>> that's all i'm saying. i'm feeling really. you throw that in there. >> i didn't have hair like that when i was 17 s. >> we're both raging capitalist. >> make sure you join us tomorrow. it's been great having you guys on. squawk on the street is next. don't move. good morning and welcome to squawk on the street. we are live from if new york stock exchange. let's give you a look at futures. we are poised for what appears to be an up open crude oil. the 10-year figured yesterday. with those retail sales numbers, there's the yield now. 2.211. we got a lot of news. let's get to it. our road map starts with dupont.

it's over now as i've been reporting. dupont has one, the proxy fight with trion and four potential directors being nominated. we talk to ellen coalman on the interview later this morning s. april retail sales coming in flat. macy quarter results miss. danaher's deal valued at almost $14 million and they're also splitting into two. big deals this morning. we'll start with dupont. something we've followed closely since it began. trion has owned the stock for quiet some time.

dupont prevails. i was listening to others on squawk box who don't believe. how much efforts they've put into this and were very articulate arguments that they would win at least one seat going in perhaps as many as two. i would argue it's a win for dunopt here. whether it's a turning point for activism, we cannot say. very interesting to note that the index funds voted were dupont and again trion. have

typically had a great deal of influence. they recommended where the index funds didn't listen to them. >> they decided to look at the long term performance and she had good long term performance. i think they will say the income wants deserve a shot. i would say this is a total stone wall but it wasn't. they listened. go back to the possibility of the high tide for activist. len didn't come on in campaign. stayed in back and stood by sandy, the lead director under attack. >> sort of led the charge

against triumph. >> the numbers would not have come in where they were suppose to. one thing they were saying at the meeting and the statement they put out is we'll be watching closely to see whether or not you can meet your commitments. >> you have earning misses and juggling of businesses. they got into a business that's a much more proprietary and secular growth. there's only five stocks in the dow that did better than she did. >> that matters a lot. it was in some ways an uphill battle. everything else being said that couple of slides that showed dupont performance spoke volumes. >> at the same time we cannot ignore facts dupont stocks can

be down. also, i think there's a sense that maybe he'll sale. he says there's a long time holder. this is a remarkable win, david because i really felt that index funds were going to say i've got a vote and so it's over. >> if they had gone the other way, it probably would have been two potential directors including for trion. that's an important switch here. we'll get detail on who went with whom and it can be important. trion is only engaged in two proxy fights. mr. johnson, the ceo became quiet friendly in fact he continues to help them serve with trion now. >> they lost this one.

i think there's two kinds of activism we talk about. there's a kind you can't lose and that may be the high water mark for that kind of activism and then there's the activism for someone whose done poorly. >> along the lines of a dark. jeff smith where they took the entire board. your points are good ones. in many ways when they appointed ed green with the board, these were both serious guys and that woke up a lot of the shareholder base to say okay we feel we're being listened to. >> i think there was a strategic mistake. trion had a huge amount of stock. that's what they would tell you with dow chemical. enough, i've got to do my job. there was a lot of time spent fighting this battle. i think coalman in the end said

aye done a good job. what do i have to do to satisfy you? and he says i have more stock. you sold a lot of stock. i own stock. it got very ugly david. >> it did. apparently they shook hands inside the meeting. it is a victory for if it had gone differently, of course, we would question why they bothered at all. we could put ed on the board last summer. they offered miles as an alternative. he made it about himself. that may have been an error. >> strategically, meyers is a great businessman. someone who come along a lot. they're all high end guys david. this is not, it may have taken a low road approach in the end but you would have won either way. why does he have to stay in? that's why the stock.

>> let's end on that. what do you think? dupont is going to trade, i think it's 70 bucks. >> it's going to be an earning story. why take it? she's missed quarters. >> that's true. she has mised quarters. many have where the dollar is strong and she's not done a bad job. that's why it was so hard to fathom this job in the end. >> of course they do have a lot more coming up including the spend which is not far away at this point. >> it was too hard to understand exactly why he feltd it had to do what it did. i would like to speak to them. these again are companies doing

well. i like pepsico. i think they're so smart verses the problem which is trying to come up with a nonbeverage strategy. i think there's going to be a sense among some activist. it's like wow, you know what, i've spent a lot of money. maybe it's not worth it. >> when we were in san francisco and marty put the memo out saying sell early, maybe that was the high water mark. >> maybe point out he's been the defense. >> the minister of defense. >> let's get on to retail sales this morning. government data showing the retail sales came in flat for april. also on the retail front macys first quarter results were below. yeah, what else? severe winter weather. macys boosted both its dividend

and share buy back. these retail sales numbers are not impressing anyone and i don't know where the benefit for lower gasoline prices have been showing itself in retail. i haven't seen it. >> it's ideal with a lot of restaurants. >> yes. the companies did have a $6 ticket. companies have $8 and that's who seen the six flags. macys had problems. this is surprising. some temporary disruption executives on the omni channel. that's disturbing to me. chicago, vegas and san francisco. the buy back is for real. the accompany is well run.

i am disappointed. >> although, i mean the stock is still up over the last year or two years. macys does have the flagship issues. terry is a great manager. he don't want to sell stock. he's doing a lot of things right. he's not doing more things right. okay. let's get an update. >> from the side of that. he's alive in philadelphia, chris. >> reporter: yeah good morning,

david. as the sun has come up here in philadelphia, we've seen a lot more activity from the investigators. as i imagine it was difficult last night after the train derailment occurred. they were going using flashlights going around the wreckage trying to see if there were anymore victims. the latest we know so far, there are six people who died and five others in critical condition in local hospitals. more than 65 people admitted and treated for various injuries that would be consistent with the train crash. things like broken bones, concussions, things like that. this morning as the sun come up we seen investigators coming out to the wreckage. a team of 20 people here in philadelphia. the lead agency trying to determine the big question why did this occur last night? it happened about t9:30 last night going from washington to new york. it just passed through downtown philadelphia when it hit a curve

here and went off the tracks about 9:30 last night. this morning they brought out large cranes being used to move cars. she are go in and download the data, the black box, if you will, of the train to try to figure out if it was going too fast. they said this morning they don't believe it's any bit related to terrorism. >> frightening picture to watch. coming up we're also going to

have some major deals to tell you about. it is a big morning for dupont. we're going to have a live and first on the scene intershrewview. this accompany out with its first earnings report since going public. let's get a look at futures. more squawk on the street after this. here at td ameritrade, they're always working. yup, we're constantly making thinkorswim better. like a custom screener on your desktop, that updates to all your devices. and you can share it with one click. wow. how do you find the time to do all this? easy. we combined every birthday and holiday into one celebration. (different holidays being shouted) back to work, guys! i love this times

