cassanoble, it is one of the highest -- best premium tequilas in the industry. it has won a lot of awards and taste tests. and mixologists absolutely love it. >> all right. >> great product. >> rob sands appreciate. want to try all of those after the show. >> thanks for joining us, everybody. see you again tomorrow. ♪ >> good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer david faber at new york stock exchange. after two days down for stocks premark's looking for some relief. dow futures up triple digit but was retail sales are not going help down for the third straight month. oil reeling from yesterday's sell-off, below 50 at the moment. and the ten-year yield has come in now below 2.06. road map begins with a pause in the mar tomp parity.

euro strengthening after reaching a low around midnight. stock futures edging higher despite mixed economic data in the u.s. the federal reserve's seal of approval banks struggle to pass the stress test shares of citi and morgan stanley rise. bank of america and others lose ground. >> the first cut is the deepest, box and shake shack releasing first quarterly results since ipos and the reaction on the stock is not pretty. stock futures higher despite a surprise drop in retail sales down .6 in february due to bad weather in parts of the country. strip out auto sales fell .1%. claims fell more than expected last week down 36,000 to 289,000. we knew autos were going to be weak, and they were. >> yeah. february's a weak month in our country, which is so funny because we are so used to thinking about one number, the employment number that we got. everything else was just punk. the weather's very very important but a remainor to

those saying like richard fisher departing the fed, it's important that we raise rates right now. i struggle i struggle because what's so important about it? yes, the employment number but no wage growth. everything elses punk. it's not that great. >> interesting. >> absolutely. meantime the euro 1.0495 over night. comes back a bit today. you need the dollar to have three consecutive days of strength. >> if they take to 90 where it came -- take it to 28 cents where it was, not long after, they -- then you're going to be in a situation, really importing deflation and that's important. i don't want to see it. our goods are going to be way too expensive versus theirs. >> news hitting on intel, cutting guidance. >> i figured that. >> i immediately went to assuming maybe it has something to do with the dollar. but let me read it to you. the company announces fir quarter revenue expected to be below previous outlook, now

expects first quarter revenue to be 12.8 billion, jill, plus or minus 300 million, compared to previous expectations of 13.7 billion, plus or minus 500 million. why the change in outlook? weaker than expected demand for business desktop pcs, lower than expected inventory levels across the pc supply chain. the changes demand in inventory patterns by lower than expected windows and small and medium business challenging macro economic, and here it is currency conditions particularly europe. >> i don't like pcs. we don't like them from when hewlett-packard reported. microsoft, numbers way, way too high. >> hewlett-packard can't. >> no microsoft. >> sorry, microsoft can't. hewlett-packard a downgrade on the stronger dollar. >> the main thing is this is not where the market's going. i had kevin plank on last night. i know he's from under armour but a technology company, 130

million people in the connectivity. it's all hand-held. 55% can't live without hand-held. remember that intel is not known for hand-held. if a sky works go down which is hand-held, qualcomm hit very badly, those in the sweet spot. pc, we all use them. it's generational. it's generational. on a plane, people are watching -- that's using cell phone to watch movies. >> the third best performing component on the dow for the past 12 months we know leader last year. >> yield, yield, yield. they're going to make a lot of money. you're fighting a tide which is a microsoft tide. i've got to tell you, microsoft, nadella had to do something and didn't deliver. he didn't deliver. and that hurts. >> intel going on to say, it's forecast in the midpoint of the gross margin range to remain around 60%, plus or minus a couple -- but a couple

percentage points on either side of that jim, because lower pc unit volume's offset by higher platform average selling prices they say. by the way, data center business meeting expectations. >> data center should becreeding. one of the thing that shake me hearing euro numbers, all right, the hewlett-packard downgrade today, the cash flow's impacted here. maybe a buyback gets impacted eventually. it's too major is what i'm saying euro's happening way too fast. looking at irish ten year .63. three years ago it was 12%. 12%. i mean this is like the greatest stock in history but it's an irish buy. >> utx, with becky and joe this morning, said they saw, let's see, they saw 1.25 for the year six weeks later 1.10. now it's 1.05. i mean your.

>> it goes to 90. but also said something positive and that was such a great interview. i encourage everyone to go back to cnbc.com to look at it. we see european growth 30% of our business is in europe this is a home run for us. also talking to otis orders up 50% in the country. that's not pcs. pcs are in secular decline, period. >> right. intel never moved into wireless like they should have. >> euro is in secular decline. >> not today. >> what they've done is taken the risk-free asset and make it the riskiest asset in the world, their bonds. >> i never get tired of looking at yields on some european bonds. italy's approaching -- may break below 1% ten year. >> november 2011. >> the jon corzine trade. >> the corzine trade. >> germany below .27 it's .199% for ten years. >> you buy this you'll lose money. they're trying to make it so you know you're going to lose money.

>> next week if you sell you're going to make money. guys buying it at negative yields, were able to sell because yields have gotten more negative. >> beginning of the week one of the things everybody felt it was over. they don't need to buy the trillion one in bonds. but, no they're buying. the chinese should be selling. we're -- our companies are going over there. >> sure. >> of course good bond deals. >> you want to get on line with chichi ping. >> want to sell. >> combining companies that are loaded. i mean, things are happening so fast that you wake up and you think that the euro should be -- it was up for like what five minutes, right? >> yeah. >> and guys -- it's like a whack a mole game. i feel like i'm in jenkins at jersey shore. >> ecb 10 billion in 3 days on track to do 16 in march. >> that guy's taking bernanke's

plan that took three years, he's doing it in three days. he said by any means necessary, he meant it. you simply do not want to be in their bonds. you want -- germany's up huge. you've got to buy german stocks. find anything that yields 3%. they're going to redo all of the parameters. i run -- it's part of thestreet.com, the cash whatever, you can't -- it's irresponsible. you're not being fiduciary if you buy that paper, you're just not. they have to rewrite the rules. you can't buy that paper and not be considered someone who is anti- -- is reckless. you're reckless if you piebuy the paper. reckless risk-free. >> 28 of 31 banks passed the fed's stress test. citi receiving approval after failing last year. paves the way for a div hike and buyback. jpmorgan had to adjust plans.

b of a received conditional approval from the fed, ordered to address deficiencies in plans. u.s. units of deutsche and santander did fail. >> santander, these are incredible. banks should right now, just go raise -- i mean everyone wants -- if they were to go through gigantic equity offer and say satisfy the fed immediately, people want paper, that's what they want equity. they'll take anything with deutsche bank. it's funny, here they get dinged and they can take advantage of it's qualitative. the fed's saying you don't mind your bank well. they're saying to michael corbat, boy, you run your bank well, citi. >> a change from a year ago. >> major. remember what corbat said? he said i'm staking my reputation on this. he said you can fire me if i don't get this. did he ever deliver. got dividend boost there. >> i wonder what the general take in middle america is on

this head lean headline, banks gush cash. it brings to mind what dimon says this week, and that is you have a right to be mad at the banks for being saved. the general impression that they were saved unfairly is one he understands. >> well look that's a change for him. >> yeah, he had been less -- >> when we've had that conversation, boy, we've had it many times, after the crisis or in the midst of it his point was always, we have deposits coming in, we have deposits coming in they weren't leaving. we didn't need to be saved. but it's a kind of a different tone, i wonder if he's going back because he got so much flak on the conference call for, frankly, taking the attention away from the record earnings at jpmorgan to this battle they have with the regulators. >> carl's right. when you talk about the idea that -- no one got indicted.

