let's get a final check on the markets. we were in the negative territory. a couple of them traded higher i want to thank will for being here we'll see you later tomorrow, folks, right now it is "squawk on the street. ♪ good tuesday morning, welcome to "squawk on the street," i am carl quintanilla with jim cramer and david faber. futures are green. as you heard four dow component, utx and verizon,all beat with at least two raising their guidance europe is getting back to work today. oil hits 66.19 iran will continue to export our road map begins with

earnings, striking distance of new highs. today's headliner dow component like verizon and coke. lyft's lift, that ahead of course of uber's big ipo is expected with minimum. >> twitter is surging on surprise user growth, is it a sign to effort police the platform are starting to pay off. we'll start from earnings from dow component. utx beats the top and the bottom line raises their guide. p & g and coke, better expected ruls stay tuned with james quincy's interview about an hour from now. >> when you speak to the company, you are kind of amazed that it is just better and better every quarter

a lot of what it is, when you see companies like this, a lot of it is coke zero sugar we have new products it is just a nice quarter. now, pepsico is unbelieverabable >> we talked about the 5% or good afternoon i c organic number >> we got proctor up two >> it is a great opportunity nelson pelts, there are some just amazing, you know -- they have really boosted certain areas. grooming is much better and feminine is much better. >> we got to hand it to you that you said months ago that the clorox and proctor and colgate

would raise prices whatever commodity did. >> commodities are coming down we heard that on kimberly-clark. i remember when we used to employ for plus 3. paulman, wow, he really knows what he's doing. >> it is funny how all that changed kraft heinz. kilmberly's number yesterday >> you got it having double digit. you find there are markets particularly like china is so strong for a lot of company. beauty is up 9 for proctor it got rid of a lot of the negatives.

taylor has this huge plan and pelts then joy it is a one-two conversation my friend, amy chang, is on that board. her company is qualify by system >> p&g is down coke was not up as much as indicated. >> proctor has been hitting a record high. >> that's important to point out. proctor right now, is the one year chart of proctor. >> it has been the best. it made people feel like i can own blue chips just like the old days kind of like our parents >> you think taylor would really say it is headed with peltz.

>> he's like lincoln, he would doll it. sorry, sometimes i get it wrong because lincoln -- divided pretty good. >> we worked our way through the financials, we are in the middle of the industrials and starting on thursday, it is going to shift to tech in a big way, are expectations any different there? >> one of the great things when wells fargo did today when they trashed apple and they're a bunch of jokers, no, they did not do that. facebook just appointed two adults which is kind of -- >> what do you thisnk about thi? >> oh my favorite college >> what about it knowledge is good. >> drunk, fat and stupid >> there you go. facebook could surprise.

twilio, i am watching certain ones that was a five yesterday. i am looking at the bulk of these and i will tell you the ones that i think will surprise. >> tell me >> i think apple >> or alphabet >> it is interesting yesterday i read a guide, 10% of their funds of alphabet, value guys have it >> how could they not have it? >> they pay their fines this month. we pay the billion dollars library fund >> we should get back to the investor zone, utx united technology reported numbers of top and bottom line ahead, margins looking quite strong and eps, guidance is higher and higher at the low end and the midpoint is a couple sense above and at least many on the streets in terms of earnings per share. otis is strong

a little bit of a drag was carrier and a bit of a question was whether there is some order decline of carrier and otis. >> you see pratt whitney >> 10 cents coming out of earnings head winds related to that some of the operators getting pushed out >> and 20% addition. >> the service revenue is future ca fantastic here >> it is not a great statistic i got that myself. >> did you count everybody in the world and asked them >> no. i got from management. >> i would like to see your

methodology on that. >> i interview people when i am on the plane have you flown before? >> i don't think america is the place -- >> no, it is not >> but china >> it is more like india >> china is very strong. it is these other emerging areas. china is were strong they did not steal columns but ge was not there to compete. i think that's what made them to think to buy that expensive piece. how about if honeywell had bought them? would that be something? really unsung and does not seep. >> we talk about him a bit >> he's not a show boat and does not want to come on "squawk" or our show >> he was on "mad money" once, he was extraordinary >> some companies have different kinds of media strategies and some of them don't involve going on television. >> if it is working fine, why

screw with it? >> because it is an imperative for us >> i am working on net sequel. >> they should do what you want to everyon though it does not ft in their plans >> we'll talk about twitter. lyft shares are up in the market at least 7 with a buy or equivale equivalent i am just looking jp morgan and jeffery and all out performed and credit suisse and reymond james. >> don't forget piper, hailing is a $500 billion market by 20.40.

when i do the 20.40 "squawk" and we hit that number -- >> what a warning? you are right with the ceos, they don't need to come on every head wind they have done that, the fed and the dollar and president and china. these things turn out to be problems >> it is funny you mention that, bill miller's letter talks about the crisis of investors that they wound up being risks and voluntary foe in his words and that's why there is more room to right. >> we have so much money coming out of this market during the december bear market, people gave up >> they threw in the trowel very quickly. >> did they? >> they had that morning when we came in and china was down and

we had the clash crash etf running over them. you know we had a lot of big money managers come on and be bearish. >> it is still there >> you want to hear from fink but not dalio? >> i think it is wonderful to be positive it is wonderful to be positive don't forget that. all the rich people are incredibly great >> yeah, that's great. >> right now i want to go there. i never met a rich person i did not like >> rich people come on the show and they tell you look out >> we stick that -- >> billionaire in front of their name we got to listen >> the pleasantries is like a

sack of potatoes >> when we come back, some quarterly numbers. we'll look ahead of that stock take another look at the premarket. we'll get to lockheed and verizon and kraft heinz and tesla. more "squawk on the street" back in a moment. this is huntsville, alabama. aka, rocket city, usa. this is a very difficult job. failure is not an option. more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential.

