tesla's twitter feed and website were targeted by hackers, one tweet promised a free tesla to call a posted number, but the number to a voicemail greeting, and asked callers not to call back. >> an drun do it again tomorrow? >> we will. we'll move the chairs closer together "squawk on the street" is next. ♪ san francisco ♪ ♪ san francisco ♪ ♪ city by the bay ♪ ♪ san francisco ♪ we call it one market our new stewedous here in san francisco by the foot of the bay bridge, and a tame about our commitment to covering tech and innovation in this country. good monday morning, i'm carl quint nilla, along with jim cramer and david faber.

a look at futures today ahead of a big week a slew of earnings of course, oil slid a bit early today, then there is the ten-year yield. our road map begins with stocks at all-time records, edging higher ahead of a busy week as we said that fed meeting in a heavy load of earnings. >> speaking of which, apple earnings today, new watch estimates and a harder look at the strong dollar's impact. apple shares though up again at least in the premarket. >> applied materials abandons it's acquisition, shares are slumping, another swing and a miss in chips as regulatory concerns spike another deal. we begin another trading week of course where they posted record closing highs. jim, awfully close to that intraday high on the nas. >> a lot of questions, is it too high? let's use apple as an example. apple has had a big move it's still inexpensive, still plenty

of consumer stocks that are more expensive than the traditional tech stocks. and that makes me feel don't talk bubble until it goes over the price of the s&p. not until. it doesn't make sense to me. >> you're seeing a lot of names under a market multiple. morgan stanley puts a list of ten stocks together that have long-term growth rates, including apple, it includes gilead, fox-a, time warner black rock ford? >> you know i think that -- let's take gilyard. they report this week. obviously they have a lot of cash. obviously this competition from merck, with competition from adv from the key drug but that's not going to show this ar. they could turn out to be a growth to be with a kicker. why sill gilead here? why? >> at this multiple which comes

back to it for you. >> ten times. i have nothing else to fall back on. >> and it's just not bad, versus when general electric and cisco and microsoft in 2000 were trading at unsustainable multiples. >> cisco's discount. >> in 20 on 0. cisco is a discount to the multiple. >> and we talked about google last week of course after those strong numbers. that market performance that we saw from google and amazon whoa. >> talking multiples there, i'm not in the same conversation anymore. >> but google is. >> 17 times earnings a discount to the s&p, with that balance sheet? with that level of growth? inconceivable to me how that stock can't go higher. >> in this town it's all about private market values. there, there may be at least an argument to be made guys there's more of a bubble. >> i'm examining a lot of stocks

this week on "mad money" that are private. i have 40 billion there, 40 billion that. >> i would 40 billion if uber. >> 41. >> travis is no the a seller of a single share. >> abnb -- air bnb. do you think therefore they can't get more? >> i think they can, late-stage venture capital these days, where there seems to be a neverending desire to be a part of it even from the institutions, the long-only funds that we are accustomed to seeing invest in the good old-fashioned stock market the public market. >> but look if i can find something that looks like those companies, like what uber has done, i mean look use going goinged in order to find something out. that's a verb. uber is to get interest. that's a verb. i like companies that are verbs. >> interesting with the european

union, that was one of her arguments against google the fact you can use that word as an action. it shows their market share was over the top. >> i don't know clean ex kimberly shares at high multiple. do you have a clean ex? >>. >> jell-o. yes, kraft, we're going to hear from kraft. >> how about this view? this is pretty amazing. as san francisco sunrises go. we're on a rooftop, of course at our new studio out here headquarters at one market. an inside studio which would be later in the week. but foreign correspondents -- >> yes, yes. they have me in a vest. which is the hat that you used at today voss?democratic avos. >> it is kind of chilly here in the morning. >> people are thinking bigger

here. i've been working on some of the companies that i'm working on. they're not constrained by gross margins. they're thinking about taking over the world. every one of the companies i'm studying is trying to take over the world. that's a lot bolder necessarily than what procter wants to do. >> there's a certain narcissism some say, that's a necessary element of growing your company at that speed. >> i wouldn't know about narcissism. -- that came out wrong. i wouldn't know about their schemes, but i'm constrained by the old days where i'm still trying to figure out whether they'll have the 486 or the pentium. >> remember pentium? those were good days for intel. not good days on -- the latest applied materials, which is falling in the premarket, the

chip equipment maker scrapping its plan, multibillion takeover really a merger in many ways. they were going to invert as a result. this is in light of differences. both companies had agreed to a deal back in september of 2013. we had always and jim you -- >> what did i say -- >> we thought or i thought that china was always going to be a key issue for them. it ends up coming right back here to home. of course, the second deal in as many days essentially that we've seen a large deal stopped by the objections of regulators. the conference call was going on and i think many people are listening closely to try to get an understanding of what we're dealing with from the landscape of antitruth, because of office deo, staples, the tobacco deal these are all things that require and have been already studied from an antitruth perspective, but certainly carries some risk when it comes to that and when it comes

seemingly to a -- >> a lot of people in the industry felt this was an outrage from the day it happened. they were two companies you pitted against each other. that's the way antitruth used to work. lam research kind of a sub-rosa winner here. lrcx. >> that is because why? >> because, you know you have this coloss us that was just undone where i think -- lam has things that it can get in that otherwise would be blocked. you know, when i say an outrageous deal the market share of these two companies together was huge. so it was -- it was probably done with the idea like the airlines that they'll stock nothing. david, you saw last week a deal for our parent company that i think people felt was a shoo-in. >> they did early on certainly,

though there are many who believed the market power of comcast and time warner would have when it came to broadband was very significant, was problematic from the beginning. >> but you couldn't pitch the two -- i mean look it would be fabulous if i could pit time warner against comcast. >> you can't. >> not until somebody wants to spend an awful lot of money building things out. >> and the suits gins vios kind of in the ether? >> those are significant, important. that's all part and parcel of this changing landscape in terms of the delivery of television. >> it's funny you mentioned television. i feel it's totally outmoded here. >> you mean here in san francisco? >> yeah i feel like when your parents used to gather around the radio. >> do we need a new word? what do we call what we're doing now? >> narcissism. >> back to that. that's obvious. we do want to get to the big developing story of the morning,

that is of course the disaster in nepal. it no tops 3700 people. miguel almaguer reports from the ground. >> reporter: saturday's earthquake spread waves of terror from catfor so many there was simply no time to run. >> the ground is shaking. >> reporter: this new video from mt. everest shows climbers trying to outrun a wall of snow and ice. >> go go. >> flees into tents as the avalanche heads straight towards them. [ bleep ] among the dead, three americans. marisa giruan from new jersey who served as a doctor at base camp posting hours before passing. day 28 snow is falling and my

food cravings are another an all-time my a going the engineer based in cal was on a three-week expedition to everest. >> here is where all the things we have -- from boots to gloves to booze. >> he shot this video in his tent just a week ago. his ex-girlfriend actress sophia bush posting on instagram. he was one of my favorite human beings on earth, one of the greatest loves of my life. tom tap lynn also from california died on the mountain while filming a documentary. his wife says this was never supposed to be a dangerous expedition. >> an earthquake was unfathomable to me this is so shocking. >> they're bringing him down now. >> reporter: saturday's earthquake comes a year after an avalanche claimed the lives of 16 nipepalese sherpas.

