futures weak a second day. earnings fill in today with ibm, united, pnj, j&j ibm is going to open at a 14 month high several companies boosting guidance and several boosting prices

>> a railroad bidding war. canadian national offers more than $30 billion to buy kansas city southern. and ksu shares as you might expect surging ahead of the open and tobacco stocks under pressure as the biden administration reportedly considers new nicotine regulations. >> lot to unpack today mentioned the earnings coming in what's the tell today? what's indicative of the broader trend? >> i just think people are saying look, it is exactly what we said with the companies that are not sclikal. we do the number and we on they just don't care.cyclicl we do the number and we on they just don't care.al. we do the number and we on they just don't care ibm doing the number, maybe even better than people think i felt there was at lof good

surprises. is it a new ibm? no but it is an ibm people are pretty excited about versus where they were two quarters ago. >> what people >> -- >> you got to get to a big file out there to tell me what people. >> i like to wing everything and homework is unimportant to me. when tony says -- tyony is a skeptic. and he's talk about a number that i thought was rather surprising he's saying he thought their cloud and data platform exred hat could grow at 7-8%. christian says he was looking for 1-2% that's not incremental. >> that's significant. total for the quarter. up 21% up 1% when you adjust for divested businesses and

currency and red hat was specifically up 17%. >> which is fine hoping for that. continuing the momentum of white hurst. obviously some of the stuff not done well. $400 million doing better going to martin schroeder. >> when is that actually going to be completed? >> end of the year. >> yeah. but you sound as though you are a little more constructive >> i'm constructive. >> on ibm, than i feel like you have been in the past. >> yes, because i do feel the hybrid cloud has a place and i also feel that christian is basically saying we're going to be a fast growing business but still gonna pay a good dividend combined and generate an amount of cash flow they are going to be buying a lot of companies with that extra

cash flow. and that is going make them into a faster company versus all the other companies like the proctors. david proctor is a little ho hum. i was not blown away i just wasn't. >> okay. >> okay? >> yeah. if you tell me you weren't, i believe it. >> give me some pushback or something? >> i will in a minute but. >> give me some attention. >> i want to bring carl back in. i know you have seen the numbers as well. third quarter, nell sales 18.1 billion. haven't seen how the stock is potentially going react this morning, carl? >> of course the commentary about shipping head winds and commodity cost head winds is a big story. we're starting to build a list of companies that have announced price increases in recent days coke, obviously kim apply clark. proctor, shake shack, owens corning. mohawk it is no longer an anecdotal

story. >> and can pricing freight is just awful. one of the reasons if i were a canadian national i would try to buy ksu. because frageight is the greate business in the world right now. and i'm so glad we have the ceo of can that, as i call. >> by the time this deal gets approved, if it were to get approved, the world is going to be very different place conceivably. talking years. you can put it in trust. you can get paid as a shareholder but years before -- >> -- arm. that ain't doing anything. >> no. no we talked about -- >> -- 10 percent city says down 25 -- >> -- after the uk comes out more or lsz in opposition. let me come back to p&g. >> and not every division was

good as i liked it time whether baby is not ad good for everybody. >> what does that mean >> you know. baby subcategory. >> baby is not as good for -- >> maybe people didn't have as many kids as we thought. >> i think birthrates are down >> birthrates are -- carl we have to start following demographics the birthrates are down. so the number for baby and family minus 1% david i don't know. >> they call it the -- the past year they call it the baby bust. the opposite of a boom and by the way, baby care is one of the areas which they will be hiking prices along with feminine care and i think adult incontinence was the other one guys i do want to bring your attention, our viewers' attention to boeing though -- smith going to retire july 9. they are extended the mandatory

requirement age for calhoun. did see that the max will be back in service by the end of the month on that electrical issue. >> david remembers this. there was a bond deal he was running that was make or break for the company. >> 25 bill. >> greg smith known as a straight shooter he had that interim where he was the ceo. and i think that, well let's just put it this way he's going to retire from boeing at 55 there are many more things he could do. >> is that all he is >> yeah he's 55. >> wow okay just -- that's -- younger than me, retiring. >> this show is all about you, and i like that. >> i appreciate that as well. >> carl it's great so far the baby boom shot -- >> -- basically it is your world and we're just living in it is

actually saying that to me. >> well isn't it >> yeah it is. if it's my world then let's talk m&a. it is a very important large deal we're talking about this morning of course and we mentioned at the top and jim as well but $200 in cash and 1.5 shares of canadian national. 21% premium over the canadian pacific deal they are going use that same voting trust arrangement remember that is outlined. frankly they came out a couple of weeks ago and opposed the use of it. but they are saying they will go anyway route that way of course shareholders can actually get their money and then the risk is really taken on by the rail. annual ebitda synergies seen as much as a billion. mostly from revenues

19.3 billion of new debt shareholders own 12% of the combined company adding four directors. keeping the headquarters for the u.s. in kansas city. and they saw the opportunity there we all know. one of the key questions of course and we're going to have an opportunity to get into this is why now and is it a preferable outcome for them regardless of where they win it as long as ksu does not actually go to canadian pacific? more on that coming up. >> after the break david as you know, we'll talk to the ceo of canadian national. we'll get to what apple might say today. back in a moment

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you can see it right there they are surging ahead of the open canadian national. it is far above last month's deal from rival canadian pacific to acquire ksu nice to have you with us jean-jaques ruest. regulatory, it is going to prove to be a key here

what gives you the confidence you can get the approval from regulators for a deal which frankly you are a larger company than canadian pacific and may have more overlaps as well than they do with ksu. >> good morning david. we're reaching out to kansas city, their shareholders, their board. their employee to really create a very solid continental railroad, a premium 21st century railroad and by doing that we can create the value on the regulatory front this is not the first time that we buy a property in north america since we did the ipo 25 years ago we did 18 acquisition of different size couple of them united states we also bought wisconsin

central. and more recently the -- so we understand the process we understand what's required. and we believe we can make this transaction work for the kcs shareholders and the regulators and -- >> jean-jaques it was only a couple weeks ago, april 1st to be specific, that you came out with an objection to the granting of a waiver to ksu that will allow for example the same structure you are pursuing, the ability to close and trust you objected to them being able to do it why should i be able to do it? >> the fighting at that time was not about the trust. it was about the new rule oar the old rule in both cases our offer and -- with the company on voting trust and concluding the transaction paying the shareholders by year

