. >> sreenivasan: for that, i am joined by hugh johnson, a market analyst who runs his own investment management firm. first off, what's happening with these tech stocks and maybe more specifically the biotech ones? >> well, if you take a look at market history, you know, what we've had more recently, as judy suggested, is right on, and that is we've gone a long period -- you remember 2013, the market up 30%, nobody expected that. that's a long time for the market to be going up without an adjustment or correction. so i think this all a starts with the basic sort of common-sense perception that this has got to be at least a correction in an ongoing bull market. now, it's a little bit more than that because, you know, if you have stocks going up a straight line, basically, as they did in 2013, they're going to reach levels that are arguably very overvalued and i think this starts really as a valuation issue. really, the prices of stocks got the levels that did not reflect underlying fundamentals, reflected unrealistic growth rates and started to sell. when some stocks start to go down,

back with us is hugh johnson along with drew kanelly, chairman of the kanell truth. i'm going to start with you. you recently added to your asia pacific positions, correct? >> correct. yeah, what we're seeing there is, you know, if you're buying earnings, right, and you're looking at express and price earnings ratio, you're looking at about a 25% discount to the s&p 500 to invest in asia pacific. that looks like a pretty good valuation for us. despite the fact we're big investors in what we believe of the middle america theme, you can't ignore valuations, so it look like we needed to add to that area. >> if you had to deploy cash globally, first of all, would you, and second of all, is there appear area of the glob that looks perhaps safer than others, and ripe for the picking? >> you always want a bit of a foothold internationally, but if i look at non-u.s. international investments, for some time, based on the relative performance generally of both of developed countries, the relative performance tells me you want a low exposure to international, you want a high ex

joining us to react to the numbers is hugh johnson, cfo of pepsico.t the company up. with results like this, is this an answer back? >> becky, i don't know if it's an answer back. with 4% revenue, 7% up profit, and 10% eps, and strong top and bottom line, i think all investors will be pleased. pepsico is a terrific investment. i'm not sure anyone would want to disrupt that. >> global snacks. 5% organic. where are the strongest pockets for you, hugh? >> we really feel good about the portfolio. each of those businesses are doing well. frankly together they are really performing terrifically well. that's true across all the geographies. the united states was terrific. russia hit double digit growth. as we look around the portfolio, it is performing strongly. it is that tie together of beverages and snacks that's working rell well. peanut butter and jelly is bought together 20% of the time. snacks and beverages 50% of the time. we feel they work together and are amplifying each other nicely. >> what are you able to do? get better delivery on things? what

earlier hugh johnson on "squawk box" and says every shareholder should be happy with this report. peltz by name, he owns $1 billion worth of stock, about 1%, bring you through some of the highlights of the pepsi earnings report. it was a beat on the bottom line, top line. organic revenue rising 5% for snacks globally, 3% for beverage. that was certainly better than coke's earnings a few days ago. emerging markets in europe also came in better than analysts were expecting. to break it down the one weak point carbonated drinks, we've seen this across the industry, declining 1% in north america that could be something that nelson would point to if he ramps it up back again. he has intensified the pressure. the stock by the way has outperformed the s&p 500 so far this year. >> yes. that was cramer's point that peltz may be unhappy but he kind of likes what's happened. >> the stock has been up since nelson peltz started agitating as well. see increased volatility around that. >> rick santelli with breaking news. rick? >> april, philadelphia. fed business read is 16.6. 16.6. this is a s

hughes got 12 of the next 13 athletics. a's starter jesse shabazz crafting seven innings one earned run a career-high nine strikeouts. but a's closer jim johnsonldn't close with a two-run lead in the ninth. escobar into left. run closes it to 4-3. brian dozier fly to right. play at the plate josh reddick can he throw out kurt suzuki? tied at 4. in the 11th, derek norris put it out of play. a huge three-run blast into the bleachers. his second homer in as many days. the a's win final 7-4. >>> in golf a lot of masters talk about the one golfer not playing tiger woods. his absence due to back surgery is apparently hurting the box office. secondary ticket market services claim prices have dropped 25%. >> wow. >> since he withdrew. ♪[ music ] >> the scenery at augusta national priceless. ♪[ music ] >> but the vegas money is on defending champion adam scott and rory mcelroy both 9:1 odds to win. mcelroy thinks everyone has a shot at least for most of the golfers. >> just looking down the list here. tim clark, john hurt. no, i don't mean that like -- [ laughter ] >> now that i'm talking like the people that are playing regularly on the pga tour. >> i