since then a new route should be in place, avoiding areas with a high risk of avalanches. dozens of injured climbers have returned to and is the chip micro, and also chipotle goes gmo-free. we have a look at what that means for the restaurant chain and competition. another look at the premarket and a better look at one market our new studio in san francisco, where we are live today, when we return.

chipotle says it's completed removing genetically modified ingredients from its food. in the meantime starbucks has resolved a computer outage that forced thousands to close early the night before and for some it appears that coffee was given away for free. retail has become a

technological game and starbucks is the best at technology. what does tell me that you can make lemonade out of lemons i'll bet the customers were thrilled with the free coffee. i don't think it really meant anything. anyone who saw those numbers last week was dazzled. i was looking for 5% comps, they came in at 7. i thought we might have a double-digit china the growth in japan, breakfast so good. so i say, listen you're going to sell starbucks on that? bring it into me chipotle has been doing some things that hurt their edges. i don't know if you can get tortillas non-gmo, but the food system is trying to catch up quickly, but they will do it because chipotle's growth is very good. >> so you don't thing their

making their supply chain even harder than they were. >> the supply chain will buckle. it's like when apple rolled over the record companies, chipotle will roll over the agribusiness. >> really? you think that's an appropriate -- >> yes, i do. >> -- parallel? >> yes i do. you know why? the public likes natural and organic. go to a target go to a walmart, you'll see it. that's what the people want. they're ig to pay move. you don't have to and frankly i have a guest coming on for "mad money" from a company called farmland. if you look at the actual cost of food it costs less to grow organic. you don't have all that fertilizer. >> though we're in a state where the drought -- you can tell living out here is tough on folks, a large part is the demand agriculture places on the state. >> we're a gentleman farmer country. from the times of jefferson, it's very hard to defeat the

farmers. do we really neath ethanol, which uses a lot of money and water? it makes no sense economically but we do it because they're powerful, the farmers. >> are they over-owned? do people already get -- people will be saving money on gasoline eating out more? all these discretionary things you don't think they're heavy here? >> cheesecake factory, which i was looking for a flat comparable source after a fourth quarter bad, amazing numbers. again, you get natural gas prices down that's a huge cost. you get the consumer feeling better but let's watch oil goods higher. oil has bottomed because the amount of oil that we're producing has declined rather rapidly. far faster than everyone thought. >> it hack because i feel like we get a lot of different takes on whether things really are declining. you made the point that there are more productive wells on

now, that it really isn't declining. >> the bakken is declining. there's some 70 50, 25% depletion rates. some of these shale wells are much shallower. the demand has also increased. a lot of that is europe but i think oil bottoms at $43 at the end of january, and we won't see it again. that means that gasoline prices have bottomed. >> well the saudis today called the deputy financial -- or oil minister called the oil market excellent, as a result they're going to try to keep pedal to the metal. >> i do think retail has ey comparisons, but i saw people selling home depot. remember their christmas season is the planting season. when we get our tomato flats together, you'll see crowds. >> crowds? >> yeah buying tomatoes.

it happens every year. no one believes me. >> no i always believe you. >> why do you look so skeptical? >> i was thinking about our tomatoes. >> we'll get kramer's mad dash in a moment west coast style ahead of a big week for earnings, a two-day fed meetings and a lot more. more "squawk on the street" from one market in san francisco, straight ahead. if you're looking for a car that drives you... ...and takes the wheel right from your very hands... ...this isn't that car. the first and only car with direct adaptive steering. ♪ the 328 horsepower q50 from infiniti.

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time for the mad dash. i haven't only had a chance to turn around and enjoy this incredible view. i'm seeing it in the monitor. >> we should catch it. >> wow. actually it's a beautiful state. >> right down there, a beautiful stadium. amazon. people think it's a silicon valley, of course it's not. it's a seattle company. >> but bernstein said this amazon web services could double estimates this web service, david, ever since the breakout people have been dreaming about how big amazon can be. i like this call. >> an incredible move on that.

almost 15% on the day? $4345 a share. >> it may be a different company than we thought, because it's not just a retailer. it's a method of getting something from a to b, and watch china. they did well in china. and i think that's important. they're doing well in india. this -- this scales -- i like to use that term because i'm in san francisco. >> best practices. >> think innovate at scale. that is what people at amazon say, they are not many companies that innovate at that scale. >> keep in mind people are willing to pro -- at any dip. it's going to stay higher. >> that was quite a move. now, let's talk about negatives. ddd systems, piper downgraded. i've been watching and working with intel. they use ddd systems for one of

their 3-d approximate. >> it's just that the stock has gotten very over valued. stratus, a competitor downgraded by canticourt. it's an exciting business as many things are out here i find that, wow, that's cool. i can make a 3-d version of david faber. >> we've got one right here. i move, too. not as well as i used to. >> but it's not an hologram. it's an actual 3-d. >> got it. >> while it's explosive technology, you could make a lot of money off of it. >> yet. is that your point? you can pit these companies together. anytime you can pit, the margins go down. i just don't like the margins. >> we have other stock toss keep

in mind. we'll send you back to the nyse. stay with us. "squawk on the street" is coming right back from right here in san francisco.