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yesterday was an auction. today it's a deal. danaher made a deal yesterday to buy pall. danaher announcingeing plans to separate. a science and then growth and industrial. the growth accompany will have revenues of 6 billion. the science and technology 16.5 billion in revenues. this is a big deal for a accompany we just talked about yesterday in ages. by the way, the price is a big

one too. talking 120 around there, 127.20 may be a bidding. >> right thousandnow, i think this is indicative. i think we're all caught up in what greece and europe does. verses what the fed does here. in the end, two really very good companies. obviously, willing to pay a lot and danaher goes up. i want both companies. i want the test in measurement. i think it's a descent accompany. oh my, the life science and business they have. it is so on fire. also you introduced me to henry. fabulous business. wow. these guys are just have always been great stories of capitol. it's our problem. >> that's right. the rails brothers there. we talk about activism and

dupont in some ways they're they're own activist. they're splitting the accompany. >> they need to do it. >> they will make the point in the great environment. you can pay 20 years. if you're paying 7 percent or 8% for your money, that's not the same as what you're paying right now and therefore, that's why you can do multiples as high as 20. >> the smartest guys are doing this stuff and people have to look at what happens when you buy a accompany. even if you think you overpay, danaher is up. they're going to work on it. this combo, the split, you want both pieces. >> interesting. and apparently both have to fire power on their balance sheet to not do deals of this size. >> i would buy a stock that's

been a bit. >> all right. we're going to talk about the williams deal. maybe in the mad dash. what do you think? >> that's fantastic. >> okay. we're going to mad dash williams. we have that coming up with jim as we count down to the opening bell. why not. take another look at futures. sure. we're right back after this.

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minutes. another big deal we didn't get to yet and now we will. that's williams buying williams partners. huge deal. $13 billion. tell me why it's important. >> first of all, these are big winners. this accompany, you're talking about eliminated partnership. this is a c corp. why does that matter? the cost of capital is much cheaper. david, there's a consolidation going on in the pipeline business. it's so gigantic and the business will be used. that's in large part because of shell where natural gas is about a dollar. people don't look at the they've have i up price. rbm has done the best work so far. you see this williams, it's all game change. there's so much natural gas and it's pennsylvania and ohio that you got to move it and williams is one of the pipelines going to the northeast. they have chris cross and 30% of

the natural gas in the country. people who want yield, david williams, wpc. this sock is up now. 10-15% annual dividend growth rate. you just know. were they just, they're not all going to be built. this is about the natural gas revolution which is not the oil revolution. we'll talk about natural gas. natural gas is very, very cheap. from the south to the north, people reversing is going from the north to the south. one of nation's country is not talked about enough. this is about reindustrializing america. >> more consolidation. >> it's coming.

that's the point. it's going to be williams kinder and the other guys are going to get bought. that's my thing. that's why williams has to be sequel. get the cost in capital down and that's how they raise their distributions. not because they're able to put price increases. this is about consolidation and a great industry for people who need yield. >> right. always amazes me your depth of knowledge. named pipelines. can you do that at home? we have the opening bell a few minutes away. dupont's ceo victory day as all 12 get re-elected for the board of dupont. my name is jamir dixon and i'm a locate

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this is when i turn to you and say what's the key to the

market? >> i think it's going to be delta. why? the transit importants have been horrendous. a lot of people follow the index and this market has to go down. this could be a major game changer. the rails have been horrible. >> return to capital by delta. >> huge. it shows you once again you think these companies don't have the momentum. the generation of the airlines is opposite of what it use to be. the transit ports are going to be turned around. >> dogs living with cats. it's crazy what's going on. air liern airlines actually generating above their cost in capital. generating returns. it seems impossible. >> they have consolidation and can't do anything. i've got to tell you, microsoft goes back up. i need the rails to do better and airlines to do better and delta is doing its darn best to

make it happen. >> i've been watching the transit ports as we hear the applause. opening bell set to ring here. also take a look at the real time exchange back at the headquarterers. here at the big board, avg technology. online accompany. over at the nasdaq lollipop theater network. it brings movies. >> getting some feedback from the macys call. it is to talk about the dollar in tourism. i don't like that david. i know their story in new york has a lot of tourism. frankly, they should have done that. >> shares in dupont are down 6%. >> the accompany managing to

feed trion. joining us we have the privilege of being joined by ethe ceo of dupon. what was your reaction when you found out dupont did indeed win? >> in these kinds of situations you never know. we're pleased with the outcome and i think. >> how close was the fight? in all indications it seems to vote was close. >> we don't have final numbers yet. for a few days until it gets filed. it's hard to tell. >> can you give us a range of where it was? >> no i can't. i don't want to present what the numbers are, but i think that will have to be filed and we will be able to tell that. >> at the end of the meeting you said there's more work to be

done at dupont. what is it you're planning to do? >> it's a very exciting time for us. we're six weeks away. that's our chemical segment and we're spending it for our shareholders shareholders. it's a small accompany but a chemical accompany. at the same time we're launching a dupont at higher value. focussed on our science matters and customers around the world. it's a big separation for us a big change. our work is never done. the world changes competitive dynamics change and we always have to be open to understanding that and seeing what's going to create the best value for our shareholders going forward and it's a very dynamic toimime and we're excited about the future. >> in the meeting we're told they will continue to monitor dupont. that means you're likely to engage with him on a continuing basis, i'm assuming. describe to us what is your

engagement and what do you anticipate he'll be pushing for in the months ahead? >> we engage with trion as we engage with all the shareholders. we'll continue to engage with them in a very constructive way and continue to focus on delivering value for our shareholders. it's hard to predict the future. i think that the focus of all of us is on the creation of shareholder value and the stronger accompany going forward. >> he was very critical in the meeting again of management saying you know that there's more work to be done. you said you don't think it's the major forecast. >> those have been consistent comments he's made over time. they were no surprise. we're focussed in delivering our science out to the marketplace.

