the president and ceo of hormel foods. welcome to "mad money." good to see you. >> we like what we saw. we know that the analysts are really focused on margins. margins aren't necessarily what our viewers are concerned about. they were concerned about commodity prices coming down. worried about the idea that maybe it is too good. it is basically too good and can't last. what is your response? >> we announced our 12th consecutive quarter. a pretty impressive. we've delivered earnings growth 27 out of the last 30 years and this year it will be, we need to really focus on the things that we can control, to continue to deliver long term growth. and those are the things, brand building. innovation. acquisitions. wednesday we announced the acquisition of the brand, another entry into the healthy, wholistic organic space. over the long term those are the things that will allow to us continue the 5% top line, 10% bottom line, long term growth goals. >> and there is a great, we call decks, handouts with great stuff in it. this is a cult following. people

i have hormel on later tonight.en a great turnaround story by going more natural and organic. so be aware, you tell it down, could be higher a couple weeks from now. >> it did raise their full year guide. >> exactly. >> but organic sales down 2 on lower volume and more promotion. >> oh, boy, 7% more in promotion. i was surprised at that, but i have tremendous faith in this turn. i don't think it's over. and i got to tell you this denise morrison she should do tv. she should do tv. she is an unbelievable spokesperson for the change from the pantry to the natural. she's very good. don't write her off. and don't sell. >> we're watching cpd today for sure. let's get to the opening bell in a few seconds here. look at the s&p at the bottom of your screen. down here at the big board today it's dineequity celebrating the re-branding of applebee's. ceo on with jim last night. >> yep, i love her. highest yielder in the category. and they have the money to pay. highest yielder in the category. i think the turn can help. hand c

hormel was the model for this. hormel was a commodity kind of company. companies -- this is becoming the darling. >> they can grow a chicken in like 40 days now. >> yeah. is that true? >> yeah. huge, too. >> 40 days. >> huge, huge. can't walk -- >> right here, how fast were we growing chickens? >> slower. it keeps -- the chicken -- >> well, you know who keeps chickens healthy? zoetis! zts! and not only that, but companion animals very, very strong. >> got it. >> companion animals. they have stuff -- do you have dogs? >> not yet. >> okay. i can tell you that dogs itch, but with zoetis, they've got a new formformula, they don't itc. >> i'll keep that in mind. >> big, big. >> we're in the market. all right, what have we got, about four minutes or so before an opening bell for trading on this monday. stay with us on "squawk on the street." we're right back. >>> you're watching cnbc's "squawk on the street" live from the financial capital of the world. the opening bell in just over main's time as we start another week. we've talked about lending club's ceo ou

losing the entire value of, say, an american express, or biogen or worth two valero energies or three hormels. now it's about whether the stock has caught the attention of some of those value-geared traders. back over to you, melissa. i mean, simon. just kidding. i knew it was you. >> let's send it over to carter. how do the charts look here. >> if we know, uptrend is defined, and clearly uptrend for quite some time. higher highs and higher lows. down trend is the opposite. that's where we have been for the better part of a year. you can draw your lines any way you want. as charters or technicians are inclined to do. a triple top. here's another way. we have come right back to the new down trend. and we're failing. here's another way. you can call it head and shoulders top. but the reality is that we're hovering ominously right here at these lows. ultimately, to my eye anyway, we have lower to go. even down here filling in this gap. here's the long-term chart. again, we could put in our head and shoulders. you can put in your break and trend. but the reality is it looks lower. as a minimum, w

-- hormel? i don't know. julie will give us the news later on. ♪ mark: companies earnings for share beating estimates. the stuff is down 9%. so what gives? analysts over at jeffrey says it has to do with rocket margins, specifically toward refrigerated food segments so not the one that includes spam, but one that trades 9% last quarter before interest and taxes. it had been 14.4% in the prior quarter. to affectis is likely the company's upside. and looking at what is going on with work prices. this company uses a lot of pork. even though over the past several years we have seen pork prices fall, you today, they have been higher when those prices are low. that is good news for hormel's margins. but they have been limited to some degree. that is part of the story and what is going on today. elsewhere in earnings, they are sort of a little under the radar and this is axiom, a tech and marketing company. ,ip shop, the online retailer apparently disappointing investors. it was downgraded to neutral from overweight

we like smucker, hormel, cam bells assume, we loved mcdonald's all time high today. kellogg, kimberly clark, consolation brands. that's this week's raging bull. that's where the money will be made. ron in new jersey. >> caller: thank you for your show. i'm a new listener and i'm learning a lot. verizon has been happenered the last couple of weeks. there is no end to the strike. is it a hold or a sell in. >> it's a buy. i think this is one of the rare opportunities when they are not on the run. they have iphones coming up. i think it is terrific. let's to go braden in california. >> caller: my question, the stock just got crushed after the reported earnings. i bought it shortly after that. on monday a thought that i am a might be a better month for them. shortening the stock with the exposure to china. companies have a great ratio among competitors. huge dividends. should i hold on to it? >> it wasn't that great a quarter. it doesn't like china. a lot of them are speaking out. these guys, they have big mouths. they're doing it for charity. so we're going to give them

