good morning welcome to "squawk box" here on c nshs live at the nasdaq market site in times square it never gets old hearing al michaels say that. i'm andrew ross sorkin along with joe kernan. melissa lee is with us becky quick is off today take a look at the u.s. equity futures. the dow will open up 29 points higher nasdaq look to open up 29, 30 points higher right now. the s&p 500 up close to nine points while most of us have been asleep it is a green picture across the board with shanghai composite moving the most. up over it%. looking at the hang seng up over 1% right now european equities also as we

flip that board around, you're looking there. also, relatively in the green with a little bit of red in italy and in spain then finally, treasury yields right now. the ten-year note traying at 2.553. zbroirjts dow component united health just out with earnings. an adjusted 373 a share for the first quarter coming in 13 cents above estimates. revenue also topping forecasts the company also increasing full year outlook net earnings of 1380 to 1405 a share. adjusted net earnings of 1450 to 1475 a share based on the better than expected first quarter results as well as improved visibility into the rest of the year we have unite health shares higher by .4%. of course rrk there were some concerns around all of this entire sector because of the medicare for all proposals put forth by democrats at this point. this group had been battered going into this earnings season. it will be interesting to see how much they address the political aspect, which will be a reason why some people are

saying stay away from health care, which is the worst performing sector so far in we're. in his view taxes would be much higher, but everyone would be covered, and you think the cost would be much lower. >> they are definitely there is a whole contingent of the democratic party that has moved much closer to bernie sanders. i saw a little bit of that, but most of what i was watching yesterday was gut wrerjing and agonizing and just you almost wanted cry much more on the markets this developing story, until this morning where i would say this is probably one of the best case outcomes that watching yesterday that you can -- much of the structure is going to be okay, i guess. here's some live images where we've all seen this. firefighters battled a huge

blaze on monday at the iconic notre dame cathedral the fire sending ash, pouring to tourists as flames shot out of the roof one of the most visited landmarks in the world cause of the fire is unclear, although preliminary findings suggest it was an accident it's about as -- for no one having lost their lives, that was like right after that it's about as bad as could you have gotten just watching the iconic structure just nothing you could really helplessness is -- >> and around the world. >> singing -- >> right >> french citizens were glued to their tvs all across the streets of paris, and we were all here watching this. >> some of france's richest

citizens >> 350 million i think euros to help rebuild the cathedral that includes billionaire lvmh chairm bernard arnot and francois much more on this developing sto story. some of the inside was -- the roof was on. each beam of the roof frfs an individual oak tree just centuries old and very, very combustible. most people don't think gothic structures can burn, but there's a lot of wood. i was just there in january. i was just there this year it's a really special -- anywhere in paris, you can see notre dame.

>> a read in gold crown also the tunic worn by st. lou yis. that's a 113th century king of france the large err painterings, those are hard to take off the wall. >> at up with point it was most. the fire marshall said it's unlikely we're going to be able to stop this thing it's going to be the entire structure. that was not the case. the worst case outcome did not come to pass, and hopefully they can rebuild it in a way that it's very, very similar, and

then we can have it for another 800 years. >> from that story to talk about business again a little bit of what's on our squawk planner today lots of things coming up we've heard from united health already, but we'll be hearing from j & j this hour we're expecting results from bank of america as well. we then get numbers from black rock and bring you an exclusive interview with ceo larry fink. that's coming up at 6:30 this morning.

take a look at nets fliks year-to-date most of the gains were made in the first month of the year, and since then it's been trading in this very tight range. we'll see if it can break out with the release of this earnings report and a lot of people are going to be looking for 8.9 million subscriber additions. that's a key number here also, progress made towards its operating margin target of 3 is% by year end. >> speaking of netflix and disney, we should speak of another player in this game because at&t has now sold at nearly 10% stake in hulu the other big player in this game back to the company for about 1.4 billion dollars. the deal values the streaming service at $15 billion in total. at&t inherited that stake when it called time warner who used the proceeds to hulu owns 60%.

by the way, you really think about the opportunity to package the disney plus piece and the hulu piece together. to me that is where the real competition lies to a netflix. >> hulu live is -- that's the whole game you just have done the whole thing right there. we should note that comcast parent company of cnbc is going to continue to hold a 30% interest in hulu, which also makes things potentially a little bit complicated it's a beneficial stake for comcast to just hold on to it. disney will try to put muscle behind it. >> just to keep disney from having full control. >> at some point i imagine it becomes a chess piece in larger games. you hold that as long as you can. by the way, you let the other guy grow your chest piece for you.

>> comcast always wanted own lu outright one of two things is going to happen long-term brsh either disney does great things with it, puts a lot of bustle behind it. it becomes a huge success. at some point disney says we can't do this anymore. we have to cash out. then comcast is the winner because they got a nice piece of this thing or these other services become the real sort of franchise for what disney wants to do. hulu isn't, and then maybe -- >> they just get rid of it >> comcast maybe would try to buy it later yeah

>> now have forgotten so much that i have gone back and watched a couple of the originals. a lot happens in this first two. >> it viewer numbers ever. 17.4 million viewers across all of hbo's platforms, that including hbo now, hbo go, the streaming platforms. that boat the previous high of 16.9 million viewers who tuned inner for the season seven finale in 2017 sunday was the largest night of streaming activity ever for hbo and the premier was the most tweeted episode in series history. >> walking dead used to get those numbers. it wasn't premium, but just on amc. >> in a fragmented world 17.4 is huge >> we haven't mentioned the masters. >> the ratings

>> i didn't see the actual numbers. >> everybody in the world was watch and tweet it, where. >> ratings were 6.0. third round. just trying to think what that number is. >> i think this is total >> for fall four >> this was for saturday >> we'll ruch that squawk news maker of the morning, black rock larry fink will be here to talk earnings, china, the rally in stocks, and much more. that extended interview coming up at 6:30 more big reports this hour we'll hear from johnson & johnson and bank of america. that's 6:45 a.m. eastern so with xfinity mobile

i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars... do you guys sell other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $100 back when you buy a new lg. click, call, or visit a store today. welcome back investment r black rock reporting quarterly earnings of

$6.61 per share. beat the consensus estimate of $6.13. revenue in line with wall street forecasts, and black rock also increased its quarterly def dend by 5% to $3.30 per share black rock ceo larry fink will join us in, well, literally 15 minutes. 6:30 a.m. in an exclusive interview, and we'll talk with him all about this lyft shares closing at a new low on monday. now down 22% from its ipo price. what could this mean for uber and pinterests as those companies prepare to the public. jackie kelly, ernst and young leader welcome. good morning to you. >> good morning. >> we're watching the price action lyft shares so closely because there is this thought it's going to set the tone does it? >> everyone is definitely watching this right now. i think we need to look at every company that's coming to market right now individually i think we can expect that there's always going to be some volatility around some of the unicorn that is are going out. >> you make the point that in a business that's new and a

business that's disruptive, it takes the market some time to sort of grasp how it should be valued at what point typically after the ipo does a market feel comfortable in grasping the value? >> well, as we look back at history, it varies significantly. some of them they'll settle pretty quickly here in the next week or two. others, it can take a while. investors try to really figure out and understand the story and the growth -- where the growth is going to come from. these unicorns are really exciting, and i think there's a lot to watch as we look forward here >> why are they so exciting if we don't really understand what the valuation is if retail investors who buy into the ipo afterwards i understand it's not all about the retail investor and how they do, but if they're feeling a little burned because of this and there's no reason to get into an ipo in the first days as it goes public >> these companies are disruptive some are profitable. others sht we even see some of the our

unicorns -- the revenue -- the hype around them make them think these are significant companies like billion dollar revenue companies and not necessarily that the size. >> how do you even know where it should be priced >> it's a good question. i think this is all going to settle out hopefully here in the next few weeks and folks will feel pretty comfortable. >>. >> we're going to see how the quarters come out. this is typical of really all companies as their new ipo companies. some have longer stretch >> a lyft related question and it relates to the skperngz where whether you think they're going to have an impact.

i'm not too convinced are. i'm sure it will do something. i'm not sure what it's going to do because i can't figure out whether investors want to see massive revenue growth and don't care about the losses or whether they want to see the losses get paired back and they care less about the growth. >> there's so much excitement because there's so much -- they're b to c companies, right? it's so personal these are companies that you have been involved with as a retail investor. >> what if pinterest comes out on thursday, and they both also trade well the fist day. decently the first day then trade lower how does that set the tone for the rest of the unicorns after

that >>. >> it's that tord judge at this point, and definitely we can expect price fluctuations over the next few weeks >> jackie kelly of ernst and young. >> black rock's larry fink will have an extended the company as reorganization just announced last week a lot more to come larry fink and more on "squawk box" in a moment how do you gauge the greatness of an suv?

is it to carry cargo... or to carry on a legacy? its show of strength... or its sign of intelligence? in crossing harsh terrain... or breaking new ground? this is the mercedes-benz suv family. if you've never seen yourself in a mercedes, you've never seen these offers. lease the gla 250 for just $379 a month at the mercedes-benz spring event. hurry in before april 30th.

time now for the economictive edge. we'll start with the stock to watch. shierz of jb hunt. first quarter earnings revenue rose, and both missed estimates. the company citing winter weather around the chicago area. higher pay for truck drivers, higher cost for technology as well as rail line closures for lower volumes overall in the quarter. down 2.5% right now.