>> we have really focussed on their white papers in which they've engaged in. a four way split up and three way split up. outside advisers helping them and management. as we look at it today, that will be value destructive of the accompany. the higher shareholder value is focussing on driving top line growth and margin expansion through innovation and efficiency in the country. that's not a forever thing. we're looking at the market dynamics to understand if there's a stronger and more powerful way. that's part of the process as management. so we continue to focus and understand what is the best way for us to deliver that value? >> he is also said the company needs to be more progressive. should he be looking for adegsal cuts down the road? >> we've been focussed on

cutting cost. we've taken up $2 billion of cost for the fresh start program. fresh start is redefining the corporate centers and funkal support of the businesses based on the bakt 30fact that 30% of the accompany has left the accompany. we're structuring to that. we're also putting up a new transit actional system in the accompany to further increase sufficiencies. we're continually, it's a competitive world out there. we have to be continued to focus on productivity in order to be able to compete effectively against strong competitors out there. >> i want to ask you, he points out that the accompany has mised ant guide answer they've given. are you going to change it all, how you give guidance in the future, try to be more specific? he did have a point that that the accompany has failed to meet the guidance. >> in the six years we've been

in, we've exceeded our range two years and fail short two years. i'm not sure how consistent it is. one is when the chemical industry turned down. we're very transit parent. it's all of our competitors in the area. this is something that we market moves are very difficult to forecast. maybe you can see them in the rear-view mirror. they're harder to see looking forward. we continue to focus on how we can forecast better but we're always very transitparent with our shareholders around for prospects with business. >> how much time has this taken? it's been a public fight. it's been a very prolonged fight. >> you know the exciting part about it is we're launching the new dupont and taken the opportunity to talk about dupont when we're out with our shareholders. work we would have done in june we're doing in april and may.

i think the engagements have been focused on how we're going to create value going forward. i appreciate your time today. thank you for stopping by. >> okay. ellen, thank you again. we've been speaking with ellen whose the ceo of dupont. >> back to you. >> mary obviously pressing in terms of questions. the question is will he remain a shareholder? he says they're long term shareholders. others are selling the stock is down over 5%. >> i think there's people either trying to anticipate in selling or saying they like the break up. these are people and some are patriots. they didn't understand. they're hoping for something quick and didn't get it. >> i think an important day for activism. >> yes it is. >> certainly, a long term holder and fought a very strenuous

detailed fight here and came up short and didn't get anything. which is somewhat surprising. particularly, the actions of the index funds. we start to see them completely not pay attention. we advise them out of both. these have way too much influence they shouldn't have. nonetheless, it could be a c change in out this goes. >> it's time for dupont to start buying countries. they buy a glass business out of mexico food and beverage and consolidate that industry. look at that time williams, the l danaher. >> let's move quickly before we get technology jim. >> you mentioned the upgrade of microsoft. >> only 32%. >> yes, and facebook by the way. powers switching to them from print. >> tech has been real bad,

daiftd david. tech has been horrible. one of things i worry about is pc. a lot of that is moving toward the cloud. i spent a lot of time with your friend watson. don't forget we had the earnings of the companies that are in the cloud doing very very well. stocks are good. >> yep, across the board at this point, at least, many of the big names are up whether it's apple, ebay. >> by the way macys barely down. that shows a lot of forgiveness in the group. people want that group. i know some people feel discretionary is done. that action in macys says don't leave that group. don't leave it. shares of cisco tonight. >> danaher shares are up. i would argue perhaps they're up because of the plit the accompany is going to be undertaking into the industrial segments.

they're also paying $127.20. that's a big number. absent the split of danaher, perhaps you see the shares down. i don't know the fact is they're up. people are responding positively to the split. that will have 16.5 in revenue. generally speaking the two big deals, williams also both acquired stocks are higher. >> both companies are getting into even deeper into recurring revenues, that's the theme of danaher. nice recurring revenues obviously, the pipeline toll business. these are companies saying listen, we've got a stream of cash coming in. these are cash flow stories and very smart. >> and cash earnings actually. we'll see if danaher reports in that way. that's a way it will be judged. you brought this point up as did

i, the cost of capital, of course. it's why danaher can pay 20 years and still have the deal be created. it's why a c corp. that can boar borrow at a lower rate acquiring. >> you're going to keep seeing industries where you can get away with it. i expect more consolidation in the chemical industry and consolidation in the utility industry. they would be a terrific buy. today should be a good day. rates are down and the dollar is down. that's been the combination that has e lek try identified the market. i think these deals with big and important because they're happening too often. they're not one off deals. they're people saying you know what rates are going to be higher and we're going to go in and start buying right now. >> rementioned macys at the top of the broadcast. retail sales overall were not

good. those shares not down jim. >> one thing we should mention is vertex by the way. david, sharcharlie, a smart guilt or innocence watches the show. made the point over and over to me the people are saving the money. people become more saving oriented. i think that's important. that's one of the reasons why we think of our consumption economy. our people are changing. the myillenniums are caught up. when you have that happen, you get retail sales like that. when we're a nation of profit and spenders now we're saving and the ratings are low. >> couple of people do premiums gone up and gas savings going from the health care premiums going up.

