no revenue but hey, it will be worth millions. >> when you see the sock puppet that's when you worry? >> it's true that may be the signal. the sock puppet. more when you actually announce you're a democrat. i know you're a democrat. >> i'm a democrat at heart. i think you're a republican at heart. >> this is what we need in this country right now. >> i left the lights on for you. make sure you join us tomorrow. squawk on the street is next. >> good wednesday morning. welcome to squawk on the street. i'm carl with jim cramer at the new york stock exchange. stocks trying to make up for yesterday's losses. adp did surprise the down side. second month in a row under 200 k. oil does hit $62 today and the 10 year just below 220.

road map this morning, the markets coming off a weak day especially for the nasdaq but pointing to a higher open. adp does miss. >> an $8 billion deal in bio tech. it's market value more than doubling this morning and we're going to have more on sales for us and that continued speculation. >> and looking ahead to earnings from tesla and alibaba sliding to an all time low. first up data from adp shows they added only 169,000 jobs in april. meantime, oil prices continue to rise. wti topping 62 sense -- since the first time in december. once again, can't hold 2,100 although, i think you're probably interested in the bio tech stuff today.

>> what can i say. these companies, you look at the variations and it's a look at the actual market. i got labor running too hot. oil going up way too fast for this market. over the last week a lot of money being lost in bonds world wide. $400 billion. not a good set up. not a good set up. >> madp 169. the estimate was 64 k. >> this is tempting.

>> is that what they said? >> sometimes when you're interviewing ceo's, it's like business is great. his business itself is taking share building things out making actquisitions but a accompany that doesn't do what fed ex does for one portion of the business you start thinking about wait a second it's not that strong. mexican commerce. >> the trade numbers yesterday turned to the market. the question is of course, how much of the treatment dollar is going to give relief. this employment number on friday, it's always important. this one is bigger than usual, i think. summer is hereunder it doesn't feel like summer. too much disappointment. disney yesterday closed down. >> it closed down.

moving the bond markets, approaching negative yields at point 5 is now point 55. >> people losing billions. a huge move. >> euro's. >> you got a lot of people borrowing short and lending long. that's what's happening in an environment like this. >> we're making it sound dyer here. the s&p hasn't had one close since april 24th. is that 10 days ago? >> warren buffet would say ignore what these guys are saying. everything's fine. i know in the end, you know inflation is something i don't like talking about and i think i can make a case you can talk

about inflation. i don't think gasoline is still down a dollar every year and natural gas is low. i think that the data day al gor rhythmic rhythmic. >> somemore chatter regarding potentially a deal regarding k crm. microsoft sales force says it does not comment on rumors of speculation. rick was asked about a potential microsoft sales force combination. here's his response. >> i think microsoft is far less likely to be an acquirer here an oracle. it's a much better fit. they're in the business want to own the market. mark use to work for larry ellison and i think that oracle has excess sales capacity to absorb this. >> it would be creative for either accompany.

>> i was with mark yesterday and the idea he would work for mark. >> let me ask you to question. >> i hate. >> so do i. >> we are because it was up yesterday and got halted for volatility. let me ask you to question. you're going to take a guess here. is he a seller? >> i think he has many interest in life. i went to see the children's hospital with him and if you wanted to ask me what his passion is it's children's health. the problem is you can sit here and speculate. >> they have larry ellison. mark happens to really like him. he did not like steve bomber.

these are all public comments. i'm not saying anything. i feel like we are stuck here. mark is yesterday i went for the fifth time. mark, give it to me in spanish. >> also we're dealing with the stories. companies thinking about doing things all the time. >> you do it. whoever buys sales force gets in the cloud. >> oracle may have there may have been something that went on a while back where oracle made some sort of an approach. i don't know what it was or how it was and he got some people together but frankly, oracle is not doing this as far as i've been able to tell and if you're microsoft and see the reporting on it maybe you think about it. the question is what's the story, what's not and you got a stock that's 74 bucks and i

don't think he's a seller. >> he's got a 60 story building he's building. he's a young man and loves the accompany. i do not have anything from mark other than the fact he can't comment on it. mark happens to be a guy with a lot of different interest. showing me how he can run salesforce.com off his apple watch. >> which by the way was cool. i had drinks with nicole tonight. that's my. >> i think we've just look at this. >> i can't give in to this. >> let's move on to an actual deal that's been announced. more than doubling in the premarket. that after it agrees to be

acquired by pharmaceuticals. the purchase price is 8.4 billion after giving cash. the deal would give access to the experimental early stage treatments for a rare metabolic disease. it will be highly dilutive. as i said it's half cash half stock. 136% premium. rare diseases here which have gone from being sort of at the remote parts of bio tech to being an important component of it and generating enormous amounts of market cap. why? for a number of reasons. the genetic caps over the last years you go to the group that represents that population. r and d failures have become

very low. sales and marketing cost are low and the prices are sky high. that has led to the likes of the. >> l.a.l.d. if you dpoog l it, you'll see what a horrible disease it is. there's 3,600 people this would help. they use to have abunch of $200 million drugs. >> they depend upon the health care system. you take this and it's half. how they price the drugs is often how much of a cost for

united health to maintain these people's lives. j.j. has no desire to sale. he has four high powered drugs. when you see this david was elexel alexion not wanting to sale. >> this is not going to be until 2018. i don't know the answer to that question but those who say and to those who say we're in a bubble of course the stocks have been coming down lately, of course, they negotiated the price lately. it's a larger premium than otherwise would have been. it is half cash. it's not like they're using their stock.

