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The fed chair will be testifying before the Senate Budget committee this time, starting at 9 30 a. M. Eastern time. She told the join the Economic Committee the economy still needs plenty of support and that the markets are not in bubble territory. Valuations are in house torq historically Interest Rates are historically low. That feeds into the valuation. Theres that linkage. There are pockets where we could see valuations in smaller cap stocks but overall, those broad metrics dont suggest that we are in obviously bubble territory. In reaction to her comments, the dow managed a triple digit gain, closing at 16,518. The s p 500 also picked up ground adding ten points. The nasdaq, though, dropped 13 points. The nasdaq looked worse earlier in the day, though. You did see much steeper declines. It was boosted into the decline of 13 points by the end of the day. The futures right now, youll see at this point dow futures are indicated higher about 13. 5 points, nasdaq up by 2, s p up by 1. The tenyear yield, yesterday it was below 2. 6 . This morning, that yield ticked slightly higher, 2. 631 . That obviously is still something the stock market will be watching closely. Lets get over to andrew. He has more of todays top stories. Good morning. We have Corporate News for you this morning. Tesla reported First Quarter results after the bell. The electric carmaker earning 12 cents a share, 2 cents ahead of estimates thats good news. Revenue beating expectations, coming in at 713 million. Its outlack for the Current Quarter disappointing some investors. Tesla sees the delivery of 7,500 model s vehicles in the second quarter. Well talk about this in just a few moments. Kcup maker Greene Mountain reporting betterthanexpected revenue. We should little you about alibaba with morning, just filing for what could be the biggest ipo in history. Now the chinese ecommerce giant striking a deal with amazon rival shop runner. Shop runners whose partners include Neiman Marcus and nine west will use alibabas infrastructure to launch in china later this year. That move would offer a way for u. S. Retailers to access this company. Shop runner launched four years ago. Currently has over 1 million members and is still very small compared to amazon and ebay. Joe . Over to you. I missed you, i missed becky. I was here yesterday. You forget. Sorry. You were probably overshadowed by the big tall guy that wont take off his jacket. Thats all right. Youre so nice. Its a protest. You want no jacket. This is a working set. When in squawk, do as the squawkers do. But no. Barclays unveiling an overhaul plan that would have the british banking giant cutting 19,000 jobs over the next three years. The company will also separate noncore asset into a bad bank. I like just the term. Very bad. These is a bad bank. Where it will house much of the european banking. Youre a very bad bank. Youre a very bad boy. I want to talk about something else. Are you going to go where we were just going . No, im not going anywhere near there. All right. From now on, st. Patricks day and cinco de mayo, i dont know anything about anything. Basically were dividing the bank into two, a core group of four strong businesses that are well fogs positioned in their ms with good Growth Prospects or returns. Were combining our personal and Corporate Banking interested in the uk into a new business. We have our barclays car payments business, our africa interests and Investment Bank which will be much more focused on clientled origination and a smaller plan going forward. Let me say one thing before we get to astrazeneca. This is in a nutshell is what occurred to me yesterday. The import export numbers came out, both were weaker than expected. Analysts say that the economy probably contracted in the First Quarter. Remember we got 0. 1. They think its down 0. 8. That means for the next four quarters we need to do 4 plus to get to 3 and the tenyear, the way its acting is not forecasting anywhere near 4 . I dont know what that means. Somebody was saying before, Steve Liesman was saying, because i worried about that, too. Dont worry about it. You said when you then come back its easier to make a much bigger gain off of it. Its stretched. I was thinking its gpa, right . If you get a 2. 0, youre never getting that back to a 4. 0. I know that. That happened no, it actually didnt. I just came down. Started the psych major with a 4. 0 and by the time i hit molecular biology speaking of which. Astrazeneca, shares gaining on the speculation that pfizer is ready to return with a higher bid. People in the know say its about money. The British Government is there any way we say no, we dont want your tax dollars. Im sad were not somehow going to try to keep pfizer here. We are. Its not over yet. You dont think theres going to be calls to do something . Then we cant when we try to do something somewhere else, people say you cant buy us. Right now its 20 . Theyre trying to change it to 50 . They can do that quickly before this. Im surprised congress we talk about the issue here. I think a lot of people in new york you dont hear it out of washington. No. Im surprised by that. I dont think they do it just on this. Pfizers previous approach which was promptly rejected. The value of the cash and stock offer has slipped because of a fall in pfizer shares, following results. Ian read will try to lay out the merger next week. I think hes over there arguing or representing or doing whatever important people do. We have offices there. We do. Why would the uk give them a hard time about this . They wouldnt. Why is there even a question . Why is astrazeneca isnt astrazeneca saying they want more money. Dont stop, dont stop, dont stop. I know what i am but i want more for what i am. Pretty much. You think theyre using the government as i dont know. I dont know. I dont know whether they want to stay out of pfizers clutches or want a better deal. You never know. Usually its money. A lot of times its ceos that dont want to lose their jobs or boards that dont want to be kicked out. Ian read probably has ten reasons to do it. And the number on the other side the amount in dollars. The reason is no longer relevant. Turning now to the crisis in ukraine, russian president Vladimir Putin calling on promoscow separatists in ukraine to postpone a vote on succession, just five days before it was to be held. It was the first time that putin has given that he would not endorse a referendum planned for sunday by prorussian rebels seeking independence in the east. The russian leader also announcing that he is pulling Russian Troops back from the ukrainian border. The russian markets seeing some relief in putins comments on wednesday. You can see the micex is down by 6 points. Youre not seeing even worse gains than you might have been doing otherwise. Oil prices right now are down 24 cents, theyre still above 100. The dollar today, if you want wato take a look, euro is at 1. 3941. Dallas yen is at 1010. 75. Theyre up about 3 this morning but still below 1300 at 1, 291. 902 291. 90. Ford shares moving higher on that news. Also in the auto world, a case of good news and bad news for automaker toyota. Its reporting a record profit for the fiscal year that just ended march 31st. It also became the first automaker to sell more than 100 million vehicles in one year. However, toyotas also saying it sees profit dropping 2. 4 for the current fiscal year which would put it below analyst estimates. Currency fluctuations which helped toyota the last year are expected to have a negative impact this time around. Youre still sick . How long did it take you . I still cough at night. It was over a month. When the voice was gone it was a dry, painful thing. Now its just a mess. I think you need antibiotics. No, its not antibiotics. It has nothing to do with i was on three cycles of antibiotics. Im not going to add to the problem. I waited 21 days before i got antibiotics. Youre adding to the problem to society. When youre adding treating a viral obvious viral infection. Everybody is doing it, man. It is wrong. I didnt get antibiotics until after 21 days. You settled one thing which is a huge issue in my house. When you take an antibiotic, its not that you are going to become immuned to the antibiotic, owe site becomes immuned. There are people who think its the opposite. The science getting thrown around lately. Tesla posted he needs a kleenex. I was coughing last night still. This is five, six weeks. Rough night. Tesla posted earnings of 12 cents a share, beating the street by 2 cents as you heard andrew say at the top of the show. The stock was down 12 points, plummeting after hours. With us to break down the numbers is colin rush, Senior Analyst at northland capital markets. Do you have at your finger tips what this is trading at in terms of next year on some metric . What is the stock valued at now, colin. Youre looking at a big multiple for next year. Its Something Like 80 times. I dont think thats the story. This is a longterm story. Investors are not lo looking next years numbers. The auto mark set pretty tough to be a survivor and be able tyou saw what happened o the chryslers in the 80s. You saw what happened to all of them recently. It takes a lot of capital to run a car company. You think that this is an electric, we should discount this, there will be no bumps in the road at all. If you look at how much money these guys are have spent to jen rat a profit, making a dent, youre looking at less than a couple billion. They bought a 2 billion facility for about 60 million. They ran manufacture 20,000 vehicles a year. A company that has 25 Gross Margins going higher into the 20s and has optionality in terms of what they can do. No argument on any of the points they just made. The company has half the capital generalization of general motors. That seems like quite a stretch. Theyre changing the