tore make it to its all-time high. the s&p 500 off about 6 points. also remember the mysterious cave found in toronto that had investigators worried? well, two men in their 20s dug the bunkerlike tunnel as a man cave. it was a hangout for them. the tunnel was dug near new york university's campus and a major tennis venue that's set to host the pan am games. it turned out it was just a couple of guys that wanted to hang out and drink some beer. >> in a hole in the ground. >> that's weird. >> it is weird. totally weird. chrysler is reporting a 5.6% increase in february u.s. sales. the automaker had its best february sales since 2007

however the increase was below the edmunds estimate. now we are going to talk about net neutrality. one topic on everyone's list is of course the fcc's ruling on the new internet rules. and our own jon fortt is there. he joins us now with tom wheeler in his first tv interview since the fcc's decision last week. jon? >> thanks andrew. let's get right to it. chairman wheeler, thanks for joining us. >> great to see you. >> you were against using title two rules to regulate the internet until after the president came out and said i would really like to see the strongest rules available used to regulate the internet in essence. it certainly looks like you changed your position because of the pressure that the president added to. is that, in fact, what happened? >> your assumptions are wrong. your facts are wrong. i've always been for a strong

and open internet. and over the summer the original proposal we put out asked questions about title two, but also proposed another approach. and over the summer i began to realize that that approach was not leading us to the right answer. and the reason was that it was saying that there should be a test of what is commercially reasonable to determine what's fair on the internet. and as i met with consumers and innovators from around the country, it became clear that that concept of commercial reasonables could be interpreted as what's commercially reasonable for the internet service provider not for the consumer and not for the innovator. so over the summer i started then going to the other alternative that we had proposed. we asked questions on in the rule. and that was fielt two. and began to develop multiple ways of using title two to address this issue.

>> okay. so you weren't against title two to begin with. you just hadn't settled on that. >> it was one of the mir i can't do of things we were looking at. >> let me ask about competition. what i hear from a lot of people even in silicon valley is what the real issue is here is the fastest broadband speeds aren't more than one provider in so many local markets. i know you've got some provisions in another ruling that opened up municipal broadband. that's incredibly important. what else should you be doing? is there more in this net neutrality proposal? >> you just asked a key question. there's two components of net neutrality. one is making sure the internet stays fair and open for innovators and consumers. and the other is to make sure that those building the networks have the capital, have the revenue base on which to build.

one of the things we do not do is regulate rates, tariff were or propose any of the other traditional utility type regulation. so the reality is that the day after our order goes into effect, the revenues from consumer services for internet service providers will be exactly the same as they were the day before because we want those revenues to be there. we want those revenues to generate a good return so that the operators then have a reason to continue to expand the new york and particularly to expand and compete with each other. >> all right. andrew? >> mr. chairman i want to go back to the issue about the president just far moment. which is this. were you supportive of the president coming out so publicly and vocally about the policies and net neutrality? because to some degree critics would suggest that it raised questions about your independence. but would you have preferred he

stayed quiet while you were allowed to come out publicly yourself first? >> >> oh, my golly, andrew. the presidents have historically always commented on major decisions at the fcc. and as i said i mean the president and i have both been strongly pro-open internet throughout the existence of this as an issue. i mean there are 4 million comments that were filed. the president was one of them. >> mr. commissioner as i understand it, among the rules that are in this you are -- there are provisions allowing regulators to determine whether a provider's pricing and practices are just in reasonable, and you used the "fair" word which makes me nervous when the government starts decides b fairness.