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twitter is up sharply in the market monetizable daily and active users. this is the new metric the company is emphasizing and consensus up 12% to 134 million. this is the last month we'll get. we'll get monthly active users revenue is up 18 with dailies up 11.12. >> a lot to like here. i agree with their dailies a lot of it is from specialized things yesterday they had a camera on hart, just on hart from the

rockets. harden >> you were swallowing the end there, i thought you were saying hart >> no, not josh hart >> major baseball got tremendous coverage, they're doing a lot of sports what they're becoming is a place to go to, to talk. "game of thrones," the cheap method of advertising is hbo "game of thrones" is one of the most incredible things, i don't understand a word of it. what is it i am watching season four number four and she's like oh my, here comes -- against the knight, twitter is the place to go believe me, i gave away nothing there. that was not a spoil alert >> most hbo shows don't have

their own handle "game of thrones" does >> that was a great way to get to people. twitter gotten together, they clean up the bad guys which means a lot more people are going to advertise again >> have you seen it? >> "game of thrones. >> have you seen your own feed getting cleaned up >> i had about 40,000 people taken away and since then i gained about 60,000. add both of them, i have about 1.4. >> the president tweets that it is too hard to on board the platform, calling the company, they had discriminatory practices that's hard for people to sign on he wants it easier to get the word out >> he did not use on boarding, did he >> he said it is too hard for people to sign on. >> maybe he got a lot of children >> that whole generation knows

what >> i feel with twitter they seem to have periods where they seem to be getting it together only then to fallen into another problem area your sense now they're going to have some momentum >> i think they basically say listen, we are willing to kill numbers in order to save them. they really do a great job if you ever reported anyone. they're out. i mean just like stalkers, they're out. dave, i suggest that if your people don't like what i hatheyv to say, you can block them >> we are sure to get both sides of tesla >> that's just musk. >> we should point out a lot of the strengths was u.s. centric u.s. revenue up 25

>> they would say listen, much more room. they can say they got premierly, that would be good i like it. it is no commercials >> yeah, has not made it into the u.s. the way it has. >> not yet >> torino. >> a lot of spanish cities >> yeah. >> i can name a few, madrid, they're pretty good. >> do you think any of these have implications for snap tonight? >> snap got great numbers, it kind of robbed it. proctor is down because ridiculously they thought -- the one i keep thinking about is facebook i was looking at stitch fix last

night trying to dress it up better, you know >> sure. >> this is the common thing, you on board by facebook facebook is your on board. it is the easiest way to on board everything they never lost people i really think so. >> it talks about credit card companies, much more aggressively and the only area they really increase >> kimberly-clark. >> facebook knows when a teenager is depressed, they can actually target that they don't sell it to an advertiser >> my wife is trying to say listen, i will talk about this endlessly and you will see it coming up. i said we"well, you do that anyway." >> we'll get cramer's "mad dash

in a minute, take a look at the earnings situation on this first busy day of the season, it is really good. we'll be back in a minute.

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♪ all right, we got about 6.5 minutes before we get started on the opening bell here. you missed tuesday

>> you are a lab >> our first "mad dash," where are we headed? >> you did some great reporting last week. what it says there could be a multiplier move if he's getting it right he's getting the benefit of the doubt. mi raising price objective to 168 a lot of this is the film schedule they'll own every weekend, last night the "avengers: end game" came out, he told me i would have to go see it. i did not get special treatment, not one ounce. this is an example of fox, synergy. >> i interviewed mickey, he said nothing, another guy who shot me down this is an amazing story

notice this, everyone was afraid of the fray. they're like oh, iger is going to lower, oh, espn and all that. no, vindication of bob iger. >> without a doubt >> abigail disney seems to have some issues with compensations yesterday. streaming seem to caught everybody's attention in a positive way film schedules in a positive thing. >> price >> at some point we'll talk about the sales. that's not positive. investors don't seem to care >> no, when people talk about executives, hey, that's an issue that senator warren, it is going to resonate from wall street because you can make the case they make so much. >> yeah. >> i think they do make a case like that. >> is the shareholders happy >> i salute you and bob iger

>> both of us. >> we got about 4.5 minutes. we have not talked about verizon this morning so let's do that. sb iharos on tonight >> we got more "squawk on the street" after this how do you gauge the greatness of an suv?

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you are watching "squawk on the street" live from the financial capital of the world the opening bell in just over a minute's time. busiest day of earnings season so far with four dow components. keeping a list of those raised guidance like proctor and utx and verizon. even before today, j & j and -- >> there were no bumping numbers ahead of the quarter you have united technology, no china deal fed being tight and no one raised them. that's why it was so easy to beat you normally would taken numbers up had there been a trade deal or the fed been so strict.

>> you have this greenfield vibe where you have a lot of companies, the numbers were too conservative >> j&j for sure. when the ceo attacks medicare, he reported -- yeah, nobody raised numbers and so this is what you get that's the opening bell, s&p 500 at the cnbc realtime exchange. at the big board is x 4 pharmaceutical and tortous we have not been able to chat with you in the news yesterday that they're going to waver these and let the waver expires. >> obviously a lot of this started when the saudis cut back

so the saudis can flood. we continue. >> i don't think we spend enough ti time when i spoken to everybody, pioneers are in play and why are these in play? i spoke with shechevron, look o, as pipe build out, we are going to be able to produce much more, not just a little more but much more the president is not coherent as i would like on that issue because he's been the emirates and saudis can make up for that. i am not concerned of the price of gasoline going up cars they ride on much less gasoline a lot of our economy switched in natural gas. >> that's not e centric. >> goldman, does it really change their forecast? >> no, it does not change.

