out of serious messes, and we'll see what we do here. i'm not going to setting with 2% growth. we need to get going on taxes, trade, regulation, and budget, and in particular the inequality thing means the bottom half of our income. >> thank you, ed lazear. we'll see you tomorrow. "squawk on the street" starts right now. all right. good morning and welcome to "squawk on the street." i'm brian sullivan with jim cramer as always from the new york stock exchange. both carl and david are off today. you're stuff with me, world. let's look at the futures. we've had a solid day. we're told this stat, if we finish where we are now or a little higher, it will be one of the best months. there's been only two better

months in five years. what a reversal to open up just over 100 points. now let's move on to what's happening overseas, particularly the atlantic sea. the german franks and the ftse. the 10-year treasury note, let's take a look at that. yielding 1.83%. not a big move there. crude oil, man, up one day, down the next. we had a drop yesterday. now we're up 2.5%. $39.15. crude oil kind of stuck in that 35 to 40 range now for a couple of months. something to be concerned about. our roadmap begins today with what else, janet yellen sending stocks to their highest closes of the year yesterday. what you care about, where do we go from here. >> many people are still waiting

on the friday employment datatoo come out. we're going to see two components, boeing and ge and we'll let you know what they're doing and why. and apple. they're climbing out of bear territory, but the saga from the fbi far from over. we've got to the very latest. but the meantime, the big story, your macromarkets, they're poised to continue their upper momentum from yesterday. the dow and s&p closing at their highest levels of the year after. and you might have heard this. janet yellen made some dovish comments. i don't know if this was on your radar. >> we call this dovish. what she did is get away. we're losing too many manufacturing jobs. we need to see commodity prices stabilize because they're going down. frankly what she really feels, i think what she says is, listen, we're one world. and a lot of them are very

parochial. she said, listen, i'm not going to be parochial. i'm going to be dae ta dependent. i totally get we were weaker than they were when they tightened in december. i think she's grown up. i think the people who continue to talk want to talk. they want to be on tv, they want to talk about their region. that's great. i like to talk. they should get their own show. but they're not fed chair. >> if they had a show, what would it be called? "fed up?" that's what i would call it. here's the problem with the market, if you're a mom and pop and you're in iowa and you have money to invest and you want to be smatter, you want to hear from bill belichick, which is yellen. i don't want to hear from the linebacker because it seems like everybody has a different message. i'm sure you've talked to people in the real world. the fed is making them more confused and less transparent. >> look. i think there's freedom of speech, but there should be -- i'll tell you what.

let's take the belichick analogy is. let's take it further. i love god to training camp for the eagles. chip kelly, now deposed, he ran pretty quick. there was an offense coordinator at the press conference and what he said was exactly what chip kelly said. he said, who needs this. if they want to make dues, they should move on. there's dennis lockhart. he moved on. he wanted the titan. good, good. let him say whatever he wants. we have one fed chair. the people don't need to be confused in them. she's good. she looks at the data. data dependent. look. the u.s. dollar is now very weak year over year versus the euro. what's the matter with that? why should the japanese take so many cars from us? the yen is stronger. i like them. the emergency currencies are doing well.

i know this is going to shock people. the working person. she recognized the rent's going up a lot year over year and the health care for the person and recognizes the gas price is not offsetting that and housing is not punching its weight like it used to. i don't know. to me she's looking at the data and making a decision. briep, we have people working all day to debate that. >> i think we might. >> it's like sports talk radio. i think dhip kchip kelly is goi destroy the niners. i don't think he's going destroy the nierns. we could play. we could play sports radio. it's a dynamite thing. i wanted to go into it at one time. you had no power. nothing. >> you and i -- you were talking before the show, this is premakeup, i mean we look totally different without makeup. by the way, they're like stealing our jobs.

it's a great. >> just for you because you're all relaxed from vacation and we erie talking about this, i have a gift for you. charlie evans speak about the rate hike picture earlier on "squawk box." >> the fundsrate chart expected rate hikes in 2016. now it's down to 2. that's the media. i think that takes on board the global risks and the fact that an accommodative policy seems to be appropriate, but it has an upward slope to it. the median hike is two this year. if the data comes in as expected, then i think everybody would adjust upwards. >> that sounds like common sense. >> except this. i know my college friends agree. talking about dot plots. do 90% of americans out there listening on radio or watching tv or getting a cup of coffee know what it is?

the thing i know about dots, it's a delicious candy. >> i had a whole -- i had an actual crown come off by dots. i was not covered by it. what she's doing is she is saying, listen, here's the way it's going be. i like it. get this. i'm in mexico. 120-car ksu train passes me, all right? empty cars about to take all what they make down there to us. $3 an hour. no pollution control. it's a picnic. they're laughing at us. the elite sateare saying it's g. >> they have a port. >> they come up to chicago. that's all right. >> that's all right. they do come around. >> i'm saying i was there where

the plants are, harmon, pp kb, going to these places, recognizing they're having a huge laugh. i've got to tell you. ford may want to do it in some of the areas near the border, but the german and japanese and koreans, they know, go to the mexican highlands where the worker make 3/bucks and they don't have any protection or health care. if we say it, we're protectionists. >>'ve got two pieces of bad news. number one, i don't think there's anything the fed can do about it. >> no. that was mandated by clinton and the republicans loved it. you ought to go to where the cars are made. it's a gigantic move to mexico. >> number two, i have to do -- i violated my own rule about not talking about d.p.s, dot plots. now that i did, i have to talk about them. >> it's okay. it's like raisinettes.

>> remember battleship where you plug in the lights or basically lite-brite? it's a fed protection where each fed member believes they will be on inflation and potentially rates. so by charting the path of the dot plots, you could theoretically know where interest rates might be, which, by the way, would theoretically then tell you where the economy might be which then may theoretically tell you where you should invest in ibm. >> okay, okay. >> the last part was completely sarcastic. >> they have the worst one. ibm is worse, apple, j & j. i can raise numbers. that's why the stock is at 109. what's important is she just changed the equation. we can start talking about lululemon. we can talk about the upgrade apple. she's giving us permission to talk about stocks and making money, but we insist on monday

morning quarterbacking. we incesist on -- this is like spring training with the mets. i'm not playing it. i have to try to help people make money. i have to. oil is going higher. how is that happening? >> i don't know. >> that's why i said yesterday i was, quote, fed up, because i can't keep up with the conversation. >> i'm just saying we could sit here and talk about the fed and make no money or let's give you the green light and talk about stocks and making money and she's not trying to ruin the market and she's worried about digitalization and employees and wages, she cease so thoughtful, we ought to give her a couple of days before she comes on. i'm not calling them clowns because i have great respect for them. >> let's make some money. last word, i guess, listen to the head coach, yellen. don't listen to the linebackers. >> she's so clear. she's the head coach, the owner,

