munger and bill gates. we have the chief executives of wells fargo, coke american express. i'll see you tomorrow. >> i'm taking materiality because cramer's got carpe2k r are carpe diem. >> i'm taking carpe diem. >> "squawk on the street" begins right now. welcome to "squawk on the street." i'm carl quintanilla with jim cramer. david faber is off today. social names continue to got clobbered. plenty of earnings after what has been a very busy week. oil, the best performing commodity in april up 25% which is giving some back today.

ten-year note around 2.07%. linkedin down 20%. nasdaq led lower by apple, biotechs. is that the correction we've all been waiting for. the issue with existing batteries is that they stuck. that was elon musk last night. the battery for the home. will that move the needle on tesla's stock? visa and chevron, auto sales out. we'll get ford and gm later this morning. what a week it has been. i was just talking about what we've been through the past few days. ten-year above two. apple losing $60 billion in market cap. now linkedin yelp an twitter being sliced by 1/5 the past few days. >> i was on the linkedin quarter last night. obviously, we are tired. i'm on it i read it, i talk to the analysts i go through the quarter.

carl, i simply don't understand it. i only took a year of accounting. i've had pretty good background in things. this was the hardest single quarter to understand. i think you saw 2015 go down 2016 go up. the stock being down is an overreaction. frankly, not unlike twitter, not unlike yelp there is a spare recognition things are wrong. yelp talked about reorganization of sales force. typically when you are at goldman sachs you don't say, listen we were down badly because of reassigned sales. i find it not a good excuse. linkedin said the british election s elections whoever wins the derby could not them off. >> are you saying they are

deserving this punishing today? >> they don't. they have to put a better narrative. when you come out and act as if nothing went wrong, you incur the wrath of the market. yelp are being polite. linkedin are baffled. this is so hard. >> there is a sense it gets lumped in with the social names. premium subs up 28 was a disappointment. other companies don't have premium subs. >> display ads were bad. they were bad for everybody. this made you understand this twitter/yelp made you understand how good facebook and google are. that article this morning i read should have been not about how these other guys aren't any good but facebook and google are really pulling away from the

pack. >> referring to a piece in the "journal" where they talk to brand managers ad buyers who say we are killing it on facebook and committing to that. the others were just not seeing it yet. don equity uses facebook to a tremendous effect. they haven't figured out how to use twitter yet. i don't think twitter is bad. linkedin made this acquisition. toll us how to think through these things ahead of the quarter. it's too much to digest. we only have four hours. >> right. that was their biggest acquisition by a factor of ten. >> it was easier to figure out than why the nfl held the draft at 9:00 at night in chicago.

>> and told adam shefter not to tweet. >> the fed statement we got earlier in the week. becky talked to buffet briefly about his view on the fed and rates. >> i thought the rate hike was unlikely for that but much more because of what's going on in europe with negative interest rates. i think it will be hard for the fed to bump rates up here with negative rates in europe. i could be wrong on that.

that's been my view. >> hard for the fed to raise rates. >> i think warren is going to calm things down. i think we come in monday and say why are we concerned? it happened before and it can happen again. >> he had nice things to say about burlington and their recovery. becky with that ceo early this morning. >> i would say that the many pipeline kinder morgan bought is more important than the rail. we are seeing negative chatter about rail and oil. again, addressed in that very fine interview becky did. >> sell in may and go away. here we are. the past few days was that people just trying to beat the traffic?

watch apple. >> ubs cuts on demand not supply issues. >> my watch lasted 28 hours straight. >> i'm going to bid and it's half charged at night. do i charge it or not? maybe go another day. >> i thought that was going to be the single biggest problem with this and it isn't. there are a lot of things to like. yesterday on "mad money," eaton, big industrial company said nonresidential is good. residential is good. auto is good. truck is good. aerospace is good. there's nothing else. i said is europe weaker? asia not clear. you are going to hear warren buffett say things aren't bad. monday morning we are going to say why did we sell? warren will make us feel good.

biotech got hit badly this week. that had been a winner. let's watch sky works solutions. they had a good report last night. >> and fire eye. >> i was just going over fire eye. they have big deferred revenue. very strong. >> more enterprised spending on cyber security. >> tesla launching a ryan ofline of batteries for homes. it's power wall battery which has a price tag at least $3,000 can be used to back up power or store solar energy. here is what elon musk who is trebding on twit they are morning had to say last night in california. >> the issue with existing batteries is that they suck. okay? they are they're really horrible. they look like that. thorough's expensive.

>> people saying tesla just changed the world today. is that overstating it? >> when you talk about homes having energy that is the next model. nrg is the most forward utility in the country. they will tell you this is happening. he is playing that gay. you are going to get a rebate and start producing power yourself. tesla stock is just a hope stock, but people have hope and want to have a generator that's solar. this is very expensive. it is a boutique thing. >> a note argued tesla was a utility play not a car play. one slight move in that

direction. >> yes. >> remember there are 50 million commercial roofs in this country. if you can get something going on and get everything in the 200 million homes, we would wreck the power grid. utilities are based on you not having power. this produces enough to keep your refrigerator running. in some cases, that's what you want. >> if tesla's eccentric nature the stock i mean makes you nervous, do you go solar city instead, where he is the chairman? >> i like solar city more. i like that business model. you want to solar city makes your house worth more. if it's solar equipped, it has

more value. those who own tesla for $190 they are saying listen we just picked up $40. >> speaking of cars chrysler did post a 5.8% increase in u.s. auto sales in april led by flagship brand and the jeep cherokee. still below analyst forecasts. gm and ford will come out in a few moments. after the ford earnings u.s. has to offset what's going on overseas. >> when you talk about car companies, you talk about latin america. if i were back in third grade and had to do a globe, it's like latin america would be like this is just this would be like when we looked at where communist china and russia used to look like. latin america is just -- people don't know what's happening in latin america. it's almost like their systems stopped. everyone says the same thing. latin america is killing us. the companies that stuck with

venezuela, not working. clorox took the charge. got out of venezuela. all these companies are sticking by venezuela even as the country goes from bad to worse. argentina, not clear. chile being the only market maybe colombia the only one being worth in down there. all those companies are losing fortunes. >> how do you characterize visa ceo said 30% of customers are spending some of their gas savings on fast food on those types of things up from 25 last year. >> i think you buy these here. i thought that quarter was fine. not as good as mastercard. don't get mad at me but mastercard had a better quarter. >> slightly larger purchase volume. >> these two companies are led by great guys who i think are friends. >> friends. >> we'll talk more about visa and get to expedia and vf corp

and a lot more as we head into the first trading session of may. speaking of expedia, we'll talk to the ceo later on. one of the winners. >> he's smart. >> we'll talk about what's working for that travel website and a look at the premarket. the nasdaq dow and s&p hang on to gains from april. more "squawk on the street" in a moment. when a moment spontaneously turns romantic why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess.