>> everyon with a loss of a biln barrel a day >> price line stocks have been hard but, everybody has to be focused on the remaining premium place you have to. >> okay. >> it is up and down >> they got money ready, david >> they do >> occidental has not yet made a decision >> they can't get into chevron >> your point is well taken. it seems unlikely because the idea is chevron is going to raise whatever they need to. ok occidental and its ceo is still

trying to figure out >> i think $60 billion that's for exxon. >> pioneers is 25. you got sheffield. he came back he's a caretaker pioneer can go for 220 speaking of the stock that goes up everyday, have you noticed qualcomm it is the mcfadden, in philadelphia >> qualcomm is up. it is amazing. >> think about whether this stock was -- >> roll the dice, david. >> have you seen a company roll the dice the way qualcomm did? >> when you read the transcript of one day of the free hour opening arguments we got seems like qualcomm has plenty of hours, it would have been an

interesting trial. >> well, it is going to keep ongoing. >> some of the memos and depositions they're able to uncover. >> really? >> we'll be interested in terms of who did have the best chips in apple's opinion >> you went from having a company whose dividend is in jeopardy to being the number one play for 5-g it is mr. 35-5-g. >> do you believe that tesla designs the best chip in the world? >> no. >> what is it called, xavier >> here is something tesla did they used an old model and jensen wong is not going to come out listen, here is the new model. the new model is superior. he did this before pt musk >> now it is pt musk

>> it is appropriate -- the must bread and muskets. >> that's a lot of stuff done. >> do you think he really mind being called pt musk >> yeah, here he is last night talking about it and not just chip dominance, his plans to have a million rebel taxes take a listen. >> consumers retaking today is that it is financially insane to buy anything other than a tesla. it will be like owning a horse for three years. fine if you want to own a horse but you should go into it with that expectations. >> because why you can sell it back into the robo fleet what's the financial qualifications of owning a

tesla? >> he'll take your car back. >> f 1-50 is insane. >> it is interesting of this cold story we got to get to it. you handed me -- >> warrants for about 1% of the flow >> the main thing, jim, the company is saying they'll allow amazon to return all of their stores nationwide they call it the amazon return program. it will affect the company's results to include other things that impacts with selling and general administrative expenses. they're assessing the impact positive impact in stock price >> amazon may benefit from that. they have warrants to buy 7.4 million shares at 69.68. >> he was on "mad money," talking about the 200 kohl's

cash how well it was going. that is the fake app short term versing long-term by the way, when you go to return with amazon, you got to go back to the store david and i are going to go shopping it is going to blow his mind >> i have been hearing it for years. >> i like the fact that you continue to believe it will happen >> i am a dreamer. >> i would be interested to hear how this came about of what the conversations were >> we knew they had a special relationship >> we have been waiting for the payoff on the part of kohl's >> what i think is amazing, amazon did not like to talk about returns. michel michelle gausse is remarkable and is a persuading individual

this is a way to distinguish it. amazon is not trying to be this is friends. >> this is anti-walmart >> they got this cute spot on amazon where you can bring your stuff back there they got them all over the place. >> this is the primary place >> kohl's if you can pull them right up they're in strip malls and they're pleasant to shop you don't have to do anything, you can throw a bicycle at them, they put it in a box, you don't have to do any of that stuff >> well, it is working out so far. >> they were trading at a 9 times earnings 1% warrant who knows, a lot of people feel that they can take it over, that's not michelle's plan how much kohl's cash that you

guys get laying around i got 100 splmackers of kohl's cash >> i got the socks on right now but i have a torn hamstring so i can't pull it out. >> since when? >> i don't know. i think when i stole second against the mets >> when you were dead lifting or squatting 500 pounds >> no. i tore when i woke up. >> jim >> brian goldener came on "mad money," he says inventory can be out of prison. ali's army finally cleaned that, whatever that was in the channel. look at this do you think it is done up 12? no this is the hasbro that we

remember brian goldener tonight up 12 is not enough. >> we should hit verizon we have seen a lot of positive response and a lot of earnings this morning, not the case with verizon. not a lot of surprises here. most of the analysts were looking to support, generally in line i had a chance to read over some of the calls which is ongoing. post pay phones are slightly slower they did have wire service revenue growth that accelerated. a miss on ibita. they did slightly raise the 19 guidance they did increase it a bit that does not seem to be doing much for investors, not right now on the call. the call did wrap by the way we'll give you more details as i take a quick look for the transcript >> wow, it is just a winner.

there is no need to get there right now. >> we'll hear from at&t, it is such a different company we'll certainly focus on net ads or whether their warnings. fios did lose, they did have -- >> "dumb and dumber. >> he's been dissing their metric using old english >> to be or not to be. >> i love shakespeares >> we are back with 29.13. let's get to bob pisani. >> we are up but not that much given the magnitude of the earnings speed semimarket leaders everyday. you can see that industrial and banks and healthcare is flattish i want to concentrate on the earning speeds because the numbers are again affirming that

these beat well above. united technology beats in double digit and whirlpool, coca-cola beaten by 4% >> the average beat is 3% per quarter. these are numbers way above expectations that we are seeing. guidance has been good overall that we are seeing here. lockheed martin is raised and verizon raised they raise low single digits world pool -- whirlpool. >> procter & gamble is down a little bit it was at an historic high at the close yesterday. it had a great run for this year let's look we got about 20% of the s&p

reporting so far we have 104 companies reporting today. they are actually -- these companies on average waited are beating 6% that's higher than normal. the amount they are beating by is higher than normal, almost 7% above what the actual reports are. that's why i am saying and had been saying for a couple of weeks that it is unlikely that we'll have the earnings recession. we are expected to be down earnings estimates about two weeks ago and now blended with that 1%. would that kind of beat going on, just 24% of the company reporting. it is likely earnings will be in the low single digit gain for the first quarter. that's quite a beat what we would have we are seeing some organic growth we had a discussion, procter & gamble reported 5% organic

growth it is impressive it is hard to move the dialogue. everyo even coca-cola, 6% growth. hard to move the dial in companies that are this big. united technologies, 8%. they had good overall organic growth guidance for the year you like to look at organic growth it xs out murders and acquisitions and the effect of that this is telling you fairly decent revenue growth. you can look down on the number carefully. that's the bottom line >> right now we are sitting at the highs of the day, carl 29.30 is the number. >> thank you, let's get to rick santelli at the cme in chicago good morning to you, rick. good morning carl, treasuries in dead all global sovereign rates. we are seeing that they eased

back just a little bit we are up a couple of bases points in the long run zg donin in the short end but, we are back you see on the one-week chart. today we are talking about how close stocks are to an important all time highs dollar index is at an all time high, it is certainly near a 22-month high. it really popped when it took out recent highs you see that left side 97.67. we flirted that interday and that high takes you back to the summer of 2017 you added up, it gives you 22 months we talk about 112 being significant for the euro verse of the dollar. it is. look at the chart starting in

