>> live from new york where business never sleeps, this is squawk box. >> good morning and welcome to squawk box on cnbc. we are looking forward to the visit from nik wallenda coming later this hour. but first other fun media news this morning, rolling stone is out with it's list of 50 greatest live albums of all time. the magazine says that it tried to focus on ground breaking moments, career making albums and epic jams. coming out at the top of the heat, james brown live at the apollo from 1963. we'll bring you the rest of the top five and other notables later this hour. let's get you up to speed. check this out, right now the u.s. equity futures are indicated quite a bit lower. this is down by 66 points for the dow futures. s&p futures off by 7 and the nasdaq are down by 22. >> a couple of other big stories this morning.

a lot of data to note. heres what's happening. following the downgrade of the economic outlook yesterday. on the agenda this morning job claims and chicago pmi and then earnings central. exxon mobil coming up, conoco phillips, viacom among the names to report quarterly results all before the bell and in global news this morning the bank of japan -- april and september of next year. policy makers decided not to extend an already massive stimulus program. thought they'd follow the chinese. also watch russian central bank. today it is expected to turn it's main lending rate following the sharp rise in the rouble. they find the median forecast is for a rate cut of 10 basis points. a decision is due.

>> stocks making news this morning, consumer review website yelp's latest revenue missed the market and added fewer than expected local adverse tiegz accounts and also warning that current quarter sales will fall short of estimates. shares are unpressure the chinese search giant the earnings beat the street but revenue missed and it's guidance was light. shares for sales rising on takeover talk. they're said to be working with advisors to help it field bids after being approached by a potential buyer. we'll talk to a sales force analyst at the top of the next hour. >> i don't want to dismiss that story but can i say sales force has been in play for five years now. it's possible we would -- if you would have asked me this five years ago i would have told you there was a deal a month agoway.

a little bit of context. >> it is -- okay so it's 49. >> it's huge. >> that is the question and he's starting to do other things. maybe he's interested. >> we went with the stevie ray vaughn tightrope. >> i like that. >> walk the moon. much more current. >> you can wake up to that. >> if you don't want millennials. you have to do walk the moon. >> and you. >> and me. now i'm interested in those 50 live albums too. i have some questions. >> i bet you're going to take issue with it right? >> no. >> depending on what they pick. >> what are we going to have nik wallenda too. >> also had what are the deep tracks or whatever. >> that was the biggest ever and

i wonder if live at the filmore is going to be on there. >> we'll check it out. we'll bring everybody up to speed and play the music too and get them going in the morning. >> we will? >> yeah. >> you know that for a fact? >> i do an imitation of peter frampton. >> let's hear it. >> thank you! thank you! . that's pretty good. >> i've been doing that 30 years. >> it's better when you do that with it. >> it is? >> works better. let's tell you about other corporate news this morning. apple limited availability of its new watch after a key component from china was found to be defective. the component produces the sensation of being tapped on the wrist. now there are only two suppliers for the part in question so apple is now sourcing only one of them. it could take more time for the

company to increase production. no comment from apple at this point. the stock is down by about 1%. some early apple watch users are complaining a number of the key functions are disrupted by their tattoo. inked skin confuses the sensors on the underside of the device. the users are complaining on twitter and using the the #tattoogate as their line of choice. don't get tattoos. you wouldn't run into problems like this. >> rolling stone back to their roots at at least. they can handle this one. hopefully all of these albums actually were live. that would be another -- let's do some fact checking there. speaking of fact checking let's check on the markets this morning. we had a rough session yesterday.

.2%. .2%. you know drew is not a noble -- i said you should go for the peace prize. it doesn't take much. very little bar for that but you're probably still trying for economics and you were right the other day, you said any type -- did you see the journal's lead editorial? pick it upright now. read it. says exactly what you said and that is that any setting of prices whether it's interest rate prices or equity prices -- any of that whether you set them low or high there could be distortions that could be negative for economic growth and the people are starting to say, look at this point the fed, they keep doing the same thing over and -- that's the definition of madness right? doing the same thing over and over again. we keep getting five straight year of .6% in the first quarter which is in .2. >> it's all over that. >> steve doesn't believe it. he is ready to put them all in the hall of fame. >> but steve has been on the

whole idea that there's something wrong with q-1 gdp. and shame on them for keeping it a secret from them. in 2004 they didn't go below 1% because they were worried it would be counter productive to growth and somehow in 2008 and 2009 they decided it was all okay. i do think at this point if we're talking about an economy that can't go from 0 to 25 to 25 to 50 and we have been doing everything we have been doing maybe we should just give up. >> well the producers are giving up because they have all of these things planned for when we talk to you and i'm supposed to be doing -- you can look at the europe boards and asia boards and we'll go through all of them and then i don't know who is leading with -- >> i think you are. >> very good. that's very convenient. very convenient. there's europe right now.

all green. quick look at asia. see what we can expect. look at crude back to $85. you see what happened yesterday and what is the likelihood that the fed raises rates now or even in september or never again for that matter. let's take a look at gold. weird that the ten year goes up the yield even though they're not going to ever raise again. >> dollar was down though. >> it has to be. not only do we not have the greatest economy relative to everyone else but we're not never raising rates. research by cme group says that the odds of a rate hike don't pick up now until december. we'll see. but drew deputy chief us. economist at ubs disagrees and

you say now wow you're crazy, your nuts your crazy. and actually go up. >> we expected june up until marchand we pushed back september. the whole point for us is that you go and what's the pattern after you go? the risk is once they find out you hike rates things begin to move better. the economy begins to function better and people begin to make decisions and a whole bunch of people in their late 50s who are saving as much as they can for retirement understand finally that with rates going up maybe they don't have to save as much as they used to. >> not when you're at a quarter point. you're still looking at 0. you can get to one% and look at the same investing scenario that has people trapped at this

point. >> people will girn tobegin to extend their investments. >> that's not going to be a switch that you click. that's going to be a very gradual sort of awakening and it's something that's going to depend on the fed's next move. one quarter point rate hike is not going to get people to that point. >> absolutely but we're not going to sit at zero forever and that's something that a lot of clients and market participants are believing that every time we get to a point where the fed is going to hike rates the fed will blink and push it back. this is what we have seen. >> that's true. we have been trained to -- >> you think they psychologically have to push it through. not just one. >> to be honest with you they had june lined up in their sights as of marchand they should have said we're going. we understand q-1 is going to be weak and that's a temporary blip and we're going to move ahead with it and i think everything would be functioning better now. people would be more confident in the outlook going forward even if you had gotten the

number and been like growth was flat. the problem is that people think -- you're never going to get the perfect time to hike rates. it's like my father-in-law told me if you wait for the perfect time to have children you'll die childless. this is the same thing with rate hikes. if you wait for the perfect time to hike rates there will never be a great time. there's always some crazy guy in another country doing something that makes you nervous. there will always be a financial issue or equity market index moving the wrong way. if you wait for the perfect time you'll never go and if you never go you're going to be in a suboptimal world. >> the journal, they said a lot of the stuff we were saying yesterday and every year winter is cold and you need -- if you can't figure out your seasonal adjustments then what's with your seasonal adjustments? have you adjusted for the coldness? you're missing it every single year for five years?

or is more going into it? >> there's at least a 25 year pattern there where q-1 is weak and the only other explanation is weather. that's why they do seasonal adjustments in the first place. what have we been bothering with and paying for? we should have a better sense of kind of removing those adjustments. >> this is the question of our time and yesterday i saw the article you look at and compare the reagan economy following the recession to what we have been able to do now we've had no net job growth. we're averaging 30 or 40% less in terms of a rebound or gdp. there's a lot of differences between this recovery and people are going to say it's because of the depth. it was a different type of recession.

it wasn't your normal recession. it was much worse and they're going to say this is the best we could do but sooner or later someone is going to start to say it was the policies that held it back. whether it's fiscal or monetary that actually held it back but sooner or later. >> that's my least favorite word is counter factual. no one can prove it worked and somehow no one can prove it didn't work. the important thing for me is there a way things could have been better. you probably should have done it before you let them fail instead of after. if you had done that sunday night instead of monday night the world would be in a much different space right now. you wouldn't have had the massive sell offs because people would be able to finance those

positions and instead what you ended up with is the situation we're in now and everyone is defending their honor by saying if we would have done something different the world would have collapsed. >> i thought it was relatively created to come up with some of these things and take on measures that nobody had ever thought possible and by the way they probably can't do again. >> true but if you think about it, one of the reasons where they decided to let them go under is they have had six months to find a buyer. they had six months to plan for that failure and there didn't seem to be much planning done. as you take rates what should happen? consumption should go up for the exact same reason. maybe people buy big ticket

items items. you should be seeing a lot of capex because your returns on investments are high. none of those things are happening and we're not questioning why rates at zero are good for the economy and they don't actually help. >> well, these 50 you know i take it back. it might be worse than the time -- >> frampton is on there. he's just number 41. >> anywherenothing helps better than killing yourself if you juan to -- kurt cobain -- nirvana is number one. now i agree with 2 and 3. >> don't tell them all. >> okay. i won't. four radio head. seriously. >> don't tell them all. >> wait a second how about this number six, thin lizzie. the ramones is in the top ten. >> my nephew loves radio head. >> you can't give it all away. we'll do more of it.

>> coming up when we return cnbc exclusive steve wynn is going to tell us about the recent shareholder meeting where his ex-wife lost her board seat. it will be fascinating stuff. we're listening to the almond brothers right now. rolling stone list of 50 greatest live albums of all time. we're back in just a moment. by the way, here's a look back at this date in history.