she's much more useful than sports. >> apple is the stock existing bear market territory. it's now within 20% of its april all-time intraday high of 151.4. this morning cowen and company saying year-over-year estimates have bottomed out. cbs news reporting the fbi -- every time i say fbi, i want to say it like "diehard" -- wants to own the rights of breaking into the i phone. >> i was doing my piece last week before syracuse and nova decided to shock everybody. i was so desperate to honestly have tim cook on my list but i needed the stock to be up year over year js arc it wasn't. i have to tell the you, this

upgraitd 20rks 16, seven times, 2017, eight times earnings. 17, 18 times earning. this is a rather unbelievable situation when what they're saying when this stock was down -- nobody downgraded it in the 1990s. if you want to overlay a chart, overlay the chinese market over apple. believe it or not, it's one for one. when the chinese market came back, apple came back. i believe in the iphone 7 and what tim cook is doing. maybe the watch isn't the greatest thing. maybe the 7 will be waterproof. that would be terrific. but the stock is so darn cheap it trades like a caterpillar. there you go, caterpillar and

apple. >> they're going down and am is going up. >> growth is slowing. that's why it's growing. >> i love that. that's why i have a show. i love that talking game. but we can see the dollar reverse substantially. if you go over tim cook's last call, which nobody does because that's not as good as listening to fed guys. they make it easy. they have a little conference buchl if you go through the very long apple call, you'll realize they're heavily weighted to a weaker dollar. they're headed to a weaker dollar. they're getting a weaker dollar. >> janet yellen is helping tim cook. >> yes. she wants that. >> and thus helping investors make money. >> she wants that. she favors better times. maybe she thinks 2% gpdp is not enough. maybe she's seen those trains i have from ksu. hey, guys, stopt running those

trains all night. i've gotten to sleep. >> quickly. ge. we put it on the list yesterday. >> new position. another asset disposal. this time $485 million. this was an industrial with the best single organic growth than anybody. they're away from the government. they can raise the dividend. you're looking for cheap stock. look for ge. do not forget the j & js. >> the news that you gave. ge continues to evolve. >> exactly. >> heavy industrial, also heavy industry, correct? >> i wouldn't say that. one-fifth. >> okay. >> remember, let's quarterback what the feds said. that's something to do that required zero homework. >> no. >> i realize i could sleep to 6:30 if i just talked about the fed. i tried to figure out the sonic and restoration. my apologieapologies, my apolog.

i'll continue to sticking with the fed because that's so easy. there. okay? welcome back. mexico? you want food trains filled with cars? go ahead. be my guest. $3 an hour. no health care, no solution. >> jim, i'm just a fill-in, but the only dots we're going to talk about are the candy in your crown. coming up meet the manager. >> yes, let's do that. >> and where he's putting his money. first today's movers including one retailer is stretching a little bit higher this morning. there's your hint. it's terrible. >> no. they sandbagged everybody. >> more "squawk on the street" live from post 9 in stretchy pants when we come back.

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[ pop, screech, doorbell rings ] boxed -- bulk-size shopping delivered easy with no membership fees. download the app and get 15% off your first order with code "bulk." and we'll get to the opening bell in 12 minutes. it looks like the opening bell is going to open hire and we're on pace for the best in five years. >> thank you, thank you. if you go back to january, a lot of people sold, why? because the commentary was so goes january, so goes the rest. all of those things when i hear that or if you look at the historical stuff, the market's dynamic. if anyone said january's bad so the rest of the year is bad, that made people sell.

i apologize if i was part of that. i don't think i was. i was on the "today" show. if i didn't point blarng say this is nonsense, i made a mistake. >> well, it's been all year in three months. i feel like we've got a quarter with 12 months. january was terrible, february was okay, march was great. i say great because it's one of three best months in five years. >> look. >> except for october 11 and october 15. >> i long j & j. they're fantastic. he's saying, do i need to do that nonsense anymore? now we have the euro. last year it was 107 a year ago today. >> 113 this. >> i was saying fxe. i don't want to confuse the viewers at home. we should have talked about another head coach. >> i should have use ned

metaphor besides bill belichick because he says something. my bad. up next, it's jim's "mad dash." it looks like the dow is going to open up more than 100 points. later, it's a big interview, former lehman brothers ceo erin callan talking about her powerful book, leaving wall street, raising a child. she said she leaned in too much. let's leave you with good news here. the markets look like they're going to go up. more "squawk on the street" coming up. ♪

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working through it. it's rather remarkable because mcdonald's has blitzed through this whole industry. they did not hurt sonic. they hurt pop eyes. jack eerks they decimated. here, good value meals. good expansion. he said, listen, i p ee going buy all the stock i can. he sure did. value. that's what the customer wants. >> their comps are up massive. >> so -- >> up 18%. i know bob came out. he's a good analyst. >> sonic's. here's my favorite. beef prices are down big. people forget. that speaks well for mcdonald's which is going on this to 130 almost in a straight line. >> all right. what else are we looking at on the "mad dash?"

>> carnival here. a little kudos to arnold donald. i was a little concerned about caribbean and zika, but they're talking about things being up big every year. bunker fuel is down big. looky. he said this time, they're well ahead of the prior year with slightly higher prices. it looks like zika is not each a factor. let's listen to the radio call. >> it's up 4%. >> i did not think it would happen. i thought, well, caribbean would be down a little. >> using a lot of fuel, although fuel has come up. be karel. fuel has come up. >> true -- >> they're still buying fuel when it was at 26 bucks. >> that's a good point. >> you've got four to six weeks to load up the bunker. we have one more before the [. >> restoration hardware. i did not like that conference call. it had a lot of existentialism. i'm looking for higher numbers. >> why is lululemon up?

>> because the guy sangbags. he's a great ceo and the come story is terrific. another one that the analysts, i did not see coming, it was pvh. very pvh-like. it looks like there's still athletic aparm being bought. a lot of good quarters tore. but did i mention there's a fed governor somewhere who wants to speak somewhere. fed governor. >> stocks are on the rise. we're back after this.