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for the moment let's bring you back to the east coast. >> opening bell about to ring. art cashin we're opening at a record high for the s&p and the nasdaq thoughs do say it was very, very restrained performance to get to these records. what do you mean? >> it was. kind of a tepid breakout. friday they moved away with that. some of the senior techs, google and importantly amazon breaking out to the up side. they did very, very handsomely, follow through today, it looks like bank of china may have the

quiismant of qe and a poll on "barron's" that said less than 50 people were optimistic. so no euphoria. >> you think that's a bullish sign. we are watching the opening bell with the realtime exchange. robert downey jr. and jeremy renner are there. opening nationwide this week may 1st and over at the nasdaq holding the chinese bamboo, the chinese maker. let's see if we can get an interview. bob is on the case. >> art cashin is still with us as we watch the first trades here building on those records. interesting the dow is opening up about 58 points still 200 or so points away from its record

high not really joining the record party. i think it could be an item to watch. when you see how the markets in europe and other places are moving out. the dax is what inspired a lot of this i think front and center for many people will be what we assume is a very poor gdp report on wednesday. people are saying the fed meets the same day, presumably they will be fairly cautious in the statements they make as a result. it's not really game on until the employment report next week. would you agree with that? >> i would agree. i think in the statement you have two forces working against each other. i they fed chair fisher really wants rates moved a bit in this year, and i think so many of the other doves don't want it.

that makes me believe they might make a last-minute try in december, but payrolls will tell us a lot. >> that's potential bullish, if you get the inference it could be six months later. >> you. people think of june as a possibility. >> not me. we've had this discussion. i never thought it would happen this year. the payrolls and claims start to come in. we'll see is the layoffs, downing some rigs in the shale group might lead to a great many more layoffs. >> plus first-quash gdp. it's expected to grind to a halt. i do want to point out we've opened higher information technology in the lead in terms of the s&p groups the nasdaq really taking on a leadership role, as we look out to san francisco. it's really not just technology. what is it that's driving the nasdaq so far ahead of the s&p and the dow? >> well the feeling that they

are to some degree in a more competitive position you know earnings have been down this quarter, but not down as much as had been feared. that has nothing to do with the lowered expectations. they've held together. the earnings particularly the revenues have held up better. >> fascinating article in the journal about how big companies are buying drugs, which goes to the health care rally, but it's old, big tech has done well and apple tonight potentially a big marketing -- >> it will be very tough for apple to knock the cover off the ball. >> what happens if they increase the return of cash to shareholders? a lot of people could run with that. >> they certainly could, although you have enough people saying plow some money back into research, you've been great at it keep it going, so we'll wait and see. i'm sure they'll have a surprise.

tim cook has picked up on steve jobs. and just one more thing, so there may be just one more thing. >> worth mentioning apple is the best performing in the dow, followed by disney a lot of positive sentiment here on earnings movers. is that what you think will be driving us here until we get the next big report? >> yeah i think as the earnings go the apple will be anticipation anticipation. i think there's some high risk that they can't live up to this expectation, but for today they're going to try. >> applied material is one of the biggest followers, the deal with electron has been as a result of the doj. last week it was all about comcast/time warner cable. do you think this will hold the market, a more brutal regulation? >> i think it will great a great many doubts people that were running about, saying that company looks like a target for a takeover maybe not so ready a targets anymore, particularly if

they are competing here in the united states. >> on valuations, everyone always talks about this as we continue to notch report highs, of course for s&p 500, 18 1/2 times company earnings for the past 12 months. you can look at this a number of ways but that is above the historical average. do you think it's anything investors need to work about? sinchts the amount of trading on margin is at a near-record high. the amount of vail free money and brokerage accounts is at a very low level. there are some signs that give you some caution. >> if you are correct and the fed isn't about to raise interest rates, those margin positions could remain. if you're correct, we're safe on that one for now. >> i'm willing to stake a big bet on the fact it certainly won't be before september, and i think it may be 50/50. >> and adam parker's note

saying don't look at equity valuations being too high when you have a world with government bond yields around the world, some of them are in negative territory. >> the question is whether they stay there. >> have a great week art. let's spend it out to bob pisani, who's on the floor with more of this morning as opening and potential a big interview. >> no unfortunately robert down jill has declined but last time i held up this and he came over to talk to us. but "aventioner, age of you will tron" opened up overseas with an enormous number and of course they'll open this weekend, and unfortunately he didn't want to talk to me. here is what i showed up last time and he came over and said hello. this time it didn't happen.

we'll keep an eye on the movie this weekend. in the meantime things are flying over in europe again. we had a big move up early on. big story out that the finance minister is isolated from the big decision making. china is still moving. shanghai hit another seven-year high. there were some reports out that there might be some push to consolidate some of the state-owned enterprises, for example, some of the oil stocks that are out there. so there were some moves overseas in petro china, in sinopec, again some vague rumors going on but it does move the overall markets. here in the united states, against the story with the they missioned, but think talked

about a big currency headwind 9% hit on revenues due to the higher dollar. same thing happened with labcorp. they lowered their retch guidance saying instead of 42%, which is an amazing number 39%, most of that 3% hit on revenue again is due to the strong dollar. can you go right through this and see the effect. i've tried to pull this out and show you the effect of the s&p 500, revenue growth this quarters so as far as we're down 3.4% in revenues but if you look at the s&p, 600, small-cap stocks that are not exposed to the overseas not as much exposed to the dollar issue. revenues are up 5%. down 3.4% for the big cap. s&p 500 and up 5% for the small-cap s&p 600. that is an enormous number.

that's the effect of the dollar we are seeing. the good news is much of this is ameliorate ameliorating. it hit a high about a month ago. it's been coming down and so has oil. we're not sitting near the highs for the year. this is important. the hope is maybe this week -- they're going to talk about this in the federal reserve meeting, that the effects they are seeing on the markets are temporary due to the strength of the dollar and oil, which is now reversing. i might as well throw in the weather as well. sarah, back to you. >> thank very much bob pisani on the dollar impact on earnings. let's head over to the bond picks this morning. good morning, rick. >> good morning, sarah. >> it seems foreign exchange an equity markets are the trend setters. as you look at a one day of tens and two-day of tens you can see remember drifting up again after trading close to the bottom end

of the range and how long is the range? let 'start a chart at march 17th. 29 trading days actual trading days since the 17th because thas the last time we closed above 2%. in all of these sessions, we've settled between 186 and 199. so that trend continues. whatever pinning the bond market seems to have, they seem to be very consistent this fed week. if we look at a ten-year bund we trended down. now it's low yield, historic close was 7 in which basis points. when you euro currency dipped a bit, look at that the dax up sharply, but it doesn't start out that day, and there wasn't a lot of dizzy tier yags there. whether it deteriorated it helped the dax. it wasn't only that. if you look at some of the asian markets, chinese storms they are just on fire so that is

helping as well and there you do see that euro/dollar chart. i believe david faber is in the bright, brand-new studio? san francisco. david? >> that's right, the sun rising behind us here in san francisco. almost a quarter of 7:00 we wanted to get to some news mainly testifia's pursuit of mylan. now we finally hear in mylan responding to the bid made for it by teva. mylan comes up with a long press release, which it fully, completely totally says we have no interest saying it grossly undervalues mylan, and the board

