Transcripts For CNBC Squawk Box 20140411

Right there at 13,960. This started thursday. The nasdaq felt the worst of it, down by 3 , closing at 4054, the biggest oneday decline since 2011. The nasdaq is down 7 from the recent high on march 5th. Its down by 2. 6 for the year. For the s p 500, that index down 2 for its biggest drop in two months. Were below where we ended the year. So youre looking right now 1833 after yesterdays declines. Its first close below its 50day moving average since february 10th. The index is flat for the year to essentially slightly down. Its down 2 . That index, the dow, dropped 266 points closing at 16,170, a decline of 1. 6 . The dow is on pace for its first weekly drop in four weeks. For the year, the dow is down by 1. 8 . And in yesterdays selloff, only two dow components finished higher, at t and mcdonalds. If it was 3 on the dow, it would be 500 points which sounds like a lot. 500 was the 87 crash but it was from 2000. It wouldnt be the end of the world but it would get your attention. We said it started yesterday. It started last friday. Remember why it started . As the tenyear started rallying. And yields started falling. And i thought, do you remember we sat here yesterday we were debating. No we werent. We we agreeing. We were watching to see hawkish or dovish . The market went up 200 points when they said theyre worried about employee inflation. Where we said i would take a low inflation worry to say were not going to do 3 and did you see the tenyear got almost below 2. 6 yesterday. This is what i think. Just in a nutshell, that the feds out of bullets. Theyre getting out no matter what. So were on our own in terms of the economy. Its got to be the economy. I no longer think that things bad news i no longer think bad news can be good news because the fed will stay longer. Well live or die based on the economy and i think there are signs. I want to i saw the santelli report yesterday in the 11. I thought he was nailing it. He was on fire. Saying the same thing. Whats happening. You get a yield curve this flat and everybody says theres no way theres anything wrong. You cant be predicting a recession because theres nothing in the cards to indicate a recession. We never know whether theres a slowdown coming. I didnt see the santelli report yesterday but i saw him a couple weeks ago explaining why the yield curve was the way it was. Steve used to do things with the white board. I want him to do one of those for us. We may get some type of answer about whether its just the hangover from 2008 and eventually we come out of it or whether all along its been the government sort of in the way of if we never get above 2 , andrew, youll have to admit that a lot of these government that regulations and higher taxes and corporatism, all these things are starting to affect the economy. We knew there would be a point where the training wheels would have to come off. These are small moves. It could be possibly things until you do see the economy. Most of the big hedge funds over the past week have been slaughtered. They also all remain long. Hedge funds are supposed to be hedged. I know theyre supposed to be hedged but most of these guys he was saying theyre leveraged. Theyre all playing through the pain. I think the prevailing wisdom is that this is a shortterm blip. The real pain wasnt in at t with the dividend. It was in facebook. Right. Or biotech. I described it, i was talking to some of the producers yesterday, i said this story. Everybody in the world will be driving a tesla someday, supposedly, until things come home to roost. Until you say wow, is that stock a trading at 80 times revenue . How do stocks trade at 80 times revenue. I want to talk about sebelius. Its coming up. Im thinking about it and then i a lot of times the journal crystallizes what my thoughts were. If it was a big success, the big victory lap they took, we did it, 7. 5 million, she should be she did it. She should be riding high right now. But they dont want to do it that way. This is the new obamacare now and shes gone. We have a new person. We have 7. 5 million. This is not accountability. This is getting her out of the way so you dont think of her anymore going into the november election. Its a new obamacare. Its working now, its perfect, its great. Now we have a new person. We have a new person. I think she should have replaced shes leaving. I think colbert should replace her. Colbert. Why cant i be a right wing asshole and call him colbert . He makes 10, 15 million a year imitating oriley. Why cant i be him and mispronounce his name . I was surprised they didnt pick daily show. That would have been a much this is going to be interesting. How do you know the guy . You want to do this now . Wait a second. Does anyone know if this guy can be a normal person and interview people and have fun . I know him and hes hilarious. I know him and hes hilarious, because you say so. You asked, im answering. What do you want . Two snarks dont make a right. Im not going to say anything about this guy. You saw what Rush Limbaugh said. Right. I saw that line. I know you think the entire country means nothing. This guy will only appeal to a certain do you know who the best news is for . Nbc. Jimmy fallon who has a different brand of humor which is not quite as snarky. I read that and thought, wow, nbc is going to be number one for the next 50 years. Colberts contract is up. It was always in time with letterman. If you think about it, cbs and the daily show or rather Comedy Central is viacom properties. If you are effectively redstone up here, you have to jon stewart is well take the lesser star because we dont want to destroy yes, absolutely. Comedy central . Jon stewart is Comedy Central. But if you do a really good job, you should get the next job. He gets paid more money than god. Im not sure. Hes not upset about it at all. Its a fraction of the potential audience youd get on cbs. He does well with 18 to 24, which is where your mind is most of time. The Major Concerns hanging over the markets, joining us now, david joy, chief Market Strategist at ama mameriprise financial. I dont think so. I think what we saw yesterday is still in the realm of what ill call Collateral Damage for the Broader Market. That is very much localized still in the biotech internet, these momentum plays that are washing out. The one thing that makes me a little bit concerned is that we did break through the 50day moving average. Im not willing to say the downdraft for the rest of the s p is over yet. I dont think this is the start of a broader connection. I will agree with what we were saying earlier. Were on our own now but were in a limbo period where were not getting clean data from the First Quarter. Its too early to get clean data from april yet. So were in this void where all were focused on is what we know will be a bad earnings season. I think the market has very little to support it. You have an answer why Interest Rate why is the tenyear not at 3. 5 . Didnt you think it would go to 3. 5 . I still think its going to go to 3. 25 . By the end of the year . Why . The economy is stronger. Thats why the tenyear the yield is going down because the economy is stronger than people think . No. Why is the tenyear going down in yield . Well, i think the tenyear is simply saying, look, theres no empirical evidence of my view that the economy is stronger, so why shouldnt i maybe hide out a little bit if im nervous about stocks . Where else are you going to go . You go to the treasury market and hide out for a little while. I think thats all this is. I will say in my career, the bond market has always been a very good leading indicator of whats gone on. Im trying to figure out whether or not thats what its telling me. Or is this more of a mirror image of whats going on . Youre wavering, hearing doubt. Theres always doubt. The bond market is bigger than anything its also the canary in the coal mine a lot of times. Its global yields, too. You have to Pay Attention to it, right . Absolutely. Theres always doubt. We dont know whats going to happen. Im willing to bet its more or less just a mirror image of whats going on in stocks rather than a leading indicator. I think the economy is better than the 2 or so that we got out of the Second Quarter. I think the Second Quarter will be above 3. Its too early for us to know that. The one piece of datas with a jobless claims number. The market ignored it. I think once that evidence begins to build up, i think they the weight of the evidence will arrest this slide and the market will stabilize. I think we go higher the next couple of quarters. It certainly could. Thats the way it works. Complacency is the enemy of all bull markets. Its not letting us get complacent, i guess. Well put you down for i think well do 3 this quarter. Yes. You dont think this is the beginning of a correction. No, i dont. The one thing ill point to is, look at where the least amount of damage occurred yesterday in the blue chips. It was in the broader averages. It was still really these momentum stocks that were the locust of all of this. Stay tuned, at least in the next few days. Okay. All right, david, thank you. Thanks. Well talk to other people today, i think. You know, that makes a lot of sense, though. Except that, you know, we have to talk about this as its happening. We cant get 266 points go by without this could be the end of the world. It is not the end of the world. We need to at least i put money in each of the kids College Funds yesterday. I put money in each of the kids College Funds yesterday. I felt like this was a buying opportunity. You wanted the ebay guy to be carl icahn. Dont you see this is part of the conflict . This is hyperbole. Its cable, sorkin. I know, its tough for my little brain. Lets talk politics for a moment. This is a story we were all talking about. Health and Human Services secretary Kathleen Sebelius has stepped down. Burwell has been chosen as her replacement. Lets go to john harwood. Good morning. Sebelius said she was staying till november. What happened . Well, look, when they had the crisis with the website last fall and the president was asked about this, you know, whos going to be held accountable . Are you going to replace Kathleen Sebelius, fire Kathleen Sebelius . He said what im focused on right now is getting the website fixed. He did not rule out a change at the top of that department. Now were seeing that accountability moment from the president. His aides are not saying she was forced out but the writing was on the wall. I think they decided they werent going to do anything until they got through the Enrollment Period. It was all hands on deck to fix the website, get people signed up. Now that thats happened as joe alluded to, they want to move past this. Was she kicked out or not . Apparently hours before she kicked out she was telling people that she was staying. I dont understand. I think she chose the timing of her departure. She chose the timing . Can you really say, though . Are you going to let me finish . No, no, that question is rhetorical that andrew is asking. We know what happened. It was a disaster. Im taking andrew as if he wanted an answer. She chose the timing but it was understood by everybody that he was going to put new leadership in charge of hhs. It wouldnt make any sense to do that in the middle of your Enrollment Period. This is a logical time. Exactly when after the Enrollment Period was done that i think was when Kathleen Sebelius had her choice. It was going to happen anyway. Management 101. It reminds me of gm and mary barra a little bit. Not the way it happened. Shes there, the recall wasnt her fault. She can address it and talk about it but it wasnt her fault. The same thing will be with this new budget person thats in there. It wasnt her fault. She can rest on the laurels of hitting the number of 7 million now. And the substance, joe, it was obvious there was a management problem with healthcare. Gov. If you have someone