end with a cash component in our case $200 instead of 90 as well as in the case of cn the remaining amount of shares the finding at that time was about so called old rule and new rule not about the voting trust itself. >> explain to me though why. opposed to a number of the other large rails that were kind of neutral, you chose to object here i'm just trying to understand your timing. trying to really understand this idea thatfrankly you are as interested in making sure canadian pacific doesn't own this asset as you are actually owning it yourself. >> in the case of the offer we just made this morning it is really about what we can create internal value, the economy north america is increasingly built by the service sectors people who are, you know, have good jobs, good paying jobs with good disposable income 70% of gdp is related to the kind of -- people consume --

building an internal network between the countries. and we believe we will get the regulator approval to create that which frankly is very much lacking. >> specific to that then when people tell me you have certain track agreements into the gulf of mexico, for example. and ksu down there and you could have a choke head on the production of energy in the gulf is there a willingness on your part to divest any of these track agreements or how do you respond to those who say this could be an issue. >> the so called issue is -- 70 miles of overlap between the network. segment of track between baton rouge, louisiana and new orleans. and there are five customers at

eight plants on those two for one and we can resolve that commercially or other ways and we fully intend to do that we want to make sure that this will be dealt properly and not an issue the question of petrochemical. this is a growth story it is a story about growing business together. so definitely anything that is -- enable as to opposed to make it difficult. it is a growth story it is about creating new business converting freight on the highway to rail and enable customers to do more trade and connect to more customers. it is not about removing any competition. kroer to that it is really about creating new option for the people who use north american rail network >> jim cramer, jean. i've got in my hand very interesting interview.

-- just happy with what your network is very wide network obviously. even to american ports but i don't understand why on this day you were -- well there was your cfo couldn't have been more happy with the operation and now suddenly you are spending a fortune to be able to make it sure you are a very different operation. call me confused >> -- successful company we've been proivatized 25 years ago. the market cap was about 2 million dollars canadian we're north of a hundred million now. lot of growth. opportunity here is very significant. the board decided it is time to crystallize the value for shareholders and to sell the company. so opportunity at hand is opportunity that comes once every -- maybe not even every

decade and cn always from the beginning was interested whether or not we could create single line north to south value for shareholders we want to be in we think we have the solution to be able to do that and really can combine these two network in a way that nobody else can and therefore crystallize value in a way that really is a compelling offer to the kcs board and kcs shareholders and also the rail industry >> tell me about what's different from your network from canadian pacific that would make it so it is better for the customers? >> we reached to -- all canada more track miles, more employee. more destination our network is also quite specific in the united states. good portion of shareholds are u.s. based good portion of our revenue

about 40% is also u.s. based as well u.s. funds so we're already in a bigger way in the united states especially mid west in michigan. when you go in michigan number of a -- with over time to even get more parts and other than agreement that will require higher u.s. component, north american component of steel. higher of aluminum same thing with parts so trade between continent is going to be leveraged by the fact we reach more destination and therefore we can offer more single line service to a larger number of customers and users. >> to go back to jim's question in terms of just timing. it wasn't a huge secret that this company might be in play. some time ago. to give credit the "wall street journal" broke a story a long time ago ba blackstone and another large

firm were considering a bid. you never came at the company. you never tried to initiate a conversation prior to sending this letter this morning in order to try and buy ksu >> over the years we worked with all the railroad we discuss, we have -- entertain all railroad been a student of all railroad it is really the board of kcs decided they are going to crystallize the value of the company and sell it o the a strategic buyer, another railroad and we believe we definitely have the best value to offer we have the better bid better railroad and better partners to crystallize even more value at a time they have decided they want to combine. >> well nobody is going to argue with the economics you are offering a lot more overall and a lot more cash. i think, you know, the question

will continue to be regulatory have you had any conversations i know you just sent the letter. what are your expectations in terms of how this process is going to go from your perspective. >> had a brief phone call this morning with the ceo of kcs, and reached out to kcs to patrick on behalf of all cn railroaders to reach out in a positive manner we want to partner with their team and admire what they have put together the last decade in terms of their network and making the appeal for the board to really consider what we have. to really create a transcontinental railroad, premium railroad a railroad focussed on the future. >> and just to come back to this objection because i do want to understand it and it may have been difficult to do so in the rapid moments prior to our interview. if they apply -- if they don't grant the waiver any longer to ksu. you still move forward with your

deal >> in that case we would able to make another offer obviously talking a waiver on the boarding trust. the boarding trust would have to be approved. if the approved the waiver and approved the transaction we offer at that time the kcs shareholders get the $200 in cash and also the shares from that point after the company is in trust and cn continue the process to get it proved by the stb. the offer based on that. if they have otherwise, then we have to -- >> understood. we'll be following closely don't typically see overbids of this size. appreciate your taking time with us this morning. thank you. >> thank you hopefully we can speak again >> look forward it to. >> bye. we'll keep an eye on

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pretty brood mix of news this tuesday just heard about m&a and the rail space and netflix to get to. and oil today. the opening bell about 14 minutes.

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welcome back 50 seconds is enough to squeeze in a mad dash before we get the open abbot labs. >> had this been on sale i believe they would have blown away the quarter this is the at home test the equivalence of the pregnancy test two for 24 look at it in the morning. minutes later you know you have

covid. since 65,000 people are still getting this, wouldn't you like to know before you went to work? it is ab antigen test. abbot down very big. they just got the approval i think they would have had a blow out with it. >> two for 24 bucks. >> yeah. >> you get a bunch. >> and we can feel confident in the result >> the number -- you know it's -- you have always got a problem with folalse positives. >> you get a positive you want another test >> exactly would have made last quarter fantastic. don't give up the ship those who are blowing out abbot. and we'll take this during the break and see how we're doing? >> okay. carl yeah, i want to see the results guys let's get the opening bell here and the s&p at the bottom of your screen. jim, that's important because we have 85 million americans now fully vaccinated as of yesterday. 90 days ago it was less than

half a million so we're making huge progress. but even where all of that even with the jabs going on all around the world, we just hit a record high for rolling weekly case numbers tokyo is talking about a new state of emergency it is just an amazing clash with the picture we're seeing in the u.s. >> the key thing is staying home knowing you have it when you are asymptomatic which is why you would this at hoem test. and stop spreading it.t-home te. and stop spreading it. it is about spreading. it is about not realizing you have it and spreading it so these at-home tests will save a lot of lives i think and look, we get tested here every wednesday. we need more tests and it is not a measure of if your head has temperature. which is really kind of -- >> but if you are fully vaccinated jim the chances that you are going to get it are