technology thats been in the transportation market over the last 100 years. To see these guys to be able to come in at the cost numbers they can come in at, and still be generating cash on the p l, is impressive. I think thats why theyre getting credit from a value standpoint. Lets say there was not 2008, 2009, lets go through a run of the mill recession at some point in the next five years. Theyre ready for that . I think this Management Team will see it relatively early. At this point, you know theyre going to see it relatively early . Why would they see it relatively early . Theyve been able to decline out very, very well in terms of the demand profile. Theyll see a level of decreased demand before. Theyre still going to be spending capex like crazy. A lot of money going to be spent ramping up. My question to you guys is why are you poopooing the effectiveness of this capital Management Team . Its not a question against management. Its in the a question against anything theyve done. I give them kudos on all those counts. In the 60 minutes piece, elan, without that rocket launch that happened to work after four or five failures, there wouldnt be a tesla now, i dont think. It was that close, right . Apparently. All right. Well, i dont think thats particularly relevant to the stock at this point. You know, the capital that theyve deployed and the way this company is executing in terms of their product development, the sales theyve been able to generate, the buzz theyve been able to generate, the brand, i think were in a good position with this company. And wa were looki and what were looking at is whether they can execute on the promises they made the street. Well be watching. We want to stay we need to ask questions like that. We dont want to go through 1999 again where people are embracing it and no one asks any questions. Well have Jonathan Bush on to talk about the bubble basket. The notion that theres a lot of stock what are they trading at . Triple digits. Well talk about that. Actually this next guest can talk about some of this, too. Member of cnbcs disrupter 50, getting another big backer. Yahoo s Marissa Meyer is getting involved. As we head to a break, check out the earnings calendar. Were expecting results from priceline. Com, Liberty Media and amc networks and many, many more. Squawk box returns right after this. Passenger road trip buddy. Lets put some music on. Woman welcome to learning spanish in the car. Passenger youve got to be kidding me. Driver this is good. Woman vamanos. Driver passenger vamanos. Woman gracias. Driver passenger gracias. Passenger trece horas en el carro sin parar y no traes musica. Driver mira entra y comprame unas papitas. Vo get up to 795 miles per tank in the tdi clean diesel. The volkswagen passat. Recipient of the j. D. Power appeal award, two years in a row. We have a disrupters story this morning and our executive edge. Its called wealth front. Theyre an automated Investment Firm in disrupting the traditional financial Industry Services industry. Its got bigname backers including venture capitalist, mark andreasen, ben horowitz and marissa mayer. Here is the president and ceo of wealth front, adam nash. Great to be here. For those who dont know what this is, give us a 30second zplangs of h explanation of how wealth front works. Its quite simple. Were the largest and Fastest Growing automated investment service. We provide an Index Fund Portfolio without the high minimums or fees of the traditional provider. If i called Charles Schwab and fidelity, what is different what you do as oppose todays what they do. We do 11 different Asset Classes. They wont automatically monitor and maintain that portfolio every day. We do rebalancing, intelligent dividend reininvestment and tax loss harvesting on a continuing basis. If i tell you 20 bonds, 80 stocks, as that moves youll continue to move that money around. You take a questionnaire with judge your risk tolerance. We give you an asset allocation. Different Asset Classes make sense in different accounts. Muni bonds might week sense in a taxable account. Reits in an ira. We use every opportunity to efficiently rebalance it. If your reit fund pays a dividend on april 7th, but your emerging markets is down, that dividend will be invested in the emerging markets. You do that on a dahly basis. Vanguard put this out in 2005. Its called trigger day rebalancing. We look statistically at the portfolio and when its mathematically more out of balance than it should be, thats when we rebalance it. Do you get charged a fee for every time you sell . No commissions. Because were in software, were completely free under 10,000. We never charge commissions for trades. Above 10,000 we only charge 0. 25 . For each trade or no. Or just on the whole . Assets under management on an annual basis. Is there somebody i can call . No, no, im suhrious. Is there a phone number i can call or do i do everything online. No, no, we have a phone number on the home page. You can call. But nobody does. Most of our clients are under 35. 60 . 90 are under 50. You only want a phone number if youre old. More importantly its 0. 25 on a quarterly basis. Annual. Annual basis. Its onefifth the cost of a traditional service. The minimums for traditional wealth manager is very high for a normal person. We like most of our clients are young, theyre getting started. Were excited about them. Theyre at the beginning of their income and wealth accumulation. What are you putting them into . All etfs. We look at etfs in 11 different Asset Classes. We find the ones that have the lowest drift, the best execution statistics and pick those for each asset class. Actually two, so we can take advantage of tax loss harvesting when its available. If i would compare your service to the traditional services, what kind of gains than i pick up off of the fees im hopefully saving with you. Theres been a lot of research on it. Individual investors normally do terribly in the market. They underperform, 3 , 4 . A lot of that is fees. 1 to 1. 5 is the norm. If youre paying onequarter of 1 youre paying 80 of the fees youd normally pay. This is a more cosmic question. You talk about people being under 35 who dont want to pick up the phone. There was a whole world of day traders, a whole world of people that would call their broker. Is that over . We talk about where the Retail Investor is and what their interests are. To the extent your service represents sort of a new way of thinking about that. What is it . I think youre right. There is a generational shift. Gen y millennials have been through two market crashes. Ironically, thats put them in a position where they actually believe theyre not going to make their fortune beating the market. Right . There are still 10 to 15 of people who want to get in there and trade. The other 80 if theyre a doctor, they want to be a doctor. If theyre a lawyer, they want to be a lawyer. Engineer, engineer. Have you given up on the idea that we could have a 10, 15, 20year bull run . They dont think they can beat the market. We can have a bull run. Warren buffetts point is put it in a Vanguard Index fund. I like to think that warren hasnt checked out our site yet, otherwise hed probably be positive on what were doing. Young people are passionate about what theyre doing. Theres 90 million members of the millennium generation. A third of them arent out of college yet. The oldest edge of that, in their 30s, they like it automated, they like software, they want it cheap and they dont buy the pitch of beating the market. Theyre happy with an inexpensive, passive solution. We have to run. I refresh you have the software, is your software, nobody can replicate it . Id like to think we have some of the best software folks in silicon valley. The truth is, they are focused on the baby boomers retiring. Charles schwab manages 2. 3 trillion. Theyre looking for the next trillion dollars. Gen y has about a trillion. Baby boomers want to talk to someone about how theyll retire, when they take it, et cetera. The music is playing. When do we have a hard break . We missed it 45 seconds ago. Coming up, janet yellen and what it means for the summer. I want to talk about the olympic story. Im blown away by the olympic story. Im going to talk about it. And the mayor of cincinnati, i think this is my friends nephew. Im not sure. John crayon nley. I know all the cranleys. Cincinnati wkrp true businessgrade internet comes with secure wifi for your business. It also comes with public wifi for your customers. Not so with internet from the phone company. I would email the phone company to inquire as to why they have shortchanged these customers. But that would require wifi. Switch to comcast Business Internet and get two Wifi Networks included. Comcast business built for business. man speaking jananese tigers, both of you. Tigers . Dont be modest. I see how youve been investing. Setting long term goals. Diversifying. Dip you got our attention. We did . Of course. Youre type e well, i have been researching retirement strategies. Well thats what type e s do. Welcome home. Taking control of your retirement . E trade gives you the tools and resources to get it right. Are you type e . Oh, no, no, no. Oh, my word. Good morning and welcome back to squawk box here on cnbc. Im joe kernen along with becky quick and andrew ross sorkin. And the headlines this morning, two Interest Rate decisions and policy statements coming from overseas this more than. The bank of england will issue its latest decision at 7 00 a. M. , followed by the European Central bank 45 minutes later. Ecb president mario draghi will hold a postmeeting conference. Astrazeneca, investors are speculating that they may raise their bid to 113 millibillion 106 billion. Well see whether astrazeneca suddenly becomes enamored of the whole process. Ian read will speak to two parliamentary committees in london about the companys bid for astrazeneca. The olympics are staying on the nbc through 2032 in a record 7. 