like Sylvia Burwell who is long on management, she worked at walmart, the Clinton Foundation and the clinton administration, shes somebody who is as bulletproof as a potential democratic nominee for hhs is going to be. Its not going to be easy to get anybody confirmed. That doesnt mean the president will leave at this point, right, john . Thats not happen be. Its a joke. I take your point. Im channeling Stephen Colbert again. Why not be somebody else . Somebody else . Why not be somebody else and make 15 million a year . I just want to see if he can be himself. There are he says he is going to be himself. Who is he . I dont know who the other guy is because i havent watched it. I dont either. That will be interesting when watching his show. As a homer, Jimmy Fallons kicking everyones butt. I think this is a good sign for him. If cbs wants to go for these intellectual i was always a leno person anyway. Les knows what hes doing. Its not as important as it used to be. Its much more pragme mefragmen jimmy fallon is the closest thing to a tape measure home run that a Television Network can do. Both sides can watch it. Letterman towards the end, im telling you, half the country wouldnt get their channel anywhere near that show based on the political crap you had to hear spewing out. Who wouldnt go near it . Half the country. The republicans wouldnt watch letterman. Right . I dont know what the makeup of his audience is. You wouldnt know how a republican feels. Thats probably true. Anyway ha, ha, ha. There are some rocky months probably ahead with premium increases and all this stuff were going to see. You dont want her there. She kind of she you could have premium increases but thats not a given. Youre more than likely going to get her through a Senate Confirmation hearing. It is likely, joe it is more likely that things will get better than worse. A, the website is fixed and when you get through the Enrollment Period, you have a greater risk pool. Wait a minute. Tobey cosgrove, a guy that was on board with obamacare said 75 to 80 of premiums were going to be above what they were. Health care premiums always go up. The question is, is there an exceptional spike. How many did we lose . What if 6 million lost and 7 million signed up . The studies dont point in that direction. What if its 30 20 young people or 15 young people and the rest are all old, sick people. A lot of things will still come out. Thats the risk. We have to see what the makeup of the risk pool is. We dont know. The bigger it is, the more likely it is its desiene. The john, thank you for joining us this morning. You bet. Much more on the selloff as we cover various angles. Plussing with all those high flight internet stocks that are heading back to earth, well talk about those. Right after the break, a group thats stepping up the battle over equal pay for women. First, though, check out the futures. More squawk box when we come back. Right now theyre essentially all along the flat line. Squawk box will be right back. Heres your travelers check. Travelers can expect to pay more for Hotel Room Service in the u. S. Than any other country. According to trip adviser. Washington, d. C. And new york city are among the most expensive. But which city tops the list . Find out, next. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. [ male announcer ] when fixed income experts. Work with equity experts. Who work with regional experts. Who work with Portfolio Management experts, thats when expertise happens. Mfs. Because there is no expertise without collaboration. Back now with todays travelers check. Which city charges the most for room service . Las vegas. In connection with national equal payday, an organization focused on gen y women in the workplace. Founder and ceo is joining us on set. Youre trying to get geny women equally involved. The wage gap has been skin the in the United States, if anything, its gotten worse in the last year. Women are losing over 431,000 over the course of their lifetimes due to the wage gap. And even upon graduation, the wage gap is 82 cents to the dollar. Coming out of our top institutions in this country. Theres an issue, its not receiving the attention that it needs. Were here to really enjabil millennial and gen y women to understand how to ask for what they need in their careers. Ive heard studies that say part of it is, women dont negotiate the same way. They are expected to behave a little differently. They know that. Thats why they arent as aggressive. Fewer than 7 of women negotiate their salary at any point in their career. Theres definitely an opportunity for us to be enabling women to learn how to ask. Part of our entire campaign is centered on the fact that theres this asking muscle that needs to be flexed. We need to get our talent comfortable with asking for whatever it is they need, feedback, responsibility, whether its a different job opportunity and whether its compensati compensation. Part of it has to do with women taking off time in the work force to raise kids. Thats an issue. They know its part of it. Its not the entire gap. It doesnt explain all of it. That does explain some of the gap. Those are tough decisions. I can think of it about it myself. I was thinking about what i was going to do, was i going to come back or not. We talk about this as well. Levo focuses on women in the first ten years of their careers. We start to have these discussions about integrating work and life and understanding how to approach having children. The wage gap becomes more and more distinctive once you get to the point where youre having children. We need to get you to feel comfortable really flexing your asking muscle before this Inflection Point so that youre set up for success. Is that telling women to have kids later, that youre not going to be able to have that same impact if you have them earlier . We dont recommend we dont make decisions or make recommendations regarding family planning. The way we approach this is by enabling women to feel comfortable in whatever decisions they are making and arming them with the negotiation skills and really the community to be able to approach their employers and get what they need out of their jobs. Generation y, give it to me. Whats the parameters . Just so i know. Were focusing on women who are roughly 18 to 34 years old. Is that generation y . Thats generation y more broadly, yes. Whats under 18 . We have millennials coming up behind generation y. Youre kind of a y. Just outside the y. Im an x. Generation x. Barely. Is your daughter a millennial . Isnt he like a generation he represented generation x. Why did you think of him. I dont know. I like him a little. Hes like a poet. Im surprised you would like him. I dont like poets . Kind of. Im angst ridden, sensitive. We saw you in davos. That was wonderful. It was, wasnt it . Now youre here. We both made it. The world is small, isnt it . The world is very small. Good to see you. Nice to see you. Generation y. Look at this. We have guests who come in with notes, but not like this. How did that work today . We have a lot of data. I did not look at my cards at all. Dont you have names . If you took the show seriously, couldnt you i have to talk to her people. Were taking our office hours advice from bill mcgowan. Check out his office hours. This is what he recommended. Thank you for coming in today. Thank you for having me. Visit levo. Com ask for more. When we return, the focus will return to the Global Market selloff. European Market Selling wall streets lead a little bit. Not quite as bad. Asia was scary. The eurozone is heading into qe when were heading out. Maybe its different for them. And the ceo of lending tree gives us a snapshot of the spring Real Estate Market and mortgage rates. As we head to break, heres a look at yesterdays winners and losers. Financial noise financial noise financial noise financial noise announcer scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer ranked highest in Investor Satisfaction with selfdirected services by j. D. Power and associates. But with less energy, moodiness, and a low sex drive, i had to do something. I saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or Breast Cancer. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about axiron. Check for more well, i guess i can double check. My watch [ male announcer ] it pays to double check, with state farm. Good morning and welcome back to squawk box here on cnbc. Im joe kernen and i play myself. Which is the bad thing. Colbert can come out from underneath that. Im stuck with it. Anyway, along with becky quick. She plays herself. You play yourself, too. You play yourself. You know what that means. If you were playing yourself you wouldnt live on this coast and youd be in an ivory tower and youd be like a huge tv producer, writer, star, i think. Thats what i would be slash agent. Youre half there already. Id be an agent. Slash, slash, slash, slash. Would i be your agent . You could be. I trust you with things like that. I do. Lets bring you up to speed on the Market Reaction following yesterdays selloff. The futures right now at least theyre not down like 800 points. Theyre up a little bit. In a really scary market where things are really overpriced in bubble territory like back in 87, some people think its similar. You have a big selloff. The next morning its scarier. On a friday, well see what happens today. Fridays typically are not great. Because theres the weekend. Well see. In europe, this is the tail from yesterday. Its not as bad as what happened, at least not in the nasdaq. That was amazing. In the tenyear, 2. 62. I was looking for a 2. 5 handle which would have really got peoples attention. There is a death cross that was in effect last week. I know. Okay. Look at the righthand side. Do you see all those little i mean, it has not gone below is it the squiggley lines . It has not gone below that since july of last year. If you had a telestrator, youd go right there. That does not go along with 3 gdp. Were headed straight up. Right. 3. 5. For 15 years now. Yes. It seems like that. Anyway, andrew, i think we should get to our lets do that. Michelle carusocabrera is at the table. Shes back from washington after talking to italys finance minister. What was that like . Ive always wanted to interview this Italian Foreign minister. Did you talk to him in italian . No, his english is perfect. He used to be the chief economist at the oecd. Hes written that austerity worked in europe. And of course, krugman thinks that it absolutely has not. I really wanted to hear, how does it feel to be written about by paul krugman in his blogs . Krugman is mean and nasty as he can be. When you listen to this conversation, remember two things, Fiscal Consolidation is when economists mean budget cuts and kanzianism. What do you think of paul krugman. Hes taken the time to comment on may views. He would say theres incredible proof that austerity has failed. What i like to say is the following. That europe has undergone to Fiscal Consolidation number one. Lets not waste the benefits of that, its been successful. Has been to adjustmentment periphery. This has been painful but its beginning to bear fruit. We are looking at the banking and credit marking and we are repairing that. Whats left . Growth. How do you generate growth in the European Union . Growth is a longterm structural problem, therefore, you need structural measures. He would say the Fiscal Consolidation is the problem . Fiscal son solization is almost ever. Why waste the benefits of that . Its delivering benefits in terms of much lower Interest Rates. Levels of Interest Rates. And this is hugely important. So i am very happy that i can say today that italy is one of the most sustainable fiscal systems among advanced economist. S pa s. Paul krugman doesnt tick you off. I consider and i still do, hes one of the most brilliant economists ive ever known. Id like to thank him to his contribution for economic analysis. Pretty classy response