>> health care premiums do matter. someone writes with me just talking about it's true that there has been a tremendous shift now. i had a accompany called fiesta group. it's somewhat unimportant but has big exposure. very smart. they said listen, we got killed by affordable care. i can't dismiss it but i think the series about saving is one to watch. americans are not savers but they're saving now. a little bit of a cultural shift in our country. >> ver tech shares are up.

he just had to make a pass. there should be some consolidation consolidation. they have a lot of cash. we've had good buys in the industry. energy transfer parenttners. kinder and williams they are the consolidators. this industry is going to win. why? i think trains to tie things together are having a terrible record pipelines are going to be descendants. pipelines, no one wants one in the backyard. i got a calender every year from the guy. >> which backyard? >> in pennsylvania. >> yeah i had a pipeline. they mowed my lawn and sent me a calender. i do think the consolidation and the fact the trains are getting a very tarnished record now that's freight trains. >> that's freight. we're not talking about passenger. >> being so low.

keep track of this hef lugs. people feel oil went down and it was over. it's natural gas. it always has been. we saw consolidation. it was at a deal. we barely talked about the deal. noble is a smart accompany. we watched for the consolidation in the energy patch. >> let's get to something. bob has more on what's moving this morning. >> a strong start to the morning. very surprising given the rot ton s&p retail sales numbers. we lost about six points in the future this is q 2, not q 1. look at these numbers. we are now flat to down four in the last five months. for march that revised number up 1.1% and they're talking about easter pulling into march. that's the reason we had that

move up. you're talking about what happened to the lower gasoline prices. you run a restaurant, people with drinking water, at least that's what it looks like. people at restaurants and bars. 18.7%. definitely ordering more online overall here. so 0.8% for online ordering. going out more and drinking more. that's one of the single linings in the retail sales numbers. for macys, the stocks aren't down as much. even though they mised on top and bottom line they're hoping to make it up oontn the back end of the year. as for the problems, we've gone over these many times. west coast court issues. lower levels of spending by international tourist in the united states. that's an interesting twist. sales down 0.7%. they mised all around and

raising the dividend 15%. i think this is going to weigh very much so on everybody else. we're going to get jc penny after the close. they're all down. down at the open later this week as well. that's moving to the upside overall. let me move on to europe. at least we've got brought in europe. some surprises. spain had a great number. quarter over quarter. france had good numbers. 0.6%. that's a big surprise. even italy is not flat. that's the best in four years, believe it or not. 0.3%. i think you expected half a point gain. the rest of europe was trading to the upside as you can see here. i think the big story today is the retail sale numbers. the dollar index on that.

going to recover a little bit. i think the surprise here guys, we moving down into the futures moved up immediately at the open. we had a lot of reversals like this. you start up on the futures preopen and go down at the open and vice versa as well. the futures aren't quiet as good an indicator of the open as they use to be. >> thank you very much. restaurant good but also online sales, do they have apple sales in those retail numbers? apple, a huge percentage. these may not be maybe the retail sales numbers are not up to date. >> let's get to rick santelli. i'm sure he has thoughts on data as well. hey, rick. >> good morning, david. how you doing?

if you look at the two day of 10s you get the see a lot of range. maybe not so much volume per tick. wee hours of the morning yesterday close to 237. low yields here at 218 and a half. believe me, the treasuries did pay attention to the very lethargic retail sales numbers and of course, everybody was convinced we were going to coil like spring. at the end of the day, there's no spring board there. it was weak. if we look at year to date of tens, yes, we are hovering just above around 218 yield. the important thing is this 224 area should we close above or below it will be significant. there are outliers there. they all seem to point to selling pushing quick yield retracements to the upside. we'll have to see what type of follow through we get. you can see the same dynamic. yesterday 74 base point. today traded under 60 basis

points. definitely there was data there. we'll talk about that in a minute. let's look at the jgb. they settled at 33. use to be able to really define most of their weekly ranges by using not a full hand but maybe three fingers. all the sudden they're up a dozen basis points. this is something unt to pay attention to in a country that's got 250% debt to gdp. now let's get to the real issue, dollar index. see the way that responded to retail sales, put an asterisk no excuses now accepted. well that makes sense. what doesn't necessarily make sense is all this talk about data in europe and changes afrooved. they've gone from disma'am to lethargic. you see it responding to the dollar index. really is once again about the

fed. that puts the dollar down and that's where the euro is. if you look at the year to date they're down on the year. close to half way like the dollar index. saifd david, it's all yours. >> thank you very much rick santelli, we have a lot more coming up. twitter co-founder come. tomorrow interview with charlie ergen. squawk on the street will be right back.

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going into industrials not that good. the retail sales, watch the industrials. everyone is going to take danaher is a blueprint accompany. they take the blueprint. sandy had the meeting. talking about the cash generation. could be a cash event next year. i'm telling you they're not going to break it up. >> at least you're asking the question. it's an important break up. no doubt about it. >> you get your turning and cash generation by the companies and higher stocks. that's where to watch. even united rentals, by the way back to 104, 105. >> i had no idea. what do we have coming up on mad tonight? >> you'll have john chambers after the call. he's the outgoing ceo. to me that's sad. i just remember. >> still the executive chairman.

we heard last week was it. this time they'll be talking earnings. >> right. we don't talk about utilities enough and the stocks have been down horribly. the charts are broken and the yield is good and i think rates are benign today and people should listen. >> okay. all right. we got through a lot. >> dupont. people ask me do i buy dupont and i tell them it's an earning story now. >> yeah, big news. something of a surprise though. if you asked people they thought. coming up rkts we're going to have a lot more on dupont. plus go daddy out. we're going to talk to the ceo blake subpoena duces tecum

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we will take that conference live from the streets of philadelphia in the wake of last night's devastating train crash soon as we're able. in the meantime, quick check on the marmtkets. retail sales came to a complete halt. electronics triggering another tumble in the dollar. oil price in dollars continues to fall. >> 61.39 is where we are. >> weaker dollar. >> let's get to rick. >> remember, this is march.the last month of the first quarter. we're trying to churn through. this number well not anything unexpected was up one-tenth. no surprise. close to expectations. second month of the first quarter. we haven't had a minus number

since march of 13. basically, over a year. maybe the big news today is on the weak retail sales push yields down. yields keep popping back. we're getting back up to the 223, 224 area. technically significant. we want to continue to monitor how long yields stay down on what really was a very weak retail sales especially what everyone was looking for a winter bounce. back to you. >> an amtrak train traveling from washington d.c. to new york city derailed in philadelphia killing at least six people and injurying 140 others. philadelphia mayor to hold a news conference momentarily. we'll take you to that soon as it happens. joining us with the incite on what happens now and what investigators will be looking for. mr. francis, good morning.

