it's altria. i want to look at its yield relative to the things we've talked about but the chart itself. in a conversation relating to the cost of capital of course at the bottom of this small screen that i have created we have the benchmark, right, by which many assets in the world are priced. at the top of this of course we've got altria. so you can -- you can get a close yield from utilities and real estate and so forth, but this one is the least sensitive to rates and that appeals, i think, and is important. now, some charts. these are the three that really matter in the middle here, and look how closely correlated they have been over the last two years. so utilities as measured by the xlu, all reads and the dividend paying etf. now i want to put in phillip morris. here they are without, here they are with. so all about the same yield and yet the one that's got the best yield has been the best performer. they all traded about the same forward multiple in terms of earnings, but i like of course

s sab, altria moving. a lot of moving parts. it's not a done deal by any means, but one of the largest of all time. >> you will talk with chris albrecht of starz later today. jim what are your thoughts out west? >> these are deals so positive it makes me want to say, okay f the fed does something you don't want that hurts the market, circle back to molson coors. why? molson coors will be the new con te constellation. the justice department would demand that -- of the -- that tap gets the miller take. s cerona merging? this was a three-way olygopoly. you get this deal going, another place go is shine. the one not involved is the winner. >> fascinating. in terms of -- we'll knock around the fed this morning and later on tomorrow morning while we await the decision. there's a growing sense, jim, that the market is prepared for what they're calling a dovish hike. fed rate hike not likely to spook the economy. i doubt that's a headline would have written. >> absolutely not. i'm listening to steve liesman this morning. when you see 50

they have to work out how altria kennedy has a.u gave them the cash equivalent well that means they have a big caudal game tax tax exposure.big we will look at how they will satisfy their number one in shareholder and the bond market is rubbing its hand in anticipation. it was the air record bond sale -- could we see a record bond sale? it would be bigger than verizon communications back in 2013 which set the precedent with $49 billion but many excited about a visit deal. -- jonathan:oline: caroline hyde, thank you. now despite only taking up at mull isrole on friday, pushing for a reorganizationer a ofkswagen to take them out the scandal. from berlin, chris, what is muller proposing? can you give us specifics? is aboute announcement working go volkswagen structure. we know from the scandal one of the problems is it was very hierarchical and volkswagen was centralized. people were up for bring all problems. that is what miller is trying to address. it is pushing more responsibility to the brand and more to the regional level. and i

at the top of this we have altria. so you can get a close yield from utilities and real estate and so forth. but this one is the least sensitive to rates. and that appeals, i think, and it is important. now, some charts. these are the three that really matter. in the middle here. and look at how closely correlated they have been over the last two years. spo utilities, as measured by the xlu, all rights, and the dvr, the dividend paying etf. now i want to put in philip morris. here they are without and here they are with. so all about the same yield. and yet the one with the best yield has been the best performer. and they all traded about the same forward multiple in terms of earnings but what i like is not only the yield, but it is the tentacula setup. so here is our chart. you can draw the lines the way you want. here is how i would draw them. one of two ways, a second of two ways. so let's go back. there is your chart. call this head and shoulders bottom, either way, the presumption is some sort of resolution to the

let's not forget that altria, the domestic tobacco kingpin behind the marlboro man, happens to be the largest shareholder in sabmiller. vice loves each other. if ab inbev can actually buy miller, that will add a huge pile of cash to m.o.'s enormous war chest, to fund deals, to return to their shareholders. or an even more beneficial dividend than their current payout. here's the bottom line. i'm not recommending the vice stocks. i'm here to try to help you find the next sabmiller, which we already did. instead i want to understand why these mergers have become so necessary. in a world that's become increasingly hostile to the tobacco, alcohol, and gambling stocks. in these health-conscious days, with governments desperate for revenue, for the vice squad, let's just call it as we see it. it's merge or die. let's go to ben in texas. kaunchs b kaunchs. >> caller: big old booyah. i've got a p. e.g. of 1.7. is it time to buy? >> people are concerned that this coal can a cola monster distribution issue in europe is cluttering monster sales and losing share to red bull. i think the coca-cola

