wouldn't you just take. >> there's still $900 million. >> you think he would take a step aside. >> you've seen most of it come. >> tomorrow squawk on the street starts right now. make sure you watch that docket. >> good wednesday morning. welcome to squawk on the street. live from inside our studios this time at 1 market in san francisco where it is a lot warmer at 6:00 a.m. pacific. i'll tell you what's running cold today is the pre-market. here's oil but more importantly the 10-year which cracks 2% for the first time since march

yesterday. our road map begins with twitter taking a tumble after earnings leak early. rick joins us first on cnbc later this morning. >> and starwood searching on a possible buy out down the road. >> big reversal in go pro shares. go pro guidance beating estimates. the u.s. economy expanded by only point 2% in the first kwauter. this has businesses slashed investment and exports fail and consumer spending accelerates. they plan to wrap up their meeting a few hours from now. investors will be paying close attention to some hints. be sure to watch cnbc's special coverage today, 2:00 p.m. eastern time. people are not expecting much

jim, and much of today's data argues much so. >> today is a surprising today whether every trend we're looking at be for earnings or these numbers being turned on its head. when you see the gdp number if you're taking a step back what could the fed do to make the economy grow faster? this is a devastating number. obviously, the future has went down a lot. people are so afraid the fed is going to be out of sync with the numbers. if they are, they have to be as dubbish as can be. it's not the weather. it's the fact that the dollar has gotten in the way of major industrial countries and the fact is we were becoming an oil based economy and it looks like it's hurting. >> how do you get more dub bishbish

if you're the fed? >> i think fisher understands the dollar better than anyone. we didn't get it so we're going to be on hold. >> fisher has been the guy sayingsay saying by year end. >> i think he realizes if the dollar spikes further you're going to get more companies having to do what ibm did. they're up a lot but i use that as an example of constant currency, they looked okay. if you use the actual dollar amount it looks like the business is going away. i don't want business of america to go away which is what's going to happen. the dollar is too strong. >> well it may stay there, although you believe perhaps it's not going to go that much higher. >> if the feds say listen like we're thinking about june september, about the fall i mean i think they should say listen, i'm not thinking until the super bowl. this is in san francisco. that's just reference to being able to say we're in san francisco. >> yeah, i turned around and

realized. >> by the way, he got the no coat memo but the no tie. >> i couldn't be bothered. too much going on this morning. >> this is one of those numbers where you say it's not the weather, it's the dollar. >> moving on thewo to twitter. weak performance of its direct response and the accompany kau stock fall more than 20% yesterday after results were released prematurely. we are going to have a live interview with morning with twitter's ceo dick costolo. second worst trading day in the accompany's history, jim and down as much as 24% after the bell. >> it was interesting that the release which came out early, this was not twitter's fault. everything else was. when i go over the quarter, look, there's obviously a lot of

work to be done here. the business is growing fast. not fast enough. the ease in which people get on it still unclear but it was the recognition that this is not as good an advertising model as facebook. the demand is not there. people, the advertisers don't feel they're getting bang for the buck. once again, they changed the metric. my favorite line was mark made at the end. it looks like you moved to cpx or cpa, whatever you want to call it meaning every metric change is a call. i'm in a forgiveness mode and san francisco is a much more live and let loose place. they open the golden gate to us. these guys fell off the golden gate. i don't think they should jump but i think the question to ask is is there another way to mono tiez people? right now, the advertisers are

bucking the response. >> you mean going to a subscription model? >> we're going to talk about starwood and they put out all these in which they're examining any and all options. they need sopme help or someone else has to figure this out. >> people are upset by the fact they point out it's not that the user base is not growing. they're relatively large and know a lot about why the inability to mono tiez it to the way. they feel as though it was only in march, i believe, right here in san francisco morgan stanley had a large tech conference. anthony presented and a lot of them went away from that. you're two months away from the quarter with a positive feeling.

>> all those props about sun trust. >> sun guy he called it. >> sun god. >> he moved his price target from 58 to 50 and with all that takes it to 45. >> because he's struggling like the rest of us. i feel like the receiver there should be flags here. as david pointed out, it looked like they had figured things out. even as they were talking they had not figured things out and what i'm concerned about here is that there are now people who say the business is worth very little. i think the business is worth a lot in the hands of someone who can figure out how to charge. >> which is all of us of course, as active users, we understand the power of the platform but they're not making money off of us. there's got to be a way to do that. >> there was a tone to this conference call which basically said maybe we were a great business and we're not a business right now. david, the questions were

hostile. it's beginning to become a hostile conference call. when that happens people are saying. >> when you're drawing parallels to start with you're saying that twitter should say they're open to all kinds of strategic options? >> i think they should be open to all kinds of strategic options because right now, when i listen to it look i felt things were coming together. i think a lot of this call was kind of like a plea. it was like a plea. you know we don't really know what's going on. we do have a lot of people like us. we change the metric every time. you should give us more time and the clock is ticking. i just don't know whether it's a bomb at the end of it orty a bib. >> people on twitter want to know and i want to know are you going to start calling for? >> no. it's just entirely possible that

i think he's the innovation really spectacular here. just started. the innovation is good. i hope the execution does not appear to me. >> there is no execution. >> why wouldn't you necessarily want somebody else to come in and see. >> i think you need someone who can marry the innovation i think dick is bringing to us with execution. i think that anthony could do it. i still believe in anthony. i'm stunned that it could be as bad as it seemed good. i keep thinking maybe they can pull a microsoft. next quarter. remember microsoft was hated at 41 and then they pulled it off. i'm hoping for a resurrection. >> at least one report is saying. >> i'm completely stunned. honestly i love that stuff. when they did not go and say

this is what i was worried about because i think he's concerned about direct response. he's worried they can't charge. they can't charge what people think. it's rare you hear like on the facebook conference call. he's saying we turn down advertisers all the time. why? because we don't like what they're doing. these guys aren't turning anybody down. >> no it's not inventory, it's a demand issue. >> on facebook, there's a guy that answers the phone. >> facebook's engagement is off the charts. only growing. >> having just recently been engaged and married, i'm telling you the engagement is. >> you were engaged for what? >> nine year engage. . >> deeply engaged. >> they need to get monthly average users and daily average users and they haven't. it's worrisome. we've got a lot of questions to

ask. i'm being fore given. there's an echo system developing. there's also the rain forest being chopped down. >> let's move on to starwood this morning as i'm trying to do a number of other things. starwood announcing sta -- strategic options. quarterly results also this morning. what i can tell you here is we had senator in there. it's not typically an activist fund. has a lot of hedge funds in it. i'm fairly confident that thewith the likes of jana and the third point owned the stock. have they or were they going to become public? unclear. starwood knew this.