>> we are in the golden age of drug discovery. i think that's worth mentioning. we seemed to have moved. >> because of the geno exactly. >> mortgage apps aren't responding quiet yet. there's a feeling they are soon. >> they talked about with money gram, we got to make a move right now. to me you ought to take a breath. i think it was a good story. they were making billions of dollars. i think there may be an urge to merge that's gratefully misplaced although not as bad. >> no it wasn't back in the late 90s. two huge tell con equipment

providers that got together. here listen you have one incredibly hot stock trading in for another that's higher and not going to see increasing for quiet sometime. >> it should have. >> alexion, you want to get better pipeline biomarin has better. >> and the growing in sales. >> the goal for the companies is isolate. find doctors who know these patients have this hard because these diseases look like other diseases at time and it's a race defying the people who need the drug as opposed to the unmet need of hepatitis c and millions of people have it. >> when we come back what to expect from alibaba and tesla

and we'll talk to a cofounder for periscope. s&p has failed to put four straight winning days together since the middle of january. more when we come back. doug. you've been staring at that for awhile, huh? listen, td ameritrade has former floor traders to help walk you through that complex trade. so you'll be confident enough to do what you want. i'll pull up their number. blammo. let's get those guys on the horn. oooo looks like it is time to upgrade your phone, douglass. for all the confidence you need. td ameritrade. you got this.

during yesterday's session the shares fell to the lowest level sense the accompany went pub lek. down 24%. the key concern amongst investors seems to be the questions about growth and merchandise value. will it be in the 30s plus%. how much of that will be lower due to their cracking down on counterfeits on the site? these are questions investors have going into an important quarter watching the stock prices fall rather dramatically. >> when i was over there and they were setting those crazy

records was. >> government? >> how much crack down have we saw, for instance all the sudden cracked down onover all purchases. they are encouraging consumption but at the highest and amongst the elite. there has been a crack down by the current leadership in terms. >> counterfeit, is that just. >> there's counterfeiting everywhere. >> when they take pains to try to really come at it it becomes more of a question. i think talbow is more of a question mark. it's smaller merchants that pay and get noticed through advertising. what's the rate going to be there? but. >> we'll see. >> he's frozen hiring and no longer the richest man in china.

>> he may actually be happy about that. >> what does he say about yahoo? >> well you see yahoo and what's happened to it. they're going to be celebrating about 15% ownership. >> yes, it trades at a certain extent. they will say that the poor business is getting it for nothing. it does have some value. at least others. >> why do you look at me? >> people who are buying census. >> we'll get them all together. >> why not. >> maybe we'll get rick to talk about the others. >> anything you want. >> this sort of adds a lot. >> we'll get cramer's mad dash

and count down on the opening bell. christine also skred actualed to speak. both of them take q and a and we'll bring you any headlines as they come out. meantime, take one more like. by the way today the fifth anniversary of the flash crash. the dow dropped almost a thousand points in the last few moments. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score powered by starmine, will help you

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i really like her music. >> mad dash on this wednesday. where are you starting? >> i do this because noodles is back where it came public. this is a disappointing quart. they have sales really disappointing. i thought it was important how oblivious they were. they were doing congratulations on the job. stay focussed. if you work at noodles, you're not doing that well. you took out colorado the d.c. metro, austin. we're doing well. no you don't say that. can you imagine saying that? we're doing well. you don't ask to risk performance. there's not 164 verses 163. noodles, forget about it. every other restaurant chain i talked to maybe it's in their

stars. >> okay. >> let's talk about one that's doing well. it's hockey season. nhl, there's a guy who will be on as ceo. he kind of reminds me of these canadians. lending club i don't want to do that because he's a nice guy. lending club a firm is doing the same thing, by the way. this is landing on its head 170% increase. lending club is the way that a lot of people are getting it. >> since it went public which is not long ago. >> no because it had so much pizazz pizazz. now the pizazz is starting to take out and you're talking about actual business. >> there's a pizazz chart there. that shows me. >> yes. >> yeah. >> remember that. >> absolutely.

i'm going to add that by the way. that's a new ride. it's called crack in two. >> we know things are going well for theme parks. >> yes and lending club. >> all right. we got a lot more stocks to keep an eye on this morning and the broader markets as well. we'll see how we do today. opening bell set to ring in five minutes. stay with us.

you're watching cnbc squawk on the street. live from the financial capitol of the world this wednesday. the opening bell in under two minutes. so many earnings we haven't gotten to including wendy's, news corp., buzz. >> i've got to tell you ea conference call if you want to hear about excitement what they have both fifa madden but they have got star wars guys and star wars is going to be gigantic. that accompany is hitting all sill enders. it's a joy of a conference call. >> interesting. >> they have a lot of things going. now, the number of devices.

3 billion devices. once again, i questioned if we had productivity out today, it wasn't that good. everyone's playing these games. they're all playing star wars battle front and dragon age. 600 million devices going to 3 million and china doesn't have fifa 3 yet. >> a lot of fifa played in my house only on friday. my 12-year-old loves it. >> thesefifa instead of doing homework. >> i love watching it. it's like watching a game. >> bud is doing well. i think people are playing dragon age. that's my conclusion about the american world wide population. >> you mentioned noodles and accompany before. wendy's is going to be up almost 6%. they beat by $0.02 with $0.07. they're going to sell about 640

restaurants and refine some debt. that sounds like a lot more cash. >> neal makes a good tasting hamburger. my wendy's is clean and fun. i love going there. there. >> it's not hard control. >> i think it's important to point that out because it's been a very successful term at a time when mcdonald's stalled. the pretzel burger they should bring that back. that came and went. i told them to bring that back. no. >> i tell you what, i think a lot of people wanted mcdonald's to have a pretzel burger or something menu wise. >> look at the sea of green, sky of blue. this is incredibly ree dick ewe louse. >> a lot of green at the top of your screen.