considering. As for the work krugman did before he became political. A political hack. Yes, yes. To be denying that it worked in europe, what else were they supposed to have done . When they have no money. They never backed off although there were people saying its making the situation worse. Now its bearing fruit. When krugman was on here, i wasnt even trying to be mean. I tried to describe i asked him i viewed him as a unicorn. I didnt know there were mythical creatures with his ideas that were still left that would put those ideas forward with a straight face. Can you imagine him trying to be mean . He said we had zombie ideas which were free market, private sector, growth from the private he thought those were zombie ideas. If his ideas are not dead and buried and living, his ideas go back to prehayek, preadam smith, where socialism might be the answer. Where the money should go. How refuiated . Now im playing sarah palin. Joining the conversation on the state of the eurozone, mark grant. Its usually a mock turtle or tshirt. Its the open collar. A shirt. With baseball cards we trade who gets the lead different people. I had to give andrew a first round draft pick and money for me to be able to lead you, not just to talk about europe, mark, but to talk about the tenyear and talk about whether we hit 3 gdp. Arent there some strange things happening . Arent you seeing signs that maybe were more optimistic than we should be right now . Yes. I agree with that, joe. Whats happening is, i wrote a piece about this in my commentary out of the box called the new world order. Whats happened is, that the fed has overcome the bond markets. I mean, they initially began that after the financial crisis in 2007 and or 2008 and 2009. Now theyve continued on with this and this is the reason why were in low yield territory. I think its going to be even lower yield. How low can the tenyear get . 2. 25, 2 . Becky. Becky. Becky, are you still there. Im here. Dont fall off. 2. 25. You sold all your bonds. I did. I did. 2. 25. Mistake. I think we have much bigger problems if we get down to 2. 25, it will be a signal of much bigger problems. Is it, though . I think. If we do 2. 25 gdp, thats not the end of the world. Thats about where the tenyear should be. That wouldnt indicate the end of the world, right . No, its not the end of the world. Theres never an end of the world, joe. On january 2nd out of the box i said Interest Rates were going down. All 13 of the lead banks, all of them, said Interest Rates were going up. The long bond is appreciated about 11 , the tenyear, 14 . Yields are much lower. The fed is in, even with the taper, theyre now 4. 25 billion or so on the table in free money floating around. They are going to force rates down because its in the benefit to the government thats where i didnt understand it. That i didnt understand. I thought this was happening without the fed. Mark. No, no, this is being caused by the fed. Go ahead, im sorry. Thats andrew. You have been a doomsdayer for a very long time. You built your reputation being a doomsdayer, if you will. Has there been a time in the past five or even ten years where youve been a bull . Im not particularly negative at the moment. And i dont agree with your assessment, andrew. I think im cautious because in Money Management what you look at is the first and most important rule, the first ten rules are preservation of capital. What i try to do is advise people how not to lose money, which is very different from what most people do. I would agree with andrew on your view of europe you were overly pessimistic and that didnt happen, right . No. Not yet. I think let me go through this for you. What youre seeing in reality is the following. Economies in spain and portugal and greece are no better. Whats happened is this, its again the central bank. The ecb lends money to the european banks at 0. 25 . They go out and theyre either encouraged, owe ecoerced, howevu want to put it. They buy the sovereign debt of the european nations and theyve driven down the yields because of it. They get to carry those bonds riskfree in those portfolios. Thats whats taken place. We dont have time left. I just thought of something. The fed still in here. So now i was going to say the fed is out of bullets. Its on the economy now. If we want better growth. What youre saying is the fed has to stay in just for us to keep treading water at 2. 25 gdp we need the fed. We need the fed for this really low growth that we already have. We still need them to maintain where we are. Joe, by the end of the year, even with the taper, theyre going to have 4. 5 trillion in the market that they can move from the short end to the long end. There are calls and all kinds of things and theyll push down yields because its in the benefit of the United States government to have low yields. Yes. All right. All right, mark. You need to update us again at some point. You are a true journalist. Poor Jeremy Siegel is going to be on. You ream him for being a perma bull. This guy comes on, you ream him, hes a perma bear. It was a contextual question. He did write a column about him. It was i favorable column. I wantedualize what he was saying. You feel that either one of them has been more right than the other . Thats interesting. Over time, siegel i dont know mark grants history long term. Siegels history we do know. Stephen colbert when hes not in character is very funny. Really . Yes. That was my experience. We should mention, michelle, by the way, thank you. Youre welcome. One of those bullish squawk market masters, Jeremy Siegel will be on. Starting at 8 00 a. M. Eastern time. Find out if his lofty targets are in jeopardy. Get going. Get going. Gotta be good. Good . Good. Growth is the goal. How do we do that . I talked to ups. Theyll help us out. New technology. Smart advice. We focus on the business and they take care of the logistics. Ups . Good going. We get good. Thats great. Great. Great. Great. Great. Great. Great. Great. Great. all great i love logistics. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. 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The key to buying stocks this year are buy value stocks with Good Business management. The majority of the names are from outside of the United States. The Worlds Largest health care company. I have my money on you, marty. There are few mega trends in technology. If the Digital Media portion of adobe were its own country, it would be a hot ipo. Adobe systems. Kevin loves s s s s adobe. Every stock i pick will have 35 sales growth. Our next installment will be at 7 40 a. M. Eastern time. Well add another three picks to the list. When we return, tapping into the pulse of the Real Estate Market, the chairman and ceo of lending tree, doug lebda will give us his read on the home buying season and the future of mortgage rates. Geico motorcycle. See how much you could save. How did i know . Well, i didnt really. See, i figured low testosterone would decrease my sex drive. But when i started losing energy and became moody. Thats when i had an honest conversation with my doctor. 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Tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. So. What do men do when a numbers too low . vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Welcome back to squawk box. Where are we in the housing recovery . Thats the question this morning. With us on set is the chairman and ceo of lending tree. Well talk mortgages. People dont confuse you with lending club. We have had the ceo of lending club on. Theyre a client of ours. Its interesting whats going on with all these new platforms. Longer term, past six months, we have been trending higher. Shorter term, the last couple weeks. Coming down. We have been trending lower. Freddy max, 4. 34, 30year fixed. Thats it. Where is this going, though . Over time, they clearly have to go up. Credit scores, you can qualify with a lower credit score and lower down payment. We are seeing banks moving back to a state of normalcy and credit starting to flow again. In terms of what type of mortgage. Theres a 30year fixed. 15year fixed. Average now down to 3. 38. Pretty incredible. Fiveyear a. R. M. , 3. 09. Would you take a hybrid right now . If youre not going to stay in your house forever, it always makes sense to get an adjustable rate mortgage. Percentage year, 30year fixed versus 15. 30year is still 70 . We know people arent refinancing like they used to. How does that impact you . Its been great for our business. Our mortgage revenue is up 50 year over year. Its because lenders bid up the the price of our lead. Our business is doing great. Mortgage ridge tphaeuzs in february their lowest level in 14 years. Yeah. Give us the continued trend for the next five months. What you saw in q4 is basically the projection for this year. Take q4 times 4 is what you will see in 2013. Home prices up 13 year over year. Mortgage purchase originations are about the same. Things are looking up. Are you in the market for a new mortgage . Eventually i will be, andrew. People are telling me sevenyear fixed. I think thats great. Right now the cyre consensu is year. You can pay off whatever you want. But seven year. What was that about for you guys . Higher income, you can certainly do a shorter mortgage and pay it off sooner. But becky makes a good point. If you did a 30year you can pay it off whenever you want. You think you will pay the piper when rates go up. But you dont know. One quick question. You got into a big case. We did. You did lose. To zillow. You were suing saying the technology of auctions we got a patent in 1998 on the process of connecting consumers with multiple lenders. We went through a patent trial. We settled with four to five companies. We will appeal it. We believe theres lots of copycats. How important is it . Not at all. Thank you. Thank you very much. Good choice. Well take a look at whats driving investors to sell stocks right now. We are expecting First Quarter results from jpmorgan. Squawk box is just getting warmed up. Well be right back. ll be righ. Those Little Things still get you. Cialis tadalafil for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. 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And the first one that is coming out of release. Thats 5. 27 billion. Revenue, 22. 99. I would have had the guy just call it 23. It doesnt look like its enough. A lot of times theres other revenue numbers. It looks like the revenue is at least below if its an apples to apples. 24. 523. Tier one, 12. 1 . Consumer banking. Corporate Investment Bank 8. 61 billion. Its going to increase the dividend. That, we knew. Thats right. 40 cents. Twocent raise from 38 cents a quarter to 40 cents. And the return on intangible common equity was 13 . So if we go and try to get comments look what jamie is saying. In a market where we are trying to understand the economy, he said we are growing confidence. Are in increasingly good financial shape and housing has turned the corner in most markets. It looks like that may be an actual miss, the 1. 28. The stock getting hit hard. Good start to the year. Where does he say hes disappointed . Got anything where he says no. Hes not saying its disappointing. If thats a real revenue something, thats something. Would it be bond trading . Thats what we talked about yesterday. Its impossible for them not to. Nothing in his comments shed any light on whether its a definite miss or not. Right. Were going to inundate you with analysts that follow this company throughout the morning. Thert the ones that had broken down every aspect of the business. Commercial banking estimates. 56. 