starwood, of course has an interim ceo currently in the job. mr. aaron. >> i want to talk about that. >> so they wanted to get ahead of us. that's essentially what's going on here. there's a feeling amongst this large hedge fund component or stock price that this accompany conceivably would be better off in a deal that the synergies, whether it was a hilton or marriott. by the way, i'm not saying there's talks going on because as far as i'm concerned there are none. the synergies, if you were to pursue a deal, it would be quiet strong and you would be able to realize the stock price far higher than you can by executing the new plan the ceo puts in place. that's what happens is the con solation community may be there. you often see parallel tracks and exploring strategic alternatives. you're not going to hire a new

ceo if you're going to hire the accompany. value act promotes what? he ran vail and ran a cruise line before that. he's a board member inadvertent inadvertently involved. he turned out to be an internal activist. i think he was basically saying you know what maybe we're worth more to others than ourselves. this is the kind of internal activism we're seeing some felt dupont had. we're responding before you get to us. adam aaron was as disenchanted with starwood's growth as the investors were. he's saying we're going to be open minded. we are stewards of this accompany. we want to do what's best. listen, if you bid maybe we're worth a hundred.

if you split us maybe worth 90. the slowest growth of the majors and somewhat profitability until today, maybe we're better off alive with someone else than slow. >> it is early days here. >> it's exciting isn't it. >> to your point, they are getting ahead of what might have been distracting. >> right. >> a distracting activist campaign. nothing says it was going to happen. the two firms i noted there, it's unclear whether they were going to come out or do anything. they were certainly making their presence known in the board room conceivably. there you go. if that's what you got from starwood, none other expected by some. >> adam aaron is a guy who said listen, i'm coming in here and remember the statement he made? i'm not really an interim ceo. i'll blow the doors off. and he has. >> one of the founders from modern day frequent flier system the guy has been around. >> he's fabulous. i would put i shake in every

sheraton. >> it's not too late. >> so you like the superburg burger now? >> all i know is this view makes me not want to stop turning around and look. >> you think the twitter interim's may want to turn around and look. ? go pro come zamora results give a big lift to the stock and the man that will become ceo of ebay and get you one more look at the future as the q 1 gdp slows. live from one market in san francisco in a moment.

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go pro posted better than expected quarterly results. plans to expand offerings in china by the end of the second quarter. guides revenue ahead and earnings ahead. >> so good here. really kind of incredible.

kind of like they discovered it. this is the echo system we thought was going to be building. now it's finally happening. talk about a situation where they were hot and christmas happened kind of like that couples day. it happened and people gave up on the story. the people go pro didn't give up. this is an impressive quarter. i've got the china momentum verses say gambling. they're not gambling in china anymore. they're a go pro. it's look there's no flies in the quarter. >> still a long term debate about whether they're a camera on a stick or turn into a media accompany with abunch of verticals for people who want to watch people play golf and play with their dogs. >> just like periscope and twitter, you don't want to get too invested. it seems like they have this market to themselves. when i see something adopted like in china, i say there's a

lot of people. >> i did want to move on to a story we've been following. what we can tell you now is mylan is increasing its bid for perrigo right here right now. mylan raising its bid from 2.3 shares which had been 2.2 and $75 a share in cash. it had been a $60 share bid plus 2.2 shares. that now moving to 2.3 shares and $75 a share in cash from the accompany. it's a fairly significant raise and mylan for its part which you know has been engaged in an interesting correspondent to say the least for teva had made that offer firm last week.

it had given us census for the mix. it had taken trust off the table conceivably. it didn't raise the price last week. they're talking about it doing as much as what they argue 25 times perrigo's last 12 months. now, that being said, you're going to have a big debate about the uneffected stock price of mylan. mylan is going to say we based the 25 multiple we're offering here on a $68 stock price. that was the price our stock obtained when we first announced our perrigo bid. the market traded heavily and stock ups sharply. teva on the other hand say that's not the stock price. it's closer to 55 bucks a share. that's where your stock was before a lot of these rumors going to come after you came in. even on a day in question. a lot of that move up was not

your bid for perrigo. there will be continued debate about the uneffected stock price of mylan. they are raising bids significantly for that accompany. >> take add vanlt aj between t-- advantage. it's brilliant. they just hate teva. >> you said it. that's why i love having you here. you'll say things that i think but i won't say. >> that's mostly my job. i am your inner voice. >> i will say this. rob corey, the chairman of mylan who i said earlier is fairly free particularly one that starts with f. in that five page letter to teva there was not one expect people who read it said they were actually filled with them.

>> the late george would have filled in the blanks. >> you're like the devil on tom hulse's shoulder!. >> yes. i was going to mention lobotomy. if i could some how get this part and put it right there, can you imagine what it would be like? it would be exan explosion. >> stay tuned for our live interview with dick costolo. futures still weak. squawk on the street is back in a minute.

time for the mad tashdash. four minutes until the opening bell. >> when you go to see dick costolo. >> when he comes to see us. >> when he comes to see us i want to tell him as bad as it is. how about a sichtuation where the cfo, there's a surprise loss and the justice department announces. >> the cfo is going to depart in june. >> dick listen you're not the benchmark, lumbar liquidators is. this was one of those situations where literally they did another one of these calls and told you not to worry but that was premature. reports of this accompany's death are not premature is what

you feel like if you own it. now, they could pull out but this is going to be a prolonged pull out. it feels a lot like when kfc and the dpochlt and china went after them. i don't like this story and i think people are going to say the credibility is shot. just shot. it's not liquidating. whatever they're doing now is not working. i think they sandbag people. this is a terrible thing. they made people feel much better. they're claiming the last month was very bad. this was worse than that. >> steve is a terrific guy. a great business man. they had no choice. they're cutting the dividend from a buck 50 to 50 and they

still have to build this hotel and more hotel rooms. there is much to be talked about here about the chinese government again. just deciding look this is maybe we don't like being rich gap letters. this is the junk it problem that they just don't seem to want. very tough. >> a lot of talk about a specific story. a lot of consumer discretionary has not worked. failed breakout in apple, whirlpool, coach container stir, winn. what's up with that? >> i think you really do get the slow down setting in. remember that's not recession but a lot of stocks got bid up with the idea that they obviously guessed going down and jobs are better. it's front and center. that's why this market is

looking. >> why 10-year? >> that's the wrong thing. >> a few more basis points this morning, is that feeding? >> you don't like to see the dollar getting weak end bonds. there will be people hiding but people that will be like regional banks people will go to. carl, you weigh it out and the way people are so afraid that the fed will say anything tougher and the whole coach. >> you've also got people taking risk off kind of stuff going on. that is continued and it sets a cycle in place. >> look ups races priceises price.