after a successful launch in landing of its falcon heavy rocket last week spacex, one of the core rocket booers the rocket land odd a drone ship platform due to choppy seas, the booster then toppled over into the ocean. spacex says no one was skmurkt the loss of the rocket wasn't impact future missions a little news in elal arian musk land this morning. >> coming up, we have today's big earnings hour. it is going to roll on we're expecting results from bank of america, johnson & johnson, both in the next few minutes. plus, our big interview with black rock ceo larry firng that's minutes away. he will joib us on set to talk about eshad view of the markets and the results of black rock as we head to break here's a look at yesterday's s&p 50000 winners and losers

through the at&t network, edge-to-edge intelligence gives you the power to see every corne of your growing business. from managing inventory... to detecting and preventing threats.... to scalingup your production. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. will it feel like the wheend of a journey?p working, or the beginning of something even better? when you prepare for retirement with pacific life, you can create a lifelong income...

so you have the freedom to keep doing whatever is most meaningful to you. a reliable income that lets you retire, without retiring from life. that's the power of pacific. ask your financial professional about pacific life today.

good morning welcome back to "squawk box" this morning a couple of big stories front and center to tell you about this morning the top one right now, united health, dow component, united health reporting earnings, and it adjusted $3.73 a share. coming in 13 cents above estimates. revenue topping forecasts, and the company aus increased its full year outlook. also, we are awaiting results now from bank of america this morning. dow component johnson & johnson as well on the docket. expected out in just a couple of minutes. we'll bring you that news, of course, and the raeksz in the markets as it happens. then take a look at at&t right now.

it sold its 9.5% stake in hulu back to the streaming giant for 1.43 billion dollars that would give the company a $15 billion valuation. huge jump from november when disney value hulu at only $9.3 billion. disney then in pole position with comcast, which is a apparent company of cnbc >> what? >> what's that >> that's right. >> dow 104 higher. the s&p 50000 looking to open up about 8.5 points higher. >> looer firj to the squawk set.

>> would i lie he will join us to talk earnings he looks so happy. >> come on weed week on fast money. don't miss out where >> there he is >> he will join us erngds markets, much more right after the break. stay tuned you're watching "squawk x. akt m. he is saunterring. >> that is self-confidence right there. 401(k)? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov. on investor.gov. [kno♪king]

♪ memories. what we deliver by delivering. car vending machines and buying a car 100% online.vented now we've created a brand new way for you to sell your car. whether it's a year old or a few years old, we want to buy your car. so go to carvana and enter your license plate, answer a few questions, and our techno-wizardry calculates your car's value and gives you a real offer in seconds. when you're ready, we'll come to you, pay you on the spot, and pick up your car. that's it. so ditch the old way of selling your car, and say hello to the new way-- at carvana.

welcome back to "squawk box. exclusive interview right now. brack rock, the world's largest money manager out with quarterly numbers moments ago. earnings of $6 about the 61 per share. now, that boat the consensus estimate of $6.13. revenue was in line with wall street forecasts and black rock also increased its quarterly dividend by 5% to $3.30 a share. chairman and ceo, and he joins us now exclusively the stock didn't hook like it was muflg in the premarket on that nuds. >> given the headwinds, it was a good situation >> you're right. last year global equities were down 13% global equities came back about 1 1% throughout the quarter.

absolutely the circumstances are quite different. we grew our total asset base by 9% we degree over $525 billion in assets we're back over 6.5 trillion but the mix of aum was quite extraordinary. we had 80 billion in flows fixed income we you saw many people putting money to work, but global equities you saw huge outflows the trends have not really changed. but for us we had, as i said, $65 billion in net in flows. we saw extraordinary new wins in our technology business. we had a record quarter of raising $6 billion of illiquid

alternatives in the quarter. i i wouldn't say investors were just jumping in all in the marketplace with the market rally as large as it is, i would clearly toll you at this point most investors are exposed by being under invested at this time >> so two questions. with unis to it is extent you're pulling new money in, why are you pulling it from? >> i would say, well, on the one handy talk about a little more public is our i-shards franchise, and it was pretty concentrated in europe and the u.s. about 17 billion in the u.s. and 15 billion in europe very little out of asia in the first quarter. we saw it from asia and the middle east. we're seeing some money to be put to work. money from cash to fixed income. we're not seeing money being put to work rushing into equities. what are the trends that you are seeing in terms of flows into

the core i shares in temz of mutual funds to give says an idea of your fees and pressure on fees. for the quarter our fees went up .2 of a basis points overall i'm talking about the whole franchise. >> the whole franchise, and some of that is we're now winning more and more in the old space >> prfs a pretty good mix of corps and a lower fee versus a non-core, which is more institution a.m. and nor for liquid markets where we have options associated with some of those etfs

>> you just comment thad you believed people were under invested >> globally. >> yeah. >> but make the case why you think that and are you saying that in terms of the equity markets or just broadly? >> broadly this people are going to -- >> is that a good call >> yes, that's a market call >> i think we have a risk of a multi-up, not a meltdown despite where the markets are in equities, we not seen money being put to work. we have record amounts of money in cash. we've stooil still seen outflows in retail and equities we city council see outflows in institutional. i'm talking about it it is an industry now.

snoo i think we're struggling in this time. especially now in central banks. who were, if anything, more dovish than ever they are not change willing their behaviors related to qe anymore. would know with trillions of dollars under management, and you're not seeing the -- in previous tops, you have probably seen a lot more excitement, haven't you? >> right we're seeing huge excitement in fixed income ma many. >> we saw huge under investment,

and people had a rush in to investment fixed income. we have not seen that in -- we have not seen what i would say is that i missed that, and i'm running in >> can i ask you about this -- i've been thinking about of as an enthusiasm gap. we've been talk about -- uber is coming out later how do you think investors are thinking about that? do you think about the ipos in context of this enthusiasm issue, enthusiasm gap? >> i think everybody is looking for a new story, and so when you have these ipos, it's a new story, and those were not investing in the private markets of equities and the venture capital or the angel investing or the -- for the first time they're able to see these stocks some of them are big retail names now.

with happen to be a large investor in uber from the early days and so we're -- we're obviously anxiously watching how it's going to trade >> does the response to the way lyft is trading make you anxious? >> no. no not tall i mean, i'm not focussing on one stock or another i'm not -- we shouldn't focus on one stock -- >> to the extent that lyft would be a proxy for uber, if you think it is at all some people say that they're completely different businesses given the mix of things that they're doing, the international scope of what uber is doing relative to lyft, but i was thinking to myself, if you look at where lyft is today -- >> if i can make why those companies are important and translate that back to asset managers because we just finished in a leadership retreat

and i spoke to where the macrotrends that are acting our clients. our clients all want more transparency >> right >> everybody is looking for a company that provides a more convenience. okay those are the two macrotrends that are affecting from taxis to purchasing on the internet anything you are talking about in financial services most companies are not providing transparency, and certainly not providing convenience. i believe those are the two key elements that are changing the asset management and the investing market, and that's translating into lower fees. that's translating into a great demand for great demand for higher returns, if you can get it.

we're going see huge changes in our industry and financial services leak we saw in the taxi business or retailing. people need and expect more transparency society is expecting more of that people want much more convenience. we have to translate that. >> he is concerned he is watchful he is wary you don't get -- when is the last time you were anxious maybe when you started black rock you haven't been anxious in years. >> i'm not an anxious person >> it's not my money, joe. >> so you are anxious about other people's -- >> i'm concerned >> 210 versus 203 on sales of 20.02 billion with the estimate 19.60 higher than expected on both of those counts now i see that the company says it's backing the 2019 view of 80.4 to the 81.2 billion in sales. that would bracket where the strooel street is right at 81

billion dollars. adjusted operational sales up 2.5 to 3.5%. >> passing two to three. >> it's keeping its guidance where it is. >> well, and it also is raising its operational sales. had seen 2% to 3% where, now sees 2.5% to 3.5%. it's up 85 cents ahead of trade me before larry fink. we'll be right back. internet that puts you in charge.

alright boys, time to eat. that handles anything. [ crowd cheering ] that protects what's important. and reaches everywhere. this is beyond wifi. this is xfi.

bank of america shares down about .8%. just out with results. let's get to wilfred frost

this is an eps beat 70 cents a share. expectation of 66 cents a share. basically in line. 23.2 billion also, essentially flat revenue year-over-year ist not in the declining revenue camp like goldman sachs yesterday. crucially on the retail part of the bank, the interest yield curve part of the bank, it's not in the wells fargo camp. it is in the jp morgan and cnp camp the net interest income. expectation was 12.3 billion, and an improvement in the margin that's up nine basis points quarter on quarter that's decently ahead much expectations loan growth credit quality all look solid we'll listen to what brian says about the economy coming up in the call trading also fine. it was well guided it was down 13% year-over-year it was guided for slightly worse than that. key point here is that even in a flat revenue environment the

operating leverage is still coming through because their cost control is so good, and the expenses really is what delivers that eps beat. 13.2 billion down 4%. that's ahead of exceptions that's allowed that eps beat. again, the core part of the business looks pretty solid and loan growth picking up nicely. credit quality seems fine. we'll listening on the call. probably pa because of the headline revenue number just fractionally light, but trading higher just jumping lower as i speak. we'll see where it settles up. >> thank you back with the lowdown on bank of america. >> we're back with our special guest this morning black rock chairman and ceo larry fink who is so far from anxious. i would even call you -- i mean, it's more than calm. i would even say serene. you have a serene presence in addition to that, over time you are, i would say, one of the people that speaks their mind about the conscience of wall street and capitalism and

business in america. last time you were on i just thought it was kind of interesting when we were talking about kashogi, and that situation in saudi arabia. i asked you flat out would you end doing business with saudi arabia, and you said, no, absolutely not you were very honest once again common sense it is the real world there are certain things off the just short of hold your nose and move forward. >> i wouldn't say you have to hold your nose as i said when we spoke about saudi arabia we do lot of work there. manage money for the social security fund. we manage money for many fine people in saudi arabia we still don't know the conclusion of the awful tragedy.

