that is making pepsico work. that's why we are delivering the results we are. >> thank you very much. yes gross margins is the story. that is relentless productivity and well received advertising. thank you for coming on the show, hugh. >> thank you. great to be with you guys. >> tomorrow sara eisen will sit down with coca-cola ceo muhtar kent and kathy waller. >> carbonated is just a small percentage of pepsico versus coca-cola. diet which is down but not down as much as sara pointed out, not a factor in pepsico. these are very different companies now. very different companies. wouldn't put them in the same category. >> interesting. people say pepsi coke. >> monster beverage and keurig green mountain. >> we'll get to duncan earnings, a countdown to the opening bell. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognit

therefore, pepsico is $50 and then coca-cola. not.h less after seven for one split, is it? let's go over what a stock price really means. here's the simple algebra. the share price often known as the p, as in the p/e ratio. shorthand for how we value stocks. the p equals theey times what is known as the multiple or m. e times m equals p. we try to solve for m what we're going to pay for the earnings fee. what is the multiple we're going to pay. the priced turning multiple is the key. and the most important determination of that price churning mobile, the vital ingredient that has the most effect on the valuation special sauce is the company's growth rate, which is why i'm constantly talking about growth of sales and earnings. a bigger price for businesses with faster growth because that growth means the earnings will get larger and larger in the years ahead. often you will hear them say this stock is echeap and what they mean is that it is cheaper than the average stock in the s&p 500. the benchmark for all stocks. and yet it grows fa

just like pepsico, a ten-year kind of plan and she's a little over halfway through it and got to complete plan. but continue to the invention. when i hear talk about not doing central research that's been the science lab like bell labs used to be and is gone, that's fueled all these great break through ideas. i think they've had 27,000 patents. we got to keep that going in america otherwise we will not have long-term sustainable companies. we'll have little companies that will do new products but won't do the break through ideas that have made america great. >> peltz would say -- >> i feel strongly about. >> peltz would say i'm a long-termgy. you make a charge here in what you've written about activists saying they want to increase short-term earnings, close out their positions, their speculators not investors. i read that and i wondered respectfully if you're going after the right activist because based on mr. peltz's track record he's not a short-term guy. when he gets on a board they stay in the stock for an average of 5.6 years. he told me he's told the mutual funds that are already i

features an unseasoned we had a slew of earnings release and the last few minutes a caterpillar and pepsicothan expected earnings right now down to the trip the san a lot of company and is coming out will be watching the market drop the morning back to the breaking news we are following one person dead in the house fire in mountain view >>will tran: right now the fire department in the place to permit are here because a to define what the cause of the fire is considered a crime scene the fire started at around 3 05 in the morning we know that one man lives by himself he was in his 60s and found in the back of the home you conceive is how much damage the fire has called the agency clearly through the back of the home the fighting are not only did they have to deal with the intense heat and smoke there was also live ammunition in the arise bullets were popping off the inside of the location of their already inside of the home it was fair for them i have been struck by bullets we got a chance to talk to one of two neighbors who jumped into action they did not college of the day happened to me

weekend numbers from gm pepsico and procter & gamble. after the close we hear from amazon google microsoft and starbucks. and just after his company reports earnings starbucks ceo howard schultz will be on closing bell. >> the first quarter profit beat forecasts as revenues surge from payment business including paypal which will be spun off in the first quarter: the second quarter and outlook is below analyst estimates. shares did rise after hours though. in germany higher by .3. the giant says fewer wireless customers switched to them during the quarter but the average revenue fell. they expect $2.5 billion in cost savings from its pending take over of activity after the third year after the deal closing. rising 1% in after hours. kurnly higher in frankfurt trading as well. it's below analyst estimates. the loss of a key customer samsung and delays of product launches by smartphone makers will hurt sales of its flag ship snap dragon chip. they're cutting it for the third time. shares down 2% in after hours off by 4.3 in frankfurt tradin