apple may have had a failed breakout but a fabulous quarter. by the way, western digital went up p.c. growth. >> let's get to the opening bell. back at the n.y.c. this morning. of course, get you a look at the s&p at the top of your screen. at the big board in viva partners a supplier of utility grade wood pallets celebrating the epo today. a mobile technology research and developing accompany. a lot to watch. buffalo wild jim, i've got to talk to you about the 7% comps that were missed. >> they guided down for the next month and the chicken wing price is just escalated. there's a line in the conference call that is scary to me. we have confidence in the u.s.

food supply and safety requirements and they haven't seen a pattern differently because of the avion flu and i think holy cow, the flu and wild wings. i felt cost going up and labor too and this has been a great growth story. they're not making as much money on liquor because there's no carry out. this was a very discouraging thing with buffalo wild wings. >> is panera much better? >> panera has activist in there saying we've got to buy every share and they have one of the biggest buy backs. that's a 2016 story. the buffalo wild wings takes your breath away. 41% increase in wings is killer for them. >> yeah. >> maybe we're not covering the turkey and chicken flu

aggressively enough. >> it does seem to be spreading. >> yeah it does. >> it's not to humans thankfully. >> they figured out the pig flu. >> speaking of when pigs can fly, i thought i would mention marty lipton. i don't know if you noticed this letter. he puts out memos sometimes. it has to do with activism. dupont. the king of scorched earth that says say no to anybody. they will run that defense and doing that in the case of dupont says in his most resent memo calls it lessons from dupont. in most cases corporations will

be adviced to meet and discuss criticisms and proposals. he goes on to say they seek board reputation to seek. it may be the best course of action to consider board representation on condition of appropriate stance. >> marty li approximatepton. >> i just wanted to mention that. >> the old build the barriers is saying let them in? >> this could be the turning point. marty lipton is saying maybe let them in and he specifically references the dupont situation and the importance of whether you like it or not of the proxy advisory firm such as i.s.s. in this case. we'll see. i did want to mention that. >> thank you for giving me that

opening. you mentioned the consumer trade fading. indus tree yal in industrials having a descent week. >> i think people want to believe if the dollar has indeed peaked you can get back into this group. i think that one of the things the problem with that is these companies still don't have great compares. maybe we're starting to think about the second half. i think there's some evaluation issues here if the numbers keep coming down. it's hard to buy stocks when the numbers are coming down. what's happened is the numbers are going up and people don't care in a lot of situations. numbers going down for the industrials and absolutely if the dollars peak you want to be in the industrials. >> mastercard up a buck. $0.89. purchase volume up 12. >> that was very impressive because we had been very concerned. very concerned that that dollar was going to kill them. mastercard and visa both doing

very well. a lot of the companies we've been talking to are trying to disen franchise credit cards. firms are saying we don't want to big interest charge from credit cards. visa and mastercard are not in that business. they're just in the transit action business. that's why a lot of people are hiding them. when i say hide i mean they don't want risk. >> right. let's get to time warner shares. flat. accompany reported revenues rose 5% to $7.1 million. adjusted income up 12% what they're saying is a record 1.8 billion for the first quarter. appeared to be a strong report although the conference call was going on. they did seem to benefit from

stronger advertising although lower expenses. weakness at hbo which was a bit curious although it may be something explained on the call. they did beat us on the eps line although they maintain their guidance for the year at the same place. it's not clear why they moved that up. they took break downs last year on the programming. by doing that you lower the cost basis on that and therefore, by the future if your still selling that we'll keep margins on it. again, it's up let's call it $0.50. >> good piece in the wall street journal about how tv reaches people. this article was about comcast making a statement. i think that it's important to recognize that time warner does modify modify.

>> yes. >> they can just run these same programs. remember when you talked to jeff who by the way is a great american. he would tell you to run shaw shank every night. >> who owns stock? >> the fugue ti.itive. >> how could you not watch? whatever you have to you do. >> mar morgan freeman with the voice over. he's a monotization machine. >> really quickly, kraft beaten by a nickel. >> kraft, you go natural and organic and you see people say it's too expensive. you go kraft, i've been a big believer in kraft. i think this is the one they huddle in and a lot of activity. they can blow it out internationally. the slow growth rkts no one's looking at it now. they're thinking about what the

future is going to be like with heinz. >> really quickly, we did have a nice party here at one market last night. nice turnout. big hitters out here in san francisco. nice photo booth. i know you made the rounds. >> look it's different. i have to tell you, there is an optimism out here that is pretty exciting. really exciting. >> yeah. >> david, that outfit you have is that that same armani? >> it's the vest the fabulous wardrobe people sent to my hotel and i'm never giving it back. it's mine. >> most impressive by she's so self-afaced. sometimes you get taken back by someone 17 years. you look at the chart and oracle is rather amazing and she's done a fantastic job and sometimes when you get off a a desk so to

speak at a party. >> ceo. >> that's a piece back to 2109. hey bob. >> good morning, guys. you are looking terrific out there. every one of you and inside you're looking spectacular. inside looks great as well. unforchau -- unforkmau in thely, not looking great. we have not recovered at all. everything is down a bit here. you can see broad sectors down a bit. did you see some of the details? exports down 7.2%. look at the crazy numbers. imports up 1.8%. that's the strong dollar. it's killing things around here. we saw it in the earnings rortd reports today. look at hilton. i'm going to pull up the ownership numbers for you. this was in their statement. constant currency up 4.7 pest. this is for the ownership part of the country.

actual dollars down 7.4%. that's the impact of the dollar. take a look at hilton. they came in like with the expectations. 2015 guides on the conservative side. see the stock doing nicely here. eaton, this is a big multi industry. they're all over the world. they had a 5% decline in sales. negative currency cost 6% decline in sales. it's just killing these companies. they still did pretty well. i'm emphasizing the dollar impact. we would be so much better if the dollar didn't have this impact. praxair revenues 9 below last year. 8% because of the negative impact from foreign currency. their numbers on the light side.