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we've got two dow components in the earnings spotlight today. chevron, better than expected third quarter results. currency fluctuations helping the oil with its bottom line. visa beat the street with quarterly results, but guidance came below consensus. you mentioned purchase volume up 11. mastercard had 12. >> i still think this is a company that has secular winds. a lot of people got excited because of china. be careful. china is about a five-year process. that moved the stock up. made it a little bit, ran up ahead, but i do think if you buy visa on weakness you are going to make money here. i do. i think it was a fine quarter.

>> you are reading credit suisse's report. >> there was a solid beat. unit growth accelerating. those are benchmarks to keep this stock going higher. it's a very well run company. a lot of consolidation in that industry. >> exxon yesterday. upstream volume was up two. now we get chevron with a nice beat. >> production growth three. they had a lot of projects come online. they spend a fortune in australia. it's paying off. it is a very smart company. i think people -- am i biased toward chevron, yes. it's a very very good company. >> i did see whiting ceo said they could add rigs if oil hit

$70. how is the production picture changing as we hang around these high $50s now? >> the u.s. depletion rates are as bad as they thought, if not worse. the decline in production is going to be by q-4 rather dramatic. so therefore, you should expect that the u.s. will be a net positive to the overall price of oil. remember though if the dollar goes back up we are going to see oil back at $53, $54. a lot of people when oil was at $43, $46, talking $30, those people have to revise their estimates up. slowly, do it quietly. maybe 6:30 tonight they'll see estimates go up. oil bottomed. i think people are trying to reconfigure. whiting up seven from that secondary. >> wow. >> how about that? >> you mentioned that as a turning point. >> that was it.

noble. fabulous opportunities. if oil has bottomed and i think it has, a lot of companies can make a lot of money. i think that it's not as bad as we thought is the best way to put it. same thing with chevron. >> we've got a moment here. i want to get to gilead. $294 crushes $2.32. adds $2 billion, implies another buck? >> gilead's conference call was a thing of beauty. one thing i would worry about gilead, maybe they are making too much money. maybe there will be some backlash. the pill works. it's remarkable. the pill works. they deserve a lot of credit. their one-pill solution is working. gilead can go higher here. celgene was as disappointing as gilead was good. >> we'll get ford numbers in a moment for april and cramer's mad dash as we count down to the opening bell. one more look at the premarket

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i'm phil lebeau. breaking news from ford reporting april sales, increase of 5.4%. that is just a little below the edmonds estimate. a couple numbers that stand out last month, ford brand sales up 4.9%. f series sales up 8%. remember, f series the best selling vehicle in the country, and clearly as they ramp up production, crucial for ford as they go through the second quarter. >> phil lebeau in chicago. thanks so much. >> can i interrupt to say phil

lebeau is amazing. honestly. these are very hard numbers. i worked very hard on the autos. i'm the speed of sound, that guy is the speed of light. >> if you asked him to cover the s&p 500, he could do that. >> he's so good. >> time for cramer's mad dash. we've got an updade at chipotle today. >> this is long warranted. i said wait a while. let the bad quarter be digested. that is exactly what they did. they say could be inflection. comp sales get better. the pork problem can go away. the chicken, avian flu how that impacted really didn't buffalo wild wings. this has been a pork shortage because of inhumane treatment of pigs. you will see the stock go back up. >> we talked this week about people overowning restaurants because everybody knows the gas price. >> dine equity was a good

quarter. >> you don't think these guys are vulnerable to a change in sentiment? >> this is a high-priced spread. they want organic and natural. it's never figured closely with the economy. dine equity has. fiesta group has been hurt. i think that's wrong. i like that stock. jack in the box, sonic seems like such a buy to me but as long as gasoline creeps up, people want to take the stocks down. >> western union. >> this is an odd one. western union is making a big comeback. they've been hurt by immigration not going up. the sleeper within this company is their dot-com, their internet. they have contracts, they have cross border agreements with 100 countries. if you want to send money to china, they've got a deal. is there a western union everywhere. bricks-and-mortar is going to come into play. this is a keeper. >> what is the market cap on something like this.

>> it's not that big. i've got to tell you, no one looked at this thing in ages. it's making a move. i like this company. >> that is interesting. >> i like management. they are very smart. very international. smart guys. >> good eyes as always. we'll get the opening bell. final opening bell of the week in just about five minutes. don't go away.

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you are watching cnbc "squawk on the street" live from the financial capital in the world. the opening bell in just about two minutes on a friday. you know we had selling during the course of the week. in fact the nasdaq a down day today would be the third five-day losing streak of the year. >> i think we break it and you'll know if apple goes to $527. apple has been horrendous since they reported. i think the sky works quarter and takeover chatter for altera will put a bid underneath.

don't take your cue in linkedin or yelp. other stocks doing better. >> referring to a reuters story on intel they reportedly signed a standstill with altera earlier in the year. expires june 1. we know what that means after that. >> when i talked to david faber last night he said really this is not as important, but david understands the stand still stuff better than i do. i don't think this is a sign altera gets bid. they are not going to go hostile. no more hostile bid. >> a lot of interesting things in theether. a lot of interesting discussions this week.

we are going to get to cbs, fireeye, but first a look at the opening bell on this friday. s&p at the top of your screen. down here at the big board it's blackstone minerals owner of oil and natural gas in the u.s. celebrating its ipo today. at the nasdaq american woodmark corporation. >> these are much better than expected numbers. overall sales up 5.5%. edmonds estimate was increase of 4.4%. there is a rotation toward bigger vehicles in this country. april was the best month ever. not just the best april, best month ever for general motors when it comes to crossover sales. pick up sales up 22%.

average transaction prices for april, to 34,750. average transaction prices up more than $1,500. gm up more than expected in the month of april. >> that is a crazy statistic. >> not trading on u.s. trading in latin america. it's a big world. we keep making that mistake. everywhere that is not america has been hurt. don't trade off u.s. you can absorb that number and think things will be good and get hit by brazil and have no idea.

