for cap ex. all eyes in this earning season are going to be focused on how much money are they really spending? what are they doing to continue their growth? and how much cash are they really going to leave on hand again? >> and we're talking about having a drinking game here on every time they mention the word weather. >> right. >> apple juice. >> i think it's dramatically overstated. who doesn't know -- >> that doesn't stop any company from ever using it as an excuse. >> bouroudjian, we've gone six minutes and haven't heard from you. >> we're at all time highs for a reason. companies are making money. here is a little secret, rick, it doesn't matter if the fed is printing up money or not. corporations are doing well, and that is the lifeblood of the market. another couple weeks we're going to be sitting here during earnings season talking about how these better than expected earnings are coming out. >> if it doesn't matter, then why are all the hedge fund managers in the world -- >> one at a ti

you question whether this cap-ex is going to come through or not.nk policy here is much more -- has more degrees of freedom. even carney's new forward guidance leaves him a lot of leeway to do different things. >> they are in charge. they don't have to negotiate with other banks. francesco, thank you so much. coming up on the program, investing in energy has gotten a lot more complicated because of rising political tensions. impact joinsvoir us after the break to sort it all out. ♪ >> welcome back to "on the move ." i am francine lacqua here in london. it has already revolutionized the u.s. energy market. now fracking is coming to britain. tom gibson reports. >> stretching 2.5 commenters deep, this rig could change britain's landscape in more ways than one. operated by i guess, it is g the shale rock for natural gas. it is not alone. quadriller is on the front too. the former bp ceo. >> shale gas in the u.k. will make a big difference to the u.k. energy picture but it will not prevent the importation of natural gas from other parts of the world. it

on hiring and on cap ex you don't. some already cover all on their employees.hat's not over yet. >> okay. there's no -- >> how many of them are delayed? there's an election coming up. >> another issue which is worth bringing up, in the world where there's excess capacity, uncertainty about the willingness of consumers to borrow to spend. >> correct. >> and not knowing what the right level of savings is in this most crisis world. why build new plant and new capacity -- >> i think steve is exactly right. >> kwroepg it's the only reason. >> it's annan environment with lack of demand and not a lot of reason. >> people were burned and very frightened. >> that's fair too. >> i want to point out that the 3% scenario from the second quarter and beyond requires cap ex. i would not see it as the turn around. it's been weak. you need a couple together. >> to be sustainable, i agree with that. but there is a stepb areaeo to get 3% if residential construction. >> it seals like the ceos sound much more optimistic about this and sound much more willing to put their money wher

you're about to see a cap ex increase biall these big s&p 500 companies.2,000, the last month was 197,000. there's a lot of good things here, and this is a good thing that there's a little bit of a cloudiness and rain in the markets. >> this goes back to the point that peter boockvar was making which is there are a lot of signs pointing towards the economy moving in the right direction but you get the sense maybe it's not good enough and maybe the fed is too hasty with the relatively speaking tightening plans. >> i say you want to listen to janet yellen, and she says she's going to be cognizant and mindful of the employment. i was very happy with that household number. it was over 440,000. >> big number. >> 440,000. and, bill, the employment ratio is up to 63.2%. it's still low, near 30-year lows, but it's moving in the right direction. so i think there's a consumer confidence is at a five, six-year high. motor vehicle sales over 16 million this week. so, you know, the fed's watching. everybody is watching. and if this patient gets sick, they'll put more m

durable goods a beat, cap ex a bead beat. europe in the green as draghi continues to talk down the euro. a shareholder friendly quarter for apple. a beat on the top and bottom line. increased buyback, stock split calling it the i-split. >> two-faced quarter for facebook. profits blew away the estimates but company warning there might be a new normal of slower revenue growth. >> another beat and victory for cost cuts, caterpillar raising its outlook. sees improvements in the building industry. >> 'tis the season to make a health care deal. zimmer buys rival more than $13 billion is the purchase price. the industry ripe for more consolidation? >> apple coming off the company's best nonholedy quarter ever. results did beat expectations as almost 44 million iphones were sold in the period. apple announcing the seven for one stock split, 8% different hike and increase in the share buyback program. ceo tim cook on last night's conference call. take a listen. >> we decided to continue to allocate the vast majority of the incremental

