remember this? >> right. >> and his whole explanation is like, don't you understand? i live paranoid. if i hadn't done those things we wouldn't survive. this guy is -- he wants to win. in a really big way. >> he wants to win in a very, very big way. the question is whether they have cut corners or done other things along the way and what that ultimately means. in the meantime, have great weekend, everybody. >> you too. long weekend. >> have a great long weekend. join us on monday. in the meantime, "squawk on the street" begins right now. ♪ good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. last trading day of the holiday shortened week, it will be a busy one. three big banks launch earnings season and the stocks will react to the president's comments on the dollar, yellen and more.

europe is pretty weak. ten year yield 223, now the lowest since mid november and gold came close to 1290. our road map begins with a eye on the financials. jpmorgan, wells and citi all reporting better earnings than expected. plus, the new centrist president and about face from president trump on several key economic policy positions. and apple's big health bet. sources tell cnbc that the company has a secret group developing a new glucose monitor to treat diabetes. but first up, earnings season is here with a bang. jpmorgan and wells fargo and citi group out this morning. citi earnings and revenue came in well above the estimates. mortgages though remain a trouble spot. pretty good in trading. equity -- >> yeah. very quickly, jpmorgan is pretty much -- what i'm going to say pretty much perfect. but the stock was up very big. people are looking at the

futures versus the stocks and just hit them down. that is three basis points better. i love the delinquencies here. they're, very very good and commercial real estate is really extraordinary. they had more deposits and more customers so you can look at the numbers and say how much did they really increase versus the number of people that they added. but holy cow, do they have a lot of assets under management. now citi, i thought it was stellar. nobody cares. the problem here which is city, $1.35 but the actual number is $1.38. the mortgages they're not a player. like that mexico is up 4.4. they can buy back 9% and still do well because the tangible book value is 65 bucks. i have to tell you wells fargo i know it's hated. the only number i care, customer loyalty has gotten better versus the previous month. you know, the noninterest income is very good. but look, what can i say? wells is hated so this was --

you know, fine. >> wow. some mornings it's just really nice to have you here -- >> i got up at 3:15. >> to spend so much time on those things. the jpmorgan at 11% -- >> i know. it's a fortuitous bounce. >> i know it's in here about a balance sheet. there was a time when none of us thought that we would regularly see double digit return on equity again from the big banks. that's clearly no longer the case. as you say, return of capital, very significant. citi. but you know as for the stocks themselves 223, on the ten year. >> but you -- >> you'll be fighting from. >> 223 does not matter that much for citi. >> maybe not for citi, but for the group it does. >> i think it -- i think what really matters is that if it's 223 and the fed doesn't raise again, i think people are thinking that the economy is too weak for the raise, people say

wait a second. not much upside here. i would say citi is selling at nine times earnings. they can buy back -- if they can buy back 9% of the company, remember they're allowed to. and the fed has no problem with that. >> would you have expected a bigger bump after how they have already been repriced? the financials going negative for the year yesterday. >> no, because the market hates it. you put up good charts today about -- on twitter about semi-conductors and banks and how they have become pariahs. semis overnight for a lot of different reasons. having to do with apple. >> goldman downgrades. >> yeah. but the banks have gotten out of favor and i think a lot of reasons is we do not have great strength in the economy. even though you have to admit jpmorgan loans were very strong. >> they were. i'm reading it back and forth, i wanted to get through with glenn shore and jamie dimon in the call. >> i lost it on the prompter,

but dimon talked about the economy being healthy overall. you mentioned wells, consumer satisfaction, new customer checking accounts in february down 43%. >> well, i mean, you know, the fact is that they had some new ones. i mean, i hate to be that cynical. but they did have some new ones. and i look at the core loan growth. actually, i see -- i think things are a little better than i thought there because i think that in -- they have such great noninterest income. then it's margin -- it wasn't that good. checking up on a point -- mortgage -- it's down 49%. that was very bad. then you have a ten year problem. but in the end, wells fargo has come down a great deal. it's a true pariah. but my charitable trust owns wells and citi. citi is cheap and wells is no-man's-la no-man's-land. until people forget. >> right. >> it's the chipotle of banks. >> the same kind of time line as chipotle? >> 18 months. >> 18 months regardless of whether you're poisoning your

customers or committing fraud, about the same. >> i think they're the same, unfortunately. can we go over for a second that credit cards very good for citi. but costco doesn't kick in until the second half. look, these companies are just dirt cheap. but this market doesn't like dirt cheap right now. look, the market is completely confused because trump -- everything that trump said was -- to the journal was very different from what we thought. so we're all kind of little confused about what he believes in and the idea that once again we're back with china to try to solve north korea. that's a democratic problem. we're pro nato. we were like anti-nato. relevance -- not a currency manipulator, but it's down with mcer inmy, he like -- yellen is no longer toast. she's now i guess like, i don't know -- >> not toast. she's fairly -- >> she's stroman --

>> she's popped out of the toaster. >> we're confused because the man is a little unexpected, unpredictable. >> the president did talk to the journal, 70 minute interview. he says quote our dollar is getting too strong and that's partially my part because people have confidence in me but that's hurting -- that will hurt ultimately. he said he would not label china as a currency manipulator, he respects yellen, she's not toast and he prefers a low interest environment. jeff immelt applauded the president -- >> he as a globalist. i love the fact that the reason we like the border tax, we're supposed to like border tax which is a higher dollar. obviously, you have the koch brothers against the border tax and then you have trump against the border tax. >> well, trump is against -- it's not clear what he's against or what he's for -- when it comes to the tax -- tax at the border because he's talked about a reciprocal tax. he would like the power from

conversations that people have had with him about it to be able to tax -- to use that tariff when necessary. >> right. that's different. >> that is different. although you could lump it in sort of with the idea of the reciprocal tax of some kind. i think the largest issue is what we found out yesterday, and what seems to be now the new rallying cry, health care again before tax reform. >> look -- >> so everybody's calendar is getting lengthened here in terms of when we'll see the tax reform -- >> there's the struggle of the trump trade. >> and even if question get into -- if we get into the reform. reform with the huge changes to the tax code, whether it be the deductibility of the interest, state and local taxes no longer being written off. and of course most importantly perhaps is the revenue raising part of it. whether it would have a component that taxes incoming goods at the border. >> the founding fathers they put that checks and balances thing

in you can't get it done. >> there's immelt's tweet. and kudlow people lose confidence, process broken. he wanted the white house to tackle taxes first and now the added wrinkle if he would use payments to insurers over democrats to get them to agree on the reformed health care bill. >> you need a rocket scientist to do this stuff. the idea -- look at the steel stocks yesterday, and the aluminum stocks. if anybody thought this president was not going to call china a currency manipulator, and two, we have a lot of soldiers in south korea, we have to defend, south korea against the north korea. this is the bill clinton rap. this is every democrat president's rap and now we're back to the rap. but this guy is a republican. he was nominally a republican. >> started out -- i mean, listen -- >> korea sells us millions of

cars and what do we sell, five cars? >> it depends on the issue, far right or central. >> like boeing, jim mcnearney goes down there. this was always ge and boeing's thing, the xm bank. subsidy for those -- >> so the larger if you're running a large business and you're making decisions and you're making long term strategic decisions or you want to, does this kind of environment where you're getting mixed messages to say the least make you step away a little bit? are we going to hear that dreaded word uncertainty start to surface again? >> yeah, if you're alcoa, you thought the companies would benefit, nucor, you're thinking this is the traditional globalist president, go back to procter & gamble we want to sell a lot of prell, right? back in if sell prell to china mode. >> nothing wrong with selling prell in china.