>> good morning. >> it appears to be fine weather, no suspicious activity. i imagine a lot of focus will be on the speed the train was traveling. >> i think the speed certainly will be an issue and that will be on the recorders and the train. looking at the condition of the track and trying to figure out whether it was in good shape beforehand or how it got misaligned would be also a very high priority. >> can you give us some colors on the nature of regular inspections, who would be in charge of that and how often an inspection of the track as you raise it as an issue would be normally a taker? >> well i think the railroads would be responsible for keeping the track in shape. i don't quiet frankly, i'm not sure who does the regulatory function. i would expect that it's

something in the department of transportation or the office of rail safety. >> unfortunately, we've seen a number of the derailments partially because of the united states transit porting more crude oil. can you talk through some of the causes of this human error, for instance, could it be that the tracks are just outdated? go through some of the possibilities for us, bob. >> i think that the human error is always a possibility. human error would be if he went into the curve faster than he should have. that's less likely than something being wrong with the track and track inspections are done on a regular basis and i don't know what that is. that track has been there for a long time. it's very heavily used. i would think that probably was the top of the list in terms of

what the investigators, the mts would be looking at. >> clearly, it's a nightmare for people who travel regularly by train. people will be mindful of the fact in february a commuter train derailed with six deaths outside new york city and two collisions with vehicles closer to los angeles more recently. is there something wrong in general with the infrastructure around the accompany. in your opinion, is that something we should be looking at now? >> well i think as we become more reliant on rail in this country and certainly, the northeast corridor is an example. i went up to new york and back last friday. so i use it my family uses it on a regular basis. i think that you've got to particularly on something like

the northeast corridor you've got to be very careful that you're inspecting it as much as you should be and that you're requirements on the railroad are of the strictest order. >> well to that point, amtrak has long time been a punching bag in washington. i read in the washington post that china's government spends $138 billion a year on rail. the house of representatives just approved $1.4 billion spending over four years per year on rail. do we need to be spending more? it's a sad but true fact that issues like this, accidents like this raise awareness and can change the political debate. >> i think that's right. i think given the pattern that one has with railroads in this

country and doing more to approve the safety aspects of it it's not just on the northeast corridor as you say. it's the entire system and when a rail freight car goes or train goes off the tracks in north dakota we don't pay a whole lot of attention. francis there, the former vice chairman of the national transportation safety board. we are waiting for the news con conference to begin in philadelphia philadelphia. we'll bring it to you live on cnbc. david. >> a victory for dupo in,nt or its

management team fighting a long battle with trion over the board of directors. this morning in a vote of its shareholders, dupont was able to re-elect all 12 of its nominees to its board preventing them from replacing any of its four nominees on duponts board of directors. for lead director as well mr. cutler and perhaps a set back to a certain extent for activism overall. we'll see how people choose to look at it. i report index funds who prove to be so important in these types of votes particularly holding as much as 20% overall voted against trion despite the firms that came out advising them to vote in favor of at least some of if not all of the

slate of directors put up by trion. that's something of surprise. if it continues to be the case index index funds are operating on their own, that could prove to be a seminal event. of course, we don't see that many go to a full vote. often times companies are approached by an activist and choose to settle early on. a strategy that marty and someone whose advised the accompany to say no said a couple of weeks ago maybe you should settle. as for the fight itself, well dupont kept coming back to the basements. they had growth rates since 2009. they put on two well known directors. jim ran del, two very well thought of directors and said the agenda to break up the

accompany would be risky and value destructive and also highlighted a number of flaws with what they say. that seemed to ultimately carry the weight with enough of its shareholders for dupont to emerge with someone unexpectedly. a year ago trion could put on or dupont could have chosen to put ed on and said no. very recently they said they would take one nominee. trion said no. let's go to mary. she caught up with the ceo a few minutes ago. she joins us live from the site of the accompany's annual meeting. mary. >> hey there david, pretty brief meeting as you pointed out a long proxy battle. the meeting lasted 45 minutes. as you said, they came out to speak right afterwards. she talked to us about the action to the vote and also what

more needs to be done at dupont. listen in. >> we've spent a lot of time with our shareholders over the last few months and days and received a lot of good feedback and were very encouraged with what they said. in these kinds of situations you never know. it's been a good opportunity for us to engage with the shareholders and see what they think. my management team has been here six years and taken up $2 billion of cost. we're a smaller accompany more focussed on science and focussed on that. we're increasing sufficiencies even beyond fresh start. it's a competitive world out there. we have to continue to focus on

product productivity. >> now, in his remarks during the meeting, he said no matter what the outcome of the vote trion would closely continue to monitor dupon. they have less than 3% steak in the accompany. trion also said they're proud to have been a change agent for dupont saying since we first invested dupont upgraded a $5 billion share buy back. improve the design of its executive compensation program and announce the separation which is their specialty or performance chemical unit. keep in mind now they will be our guest on fast money. the fast money half time report coming up at noon. you'll want to tune into that. certainly, a significant defeat after this long and public battle with dupont.

back to you. >> he's got a big steak. mary, thank you very much outside of dupont headquarterers. >> up next, go daddy out in april reporting a nice jump in revenue. the stock is getting a boost almost up to 1%. the ceo of go daddy joins us live for a first on cnbc interview. of course, we're keeping an eye on philadelphia. we're awaiting a conference there. we'll bring it to you live soon as it happens. stay with us on squawk on the street. ameriprise asked people a simple question: in retirement, will you have enough money to live life on your terms? i sure hope so. with healthcare costs, who knows. umm... everyone has retirement questions. so ameriprise created the exclusive confident retirement approach. now you and your ameripise advisor.... can get the real answers you need. start