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welcome back everybody. steve wynn's stack of chips taking a hit since the company reported results this week. eunice got the chance to speak to him in an exclusive interview and joins us now live from las vegas. >> hey guys well steve wynn is facing a lot of challenges. the only place in china where casino gambling is legal and the company and country in years has put in place an anticorruption and austerity drive which effected the entire casino industry including wynn's results. he told me he doesn't know how long the uncertainty is going to

last. >> china is in a state of change. they determined the change was necessary. hard to argue with that if you pay attention and read why there's change. what the long-term implications of it i think are very uncertain and people relax and go about their lives. is it more dramatic change? i don't have a reason to believe that at the moment. >> in addition wynn said he is managing his expectations for a recovery in las vegas especially heading into an election year. >> i don't look for healthy growth in 15 in las vegas. perhaps for 16. plain when we have a change of administration. if we do get one we'll get a

more business friendly job friendly government in washington that will allow us to have a more robust recovery. >> there's also been a public dispute between his company's board and his ex-wife. his ex-wife is now out and this is what he had to say about it. >> i don't remember what her criticisms were but most of them were sort of self-serving and weren't very accurate as i recall but i kept my peace during that process because i found myself on the other side but that doesn't mean a agree with what elaine wynn had to say because i certainly don't. >> and he said that elaine wynn's departure will have no impact on the running of the company from now on. guys. >> wow. >> go ahead. >> i had a random question. you didn't mention them in any

of your interview with him because he's suing them over this allegation that they were suggesting there's corruption going on and that is -- you didn't get into any of that with him, did you? >> no i didn't get into that but obviously he is concerned about all the corruption or the whole anticorruption campaign and the impact. i was asking him many times about it and he says he doesn't have any clarity on what's going to happen and it's definitely having an impact on the applications for certain regulations and trying to get other properties going. >> all right. eunice thank you very much. that's an incredibly interesting story and obviously we'll hear much more out of it but thank you for sharing all of that with us today. it's no secret biotech's been booming. the nasdaq biotech index more than tripled in the last five years and so has another area.

real estate in cambridge mass. that's one of biotech's capital cities. meg terrell joins us now with more. i have stories about famous biotech people and i have been to their houses. alex rich over there discovered a certain type of dna. but anyway, go ahead, meg. >> that's why we're doing this story with you this morning. we're right here. as you said one of the callal city of biotech. you can't look to a corner here and not see construction that's all tied to this biotech boom and everybody wants to be next to mit this hot bed of technology and life sciences work. that's squeezing rents up and sending vacancy rates down to historic lows. they have doubled in the last ten years to $71 per square foot. rates have hit a historic low at 3% here an that's as capacity as you see with all this building is expanding. it's actually expanded by 25% just over the last 7 years since

2008. so why here? one professor you might know founded more than 2 dozen biotech companies all by himself. you also have lots of amazing research institutions all here. this is the dens concentration of biotech in the world. now we talked to one of the earliest bio tech companies here in the square and they moved out to the suburbs and said we need to move back. we caught up with the ceo. take a listen. >> so much happening here in kendall square. there's 20 companies in cambridge. m.i.t. is a two minute walk. harvard is down the road.

mass general is in the other direction so you can't go out to lunch or dinner without seeing people you know from the different institutions and the level of excitement and interaction and viebrancy is amazing. >> but people keep complaining about the traffic. back to you guys. >> phil sharp was the adjacent lab. and gilbert who was the guy at harvard and we knew he was going to win a noble prize and he did. i remember everything about kendall square and whitehead became a big research institute there. but the names, david baltimore. robert weinburg.

david sharp. it's all over the place but harvard too. mit is the place. did you go out to fresh pond? harvard square? >> you know joe, we have been sticking around here in kendall. >> you don want to live in kendall. >> now you do. there's a lot of apartments going up. there's tons of rest ranlaurants here. it's completely transformed. people say it used to be a wasteland. visit 50 aims street. >> write that down. >> all right. coming up -- it used to be there, the center for cancer research. anyway rolling stone, we're going to do this in the chairs. this is much better than the list i saw although -- but i was right about number two. >> number two. >> live at the filmore.

it's a list of the 50 greatest live albums of all time. we shown even get me started on something like this. we have to cover business news. we may be on this all day. anyway we'll have some of the winners and the names we think are missing and you're listening to the late great johnny cash. folsom prison took the number three spot. >> we're not going to tell you who else is in the top five. at least for a minute. >> this is not from folsom prison. this is his remake. >> probably yeah. stay tuned. we'll be right back. ♪

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much better list than the one i saw. much better list. hard to argue with some of these. james brown number one hardest working man in entertainment was what he said. >> these are live albums. >> plus live at the apollo. >> almond brothers i mean just legendary. i don't know what those guys were on that night but dewayne almond was still alive before he got killed in like a motorcycle accident. i think they played you know the solos that they played together was amazing. and that was -- it's just a

legendary album. >> but is nirvana on the list? >> they're somewhere. >> i think hendrix should be way ahead. >> peter frampton was number one. that was commercially one of the most successful. oh god. i want to eat your cancer. >> i have a question for you. >> what about women, are there any women on the list? >> that's interesting. >> joanie mitchell was on another one. b.b. king. >> b.b. king. >> michael jackson is not on the list. >> it was james brown, almond brothers johnny cash the who, b.b. king. >> is it stones. >> pretty good. not bad.

talking heads i don't know number 11? they do try to do that. everybody but andrew. >> i bet there's stuff on there andrew likes too. >> michael jackson and who else? >> milly vanilly. did they ever put out a live album. i own that album. i shouldn't say that proudly but i purchased it -- >> somebody told me the jackson 5 did have a live album. >> britney's not on here. >> britney's not. >> who is harry styles? what's the name of his thing. the guy left -- first edition. >> one direction. >> how do you keep it straight. >> is 'nsync on there? >> i only went to 20. >> boys 2 men. >> i only saw one concert last year and guess who it was? one direction. take one for the team, right? >> i have a story -- >> europe 72. >> i want you to tell me what you think of this the great skyline of new york city may go

dim. so the mayor of new york city thinks there's too much energy being expended on lights at night. so new york city we even have the radio city lights up at night. everything is lit up. either it's an environmental thing or energy thing and there has to be a decision as to which landmarks can be lit up. empire state building chrysler and potentially a committee that could decide. >> on whether or not you can use your own lights. >> well if you have people in your building like either security or people working overnight they might be able to leave the lights on. >> do they realize how much darker things will be on the streets. >> there's a security issue and people that came to -- there was a meeting in the city public meeting, people came on the security side. police complaining about it. >> somebody drives into the city when it's still dark out. >> so this is a question. >> one of these days the global warming hypocrites are going to have to start acting dnchts-- they'll

have to start walking the walk. al gore can no longer make $500 million selling his company to oil money. leo took 19 trips on a private jet to talk about -- i mean these guys they have carbon footprints -- eventually they need to start walking the walk. >> but my question as the environmentalist that you are. >> i am but i don't have a phone owe about co2. >> would you dim them? >> i might dim them. there's nothing wrong with conservation of any type of energy, right? >> depends on what it looks like. in theory it's one thing. in reality i'd like to see what it really looks like. >> are you going to stop flying on private jets. >> i wish i was flying on a private jet. >> are you going to start car pooling? with you in the morning. wouldn't that be fun. >> we have to draw the line. >> i can. i drive-by your place.

>> come on. this you would enjoy. there's a story you have to read it. it's apparently how toilets from japan are going to become all the rage. it's becoming a very popular thing and this guy does it -- in the new york times does a review and it's awesome. >> what's awesome about it. the way he describes how it works and how it feels and how he believes he can no longer go back to a regular toilet. >> oh my. >> what's the function that makes it over the top? that makes it so perfect. >> he likes -- he likes the seat is warm. he likes the warm seat. >> in the winter i can see that. >> he says why would you ever use a dry towel. you take a shower you would wipe yourself off like this every day. you need water. anyway it's just the way it's written is so brilliantly done. i recommend that you read it. >> i don't know how much we want to talk about it but you never

get -- toilet paper you never get really totally -- >> but that's the point of his article. >> especially that guy. >> especially the older you get and then you're in the carb free diet. clean drop. >> well anyway now the seats will do it. so you can keep your own. >> we don't want to go too much into this do we? >> too late. >> i think it has a big future. it's already here. >> i have a friend it's a guy. he lives by those. he actually carries them around. >> we used to have an anchor that had a little case really. >> we went about three minutes past where we weren't going to talk about this. when we come back, is live sports the one thing able to save the television fundel?

espn's fight with verizon says the answer is yes. we'll ask the former top of nascar entertainment about this issue next. you're listening to the who. live at leads. this is number four on the rolling stone list of greatest live albums.

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time warner cable earnings falling short of estimates and cigna raising it's outlook and

the company is also announcing a $500 million stock buy back program. a major sports weekend is coming up in addition to the nhl and nba playoffs. tonight the nhl draft kicks off in chicago and saturday afternoon it's the kentucky derby on nbc. it's always saturdays. and the dig fight. all of it live. dvr proof content. here to talk to us about the ever growing powers is george pine the founder and ceo of bruin sports capital and also the former president of img and former coo of nascar entertainment. and you sat next to teddy. >> i did. >> so let's talk about sports. the value of sports. are we in a sports bubble now in terms of content? all we do is talk about the value of sports content. >> it's funny.

i worked for a guy named bill france and he ran nascar for 30 years and i was a young guy at the time and went into bill and said sports is at a bubble. the rights are high. we're up for renewal and we're not going to get the right fee increase and we kept -- and every time he said listen here young man that's what they say all the time and the rights will go up. they have been saying they're at a bubble for at least 20 years. i'm bullish on it. only very few things aggregate big audiences. think about the super bowl. $114 million people broke a television viewership. >> but when you see what's going on with the fight between espn and verizon and the idea of unbundling sports and what that does to the economics of it how do you see it playing out? >> it's a dispute between somebody that paid a lot of money for rights and somebody that watches to distribute those rights and it's just a negotiation. now what's different is verizon is trying to get in the game so

they're a little more aggressive in their negotiation with espn but it's just a negotiation they have a contract and it's between them whether they'll live up to it but at the end of the day it's a negotiation. >> but how does it play out long-term? long-term in terms of the unbundle or disintermediation? >> with verizon because they're being more aggressive than normal they're raising the question about, hey, can the consumer decide or do people have to buy from the bundle? it's really a negotiation based on a value proposition. >> slow change to whatever it looks like at some point. >> correct. >> do you remember when nbc did the olympics and it was like 15 or 20 years from now? you knew right then even though it was a big number didn't you know right then that somehow the

ioc wasn't thinking about things? or they liked the relationship with nbc but that was the steal of the century. >> the nba sold their rights for $24 billion over nine years. the people that bought the rights are sophisticated. this is a negotiation. the channels of distribution in media are going to change and that's going to change things. how? we don't know. i would say sports are going to continue to have real value because they aggregate big audiences and their passion. i went to an arsenal football match. two hours, 60,000 adults. stood in the rain. and you have seminoles that go like this. >> we don even understand nascar. but the true fans of nascar are -- >> love it. >> it's insane. >> so media fragments, it is going to become more valuable. >> and you don dvr and you watch the commercials but that doesn't explain with the popularity is

soaring. at the same time that it's dvr proof the actual popularity of it and the value of it has been going up too so it's weird. >> i also think that social media and digital media, actually for sports passion now. i love this thing and i can share with my friends. think about the draft. think about these other things if it ever does get unbundled will people as passionate as you're talking about, about this spend the money because right now -- the people with the passion are being subsidized in large part by a lot of people that don't have the same passion, right? espn is being paid for, $7 $8 a sub, there's 50% of the people who are paying that sub that may not be watching it. the question is will people be willing to spend $24 a month or $30 a month. that's where i'm trying to go with the economics and how this all plays out. >> that is the fair question.