obviously lot of fingers are being pointed. but when i write in my ceo late letters i talk about you have to be local in every community you work in. and, you know, there is not any community in the world that is perfect. there are many extremes in every community. but in every community you need to be working with the local community, be part of that community. and that is why we concluded we're going to be continue to do business there we did not go to that one conference i've been back to saudi since. i will be going there shortly again. among many other countries i'm traveling to so, you know, you have to be deliberate you have to be open. you have to be forthcoming but i do believe what we're doing in saudi does not go against what we talk about in trying to have corporate purpose. >> and china, there are a lot --

things aren't perfect in china. >> and they are not perfect in most countries there are extremes in many countries and our job is to try to navigate ampbd that but also to have a conscience too i'm not here to suggest we are not evolving and changing. because we all are i do believe society is asking more and more from companies >> for companies to be a forcing mechanism on some of these issues how does blackrock think of itself? is it so much on navigating around thesease these issues. to the extent you are going to do business there to somehow using your voice to alook we're going to do business with you but under these conditions whatever it is. >> in every community we work at in saudi or china or the u.s. or mexico or anywhere else in

europe we have to stand by our client in those communities and be working with those clients in those communities. if you are truly going to be an international company and have businesses throughout the world, you cannot impart let's say u.s. or -- off the try to find ways of working within the community and try to help that community change there are things that we are -- we have global principles we're not changing one of the global principles we are working towards having at least 50% women. so gender neutrality worldwide compensation is the same between women and men. doesn't matter where we operate. so we as a firm are trying to evolve and change and move forward. and we're trying to be a principled organization working with all the communities in countries where there are issues i don't want to name any one company. i've had private conversations about what we, you know, what we think to do to move forward.

and they can -- athey may or may not listen to us but we do voice our concerns i think the fundamental issue is society is changing. and i wrote this in my last letter millennials are asking more of companies they do business with. millennials are focusing on where they work. and so if you are going to be a company that is trying to attract the finest talent. a company that is reaching more and more of society you have to be more mindful and. and i do believe we are, you know, we're in a very deep political debate right now and i do believe the role of publiccompanies is going to become larger and larger and do believe the leaders of public companies with their boards are going to have to have a stronger voice and i do believe that stronger voice will lead to stronger

profits. >> does that mean that you take the stand is or does that mean you vote with your shares and take a stand. >> it could be either but blackrock is standing up and taking -- we are -- i have representing blackrock employees, blackrock client, all our stakeholders and shareholders we have a louder voice we're also asking other ceo, other chairs so have a louder voice. i do believe we have to be mindful. and you are hearing this from jamie daimd. from many meme now that there is a need for i would say more conscience capitalism there is a need for more inclusive capitalism >> you saw jamie diamond was asked at the bank hearings last

week about wages and jeff bezos on the gauntlet on the wages to juan mawalmart. if all these companies increase wages how does a blackrock think about that maybe good for society but maybe bad for the stock. >> in the long run if you are able to track better employees and have more productivity i can't answer the question with limited information. but if they believe they are raising wages and they are able able to track better employees same employees but are now willing to work a little harder. they are more involved if the output is better productivity it may not deteriorate the margins. but once again if you do that also and if you raise the consciousness of your clients and that produces more demand on your products that may all turn out fine if the question is you are just

raising wages for the idea that it is not going to have any impact on the employees. >> these are private companies if you all of a sudden legislate in seattle you are going to $20 and it could be bad for society. not always just good for society. what's bad for companies aren't always good for society. and it could be bad for society if there was a nationwide min maum wage of $20 could be bad for society. >> i would say very loudly over the long run, having more engaged employees. >> no doubt. >> larry, thank you. >> thank you so much for being here appreciate it. we got l me mi aotorcong up. we got l me mi aotorcong up. back in a moment.

what do advisors look for in an etf? we got l me mi aotorcong up. back in a moment. i tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term? my reputation depends on it. flexshares etfs are designed and managed around investor objectives.

so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. bank of america reporting results moments ago. we break down those results and get the market reaction. >> investors getting ready for uber's debut on wall street. we'll speak daytona investor about the offering and talk about the ipo landscape. >> and taxing big tech a number of cities in the valley want a bigger preece of the president of the pie that story and your laters corporate headlines are straight ahead. the second quarter of "squawk

box" begins right now. good morning and welcome back to "squawk box. i'm j nasdaq up about 29 and the s&p indicated up 9 points so far this morning and what's been a strong market now even in april after a really strong first quarter >> we just heard from bank of america this morning wilfred frost joins was a breakdown of the quarter. >> epps beat, 70 cents a share revenue fractionally behind expectations at 23.2 billion investors. 22.3 billion

and just flat year over year in terms of performance in the interest income which people have been focussed on yield curve moves is 12.5 billion. little ahead of expectations net interest margin at 2.51% increase of 9 basis points quarter over quarter and the lone growth and the outlook for the economy looks find provision at 1 billion a fraction ahead and you don't like to see. that was meant to be 900 million. overall pretty good. and economic growth and consumer at this time in the u.s. continue to be solid businesses of every size are borrowing and driving the economy and asset quality is strong more of that tone from him on the call i'm sure will be welcomed by investors if that is indeed what we get in terms of investment bank most

of the others had a big beat in line 1.3 billion. trading a bit better than expected because of the fixed income overall they are trading down 13%. people have been looking for as much as down 18 or 19% so not as bad as feared. and i bring back to that point i mentioned earlier. the key reason for the beat on the eps line is expenses but this is a long term manageable, repeatable cut in expenses from bank of america rather than a one off cut to pay like goldman sachs yesterday came in at 13.2 billion. that is down 4%. people were expecting expenses 13.6 billion so all if all a solid set of results. >> the headline revenue flat year over year and slightly below expectations doesn't jump out as good given goldman sachs' big revenue drop yesterday decent numbers overall >> thank you wilfred frost. and here is what's making

headlines. blackrock reported quarterly a professional beating estimates revenue in line with forecasts larry fink ceo visited with us moments ago. >> we saw extraordinary new wins in our technology business we had a record quarter of raising 6 billion dollars of illiquid alternatives in the quarter. so we saw money being put to work but i would not say investors were just jumping in all in. and the marketplace with the rally as large as it is. i would clearly tell you at this moment most investors are exposed by being under invested at this time. >> he went on to also say he expected a market melt up after the big gains so far blackrock first downs 5% quarterly dividend increase. also this morning. dow component united health herbed $3.73 a share

revenue peat forecasts the company also increasing full year outlook on increased membership for health plans. the stock up 1.7%. and the fire that severely damaged notre dame game cat doral in paris is completely out. the officials evaluating whether the stone structure is is in danger of crumbling before they can assess the damage and take nvnsry of a art works there. >> johnson and johnson beating estimates top and bottom line. raising sales forecast for the yeari year joining us to break down the numbers. joann. bmo. have you -- >> i have no idea. >> you haven't seen a bmo? >> she doesn't either. >> you haven't seen a bmo?

>> -- >> -- currency the head winds that seems relatively anemic. >> that is currency head winds >> and that is inline with what people are looking for it is not disappoint or is it? >> it is actually a little better. >> any gain would have been. >> i wouldn't go that a far but as the little better and if you adjust for currency it is up closer to 3.9% and if you take a look at the segments certain segments such as med tech and pharmaceuticals did somewhat better than people were expecting in the quarter. >> the sales increase was raised for the year full year guidance was it not? >> um-hmm. >> if two to three to 2.5 to 3.5. is it execution. >> well i just got here and they just reported. but given the strength of the sector is encouraging them to feel better about the year and they usually put up

conservative guidance. it is the beginning of the year. many of our companies started out what we would call conservatively and rolls out from in. >> can you walk us through how to ohio i they did when koit ms to immunology and pharmacology within the segment >> that i can't. i just walked in here. >> consumer sails were below. >> consumer sales were below they are going there i a turnaround in the business as they relaunch butte brands and think about e-commerce business. that franchise is can excepted to accelerate throughout the year at above or at least market growth this year and all segments are expected to be growing at market or above. >> what are you looking for within t-- >> this is a year of significant pharmaceutical head winds.

we're looking at almost 40 compounds in the process of label extensions or line tension extensions or even new one drelt related drugs. to going back to 2019 being a transition year and then we think about 2020 your comps are behind you and new product rts out ahead of you >> they spent 5 billion dollars on our ra to try to get deeper in surgery and wondering. what are you expecting to see that move the needle at all and can you walk us through what the overall strategy is here in relation to invest this is money there and also seeing head winds in pharma. >> they have made the investment this orthopedics and the auras acquisition helps

in the respiratory robotics. more and more listening to the technology company asks mirroring the technology and making surgeries even better. >> is it an offset, a hedge? >> think about out anz investment in med tech this is a three legged stool and medical technology they have been spinning out a lot of things or closing things down. they closed down their animus diabetes business. they sold off cordis the more of a slight turn towards the investment stage. >> utilization for procedures for these medical devices. it is weird because in slow economic devices people don't want do that they put off surgeries things like that where are right now on that. >> a good spot the unemployment rate is low so people have insurance. you also have universal healthcare insurance sew people have access to that's we're

actually in a spot where we're seeing people utilizing healthcare in a constructive way. >> joann, thank you. >> this? >> it is a great -- >> -- it is an oversized frisbee. >> i don't understand why this is fun >> like a big frisbee. >> and what is the diameter? >> 2 and a half, three feet. >> i would have to look into that it's a bmo i don't know who was first bea-e-a-m- b-e-a-m-o. >> -- could go on a golf course. >> -- and i'd like just tothro a frisbee with you >> -- okay

see we're making progress. bring my dogs too. >> sounds like a date. >> yeah. coming up when we return a number of much anticipated ipos coming to market including uber we'll discuss the landscape in a couple of minutes. especially after what we've seen happen to lyft and shares of netflix trading high owner a couple of upgrades. deutsche bank -- >> bmo, bmo. >> -- bmo raising its price target to $470 stay tuned you are watchinghenend lywaux t o a "squawk box" so with xfinity mobile

i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg?