no one got indicted for what they did, banks. bonuses, never clawed back. these people -- ceos made so much money. how can they not be hated? she should be hated. the fact the boards kept raising their salaries and giving bigger bonuses i can't believe the americans aren't up in arms about this stuff. >> i think they were. it's been a while. maybe not given up. >> there's interesting news about salaries in general electric by the way, and how jeff imelt did well. stock at 27 beginning of the year, went down to 25 a big bonus for major restructuring. >> right. >> this is, again, what people frankly, but it's not what people want to hear because they're not getting that bonus at home they're not getting the wage growth. they're not getting the benefit. it's being kept at a certain level. look, i'm not trying to be lennon here, but there is a kind

of a quandary. if the rich are unhappy, jamie dimon, as lennon said not related to me it is your own fault. >> all that being said you like the banks right now? >> you have to like the banks. they're making it so you like them. how can you not? this is all about -- 17% of the s&p getting the windfall. you think we're so slow in the economy. rates did not go the way they needed. but these guys are returning capital. when you go through what they're returning, this is the hot -- you want to be in microsoft today or morgan stanley? you want nobodybe to intel? no, wells fargo. sole of the banks -- >> state street. >> state street. >> wells fargo. state street 13% div hike. >> key. >> regions. >> fantastic. that's where you want to be. you don't want to be in intel. >> you don't want to be in the pc complex. >> hewlett-packard struggling. upgraded early. >> dell must be getting hurt --

wait. >> you brought up united technologies. there's companies that are unsatisfied, my charitable trust owns it some of the companies are dissatisfied how they're doing. united technologies isn't doing badly but, boom they'll blowout sikorsky. sikorsky is united technologies. that's what you think of the black hawk helicopter. >> sure. >> see you later, we've got to make more money. >> he wants to be the activist before he they come to the gate. >> link with activism -- >> by the way, that's what boards and ceos are thinking about. they are seeing activists in their sleep, frankly. >> and meditating too. >> even when they don't exist, they're seeing them coming knocking on the doors. >> we haven't talked about actavis. it's going to be allergan. >> we haven't talked about actavis, no. >> when we come back we'll talk about shake shack and box, reporting first earnings sense going public. reaction is rough on wall street. more on those stocks. also ahead, nelson pelts exclusive, here what the

investor wants to see from companies like dupont, pepsi, mondelez, take another look at futures. we've not had three days down on the dow or nasdaq since early january. more "squawk on the street" from post 9 is back in a minute. you can find a new frontier. there's nothing stopping you and a lot helping you. technology that's with you always. this is our promise. it's never been better to wander because wherever you go, you'll find us doing everything we can, so you can.

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rough more morning for companies, shake shack reported a wider than expected fourth quarter loss sees slower comp sales. box, a wider quarterly loss on higher expenses but box insists it did not post a miss saying estimates were base on an erroneous share count. aaron levie did tweet about the confusion last night. >> i like box but they're growing too much. costing them too much to grow. growth is slowing. that was a disheartening call. it's funny that danny meyer call danny is not on the call it's not him, shake shack has really industry-leading average unit volumes. the fine quick serve they're doing is well liked. this is a very expensive company that i think has to grow into its market cap. but i have chipotle on "mad money" tone. i've got to tell you, chipotle looked like there is when it started. they've got to put up so many

more stores and they're not growing insanely and the market probably wants them to grow insanely. this is one of those, the stock suffers but going to be up gigantically. a lot of people believe in long term, that may not be wrong. >> ingredients are getting mitt romney expensive, they argued they don't see an immediate price hike anytime soon. we know that they are a new store story. >> right. >> it's not -- the comps are not what -- that's not where you go. >> they do two-year stack and it's not easy to compare. but remember i've said over and over, this is not an earnings story. this sounds silly, but it's a karma story. >> you've said that. >> if you read the conference call, it's filled with karma. it's about how we -- we're doing it differently, you love to go to our place, milk shakes are real. >> delicious. >> but that's what the call is. people are betting that that's good enough. they're betting that's good

enough. this is kind of when my daughter this weekend said to me dad, when mcdonald's said they're farm to table, it's over with farm to table. this is farm to table. >> this is not farm to table. >> but there is kind of in the conference call an undercurrent we're really different, believe in us. and i think that on a day like today, people just say, listen box is too expensive, shake shack's too expensive but said chipotle's too expensive. i don't want people to buy shake shack. i'm saying i understand why they own. i don't want people to buy tesla but i understand why they own it. that kind of thing. tesla, there's a recall of toyota similar drive train. you know what i'm talking about. >> right. >> not many other places to go to get revenue up 52 revenue up 61. >> exactly. >> at box, right? >> box -- they didn't handle the share count right. they were definitely rookie you know. they were doing an end zone

dance and didn't get into the end zone. you can do that. you've got to wait until you cross the goal line before you start dancing. fined 15 yards for unnecessary celebration. shake shack, they make a lot of money per store, it's just that it's a very -- putting up ten stores and the stock market, if you're that valuation, they need 20. >> it's going to take a while to grow into valuation. >> exactly. they need to do a deal with a major hotel chain so that is worldwide their room service, that's what danny meyer has to do. >> you think -- trying to think if danny would go along with that. >> he's got to. marrying right here sheraton i'm marrying sheraton with shake shack. >> every time they open a sheraton, there's a shake shack. >> imagine if there's room service, burger fries, custard at night? i can't believe how right this is. it's so right. >> that's a vacation. >> adam aaron, ceo of sheraton, make that deal every stock goes up sheraton goes up shake

shack. i'll stay there because i love their burgers. >> you're always trying to arrange. how's whitewave coming along? >> first general motors going to buy -- >> no fee. all pro bono. >> they -- no i mean i'm trying to get deals done because this is not enough anymore. we cannot sit back. >> no. >> i'm trying to get the demarco murray deal. >> he's coming today. >> what? >> coming to philly today. >> i said i would buy cheese stake for people who come to our live show if i can get chip kelly to sign demarco. i want to get that deal done. i want to get the shake shack/sheraton deal done. we can't sit back and opine. >> sources say eagles are in play, right? part of the mix. >> yeah. >> that's a big deal. >> i'm enthusiastic. >> cramer's "mad dash," count down to the opening bell in a minute. one more look at premarket.

keep your eye on dollar/euro today. all over the map.

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open an account and find more of the expertise you need to be a better investor. ♪ ♪ time for "mad dash" on this thursday. dollar general reports its fourth quarter numbers. they're getting a decent reception this morning. we follow this closely. 22 billion market cap company. they're investing for growth. >> right. now, my charitable trust sold this talking about wins this was not right to sell. it sole because i think the comp store numbers were going to be

good. they weren't that good. i thought they were less that was a mistake. but what it does take away if you are a retailer and put up stores, most of them can't, look home depot has a couple of stores merehere. these guys are talking about growth. that's why my trust was wrong. growth is good. stephanie link who worked with me one of her companies. she works at kraft, she said this was going to be the great growth story, she was right. woi. >> 7% square footage growth in 2016, what they put up for new store, doing it while they increase dividend, while buying back stocks. an interesting combination, we think of one or 0the other. you're doing all of it. >> that's why it's impressive. i didn't see a project of comp stores that i like but it done matter. they're not looking at comp stores which is incredible. the reason they're not looking at it if you're putting on more

stores, we will overlook slower comp store growth. but most companies don't have any place to put more stores. they are not out west. this is remarkable because when i saw it i said this is going to go down on that guidance. huh-uh. >> acquisition, unable to -- >> a lot of cash. >> -- compete to buy family dollar as a result of the antitrust concerns about that. so dollar tree and family dollar and being a competitor. >> free scale, these were all deals that were private to public that won big for people. important to remember that because most people feel the guys just exploit. >> certainly this one, way back when. and we've got more "squawk on the street," of course. revisit intel, see how that stock's looking and anything related to the pc complex on the lower revenue guidance from the company. back after this.