>> no, but we're supposed -- >>er otide. -- or tide. >> we're supposed to be tough on china. we scratch their back -- >> it's not bad thing. global trade, all the tariff worries. >> long before trump i thought -- i felt that the chinese were unfair traders and i don't want to see him back slide. long before trump i have always felt that there's no fairness between south korea -- >> you have been a big critic of nafta. >> nafta? >> and that also -- >> he's wavering on nafta. 4-1 when they put in nafta and now it's 18-1. they have the big currency advantage. no pollution controls. they have no health care benefits. and how do we compete? but i guess that's okay too. >> well, i thought there were supposed to be parts of nafta that actually addressed some of the things. >> just the currencies, when we passed -- i'm sorry to be such a fair trader. i just thought that the

president there was kind of simpatico to that view. america, what third? seventh? where's america on the list now? >> you're -- more than navarro. >> i know. >> lyndon johnson democrat, ex-war, pro labor. all right? >> i hear you. no globalist that's for sure. >> lbj all the way. except for the war. >> a lot to get to this morning. you have to hear about the new note out of rbc saying that apple could or should buy disney and how much they'd pay for that. also ahead, former american airlines ceo don carty, we'll talk more about united as we expect to hear from the passenger's attorney. you probably know that the dow and s&p closed below the 50 day moving average for the first time since election day.

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interesting new note out of rbc which goes through the possible apple/disney tie-up. an acquisition can allow apple to gain scale in media content and they assume that apple would pay about a 40% premium to

disney's current price yielding a theoretical number of 157, a share they say you could spend $200 billion in cash. do debt for the rest. >> well, i think the crucial line in that research now they have a piece out by apple and on disney, it's called cash of the titans by the way. part one and two. we see a confluence of events that make an acquisition of disney greater than zero. >> the odds. >> wow. okay. >> greater than zero. >> about one. >> yeah. yeah. let's go over to london right now and bet on the whole new world. they use a lot of great disney lines. limitless opportunities. my favorite was hakuna matata firing on all cylinders. >> there's no doubt there's a strategic rationale for the idea -- >> smoke/fire. >> for the idea. i think there are plenty of bankers in fact i know there are plenty of bankers who tried to encourage the idea that disney would benefit from doing this deal. >> do you think the bankers -- >> excuse me, apple would

benefit from from doing the deal and disney would be wise from looking at a sale. we deal with iger, it would give apple this huge heft of course in content beefing up the businesses you talked so often about. >> but the service revenue -- >> it is going to happen or that it has any real chance is a far cry from the hopes and the dreams of the bankers who might be dreaming about it or an analyst who might be wanting to write about it because we'll sit here and talk about it. why not, that's fun. >> this was written for "squawk on the street." "squawk on the street" says -- it was like asterisk. >> you remember malone a few months back, i think in november when i sat down with him. >> yeah. >> he initially floated this idea. he said espn would go the distributor, namely a cable company and then the rest of disney made sense for apple. take a listen. >> somebody went after disney, my guess is apple would have to

finally make a decision. >> yeah. >> because they're very close with, you know, disney. >> iger is on the board of apple. >> correct. if i had to guess, what you will see is a split of disney with espn spun off and probably espn could be owned and protected by a distributor in the u.s. and apple would be more interested -- they would have a lot more in common in terms of international branding because fundamentally tim cook's a global player. >> all right. so no stranger are we to this idea. fun to talk about and -- >> isn't it? >> i have a feeling that would be about it. would they ever do a large deal at apple? something bigger than beats -- >> they're like, yeah, sure. but better than -- this is the worst scale than netflix, youtube. 29% of the company would be services. i can tell you this is a huge amount of fun and i think that

we -- you know what this was done, this was done to stop the ual -- >> the story is not over. >> part of the argument they used tim cook's words in which he said that the deal size is not an inhibitor. m&a. >> we watch for his comments on large acquisitions because he's asked about it and he does answer. he typically says the same thing, but the words are watched very closely. >> right. >> because there is a hope somehow that apple will pull the trigger on something enormous. whether it's a netflix or whether -- >> i think the scoop about coming in on blood sugars is more relevant. >> they do see the deal accretive by 15 or 20% out of the box. they can take 20 back in repatriation. they could pay for this like that. >> by the way, on the glucose sensors, a report which is online, we'll talk to chrissy farr maybe later this morning. something that jobs originally envisioned.

>> yeah. this is the dexcom killer so to speak. dexcom you had to insert something into the body. this is the one, no -- nothing in the body. now, remember the holy grail is really blood pressure which they can't seem to get. too many false positives but this would be very good i admit. disney by the way, you could have the glucose monitor while you're in the theme park. i mean, the synergy is here. not just hakuna matata. i mean it's finding nemo, i don't know. dory. what else? jungle cruise. you know, the e rides. remember the e rides? >> i'll give you time to come up with a lot more. come up with a lot more -- >> i mean, on the same -- on both boards there. "star wars"? can you imagine apple streaming "star wars" and four marvels. next year, vr -- artificial

intelligence machine learning. >> keep saying words. machine learning, ai, something. >> this is it. >> you didn't mention -- keep saying those things. >> yeah. cash is -- >> yeah. >> it's just painful. it was written for us. we took the bait, didn't we? >> it worked. it worked. >> the hook -- they got me on the line. can you cut the line, i want to go free. >> we'll get cramer's "mad dash." count down to the opening bell in a few moments. look at the futures. wells looks to open down about 2%. but jpmorgan is going to open up half a percent. back in a minute. so what else is new? how's your mother?

umm..she's doing good. she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird.

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all right. "mad dash" for a thursday. little more than six minutes before the opening bell. we haven't talked about amazon yet so we're required to do so. >> yes. yes, we are. that's wild. you killed me on that. >> i did. sorry. >> you did. i think barclay's put out a cogent note. when the company does report it will be a mixed bag. they do think that if the guidance in line versus weaker, this is important because the quarter shouldn't matter that much. in other words, like remember, they have a grand vision. and what happened last time is when the quarter wasn't so gr t great, you got -- you can't even see this anymore but it went down to 804. people said i have to get out of it, we have some downgrades. all they're doing is when they prep you, it's not what you're looking for. it's a longer term secular theme. >> there's a drum beat, that the quarter may not beat expectations and i said, so what? >> right. you see what happens when it reports, people panic. what you have to do is you have

to buy the panic. >> the panic ensues after the close or a day's worth of panic? >> usually a day's worth of panic because someone -- someone who didn't watch "squawk on the street," then chooses to do the wrong thing. by the way, disney and apple, david, if they got together, they would have no impact on amazon. >> it wouldn't? >> no. i just feel we should mention that. amazon is its own story. not bound by earnings. it is bound by vision. and bezos' vision. what matters is people should not flip out when they don't report the number that the street does because they don't care about the street. they have grander ambitions. >> yes, they do. they have and they have been rewarded for them. >> as buzz light year would say. right? >> read carefully -- >> people will say stupid things it will go down. people will say it's the end of amazon and then you have to go buy it. >> all right. we'll talk about what else is

being bought and sold when we get the opening bell about four minutes from now.