and a consumer group or internet company or anyone believes a broadband provider is in violation of these vague categories, they can file a complaint with the fcc. they can also take it up in court which brings up the specter of the possibility of filing huge class action lawsuits which are totally entitled to do which make this uncertainty for broadband providers seem like it's just gone up logarithmically. >> well i think you now listed all of the imaginary horribles. let's talk about the reality. because these rules were modeled after the rules that have been in place for 22 years affecting the wireless industry. the wireless industry asked the congress to make them a title two common carrier and then to instruct the fcc to forebear

that is not to enforce all of those parts of title two that are not applicable. so the issues you have raised having in place for the wireless industry now for 22 years. and have never been an issue. and in that period of time the wireless industry has invested $300 billion -- that's with a "b" -- in infrastructure. and that's what we're looking for here. we want to make sure we have built it on a model that works. it's a model than industry sought. and we know what's going to happen based on that real life experience rather than just a lawyer sitting around saying this could happen or that could happen. >> but when a -- when someone that runs a broadband company with all these at&t or verizon or comcast, they spend a lot of

money. they have in their mind a certain return on investment. when they tell us that they are going to cut back on investment based on the uncertainty or not knowing exactly whether they're going to be reimbursed for all this are they just postureing? are they lying when they tell us that? or are you going to see less investment by these guys? >> well let me go back to the facts here. the facts of the matter are that sprint has told us they're going to invest. t-mobile has told us they're going to invest. the small wireless carriers have said this is something that they could live with. frontier communications says they're going to continue to invest. hundreds of small independent telephone companies have said they're going to continue to invest. jim doland of cable vision last week said this isn't going to

have an impact on the way he runs his business. the fact of the matter is there is no rate regulation. there is no -- it's based on the fact the model has worked for years through verizon and other carriers because we want there to be revenue. there's not going to be a dime's worth of difference in revenue the day after this goes into effect from a day before from consumer services because we specifically are not going to rate regulate and we went beyond that. we removed all of the provisions that create the structures to be able to do that. and so we very much want to make sure that all of the carriers are having a return on their investment so that they will continue to build.

>> all right. tom wheeler, chairman of the fcc answering the tough questions about net neutrality and the rules on regulating the internet here on cnbc. thanks so much for joining us. andrew? >> jon thank you. thank you for bringing us that interview. and thank you mr. chairman for coming on the show. joe? and when we return march roaring in like a lion for the nasdaq. the index closing above the 5,000 mark for the first time since march of 2000. you know it's daylight savings this weekend? >> no? we lose an hour of sleep? >> we get spring but we lose an hour of sleep. and in the fall we -- >> that's a fair trade. longer days. >> anyway it hadn't done that since march of 2000. is it different this time? we're going to speak to scott mcnealy. a look back and what's to come in just a couple of minutes. "squawk box" will be right back.

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welcome back to "squawk box" this morning. let's look at stories in the news.

$1.48 up per share at best buy. and also boosting its regular quarterly dividend. and dick's sporting goods revenue beating forecasts. and lumber liquidators rebounding this morning. it had suffered a 45% drop over the past week. upgraded the stock to buy saying concerned raised by the report that was on "60 minutes" are overblown. >> interesting. >> another data point to add. >> get back 3% after losing 45%. pay chex just out with reports. let's go inside the numbers now with the ceo of paychex. what does it show this month? >> we're on an upswing for the eight consecutive month. basically making up the losses that we were in the fourth

quarter of '14 and across all regions of the u.s. except for two in the northeast we've seen gains in small business employment. >> what is the best region? >> well best region is still in the central. it's the northwest/central and the southwest/central. those areas, texas to north dakota really doing well. i think it's still around energy that's doing that. >> well you know it had a bit of a drop this month. but it still has the highest growth rate. i think there's construction going on there from what we see in the small business sector in around construction around home construction and so forth. so seems to be some nice growth in indiana. >> when it comes down to the metropolitan areas, dallas is still doing very well? >> yeah dallas continues to do really well as well as seattle. interesting enough in the south, florida and georgia, the states starting to bounce back. that's miami and atlanta. that seems to be housing as

well. >> marty, where's the worst state? >> worst is still new jersey new york those areas. really not seeing the job growth particularly over the index level back in 2004. so think atlantic city certainly to jersey. but it has not bounced back yet. >> marty, thank you as always for joining us. >> okay, thanks. still to come super cars for the super rich. ferrari, lamborghini, the big money cars are at the awe autoshow in geneva. up next also, a pioneer of silicon valley. now he's jumped back into the start-up game. scott mcnealy is going to join us to discuss the nasdaq move back to 5,000. we'll talk to him and do a lot more when we come back in a moment.