down in earnings and i think they will blow it away and you will see a rebound in that stock and the cap ex cycle will be strong. we will be volatile until earnings really in full regard next week. >> can i make one quick point to stephanie's. none of us knows if this will be a full-blown correction for thoefthe overall market. corrections are not to be feared. last year we haven't had one. >> the fact we haven't had one when it actually does come, it's an f5. >> not necessarily. >> in tornado parlance. >> i think people overreact. we use the term, complacency a lot. we have a correction on average roughly every 20 months and run their course seven days. the typical correction is 13 1/2%. these are not life ending situations and could happen at any time and i don't believe people should panic. >> that's why you pick themes and if you think the market will improve, it's a stocks up. not the broad-based. >> sheila, what do you think of the stock picking up a little bit over the next 10 minutes or so? >> what you're seeing right now is what traders are worrying about. we saw nice strength in t

peak cycles back in 2007, 2008 percent, you know, the behaviors here, where we haven't seen much cap ex spending, they don't seem like a peak to us. >> and i want to be clear, mandy, that is not my camp. i took a bit more of the hope-ium trade. >> not our personal views, but you were laying out the positive signs. >> my personal view is the dow will be flat for the year. that's part of our prediction. >> jack, let's go back to that. you heard bob pisani talk about profit mannerens and revenue growth. will we get top-line growth for most big companies this year? >> that's part of the faith-based initiative here. i think it's all about nominal gdp. if we can get the fed moving to more of a forward guidance on nominal gdp, perhaps we can get a clearer understanding. right now at around, say, 5%, we should get, say, you know 4.5, 5s% revenue growth, which means we should get 6%, 7% price growth. the problem is, as bob mentioned. top-line growth is great, but there are some issues that could impact profitability, like if we do get higher interest rates, if we do get higher wages, that should

it's all weather, or is it something else the two areas i'm most concerned about are housing and cap ext out of the shape, why? >> i took the redeye, so i'm exhausted. but listen, canada is growing faster. the last time i checked, they had winter, too, in fact the entire country versus just a small aspect. you get my point. are we overdoing this doinggone weather thing, david? >> i think the federal reserve is not managing the housing recovery as well as they should, but it's mostly weather. even if you get a spring in the economy, 3% growth is enough to get us back to full employment. >> it's interesting you mention housing, we were discussing this a moment ago, that is that reifies -- however, they were artificially inflated. >> that big is gone, because rates will move up from here. >> steve liesman, a couple things to look at, jack, anicka, the dow is up just 20 points, with a yield on the ten-year, you like to mark these things down. >> that's why i have my highlighter here. 2. 62% for the ten-year, watches this, folks, seconds away from the fed decision. >> yeah, i think you shoul

>> fundamentally, we believe the economy is still in its stride, and we think that there is a cap ex going to be happening. so we are positioned for that. we're still overweight technology in here, so playing off the other theme. obviously, you want to see the more disruptive names. but we like the industrials, and in particular we're liking the financials. we've been very pleased with the acceleration in loan growth going on. that suggests that the economy is getting its stride. and what has clearly been a slow motion cycle. liz: yeah. but, you know, there's some clarity at least on the horizon here. if you could pinpoint to investors who are listening right now please don't make the mistake of, insert the blank. >> i'd say if there's one mistake that i find investors doing is they keep waiting, they keep -- even though they don't like what they're getting in their fixed income yields as we've already talked about, they're just afraid to get into the market. and i believe that this is an economy that's still got some legs left in it, and this is a stock market that's still reasonabl

. >> what you have there basically our theme of cap-ex facing tech in the form of microsoft which finally begun to catch a bid as you were alluding to, liz. we think it is pretty cheap. 15 times earnings foe ward and $50 billion in cash. in addition a industrial company that produces long and short cycle products to take advantage of increasing global activity. last but not least the energy renaissance taking place in north america which halliburton is major oil services company is beneficiary of. it is a play on pro-risk stance we act advocated not just for domestic exposure but synchronized global economic expansion. david: scott, i have just to wrap but i have to ask you if you see conviction in the market like this on the buyside tomorrow, are you in or not? >> yeah, i'm in. it is going to be bumpy but yes i'm in. i think by end of the year, because we're going to have probably an 8% gain on the s&p by the end of the year. but it is going to be a hairy ride. i think if we see conviction, there was good healthy paper buying in here today. if that continues tomorrow i think that will be

we have issues with housing, issues with cap ex spending that i believe rick you have some excellent points about that i think the administration could do well and change. however, we do have extensive r&d expenses. >> last word to david kelly. >> i'm glad they're tapering. they need to keep doing this, and if you have this much government intervention or federal reserve intervention, you will pay a price. it will be a long-term price, but you will say a severe price. >> are you saying there's no such thing as a free lunch? dang. >> it's a very long dinner and the bill is delayed. >> could i just also finish up by saying this,s it is 25th anniversary of cnbc. but there's another important anniversary next month. not nearly as important. the three-year anniversary of hope -- so it launched this i a idea. >> it's been a better bet. >> and i think you have -- >> because when your buddies are truck drivers and software sales, you get out of doinggone new york or san francisco or l.a. with the fake economies and talk to people in the real world, things are hard, but they have been getting