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all right. you're watching "squawk on the street" live here. looks like a solid day. jim, indicated futures up, up, open up more than 100 points. >> we need to see the drug stocks dissipate. they have not been great. let's talk about bowie. you can look at this two ways. one, they're streamlining, or, two, they're stream like against

airbus. do we really think that boeing makes a worse plane? no. and this is kind of what janet yellen is looking at. listen. the compareton advantages of the united states really are getting crushed. boeing makes a first-class plane. i'm still waiting. >> is that a future prediction of demand? are they concerned about a slowing economy? >> the new airbus -- >> this is a cool story. lockheed martin selling 12 blimps for $450 million. i know they're called hybrid airships. there was a show on last night. for some reason this is what i watched. we're going back to the '30s, jim. what's interesting here, you know, att at 39. rbc updates target for verizon. 58-50. people wanted yield and

grouchlkt we need to see it involved with tech. we need to watch nxpi. a lot of downgrades. and don't forget broad come, which is now veanother. the university of women celebrating. t tv land's first. let's get back to the markets again. if you're just joining us, welcome. hello in bali. we're waiting for some of these clearing prices. i can't say it enough. this is going to be one of the best months for the u.s. stockmarket in five or maybe ten years and there's all these stats going back to the '30s. >> what do you make of it? >> it's a weak dollar.

we said, hey, should we change stocks? they defi fivfine ge why? it's not good stocks. it's like verizon. you don't chase up. you get ate ber opportunity. but janet yellen is basically saying, listen, all the things that have hurt -- kb holmes wasn't up. they had a $19 book value. i'm sorry if i said this before, for those of you just waking up, apple is up that. i like the i foeciphone 7. they call it the echo effect. i presume like the halo effect. they take it out of bear territory. it's no longer down 20% from its

high. technically does that matter? >> i think that what's going to happen is estimate stocks are cut. i do believe when you see this thing at 8.7 times 2018, what it says is the service revenue at that point, it could double. you see it shake up as a pandora. this is about apple taking a share. this is about you paying the apple bill every month. the analyst who talks about it being a one product company, no. once you have an apple cell phone or pc, you pay apple every month and that's going to be the story. i'm urging them to tell that story. i'm happy to tell it. it doesn't bother me. but at eight times earnings with an unbelievable balance sheet -- >> i'm wondering. speaking of my own media habits, i wonder if people are valuing that side of the business. my kids, they're buying programs on itunes. the history channel shows the vikings. maybe better than game of thrones. if you wanted to buy the new

season, i looked it up on apple tv. apple's going to get a slice of that. you can watch it on the history channel. there's a migration. we're in this business. but i do wonder because everyone's waiting for the hardware apple tv. i wonder if people have not valued that little black box they sell but it's all the content you can access. >> they never look at their bills. i looked a my verizon bill and i can cut it, thank goodness and my phone bill, i can't cut it. am computed that quarter. the stock is up big. we're seeing some of the commodity companies do better. i'm focused on brazil. don't focus on technology. i'm looking at these great industrials and saying you can raise numbers on all of them if you can report if they can see some stabilization in china. the chinese market was going down every day. wi talked about it every day.

it doesn't matter. like i said, overlay china with apple. >> i think the fed trumped china. if we didn't have the fed commentary, china might get some support. >> i know everything's a lot. >> i think the audience knows this by now. there are no scripts. >> let's focus on this. there's a company called marriott. it's bidding against the chinese communist party. >> enbang. >> we let that happen. we let them come in. enbang is the communist country and they're going to get star -- >> let's look. do you feel like we're getting back to a point where -- i should whisper this -- earnings matter. >> i need to go on a conference call. >> do earnings matter anymore

again? >> we can nip the matter because we set the tone. i've seen this over the period when i worked for every single network. we set the tone. if we choose to focus on the fact that it's going to help them, we can help people make money. we went through everything. retashlgs housing. >> talking about this market the last few years which is no matter you could find the greatest company in the world that's going to make its investors rich and everybody you can parade on to talk about it, well, it's just the fed. >> we don't want to fight the fed. >> no, we don't. >> marty is telling us don't fight the fed. what she's giving you is a

window. >> she's giving you a gift of liquidity. >> right. let's take that. a lot of companies are financing. let's do that. you've done great. >> thank you. >> you have rbn. there's only a couple of counties making under 40. what happens? >> okay. soy for stealing your rusty by the way. i'm not a market analyst like you are. i'm just reporting. there are companies, and there aren't money, that are profitable at 40. chevron is under 40. pie nier, resources, sheffield. >> you like sheffield. >> yeah, but -- again, i'm not recommending names but bakken is tough. if you're going to invest anywhere in oil, i will not say where to invest but i would say the cheapest cost is in the

permian basis. it's a different perm lodge cam layer. when people say stop fracking, i get it. take the politics out of it. people are going back to drilling the old vertical wells because it's cheaper. here's the worry. if oil continues to move higher, there are over a thousand what they call ducs, you might see prices go up and down. it was like the housing market. it was weak. no one sold their house. home prices went up, people started selling their homes which drove prices back down. >> let's say you were in the gold business. let's say you were in the copper business, the oil business, let's say you were in liquidity

and you're freeport. they make it, i think. they make it. it's better. >> freeport is a helluva story, is it not because freeport is a company that's up 35% -- down 47% over 12 months and carl icahn famously got into the stock about six months ago. i would presume and probably scott walker knows because he talks to carl, under water on that trade. >> oh, yeah. but listen, barclays sells with a hold, not a trade, which is interesting. what you're get are many companies leavered to a weaker dollar. don't forget, all these tech companies have a huge business. huge. >> i'm not a big currency guy, but what you're saying is an incredibly important lesson which is about investing lessons. it tends to be unconventional

and not all that wise. i couldn't throw something here at the stockmarket and have someone tell me why the euro dollar parody was coming and the stronger dollar was a guarantee and the easiest trade in the world. now what we've seen is we're talking about suddenly the impa impact of a weaker dollar. >> right. >> when everybody said the dollar was going to go nowhere. the exact opposite has happened. >> when we talk to tech companies on ""mad money,"" in many cases they're stronger than the united states. i think there's an expectation that the european countries are going to have to deal with the european refuchlkt i know where if you to italy or france, it's a little too cheap. japan doesn't know how to grow and i don't know if i would want any of their paper, but i see a lot of things happening that tell me the dialogue -- remember, the narrative is about to skbin. in two weeks we're going to have

to listen to earnings. in earnings, year over year, they're going to have to say, you know what? we're doing better. not nearly as hee as people think going on a forward basis. again, i don't want anybody to chase here because yesterday was the yellen rally and then the euro, which was stupid because they shouldn't have moved up on this. >> there are only 31 or 32 central bank around the world easing or actively involved in some sort of credit stimulus. >> that's a huge story. >> people are recognizing the dollar got a little too strong. with janet yellen saying, listen, the dollar's done going higher, guys. she's just giving you that. that would hurt u.s. manufacturing. talk about us manufacturing, it sounds like a little boift politics right now. >> we're going go to bob.