i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars... do you guys sell other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $100 back when you buy a new lg. click, call, or visit a store today. futures up 133 points. j&j helping a little unh i think probably helping the dow as well. up 133 now nasdaq up 29 and the s&p indicated up 9 and change. >> couple of stocks to watch for you this morning at&t selling ownership stake in hulu to the streaming service for $1.3 billion hulu's value is now $15 billion.

and the walmart with children's styling service kidbox offering fashion boxes for kids containing 5 items for $48 a. the big banks cashing out on the ipo. and the after lyft's disappointing debut howwill uber fair? "squawk box" will be right back. >> time for today's after lack trivia question? in what year was the first boston marathonen held their questions. ng aflac is auto insurance, right? no. uh uh. is it homeowner's insurance? no... uhuhuhuh! is it duck insurance? nope. ahhh! do they pay me money directly when i get sick or injured? yeah. aflac! you got it. you know aflac! boom! get help with expenses health insurance doesn't cover. get to know us at... aflac dot com.

onmillionth order.r. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering.

now the answer to today's aflac trivia question. in what year was the first boston marathon held the answer, 1897 the winning time was 2 hours 55 minutes and 10 seconds welcome back to "squawk box. the ipo rush has been very lucrative for several banks underwriting big deals leslie with the story. >> good morning andrew you are right it has been very lucrative. in light of first quarter bank earnings we thought weed look at which firms are winning the

underwriting wars for these mega tech ipos. j.p. morningen currently at top. the firm was the lead advisor on lyft which doled out $64 million to j.p. morgan credit suisse and jeffries among other banks on deal there are three deals on deck that will shuffle the rankings the next couple of weeks goldman sachs should move higher thanks to its role leading pinterest's ipo. and morgan stanley for zoom which creates software for video conferences in a few weeks there is uber. that deal is expected to rake in $10 billion which should translate to about a quarter of a billion in fees for the 29 under writers. but morgan stanley and goldman likely take the bulk of that as the lead under writers and poised to make more money on paper from the equity and bonds they acquired pre ipo which they

should see a very nice return on those investments as well guys >> stick around. we want to continue this conversation and talk to an investor with some skin in the ipo game joining us founding managing part matter lead edge capital. mitchell is an early uber advisor. given the conversation leslie was just having and also with lyft talk about anxiety i'm anxious. how are you? >> not al all. stocks go up and down you can't look at things over two week periods. >> what do you think is happening on the lyft side >> what do i think happening so finding these ipos is all about a supply/demand dynamic in the marketplace. if you look at something like a tme that went out in december. 13 bucks $13.50 a share went down 11 it is now like 18.

obviously lot of people said they were long-term investors in lyft traded like 13 million shares yesterday. this thing is being heavily traded i'm surprised it went down on uber -- >> who do you think these investors are trading the stock rapidly as they are. >> a lot of high frequency trading firms. >> was there a mistake in terms hoff h of how the book was run terms of how they allocated the shares. >> i think it is next to impossible hey i'm a long-term investor >> do you look at lyft and it is trading 37% blow the high it struck the first day that impacts uber in terms of what price it sets and. >> what i care is what the price of uber is like 12 months from now. we're locked up.

so we don't actually care. >> i understand that but even if you look out 12 months if it trades very poorly at the start and starts at a lower base, that impacts the price in 12 month, no >> it can. a million different things put it this way. if you would have told me three months on ago. if i sad here and said lyft is going to be close to $20 billion two weeks after the ipo, everybody would say that's a great outcome. >> do you think that the investor class and i know it is hard to paint it with one brush, is saying to themselves i want to see uber have more revenue and i don't really care about the losses that that's the key metric people are going to look for or do they say i actually care about all these losses i got to hope they are still growing but they got to be pairing back the losses along the way because otherwise it

isn't going to work for me that question is so fundamental not just to lyft but uber and frankly all the unicorning going public right now. >> i agree with that and you are going to see companies just by pure pe peculation, like uber and lyft and other. lyft went public a day before the end of the quarter so they clearly knew their numbers i think you will see companies beat on revenue and come in, you know, with better than expected earnings they will still be negative but not as people probably guided for. >> to put some statistics for that psychology surrounding loss, last year 81% of company that went public did so with negative eps the aftermarket performance on day one on the debut was 20% for companies without earnings only 10% for companies with profitability. >> i guess the larger question is about, to me right now is not so much -- part of it is how fast growing the revenue side

but the other issue is pairing back of losses that everybody talks about and whether you need to pair back the losses or whether you just need to keep growing. >> if you keep growing, i think you are fine if you are growing 15 or 20% a year and still losing huge amounts of money i think that becomes a bigger issue. look at tesla. they have lost money many, years. amazon lost money many years obviously makes ton of money now. but i think if you asked investors. >> in both instance of those companies there was always a model which you could argue that the company could make must be. >> you can for uber very easily. >> for lyft? >> for both of. >> what is is the path to profitability for the companies? >> in the case of let's start with lyft. in uber there are multiple businesss. so in the case of lyft the best things for both of these

companies in terms of getting them profitable is to be public companies and have shareholders who care about them making money. every time the five of us jump into an uber they make money so they are making money >> every time that five people jump in a pool car. >> they do not make money. >> if you are getting in your uber car they are making money because they are not acquiring you as customer. think about a business like -- >> i thought they subsidized these rides? >> some are. but for the customers that continue -- they are like aifkt normal customer, they are making money. from. >> they said their core platform contribution margin the core businesses that's actually negative. >> uber eats i think are definitely not making money on uber eats yet but the core u.s.

ride sharing business, the companies financials look a lot better. >> in the u.s. or all over the world. >> in the u.s. dara is a master chess player. you can see what he did at expedia and before he got there. china, southeast asia. then russia. the kareem deal. you are going to see other companies around the world continue in this space >> the path to profitability. >> the path to profitability is one -- public investors if they demand profit wills cause them to cut back subsidy, one raise prices >> right now they are in a death match. >> and they have been raising prices over time they have raised them in san francisco. if you pay $22 to get to laguardia from here. you will pay 25. you won't pay 50 but you will -- >> right now people arbitraging

taxis versus uber. if. >> if they raise prices to 10-15% all that goes directly to profit mackenzie's run a ton of studies on the elasticity of demand very pricing. and it is a lot more elastic than you think >> uber eats taco bell. >> isn't it kind of cold and soggy. >> doesn't matter. >> -- greasy. >> -- no ten minutes. >> ten minutes is a lock time in a life of a taco. >> -- are and what they order. the amount of people order on uber eats like $8 french fries at like 10:00. it is ridiculous the amount of orders >> that's bad for business. >> it can be good it can be bad. >> -- taco bell.

uber eats taco bell. if you ask for the path to profitability. >> the path to something else for you, joe. >> it is you know that. see i nailed it. the streaming war heating up at netflix. still a winner and later big tech and silicon valley pay for taxes >> plans being floated and we'll debate "squawk box." we'll be right back. 7pgñóo

still to come on "squawk box. netflix set to report quarterly earnings after close today we'll hear from howard ward next plus larry fink speaking us to earlier about quarterly results in the markets we'll bring you the highlights and a massive fire ripping through the centuries old tr dame cathedral in paris france

the latest straight ahead. i need it to guide this analyst to customize flood coverage for this house. so that this team, can inform this couple, that their payment will arrive faster than this guy. hey. ♪ ♪ so whether i'm processing claims due to this fine gentleman... (car engine starting) or suggesting premiums for this young lady... ai can help change everything at this company. expect more from ai. ibm watson. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.

so called fang stocks still

present a great buying opportunity our next guest says. ho howard great to have you was why do you think that the best times are behind this group of stocks >> look at the market caps the stocks have generated 5$500 to nearly trillion in market cap. that is an enormous amount of wealth really unprecedented in history and the amazing thing which is what i'm arguing is that even though the stocks have been so good for so long these are like a great 1970s rock band that much to everyone's amazement is still performing well po or 40 years later. they have a long run ahead of them these companies develop the markets. they had first mover advantage and they now dominate them and it is going to be difficult to dislodge them. >> only a matter of time before the competition comes in particular netflix we've seen

under pressure since disney announced its streaming service. positive sentiment going into the numbers. are there concerns that perhaps they develop the market? they have got the consumer hooked on streaming. we're used to paying low prices for a lot of content and now we're going bring that business someplace else >> i wouldn't be too worried about that they represent about 10% of television viewing today the future growth in video is streaming. the disney decision validates that and i don't think people are going to be canceling their netflix subscription in order just to buy disney disney is a great company and i'm sure they will have a fine product. they are years behind. when you look at content spin, netflix is going spend 13 or 14 billion this year. disney is going spend 4 billion in a few years. >> disney has a lot of con tonight already. the catalog of old movies and "star wars" and all that.

