yesterday will premiere the 19th. >> july. >> i'm saying the 19th because it's my birthday. harrison ford. you, too? go cancer. >> make sure you watch at 2:00 p.m. to find out what happens to the fed. that does it for us today. make sure you join us tomorrow. right now it's time for "squawk on the street." good morning and welcome to "squawk on the street." i'm david fab bore along with jim cramer. candidaquintanilla assignment. we'll hear from him later. germany, france, a more significant loss. not too much going on. fed, the ten-year note yield,

let's see where we are on that. 1.977. >> geez. that's the worst performing asset. >> japan's ten-year yield because you didn't ask. there's wti. of course, the deth th the key market -- let's get to our roadmap this morning. it starts with politics. big nights for hillary clinton and donald trump. senator rubio drops out. a new political football. a supreme court pick is coming this morning from president obama. confidence valeant's stock cut in half. a very bad day for ackman, sequoia. chipotle falling again. the sales were worse in february

and the company sees a loss in the first quarter. we're certainly going to hear from jim on that one. first we're hours away from the fed's latest interest rate decision. policy makers expect to hold steady this time around. the decision will come at 2:00 p.m. eastern. fed chair janet yellen's news conference will begin 30 minutes later. of course, you saw steve laceman on "squawk box." you know, i looked at. peter put a note out this morning. he comes on with san tell witis. the s&p 500, 5% from a record high. u.s. dollar, same level it was a year ago. and the negative rates from the boj and ecb not really working that well. he said all these things is something the fed should raise but they won't. >> i think they want to forecast they'll raise from june, maybe sooner. the big things they were worried

about the last time they kind of spoke was that february faux credit crisis. it's when they were worried about the bank. we're worried about oil and all the different defaults. we were worried about the economy. they stabilized. they're still going back down now. i think the worries are off the table, most definitely the stockmarket. i totally get they ought to be tougher. should they be? i don't know. wangs are still doing nothing. if you're watching the tenor of the election, you know that people feel like the jobs just go away every single day. the hatred. at a certain point the fed cannot be as neutral. >> you may feel like jobs are going away every day but the jobs tell a different story. the average 235,000 is not bad. the overall participation rate -- that's a big number. >> i think a june hike at this

particular moment is replicated. >> you don't think they should shock the market and raise today. >> i think someone's going argue that they should. whoever says that they should is going to be on tv within 45 minutes saying, listen, we're ready. ly say that things are better. they are better. i was a little concerned about retail sales because auto sales weren't what i wanted. housing is okay. cpi. some people could say it's running hot. i don't think it is. i'm saying we're in shape worldwide to take action if we wanted to. i'm not going to freak out. do i want it? i favor higher stock prices. i totally get they can do it. >> i mentioned data. what have we got? housing starts at 5.2%. construction hitting prerecession levels. prices falling by 2.2%. up 0.3%. >> a lot of defaults are off the

table. you have the capital system working. you know, i this i they have to a little bit worry about the debate that's going on in the country every single day and night about the election because we have such -- we have political disarray in one particular party. i listened to the come men tai. if you listen to the raw dau ta, we are better than we were last time. i'm surprised the market has been as resilient knowing in the last few days, teen last few weeks, knowing that things are better. kind of self-fulfilling. some of the people like a board were concerned. >> maybe more sanguine. >> look. the man is the man who when the facts change, he changes with them. i think he's now relative of what could be a skein of thinking saying, hey, listen, we can move in june. we can move. look, the data's better.

>> if you were at the press conference and had a chance to ask janet yellen a question, is there one in particular you can think of? >> i think she'd dodge it but if the republicans win, when you look at the punitive leader of the party, she would be concerned about what her role would be. >> your concern, i heard you talking on "squawk box" as well, about some of the things you're hearing from donald trump when it comes to fed policy. >> face value. apple has to bring its jobs back here. it's not going to. next, eden. when they bought cooper, they moved to ireland. pfizer. they followed the treasury rules. and then jobs were moved from indianapolis to monterey because they pay $5 an hour. nafta is law. $5 an hour with no pollution

rules and they happen to be very good and literal work-force that has little absenteeism. he's talking major overhauls of everything that's the law. what about the federal reserve? it's not like they're going to land on washington and say, look, we have a lot of divisions. watch our division. the first marine division is not going to come out in defense of the fed. this is not, by the way, strange. when i listen to the speeches, the media just wants to talk about the horse race, you know. i don't know, it's illinois, north carolina, missouri. i think the broader implications of trump are -- it's like the federal reserve when we called them into question. by the way, anyone who think's that's not crazy, you have not watched the full speeches. the use of the federal reserve in its current form, do you really think it wouldn't be compromised? maybe it shouldn't be. i listen to them. they're a bunch of jokers anyway.

>> there's cernly plenty of criticism to go around. we've got to to check back with the horse race. >> and with the horse race, i'm thinking about the substance, which i wish more people would talk about. this morning president obama is set to announce the replacement for judge antonin scalia on the supreme court although they vow not to consider any nominee during the presidential nominee year. he'll announce his choice in the rose garden at 11:00 a.m. this morning. marco rubio bowing out of the presidential race. chief washington correspondent john harwood joins us from the nation's capitol with all of the latest news. good morning. >> good morning, david. hillary clinton did very well last night. took a big step toward vanquishing bernie sanders and collected what she needs to for the presidential nomination. the republican side was more complicated. with john kasich's ohio and

moo marco rubio's florida against donald trump trump. kasich survived. rubio did not. >> people counting me out. people saying, why don't they ever call on him, okay? we get all that. we put one foot in front of the other, and i want to remind you again tonight that i will not take low road to the highest office in the land. >> politics are resentment against other people will not just leave us a fractured party. they're going to leave us a fractured nation. they're going to leave us as a station where we hate each other because we have different political opinions. >> reporter: now, donald trump who knocked out marco rubio began trying to unify republicans last night painting brighter pictures of what a trump administration would be. >> we're going to have such great deals, we're going to do so good with trade and so good

on the border, but it took on a whole new meaning. the meaning is very simple. we need protection in our country, and that's going to happen. all of a sudden, the poll numbers shot up. i'm just very proud to be a part of this. >> now, of course, the entire political conversation is going to shift for at least a brief period of time today when president obama announces his supreme court pick. the republicans have insisted they will not approve, even grant hearings for an obama pick. one of the picks would be hard for the republicans to oppose, and that's isry srinivasan. one, he's close friends with a leading candidate. they would have to consider his nomination this time. >> it will be an issue. >> it will be an issue. even cruz said let's delay this nomination, but democrats