no one knows the honest answer. what i can say is sports will be most valuable but there will be a reset or not? that's the fair question and only time will tell and that will evolve but sports will have high value. >> there's a peaceiece in the journal today that you should read. talking about these guys that make so much money and they're being subsidized. no one has seen some of the shows. he said i vnhaven't seen any of these discovery shows but i'm still paying for it. he said thank you for all of this money. this is a former hedge fund guy that used to do 2 and 20 probably and guys that make 5 or 600 million a year looking at you know something that is actually maybe useful to society and that is you know entertainment. i'm just saying you know physician heal thy self. >> in full disclosure my wife represented kesler on a book

several years ago. just worth noting. >> you bring up discovery. do you know what the most watched discovery show ever was? >> nik wallenda. >> nik wallenda. he's right over there. >> what kind of high wire are we going to get here. >> discovery made a big bet internationally? euro sports. sports. >> huge number. >> thank you for coming in. we have to talk about live sports because he has a new thing going on with the nfl. >> which is on the way out because of concussions. anyway, right? kids aren't playing anymore. parents won't let them. big decline. ex >> watch the ratings tonight. all the people that tune into the draft. >> if the house is not burning it's not a story. a segment not for the faint of heart. daredevil nik wallenda will join us on set. he's just back from his latest high wire act.

walking the 400 foot orlando eye observation wheel. stay tuned we'll be right back.

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just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too. doug, we have the results, but first, we have a very special guest. come on out, flo! [house band playing] you have anything to say to flo? nah, i'll just let the results do the talking. [crowd booing] well, he can do that. we show our progressive direct rate and the rates of our competitors even if progressive isn't the lowest. it looks like progressive is not the lowest! ohhhh! when we return we'll find out whether doug is the father. wait, what?

well it is a walk to remember. nik wallenda walking on top of the 400-foot orlando eye while it was moving. he is known as the king of the high wire. nik, thank you for being here with us today.

>> thanks for having me. >> the question you get asked more than any, why do you do this? >> my family has done this for seven generations and it's in our blood. >> it's in your blood but you have three kids and a wife and they're all onboard with this too? >> it's a very calculated risk. my wife walks the wire with me. all three of my children walk the wire with me. it's more of a lifestyle. >> doesn't it frighten you from time to time? >> there are definitely moments where, you know my heart will jump. something will happen that will wake me up. yesterday when i was walking on that eye, the walk went great, but as i tried to make my way up the rescue ladder to get to the top of the capsule the ladder started to collapse on me. those are the sort of things that will wake you up. >> i saw this yesterday and the high wire to me in chicago was

just off the chart. i was on the floor. >> the blindfold in chicago was really rough. my entire life. i walked a wire actually my mom was six months pregnant with me and able to walk the wire. since i was a small little toddler, two feet off the ground. i would be playing with the wire. with a blindfold, without vision, it changed everything. >> why did you add it? we'll watch you do these things anyway. >> i'm carrying on a legacy. and i want to do greater things and i want to make sure people never forget who my family are. i trained for that properly. prepared properly. as i walked with headphones on and blindfolded two feet off the ground. my family would come up and literally shake the wire push me. they knew their confidence is as much important to them as it is me and my safety. if they're not confident in me i can't make that first step. my mind won't allow me to. >> keep ratcheting it up.

keep coming up with something harder and more difficult and death defying, if you will. >> in a sense, yes. it's always calculated. i always train and prepare properly. but, of course how do you top 23 million live viewers walking across the grand canyon. where is that next spot? it is always a challenge in any occupation similar to mine. >> it's scary, too. might get through a few rounds of russian roulette and it seems like your number i don't want to keep doing it. could you do it if you were an atheist? >> i xwoentdon't know if i could. my faith plays a key role in my life. i'm very confident where i'm going to go when i die. >> that might help instead of, you know eternal blackness or hell. >> i believe it does. >> what is the business of what you do? meaning, i am assuming you have deals with different networks. you go to foxwood. do you charge? the crazier it is and the more death defying? >> absolutely.

of course, endorsement deals just like any athlete and, yeah, the bigger the event the higher the walk the longer the walk. live tv is where it is at in my opinion. people have to tune in live. they have to watch live. nik wallenka could lose his life and i don't want to be watching another channel when that happens. >> that's crazy that you know that's why people. >> it's the reality. look, a certain percentage of viewers that watch nascar to see the accident. not about the checkered flag. they want to watch if somebody would get in an accident. most of us have that us in. look at the traffic jams they create because everybody wants to turn and look. >> think of the circus. you could do it with -- no different technically if you did it with a tether and your skill would be amply demonstrated that you were able to do it but it wouldn't be the same would it? >> it couldn't. he will just hang there and rescue will get to him.

>> the thing with circle and that's why, they're hesitant. they have nets. >> what kind of money is in this, just so we know? >> i'm doing pretty good. >> we'll let you off the hook or off the wire in this case. deutschechsche bank chief strategist coming up when we return.

get ready to sell in may. david bianco says a big dip is coming and coming soon. he's here to explain why. the stock popping on rumors that the company has been approached about a takeover. we'll talk to an analyst about what it could be. the biggest software deal ever. the democratic presidential

field has doubled. bernie sanders announcing he will challenge hillary clinton for the nomination. we'll talk to a former governor who could be the third candidate to throw his hat in the ring. the second hour of "squawk box" begins right now. >> announcer: live from the beating heart of new york city this is "squawk box." welcome back to "squawk box," everybody. this is cnbc first in business worldwide. i'm becky quick along with joe kernen and andrew ross sorkin. looking at the world famous shot of the rockettes. they are joining us to help kick off their spring spectacular. what do you think, guys? >> i don't even want to go up there. >> that's high. >> they're going to be down here. we'll see that a little later. >> george benson was not on. this was a live, we are just

playing this because of broadway. among the top stories at this hour. apple watch news this morning. the company reportedly limiting availability of its new watch after a key component from china was found to be defective. "wall street journal" reporting that it produces the sensation of being tapped on the wrist. limiting suppliers of that component, which may cause production delays. no comment from apple at this point. japan's heading to silicon valley today. the first sitting prime minister to visit the valley. yahoo! co-founder and tesla among others. this morning, jobless claims and personal income and spending and the chicago pmi. take a look at u.s. equity futures at this hour. the dow looks like it will open down and the nasdaq off 18 points and the s&p 500 off a little five points. market's enduring a pretty painful session on wall street. they were down not by massive

amounts. less than 0.5%. more downside to come in the near term predicting an 8% dip in the s&p 500 somewhere in the summer. joining us right now david bianco head of u.s. strategy at deutch deutsche bank. >> that is our way of signaling we don't expect a percentage of greater than 10% but a 5% to 10% dip that occurs in a matter of weeks or before the summer is through. rarely it's only happened three times since 1960 1964. we never get through a year without a dip in the s&p and i don't think this is a year that avoids that. >> your reason for thinking it happens between now and the summer. >> two reasons. transitory factors in the economy but something we don't see as transitory that will last for a while is weakness in investment spending particularly related to the commodity complex and it is going to weigh on

earnings growth and flat earnings for the s&p this year more investors internalize that the outcome is weak and we think the fed will hike rates most likely in september, not because the u.s. economy is booming but because the labor economy is going to be tightening and we expect job reports even though the manufacturing conditions stay weak. >> interesting to this point just to see what's happened. the street knew that earnings were going to be lousy for this quarter. the street brought down expectations and many companies managed to beat those heavily expectations. >> versus the greatly reduced expectations we have got normal beats. i always direct people to just what the euro and earnings growth was, flat earnings is what it should wrap up to be. sales growth down 2% to 3%. not a good sales season. q2 should be worse on year-on-year basis. past few weeks, the reflation trade is on. that means a lot of different

things to different people. but i think all of a sudden investors, some investors believe the fed is not going to hike and the dollar is going to weaken and commodity prices are going to rally and the positioning for this growth and inflation not so much real growth but inflationary pressures accelerating. i don't like that idea. i believe the fed will hike and the commodity price rebound will be limited. we're staying underweight in industrials. >> you're still talking about five months before you think the fed will hike. to me what was so strange to watch is the market sell-off on the ideas that the fed is not raising rates any time soon. i think they would have sold off even more if it looked like they were raising rates in june. >> i think what you see disappointment on the real growth on one hand and particularly when it comes to the investment spending and inventory build that is going to maintain that q2 gdp is not going to be great likely and this confusion about what does it mean if the fed doesn't hike to the dollar and to longerterm yields. you see the way longer term

yields moved up which was confusing to people. it's because of inflationary pressures perceived to be increasing. i don't think that will be the case. i think the fed will deliver hikes this year. >> we have seen a significant decline in capital expenditures. the companies are willing to spend. do you think it is simply related to the drop in oil prices and other commodity prices? do you think it has something to do with us at zero interest rates and more attractive to buy back shares or issue dividends? >> all the above. we had very modest investment spending growth for the past several years. the only bright spot was energy and now that has rolled over. the worst of it will probably come through in q2. but from there i think it's very slow growth and investment spending when it comes to energy and china, we think, continues to decelerate. there is stimulus being discussed but all their intentions are just to control the deceleration rather than to really truly, reaccelerate that economy, again. don't like the reflation trade. >> we still get back on this chicken and egg argument.