right now apple up 2.5%, mcdonald's doing well. caterpillar doing well. coca-cola is down. >> sonic's and beef is very, very good. >> let's go now to a man who is always filled to the brim with effervescence, bob pisani on the floor. >> thank you, brian. let me talk about the effects of the dovish speech. it's all over the markets right now. take a look at what happened in japan your night. the yen strengthens, the dollar weakens. the nikkei was down. including the chinese yuan gained on the dollar. weak dollar tends to help emerging markets. so the een which did very well in march, had a lot of inflows.

the biggest sitting at a hire. europe is trading. that's more of one to watch,risk-on. bmws and daimler are up. the italian oil company up 3% on the better oil and the banks lend credit like here in the u.s. are lag. the weaker dollar is also helping commoditiys overall and you're seeing some of the nice moves up. anglo-american is up nicely about 10%. glencore is up, bow la den. you can see the effects. here in the u.s., same story. energy is leading. nice to see financials. there are 52-week myhighs.

at&t, johnson & johnson and coca co-last. we're essentially heading to the highs. essentially we're flat if you look at the s&p 500. volatility is collapsing. it's near the lows. the bad news is we keep point ought the earnings perfect. that's what we're going to be occupied within the next few weeks. it's dismal. earnings down 8.7%. look where its was january 1st. you see the big differential. it keeps dropping here. this would be for four consecutive quarters. that's the worst. here's the problem. try correlating this with the stockmarket. it sounds like bad news. it sure fieels weird to me.

we turned to them. it hasn't happened very often. only four periods where it declined in the s&p 500 going back to 1990. and we asked them what happened in that period and six months later. 's very inconclusive. the average return has been 5.7% and essentially it's the same even when you ask about that current pureed you. this obviously happened in 2007, 2009. it happened in 2000 during the dot-com bust and, brian, the problem is the reason it's inconclusive is you have things like central bank intervention that kind of muck up the waters a little bit and make it very, very difficult. so it's certainly not good news that we're seeing consecutive declines in earnings. brian, back to you.

>> i think it was well said. mucking up. bob pisani, we'll get to you in just a bit. due out in 30 minutes. let's get a check at what oil is doing with bertha coombs. hi, bertha. >> hi, brian. we've seen oil extending those janet yellen relief lally gains. that was a nice reversal yesterday if you were long oil. you're going to seesawdy arabia and kuwait saying they were going to join the field. nonetheless, it was really something that jarred the market with a lower dollar. we saw that turnaround and then we got numbers from the petroleum institute that were a little bit bullish. we saw it. the expectation for today is that we'll see a build of about 3 bill barrels. the other thing that was up was a drawdown of 300,000 barrels at cushing according to those api

reports. we'll see if that's confirmed at the bottom of the hour coming from the government. as far mas metals, the rally cae in gold. today we've got to a mixed picture. the dollar is weak but we're seeing gold a little bit flat at the moment. silver has been advancing on the day. we will be back with those inventory number, brian, at the bottom of the hour. back to you. >> we'll look fooifr foofrd though that. it's the only dow stock down. there's an unfavorable trend when it comes to sew 2k56789 dan for evide forest who's defending the lgbt law despite a backlash from companies. "squawk on the street." we'll be right back. are you new to medicare?

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when's the last time you had a coke and a smile? maybe for a while. soda consumption is down. the total volume of soda consumed fell 1.2% laugh year

compared to a drop of 9% in 2014. that now continues. it's been a multi-year slump. it comes out when coca-cola stock is trading at an all-time high. coca-cola doesn't care what they sell you as long is that sell you something. >> they're hedged in the euroand yen, so don't make that your play. i was listening to wofford and sara this morning. dr. pepper doing largely domestic. watch the constellation brands. they've got printing money. so if you want beverage, stick with beer. >> beer and tequila doing wellsome. >> tequila is doing incredibly well. >> dr pepper, snapple, a little weak but up 13% in the past months. that's kind of the little -- i know they're not that little. the little soda and tea company that could. >> there's a soda tax debate in

philadelphia. think i those things are ongoing. big soda tax. business came back. soda is on the wrong side of history unfortunately. >> there you go. we're going to take one more quick break and when we come back, stock trading with jim and find out what's on "mad money" tonight. here's a tease. >> huh? >> giant pandas with regard to interest rates. we'll make the connection. it will make sense, i promise. "squawk on the street" will be right back. >> okay, i'm there. i'm there.

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get better internet installed on your schedule. comcast business. built for business. squloort. welcome bachlkt solid day for the dow. we're seeing solid gains across the board. let's talk about two individual names. jim, in stock trading, what are we looking at? >> first with valiant, they're asking for forbearance. what happens with valiant, as soon as they start talking, immediately the stock goes up $1, $2. then forbearance on default and they report on july 30th and they come back and say, why do i need that? i can go back and buy bristol-myers. valiant, we reappraise everything. immediately someone comes in and buys it. they do what i call collaring the tape. then people come in and buy it. they say, why do i want a company where main or maybe not the financials are going to come

out to. me that's a sub optimal situation. >> let me put it a little more bluntly maybe. you're guessing. >> there's a little guesswork. >> no. you're guessing. >> right. >> you're flipping a coin that the financials are going to come in as they have previously stated they would. as of now no executive has sign thad form to the s.e.c. putting them at risk for liability. >> i think so. remember, they have a determine co-logical business that's being eviscerated. they have a business that's on tuomo logical. i'm still amazed about carnival. >> let's end on a high note. shake shack. >> this very interesting. shake shack is going to glow into its multiple at some point. have very few same sales in their whole calculation because there's not a lot of shake shacks. but those who love shake shack are never going to stop anyone from buying the stock. >> the analysts there like the prospects for growth outside manhattan. shake shack still part of of new

york city. >> they're putting them everywhere. look at sonic. >> if they put them everywhere, they're not special. >> i love that sonic put it together. the last time sonic was on it, they said, listen, we're going to put it together, nobody listened. it was in the 20s. >> "mad money" preview. >> we talk with marty mucci with paych paychex. and then lamer tom ryan with service corporation international. >> thanks for talking with me. >> i have people following me on twigger. now you're giving me the business because you know i'm not a fed head. >> it's a pain in the "a." you have to get up early. it's so much easier to slop. >> you owe money in the fed jar.