75 billion deal. Its a stunning preemptive deal negotiated over six months. The ioc awarded the broadcast rights to nbc for an additional six games. Nbc had three. All right hold the rights through 2020 in a fourgames deal signed in 2011. Huge. That was a record, 4. 38 billion. Nbc has done all the olympics since 2000 and the summer since 1998. I wondered at the time, wow, i wonder how much they had to pay up. This is when it was announced, the first deal, it sounded like a lot. But nbc sports, the way nbc sports does the olympics, theyre so good, i think the ioc was thinking about a couple things. Its a great relationship. It wasnt put to auction. They know theyre going to get incredible production and production value. By far the best. They worry about the future like everyone else, geopolitical tensions and all kinds of things. This is not inflation adjusted. Its basically the same price. By the time it rolls around it could be a 50 discount. Its such an incredible deal for nbc. Think about this. Now it will be an ad. Think about the platform issue. What other network could do that . I know. Who else has all these channels . They could have got more money. Abc can do that. It makes sense for nbc. Sports is the thing people turn on. Youd do the same thing for the New York Times and you dont feel embarrassed when you talk about how great that thing is. Anyway, this is the only thing, ive said this, the only thing that worries me and the ioc is, by 2030 it may be all summer olympics. Unfortunately. There may not be any more Winter Olympics at that point. Im just saying. After yesterday it may not be the same locations you used to have. No, no. I thought you were going to tell me the summer olympics it will be boiling water and thousandfoot tidal waves. Well all have masks on because co2 could be 0. 042 of the atmosphere. On that note, lets talk more about stocks ending a mixed day on wall street yesterday. Both the dow and the s p had their best day in three weeks but the nasdaq did see some give back, having its worst day in three weeks. Join us now, louis lower than expected, chief analyst at nomura securities. Gentlemen, welcome to both of you. Its great to see you. Serot, lets talk about the Market Reaction yesterday. It was strange to see the dow and the s p pick up so sharply but there are serious concerns about whats happening on the nasdaq. The market is definitely sending cautionary signals. We think theres a lot of income substitution going on, the tenyear, 2. 6 is scary. Geopolitical risk as joe just mentioned, as far as europe slowing down china, i think you have to take it slow. We feel the next couple months youll see a little bit more of a correction. Even trading below that, the yield was below 2. 6 . Is this concern about the economy, is this concern about jaeio political issues . The geopolitics played a little bit into this. I think what happened coming out of last year, people were very, very short. I think the slowdown in the economy in the quarter caught people a bit off guard. Youve seen them having to reverse. You saw that on friday when you got a good jobs report, rates went up for a while but ultim e ultimately came back down. You are seeing people get out. You saw that reaction yesterday. I think they interpreted yellens comments as suggesting it wasnt going to happen quite as quickly. Cynical people say the reason the tenyear is where it is is because the fed controls where Interest Rates are. As long as we stay at zeier he, theres still at 45 billion a month. Its as simple as that. Some people are saying that. Any truth to that . Look, we had a 100basis point adjustment when the fed indicated they were going to stop tapering. Were in the middle of that adjustment. I think its our expectation youll get decent growth in the second half of the year. By the end of the year well be talking about rising inflation. When is the fed going to hike . At that point, rates will be at 3 or above. I think were transitioning out of that world. No question the fed is very important right now. Yes. I guess yesterday with what yellen was saying, sarat, what did you take . Its a showme story. Housing is slowing. People have been waiting for earnings to show up. Weve been giving the market the benefit of the doubt. How are we getting 4 if housing is slowing. Thats the question. I dont know if im a new normal guy, doesnt that sound like a huge leap of faith saying were going to get to 4 . I think it is. I think the market is telling you they dont believe it. Youll see more of the stocks that are stable going to be sold off until you see some type of catalyst, maybe its the oil prices come down, employment starts improving. We think. At the end of the year youll see better growth but it will be companies that will have to show theyre actually doing it as opposed to saying, hey, the market as a whole is going up. Where do you think we are gdp at the end of the year . I think gdp will be 2 to 3 . I dont think the 4 is really there. There are no indications if you see whats going on externally that well get there, just because people say were going to get there. I would say 3 . Maybe you get higher with inflation and growth. What do you think the catalyst is . What do you think that spurs us to this bigger growth . Look, i think the fiscal drag is waning. Thats a very important story that i think continues to be underestimated. If you look at, say, for example, q4 and q1, the drag from federal spending was very large. If you look at what we expect for the second half of the year, thats going to go away. Household Balance Sheets are improving. A lot of the head winds are diminishing. I dont think were going to get to 4 . My forecast for the second half is in the low 3s. I think gaps are closing, that w will push inflation up and force the feds hand. Lou and sarat, thank you both for coming in. We have a huge lineup, robert wolf, harvards economic adviser, Martin Feldstein will be here and Athena Health ceo Jonathan Bush will respond to David Einhorns short call on that stock. Keep it right here, squawk box coming back with that and a lot more. I have low testosterone. There, i said it. 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. We discussed all the symptoms. Then he gave me some blood tests. Showed it was low t. Thats it. It was a number not just me. [ male announcer ] today, men with low t have androgel 1. 62 testosterone gel. The 1 prescribed topical testosterone replacement therapy, increases testosterone when used daily. Women and children should avoid contact with application sites. 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Change your number. Turn it up. Androgel 1. 62 . Welcome back. Time for the squawk planner, earnings central. Were expecting Quarterly Results from price line at 7 00 a. M. Eastern time, the weekly jobless claims report coming at 8 30 a. M. Eastern time and fed chair janet yellen will be appearing, again, this time before the Senate Budget committee, starting at 9 30 eastern time. That, everyone, is your squawk planner. Back to you, sir. Coming up, a guy i went to school with, his brothers son is the mayor of cincinnati. Im so old. Anyway, coming up, a city on a mission to jump start Economic Growth. President and ceo of ready cincinnati and the mayor of the city, democrat, but democrats in cincinnati arent quite as bad. John cranley will be our special guest, next on squawk box. 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. On car insurance. Everybody knows that. Well, did you know that game show hosts should only host game shows . Samantha, do you take kevin as your lawfully wedded husband. Or would you rather have a new caaaaaar say hello to the seasons hottest convertible. Ohhh. And say goodbye to samantha. [ male announcer ] geico. 15 minutes could save you 15 or more. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Last month, the city of cincinnati unveiled ready cincinnati, a Regional Economic Development Initiative created to spur growth in the Greater Cincinnati region. Here to tell us more about the initiative is president and ceo of ready cincinnati and the mayor of the city, john cranley who i went to grade school and high school with your uncle bobby. And your dad was ten years older than my friend. Yes, much older than you. Exactly. Much older. Bob was the late child that came many years later. Almost a mistake, i think. Im just saying. Anyway, thank you for joining us. My pleasure. Cincinnati is a great place for business. It sure is. Its open for business. P g, people dont know p a fifth third, macys all headquartered in cincinnati. Were a best kept secret. You had quite an irs office too, didnt you . We absolutely did. Thats a nervous laugh. All the cranleys i know are republicans. Youre the black sheep. Theres no question i got a lot of bipartisan support. Youre not like the czar of cincinnati . Yeah. We have a very bipartisan coalition. We have been tackling the tough issues of pension reform and things of that nature. But the main reason were here is because were in the beginning of a huge wave of renaissance. I dont know if youve been back recently. Over rhine is bohemian heaven. From downtown during the recession, the Business Community and the Public Sector invested over 2. 5 billion to the revitalize our downtown and over the rhine. When no one else could get construction going, we doubled down. We have this vibrancy that is like nothing else in the country. National geographic did 36 hours in cincinnati. G. E. Just announced another 1,400 jobs. They are bringing a new high rise. A whole other portion of their business is coming to cincinnati. 5. 