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there is preliminary information. this is an on going investigation. there are some things we know. there are many things we do not know at this time. we will not speculate on any of those things as you all know. >> first, let me introduce you to a few of our partners here with us now. as i mentioned to you earlier this morning, we were anticipating the arrival of the national transportation safety board. their members on the ground now in board member robert and vice chairperson denzar. for amtrak. board chairman anthony cosha. amtrak v.p. of operations and chief of amtrak police chief hanson. and deputy chief.

approximately seven personnel on the ground with more coming. the chief of railroad division mike flanagan. mechanical investigator, signal investigator, track investigator and human performance investigator. we have full cooperation from all the agencies of course who were here last night. philadelphia fire department police department and department of homeland security and other federal agencies working with us. the police as well and a number of other agencies. this is a fully coordinated operation. everyone understands their role. we train for these kinds of incidents although every one of these incidents and this is a tragedy are very different. again, from last night we can

only confirm that unfortunately, we have six deceased. we have transported hundreds of people to various hospitals. sam can give you more details in that regard. we also need to get out information about how people can contact or find out about any of the individuals who were on the train and to the extent we have information about them obviously, they'll get that information as well. sam is going to come up and give you some of that information. you'll hear from their representative as well from amtrak. they'll come back with information. open up to questions. we'll answer what we can answer. everything 12 plus hours in this tragic event is preliminary information and subject to change. with that sam. >> thanks, mayor. there's a few things we want to go over. our focus is to gathder all the

patient data we have. we're dealing with lots of different types of manifest. one from the railroad and also from our hospital community. our hospitals treated over 200 patients last night and this morning. we are in the process of making sure everybody is accounted for. >> you are listening to the mayor of philadelphia. to find out just what happened confirmed again six deceased after the deadly amtrak accident. he named the folks leading the investigation. he says at this point everything is still preliminary. they're still trying to find out answers. with us is bob francis who was a former regulator here on mtsb. obviously, the issue at hand bob, is finding out just what happened. they didn't give us anymore information. now that federal agencies are involved how do they begin to find out what happened? >> well i think that the most

important thing is going to be when you get a report from the mtsb on what they've learned up to now and what their plan for the future is. >> how long do you expect that to take? how quickly can they find answers? is mayor said it's only been 12 plus hours at this point. how long does an investigation like this take? >> it's been a lot less than 12 hours since they got there. i think you're going to have to expect that's going to take them a number of hours. the most important thing they'll be looking for in hoping to get quickly are the recorders off the train. those will be very helpful. otherwise, it's a long process that takes place, the investigation of any accident. so you can't expect the two

hours from now they're going to have some great revelations. it's going to be a good chunk of today and maybe a lot more. >> can you give us some incite as to the type of preparations you make for this go team as you call it to arrive? typically, how many people would that be on the team and you're suggesting to us it would take time time. how would you deal with the pressure to come up with answers? >> you're not responsive to people there who are emotionally involved and want quick answers.

your duty is to get the correct answers and however long that takes. now, we're blessed in a sense having recorders on aircraft and trains. hopefully, the recorder was not damaged and they'll get that quickly. i think i could understand that some people are very interested in prompt and quick answers. that is not going to be the guiding rule for the mtsd in doing their investigation. they want to make certain when they make an announcement they are certain about what they're talking and that will be what their guidance is and not the fact a lot of people want quick answers including the press. >> we'll continue to wait as anyone will for any answers.

thank you for joining us in the meantime meantime vice chairman bob francis. >> squawk on the street will be right back.

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. the dow up 50 points. shares of go daddy up this morning. this after the service reported better than expected results for the first quarter and higher revenue forecast. joining us now go daddy ceo blake irving. haven't seen you since the deal. good to see you again. >> good to see you, sarah. >> first public quarter and you come out with 18% sales growth. what was driving it?

>> we have new customer growth numbers. it's feeling good. overall quarter was strong. good renewal and good growth internationally. international business up 24% which was a big number for us. that's facing some fx head winds from the strong dollars. >> i guess the question for investors now is the shock has risen 20%. is this growth sustainable for a accompany not turning a profit? what do you say to that? >> a couple of things. first of all, let's talk about profits. we run our business on cash as the 10 analyst weighed in yesterday and driving the stock today is if we have great cash flow in the business and great adjust but it's a strong business and we run our business on cash. that kind of growth is something that the market expects and we guided where we think we're going to land over the course of

the year. when you're doing things for customers that help them run their business it matters to them and frankly, they pay us for that on a subscription basis and we do well for it. >> blake, a couple of questions for you. how are you going to get the other half of people to get on the other products you're offering the hosting and business apps and secondly, you're saying you're going to expand in china, how tough, obviously, you'll have local language operations and everything but how tough is that? so many struggle to break into china. that's risk moving forward. >> yeah let me address the first simon. what we do with folks is help them get their idea online. folks get a domain and name their idea and think what they want that to look like on the

internet and stake out. we see customers doing that. the rate has doubled in the last months. we're seeing the attach rate start to move up. it's a good indication that folks are getting online and find value not just in what we're doing for them but in a digital identity globally. to address asia and china, we've been involved over the last year and frankly being smart in how we go about this. taking measured steps to make sure when we enter the market we have a localized globalized service that's super appropriate for china and that's something we expect to do towards the end of the fourth quarter. >> blake, why did you drop danica patrick, your sponsorship over the quarter?