>> don't forget. what you think is 1,020 jobs taken away. >> conjunction junction. on "power lunch," bill gross will join us. he'll tell us why capital gains are rare like giant p.a.n.d.a.s., not very good at replication, reproduction. we'll leave it there. bill gross at "power lunch." coming up, the top hedge fund manager of 2015. and tomorrow on "squawk on the street," an exclusive interview with canada's new prime minister. >> justin bieber and justin trudeau, they rank. >> dirty seeker. i'm a belieber. >> you get taylor swift and justin bieber and justin true i do. whoa. >> "squawk on the street." we're back right after this.

good morning. welcome to "squawk on the street." let's show you this rally. we're in the middle of triple

digits. 131 points. the janet yellen celebration continues. the s&p 500 up. the dow and s&p closed at a high. the nasdaq up a full percent. even wti crude joining the party, almost 3.5%. >> here's our roadmap for the next 60 minutes on cnbc. stock getting a boost after yellen and adp. find out how you should play it now. plus trump threatening legal action over the charges against his campaign manger. we'll talk with his campaigns spokesperson and the top performing hedge fund manager of 2015. he'll join us live to tell us where he is investing now. >> coming up later a first on cnbc interview, the lieutenant governor of north carolina, dan fore forest. he's going to explain why he thinks the new backlash on the law is undeserve snoods we're up 120 points on the dow.

stocks are higher as investments seem to welcome the soothing approach to a hike in interest rates. where should you put your money to work now? joining us now. david, let me kick off with you. what should investors make of what janet yellen did yesterday. i think we rose 98 points on the dow yesterday. 134 today. would you have expected more? >> so i wouldn't have expected more, but i think that janet yellen delivered the message that the market was looking for. you know, coming into 2016, investors were worried that the investor ters were going to hike four times. we were never of the view they were going to accomplish all four hikes and frankly what yellen said to the market, listen. we're going to go fast and move cautiously.

>> to parody what you're saying it's not huge because the fed dots anyway? >> i think the fed dots come into question. i think what's more important about yellen's comments yesterday, she acknowledged the global risks and acknowledges the inflation in the u.s. has looked strong particularly on the core side, but there could be down side later this year and all of that warrant as very cautious approach. they have kept the plates spinning. what they want is easy monetary policy. >> jacques, you're in an interesting position, famed bond holdings. people are worried about the economy and clearly have been able to not be as concerned about the fed. your chief investment officer scott wrote yesterday about a religious fervor, a zombie of the economy and basically the rate situation we have is a

hiding to nothing. how do you now weigh in if there what you got yesterday. >> i think janet yellen is also concerned. i think the message was very clear. she wants inflation and inflation expectations higher. she's not convince thad the recent pickup in u.s. inflation will last, that it is for real. and she noted that there's a slippage in long-term inflation expectations. so i think the fed will try to do its utmost to bring inflation up and that's the best way out of the zombiefication of this economy. they'll want to have the economy run a little hot to have the inflation overshoot 2% ever since they undershot the target in 2012. >> i think what your chief investment officer is saying this has become counterproductive and it's not working. what is your analysis of that. how do you feel about what is going on? >> well, i this i the problem is

that the longer you keep interest rates so low, the bigger the risk that inflation expectations actually drift lower. and i think they understand that. they would like to raise interest rates burke they think they can only do this if and when inflation has started to rise and is actually overshooting the target. so this is where i think you'll see much more talk about them allowing an overshoot of inflation. you had charlie evans on your show earlier today. he said it's symmetric, which means he would believe it to be above the target about half of the time. they've been below the target all of the time. so now is the time to talk inflation up, to let the economy run a little bit hot so that eventually we can get out of this very low interest rate situation. >> david, i wonder where this leaves us.

of course, you have the eegzs from the higher dollar. all of that seems to be pretty helpful but stocks not looking cheap. of course, profits still on the slide. where do we come down on that? >> i think the profits are the keep. when you look at equities, they're looking at it. investors don't seem to be comfortable paying 16 1/2 times forward earnings. we need to see profit growth richardson at the aggregate level and growth somewhere in the 3% to 5% range. that puts us in mid digit and a lot of it looks for outward inflation. yellen talked about inflation. core inflation is a very, very sticky thick. so even at 1.7%. this along with 2% economic growth could finally lead to the nominal growth we're looking for, a pickup in revenues, and an acceleration in earnings put a price on stock prices. >> david, there's one area of markets that become very concerning and that's emerging markets. >> yes. >> now that we're not soern

canned about interest rate rises, does that mean they have a whole new life? i see $37 million went into the hedge funds last month. that's the highest level we've had in almost two years. is that what you would basically steer people toward now? do you think they'll come back? >> i think we'll see a monetary policy not only from the federal reserve but the bank of china could add more risk. we do see more money pouring into the markets. sometimes they're cheap. for long-term investors who can stomach the volatility, there's time. if your time horizon is the next 12 months, i don't think it's going to be that smooth a ride. >> thank you both. up next on the show, donald

trump now threatening legal action over the charges again his campaign manager and he, john kasich, and ted cruz back off their pledge to support the republican nominee. we'll talk with donald trump's spokesperson when "squawk on the street" comes right back. ader o. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.

woman:man: yes.a newspaper? woman: it's quaint. man: did you read about this latest cyber attack? woman: yeah, i read it on my watch. man: funny. woman: they took out the whole network. man: they had to hand out pens and paper.

woman: yeah. man: could it happen to us? woman: no. we're okay. man: we are? woman: yeah, we brought in some new guys. man: what do they know that we don't? woman: that you can't run a country with pens and paper. it's not just security. it's defense. bae systems.

so all three gop presidential contenders backing way from their pledgers to back the republican nominee, whichever it could be. one of them presumably. maybe not john harwood has more on that in washington. this is clearly a u-turn for donald trump, john. >> it is. although not a surprising one given the twists and turns it took to get him to that pledge. but that cnn town hall, last night, was notable mostly for donald trump's campaign manager against battery charges filed by a florida police department and is defensive himself over that skirmish he's been having with ted cruz over their wives which many consider unsavory and also childish. >> i thought it was a nice picture of heidi. i thought it was fine. >> come on. >> i thought it was fine. she's a pretty woman. >> you're running for president of the united states.

