3.1415926 and 54 seconds when pie really nails it. >> wow. tweet out at that moment. >> i may tweet out. i'll get up and see if i feel differently right at that moment if i feel circular or something. >> everybody, have a wonderful weekend. join us on monday. right now it's time for "squawk on the street." ♪ happy friday 13th. welcome to "squawk on the street." i'm carl quintanilla with jim cramer david faber at the new york stock exchange. the seesaw action continues, premarkets lower after yesterday's rebound. russia's turn to cut rates again. oil down a full 8% since monday as it's lost all of the gains from late january and february. the ten-year sitting around 2.10 another weak macro number wholesale prices. another swing in the market the surprise deflationary print on ppi, weighing on the markets this morning after yesterday's

rally. >> who's investigating the investigators? bill ackman responds to the report that he and some of the people who advise him are the subject of a government probe for manipulating stock prices. hello, it's tim from cupertino on the line that surprise interview with apple's tim cook and our own jim cramer last night on "mad money." we'll let you hear that. producer prices fell for a fourth straight month, down un unexpectedly in february by .5 as decline in food prices offset increase in gas prices, a daft the rally sent the dow and s&p into positive territory for 2015. but we'll ride that back and forth. >> yeah, i'm looking at the euro and i understand that it's really difficult for the central bank to keep buying bonds. there's not a lot of bonds out there. their work may -- which came in with a lion may go out like a lamb at the end of the week and that's why if we can see any surprise strength in the euro i

think that stabilizes things. if we see the euro keep rolling over, we'll be back in the soup. be aware that it's euro euro, euro petrobras, petrobras, petrobras. >> around 1.06. goldman sees 95 cents in 12 months, 80 cents by the end of 2017 and all-time low is 82 cents. >> if that's really the goal we're going to see so many number slashes, you're not going to want to own any company that has an intel-likiceiceintel-exposure. i think you've got to be really -- steer clear of companies 35%, 40% europe of which there are a bunch, if they do that. but otherwise, you go back default to what united technologies said, there's a point we have so much in europe and europe gets better it will be a swing. it's the currency weakness cutting numbers currency versus the strength of the business and that's where you've got to measure where. >> that's where the rubber hits

the road. >> why do you mention petroba which we talked this week? >> trying to do a bond -- >> the thinking -- >> trying to do conversions down there. i think there are a lot of american bond managers that reached for petrobras and petro petrobras petrobras's got dollar denominating bonds. remember, this was a $350 billion -- >> yeah. >> the largest companies. >> one of the largest companies, 7% or more of the brazilian exchange market cap, enormous amount of debt. under a corruption investigation that continues. and dealing with low oil prices that it's costs, you know cost for getting it out -- >> why did you think it was important that i mentioned it? >> i think brazil's important and we should keep an eye on it. i don't think any of us

understand whether it will have a particularly significant effect on a lot of other markets or on our investors here or for selling in other securities. but it's worth watching. >> that's what i'm worried about. talk about -- i make an argument that petrobras's bigger than greece, this company. >> right. >> because it's the -- the impact is -- you've got to remember, we have emerging market debt bond funds, and this was, i don't know, what do you call it, italian bond of 2011 except italy is a sovereign. what happens if this is taken over? not taken over by exxon. >> brazilian economy, nobody has anything good to say. >> everything comes from left field. >> olympics will solve everything. >> that's right. absolutely. >> as for oil, we mentioned the declines, north dakota n. output down 3% "the journal" piece today looking at guys who went

to the baken in search of big dreams are digging ditches. >> there were farmers, remember that's the state that produce the most sunflower oil, navy beans and farmers were saying, don't get caught up this could be a burst. i'm like are you kid me? $26 an hour at mcdonald's, a bust? we've been there before. you get a bust, nothing to do with all of these people that are here. well, that's happening. >> also a goldman report today, again, on oil. commodity watch where they're negative basically saying commodities are not like equities and the recent price recovery particularly etf flows not reflective of fundamentals. they think inflows into etfs are generating selling opportunities in oil and copper precisely because they're at odds with commodity market fundamentals. >> 42 is the level, january 28th. i personally think that level can hold because rich kinder kinder morgan he knows more than i do that's the level he felt was unnatural.

dave cody does the big refining chemicals felt 50s legitimate number. production is so up it's up so huge in this country, this quarter, that it's really kind of daunting, and a lot of people felt it would be down. it will be up very big in the second quarter. too much oil coming on. mexico, gulf of mexico canada, because of the work around of keystone people don't even realize we're not exporting, it's here in the country $35 for bakken oil, $35. be aware we're not done. natural gas, you've got to cap it guys. cap the natural gas. >> you saw chevron's conference call argued that nat gas at 3 is equivalent of crude at 18. that's crazy. >> yeah. cap has a dollar cost up there. building pipelines. mark west doing fantastic pipeline work according to rbm. it can go down. when i say no place, nordic

american tankers are getting filled up i'm not recommending anything but that's a place to store. herbalife, "the journal" saying prosecutors are probing potential manipulation of herbalife stock. said to have interviewed people hired by bill ackman's who had a long standing short on herbalife. earlier this morning on "squawk" ackman's been asked if he's been contacts by investigators. >> we have you know proactively and offensively been to see the sec and doj about herbalife but i haven't gotten subpoenas asking me to testify about market manipulation or anything else that's concerning our conduct with respect to herbalife. >> a lot of talk about what they would need to find in order to file a charge something deliberate, something intentional. >> i think that this story is the kind of story that you really -- it's very unfair. i mean if ackman is saying that he hasn't been contacted and there are no subpoenas, there's

no fbi, it really is just a slur. it's a slur. now, i know that there could be -- in the end, the guy did come on tv made an interesting case about value. >> very long report so to speak, on valeant, which he owns 5% of and the overbid for salix by endo. but back to this my god, how many years will this continue this battle? >> until he -- >> it was the end of 2012 when he made that first presentation. >> look you can destroy companies. there's no -- i mean it's interesting, asking first amendment, there's no protection. you can say whatever you want right? you can say whatever you want. if he believes it's true he can say whatever he wants. if herbalife felt where's the interference lawsuit? he's got lawyers saying it's fine help wants the company out of business. can you wipe out a company? companies come and go. it's not the justice department or arthur andersen.

if he guider decide decides to watch out herbalife, he can. >> i don't know if he can. >> he's a rich person why can he take down a company. >> it's got resources of its own. a shot to fight back against the allegations. >> i'm saying -- >> by the way, it hasn't worked yet. >> anyone can win, either one can win. >> he hasn't put them out of business the way he said they will because it's a pyramid scheme but up on the investment. >> reiterated the point of the business model again this morning. >> i find it painle. when a guy who is short of saying he's doing great work for, you know, put a lot of people out of business but i do think that he has a case because there hasn't been a single lawyer coming on our networks saying he can't do this. they've got, what saying he can, fine? they've got some guy used to work at s.e.c. he can, fine to me it's a destruction of a company. it's a free country. >> do you have you -- lumber liquidators, we'll hear from tom

sullivan today on "the half" using the media. this has been go on for years. >> i don't think it's right. but the government's not saying it's wrong. who am i? jim cramer says you can't wipe out herbalife. i'm nobody. the government, if they don't like it they can stop it. if the government wants to stop herbalife, they can stop it. >> you can't stop free speech. >> you can't. >> free speech. as long as he thinks herbalife is a crooked scheme he can shout it from the rooftops. i mean i would have -- if i were herbalife i would have sued for tortious interference of the business. you can do whatever you want. >> one of most interesting thing his brought up this in morning the idea mr. johnson has not been seen or heard from for some time because he claims ackman, that johnson misrent represented himself. >> he said that -- he said i think the board might have told him to shut up. there's a lot of aspersions being cast here on both sides.

and this may be let's the worst man win. >> nice not to have to mention it for a long time. >> lumber liquidators used to be the key to the market by the way. >> we'll get to ulta in a little bit. cramer received ten-year anniversary gift last night on "mad money" courtesy of a surprise phone call from apple's tim cook. you've got to hear pieces of this. an interview with twitter's co-owner. biz stone. more "squawk on the street" in a moment. t's spontaneous, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess.