if companies would only spend some more on capital expenditures put it into plants and hiring people and companies aren't going to do that until you see more demand. what breaks that cycle? >> they're not getting the return on investment they desire or what we're used to in the past to incents have the cap x. this is the same thing for investors who are trying to find returns on assets they used to get and it's hard to get it. slowly over time we'll all accept probably that we're in a lower interest rate world and i think companies will lower their investment hurdle rates. but for the time being, we think the need for capacity editions is an extremely limited and moderate cap x. >> so many investors who have been waiting for years at this point for the big drop in stocks for a moment to get in it looks like a much more advantageous thing. you were looking for an 8% drop in the next few months. if i'm hearing that i'm thinking, great, i'll wait a little longer. is there a chance they miss the boat, once again? >> like i said, i doubt this is the year that doesn't have that

type of typical pull back in the market. if it occurs from the reasons we expect earnings are flattish and the fed stays on track to hike because the labor market tightening. but we just think that's turbulence that investors should act upon. but if the fed doesn't look like it will hike this year and leaves uncertainty for where the dollar and interest rates are heading, we have a lot to think about. >> in terms of whether you go ahead. >> about the appropriate p/e multiple. i feel comfortable with the idea that long-term interest rates stay low because the fed hikes, not because it fails to hike. stronger dollars, low-term yields stay low. >> david, thanks for coming in. another story we're watching this morning. salesforce.com hitting an all-time high on reports from competing service that they are for sale. sources do speculate who might be most interested.

there's four or five. have to be a big company to do it. the most likely probably oracle or microsoft. joining us with more capital markets vice president and all in all, though oracle, so many reasons to think this is oracle and you don't have to consider the ones almost. >> i think oracle is the most likely buyer. if you look at oracle. they're desperate to make a splash in the cloud. they fought it for a very long time. for years and years you heard them try to say that these cloud players were not legitimate and then all of a sudden they had all this competition from salesforce.com and other companies like that and now they're trying to do something transformative because they're losing in the cloud. >> you have a close relationship already. the sales force uses oracle's database. >> exactly. it makes a lot of sense, right? former oracle employee. if you look at keith block, who is the vice chairman and president of sales force today. he's a former oracle exec as

well. even along the sales team a lot of overlap in the employee base and you're exactly right. the sales force applications are built on the oracle database. in fact a bunch of the largest companies use the oracle database. so for them this is not only are they getting the marquise company and bringing that into their portfolio, but also bringing in a very talented group of people and when larry ellison decides to ride off into the sunset. >> if oracle added the name of every company it acquired it would be 60 names long. he always gets what he wants, too. people soft was forever. very difficult. that is so equisitive. this is what he does isn't it? >> they generate $15 billion a year in free cash flow. they have the war chest to do it. >> does ibm have the war chest to do it? >> ibm has the resources, as well. i really think if you think about which company can digest this acquisition, which company

has their own strong leadership to bring somebody like sales force into the fold and who needs them the most really oracle makes the most sense. and speaking of raising money, oracle just floated i think $10 billion of debt a couple weeks ago. so, it might be a tipoff that hey, we're raising capital ahead of making a transformative decision. >> not sure it's microsoft. dinner together and mike arusoft has -- >> they have been having these dinners for years. >> a lot bigger cap at microsoft. >> microsoft is the wildcard because, you know satya nadella committed to the cloud. they have this mandate this is where they're going to grow. not as strong on the application as they are in all areas and for them to bring on the sales force cloud and bring it epiin. it makes a lot of sense. the wildcard we're not thinking about is potentially amazon. they just disclosed what they had in amazon web services and

where they make the splash what better world to go after than salesforce.com. >> what kind of premium do you see? >> it's so expensive. wouldn't go for much premium. >> what is the premium and what do you handicap the chances of a deal? >> in terms of premium. seven to nine times traditionally for revenue. it wouldn't surprise us even at sales force commanded that type of multiple because you have to think about it from oracle or another perspective. >> which would put the stock price at what? ? 85 to $105. we wouldn't be surprised to see a $100 bid. >> exactly, but, once again, you have to think about the dollars that are in play in the cloud. you're talking about a massive multi-billion dollar opportunity and oracle is losing out. in ord oer to turn things upside down, this is the play they need to make. >> if there is not a buyer, then what are they worth? >> on a fundamental basis our price started at $78.

so we think it's trading at or near fair value on a stand-alone basis. we think this is a company that can get to $10 billion on revenue on a stand-alone basis. we see upside in stock even from a fundamental perspective going forward. >> but you don't know whether it happens. >> handicapping a deal like this is tough, but let's go back in time. you mentioned people soft. when oracle wants somebody they tend to get them. the question for investors this morning, is sales force a willing seller? are they willing to sell themselves to oracle and what will it take? >> where do you think -- >> i think mark has tremendous respect for larry ellison. i don't think that he's necessarily opposed to it. sales force bread sxand butter and we're not oracle. that's how they have gotten customers to come over and for them to want to go over there is a very interesting proposition. >> we know what he is. what was i going to say? what is your brother's first

name? >> my brother's first name is smir. he has been on "squawk box" before. >> i wonder who introed him. i did your name pretty well. >> you nailed it. >> not talking about me. >> i think it was becky that introduced him. she did a wonderful job, as well. you nailed it, yeah. >> all right. >> thanks for having me on. >> you're welcome. when we come back this morning, lenova is the world's top pc maker. the company wants to move up from third place in the coveted market right here in the united states. the company new north american president is here to share his stratry. a read on retail investors and the trends we're seeing there from the ceo of t.d. ameritrade. he will join us at 7:40 eastern time. oking for a car that drives you...

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welcome back to "squawk box," everybody. in our headlines the russian central bank cutting by 1.5 percent nl points to 12.5%. policymakers responding to a rally and signs that inflation has peaked has been an ongoing battle over the last year for the russian authorities. back here in the united states keep an eye on shares of conoco

philips today. exxon mobil is due to report its results coming up in the next hour. ten years after the chinese company lenova acquired pc business and the company would like to compete in the north american market. amar is here he is the north american and the new president, rather of lenovo's north american unit. what do you have there, by the way? i looked down and noticed you have something. >> i just can't help it. i'm a product guy and i'm particularly proud of this one. this is our last yoga 3 pro. it's a two in one. convertible device that is very thin and very light. you can use it as a tablet and pc and america's best-selling device. >> i didn't plan to do a product demo, but this is kind of cool. just tell us this we all thought that pc sales were going to fall apart and all move to something like this. what really happened? >> what is really happening is that customers want choice and

customers today use a variety of devices ranging from smartphone to pc some of which are very mobile and some of are great for consuming tablet like the tablet and some are great for create content like the pc. whereby t was said that the tablet would, tablet sales are slowing down and pcs have picking up. >> seems like they're merging. in the c world they're doing it. apple hasn't tried this yet. are you worried about this? >> we have a characteristic as a company which is that we control our manufacturing. we keep inovating and arguably i would make the case that we're probably one of the best at marrying innovation and efficiency. we come out with new devices and we pioneered that factor and have taken a lead as a result. >> we were talking earlier about microsoft as a buyer for sales force. you're very dependent as a partner on microsoft.

how it's changed your relationship. well, look as a device company, we're a platform and operating system. we work with microsoft. >> you're not really what percentage of your pcs run on microsoft to any other system? >> the majority. now we're launching also new devices on chrome. >> do you think chrome has a chance to catching up with windows? >> we see a lot of data base. >> does that create tension where you look to be in other partners and maybe not be so reliant. >> we do a lot of business with both on smartphone and tablet side and we do a lot with pieces and tablets. >> i keep thinking i want a new laptop. i haven't gotten one in several years and i think i might be more likely to buy a tablet again. >> you're holding one now. a perfect device. >> i messed up your entire

screen because the buttons are on the bottom. >> probably wasn't set up properly when i carried over because when you move, when you put it into tablet mode it disables the keyboard. >> my fault, it wasn't completely flipped over. >> doesn't matter. >> not just about pcs, but the phone business. you're in the phone business in the united states in a big way. >> yes. >> when you think about that, your relationship is different. you are reliant on google in that case because that is an android platform. >> on the operating system probably not. this is, you know we believe that success is a matter of focus and we're good at what we do and we're good at making devices. operating system is a different game. we're very happy right now with the relationship with android. of course we bought motorola from google but we think the motorola devices are particularly well optimized for that platform. >> samsung is starting to do its own thing. and that's creating its own tension. >> we don't have any plans at this particular point in time to

do the same. >> last question. what do you make of apple in all of this? from a laptop perspective. they're selling more of these than ever. do you think of them as the biggest competitor? >> in the pc space. in the pc space, look we have been now in the lead for eight consecutive quarters. two year that we're on top of market share with 20%. i think that apple in the pc space is not in the top five. they're a formidable company and a good company. but we're focused right now on going from 20% to 30%. >> what do you think of dell and hp? >> strong competitors and we're proving over ten years. tomorrow is the ten-year anniversary of the pc and where whereby we had 3% market share and we had 20% market share number one today. we hope to replicate that across a different product of families we have. >> congratulations on the anniversary. appreciate it very much. coming up, the call to post.

kentucky derby contenders drawing their starting positions. we'll tell you where the favorites landed ahead of this weekend' big race. time now for today's aflac trivia question. who was the first number one overall draft pick to be inducted into the professional football hall of fame? the answer when cnbc "squawk box" continues. and . . . exhale. . . aflac! and a gentle wavelike motion... ahhh- ahhhhhh. liberate your spine... ahhh-ahhhhhh......aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just one day. ahh! so he had your back? yep. in just one day, we approve and pay. one day pay, only from aflac. [duck snoring]

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delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to cialis.com the real question that needs to be asked is "what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do.

now, the answer to today's aflac trivia question. who was the first number one overall draft pick to be inducted into the professional football hall of fame? the answer bill dudley. bill dudley. what a career he's had. i had no idea. that's amazing. did you see that? first number one draft pick to go into the football hall of fame. now it's like the federal reserve hall of fame from new

york. >> wonder where you were going with that. >> what a career. >> very versatile guy. >> unbelievable. really incredible. i guess he might have been a punter or something. anyway, the post positions are set for 141st running of the kentucky derby. trainer bob baffered. the two top contenders in this year's race. drew the 18th position and santa anita derby winner post eight among the other favorites. bluegrass stakes winner carpe diem landed in the number two spot. and and drew number three. post time right when they start 6:34 p.m. on saturday. but part of watching it is watching all the background stories that make it such a great event. coverage begins at noon on

sports network and then switches over to the mother channel at 4:00 p.m. and two and a half hours later you have the post. >> still running. >> it's cool. i hope it's a great day. you know. >> no rain. >> beautiful when it's sunny. all the hats and everything. we went out to once. >> i was going to say, you went here didn't you? >> have you been out? >> i have been not on derby day, but i've been to churchill downs before. and i had a mint julep, which i didn't like. tastes like bourbon. coming up when we return, t.d. ameritrade its ceo will join us right after the break and talk market trends. retail investors are cautiously bullish right now. as we head to that break, take a look at u.s. equity futures at the moment. dow looks like it will open down 47 points off.