we mentioned xp. burnstein goes to out perform. >> i think it's big money until 2016. warren buffet likes it. the halo lasted until 11:58 monday. ever since then things have been downhill. the strength in the accompany, what you hear is you may think it's a retired brand but it does have a franchise. it's got a great franchise. other companies in the industry industries are very come pet evidence. you rarely need anyone in the credit card business that's a bit of a genius. i think papal is exceptional. we're going to do a lot of work on that. >> that split is not far away. >> no. not at all. >> we had devin with us last

week. papal will be a publicly traded accompany in a couple of months. >> grow grow grow. >> yeah they have weeds. >> b.m.o. has a big note on the financials. their new order of preference in the money center is the city jpm, b of a and then wells. >> that was disappointing. i tell you. bank of america is not an expensive stock but that was incredible. jpmorgan has been an amazing stock and i think that kind of watch that thing and jamie came on the show and said listen, they've got a ton of money. >> i keep an eye on alterra. i can't tell you how many

shareholders i've heard of over the last couple of weeks wondering if they're going to engage with them. no word from the accompany. what i know is entail would be there to meet them should they choose to reengage. they were reporting last week about a stance that expires june 1st. the question becomes would entail take it upon themselves to go hostile. it doesn't seem likely. they started the whole process by making an unsolicited approach privately which led to the stalks and the $54 bid. it's been interesting, the pressure alterra is under. may 11th is their annual meeting. there's going to be no vote campaign against the key director there. we'll see whether they choose to reengage. it's one certainly worthy of watching closely, altera.

>> i think it's important. i spoke to the ceo and we got major entail last week. we talked about mark whether mark is a seller. the idea that man is a level headed turf guy that he would go hostile, it just doesn't seem like he's that kind of guy. >> yeah nothing says you can't continue to try to put pressure on them to come back to the negotiating table to some fashion or another. we'll see. what i've heard second hand is they come away from the meetings saying these guys don't sound like guys giving everybody the hies man heisman. nothing's going on. >> it's been very beneficial. a lot of people feel they will meet. >> we mentioned restaurants. papa johns is going to be a new high today, jim.

up almost 8%. $0.55 beats by a couple of pennies. >> when i spoke to patty at dominos, categories is categories. this is at the expense of mom and pop. just the pizza category is very very strong. that's amazing. >> amazing. actually m.p.d. has a report out that convenient stores are seeing a 20% growth on pizza. it's the second biggest category since burgers and climbing. >> it's a remarkable renaissance for a product people weren't that excited about. pizza hut is doing well. they've been really having a bit of a come back. and again, the mom and pop people, you can't compete with the technology of the dominos, the ease, this is an industry very frackmented. there's a lot of growth ahead for all the majors in the

business. it's tremendous mag it's tremendous fragmentation in the pizza business. >> bud and bud light continue to lose share but the stocks are up. >> the revenue was good there. they tend to bring it tot bottom line. beer has been a growth category. consolation has been the winner for a long time. consolation being the beneficiary of the justice department. consistens consist consist consistent. >> what were you saying at the bar for cinco de mayo. >> i couldn't get a seat at my own place. i'm not kidding. they were nice people but i couldn't get a table.

it kind of like erked me. no table. it's my place. >> that's a good thing. that's a high class problem. you want to walk in and not be able to get a table at a restaurant you own. >> actually with friends i would be able to say hey guys. he said jim, there's a 15 minute wait. i said just a second. he said yeah there's a 15 minute wait. >> that's funny. we haven't mentioned apple i don't think. >> we haven't. >> the large bond is accompany is pursuing. the accompany outlined a plan about a week ago when it reported earnings. it hit the bottom markets again of course. they've been known in the past for timing. they did a large bond offering a couple of years back. >> they called it perfectly. >> then they've gone overseas and done some swiss frank issued bonds or some stuff in euros.

>> stock rolled over yesterday and took the whole market with it. it was pretty brilliant. such a brutal day. i don't think we captivated enough about it. there was a gigantic program out of nasdaq yesterday and apple was the leader on the down side. >> $200 billion capitol. giving it right in your pocket and we know they can do it because they're borrowing at low prices. >> devan, marathon, can you chase these? >> a lot of them down because of the frack attack. >> yeah, they belittled me when i liked green mountain coffee. but that's okay. it's business. but i do think this group snapped back and congratulations to the ceo of occidental.

chesapeake spent too much during this period. a lot of people pumped a lot of gasoline. oil in order to meet cash flow needs. the idea was to keep your oil in the ground until prices bounce backward. >> yeah i think they did downgrade today. >> a lot of these stocks were back to where they were. it's tricky. devan had good production growth. >> with all that dow managing a 30 point gabe.in. >> on that frankly crummy report future held in there. we're modestly on the plus side. weak dollar materials doing well. energy, that oil rally is continuing today. oil is at 61. they all had earnings and trading up 3 or 4%.

only telecom is the down side. overseas a couple of emerging markets are rolling over. they hit a 15 year high a week ago. it's rolling over a little bit. it's four of the last five days. there's talk about tighter margin requirements. there's a lot of head winds and cross currents right now. that's looking a little bit choppy. the other one is india. that was the big wonder last year and hit a historic high not long ago. back in february early march, it's rolled over quiet a bit here. it's about 9% from the resent highs. we talk about the high of the rising oil prices hurting them a little bit. whatever, we're at lows for the year over in india. two companies with earnings. we talked about lending club. i love them. i thought loan originations, they originated $4 billion in loans last year.

there's talk they could do eight or nine by 2016. double that amount. look at that chart. you were talking about the poor chart. three reasons the chart is not looking good. one is the increased competition. two, there's some concern out there about what happens when we get into a more normal interest rate. they're expanding into small business lending as to whether they can do that. so 10:00 laplanche will be on. another one i want to talk about is virtu. high frequency trading firm. you want to know where the growth is this is the key thing they use, their adjusted net trading income currencies is where they're really big now. these market making firms do well with this high volatility. 100%. agent pacific all right. up only 15% or so.