we saw her doing push ups on the floor when you went public. nascar was a big player for you. what happened? >> well, so, look. nascar was wonderful for us. it helped us get to an 81% brand recognition in the united states. so they really helped develop our brand in the u.s. but when you have 81% brand recognition you're playing a different game. what we're trying to do today is help people understand what we do and who we do it for and nascar is a great branding mechanism for getting your name out there. it's out there now. more over we're expanding internationally. we've gone over 37 countries in the last 18 months. we're going to go broader than that in all of asia china included. that's not a known well entity. nascar outside of the united states is pretty unknown. we're going to diversify marketing spend and be programmatic about direct and brand both and expand

internationally. >> i know you have ambitious stands to double. blake irving the ceo of go daddy. >> thanks. >> let's get to jackie. we have breaking news on oil in two seconds. >> hi. the number coming out now. a draw of 2.2 million barrels in crude oil last week as reported by the eia. as you can see prices moving higher. up $0.70 before the report. now more than $0.80. the api reported a number like this. in line with expectations because of what we saw last night. a couple of things to keep in mind because of the strength in oil today. we know there's strong refinery demand. also diminished imparts. the opeq eia and iea out with monthly numbers. they're expected to see shell output in the u.s. go down as

well. that's providing support. the last thing is you have a weak dollar today and a soring euro. now we're out more than a dollar. 61.78 is where we stand now. >> a lot of factors moving the price of oil higher today. straight ahead. macy shares down almost 3% after disappointing quarterly results even though they did increase their dividend and buy back. find out what you should be doing with that stock and ralph lauren and some of the other retail movers when we come back.

good morning everyone. here's your cnbc news update. investigators flocks to the scene of the amtrak derailment that killed at least six while injurying dozens more. an nbc producer was on the train when it crashed and recorded this video of passengers trying to escape. the train carrying 238 passengers and five crew members. secretary of state john kerry says it's a critical moment for action on ukraine by the russians to live up to the agreement. he made the comment while briefing allies in turkey.

>> american aparl says former ceo is suing the accompany and chairman with defamation. he is seeking $20 million in damages damages. south korea's intelligent services says they believe north korean leader has had defense manager executed during a meeting and talking back to him. he told them the minister was killed by anti fire craft. that is your cnbc news update at this hour. >> retail results for april coming in flat. macys reporting weaker than expected sales in profits. retail fighting tourist spending. ralph lauren on the other hand

slipping despite a beat for the accompany. that stock one of the worst performers in 2015. let's bring in matthew, your retail analyst at jpmorgan. matthew, before we get into the individual stock removers. retail sales report out flat. what happened to the spring rebound and the boost consumers were going to get? >> the spring rebound doesn't appear to be happening. i think you have a confluence of indicators against the consumer. i think as you stated look tourism is hurting some of the higher end players. macys was flag shipped. ralph lauren spoke to it today on top of it. tiffany in jewelry. the port strikes impacted a lot of people's april. that's going to be a head wind important to think about as we go forward. >> i guess that's the backward looking view on the quarter. going forward we were going to see a rebound in retail sales.

are there signs from the accompany that you've been on that things are coming back for the consumer during the second quarter? >> the positive is that the weather is behind us in large part and in addition the port strikes are behind us. the negative is for apparel retailers, we're not seeing the spend as some of these factors would lead you to believe. i guess the positive and where a lot of retailers are holding out hope for the back half of the year is the wage improvement and that's something that's yet to be seen. >> that's illusive. >> that's something that's going to impact the bottom line in a negative way. the question is we really need to see the sales. >> let's talk stock strategy. do you buy ralph lauren because it's been beaten up so badly and suffered through temporary factors or do you buy macys which is widely considered best management at the home? >> yeah so i mean kind of to

break down those two on the manufacturing side, we like the f corp. as opposed to a ralph lauren. i think you want to stay best in class. ralph talked about the idea to expand margin two years out. i think global deflation, i mean it's becoming really competitive out there when you think about fast fashion and the online entrance. that's why i think that apparel manufacturing side is tough. on the retail side to go back to macys macys, fundamentals are tough right now but there's a lot of embedded real-estate value here. there's a credit card stream. i think there's option alty worth considering on macys. >> let me pick you up about the point on real-estate matthew. the cfo suggested on the conference call as we see with sears he's trying to do things to unlock value with the real-estate. they too are in talks with the

bankers. they haven't seen anything make sense globally yet. let's say they do some sort of transit action on real-estate. what might it be and what could it do for the share price, i think. >> it's a great question. one we're being asked a lot more. the work we've done macys real-estate is an excess of $15 billion. as you think about that in relation to a market cap here. that's a big portion of the value today. i think the most likely scenario and we published this this morning would be a jv similar to what you saw sears do and the idea macys could obtain control of their real-estate and don't put up for grabs any of their trophyies or flagships. i think the idea would be to mono tiez the properties where the real-estate value would exceed the monetary value. >> it's strange to look at that time retail earnings now that we're getting them all as a

group. you're seeing strength in athletic apparel, nike underarmour and it's just not there when it comes to clothing. is this just a fundamental shift in the way consumers shop and go to the mall and it's going to take a long time for these retailers, the traditional ones to recover? >> that's the million dollar question. there's definitely a move towards health and wellness and fitness and athletic. that's why the nikes of the world are winning. we're expecting a great print from foot locker the next couple of weeks and i think lulu the women's trend is strong. you're not seeing it with the macys of the world, the ralph laurens, the question will be with the wages stabilizes, does it become a rising tide? so far, it does not. 2016 could be the opportunity. >> we'll see what happens. it's a lumpy group of retail stocks. >> thanks for having me.