my theme simple here. dollars killing he havef revenues. u.s. steel numbers rather disappointing as well here. let me talk about the gdp numbers. unusual big miss here. 0 0.8% in the estimates. the s&p positive 60-70 pergs of the time. an average of 0.16%. i would say this is a bit of a wash. little more interesting perhaps is the biggest gainer and it's defensive names. utilities do well on a day like today. they're up 83% of the time average return 0.12%. little bit indecisive on that. i spent the day yesterday with a terrific charity day. steve and the crew did a

terrific job there. i spent the day with katy whose a technical analyst. she reports out we're at new highs. the breadth of the market is continuing to expand. 25% of the s&p has gapped up in the last two weeks since earnings have come out. she believes they're gapping up because earnings are a bit better than expected. this is important because in the past we have seen markets stall when the breadth stalls out. the leadership becomes narrow. that is not happening now. we're continuing to have fairly broad leadership. my bet is they're going to blame some of these concerns with the week first quarter untransitory concerns as being weather as well of course as the weak oil and they're going to say that will probably reverse. i guess the question here, david, is whether they feel the strong dollar is going to reverse as well. it's off of highs in mid-march but a squeak here again today. back to you, daitd. >> yeah thanks very much, bob.

we were talking about that earlier. let's move on now to another subject we've been following closely, mainly what's going to happen to time warner cable? i guess we're going to get earnings from that accompany. i believe they're due to report tomorrow. that will give an interesting report on how time warner cable is doing given the fact that it is no longer going to be acquired by our current accompany comcast and those numbers become more important. all that being said i can't update to a certain extent on the continued speculation i guess what you still have to call it. any number of conversations with the people familiar with a matter. they would in fact be coming at some point with an offer for time warner cable. i can tell you now there's already outreach last friday in the form of a phone call between tom rutledge the ceo of charter and his opposite. that's all that took place. a brief phone call.

there's an expectation amongst people again close to the situation. those familiar with the matter close to the situation. ones we like to use that. in fact meetings will take place after time warner reports earnings. perhaps a high likely hood that the two will get together next week. the expectation again is any will be private in nature. it will not be a public matter or be leaked publicly or be put out there for people on the base of time warner cable on the accompany. they're going to try to get something done to the extent they can privately. the question, of course is what is the price they're going to be able to offer for time warner able? the expectations are that time warner cable is not interested in taking anything that is not at least 170. you never know. negotiations take place. charter is in a position where it's going to have to figure out. how much cash can it offer?

it's a accompany that can do a good job operating with high leverage. some believe it could offer a hundred dollars in cash and the rest in stock. you might have liberty again participate in some way. the synergy in programming are thought to be very high. we'll have to wait and see. this is not going anywhere. this is still moving ahead. key point first will be time warner cable's earnings tomorrow and by the way, there's conversation i believe some reporting about cops. maybe late last week or early this week. they're not interested in participating at all in con sal dags. the key considerations continue to be charter from time warner cable and many say why wouldn't time warner cable be charter. that doesn't appear to be in the cards. >> you said something that that reporting about rutledge making the call friday. that does explain the actions in stocks. >> when a stock doesn't go down it's wet. it's usually an unrealistic.

this industry maybe they just call it debt. >> charter wanted it. we know they do. they need a growth strategy that includes acquisition. that's a key part of what they're doing. great land is not being created. many people believe they will acquire. what are they going to do? >> what you're saying is this industry doesn't have the growth. they have to buy others. is that fair? >> for them. it works in the strategy and considered to be a strong operator. not every accompany is capeable capable of doing that. >> is it ever an option? would they think about buying a program? >> you mean buying content like comcast did? >> like time warner use to. >> that comcast is i don't believe so. >> there's not a lot of cable companies left to buy.

>> no, there aren't. again, it will come back to what's the number and we'll be updating you on that if we find out. >> gooding reporting. >> phones are helpful. i find the phone. >> when someone else uses the can, i charge more. i'll bring it public next week. it's $7 billion. >> way to go. >> but your last round is awesome. >> my string cans. >> it tushes out it's much more value than i thought. >> all right. we need to move on says the tin can in my ear. rick joins us from chicago. rick. >> thank you, david. let me look at the landscape here. we get a gdp number heavy on inventories and health care spending and light on real final

sales. basically, strike one, two and three. what does the market do? rates go up. sound a little strange, look at the 24 hour chart of tens. initially 10 years did what you expect. initially went down in yield. boom. it did a u-turn and if you look at the two day chart a lot of dynamics here. yesterday's high the range being capped by 199 ending yesterday. but if you really want to know the answer it's f.e.d. look at the 17th of march. the last time we had a fed meeting, look at the pulse of the chart. that's the fed chart. look at boones. it has the same pulse and a very compelling reason why you never use percentages on yields. they basically doubled in 30 hours as we now are flirting with above 25 basis points. it wasn't that long ago we traded low teens.

it wasn't that long ago we traded seven. look at the chart on the 24 hour going backwards and you can see exactly what i'm talking about. let's look at foreign exchange. if we look at the euro verses dollar, yes, it's up up and away. haven't seen these levels since the early part of march. the chart of the day and everybody scratching their heads about the long head well it's the yield curve. it's flattening meaning you sale the long and buy the short end now because the reversing of flattening. look at that. it's all steepening on fives verses 30s. carl, back to you. >> thank you so much. when we come back the challenges fwasingacing twitter. we'll hear what rick has to say in our live interview and what was behind the earnings leak. we're back in a minute.

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can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver? breaking news regarding that leaked twitter earnings released

yesterday. yesterday at 3:07 p.m. eastern shareholder.com inadvertently released holdings. caused kbiby operational issue that exposed for 45 seconds. during those seconds the site was scraped by a third party. we refret the incident and remain fully committed to providing the highest quality investor relations and communication products and services. it's a black eye for nasdaq. >> well it's important to point out it's nasdaq and not twitter. that's a positive. >> you don't want these third parties getting involved. there are these things scraping all these websites looking for anything. >> what about twitter? the only one i can think of. >> let's get settled. >> stop trading with jim.

>> all right. twilight of the a comes. i'm talking about the 3 d idols. what people are looking for $0.30, again, you can share this with dixie and twitter. 2-$0.04. again, we're looking for new benchmarks. it's funny. when i met with entail they're doing the three day with the actual accompany 3d. it's not that the business is bad. there's definitely a good business. don't forget hp is coming in with an absolute killer 3zd product. we have one of my favorite companies tonight. rcpt i think they're the next. we've been doing private companies out here. i don't know if you guys use it for all foods? i don't know if they use that

pricing and make deals with she chipotle and starbucks. i would have put in a hundred shares for my broker. that's what we've been doing all week. >> earlier in the week you said the current market dynamic is a vicious squall that may not be finished, it could override terrific earnings for days and days. >> yes. when you have a situation with interest rates going higher dollar is going down and the fed may be able to say this is west coast. the reason gdp and weather. that's with interest rates going up here. people saying give me a break. i'll hide anywhere. when you buy a accompany and i like eaton, sandy cutler. when you buy companies selling numbers and you have go pro, they show you come companies can

trumpet. microsoft is the pc accompany. >> my favorite tweet of the morning, a guy tweeted a picture of you drawn by his 6-year-old daughter who said she's one of your biggest fans. >> i thought that was great. we went to the children's hospital and i looked inside my brain. i think the 6-year-old captured what my brain is thinking right now on the nine hour sleep we've had the last five days. >> we'll see you tonight and back home tomorrow. jim cramer mad money 6:00 p.m. pending homes up next. don't goway.