8 unemployment. Doubling down and putting more money during the recession was tough to do when city taxes had to be down. Thats not a call a lot of municipalities were allowed to make. Thats right. That wasnt all the government money. Western southern, they had a private transaction. They were building when other cities couldnt because of the depth of our corporate base, which is so incredible on a per capita basis. Its livable. When you go to a game, you drive into your parking space. Theres no like we like to say its the most convenient big city in america. Because you have everything you want within reach. You can go to a game at night. Go across to the river on a floating restaurant on a mark twain type steamboat. The cost of living, 15 lower than average. And the cost of doing business, number two. According to kpmg. They just named us the second most costeffective place to do business in the united states. Its a great place to open your business. Whether youre a fortune 500 or startup company. Joe, as we mentioned with with this downtown renaissance, we put a lot of time and effort into our startup company. The entrepreneurs are help to go fulfill the creativity. You have had some of the ribs, havent you . I have. The montgomery inn. Like if you ever drink a little at night, skyline. Skyline too. Fly direct in and out of the city. Yes. Not always easy. What do you mean . You cant always get a direct flight. Its into kentucky. You can whenever you need one. Actually, cincinnati is within a 90minute flight of 50 of the countrys population. So we have a lot of direct flights here to new york. Ill help you get there any time you need to. We are working on getting more flights at the airport. I thought deltas express flights. Delta still has a minor hub at delta. Were bringing in more flights. But the bigger issue is because one of the things people dont know about cincinnati is we have 60,000 consumer Marketing Professionals because p and g, macy, krogers are the largest advertising in the world. We have this fuel of innovation. If you have a creative branding problem, we have a solution for you with those 60,000. Its in cincinnati. I love dusty, but he had to go. So painful. Lost seven straight. He moved the team in the right direction. Now we have to move to the next level. I like the new guy. And billy, his finger is hurt, right . This guy, andrew, and becky, sports. Actually, becky, he is a Center Fielder that will set the stolen base record. He has to be able to hit. We have a lot of injuries. Bruce is out. Of course chapman got hit in the face. Once we get healthy i think this team will take the off. Remember, joe, were going to be hosting the allstar game. We will be able to put i saw the allstar game. Fossy got run over. Suddenly all these things that happened. I was actually at that one. It was at river front. 1970. And i used to go to crosley with my dad. Andy dalton, i dont know who he is. Great guy. But who shows up any given game. Did you see the game against, what was it, the jets, it was like 400. He can be hot and cold. Over time he will be more hot than cold. Bear cuts and musketeers. Were hitting lots of good playoffs. Its the place to be. Anything else you need to say in closing . Because i was really going wild on cincinnati. I was going to say you handled it for us. Im willing to hire you if this gig doesnt work out, joe. Come on back. The ability for a business person to bring a Product Market and get a buyer through p and g, macys is unprecedented. You will have access tow highest level. Mayor, if this doesnt work out for you, you can do one of the talk shows like Jerry Springer did. Ill do a talk show like you. Honestly, the offseason isnt really off for me. Ive got a lot to do. Thats why i got my surface. Its great for watching game film and drawing up plays. Its got onenote, so i can stay on top of my todo list, which has been absolutely absurd since the big game. With skype, its just really easy to stay in touch with the kids i work with. Alright, russell you are good to go alright, fellas. Alright, russ. Back to work alright, that should just about do it. Excuse me, what are you doing . Uh, well we are fine tuning these small cells that improve coverage, capacity and quality of the network. It means youll be able t post from the breakroom. Great did it hurt . When you fell from heaven awkward laugh . A little. laughs im sorry, i have to go. At t is building you a better network. What is this place . Where are we . This is where we bring together reliably fast internet and the best in entertainment. We call it the x1 entertainment operating system. It looks like the future we must have encountered a temporal vortex. Further analytics are necessary. Beam us up. Thats my phone. Hey. [ female announcer ] the x1 entertainment operating system. Only from xfinity. Tv and internet together like never before. Janet yellen easing market concerns. Those broad metrics dont suggest that we are in obviously bubble territory. Squawk market master Martin Feldstein. Mark mayfaber on the next mat turn. And firing back at david eye horns bet against his company as the second hour of squawk box begins right now. Good morning, effect. Welcome back to squawk box on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. Bank of england unchanged with the rates. Robert will be with us for the morning. Marty feldstein, cbre robert selentek. And Jonathan Bush will be responding to david eye horns shore call on the stock. And chairman jason furmouth. The dow and the s p up. 117 points. The nasdaq was lower 13 points. Dow up 18 points. The yield is below 2. 6 . Its been driving other markets all through the week. Janet yellen back on capitol hill this morning after testifying before the joint Economic Committee yesterday. Shell be making a return appearance this time before the Senate Budget committee. Shares of barclays gaining ground. Restructuring will cut 19,000 over three years and create a bad bank. So they are laying off people. Stock is up 5. 8 this morning. We have been through that. It became the first automaker to sell 10 million vehicles in a single year. Yes, thats right. Selling 35,000 a year. Toyota forecasting 2 drop. Tell but a couple other things as well. Tesla reporting First Quarter reports after the bell. It earned 12 cents a share, two ahead of estimates. Revenue beat expectations. A little bit of bad news. The outlook did disappoint some investors. Alibaba filed for what could be one of the biggest ipos in history. Now striking a deal with shop runner. It has partners, including Neiman Marcus and nine west. This could move a lot of business over there. It would offer a new way for u. S. Retailers to top the second largest economy and bring more authentic American Products to china. Is that for real, those margi margins . Tell me the revenue number and how much they make. Its 45a 45 margin. Its like ebay. All they are doing is taking the commission off the product. They dont do any distribution themselves. Its not an auction house. Its a storefront. If thats the case, what is their competitive mode . Their competitive mode is hundreds of millions who show up to this one site. Thats the one thing about alibaba, its a series of sights. For the valuation in the ire country, 200 billion. They are only putting out oh, i think it could be 20 billion. One of the biggest ever. The one point made yesterday or the day before, if you compare it to amazon, then the valuation should be sky high given the margins they have on amazon. I think jim cramer spoke to it too. They view it lower. It is 22 . Why is yahoo . They say yahoo is the rest of its assets or negative. Thats the business. Federal reserve chair janet yellen gave an beat assessment of the economy. She talked about how the economy is impacting in equality in the wealth gap. The people who are affected by unemployment are disproportionately people at the lower income end of the spectrum. So a weak economy contributes something to income in equality. And i think what the fed can do is to promote a stronger economy, a stronger job market generally. And that will help. But the trends that are responsible for rising in equality go much deeper. She had extraordinary accommodation is still necessary. If theres one person out of work the fed thinks it is their job to get a job. Joining us the next two hours to talk about the private tech sore view and robert wolf of 32 advisers. And former ubs americas chairman. In large part responsible for the income disparate with his other fat cat banker ceos that were overpaid at the time. Welcome. Good to be here. Youre the president s banker. He called you guys fat cats. You said i dont care, ive been called a lot worse. Ive been called a lot worse. You were a big Football Player at penn. Only in size. No. 32. You were a running back. The most famous person to ever have 32. Jimmy brown. Thats a famous number to have. When we grew up you could only buy a few stars. I was 32. Jimmy brown. And you love penn. What were trying to figure out here, yellen and the fed is extraordinarily accomodative. Its bernanke 2. 0. We should not be surprised. Does a strong fundamental economy is it strong if it needs this much fed help . We do not have a strong fundamental economy. We have an economy thats moving slowly in and around 2 plus percent. 2, 2. 