latin america must turn here. i had harman on last night. 60% decline in russian business. europe is still bad for america. >> you mentioned apple having to hold $127. we are about 75 cents away from that. >> if you are going to sell the stock off the watch, okay? then i'm going to go to canal street and buy you ten apple watches. i bet i can sell them for $200. >> we have ubs cutting estimates. we have reports it doesn't work if you have a tattoo. reports about the tactic engine

trouble. there is a lot going on. >> my 28 hours of battery life doesn't matter. it's hard to spend $300 or $500 if you don't see it in a store. it's got to be in the store. when you see it in the store and they start writing more for it this is a vessel for developers to write for. we'll see this watch do more than run. is that a gimmick? i don't know. that seems like a smart man learning how to use the watch faster than us. >> fireeye raised their full year forecast on increased spending trying to protect from cyber attacks. >> i spoke with palo alto earlier this week. people just need to spend more

on this. when you are a board of directors there is a committee. fireeye does not offer the platform palo alto does. you need these companies for the government, i think the s.e.c. is going to start demanding to know your cyber security plan. that will change it big. >> interesting. >> that will be a big game changer. the government west point, if you want to know someone who knows how to deal with cyber security, the academies do. get someone who went to the academy.

tesla. tesla. >> the worst performer on the s&p right now. first solar. isn't that interesting? >> i went over that quarter. that is a mistake. at one point it was down $6. they have very lumpy, very very lumpy ways to be able to get their quarter done. i think that the year is going to be good. i would not sell first solar here. this is another one. my eyes are glazing over. one time this one time that contract this. some companies are just -- you just wish they were walmart. not that you want walmart results but you say, wow, that's selling.

>> vf corp meets. cvs, the front end of the store did okay. sorry, pharma did okay. front end not so good. >> i was surprised the front end wasn't stronger. to go back to vf corp this is a shocker. what helped them was jeans. north face didn't help. it's not been a denim story for a long time. that shocked me. jeans have come back. >> a lot of talk about denim versus athletic wear. >> denim has gotten very cool again. you want to keep selling kevin plank? be my guest. he will visit your house and take you down. you are in his zone. >> he is a tough dude. >> yes. he is a tough dude.

his mother? every bit as tough but kind of nice hard edge to her. >> we spent time with them over the weekend. >> expedia up 7%. we'll talk with the ceo later on this morning. >> can i ask you a question? talking about people we met tony romo. i wanted to hate him. i met dick costolo, hard to hate. when you get a ceo that is liked, you get more benefit of the doubt. >> and visible. >> i keep thinking he sat next to you. >> who do you like this weekend? >> the guy who makes all the

money. i'm guying his stock. him and carpe diem. >> he is a fast counterpuncher. >> exciting times. >> this is the fight, derby and warren's meeting. big weekend. >> one will impact the market. >> dow up 110 this morning. we've got bob pisani on the floor. >> nice start. may first. puppet full screen sectors here. tech industrials, financials. we've been talking about the impact of the dollar. several companies today. very significant impacts.

newell rubber maid. look how much higher these numbers for core sales growth would be if there was no currency impact. that's an enormous number. clorox gave their 2015 sales guidance up 1% 2%. not bad for a company like clorox. they made it clear they would have been 2% higher, 3% to 5% on the up side. all the impact we've been showing you graphically the impact on the stronger dollar. clorox guidance better than expected despite the currency impact. we talked about exxon yesterday. chevron upstreamed profit decimated down stream was big. 2015 $1.6 about. 2014, $4.3 billion.

65% decline in upstream profit. this is the refining. $1.4 billion. first quarter last year, $700 million. it doubled. it's still, the upstream is the bigger pot. this time they are almost even. there is a big hole in the profits. this is the same thing exxon showed yesterday. this is why companies want higher oil prices and don't care if they get zero margins on the down stream. chevron, 2013 $11, now $3.75. hopefully this is the bottom in the corner. hopefully cost will go up. people have been playing on that idea for a while now. we've got a triple bottom there practically in that particular stock. hopefully, again, this is the bottom. sell in may and go away.

a lot of discussions about this. we asked our partners and i asked for a long period of time. i asked 20 years to go back. sell in may and go away. may to october trading the last 20 years, s&p 500 has been up 65% of the time. the average return has been a positive 1.4% in that six month period. what about the other side? what about november to april? what happens there? here the s&p 500 is up 85% of the time. there was similar but not the same results for nasdaq and dow industrials. s&p 500 was up more often from november to april and with a better average return 7.1% versus 1.4%. it's up to everybody to decide whether you want to pull your money out may 1st and put it into bonds. i think that would be a crazy

idea if you have an allocation 60%. any money manager will say stick to that allocation. is there a seasonal factor at play. >> we'll see you soon bob pisani. >> a lot of industrials doing well. the money going back into companies doing better. >> first day in may, let's get to rick santelli in chicago and check out the bond picks. >> good morning, carl. to many the last quarter was easy. here we are starting kind of over again even though we are a third of the way through the second quarter. yesterday the dow getting very close to zero. look at a two-day chart of 10s. we haven't challenge yesterday's high. the dow and s&p were quite

close, both within 1.5% yesterday unchanged on the year we are now only ten basis points away from unchanged for ten year note yields. open the chart up to middle december. we settle at $2.17. to many it makes sense. and if you consider to think at $1.91 last week we are up rather significant amount at 2.07% on the week we had a 29 session closing yield range that was only 13 basis points. let's look at 10s minus bunds. we are linked at the hip no matter what anybody says. we have breaking news and need to go back to carl. >> we do have breaking news. >> thanks so much. we are learning of new positions this morning dan loeb's third point has taken. an investor letter just sent out. they have what they call a significant stake in yum! brands. that is number one of the stock they say they have a significant

stake in. they tell investors they initiated their position in the first quarter based on their view the company was in the early stages of turning the page on recent troubles over in the chinese business. yum! brands number one a significant stake there. they also tell folks they now have a position in devon energy. they say the company stands out by combining limited down side with an underappreciated valuable asset base that can be unlocked through continued portfolio management and improved operations. they value devon's acreage alongside companies like cxo, xcp, pcd where they see significant asset overlap in significant, in certain plays. i should tell you dan loeb has been invested in japan in the past. he has once again in japan in a very big way. he tells his investors that they now have nearly 10% of assets invested in japan.