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good wednesday morning. welcome back to squawk on the street. one market near san francisco. sarah and simon live from post nine back in new york. take a look at the markets. equities are weak. interest rates creeping up to despite a disappointing qdg. >> braelking news now on pending home sales. diana with the numbers. >> sarah march pending home sales up 1.1% month to month exactly in line with expectations. this measure of signed contracts to buy existing homes is up for the third straight month and now 11.1% higher than a year ago, the highest level since june 2013. pending home sales are a forward indicator of closed sales which saw a big jump in march. realtors say demand is especially stronger in metro areas that have seen firmer

economic growth. they're seeing traditional mortgage buyers. mortgage applications to purchase a home are up dramatically in the last month although they did stall last week. rates below 30% since the beginning of the year but today's gdp data may send them higher especially if the fed is raising rates. regionally sales down 1.5% in the northeast. up 4% in the south and down 2% in the midwest and up 1.7% in the west. of course online realty check. >> thank you vcht. in the mary, good morning. >> good morning to you simon. this morning the s.e.c. any of you shareholders who receive your proxy know that you

have that summary compensation for ceo's and other named executive officers. the s.e.c. is proposing a couple of things. first of all, the data you see, elements you see in the compensation table would be the same except lld be adjustments made to the values of pension and value of equity awards meaning they would be valued on the day of vesting rather than the grant date which many of the companies put the value on the grant date as opposed to the vesting date. in addition they have to outline what the performance their accompany is and to use this or display this. the s.e.c. is proposing companies use their total shareholder return and that can parrot to a peer group disclosed in the proxy. these details are going to be proposed today and they're going to vote on them.

dm r . >> thank you very much. karen joins us. are we too loud that's all i want to know. >> yes. very messy. >> they're going to be leaving soon. >> we're thrilled to have you here in our beautiful offices. >> you had a good week. some companies haven't. what comes to mind this morning? >> twitter. they didn't need this double wammy. it's not a good explanation anyway. it's bad all around. i think this is a accompany that needed something like this to happen.

adam bane has been the big star and they kept growing the advertising. here they're facing facebook google mothers and can they turn this business into a heavily mono tiezed business and is it a small business or need to be attached to a bigger business? that's all going to come up as should it be acquired, should dick be replaced will that fix the problem? >> you thought they would be dressed up for sale. >> i seep saying it. it's one of those properties. they got a situation where they got owners that can control it. there's something going on with investors. there's all kinds of companies which have revenue problems and revenue challenges but this one has gotten to be the focus of a

lot of people who seem to be any miss step. >> they seem to be backing off a bit after the last quarter. they seem to be establishing momentum and that was very recently they seem to get a lot of people stronger. >> i think that's the thing. they're on the cusp of it and they got quiet a few almost like a whisper campaign in wall treat with this accompany. bad news seems to be attracted to it. usually, you change the ceo to get out of the cycle. so there's going to be a lot of pressure except that this board seems to be backing especially the two founders seem to be backing the ceo. >> what's the likelihood facebook would turn would pivot to this broadcast model and step on twitter's throat? >> every time facebook does that, they fail. they try competitors to snap

chat and go blank. i think they've had troubles with that. they're good at their core business. the old saying the value jim had was remember to keep the main thing the main thing. this isn't an adjacent area and facebook is moving into communications. that's what this is. a different kind of communications. years ago we wrote the story about facebook trying to buy twitter. it was a deal very close together that didn't. they would certainly owe someone. >> we're going to be around a lot more. >> you're staying at my house, right. sfwh cara thanks. >> sar are. >> all right carl see you in just a bit. in the meantime we're watching the markets and digesting the reaction here from the disappointing first quarter gdp number. you're seeing weakness across the board. interest rates and treasuries are higher and the dollar is

weaker against the zero. ethan joins us. ethan, we expected this number to be bad. didn't quiet expect it to be this bad. does it raise questions how quickly is economy can rebound and shake off the effects of the stronger u.s. dollar? >> it's like a disaster. the same thing we saw last year when we came in the fist release of gdp expecting growth at 1% and came in effectively at zero. i think some of this is the normal volatile the numbersened we will get a bounce back. economy is not in that bad

shape. the oil price dropped and trade off half a percent of the u.s. growth. instead slicing 1.2% off growth. those oil and dollar shocks may be worse than we thought. >> you can see that 7.4% slump in exports for the u.s. dollar. you can look at business investment. you see what its done to corporate earnings. the worry is what if it's not transitory? yes, the dollar has corrected and oil prices rebounded but if that trend resumes again, this could be a major head for the economy, could it not? >> yes. it's a question of how long it lasts. right now we're seeing the bad parts. we're seeing the low oil prices hurt. we haven't seen the consumer response. where's the consumer? they haven't responded. right now we're getting the bad

news on the dollar that's not going to go away. it takes about a year to feel the impact of the dollar. that trade drag i hope it's not what we just saw in the first quarter. it's not going to completely disappear as the year goes on. >> we'll wait and see what the feds say this afternoon. the rubber really hits the road a week from friday. obviously, with the employment report. i guess the crucial question here is does this slow down in the first quarter automatically feed through to slow a job growth? can you see from those figures that the jobs report will be weak and we can push back the federate hikes then? >> i think this report today is kind of the final nail in the coffin from the fed. i mean they need to see consistent better growth. they want to hike rates but they want to hike in the context of

better data. now they've seen two in a row including a zero quarter to dig out of that hole. they need to see two solid numbers in a row that means september is the earliest they would go and they could wait longer. >> the expectation on the fed, i think it's been clear. the question is would it be a moderate rebound? i talked to him, ethan, a little less than two weeks ago. we talked about poor economic growth in the first quarter. i want to play you this clip as we wait for the fed's statement this afternoon. do we have the clip? i don't think we have it. i'll sum it for you. he said the economy was poor in the first quarter. i asked does that impact the interest rate going forward and he said likely what we've seen

is this pattern over the past five years that the first quarter is poor and whether it's strong or not, clearly the fed is itching to do something and the extech pags ispectation is it's going to happen this year. >> it's similar to 2013. if the data doesn't cooperate, we get a delay in the exit the same as a delay in 2013. i think the message he's sending is we're willing to look past this weak data as long as we get some consistent sign that this was another one of those q1 flukes. as the data gets weaker and weaker it's not just one month. the last five months. the hole they're trying to dig out of is getting deeper. they need more good dayta to make

the decision. >> neal, your former colleague says how bad can the data be with pending home sales and existing home sales all doing better. shouldn't that help? >> it does. the housing market should be benefitting from super low mortgage rates now. it should be one of the bright spots in the economy. the problem is the global dimension where the drop in oil hasn't had the effect we've been hoping for and the strong dollars. the domestic backdrop yeah is better and i'm again, i think we will pick up. i think there's a bit of a fluke around this gq1. i think if you're going to pull the trigger since the fed last went you want to have confidence and you need to see an offset to the weakness we've been seeing. >> thank you very much for

swroining us. >> on yesterday's show we heard from the outgoing group ceo of ebay. next on the program we'll hear from the man who will take after the split on ebay with the incoming ceo next. squawk on the treat will be live and of course one market in san francisco. we'll be right back. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.