25. Down 90 cents or so. We will talk to an analyst in a few minutes. Stocks plunged yesterday. Investors fled some of the High Technology flying stocks. That sent investors into a tailspin. It was a decline of 3 . So, is this a sign that the selloff is something were watching an actual rotation to an end . Executive Vice President and chief investment officer. What do you think is happening . Is this a oneoff . It feels like money flow. Some things that gave me cause for optimism, watching relative shares. Many of the transport sector, particularly the rails, did pretty well yesterday. They have a reasonable gauge on the health of the economy. Just listening to the comments from jpmorgan, i think the economy is improving. Recent conversations i have had, including genesee in wyoming, the economy is on an upwards trajectory. It is being masked by external noise, whether it is weather and some of these other issues. It is taking peoples eyes off the ball in the longer term. Again, these are trends slow, not rapid recovery. Youre not making an overall call on the markets. Unck it is going to be much clearer the next several months. In the pieeo tech simply got to go to ridiculous levels right now. Many others were overlooked. It is going back to real growth in the economy. I think dan is right. It is evidenced by multiple things. Certainly the action we saw yesterday, very aggressive selling. Lots of conversations with folks around the street who confirm that. But more of that flow type driver, as dan mentioned, as opposed to somebody changing their fundamental picture. Valuations high in tech and biotech as an example. If you look at all the underlying data, if you look at the preview of earnings continue, its a fairly low bar we have to get over for this earnings season for a bottom line and top line growth perspective. I do think Revenue Growth is going to be the key factor. Part of what we have been seeing from a selloff in this rotation out of high beta, high growth has been some concern over whether or not that top line Revenue Growth can really take hold. We have seen the Macro Economic picture improve particularly in europe to a great degree. We have seen this higher beta, higher momentum selloff. I get it. Explain to me why then are we watching the 10year, the yield push down so dramatically . Why are bonds rally if its nothing to do with the economy . Bond traders react to the data in realtime. The data in realtime has been negative. It has been tied a lot to weather and some issues that will over time go away. I think as data improves into the second and third quarters this year, we would amendment it would be going higher. Bond traders arent known to be stupid. Joe, you also have some other issues too. Capital flights coming in from overseas. Rates are lower there. Rates are lower there. We are still viewed as a safe haven. And issues within russia and whats going on in ukraine, probably forced capital overseas. If you thought rates were headed higher, you wouldnt buy it. You wouldnt. You have to be insane to put money into bonds today. What you expect to see with the numbers, you think earnings will be first . Unck the job market will turn too . I think the job market has turned. If you look at the monthly number, it is 6. roughly around the 10year average. 20point is 6. 4 . I think the market is still in the process of readjusting our expectations as to what full employment in this country should look like. If you look at the job growth during that number, its come back. We saw a soft patch over the course of the winter. That seems to have rebounded. The weekly number is the lowest weekly number since 2007. If i remember correctly from what i read yesterday. The employment picture and really the broad economic picture i think has already improved. Were already there fundamentally. The question now, can that translate into better growth for companies particularly as it relates to Revenue Growth. Thats the key for earnings season probably for the better part of this year. Certainly in the next couple of quarters. Steve, dan, thank you both. Good to talk to you. Check out jpmorgan. Were going to head to break. Did you see mortgage originations in the numbers are huge for the lowest level. I mean, huge drops, right . Just in market and Investor Services for fixed income, that was down 3. 8 billion. Down 21 in fixed income on that. Equities up. And underwriting of high yield down 22 . But look at this. Mortgage banking net income, 114 million, decrease of 559 million. Net revenue, decrease of 1. 1 billion compared to the prior year. Those are the types that take your numbers down in a meaningful way. They did revenue and fixed income 3. 8 billion, down 21 . Over a billion missing there. Revenue was 22. 9, right . And 24. 52 is what they were looking for. But even mortgages. Thats like its all related to fixed income. Even mortgage services. Pretax, 270 million. Its not even as much equity banking. Its mortgages, fixed income. I guess anyway. He have anthony pellini coming up at Raymond James going through the numbers. He likes jp morgan. We had another terrific guess. The platinum portfolio. If you missed a few minutes. Ill be reliving all weekend. You cant afford not to watch them again. Links as to which colors are good. Im going to call some of these people and just shop around. Well be right back. ll be righ. Financial noise financial noise financial noise ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. Fixed income, trading revenue. Jpmorgan reporting First Quarter results moments ago on the squawk news line. Joining us is anthony pellini, bank analyst at Raymond James. It does appear most people on the street are saying the bottom line earnings per share number was a little below and revenue was below. Is it due to trading, fixed income . Where do you see the shortfall, anthony . Its a noisy quarter. Most of the myths and it is on an operating basis on 10 cents is on that line item. Trading, fixed income was a little bit higher than management guided. But down from last year. Exactly. It guided down 15 from last years First Quarter, which was an incredibly strong quarter. Provision was a little higher. What provision . The credit. It was millions, wasnt it . 850 million. Most people were looking for something lower. Maybe 700 million. Investment banking fees that was lower than expected. Credit card income was a little lower than expected. Expenses were also lower than expected. So we off set. If you take the myths on the mortgage banking line it would account for the 9, 10 crept miss on the operating basis. Others were positive. Others were meeting. The key negative, and it doesnt show up, is that we did not have acceleration in loan growth. We had a modest increase in pherbl loans but nothing like we had hoped for. It will be interesting to see if wells fargo into show a stamm increase. But the growth remains sluggish. Tax rate was in line. The miss was free income driven. A little beet, slight beat ironically on trading. And that goes for revenue as well as net income . Exactly. It would be miss on revenue and i would say 9 cents or 10 cents. Would you buy . If youre somebody looking at this longer term or not . I think theres a lot of value in jpmorgan. They are growing the international platform. And this was a tough quarter. Whats your target . Our official target is 72. 12month target. Are you going to redo your numbers later today . Most of what i have seen so far is an impact on this years number versus next years number. Mortgages may have hit their low. We are already seeing lower mortgage rates. In you know, its tough. Yeah. The mortgage line item has hedging. Theres a bunch of things besides volumes and margin. Gain on sale margin. It is typical to say the big miss stokes on our modeling for mortgage banking will flow through to a wells fargo or bank of america. Because each quarter, you know, banks show different areas of strength and weakness on that line. I would say the big, you know, negative here was Balance Sheet growth. It scares me when you say commercial loan growth. Especially when jamie dimon is talking about what he sees as a decent economy, a good economy. That doesnt really show through on the Balance Sheet. I didnt have the growth that we wanted. They missed the total loan projection by a fairly substantial amount, by 15 billion. Supposed to hit 3 on gdp. You would think you would start to see that in commercial lending, wouldnt you . I would expect it and i would be really surprised if wells fargo didnt spike a pickup. Next time i want to talk to you about some of the personnel moves at jpmorgan. Sounds good. Great. Well talk to you soon. When we return, unexpected faceoff between the architect of the United States ben bernanke and a critic of the policy, head of end ya central bank. The struggle to keep kids down on the farm. The average age of a farm serer 58 years old. Thats young. Really young. Depends on your perspective. Squawk master of the markets Jeremy Siegel will join us at 8 00 a. M. Eastern. 8 00 a. M. Eas. Gunderman group. Gunderman group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. Growth . Growth. I just talked to ups. Theyve got a lot of great ideas. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome awesome awesome awesome all awesome i love logistics. But with less energy, moodiness, and a low sex drive, i had to do something. I saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or Breast Cancer. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about axiron. Cozy or cool . 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And he essentially criticized the u. S. Monetary policy. Which he has been doing actively from india. Yes. What made this time different, ben bernanke was in the front row. We didnt know it. I run around to the side. This is the photo we have. We only see him from behind. Ben bernanke gets up. He gets the first question. Oh, look who is here . It was a criticism and a fairly long one. Rajan had gone on you need to consider the impact of policy on other countries. You can make our lives quite difficult. Sometimes the spill overnegates what you already did. Those are fighting words. What is significant about this event he has been saying the problems theyre having in india, the devaluation, all the pressure, all the money coming out is because of whats happening because of this threat that they will now pull back. They asked us to stick around longer. So im going to play a little bit of the sound. You are going to think i oversold it. Central bankers never get animated. My puppy died, today is my birthday, it all comes out the same. Some people keep saying transparent and well commuted exits would be useful. But in a situation where you have heard behavior, sometimes transparently is and good communication is not the best thing to do. When everybody realizes the Interest Rates are going to go up in june 2015 when the realization is given to them, what do you think the reactions of Investment Managers have been sort of hurled elling into other markets might be . It would be a faster and more emitted exit. I dont think you oversold it. Thats pretty good. Tiny piece of bernanke. If you want to hear the whole thing, we have it all on our website. It is wonky. A lot of what you have been talking about today reflects the fact that you are skeptical about the monetary policy. If i play the rest you wouldnt have understood much of it. I think what is extraordinary is ben bernanke has been criticized. Niece hes no longer head of central bank. He has been criticized by members of congress. But somebody who speaks his language of obvious intellect, mono au mono. And somebody who is in same position to say what youre doing hurts us. And having him really defend it in a way its the first time he can probably fight back not being in the central bank any longer. He gets to defend what done and talk openly about it. I want to show you two more photos. The thing ends. They come out. Rajan walks up, and shakes his hand and says, ben, im going to miss you. Im not saying they were enemies. Its not friend. It is not like they have seen each other meeting after meeting over time. And people were taking picks. Its the kind of age we live in when a central banker is treated like a celebrity. We wont know how he is going to be looked at for five years. Maybe 10. Can i tell you something really petty . Missed the whole thing. Where was he . On vacation. He might be with bob weir. What should investors expect. Rbs capital will be joining us in just a moment. In just a mome. Financial noise financial noise financial noise so ally bank has a that wont trap me in a rate. Thats correct. Cause im really nervous about getting trapped. Whys that . Uh, mark . Go get help i have my reasons. Look, you dont have to feel trapped with our raise your rate cd. If our rate on this cd goes up, yours can too. Oh that sounds nice. Dont feel trapped with the ally raise your rate cd. Ally bank. Your money needs an ally. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Welcome back to squawk box, everyone. Lets get to some of your morning headlines. Jpmorgan kicking off earnings this morning. Earnings of 1. 28 a share. Compared to 1. 40 a share estimates. Revenue shy of expectations. 23. 9 billion verses the 24. 5 billion analysts were looking for. We just spoke to an analyst who said, yes, they missed on a lot of lines. Including commercial loans. It was lower growth than anticipated. Stock is down 2. 3 . Ceo jamie dimon saying housing has turned a corner in most markets and he has growing confidence in the economy. This is a dow component. After yesterdays big decline. Thanks in part to what jpmorgan is doing. Down by almost 55 points below fair value. S p off close to eight. Nasdaq down another 25 points after yesterdays 3 decline for the nasdaq. Its pretty ugly in the nasd nasdaq. We had guys saying you had to pie with both hands. One of our platinum types. They will be capitulating again. You dont capitulate at 2 selloff, do you . If they are levered. Even the s p i dont know. Were flat for the year. A percent and a half maybe. Maybe the capitulation happens in the nasdaq. Thats 7 from the highs. Again, you have to think 7 levered. Its always levered, though. Well, were going to get more on whats been happening with the economy. Up next, we will be hearing from wells fargo. Those are expected at 8 00 can a. M. Eastern time. Analysts are expected wells fargo to report. Sony warns customers to top using vaio laptops. There is a risk the battery could catch fire. At least three pcs have caught fired. The fit 11a is the model in question. Made by panasonic. Ending the day down triple digits. With money pouring out, what should investors expect once tech kicks into high gear . The head of rbc. You switched from rbs to rbc. Whats your take on whats happening this week . We had a selling off of stocks. Facebook, twitter, netflix, those are the five up 100 or more last year. Some of these valuations got ahead of themselves. They can come back by the end of the year . I think so. Is there a particular move . Whats happening . I doubt its a secular move. You just created a pretty interesting buy opportunity. We put out a basket of stocks going into the year. You can get internet exposure for 15 to 25 earnings growth. When those stocks correct, step in and add to positions. Thats defensible. Yeah. Whats amazon to you . Amazon is a different case. Story stock. One that will be proving out profitability this year. We think the cash flow will double this year. Near term we think theres less risk to earnings than we have seen in some time. We think across the board earnings will be in line. Most of them, amazon, priceline, facebook probably have less risk this quarter than we typically see. In general, you dont think the nasdaq you think 4,000 is okay . Ill stay away from Big Questions like that. But ill look at the internet space. We have had a lot of supply in this space. A lot of ipos. Especially in the small cap space. Yelp is a good example. Remember the ipo . How long did it go after that . 18 bucks. And then just almost 60. It got above 70. Thats kind of a little poster child for what happened in internet stocks. I thought you were going to Say Something like that. I fundamentally disagree. I may be wrong. This is face book. Theres google, priceline, ebay. Four companies doing 40 to 50 ebitda. I mean the new internet. Google i dont think of as internet. Utility . Yeah. We like facebook on the pullback. Its worth somewhere in the mid70s. We could put as much as 40 pe. We think growth supports the valuation. We like the video ads. That might have been obvious to people at that point. Or twitter. Twitter is probably your fluff example. I think more so more than facebook. I think facebook will be back above 70 in three to six months. I think twitter will go back to its highs but probably not this year. Theres more coming. My next question, we have alibaba and other guys coming up. We have had a pretty robust ipo cycle the last two to three years. Theres been very good stories, fundamental stories that have come out of that. Most of them very aggressively priced. We tried to be cautious on most of these that have come out. Do you think the guys understood their stock was overvalued . Its hard to argue that. Thats probably right. You have had two things you have had a surge in equity prices. 200 billion in cash lying around looking for deployment. By the way, the way these companies have seen reaction i would be surprised if maher and others arent saying we should do other acquisitions. Mark, thank you. Or acquisitions using stock . Mostly cash but stock. It got so expensive in the nasdaq you started worried whether there was speculative money. Twitter, tesla, facebook. Zulily. Since you mentioned tesla. One of the biggest trends is vehicle connectivity. It is a hot spot. Is it going to help internet or someone like at t . Darn good question. Pandora as a playoff vehicle connectivity. They warn you when you are not paying attention. Everybody is still texting. I wonder how is this person driving like that. You are talking about the hot spot around it. Yes. Youre looking at stuff on the computer in the car. Distracted driving is going to be a major issue here. There is a new Growth Engine for some of the names. Give me one other thing. Ebay and pay pal. And the end of this saga. I felt it offensive that you could have carl icahn call the board corrupt, da, da, da. And then announce, oh, its okay. This horribly corrupt thing, everybody is ignorant and they are all morons, im happy to work with them now. He picked the wrong activist situation with ebay. He has been extremely successful in the internet space. Netflix. Yahoo third point nailed it. Poor fundamentals, massive shareholder turnover. That was the opportunity for activists. You would split pay pal . No. Absolutely not. He lost . He lost. Ebay is a very good asset. Rock solid Balance Sheet. He did win one thing, and its good for ebay shareholders. He got them to start buying back more of their stock. They had too much cash. They should have been buying back their stock. Theyre doing it. Another big name, a stock picker looking to make you money. Sisco down 2 yesterday in the selloff. Find out why this is a buying opportunity. You cannot afford to miss it. It will cost you money. Youll be poorer if you dont. Why the government is encoura encouraging young folks to get into farming and ranching. Ming . Yes sir. Alright. Lets share the news tomorrow. Today we failrly busy. Tomorrow were booked solid. We close on the house tomorrow. I want one of these opened up. Because tomorow we go live. Its a day full of promise. And often, that day arrives by train. Big day today . Even bigger one tomorrow. When csx trains move forward, so does the rest of the economy. Csx. How tomorrow moves. It is platinum portfolio time. We are talk squawk picks. We are adding jason subotky. He thinks slow and steady wins the race when it comes to investing. He joins us right now. Jason, good morning. Good morning. You think slow and steady wins the race. Youre not looking for a high flyer the next month or two. You are looking for the next several years. Good you would like to own . We like businesses where they have the ability to expand margins against the back drop of the general market where we think margins will be compressing. They are even cheaper than they look. 21st century fox . They are building out new Networks Like fox sports. And building out Networks Like fx. The next three years, their earnings and margins will dramatically open up. It has a Good Platform for growth. The company is generating a lot of free cash flow. Its very, very focused. They are spending a lot to invest. When you think of things like fox sports you think now is the time to be in it not down the road when they reap benefits from it. They are delisting in australia. That caused pressure in the stock. That should end at about way month. You have had artificial pressure as that lets up. The stock will be able to do much better in the near term as well. Were not people who predict much about the near term. You like blue chip Proctor Gamble. You see the world dropping rapidly like the last few weeks. Its a steady company. Has a lot of high market share products. It is very focused now. Reinvigorated management for the last year. We think you can see good Margin Expansion the next three to five years so the margins can grow. How strong is leadership . It is always important. You saw earnings stall. They took pricing too aggressively, which is easy to do. With a lot of these companies, as they are able to rebase and refocus, which we think Proctor Gamble is doing right now he was gone. He was already retirement age when he left. I know. And you they brought him back. So they still have that problem. Who are they going to get to replace a. G. . A lot of their competitors ended up with p g people who know a lot of p g strategies and execute them well. They will find a strong manager. He came back to make sure the company is well situated. The first time around they screwed up. Dirk jagger was no good. They have had a couple. Even in a bad scenario, its not that bad. We think there is a lot of room theyre focused on. 45 products that alone each sell over half a billion dollars. Another stock that you like is technology bellwether cisco. People worried about technology right now. Why do you like cisco . Back to what i mentioned earlier, its almost all about the price. It is one of the Cheapest Technology stocks out there. It is one of the cheapest stocks out there. Seller Balance Sheet. A massive product portfolio. Lots of diversity within it. Huge margins. It sells 10 times adjusted free cash flow. In this environment its a huge standout. Its a lot about the price. Cisco has executed really well, grown thr earnings significantly over the last, you know, 13 years. And its about a third of where it was at the alltime high. A. G. Is only 66. 66 is the now 56 at the moment. He could have four or five more years. He may not want to stay four or five years. He may not want to. But its a different world at this point. Maybe succession isnt right in the next year or two. Rupert murdoch, who is 83, says he hopes he has until hes 123. Sumner and others. Thank you for joining us today. Thank you very much. When we come back, Jeremy Siegel and the markets. And coming up from wells fargo. Up next, the governments big push for farmers. Jane williams has a preview. Jane . Hey. The average age of the American Farmer and getting older. Who is going to grow our food . Were still going to be hungry. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry, but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Rain makes corn, corn makes whiskey, whisk makes my baby feel a little frisky. The government is pushing to get young people involved. Jane wells has more on why it says here, hard to keep kids down on the farm. Its at least 10 years, jane. Its at least 10. I would say 15 years is the new right . Work with me on this. Im going backwards is my new thing. You hit a certain age, which i wont mention, and i started subtracting. Which is not very good in business. The challenge is, in one word, land is expensive. There are six times as farmers over the age of 65 than under 34. Ryan kirby didnt like his office job in houston. So he decided to grow corn and soy beans. And backing on agriculture to succeed. And daniel. I graduated from stanford in 2002. Most of my friends were going into hightech and things like that. A spent a couple years doing that. Now, to the relief of his family, he came back to their cattle and wine grape operation. All three are returning to family farms. They do not have to buy land. Thats the only way they can afford. It. In california, it is especially difficult. Land prices are so expensive that, you know, to be able to break even or even make a profit for krouyourself is almost impossible. Why do it . The love of the land is the right thing to do. With 2 of the American Population being farmers and the rest being consumers, to me that seems like a wonderful opportunity. The main thing that needs to be done is from other farmers, the dads, people already doing this, encourage a love for growing things and a love for agriculture with your children. That is where the love is. All right. Now, the usda today is announcing new funding to help new people into farming get financial planning. Also loans through the farm bill. And agriculture secretary tom vilsack tells me i hopes to attract returning veterans. Listen. I think it provides a way of reconnecting to the land, reconnecting to the roots. And i sincerely hope our work with veterans groups results in a lot of young people coming back and farming the land. Farming will continue. Investors are buying it. They are bringing in managers to farm it. Expect more than that and fewer family farmers. Back to you. I think we can maintain the country was 50 farming 50 years ago or whatever it was. It can definitely tract enough young people. You develop an eye for it. And the love of growing things. Its just too expensive. And a tough job market. Im sure people would flock to go do that. Youre not standing behind a horse with a plow anymore. Its not quite as physically demanding. It is incredibly efficient. It will work. The market will work itself out. Whether family farms or families who are farming for the endowment is the question. Most of the people working the farm, is this a family . Is it an immigration issue . Who is doing the hard work . It depends where you are. Obviously in california you have a lot of labor issue because of the crops and high intensity. In the midwest you can machine farm. They are trying to get machine harvesting here more. Most of the farm owners are sons and daughters. They are the only ones who can tpard to get into it. Do you know jason aldean . Big green tractor. I was going to play it. We dont have it. We have to pay for music. Jane . Jane . Gunderman group. Gunderman group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. Growth . Growth. I just talked to ups. Theyve got a lot of great ideas. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome awesome awesome awesome all awesome i love logistics. Or how ornate the halls are. Tall the building is, it doesnt matter if there are granite statues, or big mahogany desks. When working with an investment firm, whats really important is whether the people behind the desks actually stand behind what they say. Introducing the schwab accountability guarantee. If youre not happy with one of our participating Investment Advisory services, well refund your program fee from the previous quarter. Its no guarantee against loss and other fees and expenses may still apply. Chuck vo standing by your word, thats what matters the most. I just ah woke up today and i said i need something sportier. Annnd done. Ok maxwell, just need to ah contact your Insurance Company with the vin number. Oh, i just did it. With my geico app. Vin is up to the loaded. Ok well then jerry here will take you through all of the features then. Why dont weeeeeeeeeeee go out to the car. Ok, ill just be outside. Ok, yeah. His dad is my boss. Yeah. Vin scanning to add a car. Just a tap away on the geico app. Welcome back to squawk box here on cnbc. Im becky quick with joe quick and andrew ross sorkin. After a rough day in the markets yesterday, you are seeing continued blood in the streets. Dow down 60 points. S p up 7. 5. Nasdaq lost 3 . Down another 22 points below fair value. It looks okay here. Wells is reporting right now. Looks like 1. 50 on revenue of 20. 63, above 20. 95 on the street right now. At this point its hard to say wells down 21 cents. 47. 56 and 47. 89 close. Metrics are slowlily coming in. 12. 63. It is similar to what jpmorgan made. Wells fargo, 250 billion market cap. Much higher market cap. It gets rewarded for what is seen as the best managed bank in the country. In the mortgage business. You think it might at least these numbers you know, i think that jpmorgan would have been fine with mortgages being down. Anthony talked about the loan. I want to see that here. 20 write throughs. John is the chairman and ceo. Deposit straighting the ability of our diversified Business Model to perform for shareholders. Tim sloan, cfo, a frequent guest on squawk, were pleased with wells fargos performance in the First Quarter, particularly with some of the fundamental drivers of longterm growth. Loan, deposits, capital, credit quality. Total average loans up 3 . We dont have that commercial number. It will be interesting. Commercial loans came in. We wont know whether they are above or below. The chart is not playing out correctly. Came in 3. 79, 5. 61. Nephew down last year. Higher Noninterest Income. More than off set by the decline in net interest income. Too fewer days in the quarter. Waoelgt management, merchant services, personal lines and loans. What is that, sequential . Year over year . Or sequential . Mortgage banking, Noninterest Income down 60 million to 1. 5. Up from 9. 9. Growth was driven by increase in market sensitive revenue. Mortgage servicing income. I dont know if you got the same situation here. Certainly not down as much as jpmorgan. Jpmorgan going to have a bigger impact. Jpmorgan kicked off earnings season, the financial sector. They recorded a 1. 26 a share versus 1. 40 a share. Revenues shy of expectations coming in at 23. 9 billion versus 24. 5 billion analysts were looking for rplt health and Human Services secretary Kathleen Sebelius is stepping down. President obama has chosen Sylvia Burwell her replacement. Republicans continue to see problems with the Affordable Care act as a winning issue. Of course lots of questions how she could have said she was 11 hours earlier. A couple of conservative sights has be gone after burwell. She was the one who sent out the email who shut down the government. Shes going to take flack for that. She has experience working for bill gates and others. This is his goto person at this point. Its a tough business. Sebelius has sort of taken one for the team. The other question, what does someone like sa peel kwrous do next . Hes shot going to replace letterman. They definitely have someone. Colbert spot is open now. Theres an opening, an opportunity. Because a the of times Kathleen Sebelius seemed like a comedian. Rim shot. She was extremely funny at certain times. Selloff dragged down the Broader Market and left all the indexes in the red. Jeremy siegel is the professor of finance at the Wharton School at the university of pennsylvania. A true thought leader. Kind of a legendary thinker in all things stock market. Im going to start with something that seems obvious to all of us. If you look historically what caused tough times, bear markets, there dont seem to be any conditions right now that would cause recession or bear market. I still worry because we never know before it happens what it is going to be. Do you agree with bill miller on that, jeremy . Youre right. We dont know what we dont know. People ask what are the unforeseen risks. All rotations are certainly painful. I think this one is healthy. Dividend stocks have been under performing over a year. The fed is raising rates. The fed is raising rates. We saw the rates going up. Stay away from the low dividend paying stocks. Now, you know, we see the 10year down to 2. 60 from over three at year end. People are saying kwrorz a lot of Interest Rate hikes. Certainly we do think in 2015 the fed will start raising the rates. But i myself have downgraded what i think the 10year treasury will be. Maybe not over 3. 5. Wow. With dividend stobs yielding almost that month i think whats happening is the rotation is coming. Youre making the case were worried about the 10year. We think it indicates a slower economy. But youre saying it just makes dividend paying stocks more competitive. Let me ask you this way. If the economy disa points. See, we have done fine with 2. 25 gdp growth. It has doubled the last five years. People think the economy needs to go into a higher gear to validate where the stock market is. Do you think thats true . I think we need to see some acceleration. This First Quarter will be terrible. It might be around 1 . I think what the market is hoping for is 3. 5, 3. 75 over the next threequarters. Yes, there will be disappointment if we dont get that. But what will cushion the market, i dont think that will mean a bear market or serious selloff. Again, as we mentioned, yields at 2. 60 on the treasuries dont really threaten the conservative dividend paying stocks. They will hold in if there is slow growth. If it goes up to 3. 5 or 4, we can still hit our goals, which is 18,000 on the dow by the year end. Jeremy, there was aim time we thought the fed had a problem because even when we intimated they were e going to taper, remember the 10year ran up. We were like oh, my god, if it gets to 3. 25, almost chickened out whether to taper that first time. They should be ex static that they are able to do this and Interest Rates are so under control. Maybe its good they can do this and rates will stay behaved. I think theyre pleased the wrong rate came down. That is certainly whats holding in the more conservative sectors of the market. It should be reflected in a rise in those sectors as this rotation is continuing. This is an excellent sign. If the 10year was 3. 25, i wouldnt be anywhere near as bullish as i am. I wish i had been on the debating team. They could take either side. Sitting here next to you and knowing you tip, i dont know with what you actually believe. I read 10 signs of a psychopath. I had some of them. Not all of them. I was well below. Good to know. Do you think any of the stock market gains, do you attribute any of it to artificial sugar stimulation from the fed . Very little. Really . Yes. The last two years, all the stock market gain is due to the qe of the fed. Im saying we just passed the median price earnings ratio, 15, 16. In a hroeu Interest Rate environment we are certainly back on the 10 year in the post world war period, 19 is the average pe. Were not there yet. It isnt qe. Its valuation of the market that is cheap in a low Interest Rate environment. Thats the driving force. Andrew is not interesting because you have written him off. Do you put any freedens in what he is saying . I do. I wasnt rolling my eyes at all. What is that hand signal . We just put a 10year note up. I noticed the yield is 2. 