starting at the white house but also on the hill are going to put increasing pressure once you have an actual nominee put forward to say, hey, what's the problem? this is a reasonbling choice, you have to cast an up-or-down vote. we'll see if the republicans can hold the line. >> all right. john harwood checking in with us. >> he was the governor of ohio. i want to come back to the substance because no one is talking sun stance and it's driving me crazy. protectionism is not what the u.s. does, okay? we've had maybe bad trade deals, horbling trade deals, but the motion that the united states can't ship jobs over to mexico. these french, right? it's very europe. we may think this is the a great capitalism of all time. we're talking about a level of protectionism i've only seen in europe. this is a different kind of

economy. and these media guys, all they want to talk about is whether he took a few -- did he get enough votes in guam. no. you'd better start talking about the economy because what this man is talking about is a different economy. it's an economy like europe and yet we act as if it's a capit capitalist economy. coming up we have to talk valeant one day after the company lost half its market value. more "squawk on the street" post nine after this. uh, i live rie actually. you've been to my place. no, i wasn't...oh look, you dropped something. it's your resume with a 20 dollar bill taped to it. that's weird. you want to work for ge too. hahaha, what? well we're always looking for developers who are up for big world changing challenges like making planes, trains and hospitals run better. why don't you check your new watch and tell me what time i should be there. oh, i don't hire people. i'm a developer. i'm gonna need monday off. again, not my call.

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we've got breaking news on industrial production. let's go to rick santelli in chicago. rick. >> well, we're looking for 76.9. this is a february read, of course, on the capacitization coming in a little light. 76.7. 76.7. if we look at industrial production, we ended up with a double scoop. down five-tenths. down five-tents is pretty interesting because just at the end of last year you had down

6.7 for december. so numbers are on the weak side but everybody is talking about the big september of 2008 comp and, of course, how much the fed may bring that into the discussion today or express conference. it's going to be lightning. david, back to you. >> thanks very much, rick. the company reduced its guidance for the next four quarters and also the numbers that had been below previous expectations and miscommunicated yet again in what has been really an ongoing story of miscommunication that has shaken the confidence if not completely destroyed it in the words of bill ackman to paraphrase a bit in the company itself. you know, jim, this morning, many people trying to understand where they go from here, what do

you do if you're an investor. do you take a look at it. some people say, well, it's hard to stay away. in a sense, isn't it undervalued. when you look at it, it's about 7, 7 1/2 times. which while considered somewhat cheap given its potential growth rate is not exactly a storming bargain by many people's estimations. and, of course, yesterday i discussed it in real time when they said on a slide ebitda was going to be $6 billion and then 6.6 and on a call they said that was a typo, a mistake. that completely eviscerated any last bit of confidence people had in the company and in its current leadership, and yet that leadership, of course, has just returned to running the company in the form of mike pearson who had been extremely ill for some time and had stepped away. we've got a little list here of

serious missteps. i don't know if we have it. it was back in december that they said pearson was hospitalized. we're going to have a committee in the interim. then no more committee. howard schilling. then we're going to bring him back and make him interim ceo and then we're not going to tell you about pearson's health and then on the 28th pearson says he's back. then we're going to have a call and he pulled it back and then later in the day he said actually we're going have a call and then he canceled that call. then he made phone calls whochl did he make them to? a handful of analysts who may have called him. then they say they did not get subpoenas from the s.e.c. then they admitted they spoke to the s.e.c. then they said they withheld documents they wanted.

i would go back to the decision. i would go back to the fateful decision when they decided to go after him. they chose to partner with mr. ackman. ghav him time to amass a large position in ailer again which he benefitted from enormously, of course. it also delayed their ability to hit the actual meeting where they could have challenged for directors immediately if they had moved when they were ready to instead of waiting for ackman. by that, they got themselves embroiled in a huge brawl with allergan and exposed a lot of concerns that perhaps some people had not had previous concerns about that we had talked about very often. mainly it was a rollup on deal after deal after deal, an extremely low tax rate, they spent very little on r & d and sort of following a different path but one that money started to question. if they don't go down that road,

that's a whole didn't world. that's pearson. bad decision. >> i'm so glad you talked about it. then stock went up. what matters here, david, he came on and said, listen, we spend the highest percentage on r & d. david pyatt said that. he said, i'm not going to have my company eviscerated by this man. i'm just not going to have it. that's how brent sanders came to his rescue with activist. it's not like he was mr. r & d. that was the end. they needed that deal. they did the salix. there's difference about -- >> interestingly allergan was very close to buying salix f you remember, and then they pulled away because there was something they didn't like. oh, by the way, salix had huge inventory numbers. they had to get writ of their

management team, their stocks sunk. then they ended up buying it. >> one thing that's not clear is salix doing well or not? bausch & loam, they say they're doing grail you could sell their dermatological situation. i think each one of these assets is worth less than they paid for. you mentioned ackman earlier in analysis on "squawk." he said, hey, listen, acme can blow it out. my reading of the law says you can't blow i out. >> i don't know about law but typically there are agreements when kbrout somebody on the board that locks them up for certain periods of time. i don't know that it has anyone by been brought out to the public. he sold puts when stocks were a

lot higher. there are a series of downgrades today. you know who downgraded at 86? >> who. >> hillary clinton in january. >> up next we're going get to jim's "mad dash." we're counting down to opening bell. here are the futures. big fed day here. more "squawk on the street" coming right up. those new glasses?

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oracle reported earnings. >> i read a happy story, an uplifting story, a story that does have a bit of an anger in it. the unbelievably good oracle call because it was an unbelievably good quarter. i love ailson. let's see how many times. one, two, three, attacks in the term "sales force" in the release alone. mark herd only did it once. multiple attacks on work day. but, david, their cloud business is on fire. it's not just a narrow that sales force has. maybe there's room for everybody. ailson is saying, listen, we're taking on microsoft, we're taking on amazon. this is a company that refuses to play dead despite what a sales force might do. >> what did you learn last night that changes your opinion on sort of the --

>> these contracts -- you know, when you do a software as a service and a platform service, those are ratable. you get a little bit money every month, so you can see the explosion of earnings coming when you have a 57% growth in u.s. dollars on their software and cloud business, but you will see it later on. david, you're going to force the hands of the -- j & p's got to underperform. give me a break. jpmorgan underweight? good luck. my congratulations to mark herd and an gore ailson. great quarter, guys. great quarter. >> the opening bell coming up right after this.