november, you can see how we are not far away from testing that level. we had other health. the dollar yen chart you see is lateral. the dollar continues to hover at the best level the same zip code is the best level since mid december if you look at the pound verses the dollar, definitely some moves going on there we are now hovering at the best level on the green back since february 18th. all things considered what we now are looking at here is interest rates that are elevated but don't seem to have the horsepower to really extend. you want to pay close attention to 2.56. that was at low yield of january 23rd car carl, jim, david, back to you. hometown and team, russell wilson has found a different way

to celebrate his new $140 million contract. instead of a rolex or steak dinner, he's giving shares to amazon stocks to his team offensive line men remember this, a year ago, jeff bezos tweeted a photo of him with russell wilson making pancakes, saying they ate their weight in pancake. >> amazon is backup to 1900 today for the first time since october. that's one of the reasons of another all time high. >> there is nothing like it. apple, how much they pay >> the monthly numbers are very large for the hosting that they need >> we are talking about the to line growth there is still incredible >> go back to the idea that people thought jeff bezos was

distracted >> distracted about what >> the $2,000 price tag he's going to get he's less distracted >> would you get a gift from me or david, rolex or shares of amazon >> i have the best watch in the world. i would like shares of amazon. >> well, i don't need no rolex, i got an apple >> that's 800 bucks a piece. >> it is 1900, it is more than that >> i love you guys >> i mean itme a lot when i say that >> sara is going to talk to james quincey later on this morni morning. s&p is about down a inpot and a half we'll be back in a moment. when you look at the critical issues facing our world, what do you see?

we see breakthrough medicines getting to patients in record time. we see harnessing natural gas unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved.

quick pop in kohl's, kbeft day since december 26th as the company says they will now accept amazon returns across the truny. we'll get stock trading with jim in just a moment

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long time. now it's coming through with big, big money by the way, pratt and whitney up 35, too, so united technologies. i have to recognize this will drive every single military stock up which have been depressed since the democrats won the house. it's a big deal. >> marilyn hughson one of the time 100. >> so deserved clearly worth it very, very good. non-promotional person. >> jim, what are you going to handle tonight >> hasbro. if you listen to brian goldner, he said stick with me. i have a plan. i'm going to be able to recover from toys "r" us and he sure has. what an exciting time, guys. what an exciting time. enough of the vacation, the wife and sister the hell with her. sorry. stewardess said your husband has a show on in the morning i love.

she's like, really she plays candy crush the whole time i'm on. >> not an avid viewer in the morning. >> no, she's not >> just your wife. don't worry about it >> this is just this morning >> it's this morning. >> that's a lot. >> i'm trying to figure out who watches. >> we'll see you tonight mad money at 6:00 p.m. >> my kids don't have cable. uiy.og up, james qnc dow is up 39 ♪

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♪ good tuesday morning welcome back to "squawk on the street." i'm carl quintanilla with sara eisen and david faber. taking a look at the markets a number of dow components out with earnings, all pretty good, coke included. >> our roadmap starts right there with the earnings mania. four daq components, we're watching all of today's big moves. >> bullish calls on lyft,

jpmorgan and credit swis out with their numbers >> we'll get the thoughts on raising the tobacco age limit to 21 and a lot more. >> in a few moments, coca-cola ceo james quincey will talk to us, helping lift the dow. let's get march new home sales with rick santelli. >> quickly, before we get to that, richmond fed for the month of april is three, expecting ten. it's a miss. we have minus two in january, not the lowest number of the year for the banner number, new home sales for the month of march 692,000 seasonally adjusted annualized units this puts this number up about 4.5% just for historic perspective, the all-time high in the series is close to 1.4 million. this is a good number, wu still only a little more than half

diana olick, how do you see this number a nice pop to the upside, don't you think? >> it is a nice pop to the upside here is the number i'm putting on it, mortgage rates. ceo mentioned it in the call this morning steady returning to the market, buyers after the slowdown in the second half of last year when mortgage rates spiked. this is all about lower mortgage rates going into the beginning of this year and the big drop in rates we saw in march. the question is, as rates start to pop up a little bit now going forward, is that going to affect the buyers the good news is the sale price, $302,700 was considerably lower than march of last year. people are buying the lower end homes and perhaps the home builders are giving incentives, lowering prices a little bit or getting more low-priced sly out there. a good sign going forward. back to you guys. >> diana, thank you very much. a lot of earnings to get to this morning it's been definitely the busiest day of earnings season so far.

procter & gamble, lockheed, utx and verizon raising their guidance all four dow components beat at least on eps. >> i'll handle procter & gamble and coca-cola. it's almost appropriate both of these companies came out on the same day they both have similar stories which is growth is really shining at both companies. you see that in the organic revenue figures which is a good, pure look at the kind of growth these companies are seeing proctor and gambling raising the full year organic sales guidance to a solid 4%. what's actually happening inside these companies? a few things one, you've got to point to leadership at the top. david taylor, james quincey. you've got to point to execution, especially around pricing. remember when aluminum prices went up? there were questions on whether these companies would pass on that pricing kimberly clark, this was a story

as well, both have managed to do so, whether it's smaller packages or higher prices, that's working out also an innovation story happening at a lot of these consumer packaged goods companies. this is a big change with, i would say, procter & gamble, evident in the beauty business sk2, the japanese beauty brand we don'ts have it here super premium and doing super well if you look at some of the numbers. they've got these power oral b toothbrushing out growing high single digits. a lot of these newer brand innovations. coca-cola has the new orange-vanilla flavor doing well that's what i would point out on the two dow components, not so sleepy anymore. >> there was a time when p &g, even though we see the stock down, sarah, it's important to point out. when you look at a year chart, it's been more or less up and to the right for this company

since -- at least since they started to show some momentum on the top line. >> really a few quarters ago they started taking it up a notch. it came around the time when nelson peltz joined the board. a lot of the plan was in place and that was supercharged with the strategy and implementation, getting rid of the matrix structure and those types of things they have been outperformers, coca-cola, over the last 12 months instead of looking year to date. pepsi got a big jump on its better numbers let's focus more on coca-cola. right now, earnings beat, organic revenue growth for more, james quincey, ceo and incoming chairman of coca-cola joins us from atlanta. good morning, james. >> good morning, sara. >> we were talking about the growth drivers happening at companies like yours i know there were funky timing issues with brexit and easter. how would you characterize the