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let's take a call. tim in california. tim? >> jim, aim calling from cupertino, california to be exact. this is tim cook at apple and i want to congratulate you on ten great years of "mad money." >> apple's ceo tim cook surprising cramer by calling into last night's "mad money" tenth anniversary show. talked about all kinds of things including prospects for the company's research kit. take a listen to this. >> caller: in the first 24 hours of research we've had 11,000 people sign up for a study in cardiovascular disease through stanford's app. to put that in perspective, stanford told us it would have taken normally 50 medical centers an entire year to sign up that many participants. this is research kit is an

absolute game changer. >> i think that this is the most -- but people don't understand why you absolutely have to have this device which is why -- i can't wait until it comes out. i'm focused on the fact your product for retail without apple pay by far the best i'm have to believe given the banks, visa mastercard, it's realistic to believe at that customers will demand it from every major retailer all over the world. do you think i'm right? >> i totally think you're right of lap . last year you said it would take the country by storm and we're doing it. we've got 700 locations accepting apple pay. we want to add your bar san miguel to the list. >> done! >> if you do that, i'm joining you there for different. >> you are too much! tim, i've got to ask you, tim, we always they're the company is so big, whatever i mean i think -- i look at your company and i think it's not that

expensive, you've got best balance sheet in the world, country, company, it doesn't matter. you know my mantra people should own apple, not trade it. do you think that eventually people will understand what i'm talking about? >> i think eventually they will yes. i mean you know for people that have owned the stock for ten years or so our stock price ten years ago when you started "mad money" was less than $6 on a split adjusted basis. and so you can bet those people are extremely happy right now. >> well everyone's thrilled with what you've done. when you come to work every day, i know you come in hungry. the competition, are you feeling like you've left it behind or every day do you say someone's might have a better mousetrap? >> we're always paranoid. we want the very best product. if we're not beating somebody else we're trying to beat the thing that we have currently shipping. everybody here lives on edge.

>> well, do you think that -- people worried about the world, europe currency are we -- are those the kind of things that wall street worries about and if you're at home watching own 100 shares of apple you should be thinking tim cook and the team are ready for pretty much anything that the world might throw at us? >> currency's clearly a problem but, frankly, the best companies will figure out a way to manage it. >> and i regard your company with the highest ideals and the greatest manufacturing. i know every day when you come to work i feel you must think that you have a stewardship that you've got to fulfill because of steve jobs. i want you to know you have far exceeded whatever anyone could have done but you still walk in his footsteps. how do you feel about the legacy? >> you know, there's not a day that goes by that i don't think about steve. he is still the core part of apple, his dna is deep in the

company. his office is still next to mine with and his name on the door. and values that he placed in here and sort of the sprt that we are here to make the very best products in the world that enrich people's lives, that is still the centerpiece of this company. >> wow. >> wow. >> i know. >> you did not -- you did not know that was coming? >> no the executive producer hid it from me. the whole way. she said take a phone call? why would i do that. tim from california. tim. i do feel honored that he called okay. it's out there, i feel honored. a big takeaway the fda will love what he's doing with that stanford health kit. he want the biggest tests, the most -- by the way -- >> a couple of the doctors on who have been -- >> you asked whether cancer detection is in the future, he said yes. >> they've got something. the stock is up more under tim

cook than it had -- did under steve jobs. >> is that right? >> yeah. kevin told me that last night. >> of course you did great. it's nice to be prepared but you did well. >> i did not know. i was embarrassed. >> you can see the wheels turning. i've got this gift. >> i sent a note to the people at apple saying i'm sorry i wasn't ready. i mean you have tim cook you want to ask him great questions. brian sullivan told me someone from the staff told me -- the show, i'm trying to remember which guy -- if you add up the timms, what's interesting, tim said these products are his. >> yes. >> these are his. he didn't put it like that he wasn't being huberous. he has no hubris none. >> total humility humble man. >> you told him, he's the best we have you said maybe one of the best we ever had. >> look i think that this is -- this is a company that has not

skipped a beat, which is not supposed to happen. created morewellwealth. the apple pay, he is confirming everybody's going to have to have it. that's something that the retailers did not think. i know a very large retail that told me don't worry, we're not going to go for it. i told him, i said do you really think it's up to you? it's not up to you. it's up to the customer. the customer wants it. >> after that regeneron, chipotle, pepsi, boeing sherman, iger what a week. >> we have -- again, our team led by regina fabulous booker. nothing to do with me i'm book two of the guests i booked two of them. but we have people people should know this at home people who do nothing but work 24/7 to get you these guests. it's not like hey, come on no these -- to get tim cook to call in to get him to mention bar

san miguel. >> sounds like you've got -- >> you do the apple pay have that dinner carl and i will come. >> i'll invite you. you have to have the $12 margarita. >> we'll bus the tables. cramer's "madagascar"mad dash. february the 13th. back in a moment. 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.

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bell for the last day of trading. ulta's where you want to start? >> i feel like it's 1999 and i'm back with you, at "squawk" because you ask me what stocks i'm watching. ulta one since mary dylan came in, a great consumer products manager, red hot. they had the blowout, 7 for 9. 7 for 9. nine analysts on the call seven said congratulations. >> seven. >> 7 for 9, the highest ratio of the most important ratio. congratulations, congratulations, congratulations. >> yep. >> i remember those days? >> yes. >> they're back. it's ulta. and they're doing it with 11% comps. i mean, amazing. they are the great american paradigm for retail. >> 11% comp store sales. >> no just -- >> how are they doing that? what's behind that. >> they've got e-commerce great loyalty campaign tremendous word of mouth, great salon in the back doing a lot of

conversion once they get them into the salon, buying other products. other products like selfphora. mary was a great manager. had to clean up the house. she has got -- i've got to talk about this tonight, i was blown away by the call. it really was, it was a great call. you know the two analyst whose didn't say congratulations, i'm finished with them. actually one is from goldman. >> next? >> this is really important, david. if you do 7% on the comps, that's the magic number i don't know if you saw the shake story yesterday, shack, shack was up. i'm not kidding. 7%. >> shack up yesterday? >> shake shack finishes up. >> it's not a lot of liquidity in the stock. >> no. josh brown said it was really good. it went from 44 to 48. but this is the same thing. they do the 7%.

that's the number where the growth guys say, i feel great, i'm going to buy it. el pollo loco had a very good number, stock used to be higher. it is that kind of mexican chicken, which is quite good, el pollo loco. frgi, i prefer that i prefer to el pollo loco. i know you prefer -- >> i prefer it with antibiotics. >> chipotle said listen we are glad they're doing that at mcdonald's. >> opening bell for this friday a few minutes away. stay with us on "squawk on the street."