and one would expect given altria's decision to take itself out of a conference, it at least has some sense as to what the proposal will look like. it has said in the last year it would be open to potentially selling that stake in sab though it has also said it's perfectly happy to remain a large shareholder in that company. it's going to be interesting 28 days or maybe a little bit more. back to you. >> plenty of beers could be downed in that time. david, thank you very much. >>> shares of fed ex taking a big hit right now. let's look at the chart of fed ex. the parcel delivery giant missing earnings estimates. down 4.5% or thereabouts cutting its outlook. why are we focusing on fed ex? why not. it's widely seen as a barometer of the economy. morgan brennan is here with more. >> it certainly is seen as a barometer of the economy. like we have seen throughout the transport sector, fed ex's business is catering to businesses doing well. first quarter earnings at fed ex increasing 20%, but it still fell short of estimates. the delivery giant also trimming its full year eps guidance on w

another name to consider phillip morris, now, that's the international counterpart of altria.lysts think there's 3% price upsell because plus it has a 5% dividend. maybe not good for your health but tobacco might be good for your portfolio. >>> for began doing the dirty work thank you very much. morgan brennan. >> lighting it up. >>> 12 minutes to go, 245 points higher on the dow. even as we've said interest rates are moving higher, oil creeping a little higher today, s&p up 26, nasdaq 58. >>> the financials have been one of the top performing sectors as well today but we have someone who says that that's becoming a crowded trade. he will explain why when we come back. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. from and the people whought you underwhelbrought youet speeds. temperamental satellite television. introducing... underwhelming internet speeds and temperamental tel

altria, m.o.se guys are big plays and these are the ones people get nervous they're going to smoke a lot. >> the sin trade. defensive. >> well, listen, i'm more in line with these guys. if china falls apart as we're saying, if they have some kind of depressionary event you might as well buy canned goods as well as cigarettes because we're going to be living in a bunker. in the meantime between bunker living and you buy treasuries because china is going to support their currency. make your money with treasuries and buy all kinds of campbell's soup. >> spy puts. this is what you do if you want to protect your portfolio. you don't go out and buy them when vol is still very high but if we ged get a period where volatility has settled a bit and spy puts look relatively attractive that's one way to protect your profiler. >> still ahead, may the force be with stocks? the new "star wars" movie is three months away but it's already helping boost the market. we'll explain why right after the break. plus tra

the key again, the santo domingo family and altria.ne would think they would like to get out if they can at a nice premium, bring in a new management team to run assets. we'll see. the big cable deal yesterday, did want to mention another deal, not nearly as big or large and more of a split, but nrg energy. this company has run into a buzz saw in the stock market in part because of lower oil prices. david crane, the ceo, got a lot of heat from shareholders. they are splitting, this transition into green co, which will consist of home solar, the renewable operations. it's going to be a stand-alone entity as of the 1st of next year. and it's going to restrain their need for capital there or the need for nrg to give it more capital and hence the ability to return some of that capital to shareholders. stock not really responding to it this morning but worth mentioning because they're running out of patience with this guy at nrg. >> david crane has come on the show a bunch of times. he's a visionary in an industry where we don't want vision

altria among the winners today. there was a lot of deal talk today both positive and negative. and liberty global. they were talking about exchanging some of their assets in europe. they couldn't agree on the value so that is off the table. on the other hand we have nex star making a bid for media general. no winners or very few winners on wall street today. the dow off 252. >> thank you very much. mary thompson. bertha, what's new? what's been happening at the nasdaq since we last spoke? >> very few winners. only a handful of large cap stocks. fewer than about a half hour and i looked right now. it's just intel, discovery are trading to the upside. intel, the chip giant is one of 25 nasdaq 100 stocks that are positive for the month. nasdaq large caps are relative outperforms. if you bring in the chart to look at it's the small cap russell 2000. it has been crushed today and crushed this quarter. down for the first quarter since the september quarter of last year when it finished at about 1100 or so. it's falling below that today. december and march quarters last year saw the i

altria portion is a left over from when philip morris spot miller brewery hoping they would get intoonsumer products. matt: they do have a wine is altria.all to you -- not only the holders are important for the stakeholders. there are joint ventures that have to be somehow unwound if the deal will be done. right.hat is exactly these companies have jb's all over the world. miller coors is the one probably you would be most a minor with which is coors and sab miller. it has been speculated i analysts and others that sab miller would probably have to exit that venture in order for this deal to get done. there are others on a smaller scale all over the world. this is just an enormous complex dealmaking and let's not forget enterap has not agreed to talks. there has been no proposal. all we know is that avi wants to make the offer. pimm: the life very much matt ,ampbell -- thank you very much matt campbell. sab miller combining with inbev. and was came up this morning and said coors would probably take up the rest of the jb and move profit by 20%. and: and the stock up 13.5% we have much