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you're watching cnbc's "squawk on the street." the opening bell is going to occur in just a few minutes. 2:00 things will quiet down as

people listen to janet yellen -- 2:30 is when she begins to answer questions, jim. >> you know, people are being very, let's say, sanguine ahead of that. the volume has been so low. two days. people are waiting for this meeting to happen before they come in to buy. >> here's the big word. the natural resource company just did the honors. over here, knowledge exchanges with their pierce. knowledge exchanges. that's what we do here. we exchange knowledge. >> yes, yes. >> do you want to ask janet yellen why she won't sell off the bonds. people want bonds so badly. >> what are the bonds. >> everyone wants our bonds. what a great opportunity to light it up. wouldn't that be a great to say,

listen, we're not going to raise rates but we're going to start selling off our bonds. i think that makes it. but it's never in the equation. now, someone's going to say they can't do this, they can't do that. they can't do anything. this is not a trump presidency where they may have their hands tied for all i know. >> that said, there are foreign sales of treasuries going on all the time, including chinese. >> right. but look at the rates. if you can get it. they have the maturity. >> i know they i do. >> there's a worldwide bond shortage that gives you a good yield. our treasuries, we could -- honestly, i could bid them 1.9. why wouldn't they do that? then they could take the risk off the fed's balance sheet. i always worry about that. >> you worry about that?

>> they have the largest bonds. >> they're the largest holder. china is the second place. >> they're not valued. there's a big bid for them. >> they're not valeant's bonds. >> 2018. why isn't anyone talking the maturity? >> we are right now. 2018 and 2030. big debt overall. it cease interesting to watch the change that has happened as a result of -- you know, when leverage is on a balance sheet, it was always good. lever up. your leverage rate shows too low. and now, of course, we see the other side of it. $30 billion in debt. >> it's not like j and j for instance. they have a huge amount. they have a giant amount of cash. $18 billion in cash. they could buy bausch and loam if they hadn't destroyed it.

>> look at that. >> for valeant, that is another concern including the fact they didn't file their 10k. >> i always find that to be red tape. >> everyone expects they i'm file. the bonds are trading well below face value. so let's not just talk about the stock. let's talk about the component that involved the debt side of it. >> we're so interesting in situations. no one's thinking they're schenn an against. what? are they saying it's a clown show but there are no shenanigans? i would say, hey, guys, why don't you come down for a chat. >> there's a lot of various investigations that we know. >> no justice department.

>> the u.s. district attorney is looking at it from massachusetts. >> they seem to be okay with it. >> they're busy with bobby axelrod. >> they're jammed. >> oh, no. that's a show. little plug for my buddy sorkin. can we talk about chipotle, can we do that? cmg? >> sure. >> stock is down 5%. what did you find? >> the last one instance where they shut down the store in massachusetts, that caused -- they were starting to really come back, okay, with the free burrito, and that caused another dip down in the last week. i am kuhn vinced you could buy the stock. i said under 500. i'm not nearly as negative as other people because i think there's a long-term loyalty to chipotle. obviously down 29. will they be back in buying stock, the loss of a dollar.

everyone was so surprised. this is what we thought it would be until the last instance. the channel is better. by the way, it's a filing, an a.k. everyone made it sound like they preannounced. they said, hey, listen, since this outbreak, there's a little bit of downturn. chipotle has a great loyalty and i'm not giving up the stock. >> i know. but at 26.11%, same store sales decline is kind of alarge. you think it's a snap back? >> no, you can't -- here's what i i'm using. jack in the box, taco bell, horrible instances of really, really bad illness and even death in one of those cases and those companies are alive and well. >> they are. >> they're not purveyors of natural or organic. i don't know if you've been to a

pizza hut or jack in the box. >> they're not purveyors of great health. >> there's an ethos here. the people i deal with in the restaurant industry are saying if you give up on chipotle, you're missing a larger picture that a year from now, they'll be more. i like yum! brands, i like mcdonald's. everybody is tweeting on buying the egg mcmuffin on the new jersey turnpike. i love that. >> yesterday i went to the cbs analyst meeting. >> you did. >> i did. it was upbeat. one of the big announcements is the radio business, cbs radio. it could be worth a couple billion and they also talked about all the different reasons why their business will thrive in the future and how they've changed the mix as we well know with advertising, what it was as a percentage versus now in terms

of advertising revenue. >> stocks are up. >> they said 70% of all prime time viewing is not time shifted. it's watched live. >> really? >> they're relying on nielsen but i do not believe that number at all. >> the stuff that i watch five weeks later? >> when is last time you watched a live program that wasn't sports? >> i can't remember. >> i can hardly turn on "the good wife" at 9:00. >> do you watch the elections? >> i don't watch anything live. i watch more netflix than anything else. >> for them they talk about all the different kwas they win. the stock responding, perhaps as much over the radio announcement. it was out during market hours. >> he was very upbeat. >> it was. >> time warner seems to have bottomed. it's not like sin max is nobody, you know.

it's not like when you watch bansh banshee. or "strike back." i don't know what season you're on. that's "24" on steroids. "banshee" is -- >> what is that on? >> sin max. >> sin max? >> i was just -- i grew up a few miles from "banshee." >> thank you. "banshee" is sin i max. the benefit of having something in my ear. >> endo, i want to look at. they got punished along with valeant. i'm sure it's a mini val yachblt i'm sure they hate that comparison. they have a lower tax rate. they did an invent. the canadians ended up i'm not sure where. the stock was up 20.