you may notice in the next few months we hear pepsico tells us it is dropping the artificial sweetener aspartame, being replaced with suk row los. boy, i hope i got that right. more commonly known as splenda. that i know. this is all in response from feedback from customers. the reformulated diet pepsi hits store shelves in august. >>> the blue bell ice cream company is taking action to prevent future ice cream contamination. the country recalled all of its product thz week after two samples tested for listeria. at least ten customers got sick. starting on monday, the company says it will begin intensive cleaning of its four facilities. employees will go through a new training program that focuses on cleanliness and some equipment will be redesigned to improve sanitation. >>> chaos right in the middle of a school musical. a stage collapses right beneath a dozen dancing students. the latest on just what happened. >>> and why police will be out in full force this weekend at virginia beach. lets say this is your tv and these are the channels you pay for with cable but these are the types

pepsico has won exclusive rights to the nba, the national basketball association that ends coca-cola'syear run as the league's sponsor. this move will give pepsi preferential treatment during commercials and athletes will be more likely to forge partnerships with the soft drink giant as a result of the deal and it has sponsorship rights with major league baseball and the nhl, however coca-cola remains the number one soft drink sold worldwide. >>> time now for ask finney and he's here to answer questions sent to him by facebook, twitter. i noticed more and more dogs on both mun and i bart. these are pets not service animals. what recourse do i have? >> this is very interesting. bart and muni have their own rules. let's start with muni. first of all, your animals cannot be on muni during rush hour. so in the morning and in the afternoon they can't be there when everyone is trying to get to work or to home. other than that, you can have your animal inside an approved carrier on muni. that's always okay or you can have your dog on a leash if it is muzzled and you can only have one animal p

pepsico announced today it's removing aspartame from the diet cola because of a customer concern thaticial sweetener is unsafe. the fda maintains aspartame also known as newt ri sweet is safe, as one of the most tested ingredients in the world. it the hit stores in august with a blebd of artificial sweeteners. coca-cola has no plans to remove aspartame from diet coke. >>> the size and timing of your breakfast could impact your entire day. >> and a new lawsuit accuses tanning salons of playing down their dangers. jane king has those stories and more in today's wellness report. >> reporter: lawsuits have been filed in new york state for two tanning chains. they propromote the practice as being health pep they suggested indoor tanning could increase vitamin d production and reduce the risk of heart disease, cancer and diabetes. the tanning salons did not comment on the lawsuit filed by the new york attorney general's office. >>> extreme morning sickness could be linked to children's neurological problems. a study at the university of southern california found that children born to women

pepsico reports tomorrow morning.ions about splitting up the snacks and drinks division to unlock value. boeing, seeing a bit of a drop. the focus on the higher expenses of the dreamliner. boeing has sunk about $50 billion into the dreamliner. production costs have yet to peak. this is a way to illustrate the cash crunch. it has about $9.6 billion of cash at the end of the quarter. that is down from the prior quarter and looks to be the lowest since the third quarter of 2011. betty: we are waiting 10 minutes, existing home sales numbers. ♪ betty: mortgage applications were released. we will get existing home sales numbers. we will see another gain. another important barometer. earnings beating wall street estimates. net sales orders up. good news if you own a home. what did you make of the d.r. horton numbers? >> they had really good numbers. we have heard from four builders. on aggregate, orders up over the prior year. for d.r. horton, the entry level improves move up as well as the luxury market. betty: is that diff

he's gone after several companies, pepsico among them. he has been recommended by proxy from isn.tory for him. to sit on the chemical makers' board. dupont rejected the idea in february, saying he intended to break up the company and it was not an shareholders' long-term interests. the meeting is going to be pretty contentious. pimm: if nelson peltz is watching -- betty: come on this program. he's welcome anytime. . pimm: we will make it possible. dupont, i read they are selling a hotel in wilmington. there are all these other pieces of the company may be not as large in terms of revenue producers but perhaps as symbolic, golf courses and facilities and so on. it would be interesting to find out what nelson peltz would do if dupont if he got the chance. julie: it is funny with these companies. on the one hand, they push back and say we do not want your suggestions. on the other hand, they might be on the fringe of starting to do some things like you are describing. betty: because they do not want shareholders to vote this guy in. former hewlett-packard ceo carly fiorino making pol