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>> this is one of those moments where i think you have to understand, the cross currents are happening. i was watching -- these aren't supposed to be happening, moves are too quick. too quick. i'm trying competent competent hen it. >> s&p at the some of the screen. big board, summit materials celebrating its ipo today. over at nasdaq discount store dollar tree celebrating its 20th anniversary as a public company. >> another win. watching shake shack, a popular stock. it's wildly overvalued versus all of the others but understand people think it's the next chipotle. chipotle on "mad money" tonight. there is no next chipotle, make that clear. there's never going to be another chipotle. chipotle is best in show. understand that's who they are. may not be a good quarter but look at trajectory of that

story. who came on "mad money" and told us buy that stock? >> danny meyer. >> after he did that great business book "setting the table" and said everyone must buy chipotle. >> people say, failure to hold on to that stake, mcdonald's, one of the worst corporate blunders of all time. >> they like industrial farm to dirty table. supposed to farm -- that was mean. on twitter i got asked what's people experiences are at mcdonald's and it's negative. i do not have as negative experience at mcdonald's. >> you never know what the trajectory for the chain had it stayed within the mcdonald's orbit. >> they would tell you, never happen. >> right. >> the ethos was so different. >> they had their hands full. >> they have done youtube, funny stuff about the industrial food image bureau or ifib.

never said mcdonald's guys don't have it. they say people want natural organic, want to live longer want whitewave, want to live to 100, want fitbit. silicon valley trying to just live to infinity and that's very hard to do. >> you said watch the banks. the regionals are all over the green map today. >> that's where you have to be. the area that's hurt the most by a strong dollar, tech is bad. area that is hurt the least by a strong dollar which are the banks, is up. >> right. >> makes sense. makes sense. is united technologies their wrap of europe turning around that is going to take hold? if that's the case the industrials that do business in europe aren't going to get hurt as badly as you think. great interview with mr. hayes this morning on "squawk." intel, coming out, right at the top of our show around 9:00 a.m. telling us we're not going to put up revenue number we thought for the first quarter.

now looking at 12.8 billion in revenues, previous guidance for 13. 7, plus or minus 500 million. company citing weaker than expected demand for business desktop pcs, lower than expected inventory levels across the pc supply charng believe the changes to inventory patterns caused by lower than expected windows xp refreshes and increasingly challenging macro economic and of course currency conditions, particularly in europe. intel down 4.5%. hewlett-packard down 3%. microsoft down 2%. >> microsoft should be down the most of all of those. >> why? >> i think they are the ones that will have the biggest miss. >> look at western digital today. micron, sandisk, lam research. >> crosshairs. sandisk less. but, yeah those are the stocks. everyone felt those are undervalued, low multiple. but it's not about the notion of

being inexpensive. it's about the notion of growth witness dollar general. people want growth. growth is not happening in a lot of parts of tech just not. just not. apple has growth but people are going to bring down apple with the complex. that's a mistake. >> after being down briefly there in the first moment the stock's up with the general market. the s&p up over half a percent here. >> look, this is a, again, it's the euro that's driving things. it's very hard for people to truly, trowly get a handle on this euro because it's just causing you to cut numbers, cut numbers, raise numbers, that's how big the moves are. cut numbers on the last three days since the buying of the bonds, you cut numbers. no one thought it would be that aggressive. no one. >> you had disney on last night, up more than a percent today. you mentioned "cinderella" this within. >> what a story that is.

i've got to tell you he has multiple year of growth bob iger seven-minute "frozen" coming out so you know. "cinderella's" going to be. "star wars." and disney shanghai is -- that's where they'll spend the money. >> going to -- they're spending billions on that thing, right? >> look they are talking about -- >> when is the open? >> spring some time. >> i think, right, guidance on that in last quarter. >> multiple years. >> money they've invested in the band at the disney world resort. >> i know. i asked bob iger who is on the board of apple, when one day i can get that watch and go like this. he thinks that could happen. it's not the breitling. >> you have a love/hate relationship with the watch. >> i do. i went to bed last night i took it off. i usually wear it. >> you wear it to bed? are you -- what if you hit

yourself in the head while sleeping. >> that's why i take it off for the "lightning round," afraid of hitting myself in the head. ten years of the "lightning round." >> ten years of "lightning round." >> lumber liquidators, what a week. we've got an s.e.c. filing today, conference call tomorrow. >> scott wapner's got sullivan on. lumber liquidators saying we'll go to your house, measure whatever air, whatever. lumber liquidators, there are companies that are doing so well i don't know if i want to get into the morass of lumber liquidators. they're talking about how things are better than expected. but it's a fluid situation. you know a fluid situation. i don't want to be in a fluid situation. you want to be in a fluid situation? i'd like to be away from fluidity. >> the fluid in the floors might not be a good next. >> i made a joke i said don't lick their floors people are saying, they're going -- this is -- of course it's serious. i'm not minimizing the seriousness of.

i'm just saying that you know this is one that the hedge funds, certain hedge funds want lower. we saw herb ba lie, what happens if you go after a company. company's less -- little more defenseless than you think. >> they are. it's a battle ground stock. talking a billion dollar market. >> it used to be key with the market. >> ulta salons and tractor supply. >> ul tata having an unbelievable year. tractor supply came back. >> i was concerned, true. >> oracle split adjusted 4 cents. thanks to mike santoli on that one. >> i once said something, you know, i've made comments that larry ellison hasn't done that well. larry ellison's created tremendous wealth. there was a period there was a

pause. oracle is not tied into what's happening in intel. does have great buyback. good co-ceos there. if you have to be in tech you could do worse than that one, you know? >> indeed. >> worse than that. >> indeed. at these levels 2053 overall, you're still -- >> i like the banks as leaders. makes me feel good. i like wells fargo, my charitable trust owns that. warren buffett had written his letter this week rather than last week would have reversed the dow 300. don't worry long term about the dollar and concerned about some countries. i was listening to someone talking about how he's worried about turkey i remember when i owned arslic. it was the bank of america of turkey, and it was the whirlpool. they were unchanged, unchanged. they devalued it ten time temperatures was like .1.

don't freak out about turkey. it not as big an issue as you think. i'm worried about turkey and flu than turkey and euro. >> turkey the country or turkey -- >> both troubled. >> yes. >> don't go to turkey -- >> look at tyson this week. >> turkey -- >> the worst. >> you know i think tyson's going to be troubled by that -- it's not over, we don't know what's going to happen. we don't know. i don't want to be involved -- empire turkeys, by the way, kosher turkeys, that's hane. keep that in mind. >> will do. >> 150 on the dow. bob pisani's on the floor. >> interesting open we have a mixed situation in europe. frankly the futures did not indicate this kind of notably big open i think that's very significant. want to comment quickly on the bank and dividends. comments that people want to invest in dividend paying stocks. these are not dividend all

stars. but goldman's gone to 1.4% these are the yields here. that's not fabulous but it's an improvement for sure. citi group 0.4%. they were a penny. now they're up to i think 5 cents now. that's 0.4% yield. that's not fabulous. but some are looking interesting. jpmorgan 2.9% wow, that's not bad at all. it was 2.6%. and we also got wells fargo 2.8% pretty good. wells fargo was up from 2.6% as i recall. that's getting respect. the s&p 500 only 2.1% dividend yield. big names, all moving to the upside. let's move on. i want to just point out that people who asked me about what dividends they should play and that kind of thing everybody buy dividends where you're consistently increasing the dividend every year. so one good etf, vanguard this fund specifically targets companies increasing dividend

year every year and it's reliable. there's a growth tilt. company dozen better when the economy's improving. as for the retail sales numbers, i don't know how to account for it. i think it's mostly the weather. if you look at the internet sales, month over month up 2.2%. year-over-year, 8.6%. people stayed home because the weather was lousy and shopped online. i think this statistic indicates that. i want to see march. if march is lousy, i think something is going onnen because they're not going to have a lot of excuses. big retailers, most as you can see are fractionally to the upside. fast casual numbers, the growth is not there anymore. i'm sorry. i know this is the hot category. zoe's kitchen, 6.7% same-store sales growth. now talking about 4% to 6%. shake shack same thing, 4.1%. it wasn't great in 2014. now they're talking low single