>> i understand that but new original content that race is netflix to own. >> when you say netflix has the advantage. are we looking to narrow -- on the international market ises where it is the growth market for netflix and newer markets and disney is also going there internationally. should we be looking at that and saying disney could have a shot at getting some share this. >> sure they will. but again the market is so big we're talking about a scale here netflix has about 140 million subs they are probably going add 10 million when they report today. so they are going to be at a 150 million subs and disney is hoping to be 60 to 90 in how many years and by then netflix is going to be at 300 million plus and so, you know, as the big market the pricing umbrella that's been created by traditional cable bundled video is enormous. there is a long runway here. and this is where the growth. >> we've talked about this a lot

the past couple weeks. how much do you think the average american household is going to be paying for the bundle or tv content exclusive of the broadband piece of it on a monthly basis if you can figure that out and back into all how many services really have an opportunity to succeed? >> i i don't know what the average is but 50 to $100 for a your video subscription is probably doable for many households the key thing at the margin where is the growth going to be? and at the margin the growth isn't in streaming cord cutting or never adopting the cord and going straight into streaming. this is the beauty of the netflix model and the bigger netflix becomes the more they can spend on content their revenue per user is rising their consistent spend per user is declining the margins are growing. the earnings are about to

explode. and so they are growing and will continue to grow into their valuation nicely over the next knew years. >> share getting upgrade today facebook, seems like the regulatory head winds could be mounting around the world for facebook what. 's the bull case here? i don't understand how you could even pat number how much they will have to spend in order 20 come into compliance with regulations that don't exist yet. >> so the amount of spending toe address these issues is pretty much sapping growth and earnings this year but the top line is still growing more than 20%. the fear after last year's privacy concerns is that the audience believed users would decline. they haven't the fear is that the advertisers would say no mas the advertisers not only stayed

but are increasing advertising spend with facebook. because the targeting added they deliver provide a high return on investment and when you look at digital ads you are really talking about google who's the king of digital ads. facebook who's number two. and amazon who is now a growing three. this is the market this is where the ad dollars are going. just like the video dollars are going to streaming, the ad dollars are going digital. >> amazon, make the case for it here >> amazon, amazon has 6% of retail sales because they have about half of the online retail which is about 12% of total amazon is going to to dominate e commerce aws, their web services business the biggest factor by two, more than twice that of microsoft cho who is also doing a good job margins for amazon web services

should be growing by several hundred basis point over the next few years a source of incremental profit growth so they dominate a very fast growing business there in the cloud and they also dominate the best part of retail. and also like netflix as margins expand the earnings explode over the next few years and grow into a valuation it is now down into the low 30s on next year's earnings. >> howard great to speak with you. howard ward of gamco who likes fangs. >> up next cities are considering taxes aimed at their --. we'll talk about the big tech should be taxed more top of the hour. breakdown of this morning market movers futures at this hour are strong. "squawk box" will be right back. 36

we see homes staying cooler without the planet getting warmer. at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars... do you guys sell other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $100 back when you buy a new lg. click, call, or visit a store today. welcome back to "squawk box" this morning number of ipos coming to market going to create a big tax windfall in california >> well, it is the next big california gold rush nearly $200 billion in ipo

wealth will be generated in the coming months generating billions in state taxes. you have uber, pinterest, slack, post mates and palantir all possibly coming together this year and together with lyft could create a market cap $180-200 billion and all based in alifornia part lers likely to see huge gains on the early stock california taxes capital gains as the same rate of wages. the tech employees who have stock options don't have to pay taxes until they exercise the option and they sell it. that could take months or years to trickial down wealth front estimates of the 180 billion the corporate founders employees executives could own more than 60 billion the tax windfall could be 8 billion or more over several

years. not to mention the taxes from the angel investors that ultimately sell. california already flush with cash projecting a surplus of $20 billion this year which it plans to spend on educationing, housing and healthcare. >> how often do these executives not exercise or sell their shares and five, ten years from now move to st. barts or florida or name your place so california and the other states aren't the beneficiaries. >> there are rare examples there was the facebook guy who moved the singapore. but by and large these guys tend to stay in the valley. reinvest their proceeds, even if they leave the company and of course you have the lock ups which at least for the next six months mean that no one, especially the top founders are not going to sell. so this does take a while to trickle down but look at facebook itself

generated $2 billion to the state of california. just that ipo alone. so this is going to be meaningful >> all right robert thanks for more on whether california should hike taxes on big tech, let's welcome mattie dupler. she's senior fellow national taxpayers union. and once again we just need to know whether this ends up being counterproductive if it would go into effect or whether it would actually generate the well intentioned revenue to help some people out what do you think? >> well intentioned revenue is one thing but as you saw before. highest personal tax rate in california in the country. highest sales tax rate in the country. second highest gas tax in the country third highest corporate tax rate so it is not clear to me that companies and businesses in californians are not already paying enough taxes. if you look at ipos too you saw

that was a windful in terms of captain it constructed also an ipo if you think is a way to democratize the wealth in a way the government really can never accomplish allows people to participant in the success of a company unlike what kr of is proposing which is increasing the tax burden on companies that are the revenue raisers for the cities which also creates a problem if that is your tax pace you are extorting for more and more money you can guess where they are going to go. >> back to amazon. in new york city if the company isn't here you don't get the tax revenue, do you. >> exactly rite. these are the folks who have the most ability to move around and find jurisdictions that might not be as punitive with the tax policies i agree in terms of the wisdom of the policy but as a political proposition there is a real

threat here. you have a strain with a sentiment where people on the left and right do have a sense the rich aren't paying their fair share as progressive follows policies from single payor to the green new deal you have to find new revenue sources. willie sutton said you go where the money is and i think that is what a lot of democratic politicians are doing. and california you have a single party down in sacramento and it happen. >> i don't think you are guys are going to debate. we'll have to bring in someone from the bench andrew >> can i ask a quick question? >> will you take the other side please >> i'm happy to be drafted but robert's got a question. >> i just have a quick question for mattie you talk about we've reached a break point in terms of the level of taxes in california but we haven't seen that in terms of the revenue in terms of the economy. and california is booming. and those who say you are taxing

too much in california, there is no proof of that. >> there is no proof that those taxes aren't creating a barrier where without them you would have more entrepreneur and more growth and capital. >> they have a $20 billion surplus in california. that is massive by any state standard. >> so the challenge is that if california can continue to sustain this environment in which businesses are penalized for their success in california. i don't think this is a long-term strategy for them. california san francisco in and of itself, benefits from a coastal biesz a bias we know this to be a problem new york, california, massachusetts. all the -- and the rest of the country is supposed to just give away all their companies to these three states when we create these environments which there is only three places where this investment happens it allows for these states and localities to

extort the companies in a way that is not the most effective use of the money and resource. if you look at other cities. houston is a good example where the population growth has increased similar to san francisco but they don't have challenges with density issues because of the way they embraced growth >> how much do you think the success of texas, and houston is an example austin is an example, is it s a function of the tax rate and how much is a function of housing price, other infrastructure, the laws that have been implemented in texas. >> no doubt it is about the entire environment that is created by the regulatory environment there and the tax structure as well. taxes are only one part of the pie here but when you look at some of the problems that san francisco has, it has to do with zoning it has to do with housing. whether or not you have housing stock o accommodate the population

in houston you see you have more liberalized zoning laws, it allows the population -- for better growth. it allows for the kind of infrastructure to have that kind of boom cycle when you want the businesses to come there rather than penalizing them once they are there. >> what would you recommend that california do by the way i almost hear you saying they should lower taxes in california and yet what they need to do is fix so many of the issues that you are talking about which may be leading companies to extent they are going to places like texas if you want them to stay. >> we could be here all morning talk about what california these do to create ab environment for the company. i would start with not creating a higher tax burden. you have to remember taxes on the companies ultimately get passed down the labor. you are making it more expensive to create jobs you have fewer jobs and less

well paying jobs less consumption and you know where's headed >> there are real things that need to be filled in terms of the coffers. and paying for schools and all these things this c. last time we talked about this with was facebook and undershot estimates by something like 535%. this isn't a cure all. and i think that's what important to note. >> do you know what we could do andrew do the ipo big jump tax that unrealized gain, baby the minute it opens on ipo day -- >> -- advocate of that plan. >> why not let's just tax that thing

immediately. even the opening trade right? >> -- interday high -- >> sounded like you wanted -- like i know how you feel. >> people. >> people who are leaving california is because they can't afford it anymore. >> you don't think if if continues in this anti-corporate environment. >> the numbers >> -- growth -- problem if they go to san francisco. have you been there recently the quality of life is declining a little in san francisco. >> one of the problems is there is too much money. it is too expensive to live there. so people are leaving because they can't afford it anymore. >> there is much ton money too much money the problem is you have a ton of money and you still can't buy a house in san francisco because you have all these laws that make it impossible to build new housing stock. you can have as much money as

you want if there is no housing to buy you are still going to be homeless. >> does it ever come home to roost there? connecticut doesn't have california's problems. >> i don't think connecticut has silicon valley connecticut is in a different position where. >> isllinois. >> illinois has all kind of structural problems. isle silly a poster child for what not to do. >> new york? >> florida's got the ocean and no taxes too got a lot of bugs though i think. don't they >> humidity. it's got humidity. >> hard to be there in the summer. >> interesting point because california has so many natural things that are going keep people there all kind of natural beauty and resources and, you know, human capital there. but you are talk about testing the threshold for pain among high income tax payers and the low income folks who can't afford to live there anymore

you are playing with fire at a certain point. a tipping point. >> i like my idea. get the unrealized gains while they are hot. >> the relative volatility they have the massive rainy day fund because the incomes so volatile tied to the market. california learned the lesson from the last two down tourneys and they have a massive multi billion dollar fund to help them in the next recession. few states including new york have a v thhave that. >> okay. thank you. robert who are you? i didn't rikz you. oh you are clark kent. >> coming up bank of america we'll run you through the numbers. and netflix in the spotlight this morning after an upgrade and a icpre target increase ahead of tonight's earnings report preview coming up "squawk box" will be right back.

you should be mad at people whos forget they're in public.

and you should be mad at simple things that are unnecessarily complicated. but you're not mad, because you're trading with e*trade, which isn't complicated. their app makes trading quick and simple so you can strike when the time is right. don't get mad, get e*trade and start trading today. big earnings reporting today. some economic bellwethers. bank of america.