hormel is back. so is the costly of feed. no foreign exposure whatsoever. still, the sales were in a bit of a slow down. but hell hath no fury like an industrial stock scorned. be this is strictly upon further review. i can call what happened today resumption of a long dorm an bull market. here's the issue. the retail is being swept up. i get what happened. they're all doing really well. we're going to get earnings all week. or will it be what happened with the stores? it was already down 11% for the year but fell by almost 10% after the market closed. why? horrendous sales. that's the poor commodity price. here's the bottom line. a market that changes on a dime can change on another dime and this is likely to do so on the first whiff of weaker date from those with newfound love. don't get too carried away. the market gods crushed those who did 72 hours ago. will in virginia. will. >> caller: good afternoon, jim. my question for today on maritime oil. i've been watching this stock. it it has taken a great pull back. do you recommend i hold on or get out and

i sent my staff out, i said get my tree house, they came back with soup, hormel chilly, and then they came up with cramer original. i said, listen, guys, that's not going to cut it. they said, you know special k? well, we have special c. and it turns out that amazon's been consulting with tree house in the runup to their own private label food launch, which might mean these guys have acquired a major new customer. just as amazon's the king of online retail. tree house is the king of private label food. i say king me. tree house is a company that was spun off more than 10 years ago. most recently last november we learned that tree house was buying tree house's label. tree house became the largest private maker in food in the industry. they doubled in 20 different categories, including pasta, bakery goods and cereal. spins? fruit spins? is this after a really big night out? i prefer special k. or special c when the staff finds where i threw it. i think this purchase was a total steal. con agora bought this business. tree house paid half that, because con agra couldn't make them work. i

hormel foods, campbells soup another big loser down 3%. mondelez and tyson struggling in today's session. that is where we wrapped things up. short-term interest rates higher. fed funds futures percentage pointing to stronger chance of a june hike. we'll see what happens here. thank you so much. deirdre: thank you so much, lori. from the floor of the new york stock exchange. back to the deal sold to the american people on iran. president obama's deputy national security advisor ben rhodes invited to testify before house lawmakers on the iran nuclear deal earlier today. mr. rhodes was a no-show. the white house says he didn't appear after he received a letter from white house counsel. several gop senators have written to president obama urging him to dismiss the controversial aide before he further tarnishes the office of the president. blake burman is with me now. so, blake, that sounded like a very intense meeting earlier today. what are you hearing this afternoon? >> well, one thing was made very clear, deirdre, by white house press secr

hormel sent food to allies. general mills made begin sights and pillsberry made two new soups.ade 18 ships. a minnesota physiologist invented k-rations, minnesota, one state of 50. i picked it to show what you ordinary people did in extraordinary times. unlike twitter, who think they're extraordinary people in ordinary times. they aren't, screw 'em. >>> i got some of that information on minnesota from a great article by kathy werzer, a reporter from minnesota. that's one state, but everybody pitched in. for some reason, dana, twitter, it's like if they pitch in, it makes it look like they're -- >> playing favorites? >> no, part of the problem. want to be david, not goliath. >> right, although but what they do have to understand is that the enemy is using the tools and intel services need information. intel services can't do anything if they don't have information. and think twitter should try to figure out a way to be part of the solution. >> they should be. >> i'm sure they would tell me they're part of the solution that they do all sorts of things, the story to me is troublin

look for hormel, staples, target and cisco and l brands after the close. >> let's bring you up to toe pretty much across the board in yesterday's session, though, those are listed as negative. they were positive, now negative. dow futures minus 8, s&p futures down 1 point, nasdaq futures down 0.5%. and the note yield, big move higher in the short end. two-year treasury note yield yesterday as expectations rose for fed interest rate hikes on better economic data. we're seeing interest rates on the ten-year yield up a bit. we're keeping an eye on that, 178. >> in asia, japan, gp expanding by annualized 1.7% for the period. much more than 00.2 forecast. analysts thing prime minister shinzo abe will now delay a scheduled sales tax hike. the yen struggling in direction on how to respond to this. it is down .2%. just below the positive mark down five bases points. >> that half a percentage point rise in consumption within that number, better, good, but we'll see, because if japan does go through with its sales hike plan, that could tip the economy back into recession as it happened last ti