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and tears in my eyes. and so many little things that we learned were really the biggest things. through it all, we saved and had a retirement plan. and someone who listened and helped us along the way. because we always knew that someday the future would be the present. every someday needs a plan. talk with us about your retirement today. you're watching cnbc's "squawk on the street" live from the financial capital of the world on this friday. opening bell in 40 seconds or so. other one of the nutty days around the world, whether oil, turkish lira russia cutting rates. >> japan comes back online wouldn't that be something? remember when the ruble's falling apart. >> japan's not coming back online. >> you don't think so? >> 500,000 fewer people every year. the issue is a demographic issue, period.

>> it shows you what a central bank can do 15-year high on the nikkei as it cracks 19,000. >> ireland. they've got a ten year. tremendous growth after austerity. >> that is the opening bell. here at the big board, the fifth annual ireland day, as jim says nyse. irish business leaders encouraging investment in the emerald isle. at the nasdaq towers watson and company. you mentioned we all talked about the intel warning about this time yesterday. you know maybe pc expectations are reasonable, even beatable. >> i thought that was an interesting piece i like the guy that's got a hold and everybody else likes it and he's the guy you want to go to. i think the worst is in the stock may be true it's just that i feel like you need a catalyst. bernstein says don't cover your

short yet. i don't want to be short intel. intel needs something to make it so we feel better and i want to wait for the microsoft shoe to fall. i believe microsoft can't make their numbers, that's my worry. >> and that's largely on what? >> because the product didn't sell. the product's not that good. i thought that microsoft would do something internal activists the way nelson peltz was speaking yesterday about ellen kullman, i thought there was internal activism the microsoft. it seems to have gotten quiet. >> idc out with their expectations for pc sales, down 4.9. >> this is something. i think that the pc you're listening to tim cook, you know that everything's -- they have one pc that's selling, by the way. people are buying that pound pc that white pc they have. remember, these pcs could put men on the moon. they're not putting anyone on the moon. i don't want to go to the moon. >> with oil what it's doing,

back in the high 40s, once again, it's delta's popping again right after a long stretch of pain. >> speaking to jim mcnerney yesterday from boeing he says they're flush. they add planes when they add planes it's profitable. literally they can help themselves. buy a new plane, planes are all full, it is a great story. boeing's a great story. i asked jim mcnerney, is he worried about the political, whether europe's subsidizing, he said no when you ask a ceo, you say, no i don't think. no. i said aren't you worried they're going -- no we're going to win. an article today, look they're a great manufacturer and they're winning. period. end of story. winning. >> right. >> and ann taylor surprise profit, comps up 1.9, guidance in line. >> yes, i've been waiting for some apparel companies to do better. i -- ann is rumors to be lbo.

children's activist we own little stock, talking about sycamore comes in, talking about sick come more. they've been successful. >> private equity. >> but ann was rumored, maybe it pulls it out itself done need anybody. >> valeant shares are up today, we heard bill ackman earlier talking about herbalife but was asked, he owns 5% of valeant, and went on a long answer about all of the reasons why those looking at salix and buying salix at this price may end up being wrong because of the price discipline of valeant. he didn't bring up the drug approval date from the fda on the important indication or ibs, the fact that endo shareholder vote might take place after. i wanted to mention it valeant's up for the first time i've seen in a bit. still moving ahead with huge bond offering $9.6 billion. they were off in europe when this happened getting marketing -- what is going to be

a very large high yield debt offering. don't have terms yet. but we're expecting to get them soon. they're moving ahead with that of course to help fund the all-cash deal to acquire salix at $158 a share. a deal as i've said could close as soon as april 1st, but unlike mr. ackman my expectation would be that they may be forced to raise a bit and may be willing to though they have showed discipline. >> he said no but again -- >> they've lost self lac. cephalon. >> car mikes working on a potential sale. that's a stock. we know what box office chains have done. >> cinemark good. it's always been the candy. it's always the candy. they kill. they kill it. go to cvs, try to sneak in your

jacket. i felt dishonested. >> cheapened by sneaking canny into the movie theater. >> it's not right. >> i like the amc, sit way back. >> don't you love that? >> roux get relaxes. >> i'll let you know how cinderella was on monday. >> that's very important. bob iger talked -- >> did you see that presentation, lass ter coming out, "frozen." >> i'll be catching that. 9 years old, we'll catch that. >> you -- culturally you may have to go to be part of the culture. >> i loved the first "frozen" production budget $150 million. worldwide box office 1.3 billion, and that's not counting merchandise. >> grou getif you get that business right and they get it right. "star wars"," they have a tight rollout of "star wars." you can raise numbers i'm raising numbers disney that's what happened. you can take out the 2016

number, 2017 number. they just are -- bob iger's doing a fabulous job. >> yeah. >> can print money when you get it right in that business. >> one day you're able to take your apple watch, go through the lines. >> getting a piece of the whole apple thing. i mean -- >> my guess is jim's going to get a watch before we do. >> now that i know there's possibility that you can hook up with this stanford study and they get the cardiology right, it's not -- it's not a -- it's not a watch. it's the -- it's the device that you just hook up with your doctor, period. 500 million cell phones, 500 million watches. not first, not yet. over time. >> sure sure. >> over time. right. then it gets hacked and then your insurance company knows you've got a heart murmur and disown you. no, i'm kidding. >> only you could be -- >> last night at the speech i said, don't be cynical.

>> i know. >> i said the man is good. >> not being incynical. >> skeptical. that's your nature. >> stop. nelson peltz yesterday to david, will you stop. >> stop. >> dow's down 90 points chevron the worst performing component, let's get to bob on the floor. good morning. >> good morning. weaker open all ten s&p sectors to the downside. but utilities and telecom, interest rates sensitive leading on the downside. energy weak. take a look at s&p 500. choppy trading this week up month, down big tuesday, up big on thursday. it's all translated into simply just fractional declines in the major indidces for the week. if you look at crude for the week, one thing i find very important is crude's down rather notably for the week. west texas, 7% decline for the week yet the stock market is not

smacked around by oil as it used to be. now the energy sector is down. look at xle, the energy etf. that's down about 2%. it's not bringing rest of the market down. i view that as a very important divergence. remember if this would have been a month ago, markets would have been down overall markets have been down more. i'm troubled by the earnings outlook. intel's lowering revenue guidance is causing the earnings situation for the tech stocks to come down. that's impacting the s&p 500 earnings. you can see numbers keep coming down q1 down 4.9% down for q2 as well. this would be the first negative quarter since the first quarter of 2009. excuse me third quarter of 2009. 2015 talking about 2% gains here. also speaking of revenues michael roarke and others pointed out intel's going nowhere for years and years. look at number for total revenues. lowered it for 2015 down to 12.8 yesterday. 2011 12.8 12.6 12.8 now 12.8

again. another year of virtually no revenue gainsen intel's the not the only problem. this is a consistent problem with big companies. no revenue gains at all. i'm just using intel as an example. there are many others that i could be bringing up right now. let's move on here. world markets this week we may be slightly down elsewhere. there's tech, i want to show you, intel, seagate, western digital, down yesterday. down fractionally today. world markets, very important week here. look at this germany, up almost 2% near historic highs. italy at historic high. japan, you guys were talking about that 15-year high. china near 2008 highs, up 4% this week. so, the real action is occurring outside the united states in terms of price gains. finally, want to note on the retails, some good news bad

news. aeropostale had a wider than expected loss mall traffic, the forecast is disappointing. so aeropostale is on the downside. a couple of other names on the upside. ann taylor had a decent number. and ulta salon, fantastic number, excellent same-store sales. both of those stocks ulta and ann, trading to the upside now. dow's down 65 points coming off the lows. back to you. >> thanks a lot. bob pisani. over to the bond pits. rick santelli at the cme. good morning, rick. >> good morning, carl. we all know that the data on inflation probably was not offense but defense, probably deflation might be the word people would use. but remember as many writers and bloggers have put out the new reconstituted inflation data including services i tell you, traders don't have a good gps for. you're seeing x this x that.