thursday is the inl heaviest day of earning season with caterpillar, pepsico, procter & gamble and gm amazon google. we close out the week at american, blogen. let's take a look at how it's reporting in now. you can see dollar index right now at 97.69 up.2. joining me now. great to have you on. we've been seeing this bull run in the u.s. dollar but given the recent bout of disappointing da that we've been getting, does that derail the u.s. dollar run. >> not necessarily. we are still bullish dollars. we think the weather impact has had a significant dent in u.s. economic data. we're expecting in the second quarter of this year for a rebound in u.s. economic data. ultimately that should help support the dollar. >> we've been focusing on the negative impact the stronger dollar will have on some of the u.s. multinationals many of which are reporting this week but perhaps a bigger question should be around how these companies can hedge against the stronger dollar and weaker euro trade? is that a discussion we should be having? >> absolutely. i think the rhetoric over u.s. corporates about

>> companies like state street and apple and pepsico and dow and dell these are some of -- if i didn'teady apple -- these are such strong performing companies. this is a huge chain. if we were having this discussion 20 years ago, 25 years ago, we'd have many of the same people. they were called sharks raiders, lbo activists and things at that time. and a lot of their practices are hard to do today. but many of these people are the same people recast. some of them are younger and have different style. the ones we're talking about, they're the exact same people who put on the cloak of good governance and use the language of shareholders activists and now they're restyled. they create a lot of fear as they're going after great performing companies. why do you come to terms with them? for the same time -- >> would ebay have split off paypal without carl icahn? would they have split off paypal in the time frame did it in which carl icahn came a into the situation? would dell shareholders have gotten a few pennies more without the activist coming in and shaking up a bit? >> that buyback at d

. >> and sara i saw over the weekend pepsico is taking -- i think it's aspartame -- >> aspartame out it's amazing to watch. cnbc's sara'sen thank you so much. >> thank you. >> joining us now, the chair of elevate, a global professional women's network. sally crawcheck writes in the "washington post" that women are impacted disproportionately by the retirement savings problem in america. you call it a women's crisis as opposed to a retirement savings crisis. tell us why? >> think about the are tiermtretirement savings. we're at least a trillion dollars insolvent. walk through a nursing home. it's a women's crisis. they retire with two-thirds of the money as men, live six to eight years longer. if we have a retirement savings crisis, which we do it will disproportionately affect women which changes the lens on the potential answers for it. >> and you just before we went on the air, you were like the solution in some ways so obvious. >> well and you were on it right? if we close the gender pay gap which is after all, the law of the land we will close the retirement savings gap, the soci

i tell you, unless you have strong north america, strong north america, pepsico has strong north americaoday. general motors, gm. stock getting crushed. there is a great quarter from domestic. today we are not giving a pass to any company that's overseas. >> better not raise rates. >> raise rates? wow. i think you would have to go against this market because you are seeing double-digit declines because of this dollar. no one says anything by the way. it's fine. hey, do whatever you want. we are ridiculous here. why don't we defend our country? why don't the politicians defend our country against what is obvious, ridiculous trade bashing with every deal we make. every deal we make is bad for our country. >> thanks jim. see you later. >> we want to thank bob johnson for joining us. >> thank you very much. >> it's been a pleasure. before we go we want to remind everybody it is take your kids to work today. here at cnbc we are celebrating it. take a look at some of our little squawkers who are here. not only in new york but in inglewood cliffs. we thank the parents, thank the kids. have a gr