619 . So we have watched the futures under more pressure. We have watched the yield under additional pressure. What do you think is causing that . Well, in the short run youre going to get the yield is going to move with the stock market. Whenever there is yield in the stock market, people move to the treasure list and that drives the yield down. You will see it below 260. It is short run. Are the stocks driving the bonds or the bonds driving the stocks . I think now the stock market is helping put that bond rate down. People worry is this a recession. Its why we are getting buying. Move from riskier assets to safer assets. Professor, most hedge funds, the big funds right now are relatively overlevered and long, the market. The question is how long can they hang out here with the market direction down the way it has been . What does that mean, at least in the shortterm. I know youre playing for the long term but at least in the shortterm. I think they are overlevered in the momentum stocks. They have been playing those stocks over time. I think they are probably underinvested in the conservative dividend paying stocks. And i think theyre thinking of a rotation in that direction. I dont think its on the stock market in a whole but the types of stocks that they own. All right. Professor siegel, thank you. Thank you. I defend you all the time basically. Can i say not from me. Who are you defending me from . Just the permeable you just cant win with this guy. Andrew is doing his job and pushing people. Jeremy, thank you. Im okay with that label. Streets reaction to wells fargo. The stock is trading higher now. We will talk to financials and what investors should be taking away from the numbers. As we head to break. Jpmorgan shares under pressure. Down 3. 6 . Missing expectations. Squawk box will be right back. Can you start tomorrow . Tomorrow were booked solid. We close on the house tomorrow. Tomorrow we go live. Its a day full of promise. And often, that day arrives by train. Big day today . Even bigger one tomorrow. Csx. How tomorrow moves. Welcome bark everybody. Wells fargo reporting First Quarter results just moments ago. Joining us is banking analyst from guggenheim. Did you like what you saw here . We did. What we think we saw is three items that helped significantly beat the markets expectation. One was increased educate investments as a reap of some of those investments made in companies as they needed that extra capital. They are now getting the benefit of the return in their profitability. Expenses coming down. And a marked improvement. They are continue to go get better. What do you think about commercial loans . An analyst looked closely as jpmorgans numbers. They were concerned the commercial loan growth wasnt stronger. We were trying to figure out if that said something about the economy or jpmorgan . It says something about the First Quarter of a given year. You have a bull back from year end, especially on the corporate area. They showed quarterly loan growth. We will see that in super regional banks that are more middle market. You start to lose some of the corporate traction we have seen in the past. Part of what you are talking about is what executives have done. What would you read in the broader economy, particularly when it comes to the housing market. Again, same originations down in the First Quarter. But thats as much seasonal as anything else. We look at First Quarter to Second Quarter, you go from the weakend quarter of the year to the strongest in the Second Quarter. You would see some home purchases go up. We are still seeing deposit growth. You have loan and deposit growth at wells fargo, which will be good Balance Sheet growth. Stock is trading 48. Do you have a price target and would you buy it here . We would. 60. Wells fargo will be the only bank able to accomplish what we call the triple crown. Sequential double digit growth over a year ago. Nice momentum on earnings. The increase in the dividends, 17 , was just a foreshadowing of the revisions we will see in the outlook as we go through the year. If you can bet on wells or jp, is wells the winner here . We had an analyst put a 72 target on jpmorgan. If hes right, theres a lot more money to be made here than there. You have wells for going on the short run the next six months which is very positive. Jpmorgan, we have a buy on. As we go through the year, we should see revenues starting to come back even more. Wells on the mortgage side has the flexibility, which balances out well. Its a nice backstop to see what we are seeing in originations. One of the worst days in two years. Some stocks close to 10 . A closer look at the sector in just a bit. Find out if it will bounce back. Check out the squawk box market indicator. Back in just a moment. In just e financial noise financial noise financial noise at your ford dealer think . They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. Welcome back to squawk box this morning. Google glass is coming for the masses. But only for a limited time. They will take online orders starting tuesday, april 15th. Also tax day. Dont forget that. Quantities will be limited. Webready glasses will cost 1500 a pair. This will be the biggest Expansion Plan to date. Many analysts it will go mainstream later this year. Joe will be 12 01, ready to click. He has his credit card out. I just know some people, july 4th is an important day. For other people, april 15th is the tpeufrpbt day. Tax day. When we finally can take back, take back and give it to others. Theres no comparison. Stkpwhrb july 4th. Rob lowe figured out collectivism. We have other news. Both of you need to Pay Attention. I kid you not. Cisco and juniper saying heartbleed bug, a computer virus, that can access user names, passwords and other information. They said they quickly fixed the problem. It affects routers, switches and firewalls often used by businesses. We should not be buying stuff online . Theres a site is it mashup . I found it yesterday. They made all the sites that people go to. Dropbox. They might have had a problem. Change your password. Because they have fixed it . Its a potential problem. I went and changed passwords. They say dont change it until the site has been fixed. What did you change it to . Heres the thing. If it was a virus that actually infected humans named heartbleed i would be much more just for me. Is this a joke . Think about it for a while. When we come back from break, try something else. We have pti data. And then they were helping with the s p. The new highs. Lately it seems they are sick of biotech. And as we head to break, take a look at the u. S. Equity futures. A lot of red arrows after a big down day yesterday. Down 266 points down. 266 points. Its the get growing sale from adt. Right now you can get 200 off adt pulse for Small Business and a wireless camera at no charge with a qualifying bundle. Woman when you own your own business, its a challenge to balance work and family. Thats why i love adt. I can see whats happening at my business from anywhere. Now manage and help protect your Small Business remotely with adt. Arm and disarm your alarm, watch secure video in realtime, and even adjust your lights and thermostat wherever you are. With adt, you get 24 7 protection through our Fast Response monitoring. The get growing sale. Call today to get 200 off adt pulse for Small Business. Hurry. Sale ends april 15th. I love the convenience of adt. I can finally be in two places at once. Helping to protect your business is our business. Adt always there. Welcome back to squawk box. Now to Rick Santelli for the pi. March ppi, final demand month over month. My goodness. I had to look at that twice. Up 0. 6. Thats a whopper of a headline number year after year data, 1. 4. Take out food and energy. 1. 4 as well. These are pretty hot numbers especially for an economy where if deflation was a flag you would need a pretty darned big boat to keep it all in perspective to put it on top. Down 0. 1. On the core, 1. 1. I keep having to look at them three times. Pretty surprising to me. If we look at whats going on in the markets, i say look no further than the 14,000. That is given you the identification of where you need to Pay Attention to. We want to continually look at the dollar yen. Euro in favor of the yen. In a world where we settle at 3. 03, its really, you know, the tens and the 30s are having great 2014 in terms of return. We are now several basis points under the psychological 3. 5 area. Back to you guys. We have been on the same page. I watched you yesterday on squawk on the street. What is that called, the santelli exchange. It is, joe. The santelli exchange. Thats it. Now i have already switched again. I worry about what is causing rates to go down. And i worry about whats causing the 10year to be where it is. I think it indicates in a flat yield curve that we are overestimating the strepblt of the economy. Now i have another viewpoint. With a fed that definitely wants to extra indicate itself from what it has been doing, i think it is a positive rates are behaving so well. All hell broke loose. It gives them cover to be able to keep doing what theyre doing and rates are behaving. Maybe the reason its there isnt great. But maybe the outcome is actually a good thing. How about that . That is perfect. Next to the fourth head on mount rushmore, i wish i could carve those sentences. They are watching whats going on. A light bulb should go on. Highly iq brains. That is we should use this opportunity, ground cover this basketball pit to get back to conventional central banking. We know there is. At least anticrisis kind of banking. Because should there be issues, should there be a spongy or brief recession based on the yield curve a couple of quarters down the road, how will they try to do what they used to do . Tinker around. Try to give it more momentum. When youre this far into the programs and youre still keeping them on it affords them few alternatives if things go in an unforeseen soft economic direction. Thats not bright point. If we dont go up to 3 gdp, maybe they will realize, god, we have thrown everything we have to try to help the economy. Maybe its not something we can help. Maybe they will let it stand on its own. So markets start clearing and we go back to the old way we used to do it. And private sector dictates where prices go. I agree. It gives us a view into economies of the past like average tina, brazil or venezuela. If you want to take care of your people, the best way to do it is to make sure the economy is coming along to give you the capital to prioritize to do the programs that help people. Yeah. But if helping people and ignoring the laws of free markets is the direction we ultimately have fewer and fewer and fewer. How about is the market if it is only 2. 25 gdp, is this going to be more than a 5 or 6 decline in equities . Do you think were looking at a 10 or 15 decline . Listen, all these programs didnt exist, were kind of looking back through the prism of these were the normal days, i would say 5 or 6 correction would be in the cards. Knowing things arent the way they ought to be. No one can truly tell you fair value in any market, i think the ice will be thinner, correction deeper. But i think ultimately we could find the type of bottom and get all sectors of the economy and the markets on the same page so we can actually look at the mall locator. The dot, you are here. Know where we are with equity, the relationship and the economy. Okay. Anyway, took me a while to get to that point. Yeah. Ill tell you what, joe, one final thought. One final thought. Even the yield curve, the interpretations i try to make on the exchange, lately its been a good topic, we really dont know. Were using our best guess. It really is disappointing economic outlook. It is. A flat one is predicted 10 out of the last three recessions. Exactly. Lets bring in cio at citi private bank. Were you able to hear all of that . Yes, i was. One flat kwaoeld curve. Long term yield fund averaged 100 basis points. Here it is at 260. Obviously low rate levels. But, you know, it has flattened down some. Theres tons of carryout there. Even where we have Unemployment Insurance claims falling back to 300,000. 200 jobs per month in february and march. Likely stronger in march. You see, a squeeze on the consensus of optimism. Why is it up 15 . We retraced after 100 basis points selloff with the feds still buying bonds. Not tightening. And i think the feds guidance that we will have a rate hike six months after qe was a bit of the you didnt have a clue we would be at 2. 