unanimously determined that teva's proposal would require shareholders to accept quote, what we believe are low-quality teva shares in exchange for their high-quality mylan shares in a transaction that carries -- and risk. we'll see where it goes. all i pointed out on friday mylan's new bid not much of an improvement on the old bid. we'll see what mylan does today. a couple things to add here on this entire situation, one in particular that has not been reported, or if it has, certainly has not been fully understood by the stock market. that has to do with copaxson a key treatment that of course teva has for multiple sclr rods. the treatment has gone generic, most of the population was

migrated by teva to a different formulation. interesting to note that on march 3rd mylan in an interparty's review challenged the remaining patents on copaxson that teva has. copaxone has -- and it hasn't seemed to dawn on the market than challenge was taken on by mylan, it would go to the so-called p-tab, the cord are court specifically designated for decides they patent challenges, and trying to move them through. so those on copacksxone -- that would have a very negative

consequence it would seem for teva girch again two thirds of the patient population that was on copaxone migrated to the 40 milligram dose an where it's preloaded, three days a week and incredibly profitable for them. >> if you look at the big decline a few years ago, it was because of the worries about the copaxone. the stock was in the 60s. it fell to the 40s. this is huge. it's odd, because copaxone is the transition. the big gross margins go away. very interesting that mylan would come after those. i don't think it's understood by the market and now teva decides not long after it wants to own -- where it could have come after it before it inverted where it was a shareholder vote a much more effective way for it

to potentially gain control. now far more difficult. i won't go into the things about -- i think our viewers have at least been educated to certain extent. >> perrigo, lost in the shuffle? >> possibly. i've been going over perrigo's, very interesting. perrigo was saying nod that good. walgreens say not that bad. >> axp. tailing it to neutral. >> i have to go over that because he has this key line my charitable trust owns twitter. i know this will have an impact. i wish it week but it will. >> as david has talked me.

another guy saying -- you play that game google doesn't buy them and then people say kramer, why did you say to buy twitter? i'm saling that peck is good the google talk i'm not buying it. >> that crushed it. peck is good. this was pawed. >> how about disney, new high? we saw downey there. >> and citi has it 110 to 125, the pipe did not line is big. don't forget "star wars", shanghai.

>> that was a good piece, who runs the parks, and considered to be the heir apparent. who has had one heck of a run. >> and big in fantasy. >> some of the valuations for some of these prime companies have been pretty rich. as the leagues warm up -- >> that's what i'm thinking. >> adam silver with that incredible -- >> s&p 21122, a new high on the s&p 500. >> we have a wave of money coming in and i think that's important to remember that used to be the way it was, when the -- mutual fund got big money, i think people want to be in the market.

no c'mon, interest rates the not going higher. almost none left, the stock market. according to some reports may be shrined, the team that's negotiated with the eu. >> it does seem he's a bit of a rabble-rouser. >> four weekends at number one, not done since "hunger games." >> it's edged out the greek finance minister. i loved it. i think they were more than 1,000 cars lost in it. just a fabulous movie.

the spain number dazzleddszzled me. greece will be cordoned off. don't stop talking about it but it's not as important. the piigs are doing better as we keep our eye on new highs in the market a lot more "squawk on the street" live from san francisco at one market. we'll be right back. hello. i am here to offer sophisticated investing strategies. my technology can help you choose the right portfolio. monitor it. and automatically rebalance it. all without charging advisory fees, account service fees or commissions. that may be hard to compute. but i'm a computer. so trust me. it computes.

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of the days is celladon. if you go to the website, it's kind of astonishing to talk about how big this drug can be. you know what? it may never happened. and you don't work. good short story. >> we talked a lot about earnings this week but the rest of the week you name it. >> such a big deal. the f.t. today points out companies that have had billion dollar foreign exchange haircut.

what you recognize is if dollar is stabilizing, wow, what does it mean for the second half? it could be very exciting. i think the dollar is putting in a bottom. i mean euro bottom/dollar top. all i hear about is people buying european stocks. if the dollar has peaked we don't have to cut 2016 numbers. >> i like that. >> earlier we were talking about the fact that you think oil bonnelled at 43. we don't seem to have benefitted as much from low gasoline prices, as best it seems to be measured. we seem to have taken more from the higher dollar versus lower

gasoline prices. >> restaurant have not said that. >> they've been okay? >> they have said gasoline does matter. i agree with you. with some of these what matters is that natural gas is lower, so their heating bill -- >> people seem to be saving as opposed to spending. >> rates are up almost a full point. >> the country is a changed country. we're a frugal country. when we do shop we shop at dollar stores we look for bargains. it's a changed country. it's like our grandparents my grandparents. not that frugal. meanwhile, we have to spend more on gm off-free organic, natural? that's not cheap. >> the oligarchs are doing great, but others -- i think it's important.

>> the saying sell in may, go away, why wouldn't it make sense in 2015? >> i can't find anything else to buy. german ten-year? >> no you don't buy it it buys you. >> we have intel on tonight. i'm not saying buy intel, but look at the different. restoration hardware on tonight. >> biomarin, a lot of people talk about this company as being the next big health care company. all of these have growth or income. i'm getting nothing from the five-year, from the ten-year so let's keep it in mind. it's the alternatives that are at issue. sfraz real state in that's a bubble. >> maybe, maybe not. >> well you know what? they created more real estate to add more -- i love this place. >> we're going to come back

tomorrow. >> and the next day. we'll be in i think -- everybody loves the shot. they talk about business news all day. >> >>. >> you have a busy day? >> we're doing a full interviews. nine today. >> is that all? >> that's an easy day. >> seven. we'll see you tonight. >> thanks a lot. a lot more to come from one market in san francisco, including what roger mcnammee is expecting from a very big week. we're keeping an eye on the s&p 2124. we're back in a moment. run a business. could be any kind of business. and every day you've got important