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busy morning obviously as the banks essentially give us liftoff on earnings. our friend doug kass calls it judgment day. >> he hates the banks, not a new view. my view of the banks they have come down a great deal. when you look at citi, it can buy back 9 -- i mean, you're buying citi, you're buying back citi. wells fargo, much do about nothing. when warren buffett had a sale. i went over 10% once, you have to sell, boom. sold. i didn't want to get in trouble. >> no. i'm sure buffett keeps his stake well under 10%. we'll talk about implications for autos as the lending standards are getting tighter. >> wells fargo obviously cutting that. i mean citi on the mortgages

they have a 720 fico. not like people are going nuts. but the narrative is that these banks are all bad. and that's -- you can't change the narrative overnight. i mean wells fargo is down -- [ indiscernible ]. [ opening bell ] >> there's the opening bell. the ceo of yext will join us on "squawk alley." and then on the nasdaq davis advisers. one of the busiest weeks -- >> seven deals as bob pisani has chronicled so well. yext realtime management, and look, this is the end of the "q" here. i want to caution people that when you have this many deals, you really have to bear down really you have to look at wh what -- what's your merchandise,

what to buy. >> wells is the second biggest loser. pnc is the single biggest gainer. >> yeah. i mean, everybody loves pnc. everyone is scrutinizing it. wells is so overscrutinized it's so crayzy. my charitable trust has owned it forever. and people again, you want to sell wells fargo. of course you're going to 49. then you have to buy it back. fine. yes. yes. is that mets, mets, mets because of last night? >> it might as well be, but it's not. >> phillies were eeliminated last night. >> season over for you? move on to football. you have been itching to get it back to football. >> i get to announce the fourth draft pick for the eagles on saturday. >> that's true? >> yeah. mr. lurie and howie rosen, thank you very much. >> very nice. i want to talk metals with you. because iron ore is down 17%. >> unbelievable.

>> copper yesterday -- >> the chinese are full of copper support. and then with president trump basically not talking tough about maybe extending some of the steel tariffs, remember, obama thought that china was very unfair on steel. if you -- if you cut back steel production, you obviously don't need as much iron. iron is backed up all over the world right now. so i've got to tell you, i worry about that sector because that sector was the trump trade. we're running out of the trump trade. we have the pipeline because that's deregulation. the trump trade has turned into gold. >> right. and owning the treasury bond now apparently. >> trump trade. >> suddenly. was the other way. now it's owning it. >> if you keep talking like that you'll be in the ad? >> what? >> trump trade ads. >> oh, no, i never thought of that. >> steel is not a trump trade anymore.

trump trade treasuries and gold. >> you have the buttons on the show, on "mad money." >> trump stock. and then trump free zone. it's procter & gamble. >> right after the election as we know, many people thought that trump trade included the banks. >> right. >> since the beginning of this year, they have not performed particularly well. >> no. >> and jpmorgan is down again. even though that was a strong quarter. all right 11%. >> well, the charts are bad. >> performance of fixed income currency and commodities. asked a few questions on the call of course. jamie dimon seemed kind of to take a little bit of umbrage at glenn shore's question. >> glenn shore -- >> about the exposure to the declining retail environment and asked a few questions and here's what dimon's response was. >> you're way out of line. i mean, the retail exposure we're very careful. retail business has always been

violent and volatile. you can look back throughout our history and half of them are gone after ten years. that was a normal course. we're usually senior. we're careful like that. then go to real estate, most of the real estate has nothing to do with retail. so we have -- we have some shopping centers and malls and stuff like that. but those are generally high end -- and not relying on single retailers, et cetera. >> don't worry about the loan portfolio in general. and in particular in terms of exposure. to what is a volatile and declining area namely retail bricks and mortar. dimon said, come on. >> jamie can't go out there and start buying stuff at sears. >> no. but you know what? when you look at the stocks, jim, they haven't outperformed the s&p for i don't know how long. >> they're terrible. citi is trading at nine times earnings but nobody cares about that. they want pinnacle foods with 0% growth because pinnacle foods can use self-help. bird's-eye.

bird's-eye. trump trade. bird's-eye. can you imagine what's happened here? >> from steel and the dollar to frozen food. >> china is a natural stock and now pinnacle foods is loved. because treehouse, because they make organic. i had international flavors and fragrance on last night. >> this is all good for the bunker. >> canned foods. >> you are so right. but hormel has been trading badly because people thought we'd get out of the bunker. >> now that's the trump trade. >> if we solve the north korea problem, it all goes down. >> that is true. >> if you are more interested in terms of leadership in seeing the stocks, kbe, maybe it's something in tech what needs to -- >> we need to see -- we needed to -- okay. the key to the market is the company broadcom which was down eight points in the idea they might be buying some of toshiba.

i think they'd only buy jpmorgan and broadcom being down 8 to me said look out. we have applied opto which showed you the preannouncement. preannouncement and that's cable, broadband, fiber, the home internet data center. put up qualcomm. qualcomm is job. ever study job in the bible? >> i'm somewhat familiar with the story. >> job knocked the labor report, but job the actual biblical figure. >> right. >> you're struggling. >> what's the point, struggling on all fronts? >> do they have a friend? they're the most friendless company i have ever seen. who is qualcomm's friends? >> i'm thinking through that. don't know. >> come up with something? >> i'm sure i'll come up with some. >> thank you. take your time. this is a market where the semis must rally. it's got to be not just in

intel. i did last night a report about ymd and nvidia is going down. it switched to skyworks and apple is going to cut off skyworks which they are not. apple's so busy consumed by what? apple's consumed by what? >> apple is consumed by what? >> kicking the tires on disney! >> oh -- >> geez. >> disney is up. one of -- it's a tenth biggest gainer on the s&p. >> don't even jest about that. people -- >> empires strikes back? >> it's the biggest dow component. >> oh, geez, oh, man, pluto. i got my picture once on pluto. >> really, of all the characters? >> he put his arm around my sister and it was unseemly. >> one debate on the banks to the degree we get continued regulatory relief, does that result in earnings right away?

kevin o'leary said there was a cost associated with unwinding all they have already done in compliance. >> i love kevin o'leary. daniel tra rule low is out. he was like a czar, not like a drug czar but put your feet up on the desk of major bankers and he said, i will do what i want and trujillo is gone and that's great for bankers. i think the trump trade on deregulation will be back in a couple of days. jpmorgan was a great quarter. i mean, what are we going to do? putting the money under the -- the auto delinquencies is down, credit loss is down. oil and gas doesn't look bad. i mean, what do you want, market? >> well, the market wants -- this is -- >> to me it's like charlie the tuna. we don't want tuna with good taste, we want tuna that tastes good. the tuna that tastes good is the

ten year. >> sorry charlie. >> sorry charlie, on the ten year. >> why do we have to talk about, besides united airlines? what do they like? makeup. they like makeup. >> we haven't shown the video today. >> no. >> we haven't. >> selfie generation. >> we're going to see it though when dao's lawyer makes a statement. >> okay, the millennial -- they don't want to see any chemicals from the labels. the millennials hate deodorant. >> they do? >> unless it's pure. >> really? >> like you have been around a millennial to know that. fortunately they like fragrances. >> why would you -- >> just pointing it out. >> he is really so out to lunch. i mean, i bet he couldn't name five -- couldn't name one commercial i know that. name a commercial. name a product. just name a product. any product. name something. >> don't challenge him like that. >> how much is a gallon of milk?

how much is a gallon of milk? >> if you're buying the organic stuff -- >> how much is 2%? >> 6. >> what? >> 6 bucks! >> that's impossible. >> for half a gallon. >> we're going to get to bob pisani, the dow is down 22 on a crowded day on the floor, bob. good morning. >> yes. three ipos here. carl, i'm disappointed at the open because we have the mentality sell the reflation trade. this has been going on all week. look at sectors, banks are down. i hope you listen to jimmy, great numbers from the banks. but they're still down as a group. industrials, materials. the reflation trade. energy, disappointing. all week for oil and oil stocks have gone absolutely nowhere. no rally at all. the only thing that keeps moving every single day -- there it is. gold on the upside. you heard a lot about bank earnings. pnc is one of the big super regional banks.