he does remain a believer in abenomics. the japanese prime minister was here visiting with president obama talking about the approaches and three arrows to end decades of stagnation in japan. dan loeb is constructive on the u.s. it's interesting as we watched what happened in the markets certainly this week the volatility has returned. some are questioning what sort of a correction if any that this is going to be what we witnessed in the market. let me just give you quickly some of the bullet points about why dan loeb says he is constructive on the u.s. economic data should improve. the fed does not seem to be in any rush to move early. a june rate hike seems unlikely. while investors are focused slowly on the first rate rise we think the overall path higher

will be gradual. again, recapping all the headlines here, a significant stake in yum! brands. a new equity position as well in den energy. 10% of assets in japan. scott, thank you for that. yum has gone to levels it has not seen since spun off from pepsi. >> if you are buying it off loeb be careful. the company is doing well. it just had a monster move. you buy a stock up four and because you are late to the party, fine. dan loeb has a much lower basis. >> you've been talking about profit recovery. >> yes. china is slowly turning, but the idea of buying something up four

because of dan loeb taking position. i just question it. i question it. >> all right. yum, $90 a share. when we come back what one teardown of the apple watch is telling us how much it costs to build the much-talked about device. tomorrow night's mayweather/pacquiao fight slated to be the highest grossing boxing match in history. there is a showdown over exclusivity. we'll take you live to las vegas. back in a moment.

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the apple watch is a high margin product according to a teardown by research firm ihs, breaking down the watch by component by component. they estimate the apple watch sport costs about $84 to produce, retails for $349. gives the hardware cost of about 24% of the retail price which

would give it one of the lowest cost basis among all apple products. labor is about $2 $2.50. >> nice high margin product. sky works, which provides the inside for apple phone. hold off apple three days. i don't like buying ahead of the quarter or after the quarter. i think it's okay to nibble. >> who knows how much they spent on r&d? >> you get a couple of guys who know how to write something, you're going to be thinking you absolutely want to own it. this is for 25 and under that never owned a watch in their lives. i love it because it messages me.

i have a few people i have to get off and call and it buzzes when they do. >> you got a phone call on our air yesterday. it rang at this desk. >> come on. >> we'll get stop trading with jim. dow hanging on to a 109 point game.

time for cramer's stop trading. >> biotech stocks have been horrendous. good to see celgene coming back. biomarin. that stock has been clobbered. that would be my pick to go back to where it was. excellent product, portfolio. reminds me a lot of genzyne. biotech is not done. >> what is on mad tonight? >> there are a couple of stocks i think you'll be surprised i decided to go positive on that i've been negative. we've got a company with natural and organic food.

and pool corp. and del frisco's. we'll learn about it. >> i'm hungry looking at that promo right there. >> it's a great place to go. >> great week and a good weekend to you. >> congratulations to the staff and everybody. did such a great job out in san francisco. >> a lot of people worked hard to make it happen. see you tonight "mad money." when we come back ism, construction spending and the ceo of expedia. don't go anywhere.

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good friday morning, welcome back to "squawk on the street." carl quintanilla with sara eisen and simon hobbs. do you sell in may or stay and play? that is the question after the nasdaq had four sessions down. market trying to make up for some lost time. dow up oil steady. >> let's get our road map for the next 60 minutes. strong rally going into the first day of trading for this month. we'll hear from cowan ceo about

what's ahead now for stocks. >> chevron handling beating expectations, but hurt by cheap oil. what you should be doing with the stock and how it could be affected by tesla's new battery system. >> expedia sharply higher today. we'll talk to the ceo of the online travel giant in a first on cnbc interview. hear what he has to say about hotel growth and that strong dollar. >> let's get to rick santelli in chicago. >> wow. it is interesting. march construction spending down 0.6. kind of exactly the opposite of the up 0.5 to 0.6 we were expecting. last month. stays unrevised here. we had negative 1.7 in january, february minus 1.1. now down 0.6. we haven't had three negatives on construction spending since the end of '09 and beginning of 2010. ism manufacturing, april number, 51.5.

that is a miss. looking for a 52 handle but still above 50. it's expansionary. when we put that in context, if i look at the rest of the year that seems to be about time for the lowest 51.5 now if we go to the sentiment on michigan this really gets fascinating. 95.9. that's darn close to expectations. keep in mind the reason this number is always very important is because it was only in january we reached the level of 98.1 which was the best going back to '04. michigan on the confidence side. that's solid. manufacturing, expansionary bit of a disappointment. three negatives in a row. construction. sara, all yours. >> looks like stocks are hanging in there. just a mixed batch of data. starting may on a bullish note. a big rebound for biotechs. dow up 100 points. nasdaq up for the first time in a week. the question is will this week's

volatility have investors selling in may? joining us cowan ceo jeffrey solomon. do you sell in may? it looks like a bullish start after a rough april? >> again, what is your time frame? are you a long-term investor? looking at the fundamentals that underpin where growth will be in the next three to four years? hard to make the argument you would be selling in may and going away. just because at the end of the day, it's tough to time those things perfectly. >> nothing fundamentally changed for you in terms of this multiyear bull market? >> no. i think the u.s. tees up well relative to the rest of the world. i think we are seeing some signs of growth in europe. i think asia -- >> our markets are underperforming the rest of the world. >> sometimes those are out of sync. it's not exactly instant gratification all the time. i'm looking ought over the long haul saying there is real solid underpinnings of growth over the next decade. if you are an investor it's hard to make the argument why you should spend any time other

than in the united states. >> thoughts on biotech? you are watching that carefully. we've seen some air come out of that trade back up today. is this normal? is there a bubble excess valuation going on here? >> i think this is par for the course in biotech. last year we had three pullbacks. if you're in that space, you should expect it. what we are hearing they have their shopping list. if you are really focused in that space and get pullbacks, these are great opportunities to buy your favorite names. i think the funds flow remain extremely strong. there's really a bid there for biotech on any pullback. i don't expect that to change any time soon. >> it's refreshing to have your bullishness on the show. when people talk about the next decade i'm slightly concerned it is a very long term view. these open questions to what is happening now. clearly, the economy ground to a halt the first quarter. federal reserve is obviously worried about it. they may delay interest rate rises. how do you explain to clients what is happening now? it may not -- is it a strong

rebound? >> if you are looking specifically at today, a lot of the clients we are dealing with are long term in nature. the long-onlies and hedge funds looking at fundamental value over the long haul they are tying together the make row economic environment with specific stocks. that is a solid way to be investing. we are positioning the firm for the growth in america over the next decade. today, there are always periods of volatility. it's just, that's the markets. when i look at the sell-off in april i feel like that's healthy. clean some of the froth out. makes people reevaluate where fundamental value is. find the names you like best and go to work. >> flat gdp. ism has not risen since october. when do we stop calling this transitory? is there a data we can say this is secular? >> government spending and fiscal spending is down.