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good morning. welcome back. we're live from our new bureau in san francisco. we're right at the foot of the bay bridge at one market street. i'm simon hobbs here with sarah eisen still back at post 9, linking you into the action here carl. >> pretty interesting action setting up today, as we have the nasdaq hitting new highs. s&p 5002125, despite some downgrades for big companies posting earnings this week. we'll get to all of that in a moment. sarah? >> let's get to the road map for the hour. we're live at our new francisco bureau. where roger mcnammee will be joining us for the hour. we'll go live to cupertino for a preview of many apple's report and toe bias will be here as

the s&p notches new all-time highs. >> later in the next hour the ceo of lam research will join us for a first interview, live from one market in san francisco. he's speaking out for the first time since beating expectations for the third quarter, plus of course, his read on the semiconductors. carl? >> the next few days are pretty packed, of course who imperil to help us that is the one roger mcnammee. roger, welcome to our new home. what do you think? >> welcome to our city by the bay. we have arranged for a lovely morning with bright sunshine. >> this is nice. >> it seems like the stars have aligned for cnbc. >> you've been cautious? >> you remember i was very cautious, then the price of oil

collapsed. what i see in the world makes me feel like we just have to remember this isn't going on forever and what with the pricing dollar it would be harder for the s&p to put up gray comparisons as we go forward, but again, i'm not negative. i'm just extremely cautious because i think oil was the last big positive we could have here right? we could take rates any lower. it's hard to imagine the chaos we see around the world will somehow go away and give us another big lift. >> we've had the discussion earlier, roger, saying that oil maybe has not been as big -- we haven't been as big a beneficiary in the markets as people thought, given a lot of the savings from low gasoline prices has actually stayed in savings, and often spent. >> amen. in my mind that's actually a

positive. that simply suggests we're going to spread the benefit out a bit. the notion of u.s. family getting deleveraged because of the a $500 different from oil prices, that makes me -- that's a warm cozy feeling for me. i look at fundamentals in the stocks i care about, which are in technology. clearly they're very good. the things i'm excited about, which are apple and facebook primarily, it's still full speed ahead. >> how do you feel about apple tonight, for instance? >> i feel good about it. to me all of the issues that we see in the marketplace for apple, whether related to shipping enough volume of the i watch or wha whatever. they all the challenges that come with success. it's hard to make a negative scenario out of what's happening at apple. >> ebay is on your mind -- >> i look at all of this attempt in europe to regulate google. i want to say, guys, you just

need to be reading the newspaper, running closer focusing on the issues of three, four years ago isn't going to work. >> to me that's what regulators do. the real battles are around privacy, and around the control of people's private information. whenever 24th go to things of competitiveness, i'm with you. i think they're making a terrible mistake. i think the place where google and others are vulnerable i think the europeans have a stronger ka is to focus on that. when they get off of that, they're doomed to fail. that would hurt facebook as well, wouldn't it? >> again, i do think that we're not going to optimize the world for the convenience of facebook and google. >> why not? >> yeah. >> we're in california that's why not. >> do you see any new?

any new wrinkles in this in that, being stymied by international regulation? >> i think they're running so far behind the times, the thing they are arguing about hasn't been relevant for several years. >> certainly google's argument. >> they just have to open the newspaper, and you can see it. to me we have moved off the desktop search. now mobile has become if not the dominant play for people to get information, certainly the rapidly growing one. google is just not as big a factor there. i do think that helps competitiveness in general. i think the europeans will luckily have to admit that. >> we're going to talk to kreismt 06789 john donohoe, that all starts at 10:00 a.m. eastern time tomorrow. help us understand what's going on with ebay. >> when i look at ebay i always shall mixed emoves.

at one level they had -- at another level, i find it the most from you trading -- it raely requires an emotional and time xhnt mitt to shop on ebay that i just can't muster. i wish that john and his team at ebay ebay, they've named all their buildings after their product lines. at the end of the day. it just -- the customer experience hasn't improved materially in ten years, and this is the internet. it amazes me that they can sustain their succeed without improves the product, as they perhaps get closer to the customer when the marketplace business is its own? >> i surely hope so. otherwise i think being an ebay shareholder will be very frustrating. paypal has been an extraordinary positive for them and, you know on a going forward basis,

i think that being independent will ideal benefit both of them but could be catastrophic, too, i do think the sim by oz between the two of them was real. >> you do -- catastrophic those are pretty strong words. >> i'm just looking at what's going on in europe and i do think if google could figure out a way to punch a hole in ebay they would do it in a heartbeat. the notion that there's no competition is laughable. i think everybody would like ebay's business if they could get it. as lodge as the shopping experience is what it is today, there's an opportunity for competitors to come in. >> why wouldn't you mention amazon in a conversation about ebay ebay? >> certainly they're always part of it. to me amazon is the biggest factor in all of those marketplaces. i look at it and go i never quite understood amazon, either. but it is amazing to me that we

haven't seen more progress in helping people find the things they are looking for in anticipating what they need. i don't think it's going to come down to little buttons at home to reorder -- i do think at least they're thinking about those problems and eventually they'll tip on to real solutions. i don't see ebay making any effort to do that. >> i think amazon to their credit is investing heavily in trying to figure out what makes the shopping experience better. obviously they have succeeded. >> we hope you'll come back often. >> particularly if you move the show a couple hours later in the day. >> roger, great seeing you. >> a pleasure. i am so envious, and moving the show a couple hours is really a good idea.

clearly the s&p hitten an intraday high. so bias leave coadvice. >> i remember that 15 years ago. >> exactly. he was suggesting that now is not the time to get into the stock market but he was saying that back in september. >> i doubt that but i think one of the problems with oil is people view it as an immediate benefit. >> people see it as immediate grad iskt. well that's not the only thing. we have jock growth every indication that wage growth is coming and even capital spending has been far better

than people perceive. they think it's about energy and i'll give you some statistics to think about. 10.5% of gdp was capital spending in '09. it's now about 13%. energy was half a percent and went to 1% so only about, you know, half a point of the 2 1/2 points of improved capital spending came from energy. >> that said obviously one of the key focuses will be wednesday's gdp figure which we know will look appalling. are they just basically going to be cowed into a corner saying we're just carb? or will they give clear signals for the market? >> since i'm not a fed watcher -- >> if you were an equity strategist. >> you care about what the fed has been saying. they've been talking about fairly normalizing rates. and say we knew there was a --

we know there have been discussions about the first-quarter seasonals aren't perfect anymore. this gets into really minutiaa the fed kind of looks through. the nasdaq up 7.5%. do you see pockets of over-valuation within technology? >> there have been some areaing that we've been worried about. where people have really crowded into these hot growth areas, hoping this gives them that extra little kick. >> isn't this just a low gdp environment where they're clamoring for growth? >> very desperate for growth. on the other hand, if you start to see the fed move you starreding to bond yields. tech as a brought group is interesting, but you can do what you call value tech where you still get the benefits of capital spending improvements.

we've been more jobs more of a mobility platform and you've got cybersecurity needs. >> what names are these? >> i can't go into names. it's not proper disclosure. >> let me bringing back to the broad market. goldman has asked the questions whether there could be a sharp correction on highest interest rates, because the fed rate rises come so late in the cycle and therefore arguably the market has been allowed to get ahead of itself. how do you agents that? >> there's two ways to they about it. markets are far more driven by earnings even in the first quarter thus far, expectations were down 4% to 5% and you've got over 6% growth. be fair -- >> 30 energy companies haven't come in, so that's fair. so if you look at the second half, you're talking about more like 8% growth. if you get that acceleration i think very modest increases in

interest rates aren't going to disrupt that. >> that's the key, the fact that interest rates will rise so slowly -- >> which i think the fed keeping telling you they're going to be very measured. i believe them. i don't think they're trying to lie to me. i think they're being extraordinarily open. >> have a great week toy bias. >> when we come back apple getting a boost today, the best performer in the dow ahead of the quarterly results this afternoon. investors are expecting the company to return more cash to investors. just how much? we'll find out when we come back, and how you should play the stock, when "squawk on the street" returns live from the new york stock exchange from one market street in san francisco. 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.