underlying growth? >> i think the first quarter was a very strong start to the year. once you stripped out the numbers and the timing effects, the simplest way to look at sit a solid organic broegt of 5% which is a strong number the momentum continuing from a strong 2018. we're happy with how the innovation and execution has allowed us to start the year it's a good start. >> if you go through the portfolio, you and i have talked about the strength you're seeing in coke zero sugar pepsi also seeing that what's driving that trend and is that going to be the new diet? >> i think globally for sure it's the new diet. coke zero sugar is much bigger than diet coke globally. diet coke is principally the u.s., u.k. and a couple of other countries. the consumer dynamic love the coke brand, love the taste of the product, love what it delivers some of them want less sugar on those occasions. that's really been what's behind

coke zero sugar. again, double digit volume growth, double digit revenue growth, binding on the momentum of the last few years. it's really on trend for consumers and has a lot of room left to grow. >> also noticed there was real growth in the water and sports drinks category. what's driving it? is it still topo chico, beyond just my household? >> yes indeed, another great quarter here in the u.s. it's a fantastic brand and product, really on fire in the u.s. it gras very strongly here in the u.s. in the first quarter. generally speaking, premium waters around the world, whether it be smart water, are focused on the more premium orders, smaller packages, single serve packages is help reinvigorate that part of the portfolio along with some of the sports drinks brands that's very on trend, too, with

consumers and a lot of momentum and a lot of innovation going behind that, backed up by the execution of the bottlers. it was a very good bright spot in the first quarter >> so thanks to the team for figuring this out, actually on this day -- i don't know if you realized it. 1985, coca-cola announced it was changing the formula to new coke never caught on. you had to go back to the original strategy less than three months later total disaster now that you're tweaking the products, orange, vanilla, the new diet flavors, how do you do that without having a mishap like the new coke? >> i think the central learning ultimately was that coke original, coke classic is the enduring center of the brand so i think we've been very clear, we experiment, whether it be flavors or the zero sugars or

blending with other categories, with coke, with coffee at the center of all that, we have to do justice to the original coca-cola even better it comes in a small eight-ounce glass bottle as long as we preserve and keep that iconic brand and product as the center of the idea, i think all will be well >> last quarter when you joined us we spoke a lot about the outlook. it was disappointing stock reacted, stock actually fell in the three months that followed today we saw why 11-point hit because of foreign exchange that strong dollar can you just explain to investors why that is hurting coke so much and disproportionately to some of the other companies right now and where we go from here on 4x? >> i think firstly, it's a recognition or representation of the incredible global nature of the coke company and the coke system we truly probably are the most broad global company we're in virtually every corner

of the globe we deal with over 70 functional currencies as our businesses continue to be successful over the years, the weight of emerging market or non-top ten currencies in our total business has increased in recent years it's gone past 50% of our business. so more volatile currencies have increased their weight in our total business and in the third quart last year there was a big strengthening of the dollar that hit us in the third and fourth quarter last year obviously it's affected us heavily, double digits in the first quarter of this year as we start to lap that cycle going to the back of the year, those effects will have passed through. and i think the strong operational performance will really show through and the momentum of the operation resolves, the volume and price and margins will start to deliver for the coke shareholders we are a big global company. we represent the success or

greater success of the global economy. >> have you seen the global growth slowdown in consumer spending >> clearly our first quarter doesn't look like that since the imf reduced its forecast, perhaps those forecasts are a lag indicator in the sense that some of the private sector signals come a little earlier i think it's really cementing the idea that 2019 will have light slightly less growth than 2018 no question the first quarter started well there are parts of the world, some of the economies like argentina, bits of the middle east which are really under pressure so we're seeing 2019 with growth, just a bit less than 18 in terms of the macros we're focused on what we can execute. hopefully we'll continue to execute well like we did in the first quarter, but we do see 2019 softer in the macros. >> do you see 2019 softer with

regard to the u.s. consumer behavior >> i think the u.s. forecasts are pretty similar, slightly less than 2018 obviously there was a benefit of some of the tax reform flowing through last year and the anticipation of that flowing through. so i think this year obviously as we start cycling out at the back end of the year, it's yet to be seen i think the overall take we would see is it's pretty much going to be similar from a consumer spend to 2018 >> also, i wanted to get your thoughts on pricing. it's been a big them fe for a l of consumer companies. we the consumer paying more or at least getting less in terms of packaging we saw it in kimberly clark, in pepsi, in your quarter how much longer is that going to continue at this rate? >> i think pricing is what the whole bundle of the brand and the package and the benefit to

the consumer is. the consumer is not going to pay if he doesn't see benefit. so i think what we focus on is are we, as we think about each individual consumer and the occasion they're buying our product for, are we delivering a brand that's relevant to them in a package and with a customer that delivers value for them in the end, if they get value out of it in all the bundle that comes with it, then the pricing will be there. if they don't, then they won't so i think it's really a measure of are we able to deliver on the proposition for the consumer in a way that's compelling for them >> a lot of focus around wall street on the cost to deal it finally closed this quarter can you lay out what your vision is for taking this out beyond the uk, globally and potentially to the u.s. >> we closed the deal early january, well ahead of schedule which was satisfying we've been able to transition

the business from the previous owner ahead of schedule as well, able to integrate it and stand it up within the coke system, so that's good. we're in early days of working out how to bring to light the sinner gentlemen plans for greater revenue growth and profit growth. that will start to take shape in the coming months and quarters the first thing everyone will see are the beginnings of ready-to-drink coffee in the european business and then into more markets later in the year as we get into the year, we'll be clear on how we're able to leverage the cost of business and creating that growth platform for coffee that we think will help us be a better beverage partner for our customers. >> we got news today a bill in california that would have imposed a tax of two cents per fluid ounce, soda tax, essentially, is going to be shelved and pushed back.