>> horizon pharma is known as that. >> and another hit because the same guy that was after -- >> andrew laft. they raised the priefs oxycodone. don't forget. that's also one of the product. that's one of the reasons why i hope they extend tcannabis. >> they talk about the opioids and how they should bot be prescribe sthad they're addictive and you can't get off them. i know people who have died from an overdose of oxycodone. before we get to bob, ibf is

up. >> we're starting to see a bifurcation, david. we're starting to see the ones that can't make it like olin energy in the current form and then there's these majors that are really coming back. by the way, ethane is starting to soar. bar enterprise. one oak. some of these companies -- you'll see it coming back. it's one of the lowest things we produce in the country. sunoco just sent the first ethane load out. beware. this is not just oil. ethane is red hot and it is something we're going to have a hammer lock on. we should be proud of that. very smart out. you've got to get granule with natural gas liquids.

you can't just talk crude. that's a mistake. >> got it. i'll keep that in mind with the future. let's get to bob pisani with what's moving. >> we receive oil decouple from the markets. that happened monday and that's certainly a welcome development. an either/or market ahead of the fed. take a look. we saw some mixed trading, nikkei down fractionally, shanghai up. were interesting speech from china. gave out a rather impassioned speech and said we have to have more tax cuts and monetary stimulants and came out and said no hard landing for the chinese economy. he's given similar speefrps before. back on september 10th, he said the exact same thing. he's really pushing tax cuts instead of stimulus at this point. we'll see if it's true. we're mixed in europe.

as expected the london stock exchange and deutsche board did announce their mer gentlemen. this is very carefully worded. a merger of equals. what i mean by that, it's going to be based in london but the person running it is going to be ahead of the london stock exchange. it will be clears in derivatives as well as indexing and data management. it will be the biggest securities exchange. they'll also probably make a bid for the lawn stock exchange as well. they've already expressed interest. i anticipate it will happen. it should happen in the next week or two. we'll keep an eye on that over here. nermg as dafrpd mentioned. a little bit of weakness in the

financials initially, but they move to the upside. it's encouraging to see citigroup dropping too much. we heard about them with poor stock and bond trading, but, remember, the regional banks would not be affected by that. they would be exempt from all that. they're holding up a little bit better. ite besen amazing watching gap. they're down big today because probably rightly so somebody came out, this is morgan tanly, and sort of downgraded them. but i was surprised by the tone of the downgrade. it was rather -- nasty is maybe too strong a word but they truly said gap's major brand have lost any kind of relevance and gap will continue to see a share like in didn't stores and retail searls currently said it's trading at 13 or 14 times forward earnings was way too high given the situation for the

company's prospects. finally about the fed here, we did something on this yesterday, the trader talk at cnbc.com. you can read more about it. the three things that everybody is expect is they're expecting them to acknowledge the economic conditions have improve. they're expecting the fed to lower their interest rate forecast maybe in december. they acknowledge inflation expectations are a little higher. the core pce price index which is closely watched is a little bit higher recently. the point about this is the risks are to the downside. we see how sensitive the market is to comments made by the bank of japan and by mario draghi and they'll certainly be very sensitive to any comments about rate hikes or lack of rate hikes.

volume is going to increase. remember, quadruple witching at the oenld of the week. back to you. >> thank you, bob pisani. >> i love that so well. ahead of the head meeting, i'm cutting stoxx. it's one of the worst trading months ever. >> yeah. we saw that. by the way, speaking of fixed income, let's get to the bond pits. rick santelli is at the pmc group. rick. >> i see eurodollar futures. when they go down, it's basically handicapping that the market view of tightening and probabilities go up. i don't know. you know, 2008 was a long time ago. the unemployment rate, you know where it's at. it doesn't matter. it's where janet yellen believes

it. they have to tighten. will they? i don't know. they have to. come on. highest inflation on core. look at two day of two year and realize these are the second highest yields of the year going back to the fifth of january. two years settled at 105. it's at 99 about ready to hit 1%. you see the euro chart. while we all argue about what fed should or should. do and why dhad don't what they should have done a while ago, this chart puts it in perspective about the rates. they look high until you take five steps back, please. let's look at two days of tens, please. 199. highest yields, since the end of january, about a month, three weeks' difference ins two. now let's look at the only markets that are really starting to get something maybe changes.

we followed them down. if we followed them up, draghi would be scratching his head. today, the euro/yen coming back. not as much as dollar pound. coming back with the least amount of strength. this is what you want to watch. we're still a penny below resettled. surprise them. david faber, back to you. >> thank you very much. rick santelli sti. still to come, former gop candidate carly fiorina. she endorsed ted cruz for nomination. we'll be right back. so what else is new? how's your mother?

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stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card. fedex is set to release quarterly results. they'll look at how they faired during the peak holiday schblt analysts expect $2.34 a share. kind loaf so far. >> $100,000.

i think a lot of people want to hear, okay fedex versus amazon. just like larry ellison on the oracle call says us versus amazon. you want to hear about asian business, european business. i think asia's kind of picked up. oracle -- i'm sorry to keep referencing oracle and it's a huge company. >> it's an enormous company. by the way, it does have a $170 billion market value so it's not a complete secret. >> larry ellison one of the most inventive guys. asia is good. i regard that as being a very positive sign. >> overall. so even for the likes of a fe x fedex. >> look. i think the people in the old days, we would focus on oracle. now we focus on twitter.

mark hurd said, listen, you know what? we crushed everything. he said important things about the economy. >> they're tough. >> yeah, they're tough. they're also fun. they're feisty guys. i love them, frankly. i do. i love them. >> no , you don't. not all of them anyway. up next "squawk on the street" is coming right back. sales event is on. with extraordinary offers on the stylish, all-new rx...

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it's that time. time for stock trading. what have you got? >> i've been mystified why monster hasn't been doing well, mnst. goldman sachs says you have to use that 11% pullback. they're moving to china. they've got a lot of new beverages. like this call. they have a lot of excess capital. the european distribution did shock me. coca-cola europe is so well run. by the way, coca-cola's stock has been outstanding but i think the goldman analyst has been very good. i like monster. >> a bit of a milestone this evening for jim, by the way.

his ""mad money"" show, 11 years tonight. it's funny. a year went by very quickly. >> 11 is a hard year. >> i don't think people fully appreciate what you have to do every day to hoist a show on your shoulders where it's all you for an hour. i know you've got a great team, unbelievable team. >> cliff mason who's been my head writer and only writer. >> when i walk out of here, i get in my office, make phone calls, i might make a lunch. i've got stuff to do. i'm busy. but you've got focus on an entire show. >> that's okay. >> at your advanced age. >> well, it's certainly not a rookie year. i love that the network has givenmy a platform. came in. i remember i said, listen, i want do a show like carson. he was always my idol. monologue, interviews, do a

couple of skits. >> that's quite an akoccomplia e aaccomplishment. coming up carly fiorina.