you care about a few things. you care about the credit conditions, earnings beat average loan growth was up 1%. it's slowing but better than people thought it was. credit trends were in line. net interest margins were better than forecast. the numbers that were reported are better than people were anticipating. jpmorgan's conference call just finished up here. we'll give you more later on. credit is still benign. mary ann lake said the credit card losses very, very low level. they asked dimon repeatedly how's the loan growth, it's slow, but okay. i'm condensing the comments here. on the economy, dimon right at the end the american economy is getting stronger. by and large, a fairly upbeat conference call. what are the banks doing here? not that much. pnc and jpmorgan opened on the upside. wells fargo beat revenues they were on the light side. but we have very special issues with wells fargo. modest moves to the upside.

pnc is where you want to watch the regional banks. my attitude is if the trends hold up, the banks may be oversold right now. let's move on. where are we? where are we at in the stock market right know? earnings very early, but the signs are very promising. geopolitical risks obviously have moved to the forefront as a risk that wasn't there two weeks ago. of course on the north korean issues. everyone is debating the trump comments about he wants low rates. in the past we love low rates but people would like the rates to slowly and predictably rise. i'm not sure this is a head wind or not, but it is being debated. meantime, ipos, three down here. one over at the nasdaq today. we're waiting for the -- the coals to open. don't have an indication yet. but the important thing is a coal company believe it or not, becoming metallurgical coal, 16 -- $19. that's at the high end of the

price talk. we'll be speaking with the ceo of yext, they do digital management in the cloud, that priced above expectations. price talk 8 to $10. a couple of others trading out there. one on the nasdaq. a cancer ipo. toke ageneral, that -- pricing at $10, that's the lower end. we have a bank company. we're waiting for that. cadence bank, houston based bank. that's priced at the middle of the range at $20. yext, 11 to $12, pricing at $11. busy week. this is six ipos that we have had this week. this is a tie for the because quest -- busiest week of the year. right now the dow is down 22 points. back to you. >> all right. bob, i'll take it. send it over to rick santelli at the c & e group in chicago. >> wow, what a difference 24 hours makes.

you know, we have talked many times it's always important to know what you're trading, how much of the current administration figured into the big rally post election verb us is the administration that didn't get in. one thing i can tell you for sure, yesterday was this administration's trade. we have done some damage. we violated a very significant level, some would ground it to 2.25. i keep it at 2.27. let's go to the scene of the crime. to december, early december 2015 so you can get some context on where we closed which was 227. how that figures in and keep in mind, it isn't just us. although there's a scaling issue. but patterns are similar. let's look at a two day of boons. there 227 was 20 basis points. we violated it, now let's open it up to mid december of last year. you can see how significant that level is. of course now they are trading at the low yields of the year. dollar index, you know, is there

really a difference when you talk about china and say they're manipulator versus his comments about massaging the dollar. how much daylight is between those semantics? that's an important question. remember, these guys are free marketers, whether it's janet yellen or currencies it's about where people want rates. it's about where the market wants rates, isn't it? fed's supposed to nudge. they're not supposed to be the gorilla in any room really. if we talk about just on the face of it, the common sense or lack therein of a currency, and its equity markets just to pick something at random, let's look at a long term chart of the dow on top of the dollar index since that fatal bottom. the hanes bottom. i don't know. they swerve a little bit and the dollar looks like it's aiming north in the equity markets,

tighten it up around the beginning of 2014. a better way to look at currencies versus growth or stock markets is to consider the currency situation with japan and the amount of success they have had in waging a weak currency battle. jim, carl and david, back to you. >> thank you rick santelli. when we come back the united story continues. former american ceo ron carty will join us. and a pair of ipos for the capital markets. the dow down 24. led by jpm. back after a break. think again.

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start trading today at etrade.com we're awaiting a news conference from the lawyer and family member of that united passenger. in the meantime, number of airlines taking the opportunity to tweak united. here's an ad from emirates with the slogan fly the friendly skies. this time for real. qatar airways as well. an update for the iphone app

says i doesn't support drag and drop. we take care of customers as we unite them with their destinations. stock continues to be buffeted around the $70 level. >> yeah. the rest of the group is really flying here. you know, i just think that that one is not going to away that fast because it is replayed, replayed. >> you like to talk about 18 month patterns of forgiveness. >> yeah. but look, obviously these are all duopolies, but it will be 18 months before that one is completely out of our minds. but at the same time, have you tried -- i mean, you can't -- i mean, i'm trying to fly -- i tried to like think about not flying them on a particular flight that i'm taking this weekend. no. but there's no hope. there's no competition. there's nothing. >> but you talked many times about the justice department being the best friend the airlines ever had. >> they have been unbelievable. the justice department, frankly makes it -- so it's ludicrous

and futile not to take them. >> obviously united one of the big beneficiaries. united and continental. >> try to fly out newark and use somebody else. go to san miguel. no, you have to use continental for them. >> when i covered northwest, it's cold and dark but it's ours referring to their route network because there was so little competition in the cities they flew to. >> well, it's -- you can rhyme it all you want, but i think in the end try switching. i mean some people are saying i can get a cheap flight. >> yeah. we'll get "stop trading" with jim in a moment. don't go away. ♪ predictable. the comfort in knowing where things are headed. because as we live longer...

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so you'rhow nice.a party? i'll be right there. and the butchery begins.

what am i gonna wear? this party is super fancy. let's go. i'm ready. are you my uber? [ horn honks ] hold on. don't wait for watchathon week to return. [ doorbell rings ] who's that? show me netflix. sign up for netflix on x1 today and keep watching all year long. time for cramer and "stop trading." >> now that the bank sector has come back to its senses, obviously with jpmorgan doing the right thing and citi doing the right thing and wells fargo the washed out quarter let's turn our attention to facebook. 1.2 billion now messenger -- can you imagine that product? that was used to be a big laugh. and piper, a lot of surveys. facebook's winning the war against snap. price target goes from 150 to

160. talking about the new instagram and all the things that zuckerberg tried to destroy snap. but it's not as good as we thought. nobody scrutinizes pnc, they get the pass at all all times. total pass. >> smart timing. snap earnings may 10th. sheryl sandberg on the cover of "time." talking about grief. >> i think snap, remember, they have all the ad buys. consumer product companies are still testing snap. but, you know, facebook is -- zuckerberg -- he's a titan. you know, he likes to compete more than anybody and he actually doesn't look like it. he kind of fools people when he goes to kauai. he does the cool stuff. no. no. he's -- he wants to monopolize. snap would do better if they called the justice department. >> they have a lot on their plate as it is. what's on "mad" tonight?

>> america 7th. just kidding. coupa, they do savings, how to do savings if you go to the cloud, they did a gigantic secondary and the stock moved up big. and then bryan jordan, find out how the regional banks are doing, other than pnc which is sainted. my father banked at pnc all his life. there. okay? to say. >> i mean, i have to take my business to a -- because of the way that jpmorgan didn't talk about the sapphire card like i thought they would. >> "mad money" tonight, 6:00 p.m. eastern time. when we come back, on the other side of this break, breaking data on consumer sentiment. then we'll have some fun with this apple/disney note. one of the authors of that will join us in a few moments. jpmorgan shaved the losses to two.