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apples as you know set to rot results. wall street expected company to boost the different and buyback program. josh lipton is live outside apple's headquarters with more. good morning, josh. >> reporter: apple's expected to generate some $60 billion in free cash flow this year after the bell investors might have a better sense of exactly how much

that money ceo tim cook is going to return to them. apple has already made history with the capital return program last year the tech giant returned $56 billion to its shareholders in buybacks and different. that was more than any other company ever according to s&p capital i.q. apple did $45 billion in just buybacks. that represented nearly 10% of total for the entire s&p 500. it's expected that tim cook will update the company's capital allocation plan after the bell today, and could be even larger than the current expiring $130 billion program. the only question is how big is it going to be? analysts are all over the map. wells fargo says at a minimum they're looking for $10 billion. piper jaffray is at $170 billion. rbc is at $200 billion, which they say would represent all of the company's free cash flow

over the next three years. of course, capital return is key, but analysts and investors will focus on iphone shipments, still representing more than 50% of the company's revenue. analysts think apple may ship 50 million iphones in the quarter great expectations, josh lipton in cupertino, thank you for more on what to expect after the bell let's bring in shari scrip ner at deutsche bank. plenty of questions here but talking about -- >> we assume about $30 billion in additional buybacks. we're looking for the increment incremental difference. the it is all over the map. >> one thing that seems unanimous is the sentiment is high and strong. people expecting another good quarter. apple the good performer in the dow today. you have a hold on this stock, 125 price target.

when do you have to take that up? or do you think we'll be disappointed today? >> i don't think we'll be disappointed. we're definitely going to have a very good iphone quarter this quarter, similar to what we saw in december but from here the growth in terms of the iphone numbers get harder and harder. the big part of the refresh happened in december and this quarter, and it starts to wane. it gets harder for apple to beat those numbers. >> a lot of people are interested for commentary on the watch, which starts this weekend, and also apple pay. not retch and growth drivers yet, but obviously potentially in the future. >> the watch is a great product. it's hard to understand how much supply is there versus demand at this point. that's sort of where we don't know. i don't think we'll get a lot of details on how many they shipped, but i think there would be commentary. >> it's interesting to contrast what ear saying with for example, brian white, a bit

of -- i'm sure you read each other's work. he's talking about the watch being a home run product. he's just returned from hong kong where he's actually observing long lines for the iphone 6 and the iphone 6 plus, raising his estimate. how does that -- why is he so different from your position? >> i don't think we're that different in terms of independents sold and expectations that the watch will do well. i think it's in terms of valuation and where expectations already are. so i think most people are already at 60 million iphones, he's at 58. in terms of the watch, you know again unit estimates for the year are all over the map. >> but it's not about this year is it? it's about the way we use the watch, if you believe them two or three years down the road. let's say they unveil apple tv a collection of small kind of

cable package and your watch becomes your remote control. for many people that's a game changer in the home. that becomes a must have doesn't it? >> it does but it will be a question of how much penetration you can get of the watch of how much of the iphone unit shipments, right? we've assumed about 20% over the next three years, 20% of the install base will go to the watch. it's still probably 15% of the total revenues. the iphone is the big revenue drivers, and it's hard to offset that. >> shari, just a final word on valuation, given we have seen this run-up but many people still think that apple is pretty cheap. >> well, there's definitely numbers all over the place in terms of valuation. if you look at apple, though because the market cap is so big, right now they're traiting about 14 15 times forward earnings. they haven't traded above 15 times since 2011. i think the market cap is just too big for them to get the

valuations. >> shari, thank you for joining us. we'll send it back over to you guys, david and carl back at one market. obviously a great week to be there with all these tech earnings. >> interesting discussion, roger. again every quarter we sort of play this game. we know it's a phone company at heart, but are there are more 6-pluses than we think or not? does it matter? >> whether it matters beyond tomorrow very, very unlikely. you know i think the issue that shari makes, which is that apple as market share is so big, that that's a barrier to the stock, is probably a real one. that said i also think this is the u.s. stock market today in many ways apple has become the most important company in our economy. they really represent what future we can look forward to and, you know but in the dow now, it really is the stock.

so in my mind they used to talk about gen mothers, and i think in some ways if we look at apple in that context, you know, the market will continue to be a good mark as long as apple is a good stock. it's going to be harder to make the case for the market, most of the s&p has basically been playing tax games and stock repurchases, currency things. some of the trends in the economy are just going to play against that from here. >> does the potential for capital, more capital distribution put a floor in it? >> i hope so but you know at the end of the day, these are -- you know the markets, people are going to decide how they feel about it. right now i think everything that apple does comes across in a positive light. with the watch and the whole opportunity to use the watch to replace wall either is the primary way you establish identity in any transactional

situation. that is such a huge opportunity. remarkably it doesn't require all that much capital, but it could become a huge force in banking broadly defined, in which case it will -- it will be necessary. >> it could start a pretty big bank and have you know 100 billion in capital as the capital cushion for the bank. >> and i think a level of truth with the consumers that no bank could even imagine. >> they're not going to become a financial institution. >> maybe not in the traditional sense. i think it's they already are a financial institution. they move markets with their cash. >> yes. >> but i do a banking charter. >> apple pay is a really big deal. if you change the way people

transact, you eventually have that opportunity. i don't know it would look like anything like what we think of as a banks, but the label won't be nearly as important as the fact of their daily interaction. >> we'll see what happens. in the meantime simon, back to you. >> thank you carl a look at how small businesses are increasingly exporting their products sill silicon vannie emerse platforms. part of our big day, the launch of our bureau in san francisco. we'll be right back.