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good morning. welcome back to "squawk on the street." i'm david faber along with sara eisen and simon hobbs. let's get right to john harwood. >> we spoke to house speaker john boehner -- excuse me -- house speaker paul ripe and we asked him what would happen if a convention turned to him. remember, he's trying to get the leads he needs. here's how paul ryan responded. okay. we don't have that sound. sorry. i'm just going to give you the updated development on that story, which is that john boehner, paul ryan's pred says never the job, gave some remarks

last night. now, john boehner has endorsed john kasich in the republican race for president, but boehner said last night if none of the candidates get to the convention with enough delegates for a first ballot nomination, he would be for paul ryan and declare that none of the other candidates had succeeded in their candidates and that and that paul ryan should be the kaechblt interesting after paul ryan told us he would unequivocally rule out accepting that nomination. >> john, thank you very much. we have more breaking news a that hour. for that we go to hamptom pearson. >> several sources are confirming that merrick garland -- he's the chief justice of the court of appeals of washington, d.c. l-- will be the next supree court justice under president obama. among those, ap, reuters, and dow jones. again, the choice so far -- nbc news has not confirm thad

choice, but our breaking news is that it looks like merrick garland will be named to the supreme court as a rose garden ceremony in about an hour. back to you. >> hampton, i'm being told in my ear that nbc has confirm thad merrick will be the nominee. of the three names that were touted overnight, this is the one i think i'm right in saying even those by the gop considered him to be the most establishment -- consecutive me if i'm wrong -- married to fdr's granddaughter. this is the most establishment figure of the three to put forward, correct? >> longest res marks most established across the board. one we think would not be difficult. but the republicans are standing firm in their decision unless it changes today to not even hold a

hearing for the president's nominee to replace justice scalia on the court, but, again n about an hour or so, we should see that individual alongside the president here at the white house in a rose garden ceremony. >> thank you, hampton, for that breaking news. obviously that will dominate this afternoon. again again on last night's primary results we're joined by former reagan adviser and gop adviser and conservative host lars. let's kick off with the breaking news that merrick garland is now the president's nomination to take the seat in the supreme court. do you think they'll likely concede on this even if he is the most established of the candidates? >> yes, i believe they will because they know the choice of the next justice is up to the american people. we're six months away. we get a charges americans will get a chance to make a choice of

-- eight months away, i'm sorry, they'll get a chance to choose which justice it is by choosing a brand-new president and that choice should be up to the next president. the democrats have even made that argument in the past that that choice in an election year should be left to the american people. i think they'll stand firm. >> ed, we'll discuss the primaries in a moment, but in an environmental where the gop by november could be under extreme stress for all the reasons that we know, does the argument change? does it become more likely, just at the margin, that the president could get this nominee through in your view? >> well, i think at the margin is at the key phrase there. there's no chance that this judge, no matter what his record might be nor how distinguished his service has been, that he's going get a vote. that dye is cast. that republican majority is not going to let obama pick the next

supreme court nominee. it's not going to happen. we all know how it's going go. he's going to be portrayed as a victim or a md rat. you'll do worse if hillary clinton wins, and on it goes. all of that is moot academic. it will be a side show. he's not going to get a result. >> let's turn to last night's results. of course, there's breaking news that boehner may pool ryan in a brokered convention. do you think it's possible to spreenlt trump from winning the delegates required to have an uncontested convention? >> absolutely. here's -- the point is they could get together and they probably will and try to deny the 1,237. the point is who is it? the point is it's donald trump. he may not finish out. it will take a lot of wins by

him and a big percentage of the upcoming contest for him to win. it's knew maryky possible but it's all possible to arrive at the convention without the necessary delegates. for the paerlt to insert anyone else and subplant the will of the voter, watch the republican parties explode or implode, number one. >> do you think it's appropriate as donald trump has done this morning to suggest that there could be riots with the types of majorities he's got at present in the convention? >> well, given the results, given events of the last couple of weeks, listen. you had people arrested, two cops sent to the hospital. bernie sanders' folks show up, and whether they were directed by snoenator sanders or not is

irrelevant. they wanted to hear from him to hear what he had to say. is it right to forecast it? it doesn't matter. it's accurate. that seems to be the tenor of it. they hate him so much they're willing to simply prevent americans hearing from what he has to same. ice outrageous and every politician in this country should be speaking out against this kind. >> i had to look up the word riot. it's not in my definition. >> riot friday night met the definition by webster's definition. >> as the journal points out, trump is very lucky that the anti-trum about continues to be pointed out. in almost half of them, he's only reached barely 35% of the vote. what do you think happens from

mere? >>. >> well, by any measure, trump has done very, very well. intuitively, i've said before, i'm at about the over/under 42, say 43. above 43, there's unlikely to be much of a contest, a convention. below 43, it could be a knife fight at a convention. but that said, yeah, so far the majority of the republican vote is nontrump. that's not insignificant. you know, that said, nobody would trade places. every other candidate would want to. that's what the primary race is for. the contest is going to continue. we'll see. it's not over until it's over, but you've got -- you know, trump's a favorite. if it were any other nominee, by the way. besides trump. any other candidate, everybody

would be backing off, getting in line. falling in behind the leader, elected officials, party regulars would all be getting in line. trump is such a defiesive figure. that's not happening for him. he's going to have to fight it out. >> i do want to get back to the supreme court. >> okay, sara. >> it appears to me this is the most consequential -- this has to be the most consequential decision that they'll make, whatever that is, and that is shaping the supreme kofrmt lar, dwho y court. lars, who do you think? >> he mentioned his sister, but i think that was made half in jest. who would he pick? i have no idea.

garland has an immoderate record. he backed the intention of the terrorists. it's still unacceptable to take that choice away from the american public. >> it's a huge day. we'll leave it there for the moment. thank you both. lars and ed. >> janet yellen and how things should play ow. more "squawk on the street" when we come right back.