digits. i presume below. and the brgerurger place, they were 10.7. now guidance 2.5 to 3%. this category is desell grating. shake shack reported earnings to the downside. tech, big names, pc the storage space like seagate ulall to the downside. dow up 1062 points. >> news we got yesterday, of course, made the deal that valeant has to acquire salix more interesting. of course, put it in some question. talking about the news out yesterday that endofarm sus cals, though participated in the auction of salix and bid 150 a share, most in stock, decided after not winning the day, because valeant paid 158 in cash decides to come back and did so yesterday in a letter it

sent to salix's board of directors offering $175 a share, 75% of that in stock, endostock the rest in cash. it does have bank of america signing confident letters saying it will be there for the financing. one would not doubt that would be the case. they haven't paid for financing at of yet. this may have the impact of certainly how forcing valeant to have to raise its bid. that would seem to be something at least at this point, given they have a tender offer out there. a stock trading at 168. tenor's at 158. they haven't gotten heart scott antitrust approval yet but that is expected any day. they're in a position where they could close that tenor april 1st. if they wanted to raise, they could keep the timing more or less where it is. that's a key advantage. but salix board is going to have to stop and listen and see what they think of this endooffer.

most of it as i said in stock. it would result in a come been nation where salix shareholders would own 40% of the combination. saying we'll give you a board seat whatever compensation that represents, it's not completely clear. the key here is so-called date by which the fda said we're going to tell you whether we're going to allow your key drug to be treatment for irritable bowel. that's coming at the end of may, may 27th. endowill need a shareholder vote and there's a strong possibility that vote were they to actually succeed here, paying the breakup fee, would be held after that key day the fda. that leads you wondering what if it goes against salix and then shareholders of endo say, we don't want it this deal because this key indication for ibs is no longer in play and they can

say no thank you. a lot of moving parts here. much of it i think, coming back to the idea that valeant, which market cap would increase $17 billion from when it announced the salix deal now it also reported strong earnings, but a lot of it was due to the deal. >> i was looking at -- >> will they part with another $500 million, let's call it to up the an ante get the deal done? salix's advisors coming to valeant, come on right here, we've got to consider these guys. but there's plenty of hair on the endo offer. a lot 0 this when you step back nobody seems to care what the company's doing. >> that's so right. >> let's get the deal done. shire, which went after them inverted, endo'sen verted valeant's inverted. let's buy stuff, we don't karp remains me of the late '90s with telecom. >> wow.

>> there's a fever. >> actavis 248 when it annoyanced it wanted to buy allergan, no went to 292. >> raised $21 billion in debt. valeant raising what is cheap debt one would imagine, which may figure into their able to pay more should they want to. mike pearson, when i had him on ceo of valeant, said we don't like to part with currency. maybe they increase cash. >> they're there were people who thought look at 1999 2000 nasdaq at the peak it was riddled with telecom companies. >> don't you think it has a strange feel to a certain extent, the way the companies are running after other companies and nobody talks about the product portfolio with the companies. >> bristol-myers. >> salix. >> j and j is left be hind. alex gorsky. >> hard to do a deal. >> endo pain management look

what bristol-myers, real -- these are real companies. everybody's real. all real. i'm saying if you're trying to be -- you're pfizer you know doing your thing, eli lilly, along comes valeant, which was this little company and overnight it becomes at&t and verizon were most fearful of big competitors. >> yep. big competitors. tough time. all right. let's head to the bond pits now. rick santelli at cme group in chicago. >> thanks. two-day chart of 10s, we auctions 10s yesterday but we'll have 30-years today. fascinating because the whole word scarcity may be overused. but yesterday you can see the important area right around settlement, 2.10 2.11 did a lot of work there yesterday. take the chart back to the most important date in recent

technical history, it will be the october 15th. go one day earlier, what's important about this chart? you see that day on the left? that was around 2.14. we had 1.86 intraday low and settled 28 basis points higher. important level. settle at 2.17. consolidating there. this area is just a lot of resistance. the proof continues to be on the buy side to see if they can get it under significant levels. right now the best yield 1.86. low from the 15th. let shift gear overseas. two-day of bunds. yields moved up but before they did they clicked off another record. they have an 18-basis point handle on the historic low yield. look at separation. the difference between u.s. ten-year yields and ten year european or bund yields. if you look at this on a month-to-date -- one of month chart, it's unbelievable we covered 30 basis point on a one-month perspective from 1.

60 to 1.90. now in the low 1.80s, backing off a bit. how historic is this? 20-year chart you won't find anything. go back to around 1989 to find it trading well over 200 basis points. on the euro versus dollar 24-hour chart, we've improved. two-day chart better reality. month-to-date chart from 1.12 to 1. 1.05, everything takes a break and that's the way with foreign currencies and the dollar. >> rick santelli. when we come back exclusive with nelson peltz who will offer his take on how companies such as dupont, by the way today at highest since 1998 can boost shareholder value. dow's up 177. this is the best day since february 5, despite that warning on revenue out of intel. back in a minute.

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. what an interesting tape this morning. microsoft and intel, the laggards on the dow, after intel

warns on revenue. but not for that we'd have every dow component in the green, led by stocks like disney and especially the banks, as jim said. those c-car results resulting in hikes. >> bob iger too much in the pipe, whether cinderella "frozen," china. way too much in the pipe not to take that stock today. >> we'll get "stop trading" with jim in a moment. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪

the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

cramer and "stop trading." >> i said fluid situations. cyberarc priced 4 million shares at 51. the hottest area of the economy, cyber. the stock's come back that's the key today. got to finish well in the black. secondary's everything. >> on "mad" tonight. >> tenth anniversary, live show. boeing, jim mcnerney talk about an american icon and monty moran, farm to table to higher stock price. >> fair to say being invited on show is a big complement? >> thank everybody for setting up this live the show tonight. very big deal. thank you for the support.

>> you know it, man, we'll see you tonight. nbc says it's going to happen. we'll see. >> buy 300 cheesecakes. >> exclusive with nelson peltz at the big board, in a moment.

♪ i really really really like you and want you♪ >> good thursday morning. welcome back to "squawk on the street." carl quintanilla with sara eisen, simon hobbs. best day for the dow since early february. market largely overlooking on a broad level the revenue warning out of intel. euro of course all over the map, did hit 104.95 overnight. >> more on that during the next hour. vail resorts doubling earnings growth in the second quarter. the stock of the ski resort operator up sharply today, the ceo of vail will join us from an exclusive interview from denver. shake shack and box falling sharply after quarterly results. and exclusive interview with activist investor nelson peltz. he'll give us his take on dupont and other companies that can boost their shareholder value.