virtu only went public just a few days ago at $19 trading near 22 and certainly successful ipo even if it was delayed by a year. david, back to you. >> thanks very much bob. i want to get back to one of my favorite situations. will any of it happen? will some of it happen? which parents of it will happen? we had abunch of different things occur. we had put out a 45 page report mylan spent a lot of its time talking about the virtus of its bid for perrigo. a lot of the it had to do with the view of the stock price. if we assume you're right that

the stock price is 55.31, it still implies a multiple of 22 times your trailing 12 month. that's still pretty darn high. now, of course, if you say we belief 68 and by the way, it is probably closer to 68 than 55 the uneffected stock price. we can get into that at another point, it's 25 times. 25 years is not bad either. for their part mylan feels like you know what we're dealing with the take over law and 2.5 says we'll bring it to shareholders and we're going to let them decide. the question becomes well will they, your own shareholders also decide. take a look at the transit action before i move on to that subject. you can see that in fact a lot of these deals have been done at multiples in that area in what is a very, very active market as we know broadly speaking. back to mylan.

will they be able to get a shareholder vote to go ahead with the perrigo deal? now, if you look eye to eye, face to face with rob corey, the chairman of mylan whose helped build the accompany to what it is, you'll get the sense there's not a chance he will ever sale this accompany to teva and the reasons, well, just read what they wrote last week. we talked a lot about it on the show. they haven't seen a letter like that in quiet some time not from a corporate board and a chairman and a ceo. those are all the reasons why but that being said if they continue to hang around will it prevent or continue to have in the meendinds of.

mylan shares were up the day they announced for perrigo. that's because they knew teva might be coming for them. frankly, it may not be teva that motivated my larkslan. an activist that's motivated a guy to continue to want to acquire. which by the way, they've been doing for years and years to quiet positive effect for shareholders. >> look at this for yesterday. bye, bye, bye. >> it's worked. >> models work. >> models work. the question is what happens there? who knows. >> the hatred. >> yeah it is. >> it is unusual. although correy simply believes they're headed down the wrong track with multiple different managements at this point and would not be in any way shape or form the right fit. >> there was a delta house who

commented about the board. >> right. >> dean i love that. >> what college was that? >> oh let's see. what was the name of that college. >> we've been on fire on the animal house. >> we have. don't forget knowledge is good. all right. let's head to the scene in chicago. rick. >> well thank you very much david. today we're only up one basis point. a half a basis point at under 220 and tens. yesterday was the third highest yield close of the year. march 6th to 224 and march 9th to 219. by the way, all three of those are above 217. look at a two day chart and not a lot of range and an important spot to be at as we're above yet's high yields. if you look at a year to date chart, you can see the left and right side are pretty much lining up. you have to go an extra month. the longer the maturity the closer or higher it is to where it settled last year.

you can see these are the highest yields on a closing basis since early december. the investment grade corporate etf, it is now down on the year. year to date on the dollar index. so fascinating. we're getting a lot back. we're still up about the midpoint of the year from where we settles. 94 and a half 95. if we look at a year to date of the dax, i know bob has been talking about global equities. it's hard to see they match up. the euro is having an effect on the dex. the stock market up to date and down a little over 1.5% today. what's noteworthy is it is giving up a bit of a ground. 20 year chart shows its all time high in the fall of 2007 was a whisker under 6,000. carl, back to you. >> thanks we'll talk to you

soon. when we come back it's been almost five months since lending club went public. the game plan for growing the online lender and after they said an apple executive and ceo of j.c. penny, ron johnson launching a new online retail venture. you'll hear what he has to say in an online interview. 56 points people sold right at 2,100. we're back in a minute. ♪ ♪ ♪

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two days to go until the big jobs number. that means another chance for you to nail the number. april nonform payrolls use the handle at squawk street and the hashtag nail the number. the prize today is a i won market mug. we'll hand it to jim in a moment for you to sign. >> very nice. >> jpmorgan sticking by 260. i see uvs sticking with 265. they point out the usual, jim,

that adp tends to miss by about 45 k. >> geez i got to tell you we are in a market where there are people who want this number weak and people who want this number strong and they seem to cancel each other out. on a given day, the people who want the market strong and think that the fed is going to raise rates. >> people are short. >> yes. >> you will have until one minute for the job numbers to tweet us your predictions. it's the closest guest whose first wins the prize. we'll get stock trading with jim in a moment. the dow down a quick 67 points. don't go away. 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.

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manage service appointments and find answers to your questions. you can even check your connection status on your phone. now it's easier than ever to manage your account. get started at xfinity.com/myaccount time for cramer and stock trading. >> herbal life's quarter was along a lot of different prass and china was a surprise. china, they talk positive but i want to urge people to be careful. there is a hedge fund manager who i think can come on any show and talk about how herbal life is not a accompany you can invest in and today is herbal life's day and then the empire strikes back. so those who are in there saying

this is the beginning, remember there was a man on air earlier this week saying that this basically should not exist and it's an important mission for him. so one day at a time. >> what's on tonight, jim? >> we got a accompany that's there are controversial now. stocks getting hit at a quarter. spectra boost given and this is my period rancic hint to explain to people how oil and gas work in this country and then ppg, chuck has been one of my backable ceos turning the accompany around ahead of dupont. good show good read on the economy. >> what you do not see as strong is apple selling some debt wendy's reidentifying some debt. are. >> now that the earnings are done, they can come back in. if you get a strong nurks there's too much. people don't want, ray would be very bad for the economy.

bad. >> so dune off the table. >> the others will sell. >> talking a lot with your hands today. that's not new for you. >> i'll be working the bar tonight. i need my hand. it needs flexible. get warm. >> warming up. >> yes. >> there you go. >> mad money tonight 6:00 p.m. eastern time. when we come back lending club, one of today's earnings winner and former j.c. penny ceo ron johnson on his new start up and all things apple too. back in a moment. [ male announcer ] your love for trading never stops. so if you get a trade idea about, say organic food stocks schwab can help. with a trading specialist just a tap away. what's on your mind lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light