5. It keeps us out of recession. But its slow moving. Most of the people think the fed will stay accomodative beyond 2015. Beyond the predictions to make, do you consult with austin . Hes your main guy at 32 advisers. Our company is cross board advisory. We will talk about trade finance. We will talk today about our new finance coming up. We are chugging along. It sounded like you were channeling him. He feels china, you know parts of the story, as you just mentioned, andrew. Do you still talk to the president . Yes. Do you get the feeling any other than wedge issues for 2014 . Will he try to do anything else to fundamentally address our growth problem. Infrastructure is something he has touted all along. The whole idea sounds great. But we are counting on the receipts for tax and revenue. Unless we would therefore increase the deficit. I agree it would be great to repatriot. What do you make of this pfizer astrazeneca deal and what that represents, both in terms of what the Corporate Tax rate is. More important, given all the money thats stuck that cant be repatriated or whatever else you wanted to go to . In theres a bunch of different things. We absolutely need Corporate Tax reform. The president said he would be manufacturing at 25 . And he would put the rest at 28 . Listen, idealistically lets just put it at 20 and have an up and down vote on every loophole. You cant pass it. You cannot pass that deal. It has to be revenue neutral. Otherwise, everyone would argue the deficit is going up. If its revenue neutral the are they at a disadvantage in terms of the rest of the world . Yes. If theyre paying less, you cant insist it is revenue neutral. Most of the fortune you know why. This is the reason they arent is because they moved a lot of operations. The blended rate the blended rate includes the international. It still would be lower. Just to be clear, you didnt ask me if im for tax reform. Im for territorial tax. Why wont be the president take it as a loss to go revenue neutral. He wants to raise revenues. Absolutely false. If you reduce by near 10 . You would have to close the loopholes. What are you going to do . Close r d, depreciation, mortgage . You will have a lobbyist outside the door on each loophole you try to close. Wouldnt it be a ferrer situation to get to us a much more simple tax code where you dont i feel bad for small businesses. We dont have legions of accountants. There is no question if youre a domesticonly company you are paying the highest level. Right. Why do i care if a lobbyist is outside my door . Hes pointing the finger telling him to go away. You cannot change it with a pen. It has to go through congress. They have not been able to go through congress. Listen, Everyone Wants to do it. You speak to the left. You speak to the right. You speak to the center. Everyone wants Corporate Tax reform. Its a question what you can give up to get there. Much more with robert wolf throughout the program. When we come back, should markets expect a growth rebound. We have squawk market master marty feld stks stein. Welcome back, everybody. More on the economy from our very own squawk market masters. Economics professor at harvard. Former chairman on economic advisers under ronald reagan. I think this year were going to be closer to 3 than 2 . That comes after several years when i have been saying to you all that were going to be lucky to get to 2 . She is worried, though, about what happens in the housing market. Shes concerned about weekends there. Housing is down. New home sales down. Existing home sales weak. But sit not going to drag the economy back into a recession. The market is concerned about where things are headed. It was yesterdaying less than 2 . Why is that if its closer to 3 growth by the end of the year . The bond market has come to accept the tapering but it is counting on janet yellen to keep very short rates close to zero. Nice to see you. Nice to see you as well. Its been a few years. It seems you may be concerned about inflation that no economists talk about. Is that because see Consumer Spending coming back quickly . Thats the essence of that . Well, Consumer Spending is coming back. The Unemployment Rate among those who are out for less than six months is down to 4 . When the shortterm unemployment gets low thats where the real pressure is in in the employment market. What i said in the wall street journal piece is the fed had not become clear that if inflation begins to rise 2 , 2. 5 , even though 24er they are slack in the labor market, they would be willing to raise Interest Rates. But you dont see wage pressure to cause any sudden shift . In the 1960s, we had the less than one and a half percent. Then 5. 5 and we were off to the races. If inflation begins to pick up 2, 2. 5 , they will be raising rates. Do you think the market is correctly interpreting janet yellen . If you think the economy is improving and if this fed is data dependent, could it change its mind about when rates need to rise . Well, it could. I think it will keep its eye on that. I had questions at the new York Economics Club a couple of weeks ago. Right. And i asked her explicitly what the fed would do if inflation rate was about 2 and rising. She gave what i thought was just the right answer. They were symmetric. They dont like it below 2 but they wont take it above 2 . They would raise Interest Rates if there was slack in the economy. The solid jobs number the last time the household data just awful. Awful in two senses. Awful in we hope its not true. And awful because i dont know how to reconcile those numbers with what we saw in the establishment. Baby boomers retiring . If you are not working, marty, what does the job need to pay for you to decide to give up all the disincentives . I hear 45,000, 50,000. You have to buy clothes. You have to get day care. You have to have a car, pay for gas, shave, get out of bed. What do you need to make to leave the ranks of the unemployed . Most of the people who are working make less than that. Most who are unemployed would be happy to get a job paying a lot less than that. The household numbers that came from the number of people in the household were surveyed were down last month. I dont think we should put too much on these numbers. I want to ask you. We havent touched on the name. We slather ourselves in this . The left wing i want to know your views on mr. Pickitys book. Have you read it . I have been reading it. Im writing about it. You want to wait a little while and youll read my view. Thats such a tease. Give us a hint. Its not convincing. In 100 years, how long will it be proposed that socialism is the answer to the way to grow. Hes not talking about socialism. His policy proposals are confisconfisk confis confiskatory. Theres two issues. The data that represents the in equality hes talking about and the prescriptions which i think are probably more controversial. Both are controversial in my judgment. Took us five years of doing nothing else to raise marginal rates 3 on people that make over 450,000. Youre going to 80 . Thats why i was saying, the prescription i want you to be 80 . Will you come back and talk to us after you finish reading it . After you saw that wall street journal piece, call back and have me back. Thank you. Thank you, marty. David eye horn announcing earlier this week he is betting against athenahealth. He is responding to eye horns call here on squawk box. Join us at 8 00 a. M. Squawk box returns in just a moment. She keeps you on your toes. You wouldnt have it any other way. But your erectile dysfunction it could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. 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. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. 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Lets take a look at some earnings reports. Priceline drew quarterly profit of 7. 87 a share. The travel website operator saw growth in established and newer markets. I was just hanging out on kayak a few minutes ago. Wendys earning 7 cents, 2 cents above estimates. Wendys benefited from a menu revamp. Real estate website operator zillow reported surprise profit of 2 cents per share. Analysts had been forecasting a loss. It was aided in the increase of aid users. They also own street easy for those folks hanging out in manhattan trying to figure out what everybody elses house is worth. Not that i do. Here now is the ceo and president of cbre group. Largeest Investment Fund by revenue. Everything seems awful. You said we were going into a sweet spot for commercial real estate. What gives . For a couple reasons. A lot of capital is flowing into real estate. The last 5 years, 10 years, real estate has done better than equities. Thats a positive thing. Not a lot of new stock being brought o. Historically low level. Pretty good time for commercial real estate. How much is an aberration, so much being driven by tech. Tech accounted for 15 of the commercial leasing last year. So it was the top driver but it wasnt the only thing. Energy was certainly a driver for commercial real estate. You saw companies that are involved in manufacturing in the upper midwest doing leasing. Tech certainly a big piece of it. During the resession i remember hearing about a lot of commercial real estate where people were locking up leases for seven, eight years. Are they starting to come off at this point . How much is locked up in things like that. Well, the average rate for commercial lease is probably six years. What was going on, becky, back then, you heard about blend and extend. Rates were low. They could go into their landlord who wanted certainty, extend their term. But theres always a constant flow of leases coming off. Bob, good to see you. Good to see you, robert. There has been an incredible number of new real estate. Is it supply and demand or will new construction opinion coming in. Historically low level of real estate, particularly added office space. A fifth of what it was at the peak of 2008. You will see new supply but not a dramatic amount of new supply. In the next couple of years it will stay down. Its actually down to the levels it was at after the bust in the early 90s. It is historically low levels. This is why they are interested. When you think about both coasts. Tphrbg, for example, hudson yards is going up. Who is the loser in all of that . If youre in the valley, some of the leasing will go empty . I think look at it this way. You see particularly good leasing where the young tech workers want to go many silicon valley, san francisco, places like pittsburgh, like salt lake city. Where theres a good Critical Mass of tech. New york city, the competition between the hudson yards and 1 world trade, who is going to win that