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welcome back to "squawk box" this morning. a number of stocks that are front and center at this hour. a rough quarter for yelp who added lower than expected advertising accounts and current quarter sales will fall short of estimates. the chinese search engines and revenue missed and guidance came in to light, as well. the maker of samuel adams beer missing the mark on sales. and an b and b horror story. i can't imagine it not being one. a canadian family who rented out their home on the site returned to a trashed house. the renter was a man in his 40s who was visiting for a wedding. the owners knew something was wrong when they started receiving calls and texts from their neighbors. hard tabe laughing. police responding to three noise complaints and also calls about a physical altercation. an officer says there was a

party going on and said he saw at least $50,000 worth of damage, for starters. including broken tables, kitchen condiments sprayed all over the floors and walls. towel racks yanked off the walls and what appeared to be vomit on the floor. air bnb said the family would be reimbursed and the family is cooperating with the police investigation. we talked about it becky. neither a renter nor a borrower. >> i have rented xwrp would much rather be someone who was renting a home. >> you'd let this -- >> i would rather rent someone else's home than allow someone to rent my house. you're staying in a hotel room anyway. you think that's sterile. >> i don't. >> you go around with a black light. stay away from here. >> i've rented already twice this year.

>> on air bnb? >> not on air bnb, another site. >> like sweeping in the subway. >> if you do the beach or do things like that. >> you don't want people in your house. >> when air bnb says they're going to reimburse them what does that mean? how much is it going to cost? >> that's the type of thing that would really put a dent in air bnb. >> you are finding vomit. you are never going to get over that, are you? >> a whole cleaning crew in there and get them to buy new dishes and everything, i don't know. i don't know how much money they give you. they have a special group of people whose whole responsibility is dealing with, when something goes wrong, because they know it is going to be in the media, they call up and solve the problem very quickly. >> they're doing the right thing. >> they are wearing the ebola suits when they go into the place. >> they may have a special unit that just goes in and picks them up. >> plus, you wonder when you got

back in it if cleaners forgot to look in your closet. our next guest has his finger on the pulse of the retail investors and while stocks have been on a tear he will tell us how much of that action has been driven by the individual investors. joining us on set is fred tomczyk the firm is celebrating its 40th anniversary and never a better time to get into the game. thanks for joining us today. >> great to be here. >> you see, what do you have 6.5 million client accounts that you are watching and you can see what people are doing on a daily basis, even hourly basis. what are some of the things you've seen recently? >> no matter what i look at right now whether margin loans and our investor movement index and net buying activity. no question that retail investors pretty fully invested here right now. >> cash levels in their account have been depleted and they're in stocks at this point. >> they're in stocks. >> when you watched.

i notice you also take a look at log ins. first of all, what does that tell you? >> that tells us just because they're buying a stock doesn't mean they're necessarily engaged. if they're logging in regularly, that's usually a good indication that people are very engaged in the markets and watching their investments closely. >> is that almost counterintuitive. does that tell us we're getting near a point at somehigh at some point. when you start realizing they're looking and checking their account pretty frequently sometimes that tells you that the euphoria is coming back in. >> i wouldn't be surprised. we have a correction here. i think we had 6, 6 1/2 years of off markets here. the market is relatively flattish this year. but we've never had seven years of market. so it wouldn't be surprise here to me at all that we see a correction. >> in terms of what people are interested in is it still u.s. stocks that american individual investors are interested in? >> u.s. stock and apple is our most widely held stock.

widely traded stock but they're also into exxon, u.s. oil right now and bank of america and those types of stocks. >> the exxon and when you look at exxon and other oil companies, is that something that has happened since the oil company prices have come down significantly? >> yeah. a lot of our clients we find have a large active trader base and so they tend to have a contrarrian view. >> in terms of what you're looking at for the market. i know you watch your clients and what they're doing. where are you in terms of the u.s. economy and, like you said you wouldn't be surprised for a correction, would you be surprised if the markets continue to climb. >> i think last year wasn't an overly strong market and this year wasn't an overly strong market. overall, going to depend on what the data tells us about the u.s. economy in the next three to six months. >> you don't think the fed is raising interest rates soon. >> that's what the forward curve would tell you. short-term rates will not move until december.

>> and sometimes stocks do things that they just seem like they have to do them. it has nothing to do with fundamentals or anything. i'm talking about apple and you're feeling they went to a high at $740 billion market cap today. and we got up to about 770. we talk about the first trillion dollar company and market cap. you just said that everybody owns it already that kind of wants to own it. who is going to own it to take it to a trillion and will this be the first tree to grow, that does grow to the sky? >> i don't know if everybody owns it that wants to own it. >> everybody trade at td ameritrade owns it. >> the largest cap stock. >> absolutely. >> not a surprise. >> do you get the feeling and now the watch flaw. so many great things happened in the quarter. nothing can go wrong. >> they've been there before. you keep wondering how long apple can continue to do that. i think when steve jobs passed away, everybody thought, you

know, it would come back. tim cook has done a fantastic job. but, it's hard to keep that up. the bigger you get, the harder and harder it gets. >> sort of just a rhetorical question. i just don't know. and then but then i could justify it by saying they've probably put 50 other companies, they've taken the market share of 50 other companies probably. music, record stores. >> look at a quarterly basis. >> it's not one company at a trillion dollar. i don't know. we'll see. >> can i ask you a very basic business question that i was curious about. how do you differentiate what you do from what etrade does from schwab? is your customer a different customer? >> i think when we break the markinate to three basically segments. we call it the active trader and the active trader and the derivative trader. 40% of our derivative and that market we clearly differentiate investor education and we you

know, we have a clear lead and a pretty significant market share. and you look at the space, schwab would be the leader and we would be the fastest growing. we kind of differentiate around education, technology, good service, not that schwab doesn't give good service, as well. we were called the long-term investor and i think schwab would be ahead of us right now. >> fred, congratulations on 40 years in the business for the company and we appreciate your being here today. >> great to be here. coming up we've got governor senator lincoln chafee. the race for the democratic president. independent he's a lot of things. rhode island's former governor, lincoln chafee join hillary clinton and bernie sanders, which are really splitting the vote evenly right now. hillary and bernie. the governor will join us next. later, the rockettes. >> check this out.

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well. might be overstating a little. hillary clinton apparently it says here won't be unopposed in her bid for the democratic presidential nomination. vermont senator bernie sanders announcing his candidacy and that field could soon expand to three. former rhode island governor lincoln chafee said he could be the kind of candidate. governor, thank you for joining us and welcome. kidding a little bit about bernie. i don't know. maybe he will be able to move her one way or another or to highlight certain issues that maybe the more progressive side of the party wants highlighted. trying to figure ow what your

i'll take you at your word. you think you can be the underdog and also have some policy differences that you would like to highlight, as well, in the process. are you, are you left of senator clinton now in certain areas, even more progressive? >> yes, absolutely. especially on foreign relations. and we served at the same time in the senate when we voted on the iraq war resolution back in 2002. and, of course, i voted against it and she voted for it. the ramifications we live with today are so significant at what's happing in the middle east and north africa and even the refugees coming into europe. all ramifications of that bad vote. i would argue one of the worst decisions in america history. we differ on foreign policy and there will be areas of agreement on domestic policy because, again, we serve together and we voted on legislation for six years together. and, so this i look forward to the campaign ahead. election should be about choices and a lot of candidates and on

the republican side and now getting more on the democratic side. >> in the past i can think of a lot of people that are still mad at ralph nader because gore would have won and then i think about the damage that newt gingrich suffered with members of his, or that romney suffered at the hands of guys like newt gingrich, which brought up all the sort of gave the democrats exactly what to say about private equity and the one percent and everything else. i don't know whether that was productive to try to move romney to the right in the general election. and i'm wondering whether you're hearing that. that she's going to be the perspective nominee, people think. this can come to no good. pushing her to the left and criticizing her before she's the candidate in the general election. >> well, first of all, the prime minister chief is going to be the nominee. i dispute that. i would argue that between what's happening internationally

in her tenure as secretary of state, no real accomplishments and now these new allegations coming out about the clinton foundation and the book coming out next week. these are real. this is all about judgment calls and credibility. and, so i'm not convinced she's going it be the nominee. >> okay. just as a general question whenever we have someone as yourself charlie crist, people that are able to move between parties and you come from a party of republicans i think, too. it's hard to understand someone that maybe believed in private sector and less government and lower taxes and let's say, let's call trickle down from the private sector versus government trickle down, which i think we're reaping some of the benefits or nonbenefits of that right now. how did you go from one to the other? what were you thinking back then when you were a republican and what are you thinking now and how do you put the two together? >> good question. i've been in public service for

30 years. started as a city councilman and then mayor of my city and then united states senator and then governor. my record over those 30 years and you can look at it is very, very consistent. and i was a rockefeller republican. that's what they're called. liberal republican. we cared about balancing the books. very concerned about deficits. and we let people live their lives. socially liberal and fiscally conservative. it's the, what we stood for. and i saw the party change. the republican party started to care more about the social issues about flag burning and abortion and gay marriage. and less about balancing the books. that's exactly what happened under bush and cheney when i was in the senate. they took the surplus, turned it into deficits and we spent all our time talking about women's reproductive freedoms as some social issues. i never changed. i never changed. >> not the same democratic party any more either. that's certainly, it's moved far to the right. let me ask you, do you think

that the country is actually in a position to want an administration that is even more progressive than the obama administration? you think the country is in the mood for that to actually move left of where we've been? >> i think probably internationally. i think what's happening in the middle east and north africa is of concern. i know you talk about the economy here on your show and as you look ahead, that has ramifications. it's unrest. and all these young people in these countries with no hope and turning to extremism and terrorism. i think we can do a better job. it affects us economically here what we do overseas. the world is flat and i think that obama is a little bit too right there on that and too much of the unilateralism and john kerry is doing a much better job recently but a lot of room for

improvement internationally. which makes the world safer and economy better. >> we need to help our young people in this country economically, as well. >> absolutely. >> but it is around the world. the disenfranchisement of youth and really not great prospects. so it's a big, big problem. anyway, senator, dignified man that seems to vote his kaunshs and we appreciate governor senator. you know it gets confusing. republican, democrat. that's what i said on the intro. >> a good resume. >> that's right. anyway, we appreciate you coming on today. and good luck. it probably is good to have a lot of voices why not? >> absolutely. when we return this morning, the world famous rockettes are here and they're kingiry're kicking off their spring spectacular. stick around, "squawk box" will be right back.