it is day two of the fed meeting. we're waiting to hear what janet yellen expects to say about the economy. steve liesman is here. good morning. >> good morning. sara, people don't expect much to happen. they should see a lot going on. they want the answer to one overriding question. does the fed shift signal further rate hikes ahead? today will play a factor. today's -- sorry -- yesterday's lackluster retail number will give you strength about the recovery. here are four keys. does the fed upgrade the economy? does it balance the risk? remember last time it couldn't fix out if it balanced or not. does it drop the global concerns it has and does it reduce its rate and tell the market that

it's ripe. a more solid rebound in the growth data could accelerate that timetable. miss eisen. >> steve, wheel see you later this afternoon. thank you very much. meanwhile we're watching the stocks. pretty much unchanged. they're bracing themselves for the late elf on the ped policy views. discussing what to do ahead of that meeting, david z. we're coming off two of the lowest trading volume days of the year. we're pretty much unchanged going into a meeting where there isn't expected to be any policy change. in your view, what is the big mystery here. >> i'm sorry, were you talking to me? >> david, go ahead. >> i don't disagree very much with what steve said.

jaebt will probably need to talk a little bit about the surprising upswing. it got to the time where they were regenerating the inflation outcomes. some of the people who were in the qe hater camp as i like to call them say we could never generate inflation. here we go. let's enjoy it. >> lynn city, you've been one of the economists in the negative camp but you can't deny that we're starting to see inflation kick up. unemployment still below 5%. so she can't sound too negative on the economy, can she? >> i don't think she can. she made the mistake of talking negatively back in september and the market didn't like that when they paused with a decision they

thought they would go with and then she rectified that. think she ee going to talk positively about the u.s. and the foreign headwinds, they're not going way. china's got a lot of issues and the european and japanese have a lot of hard work to go. go ahead, lynn city. >> i think it's very clear they're in a tight spot. it was very clear from fed rhetoric that additional things would take place, two criteria, one, continues moderate improvement in the labor marked. certainly giengt to be quite some time before we start meeting that as i do think the economy still on very fragile foot bug from the fed's perspective or at least from the fed's guidelines that they've provided to the marketplace, it's going to be very difficult for the fed to remain on the

sideline for an extended period of time given meeting expectations of further improvement, particularly on the inflation side have now been met. so it's certainly going to be a very fruitful discussion and we'll be looking for very clear details on how they feel it to meet that 2% target. >> lynn city, it really is a tough balancinging at for her to walk today in terms of the statement and answering the questions. i wonder what the status is of the fed's credibility in the wage of all sorts of questions from the bank of japan to the european central bank. where do you see the fed? >> i think the fed lost an incredible amount with the will they/won't they saga of 2015 and now putting out the guidelines that it really will be based on further improvement and employment. both of which have been met. it's now going to be very difficult for the fed to articulate why they're remaining on the sideline if they do at

today's announcement and furthermore to articulate rate increases going forward. so i think today's statement is going to more than everything muddy the waters. >> david, what about the market overall? obviously we've had the strong rally back. we're negative overall. oils come back. the data's come back, the ecb's acting. how vulnerable do you think the market is? this idea that they're going to hike rates is clearly front and central again. we could break 2% on the ten-year yield today. >> yeah. i think that's a great question. think i the market is really focused on the strength of the dollar and every time we've seen the dollar strengthen up, the dsy gets higher, it becomes a problem. wll it comes from acting hawkish or the boj acting extra dove i you get this chinese currency

that starts to flow in. that's the peg getting more fragile as the dollar rallies and we know the chinese don't need that dollar rally and they're attached to the u.s. economy. you know what? i think the fed is 100% aware of it. they figured it out in august. they figured it out again in jan, and i think they would be really, really hard-pressed to put a lot of strength into the dollar, via a hawkish announcement. they know where it's going to be going. they'll create another swoon like we had earlier in the year and the late summer. so i think the fed is in a bit of a pickle with the way things. >> the dollar rules and we'll be watching the reaction this afternoon. thank you. david zervos from jefferys and

lynn city piegza. >> speaking of spectacular events, coming up next, what's next for valiant. sharemakers lost more than 50% yesterday, rebounling slightly today. we'll have administrator on what is ahead now for that pharmaceutical operator when we come back. the e-class has 11 intelligent driver-assist systems. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2016 e-class. now receive up to a $3,000 spring bonus on the e350 sport sedan.

the calm before the fed storm. let's send it over to rick in chicago. good morning, rick. >> good morning, simon. i'd liking to welcome in my former fed guest. mark olson. mark, thank you for taking the time. >> thank you, rick. great to be here. >> mark, you saw the number this morning. you see the numbers on the first friday of every month, whether it's jobs or the unemployment rate. and before you give me your perspectives on both of those issues, you know, if i were king, i'd do 25 to 50 like right now, right now, and explain it in the press conference. tell me what you think about the numbers and tell me if you think

i'm right or wrong? >> i agree with you on the numbers because you can straight-line the job growth numbers. 's terrific. the other thing s rick, we're seeing people return to the work force and i think that's a sign that the economy is moving foofrmd we're starting to see a little bit of inflationary pressure, which the fed welcomes and i think the economy welcomes, but there's still this volatility in oil and still the volatility in the dollar and these are outside of the control. think i if you straightlined everything, you'd say a rate hike would be great but i don't think you could do it and get a unanimous vote. it would produce an 8-2 vote, which i think would confuse the markets. >> i guess. you're right. you could be more confused. you bring up a good point.

they're cognizant of the big volatility of the taper tantrums, of the t.a.r.p. response on the first vote and the stockmarket. but i ask you. we don't have the markets we used to have that could handle those types of conditions. what are your thoughts on markets? >> well, i think -- let me make two points real quick. the markets are not the economy. i don't care what chicago things. i don't care what new york thinks, the markets are not the economy. and the fed ultimately is looking at the economy. but what happens in the market mathers. and to confuse markets would have eek nom ek consequences that are negative. if you look at the recent statements, one of the words that comes up consistent ly is that there's uncertainty in the markets and i think a move

forward would increase on certainty, however, i'm with you. i would vote for an increase. >> you know, mark, we're going have some fun today and i have some great respect for you we can have differing views. i tell you what. i completely disagree with the premise. i think it's almost always about the markets. if it wasn't, i agree, the economy and the markets are not the same, but it certainly seems that the fed's actions belit tl notion that they're paying attention to the mackerel economy. listen. we're out of time here. let's jump to dom kaum where viewers can follow us and we'll kick it back to sara and the gang at the desk. >> terrific. >> sounds good. we'll see you guys online. straight ahead, former presidential candidate carly fiorina weighing in on tuesday's primary results and what's ahead for the republican party, plus we'll get a take on the supreme court controversy ahead of president obama's announcement this morning. we'll be right back.