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good wepszdnesday morning. welcome back to stock on the street. take a look at the market's. early gains lost as a number of things working against the bulls. oil at 6 the. the euro hitting a dollar 13. we'll keep an eye on all that as we get through the morning. lending club is trading sharply higher after quarterly results. we'll talk about what's ahead. plus ahead commodity research.

bank of america merrill lynch gives us his take on the future of oil prices. talk to investors and be prepare for the second half of the year. wendy's selling more of its restaurants to franchises. find out how you should be playing all fast food stocks. >> coming up later, it's the 2-year-old start up that became valued at $4.5 billion. we'll talk to the co-founder live to talk about the accompany. >> meanwhile, we're taking a look at the markets. dow down 80 after an earlier gain. the euro reaching new high since february. concerns over economic growth and the jobs report just two days away. can we expect a strong second quarter. a lot of moving parts here.

institute president and julianne emanual and equity strategist. julianne on the economic data couldn't get an adp report and private sector jobs above 200,000. that doesn't bud well for friday. >> actually the way the market is trading now, it may go well for friday in terms of reaction because of two strong economic data seems to be the risk now. for us the trend continues to be somewhere in the neighborhood of 200,000. that's a positive unbalance. >> we'll talk about market reaction in a moment. your thoughts, is it harder and harder to keep your optimistic view for the second quarter and the second half of the year? >> when you look at the data i think it's better in the under lying. you got to consumer strengthening with the nonmanufacturing. you've got to bank lending numbers coming in better. real income was up 6% last

quarter. that's a big move in real income. there's a lot of underlying trends with the noise happening. >> so you're sticking to the positive momentum that we're seeing in the economy. as far as the world wide sell off, it's hitting treasuries and happening over in europe. is it a question of an uncrowded trade or something changing underneath the surface. >> we like to call it the end of money for nothing. basically, people got carried away taking it down to zero. the fact is europe is starting to improve slowly and as the world economy rebalances as we've wanted to and we're seeing that in the euro and oil, we think it's going to be positive as we look forward. >> it doesn't seem positive now. >> they are. it falls under the category of i would say be careful what you wish for.

we wanted the dollar to come off. we wanted commodity prices. now it's back to 60. we were worried that inflation was too low. >> is it happening too fast? >> no i don't think so. yields are finally coming back up to a normal level. all of that puts pressure on equities. it's not anything that dereallyails the equity bowel. >> it's an echo of 14. >> we've seen this before. >> june off the table? >> i think it's probably off the table. i think it's probably september december. i'm a amazed at how many people think the fed is not going to do anything for 2015. you've got the employment data where it's at and the rising inflation speckations. >> overnight, it was more sell off in chinese markets. after china was on fire all yearlong, another 1.6% slide on

top of nearly 4% the day before. is it what's overseas that's happening impacting the u.s. treasuries and u.s. equities right now? >> to a great extent. if you think about a portfolio, the kind move we saw, the five or six standard deviation move over two weeks. risk managers global ri are saying let's take chips off the table and that's china and european equities. >> it's and biotech. we've seen do you want to take advantage of the sell off in places like bio tech or is the boom over? >> health care is going to come in at almost 20% growth for the quarter on earnings. you got health care at 20 financials at 16 and technology and industrials at 8% earnings growth. between those four that is a nice quarter, right. if you take out energy, you're

running at 9% earnings growth for this quarter. that's solid. i understand the impact of energy. >> is that the play book? you follow where the earnings growth is. you don't go to energy. >> i think you've got to follow a play book and it is over defensives. as the economy strengthens in the q 2 and q 3, i think there's value in the sectors of the market and that's going to be financials and stuff. >> do you blame people who say i'm going to sell at 2,100 and bye at 2040 2050. anything wrong with that for the remainder of the next six months? >> i don't blame them. we are stuck at a range. the support the 2070 and the top is 2020. we've been trading back and forth for quiet some time. it's hard, we need to breakout of that range basically. >> how are you taking advantage of the extreme moves? >> well, the thing that's been most comforting the us over the last week is the way financials

are actreacting. >> thank you for joining us with the dow down and s&p 3% off. >> speaking of biotech. big deal ood. alexion to buy synageva. morning meg. >> this is a big deal. alexion sells a drug that's approved for ultra rare disorders. these are diseases that effect fewer than 10s of thousands of patients. very small patient populations but alexion charges $400,000 per patient per year for the drugs. now, what they're getting in

synageva is another accompany working on strategy. their expected to get approval this year in a rare enzyme deficiency disorder. alexion has another drug added to the market soon. three potential drugs by the end of the year. the market is not super positive on alexions side. 140% to where synageva was trading yesterday. we're seeing a lrklexion down. companies like biomarin all of these companies going way up in trading today. analyst coming out and saying it's a seller's market. these are rare assets valuable assets because of how much they can bring in and charge for the drugs. we could see more here but this is obviously contributing to the bubble. >> what a day, what a year. thank you so much. when we come back lending club

beating expectations for the first quarter. stocks up 6% today, nearly 20% since december. we're going to be joined with the results and tell us why the accompany has been raising revenue outlook for the year. dow is down and squawk on the street continues in a moment. [ male announcer ] whether it takes 200,000 parts ♪ ♪ 800,000 hours of supercomputing time 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's

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shares of lending club are jumping up this morning after the accompany reported better than expected earnings.