but the market's the best definer. if you look at intraday of tens when i reported that number we were at 2.11 we traded down to 2.09. now at 2.12. 5s, 7s, 2s, unchanged. tens down a dozen basis points on the week, however. we just traded 2.13 we're up on the session. one month chart reveals after that spike where we said a whisker under 2.25 we have been in a tight range weep don't seem to get the buying horsepower when we see things like week data or disinflationary/deflationary data. maybe we'll get more answers. look at three charts on bunds. 24-hour chart. they kind of paid attention more to the upside after the 8:30 number. a two-day chart, we're congesting, not high yields but higher yields and one-month chart shows you, yes, sub 2.20

close, didn't last long. a bigger drift to the lower downside. best way to look at this early warning. maybe our quote/unquote dash idiot light. who knows? if you look at one-month chart of the spread which hit 1.90 quarter century plus a year, it's turning a bit. traders pay attention to it that. maybe it's a clue. if that narrows, most likely it will narrow because our interest rates move down or theirs move up. if we look at foreign exchange to day of the euro versus dollar nothing great here but there is stability. it's like a mini oil consolidation type trade going on. but maybe the best way to look at this is the comparison chart. one month comparison chart, euro versus dollar one line and the other line is the s&p 500. you can see, this is what traders look at. first question i get asked when people see me in the morning, euro up or down? they run in the equities do the same trade. one other point we want to make the auctions this week 58

billion in supply 3s and 10s terrific. 30s not so much. i wouldn't read a lot into that. traders on one side think there's a scarcity issue. on the other side if equities go down we'll see the scarcity issue exaggerated. here we sit above 2% for most of the closes in the last couple of weeks. >> rick santelli. wean we when we come back, social media landscape. a live interview with twitter's co-founder biz stone. break even for the s&p for the week, 2071. we're 11 points shy of that. back in a moment.

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quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance. recently a very large international fast food chain said they're going to not use antibiotics in chicken. what happens if people catch on? if they all do and you go farm to table, there won't be enough cheap, inexpensive beef in the world to serve at chipotle. >> i know when you're talking about and i hope they follow

through. we're hoping many restaurants start to copy what we're doing, use higher quality raw ingredients. >> monty moran talking to jim on "mad money." interesting what a lot of the restaurants are facing in terms food costs. >> yes. the prevailing moments here is that if everybody did go natural and organic, the cost would be up. yet, these guys are for real. monty moran's for real. they believe, they want mcdonald's to go healthy. even though maybe it will cost everybody more that's what they're ethos is. it's surprising when you deal with a management that is not threatened because they said we're way ahead of these guys but people should eat more elt healthier. >> mcdonald's on chicken, right? burger king taking soda off of kids' menus. duncan taking titanium oxide out of the powdered sugar. >> one of the things i love about monty, millennials won't

eat the bad stuff. general mills put up for sale. they're not like us my age. we were served this stuff. del monte fruit cocktail tang. i don't think tang sells well. something they put on the moon. we had the tang. >> i grew up on hawaiian punch. >> i don't think it had 5% real fruit juice. >> really? i mean we're in a period where these -- they're not going to buy it. the dogs won't it. the next generation is looking, it's interesting, because there are a lot of calories in a burrito. i had a chipotle burrito yesterday, it's delicious. >> that's the shake shack debate. people write, it's not healthy but there's healthy and fresh, right? >> very important. i think that portion control is on you. >> yeah. >> you don't have to eat the whole burrito. >> spend more of your disposable

income on food. that has come down if you look at big trend over time. but it will be interesting to see if there's a willingness to do this that because it's going to cost more. >> is mcdonald's going farm to table, david? >> no. >> there's not enough farms, way too many tables. >> people want to drive up and just get their burgers. >> yeah. >> plenty. >> i know. look they're delicious. >> the farm or the table, just looking for the window. >> they though what we are -- our taste buds that's what's interesting about chipotle they have a vegetarian. and taste buds are liking it. they're an amazing company. it's the people it's through put, the fact that 90% of managers from being cruise staff. it's amazing company. it's a great american company, truly is. i think it will take the world by storm but they're not going to do it until the food chain is good enough. they pulled -- the pigs were mistreated. those carnitas darn good.

>> pulled it out. >> we'll get "stop trading" with jim in a moment. off the lows here dow's down 49. 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 and drive forward with broader possibilities. cme group: how the world advances.

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time for cramer and "stop trading." >> people buzzing about the biogen data march 20th on alzheimer's. this weekend regeneron, said this could be a one of breakout cholesterol news. a pill that i believe might be a one a day pill for people who -- for bad cholesterol. and i want to see that data. i know meg tirrell's all over. regeneron's having a breakout here. >> there's a one a day pill for cholesterol. it's called tolerate nevercor. >> if they don't work. millions of people they don't work, david, and this might be the answer. >> have we proved in fact it is important to have cholesterol down? >> they felt that in the 80s,

they didn't think it was. in the 90s it was. bad cholesterol is bad. >> it's bad. >> bad is bad. you know what i mean? >> high ldl -- >> i don't know. check your watch. check your watch. what does your watch say? >> i don't have a watch. >> you don't have an apple watch. >> waiting for that one to pass over to me. >> i'm passing it over to you. >> passover. moses will decree it. >> jim, 46 and change on crude you still think 42. >> i think 42 holds. relying on rich kinder who is so much better than i am, knows so much has the national pipeline, feels that's the level that seems unrealistically there's demand at that level, the way i put it. >> look back at week the retail sales obviously, ppi, not good. look at what net worth, u.s. households did last year. up 2% from october to december 83 trillion. >> the balance sheet of

americans is best i've ever seen. ability to borrow starting to get easier. and it's a shame that we really have to focus on all of the currency stuff but that's what we have to look at because that's determining our stocks much more than how the consumer's doing. i think the consumer should be determining and that's why there will come a moment and say i want to buy these ten retailer and restaurants and forget about the flows. >> penalizing savers in the country. they get excited about 2. 2%, but the fact is you try to figure out some sort of -- maybe not fixed income trying to generate income out of luck. >> they bought the petrobras bonds, the firms that we know about. >> how are you going to top this week tonight? >> we have mark benioff, first introduced me to social mobile cloud and cognnectconnective. connected home car, connected body i want to talk about him with.

mark's a visionary. liking the stock for -- he's taught me so much. you have 0 say someone's teaching you. he's been a great teacher. >> as you are to so many of us jim congratulations on a good week. >> thank you for everything you've done. thank you. >> jim cramer "mad money," 6:00 p.m. eastern. breaking news, consumer sentiment at the top of the hour. twitter co-founder biz stone in a moment.