rick santelli breaking us in on inventories. >> well another number that slightly disappoints, just versus expectations. january business inventories expected to move up just a smidge and ended up unchanged. no up .1. and the reason i'm saying it's a bit weaker than maybe matched against expectations is you know how far back you have to go to reach another level of unchanged? because the numbers have been pretty positive as of late. we could argue what you think lower inventories means. last time we had zero may of 20137 last time a lower number like minus .1 you have to go to march. this is unusual. we have to monitor shrinkage and accumulation inventories because of effects on gdp and this is a first quarter. back to you. >> you've got us all. with dow up 173, we're in rally mode for the stock market after a lackluster showing yesterday

with financials leading the way. we are seeing stocks higher across the board, as i mentioned, with the nasdaq up a half percent after the biggest two-day slide for stocks since late january. how will all of this weigh on investor sentiment? christina hooper u.s. investment strategist and mary harris. thinking to worry about in the latest batch of data? chalk it up to the weather the weak retail sales. >> the weak retail sales initially triggered this type of reaction maybe the fed isn't going to drop patience afterall. we think the issue of dropping patience giving the fed flexibility and signaling imminent tightening of fed policy. we still think they're going to drop the word "flexibility" at the statement next week. but the market today is acting like weak retale sales, maybe

the fed won't drop patience but we think they will. retail sales, nasty weather last month, remember? i think that had something to do with those bad retail sales. >> we did see an uptick in the nonretail, online sales, so that would confirm that. you expected the word patient to be dropped. are you still expecting that? >> we do expect the word patient to be dropped although we would stress that what's farm more important when rates begin to be hiked is the path of hiking. the fed has stressed how data dependent they are, not just on when they're going to start hiking but what they're going to do after they begin hiking and that's critical. that's should give investors some comfort because the fed is being very thoughtful about this. >> are you expecting this strong dollar in such a short time period to start impacting the economic data and, therefore, impacting fed policy? >> the fed has to be considering the strong dollar. we're starting to see more and

more signs that it's impacting earnings impacting the economy. keep in mind the united states is unique in so much of domestic spending, so much of the economy's driven by domestic spending and we are unique in that regard. we can weather this more than others. >> morry, you've looked at effects of strong dollar in the past do you think investors are right to be freaked out about the impact of this on the u.s. economy, corporate america, fund flows, et cetera? >> well the simple answer is that s&p is not gdp. you're more worried about the effects on s&p earnings which is grabbing the stock market, than you should be worried about the overall economy. there's so much of gdp that is not affected by trade. and the bottom line here is that even with the strong dollar the manufacturing jobs are still going up in the united states. they would have gone up even more without the strong dollar but despite the worries, when

you look at how many jobs we're creating including manufacturinging, we're holding up pretty well. >> what do you do as an investment strategist? do you stay in the u.s. stock market and ride out peers of volatility as the federal reserve gets to something that feels more normal? >> what you want to do is be globally diversified, so you want exposure to assets like u.s. stocks and also equities around the world. you want to have actually multiasset exposure and you want active management. what we're starting to see is correlations going down. this is a changing market environment because the fed is easing accommodation. >> christina, you work for allianz, can you give us any color on how it feels to be part of a big european group with everything going on in europe? we discuss fund flows all the time. deutsche bank talking about 4 trial euros, a euro glut. are you seeing that? what are people seeing

internally. >> they're seeing an improved economic environment in europe. i think there are real surprises there among many who are watching such improvement. in fact we talked about divergent paths for a while. but paths might be even more different in their divergence in that the u.s. is slowing down slightly and now seeing acceleration in europe. >> headquartered in munich at a time when the bank is saying we don't need qe. are you veering -- is the conversation veering towards maybe qe isn't a great idea? >> there's been a consensus that qe made sense for a variety of reasons and mario draghi really has worked very hard to get where the ecb is today. certainly part of the confidence we're seeing in the markets is being driven by qe. >> quickly, maury, to that point, is all of this qe the 25 i think it is interest rate cuts and quantitative easing moves by

central banks around the year will help global growth is it going to work and when does that happen? >> it's already worked here in the united states, where we've had a pretty dramatic pickup in job formation over the past year on the heels of the qe in the u.s. this is just a reminder that monetary policy works and it's going to work that way in europe, too. just be patient. >> being patient here with the dow up 157 points. thanks to you both. >> thank you. bad wintry weather on the northeast being blamed for the morning's poor read on retail sales. west coast, it was the opposite challenge for the ceo of ski resort operator vail. a lack of snow on the three resorts around lake tahoe, due to dry weather. the ceo of vail resorts joins us from denver where he's reported 80-cent beat in earnings. welcome back to the program. by the looks of the stock price move this morning, the quarter shook out fairly well. >> yeah we feel very good about

the quarter, obviously. we had challenging weather in tahoe but resorts in colorado and utah have been incredibly strong. the benefit of the season past program, marketing efforts, and the company's in a very strong cash position, which i think is -- sets us up very well. >> you are regarded as a good read on the high-end consumer. a lot of people are struggling with the high dollar that we have at the moment. you spent a lot of time traveling in dra brazilianbrazil recently. are you going to have to reduce prices? >> you know i'm having trouble hearing you. we actually -- we flew it back in our quarter we think that we've had incredible strength across the board. obviously from the u.s. market doing incredibly well. even with some of the currency shifts that we're seeing with the u.s. dollar abroad those things, right, we think overperforming that, a lot of our travelers have investments in u.s. dollars and at a wealth

level where the currency shifts are not as critical. >> i mean obviously it's a busy summer for you as you spend $50 million on this superspeed gondola to connect park city with canyons, the biggest ski resort in the united states. what about the championships, the world alpine championships, did you take a hit. >> like any international event there are a lot of travelers that do not want to visit resore while having a big event. we expected to take a bit of a hit, that was factored into our expectations. park city we are -- could not be more excited. a huge opportunity and as we look forward we just announced launching new season past sale for next year with park city as part of that. that's a huge opportunity and amazing way to drive our business with stability as we look forward despite the weather. >> you're a former wall street

guy, apollo management, private equity, of course. what do you think about the way of the collapse of the euro affects your options? you wanted to partner with people on the paths around the world. do you look at those ski resorts in france and italy and think, maybe we should make an offer? >> you know we take an approach that's thoughtful about our strategic interests. we have been looking abroad. we've been public about that for a couple of years. certainly the currency helps that but the u.s. mark is also incredibly strong right now. so while the dollar's strong that also helps us because that's the primary market that we sell to. we look at european opportunities, try not get too caught up in the currency moves but there's no question it makes it more attractive. >> do you ever regret -- you moved there after 9/11 -- do you ever regret the move that you made? >> no, not at all. i think -- no not at all. >> it's good to see you, rob.

thank you for your time. rob katz ceo of vail resorts. >> nelson peltz stepping up with his fight with dupont, sending a new letter to the board today. stocks at its highest level since 1998. he's going to join us live for an exclusive interview to break down all of the details. dow off the highs, up 159. "squawk on the street" will be right back.

♪

♪ almost feels like spring in new york city. welcome back to "squawk on the street." men's warehouse shares up 10%, the stock is soaring after the company reported strong earnings for its legacy brands in the recently acquired jos bank. but the company expects results will improve in the second half. men's warehouse expects to profit -- its profits to accelerate in 2016 as well. hence, sara that move higher. >> yep, up almost 10%. up next actavis investor and trian partner, nelson peltz live here at the new york stock exchange for an exclusive interview. stepping up its proxy fight with dupont with a new letter. hear what he has to say when we come right back on "squawk on the street."op portunities aren't always obvious. sometimes they just drop in.

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when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver? hedge fund nelson peltz trian and dupont rages on. today mr. peltz isn't a new

letter to dupont, highlighting his past successes as director. in fact including many testimonies to his success as director. fighting back against dupont's refusal thus far to settle. joining us to break down the details nelson peltz founding partner and ceo of trian partners, $1.9 billion of dupont stock and has for a while. >> might be 2 billion today, it's up. but before we get started, i want to wish my wife happy birthday today. >> that's nice. >> claudia, happy birthday. >> 29? >> just turned 29. >> well done. >> we've been married over 30 years. >> only you, only you could create that wealth. >> my lord. all of those children. nelson, i want to get to news right now that i have pick up, at least, from my sources which is that yesterday you had a conversation with the ceo of dupont, with lead director sandy

cutler in which you made a new offer, if you will to say, okay i want four board seat but was now i will accept two boards seats on dupont and two on the planned spin-off na dupont has. >> right. >> a, is that the case? and, b whatas the response. >> that's part of the case. i said that first of all i want you to know we got a call from one of the biggest shareholders one of the biggest mutual fund complexes, and they said please get this settled. they think it's a waste of time. it's a waste of money. management is all over the place, we bumped into ellen in baltimore, she spent the day in boston, they need to be running the business. so we took that request to heart and we called yesterday, i called allen yesterday, and told her, i think it's time for us sit down and see if we can accomplish something. she said she was leaving the country but would try to get a hold of sannydy cutler.