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i.s.s., an influential proxy advisory firm comes out and recommends voting against two of trian's nomineeses instead they also come out in favor of two of trian's nominees. they say to vote against winkleback and zata. those are the recommendations of iss. in the past we've talked about services such as this should not have this kind of influence conceivably over these proxy fights. that's an argument for another day. for now we can tell you that given that, it certainly will influence the way the index funds in particular vote their shares in dupont, and they have a relatively hef weighting in those shares. it's may 13th of course when we get the annual meeting and the decision by shoulders will be felt at that point in terms of what they want to see as the comp position of dupont's board.

the most influential, which can have a significant influence one way or another, it is on this proxy fight, i.s.s. says go for two of the nominees including nelson pelts and john meyers when we come back ceo of lam research joins us as we are live from one market studios in san francisco. we're back in a moment.

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i'm courtney reagan. here's your cnbc news update. the death toll from the devastating earthquake in nepal has soared back the 3700 mark and that's not include remote villages that rescuers are trying to reach. extraordinary video emerging of the after large on mt. everest caused by the earthquake. one climber said he should feel the camera shaking. at least 17 people died from this avalanche. some climbers are still missing fitch is lowering japan's credit ratings as the xun deals with staggering debt. european leaders arrived in kiev for the first time since a

key trade agreement was signed in 2014. the implication of the agreement, which russia opposes, will be part of the agenda. they also will discuss the ongoing conflict in the eastern part of the country. now back to you guys in san francisco. thanks court. we can talk technology here at one market without talking semiconductors. chip makers have expressed plans to cut spending lately but with the reported earnings just last week that not only beat expectations, but also issued a nice outlook, what has the company feeling so optimistic? joining us is martin enstead. welcome. good to have you. >> thank you very much. we've lived with recent weeks with revenue warnings from intel. people were not expecting your quarter to look the way it did.

>> there's something pretty special about the company in terms of where we are in the supply chain. we've been saying for many year the architecture means something spells for the etch and the deposition segments of the industry. the story to lam research is we are executing well. outperformance has been the theme for the last several years, and we're off to a great start. >> you know what? i would love to get your take on the news out this morning, tokyo electronic applied materials, they anoun a deal finally today. the regulators in our country say not going to happen. they abandon the deal. a, what's your opinion of that whether it made send and b, does it benefit your company? >> timing is everything but,

you know we are an advocate of consolidatation in our industry for the right reasons. i've said many times that the challenge in terms of technology invasion and economics is pretty extraordinary, so consolidation is generally a good thing, but you have to be able to articulate a valuation, and you have to pass the hurdles in terms of regulator review. it's been a long time. organic and inorganic is a part of our strategy we're very -- and we've got a great story and great future. the inflection mean something to us. >> so martin with the anniversary of morris law there's a lot of discussion of how much more we can see the advantages in the semiconductor business that have been characteristic. obviously this is a giant issue for you as a company, maybe a giant opportunity. tell us how the next four or five years are going to play out in terms of the end demand and

the limits for technology. >> the reality is there's a very long development cycle. so five years ago, we berle gan working on the technology inflection shuns that were relevant for calendar 14 through calendar 17 time frame. so right now a big part of the concept and feasibility work is focusing on calendar '18, '19, even the beginning of the next decade. so morse law has been defined by traditional scaling. i think the performance of how is delivered, comes in a different form. it comes from device architecture, from next-generation materials. i have every confidence that the capability in our industry and that of our customers is going to sustain innovation for many years to come. exciting future. >> what kind of clarity will you have on what drives demand in 2020 and beyond? >> clarity?

>> i think the world of pc when we had a lot of conversation about the pc recently it's not as dominant in terms of defining the path of the semiconduct other industry. is there's lots of devices it our future so the integrated circuit growth curves of 8% 9% historically seem like they're just as relevant in the future. >> and we can expect to see slumping demand one would expect for pcs, desktops do you feel that you're properly positioned for this? it's here not emerging any longer. >> no, i think we're very well positions in memory and logic both. one of the reality is you're reasonably agnostic to the end device, and what we have to take care of is making sure we deliver the enabling technology

for the road map of our customers. that's our focus. so we're ready for sure. >> we'll certain lapping some of your competitors. thank you coming by. >> it was a pleasure. >> >> thank you the dow is up 60 dan rosensweig will be here during "squawk alley." we'll be right back after a quick break on "squawk on the street." fore i had the shooting, burning, pins-and-needles of diabetic nerve pain, these feet grew up in a family of boys... married my high school sweetheart... and pursued a degree in education. but i couldn't bear my diabetic nerve pain any longer. so i talked to my doctor and she prescribed lyrica. nerve damage from diabetes causes diabetic nerve pain. lyrica is fda-approved to treat this pain. lyrica may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new, or worsening depression

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rick santelli is from chicago this morning. >> good morning. i'd like to welcome my special guest rashir sharma. any big thoughts on any fed issues with this week's statements that traders may mott gill anticipating? i would think all the traders i talked to agree with you on that sir. down here one of the famous words, let's keep it simple is there a greek exit from the

group, in your opinion, sir? >> i don't think so rick. that's really the key point. most people in greece want to remain there, because they know the alternative is much worse. they're talking about a grand bargain, yet there's some sort of a default which is allowed because of the limited ability to pay, but i think the broad thing which people are sort of sensing now, is that with most people wanting to remain within the euro one greece that will be the eventual path. >> i've seen today in the greek three-year a fairly large movement. there's a lot of them lately where it moves from close to 27% to under 23%. is there something going on there are supposedly pieces

being written from think tanks, and have we underestimated that? any thoughts? >> i those those targets are rolling, once we think there's a certainly date something new always comes up to find ways of dealing with that deadline but i think people are focusing on really something that's in no one's interests. the greek government is losing a lot of support at home in terms of the very hard-line stance and the kind of negotiation they've been doing so i think we're moving towards some sort of solution despite all its sort of antics is really moving towards a solution. i think that's the sense which is creeping in. of course there's sample scope, but i think with most people in greece realizing that the alternative is far worse, there's some sort of solution that people are sensing, and that's reflected in the rates you're talking about. >> thank you so much.