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♪ ♪ good friday morning. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen, simon hobbs, david faber. stocks struggling to break even for the week. dow jones industrial average at 17,808. we've got goldman saying the dollar could rise another 20% over the next couple of years. oil, at its lowest level since january. >> let's get to the road map for the morning. disney coming off a new all-time high announces sequel to megapopular movie "frozen." where the stock goes from here. >> also ahead, charles schwab getting into the robo investing space, previously dom nated by start-ups.

how do the start-ups feel about the big, new competition. the ceo of betteman will join us live. >> the new york city fc playing its first home game at yankee stadium. tickets in high demand but the event without some controversy. we'll talk to the president about all of it. >> first, rick santelli with breaking fuss on consumer sentiment. >> here we go. this is march, the preliminary, february's final was 95.4. we're looking for a number but disappointed. 91.2 is our march preliminary university of michigan sentiment. some context. 98.1 our final read in january. boy, that was like the best read going back to january of '04. so that's a biggie. let's go through some of the internals. everybody likes this of course. current conditions, last time 88. this time 83. -- sorry, 103 versus 106.9.

en flation, after the ppi number i don't know if that's relevant but the sensitivity to inflation one year out in the survey 3% versus 2.8. last look on five-year perspective 2.8 versus last look at 2.7. market steady in treasuries, as to where it was at 2.13 down nine on the week. equity markets continuing to be under pressure. carl and the ganging back to you. >> rick how would you sum up the reaction to the negative producer price index print minus 0.5? >> ex-services, ex-energy, i'll be frank, traders cannot get a good feel for the new and reconstituted number. didn't have a reaction. weak retail sales have more of a reaction than today's soft ppi. the major averages in the red, s&p and dow on track for their third straight week of losses. energy a big laggard as oil

heads for a weekly loss of 6% after the eia raised its production forecast for this year. and cut its outlook for next. joining us julian emmanuel strategist. steven wood also with us from russell investments, chief market strategist. good morning. >> good morning. >> you know i'm pleased that the ppi's come in negative because it highlights what will be a major factor in the summer. we're likely to have negative inflation print according to deutsche bank in june just as the fed is potentially raising interest rates. how should we analyze that? >> complicates matters immensely. we know that the whole notion of negative interest rates around the globe is another part of complications. but the fact is is that the fed does seem to be committed towards starting this normalization cycle, whether it's a consequence of having more ammunition for future easing or because the economy's is, as ubs believes, going to

grow between 2.5% and 3% and the employment picture's so bright. but it makes things difficult. >> do you think the fed will have the guts to pull the trigger on interest rate rise when inflation is negative and core inflation looks pretty measly for the next year as well? >> i think they will. i think that dr. yellen has been very clear he's an architect of forward guidance. they did what they said they would last fall in terms of ending qe program. they're committed third quarter, september a reasonable expectation, because hethey want to be on a policy path they believe deflation is, by and large, something they've been able to address and i agree with the againle man from ubs, desirous to get the fed funds policy back in their tool kit. i think they're going to stick with their path and they want to be in a normalized monetary policy environment. >> julian let me pick out the

point you made about the underlying strength. if produzer prices are falling, input prices are falling, import prices are falling and oil's falling, presumably a lot of manufacturers have huge pricing power at the moment, at a time where they're refinancing zero rates in europe in a euro that's crumble, so principal is falling. >> it is metalsome situation. part of the reason we prefer in this rising dollar environment companies that have more revenue from domestic sources. >> so how do you, steven, tune out the noise of the falling price of oil and the rising price of the u.s. dollar if you're an equity investor? does it have to change your thesis, sharp, fast moves in the commodity and currency. >> the same thing in many ways. so, what i do i try to make things as simple as i company i look at what dr. yellen's going to do what's happening in the european central bank.

this is a central bankers' world and we need to adjust accordingly. given the environment of growth and a rising rate environment in the u.s. take our exposure to the u.s. down to more of a neutral, and we've been looking for a couple of quarters in tunes in europe in that we were expecting in response to the languishing economy the european central bank was going to have to get aggressive with money printing qe scheme and we've seen than investors need to be globally die ves lyly die vestee fied. stay on your toes. active management will account for more, efficient trading. this is a challenging environment but it is possible, i think, to generate return. >> a lot of people will be scared at the notion they have to stay on their toes when things are moving fast. should you buy european equities? but the euro's crumbling. >> the euro's crumbling. it is the weakness of the euro

adding to growth prospects both at the europe level. so a u.s. dollar-based investor would have a different view than a euro-domiciled investor or sterling investor. i think we need to take great care to look at the fundamental research, the investment opportunities and then address currency aspects then go to together but we should take great care to understand what both components provide to portfolio. you're right i think a currency hedged, where position right now makes a lot of sense, i think beginning in the united states. >> some people might have a problem with what you said about active managers considering 86er. of active large cap fund manager couldn't beat their benchmark last year 89% over the last five years. >> that's something russell has been doing for a goneration trying to fine active managers where over an entire business cycle they can add value to portfolio. but as we move with large

swings at inflection points marks swing rapidly. going through name by name balance sheet by balance sheet, income statement by this statement in this environment will count for more and can add over an extended period of time to that return. >> we're out of time. one quick comment, lastly from you. >> we like companies that have cash. the environment is more volatile technology and health care have decent earnings moan tum momentum. that dampens volatility. >> thank you. there's a big surprise during last night's "mad money" tenth anniversary show. take a listen to this. let's take a call go to tim in california. tim? >> caller: jim i'm calling from cupertino, california, to be exact. this is tim cook at apple and i want to congratulate you on ten great years of "mad money." >> wow! >> how that was apple ceo tim cook calling in as a surprise

guest for cramer discusses all things apple from the research kit to how they handle competition. >> caller: in the first 24 hours of research kit, we've had 11,000 people sign up for a study in cardiovascular disease through stanford university's app. and to put that in perspective, stanford has told us it would have taken normally 50 medical centers an entire year to sign up that many participants. this is research kit is an absolute game changer. >> i think that this is the most -- people don't understand why you absolutely have to have this device which is why i can't -- i can't wait until it comes out. the competition, are you feeling like that you've kind of left it behind or every day do you say, someone might have a better mousetrap? >> caller: always paranoid. we always want the very best product. so if we're not beating someone else we're trying to beat thing that we have currently shipping. >> do you --

>> caller: everybody here lives on edge. >> interesting. told jim steve jobs' office is next to him and his name is still on the door. >> still on the door. that was surprising. my favorite part of the interview, jim brought up global concerns rattling markets and companies now. and here's the best quote from tim cook. every ceo should think about this, currency's clearly a problem but frankly the best companies figure out a way to manage it which we saw apple do with international exposure. something to keep in mind. that is the topic du jour. >> ten years since bob iger appointed ceo of disney. 106.23. up nearly 300%. now that the news it's expanding "star wars" franchise, plus the "frozen" sequel. find out what it means for the future of the stock. dow's down 132. financial noise

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good morning, welcome back to "squawk on the street." wll, shares of north dakota's largest oil producer plunging on reports of the company has put some of its assets up for sale as an alternative to selling its entire business to somebody. that according to a report in reuters citing sources that recent 3.8 billion acquisition

of kodiak oil and gas left whiting in debt and falling oil prices putting pressure on the financials. parents, get ready, "frozen" ii coming to theaters, disney announcing the sequel at the annual shareholder meeting and planning to expand the "star wars" franchise. julia boorstin. >> good morning. those announcements that sent disney shares to all-time high are more than just movies. "frozen" sequel and three "star wars" films epitomizes the strategy of building or buying brands to exploit across disney movies, tv consumer projects, digital products and theme parks. since appointed ceo ten years ago, today shares have more than tripled. we'll see power of disney's brans this weekend. boosted by a "frozen" short that runs ahead of it "cinderella" expected to gross $60 million at u.s. box office. to match maleficent's $75

million gross worldwide last year. but far more profitable it costs half as much to make. disney has a packed movie schedule with 11 marvel films, 2 pixar films this year alone. iger has big challenges before he leaves hess post in 2018. as the way people watch and pay for content changes and disney's chunk of revenue comes from tv networks tied into the tv bundle. to stay ahead of the threat of cord cut, he's offering espn as part of over the top streaming service sling tv. acquisition maker studios is a move to better serve the short form content in high demand and market disney content to younger audiences. iger says he's careful not to disrupt disney's core business while experimenting to position the company for the future. contend rules in the magic kingdom but in coming years distributed in increasingly nontraditional ways.