the government spend is important. sequestration is important. they never would have been able to get away with this if it hadn't been for the low rate environment. we'll have 2% growth. i think there are great things happening in terms of the cheap natural resource supply cycle that have to work its way through. the consumer is in much better shape. that stuff takes a whale to play out. still looking for 2% growth. i think we are in decent shape. >> sorry to come back to this. i feel like way too bearish myself. if you've got this ten-year view and the central banks have been banked on qe in europe and japan here and inflated asset prices, over that ten year period, what happens to asset prices? do they exit? how do you argue -- where does this end this period of what the central banks have done that you can be so bullish. convince me it's not a problem. >> the u.s. leads. we've started to pull back on qe. we'll see rate rises. i think europe is a couple of

years behind. they have been for a while. i don't expect to see anything changing there in terms of the direction they are going with regard to qe. i think they are going to try to take the air out of the asset bubble. if you look at fundamental growth underpinned by cheap natural resources, capital flow is back into the united states. risk investing in china. it's all -- >> you did use the word "asset bubble." >> i think certainly assets are higher than they were in 2008. we came off a big trough. are we looking at a pop? i don't. i feel like we have to grow into it in some instances so we could have sideways markets for a while which makes the case for individual stocks selection. >> let's talk about where the real action is. the euro today is at 112.41. the dollar had a brutal month after ten straight up months. is that it? is that monster rally over? >> it's a crowded trade. honestly, if you sit around and talk to anybody, they are talking about i've got to go to europe this summer because it's

going to be so compelling. it's a crowded trade. >> it goes back higher? >> i think so. i think we are seeing some growth in europe but it is largely induced by i would say, qe. i am worried about greece. i think there is a perception that greece when greece exits, and i think that is a real possibility, everything is going to be fine. if i know one thing about markets, people will be asking lots of questions. you see strong dollar i think you see equity volatility on the heels of that discussion. >> do people tell you you look like bernanke's younger brother? >> yes, i get that sometimes. that's okay. i like that guy. >> given everything you just laid out, the fact some of the most crowded trades reversed in april, higher oil prices weaker u.s. dollar weaker treasury prices weaker stocks what does that mean for cowan and activity at your shop? >> so we believe in fundamental analysis. we believe in individual stock picking and active management.

i am definitely concerned about the fact the u.s. market is very tilted towards etfs. they buy the etf du jour. >> jeff solomon, aka jeff bernanke, ceo of cowan, thanks for joining us. >> enjoy clapton tonight. >> i certainly will. up next on the program, elon musk unveiling a new tesla battery for the home. it can be used for backup power or solar energy. plus live at the new highly-anticipated whitney museum in happen.

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elon musk introducing tesla's new battery last night in california. phil lebeau is in chicago with more on the announcement. it was grandiose and ambitious, as usual, from elon musk. >> this is what we come to expect from them. he holds the press conference in the evening los angeles time. it's almost a rock concert

atmosphere. last night he didn't disappoint. he unveiled the new tesla energy program. tesla is a sub brand of tesla. it means they are going to have a suite of battery systems, one that can be sold to the home one to businesses one even to utilities if they would like to partner up with tesla. they are taking orders right now. deliveries will start in the next three to four months. here is musk talking about what this system is all about. >> gives you peace of mind so if there is a cut in the utilities, you're always going to have power. typically if you are in a place that is very cold. you don't have to worry about being out of power if there is an ice storm. you can actually go if you want completely off grid. you can take your solar panels, charge the battery packs and that's all you use. it gives you safety security. it gives you a complete and affordable solution. the cost is $3,500.

>> it is kind of like a rock concert. there are questions that remain that people want answers to. first of all, that $3,500 to our knowledge does not include the quest of the inverter you would have to put in or the installation. how much higher for homeowners who decide to go that route? is it more cost effective to get one of these home battery units, the power wall than it would be to have a generator in case the power goes out? will nonsolar customers buy it? most of the press conference yesterday was geared toward solar customers. >> the obvious problem with solar power is the sun does not shine at night. i think most people are aware of this. so this problem needs to be solved.

we need to store the energy that is generated during the day so you can use it at night. >> i talked about this yesterday we expected we might see a sell-off in shares, sell on the news type of move. as you see today, it is fractionally higher following this press conference from elon musk. tesla and musk were trending earlier today on twitter. a lot of conversation but a number of questions that remain for people who are looking at this saying is this an option for me in the future in terms of a backup battery supply? >> fascinating. thank you very much. phil lebeau on tesla in chicago. here in new york it's a big day for lovers of contemporary art. in 50 minutes time the iconic new whitney building will finally open its doors. located in the base of the meat packing district. first lady michelle obama said the museum has the most beautiful freight elevator she's ever traveled in at yesterday's commemoration. the director of the whitney adam

weinberg joins us from its new lobby where he is standing by to welcome guests. welcome to the program. >> i guess it's rare for a curator like you to be able to design something like this from scratch or be involved in that process. >> we've been working with the architect to put this together for almost seven years now. our new building will show our great collection of american art from 1900 to the present. >> was it tough to work out what works to put in the inaugural exhibition? >> yes. the inaugural exhibition is called "america's hard to see."

it's from a poem by robert frost is the title. it really addresses the whole idea, as much as you put into an exhibition, this has 650 works, that even with all those works, you can't fully understand america. it's a complicated place, even artistically. you'll have works by edward hopper georgeia o'keefe. the idea is for people to look hard and enjoy the works and see the complexities and social and political aspects of life as projected through american art. >> what about the job of being director and raising the money. is the environment changing in which people donate or sponsor? i see bank of america has full page ads in the "press" today. deutsche bank is a lead sponsor. has what you do or have to do changed in its nature? >> i think for all museum

directors, particularly in the united states because most of our money comes from private sources. in fact, the largest amount of money actually came from private sources, individuals even more so than corporations. it's incumbent upon any museum director to be good fund-raisers. i have an incredible board of trustees led by our chairman and our president neil bloom. they have been fantastic helping us to raise the money. raising money is always about getting people to give money to things they believe in. being an art person i really believe in art. i believe in the power of art to change lives. that's why i think we've been so successful raising money. >> i would love to get your impression as an insider about what everybody is reading about allegations of price fixing or people calling for moring e more

regulation of art. what do you take about the market at the moment? >> my job as museum director is not to focus on the market but being in the not for profit sector, our focus is to make art accessible to the largest public. we have a civic role. we support any legislation that supports gifts to the civic good. >> looking forward to the block party tomorrow. >> absolutely. join us there. thank you so much. >> bye-bye. when we come back chevron getting hit by lower oil prices in the first quarter. still beating estimates though. what should you be doing with the stock? more with the dow still up 124.