i suggested she convene the board in case we achieve something. i would have liked to have told the two of you about it today. nonetheless she called me back with sandy, and they said they had made a terrific offer to me one of our nominees on the board. i said that didn't work then it's not working now, especially since we have been around and seen 30 odd percent of the ownership of the company and the feedback has been very strong as far as we're concerned. so i said let me tell you what i'm willing to do. i'm willing to have two directors on the doourp boardupont board, me being one. >> you keep saying -- >> the other two directors on the commors board, a board in formation. thirdly, what you didn't hear

the corporate governance has got to be changed. corporate governance super majority vote situation staggered board. okay? we think that's sir ka 19circa 1960, we think we need to change that corporate governance. as a result -- i mean that really tells you what the board of dupont thinks about all of us as shareholders. the governance at dupont today is excellent. why not keep the same governance when they're spinning off a company. >> that is a new part of your battle here as well. >> that's been part of our battel from day one. >> doey do yey why do you keep insisting you be on the board of directors? ed garden, your partner, was in fact the dessingnated nominee you would have had. why does it have to be you? >> it has -- first of all, ed is quite busy at bank of new york okay? when you get on the board, there are a lot of meetings and a lot

of work. and, frankly, now ed is holding a -- another activist at bay at bank of new york. so he's pretty tied up at the moment. and i felt i had been in the chemical business at within point in my life actually been in ag chemicals so i understood the business. i felt if they turns down ed why not give it a shot with me? ellen and i had lunch, i explained all of the reasons why i thought we could help. when we do get on a board, when trian gets on a board, it's very different, david, than when a normal director gets on a board. >> why is that? >> because we get on a board and, today in companies like dupont, there's a thousand pages, and i'm being literal here, a thousand pages of information that float into your ipad between a week prior to the meeting and the day of okay?

you tell me one director sitting ceo that's got his own company to run or retired ceo with no staff, can absorb a thousand pages. >> sandy cutler ceo of eaton. >> that's questionable whether a sitting ceo should be a lead director anyway. >> let me ask you, something i've said over and over on "mad money" and on "squawk" if you buy a stock, after, as opposed to before after nelson peltz makes money, you're long termer but let's deal with 2015 dupont, up 7.2% dow up 2. 5, ppg down 2.5, lyondell up 7 easton chemical down 7. you've won, why not declare victory? >> we're halfway there. >> halfway? >> halfway there. >> all time higher -- >> not to mention 266% return from '08 to '14.

>> you want me to answer or keep firing questions? >> you know we can't help it. >> i love you guys. let's me tell you. >> okay. >> when stocks go up they go up for two reasons. earnings go up or there's an existential factor. >> okay. >> if you put up -- i'm not a chart guy -- if you put up a price earnings chart that we put forth. >> yes. may have it. >> you probably have it somewhere. and that chart will show that 2011 earnings were4$4.32. >> when it hit the all-time high. >> since then 12 13 14 and guidance for '15, which we don't think they will make are all below 2011. all below -- so why did the stock go up over 50%? it's because we're involved, and

because of what jim says every time we're in a stock, it goes up. the stock is up over 50% since we're there, okay? since people knew we're there. >> dupont would claim because we have made moves to divest businesses move into higher growth business was we're get reeg warded with a higher multiple. they cite 4.32 number you cite from 2011 and say, it was never reported in our public filings, it relates only to arbitrary year, self-servingly selected by trian that includes data from businesses no longer or will no longer be part -- >> i don't get too upset easily. have you got my slides. >> we done we were showing one now. i know where you're going now. go ahead. >> how many eps numbers do you think dupont put out for the year 2011? pick it. >> i know now, because i've seen the slide. >> you tell me. >> i think 11. >> no nine. >> nine. >> we only put out one.

okay? they put out nine. and those numbers go from $2 and something to $4 and something. so you can pick whatever number you'd like. okay? the fact is -- >> showing that now. >> only showing half of it. >> we've got to go to the next. >> improve your technology here. >> running cnbc. >> running the network. >> you guys got a the of work to do. my slide 8 1/2 by 11 come on. >> there it is. >> so listen to me want to know how to i got to 4.32? okay. they did 3.93 for calendar year 2011. that's what they got compensated for. okay? >> okay. then they put out an 8k and said you've got to add back a portion, you've got to add back a portion of the pension, the nonemployee pension that was 39

cents. they said also that the most important number for us is operating eps, which was 3.93. then we took the 39 cents, which they identified as an add back how we got to 4.32. okay? against the other nine numbers. now they're trying to tell you that earnings for 2011 were 2. 03. they got paid on almost$4. >> i want to ask, you know i've had ellen kullman on "mad money," a reasonable person. how bo you propose, john myers, arthur winkleback. do the deal now, say those are two we'll give you, seal the deal tomorrow? >> no. okay. and the reason -- they know the reason better than you know the reason. and the reason is when we come on a board with a partner of trian goes on a board, about 20 people sign a c.a.

they sign confidentiality agreements when the 1,000 pages show up legal goes to legal department finances go to financing department everybody the operating materials go to the analysts who have been following this company for two-plus years in the industry for much longer so when we go into a board meeting, when we go into a board meeting, we know what's going on. the other directors, and they try and they -- they have good intensions -- those 1,000 pages become a show and tell as opposed to inaction. >> it doesn't make me feel particularly good what goes on at many gourdboard. two very powerful people that you'd considered for your own nominees. >> let's not get into that. >> considered. i said considered. >> you did it right, yes. >> okay. >> they are terrific. and they will be part of our slate. we will put four people up. we will put green and gallagy,

we think the word of them. >> on a separate -- >> they wouldn't -- >> we have a short slate. they wouldn't accept the universal proxy card. we also put ellen on the slate, by the way. okay? >> kind of you. >> no no. on our slate. >> i understand. you're not in her face. your not in her face. >> exactly right you look at our record, we have work with ceos who have fought against us. look at bill johnson. he was ceo of heinze prior to dur, post the proxy fight. bill is an advisory partner at trin and trian. >> what did she say on monday, bill johnson's going to walk into the company, at pepsico, in may, when he starts hi board member and fine this beautiful architecting company focused on performance and yet longevity. she's saying he's going to love it and not going to recommend any changes. >> let me tell you something, the company's gotten so mumpch

better since we've been there, so much better. g&a has come down. direct market spend has gone up. >> pepsi. >> that's correct. that's correct. talk about dupont. >> i want to go back for a second. >> talk about ellen stock sales. >> let's me ask a question. >> go ahead. >> what i hear from some people close to dupont, nelson is not talking about separating the company up any more but that's what he wants he wants to break the company. we don't want to break the company up. we let him in that's what he's pursuing as his main agenda. >> first of all four members of 12 people, okay? that's number one. even if we came in of that signal mind without listening to reason whatsoever we would still be four votes out of 12. >> if you won every seat. >> that's what we intent to do. we'd only have a third of the votes. but that's not what we said we would do. what we said we think the most

efficient way to get rid of this corporate bureaucracy, there is $2 billion to $4 billion of excess overhead. >> already going after $1.3 billion in costs. >> i want to find it on eps line. >> they say 2 to 4, 4 is way high. >> 375, please you're wrong. 375 of that 1.3, okay is being transferred to kamores. that's not a reduction of overhead. going after 9 million, number one -- the 2 billion to $4 billion is demonstratable. i've got another slide there get the whole slide up. >> i don't know that we can. but we can always try. we aspire to getting entire slides up. you're going to take this all the way? you've only had one proxy fight in all of the years right, heinz? i remember covering it well. >> look at our record. look what happened to heinz. look what happened to heinz.