extraordinarily low. .008 and going to the hospital even lower something like 1 in 210,000, and that is after exposure. >> i think there are so many people who don't have. carl gave app incredible number how we're doing but j&j, i think that was a big setback when the cdc basically, you know, made you feel like if i take that, i don't know what's going to happen. >> -- adverse events in -- >> we have to get the case count down the way you get the case count down is find out whether you are asymptomatic and then don't go to the office. that is who's infecting people the asymptomatic >> if everybody in the office is already fully vaccinated. >> you are in an area where people take it very seriously. i've been in areas where socially distancing means you don't hug as closely as you used to >> right >> okay. trying to understand what is possible when you are fully

vaccinated because your approach and my approach may be different. >> take that out of the equation carl there are tons of people who have not been tested in various parts of the country who go to work every day and get people sick and they don't have vaccinations and they don't believe in vaccinations, david they think vaccinations are wrong. >> axios has a poll out this morning, guys. 8% of those polled say they don't know anyone who's been vaccinated which i don't know i guess depending on where you live is still kind of amazing. detroit free press has a piece out today in michigan. closed not because of the chip shortage but because 600 workers are either sick or quarantine. >> this is about and i've had this happen number of places. they are just closed companies closed but when you look at what's happening in michigan. >> yeah. >> the governor there has said listen we have to have the regeneron. we have to have the regeneron.

the cdc and nih carl have been so bad on this regeneron cocktail that it is in warehouses this is the one former president trump took regeneron made it sound like it was bufferin or something. it is not. but they need it so badly in michigan and the nih and cdc seem he will bennett on making it difficult to get it doctors can't get it your doctor may not even be able to go this for you. >> that is only if you are sick in the first place. >> -- very sick? >> no i'm just saying it is not for -- >> if you have a family member you can take it. >> the conversation i'm having is this is not about people coming to the office sick. it is about when is everybody who is going to start coming back who's been fully vaccinated that's dominating organizations conversations i've had when this is where you work and i expect you here, or can i not

do that because it is starting -- >> you and i have spoke on the ceos you know what the word is. >> yes. >> there are people who just say you know what, i can't go back >> i know. >> i have co-morbidities these are people who never knew what it was and now they have it and they are developing a zoom office at the hamptons and they are going to have that time of the their lives and claim they are working harder than anybody. >> at some point there is going to be a day of reckoning there maybe it is september where carl you say, you know, your view of our culture and my view -- he's throwing things at me. are two different things and maybe you don't fit in our culture. >> well. >> -- yeah mary barra has got a great linkedin piece up right now. gms new approach is called work appropriately. kind of goes with the dress code can they call dress

appropriately and it fits the notion that employees are capable of making smart decisions without overly prescriptive guidance. but i don't know how long, if that's sustainable. >> i don't know either things are going to change i think in the next couple of months there is a plan to bring a lot of people back to the office certainly from the financial firms we know in this area of the country. j.p. morgan has fifty or so people on planes every day from zero. that is going to happen as you have the 86 million people vaccinated >> if you are a person at a firm it is a career limiting move to say i'm working from home. >> i don't know why you wouldn't have been there every day to begin with access to the top levels just hey, i'm the guy here i'm the 24 year old associate. hey.

they would know you by your name >> i think carl we have to check the clubs at the hamptons. we have so send somebody out on wednesday. and see if they are at the beach or club. >> -- >> they are having a lobster roll, david. they are having contacktail parties. using all sort of new gins. >> what? >> that's what people do they have gin now. >> i just want to get you on apple. event later today. spring forward of course the invite went out last week. whispers about ipads, imacs and air tags which would allow to you track devices you don't want to lose your place of. >> like my watch does that i think this is really important carl we are now at the point where wearables actually matter. they were asterisks and now i think they are a category that if you don't pay attention to,

like people didn't pay attention to service revenue initially, you are going to miss most of that move. there were people coming on air and saying no reason for apple to go up none well look at that. this is all in anticipation of an apple you have to have a whole new product line you have to figure out. it is not just hand seths. service revenue. it is wearables. i still want all of my data in my watch and have microsoft have the deal with epic and cerner i think apple should come in overed by. >> -- terms of privacy is that what the defining issue is >> epic is not going to give you the data episick the biggest. it is private. and next is cerner if you made a deal with them and came in and overbid for sad

nadella and get that you might be able to load up everything in your watch sosmgt if something heaven forbid happens, all they have to do is press a button they have all your records in your watch skiing, car accident, some horrible thing it is all in your watch. that's great. >> sounds like a good thing. >> could ju just not say, jim, that does make lot of sense. maybe they should do it. could you just humor me. >> jim, you know, that makes a lot of sense maybe they should do that. >> thank you. >> you're welcome. kansas city southern is up 15% we heard from the ceo. jim, it is interesting you made the point a month ago, not even, your cfo was talk about life as an independent company not doing a large deal, not giving any hints this was a bit of a surprise even though if retrospect you might say why should it be a surprise it is another large railroad that wants to unite mexico, canada and the u.s.

>> they are big in the gulf and there are going to be anti-trust issues in the gulf >> that's interesting. but, you know, listen, from the perspective canadian national, if they win this -- and obviously they have a far higher bid economically there is no way the board can say this is not a superior proposal it is certainly superior they might argue there is more risk to it but either they get it or stop canada pacific from get it the only outcome that is bad is somehow canadian pacific figures a way to come up enough. we'll keep watching that united airlines is down about 3 plus percent i don't know what what your thoughts were about the quarter from yesterday >> -- better quarter and gary kelly is gonna have a great quarter when we talked to him on

southwest air later this week. he's going to have a fantastic quarter. talk about expansion why he needs new planes. he's really coming on strong i think he's used the pandemic better than anyone in the airline industry other than greg smith, who look at thatstop stock with the departure of greg smith at boeing. there is a ceo who created tremendous value. >> right we were kidding about his age. he's obviously looking for his next opportunity when mr. calhoun is extended the way he is it is clear that is not going happen for -- >> at that age you are done. you either leave or you are done. >> he's got enough runway ahead of him no pun -- thank you. to land another job as a ceo but if you hang if there couple more years, carl. >> going to be a soft landing not a crash landing. >> your late fifties then it's tougher. >> you're done you're never moving. and it was time for greg and remember he was the ceo for what >> twenty minutes, ibm

jim was right though, carl people like that up almost 4% this morning. >> there you go. the ibm numbers is the beginning. it is the beginning of a new ibm. and we should recognize. >> yeah. credit suisse went to 165 today and by the way guys on the rail story. new all-time highs for ksu, csx and norfolk. let's get to bob pisani. hey bob. >> good morning carl and general risoff again today second day in a you but we're up almost 5% in the month of april. mega cap tech is split evenly, holding up fine. banks have been flattish since the earning season start and that is not unusual at all fairly typical energy is flat lined it's not going anywheres industrials have had a great run up until this week consumer staples also have been doing better up follow this week two things matter. hard of guidance system.