sara? >> thank you, julia boorstin for running us through highlights. let's talk tonight an analyst. stunning stock performance from disney. senior media analyst at rosenblatt securities joins us. you've got a buy, 115 target less than 10 to get to your target for disney. i think the "frozen 2" announcement the biggie considering what a block buster in 2013. can they replicate the performance not just at the box office but also billions of merchandise that followed? there i think they can. you know, i think one of the thing to keep in mind with disney that's unique among the film studios they've got revenue visibility because of the staggered and staged rollouts. "frozen," "star wars," more marvel films with captain america, the avengers ii coming out. you don't have box office, it's volatile up and down. they have a multi year

visibility. merchandising, i think disney's done a great job of social media marketing. already selling a lot of avengers ii merchandise two months before the film comes out. >> speaking of merchandise, the $4500 sparkly shoes coming out in honor of "cinderella" and doing an estee lauder mac cosmetic line. is this a different audience catering to the grown-up princess crowd instead of what they've done with "frozen"? is that going to work? >> they did some presale of some of the merchandise you mentioned related to "cinderella" which the movie opens this weekend and sold out online first 24 48 hours. that was probably a bit of pos posturing to build the buzz. disney, along with the other studios, but they've done a better job, has picked and chosen very few films relative to the traditional way the business has been run.

"cinderella "a rebirth, "frozen" a surprise how big for the first version of it. but all of the things are on all cylinders right now. >> the word on the tenth anniversary of bob iger leading disney. during that period of time the stock has risen four times faster than the s&p. does bob iger paid $44 million a year have a midas touch we should be worried about him leaving? is there a steve jobs effect here or will the franchises simply carry on? >> i think it's a good question to raise because he's going to be gone in a couple of years. if you look at three major components of disney espn was autopilot when he came in but he continued to drive the ship on that. he's actually reagain rated the parks gis from a margin standpoint. my magic plus that was kind of in neutral if you will for a while, obviously shanghai's going to be big. i think he's staying around until 2018 to make sure that opens and does well. a lot of lieutenants will make

sure that's a success. and the film business has come back from being in a stagnant mode. >> the coo, is he the front runner to replace bob iger? >> i personally think he is. that's my opinion. nobody has said that. there's nothing official obviously out there. he was formerly cfo at disney. i think he's done the rotation coo now, he ran parks for two three years. >> thomas staggs. >> that's my bet. >> if there's a weak spot where is it? is it in cable? is it in advertising revenue? is it in sports acquisition costs, what? >> the only sore spot i won't say an open wound, is on cable. i refer to cable. cable is stable. for disney talking about programming 3/4 of the profit of the cable segment is espn. i think espn no deardeterioration.

i think margins will be stable in the low 40% range. the upside in the stock will come from parks and film and merchandising with a stable espn along the way. hard to say that's a sore spot but it's the only part not growing. >> julia mentioned the structural changes when it comes to paid tv and bundling. martin, thank you for joining us here. what do you think this weekend "cinderella" or "the royal"? >> i think "cinderella." >> really. >> maybe. >> next charles schwab raising eyebrow eyebrows, getting in a space dominated by tech start-ups, robo investing, move taking aim at companies. the founder and ceo will join us live at post 9 to talk about the any competition after this break.

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advertising than might be a good thing. a report found that 86% of active managers trails the s&p 500 in 2014. 86%. joining us in post 9, jon stein, found somewhere ceo of betterment which announced close of another $60 million round of funding. welcome. >> great to be back. >> is this -- i mean too late for a lot of people right, those who chose avg managers? >> it is too late. schwab entering the space is great validation of what we've been saying for years. we created this space to help people manage their money, grow and protect it better and schwab entering says hey, they're on to something. i've heard from people an the top of schwab they're concerned they may be too late to the game. >> explain to those what you get, how hard it is to get true interaction, true advice. >> for us, betterment customers come to us most often at the recommendation of a friend or family member, and they tell us about their goals, it can be retirement saving for a

downpayment on a house. based on goals we create portfolios and manage them over time to make sure that they stay on track to those goals. if you're wondering, am i on track to retirement? we'll tell you and make sure you stay on track. >> i'm surprises what you said about schwab they're bigger they have more clients and charge lower fees and commissions than you can. aren't you worried about the bigger guy coming to your space that you're trying to disrupt. >> we charge no commissions, we charge a transparent advisory fee. the thing about what schwab is doing they're concealing a lot of fees in their product. they're putting people into a huge cash allocation on the platform which is bad for investors. and the way they've set it up isn't well aligned with investor interests. >> schwab isn't here to defend itself. they say they're not charging any management fees investors will only pay fees charged by the etf providers. but obviously, i mean it is changing the business model. say they're cross subsidizing in

other ways how are you able to charge in an environment where others appear not to be? >> in schwab's case the etf providers are schwab they're making money on etfs. >> that still -- >> charging higher fees for etfs than the etfs we use in our portfolio. >> it may be they undermine your business model in that way, surely. >> what is happening they're charging customers a lot more. i don't think it changes the business model. i think it's a sneaky business practice. >> are you a technology company? >> we're a technology company that happens to be in financial service. >> if i looked at what google might do in the future on google's dotcom finance i might find this engine if you're doing your prob properly job properly you're picking up -- >> we hear is apple going to get into your space? i think we're more and more successful, we're going to hear that kind of thing more. but those companies are not regulated entities, they're not brokered dealers.

they don't have all of that infrastructure that we have. >> do i need to have an investment adviser if it is pewpurely by the plans and stats? >> we have a fiduciary responsibility to our customer as betterment. human enactinaction is what we're talking about. if you want an individual adviser to give them individual attention. for many people who don't have enough to afford a traditional investment adviser they still need advice about goals retirement and savings and we provide that at the lowest cost and get them a better return. >> i'm thinking of all of the people who called into anything a ticket service, just pushed zero because they want to talk to a human person what about those people? >> those people can call us you don't have to push zero. you go straight through to a representative seven days a week, 365 days a year taking support calls. >> not all robots.

>> interesting space to watch. jon stein. a big move in the euro this week the story of the week. currency down more than 4%. unusual to see a currency move like that in a week getting closer and closer to parity one to one versus the dollar. is there more downside to come? we'll talk to a strategist, when we come back.