6. Didnt you think we would be above 3 . Generally we think rates are headed up. This is one of the first type in the cycle where we havent revisited dramatic low yields and gone lower and lower yields. We are a full percentage point where where they were a year ago. Complacency in the bond market compared to a year ago has been dramatically reduce stkphrd we will do 3 gdp. I think we will come close to 3 gdp. I think its important to see the context that we have not seen a severe deterioration in credit markets while rates have rallied. Theres been a little bit of spread widening. I would look for that to lead more than sort of just a correction in markets. Which so far in the last five quarters has been half the longterm average. And than you have faber who says 1987, worse. I feel better now. I think everything is fine again. But if the market. Like yesterday, the market didnt want to listen to everyone. It just does what its going to do. Were going to talk with biotechs next. They have been getting bruised, battered. After hitting an alltime high back in february, biotech etf down 8 . Find out next whats about to happen. And pro golfer Lexi Thompson just won her first major at 19 years of age. Thats crazy. Thats crazy. Aflac, aflac, aflac [ both sigh ] ugh you told me he was good, dude. Yeah he stinks at golf. But he was great at getting my claim paid fast. How fast . Mine got paid in 4 days. Wow. Thats awesome. Is that legal . Big fat no. [ male announcer ] find out how fast aflac can pay you at aflac. Com. [ male announcer ] find out how fast aflac can pay you hi, are we still on for tomorrow . Tomorrow. Quick look at the weather. Nice day, beautiful tomorrow. Tomorrow is full of promise. We can come back tomorrrow. And we promise to keep it that way. Driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. What a day. Cant wait til tomorrow. S p Biotech Sector fell 5 . That was yesterday. Its down 14 the next month. What happened and will the selloff continue . Joining us is jason i could call you colbert. Jason colebert. Are you going to be a right wing jerk or a biotech analyst. Just a biotech guy today. What do you make of all of this . Yesterday the market selloff in biotech was pretty severe. A lot of it had to do or the trigger had to do with pricing concerns over sovaldi. It was talked about as one of the most expensive drugs for hepatitis c. It is not more expensive than some of the other drugs currently used by with ire efficacy. But the reality of the costs associated across a Large Population clearly has governments concerned. They have to get regulated and the prices have to come down. Thats the concern. Thats triggering the selloff. It qcapitulates to this kind of pressure. When will we know . We wont know for some time. I can tell you based on the feedback im getting from the ceo of the all the major biotech companies, theyre going to fight this tooth and nail. The drugs arent regulated in the United States, not drug pricing. Right. As long as there is value in the drug, i think were in a sustainable position. We had 5 alone yesterday. I dont know whats going to happen today. Will we still have room to come down more . The voracity was scary. They tend to overshoot one way or the other. I dont know if we have seen the bottom yet. What will this mean for the ipos . Good question. With 37 last year. More and more lined you. People are really concerned. Does that mean the window is closed . No. I dont think the window is closed. The number of new products were seeing. Again, the value they are creating in the marketplace is there. So i think dollars for investing are there. But people are going to be pressuring the valuations of these ipos as they come out. Biotech played with obama, right . They were they did a deal for obama care. Biologics . Were going to see. Its a small molecule biologic. Where do you draw the line . Tevex carpaxone is claiming its a biolodgic. They are petitioning the fda to say, hey, these generic formulations are not, in fact, the same drug. If they are successful in that endeavor, it could have a very Significant Impact on the sector. Object. More importantly, lets look towards vertax and see what happens with cystic fibrosis. It could trigger a summer rally, typically something we dont see. We appreciate it very much. Hopefully we will see where it goes today and into the future. Over to kayla tausche. The first was trading business. I asked mary ann lake if she could identify a reason why it was down 21 . You saw a lot of other units down as well. She said there was no discernible reason. It happened across all products, all geographics and was a function of activity. She said youre going to see some of that softness until april or through april. Unfortunately it doesnt seem like the worst is over quite yet. The other business is mortgage. 83 . That is a huge drop. Heres what it does on return on equity. 3 . Compare that to asset management, 20 . Thats what is bringing it down. Jamie dimon was asked about flash boys and whether the market is rigged. He refused to comment on that. Mary ann lake said passwords were not couple miced. And they asked if jamie dimon was still having fun. He said there are challenges always. There are secular shifts but we are innovating and i still enjoy coming to work every day. Thats the latest we have. Ill send it back to you. Thank you, kayla. Cramers take auto yesterdays selloff. Squawk box will be right back. Its another big week on squawk box. Monday, earnings from citi. On tuesday, the stanley cup is in the house. We talk nhl playoffs with the commissioner. And take a spin in an 850,000 porsche. Wednesday, its executives from bmw, jaguar and nissan as the new York Auto Show kicks into high gear. On thursday, its the ceos of auto nation and sap. Set your wakeup call for monday 6 00 a. M. Eastern time. Squab box gets you ready for the trading day ahead, and its only on cnbc. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Make it happen with fidelity active trader pro. Its one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Lets get down to the new york stock exchange. Jim cramer joins us now. Im just i dont know what to think, jim. I theres a lot of reasons to say this is not going to lead to anything more serious but the market does what its going to do, doesnt it . Thats where i get a little scared. I dont like fridays either after a thursday selloff. And then mondays are scarier. Right. Lets go back to what Jeremy Siegel said and i always bridle when i hear people think hes a per ma bull. In march 14th, 2000, the wall street Journal Technology ripe for a devastating downturn. You take a look. The downturn began march 15th. Was the guy a clown . The guy was he nailed it. I was listening to your interview and if he said were in the same situation as 2000, lots of insider selling, companies that were valued way too high, then i would have caught my breath and said this is the end. The biotech fellow we had, biotech they flooded it, too many deals. I think Jeremy Siegel, give him his due. He nailed the top in tech and he could have said today, listen, this is unsustainable and were ready for a devastating decline and he didnt do it. The guy is real good. Lets get away from the idea hes not. Well, if the market is at alltime highs and the guy was bullish, its hard to say you were stupid. Its weird. Thats what ive said. If you stay along the entire time and at a new high you were right more than look, as long as Interest Rates go down were in trouble. It doesnt make any sense. Great jobless number yesterday. It does allow the fed to get out without too much trouble maybe. The fed could sell a trillion bonds. Everyone wants out. They want to go into bonds. Jeremy was right. Out of stock into bond trade. I dont know. Maybe ive read him too many times, maybe because im from philadelphia and he lives right next to my dad but i think the guy is really strong. He did not say get out now. I remember where we picked him up thats right. We picked him up when he did the show down there. We went with mark. Philadelphia yeah, we were covering the u. S. Open and he was one of our guests. I know exactly where he lives. Thats funny. See you in a couple minutes. Coming up, teenager Lexi Thompson won her first major title at 19. Think they qualified for the u. S. Open at 12. Second youngest winner of a womans major, she joins us right after the break. Ght after. Financial noise financial noise at your ford dealer think . They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. Lexi thompson is the second youngest major winner in lpga tour history at just 19 years old, won the kraft nabisco championship last weekend for her first major. She joins us now. Thank you. Thats the dinah shore, isnt it . At mission hills, right . Yep its at mission hills. I know where it is. I look at how things have been progressing here. Its like right on schedule for you. Youre 15, you turn professional. Made some cuts in 2011, made more in 2012. Made 19. 2013, 24 events, 19 cuts, six top tens, four top fives and now you won a major already in this is just going as expected is it not . Yeah its been going pretty well for me. Ive worked really hard my whole life but in this offseason i worked on getting my game more consistent especially in my short game. Im really happy its showing and paying off. I saw i never use the term bucket list but want to sky dive, play pebble beach. Youve played pebble bauch before, havent you . No. I havent played pebble beach, to. What . Even joe has played. Many times. Thats a good thing to want to do because it is its like the greatest place. You know, if you like someone some place more than pebble its just a matter of opinion at that point. Up to this point, your biggest star struck moment it says here was Taylor Lautner and jonah hill. An drew ross sorkin is sitting right across from me, the author of too big to fail and the movie, new york, New York Times columni columnist, would you like to update your star struck moment right now. I might have to now. Thank you. Who do you did you watch yesterday, the afternoon seemed much harder . Have you played augusta yet, lexi . No. I went there a few years ago to follow a practice round. I havent played there, though. Thats an interesting place. Do you do you have a pick . Do you have a couple people you think . Adam scott. Its weird that adam and bubba are right there and theyre the last two clamps. Like either one of them at this point . Well adam scott is one of my picks. Or phil or freddie couples. Like my top three. Phil seems like hes playing okay. Just made a couple of mental mistakes yesterday. You know, there is a little bit of a controversy that you bring up and i think its interesting on golf digest and we have that, women have been on i mean annika had to have been on a few times. I figure nancy lopez too. Wayne gretzkys daughter is on there why . Because she dates Dustin Johnson . Whats the connection to golf there . Must be dustin, right . Yeah, i guess so. But, you know, i think the last womens golfer was in 2008. I mean i guess im a little disappointed with the cover but it was a beautiful piece. Shes a beautiful woman. But hopefully well get a golfer on there to show and grow the womens golf. Kind of interesting. Lexi, we got to end it and the masters will be on later today. All of us were watching michelle wie as the phenom and i dont know, you kind of snuck in there and i think we better keep our eye on you at this point. Appreciate you coming on today and good luck the rest of the year. Heck, you can still do the grand slam theoretically, right . Im going to try. Thank you. Thank you. Have great weekend. Well see you monday. I cant stand losing i cant i cant i cant stand losing good morning and welcome to squawk on the street. Im david faber here with jim cramer. We are live from the new york stock exchange. Carl quintanilla has the day off. Well, lets start off with a look at the futures after yesterdays very bad losing day. The s p as you can see there, does look poised to open a bit lower. Dow also as well, of course, as the key market these days at nasdaq. Theres a