are you encouraged by what you're seeing when it comes to the legislation front, these soda taxes being pushed back or in some cases some of the results being quite negative on jo jobs >> i think the reality and our thought, our position on this, the overconsumption of calories and overconsumption of sugar by any one person is not good we're very clear for our support for the global objectives on consumptions of sugar. therefore, the problem has to be solved therefore, our focus has been how can we help do things within our control, do what we can, what public policies should we support or not support in order to get there we've been focused on reformulating, less sooug gar, coke zero, double digit sugar, very strong growth we have to do things within our business

we're supportive of government policies that look at broadways of trying to reshape the diet or encourage people to moderate their consumption of certain ingredients, whether it it will be sugar or salts or don't thih health objective that we've trying to be a part of solving i think to the extent the public policy moves towards places that encourage both industry innovation and broader changes of behaviors for the consumers, that will help to be part of the solution. >> finally, james, this week is a big one for you. the board set to hand you the reins as chairman and not just c ceo. what would you say is the biggest difference under your watch as soon-to-be chairman and

ceo quincey versus kent. >> the role of the chairman is to work with the board to push for the accelerated execution and strategy and question the whole management, accountable for that i think it will be a natural evolution and reenforcement of the strategy that we're pursuing and the reinvigoration of what's been under way for a number of years. >> james quincey, thank you very much >> thank you >> ceo of coca-cola. when we come back, we'll reveal the one ipo he's invested insofar this year. later on the ceo of philip morris international will give us thoughts on the upcoming bill that will raise the minimum age to buy tobacco products to 21 years. squawk on the streets back after

a short break. uh-oh, looks like someone's still nervous about buying a new house. is it that obvious? yes it is. you know, maybe you'd worry less if you got geico to help with your homeowners insurance. i didn't know geico could helps with homeowners insurance. yep, they've been doing it for years. what are you doing? big steve? thanks, man. there he is. get to know geico and see how much you could save on homeowners and renters insurance.

thumbs up to lyft. lyft, zoom, pinterest are now in the public market. more big names on deck including uber our next guest is staying away from buying some of them at current levels except one. dean of valuations is with us, nyu professor of is with us. in general, how are you

characterizing the issues we've seen and the ones that are pretty much new pricing. >> i think lyft when it came out was overpriced after the drop, i think it became a little more reasonably priced i'm a little scared over uber. i think pinterest over zoom any day. in terms of pinterest, pinterest is a better bargain. on a relative basis pinterest and lyft over zoom and uber. >> let me unpack that. you said you'd be scared at u r uber's current >> yes it's a company without a business model yet to deliver profits. lyft and uber are struggling the way to convert to profits. the reason is because what allowed them to grow so fast is getting in the way of them making money they can scale up fast but can't figure out a way to make profits off that scale you're paying $100 million for a

company without a viable business model paying a lot of money up front to get that. >> isn't the market being a bit of a disciplinarian on that? >> we'll see with uber whether that discipline carries through. i think in a sense uber is watching lyft to see what will happen to it i think the test will be when uber goes public, whether the market gets caught up in numbers, 91 million riders that's a lot of people a lot of these companies use numbers to intimidate. >> i'm trying to understand your valuation metrics. lyft and pinterest -- zoom is the only one actually making any money. it's extraordinarily high, but otherwise talking about years' worth of revenues here what makes lyft and pinterest more appealing to you than uber and zoom >> all these companies are based on future profits. even zoom, if you look at the profits, they're trivial

given the $18 billion, there's profits. whether you're above zero or below, it's not the issue. it's whether you have a pathway to making money. i think pinterest has that pathway. online advertising instead difficult state is a high margin business i think pinterest has to be careful not to do what snap did which is try to go too much. if they can stay disciplined and focused, be a niche business, don't go after facebook and google, they have a loyal group of people that go through their portal -- from an advertising perspective, pinterest has lots of potential if they can make it, they'll make high margins. uber and lyft, i can't tell you what their business model is to deliver the profits. that's the difference between pinterest and zoom and then uber and lift is pinterest and zoom have a pathway to profitability that you can see right now uber and lyft i don't see that pathway. >> eventually they'll both have

to raise prices significantly. then the question is what the consumer response will be. >> or go to autonomous cars. >> which is years away, but certainly a model that will change dramatically. >> no, at the end of this year apparently. >> according to elon musk. >> i'm a skeptic for the following reason autonomous cars become the way we move from point a to point b. it's a technology business, no longer a car service business. i'm not sure uber and lyft would be the winners in that business. i would think google and tesla with an advantage. >> the i.p. they do have, the software, it's pretty significant. you can imagine the autonomous car fleets being leased to an uber and/or a lyft, and the margins expanding greatly given they're not paying drivers anymore. >> if uber and lyft are the only players in town, that's absolutely true. i think that's still to be resolved i think this business is going to shift dramatically if it

becomes autonomous cars. i'm not sure the existing players are going to be the winners in that particular game. >> the one ipo you have played in this year is -- >> levi strauss. >> why >> i think it's an endure brand name i think about brand names and how long they've been around i'm accused of being old i am old the last time i was after round cnbc i did say i think levi strauss will be around well after lululemon and under armour are distant memories because i think one of the problems with the brand names of today, they build up really fast but don't have any roots much as you might dislike levi strauss as being old-fashioned, it has roots >> overall market valuation, you're mentioned in bill miller's letter this month why he believes stocks have more room to run, because the implied equity risk premium has been persistently high.

since the crisis, people are nervous to touch that stove again and it suppressed equities artificially. >> i don't think it's artific l artificial artificially prices are up substantially over the last ten years, earnings and cash flows are up even more. i think the buyback component is what kept stocks up. that will be what i'm watching for stocks that starts to fall back dramatically and i start to get worried. >> you really don't think new brands like lulu and under armour can build new roots. >> the essence with the millennial consumer, they don't seem to have any loyalty i know it's a generalization but i think their loyalty tends to be shallower than the loyalty of the brand names it cuts both ways. i don't think these companies have been particularly loyal to their customers either in terms of building a brand new for the long term. i think they'll pay a price for that when tastes change. >> professor, come back soon

always good to see you. >> thank you. >> a lot of good takes there david. >> as we head to break, let's give you a check on the markets. we are within striking distance of all-time highs. meanwhile president trump tweeting about the economy this morning saying, quote, in the old days if you were president and had a good economy you were immune from criticism. remember, it's the economy stupid perhaps the greatest economy in history and to the mainstream media it means nothing but it will. more "squawk on the street." ...when a plan stops being a plan and gets set into motion. today's merrill can help you get there with the people, tools, and personalized advice to help turn your ambitions into action. what would you like the power to do?