>> and hulu. >> and when will boeing get some good news in another carrier canceling its 737 max flights into the summer. as investors watch airline earnings for signs of fall out the final hour of "squawk box" begins right now >> live from the most powerful city in the world, new york, this is "squawk box. >> samuel l. jackson pulp fiction good morning welcome back "squawk box" on cnbc was that amanda plumber. do you remember where that was holding up the restaurant? ♪ >> i initially went to jackie brown so i'm on the wrong tarantino movie. >> that is a great soundtrack.

becky is off today right now the futures are indicated up 150 points. those are the best levels we've seen in the morning. nasdaq is indicated up 28.38 s&p up about 10. flip the board around. there's the. >> don't steal my lines. >> i'm doing it totally facetiously. because if i do it enough maybe you will stop. anyway flip the board around. there is 2.57% >> okay. let's talk about news today. couple things. the big news asset manager blackrock reporting quarterly profit of $6.67 per share. revenue also inline with forecasts and you can see the stock right now trading off just marginally we should say earlier this morning blackrock chairman and ceo larry fink joined us on set to talk about the quarter. said investors were a bit timid in the first three months of the year and that if anything right now they run the risk of being

underinvested. that is his market call. >> i think we have a risk of a melt up. not a melt down here despite where the markets are in equities we're struggling in time especially now with central banks who are if anything more dovish than ever they are not changing their behaviors related to qe anymore. there is a shortage of good assets >> fink also said blackrock is seeing big excitement in fixed income we're going talk more about that later this hour. >> a big media move to tell you about. at&t sold ownership stake in hulu for about $1.4 billion. that leaves walt disney and comcast as hulu's owners disney owns 60% and sale values

hulu at $15 billion. the competition is netflix and amazon prime video streaming service and of course there is a newly announced disney plus announced last week. >> busy morning for heavy hitters including results from two dow components dom chu joins i now. >> i'm here. >> give us the numbers and then maybe we can talk tiger. >> all right. >> that presidential medal of freedom. >> the highest civilian honor. let me get to the number and we'll talk tiger's big honor there. earnings season means earnings movers we'll start with banks bank of america the latest to post results america's second biggest bank by market value posts a fractional gain pre market. there young see johnson and johnson. 1.9. profits better than expected for them as well they had better precipitation drug sales there let's see what pops up here. i'm not sure

united health, earnings were better there as well so were sales. so were the forecast for full year profits in sales. also helped by better sales in its optem health services unit fast growing unit there. shares up about 3% and then we'll finish off with bank of america that is because that last one to pop up here consumer lending a strong point here three green moves. johnson and johnson and united health, both stocks dow components part of the reason you are seeing the highs in the pre market so far with a 150 point game in the dow futures or at least indicating an open of the 150 to the upside. >> we'll be quick. first year of the pga is next. and beth page. and tiger won at black page. and u.s. open and at pebble this year right he's won there too this could be amazing. >> this could be really amazing.

and royal port rush of course is the other major we haven't talked about yet which is an nbc broadcast proer property we should be watching that aka the british open but when i think beth page for the pachg, the two names that gave to my mind as being players that course is suited for. tiger woods and brooks koepka. >> i heard people on other networks talk ab how someone called and turn on the last hour of the masters they had no idea and for me i didn't miss a swing four days probably i think. but do you remember -- sorry andrew but that putt that brooks koepka missed on 18. >> yes. >> that is the same putt bubba had. everybody is always there. that is where the flag is on the final day. and it either goes right or left it can do either and brooks koepka had just seen someone else miss it on the other side and played it where

it should have and then it would have been tide. >> i don't want to judge because i've never played that course. >> what happens at aught stays at augusta i have not admitted to playing there. >> having watched that putt from that pin position up top all the time it seems like it is on a ridge. >> can could go off the front of the green. everybody is falling asleep here join us for more on the earnings mike santoli >> thanks for putting everyone to sleep now. >> mike, golf clap >> more than i usually get what's interesting about the mornings number is they are from three big earnings companies that have been lagers and they are the lager group. >> if you were worried about any

macro message in bank of america you didn't get it. steady as she goes that is good news and the bad news i feel like for the big banks because most of the story is coming from cost discipline and tons of buy backs and dividends. yeah they are cheap but is it the right part of the cycle to get excited? >> and big pre market moves in the sector that is going worst year to date will there be rerating particular when it comes to insurers >> that is the big question. won't be just be the one day bounce for unh but i think it is one of those issue where is the business model question surrounding the healthcare providers right now how much of that middle man action all the rebates and noise in there. >> can you explain the reaction? maybe we can bring up the blackrock right now. given the conversation with larry fink stock actually fell at least in the pre market on that news.

i thought they were in line. i didn't expect this to move this way. >> the revenues were in line. >> i think they are roughly in line you know, i think there is no massive upside to flows. >> look now it is popped back up again. >> at the moment looks cheap. all the asset managers look cheap. they have traded like they are a disrupted group. >> i think they are. >> -- larry fink this morning. exactly. is blackrock's effort to try to get ahead of a. >> i asked him about the core i shares which is a lower fee product and he said it wasn't as if that part of the business was increasing and he is able to increase overall margins because of other parts of the business so has blackrock i guess the question, has blackrock figured it out to save its overall marge within the other lines of business? >> i think if you look at other industries the massive scale players can withstand the disruption best. and blackrock was constructed once we got the etf.

they became somewhat agnostic as to who uses ash advisor or not so they tried to be a little bit kind of everything to everybody if they could. by the way bank of america. i feel like the big banks are acting that way too. there is massive growth in fin tech if you look at the way paypal and square trade. people are excited about something going on in personal financial services but just not when it comes to the big banks and bank of america's press release. they highlight number of mobile accounts number of online log-ins they are trying to highlight the fact that hey we're here we're trying to participant in this. >> down right now. thank you. mike santoli. >> coming up p consumer confidence around the world. new data aiming to gauge optimism and pessimism in developed markets versus emerging markets and the numbers are global in scope. fascinating results in a survey you don't want to miss

including the worlds most upbeat country. it might surprise you. it is not venezuela. stay tuned you are watching "squawk box" on cnn bb you've had quite the cc. i've had some pretty prestigious jobs over the years. news producer, executive transport manager, and a beverage distribution supervisor. now i'm a director at a security software firm. wow, you've been at it a long time. thing is, i like working. what if my retirement plan is i don't want to retire? then let's not create a retirement plan. let's create a plan for what's next. i like that. get a plan that's right for you. td ameritrade. ♪

i can customize each line for each family member? yup. and since it comes with your internet, you can switch wireless carriers, and save hundreds of dollars a year. are you pullin' my leg? nope. you sure you're not pullin' my leg? i think it's your dog. oh it's him. good call. get the data options you need and still save hundreds of dollars... do you guys sell other dogs? now that's simple, easy, awesome. customize each line by paying for data by the gig or get unlimited. and now get $100 back when you buy a new lg. click, call, or visit a store today.

welcome back to -- welcome back to "squawk box. futures right now. see, we'll give these all to you. up hundred and six -- look at that those are the highest levels of the day are they not. >> very exciting. >> and the s&p up 11. >> thrilling. >> and the nasdaq is indicated up 32. can i just -- i want to look at the s&p quick. that is going to be well into the 29s. sorkin. >> hot diggity. >> close to the highs of the year. >> and we're getting good whistles from.

>> the whistles dripping with the sarcasm. what if you had a survey that asked everyone in the world how they feel about everything that is not a hypothetical the board is out with fascinating data this morning. steve joins us with more. >> good morning, melissa we've been doing series on big data this is huge the conference board releasing its global consumer confidence index. a quarterly survey of 32,000 online respondents in 64 countries. it shows confidence just 1 point below the all time high which was last quarter having recovered smartly from the recession and 2016 third quarter. redder or darker is where it is highest and lowest is blue who has the highest confidence in the world

india. why? we're going to find out in a minute but why india i don't know followed by the philippines and other by the way southeast asia nations. and u.s. is also high at 119 where are the most pessimist snick. >> i was thinking india, its stock market hit a record high overnight. >> correlation maybe we're talk about. and look at these places russia has the lowest number france, italy and of course argentina. so there is correlation. this is an online survey but there is correlation with what's going on around the world with the global confidence index. it is not your man in the street kind of thing. obviously in some developed country, developing countries the idea of people being online would put them in the upper ranges of the elite there but still the confidence numbers fall let's bring in our guests. chief economist at the conference board bart, how do we use in this?

what's this tell us about what's going on around the world? one thing interesting here, our good friend jim cameron has the idea of there is a bull and a bear market somewhere everybody in the world. >> that is shown by these numbers. the heat map some hot places some really cool that is always true. having said that as the index is more than 100. 106 right now. more optimistic consumer thabs pessimistic. and that is an important piece of news. >> you asked three questions on this thing and one of them is is it a good time to spend and what we did is we put together a list of the top five places. and i was thinking if i was going to be making this part of my investment thesis i would want to know what people think in a country as parts of answer to this question and the highest country, india vietnam. philippines, u.s. and denmark. what is the consumer spending outlook koorlt with?