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this is live coverage of nasdaq 5,000. >> new york city's times square often called the center of the universe and tonight certainly the center of attention for the financial world with the nasdaq composite soaring to its first close above the 5,000 level today. >> indeed. the nasdaq stole most if not all of the hundthunder today. >> fifth biggest gain in history above 5,000. 15th record of the year. it seems there is no end to the

appetite out there. >> internet segment revenues for cmgi rose 2,251% over last year's level. >> the worst day ever on wall street certainly in terms of point losses for the dow, nasdaq, and s&p 500. >> bad day here no matter how you cut it. the pain was deep. >> over the last five days cisco is off 23%. intel, 22%. hewlett-packard, 20%. microsoft, 16%. and ibm, 15%. >> i had a different system. >> you haven't aged a day. >> i downsized the system. the nasdaq closing above 5,000 for the first time in 15 years. our next guest rose that silicon valley wave to great heights in the '90s. today he's the head of weigh-in. scott mcnealy is founder of a company he ran for 22 years. he's also the chairman of weigh-in, a firm focused on social media intelligence.

why has everyone else gotten old looking, scott? and we don't look any different at all than we did back then do we? is it clean living? what is it? >> i don't even like to look at the old pictures. i don't know who that kid is. >> someone that is -- whenever i talk to you, i learn the view you have of the last 20 years is different. i can barely -- my opinions don't matter here. what do you see as the difference between where we were in 2000 and where we are right now in terms of technology. >> i think the biggest change from a valley perspective and a u.s. perspective is we're sort of out of the manufacturing business and mostly out of the hardware business nap has all moved to asia. the regulations, cost of living a whole bunch of things have moved that piece out. and it's not that we don't have

labor. we have the lowest labor participation rate in decades. so we have the workers here. we're just not employing them. and we moved from hardware to data. that's a nice way of saying we moved to social media. but social media is all about the data. it isn't about facebook or twitter or communications. it's all about the data we gather. and what the industry is doing now is we've created the internet oracle cisco, emc, the four horsemen. we created fundamental technology in the companies before us that created the internet. now we're creating data by capturing all of the activity transactions and communications that happen on the internet. >> again just listening to what you talk about, i worry that we need something to sell. we've got every single possibility for advertising with all this stuff.

but don't we still need -- we got to make something to actually sell to -- that we're advertising for, don't we? aren't we missing a step? >> you know the 5,000 is not the same as 5,000 15 years ago. inflation adjusted, we're not there yet. but one of the things we're not buying externally is energy. i think one of the biggest wins that -- and i think the current set of elected officials are getting a huge pass because of fracking and natural gas boom. that has been the biggest -- that's been -- we haven't had a tech boom lately. because facebook isn't going to change the world. i mean it's a wonderful thing. but the thing that has changed a great enabler that has created at least stopped the bleeding if you will hugely. and nobody wants to -- no elected official wants to stand up and say all of our dumb decisions have wrecked the economy. but it's been saved by fracking and natural gas. but that's been a huge win. we're not sending dollars

overseas. we're basically getting closer and closer to energy independence. and that's been the big win here. and so when i look back over the last 15 years, i would say it hasn't been tech that's helped the economy anywhere near as much as what's happened in energy. >> did you -- you probably weren't watching. i haven't talked to you about net neutrality. we just had tom wheeler on. >> oh don't talk to me about that. i saw the interview. i just don't want to listen to administrators and regulators. i think the whole thing -- it was a problem that wasn't broken, didn't need fixing. and i don't have enough time to you know disassemble and recreate everything. i mean the whole concept that there's not going to be one change in revenue the day after versus the day before well of course not. that's the silliest statement i've ever heard. let's talk about the next 3, 5, 10, and 20-year cycles. these are huge capital