battle . Or do you think everybody can win . We have been involved in leasing. So i think both will be winners. Right now the strongest market new york is midtown south, the lowest vacancy, about 6 . Where are you guys based . Midtown. Would you ever move to hudson yards . With with a small start up, the answer is yes. It would be based on the infrastructure. We would have to make sure we had the right subways and trains. You will have that. I know you will. Of course. One of my questions is you talked about investors coming into this commercial real estate market. Investors want hard assets. They were all future currency and the approach that people have been buying real estate all around. The question is, are these new investors youre seeing at the table that you havent seen before . Were seeing a lot of money coming in from asia. China in particular. They want hard assets but they want cash flow. They want underlying strong credit. If you come into new york, you buy the kind of leases going into the big office buildings. You have credit, flow, hard assets. There was five times the capital for domestic u. S. Office buildings as there was a the year before. Clearly a move in the direction. Coming up, marc faber on emerging markets. Ukraine. And david eye horn on athenahealth. And Jonathan Bush will respond to david eye horns call. White chocolate loversividual. Dont like dark chocolate. Milk chocolate lovers dont necessarily like dark or white. Before we couldnt really allow the consumer to customize their preferred chocolate. We needed the scalable Cloud Solution allowing them to see all 800 products and select what they are looking for. Now there is endless opportunity to indulge. Can you start tomorrow . 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. Woman welcome to learning. Spanish in the car. C on. Passenger youve got to be kidding me. Driver this is good. Woman vamanos. Driver passenger vamanos. Woman gracias. Driver passenger gracias. Passenger trece horas en el carro sin parar y no traes musica. Driver mira entra y comprame unas papitas. Vo get up to 795 miles per tank in the tdi clean diesel. The volkswagen passat. Recipient of the j. D. Power appeal award, two years in a row. I see that cause is mostly reflecting transitory factors, including the effects of the unusually cold and snowy winter weather. With the harsh winter behind us, many recent indicators suggest that a rebound in spending and production is already under way, putting the overall economy on track for solid growth in the Current Quarter. Fed chair janet yellen. Markets will be listening. Thats probably the people that will be making up the markets. Minutes away from ecb great decision. Lets gauge the heating of the global economy. Joining us from vietnam is marc faber, editor and publisher of the gloom, boom and doom report. I want to talk about something positive for quite a while. Most people think the 20082009 was the event. In earthquake terminology, theres fore shocks and aftershocks. You think there is a decent chance it might have been a foreshock and is predicting something even more devastating as in the future. Have i got that right . Yes, you got that exactly right. Basically the crisis occurred because of excessive credit growth and credit of a percent of the economy in 2007. Now a percentage of the advanced economy is 30 higher than it was in 2007. And the Interest Rates are zero. So i dont think the economy is recovering at all. We have an emerging economy. I have been writing about this two years. We have geopolitical problems in ukraine and in the east chino sea. Mark, for some reason we have the impression that everyone has delevered. I know a lot of private debt became uhoh. Are you okay . Yes, im fine. We think the Printing Presses can handle that. You say 30 were levered 30 more than we were during the financial crisis . Total credit including government, corporate, consumer debt. When youre in a period like this, no one can know whats going to happen. They have thrown everything we have got trying to minimize it this time around. If everything doesnt go according to plan here around, theyve got nothing left. Thats what scares me. Actually, they have something left. That is to throw even more money down the drain. What it does is leads to price increases. Nobody can deny anywhere in the world that Energy Prices are substantially higher than they were 10 years ago. Nobody can deny that food prices are up. At some point will will lead to pressure more srebl pressure. We already have the pressure but theyre not so available because the statistics are distorted by the ministry of truth. But once this come can out, the policy will be perceived as a failure. Its interesting. Since the beginning of the year, the stock market has basically done nothing. It is down 4 . Nasdaq, 3 . But long term bonds up 12 in terms of total return. Now i believe the next test will be stocks and bonds will go down at the same time. You just mentioned the treasury rally. You would think of us being in the middle of a bubble, there will be quality and therefore you would see a continuing rally. You just mentioned youre nervous about bonds as well. Where do investors put their money when you get negative in cash. I wish cnbc would advise me about this. In the emerging markets theyre relatively inexpensive. Theyre not absolutely cheap. Bonds are expensive. If you buy a 10year treasury note in the u. S. , the maximum is 10 years. If you hold it, its 2. 6 . Its not very desirable. Just very quickly i want to tell everybody breaking news. We are hearing from the ecb. It is leaving rates unchanged just like the bank of england did earlier. Im sorry, sir. Go ahead. Hello . Yeah. Do you want to finish your thought marc . Real estate is relatively expensive. But i live in asia. I dont see real estate has being very, very inexpensive because it has going up the last couple of years. I dont see it going as very attractive. The most underappreciated asset is cash. Nobody likes cash. Cash for the next 10 years you earn precisely zero. Ms. Yellen is a money printer like all the others. And she will make sure that the dollar continues to depreciate in real terms. For the next six months is the most attractive. I dont want to be in cash. I dont want to be in cash either. Im saying for the next six months opportunities will come along for a long time. Just as many people that have been predicting bond markets to collapse and rates to go up, the same people have been predict thing all this money printing would lead to inflation. You mentioned commodity things that are up, insurance premiums. No wage growth. And an economy isnt gang busters. When do you expect the first inkling that it will be really nasty. Its just no one can see that right now. Can it happen overnight . Inflation is an increase and money on credit. You can print mope in the u. S. We have a globalized economy. It can produce prime real estate in london, new york. Saying there is no inflation is an error. I dont understand your comments about leverage. Banks have delevered. Housing markets delevered. For the most part we have seen it come out dramatically. Theres a lot of cash on hand. Where are you seeing that leverage . In debt. Yesterday, since you are an anchor, by how much did this Consumer Credit grow . It was announced yesterday. 60 billion. Yeah. Okay. I dont ignore you, marc faber. Has it gone down or up . Anybody that does, does so at their own pertil. We have had the financial break of our life. Thats already happened. Another is not due. Even geithner says there will be another one. We will have to talk at christmas. One every eight years or so . Well, anyway, the other thing i would like to leave as a comment is since the beginning of the year all i hear is the very bullish comments and very bearish comments. And everybody is an expert. And everybody is glued on what ms. Yellen is saying and not saying. The fact is the stock market has done nothing. And the momentum stocks owned by the retail clients and some hedge funds are down between 20 and 50 . Whether its yelp, amazon or netflix or tesla. Whatever you look at, they are down substantially. All right. Meanwhile, youre calling us from like leonardo the dicaprios beach. How far is the ocean where where you are, marc . 30 meters. You are a dog. I knew that. Its not raining. Is it sunny . It was sunny during the day. Im actually on what i call a very attractive area. I am in Central Vietnam on the east side facing china where they have now trouble. The stock market suddenly went down 6 today. Its called china beach. Stkpwhrf i know exactly where he is. Hes probably sit anything a pool right now. Im not at the pool. Im in my office. But youre not alone. I know that. Just kidding. Hes got a pool in his office. Marc faber cnbc is most welcome to come and stay at my villa for free. For free. We could never do that. Anyway, thank you. We appreciate your time today. And well check back with you. Like i say, ignore marc faber at your own risk. Is this you . We have fannie numbers. Fannie mae talking about how it lost 6 cents a share for the quarter. The company says it had positive net worth of 8. 