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time for etf spotlight take a look at aerospace and defense. off to a nice start for the year up around 20%. getting a boost from its third largest holding, lockheed martin, surging on pace for its best day since 2016 as they beat on earnings and raise their 2019 forecast jim, guys in the last hour said this is a big move for defense, largely because of one f series

fighter. >> up almost 30% harley-davidson another earnings mover. morgan brennan joins us with what the company ceo had to say to her about the quarter >> that's right. shares are down a little bit this morning the call is going on just wrapping up. still falling. ceo matt leave tij saying it's slowing. he said to me where we compete, we're competing well think young adults, women, ethnically diverse riders made up more than 50 brs of the mix he said it's continuing into this year. on trade policies which have impacted harley in a number of pays, telling me they're optimistic that trade wars will get resolved the new thai plants they built

and came online in the fourth quarter, propelled strong retail sales in asia. the company waiting eu approval to ship u.s. production there for that facility due to the retaliatory tariffs in that market president trump tweeted about that this morning. of course, i asked leave tij about it he said he has no response to the president's tweet this morning that they're running the business on the facts and circumstances in front of us in europe though, more broadly, industry demand up quite strongly i asked him whether ride shaefrg, scooters, motorized bikes are an emerging threat for a company like harley. he said harley products could participate. these are conversations they're having, especially the new electric motorcycles for which he said the demand is overwhelmingly for non-riding adults the first electric vehicle will be releasing live wire come this summer shares of harley are down right now. keep in mind they are up 15% since the start of the year.

>> morgan, thank you as we head to break, take a look at shares for philip morris international moving higher, up more than 25% for the year we'll talk to the company's ceo when we come back. dow is up 58 points. don't ay.gowa

. i'm courtney reagan with your cnbc news update. buckingham palace announcing president trump will pay a state visit to britain june 3rd to 5th as a guest of queen elizabeth. the president made an official visit to the uk last summer although that was not a state visit. an earlier state visit was

deferred amid concerns about the president's reception. the death toll in sri lanka rising to 320. the president visiting a bombed church where over 100 people were killed. government and military services say police have detained 40 people over the attacks. a 6.4 magnitude quake hit the central philippines the day after a 6 boyne 1 quake rattled the countries north and left 16 people dead. on a much happier note, prince louis, the third child of william and kate turns 1 today he's fifth in line to the throne he is a great grandson of queen elizabeth who turned 93 on sunday that's your cnbc news update for this hour. back over to you, sara. >> courtney, thank you welcome back to "squawk on the street." regulatory worries ahead for tobacco companies out performing the broader market

senate majority leader mitch mcconnell planning to introduce slas to raise the age from 21 to 18 walgreens announcing a new policy that companies must be 21 years old to purchase those tobacco products joining us in a cnbc exclusive, philip morris's ceo andre calantzopoulos what's your view on raising the age to buy tobacco products to 21 >> i think we're very supportive of age limits in every kubt in the world. for many years we've advocated for increasing age limits. we're following very closely and with great interest the

regulatory developments in the u.s. i think that's a very good thing in the announcement from walgreens today, also a very welcome development. i think it's even more important as we move into innovative products that are smoke-free, that we are extremely careful there is no unintended use for these products they are for adults. and certainly we have to do everything we can to avoid that teenagers take on nicotine use and at the same time never smoke as even adults, never come to these products i think there are three pillars in youth prevention. the first is the age limits because that's a very important step the other is strict age verification at the point of sale and the third is education. and we have to continue. so far we've told adolescents

that they should not smoke with the advent of nicotine containing products, the educational system has also to change and educate that teenagers should not use nicotine products. it's not good for them not only it's addictive, it can have effects on their development. we're fully supportive of this. >> what about adults teen vaping and smoking is a huge problem here. but you're trying to get adults to stop smoking cigarettes and start using these -- what you say are safer products like ipos, heated, not burned i read a lot about it. can you market that as safer is the science and the data there that people should really be switching over? >> absolutely. i think we have the entire scientific evidence in pre clinical and clinical trials outside the u.s. they point to the fact that

they're a much better alternative for people who smoke today, and they do not quit. of course, these products are switching products for the people who do not quit and very clear, people who have never smoked should not start. now, if we look at what happened in the world and iqos is present in 44 markets, first of all, i'm very pleased in the last quarter we competed an important benchmark which is 10 million iqos users in these 44 markets and 7.3 million of those people have fully switched to iqos and quit cigarettes. i think that's remarkable and shows the product has the potential to convince people who smoke today to switch out completely and we continue our effort everywhere in the world to

convince the people who smoke today to switch. >> last time you were with us, we talked about the existential nature of the combustible cigarette and whether or not it goes away completely when it comes to production, how many traditional cigarettes will you manufacture this year versus three years ago, five years ago? >> well our volume of cigarettes is declining, and obviously as people are switching to products like iqos and other alternative smoke-free products, the volume of cigarettes will decline over time i think we've stated very clearly that our objective is to eventually have no cigarette sales over time. we are having a portfolio of products that are all smoke-free, and i think they are e vapor products in the u.s.,

the heated tobacco products that i believe have the potential to switch people out of cigarettes, and realtime data we have from the world is we're very successful in doing this over time, that's what the smoke-free world envisioned, we'll be completely out of the sales of cigarettes. i think that makes sense from every perspective. obviously it makes sense for public health and for the people who smoke themselves but also make sense for the shareholders because financially, as this these alternative products are not cigarettes, they benefit from lower excise taxes. so it's a win-win for everybody. that's why we all move in this direction. the faster we move out of cigarettes, the better for all of us. >> how do you respond to critics saying this is hip kat cal that this comes from the world's biggest tobacco company, to