our issue is really that they're spending cash through cap ex, and their roic, return on invested cashit's really a function of how well they do with those new investments, really unproven in terms of the track report relative to the s&p, so we would be really neutral at this point. >> neutral on the fundamental side, and do not like it on the technical side. by sure to check out the online edition of "talking numbers" as well. >>> if you think the nasdaq sell-off is a bit of a popping of the tech bubble, think again, at least if you look at this headline. they're making an eye-popping buy. on the phone right now with this news. if my information is correct here, he's buying another 10% stake, to $500 million which would value the company at, what, $5 billion. >> online dating. >> guys, the market has already said they don't think that's the right value. the stock is only up about 3% right now, which would put the value of that stake at about 140-ish million, 150-ish million. so exciting, though, this was a real unicorn that ioc had incubated. a 10% stake got picked up by a venture cap

done for you, it's out3r678d so freres this year, but i think ultimately the 2014 story goes back to cap ex're seeing this in. obviously this is a carl icahn story. a lot of people have talked about the fact he's trying to push the board in a different direction and some of the processes. when you look at this. may 5, may 60 call spread, 10,000 of those were bought today, traded around 1.20, but expecting to see this stock move over the next four to six weeks when these expire. very, very intriguing. >> you're going stay in it? >> i was in it before this trade. i did not add to it today because i'm already in t. but i expect to see this move. i feel like the carl icahn side of this puts basically a put on the stock, so i look for more up side and feel like i'm protected to the down side. >>> um canning up on the half, there is movement in emerging markets you need to know about. that's coming up next. huh, fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that. well, did you know bad news doesn't always travel fast? (clears throat) hi mister tompkins.

housing and cap ex. those are two things we'll knee to accelerate if we get to 3. >> doc, i want to hear from you, the theme we've developed is energy. >> yeah. >> if you look at s&p leaders, the stocks that have led, four of the five are energy companies. if you look at the dow, chevron is among the leaders in the best performers in the month of april. is that a theme we can bank on? >> it's a theme you can continue to bank on. i have already banked on that, judge. as you know, in the playbook, one of my top stocks is baker hughes. i believe that will continue. the reason for it is, i believe the president will say ixnay to the xl pipeline, and i don't believe mr. putin will back off and leave ukraine. that means energy will be a focus. how do you play it? >> domestic. >> fracking. exactly. like crr, like emes, scla, and these are stocks i have been in and out, some of wish i had never sold, one up 60% year to date. >> judge, real quick. >> make it quick, please. >> well, i can't if you keep saying that

. >> it's not only mma but cap ex as well. if you look at consumer confidence, it's held up nicely.nce, it's rebounding. the fed is the driver of this. >> we had a guest earlier this morning who said, look, this is what you expect. but for the first time in her career, you are seeing deals that actually make sense and the stock goes up because they are created immediately. >> you worry about it getting wasted. in times of this, folks will be thinking strategic. folks will be thinking about complicated earnings. they are looking at their businesses and say how would an inside see these businesses. it looks at a company that spends a tremendous amount of r&d. it is about reducing r&d. >> for now it's been good for shareholders. >> julian, i would think that the activist stuff is animal spirits. a lot of management is entrenched. business as unusual. they're afraid. maybe you need them to come in and shake things up. >> mma has been missing from the bull market. we're up 17%. maybe it is tempered animal spirits. >> they see value. they're trying to shake up a little. juli julian, thank

>> you're saying cutting back on cap ex and r&d?ey're spending on engineers. cisco is already doing that, as well. ibm is retooling some things, and looking at spinning off, you know, potentially chip operations. so does the pressure increase as the year goes on for them to manage the bottom line, because the top line isn't doing what -- >> well, i think faulting them for m&a costs and an earnings hit, where they still largely managed to maintain growth, quarter after quarter, talking about google now. but then looking at other companies, why did microsoft end up where it is? they didn't take the big bets into the future when things changed so rapidly. >> the problem "the new york times" raises, google is protecting itself about the distant future, not the near-term future. >> i think you could say glass is a three to five-year bet. the robots are a ten-year bet. but cnbc, in 25, a decade comes quickly. >> i want to make one last comment about ibm, john. there's one word that keeps popping up that's worrisome, and that's the word le