we're interested in cost and interested in guidance guidance matters because the prices have moved up rather significantly and we need positive guidance to move the analysts along to keep increasing earnings estimates. we've had a number of companies raise guidance in the last few days dover, lockheed martin united healthcare. phillip morris and harley davidson all raised guidance here johnson and johnson came out this morning, they narrowed. but business conditions is what we want to hear about. and generally we're goating the positive commentary we anticipated. lot of comments. ceo of dover cited improving demand conditions. that is the magic word we need to hear about improving conditions in general i think scott kirby at united had the quote of the day leisure demand more than 100%. that's a great quote he was on this morning lockheed martin talked about new and better normal.

the out nation ceo had great comments auto nation. we're getting the positive spin, the positive body language we were anticipating. i have not heard a single ceo come out and say we're not giving guidance because we don't have any certainty that is very good news nobody wants to hear that and so far nobody has been hearing it the other is the highest cost. prok procter & gamble hiking price for baby care and feminine care. already did to offset higher commodity costs. other cases maybe they are just eating it. the bottom line is they are able to do it and it doesn't seem to be affecting their profit situation. this it is ideal situation what you want to really see thanks to my colleague for doing the research there

we've seen this with kimberly clark as well. so far the good news is higher costs do not seem to be dramatically impacting margins and that is what we care about but again it is very very early in this earnings season and of course carl we'll be on top of of all of that back to you. >> bob pisani. rick santelli this morning good morning >> good morning carl so far it is not a big data week that will be coming midweek but it is a big movement week nonetheless. and important technical levels look at a three day of tens what you want to pay particularly close attention to of course is how it broke out above 160 now it is back below, trying to get back above 160 open the chart up only to february and march, what a run treasuries had they really zoomed but when you add in the current month you can see we're more in a consolidation mode

granted the retracements haven't been large the lowest interday trade we've had since the high settlement at 174 has been 152 so we want to watch this pivotal area of 160, 161 on a closing basis. yesterday as in baseball, tie went to the rubbnner so it settled on top of the level. bund yields there is no debating open up to march 1st and you can see that bund yields have moved higher we have the highest yield close postcovid. interday made it to minus 21, which is the second highest least negative interday trade since minus 20 back on february 26th so there are pressures starting to build in europe and the differential of the spread between our rates and european rates continues to shrink and that is very important when you ultimately consider all the

competition for capital we're going to have issuing all this global debt. now, when it comes to the euro currency, this one is unreal look at month to date. this is a month to date of the euro currency. up 2.7%. you know what that means for the dollar index it is basically the mirror image of that. and in housing, look no further than lumber. yesterday the lead contract which happens to be may settled over $1300 for 110,000 board feet, which is the size of the contract never before has it been at these levels carl, jim, david back to you. >> rick santelli still to come the business of cannabis the safe banking act denver city council approves some delivery and it is 4/20 overall defensive tone of the

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netflix reports tonight. interesting setup, jim the general consensus is expectations are muted they are behind the eight ball on slate relative to disney and hbo max. and morgan stanley says they have a historical tendency to miss the q 2 guide >> we talk antd spending a lot of money on content. it's a long time since i remember netflix selling at 30 times two years out. it sounds so bad they can raise price 200 million people and sells at 30 times that's what the consumer product company sells that david, i'm not as concerned as others >> the stock as only been up 3% this year. kind of been on a holding pattern for longer than that that's why given if the estimates continue to stay or

move higher, the multiple is contracted >> it's become the questionable faang now that google as taken off. today was key bank carl, it is interesting to see that the weak performer of faang is none other than the one who is going to report tonight >> yeah. and carl, interesting comments you highlighted on twitter involving the window for movies and the fact that we're never going back to the way things were >> never going back? >> he says it's here to stay is what was said. there's also commentary that if we get some guidance on the password sharing crackdown, that that could be a positive catalyst that's what morgan stanley's morning note says today. i hearus 'rback in a moment h and wellness company? their groomers work wonders for my confidence. i trust their vets, and i'm known to have trust issues. they deliver high quality food the same day. i was outside digging, what'd i miss?

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tesla is mentioned everyone wants to find the next tesla. fisker is not the next tesla but it's a great car anyway, fisker might be back stock is down a lot. i find it interesting. >> yeah. some incredible swings there, jim. we didn't really get a chance to talk much retail this morning. but the things matthew boss told you about back to school were pretty remarkable even in the face of this downgrade of nike over at citi today >> talk about the child credit he's saying the child credit which is enormous is going to be the big spur for q2, q3, not the wage augmentation. i think it's important to watch. all of retail is going to benefit. china, look, that story is not going away what happens if nike wakes up and says we don't need china anymore because we are in favor of freedom

and that piece kind of read to me like don't rule that out. carl, don't rule it out. >> well, speaking of mad money, jim, marvel tonight? >> yes, i think the best single 5g play in the world we'll talk about chip shortage they do automotive they are a 5g play that's a great secular trend that's been ignored during the period where we turn on the chip sector there we go >> huge story. we got it done again jim, we'll see you at 6:00 ti0 m.asrn" at 6:0p. ete me back in a minute

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good tuesday morning welcome back to "squawk on the street." >> earnings are still the major story, but that's going to be interrupted at some point today, morgan with the apple event in the afternoon and, of course, netflix tonight. >> yeah. it's another busy day. we're 30 minutes into the trading session.