the man who runs ebays marketplace is by the way fast approaching. quarter three can begin with july iss. i am hearing it is going to be earlier in quarter three rather than later. is that correct? >> we'll see. it's not totally in our control. we're making good progress. quarter three looks good. >> of course you had a quarter that was pretty good too in terms of making progress. we spoke yesterday to john. still the ceo. still your partner. but i did want to come back to the quarter you had at marketplace, of course and a couple of things you said on the marketplace. an estimated 100 billion of

dollars of value is trapped in people's closets and garages and that's just in the u.s. i'm not sure how you come up with that number but give me some cents. >> i just think it's an enormous opportunity. obviously, ebay was founded with peer to peer selling business and it's now a small part of the business. i think that it's an incredible opportunity. if you think about the sharing economy, you're seeing a lot of the companies here in san francisco. it's about utilization. there's so many things in the world that aren't well utilized. if it's not mono tiezable direct it to charitable purposes could be an incredible relook at that business with a new innovative twist. it's one of the things we would love to do. >> although when i think about it, now, i diddo a documentary on ebay. many many years ago meg was

running the accompany then. i put things up on the site and did a bit after that. i do wonder for those people who have that inventory, if you will, in their garages, are they going to be capable of accessing the site in the way you would want them to? >> for those that want to sale i would encourage them to take another look. they've made an incredible amount of progress simplifying ebay. there's going to be those who don't want to go through the process. for those, we may need a higher level out mediation. we want to charge more for those who want to do more. i think we'll offer services and it will be exciting to see how it works out. >> we've been talking a lot about the dollar for months now and today as well. it certainly impacts your business. what are your expectations there? how are you adjusting in terms

of what's the stronger dollar? >> it does impact us. ebay is a global economy. we don't see any change for that. we're planning for a strong u.s. dollar for a long time given weakness in the euro. we try to make our market plats balanced. at the end of the day fx is something our customers plan for and deal with. we want a fair marketplace where people can import without friction. >> how are you going to go about that? are you using hedges? we are. now as we spend papal out, we'll do more of that at the marketplace level. i focus more on the operational side of fx than the translation

side of fx. i think investors are very good at dealing with the translation aspects of foreign exchange. we want a balanced marketplace so fx has little impact on the operating statistics. >> we're going to look at the two businesses being created by the split. papal very quickly growing and marketplace not as quickly growing. it's a great business and throws off cash flow. i don't think it's going to grow fast. i do it more as a return of capitol business and a slow grower. do you buy into that? >> this is a great business with a top 50 brand of growing user base high levels of engagement and incredible amount of profitability as you pointed out and free cash flow. it's a great business model. having a strong balance sheet and having great free cash flow gives us options. we'll be disciplined about how we apply that. we can apply that to organic and

inorganic investment or return of capitol to shareholders. i think all of those are options and they give us the ability to drive equity returns while we transit form this business which is an important part of the story. >> of course finally, to those who say you'll immediately become a take over candidate. >> i'm 100% focussed on the overwhelmingly future. beyond that i don't predict the future. >> well we look forward to speaking to you during the future, of course when you'll be the ceo of the newly dependent ebay. thank you for joining us. >> thank you very having me. congratulations on the studio it's beautiful. >> it's hard not to turn around ant watch that son. >> soon to be the ceo of ebay. sarah, back to you. >> yep, we're enjoying the view as well. thank you, david. dow market starwood shares are popping. simon has been all over this

story. the accompany saying it's exploring strategic alternatives. no option off the table. what should you be doing with the stock? we'll talk to an analyst when we come back with squawk on the street.

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stellwood is a top gainer on the s&p today after they announced they're putting it up for sale. there have been rumors for some time of an activist shareholder. as you may be aware, they set the ceo for a problem of growth. sending off hotels and indeed racheal raised the possibility there might be some sort of sale. she joins us now on the news line. racheal, you thought it was a possibility. are you surprised they announced it today? >> i am. a considerable number of strategic alternatives already. as you point out, the one thing

left on the list is to possibly hang themselves out for sale or look for top elimination actions. >> this would be a big deal. the last lodging cycle with the $26 billion by of hilton by black stone which turned out to be the most profitable private equity deal. one of your colleagues has run the numbers and suggested on the same multiples you might get a take out at $102 which would be 17 or 18% up site from here. would you agree? >> historically the take out premiums have been closer to 30%. you would have to ask yourself with the stock already running on the news and having run back in february on the replacement of the ceo and the timeshare spent if there still is that sort of premium left in the stock. if there is, it would mean great things for all the lodging companies but would put multiples in uncharted

territory. >> i guess the key question is who would buy? wells fargo suggesting they might not see a brand fit with the portfolios they have and may not have a balance sheet. do we revolt to the idea chinese could buy here? >> i think you bring up a great point. the key would be access to a limited set of brands they currently don't have and that would give customers opportunities to trade up and down. the key thing you have to consider is the quality of those limited service brands they would have access to what their index is and what the opportunity for growth is. for example, could you get a w customer to stay in a holiday inn? would that be something they would be willing to do. would that bring the synergies you would think or is the closest or nearest buyer truly just a financial buyer that's looking to generate a return and

not necessarily for strategic purposes. >> one reason that the last ceo of starwood went was because of the way he handled the shared buy backs and the way he communicated with you guys. they were leaving room to buy continental in london. intercontinue thenal-- intercontinental. >> i'm not that familiar with intercontinental although it has good brand exposure. i would think it has more overlap with starwood rather. you would have to consider the quality of the brands and aoverlaps in the portfolio you would have and the premium you would pay. >> finally racheal, we are actually half way through the reports. starwood has come through.