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heard from chevron this morning. lower oil prices. good morning, once again. >> thank you. >> thank good norv for refining. how would you characterize the quarter? >> headline beat. a lot of it however came from currency. keep in mind unlike the rest of the economy we've seen a lot of u.s. oil companies actually benefit from the dollar strength. companies with international operations like chevron. what we are watching very

closely right now is what's happening to capex. this is what i called before on your show a story on steroids. it is seen across the spectrum. in the case of chevron, capex was down 10% year over year at the same time as production was actually up 3%. we are seeing better capital discipline. again, obviously as a result of the oil meltdown. and we are actually seeing certainly in the case of this company, we are seeing production positive at an inflection point. both are encouraging signs. >> how long does that discipline last though if we start to climb into the 60s and closer to 70s? there's been comments obviously the saudis have been talking. whiting making comments about the number of rigs they could add. does everybody just jump back in the pool? >> definitely not right now. the budgets for this year are

pretty well set. the really interesting question is what happens to budgets for 2016? and that decision is going to be made not today. doesn't matter where oil is today or tomorrow but where is oil going to be in q-4 of this year in november and december? so our view is that oil is going to be pretty flat maybe down a little bit over the next six months, but then it will climb back up into q-4 in time for companies to we think, ramp some spending back up heading into 2016. this current level of austerity is not ultimately sustainable. there has to be greater investment over time. >> given your forecast of what you see for the price, the fundamentals behind it the drivers of the recent price action does that mean you think u.s. energy production has bottomed and that inventories have peaked? >> inventories are still a head wind for oil, no question about

it. so the answer is no. we don't think they peaked. one reason we've seen a bounce in oil is growing signs the meltdown in the rig count is dropping so quickly that we are going to see a supply response sooner rather than later. we've started to see the balkan in north dakota begin to roll over. u.s. oil rig count is down 50% year over year. the rig count is down just about everywhere else in the world, not to the same extent though. the viewings to low oil prices is this precise kind of austerity. of course, it's not sustainable ultimately. there has to be greater level of investment. if not, we are going to see supply continue to roll over throughout 2016 and we don't

think that's realistic. >> one last question. if we are entering a new chapter on the fundamental price of the commodity, does that mean m&a has to come to a close? >> well we had a report on this on monday. the m&a that's for example, shell buying bg these are one-offs. these are the exceptions that prove the rule. corporate m&a has been slow across the upstream of the oil value chain for years. what's happening is behind the scenes below radar, assets changing hands, individual acreage blocks. individual fields. this doesn't get a lot of attention. no "wall street journal" headlines. so m&a has just not been that big a deal to begin with. the bid ask spread is too wide. >> really good insight. good to talk to you. talk to you soon.

the dow is up 140 points. yum! brands saying they aredan loeb is taking a significant stake in the company. sara, dan loeb says yum! brands is in the early stages of turning the page on recent troubles in china. is he right? >> that's been our view as well, which is that we've seen the same-store sales in china improve sequentially, even as the comparisons are getting more difficult. that tells you that the underlying transaction volumes are really showing a nice recovery. >> then the argument there, he continues, that's been the big overhang on the stock, on profits. this is a china story. it gets a lot of its revenue there. has that been reflected already in the valuation? how much room does yum have to climb? >> i don't think it's been fully

reflected. obviously, with today's move there's a bit more of that in there, but i think in general,ing when you look at yum and you compare it to some of the other companies out there that have very strong global brands, be yum still trades at a discount. i think that reflects some lingering uncertainty around the china business. >> they have a new ceo. not new to yum. i guess he was running the taco bell brands. how is he doing? is there any opportunity here for dan loeb to get involved on management? is there any action that needs to be taken pushed by activists? >> well i mean -- i think greg has only been in the job a fairly short amount of time as ceo. he was the ceo of taco bell

before that. he did an outstanding job as ceo of taco bell. to date he's done very good work as ceo of yum. he's taken a much more hands-on approach to the business that was a juggernaut for a long time. it allowed the business to run on its own. there are things yum can share with china management. greg brought a task force to china. people from taco bell for example, very good with consumer insights and social media. this is pretty unprecedented to have the ceo of yum bring a working group over to china. i think that's a very important development. >> finally, it does feel like

yum has gone through a number of these. i know two high-profile food safety scares in china. how do you reassure investors, how does the company reassure investors it won't happen again and they learned from their mistakes? it takes a long time to recover those same-store sales. >> yes. i think what yum has done has been the right thing. they instituted a whistle-blower program. they have closed-circuit television to monitor. they have incentive for their suppliers. zero tolerance and then they also have rewards if they meet certain or exceed certain standards. i think they are doing -- pretty much as much as a company can do. supply chain is very complicated. they have a lot of different

suppliers. i think they are adhering as closely to the kinds of things you want them to do as possible in a system that big. >> sara senatore thank you for jumping on the line talking about yum. big mover. dan loeb has taken a significant stake. straight ahead, expedia seeing strong bookings in and outside the u.s. despite the stronger dollar. the ceo joins us live for a first on cnbc interview when we come back.