good morning, everyone. i'm sue here rare rah. president obama will elect merrick garland for his top pick. washington, d.c., commuters are having to find a different way to work after officials shut

down the city's subway system. the unprecedented 29-hour close is allowing them to do a safety inspection of underground jumper cables which is to blame for a monday morning fire. a university of virginia student has been sentenced to 15 years by north korea's high court. warmbier is the 1 years old. he's accused of taking banner. authorities say the algerian national was illegally living in the country. an extremist manual and isis flag were also found at the scene. and that is the cnbc news at this hour. let's go over to gee dee angeles. jack jacqui. >> that's right. out with its weekly petroleum status report. 1.3 billion barrels.

that's less than expected and less than what we hear from the api last night. it's working in line that these bills are starting to shrink. so the market is seeing what it wants to see here which is why such crude prices have seen such support. i will say this. adding to today's move in crude oil prices, definitely some of the chatter and reporting coming from roit ters that the opec producers and some of the others might be willing to meet in april. that's the expectation. of course, meeting like that could result in some sort of a production cut and that's why it's staying in a much higher range. back to "squawk on the street." >> so, hillary clinton and donald trump racking up big wins overnight in the primaries. nothing, of course, is certain. we're live in the all important winner-take-all states of ohio and florida in the morning.

we start with scott co cohen in columbus, ohio. of course. this is not a normal when kasich took the victory in ohio, it was a huge celebration, confetti and all. even though the delicate math does not favor him, he's positioning himself as the clear alternative to donald trump. >> people counting me out. people in ohio saying, why don't they ever call on him, okay? we get all that. but we put one foot in frounlt of the other and i want to remind you again tonight that i will not take the low road to

the highest office in the land. >> kasich's victory in ohio was convincing, 47% of the vote, and it was pretty much statewide with the exception of some of the counties in the southern part of the state, donald trump coming in with 36%, ted cruz at 13%. on the democratic side there was a bit of nervousness for hillary clinton going into the election. while she was favored in the polls, she lost in a big upset in michigan last week, but in the end she came out just fine. we talked yesterday about the concerns over the crossover factor, democrats crossing over to vote rupp and potentially abandoning her. not a factor at all with hillary clinton coming in with 57% of the vote and bernie sanders, about 33%, just what the polls suggested. ohio will be in the spotlight again this summer. the republicans have their convention in cleveland and ohio

is always factor in the presidential campaigns. they like to call themselves the cradle of precedents we'll see how it plays out here. >> scott kohn in ohio. now let's get over to eamon javers. good morning, eamon. >> yeah. as scott said, a change in florida and other states that voted yesterday. on the republican side we're down to three with marco rubio, the home state senator from here in florida dropping out. last night suspending his campaign. donald trump, the big winner here, call it down to 1 1/2 candidates. hillary clinton with a resounding victory here in florida and across the country last night of those states reports. now the math is going to get much more difficult. for his part, donald trump, this is his home in in ways.

he's got mara la ga, which is an estate a little ways down the road from where i'm standing in palm beach, florida. >> this is my second time in florida. to win by that kind of a number is incredible. and i have to -- i have to say it. i have to say it. that, number one, i want to congratulate marco rubio on running a really tough campaign. he's tough, he's smart, and he's got a great future. he's got a great future. >> just as an aside, somebody ought do a psychological at some point to find out when florida stopped worrying. >> i talked to establishment folks down here yesterday who say that over time he's won over

financial elites and corporate executives. that's not necessarily who you think of as donald trump's stronghold. he won them year in and year out. yesterday this was donald trump territory in palm beach, florida. >> maybe you can figure out how he managed to charm the elite of palm beach. for now -- >> i'm going to do a little more in-depth research. sounds great. joining us, carly fiorina. carly, welcome. great to see you. >> thank you. great to be with you. >> he didn't have any victories last night. so what is his path forward from here? >> well, look. ted cruz has always said this needs to get down to a two-man race, and it hasn't been a two-man race wchl all due respect to john kasich who has, as expects, won his home state, he has no path to the

nomination. i understand how hard it is to let your supporters down and maybe he thinks he's going to hang in there and be picked in a brokered convention. truthfully the only way to beat donald trump -- and i want to beat him. he doesn't represent me, he doesn't represent our party or so many of whose are conservatives and republicans, the only way to beat him is at the ballot box and the only person to do that is ted cruz. i urge people who do not want him to be our standard bird to unite now behind ted cruz. >> the question heading into the general election, how do you beat hillary clinton? doesn't ted cruz need to move to the middle with independent voters to do that? >> well, you know, that's what a lot of establishment republicans think, you know, that somehow it's going to be better to have a deal maker like donald trump who will when he picks his

strike court nominee will go to harry reid and chuck shum mer for advice. ted cruz isn't going to do that. but in virtually all of the polls he bits hillary clinton. let's not forget -- that according to real clear politics, kasich has a much better shot than cruz and trump on beating clinton. >> but kasich cannot win the nomination. kasich cannot win the nomination. i think in general elections contrasts are important. hillary clinton despite her victories last night is fatally flaw candidate. they think she's not trustworthy, because she lied. she's lied about her e-mails. she's lied about her server.

let's not forget any of that. and let's remember there are a whole set of americans who believe that the system in washington, d.c., is broken, that it's too much power collected in the hands of two foo people in new york and washington. guess what? hillary clinton and donald trump are those people. neither one of them will reform the system. they'll take advantage of the system as they have all their lives. the one guy who stood up to the system and earned the establishment is ted cruz. u. >> carly, your central proposition here tends to be that kasich should remove himself from the rest of the ballots in order that cruz can

win through. you say the only way to beat trump by is the ballot box. i understand it's mathematically impossible for kasich to win but i understand now cruz would need to win 79% of the remaining delegates in order to beat donald trump. he's currently winning in the races so fashion 29%. isn't it particularly impossible for him to win 79% of the delegates between now and the convention? >> i'll tell you two things. first, there is no question that rubio and kasich took votes away from ted cruz. there's no doubt about that. the second thingly point out is this. donald trump with the exception of florida, donald trump tends to win in open primaries. that is places where democrats and independents can show up and vote in a republican primary.