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:losing some of the earth strength. right now the dow up 15 points. materials trading lower today. back at hq with more. >> right now, sarah, the second worst performing sector. s&p competing with the worst sector overall. international flowers and sher win williams and dow chemical you can see international flavors one of the worst pore

performers today. dupont dupont, the chemical giant, trading lower after the accompany won after the investor nelson tried to find manage. . of course, dupot is one of the biggest. >> thank you very much. let's send it over to chicago. >> thanks simon. i like the welcome my guest on this wednesday. peter. peter, thanks for taking time out of your schedule. >> thank you, rick. >> all right. we have retail sales today. before we get into the thick of it, we are now looking at this control number that synthesizes a lot of different variables. it was unchanged today. looking back the last time we had one or higher was march of 14 at 107. you have to go all the way back to january 12th to find another one at 1.17.

is this the way seven years in eight years in depending what date you use, is this the kind of retail sales you would suspect and what happened to the nonrefuted, you have to be crazy not to think this winter isn't going to change the dynamic and coil the spring and we're going to see everything pop up roses once we get through it? what happened? >> right, so april in that core group of spending in an absolute basis is back to where it was last november. in the last six months we've essentially flat lined. monetary policy which its intention is to drive demand has pulled forward. so much economic activity over the last couple of years that there's only so much more they can pull forward. i think we're beginning to see the pushing! that's so obvious. why are there lesions of the toll keepers and analyst. at least 10% of them veering off

the party line. why is the defense of maw and paw so unbelievably unanimous since the crisis. 36 years i've been in the business, i've never seen anything like it. >> i agree. we're repeating every mistake that japan did also. so people that are pushing for this live by a model and believe in canes and creating demand and money creating the demand. that has limits just like anything else does and we'll pass those limits and we're seeing it firsthand. >> okay. obviously, when i look at weak numbers and i see the dollar basically move down and euro move up. that behavior when they have their own better than expected data. it's policy may or may not do. it's still in the center of the lane in terms of what traders are driving around when they strategize about the markets. >> right. the dollar was obviously an extraordinarily crowded trade.

everyone was expecting the u.s. to take off. they're going to raise interest rates and now there's a reality check. now you have a rally also throwing some mix into currency. we're seeing the commodity currencies inform. we're seeing the expectations in euro rise. the dollar strength, dollar weakness is a mixed bag right now and not the one way freight train it was for the last six months going into the last month. >> peter, it's always a pleasure, thank you. we're going to go back to sarah now. >> yeah, euro really taking off. thank you, rick. up next the co-founders of the wildly successful new york change, the meat ball shop. they're here to tell us how they're looking to expand their empire and give us a first look at the new cnbc series called consume, the real restaurant business. we'll be right back on squawk on the street.

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a clip from the new cnbc primetime series "consumed." the real restaurant business it takes you behind the scenes of five very different restaurants. all in the ultra-competitive new york food scene. joining us now here at post 9, michael churnow and david holtzman, co-founders of the meatball shop featured on this new series. good morning. >> good morning. >> you look intense there as he was running you through what was happening. >> that was the first time someone said the $40 million or $50 million number and both of us kind of took a deep breath. >> we thought $40 million or $50 million a couple of times, but when it's coming from someone who is like an official person it was -- intense. >> and it's like a billion dollars.

>> we were thinking about mopping the floors the night before and $1 billion sounds like a far -- >> what else do we see in the series? what happens? take us through the type of thing we can expect? >> the restaurant business every single day is a new challenge. before we started they said you know, we want to make sure that there's a dramatic story line. i said follow me for ten minutes in the restaurant and something is going to break, there's some disaster. >> specifically. >> the premise of the show is that new york is roofless it's cut-throat -- ruthless. is that true? >> absolutely true. the restaurant industry is notorious for having very very slim margins. there's so many moving parts, it takes an enormous amount of effort and energy to run and operate a restaurant, no matter what size or shape it is. >> what is working for you? >> you're up to five now? >> i think we caught the wave of it's inexpensive, it's accessible. people can go there for a date or they can come in for a quick bite. so it appeals to a wide audience and we're open late and early.

so you know we can capture the in-between lunch and dinner hours. and we're available to people. >> and you can serve vegetarians, you have veggie meatballs and salmon meatballs and are there tuna meatballs? >> we have 55 specialty meatballs, we have four on the menu including one vegetarian. >> are you going to bring it across the nation? are you going to be bringing your salmon meatballs to the rest of the country? >> you've got to watch the show. >> you joked about mopping the floors, how do you get from the intense focus on five restaurants, mopping the floors whatever you do to then -- completely different phenomenon to take it out, what would you do franchise it? >> no think our job is to learn and grow as business human beings. and so that we can actually put the systems and processes in place. to grow the brand without losing its, you know the culture of the business. >> to do that you got to raise capital.

which means giving up equity which is always a hard thing to do isn't it? >> and spending right now we're sitting here talking about the show. before we were talking about raising capital. that's time outside of the restaurants. and that's time outside of our comfort zone. >> the one thing about the restaurant industry which is why i believe it's so hot right now. our space in the restaurant industry is really hot, it's one of the only industries you cannot automate. all, a lot of industry is being automated. >> i want to ask you one more question about new york in particular. it seems it me there parts of new york shutting down in terms of restaurants. i imagine because of the rents. the rent is everything what's happening to rents? you said your most recent occasion, you got a really good deal. which is why you're there. >> you know the rents have been skyrocketing. they've gone up three, four five-fold in the last five or ten years. we've watched our rents double and triple. we've turned to now buying older restaurants that have long leases and buying their leases. because we simply couldn't afford to come into a new location paying three or $400 a

square foot without raising our prices and alienating our customers. >> sadly, we've have to leave it there. >> do you still have ice cream sandwiches on the menu? >> yes. >> okay. >> be sure to catch cnbc's new primetime series "consumed." it premieres tonight at 10:00 p.m. eastern only on cnbc. let's send it over to john ford with a look at what's coming up next on cnbc on "squawk alley." good morning. >> all your content belongs to us the word from facebook. want to host content from a number of different news providers, including "the new york times," buzzfeed and nbc news is it a good idea? we'll dig into what it means for the future. of facebook and of content and hear from jack dorsey of square on his latest pivot. he spoke exclusively to our julia boorstin and biz stone will give us a sense of what's happening in the twitter universe coming up on "squawk alley."

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it's 8:00 a.m. at facebook headquarters in menlo park california and it's 11:00 a.m.

here on wall street new york city, and squawk"squawk alley" is live. ♪ ♪ ♪ and welcome to "squawk alley" on this wednesday morning, joining us today, john steinberg, ceo of the "daily mail" north america and here for the hour john ford and kelly evans. >> good morning. >> good to have you. first up facebook unveiling directly-hosted news articles from organizations, it's called instant articles it lets publishers, nine partnering in the initial round, post their could be content to the social network.