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good morning, i'm sue herera. criminal charges are expected in the next hour. david weinstein will plead guilty to undisclosed charges. it is believed he ordered those closures causing massive traffic delays for days. it was later revealed the closures were part of a plan by members of governor chris christie's administration to punish the mayor of forte lee for not endorsing christie's re-election. the bird flu turned up at five more farms in iowa. if confirmed by the government the total number of american cases could top 20 million birds, making this the biggest bird flu outbreak in bird flu history. generic drugs are the most used medicines in medicare's prescription drug program,

however, more money is spent on brand name drugs led by the heart burn treatment nexium. in 2013 astrazeneca nexium accounted for $2.5 billion in drug spending in the medicare program. president obama picked the university of chicago to host his future presidential library. the university beat out the president's alma mater columbia university and university of illinois. no word on specifically where that library will be located. that is the cnbc news update at this hour. back to you guys. one of the top gainers on the s&p expedia cutting revenues and gross profit as expected. it's the growth in leading metrics that's pleasing investors. known to be the most lucrative of them all, the number of nights booked in hotel rooms around the world which is up 32%

on last year. joining us now, expedia's ceo from outside seattle in a first on cnbc interview. good morning dara. >> good morning. >> it's not just hotel room nights. air travel up 18%. car rental up 35%. how do you achieve that? is that just playing with the maximizing pixels? >> listen it is a game of inches for us. it's not just one feature we are rolling out but hundreds of features we are rolling out on a constant basis. it's improving the mobile experience so when they come in they can get great last-minute deals. it's hundreds of experiments that our employees are running. we roll out the winners out there to consumers. as you add that all up along with very aggressive marketing spam you are able to grow your brands on a global basis and continue to expand. for us the formula is working. we are hoping to keep it going. >> you know for those, for

investors that are pausing on the stock, and there are many analysts suggesting people do. not all but many it is because of the concern over what will happen to competition moving forward. your cfo said on the conference call you deliberately discounting what you charge hotel owners to get the bookings through. on the subject of competition, have you looked at amazon's new site? i'm sure you have they launched a few hundred hotels one page per hotel? what do you make of that competition? >> any time you are in a business that is as large as the global travel business this is a $1.3 trillion business on a global basis, you are going to have a lot of competition. we've been around nearly 20 years. we had lots of competition during those 20 years. we are confident that as long as we keep executing, as long as we keep bringing great deals to consumers on hotels.com expedia, we are going to do fine. it's a big enough market for

lots of players. we expect a number of players to be in this market some period of time. >> one thing i think people don't understand about what you and priceline do i've got hundreds if not thousands of people knocking door-to-door to actually sign up hotel owners on to your site exclusive inventory. i think you doubled the rate which you are doing that 14,000 in the new quarter. one question where are those new hotels? secondly, what sort of moat does it create around the business do you think? >> hotels are all over the world. we are signing up a number of hotels in the u.s. these are smaller hotels. they've got 20 rooms, 30 rooms that hadn't necessarily come online. if you are in the travel business, you have to be online wherever you are. the pace of our hotel sign-ups in europe in the asia pacific region is also accelerating very, very quickly. the more hotels we add usually our conversion on our sites go up. it's a nice cycle.

going out there investing, signing up hotels. that results in consumers booking more and more on our sites. it brings more traffic to hotels and makes us more important for hotel partners. >> the doj made a second inquiry as people expected on the brand orbitz. obviously the time warner cablecom cast deal failed. also the applied materials deal at the hands of the regulator. are you concerned that regulation is getting tougher in this country, and that what you thought might happen could be more difficult? >> our market share in the u.s. is significantly lower than comcast market share in the broadband market. the regulators have a right to ask the right questions. the fact is that the travel business is a highly fragmented business. we are one of the largest travel companies in the world and account for less than 5% of market share. we think as we bring these

brands on to our platforms, we can reduce prices for consumers. the doj is asking questions they have a right to ask questions and we are working with them closely. >> you bought apps for the new apple watch almost as soon as it was released. i think you had some exclusive access within apple. what did you learn for the future, and how is this new dynamic working for you? i guess it's too early to show up in the figures, right? >> it is too early at this point. what we are working on with the apple watch is about notifications. if you arrive at the airport, what gate are you leaving from? what baggage claim is your luggage coming into et cetera. we are focused on improving the notification for the customers at the right time. we will see how far the watch goes from now. we think it's a promising technology. we wanted to be first there with apple. we've got a great partnership with them. we hope to build on that

partnership. >> always great to see you, dara. thank you for your time. ceo of expedia joining us from outside seattle. >> thank you. >> thank you. when we come back linkedin huge losses today. latest in the string of social media stocks taking big hits. talking about 20% moves lower, twitter, yelp. losses on quarterly results. is there a social media bubble and is it bursting? who do you work for? your boss? yourself? your family? our financial advisors are free to

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welcome back to "squawk on the street." i'm morgan brennan with breaking news. transportation department unveiling details for trains hauling crude oil and other flammable materials. we are sorting through details here. these are rigorous new guidelines as far as what has been expected. some of the top things looking at here electronically controlled pneumatic braking system. a system that has to go on all the cars and trains hauling flammable material. this could be a huge cost for the industry anywhere from $8,000 to $10,000 per train hauling these materials. getting tank car shell thickness of 9/16 much stronger than the industry had been lobbying for. it could make the difference between whether these tank cars are taken completely offline or retrofitted. also getting guidelines one of

the big things time table for some of these new rules, three years to scrap the old d.o.t. 111 tank cars. you take a look at tank car manufacturers, all these stocks trading higher on these news. >> thank you for that. we are watching linkedin shares plummeting on disappointing guidance raising questions about investor confidence in social media companies in general. linkedin on track for its worst day ever. julia boarsston live in l.a. >> investors seem to be reevaluating their expectations that soles darlings can keep up growth. this is one of three social media companies whose stock dropped on a disappointing outlook.

guidance q-2 sent shares plummeting. yelp tanked on disappointing guidance. twitter declined lowest levels since january. ad products won't generate revenue as quickly as hoped. this is sparking talk about potential top and what it could mean for social companies in the ipo pipeline. pointing to the three stock declines, is this the start of a market correction in tech? investor and google analytics expert tweeted, secret shutdown yelp crashed and linkedin got fired. maybe vcs will stop funding every dumb social app now one that seems immune is facebook with its booming user base portfolio of apps. and improving results thanks to new prod ubts like video ads. even facebook shares are down over 5% over the past week and a

half since that company reported results. its results were impacted by foreign exchange rates. excepting facebook analysts point out the three struggling companies each has their own unique issues. there is one challenge they share. the ability to accelerate advertising growth. >> thanks very much, julia. it is a debate we'll talk about with jim stewart from "the new york times." we have sales numbers on toyota. >> weaker than expected for toyota in terms of sales. increase of 1.8%. edmunds.com estimate was an increase of 5.9%. what we've seen from most automakers has been a modest increase year over year in terms of auto sales. the pace many are expecting and we'll find this out within the next couple of hours, pace for last month, most believe it's going to come in at 16.8 or 16.7 million vehicles. toyota up 1.8% last month.