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now with the xfinity tv go app, you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. i'm sue herera and here's your cnbc news update. secretary of state john kerry

arrived in the sinai peninsula to attend an egyptian economic conference. kerry will meet with president abbas and jordan king abdullah later today. the united steel workers union reached a tentative deal on a four-year contract with royal/dutch shell. potentially ending a reevenry strike that has lasted a month. oscar pistorius' lawyers failed in their attempt to stop an appeal that will seek a murder conviction against the double amputee. that would call for a minimum sentence of 15 years in jail. pistorius is serving a five-year sentence for culpable homicide. toyota signed on in a deal worth $1 billion, becoming the first car company to join the ioc's top tier marketing program. the eight-year deal starts in 2017 and cover four olympic games. programming note for you, you don't want to police this

lumber liquidators' ceo tom sullivan live on fast money at noon eastern time here on cnbc. and that is your cnbc news update this hour. let's get back to sara. >> thank you, sue. the strong dollar has u.s. corporations facing a squeeze on overseas sales. here with more on what the dollar does next mike moran, senior currency strategist at standard charter bank. a 4% move for the euro in a week highly unusual. a seismic move more than 20% in 12 months. are we due for a short term bounce on the euro. >> if we see a bounce it's shallow, we've seen this before. we've had the start of the program this week. but you look at other qe countries like where the fed, boj, bank of england, we see a big currency movement prior to the actual commencement of the program itself. we do see some residual weakness after the program starts. i think that does dovetail i think further downside for the euro. and any bounce there's a lot of corporate hedging which hasn't

been done. they've been caught out over the course of the end of last year early this year. we've seen what the impact has on earnings and a lot of the guys, few have completed their hedging programs for the year. so that's -- >> you see a big euro sellers going forward to protect their earnings. >> if we see a bounce it will be a dollar risk rather than a euro risk. talking bunds, negative yields ten-year bunds not far from negative yields itself. for currencies yield differentials are so important. we look further out, the yield differential not looking good for the euro. >> how quickly can we get to parity? goldman says six months one to one. >> the next three months i think, certainly a key risk. i think there are strikes 103, 104, could see some of that added on over the next few weeks. that certainly, i think, a risk

going forward. >> because of the severity of the move currencies have taken center stage in the financial world right now. it's great. for me i talk about currencies every day. >> good for me too. >> good for you, too. we get to have you on. will that continue? there that be the driving force for markets for the rest of the year? >> i think currencies we've seen tremendous amount of volatility. the last couple of years, you know, we've been talking about how low volatility has been been you the last 6 to 12 months it's really picks up it's making trading -- well tough, if you lose money, but great in terms of those who have the position right. >> a lot of people the positions are one-sided on the euro. is it possible for a major currency to go into free-fall? >> absolutely. i think we've seen it -- >> could we get disorderly currencies like central banker have to step in and start talking? >> i think so. central bank activism on the rise over the last few months whether it's in the g-7, whether in emerging market asia. >> how long can the u.s. afford

to stay out of this? >> i think -- look the dollar's, what up 20 20%, on trade weighted basket. we see another 10%, 20%, that would be -- >> exactly what goldman sees through the end of 2017. >> that's going to apply so much, i think, a lot of pressure. and i think that is going to demand a response from all of the other central banks. we've seen that happening. but even more extreme -- >> we show the euro all the time because that's a clear story for people to understand. to the point that david keeps making, it's the emerging markets that i think their currencies have been battered down to a greater extent, and that's where the blowouts could be if they finance their debt clearly in dollars. i think they call them yankee bonds. how dangerous is that situation? what do we need to watch out for? >> that's something that we've highlighted at the beginning of the year in our year ahead report. >> has that done away?

>> no it hasn't. hasn't been enough focus. that's a recurring theme this year april tremendous amount of dollar issuance over the course of the last few years. so we focus perhaps too much on sovereign balance she'ses. we talk about how asian governments, balance sheets are bet but the it's trift secondprivate sector we have to look deeply at. talking about turkeys, brazils malaysia malaysia, privatesector debt has ballooned. >> a lack of hedging by corporations, i want to make sure i understood that had they not been hedging as much as they might have otherwise or hedges come off and find themselves in a volatile situation not sure what to do? >> they haven't been doing as much as they would have liked to have done. they tend to take a decision correction

discretionary approach. they're still looking, waiting for better levels to kind of lock in or take some of the risk away. but it's been moving away from them increasingly. it's been very difficult. and i think if we were to get another kind of big move lower in europe, it's going to force these guys to stop waiting, catch the falling life. >> you have to. >> do you think there are other central banks who would love to hike but need the fed to move first, and does that play into the fed's decision next week? >> i think there are a number of central banks, more in the em side who would like to hike. asia, we are seeing inflation fall disinflationary, in terms of tightening risk everybody not so much. latin america, inflation hasn't been falling to the same degree you've got the likes of brazil a lot of problems right now. they're continuing to hike. mexico's another one would like to hike the peso in particular sensitive to interest rate differentials.

they would like to move before the fed just to preempt them. i think mexico's another one we're looking at moving ahead of the fed. but does it impact the fed's own decision making? no i don't think so. i think they've got enough on their plate worrying whether to do it in june or september. >> top trade for the year? is it short euro. >> the positioning is stretched. we've talked about how much juice is left in some of the trades. i'm not sure it's the euro. look at other g-7 currencies sterling, some of currency which have more room to fall. the destruction in the commodity cycle, iron ore, there's more downside pressures and we'll see more volatility. >> central banks are cutting, too. >> yeah, i think so. more cuts from australians, new zealand, canadians all coming.

>> exciting times. mike moran, thanks for joining us at post 9. more controversy surrounding herbalife. the "wall street journal" stays federal prosecutors and the fbi are probing potential manipulation of the stock. kate kelly has details on the floor of the exchange. >> another twist in the battle between herbalife and bill ackman just last night, word that the fbi and prosecutors are investigating the matter is not in itself new. that was first reported last april and has been an ongoing inquiry. what was notable if "the journal" piece the idea the focus of the investigation shifted to ackman and his team's efforts to speak with regulators and leaders about herbalife and what they regard as its fraudulent practices. and whether those constituted attempts in any way to manipulate the stock to benefit pershing square's short bet. too early to say whether anybody in the probe is a target. the inquiryies start broud and narrow over time as facts emerge

that isn't the case here today. again from what i'm hearing. in an interview earlier this morning, ackman said while aware of certain contractors from a consulting firm he hired the global strategy group, the name interviewed by prosecutors, he was unworried about he or his firm him or his firm i should say, becoming criminal targets. >> we've done an enormous amount of research on the company, stan behind the work. by the way, herbalife has yet to dispute anything we've said other than putting out broad generalizations we have said false or misleading or fabricated things. >> he reiterated his firmly held belief herbalife is a pyramid scheme, and is happy to answer any other media questions because he has nothing to hide. >> kate thank you. kate kelly joining us here at the floor of the exchange. more than 5 million renters will buy homes this year. what does that mean for house prices. plus, on "squawk alley," in 20 minutes' time new report on ad

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♪ increasing number of renters are saying they plan to buy a home in the next year according to a brand-new survey. is there enough inventory for new buyers? diana olick live with the story. >> sara the short answer is no. city to city neighborhood to neighborhood the story's the same everywhere. spring demand coming out with the sunshine but these are few and far between. there's just nothing to buy. >> realistic house, realistic numbers is not much at all. >> along with the better market

more competition. what we look for was not there. >> more competition from move-up buyers and from renters, who have been dealing with sky-high rents that keep rising. more and more are hitting that tipping point, in fact, more than 12% of current renters in the 20 largest markets, that's 5. 2 million people say they plan to buy a home in the next year. that's according to a new zillow survey. that's 25% higher than the same survey zillow did a year ago. the trouble is they're facing rising home prices and a still-tight mortgage market there are brand-new low down payment options slow to start but which could really juice things this spring. >> by the time you roll the systems out and start getting sales attention and customer attention, we're only now beginning to see some flow of activity coming into it. >> the biggest problem, though continues to be supply. you can bet with the weather and much of the nation warmer this weekend, you will see crowds at

sunday open houses. a realtor in seattle told me he had almost 100 people through one us one day, and in boston even with the snow a real estate agent i just spoke to said she had her open house shut down by police because the cars were blocking traffic, well over 100 shoppers. she said in 31 years, she that's never seen anything like this. >> wow. diana, it comes back to the point we've made before. the house builders are not building entry-level homes on the scale they need to. they've gone for profitable bigger homes. that's the problem, isn't it? >> right. not even close to the demand. they need lower-en entry-level product but was see buyers on the higher end, folk whose don't have trouble getting mortgages, so building to the high-end customer and selling to the high-end customer. still building it below historical norms with the pent-up demand. >> fascinating situation. diana olick with latest on the housing market in d.c.