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♪ good thursday morning. welcome back to "squawk on the street." i'll carl quintanilla, sara

eisen is back at post 9. we are grateful for that. and david faber as well. markets acting interestingly after the bank earnings launched earnings season. vix and gold are off the high. and the ten year is off the lows and the equities. >> the road map begins with the banks. jpmorgan, citi, wells fargo all out. and united's pr nightmare continues. the passenger dragged from the plane hiring top aviation attorneys. they're set to make a statement. don carty will be with us. is disney really a takeover target for apple? we'll be joined by the analysts discussing the possibilities of that. busy day for data. time for rick santelli. >> well, this is the april preliminary read on the university of michigan and it's fascinating. 98 -- 98, we're expecting the

number in the 96 handle that follows the number, a whisker under 97 at 96.9. the second best read of the year. january was the best at 98.5. but remember, folks, this one will get tossed in a couple of weeks for the final read. let's go through all of the rest of it. if we look at the one year inflation expectations, so one year out. that's 2.5 unchanged from our last look. if we kind of go five to ten years out. 2.4 also same as the last look. markets don't seem to be having a big response. remember, confidence was king for a while in terms of the biggest data points with regard to the change in power in november after the election. sara, back to you. >> the so-called soft data turning up. rick, thank you. the big banks kicked off earnings season this morning and wilfred frost, what are the takes aways? >> well, jpmorgan picked up more

in march than expected and thus beat guidance given in february. they did see the credit costs increase but jamie dimon was keen to press that absolute levels are low on any historic time line and it wasn't because of the quality drtdation but higher volumes of business. across all the banks the credit environment seems benign. citi delivered a beat on the eps line. trading was strong, unlike jpmorgan there was a contraction in the net interest market and hence shares are underperforming. wells fargo, the most disappointing. it was well above target of a 55 to 59%. the investors made a preoccupation with the sales scandal. the bottom line they couldn't make up for soft retail performance with a stronger investment banking performance which is what citi and jpmorgan did. analysts have asked management on the calls about possible

reintroduction of glass/steagall. the cfo mary ann lake said it was contrary to other words coming out of the administration and it was questioned if it would be consistent with driving growth. as for short term determines jamie dimon was not concerned about president trump's comments about the dollar this week. nor about the upcoming french election. but did reiterate his past point that for -- even if the french election aside, if a country did leave the single currency it would be a disaster. not linking the two though. >> what did he say about the u.s. economy? he's usually pretty rosy and optimistic. did you get that same level of optimism from dimon? >> yes, i think overall the same level of optimism. he was fielding questions about the credit cards, and the one clear take away in terms of encouragement in the face of slightly lower corporate loan growth was that their debt

issuance to companies was very high. so that again highlights the difference with wells fargo who don't have that part of the business they can off set lower corporate loan growth with. and the jpmorgan cfo said you shouldn't draw that they're not optimisting, they are, but it showed up with high bond issuance in this quarter than in corporate loan growth. >> got it. thank you. for more on this morning's bank earnings which ones you should own, let's bring in george cassidy, banking analyst. and what signal did you get and are you surprised to see the shares soft price performance here amid some pretty good news. >> yes, no, in fact you're right. the opening for the bank stocks was very soft. they have turned mostly green and i think investors are recognizing one of big positives in the quarter was the net interest margin was higher for some of the banks that reported today. like a jpmorgan.

and a pnc. this shows that the fed funds rate increase in december performed what we thought what it was going to do which is increase revenues. as you guys have heard, the capitals market business was very strong for citi and jpmorgan and we expect that to be true for the other investment banks who report later in the month. >> when it comes to the net interest margin numbers, does it tell you anything about the way that the banks are trading almost in lock step with treasury yields lower. versus what we saw right after the election. >> i think the steepness of the curve as well as the rise in the short end of the curve is very important. and you're absolutely right. that's how they traded bank of america, it's traded up the most because they will benefit the most from the rise in short term rates. when you look at jpmorgan's numbers today and pnc showing very good net interest margin growth we should expect that for

bank of america when they report next week. >> hey, gerard, let's tackle confidence -- i mean retail confidence at wells. we see sharp drop-off in february year on year in terms of customers creating new checking accounts but the bank argues they're making progress in rebuilding trust and some of the metrics bear that out. what's your view? >> i think you're right, it takes time. this is not a problem that will be fixed overnight. the company is working diligently to fix this issue that came up last fall. that being said, it's still as you saw the efficiency ratio that was mentioned a moment ago the expenses to solve these problems are high and that's affecting their profitability. wells has -- still a road to go down. we expect them to succeed but it's just going to take time. >> so are you looking at regionals over the big caps or looking at investment banks over the commercials? >> i think what we're focused on

is banks are the most asset sensitive. bank of america is one of the big money center banks who will benefit and then comerca a regional bank will benefit from rising rates. so the banks that will see better margins because of rising short term rates and we expect rates to be increased again as you know the fed has pointed out they'll do it at least two more times this year. probably june and december. that's going to benefit those banks that are asset sensitive. >> we are seeing that recovery in some of the shares. financials now the best performing group up half a percent. we'll leave it there on the banks. >> thank you. speaking of the banks, we'll talk to former s.e.c. commissioner paul atkins later on. get his take on dodd-frank, yellen, deregulation. a busy day for ipos here. then we'll talk to don carty formerly of american about the united passenger as his attorney

is set to make a statement. back in a moment. customer traffic? can we push the offer online? brian, i just had a quick question. brian? brian... legacy technology can handcuff any company. but "yes" is here. you're saying the new app will go live monday?! yeah. with help from hpe, we can finally work the way we want to. with the right mix of hybrid it, everything computes. the power of the nasdaq market. the power of 100 of the world's top companies. the power of an etf. the power of qqq. the thinking we put in, clients get out. power your client's portfolio at powershares.com/qqq. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc.

so you'rhow nice.a party?ation. read it carefully. i'll be right there. and the butchery begins. what am i gonna wear? this party is super fancy. let's go. i'm ready. are you my uber? [ horn honks ] hold on. don't wait for watchathon week to return. [ doorbell rings ] who's that? show me netflix. sign up for netflix on x1 today and keep watching all year long. keeping our eye on cadence. cade, a banking concern, up 10%. back here at the exchange at post 8 we have yext with the opening trade about up about 28%. in one is one of the busiest weeks this year for ipos. meanwhile attorneys

representing the passenger who was dragged from the flight is getting ready to hold a news conference in the next hour. phil lebeau has more on what we can expect. >> carl, here in an hour we'll hear from the two attorneys representing dr. david dao. this is the reason we're here today and the attorneys are representing him. we'll be hearing from the daughter of dr. david dao. we'll get some update as to whether or not he's still in the hospital, his thoughts on what's happened over the last week. remember, this is all about them preparing a possible legal case against united airlines and to that end, they filed a motion yesterday in court to preserve all legal documents, passenger manife manifests, video, cockpit voice recordings, anything to do with what happened when he was forcibly removed. they have filed that against united and the city of chicago. remember the three officers who removed him from the plane, those were aviation police officers employed by the city of

chicago. and as you take a look at shares of united this press conference will begin in about an hour. we'll let you know what the attorneys have to say and i'm interested to hear what dr. dao's daughter has to say about, "a," his condition right now. and what his thoughts are after what's been a very wild week. guys, back to you. >> all right, phil, thanks for that. we'll come back to you later on. joining us this morning former american airlines ceo don carty, former chairman of virgin america. good morning. >> good morning, carl, thanks for having me. >> we talked to crandall earlier in the morning. he -- i was interested he said that the overbooking policy as it's written right now for the industry maybe could be looked at again because there's fewer numbers of no shows than back in the old days. what do you think? >> well, i think it could. i think aef air -- i think every airline needs to be thoughtful about overbooking and an airline never wants a situation that