joining us here is lending club founder and ceo. we are joined with the inner section of banking and technology. clearly, the street likes results managed more than double revenue and the number of loan modifications. what's driving the strength of your press release growing faster and more than you planned? >> we saw another matrix performing very well in the first quarter. we are expecting some as we get less quarter. we don't feel much of that impact as we have really good marketing efficiency and great sasks. all of these metrics helped us grow faster in the first quarter and gave us confidence to raise guy dance for the remainder of the year. >> where did you find new customers this quarter? there's a thought out there there's a limited pool of

borrowers to go another traditional round and harder and harder to tap into that pool as you already call many of them customers. >> yeah so we, i mean we've been going fast and we reached a nice scale but we're still very small by the size of the banking industry. if you look at the total credit card balances outstanding in the u.s., it's about $900 billion and the case for our customers to come to us is really to pay off a high interest rate most credit cards are priced at 17% and higher and refinanced. they fall for consumers. even though we helped $1.6 billion, the balances get refinanced this quarter, it's a

small amount compared to the total size of the market. >> they reported their average apr fell by 10 basis points. they're pricing the loans to stay competitive. you guys don't breakout your average apr but i'm wondering if you're having to reprice a lot of the loans to compete with other players in the market. can you tell us what the average apr is? >> yeah so far, along the average interest rate is point 5%. average apr is 13.5. that's been coming down. there's a very different situation. remember we're a marketplace. in a different situation from

balance balance. >> interest rates driving interest rates down actually positive because that enables them to get access toand the earnings are what they're expecting. interest rates, drop that we made last year and last quarters where they're helping the efficiencies on the market base without taking away any of our revenue. >> i've noticed some of the traditional big banks like golden stocks and city group have gotten into your business a little bit. this idea of lending over the internet to smaller investors and businesses. what do you say to investors looking at your stock who worry about the low barrier to entry and anyone can do this and it might as well be the big banks with the brand recognition?

>> there's a reason why we are the market leader in market base lending. i think they're all significant and significant and that's what effects. >> we're looking at banking as being a set of problems with technology. it's not the mind set of traditional banks and i think that mind set helps us automate small task and helps us generate more efficiency and make the

process easier for customers. it shows how our customers really love the brand and product in addition to loving the interest rates. >> you mentioned marketing, marketing expenses went up the quarter as did stock base compensation. those are two of the points analyst have that's so unpredictable for public companies. can you tell us what to expect over the course of your first year, how we should be watching those expenses. >> yeah we actually had the revenue and taking into account marketing expenses. if you look at marketing expenses expenses from last year to this year they came down as a percentage of revenue that

helped us with the higher where at about 13% this last quarter we're guiding to 80% for the year up to our guide answer of 10%. again, it's causing us to raise guidance. it's the better marketing efficient efficiency we've seen in the first quarter. >> thanks for joining us here. thanks to kayla for joining as well. >> making some headlines regarding equity evaluations. they're rapping up q and a and washington. steve monitoring that. >> thanks very much. a q and a where they asked each other questions. they were talking about evaluations and different parts and whether or not they were bubbles created by low interest

rates. they said evaluations are quiet high. here's what she said. >> we've seen a compression. i guess i would highlight the equity market evaluations at this point are generally quiet high. they're not so high when you compare the returns on equities to the returns on safe assets like bonds which are also very low but they're a potential dangers there. >> unusual comment from the fed about values. they said overall the market risk for not moderated. when the fed hikes there could be a sharp jump in rates. she is not seeing a broad based pick up in leverage or rapid credit growth. three halmarks of a bubble. but the comment on equity market

evaluations i think is going to be echoed around and tossed around today carl. >> we did see the dow drop a bit on that news. thanks very much. when we come back just raised $500 million in its latest round of funding becoming the largest investment ever. it's now valued at $4.5 billion. companies only two years old. the ceo is going to join us live after the break. ♪ ♪ ♪ ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ ♪ [ birds squawking ] my mom makes airplane engines

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dow down 105. equity evaluations are quiet high. let's get to dominique for a flash. >> carl good morning. shares of zulily getting hit hard. sales fell short and the guidance guidance. a target price cut by analyst. >> thanks a lot. in just two years zenefits.

parker conrad joining us this morning. good morning to you. >> good morning. >> that's a heck of an evaluation. no pressure or anything. can you walk us through the business model and talk about why there's such potential for growth. >> well basically, any business in america with less than a thousand employees has this problem they have 20 different systems related to hr. things like payroll, medical insurance, 401ks. because all the systems are disconnected, any time you hire or terminate someone you have to add or remove them from 20 different places. that creates all the administrative work and what zenefits does is take the different systems and connects them up and we give companies and employees a single place to do everything. that saves everybody a ton of time. kind of the wrinkle in the business models we give the

core system away for free and we make money. >> we mentioned dan. prior rounds have included founders, coast at that ashton kutcher. are you worried at all about becoming a poster child for sorts sorts? >> i don't know too much about the broader markets for this stuff but what i can tell you for our business is we think we're going after an enormously large market. we're growing really quickly and we think there's a chance that we could be sort of a real system of record for employee information in a lot of companies and we think that's a really valuable business and there's always a risk that you screwed up somehow along the way but we think we've got a pretty good shot at building a good accompany. >> on the business model, i can it's interesting, conrad you lend your services for free with

small businesses and take commissions from the insurance accompany. it sounds great. you've also gotten regulatory pressure over it. i noticed utah banned you at one point and had to reverse the decision. what's the problem with this type of model? >> we don't see it as a problem. the way we think about it is that listen one of the groups of folks we compete with are insurance brokers and zenefits has been growing quickly and that means traditional brokers have lost benefits. some brokers are reaching out to state regulators and they're essentially seeking protection from competition from the sort of state departments of insurance and saying listen we're losing a ton of business. you guys have got to do something to protect us. in most cases the regulators look at this and say you know, we're not going to take action here. this is not something we should get involved in. in utah they did ban us briefly but then very quickly overturned

it. >> you've got about 10,000 businesses. i'm sorry i called you conrad instead of parker your last name. >> that's okay. >> you've got 10,000 businesses where do you expect that number to go from here and are you being helped with obama care and the fact small businesses are having problems navigating this? >> there are 5 million systems in the united states between 2 and a thousand em employees and we think we can get to a good chunk of those guys. the interesting thing about obama care one of the things it does is it simplifies the way health insurance is priced which makes it easier for us to do it online and also increases a lot of the come clienspliance hoops. the thing about a great system like zenefits is take it off the plate and do it for them. the extent that gets complex for