hilton has reported today, i know that was a main focus for you. we have marriott. when all is said and done what do you think would work begsst for investors? >> i think it's appealing to look at stocks that have activist investors and a possible strategic alternative. i would again remind everybody if starwood does get taken out or merges with another accompany, it's going to underlie the value that exist and remind investors that the cycle still has many years to come and if nothing does happen the stock is likely to trade off. i might encourage people to look at a name like hilton where you have strong fundamentals and good visibility. you don't have to same risk reward profile. >> busy day, racheal. we'll let you get back to you. >> i want to take a look at what's happening in commodities. obviously, looking at oil prices higher as well get in a few

seconds here. the latest news on crude oil eio inventories which have been a real market mover lately. >> that's right. everyone's going to be looking at the inventory number and especially what happened in cushing as well. they want to see a bit of drawdowns in inventories even if we have an overall build. a build of is point 9 million barrels in the united states last week. the cushing number is down a half million barrels and gs lean up 1.7 million. here's what is actually supporting the market. prices 57.65. up 65-$0.70. a couple of other factors to think about you got a weaker dollar index. at a 95 handle and you got to saudis out there talking up the market again saying conditions are perfect. also keeping an eye on geo political events. they're watching the situation

with iran and the warships as well. a lot of different factors to consider here. even with a slight build here prices are going up because it's not as strong as what we've seen in previous weeks. back to you. >> potentially a sign here that the builds are not going to be as big. thank you very much. 57-62. keeping an eye on the markets, dow down 72. s&p down 10 after a disappointing number on first quarter gdp. we'll be right back live from the new york stock exchange and one market in san francisco.

pemco announcing they've hired bernanke as a senior adviser. that's two huge clients. they will attend all quarterly meetings and advise them on issues related to the economy. if you think that he's going to be senior adviser to everyone, he's saying in an interview, this is it. just the two. he'll be senior adviser and he points out in the interview that the fed does not regulate pimco.

right now i turn it back to sue. >> two big names in the news today. here's your other update at this hour. >> the most likely successor to the king. as part of the leadership overhaul there's more with commercial backgrounds for government roles. authorities and local residents continue cleaning out the ruins around a temple. more than 5,100 people died from the earthquake. gun fire rang out last night during a protest in ferguson missouri. several dozen were holding a demonstration in support of baltimore when someone fired several shots. not clear where the shots came from. pope francis calling for equal pay for women. he made the appeal as he spoke to thousands gathered. he warned the crowd men should

not be sexist. that is your cnbc news update at this hour. back to you guys. >> >>. >> thank you, sue. san francisco is the home of levi strauss and accompany. good to see you again. >> welcome to the neighbor. this has been home for 162 years. >> amazing corporate story. well understood. we're asking questions about the consumer this week. people wonder why retail why apparel hasn't done better as gas prices have come in. is there an easy answer for that? >> i don't think there's a straight forward answer. there's a lot of things competing for the dollar today. technology iphone a big part of that. a lot of dynamics come into

play. the consumer has not come back since the recession back in 2008 2009. >> conditioned to spend more on certain things like an apple watch. >> it's a trade off they're constantly evaluating. buy a pair of jeans or apple watch or more time per sms. there's also the question about denim verses underarmour, nike. >> i'm an athlete myself too and workout but i wouldn't walk outin a nice restaurant in a pair of tights. we've been around and selling blue jeans for 142 years. we've seen things come and go.

at the end of the day it's about comfort and we've got a line of products that deliver the comfort that the consumer is looking for. there's no question he has been a trend. there are questions about whether you're in malls and starting to see traffic fall there. what are you seeing from the fairly large store base? >> we are a big retailer. we have 2,800 stores roughly around the world. we own and operate about a thousand of those. >> it is a challenging environment in retail broadly not just in the u.s. but everywhere. very promotional environment.

we've had to be competitive there that impacted our gross mar generals over the last year. we're winning. we build and share in the environment and our retail business is growing. >> you also feed to jc penny and walmart and targets of the world. how does an investor differentiate which of the channels are working and which are not? >> the wholesale channel is important to us particularly here in the u.s. we love our customers and love and partner with them. we're a very important brand. we bring in traffic. we're an important brand. we work with them to grow our business there. we also know we've got to have our own retail business to show up the way we want to show up and kind of control the entire consumer experience. both the main line doors, outlet doors and also e commerce which is becoming more important. >> how important is that

becoming? if i'm a customer and know what i like it would be simply easy to make sure i've got the jeans i want and order online. >> we've been investing in e commerce over the last couple of years. we've built a team now with people who have done e commerce and other businesses. we're investing in technology. it benchmarks okay. we think it could be 25% of retail business in time. >> where we let you go the drought in california. it's a huge story. we've been here a few days. see how it's effecting consumer lives. you're trying to address it in certain ways. >> water is a big deal. i'm the ceo who said never wash your jeans. we've done a life cycle analysis of a pair of jeans and it consumes a lot of water. a lot of water goes into the

cotton that's grown. we reduce that and we've saved about a billion liters of water over the last couple of years which is enough for the city of new york for about a month and a half, two months. but the big opportunities with consumers, average consumer in the u.s. washes their jeans every two wears. you stretch that out to every 10 wears, that's enough water saved for a year. >> a year. >> so there's huge opportunities. i made that statement really to kind of shake consumers out of their autopilot mode. hand wash if you have to. water is a big, big deal. we're very focussed on it. we're constraining innovation to drive lots of water. >> it's a big money deal for

sure. >> it is. >> thank you for coming by. >> see you next time we're here. >> want to move on to a story we're covering this morning. and to refresh for you this morning mylan offers for perrigo to 2.3 a share and $75 a share. people probably expected to see them up on the news. that's not the case. as you see there it's vaguely in the green. it's been down this morning. why is that the case? >> there's a good deal of debate, if you will, about the uneffected stock. mylan says we believe the price uneffected should be considered 68. when you take a look at that and apply to 2.3 multiple to that and add 75 bucks a share you get to a price that is in the 220s or more and it represents a high

multiple. it says no we think the uneffective stock price is closer to 55. that was the price on march 10th before the rumors. now teva does follow through on the rumors and made an offer after they made an offer for perri perrigo. it may make it difficult to get the number. perrigo is an irish accompany. we've talked a great deal about the interest and if it will be in position to close the deal. that's why perrigo may not be up. it's all about what tun if he canned stock price is and how much fluff was in there.