1 billion. It does see 2014 net substantially lower than 2013. Part of that because it expects mortgage originations to drop by 40 from 2013. That matches up with bank of america and other companies. When we come back, david eihorn slamming athenahealth. Call it a bubble stock. Jonathan bush will be here to defend his company against that call. He joins us at the top of the 8 00 a. M. Hour. Squawk box will be right back. Coming up in the next hour, athenahealth ceo Jonathan Bush responding to david eihorns short call. You cant afford to miss it. The first time he will be talking about since eihorn said his stock is overvalued. And chair january jason furman on the jobs, economy and much more. I bought a car, comes over. And youre like. If youre getting. A good deal or not. Led up. Truecar. Com. All the information. You should be paying. You know, and with truecar. Com, my feeling is that. We got a fair price. Theres no buyers remorse, you know. Im happy with my purchase. Its the truth. When youre ready to buy a car, save time, save money, and never overpay. Visit truecar. Com tigers, both of you. Tigers . Dont be modest. I see how youve been investing. Setting long term goals. Diversifying. Dip you got our attention. We did . Of course. Youre type e well, i have been researching retirement strategies. Well thats what type e s do. Welcome home. Taking control of your retirement . E trade gives you the tools and resources to get it right. Are you type e . Honestly, the offseason isnt ive got a lot to do. Thats why i got my surface. Its great for watching game film and drawing up plays. Its got onenote, so i can stay on top of my todo list, which has been absolutely absurd since the big game. With skype, its just really easy to stay in touch with the kids i work with. Alright, russell you are good to go alright, fellas. Alright, russ. Back to work ohoh, oh, oh, la, lala, lala, lala nanana, nanananana some things just go together, like auto and home insurance. Bundle them together at progressive, and you save big on both. Oh, ohoh, oh, oh hey, its me [ whistles ] and theres my dog [gasps] theres my steps i should stop talking. Perfectly paired savings. Now, thats progressive. Athenahealth strikes back. Jonathan bush. First on cnbc interview. Council of economic advisers chairman jason furman. Investors shocked by teslas Quarterly Results. The final hour of squawk box begins right now. Welcome back to squawk box. Im joe kernen along with becky quick and andrew ross sorkin. Check out the futures after the ecb rate decision. Jobless claims will come out in 30 minutes. They have been volatile. Partly weather related. We got down under 300. Back up to 340. So we will see what happens today. There are some headlines. Really, if i had the entire world to choose from no one other than i will tell our viewers about the headlines this morning. Bank of england and European Central bank with policy statements out this morning. They both left their key Interest Rates unchanged. So its a headline but not a huge headline. Mario draghi on the latest policy statement in the News Conference the a 8 30 a. M. Eastern. Of course we will be monitoring that for you. A mixed morning for eli musk. At least the companies associated. Good news, reported First Quarter profits 12 cents a share. The stock is falling on a Current Quarter outlook. Solar city raised its fullyear forecast with revenue above expectations. Apple head of north american sales is leaving the company. Hes going to be replaced by deck, currently in charge of sales for japan. Comes only two years. He had been chief financial officer. Joe, im surprised you have not said, done some kind of imitation of all the people at home rushing to the tv because of this news. Which news . About mr. Row. He claims he is in position to succeed the way the bulls hope. It could easily fall. Shares of athena fell at the conference where people have done this other years. Its a charity conference. With us is Jonathan Bush, chairman and ceo of athenahealth. 4. Its a list of noncommunists. It was over 200. Now 107. There have been storied stocks. Athena got caught up a little in some of the air coming out of these names. Yeah. His main thrust is not necessarily a Cloud Company or sizzle software. Youre more like adp. What is bpo . Business process outsourcer. Usually a company like that will trade in the mid to high teens. If youre 1. 07, 2 1. 10, youre triple digit 100 times earnings. Yes. This is where he is a hero of athena cause. It is not a bpo. Its not even a sass company. It is a Software Enabled service. This Business Model holds the greatest hope for Economic Growth in this country for the next decade or two. It takes software, gives it to customers in exchange for using that to solve complicated expensive problems. You have to say that again. Youre promotional. The greatest opportunity for growth anywhere for the next two decades . For our country, yeah. This is what i see. Dont buy it if you dont like it. You have used the word mobile, social, cloud. Right. Its all the key words that get people excited. Yeah, yeah. Youre not saying theres anything wrong with the company at all. Hes just saying the valuation doesnt make sense. For all i know hes right. What he also says is were like a bpo. Were not an enterprise software. Everybody uses the companys network. Everybody uses an internet native network to do it. Everybody on athena, all five services are on one instance, one application. Let me look at other stuff. Right now you work mostly with doctors. You would like to get into hospitals. Thats right. Companies that do that for a living, it spent 3 billion. Yes. So part of your growth is you will introduce the system. 2016. Turner, epic and others are great enterprise companies. They sell you this a box 100 of the things if you unpack them and plug them in right you could run a your whole hospital right. You have to spend the money to develop a system to take these guys on. Were just going to say, hey, use our scheduling, their scheduling. Were both connected. For nothing, start using our scheduling. Were sending you a patient. Let us check the eligibility, make sure the precertification is in place, the insurance card is correct. These are things people who own wear cant do and we can do. On a multiple basis, on a comparable basis, people say who what should it be comparable to. You say what are we and who should we be compared to . Right. Youre the investor in your company. Right. Who should you be be compared to owe a multiple pe basis. Youre the first guy to do something a certain way. Companies look look like us, people compare us to sass companies. The company spent 11,000 to get that, including all the sales and marketing. They could have done a lot of work we did in addition to providing a piece of software over the internet. They decided instead just to give you the software and say godspeed, john glenn. We would say we are going to manage your list of prospects, edit them when they change, do postcard mailers. You have compared yourself to sales force. Com. Sure. And amazon. Yes. Amazon is an example of something that gives you software and only gets revenue when you get the result. They own warehouses. You realize this sounds very salesy. A couple of years ago i think earnings were 3. Estimates keep coming down for revenue growth. Its not going to be 3. Its going to be 1. 07. The street, after missing numbers, they always give you a pass on. Yes. And margins were supposed to go like this. We bought one come. Every product every year, what we do with the cash recreated is invest in r d for new product. Last year we announced we are going to tkrgrow r d 45 . It doesnt take three years to set up. Rather, three months. Thats right now only us. A huge opportunity is where everybody is on software. Everybody already bought a billing system. Replace the building system. 70 . 70 of our clinicals replace brandnew Software Based mmr. 16,000. 16,000. But in the numbers these analysts use to do this discounted model to get to the stratosphere, youre going to have a lot more doctors. Not 16,000. But 63,000 a year. Somebody should look back and see customers on the network. There are five, six products you can buy. They have big dig counts that good away over time. The revenue goes up and up and up. Give us a small percentage if we improve this. Its very little risk to the client to say, sure, if you can do that, ill add that. Thats why we have been able to grow right through these sclerotic software. If you use your blender wrong to make a smoothie, its not the blender companys problem. Obviously when you come on, you seem completely committed to this. Where do you stand in terms of what percentage of the company you own. Have you sold stock recently . Tell us a little bit about that. The best thing is to have a temporary deep dip in your stock. We are looking for cfo. Act now while supplies last. This is a great time to get your stock. Im assuming im risk. The idea of creating the heat care cloud. You guys are no dummies. It is a new idea for people that there could be a free public utility only paid for as you use it. Like the power grid connecting everybody no matter they are. Does that mean youre holding. 