the last time i looked, it's republicans' responsibility to pick their own nominee. not democrats and not independents. so, yes, it would help tremendously. look, i understand he wants to be a king maker. maybe he wants to be a vice-presidential candidate. maybe he wants to wield a lot of influence in ohio in july, but this is now bigger than one guy. this is about our party, and that is about our nation. >> but, carly. let's look at the figures. kasich is win 10g% of delegates. even if he wasn't in the raese, it doesn't take cruz from 29% to 79%. >> but excuse me, simon. you're forgetting a lot of these things. rubio took a lot of the vote. rubio is now out. you're also forgetting the democrats don't get to vote in our primary and neither can independents. have to be a registered

republican primary to vote and in those types of contests, he wins. those are the kinds of places he's beaten donald trump. yes, it ma'amer j hugely and it would if john kasich would as well. >> carly, i do want to ask you about president obama's position. he got nominated by a majority with both parties back in 1997. are republicans right to hold no hearings or vote on his nomination? >> let me start by disputing your characterization of him. he's not known for being a centrist. of the three names that were floetd, president obama in typical fashion has chosen the most liberal out those three. i think he's thumbing his nose at the entire republican party.

he's not seeking a consensus, he's seeking a fight. yes, i think republicans will do well to make sure merrick garland is not nominated to the supreme court. it's one of the reasons why i feel so strongly about nominating donald trump. i have no idea who he's going put on the court but apparently they're ones that harry reid and chuck schumer want. i know what ted cruz would want. >> thank you very much for joining us. carly fiorina. >> next on the program, the latest on valeant. we'll be right bachlkt

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you should give her a shot. sanjay's a team player and uh... welcome back to "squawk on the street." markets a mixed picture. utilities, one of the biggest drags, down almost 1% so far. this as treasury yields climb. the heist level since early january. among the names on the utility side dragging things lower, con edison and others down around a percent or so. utilities up by around 10%. but, david, of course, always on these interest rate days we look at the interest rate sectors. back over to you. >> 2:30. we get the press conference. thanks, dom. shares of valeant are higher

today. slashing its forecast and guidance and there's concerns about its default. meg tirrell has a lot more on what's going on at hq. what's going on? >> folks are telling me after a 50% decline yesterday, up about 2% really isn't significant or meaningful in any way but we'll keep digging on that. folks are worried about what's going to come next. there's a ticking clock on valiant right now. if you take look at the timelines that valiant laid out yesterday during its call. basically today is a very important day. if the 10 k is not filed by today and we know it won't be. that sets off a 60-day time period for them to file the 10k. and on march 30th, that sets off another 30-day timeline. what they said is they plan to start negotiations with the bank

lenders in order to get a waiver for that. they hope to file their 10k in april, but they don't know for sure if they can do that because it depends on the board finishing its investigation of fi fill a door. also, of course, they have their 10q from the first quarter that's going to be delayed as well. folks are getting very, very concerned about that. that's not all they're concerned about. we had david on "squawk box" talking about how there's a percentage of doctors who are maybe less likely to prescribe the products and fears that they won't be reimbursed ads much. people are obviously very spook. you mention they'd revised their ebitda forecast yesterday. people don't trust anything anymore. so that's what everybody is concerned about and there's still a lot more to come over

the next 30 or 60 days, steven. >> you have to wonder what they're thivd about. the members of value act in addition to purchasing, both of which have one has to wonder whether they're rethinking it was the right move to bring mr. pearson back after that significant illness. and from this point i guess some people say you just got to reset and now kind of try to prove it out over time i guess even though really when you look at it about 7 or 7.5 times it's not exactly considered to be a chief stock. and the earnings are going to be lower than it is. if they're treating higher. it depends on what the forecast ends up bearing out throughout

the year and that spooks people as well. >> in addition that $30 billion of net debt. >> it also goes to the character of people in the hedge funds. individuals that are conviction driven. it's a portion of the fund and they seem very reluctant to move back on that one. he was doubling down on his conviction and you have to wonder whether that was a conviction or whether there's an emotion that gets in the way with some of the individuals. >> yeah. listen you certainly would have been much happier selling higher as they sold some stock and i'm sure they would have rather sold a lot more. ackman has reaffirmed his confidence in the company time and time again although everybody seems to have lost confidence. >> you can imagine people would be trying to veto the positions that they had which you don't necessarily get in these hedge fund situations would be the argument i'm making.

>> yeah, the one you don't talk about enough is sequoia and they have to be wondering what in the world they were thinking there making an enormous part of their overall portfolio. >> why are all the big names piled in? is it mike pearson won them over? >> it's different things. they were there prior to mr. pearson and helped with his appointment. ackman as you know got involved when he joined with valeant in pure suing allergan. now he bought the allergan stock then and affirmed his stock by buying valeant. some people disputing whether it was -- it was legal but didn't look great. >> who could forget that soap opera. still running. >> still running. >> we'll keep an eye on it. we're also keeping an eye on

washington. show you a live shot here of the white house where president obama will announce his nominee for the supreme court. we'll bring you that live as soon as he starts speaking. set for the top of the hour. squawk on the street will be right back. tavi gevinson. trendsetter, tastemaker, and teenager. watson, you sound like a fan. millions look to you for advice. i know... i can't believe it. i am learning to analyze social media to spot trends and predict demand.

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>> these are live pictures of the rose garden at the white house where the president is expected to announce merit garland to take the spare seat on the supreme court. the chief justice of the washington appeals court. he was the most liberal of the three. >> and chuck schumer telling reuters at least it's an excellent bipartisan choice. if republicans can't support him who can they support? but of course there is no vote or hearing expected from republicans on this nominee. squawk alley will have that live for you coming up.

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♪jake reese, "day to feel alive"♪ implths you are looking at a live shot at the rose garden. any moment now president obama will announce his nominee at the supreme court. expect it to be merrick garland.

we'll take that live and in the meantime watching the dow up about 9 points. hampton pearson is live for us in d.c. on this breaking story. >> carl as you said all signs point to merrick garland. i believe he is 62 years old. he is the chief justice of the appeals court here in washington d.c. described as a moderate and you heard in the stories before the break chuck schumer saying this is a guy that's a consensus choice for moderate republicans and democrats but of course in terms of the brewing confirmation fight that's ahead, number one with the republicans taking the position that it's not even likely he will get a hearing or even an audience with the chairman of the judiciary committee. all of those cards beginning to played out once president obama sends the name of this nominee to the senate for possible confirmation. again, in this political year, the supreme court of course has