heinz went from 30 to 72.50, when buffett bought it out. okay in it was the only food company, the only food company, that had 8 32-straight quarters of organic sales increases. the only food company. >> heinz had not been up 266% prior 6 years. >> you know what? you know when the last time dupont achieved this stock price? do you know when they achieves the stock price last? >> it was not that -- it was -- >> 1998 i'll help you out. 1998. >> takeover period. >> that's a long -- >> that was a lot of stocks went crazy then. >> a long time between drinks though. i've got to tell you something, 1998 to now, and look at the stock, jim, from the time people knew we were in the stock and then look at the stock when we issued our white paper, and you will see the stock going from 50

to the low 60s. white paper comes ow it goes into the 70s. these are not earnings moves. these are not earnings moves. >> what are they? >> they are existential moves because people know there is going to be change at this company. >> even though you as you said you'd end be four directors if you won every one and that's not clear you're going to. >> it may or may not be. i've been one man on a bore. one man on a board at legg mason and look what happened to that tock. >> you're going to try to push for a breakup. >> what i said what i said is the most efficient way to get rid of the 2 billion to 4 billion of excess corp rate overhead and it's mathematical and i can show it to you, the most efficient way is to break up the company. but i said that we have an open mind. if management can convince the board -- and they've got to convince the entire board -- that they can achieve that

metrics of the standalone comps whether it be on sales growth or margin, if they can achieve those metrics, and keep the company together we're all ears. okay? >> don't you think the two people that they put up are certainly willing to do your bidding and you don't necessarily have to have a bunch of guys on your team there? they very active. >> ed garden say, ellen's been an activist in dupont. that's last may. it not long ago your partner ed said she's being an activist in her own company. >> that's when we thought she would do more from one of our conversations. and then in july she took down her guidance for the third year in a row, okay? she took down her guidance in july and that's when we said no more. look we stayed under the radar, we didn't come sit in these

chairs for 18 months after we owned our stock. you tell me what activist who buys almost $2 billion of stock in a company and sits for 18 months working behind the scenes with management and the board -- >> valueact is the only name. >> most take 18 minute and their right here there bill johnson, happy enough to have one person there was a conflict. >> two. >> but for pepsico. happy enough with one. i know over and over dupont said look you refuse to consider any path forward that did not involve putting you personally on the board. is this some sort of an amuss against you, do you feel? >> i leave it up to you. i don't want to prejudge people. i have to work with them at some point in time when the election's over. it's unfortunate they didn't accept my proposal last night or haven't turn immediate down. but from the body language on the phone, it didn't sound like they were popping champagne

corks. >> you expect the battle will continue settlement is not in the cards at this point. >> i hope i can be pleasantly surprises and i'm hoping they will come back and accept it but those are the -- that's my offer. by the way, that's a big give. that's from four to two. they have a board in formation now, okay? so they only have two directors that we know of. so, to take two of us on the dupont board, and they can make the board 14 they can do it any which way they want to do it, take two put it on the board where they only have two directors right now i don't think it's a big deal. that's a big compromise. >> they say it's not. when we see a settlement it's from four to two there i'm getting two on the dupont board. david, how much damage do you think i possibly can do in a boardroom? >> i don't know but you're getting graphics policy change

at cnbc. i mean you know -- >> do you have the votes nelson? look you went after huntsman those are down lyondell going after one of the people he did a great job. i'm not voting for him. he won, fantastic. >> let me ask you something. suppose you're right and i lose and i've gotten this question a lot, will i still hang around? will i still stay in the stock after -- >> yeah because the stock might go down otherwise. >> i don't know. 1.9 billion. how much is the stock going to go down if you're a seller. >> liquid stock. if you ask the questions. do you think the stock goes down? >> he's the expert. >> do you think the stock goes down if we don't get on the board and sell the stock? >> in the brief time one other issue, related to this but has been brought up a "fortune" article, andrew sorkin wrote it. >> please. ask it.

>> it's ellen kullman. >> and irene rosenfeld. >> i want to remember all of the names. three fortune 50 companies. >> what is it with you and woman? anything? is it coincidence. >> i love women. 3 out of 28 of our activist campaigns, since i started the fund, were women, 3 out of 28. if you go back pre the fund the dom nominator gets bigger. irene rosen fell and i are fast friends. i'm on the board, she's doing great things you've seen announcement she made sense we got on the board. zero base budget margins from 12 to 16 by 2016. jv and coffee, freight grategreat stuff. indra and i have made friends and indra agreed to on the chairman every year of the simon

wiesenthal center dinner. she's agreed to be my honoree for 2016. okay? so, there you go. she and i, i think -- >> coincidence? only 23 female ceos of the s&p 500. >> you know i'm gender blind. i look at numbers. i look at companies living up to their potential. i look at the fact that we have a plan to get them to do that. look, we're a derivative of private equity. that's what we are. and let me tell you something, the long only guys who we are as well they have been -- they have been watching over 30 years this transfer of wealth from the public sector to the private sector. they've watched their companies that they could get at 2% dividend and another couple of hundred basis points in stock appreciation for a dozen years, and private equity come in and wrap ten layers of debt okay

and in five years double or triple. look at heinz, they put ten times debt on heinz. >> i'm not sure you want to put ten types debt on a public company. >> i agree with you. but we do believe that public companies can heal themselves in the public markets. they don't need ten times leverage in order to get better. so, we believe that they can get better if there's an ownership mentality on the board, if they have a private equity mind-set to this public company x the debt. so we can ameliorate some of the wealth transfer. you look at what they did with the coatings business they sold the business and i've got a slide. >> we're running out of time to get into a debate. but i know the business they sole. an early point you made and the performance went sky hype now they'll say, listen it needed to be fixed, we didn't want to fix it we knew we had to sell it we sold it the bezusiness took

over. >> can you top? i know all of than you want to know facts? they said they sold the business at 12 times ebitda and giving each other high fives, okay? when it was bought by carlisle the 340 of ebitda which was flowing to eps became 570 for the same year. you know how? you know how? you know how they got the other 230? they got it by eliminating the corporate charge because now it's out from under. they created that own legal department, own tax department. this is for the same period the same revenue line the same assets okay 340 became 570 like crossing out corporate charge. that's $5 billion of value that went from public shareholders to the private sector. when you extrapolate those

numbers as a p/e ofercentage of sales or ebitda you wine up with $2 billion or $4 billion. they said your numbers are wrong we do it on head count. we did it by head count, they were right. it's only 1.8 billion. those company trades ten times ebitda. $18 billion to $40 billion of market value. >> we're out of time. appreciate it. nelson peltz, of course ceo of trian, 1.9 billion worth of dupont stock is owned -- maybe 2, as he said. >> big news. i did not know about the call last night. >> carl. >> thanks a lot. shake shack and box, falling sharply. after their first quarterly results as a public company. we'll break them down. the former ceo of priceline and fresh direct has a new venture. he's moving into the world of social commerce. dow's up 158. back in a moment.