>> i didn't start it. i didn't start it. >> with all due respect, that's the gum of a 5-year-old. >> that's not the argument of a 5-year-old. you would say that. that's the problem with the country. >> as you mentioned, simon, donald trump said he was not going to abide necessarily by his pledge to support the republican nominee. he said he's not being treated fairly by the party, and for their part both john kasich and ted cruz did not commit to supporting donald trump if he's the republican nominee. this discussion is pretty abstract at the moment. the rubber hits the road when we find out whether or not one of these people can get a first ballot or second ballot nomination or whether we have a protracted standoff in next world series's primary in wisconsin will go a long way in determining if that's donald trump, guys. >> all right. john. we'll see what happens tuesday. thank you. a big question. what impact will charms against trump's campaign manager corey lewandowski will be and what about scott walker's endorsement

of him on tuesday. joining us now national spokeswoman katrina pearson. good morning. >> good morning. >> you defended mr. lewandowski who made headlines yesterday. he was charged with simple battery. he'll keep the job even if he doesn't beat the charges. most would be suspended or out of a job. why is the trump campaign not suspending him? >> you don't ruin man's career just because people want you to. i think now that the police surveillance video is out there, it's clear that the allegations that mr. lewandowski forcefully grabbed her and through her to the ground clearly shows he didn't. >> you're saying he will beat the charges. >> yes. this is one of those things where mr. trump is going to stand by mr. lewandowski. he did nothing wrong.

this was a press scrum. this is a reporter who crossed the secret service threshold where you could also see two secret service agents reached out to her not to touch mr. trump, and she did, in fact, grab mr. trump. so no, there's no need for him to lose his job. >> it's clear why his rivals would jump on this politically but do you deny that they're calling it personal attack a salts and attacks -- >> i don't. we are also talking about senator cruz backing black lives matter, moveon.org and domestic terrorist bill ayers and calling it what it is. it's a simple attack against mr. trump and his candidacy. so we're not going to pay too much attention to that. again, this is a competition. mr. trump is winning and mr. trump will receive the delegates

to win the nomination. >> if he doesn't t other big news is john harwood just mentioned last night he's backtracking on this pledge to support the nominee no matter who it is. can you give us a little more insight as to why trump has changed his mind on this? >> oh. sure. this isn't backtracking. when he did sign the pledge, he said as long as the party is treating him fairly. there's been quite a widespread of news coverage where you have an entire anti-trump movement consisting of party elites that are out there trying to stop trump from winning the nomination and even democrats. i don't think that's fair when you have a person bringing more people to the party, new people to the party across all factions of the republican party and they're trying to stop him anyway. >> all right. i want to talk about the economy. we're not hearing enough about it, all of the insults back and forth over the campaigns. one factor that a lot of economists that we talk to on

cnbc and investors are worried about when it comes to the trump policy is on china. the fact that he's pointed the finger at a china and has threatened high tariffs on chinese goods imported here in the u.s. can you walk us through the policy, how realistic some of the parts are and why you guys aren't afraid of a trade war with the second biggest economy in the world? >> sure. there's a reason why they question the art of the deal to understand where he's coming from when he puts those types of things on the table. you to reany gauche yalt these issues. manipulation is a very big problem. no one denies that currency manipulation isn't a problem and it needs to be addressed. we are spends hundreds of billions of dollars in deficits even when it comes to trade and that is a problem whether you're looking at shipping goods across countries or even jobs for that matter. mr. trump is saying the policies

we have in place right now are hurting american jobs and the economy and we have to renegotiate some of these things. if we have to get tough and talk about things like tariffs, which, by the way, the obama administration has done on things like solar panels, then we have to do those things to remain competitive. >> but many say you can't -- >> he's not talking about across the board. you're absolutely right. he's not talking about across the board. that's just a number he was talking about because of some of the tariffs we pay are taxes we pay in response. there has to be some level playing field moving forward if we're going to remain competitive. >> can you also give us an update on who donald trump is thinking of nominating for treasury secretary? is it still carl icahn who he's named in the past? carl has said yes, let's said no. >> he has a lot of respect for carl icahn. he believes carl icahn would do

a very good job. none of the people he's talking about really care about the notoriety or the money. they want to help america. we keep forgetting. he's the only candidate not receiving a government paycheck. his entire life and legacy resides on the success or failure financially of this country. >> katrina, why does trump not spend more time talking about hillary clinton. the e-mail setup was extraordinary. it seems to undercut her arguments. i mean is the calculus here that he can wait until really just before the convention to turn his attack on trump? because if you listen to kasich and people like that on clinton, if you listen to kasich and people like that, they would argue they're best suited in the polls to beat her at this stalk. is he missing a trick there to a

certain extent? >> no, not at all. reagan was ahead in 1980. trump, he's trying to win the republican primary. the republican party doesn't have super delegates that completely ignore the will of the voters some of he's been attacked by 16 candidates so nar. he has to fight back against the meade yarks against the lobbyists, against the special interests, against his own party for crying out loud. his focus is to win the nomination and go after hillary clinton wherever he can. >> katrina, thank you for speaking with us. katrina pierson. >> coming up. joseph edelman. the hedge fund manager. find out what he's investing in now.

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11th year in a row. it dropped 2%. worse than the 0.9% slide from the slide below. pooh customers are worried about the sugar-free ingredients. two winners in the soda category, sprite and fan ta, which actually saw growth during the year. both are run by coca-cola and dr pepper actually took the number four spot in terms of bigger soda brands. the upshot here, americans are continuing ditch sodas in favor of bottled water, juice, and teas. that's why coca-cola is trying to diversify, offering mini cans where they can get higher prices. the stocks are fine because they're defensive and the companies have pivoted. they receive seen this trend for a long time. now they're squeezing more money from less soda in terms of prices.

pepsi's also good the cushion of frito-lay. in a market where, yes, there's major slowdown going on, but we're still drinking, listen to this. 400 cans of soda per person per year. that is the annual per capita data on soda consumption. >> somebody has a big portion of my share of that, but, yes, it's a pretty stunning amount. honestly, you mention the sto stocks. you mention they're defensive. they absolutely are. we saw this play book with the tobacco industry where some of the best stocks have been tobacco stocks where you basically had constant annual declines but you had pricing that was making it up and, of course, the declines in soda consumption are significant but not as dramatic as tobacco. you wonder how expensive these stocks can get. they're turning soda water into other machines. >> i think that's a good point

as soda gets taxed around the world. as part of the british budget, they're going to tax the a. of soda the companies are going to have to pay and transfer it onto the consumers. >> is it sugared soda? >> sugared soda. >> see. it's interesting -- >> simon only drinks sparkling water. >> i'm pretty much in that category. >> it's the tide of public opinion has turned against them. they have to somehow raise prices on a limited number of people. >> in the meantime first quarter earnings are right around the corner? what should we expect? dom chu has more. you're not going to depress us, are you? >> i won't. i'm very impressed. i'm going to switch to sparkling water. i drink a lot of soda. that explains why you look as good as you do and i have a ways to go here. let's take a look at earnings. it's a dismal one. here's the reason why.