businesses, it actually creates a real advantage for us because it's a problem we can solve. >> parker does zenefits use zenefits because given the growth, do you have an hr person now? >> we have an hr person but we didn't hire anyone in hr until we were 800 employees and that was a real attempt on our part to see how long i could do all of the stuff myself as a part time job while being ceo of the accompany. zenefits definitely runs on zenefits and that drives the development. what are the issues i'm running in day-to-day and what are the problems i have and how can i build software to make this stuff easier to manage? >> when we have start ups on the air, we ask are you planning to go public and when? with this kind of evaluation and funding, i'm guessing that's the last thing on your mind. >> to tell you the truth, it's

not something we've spent a lot of time thinking about. we're trying to build a big business and i'm sure that kind of stuff will take care of itself long term. >> we're going to watch closely. appreciate you coming on today. >> thank you very much. >> parker conrad the co-founder and ceo of zenefits. >> keeping our eye on oil here. let's get up to the inventory data at 10:30 on oil, jackie. >> important number just came out from the eia. a drawdown of inventories of 3.9 billion barrels. that was supportive of prices. we've broken the $62 million mark. you can see we're up another $0.50 here. i will say this. the cushion number also being watched. i can't see it quiet from here but it's a negative number. traders are going to see that as supportive as well. what took us through the $60 mark yesterday was geo politics. we're watching yemen and these

situations are supportive as well. these want to continue higher. traders told me we could see $65 by memorial day. >> on our way. 62.42. >> straight ahead, we're going to stick with energy. why gasoline has been. we're back after a quick break. ♪ ♪ ♪ at chase, we celebrate small businesses every day

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good morning. here's your cnbc news update. the co-pilot of germanwings flight 9525 appeared to practice

a controlled descent two hours before he crashed the jet into the french alps. that's according to investigateor investigators investigators. the actions were not only deliberate but premeditated as well. iran says the cargo vessel last week was a -- the private plaintiff was pressing charges under the owners. their differences are expected to be resolved within days. hundreds of rescued migrants were brought to sicily today. they were rescued two days ago from two different vessels in the mediterranean sea. south korea's government is urging to release the university of oregon's student who was being detained. that is your cnbc news update at this hour. back to you guys.

oil prices hitting another high for the year. will the rally continue? joining us this morning is the head of commodity research. good morning. once again, good to see you. >> good morning. thank you for having me. >> 10 bucks in just about a month and now the unexpected draw. weak dollar. is it just up from here? >> i think there's an upside. we're creating a june contract and moving to a july contract in the next couple of weeks. i think as we move into the september, october contracts we're going to start to see down side pressure again. the short run is all about demand and it's all about the inventory.

>> explain that. how would you characterize the picture going into summer? >> even if you look at the data that came out today from the department of enjer i, the u.s. demand is up a little bit. we've seen the demand. certainly supported the picture. the oil exporting countries have actually tanked because of the impending recessioning in russia. it is really kind of an old story here. it helped push the demand higher. we'll see prices peaking with the next 4-6 weeks.

>> we had you on and predicted a lot of headlines when you predicted $30 for the first quarter. now we're here at $62, don't you have to change your forecast a bit? >> >>. >> we charged the forecast from 41 to 31. we did see 42 the first quarter. we bought them $10 above what we initially thought. then what's frankly surprised us is the strength of the rebound in the second quarter more than anything else. the constant week to week on the inventory data. >> attacking the fracking companies calling them a business that burns cash and

doesn't grow anything. does that feel misguided to you given the environment you're predicting? >> i think it's an equity specific issue. certainly, we know for a fact all of these companies have been burning more cash than generating generating. look, i think there's a case to be made that the world needs oil because it's part of the production base of the planet. we need that oil. many of the companies are profitable and going to do okay as long as the prices revert back which is what our meeting term projections are. not really my expertise but that's what equity is saying.

>> eog came out and said they planned to produce output. double growth could return by 2016. isn't this a self-filling prophesy here. how does that work out? >> yeah, exactly. we don't think production is going to be dramatic here. in fact an important number is production data for the u.s. it shows production flat. no signs of decline yet because again, horizontal fracking pad railing, all this is improving productivity. i think the story around some of these frackers build around improvements and tighter coastal controls as well as strong growths and frankly, a good thing these companies are going to grow at a good clip. the prices we just had is taking

a lot of investment out of the projects. you're going to need to shell back. these companies are not worth all that much. i think it's a fair discussion. >> some people betting on american ingenuity for sure. thanks for your time. we'll see you next time. >> thank you. >> 69.13, pushing $70. the future of live streaming video periscope making waves and attacks in social media worlds. the ceo of periscope will be

joining live. dow down 85 here on squawk on the street. i mean, come on. national gives me the control to choose any car in the aisle i want. i could choose you... or i could choose her if i like her more. and i do. oh, the silent treatment. real mature. so you wanna get out of here? go national. go like a pro. over 20 million kids everyday in our country lack access to healthy food. for the first time american kids are slated to live a shorter life span than their parents. it's a problem that we can turn around and change. revolution foods is a company we started to provide access to healthy affordable, kid-inspired chef-crafted food. we looked at what are the aspects of food that will help set up kids for success? making sure foods are made with high quality ingredients and prepared fresh everyday.