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♪ welcome back to "squawk" spring has sprung in new york city and what better way to celebrate than learning to kit strut rockettes are here. four lovely ladies with us. kim, ashley and gabriella. i'm trying to read from far

away. you guys are part of the spring spectacular. we think it's kind of cold. we know it is spring. but this is nothing compared to the macy's day parade. >> that's true. this is definitely warmer weather for us. we're so excited that we're celebrating our new york spring spectacular and playing right here at radio city music hall and extended through may 7th due to popular demand. >> how long have you all been rockettes? >> this will be my 13th year. >> 14 for me. >> 16th for me. >> i just finished my second season. >> none of you look old enough. >> thank you. >> are most of your peers and colleagues have you all been doing this for a long time? >> it all depends. >> how many are there? >> whatever dance path you choose. it depends on that. >> how many total rockettes? >> you'll see 40 at the spring spectacular. at christmas we have two shows.

>> how many shows do you do a year? >> do a year? >> you do the winter and then we have the spring. over the spring spectacular we have about 13 shows a week. >> then you're traveling all the time. >> true. >> for other things. we keep busy. >> what about height? is there a minimum and a maximum? >> there is. we're between 5'6" and 5'10". >> i'm not going to ask anything else about that. 5'6" and 5'10". a lot of times you do want that sort of even look -- >> in our kick lines. the tallest girls are in the middle and then gradually out to the ends. >> was everyone good at this in the past whether cheerleading or dancing. >> i have been dancing since i was 4. >> can you give us a little lesson while we're here? >> absolutely. >> what is the trick? >> why don't you start here. >> so we'll start with the rockette bevel. so, you pop your right toe and

extend your knee across. >> you have to join us here. >> there aren't any men. >> you're an honorary rockette this morning. we link up. we have a little secret. we actually don't touch. we're feeling the fabric. it's one of our rockette secret. we're going to step on our leg and go through a posai position. and flick out like you're flicking water and then step down. we flip and step and down. >> that's all. so let's try four and then we'll -- >> was it him? >> no that was not me. >> next time ask me -- >> here we go five six, seven, eight. >> step kick. step kick. step, kick and bevel. >> yourker're kicking me. >> your feet are in the way. >> you show off too much. >> we got to run. "squawk box" returns in just a moment.

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breaking news on the earnings front. exxon mobil hitting the wires in just seconds the company answering the street' question

ahead of the numbers by raising its dividend yesterday. now the focus turns to production. we'll have the numbers and street reaction straight ahead. rent or buy? home sales are improving but ownership continues to fall. what gives and is it a sign that we could be headed for an economic slow down. a look at the health of the nation's real estate market just ahead. and buffalo wild wings looking to redeem itself with a big weekend of sports. >> to the outside and score! >> second in the lineup and he drives one to right. investors slamming the stock after the wings chain missed on top and bottom line estimates. ceo sally smith is here. we'll talk about the miss and the state of the restaurant business. the final hour of "squawk box" begins right now. live from the most powerful city in the world, new york. this is "squawk box."

it's like maybe a concert. top 50 concerts from rolling stones or concert albums that we're highlighting. welcome back to "squawk box" here on cnbc first in business worldwide. i'm joe kernen along with andrew ross sorkin and becky quick. not exactly like the dead. you're listening to meat stick. thanks, greco, good choice. buy fish. >> chicken wings coming. >> yes. >> the band's new year's eve 1995 live album came in at 42 right after peter franton. one of the biggest sellers of all time. it was on the "rolling stones" the magazine. the band is on there, too. it's the 50 greatest live albums of all time and we'll have more songs from the bands that made the list throughout the hour. we're less than 90 minutes away from the opening bell on wall street and the futures right now are indicated lower, but not as bad as they have

been. >> you want to talk exxon mobil. looks like the company came in numbers with better than the street has been expecting. the street has been bringing down its estimates but this is earnings of $1.17 a share. street estimate was for 73 cents a share and revenue better than had been expected. numbers came in at $67 billion. $67.6 billion. street was looking for $56.4 billion. just a few of the comments that are coming from the company, they talk about first quarter capital expenditures at $7.7 billion. first quarter international down stream net was $1.1 billion. up stream was $2.9 billion. >> depressing. >> because they've earned $4.9 billion down 46% from last year. and they used to earn $10 billion a quarter. so, they earned less than 5. so, just to put it in perspective. that might be above expectations. but it's just incredible. >> any commentary, though. see if there is any commentary

for the ceo or anyone else just about directionally where they think anything is going. the only thing i see is not that. the chairman and ceo saying they have to balance, balance portfolio delivering solid results regardless of current market conditions. we remain focused. >> 2011 they earned 2012 8.07 and this year earn 3.78. so, down from 8.08. that's, obviously, if you're looking for 10, 12, 15% growth. this might not be the one. >> i spoke with rex maybe two months ago, maybe a month and a half ago. one of the point he made is look he's been through cycles like this before where you see big drops in prices. they pull in capital expenditures and they just want to make sure they're not hiring people that they have to then let go. they have to be a managed business. >> they will make $5 next year and $6.18 the year after that and maybe $7.40 in 2018 and

2019. still not back to 2012 or 2011. so, they are, obviously, at the whims of crude prices and there's no easy way to manage through that. doing the best they can, obviously. rex, we have a balanced portfolio. regardless of current market conditions and we remain focus on fundamentals and create long-term shareholder value. >> we have some other stories. i spilled some coffee on a tie. does coffee stain, do we know? >> coffee stains. >> i'll have to work on that. >> look at my teeth. a lot of new housing data this week despite a rise in pending home sales hitting a 22-month high yesterday. a new gallup poll showing americans are less optimistic about home buying than they were in 2013 or 2014. is now the time to buy? diana joins us now and she has more.

diana? >> home sales improving slightly and home ownership continues to fall. the u.s. homeownership rate is now at 63.7%. that's the lowest level in 25 years. and down from a high of over 69% during the last housing boom. all right, so, what's going on? i understand we have to do something i hate. math. yes, fewer homeowners. but the rate is being moved lower more dramatically by the fact that the number of overall households that is owner and renter is finally growing, but it's all on the renter's side. so, the pool is getting bigger but the share of owners isn't so the ownership rate goes down. that would be your math. why isn't the pool of home owners growing? first and foremost, home prices are rising far too fast. faster than incomes, by far. and while mortgage rates are still very enticeing near record lows it's not the rate it's the credit availability and the availability of younger americans to save for a down

payment. even 3.5% down. and then there is just plain confidence in housing. it's coming back slowly but today's consumers are still very skiddish. if the price and the house are just not right, they are waiting on the fence. becky? >> diana, thank you very much. let's get more on the health of housing and hone in on how millennials are contributing to the broader home buying story. joining us now, sarah from wells fargo. >> patrick, first of all, you questioned some of these numbers a little bit. >> well these aren't measured very well. i think it's overstating the numbers. the numbers are probably a lot lower. and if you are under water, you're considered a homeowner. if they were measured correctly and under water homeowners were not considered homeowners the actual number would be a lot lower than it is right now. having said that it's a low number. it's overstated and lower than it is and probably going to drop

a couple percentage points more. >> what would your statement be in terms of addressing or describing what the housing industry looks like right now? >> well i think we're nearing some sort but it's not the equilibrium we expected. one where home building where home building is low and home prices are high and homes are more congested. >> sarah, let's focus on the millennials people were pointing fingers saying millennials were doing things differently and that's why it was so hard to get our arms around it. what happened with millennials when it comes to buying houses? temporary setback or just the way this generation is going to be? >> a little bit of both. millennials like older folks have been hit in terms of the credit availability and that is one factor holding back their homeowner rates. particularly student debt, which is affecting the rate at which they can even save for a down payment. and even if and qualify for those loans. and in some cases, even thinking

about getting, taking out that mortgage where they already have, you know $20,000, $30,000 of debt coming out of student loans. it's a little bit of that credit availability, as well as those longer term trends particularly when you look at the ages in which she's millennials are settling down. >> are you the first economist to ever focus on this generation of millennials? >> i mean we've kind of done a lot more work in terms of this generation and their experience and the economy, not just the housing market but the labor market. their balance sheets. we do focus on some of the demographic work in our broader segment coverage. >> what else have you found focusing on this group? >> well obviously, they had a really tough time with the labor market market graduating into a recession. we are starting to see some positive signs, particularly coming from income growth. income growth among millennials has lagged behind that of older workers over the past couple of years. but we actually saw over the past year or so that income

growth is actually outpaced older workers. so that's a good sign and i think that is part of the reason we're seeing that pickup in household information where people are finally moving out, but, of course when you first move out, you're going to rent a home, your residence for a little bit. >> patrick, obviously, these numbers are national numbers. when you look more closely at states or different areas whether that be a rural area or a city you're going to find very different numbers. is part of this that cities are becoming more attractive at this point and more people are living in them? >> i think, living in the city is more expenseive and that's why the rate is so expensive in the cities. under 50% in new york city. and it's 75% in west virginia. i really don't think that the homeowners' number is that important. doesn't matter all that much whether you as a landlord owns a piece of paper and you can find happiness in new york city and in west virginia where homeownership rates are very

high. >> so, what is going to determine the rates for homeownership or what is going to determine how the housing market fairs from here? >> for homeownership rates still a lot of homeowners under water. somewhere between 7% and 8%. many homeowners will lose their homes and that will bring the rate down. the other thing that will break down, housing is very expensive. home prices are at record olevels in some places. housing is very unaffordable and we'll have more renters going forward. >> if the fed actually raises rates, which most people think they won't at this point, patrick, what happens that equation? if it's a quarter point hike rate and once you get to 1% or 2% how does that also impact home prices? >> it will impact home prices somewhat. what matters going forward is the strength of the economy. if the economy grows and picks up speed and keep on creating jobs, that will be a more important factor that mortgage rates are climbing back to where they have been historically.

right now just very low. >> all right, patrick, sarah, thank you both for joining us. >> andrew, back to exxon quickly. in money they lost money in exploration and production. up stream $42 million. now, internationally, upstream they made, they still managed to make $2.9 million. if you add in the earnings of just under a billion you can get up to somewhere around $4.9 billion. the big question is now, they haven't made a big acquisition since they paid like $30 billion or $40 billion for xto a year back and right now they got huge amounts of money and a huge war chest and everything is cheap. that's something to think about. >> when you talk to analysts they could make a huge acquisition but analysts say it depends on if they think these prices are starting to pickup again. if they think more pressure could come, then they can hold off on doing it.

that is what some of the analysts have been thinking about. >> come down 50%, it might be a good time to buy. you would like that wouldn't you? >> no. >> why? >> because you love mergers and aquacquisition but not in oil. >> no no no. >> why don't you like this merger? >> i'll take a merger. but i don't know if that's the right margin. >> because of the carbon? okay coming up. talking trash with waste management. mobile recycling revenue and the negative effect. we will speak to the ceo next. still to come. street reaction and wings and things with buffalo wild wings ss ceo sally smith and jim cramer is back from the west coast. "squawk box" returns in just a moment.