developed sunday night. an involuntary overbooking is a terrible thing. when we overbook as airlines it's incumbent on us to convince the passengers to get off the airplane. >> can you envision a model where you do empower gate agents to offer incentives to make these situations not happen and yet, keep your margins within some reasonable guidelines? >> absolutely. that's our challenge and as crandall outlined every airline needs to be really thoughtful about how far they overbook. but having overbooked, we need to empower our front line people to convince individuals to get off the airplane when there aren't enough no shows and we end up overbooked. that's simply good common sense. >> don, just to be clear here, on this specific case, on united, do you see this as a communication failure or an operational failure? >> well, i don't know enough

specifically about what united's policies are but i think mr. munoz acknowledged that there was a policy failure. and i took that to mean that the company did not provide enough flexibility to their agents. i think another policy failure was the thought to use police authorities to remove people from the airplanes. those seem to me to be just bad policy. on behalf of united. i am sure today -- not just united, but every airline in the industry is busy looking at their policies. >> well, he also said right after this that it was -- it was an apology to reaccommodate the passenger which isn't what happened there. federal lawmakers are pushing for hearings, they want the airline to explain what went wrong. can you see any substantive action from congress on this? >> i think congress shining a light on this is not a bad thing. i do think, however, that what

tends to happen in washington today, we have some kind of incident and washington is reactive. and we end up with either a law or a regulation that may or may not be required. i can tell you, you don't need to tell united airlines they never want this to happen again. they're taking care of that. i think the market is a great regulator in itself. and i think it -- as americans we ought to have more confidence that the market will cause us to do the right thing. in this instance as i said, i believe every airline right now is looking very, very carefully at how they handle these situations. >> it was amazing, don, as you know this industry has been through so much. and after really weathering storm after storm for years, they finally found some ways to go vertical on energy. they have managed their capacity in ways that keep load factor pretty consistent. you've got guys long term skeptics like buffett finally

interested in the sector again and yet we're carrying around the phones and that throws a wrinkle into a logistical nightmare. >> i think every consumer business has to face the technology. we are highly visible. our service is highly visible. how we treat our customers is highly visible. to me that's a great regulator right there. >> do regulators need to get involved in this particular situation or is this just a way for congress to score some easy points? >> i think it's a little more of the latter. i don't think it hurts at all for congress to shine the spotlight on this. my own thought, we don't need any more regulation here. that the airlines will certainly make sure these kinds of situations never happen again. >> so the company that you're a board member of, hawaiian air, has the best record when it comes to bumping people for overbooked flights. is it because you don't do as

many flights or are there best practices that you offer? >> i think it's a combination of things. i think hawaiian is a wonderful customer focused airline which is why i'm associated with them and hawaiian serves a lot of leisure destinations. you must be very careful in leisure destinations about assuming that people will volunteer to get off the airplane because frequently, people to and from leisure destinations are on a pretty rigorous time line. they have to be back for work that next day and they're not likely to volunteer. so i think leisure oriented airlines are a little more sensitive to this and more understanding of what happens when you get an overbooked situation. so i think hawaiian is just very careful about overbooking. >> yeah. they say everybody's got their price. >> that's right. >> the problem is sometimes it's higher than you think. >> i guarantee you -- i gain tee -- guarantee you there was a price for united that is less

than they'll pay for this deal. >> thank you, don. don carty. when we come back, is disney a possible takeover target for apple? we'll lay out the possibilities. everybody talking about this report today. both stocks on the move. we'll be right back. yes?

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rbc has a note this morning that speculates on a potential cash of the titans. the possibility of apple buying disney. joining us now the lead analyst behind, rbc capital's steven cahall. nice to have you here. >> thank you. >> it's not an idea that i have to say is completely foreign to those of us who speak to a lot of investment bankers who also like to dream big. but it's probably a dream that's never going to be realized. you know that, right? >> i think we do. i think we wrote this morning that the probability is now above 0%. but really the impetus for our note is i speak to institutional investors all the time. and it's increasingly coming up in those conversations. probably more than 50% of conversations we have include this thesis to some extent. so we feel like whether we think it's high probability or not

it's increasingly in the narrative. if it's in the narrative it's in the stock and we might as well put pen to paper and it's a fun concept to explore. frankly, we have talked about it in the past and in reference to the interview with john malone where he brought the idea up and people paid attention. you do talk about it being accretive, clearly apple has the ability to do it, but they have never embraced the big deal. the largest deal they have done is beats is something along those lines. what could force the change? >> to me what's changing dramatically in the whole space we are seeing the convergence, between internet, tech, distribution and content. we have seen it with at&t and time warner moving into the content business. we are seeing google now move into the live cable television streaming business. we are seeing amazon not only do what it does with original scripted content but moving into

thursday night football and of course, netflix is going down the content path aggressively for a long, long time. we think the convergent of services between cell phone, wireless, broadband creates impetus for them to vertically integrate. if apple wants to be a leader, disney is the biggest one out there. >> do you expect apple to have a different strategy when it comes to acquisitions, whether it's this or not? if we do see the repatriation, lower taxes. i mean, they haven't -- what was the last big deal, beats, $2 billion? >> yeah. i don't want to comment too much on apple because i cover the disney side, not the apple side. but for disney investors the thing they're looking for to make this narrative pick up a bit more steam is exactly what happens on corporate tax legislation and does it increase the likelihood of this because of the cash that could be coming back and used for the deal. >> people who have read your note like to draw lines. board members in common. investors in common.

and jobs' widow. how much of that matters? >> you know, certainly i think people like to talk about it. you know, if it came to that, it would seem to me likely that they'd probably need to be some legalese around where conflict of interests lie. i don't think that's probably a direct driver but it certainly adds to the investor interest in the theory. >> you really think iger -- i don't feel as though he's under any pressure to ever consider selling at this point. perhaps the board has succession issues. that pay be the -- that may be the case. he continues to stay on longer and longer and espn remains sort of this concern. but none of that's going to move them to actually consider ever putting this thing up for sale. >> no. i think that's right. i think this would be a friendly offer, not a proactive putting the company in play type of transaction. i don't think it's a coincidence that the investors i speak to have started to go down this path further after the extension

of bob iger's contract. the fact there isn't a new successor yet is feeding this fire yet. at 113, i don't think he's doing anything wrong. we have an outperform on disney that has nothing to do with the bid premium. >> well fun to talk about. i'm sure investors and bankers are happy to have it out there at least as an idea. thank you for joining us. >> thank you for having me. when we come back, former s.e.c. commissioner paul atkins is here with us after attending the president's ceo meeting on tuesday. we'll talk about the comments on the fed from president trump and more. stay with us. the dow is up about six points.

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i'm courtney reagan. here's your cnbc news update. secretary of state rex tillerson departing russia after tense meetings with vladimir putin and sergey lavrov. he reported no main progress to get the kremlin to back down from its support of the assad

regime in syria. german prosecutors issuing an arrest warrant for 26-year-old iraqi man who was detained in connection with the attack on the bus carrying one of germany's top soccer teams. a police van believed to be carrying the suspect arriving at the federal prosecutor's office. north korean leading king jong un attending a completion ceremony, he cut the ribbon on the stage amid applause from the stage. he left after 20 minutes without delivering a speech. and the latest samsung galaxy smartphone had the unveiling in south korea. the s8 is the first company phone launched since the fire prone 7. it goes on sale in south korea, the united states and canada next friday, april 21st. that's our cnbc news update. back over to you. >> all right, thank you very much, courtney. on to economic policy. there are signs that a more centrist president trump is