to talking about it later in the show, i don't see cyclical upturn in business fixed investment or cap ex troubles me. it's a key component not only of gdp growth but of job creation. they're not making that long-term investment in factories and warehouses and office buildings and what not. it's something that alan greenspan has talked to me -- i interviewed him a couple times the last few months. he's raised this point. it's not a full-fledged recovery unless you have the business sector involved. so far i don't see it. i wish i saw it but i don't see it. >> you do, don't you? you think companies are doing great. >> i'll still bullish. i don't try to forecast the number. i do this like i bet football, the over/unders. that's me. the over/unders are roughly 200. i think it will be over. there's probably something to the weather. who knows how big the weather impact is. i don't know. i think it will be over. i think larry raises a good point, though. in the early cycle you don't see business fixed investment. you have to use up the capacity that is left over from the previous cycle. i pers

companies are now saying we can buy chinese equipment we like down 40% and we're trying to save money on cap exause our investors are pressuring us not to spend so much money. there is deflation in not only mining equipment but oil and gas equipment, everything that they do, there is pressure. just to put it in perspective, capital spending in the mining area, which is $5 billion a year, in the early '90s got to 15 billion a year in the early millennium. it got to 145 billion a year at the peak in 2012. it's now down to about 120 billion. people really do not understand just how much of a boom there's been in capital equipment ordering in the global commodity boom. and caterpillar was the number one beneficiary of that. >> have you increased your shortened position? >> when the price goes up, becky, you automatically increase your short position. >> did you cover all your shorts in medical equipment? >> pretty much. >> does it make sense that you covered? >> we covered them after we read the bill, after we read obamacare. >> if you look at the news today about opening up the books on medicare r

an end, right, tesla is getting all the engineers, they're going to have to invest in a lot more cap exo keep up. >> i don't believe it in at all. when you saw the inventory numbers, we're back to 65 days. that's -- we had 70s. i think we're seeing -- there's going to be 16, 17, the build will be fine. you know what, let me say that there's -- if you've been recommending gm, the pain is so great, it's almost like you just take that anvile and throw it away today. we used to call it at my old hedge fund that you managed to come up with a bad letter, this is the maiden in the volcano. like karen cramer used to say i don't care we're throwing one of these stocks in the volcano. i can't take the pain. this is i can't take the pain call and you know what, sometimes those -- you have to go to the other side. other people that have come on the air and said they can't take the pain, it's lower. you have to take the other side of the people who can't take the pain. gm, i think that gm is a buy not a sell. >> i like it. now, of course, you're been a holder here through this. >> i've been wrong. h

and people say that's why cap ex accelerates, and if we're going to invest we better do it now before what commodities that are increasing and not increasing. talking about commodities increasing, not seeing strength in base metals or copper and things economically sensitive start to move. you're seeing things that could weigh down on consumer spending start to move, the food and energy prices. now that we're talking about energy, too, i want to point out that the leadership that we're seeing, and dominic just talked about it, was in energy and utilities and health care. that's not really an aggressive posture for the market. usually you have a market in a bullish mode you have a broader array of industries leading the market. we're not seeing that yet. i think it will happen but don't think the market is ready for that yet and think we have more reason for volatility in front of us. >> you say you think the markets will still end the year higher but will be volatility in between. i'm wondering what specific thorns for investors watching at home you think they should be watching out f

and then, in a rising rate environment, you begin to see things like cap ex and m&a pick up in the latter on it. i think the weather definitely had an impact in the first quarter. but i'm not ready to say that's the reason. i think you'll see a lot of companies use it as a crutch. to mask sort of real robust revenue growth. and i think coca-cola is a great example today. it was a decent report. global growth company, right? decent report, but onto revenue line, it was soft. and there wasn't that robust economic, you know, here we go, we're growing type of mentality. i think you're seeing that across industry spectors. look at the banking sector last week with wells fargo and jpmorgan. reasonable growth stories but not robust. that's sort of holding us back from being real aggressive on the forecasts in the second half right now. >> the heavier growth names, michael, have been quicker to reverse in a psychological market that all of a sudden becomes spooked like we've seen in recent weeks. where do you find growth without finding risky growth? >> well, we would be sort of contrarian in a s

we often debate whether margins have peaked, whether we are beginning a cycle where cap ex will comewhirlpool spending money and hiring and seeing those margins eventually start to come down? >> well, we certainly don't see the rise in the margins would come down. in fact, quite the opposite. we've set some goals for margin expansion, and we're progressing towards them. we're actually in recovery mode in most parts of the world. so, you know, it really depends on which market you're looking at. but in the case of the united states, which is our largest market, we're very bullish. we think we're still early on in the recovery. and we think we have demand recovery both in north america and in europe. we have seen some weakness in emerging markets, but that's normal for an emerging market. it's never straight up. but overall, based on where we're investing, the market recovery, the new product innovation we're bringing to the marketplace, we're very bullish about profitable revenue growth with expanding margins. >> jeff, how much of that is due to pricing as opposed to outright demand?