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there is an ancient rhythm... [♪] that flows through all things... through rocky spires... [♪] and ocean's swell... [♪] the endless... stillness of green... [♪] and in the restless depths of human hearts... [♪] the voice of the wild within. waste management shares fell a little bit after estimates

missed expectations. a trash hauler facing strong headwinds from falling commodity prices. recycling commodity prices which we've talked about with ceo david steiner. ceo of waste management joins us more on how businesses. good morning, good to see you, david. >> good morning. thanks for having me. >> looking well. so the actual gap number was a loss because of one of these weird accounting things. you extinguished some debt but you also took some asset impairment costs due to commodity prices or something. >> well no we actually, the bulk of it joe, was the extinguishment of debt and we were able to trade out 7% note for 4% note. we brought down our average cost of borrowing by 100 basis points and the others were just i remember last year we sold our waste energy business and had a true up for that and then we have a short landfill that we took a small -- >> but the revenue doesn't,

isn't affected by one-time items. that's that probably has to do with lower revenues and recycling. >> exactly. so, we had, obviously, lower revenues from that and then we had low commodity prices in recycling and then our fuel surcharge was down because the lower fuel costs. that's a good thing for us. that actually made us about 2 cents on the quarter and then foreign currency exchange from our cumadian operation. >> so when you're sitting around now thinking wow, i'm a really good ceo and i've done well. but i need to earn my you know i need to earn my stripes now when times are not optimal. what should you be doing and what is your strategy to make hay when the sun's not shining? >> we have to attack the recycling issue from both sides. first off, we need to get to the customers and let them know that at this point in time with low commodity prices we can't bear all the burden of low commodity prices. so we have to share that with our customers.

and then we have to go and make our plants more efficient. we have to reduce our operating costs and we're very successful in that this quarter. we saved about $20 million by improving our plants. we'll consolidate some plants and we'll do what we need to do from a business point of view and also go to our customers and say, look we need to share some of this pain. we need to make sure that folks are understanding that they've got to give us clean materials to recycle. our new program called recycle often and recycle right will let consumers know how they can help us recycle more. >> so david, we were just talking about exxon and how they got a lot of money and a lot of the acquisitions maybe they wanted to make in the past make are economically a lot cheaper now. aren't you in that position? isn't there anything you need to add to as far as you know your asset mix? >> yeah we can do plenty there. you know with the proceeds from

last year about $1.8 billion, we would love nothing more than to reinvest that into our business throughout canada and the united states. we think we can buy great solid waste tuck ins. our multiple earnings and we think we can go out and buy companies at about 7 to 8 times and post synergies six to seven times. that would be our preferred method to redeploy those proceeds. if we can't, we will go back and buy the business that we know the best ours. we'll do a share buy back to the extent that we can't buy good solid waste acquisition. >> you're everywhere. are there ma and pa that's what waste management was when wayne started at the very beginning. still things you can do there, places where you aren't and this would be a good time maybe, if it's cheaper. >> oh absolutely. there is plenty of opportunity for us. we really wouldn't be able to do

a large acquisition because we are the largest in the industry. but there's plenty of places where we're second and third in the market and we can buy great assets that tuck right into our current business and like i say, create a lot of shareholder value. >> david, i got a quick, this is almost like a customer question. when you tell the customer to try to help you with recycling, for example, putting the different things in the different buckets. invarably, some customer is going to screw it up or by accident put the wrong thing in the wrong buckt and i would imagine that forces you still to actually have to go through all of it no matter whether people do it right or wrong because you're always having to try to find that sort of you know the needle in the haystack. isn't your cost always going to be the same? >> yeah well, you know, a look of how many people do it wrong. we can certainly weather the fact that some people are going to put the wrong thing in the recycling bin. so we call it contamination

rates. once the contamination rate gets above 10% to 15%, our processing costs go through the roof. we can afford to get 10% contamination in our recycling loads, but once you get above that, that is what causes the issue. we need to do a better job working with our customers of educating the public about what you can and what you can and can't do as far as recycling goes. >> am i supposed to wash out every carton and every glass bottle and everything i put in. if i put in a tomato sauce bottle, is that going to mess things up? >> well glass is another issue altogether, but, becky, all the cleaning that you can do certainly would help us. >> all right, good to know. >> all right david, thanks. we'll check back in with you after you buy a bunch of stuff next quarter. all right. >> all right. thanks for having me. >> we have to keep our eyes on that. i was watching you out there with those girls. those ladies. yeah. >> what? >> i just was, you know keeping an eye on you.

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welcome back everybody. apple reporting limited availability of its new watch after a key component from china was found to be defective. "wall street journal" said the component produces the sensation of having your wrist tapped. two suppliers for the part in question. apple right now is only sourcing one of them. that, of course, means it could take more time for the company to increase production. no comment from apple at this point. meantime some early apple watch users are starting to complain about a number of its key functions being disrupted by their tattoos. they say inked skin confuses the sensor. the users are now complaining on twitter using the #tattoogate. >> you have to have tattooed your wrist for this to be -- >> right. >> maybe a lot of people --

>> you need to have the sleeve. >> a lot of people that -- >> this is true. >> yeah. tattoos. coming up we're going to talk exxon mobil earnings out just moments ago. go through those numbers and talk with an analyst and find out if the stock is a buy today. also look at u.s. equity futures and listen to a little bb king while we're doing it. back in a moment.

there is an ancient rhythm... [♪] that flows through all things... through rocky spires... [♪] and ocean's swell... [♪] the endless... stillness of green... [♪] and in the restless depths of human hearts... [♪] the voice of the wild within.

welcome back to "squawk." we were doing so well with the music there. >> ewere. >> the futures looking down across the board. we were looking that dow open 25 points off and nasdaq down 18 points and the s&p 500 looks to open almost 4 points. little deal news this morning. omnivision technologies taken private. price tag 29.75 per share in cast. $1.9 billion in total headline value. >> it sale forces share rising.

the tech software company said to be working with advisors to help but field bids after being approached by a potential buyer. we are just a few seconds away from jobless claims and personal income data. rick santelli is standing by in chicago. rick, take it away. >> well first quarter employment cost index up 0.7. little bit hotter than we were looking for and now stand at 0.5%. march personal income goog egg. unchanged. we're looking up and last month 0.4 increase stands unrevised. on the spending side we are expecting up 0.5. last month upgraded and let's look at jobless claims shall we? 262,000. that is a big, big drop that's what? a 34,000 drop from a slightly revised 296,000.

and continuing claims move from 2.327 to 2.253 million. so, a bit of a reversal there. but very large drop at least on initial claims versus expectations. if you want to look at some of the deflater numbers inside the personal income and spending. the month-over-month personal expenditure up 0.2. and the former was as expected. the latter was a little shy. that's a lot of data. maybe the biggest news this morning continues to be the euro touches a 1112.5 level. you know, we could debate that, but, nonetheless, that's the conventional wisdom. rates moving up in europe. one thing i can tell you for sure, after 30 sessions of

coiling and treasuries, they broke it out to the down side in price and upside in yield. but if you pair it up with what's going on in europe when their yields were moving down dragging on the relative value trade, remember there's another side to that mountain and that's what we're seeing right now. back to you. >> okay rick thank you for that. in the meantime we'll talk about exxon. they beat on the top and bottom lines. profits are down sharply from the last year. phoning in on the "squawk" newsline is doug terreson head of energy research. good morning to you, doug. help us through this. it seems a lot, it seems a lot better than we thought, though relatively last year not so hot. >> you're right. first, good morning to everybody. exxon mobile they did post fantastic results and this company was really built for conditions like these when you think about the diversification of it business mix and i think as you indicated, the strength of its model was pretty clear today with its earning's report which surpassed the street's

expectations by almost 40%. what was different about their results in relation to the other super measures the surprise from the upstream and down stream and they posted a positive surprise and the best earning quality that we've seen thus far in the reporting season in the super major category. all in all, the result was strong and higher quality or more high quality than that of its peers. great for exxon today. >> which way are you expecting oil to be? where do you think exxon should be? >> we've been very constructive and we continue to be. we think that brent is going to exit 2015 at $75 per barrel and we're going to approximate $85 per barrel next year. we're neutral exxon mobile and the reason why more leverage to the oil rise and we prefer conoco phillips and we have $82 price targets on those stocks. >> in terms of investment

exploration. your sense on what they're going to be doing over the next year. how much of it is going to be scaled back in terms of new capital? >> so, the entire industry is retrenching and you guys are saying the rig count has declined around 50%. most of the larger oil companies have their spending down anywhere from 15 to 20% and the smaller ones are probably down by half that amount or by half versus last year. so, this is going to lead to a flattening out of production growth globally. and it should bode well for the engineer sector in general. >> we're going to leave it there. doug thank you for your perspective this morning. >> you're welcome. return investors are clucking about buffalo wild wings this morn p the company facing some head winds. despite strong sales during march madness. we eat and talk business with ceo sally smith up next.