emerging. during a wide ranging interview with "wall street journal," the president reversed several common campaign themes. he is saying that china is not a currency manipulator, he's embracing the import and export bank. when asked if janet yellen's nomination was toast, he said, no, not toast. you know i like her, i respect her. earlier this week the president seemed to reverse course on the previous calls for a full repeal of dodd/frank. take a listen. >> we're really doing a major streamlining and replacing it with something else. but that will be the minimum. but we're doing a major elimination of the horrendous dodd/frank regulations. keeping some, obviously. but getting rid of many. and we're going to put many millions of people back to work. >> joining us now former s.e.c. commissioner paul atkins. he's now the ceo of potomac

global partners. nice to have you. what do you make of all the reversals or seeming reversals? >> yeah, i don't take them as reversals. i think it's -- you're dealing with a situation at hand, and i think he's consistent when he's been talking about dodd/frank for example the last clip that you just played there. dodd/frank is 2,319 pages long. that's just the statute and then tens of thousands of pages of regulations that the various regulatory bodies have put out and those that hold weight of regulation is the problem that i think the president was addressing in that clip as well as he's done in the past. so i really view that as being very consistent. >> yeah. well, people may agree. now, of course that would take legislation. it's not clear exactly where we are on the ability of this white house so far to be able to execute. what are your expectations? >> well, i mean, sure. legislation's necessary to change the statute. but a lot of the real egregious,

costly regulations have been put into place -- being put into place by the s.e.c., bank regulators, the cftc, all of the alphabet soup of regulatory agencies. so a real concerted effort by new appointees to address those problems. i think that will be huge for the economy and to create jobs. that's what the president's all about, jobs, jobs, jobs. >> paul, if you read into some of these comments, the dollar's too strong, china's not going to be labeled a currency manipulator. fed chair janet yellen is doing a good job, i respect her. a lot of people are saying they're major reversals. to me what it says is that president trump is really listening to the ceos, the advisers that come and meet with him just like the meeting you had and that you guys were there for on tuesday. is that the right interpretation? >> i think he's a great listener and he is -- you know, he's learning about various aspects

of the economy as it goes. because remember, the economy is not just some immutable object. it's constantly changing. you know, with billions of transactions every day and people interacting with each other in the marketplace. and so, you know, one has to be flexible with respect to, you know, views of different things. so, you know, i don't view any of this as really changing his fundamental mindsets. you know, he had made remarks about china, in fact a year or so ago. maybe this situation is a bit different now after he's met with them. after janet yellen there's still another year or so to go of her term. and, you know, i think you have to take things a step at a time and look at it in the broad view -- broad continue numb of things. >> to say his world view's a bit different sort of collides with what people are looking at on reversals on xm bank.

on whether nato is obsolete. on currency manipulation. not to mention yellen as you mentioned. so you don't see any evolution really it sounds like. >> well, i don't know. evolution, you know, could be a part of it. but i think ultimately, you know, when you look at the main fundamental aspect of -- of what the administration is talking about that's regulatory reform. that's tax reform. health care reform. those are the real important things for the american people and for the economy. and so the other things i think, you know, they'll develop and we'll see where they go. but i really view everything as, you know, driving forward in a very good way. >> you may term it flexibility. others though would say it's kind of incoherent frankly because there's not been a level of consistency that you'd like to see. whether it's on international relations at this point and granted it's been 100 days or not even. but it's international relations or whether it is on economic

policy, paul, wouldn't you agree there does need to be a unified approach by members of the administration. i mean, even yesterday we had the president talking about we'll lead with health care again and mick mulvaney said we'll do them at the same time. that can lead to mixed signals for the business community. >> i don't know. when you look at what they have been saying, obviously, the folks at omb and elsewhere have to work on various things at the same time. otherwise, you can't stop on one thing and then, you know, go full throttle on something else. maybe that's what the director was talking about. and the president has to take a general overview of, you know, what -- where things are going and how to sequence things. so, you know, he's the ultimate boss with all of this. so and everybody else has to be prepared to pivot and go -- you have to deal with 535 members of

congress and the administration. but i think the main thing right now is to look forward as to, you know, the general direction of -- i think that's been very consistent as to what they're talking about. and i think that's really good for the business sector and for the economy. >> so what do you predict we'll see in terms of changes at the fed? there are a number of vacancies and what we learned, president trump doesn't like a strong dollar, he likes a low interest rates. to accomplish both of those things you don't go to the hawks which are the traditional conservative economists that he'd choose for the fed. >> well, we'll see. as you said there are three positions open at the fed. and so i think, you know, that will be key to try to remake that body. and then we'll see -- with respect to the other appointees for the administration. i think, you know, they have come out with some very good announcements with respect to treasury. so i'm optimistically looking forward to other good appointees

for the various regulatory agencies because that's really where the rubber meets the road. that is -- they're the workhorses to really try to address the overregulation that we have seen come out of the last eight years and i think that's the real path forward. >> all right. mr. atkins, appreciate you joining us. thank you. >> thank you very much. >> paul atkins former s.e.c. commissioner and a member of the president trump strategic forum. the leader of syria bashar al assad is speaking out this morning against the united states. michelle caruso-cabrera has some details on this news making interview. >> hi, sara. bashar al assad sitting down with agency french press and he said that the notion that the government conducted last wee s weekweek's chemical weapons attack in syria is quote 100% fabrication. >> there was no order to make any attack. we don't have any chemical weapons. we gave up our arsenals a few years ago. even if we had them we wouldn't

use them and we never used our chemical arsenal in our history. our impression that though it's mainly the united states is -- with the terrorists they fabricated the whole story in order to have a pretext for the attack. >> the u.s. does believe that chemical weapons attack was conducted by the syrian government and it's what led u.s. president donald trump to fire 59 tomahawk missiles at a syrian air base and there's another air strike that the u.s. conducted on behalf of the isis rebels, well that mistakenly killed 18 members friendly to the u.s. and the pentagon says quote the strike was requested by the partnered forces who had identified the target location as an isis fighting position. the target location was actually a forward syrian democratic forces fighting position. sara? >> all right, michelle, thank you for staying on top of it. when we come back, cadence

bank corporation going public at the nyse today. up 9%. the first bank to go public in 2017. we'll talk to the ceo right after this break. c'mon in, pop pop! happy birthday! i survived a heart attack. i'm doing all i can to keep from having another one. and i'm taking brilinta. for people who've been hospitalized for a heart attack. i take brilinta with a baby aspirin. no more than one hundred milligrams as it affects how well it works. brilinta helps keep my platelets

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the key level of the market isn't on the s&p 500. it's all about the yen. find out why. more "squawk on the street."

the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the prospectus containing this information. read it carefully. distributed by invesco distributors inc. cadence bank public today as major banks like citi, wells and jpmorgan reported early this morning. the ceo paul murphy will talk about the bank, the ipo. congratulations. >> thank you. >> talk about the timing of the ipo. why now? >> yeah. well, capital is productive and having a currency is always an advantage. we'd like to be active in the

m&a world. we have good growth. so we're increasing the capital ratios is a prudent thing. >> trying to make sense of the layout of reports we got earlier today. whether it's trading for some of these banks, mortgage and loans. people wonder what's happening with loans and why they seem to be rolling over if it's a classic late cycle phenomenon or something else going on? >> i noticed that in the data that it seems like things are slowing down a little bit. fortunately for us, our experience has been different. we have a great team and our loan volume was good in the first quarter. >> i think more of your loans, 50% come from texas, correct? you operate in other southern states like in florida. how exposed are you to energy loans and what does that look like these days? >> right. we have about 13% of our portfolio is energy loans. obviously, we have seen a lot of stress with that portfolio. but i'm happy to report that of the roughly 100 borrowers we have, really one sort of major disappointment. but the rest of the group is holding together well. a lot of stress in the ep

portfolio, but midstream is great. >> taking its toll on the texas economy. how much has that come back and where does it stand right now? >> you know, i often see people had that concern and just what we're seeing on a day to day in houston is it's not been as bad as people think. we actually added jobs in each of the last two years. and so there's some soft spots clearly. multifamily and office and the energy corridor. but overall the city is doing just fine. >> you mentioned m&a. you picked up a number of banks during a stressed period. >> we did. >> no longer the case. are there still any number of smaller banks that you can start to use this currency you have established today to pick up or are things getting a bit pricey? >> it's a good question. i think there are a number of good prospects for us to join forces with. what i observe is most of the deals these days are mostly private, not a lot of auctions.