>> i think the most important thing is just spending intentions we should be careful that spending intentions doesn't mean going to spend actually. it does mean again we have more people optimistic about the intentions perhaps do this down the road and exactly those countries are the ones we find a lot of optimistic consumers. also on job prospects and personal finance situation these are all very mature correlated >> -- impacted by the elections right now. >> i think part. but frankly india has been historically very high it is important to emphasize particularly more developing or emerging markets is that this is an internet survey not representative of all the consumers in india but in terms of the growth and depth of the market.

indian consumers are the optimistic that is why they are so high. >> can you put up the line chart we started with. does this lead, lag? is it a coincide st. a good leading indicator? and by the way huge contradiction it did turn town a little bit ahead of the recession maybe. >> two way the look at this consumer index one is where is a good place to find the consumer. and other is the economy for that you need to lock a time series what's very important here is it is historically high lot of optimistic consumers but you can see its been going up for quite a while and it is beginning to peak a little bit it does suggest the consumers probably reach a peek in terms of optimism. that doesn't mean a downturn ahead of us. but we need to continue to watch this we do know that consumer confidence

in the u.s., for example we do know that it tells us a lot about where the economy is going to go. >> but there is a contradiction here what everybody is talking about is how the world is weak global weakness. every other word out of the fed is global weakness how does that compare with this survey which shows your a point from the all-time high. >> consumers are only one of the economic agents. businesses and banks lot of pessimism is there. but consumers are important. count between 55 and 75% of overall gdp around the world depending on the country where you are. consumers are not really too much concerned about interest rates and what the central banks are doing going to do. what they are concerned isn't the job prospects. personal finance and wages and sensitive to shock if there is an outlook but if somebody bad happens. we saw --. >> i'm in the going to get into the issue of whether or not your

confidence correlates with your economic system. are the socialists more or less confident in the outlook than the capitalists? >> well we haven't done that research yet also it is an interesting project you are talk about. >> it is all we talk about at this table. >> -- going talk about. >> it i'm not talking about. >> but what joust -- >> i'm talk about irt. >> the heat map the most optimistic are north america, asia and pacific not so much europe >> there is a lot of average countries that are kind of like. guy, that is the middle one. it is not that one where the gray countries are you know, your sweden. your denmarks. they are okay. a little cold. >> yeah but, you know. >> cold is dold. >> it is forbort realiimportanta bit of a culture here.

-- south korea always below 100. if they got to 100 it is really a big deal. >> that's buy. >> that's a buy. >> the south koreans go to a hundred -- >> -- sell indicator actually. >> so pessimistic. >> thank you bart. thank you team coming up when we return on squawk this morning. it is airline earning season united set to report tonight just after announcing its canceling that boeing 737 max flights through early july we're going to dig into what analysts want to know from united and what that company's results could mean for american and southwest which is coming up next week. talk about it ter afthe break. talk about it ter afthe break. you are watching squawk on cnbc. make sure you're working with a wealth manager who can grow with you.

cfa charterholders have the investment exp to unlock opportunities other advisors might not see. learn what a cfa charterholdr can do for you at therightquestion.org [kno♪king] ♪ memories. what we deliver by delivering.

we're look at the market that wants to open hire. s s s&p 500. both companies beating top and bottom lines on reported earnings earlier this morning. nasdaq up 28 points. netflix higher after an upgrade and price target increase ahead

of its erpt tonigharnings report >> this in france. notre dame fire. initial findings suggest it was an accident in an attic where there was renovation going on for a while. one firefighter was seriously injured. new this morning some of the fraps's richest citizens have pledged millions to help rebuild the theater. names behind brands like gucci and others >> -- and his wife donated about $10 million this morning that news a little before 7:00

this morning and i imagine we'll hear likely about additional donations. >> yeah. it was not as bad thankfully as the worst case scenarios that were being talked about yesterday. those are the two towers that when you stand there looking up where you see and where you enter. but the roof which was hundreds of years old 500 years old or something like that the beams were very from individual oak trees and its been pointed out people don't realize, gothic structures that there is so much flammable stuff but a lot is wood from years ago. and that's what they lost. but a lot of the interior apparently and the vault didn't sustain as much damage as was feared it was tough to watch. it was going on for hours. >> eight hours. >> sickening feeling in your stomach of helplessness. and just agonizing to watch that because, you know, everybody knows about the eiffel tower when you go to paris

but that -- that's not that old, right? and this is what everybody thinking of. >> and happened during holy week which is even more trying. >> day after palm sunday even. terrible >> bring you more updates as we have them. more flight cancellations for boeing 737 max jet what's the sympttock impact for airlines that can't fly their own fleets, and be boeing compensate them. next on "squawk box" on cnbc whe! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.

welcome back to "squawk box" on cnbc live from the market site in times square sears shareholders can expect to receive nothing. get nothing and like it. part of the retailers bankruptcy proceeding that was made official this morning in an sec filing sears expects to file that which part 11 reorganization plan within weeks and two economic reports are

ahead this morning march industrial production at 9:15 eastern and the monthly sentiment index from the national association of home builders released at 10:00 eastern. netflix is set to release earnings after today's closing bell the company is expected to erne 57 cents a share expected to be 4.5 billion dollars. >> let's take airlines united continental reporting its results after start today. delta beating estimates when it reported last week joining nous now for a preview good morning help us through the united piece of this and try to help us also understand what it means to the other airlines including southwest which we're going to be hearing from next week?

>> for united, from a max standpoint, i think they have very little exposure about 1-2% of their capacity is on the max. but that kind of increasingly grows awe you get into the end of year. up to about 4% of their fleet was supposed to be in max by the end of the year. it is easier to manage through in the off peak season you have extra capacity. but into the peak summer season, you have seen american and southwest canceled more into august time frame. it is going to get tougher to come accommodate that as an operator you want to fly as much as you can in the summer demand is high and good pricing as well. it is going a little tough for them and put more cost but as you implied earlier there might be some opportunity to get some cost back from boeing eventually but maybe not immediately.

from an industry standpoint. i think it could be a good thing because kind of keeps supply in check and could mean higher prices for consumers >> higher prices >> speak to what you are expecting in terms of results this afternoon and relate that back if you could to delta, which did beat >> yes so delta had a unique american express credit card agreement adjustment that really helped them as well if you take out that contribution, which is real money. not to dismiss it. but from a read through to the group delta kind of came in on one q unit revenue trend and their 2 q unit revenue trends actually did beat expectations so for united early march they came in and said they are probably going to be somewhere the midpoint of their 0-3% passenger unit revenue guide we think they might do a little

better and in 2 q i think most investors expect another 0-3% guide. we'll have to see. general expectations are for inline 1 q and similar to slightly is better 2 q. >> what is your outlook on -- think we just throw it on the screen but there was a little confusing there. what is your outlook united continental. >> we have a market perform rating so we don't have a target pla price. but the group is well situated we just see better risk reward in some other airlines for united being exposed to corporate and more international exposure sets them well up for the first half into the second half they have some tougher comes but again i think the group will do well. higher fuel prices is important for the group. but i think, you know, capacity is going to be managed well and the group will do well. >> by the way, what are the implications of jet blue's

announcement in terms of it doing these trans atlantic flights? >> we'll have to see as the 2021 event. it is clearly a naturally next step for jet blue and it is going to be new capacity into the market and especially, you know, capacity that could pressure premium cabin pricing for legacy carriers. so it is definitely something to watch. a couple years out and a lot can happen between now and then. >> have you done the back of the envelope analysis if you took all 37 maxes out of the major carrier schedules to the end in fact year? when it was initially grounded it seemed like lot of analysts were very opt optimistic in terms of the time frame to get it recertified and back in the air that time frame seems to be longer and longer we've seen downgrades on shares of boeing in particular acknowledging that it will in fact take longer so what is the worse case?