we're talking about what possibly could be the third straight quarter of earnings declines. if you look at that, the last time was the financial crisis. according to the company that composites the data, the first quarter 2016 are for 57% drop in earnings on a year-over-year basis. this is the first quarter of 2015. meanwhile sales declines are still going to be there as well. it could be the fifth straight quarter of sales declined down by 1% if all expectations come to fruition. now, energy is a huge part. we know oil prices have declinet a lot. if you hypothetically strip out energy and this is just for perspective. if you strip out the energy component, earnings are still slated to fall by nooerm 2%. but, again, 6.9%, 1.8% decline, that's how much energy is affecting things. we're forecasting a 99% drop in

the earnings. if you take a look at revenue growth, it is. the sectors you want to focus on besides energy. take a look at these. technology. a 5% drop in earnings. financials, the second biggest. the third biggest sector up nearly 4 1/2%. it's the biggest one out there, sa sara, in terms of gains. for all the sectors, i tweeted out the story. we can see most are profit for declines. back to you. >> lower than expectations. dom, thank you. straight ahead, the lieutenant governor of north carolina will be joining us live to discuss the controversy surrounding the state's new discrimination law. why he says the law is actually anti-discriminatory while many corporations disagree. we'll be right back. ♪ before the band separated

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welcome back. i'm bertha koochls we saw a crude build of 2.3 million barrels. that's smaller than the original estimate and actually smaller than the numbers we saw from the american petroleum institute last night. as far as gasoline, it shows a decline of 2.5 billion barrels, more or less in line with the

numbers we saw coming from the api. distillates were down about 1 million barrels or so. i'm looking for the number for cushing here. that's one of the areas that really helped in yesterday's report. it looks like here we had a slight decline in cushing of close to 300,000 barrels and that's something that is bullish because cushing, oklahoma, is a delivery point for wti nymex crude. let's head back over to sue herera. >> thanks very much, bertha. here's what's happening in this hour. a french man thought to be in the advanced stages of a plot against france is set to be charged today hchl was detained last week when authorities found a large amount of explosives and weapons in his apartment. a hin egyptian is being hel

after commandeering a plane after a feud with his former wife. they're creating an underground frozen barrier of the recommended fukushima plant. this is in an attempt to contain leaking radiated water. and the death toll from a skraemts street drug crisis continues to grow. six people have died, 28 have been sickened by a powerful drug going around the city. the drug is a form of fundamentali fentanyl. it attacks the heart and the lungs. frightening. i'll send it back to you. the business backlash surrounding the lgbt facing more

this week. american isles, pfizer, many, many more sending a letter calling for a full repeal. yesterday we spoke with the senior official who has also opposed the law. >> we were surprised by the law. as we mentioned, we have thousands of employees in north carolina. significant presentation and operations. we're part of that community. we will make sure that we have the dialogue. the governor has been quite pro business for the last few years we've worked with him. the opportunity is for dialogue and we must do what is right. barrett, we don't believe it should have any impact on our qualities of our employees. dan forest, good morning. thanks for joining us. >> good morning. thanks for the opportunity. >> what would you say to tim

cook and mark zuckerberg and that gentleman at bayer and the leadership of one of the biggest corporations in your state who have all come out objecting to this new law. >> i would say read the bill. that's first and foremost. they haven't read the bill. quite frankly, to set the record clee your lead-in called this the anti-lgb t-bill. let's back up and set the record straight on what happened in charlotte. the charlotte council against their legal counsel's advice, against a lot of folks went beyond their constitutional authority and passed an ordnay d ordinan ordinance. it created a loophole that allowed men, sexual predators, people that perhaps are pedophiles to go into a women's bathroom, to go into a women's locker room, to go into a woman's shower facility and to make that legal to do that.

you know, government's first and foremost priority is the protection of citizens, especially the protection of women and children. and that's all this bill did. these critics crying, they haven't read the bill and i've talked to many who admit they haven't read the bill. >> but the critics say the upshot of that is requiring transgender people to stick to their birth certificate in order to enter a bathroom no matter how they dress or how they identify. is that wrong? >> well, listen. let's back up and talk about what the bill actually did. the bill is an anti-discrimination bill. it was the first public anti-discrimination bill in the state's history. in fact, it goes beyond federal policy for anti-discrimination. it's very interesting to me that, you know, there was no clamoring about discrimination prior to the charlotte ordinance and after we do, that all of a sudden, north carolina is this

discriminatory state. we just said men can't go in will's bathrooms and shower rooms, but, listen, the business community has the right to do whatever they want. this bill doesn't prevent them from having one bathroom or the nba from doing that in their arenas. all it said is in public facilities and public schools that you have to have bathrooms based on your birth certificate gender. >> mr. forest, i have read the bill, house bill 2, i've got it in front of me. on the one hand it does explicitly discriminate against transgender people. >> nowhere in the bill does it explicitly discriminate against transgender people. it doesn't happen anywhere in the bill. >> it defers to the birth certificate on what bathroom you should go into. let's leave that to one side. >> it also provides for the ability to have a single staal unisex facility anywhere for anybody at any time. the bill provides for that.

this really freed up business. what the charlotte city council said, you know what business community in north carolina, you have to abide by what we say. you cannot put male or female on the bathroom wall. >> let me speak. >> but the community is free to do whatever they want. >> just to come back to hb 2 which you think people haven't rate, which i have. it seeks out treatment for favored treatment. you look at those who are defended against discrimination and you say anybody who you do not die fine as being able to not to be discriminated against has no case in law. so by excluding those, they can't sue in the state. so it is actually deferential treatment to the lgbt community in addition to what it's doing to transgender people. >> absolutely not. this anti-discrimination bill is broader than federal law and anybody these's being discriminated against still has

protections under state law and under federal law. they have the right to go into court and the state of north carolina and be protected for that discrimination. listen. the business community in north carolina has loved north carolina for years. it's one of the fastest growing states in america. charlotte's one of the best business communities in the nation. they rank north carolina number one in the nation for best place to do business, best place to start a business. best place to live, best place to raise a family. if we were this a great discriminatory community in north carolina, none of that would have happen and north carolina wouldn't have been growing the way it is. >> let me ask you, sir, where are you getting your legal advice now from? because your attorney general said he's not prepared to prosecute cases saying it was a national disgrace, and certainly any school district that implements hb 2 is going to be in direction contradiction of title ix, which leaves them open to huge liability and loss

potentially of $4.5 billion of education. >> that's a nice leftist lie that you're perpetrating there. that doesn't exist at all. >> your attorney general would disagree. >> our attorney general has disagreed with everything we even done in north carolina. our attorney general is using this to run for attorney general. our attorney general needs to step up and do his job and defend women and children from predators in bathrooms. listen, 70% of north carolinians agree with hb 2, and i think it may be more than that. i talked to business leaders who say they haven't read the bill, didn't know anything about it. i've traveled, met with audiences ever since we did it. i said, please, if there's one person in the audience who did agrees with this, tell me why you think it's okay for women to

walk into women's restrooms and shower rooms and locker rooms and i haven't found one person who said it's okay. >> let me look at the economics. certainly it's down from the crisis, but at 5.5%, it's higher than the national rate. if you look at under employment, the bigger maerks whist measurer 11% in north carolina, higher than the national average. you've got some economic discress at elevated levels and now you have major corporations bashing your state. they haven't threatened to pull out but that could come next. you have other states like new york who are banning state visits to your state. are you really willing to put the cost which could be billions and more jobs at risk here? >>. >> there is no cost. this is a big fantasy. it happened in houston when houston had the same ordinance. same cast of characters. they were saying that were going to pull out.