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welcome back to "squawk box." this morning the futures right now are in the red, despite some good news from exxon this morning. dow looks like it would open down 15 points. it has gotten better rather i should say. s&p 500 off about 3 points. look at what's in front of us. >> buffalo wild wings missing on

the top and bottom lines with first quarter results. the company hit by higher food costs had strong sales during march madness and the playoffs but the shares of the company were down on the new sally smith as buffalo wild wings ceo is here to take us inside the numbers. >> morning, joe. great to be here. >> march was great. was there, where was the sales leader? we'll talk about the prices and input costs went up because of -- >> because of wing costs and labor. >> wing costs and labor. but in terms of sales. >> we had a great, phenomenal january. i think our same-store sales were up 11.3%. consensus had osa little bit higher. >> january was where the shortfall was. >> no actually for the quarter. consensus had a little bit higher than we came in but we felt from our internal projections, we were right where we thought we would be. >> how did the street get ahead of it though? >> i think the whole industry

had really strong february sales and i think they extrapulated that. you had a number of companies missing consensus on same-store sales for the quarter. >> and then this is before the news we had about the bird flu, too. why did prices go up throughout the quarter? >> we knew that they were going to we had guided, actually on cost of sales for wing costs. we knew they were going to be high and we expect them to moderate throughout the year. they don't follow the normal market. so they typically rise throughout football season and into march madness and then they start leveling off. little more production. >> is that just demand? >> partly demand. you're thinking sports, you're thinking wings. higher demand. >> i'm thinking a fight. did you think about it? it would have cost $6 million to put it in every location. >> we really did. you know it's going to be it's what everybody is talking about. as we looked at return and, you

know we're busy and we're crowded. we're full on saturday nights anyway. >> kentucky derby. >> you have that and playoffs and nba and hockey playoffs. on the west coast the fight will air at 6:00 p.m. that's when our restaurants are full already. the decision to spend $6 million, you can't take that lightly. >> then you have to find out if your local buffalo wild wings is carrying it. some are. >> it's not. actually, you can see it at the times square location at buffalo wild wings. >> any chains that are doing it? >> not that i know of. the cost is more than double any other -- >> per location. >> it is. we will air it in about eight company store locations on the east coast. where we have capacity. that's how we decided where to air it and then franchisees 70 locations that will air it. >> all you need is a knockout in the first round after $6

million. >> by the way, what do you have to pay per location because i assume it's more than just one tv right? >> 5,100 is the number. >> 5,100. >> no matter how big the location. >> based on the number of seats. >> could be more than 5,100. >> i think that's the maximum. but that's the number we have that number of seats in all of our locations. >> there's an article written today that there are some bright spots suddenly in casual dining. oil prices or something finally after a lag. >> i think more discretionary spending for the consumer. less spending on gasoline. and a little more spending on going out to eat. hopefully they're choosing buffalo wild wings. >> looks like some of the advantages are coming from places that offer big discounts on lunch. applebee's offering a 6.99 lunch. what kind of lunches? >> how fast you can get in and out of a restaurant.

we have a seven items that can get you in and out in 40 minutes or less. and you can have a combin combinationation of our wings, of course, sandwiches and salads. >> so where are we now with gmos or i mean you can be an even keeled ceo and still bend to the millennial lust for. gmo os in this? >> well i'm sure that you know at least in the chicken. they've been eating grains the corn. about 90% of corn is a gmo. >> so many points removed from i don't even know what the scenario is for some type of harmful occurrence. i couldn't even plot it out on a scientific analysis. >> i don't think i could either. >> you can't. dozen matter. >> i think the consumer wants to know where their food is coming from and that it follows usda

guidelines, which, of course we do. and our poultry producers, our sauce producers and anyone vegetables and fruits, you know how do you handle that food safely? >> i thinkia have the dis iayou have the discussion to be -- are you antibiotic free at this point? >> absolutely. hormone. chicken has never had hormones or the chicken that we buy. our wings are fresh. so, that's a point of distinction, as well. not frozen. so they're coming in. and i think the important thing is the safe food splay and the u.s. has a lot to be proud of. >> we talked in the past and i, you know my suggestion for the six wing chicken. you can't do it now. i want to give the chickens a break. one chicken for, instead, you get maybe twice as many wings from the same chicken and you're not putting so much pressure on everybody. but it's not going to work. it's not going to work with the gmo stuff.

no way. no way you're going to be able to do that. i would. >> you are ahead of your time. >> but it's not going tawork. >> larger economy question given you have your pulse on the consumer and what the second half of the year is going to look like. >> i think if oil prices continue to remain low that you'll still see some discretionary spending out there. >> what about the aviation flu? i knee you said this is different. different birds and not affected by the same market. birds are birds. been any populations that have been affected? >> not the broiler er-- minnesota big turkey producer. lot of aviation flu there. it has not moved to friers. and, luckily, it doesn't seem to be in that area of the country. >> if it were to spread and, obviously, that's speculation at this point. what will that eventually do to prices?

>> i think it could, it could put some pressure on prices both breast product and wings. but we're watching it. we're working with our suppliers. they, of course, are working to make sure that they don't have an incidence of aviation flu. >> what kind of -- >> well, we have chicken breast sandwiches, we have tenders, our boneless wings are made of breast products, as well. >> the boneless wings are made of a breast product? >> they're fake. >> they're not fake. we call them boneless wings. the industry does. they're really good if you haven't had any. >> if everybody is doing, it's okay. >> no, i think that name got out there and it worked for us. >> it's spun in one of our sauces. >> it's probably better meat -- >> it's a great product. changes the sauce profile a little bit. could be a little bit spicier on the boneless wing. our guests love them. 21% of our sales are boneless.

>> i like mild. >> that's a good idea. >> i think i like the boneless. >> i like the breast meat. >> does it look like a wing though? >> it does. >> and you mold that? >> no it's -- >> too many questions. >> i want to know. >> no, it's not mold. it's a pure breast product. it's breast meat and it's cut and breaded and then it's -- >> i want to tell you how they make a mcrib. you don't want to know that. >> i don't want to know that. >> sally, thank you. great to see you. >> nice to see you. >> thanks for bringing all the chicken. >> i'll have some carrots, i think. programming note, the ceo of dine equity will join us at 8:30 eastern. the company owns applebes and ihop. you get every breakfast meat known to man plus eggs plus pancakes. >> do they know to bring pancakes and do you want the onion, at applebees --

>> the bloomin' onion. >> that's outback. >> yeah. let's talk about a few of the stocks. >> thank you. >> you don't know anything about outback. the review site also warranting that its current quarter sales will fall short of estimates. after the chinese search engines beat the street but revenues missed. also, its guidance is a little lighter than expected. that stock is down by 3.4%. boston beer shares also dropping after the sam adams maker missed the mark on sales and that stock actually is up by about 26 cents. lucent is down today. one of the major shareholders is criticizing shares of the telecom equipment maker calling it unacceptable. marriott posting better than expected results and the quarter view is a little disappointing and that stock is down by 2%. >> who are you kidding? >> outback.

>> no wonder you don't know they had bloomin' onion. >> i've been to outback and applebee's but i mixed them up. >> applebee's my chicken wing. when we return jim cramer is back from the west coast and joining us. a programming note tomorrow becky is live from omaha, nebraska, at the site of the berkshire annual meeting. she'll speak to the members of the empire. nebraska furniture mart and santa fe railway chairman rose and mario gabelli. huge lineup. you do not want to miss it. she is getting on a plane this afternoon. ...and takes the wheel right from your very hands... ...this isn't that car.

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♪ i don't have any reason ♪ i left them all behind ♪ ♪ i'm in a new york state of mind ♪ let's goat down to the new york stock exchange. jim cramer joins us this morning. what did you think about exxonmobil's numbers? >> i like that production growth. i was -- it's a reminder of how

good they are. when things are going great, they're fine. when things are going terrible they're also fine. i think that's why in the end people like the stock. >> we were talking just about the idea of the potential for some sort of an acquisition to come down the road. do you think that's possible? do you think that would be something shareholders would want to see? >> no. i think the prices for most of these oil stocks are back where they were. i don't see any bargains. i think there's a lot of pe money chasing. we look at what royal dutch did when they did a deal and hurt their stock. exxon's got plenty of things to do. they don't need to buy anybody. >> what about the fed said yesterday. we have people today saying either september, december or maybe even next year when they actually raise rates. you think they got boxed in here? what would you like to see? >> look. i would -- the numbers are terrible. the month of april, you just had sally on.

the month of april is not turning out to be a good month. if you are going to base anything on the data would you say let's wait. the strong dollar really hurt american industry. i don't know what happened to consumer, but the consumer took a step back. i hope they don't do anything. >> jim, sales force. i know you know him well. you had him on the show. what do you think of the speculation around a transaction? >> it would have to be microsoft. i find it highly unusual. microsoft doesn't want to do that deal. we never comment on rumors simply because we can't. someone said why didn't he just deny it? that's not their policy. their policy is not to deny or confirm. microsoft would like to get more cloud. the which you do it is buy mark's company. you have to pay a fortune. that is so much microsoft's style. they are the only one. oracle terrible fit. i don't think that's even -- i don't think that's in the cars. >> is your voice okay? >> i need tea. what can i say? >> tea, hot water?

>> that red eye is nasty. >> and you were outside on the roof. >> i left my voice in san francisco. >> beautiful. it's great to see you. >> great to see you guys. >> they all took the red eye? crazy. >> could your home be powered by a tesla? giving the consumer a chance to cut the cord with power providers.

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tesla set to unveil a new home charging battery. >> reporter: this is a big announcement. tonight in southern california elon musk will roll out what they are calling a stationary storage unit. he's been talking about this for some time. he first mentioned a couple of years ago when we were at tesla headquarters talking about future applications tesla would pursue. this stationary storage unit we are expecting them to show us two models tonight. one for the home and another one for small businesses. the idea here is this unit could store power or return the electricity to the grid.

if you have solar power in your home, you could then store it there and at a time that is appropriate, return it to the grid. we've seen a few pictures come out what this stationary storage unit will look like. all this has to do with tesla building the giga factory out in nevada. it is scheduled to open in 2017. the potential is up to 500,000 lithium ion batteries annually. they will go into tesla vehicles and other electric vehicles as well as for the stationary storage units. as you look at shares of tesla, there was a note earlier from deutsche bank saying there is a lot of potential here people are not appreciating. we should point out if you look at the history when their product announcements from elon musk and tesla, this is a big sell on the news stock. i wouldn't be surprised if we see that happen the next 24 to 48 hours. now let's see the news and people say, how big is this going to be? we'll get more details tonight

from elon musk down in southern california. >> phil lebeau, there you have it. thank you for that. are we going to talk music? >> top five live albums. >> live albums are hard. then you have to pick your favorite artist. you don't know the live album so you do it because it is a live album. that doesn't really count. >> we are winning it so to speak. >> i knew "live at the filmore with the allman brothers." >> our executive producers have been putting this together. this is the rolling stone list. are we going to see our list? >> this kicked us off talking about this. "live at the apollo." the allman brothers. number three was johnny cash. those are significant albums.

>> that's almost a cultural iconic time. i don't know if it's that good. >> it's johnny cash. >> join us tomorrow. becky will be in omaha. "squawk on the street" begins right now. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and dave faber. jim took the red eye and premarket is seeing red as the nikkei has its worst day since january. a lot of earnings to get to. oil up 40% from its march lows and the ten-year yield creeping up to almost actually to 2.07 as jobless claims hit a