here are the three big movers we're watching big blue, shares hitting a 14-month high. ibm beating the best quarterly resultings the shares are up about 4% looking at united airlines losing $7.50 a share for the first quarter. that was larger than a lot of analysts were anticipating higher fuel costs, a 30% spike quarter on quarter and still dampened demand due to the pandemic you can see the shares down about 6.5 %. jlk johnson & johnson beating on earning helped by a beat on medical devices and strong pharmaceutical shares up about 1% right now >> well, also a big deal that you are, of course, i know interested in as well. we call it an overbid, and is it ever canadian national coming to play trying to compete and outcompete a deal already in place with canadian pacific one of its rivals to acquire

kansas city southern the new deal well, it is well love what was accepted by the ksu board. 21% premium, in fact, over the canadian pacific deal. the transaction itself $200 in cash that also a significant increase over the cash component of the canadian pacific deal. and also includes 1.59 shares of all of it, debt adding up to $33 billion. the value is coming down as you see canadian national shares under some pressure this morning. they will fund the deal with over 19 billion drr in debt. kcs shareholders own own a combined share of the company. the key in many ways will be the regulatory review, as it will be for the canadian pacific deal. we did have canadian national ceo join us in the last hour, and he laid out his reasons as to why he believes his offer is both superior and will be pr

prove -- approved by regulators. >> we have the best value to offer. we have the benefit -- we have the better partners to have more value by the time we decide they want to combine with another railroad it's a growth story. it's about creating new business and converting and also to enable customers to do more trade and connect to more customers. it's not about we're removing any competition. >> that's a key question is it not about removing any competition. they feel as though obviously if they get ksu it's a win, but if they prevent someone else from buying it it's a win the only lose is allowing that transaction to move forward. the pressure is on canadian pacific to increase the deal it's difficult if you're that ksu board to say this is not a superior offer it may come with a more

regulatory risk. that's a key consideration >> all aboard the railroad rumble but the point you made, i think is a key one there seems to be an expectation among analysts that cover the space this morning on the heels of the news that you're going to see a canadian pacific come forward with higher bid. this is considered such a key growth driver that acquisition of kansas city southern. it's worth noting that what's underlying all of this is the precision railroading ethos. he was at canadian national. so was keith ceil. they're rivals i think it speaks to how tightly the railroads in particular compete against each other i think the other key thing is going to be, and i realize the regulatory bar is going to be very high to hurdle. but if you do see this deal go through, whether it's canadian national, canadian pacific, what that's going to mean for, say, the eastern railroad, csx and norfolk southern, whoever is the losing bidder, whether they

start to go after and set their sights on another u.s. railroad. if they were to do that, whether that could make its way through regulatory >> another consolidation in the railroad seems hard to imagine >> unlikely. these are the discussions being kicked around right now. if not in the industry, certainly among investors in the wall street community. >> yeah. canadian pacific -- or canadian national is a larger company they can compete with whatever is coming from ka yad nan pacific, which is the smaller of the two. it's funny these days it's the first power graph, preventing thousands of tons of greenhouse gas emissions. this is something that certainly is potentially appealing to a biden administration run department of justice/stb, service transportation board as they review it the idea it's better for the environment. >> yeah. and i think there's no coincidence. i realize this is in many ways transitory or short-term there's no coincidence that we're seeing so much con version

within freight more broadly. we talk about the west coast ports and chicago has long been a choke point in terms of rail freight in pacific and what this deal for kansas city southern would do and this is something that canadian pacific talked about a couple weeks ago to be able to bypass chicago speaks to the idea of basically ringing out costs and increasing not only efficiencies but service. >> yeah. and on that note, they are talking about synergies they say will approach a billion annually the vast majority of which they say will come from as you said, additional revenue opportunities. not necessarily just getting rid of costs >> yeah. it's interesting to see canadian national down more and canadian pacific down fractionally. >> people are making their bets. >> we're going to shift gears. what can we expect from apple and how will it impact

investors? let's ask an analyst who joins us now hi, tony >> hi. thanks for having me >> largely expected that we're going to see a new lineup and hear more about ipads potentially some other types of devices as well. what are you looking for >> yeah. i think consensus is we will see a new ipad pro and potentially a refreshed ipad lineup. there's also speculation about whether there will be a new pencil associated with that. "the wall street journal" is reporting today that apple could push forward with a different revenue model for podcasts and there's been this long rumored air tags product which is also speculated could happen. i'd say most definitively we're counting on new ipads with faster processors in them. >> do you expect apple stock to react today? >> generally to these spring announcements, the stock doesn't react that much. it's in part because the ipad

while a very large business on an absolute basis, is still less than 10% of apple's overall revenues and less than 5% of its profits. and so given that we expect these to be largely refreshes, i'm not a very big part of the business, we don't expect it to have a material impact on the stock. >> yeah. and certainly ahead of this announcement, we're seeing it trade basically flat right now i am curious why you think apple stock has underperformed year to date in general, though. >> yeah. i mean, look, last year was a tremendous year for apple. the stock was up 70 plus percent. it was a significant outperformer and so i think entering this year the stock has been trading at about a 5-to 7-year valuation in absolute and relative terms, and we have an iphone cycle. and so when investors are

looking forward, which is typically what investors do for any stock, they're looking at a high valuation relative to history. and looking in the next year, they're coming off a pretty strong iphone cycle this year and very strong ipad and mack sales because of the pandemic. and so there is some nervousness that apple's growth rate will materially decelerate next year and could be potentially negative next year the question is that a relatively high historical valuation after a great run in 2021, what's the catalyst to push apple higher going forward? and i think that's what's caused the underperformance i think more broadly, we've generally seen high quality stocks not fair as well as recovery or value-oriented stocks this year and apple falls in that high quality category. >> and tony, you mentioned the pandemic and what that has done to sales of at least computers

there have been some on the street who are actually lifting their pc forecast as i.t. budgets are rejiggered as companies figure out how to have more employees work remote does that make sense to you, that we could continue to see momentum behind hardware as i.t. gets rediscovered? >> certainly in the near-term we can. but we've gone from selling as the pc industry has gone from selling about 260, 270 million units three years ago to potentially 360 million units this year. so tremendous growth in the last three years in pcs and a lot of that this year and last year was due to the pandemic and i think that was for students and people working at home so i think we've had an unusually strong one-time surge

in pcs that will likely persist for at least a couple more quarters but i think next year we could have a pause and we could have a retreat in the pc market. we're forecasting pcs to be down next year, and then potentially normalizing to low single digit growth after that. so we have had tremendous sales from the pandemic. in essence, we've almost bought ahead. i think there will be a digestion period next year which will likely lead to negative pc growth in 2022 >> we're looking at shares of ibm. next year having reported, and jim quoting you this morning are you positive on the stock at this point >> i'd say we're certainly more balanced than we have been generally over the last five or six years. we have been more on the cautious side on ibm and our biggest issue is that the company hasn't grown, and when a technology company can't grow, it's -- it has negative

operating leverage cash flows fall by even more and that's obviously very difficult around valuation i'd say what has changed a little bit in our eyes are two things one is there's a new ceo and he's actually changing the portfolio. so they bought red hat that's adding about 1, 1.5 points of growth a year. they're di vesting the i.t. outsourcing business at the end of this year that's a much slower growing business that will add another point or so of growth and they've made other select acquisitions in divestments. structurally a company growing minus 2 % a year before we think can grow 1% or better going forward. that's point one i think there's structural improvement happening at ibm i think the second thing is that sentiment is really, really poor the stock is underperformed this year even when value stocks have done really, really well it's underperformed by more than 30% over the last 12 months.