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welcome back. stocks we're watching intel warning on revenue, box and shake shack both lower this morning after earnings results. and the banks moving this morning following the c car results last night. weighing in on this mike santoli when joins us at post 9. >> good to see you. >> is this a change in leadership from tech to financials? >> it look likes at least for a day, right, two days, really. i think you had more of the banks kind of outperformed expectations on the tests than failed them or fell short. so i think that means that fine the bullish story for the banks for now is coming through, all about cash return. it's not anything else. it's not about return on equity not about the business stuff. tech i don't know if i'm going to take away too much from box because -- you have to explain to me why $2 billion company, why we talk so much about it great branding on wall street.

and silicon valley. i don't know why else. but in terms of intel, this was a well telegraphed miss and yet still it hurts. >> i wanted to ask about shake shack and what we've seen with the stocks. they came out of the gate with a boom, at lot of the fast casual restaurants. a warning on hot ipos. >> look like it. these guys are trading both habit and shake shack well above ipo prices but not really doing much of anything for public investor whose got if on day one. i feel like it's one of the deals where, again, shake shack had amazing branding because we're all here we experienced it, and habit, california company, different situation has more revenue and half of the market value of shake shack. >> shake shack's even after the fall valued 1.5 billion. despite going through that quarterly earnings statement, it is still heavily valued. >> all on the comp.

if only this concept took x percent of fast food and i think it makes some sense. one quarter's results aren't going to tell you very much when paying up today for years worth of growth. and i think that's what you see in both these situations. >> what's the betting line on the fed next week and the language? >> it changed today, i think, because of retail sales i'm done think it changed radically. i still kind of think that the way to preserve maximum flexibility for yellen is to get the word out of there, get "patient" oust the statement. doesn't mean it has to be two meetings after that that they raise rates but it could be. >> the dollar shooting higher, wouldn't that be so painful? >> probably would. can she afford to do that? >> i don't know. that's the whole thing. >> i don't know either. >> do you think the dollar would shoot higher than it is right now? in other words, how much would the odds of june go up if they took the word out from this point? >> how much is already in the

strong dollar. >> what i'm asking. >> overnight another interest rate cut, this one was a surprise out of korea, happening all over the globe. >> maybe fisher and bullar were no accident and there to give corer for next week. >> exactly. preserving flexibility means probably trying to get that word out of there i don't know you'll have much data between now and then that can kind of change that equation. >> do retail sales surprise you from spending standpoint? given energy is that it saving for the apple watch? >> i done know if it's saving or debt paydown or not extrapolate extrapolating -- first, february gasoline wasn't cheaper than january. the drop in february and i think we're going to be talking about weather, when it comes to first quarter gdp again, just like last year. >> never satisfies the critics. >> exactly. >> should the fed be looking through that. >> as it did last year with the tape somewhere everything else. i don't think in terms whether driving fed policy but more in term trying to interpret what

the actual fundamental economic trend is. >> what's your take on valuations and the recent sharp painful sell-off that we've seen in the equity market? was that it or brace for more. >> it looks like you got quickly over sold i was glad to see the individual investor sentiment numbers back off today so maybe it bounces here. i think a lot of people are looking for a short-term bounce. valuation -- i don't think valuation is in the bulls' favor. it's not extreme. earnings forecast have been coming down. >> do you have any sense of how bumpy it could get going through the summer and the rate rises. i mean some people are talking about three rate rises before the end of the year. maybe they're wrong. that's where some people are. how bumpy do you think it could get some. >> just the very fact that you have so much of a divergence of an opinion and people with very good cases to make on either side, means the argument gets hashed out? volatility in theory at least it should. sara mentions the dollar is the front on this battle so that's probably going to be the thing

that drives and then everything else is after shocks. >> yep. >> good to see you, mike. >> next time. mike santoli. over to the cme and check in with rick santelli and get the santelli exchange. hey, rick. >> hi carl. i would like to welcome my guest, daniel quinn mills. thank you for taking the time this thursday morning. >> my pleasure. >> we're going to play my favorite game quinn, we're going to play myth busting financial news. okay. >> all right. >> your area of expertise is seasonal adjustment. . >> yes. >> true or false, when we look at seasonally adjusted retail sales that was out today, and we look at the data and wasn't good it's the weather, this a flaw in that statement, sir? >> yes, of course. with double counting. you've already adjusted. >> exactly! >> for the weather. >> quickly, let's get the public up to speed. look at table one on census.gov

regarding retail sales. nonseasonally, $389 billion, january revised on an adjusted basis versus 401, much lower. if you just look at the big difference the -- what we see is adjusted versus not seasonally adjusted the difference $437 billion on the money side versus a real number $389 billion. those numbers are wide apart. why isn't anybody talking about this quinn? >> i don't know. the economy is actually a good bit weaker than people are saying in those numbers indicate that. >> so when we look at weather, that's exactly why we have the seasonal adjustments there, and then the other issue is if we draw interpretations, whether it's jobs or retail sales, ultimately those seasonal adjustments disappear and you wrote an op-ed saying that's problematic even if they converge tell us why? >> they do disappear over the

full year. but we make decisions on a basis of months and weeks, traders act on a daily basis. over an entire year the differences disappear. >> do you think the traders like i associate with on this trading floor are being pessimists by pointing the double counting out? >> i don't know exactly why they're doing it but it's not easy to get the nonadjusted data. you did get it but it isn't easy to. the data reported by the government and that the media report are the adjusted data and so people misuse them. >> i got you. final 30 seconds, quinn, is -- are there ways that retail sales seasonal adjustments are better or worse than jobs considering industry changes and different trends over the last 50 or 60 years since some of these programs were written? >> no i don't really think so.

i think both of the adjustments, both retail sales and employment data, really need to be looked at and updated on a significant basis. >> i got you, quinn. it's always a pleasure. thanks for your unvarnished honesty regarding how to interpret data points. sara, it's all yours. >> i'll pick it up. just to confuse you. lumber liquidators shares are jumping this morning. the company is currently in the midst of its conference call giving an update on the ongoing controversy over the safety of its flooring which was highlighted by the "60 minutes" piece. they are offering free safety checks for any consumers that want it. we will have a full update as soon as that conference call is over. >> scott wapner all over that at the "halftime report." over to jon fortt with a look at what's coming up next on kwa. >> bad math a weak guide, all of that has box down big this morning. a look at whether that's warranted. a and raising money in asia. everybody's doing it.

snapchat looking to pick up another couple hundred million left. half a billion dollars. what's behind this trend. all coming up in "squawk alley." say you're a finance guy. a farmer. a researcher. you used to depend on experience. the internet. your gut. today you can use ibm watson analytics. it can make sense of all kinds of data. uncover hidden correlations and new opportunities. and give recommendations with more confidence on who will buy. what to make. where to plant. which helps you make smarter decisions. there's a new way to work and it's made with ibm. [ male announcer ] your love for trading never stops. so open an account with schwab. and when a market move affects, say a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move wherever you are. and start working on your next

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. one of the biggest questions right now, how will the super strong dollar impact earnings? certainly investors are worried as evidenced by the sell-off over the past two days in stocks and for good reason. here at cnbc we polled our cfos of major s&p companies how they're dealing with the historic dollar surge. everyone we asked is feeling the pressure. almost 70s% of them say it's negative, while 25% say it's positive. likely those that are actually domestically focused don't is have to worry about oversea sales exposure. they would say it's positive versus others more internationally focused. whether asked whether policymakers should intervene and check it out. some say it is on congress to do something or the fed, but actually most of the cfos told us neither. we asked about predictions for parody, euro to the dollar. cfos expecting it but very few expect it to happen over the

next few weeks. the most popular was that the euro will hit one euro to one dollar in the second quarter of the year. some say it will take until the third quarter. and some say it won't happen in 2015 at all. certainly proving with earnings lately that they're not the most accurate forecasters of currencies when it comes to hedging and the impact on profits. simon, when it comes to headaches overall we asked them to rank where currencies if fit in in the overall line of headaches. for some of them number one but we saw concerns like weakening consumer demand cyber security attacks, emerging markets pain obviously this is moving up the line in terms of their headaches and what keeps them up at night and clearly, it's going to have an impact. we saw it in the last earnings season. watch for it to hit this earnings season. cfos are concerned. >> puzzled as to how 8% think congress can weaken the dollar. >> you will hear more and more lawmakers complaining. >> that's for sure. >> about currency policies. >> that's it for us. over to "squawk alley."

take it away. >> good morning. 8:00 a.m. at box headquarters in california 11:00 a.m. on wall street, "squawk alley" is live. ♪ ♪ >> good thursday morning. welcome to "squawk alley." henry blodget, founder, editor and ceo at business insider joins us this morning. jon fortt and kayla tausche. here at post nine. market is interesting. dow up 176, best day since early february, box, shares of the cloud storage company sliding after the bell when the quarterly results did