advocate a non-smoking campaign? >> i think the unsmoke campaign is part of the effort to convince people to switch if they don't quit. i think we're very clear, people should never start if they smoke and they don't quit, then they should switch. that's what the campaign is doing. it's part of the whole transz formation effort i don't think it's hypocritical or deceptive, as i hear very often. because that's the two most used words in the vocabulary of ngos. if we're hypocritical, we would not have invested $6 billion in twopg these products, scientifically assessing them, putting them on the market, commercializing them and not spending 60% of our entire marketing and sales budget behind these products when they represent last year 6% of our sale if you call this hypocritical, i

think it's an exaggeration >> is it happening fast enough for those investors on wall street that are looking forward to this transformation and bought your stock this year on the tremendous growth that you are seeing in these alternative products how do we know when it actually happens fast enough that that's going to drive the pull profit picture for philip morris and completely disrupt the business? >> first of all, i think we are moving really fast just if we look at the quarter, the growth of our smoke-free products, iqos is 35% compared to last year in market sales so the progress is rapid we're in 44 markets. we're growing in every market, and i think we'll continue the effort now, on the other side, clearly we need governments and regulators to help in this effort by adopting the right measures so that people get

incentivized to switch to these products if they don't quit. these measures can be fiscal measures, can be enabling labeling that's why we're advocating fda-type approach to the regulatory process because that's the best process to bring products to market in terms of pre market assessment and post market surveillance. the u.s. is the only company in the world with a food regulatory regime, everybody to submit themselves to this regime. >> got it. andre, thank you andre calantzopoulos with phillip morris international. as we go to break, take a look at some of today's biggest earnings movers. hasbro, twitter, utx

only p &g and verizon not reacting back in just a minute. ah, you could say that. so how are things with you guys? great. thank you. thank you, sir. lunch next week? terrific. say hi to the team. will do. call my office, i will. -sounds good. alrighty. servicenow. works for you.

stocks gear up for earnings, one wall street bull is waving the flag find out more on tradingnation.cnbc.com more "squawk on the street" coming up.

over to the cme group in chicago to "the santelli exchange." >> welcoming my smart guest, ash hop. i see a 257 ten-year note. other than a few months in 2018, you have to go really to mid 2011 and earlier to see a sustained trade over 3%. >> yep. >> you have to go back to 2007 to see a sustained trade over 4% my question to you is, in that context, why do many, so many believe the fed is allowing a big asset bubble to form, keeping the rate where it is.

>> i think the way we're seeing it is global growth we think is bottoming, getting a little better i think i'd agree with you that the fed has signaled compared to last year where they were reactive to growth and growth dynamics, they want to reability to inflation dynamics. we were talking about inflation break-evens remain at 2%, a little less. >> we haven't had 2% since august, september of last year. >> we think a lot of what's going on in the markets is reacting to a pretty decent, benign growth environment, the margin is getting a little better and the fed will be more reactive to inflation dynamics than growth dynamics that's not a terrible cocktail for the markets. >> now, having said all that and looking at stocks this close to all-time highs, dollar index breaking out to 22-month highs, what would you tell an investor that wants to diversify? would you put them in the money market side of the curve >> no.

we think credit still has value. six, nine months ago we thought emerging fixed income was the sweet spot to be in. right now we think bank lows and clos, that's where your incremental dollar and fixed income is supposed to go the front end of markets is pretty well pinned. it's not the greatest yields in the world -- i guess it is, but it's not the greatest yields. those will remain pretty stable. >> when i'm in investing in the money market, i don't want to take the curve risk and you say there are some opportunities there, what about outside the sector many people -- are looking pretty good. you think about the munies. >> you were talking about some of the ten year notes, they are some of the richest levels we've seen in ten to 12 years. our team thinks it's related to

what's happening with the s.a.l.t. that's been a structural rich sector this year. >> we only have a few seconds left. do you think this pop in the dollar in the notion that all the supply doesn't raise interest rates, have we seen the peak last year at 3 1/4 for a while? >> it's going to be up above 3 1/4 after what they've done. >> thank you. david faber, back to you. >> thank you, mr. santelli. as we head to break, elon musk unveiling tesla's latest self-driving technology saying that it is, quote, financially insane to buy anything other than a tesla. he also added that any other car than a tesla will be like, quote, owning a horse. the lexus es.

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let's get over to dom chu finding momentum in the financials this morning. >> this overall sector financials have been a slight under performer on a year-to-date basis versus the overly all s&p 500. if you take a look at the way

things are shaping up with regard to the s&p 500, yes, their neck and neck but still financials underperforming. it's about bank and nonbank financial institutions. take a look at the relative strength in this particular sector, those stocks that are trading the most above their longer term trade lines, check out some stocks like franklin resources or msci, they are solidly above their. >> as opposed to some of the other names we know and at least love so much perhaps on the bank side of things. look at key corp, also svb and wells fargo, they are all among the worst performers, at least compared to their 200 day moving average. sarah, david, as we talk about financials, it's not just about the banks, the leadership this year so far has been in those nonbank financial institutions. we'll see if it stays that way for the rest of the year, guys, back over to you. >> thank you, dom. time now to turn to sarah

and get a look at what's coming up. you know i always count them down. >> you can start pregaming because we've got more earning after the bell. >> do you know what pregaming is in high school >> i know what pregaming is. >> i'm not planning on doing any pregaming. >> snap is going to be reporting after the bell with twitter moving so much higher today, having some good numbers up 4.5%. it'll be a good one to watch. it also had a remarkable recovery this year. six flags is out with earnings. we'll talk to the ceo at 4:00 p.m. eastern on the "closing bell." >> i'll start hitting my tequila soon. >> is that your choice >> yes. >> i was going to say tailgating. >> 4:00 p.m. earnings central. "squawk alley" will start in a few minutes. dow's up 44.

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good morning. it's 8:00 a.m. at twitter headquarters in san francisco, it's 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪ good tuesday morning. welcome to "squawk alley." i'm carl quintanilla with morgan brennan at the post nine at the new york stock exchange. jon fortt has the morning off. we'll begin with shares of lyft trading higher. you got jpmo