and now things will get better the comps get easier ibm is doing a spin off. i think the risk/reward is getting favorable for ibm after what has been a tough period for the last five years and sentiment-wise for the stock over the last year >> i want to get your thoughts on tesla and everything we're seeing play out there. shares were under pressure yesterday. there's a fatal tesla crash under investigation right now. raises questions again about safety for the company also there were the tweets from elon musk. investor take away here? >> yeah. look, earnings are next week the focus is going to be on profitability. we know the volumes are good the question is going to be about automotive gross margins investors are expecting those to go up. that's going to be the key focus e area i think in terms of the auto pilot, this is more a marketing

and communication issue than a technology issue the technology issue is -- it's not ready. cars are not ready to be driven without strict driver attention in almost all circumstances. and tesla in terms of its marketing is calling it auto pilot. elon is talking about limited user intervention. that's not the right marketing and the right messaging. self-driving technology is improving. we think there will be a time, but it's many years away where there will be many types of conditions where people will not have to have full attention on their cars that's not the case today. unfortunately, tesla is at times suggesting that isn't the case and it isn't putting in features like tracking user attention and our eyes on the wheel, et cetera and that's really the disconnect that needs to happen >> all right toni, thank you for joining us today. >> thanks for having me.

>> as we head to a quick break, here's a look at the road map for the rest of the hour we're starting with erwin simon >> plus more on today's earnings trade. we have j&j on the move this morning. and where are the workers? a closer look at the labor crunch and reopening challenges for businesses across the country. a lot more "squawk on the street" is back in a minute.

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it is 4:20 it's going to keep our eye on cannabis today the house passes legislation that would allow banks to provide services to cannabis companies in states where it's legal. bill moves to the senate joining us to talk about the sector, a senior research analyst. vivian, always good to get your take on where the business is going. good to see you again. >> thanks, carl. good to see you, too >> i saw the other day you raised your tam for 2025 to $41 billion. i guess you see a confluence of things coming together is this safe act one of them >> it's not. it's the underlying moment all at the state level

since the november general election we raised our estimate for 2025 from $30 billion to $41 billion as more and more states are legalizing cannabis. >> so what do you think the picture is right now in the senate, i guess, specifically. more broadly at the federal level? >> sure. so my colleague in the washington research group has written about this extensively we don't think that the current version of the safe banking act that passed the house is actually all that attractive to the senate committee they're looking for social justice to be included and that's, of course, going to be an issue in terms of them getting ten republicans to sign on we think the better outcome and the more likely outcome is a modified version of the state's act which decriminalizes c cannabis at the federal level but prevents interstate commerce >> when you talk about the momentum at the state level, i know there's a couple states that those in the industry are

eyeing particularly. i don't know if it's for the remainder of this year or going into next year what are they? >> for this year it's connecticut and rhode island as a reminder, we've already seen arizona, new jersey, new york, and new mexico legalized for adult use cannabis as we think about 20 22, pennsylvania will be a big one. it's already a very large medical market approaching a billion dollars. we do see and hear from industry insiders that republicans in the state assembly are increasingly warming up to adult use cannabis >> what names do you like? >> our best idea is green thumb industries we're also outperform rated on intraleave as the top three. >> vivian, we're going to keep it brief this morning, but obviously we're going to come back to you early and often. happy 4/20 we'll see you next time.

>> speaking of the cannabis sector, frank holland joins us with erwin >> thanks for being here, erwin. >> hopefully everybody gets a 420 later onto drink okay >> i'm glad you didn't miss that opportunity to promote we'll talk about cannabis, cannabis and consumer packaged goods like that 420 good and other goods. till ray voters, they basically punted they're going to have their final vote on april 30th your shareholders voted in favor of the merger. where do you think the merger stands today in your mind? >> so number one, our shareholders, 99% voted in favor of glass lewis and recommended the deal on both sides i don't think till ray shareholders at all punted it's just today with retail shareholders out there and apathy in voting, it's going to

take longer in regard to getting the vote done. we will get the vote done. i'm confident of that. and as i said before, you know, the merger of the two companies will be great for both sets of shareholders and vivian talked about raising her targets out there and the opportunities in cannabis i think i see tremendous, tremendous synergy savings, growth, and when legalization happens, the new till ray will be ready to make a major entry into the u.s. markets. >> you know, tilray shares doubled to date. one of the things you talked about was the global cannabis market and the opportunities there. but today 90% of the global cannabis market is in north america, the u.s. and canada where do you see growth beyond north america? >> so great question, frank. i look at europe medical cannabis in europe is major today in germany and

portugal and spain london, the uk and france. so number one, i see tremendous opportunity in medical cannabis in europe. i also see legalization happening in germany i see it happening in portugal and in israel. i see it happening in deutscheland i've come out and said this here you may see legalization happen in europe before you see it in the u.s. and the thing about the combination of a free in tilray, the combination is over a few billion dollars in sales we'll be the largest cannabis company in sales in the world. with that when the u.s. opens up, we'll be ready to come into it with our knowledge and balance sheet and ability to grow and our ability to market our brands and we have some incredible brands and incredible strains and potency gone through the regulatory in canada so once the u.s. legalizes and it decides if it's the one-tier, two-tier, or three-tier session,

what company is better positioned than tilray to be a leader in the u.s. market? >> that's a great question we had vivian azer on. she said their best pick is green thumb industries in the u.s. and the consensus is that the multi-state operators to have an advantage over the canadian operators. how to canadian operators catch up when the u.s. operators have dispensaries and grow licenses already set up in the u.s. >> so you just said it they have grow licenses and dispensaries they are multi-state but we still do not know what legalization looks like. does it become like the liquor industry or alcohol industry where you only are one multi-level. you don't know with the size of the new tilray with our balance sheet, there's a lot for us to buy and a lot for us to merge with that we'll be a global company. if you look at the multistates,