. ♪ the ex-meow mix guys but they're thinking caps on.thing we could think of was refrigerated. it is a $20 billion market and in 70 years, that has not been any innovation except dry dusty kibbles. i could take any of those pet foods, cut them open, put them on the floor, and you cannot tell me which they go back in. the innovation has been very small. we have become very innovative in making fresh food for dogs and cats. >> tell us about the specific kinds of food. it is very easy to kind of make light of it, say, well, are you feeding and animal food that is better than some humans get and so on. can you describe some of the nutritional issues and how that connects to the health of the animal? >> there are two great trends. one is the humanization of pets. they used to sleep in the back yard. now they are in your bedroom. the other one is health and wellness where people are thinking about themselves eating better and when you look at the humanization of the pets in the house you go, wait, he is part of the family. i am eating fresh fo

ex prices may discourage cap -- capex. >> what about those risks?sks are part of the result of the success of the u.s. oil production. there are many industries in the u.s. that benefit from lower energy costs, and of course there is one big client, the american consumer. on the net, for the economy, lower energy prices in the u.s. -- >> lower gas prices. >> relative to the rest of the world is a huge boon to consumers and to industry. >> in health care, you really like the biotech area. littlehas been looking a closer at biotech possibly being a bubble. >> there has been a lot of talk recently about whether biotech stocks are in a bubble. i will let you judge for yourself. in the white is the run up on the s&p. last year, the biotech index up 74%. you are seeing a correction in the past couple of weeks. they look pretty expensive if you look at the price-to-earnings ratios. is amazon territory. i point this out because this is a hot stock. investors asking not only if the stocks have run up too far, too fast, but if the drugs are too expensive. dru

cap. >>> we're back talking about paternity leave. joining me now, rebecca traister at the "new republic" and rita ewing, ex-wife of patrick ewing and authorage" and a massive envy spa franchisee. i'm going to start with you, rebec rebecca, this idea of men taking paternity leave being a side of weakness. >> it's obviously, as chris said, it's ridiculous. i want to talk a little bit about these questions you heard them ask, what's he going to do, sit there and look at the baby? what do you do besides breast-feed? this is actually at the core of a bigger system of how you divide the labor of parenting. when you have a new baby, neither in a heterosexual union, neither person knows what to do with it. if the man isn't there, the woman learns how to do it and she's the one that does it forever. it's how you set up a whole system of how domestic labor is organized. not just for those first few days or hours or weeks. but on for years. and that's how we get an unequal system of parenting. so this kind of issue of male presence and participation in the parenting and family structure, this isn't just -- what happens in those first few moments ext

he asked for ex-im to be reauthorized for five years and increased our lending cap to 100 $60 billion. those five years would deliver confidence to countless americans, exporters, and workers. and certainty to their buyers overseas. everyone is counting on congress to get this done and done on time. china is buying u.s. satellites. builds and exports more condos then we import from japan. all across this country, innovative entrepreneurs are ex-im to create new jobs. we cannot look the rug out from under them and play games with these american jobs. these jobs drive our economy and they drive us at ex-im. we have got a team of 400 people with this singular focus, getting deals done so america can add jobs. actually, we are up to 401, thanks to the confirmation two weeks ago. we are thrilled to welcome back our vice chair, wanda. [applause] we are sleek, we are nimble, we are entrepreneurial minded. we defy every tired stereotype about federal agencies. theeliver government at speed of business. the reason is simple, we live in the world of business. we have spent 80 years cultivating

entrepreneurs and their workers, he asks for ex-im to be reauthorized for five years and increase our lending cap to $160 billion. those five years would deliver confidence to countless americans, exporters and their workers and certainties to their buyers overseas. everyone is counting on congress to get this done and done on time. china is buying u.s. satellites. america now builds and exports more hondas than we import from japan. all across this country, innovative entrepreneurs are teaming with ex-im to get an edge on their foreign competition and create new jobs. we can not pull the rug out from under them. we can not play political games with these american jobs. these jobs drive our economy, and they drive us at ex-im. we've got a team of 400 people with the singular focus. getting deals done so america can add jobs. actually, we're up to 401. thanks to a confirmation two weeks ago, we're thrilled to welcome back our vice-chair, wanda feldman. [applause] we're sleek, we're nimble, we're entrepreneurial-minded and we defy every tired stereotype about federal agencies. we deliver government