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the servers and software on a mission to find the perfect match. and the mom who gets to hear her daughter's heart beat once again. we're helping organizations transform the way they work so they can transform the lives of the people they serve. back at hq with more. no surprise at oil makes new highs. >> that's right. 3.5% moves here. oil prices move to the upside. wti prices topping $62 a barrel since december. you have leading the pack higher up over 3% today and occidental petroleum. just boosted their production outlet for the year after

reporting a quarterly adjusted profit. still a nice move higher by the tune of three quarters of 1% carl, for the energy sector. back to you. >> thanks so much. let's get over to the group this morning. >> good morning, carl. my guess todayt today, what's your name again? >> ira. >> when i look at the resent upgrades of the european economy, part of it is on less inflation oil, oil, oil. i think in december all the stories coming out it's a ticking time bomb. it's not. it's a market moving on supply and demand. it's unlogical unlike water issues in california. the market is dealing with this in an efficient way. to think the commodity was going to stay down forever, made no sense. >> it's so up front with geopolitical risk.

now you start building them up as prices go that far down. you've gotten rid of what you can and now there's all kinds of events out there making people nervous. let's rebuild it. >> okay. droggy january 22nd. we had a guest yesterday on closing bell who said the main fundamental watch for our interest rates are good deals. >> i wrote a blog and said bill's wrong. it's a french 10-year note because the dynamics are underlying and the french economy is not near as positive and strong as the german economy. when bill gross made that call with 23 basis points

differential. this is a huge problem as you eluded to january 22nd. that's the date they announced what the qe in europe is going to be. we are now lower. people said we do the same thing in the united states. yes, we did. you have a different dynamic. for the same reason warren buffet got in the mix over the weekend. their they're talking about why the european bonds are such a sale. what we don't know on any given day is what the ecb is going to be at. this morning they were in by the prif peripherals. i guarantee you in the next five days mario will be screaming about the bond speculators

destroying what the ecb was going to do. >> where were the speculators born? where did the eggs come from and the type of speculation we see? from central bankers themselves have they not? we studied central banks and central planning. this is a mess they've created. janet headlines today she's nervous about higher rates and higher evaluations and stocks. what do you think? we're going to have to go here. we could go on forever. thank you for being a guest today on this wednesday. carl and the gang back to you. >> you guys could go on forever. thanks a lot. when we come back wendy's following in the footsteps of mmc mcdonald's and burger king. what do these moves say about the future of the accompany and the industry when squawk on the street continues.

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with xfinity from comcast you can manage your account anytime, anywhere on any device. just sign into my account to pay bills manage service appointments and find answers to your questions. you can even check your connection status on your phone. now it's easier than ever to manage your account. get started at xfinity.com/myaccount stocks are cutting their losses, s&p unchanged. shares of the number three u.s. burger chain, wendy's are climbing 6% up more than 5% this morning. kth reporting better-than-expected same quarterly restaurant sales and announcing plans to sell its bakery operations after mcdonald's and burger king plan

to sell more restaurants to franchisees. how should you play the fast food stocks? let's bring in restaurant analyst david palmer. do you own wendy's or mcdonald sns which i know you've been encouraged some of the moves they're making. >> well while we like wendy's, we see the upside as just okay at this point. they were making great strides, we were a little bit about what they were doing in terms of value to the consumer and we're going to wait to see how the summer shakes out. clearly burger king is winning with a lot of value, taco bell is mcdonald's is making some rumblings of going that direction. as far as them moving to an asset model wendy's, they're doing all the right stuff. >> just in terms of menu changes and marketing changes to appeal to a younger demographic that wants healthier food and wants chipotle burritos how are the big three doing in terms of

pivoting to the shifting consumer. who is ahead, wendy's burger king or mcdonald? >> in a lot of ways wendy's is doing great stuff with the way they play well in salads they had good results in march with that. burger king is a log with value. they have new edgy advertising that's working with chicken fries. which is you know sort of amazing that that is cutting through as well as it is. but there are different ways to win. one way is food quality. the premium end. the other way is with value. you've got to play both sides. and i fear for wendy's, they need to play a little bit more on the value side. and mcdonald's, the biggest player four times the size of some of these, their burger peers. they're going to be playing harder on value. how wril the summer play out? we'll be waiting to see. >> a good point, david. thinking back to the video, it might have been a little broader and less specific than the street might have hoped at the

time. but if you were going to take away one promising element of mcdonald's initial turn-around plan what would it be? >> their major thing is that they're going to refranchise, try to become a little bit better in terms of the mix and returns to shareholders. but in terms of the u.s. turn-around, the key has got to be they go to quality and they go to value and this summer they're talking about doing some more value. i hope they do something to give people a reason to go in and try the new products. the u.s. needs to play both ends of the barbell to get things going. >> it will be an interesting summer. wendy's for now sup. i hear they're testing a veggie burger. hearing good things about that. is that a good thing? >> i haven't heard about that. you know with wendy's, i think they've done very well with their core. but for them they need to play better on value. that's where i think they're

lost to burger king which is comping up 10% lately. >> david palmer thank you. let's send it to john ford with a look at "squawk alley." >> we'll be talking about the rumors about salesforce perhaps getting taken out by microsoft. the pros and cons of different players and the head of peri scope is going to join us live and ron johnson, formerly head of apple retail has a new venture. we'll take a look at it and how he views the overall landscape. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing?

♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

breaking news on pioneer and david einhorn. >> a call under way with president and ceo tim.gov dove. he responded that david einhorn, the hedge fund manager. criticizing the bullish view and said they're one of the mother fracturers one of u.s. domestic drilling companies that is in trouble. here's what he had to say. our view and mr. einhorn's view

regarding the assumption of analysis and conclusions differ materially. he said our assets are among the very best in the domestic oil and gas arena. the economics of the wells are very strong. in sum what they were saying is crude prices are only one input to assessing the business overall and they think that einhorn may be relying too much on the price of crude which has fallen dramatically in the last year. >> kate kely. thanks so much. i think the stock of pioneer is down 1%. what david einhorn calls the mother fraktcker. >> it is 8:00 a.m. in seattle, washington. 11:00 a.m. on wall street. squawk alley is live. ♪ ♪ ♪

♪ >> welcome to "squawk alley" for a wednesday, joining us from pallet or, roger mcin anain a mcnamee. markets try to claw back from the lows of the session. first up microsoft considering buying salesforce after the company was approached by someone else about a possible acquisition. microsoft is only considering a move and a deal is not yet in the