investments that have been to be made. and to -- i don't know. it was very frustrating. i think this is another process for government officials, elected officials to create unneeded controversy so they can get both sides of the argument to donate a heck of a lot of money to keep themselves in power and continue to drive the regulation economy which we all know is -- there's not one bit of empirical evidence that this economy works better than a free market and private economy. >> it's been going pretty well with a light touch, it seems like. >> what are we fixing? what's the problem? >> it's a solution looking for a problem. but one of the things you just said is what gets me. because anyone that wants to get around the rules or get around what in title two now has someone they can go to in washington. they can find their regulator that you feel like cozying up to. now they're all in a position to

doll it out wherever they feel like dolling it out. so it's going to breed more cronyism. the thing the left supposedly hates it's going to breed more of. >> i call it crony statism. because that's what it is. >> well you expect -- and then i didn't even realize the -- i love whenever the get gets involved. now it doesn't even matter if there's another administration and they put republican commissioners in the fcc. that doesn't mean there's not going to be lawsuits based on title two violation. >> it's all sand in the gears. what's different between back then and now is stocks 404. this whole oxley thing. we have all of these new financial regulations. we have now all of these new fcc

regulations. >> when you were a young whippersnapper, would you have been a total net neutrality. why are all the young 22-year-olds, 24-year-olds just applauding the fcc and the president for this? and who's not -- who can be against something called net neutrality? it's weird, isn't it? all the young people thank god they're making things fair for us. >> they called it the affordable care act too. just every time something is named by a regulator, i think it is going to do exactly the opposite of what they're talking about now. and so you know it's just -- it's too frustrating to get into. we don't have enough time. >> i shouldn't interview you. it begs -- >> no no. >> if you like your internet you can keep it. that's something i'd say. then number two, you didn't build that internet anyway mcnealy. anyway andrew's got the other side. go ahead. >> i'm just curious having watched the interview and heard tom wheeler, he said he was totally on board with what the

president was saying. and i -- given everything you've read and given everything you know do you think they really were simpatico on this issue as he suggested in the interview? >> oh you know what? i'm on the left coast. i stay as far away from washington, d.c. they don't invite me into the obama administration discussions. i have no perspective. >> andrew can get you an invite to the next party if you want to. you dance with the first lady don't you? >> i can't dance. >> you know tom wheeler. there was a question whether he was boxed in on this issue. there's a perception within the industry and people who know him and friends of his who suggest the president came out and put him in a bit of a corner he was not necessarily prepared for. >>no doubt that that appearance exists and there's no doubt when the president makes a statement as he did it gives that appearance whether tom really was completely influenced by it or not, i don't know. there may have been other factors. but appearance wasn't as good as the fcc would have liked.

>> he has plausible deniability because he can say the president said it but then the internet we got 4 million comments about what to do and he can say we were flooded with people that -- he actually used the word "fair." we want to keep it fair. i love that. because fair means so many different things. they're going to decide which companies it's fair to and which they're not fair to. >> by the way, they say they're not setting prices. well, by defining what's on the price list you automatically set prices. so i listened to the statements and i think they are just illogically just -- they're unfair statements to make if you're going to talk about truth. >> yeah. so i try to explain wayin quickly and i failed miserably. that's why i need you to explain it. it's kind of like twitter. tell me how does it work again? >> well you know twitter, facebook instagram, all of these different social media conversations are going on. and if you watch and listen and

subscribe, it's crowd noise. what we do is we allow brands events organizations, celebrities to basically filter out all the crowd noise and listen to a specific conversation around key words, around particular events around hash tags and all the rest of it. if you follow me on twitter and you search on my name that sort of thing and bring that conversation, we can put it up in venue on the jumbotron. we can put it on air on tv. we can put it on a web page or on mobile. then we allow you to analyze that conversation and figure out what words are working and what words aren't working and what sentiment is. it allows you to tap into this social media conversation while cutting through all the crowd noise. >> all right scott. come back and join us. we're not washington, d.c., but we're in the middle of manhattan now. >> how'd you do at the at&t this year? did you do all right?