it makes sense to find somebody to affiliate with and own stock with. i think that over time we'll be able to find some good groups to partner with. >> what's your average loan size? >> it's small because we have 65,000 households who bank with us, but more representative would be a commercial relationship in the 10 to $15 million would be a comfortable relationship for us. which do go larger. >> what about the criticism we hear constantsdly that banks have not been lending? that it's difficult to get ahold of capital if you're looking for something along the lines of the businesses you're lending to. is that criticism well founded? >> i think it's not. i mean, i see good loans are very competitive. a lot of good banks do a nice job. i put our team at the stop of the stack there and we're responsive to good borrowers lending requests. >> do you think there's a long line of banks in your situation who'd like to be public in the near future? >> i think they're on the

bubble. whether they want to be public or whether they want to affiliate with someone who is public. i think there's a fair amount of concern about the the regulatory environment. >> on the regulatory environment president trump's administration has made deregulation a core theme and mission. when it comes to the bank, what sort of specifics are you looking for? >> well, in terms of -- >> the regulating. >> yeah, well, the dodd/frank stress test, if we get relief there it would be appropriate. there are some positive comments around that. that would be the main thing. i know there's talk about the durbin amendment being removed and that would help too. just dollars and cents. but for us the regulatory environment is stable and we can survive what we have today and if it gets better then that would be nice. >> overall economic environment, do you have guesses on gdp or do you get into that? >> i'm an optimist. i see things shaping up not only in the u.s. but globally.

better numbers. so i'm encouraged. >> congratulations. >> thank you. >> ipo day. nice opening trade. good to have you with us. cadence. >> yeah, imagine that, a bank going public. now over to jon fortt to see what's coming up up "squawk alley." >> we have that press conference for passenger dr. dao. we'll continue to watch that. yext has the ipo. they're doing something like search engine optimization for the mobile and the voice era. we'll talk with them first on cnbc. apple has a secret diabetes project. you might have heard about it on cnbc.com. we'll give you more coming up on "squawk alley."

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new england patriots head coach bill belichick set a nfl record when he led the team to the fifth super bowl victory. suzy welch had an exclusive interview and they talked about leadership and the mistakes he's made along the way. >> let's talk about mistakes okay. leadership mistakes. your career mistakes. any stick out? >> after every game i look at the mistakes that were made in the game by me, by the coaching staff. need to address those and correct those. good players can't overcome bad coaching. it's impossible. on a personal level, let's say the one thing that i definitely learned is you've got to count

on the most dependable people. might not be your most talented person, but you count on the most dependable people. so there are times when i have put -- i would say too much responsibility on people that weren't dependable. that weren' and they didn't come through and so whose fault is that? sometimes i was too detail orientated on the task i was on and didn't give enough leadership in other areas. every team has young players and they have wives and girlfriends and babies and parents that are sick. all of that it runs in together. the more you can handle those, the more that you can help take care of those, as an organization, as a head coach, then, you know, the smoother the ship runs on the football end.

>> susie welsh joins us more to talk about that interview. great to have you. for a coach that was so famously unwilling or unable to open up to the press, i mean, what is the secret? how did you unpack all of that? >> you know, i have been lucky enough to know bill for a couple of years. over the years and over dinner conversations or lunches or playing golf, we've heard him say some incredible things about leadership and management and his life and his career and one day i just asked him, hey, bill, would you be willing to sit down and talk about these things? he said, yeah, that sounds like fun. nobody was more surprised than i was. he did actually do that. for 90 minutes he talked about his very cohesive approach to leadership and mistakes he's made and defining moments and how he came to be the person that he is. it was incredibly insightful and reflective and he went pretty deep. i was amazed. >> you spent a lot of time

talking about leadership with some of the biggest leaders in the world. i wonder how much of belichick's philosophy runs counter to classic schools of management or fits right in it. >> he said things that were surprising to me. when i came home i said to jack everything i learned at business harvard school is wrong. he talked about dependence on reliable, consistent people. you're taught and part of what happens in real life with management is you focus on your stars and he says get rid of those people. focus on people you can count on. he says himself he learned that the hard way. he also made a point that's not in the clip but in the full interview about celebration and actually jack and i have written in books celebrate a lot. celebrate your wins. bill belichick is not about celebrating. it's about getting off your laurels. it's painful for him to think about victories. he's to the next thing. he's onto cincinnati. the next thing immediately. a lot of what he said was really

provocative and not exactly what you're used to hearing from leaders. >> i'm no expert on this on football. what stands out to me, and i just wondered if you could comment on it and whether you picked up anything in the interview, patriots always seem to be good no matter what. a lot of that does go credit to him for leadership. the other thing is he seems sort of immune to public criticism. is that true? >> let's take those in two parts. the first about them always being good, they are so exhaustively prepared. you are prepared for every scenario before you go on the field so when you have to adjust as do you in any strategic situation, you can do it wordlessly. the thing about being immune to public opinion, he just doesn't care. he calls it snap face and insta run and mocks social media. nobody hates social media more than i do. he doesn't listen to it. he is who he is.

he has no apology yiz fies for . >> you mentioned the "the last word with lawrence o'donnell"lessly -- mentioned the word wordlessly. do you get the sense that he's articulate and willing to talk to a lot of them? >> he's amazingly articulate. i've known him personally. that's why i asked him for the interview. i heard him speak fills so -- philosophically. he has three millennial children. i think he must be the same way. i've never in the locker room. he must be this way with his players. they know what he wants from them. he does say what he's thinking. you don't have to do a lot of guessing when you start talking

to him. >> one last thing. we did see bob kraft when they won the super bowl. with a bit of a knock toward goodell and the way they believe they've been treated by the league. did belichick echo that? >> he did mention it. i did a word association game with him and i mentioned the word football. he said it's a game but it's also a business. then he obleakwas referring to l there. >> fascinating insight. very hard to get. congratulations to you, suzy. you can catch more on "power lunch" today. full interview on cnbc.com. as we go to break, a press conference about to get under way with the attorneys and daughter of the passenger pulled from the united flight. we'll monitor that and take you there when that happens. dow in the meantime up three points on this day with the banks kick off earning season. cdw brought i.t. orchestration to printing,

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♪ good thursday morning to you. earnings season kicks off. dow with small gains. we're awaiting a press conference from david dao's attorneys. phil lebeau standing by for what will introduce perhaps a new chapter in this story. >> reporter: let me set the scene here. we have two attorneys who are

representing dr. david dao and his family as well as dr. david dao's daughter, crystal dao pepper. they are expected to take the podium behind me in a couple minutes. what's interesting here is not only not what they can tell us about what legal action the family has already initiated or is considering but also from crystal dao pepper some update regarding the condition of dr. david dao. remember, he was taken to the hospital. our last update we had was he was in the hospital as of yesterday morning. is that still the case? is he out of the hospital? what comments, if any, can they share with us in terms of his thoughts about what's happened in the last week. we're going to have the attorneys holding this press conference in a couple minutes. interesting to see what kind of update they give us in terms of legally what happens next for dr. david dao and his family. >> phil, there's been a lot of debate over the past 24 hours after