. >> you mentioned hormel not being treated well despite beating by a penny, revenue matches raise theiryear guidance on some of these pork margins. >> it's become then part of what happened yesterday, the clorox selloff. they decided to go after consumer package good stocks because those do poorly in an environment where the fed raised rates and hormel is lumped into that. you have to have a takeover rumor like a church and dwight to go up -- which would be very obvious. that's one of the most highly valued companies in the industry. but that's out there. >> in media land you may notice shares of discovery down rather sharply. >> did you read that note? >> yeah, i did. took a look at citi this morning goes to a sell on scripps and discovery saying those two along with viacom which i think is already a sell there could be left behind in a skinny bundle world. and with the emergence of something like hulu, which may be also to give you some sports and then this mid range bundle of programming that they've been talking about in addition to all the video on demand options. i'm going to be s

that's hormel and pepsico. that's coca-cola.t of these large consumer staples. >> dinty moore? you're going to say it. >> too bad for me. >> hormel is the worst performing stock and they make dinty moore. when we sat down i said dinty less. >> let's make some beef stew. >> there's coke, the 26th best performer of the day. >> what's interesting about this though, just an anecdotal casual observation about the consumer staple stocks. we heard an activist investor tryan funds are gotten out of an activist target they were in which was pepsico. now, this is a victory situation. made a lot of money on pepsico and pepsico has made adjustments to their business and what not in line with what tryan would like to see and everybody takes a victory lap and some traders said that this maybe is a sign that there are better opportunities elsewhere in the market besides consumer staples, so you take a look at some of the big food names like a campbell's soup. on this particular day it's selling offer more precipitously than horse in the mark.

you've pot hormel foods down something like 4 1/2, 4 1/3%. can become's soup, mon -- campbell's soup. it was a broad-based selloff today. i will leave it there, send it back to you. david: a lot more to cover on the markets. lori, thank you. phil, oil settling at new high for the year. what is driving energy right now? >> let me tell you, dave, there are threats to supply all over the globe. all of sudden market that looked to be perilously oversupplied now looks like it could be undersupplied very quickly. go around the map and pick your spot. whether wildfires in canada knocking off a million barrels of production a day from market. you look to venezuela where they're in state of emergency and their production is starting to fall because they don't have money to keep the lights on. look at iraq where we're seeing attacks every day. it is hurting their output. nigeria, i could go on and on, dave but these barrels are starting to add up. they're adding up where global demand is higher. china, record high. india, record high. u.s. gasoline rec

among the names dragging the sector down overall food and beverage stocks like constellation brands, hormelr consumer staples as a sector up about 4%, so one of the relatively better performers, simon, still in this day. >>> pushing for more video continue tent, shift in strategy. we'll join "squawk alley" to discuss the current state of digital media later. but after the break joshua ramo will join us on the other side of this break on his new book "the seventh sense." you wouldn't order szechuan without checking the spice level. it really opens the passages. waiter. water. so why would you invest without checking brokercheck? check your broker with brokercheck. came courtesy of james and patricia thompson. this tv? margaret and tom lee. the championship game ball? that was sebastian diaz. good guy. and all i had to do was ask for their money and pretend i was investing it. their life savings is now my lifestyle. female announcer: don't let someone else live the life you're saving for. find out if you're dealing with a registered investment professional at investor.gov. it's a great first

the bell rang there by hormel foods. >>> welcome to the closing bell. i'm kelly evans.n negative territory most of the day, the dow declining 92 points, about .5%. the s&p 500 gave up a little more than a third. the nasdaq gave up about .5%, about 27 points. retail earnings, brace yourselves. courtney reagan will be covering gap and ross stores. susan lee is following chip equipment maker. we have mike san tolly here along with rob cobs, reuters breaking news. guy adami joins us as well. mike, start us off here. there's a sense yesterday with all the discussion about the fed that, would the market be able to withstand this major shift? is the answer starting to be, well, maybe not? >> maybe not so much, but i also don't think the reaction has been particularly violent or dramatic. basically this new picture of the fed is looking for an opportunity to raise, wanting to get on investor's radar in june or july is a live time when they might raise interest rates. it didn't strike a market that was already giddy, already at highs. i think we continue in that mode right now.

. >>> hormel's profit topping the street and raising the full year earnings forecast citing increaseterly dividend. the payout rising to 48 cents a share from 44 cents. that makes it a yielder of 3.1%? is that right? >> yes. >> 3.1% yield for jpmorgan. that stock up by 51 cents. hct holdings offering to buy grain handler anderson's for about a billion dollars total. that's a 42% premium. a anderson rejecting the unsolicited bid saying it's not in the best interest of shareholders. somebody is expecting something to happen. the stock up 29% today. $33.50. >>> google introduces a home device to compete with amazon's echo. >>> the chamber of customers kicking off its fourth annual global supply chain summit integrating innovation is the theme this year, under the back drop of the meeting, a rocky presidential election, u.s. chamber of commerce president thomas donahue saying his members searching for answers on how donald trump would operate if he wins. i don't know what that means for hillary clinton or bernie sanders. i might be thinking about how they would operate as well. joining u