>> i was 19 under. i was tied for 38. that's not bad. 22 under was the cut. but, you know i never play up to potential like you. i don't know. cameras make me so nervous. >> i think the next time i'm going to make it is when my son gets invited to play in the pro part and asks me to be his amateur. hopefully that will happen. >> i see him asking you to be his caddie maybe. >> he said that. i said i'm not going to be caddie. i'm going to be your amateur partner. >> no, yeah. no playing for you. you caddie. okay. thanks, scott. see you later. >> thanks. take care. when we come back, robert frank's going to join us with a look at some super car when "squawk box" returns in just a moment. ameriprise asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry but you worry. what happens when your paychecks stop? because everyone has retirement

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2015 geneva auto show is under way. robert frank is here this morning. good morning. >> good morning. the market for supercars priced at $200,000 or more back to its all-time high. launching faster flashier and more expensive to entice superrich car buyers. we heard about lamborghini's new one.

we'll give you others. ferrari updating 458, the char that marchionne told me the best car that god ever created. the new 488 powered by a twin turbo. this is controversial for ferrari owners it doesn't have the same engine noise but 660 horsepower, 0 to 60 in 3 seconds. this will be ferraried's lead horse going into its ipo this summer. a lot riding on the car, around $250,000. mclaren the british carmaker unveiled 675 lt long tail 666 horsepower, 0 to 60 in 2.9. hard to find anything street legal that beats that time top speed of 205. priced more than $300,000. audi's not a supercarmaker but inroads with r-8 new version, 0 to 60 in 3. 27 powered by v-10 or hybrid. driving that fast at night can

be a challenge. r-8 has laser headlights. that's the first of its kind in the u.s. guys sorry, billionaires, last have a run, fastest production car in the world. only made 450, sold for more than 200 million each. there it is the last one that will ever be produced and fittingly, it's called la finale. billionaires, you to come up with something else. bugatti hasn't announced what they'll do next but it's going to be a big one. >> any of the cars been in an accident? >> a lot. a famous one, a guy's driving and drives into the lake. one of the most-watched videos, watching $2 million bugatti drive into a lake. >> don't you think you should buy a car you like and is cool but can get service somewhere in the same state somewhere? don't -- you can -- >> they have people for that. >> they do?

>> a lot of the guys have their own technicians in their garages. >> see, i don't. see, i don't. that's different. >> pothole detectors, in washington, new york my biggest concern. if i get a new car? they'll be destroyed by potholes. >> you have a 20-year-old car. >> 20-year-old. >> would it go with your watch? >> 20-year-old mercedes-benz station wagon my wife handed down to me there i love him. >> you'd rather buy the magna carter for $20 million than 10 bugattis. >> i wouldn't buy one, i wouldn't be able to drive. i can only drive automatic. secondly worried about potholes destroying the car. >> problems of the wealthy, right? >> next guest host set to tell us what he's doing to preserve pieces of our american history for generations to come. "squawk box" will be right back. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets

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our next guest is trying to change the world one historic landmark at a time. patriot givings are renovating mt. vernon monticello and everybody knows what you did with the washington monument you made sure you gave money to make sure that was restored after thor thre erore earthquake. how did you get into patriotic

giving? why these pieces. >> when i found i had more resources than i could spend i thought appropriate to give my children, i thought a good idea to get involved in philanthropy. many people do great things in medical research or education. i try to do things there as well. but one thing i wanted to focus on giving back to the country for my good four tune. i've tried to remind people of good fortune, like the washington monument and month pea pea leer monticello, and giving them to the american people. i try to do that as a way of saying thank you to the american people and encouraging other people to do the same. also trying to encourage people to learn more about our history. i think people don't know enough about our history and you can be a good citizen if you don't know enough about the history of our country. >> thank you for coming. >> my pleasure. >> join us tomorrow. "squawk on the street" begins right now.

♪ move on up move on up♪ >> good tuesday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at new york stock exchange. we've good nasdaq 5000 now what? premarket soft here as we await auto sales which so far aren't too great. got downgrades of retail names as well. oil around 50 again. "the journal" saying gas savings are being saved, not spent. ten-year, look at this zoomed to 2.10 a shade above. yellen does speak tone. road map begins with the markets. major milestone for the nasdaq crossing 5kfor the first time in a decade.