railroads i think for now after this quick sell off i'm feeling pretty optimistic that the recent union pacific railroad earnings are actually quite positive they're feeling that they can absorb this near term acceleration in fuel and i think they're actually going to benefit there's just too much in their pipeline right now with all of us doing our shopping online you see what amazon did the other day i think they're going to be just fine and we did get some positive q one earnings from total and i think royal dutch shell so that that bodes well for them i'm going to ask you a little bit of a complicated question you are such an expert on futures and currencies but it surprised me maybe a dozen years ago when i realized that a lot of these large companies that i thought of as sort of oil related companies that they actually make money when prices are lower because they use oil as part of the petrochemical businesses like dupont for example so there are some companies out there they're actually already head to buy what they produce but as a hedging ask expert we know that southwest famously does not hed

alix: union pacific out. the railroad company to measure the health of the u.s. economy.lling it, $1.60 a share. revenue at almost $5.5 billion. both of them beating estimates, as well. 0%enues for ag products, growth, an interesting side note. operating ratio only 65%. -- solid lied numbers headline numbers. that's docketing a boost. david: everyone seems to be beating, but it is not necessary reflected in the shares. also saidolk southern they saw a promising outlook for 2018 and couple days ago. in the markets, it is about waiting for that ecb meeting at 8:30. s&p futures are up 7%, buoyed by facebook. euro-dollar unchanged on the day now, 1.21, was a little bit stronger against the dollar, but the dollar is weaker on the day overall. the u.s.,lts in gracious bond buying across europe and here. 2.99%. crude up .9%. it feels like a weaker dollar story in feels like we could have iranian sanctions come back and play in the u.s. that will be determined in the next few weeks. futures trading in positive territory this morning. strong earnings forcing a rebound in u.s. stoc

other companies that have been leading that weakness in transports, it is some of the railroad names like union pacifics well. so, some very interesting comments in that interview last hour. >> all right let's get to seema mody, back at headquarters, who has the european close seema? >> jon fortt, european stocks rebounding from yesterday's decline thanks to mario draggi, that has pushed the euro to lows not seen since january 121 against the dollar mark chandler says in frankfurt. ecb policymakers needed to have a better handle on what caused moderation in economic growth before deciding the next steps for its bond-buying program. in terms of stocks in today's focus, let's take a look at the auto sector among today's gainers. volkswagen higher after posting a rise in quarterly sales after overshadowing missed due to accounting change. vw's ceo says revamping of the automaker is on track and fiat chrysler says its quarterly products jumped as shipments rose by 35%. norwegian air sayi ining saefrl parties are interested in the company. and lufthansa, that stock down more than 5% royal dutch shell also i

open an account today. >>> union pacific out with record earnings this morning the largest railroad postnings and sales. the stock was down a little over 2.5% we're joined now by union pacific ceo, nice to see you >> good morning and thank you. >> sounds like some of the concerns centered around margin, those rising input and commodity prices, which i would think would help your business drive higher prices, with us on the other, hurts that margin is that what you're hearing? >> so splitting it into a couple pieces in terms of the input costs to our business, we are seeing some commodity pressure some of it is related to the tariffs placed onsteel specifically and in others it's just general commodity and inflation increase maybe related to a tighter labor market in terms of away we heard on our call this morning, there were a lot of questions about looking forward at operating ratio, which is our margin for the business ask we expressed lots of confidence that we are able to continue to improve our operating rash ya because we have a solid game plan for productivity improvement et we ju

union pacific getting an upgrade or a price target upgrade to $145 on what analysts say are challenges for the railroadthis is translating into higher trading for the transport. specifically, it is moving about its various moving averages, well above its 200 day moving average and now going above its 50 and 100 day. a little bit of a momentum breakout when it comes to the dow jones transportation average. we are looking at costco and other retailers, grocery stores, program walmart trading higher with costco getting an upgrade over wells fargo. shares outperforming analysts -- and analyst who says there will be strong comparable sales growth and the momentum is sustained for costco, and membership trends continue to improve. even though these gains are coming from various analysts way, around a earnings and how the future fundamentals at the company's will look. shery: thank you. mark crumpton is here with the first word news. >> the white house says it will decide in the near future whether to impose more economic sections on russia. yesterday thatd sanctions would be imposed today. she says the goal

. ♪ joe: union pacific reporting first-quarter earnings before the bow and our next because them at of the most in a year as the railroad i spoke earlier with their ceo lance fritz. solid operating ratio and margin improvement, but the market says we see them as our customers and look strong to us, as long as we get the trade equation right. operating a bright environment for us as we look 3 and q4. you wrote about concerns if nafta was to fall through and the importance of free trade and good trade deals. are using anything specifically, nafta aside, as a response to the early trade actions we have seen from this administration? lance: we are starting to see in the pack at our business in terms of increased steel prices. impact onseeing an all kinds of parts for us. start talking to us about increasing rates or pressures to increase prices. we have seen that. if theing to guess that threatened tariff actions go into place between the united states and china, we will see more of that. it will make products more expensive, and fundamental economics will probably see less consumption. that would have occurred otherwise. j

railroads i think for now after this quick sell off i'm feeling pretty optimistic that the recent union pacific railroad earnings are actually quite positive they're feeling that they can absorb this near term acceleration and fuel and i think they're actually going to benefit there's just too much in their pipeline right now with all of us doing our shopping online you see what amazon did the other day i think they're going to be just fine and we did get some positive q one earnings from total and i think royal dutch shell so that that bodes well for them i'm going to ask you a little bit of a complicated question you are such an expert on futures and currencies but it surprised me maybe a dozen years ago when i realized that a lot of these large companies that i thought of as sort of oil related companies that they actually make money when prices are lower because they use oil as part of the petrochemical businesses like dupont for example so there are some companies out there they're actually already head to buy what they produce but as a hedging ask expert we know that southwest famously does not he