that first bid was 205 but they did not tell us what the composition of the bid was? it was rejected by perrigo and my sources indicate we should be getting the latest bid any moment. >> still ahead first on cnbc interview the ceo of twitter with join in about an hour to weigh in on the quarterly results and the premature release of the earnings last night. we're back live from one market in san francisco in a moment. doug. you've been staring at that for awhile, huh? listen, td ameritrade has former floor traders to help walk you through that complex trade. so you'll be confident enough to do what you want. i'll pull up their number. blammo. let's get those guys on the horn. oooo looks like it is time to upgrade your phone, douglass. for all the confidence you need. td

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shot of your stunning new studio studio. a shot at the euro soring past 111. first time we're seeing these kind of levels since all the way back to beginning of march, march 5th. a weak u.s. dollar ahead of the fed. certainly helpful for your exporters and national companies in the u.s. not in europe where we're seeing 2% plus declines across the board. the german dax is down nearly 3% thanks in part to the stronger euro. here in the u.s. utility sector trading lower. >> that's right. you said lower dollar but higher rates across the board for the u.s. 10-year. utilities are getting hit this morning. down by about a percent today.

teco xcel all down about 2%. currently up about a% after beating earnings expectations and also its profit forecast also topping some analyst. utilities a lagger today. back over to you. >> thank you very much. a week gdp figured today but still the 10-year treasury of 2%. rick is live in chicago. >> thank you. i would like to welcome our guest former fed governor from 2001 to 2006 mark olson. thanks for taking your time today. >> thank you, rick. enjoy being with you. >> let's start with the simple notion. the feds second meeting of today. we were over 2%. the last time was the last fed meeting. do you think the federal reserve

given all the resent data and speeches will they raise rates in 2015? in your opinion. >> in 2015 i would say saw in the march meeting, it was a question of when, rather than whether. and it will be interesting to see if they change the tone in this statement. but i suspect that they will not. i suspect that they will stay where there's a question of when rather than whether and it think it has to be in 2015. >> let's play a game of what if now. what if as we look at last year 2.42 gdp for the entire year. we saw up .2 today. that was only saved by inventories and obamacare-type spending. let's assume we have several years of 2.5% gdp growth. that's the assumption. would you alter policy or stick with 0% rate policy. if that was the high poth his.

>> if you have consistent 2.5 gdp growth you have to have a certain level of inflation and a manageable inflation rate is 2%. you will remember there was a time when certain monty terry experts said a zero interest rate would be adeal. we've learned that it's much easier to manage an inflationary environment than a deflationary environment. so from a monetary policy you want to have rates higher than zero. >> poland to some extent joined a negative yield club. we see that boon yields in 30 hours doubled from 13 to 25 or 26. the break-evens on the five-year in europe are moving high he in terms of what they predict regarding inflation. don't you think that the deflation issue is something that is aided and abedded to some extent by the policy as rates around the globe have many more countries in negative territory? >> no question.

no question the misplacement -- too early a move could have an impact on a deflationary impact. i also think that something that we have forgotten, because we haven't had a to deal with recently. is inflationary expectations. or an inflationary premium on pricing. and they will also have a significant difference if the move happens too quickly. >> in the final 40 seconds we have left sir, let's really get outrageous here okay? >> okay. >> i know deflation and disinflation is the boogeyman, but all kidding aside, sir, in my lifetime i've never experienced any significant disor deflation that is to worry about. and most average middle-class citizens whether in japan or the united states i don't know that it's a bad thing to have steady prices that aren't rising aggressively. what's the down side to that? >> if it's manageable there is

no down side significant. it's only when if you get on the inflationary side it can be different. as europe in particular felt. on the deflationary side you get into japan and other countries have gotten into the zero bound liquidity trap that you cannot get out of and the economy can't grow. that's a real risk. and the other risk is we have so few data points in terms of how to manage monetary policy in that sort of an environment. >> what a great place to end, any statistician knows you need a lot of different examples of something to draw any significant conclusions. thanks, mark olson. sarah, back to you. >> we're going to pick right up there on the economy. first quarter gdp did show that the u.s. economy slowed sharply. the government did cite strong dollar, west coast port strike as some of the reasons, steve liesman has more. the question is does it change anything about the outlook for

the rest of the year and the fed? >> it does. the assault economists don't know if the weak economic growth is temporary or permanent. but the good news is the fed probably doesn't know either. so the overwhelming conclusion is that the 0.2% weak first quarter report we got this morning is a reason for the fed to wait and maybe wait a little bit longer until it's more clear what's going on in the economy as ubs wrote, a we'll have to see a decent growth for that to remain the most likely scenario. suggesting later than september. among the factors as sarah mentioned, severe winter weather and the west coast port vikes. we don't know the effects from the slowdown in energy investment and the strong dollar. q 1 gdp at 0.2%. 1.9% not too bad. business investment down 3.4% and the structures number there, that's the energy or lack of

energy investment showing up. exports plunging that could be partially the port strike. it could also be the stronger dollar. and unexplained is the state and local government rebound. i want to show you the good the bad and the ugly. this is contributions to change in gdp. so consumer boosted it by 1.3%. and there's structures taking off almost a percent. and exports taking off almost 1%. if not for the rising exports, we would have have negative. some economists more confident than others. at ffe they're saying we believe weakness was grossly ex-amg rated. there will be significant catch-up in q 2. i think that's the feeling on the street. a long-running problem in reporting of the first quarter growth. the government has acknowledged the issue and said they're looking into the reason why the first quarter growth over a 30-year period has been significantly weaker than the other three. just one thing on the statement this afternoon. look for the fed to downgrade the economy or the assessment of

the economy. and for the first time in a very long while, remove any reference to specific months or times for holding rates steady. so simon, that era of forward guidance and calendar-based guidance should be gone from the statement today for the first time. >> nonetheless, steve, i guess if you have bad winters in this country, which you do, uniquely for lot of the developed nations, you've just got to accept that q 1 will be tough because it slows the economy down. >> the trouble with that is that's seasonal adjustments are supposed to correct for. and it's not happening and we don't know the reason. >> got it. steve thank you. straight ahead, twitter's ceo dick costolo will join "squawk alley" live to talk about thethe quarterly results and the early release of those quarterly results.

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from infiniti. good morning, it is 8:00 a.m. at twitter headquarters in san francisco, california, also 8:00 a.m. here at one market and "squawk alley" is live. ♪ ♪

zblrks ♪ ♪ ♪ ♪ welcome to "squawk alley" for a wednesday, what a line-up for you this morning, the ceo of twitter, dick costolo first on cnbc benchmark's bill gurley john bourbon with passport capital. tim draper of draper fisher jervon. joining us is tim draper with us as always john ford kayla tausche. tim, good morning to you. >> thanks for having me on your show. >> welcome to our new home. you're going to start with twitter, down another couple of bucks after revenue did miss estimates. monthly active users came in lower than expected. the company telling investors to