we are out of time. next time i want to talk more about china and your book "breakout nations." thank you for your time first guest of the week. back to sarah small byes are actually making exports a big part of their business thanks to e-commerce platforms like ebay. good morning, kate. >> good morning, for most it's not a reality. data from the international trade administration shows that less than 5% of american small businesses are shipping their goods overseas but a new report from ebay shows that e-commerce is helping to break down barriers ebay finds that in 2014 the 0% are more than 190,000 of the small and medium-sized businesses that sell on its site are now sxoerting. for comparison less than 30,000 were exporting on ebail. exporting has been a game

changer. the redwood city california music store has been around for more than 75 years and took a stab at exporting seven years ago. nearly 30% of business comes now from exports. >> we had some slow times at the store, we had some construction going on sales had dipped. that's when we started putting more products in ebay and it really saved the stores like i said around $850,000 and with the global shipping program, we can reach other areas of the world we never would have reached in the first place, and repeat customers, too. >> customers are now all over the glock, with returning customers, ebay's report finds its sellers have -- now, we did reach out to amazon, etsy and al i baba but they did not provide comparable number. >> kate rogers thank you so

much. tune into "squawk on the street" torte. we'll talk to john done ahow in an exclusive interview tomorrow 10:00 a.m. eastern right here on "squawk on the street." mean 250i78 interior designs giant houzz allows them to collect and collaborate. joining us. is the ceo of houzz, the largest design community online and a friend of the show. it's good to have you. >> congratulations, this is so great to have you here in san francisco. >> in a morning like this it works out nicely. >> it's beautiful. >> if you look at where retail sales have been strong people are spending money on their homes. i've got to imagine for you as well, it's sort of the sweet spot of where the consumer is right now. >> you know houzz community has grown dramatically over 30 million people a month, and we

recently launched a houzz barometer, it shows how confidence industry professionals are in terms of growth of this industry. while in saw like one high digit single digit to healthy two-digit growth they are confident that it will continue this year and it's also now the small fear which is very very interesting. the small construction firms are confident that this growth will continue. so this is great. >> have you seen evidence that gas prices coming down has sent that money to people born to contractors? >> we know that people are just so passionate. and the construction guys are telling us that they need to hire more and more people. the money is coming from different places but the home owners are definitely ready for it. and the industry's definitely growing. the economy is recovering there on that front. >> you've expanded just this year. u.k. australia, germany,

france japan, and russia. >> correct. and the rest of europe is coming this year. of course, japan was just the beginning of the expansion in asia. we're very excited. we're going to be live in more than 20 countries by the end of this year. >> so you've launched a marketplace now, you're beginning to actually monotize this really large community that you have tell us about how first of all how the marketplace is going, and secondly where do you think that's going to go going forward? >> before the marketplace, i have to say this is not the beginning of our monotization house community told us a long time ago how they want us to monoetize and we have a big professional marketplace on houses as well as other channels. but the product marketplace is something that we launched about six months ago. at the end of 2014 and its been growing really fast. i think the fact that the venders were there, the manufacturers were there as well as the homeowners ready to do

that, and they really wanted house to become the place where they do everything. from the inspiration, to finding the professionals, interacting with the community, all the way to getting everything they need from house, all the product and materials, vanities towels furniture, so obviously, this has been very very good. i think it's a good service. >> the term unicorn gets thrown around a lot in this town as we learned and of course seen firsthand this week. does it bother you? >> not at all. >> really? >> not at all. i think that look we have to be honest here. there are some great companies there that are valued at more than $1 billion, and they are transforming industries they have substantial financials great businesses while you have some hundreds of millions of dollars, companies that worked way less but frankly, they don't understand what they are doing. there is no business end. you have to ask yourself why,

and if the why is there, then it's worth it. >> is your appetite to be a public company been lessened by the fact that you can raise all this money? >> i think for us money or public or not public was never a goal. we are here to do something very meaningful for this industry. this is how we started it and this is what we're doing today. we want to make sure that every homeowner and every professional in this industry will rely on house and will know that this is the best place to go to. to make it your home dreams come true. and this is what we do. it's really not about public or private. >> i'm curious as to how you weigh that. it may not be about that we see so many companies that in a different time would have come public earlier in the gestation so to speak. you must think about it even if it's not necessarily the end goal in terms of what benefits the company to do what it is you want. is it better to be private than public? >> i think that the best thing is to have all the options open.

and when you're an independent company, when you have a substantial business substantial financials strong behind you and you are really making a difference in leading a transformation industry then you can decide at any given point what's the right thing for the company? we were always very focussed about how do we do that? how do we create the best product, the best experience? it's not about that and it doesn't bother us at any given point, house can decide what's the next thing. what's the right thing for the company. >> great seeing you again. >> thank you. >> congratulations. >> final thought from you, roger. >> well, i just think this is a big day for apple. we'll get earnings later today. the thing i just believe really strongly is you want to own the things you're happy owning both in bull markets and transitional times. we're, i think fundamentals are really, really strong in general, but this is not a good time for investors to be going out on the risk spectrum. i think you want to the stay focussed on the things you

really believe in and enjoy the prosperity while it lasts. >> wow. yikes. scared here. >> dude it's a market thing goes up down. >> i'm aware of that. >> up, six, seven years in a row. one day they'll go down. don't lose sight of that. right. just say, not talking about it doesn't mean it won't happen right. you just have to be prepared and recognize that one of the days the market will go down whether we like it or not. and we need to be ready. >> always a pleasure. >> welcome to san francisco. >> we're here all week. >> john ford has a look at what's coming up in the next hour. >> hey carl well of course apple, which we've been talking about already this morning, we've got iphone numbers, return details, also phil living will join us and cole rise from instagram with his own photography app. we'll dig into mobile and what's next. all coming up on "squawk alley."

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visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here. let's give you a check of the markets here. stocks hanging in there with gains, we've lost some of the early gains in the market action. the dow's up 46 points, s&p 500's in record territory building on the record close we saw friday.

and the nasdaq also flirting with an interday record which simon is 5132. >> this is just the beginning, steady report this week. lost the gdp data which is going to be poor plus of course the -- >> the fed. >> no news on wednesday. in the meantime, it is a great new dawn here on cnbc and it's coming to you from san francisco. let's hand it over to "squawk alley." >> thanks so much simon, good morning, it is 8:00 a.m. here at cnbc's new one market headquarters in san francisco, california. 11:00 a.m. on wall street. and "squawk alley" is live. ♪ welcome to san francisco, home of cable cars scenic vistas and one market. >> welcome to the rock. >> enjoy the ride.

connery, cage, harris kooent knee ya. >> your best. losers always whine about their best. winners go home and the prom queen. >> squawk alley. >> and we are here live at cnbc's new home in san francisco. one market is the name of our studios. joining thus morning, dan rosen's ceo of coo of yahoo. >> good morning, welcome. >> nice to be here. >> how's the weather? >> this is going to work. we are on set on a busy morning with the market at any highs. let's talk apple as well. apple earnings tonight after the bell. the company expects to report 216 a share, revenue of just over $56 billion. comes as new