let's swap over to chicago for the santelli exchange. >> thanks simon. welcome our friday guest on this very lucky friday the 13th, mike mabbs. a pleasure. you have unique research. in the old days we used to look at traditional ms 1, 2, 3, they went out of vogue, they are hard to get a handle on. you came up wrt aith a way that's less variant but reflect what you believe to be accurate. quickly the reasons. >> two things, took out currency because it's printable. and second o. of all there was double counting between foreign deposits in the united states because they would take and invest in money market mutual funds instead of taking back to the sovereign state. >> over the last several years you show what the ms show if they were more published and people paid more attention to them that we're not seeing the expansion that we should in your opinion. can you tell me what that is and

why you think it is? >> well normally what we've seen, since the fed starting collecting the data in the late '50s, 7.5% increase in money supply or money stock, however you want to call it. what we've had in the past year is 3.5, we've also had 3.5 since 2008. we're 3.5 trillion short of where we should be. >> you know i look at the qe world we're live in 3.5 trillion seem to be magical. am i on to something here? >> no. in fact, it matches one within a few million. >> of. >> the shortage in monetary supply. >> what does? >> qe purchases. >> ah so this is kind of the qe purchase is about the same amount that you think were deficient. why? >> well, what happened, it should all work the fed was putting money out in the system by buying stuff from banks and -- >> so the money was there.

>>? >> exactly. except it went back to the banks, 2.5 trillion and they put it back in the fed. >> what you're saying is the reserves are kind of masking or putting in lockdown all of the issues that should be showing up in the expansion of the monetary base. all right. what happens when that money gets put to use, hopefully sooner rather than later? >> what we'll see is the economy getting fully back to norm and full growth. right now -- >> that money that is defish will come back in and show the numbers historically you should be with regard to money stock? >> exactly. right now we're backing off on the accelerator. >> here's the magic question. the magic question is i had yra harris on he said we need to get the central bank to let go of reserves are they need more grease in capital markets. you came to a similar conclusion. final thoughts. >> if i were janet yellen i'd dump 3.5 million in europe.

she's clean up her balance sheet and all of a sudden -- >> maybe that money will get to use other than buying stocks? >> here in the u.s. absolutely. >> stocks that go into something that's going to create and higher people instead of paper pushing. >> exactly. >> mike you're the man. back to you. >> thanks so much rick santelli. when we come back new york city's major league soccer team ready for their first home game this within at legendary yankee stadium. while the sport is surging in popularity with viewers, some of the yankees aren't happy about soccer taking over their turf. the president of new york city fc will join us live in a moment. 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, and all of a sudden, you can learn which bikes to build

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it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. . calling it soccer's big boom, record attendance and a new milestone for u.s. major league soccer. new york city fc had a draw in its inaugural game but will host their first home game sunday in none other than the house that ruth built, yankee stadium. will there be enough tickets for the fans and the players leave the jang ki turf in a stutsble

condition for baseball. delighted to welcome new york city fc president, tom glick. >> good morning. >> where are you on ticket sales and opening up more parts of the stadium? >> it's going really well. we've been fortunate. a week ago we opened up the 300 level and this week we opened up the 400 level. we're approaching 40,000 an amazing crowd. our normal setting is only 28,000 so people want to be a part of the game and it's great to see. >> why do you think it's so popular? >> soccer in the u.s. is booming. i think the mls attendance down in orlando, the ratings were double last year's average on our game down in orlando the other day. the world cup everybody looked at and that's been fantastic and has an element of patriotism but there's appointment viewing for european games and on saturday and sunday morning and now appointment viewing for friday nights and sunday nights for mls and this is the fastest growing sport in the country, so we're -- it's great to be a part of it.

>> so you think tv could be driving it here? >> i think tv is just one bit of evidence that people want to come to the events. the attendances are great and people also want to watch on television. >> i guess the question for the yankees at the moment is what state are you going to leave their turf in? are they able to regrow the grass in just three days which seems to be the idea here? >> well we're -- it actually will work very well. yankee stadium has had a number of games over the last five years, including big premier leagues, international games, so we know how to convert this back and forth. we have three daysen ot front and back end and it's actually just a portion of the pitch, the dirt or the skin in the infield that gets changed over each time. so we're ahead of schedule. >> the changeover is the concern i think for the baseball players because it doesn't have the roots and they could potentially slip and injure themselves. >> so we drop sod in and the sod comes out. the key is the seams between the dirt and grass. yankee stadium has an amazing

grounds crew we will take good care of it. i have a background in baseball before soccer. we're well under control and ahead of schedule for this sunday. it looks good. >> any chance for getting your own stadium in the new york city area. >> this is a part of our plan we will build a soccer specific stadium in the five bor ros. >> good luck making that happen. >> hard work, takes a bit of belief and persistence. we're working hard at it and a big part of the plan to have a new stadium. >> that's years down the road i would assume right? >> realistically what are we talking about? >> play for a few years at yankee stadium. we haven't put a date on it blgs but i think within a five-year window we expect to be in and opening a new building. >> what difference do you think frank will make when he comes from chelsea on july 1sst. >> frank is an amazing player world class, and he will be a great talisman for the club. we feel confident about the club we've assembled and we know we're going to be good and competitive. when he comes it will be an

additional boost in the summer for us. a good position for us to be in. >> we talk about the growth of the sport. anyone with young kids knows they play soccer. >> yes. >> i just wonder if what we're witnessing is the graduation of those kids who grew up playing every saturday now as paying adults interested in a major league sport, is that's what going on? >> that's what's happening. we've sold our 15,000 season tickets and our buyers are millennials, early 20s and 30s working. >> women. >> men and women, working in manhattan, living in manhattan, brooklyn, queens west chester, they have money and two out of three it's their very first affiliation, first season ticket. >> on the final score on sunday? >> oh, i would take 1-0, 2-1 3 points for new york city would be amigz. >> good to see you. tom glick, new york, city fc's. >> the soccer players are the most handsome. >> thank you. >> i would imagine white attract women. over to jon fortt with a look at what's coming up next on "squawk

alley." >> are you sure it's not tech reporters? maybe soccer players. coming up on "squawk alley," we have got twitter co-founder biz stone, first south by southwest talk innovation and social also new book about steve jobs coming out from a different perspective. we'll take a look at some of the early leaks about those insights examining up. the numbers on social you won't believe how much snapchat is able to get for its early discover ads and data on facebook, youtube and others coming up on "squawk alley." it's a fact. kind of like shopping hungry equals overshopping. e financial noise financial noise

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good friday morning. it is 11:00 a.m. -- actually 10:00 a.m. at south by southwest in austin texas, 11:00 a.m. on wall street, "squawk alley" is live. ♪ ♪