houston is still in business, still doing fine. listen. we have a great economy in north carolina. since we've been in kroul, we've paid down state debt by over $3 billion. we cut tarkss by over $3 billion. corporate knicks tax has been cut in half in north carolina. personal income tax has gone down. we've paid unemployment insurance. a bullion dollars in reserves. we've put a billion dollars in the rainey day fund. >> all i'm saying is you're risking it. >> people love north carolina and they're going to continue to love north carolina regard lgs of this. >> we'll see about that. lieutenant governor, thanks for making case. dan forest of north carolina. >> coming up on the program, the top hedge fund manager of 2015 joins us here at post 9 about his strategy and what's ahead particularly with health care. "squawk on the street" will be right back. [dad] i wear a dozen different hats

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to top taking notice but will politics become the big driver of the market. we discuss. more "squawk on the street" coming up.

welcome back to "squawk on the street." up 15 points overall for the s&p 500 as the market sends yesterday's gaines. s&p 500 technology sector is leading the way hire as you can see there today. up by over a percent. tech is the s&p's most heavily weighted sector. lifting name, technology, financials, tech is one of this month's best performing sectors, up 10% just for march. simon, the year-to-date gains just shy of 5%. back over to you. >> interesting. in contrast they have not participated in the recent rally. it's lost a quart e of its value so far this year. so is biotech poised to move

higher? joining us is joe edle marngs ceo and best performing hedge fund manager of 2015. good morning. >> good morning. >> your return last year was 55%? >> 51%. >> 51% on the biotech market. >> yes. it's a health care -- general let care fund but it's principally biotech. >> how did you perform so well? >> we had good stocks. we had sur rupp tarks neurocrine, trow pin, a private company called aserta that we vested in that we did well. second biggest investor there. that was probably the biggest return in probably the history of pharmaceuticals. >> what's the experience so far this year? how do you see the market? >> it's tough. call it 50% from the high, but we see some very good values on the long side. it's a bit of a cliche, but i think you're going to have to be

more of a stock picker because there's a lot of resistance to investing in the group as long as the political environmental, you know, perception of that. >> where are you? >> first of all, i think hydro prices are a good thing, which is very different. >> because you're an investor? >> no, not because i'm an investor at all. it's basically a risk/reward question. drugs are very rif yk sky to de. if you're trying to develop a drug for alzheimer's, it's very risky. the greater the reward, the more people like me will invest. >> apparently she does not agree with you. >> well, she's wrong. i understand the idea that high drug prices in general you'd rather have them low if you could, but there's a balance. >> the problem is valiant went

around buying up old drugs and raising their prices, so it kind of -- >> right. valiant doesn't invest in r & d, but let's talk about the variety majority that invest in r & d, so the more money they tend to make, the more they invest in r & d. >> sure, sure. >> and you have drugging aimed at small populations where if you couldn't invest, those drugs wouldn't be around. >> talk about risk and reward. you invest in a limited number of stocks. you know the science very well. you're obviously making educated bets on exactly which drugs are going to be approved and work and things like that. if you're an average investor, i think we track the bbt which four stocks are mature. four big biotech stocks. how should an individual investor go about applying themselves to this market, this sector? >> first off i would say i kind of look at the investing as a

bit of a poker game. i say if you don't have the skills, you should invest. that's reasonable. too some extent it's money changing hands, but there are some higher quality ones that i think you could invest for the long term. big cap ones or the ibb index. we principally focus basically on midcap, smaller cap companies. >> do you want to throw out some names? sarepta you mentioned. >> yes. we're very bullish on it. it's a very controversial name. the drug's either going to be approved or not approved. >> it's for muscular dystrophy. >> yes. it's going for something called accelerated aimprovement most

believe it won't get approved. i believe it will. >> didn't they turn down biomarin's drug? >> it was a bad drug. it was toxic. it didn't work or produce any of the target protein you were trying to make. this is a disease caused by a lack of a protein. the insurer rallying on the news that a judge has ruled in favor

of the insurance company. remember, the company went to court in order to remove its systemically important designation that it had been given by federal regulators, the judge siding with metlife saying the judge cannot call it a systemic important company. what it means for metlife is it will not be subject to oversight by the reserve. the shares are rallying today. take a look at the other insurers because they, too, are rallying. take a look at metlife. ai gi and general electric was one of three companies, not a bank, nonbank company that was designated when it received this designation. rallying on the news. >> good news for that company. thank you. up next, what it's like to be so rich that you have the option to match the decor of your private jet to your ferrari and your

porsche and rolls royce. we'll take you inside the secret lives of the super rich, next.

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>> you know you're rich when you're worried about matching your private jet to your collection of luxury cars. more on that as we gear up for secret lives of the super rich on cnbc. >> it's all about customization. we caught one the real estate developer to look at his custom cars and matching gulf stream 4. the ultimate toy is his $17 million gulf stream 4. customized to match the cars. >> the real input i had on the plane was the colors up on top and the ferrari that you see down below. my two favorite colors and i had to incorporate them in the plane. >> how much did it cost to paint this plane these cool colors? >> about as much as somebody's

home. >> that's crazy. >> no joke. >> even the seats in the ferrari desired the design for the plane. >> if it looks good in a car, probably looks good in the plane too. >> by the way, each of the seats in that plane cost $55,000. he loves porsches so much he's building a tower with a private elevator just for your car. that's truly living the high life. >> how else would your car get up? needs it's own elevator. we will be watching and you'll catch a glimpse of more cars, more collectibles on secret lives of the super rich. >> okay. let's send it over for a look at squawk alley this wednesday morning. >> how are you doing? how am i supposed to think after that? he is formerly with the obama campaign. we'll figure out how he is influencing that company's ride

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it's 8:00 a.m. at uber headquaters in san francisco and 11:00 a.m. here on wall street. and squawk alley is live. ♪ welcome to squawk alley on this wednesday morning. and welcome good morning. >> also