phil lebeau thank you so much. let's get to rick santelli with the santelli exchange. >> be thank you, carl. i'd like to welcome my guest, last guest of the week charles, he always follows the money biedermann. >> good to be with you, rick. >> i like what carl said. most of the data today were somewhat misses. we had lateral moves in the ism. stocks are on fire. a lot of that is logistics. what do you think about the year-to-date shrinkage in stocks. what is your calculation? >> well, there was an article the other day and someone was asking us if there are outflows which there have been outflows from u.s. equity mutual funds and etfs of about $60 billion. if there's been outflows year-to-date, how come the market's up?

there's been 334 billion of announced float shrink. more than half of that is due to cash takeovers of public companies. that's buy backs minus new the market has been going on. >> what facilities the ongoing -- what facilitates the ongoing supply of stocks shrinking in a world where investors obviously like to buy a financial asset that's in less supply and more demand because of the level of interest rates? what is the dynamic that keeps this game going? >> sure. well, the slowdown in final demand. companies got lean and mean during the last crash, they had decent profit margins generating cash but in a 2% growth world. companies are not spending their money to build more factories and hire people. they're shrinking the float of shares because that runs the stock price.

people running the companies in the united states make more money if the stock price goes up than they do from their salaries. so they're incentivized to hike the price. >> charles, i'm always debating this topic. is the low artificial interest rate environment that we see, corporate profits have been at record levels. now that may be changing. but how do you reconcile or is there a way to reconcile the fact that low interest rates facilitate buy-backs, but profits have been good? explain that dichotomy. >> well profits are good because costs are low, you have deflationary world where you know, we have excess commodities. so companies, the inputs are not up. salaries are not up. and demand sup a little bit. so companies are doing okay and since they're not spending for expansion and they're not starting new ventures, they're not risking -- there's very little risk-taking going on in this environment.

there were outflows from equity funds, $230 billion went into bank saefgs year to date. $230 billion -- >> nothing to me that's the big thing. 334 billion of shrinkage in the supply of stocks $230 billion more going into saving accounts investors may be preparing for something we should all be focused on with regard to normalization in the marketplace, thank you, charles. let's go back to post nine. >> thank you, rick santelli. breaking news regarding the death of freddie gray in baltimore from the maryland state attorney. >> baltimore right now, carl here's what we know. the prosecutor says there's probable cause to file criminal charges in the freddie gray case. he also says that the officers failed to find probable cause to arrest freddie gray. the arrest was illegal according to the prosecutor. the death of freddie gray has been ruled a homicide. by the medical examiner.

that's according to the prosecutor. in addition, they go on to say that mr. gray asked police for medical attention twice according to the prosecutor. and the weapon that was found clipped to his pants was not a switchblade, it was a knife. and it was legal. so that's the latest that we have. baltimore's chief prosecutor says there is probable cause to file criminal charges in the freddie gray case. back to you guys. >> major development. all right, thanks very much for the update sue herera. meantime, let's get back to the markets. we're talking about linkedin twitter, yelp with drastic stock drops this week. is it a correction? joining us as always cnbc contributor and pulitzer prize-winning "new york times" columnist jim stewart. the fact that we have seen 20-25% drops on earnings for some of these internet darlings what does that tell you? is there a question about whether their growth outlooks can be sustainable? >> i think at moment there are. these are very sudden drops and it shows how quickly sentiment

can move in this sector. but i was looking this morning, thinking to myself. i wonder if these things are turning into bargains or whatever. i looked back. if you look further back over the last year. they have not even given back the gains of the last year. even close to it. this was very sudden. but this has been a very frothy sector. i think linkedin was up 40% over the last year and it's still trading at very high multiples. i look at linkedin results, they're not bad. the actual numbers were pretty good. it was a forward-looking statement. were going to do some investment. that's going to a slowdown in growth here. but we're positioning ourselves for the future if i'm a long-term investor, i kind of like to hear that. >> we heard a lot of that long-term investors stick with it. it's been a bumpy april. you hear sell in may and go away. what are you watching after a flat month for stocks? >> well you know i've been saying here for a while that i find that you know the u.s. domestic market is pretty fairly

valued fully valued. i still think europe is showing some interesting potential, it's very strong. it looks like the greece situation has stabilized. they've got a new negotiator in there this week. it's done pretty well. europe is looking good. i know i think globally we're in a pretty nice spot. you know the fed statement, is the glass half full half empty? was saying that the winter weakness looks like it was transient factors. i think that's all quite positive. i don't see any big gains. as i've been saying like a broken record, a pull-back would not be a terrible thing in the u.s. market. >> the what levels do you go shopping? start plowing back in and where? >> we're definitely not there now. in my system i like to see at a 10% correction i definitely move in. and i'm pretty agnostic about that 10 i definitely move in. if i see sectors with a big correction i'll opportunistically move into those sectors. >>ky mention the column by hank greenberg.

which i love you have a turn the phrase sometimes, you really do. >> hank greenberg has been the former head of aig, has been embroiled in litigation for ten years. he's been accused civil charges of fraud. he's been fighting the government saying the takeover of aig stock was unconstitutional. he's now built the remnants of a small insurance company into a global powerhouse over 3,000 employees. >> age 19. >> as a journalist. can i just mention he wrote a book and he's turning 90 on monday. he goes to his personal trainer twice a week. he's hiking he's lifting weights. i have to say whatever you want to say about this guy, he has stamina, he has drive, he has principle. can we all be this productive at 90? well -- >> to think nothing of the lawsuit. >> the lawsuit has been carved out. it started out with five causes of action multiple counts. it's down to two items. you know i wouldn't want to bet the against the guy. >> forged in the war. >> jim stewart, as always good

to see you, on hank greenberg's stamina this weekend in the "new york times." let's send it over to john to see what's on deck. >> well this is this a setback or is it a social bubble pop? linkedin twitter, yelp all down nearly 25% on the week. we'll take a look. also a $5 billion valuation, unicorn, we'll tell you who it is. and apple watch demand. is this just a matter of it not being available in stores? or is something further amiss? all of that and more coming up on "squawk alley."

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