there's a lot of competition in the u.s. when you have the foothold that we have throughout europe and the foothold within canada, with our tilray bill business and our harvest, we'll be well instilled into consumer products that are parlay to cannabis the problem is today you don't know what legalization is going to look like when we do legalize so i'd rather pay more and have a good view of what legalization will be and what it will look like and look to the partner we want to be a part of >> it's morgan i'm curious, given the fact that canada was so far ahead, at least ahead of the u.s. in terms of legalization, i mean, there's been a lot of hiccups and challenges within the market it's affected quite a number of the canadian cannabis companies in general what are the lessons to be learned there? >> that's a great question, because think about the lessons that we learned from canada. and now we can parlay them into the u.s. market once legalization happens

there was too many -- there was over 500 licenses given out. there's multiple brands. there was a slow start on opening stores in the way you could advertise the product, the canadian government stopped a lot of that so with that, listen, aphria is the largest cannabis company in canada my objective is to grow us to a 30 % market share. the other thing is as we look to enter into edibles and drinks and other products, the knowledge we have learned over the last three years and to be able to bring that into the u.s. will be tremendous for us. and again, you know, it's the unknown out there. we keep talking about safe bank act, and you heard what vivian said, there will be changes to that we talk about legalization we don't know what legalization will look like once it does happen >> you know, one last question before we let you go

we're talking about legalization one thing we don't talk a lot about is the elicit market the elicit market has a well-developed supply chain and customer base. how do legal people get people to stop from elicit sources to a legal source >> another good question that's one of the big things in canada and one of the things you've seen whether it was the alcohol industry where they had bootleggers and how did they get rid of all them when they legalized it they put regulations in place. in regards to the quality, the strains and when a consumer knows he's buying the product that he knows he's buying a product that's safe, and you know what is the potency level the other thing is you, you're managing retail prices with that today when you have a lot of outlets that sell the product, you have brands out there, and frank, what's going to happen is the cannabis business is going to be a consumer package good business no different than you're going

to talk about peg in a little while. you're going to see the big consumer package good guys into this you're going to see drug companies into this. so it's going to continuously be a big business, but it will be about branding and quality and about regulatory and it will be about the companies that put all those processes in place that can really grow this into the hundred plus billion dollar industry that's projected. >> go ahead and enjoy a 420 beer today. thank you for being here on 420. i appreciate it. >> thank you keep your eye on boeing this morning. one of the worst performing dow components about a one-month low here as the company says the cfo will retire in july extending the retirement age for dave calhoun from 65 to p 0 70 shares down 3% we're back in a moment

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news alert regarding the johnson & johnson covid vaccine. european regulators now say a warning should be added to the

product information that mentions blood clots as a, quote, side effect though a rare one. and they also say the benefits of the vaccine continue to outweigh the risks we'll keep our eye on j&j. also on the heels of earnings, of course, today >> yeah. which is giving lift to the stock nonetheless. it is now time for our etf spotlight. we're look aing atticer ita. it's under treasure today, down more than 1.5% lockheed martin below estimates. increasing full-year guidance. earnings of 656 per share boosted in part in gains by the venture arm which involved three modest investments that went public through what else, spacs in the quarter across the portfolio toe and margin performance in line with expectations the outlier being space.

it saw a decline since the rocket venture with boeing no launches in q-1 versus the same period last year. ula making news as amazon's new launch partner to deliver some of the broad band satellites to orbit as part of the $10 billion kieper initiative. shares of lockheed martin down about 1% don't miss my exclusive with the lock lead martin ceo this is the first interview since becoming ceo last summer it will air tomorrow in this 'lbeasrn:00 a.m. ete wel right back. stay with us ♪ ♪ (upbeat music) ♪ ♪ ♪ ♪

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welcome back here is your cnbc covid update at this hour a week-long lockdown in new

delhi. new cases did retreat a bit from the record high to just under 260,000. that accounts for about 25% of the global count of new infections in the u.s. covid cases in children are accounting for around one out of five new infections with more than 88,000 reported last week yale university now one of the growing number of colleges that will, in fact, require covid vaccinations for students returning to campus in the fall. on his facebook live feed, ted nugent said he thought he was dying. he has tested positive for covid-19, something in the past he said is a scammy pandemic >> thank you as we head to break, it's a mixed picture in the ev space today after names like nikola, lordstown and workhorse fell

there is a standout, fisker. shares are up about 8% 1336 is the vel the.leer there's more ahead stay with us these days you have to keep everything moving and reinvent the wheel. with a hybrid, you can do both. that's why manufacturers are going hybrid with ibm. with watson on a hybrid cloud factories can use ai to automate the little things so they can focus on the next big thing.

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too many investors are poorly positioned for inflation is a warning what changes you should make to your portfolio on trading nation more "squawk on the street" straight ahead we made usaa insurance for members like kate.

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the restaurant business are now possibly going into a different businessline where it's delivering for uber or driving for uber or lyft or delivering food when you couple that with unemployment benefits that are being extended now through september and people can stay home and made more money than if they worked. al that together is creating this dynamic and we can't find people >> david rosenberg joins us. i asasume you listened to that. i appreciate your take on that it stopped all of us 2500 positions you can't fill because you say people are collecting unemployment or becoming uber drivers? what's your take and what does it mean? >> i'm sympathetic to his viewpoint, but we're in a place we've never been before. we've got -- when you look at the number of americans on at least one unemployment benefit program, it's 17 million that's a staggering number before the pandemic that number

was basically a little bit more than 2 million so maybe for the time being it's difficult to entice people who are actually getting paid to stay at home i would not exactly call this a permanent situation unless the biden team is taking us to a european style universal basic income but it could well be that the benefits are so attractive that it is keeping people at home as opposed to actually heading back to work at least right now >> yeah. well, when we had the conversation about okay, raising your wages, that ceo, in fact, pushed back a bit. didn't seem to think it would necessarily produce the desired results. what about wage inflation overall given what at least may be right now perhaps a short-term phenomenon of not finding workers? >> there was evidence in the base back and you see the survey data that wage intentions are picking up i don't know why you would do

that this is all -- the fed's operative word is transitory when it comes to inflation, but also when it comes to what's happening on the supply side, demand side dynamics with the economy. you go back a year and it was the enclosure in demand relative to supply that caused that deflationary episode which is temporary. now the supply side is opening up slower than the case on the demand side. this will be an attempt where i wouldn't be -- i am a business person, but i wouldn't be out there on a short-term basis throwing out wage increases on something that seems to me to be a little transitory. the other thing that i would just throw out there ask that there is actually a ton of excess capacity in the economy we've got the short-term phenomenon will people are getting paid not to work, but i'm hoping it's short-term, but when you look at the data, you know, the tightness in the labor market or i can't find workers