>> it looks like, you know, boeing clearly is working on a solution, has a solution but i think just there is going on the a lot of scrutiny and rigorous testing of those solutions. and there is also going to be lot of focus on the type of training required. the systems are so similar to the ng version that before it was mostly kind of ipad training on the differences and we think there is going to be at least computer based train and the worst case scenario would require simulator training which would take longer because there are not enough simulators out there. looks like it is going through the summer and for southwest, united and american the longer it goes the more of its fleet, the boeing max aircraft supposed to be. so it gets suffer and tougher to offset the capacity but easy ner off peaks. so i think we're seeing kind of the worst case scenario for the

traditional u.s. airlines for the operators. for the other airlines there is actually probably a little bit of benefit we think you could have a point to a point and a half of capacity coming out of the market that doesn't sound like a lot but if you are growing 4-5% that is a meaningful amount of capacity that can come out so it might actually be good especially in the off peak peters when we have a little too much capacity. that could be short-term good news for -- >> so interesting the bad news turns into good news >> of course for someone out there. >> -- really like spirit here. >> spirit. i don't put them in the traditional airline category. >> what do you put them in >> i don't know. very super discounted. why do you like spirit just so we know? >> we think they have invested a lot. think didn't have to work too hard in the past and now it is

much more competitive environment for them and they have invested a lot i think it is a very different airline that is going show good earnings growth and recovery that is in the ulcc category monk the larger airline, delta is our top pick. >> thank you great to see this morning. >> coming up key takeaways from bank of america. mark grant will join us in minutes to break it done you are watching "squawk box" on cnbc at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved.

oh, sir. that was my grandma's. don't worry, ma'am. all of your stuff is in ok hands. just ok? they don't give two and a half stars to just anybody. here you go. what's this? it's your piano. hold this for a sec! we don't have a piano. no. but the neighbors do. just ok is not ok. especially when it comes to you network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing.

internet that puts alright boys, time to eat. that handles anything. [ crowd cheering ] that protects what's important. and reaches everywhere. this is beyond wifi. this is xfi.

welcome back to "squawk box. ahead of the open we're triple digits in the green. dow opening about 150 higher dow 26 point, s&p 500 up about 130i7b9s >> netflix up higher 17.4 million viewers monday night beating the previous high of 16.9 million who tuned in for the season seven finale. the largest night of streaming activity every for hbo and the

premier was the most tweeted episode in series history. "game of thrones" has managed to build on its own ratings every season not bad to watch it a second time because a lot of the people that eventually like are really significant you didn't realize when you were watching the first couple of episodes that they were going to be there through the entire. >> and the ones you thought were significant were -- >> yeah and some -- they were gone by the end of the -- or the red wedding at least uh-oh. giving too much away again >> stop. after a successful launch landing of its falcon heavy rocket last week spa spacex the booster toppled over and into the ocean spacex says no one was hurt and the loss of the rocket bounty impact future missions. >> i read something very

interesting about, you know, we've given elon musk lot of credit for the fact that the boosters can come back on land and what that is supposed to do in terms of saving from an environmental perspective and money. >> yeah. >> but apparently the cost of rejigging them because they have to do lot of stuff once they get them back. not clear what the savings and the differential in the savings actually. >> the that much to money to refurbish. >> i was very surprised. and long-term it shouldn't be this way in the short-term it is actually very expensive to retrofit them. >> that guy, he's in the very beginning and very -- remember all the stuff that happens to him. >> why do you keep talking about this. >> why are you talk about this >> -- not giving anything up just saying he's in a lot it have future years. people are sensitive

earlier on "squawk box." didn't say anything about darth vaders being luke's father look like that. blackrock ceo larry fink talked about the relative stampede into bonds lately versus equities >> seeing huge excitement in fixed income so many -- right many people thought we were going to be in a period of rising rates >> right. >> we saw huge underinvestment and people had a rush into invest into fixed income we've not seen that in equities we've not seen that, i miss that and i'm running in >> its never stopped you mark grant, chief global market strategist at b riley fbr. oh boy right back to casino robert dinero glasses. good the see you mark. >> good to see you joe. >> did you hear that intro

a stampede into fixedic income do you have a different view >> i think larry is right is what's caused this has been the fed changing courses and saying we're going to leave interest rates the way they are right now. also if you look at the other central banks of the world bank of japan, bank of china swiss central bank you are at 19.4 trillion of money created out of nothing but thin air and when you equate this, so you understand how important this is nmt united states we're about 8% free cash flow for a $22 trillion company 19.4 trillion is totally free cash flow and equates to about

$230 trillion. so we're seeing a big change what the fed did in december was a disaster and we're seeing a huge change of attitude in the fed. >> wii seem to have a bounced. talking about yields the 10 year bounce off like the low 240s i don't know if it got under 240. are we done with the test of those really low yields, mark? >> no. >> no? >> no we're not. and i'll tell you why in my opinion, joe right now when you look at the world. so this is a little global view here every country in europe. including greece, portugal, spain. every country in europe if you look at the 5 year treasury versus their yeeds we have the highest yields than

any all of those counts including japan and i think we're just at the beginning of a cycle where interest rates go even lower and the other thing i would point too is that the corporate bond index and the high yield bond index are even up more than the government bond index which means that you are seeing compression in terms of riskier assets and i see this continuing for many, many years >> i wonder what all that says about the relative valuation of stocks since multiples are based on interest rates and whether there is any alternatives but it also doesn't sound like you have a rip roaring global growth forecast either. if it stays low. or maybe it is based on inflation not growth >> no, i do have a positive

outlook on growth. and i have a positive outlook on the equity markets and i will tell you why because these lower borrowing costs. and trump is right about this in my humble opinion. it is not a political comment. be thank you lower the barwin cost the better for the economy and the better for the market. and i see it setting to even lower raced. the ecb right now is in lending money cheaply to their banks japan's central bank has balance sheets that's equivalent to their entire gdp and i just see this continuing because you can't withdraw this money without causing a major infraction in the markets. and so it is going to just keep continuing, which is why i think we have a radical alteration it used to be -- i've beenen wall street 45 years it. used to be that is it central bank wars major part of the

game my opinion joe now is that the central banks are all of the game they represent everything that is going happen basically. you are going to have individual companies that go this way and that way but with lower barwin costs it means that refinancings are possible means that high yield bonds, new offerings at much lower rates and i think the fed is going to back flip and reverse course that is not going change. >> it will work if there is no inflation, mark. let it ride. >> led it ride. >> the only time you really worry is if we're missing something on wage price inflation or some horrible thing that throws a wrench in the works, right >> yeah but we haven't seen any of that. and i don't expect any of it so i think it rides, and i think for the united states to be competitive against japan and china, the fed eventually, the next move in my opinion is going

to be they are going to lower rates slightly so our rates get more equivalent with the european rates >> wow you know, you haven't -- you are not really new to this party either, grant. so i don't know. it's those you see these. >> i hope there's some reason why you wear those i wander around ft. lauderdale, and they're called like the goliath -- >> because they're so large? >> they are in style that's what the we used to do the elton john. >> 23 years on "squawk box" and i'm still with it. >> wow in style good that you are, anyway. thank you, mark grant. >> when were they in style >> wednesday >> one big happy family.

addams family. the bank started the analyst call a short time ago, so wilf has been listening in. what's moving? >> i think a couple despite -- the first as we talked on earlier, revenue fractionally missed, only flat year over year people got spooblgd yet. but a bit more you other point, at the core retail was so far good, and the earnings were good the capital markets were a bit soft the other factor i would just say including today's declines,

which seems i've missed a key part of the call as it just slid to 2.3% decline, so i'll jump bulk on the call and have a listen eps beat t. >> wilf, thanks. jim cramer joins us now, you want, up and away so far today >> no, not at all. unh, obviously it will be a -- i wouldn't go nuts with the stock.

the thing is it didn't go up there's a lot of good lines, a lot of good things to be said about dictal, companies, technology is king for banking look, it's a good day. >>ic the headline is crossing, bank of american expect net interest to be up at half the pace of 2018 that's got to be a concern we're not getting that, and we're getting beats based on expense controls >> well, i mean, look, that's a great point. the expense controls are amazing, but the loan growth was pretty good. when you look at the deposit growth and loan growth you have a pretty good story. >> look, i think this is a story of leverage. i think it's starting to get

great leverage off this fact they've cut the work force, putting in a lot of what i regard as being, let's say, more productive people, in the sense there's a lot of people who can be eliminated because of the digital, so i like the quarter, but i also know that jpmorgan, boy, it's tough to beat. what a quarter that was. that was remarkable. >> just here mark grant was talking about rates staying low. you were kind of early on this. >> you'll see in the actual america, not the financial america, they thought march would be good. march wasn't they said there were a lot of companies that took too much inventory in betting the tariffs would go up, so in the real economy, the transports, you would say that mark grant was right. i think that that's something to consider, because j.b. hunt is

the second-largest at the time trucker, but it was a very downbeat call and recognition that commerce is slowing bank of america -- there's still money in the banks, but they're not exciting, other than jpmorgan. >> thank you, jim. we just want to mention real briefly, talking about donations coming in all morning, to notre dame to help restore and, the l'oreal family. >> and betancourt family >> $200 million in addition to the donations that had put to 300 million. the kravitz family donating $10 million this morning, so the donations rolling in from folks all cross the world. >> just knowing that seeing that is just -- the two bell towers, which were -- really heavy multi-ton bells, if they had

fallen, if they had lost those, those would have collapsed as well, and notre dame as we know it would be no more. >> those are wonderful, wonderful dough flagtoe dez bma this morning we'll come back in just a moment, as he "squawk box" rolls on

when you retire will you or will you just be you, without the constraints of a full time job? you can grow your retirement savings with pacific life and create the future that's most meaningful to you. which means you can retire, without retiring from life. having the flexibility to retire on your terms. that's the power of pacific. ask your financial professional about pacific life today.

the call is on interest income, not so much it is past quarter but on the guidance for the year ahead the denofrio saying it will only go about as half as it did in the previous year it's not in the same camp as wells fargo, a bigger cutting guidance, but not as good as jpmorgan or pc -- so just a cutout of the momentum it's still up, as we said, but sliding now, over 1%, given that

guidance. >> wilf, thank you wilfred frost. >> thank you for hanging out, melissa. will you be he tomorrow? >> all week. >> you too >> me too. i'll be here too "squawk on the street" begins right now. good tuesday morning welcome to "squawk on the street." futures in a good mood, as both unitedhealth and j ann are answers j post a beat and a raise. europe is green, china is up as well we begin with the earnings boost for wall street. the stocks set t