is not there i mean, so the surveys are the surveys and the anecdotes and the story telling. that's leading it to one direction, but let's look at the data i mean, we have 9.7 million american who is are officially unemployed and then we have another 6.9 million who actually aren't counted in the labor force but if they were offered a job, they would take one the bls actually gives us that information every single month, and then we have another 5.8 million americans who are working part time but want a time job you have a total pool of available labor of 22 million. and the month before the pandemic it was 15 million so we actually have in excess of 7 million of idol labor market resources not being put to work right now because of fiscal policy but i think that once if we allow these very generous jobless benefits to start ruling off in a judicious way, then

we'll start to find these people and go back to work. but there is an enormous volume of available labor out there for businesses right now >> yeah. i get all of that, but david, i mean, just to go back to the point about businesses and this idea of wage pressures, or i guess possible wage inflation being transitory, i mean, what-- would businesses be raising wages right now if they didn't have to i wonder, i get freight costs and shipping costs and energy costs and food costs those can be transitory, but how sticky versus temporary are increases to wages >> well, i mean, it's -- unless you believe that the government is going to continue to pay these people not to work indefinitely, what's raising wages going to do? i mean, in 2020, i was impressed that in a year where we had an implosion in employment, businesses actually spent 7% in volume terms on i.t. own

software that led to the best productivity year we've had in the past decade. why can't you skate through with what you have, work your existing staff into overtime, and all the technology that was bought, i mean it was -- 2020, imagine making ice cream out of sour cream, but it was a great year for productivity last year and there was a lot of money spent on automation. so i'm looking at this dislocation labor market as something that's temporary, and you hear about wages and yet, you look at the amount of fed wage tracker. again, let's look at the data. there's lots of story telling and lots of narratives and anecdotes and survey diffusion index survey data. look at the hard data and atlanta fed wage tracker it's slowing down. it's lower than it was this time last year. i'm hearing the narratives i'm look agent the data and thinking you know, lots of story telling going on people talking about retail.

more than 80% of the retail jobs lost have been brought back on stream you look at some sectors, transportation services is part of the dislocated supply chain that we have but financial sector employment, pretty well a record high. residential construction, pretty well a record high high-tech, pretty well a record high so you are seeing a lot of sectors that haven't had much problem taking employment levels back to all-time highs but it seems as though -- i guess we always have to gripe about something. the bottom line is wage trends, just look at the average hourly earnings numbers now are starting to slow down. i think that's going to continue but the atlanta fed wage tracker is the best and it's not justifying what the anecdotes are telling us right now >> thank you >> thank you coming up later this morning on tech check. zillow group's co-founder will

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welcome back to "squawk on the street." i'm dominic chu. losses behind me, the lows of the day down one-half of one percent. and pacing declines now, a blisters start to the year, things cool off for this energy sector pulled back since march. lower on the day in the sector, devin energy, diamondback energy, you get the picture. today mark as significant anniversary. one year since the world watch oil futures contract go negative in price during early stages of the covid pandemic after being at minus $37 -- minus $37 per barrel keep an eye on oil prices.

morgan, back to you. >> what a difference a year makes. dom chu, thank you. and cnbc is a partner in this and here's dallas mavericks owner mark cuban. >> best financial advice i ever got, number one, don't use credit cards number two, spend less than a make number three, invest in understanding finance. if you don't understand finance, it's awful hard to know what you're doing. good luck, everybody.

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first to report this story and able to confirm the price tag includes about $500 billion in tax credits, in particular the larger child tax credit extended through 2025, not made permanent. cost of this package expected to be offset by higher taxes on wealthy households the options the white house is exploring restoring high rate on high-income earners and getting rid of stepped up bases among others a white house spokesman tells me president biden is expected to formally outline the proposal in the coming days saying details ar finalized and speculation unsure could be tough for lawmakers to swallow especially trying to still swallow the first phase of the infrastructure bill. >> something to watch closely. thank you. down side of soaring housing

prices is a surge in property taxes. robert franks showing just how much more americans are paying and who is feeling the most pain, robert. >> reporter: morgan, if you own a home chances are just got your tax bill and it's a lot higher americans pay over $320 billion until property taxes in 2020 biggest increase in four years average bill over $3,700 4.4% increase over 2019. a report according to adam solutions. effective tax rate flat at 1.1%. the increase driven mainly by rising property values and housing prices new jersey leading the nation in property taxes with average homeowner paying $9,200 and wins highest property tax rate at 2.2% twice the national average illinois in second place for tax

rates followed by texas, vermont and then connecticut the county with the highest average single family home taxes is rockland county in new york state at nearly $14,000. for the lowest property tax rates and, of course, great sunshine, head to hawaii .37% paying less thanes 3ds,000 a year property tax attorneys saying they are seeing a record number of appeals and challenges to these assessments. towned and schools taxed by covered id, unlikely to get any relief. >> interesting question how strained the budgets are a year ago anticipated really lights out, given, perhaps, a better performing economy and than some anticipated. things like from the market going higher and the aid from the federal government, robert i wonder how strained are they

>> reporter: the federal government, you know, that 2.x trillion dollars a lot going to 600 billion to state and local governments is a huge windfall and question for especially school districts, how much do these higher costs, will continue to be higher costs going forward or a one-time thing. you know that with many people already looking at higher tax rates on a federal level, on a state level and then property taxes, a lot of people, especially in the new york area, are going to be fighting this. >> yeah. also speaks to, robert, something else you've watched closely. the assault deductions with lawmakers in places like new york pushing to see caps go away. >> reporter: yeah. maybe not go away, at least increase we mentioned rockland county now $19,000. already nearly twice the cap, maybe bring that cap to $15,000 to $20, your property bill brings you over that salt cap.

>> thank you rockland county. a little surprised >> wouldn't know. >> all right >> seems awfully high. >> seems high. just another look at markets. major averages are back in the red today. s&p down about 0.6 of 1% that does it for "squawk on the street." "techcheck" is going to start right now. ♪ happy tuesday and welcome to "techcheck." i'm jon fortt with carl quintanilla and deirdre bosa. coming up on the show, an apple event in just two hours. how this plays into apple's larger strategy. plus audio goes boom mark zuckerberg thinking about audio with facebook and

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