1 thoeu sales a month. Like tom cruz. What do you think the value of the stock should be and why . I am absolutely sure athenahealth is a 1,000 stock. I have no idea when it gets there. I dont know if its because today because everybody is discounting it back. Is it later . We have a business unfriendly government. Theres not a lot organically. You have to move further up. Is that based on revenues . Discount it back. There comes a time when we have enough for the network to work. It goes away. For example, collector. We used to receive 95 of all payments for our payments on paper, scan it, enter it, post it to the system. Today 92 comes through electronic in a what we have built plumed into the rest of the insurance network. Its ebay margins for that one piece of our business. Each piece of athenas 234e9 works will generate ebay margins. It will take decades. The way i look at the Company Stability and reliability, are we gaining enough so we dont slip down the beta max. Theres not enough nodes. I say grow revenue 30 . Make sure the Gross Margins grow. I asked for a different reason. You have talent. Yes. The people that work there. Yes. And you pay a large part in stock. Yes. So if the stock drops you have a problem. Yes. Otherwise, the stock wouldnt matter to you. If it goes all over the place frantically forever its more complicated. If it drops and stay dropped, we will pay people there. I, who took all stock options, let the record show at 195. I have to wait a while for my next million. If the market doesnt see it, they shouldnt make any money. Explain the shortfalls. Has revenue in the last two years, lets say eight quarters, how many times has it missed or been guided down . We set every year to say, look, i dont know. Given how much unfilled toil there is, were going to grow 30 a year. Given the the complexity of serving the network thats as much new dock without underserving somebody. This First Quarter i think we grew 27. The reason was our newest Family Member has been traumatized by the refactoring. So we lost a lot of salespeople. We will get them back in position. They will make their quotas. Well be back. It is probably a more important metric than earnings per share at this point. Gross margin of products. They have to get more profitable in and of themselves. And growth of the network are the two things i focused on. You can look at our Gross Margins. You recently had a big win in new jersey getting the largest medical network. Yeah. What type of investment did that take to get and where do you see the returns coming . Perfect. I assume youre referring to summit medical. One of the most respected in the country. This is distracting. Let us do your billing. Well connect up all your patients. Were connected to all the insurance companies. You dont have to set up anything. Well just start doing it. They beat us up. Its new jersey. Finally we got them down. Tiny price. We delivered enormous improvements in their collections. They say why are we still doing this over here . Everybody is dancing in the revenue department. Can you just turn on the oven . Of course. Revenues up 40 . Everybody is connected to the labs. And the idea of an investment to get in because you want us to focus margins and what you think the affect is. I happen to know amazingly, summit received an ipod with a video from me saying i cold called you 62 times. And he said ill only talk to the guy on the ipod. Absolutely. Im available that day. That was a couple of years ago. Now theyre on. Theyre going national. Theyre expanding nationally. They found a way of scaling with no cap ex, no staff. Thats the athena story. Summit medical is where i put all of my family. Yes. I looked you up. Its the best pc another example here its like a hospital. It is a temple. Its not a hospital. They eliminate 35 of the inpatients that a normal population does. With all the excitement he doesnt have to answer the questions. Same with ascension health. They all had emrs. Its a national chain. They had to switch to our building because the mother ship said they had to. Each little Ministry Said i would rather switch. Im sick of software. So six out of seven will be adding the medical record. Thats why people are valuing the stock. Its a different animal than the software market. You have been on sabbatical. Eight weeks. And youre back. Im back. Are you kidding me . My god, im back. To the extent this will be a distraction or something you have to deal with not just today but i imagine the next six months if not year. Your frustration is my evidence of maturity. You can imagine my first instinct. There should be people against us. I havent heard much about athenahealth. Now you can tell story. It would be a 40 billion Market Company company. Theyre stuck in software. You dont see when someone says you claim to be cloud based you dont see i claim to be male. I claim to be human. You dont see it . Thats not a leap beyond where you should be . This is a fundamentally cloud based company. 00 dependent on the cloud. Our analysts figure out why. Drop a rule in the system. Every single doctor on the network gets it. Never gets that claim denied again. Every doctor can see that specialist and never send a fax ever begin. What did you call it . Backbone. Nations health backbone. And youre investing the health care network. Health network cloud. Im building a way of using al gores internet. The idea is we wouldnt be shopping so much if besos hadnt made the click reliable, delivery reliable. He created a gated community in the internet that we feel good about. I understand what youre saying. We actually used bpo. Im not surprised thats one they used to gain efficiency. Ubs. I saw your sign when i was i touring different locations. I understand the use of the video to show that the ceo is erratic. Thats just you. I dont think youre erratic. If you were to read the transcript he wouldnt have seemed crazy or erratic. It can come across as salesy. Nobody knows what it is. Im sure its going to work. Sometimes i sound, you know, so far we have been right enough. Eventually you have to answer to the forward earnings. We start to get 10 , 15 . Theres no more airy fairy. It has to start turning around. You have answered to a lot of that already. Just air coming out of the home up stocks. You have been coming on since the company was fledgling. You guys keep paying attention. We wish you a lot of success. Appreciate it. Tesla disappointed. Phil lebeau jumping into the drivers seat. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Welcome back, everybody. We lost some of the gains. Jobless claims coming up in just a moment. Stick around. Squawk box will be back with those numbers. Theres a new way to buy a car. Its called truecar. And truecar users. Save time and money. So when youre. Ready to buy a car, make sure you. Never overpay. Visit truecar. Com today. 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. With all the opinions about stocks out there, how do you know which ones to follow . The equity summary score consolidates the ratings of up to 10 independent Research Providers into a single score thats weighted based on how accurate theyve been in the past. Im Howard Spielberg of Fidelity Investments. The equity summary score is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Welcome back too squawk box, everybody. We are a minute away from jobless claims. Rick santelli is standing by at the cme. We have steve whiting, global chief strategist at citi. Take a look at shares of mcdonalds. Global comp sales up 1. 2 last month. That is slightly better than expected. U. S. Sales were flat. That was better than the industry had been expecting. Europe was the only region in the world where you saw the estimates falling shy. Again, thats a dow component. Stocks up 4 . And they have had trouble. They did the coffee. The fruit and the yogurt. Breakfast has been a big thing for them. They have head winds with the whole health craze. Gaffy does a whole routine. Fat daddy routine. Oh, me, im just waiting for a hooker. Im not eating a hamburger. Numbers were 344,000. Rick has the incomes. All right. Initial jobless claims. Well, they were revised last week up to 345. Then they nose dived down to 319,000. So that is a big drop. But remember there was Easter Holiday seasonality issues going on. It was a large drop. Many expected 344. It now stands at 345. Was overstated. Continuing claims from 2. 76 to 2. 6 million. Im not embarrassed to say i like a big mac every once in a while. Its all about the euro counter seu. We have jean claude on. What a nice day to talk about all things central bank. They didnt do anything with rates. They could probably use the microphone potentially to continue the about zoo qaa warfare on markets. They have accomplished a heck of a lot when you consider where southern european economies lie on the map of good gdp relative to where their Interest Rates on. The press conference is starting momentarily. And it looks to me like there is volatility in that market at this point. And we also of course have going to have the last of the auctions today which total 69 billion. Today it is 30year bonds. Back to you. All right. For more on those numbers, stick around. We have Steve Liesman. Also steven whiting. Steve liesman, what do you think about the numbers . Rick said the word, seasonality. You had this later easter. That factors in. What i like to do is fall the forward moving average. 3. 20, 320, 324. You have a chip in there. Tell us what that means for monthly payrolls. Its keuconsistent with 238 april. It was a shift of employment that would have occurred in the winter into early spring. So probably above 230 for the may employment report. April may be one of the strongest of the year. We will have continued declines in the Unemployment Rate this year. The participation rate, that do you think of that, staoefren . It has been incredibly vexing. A large number have dropped out of the labor force from 2007 on. Its been very, very resistant. Its critical for this Economic Cycle for the recovery that we get labor force growth. Its been close to zero. So i think there is potential for, again, younger workers to come back into the labor force. I cant imagine they stay out forever. But this is obviously really important here. Because the fed cant print labor. I brought along some charts. Alan krueger has been on several times with his theory that basically says the longterm employed will drop out of the workforce and arent coming back. So i asked him to calculate a couple things for us. The extent to which the longterm unemployed dropped out and the extent to which they found jobs. 28 . The highest in many, many months or years actually. All right. That is a really bad number. Its a bad number. It accounts for a big part of the participation rate. Leaving the workforce. And you can link it directly back to the end of benefits. The idea is that two years . Is it one year . 27 weeks or longer. This is not necessarily an argument for keeping the benefits in place. What it does say is when you have these benefits in place it keeps people attached to the workforce. It doesnt say that it helps them find work that they are more likely to find work either when you get rid of it or after. A very slight increase in the job finding rate. All it does it seems to me steven, tell me if im wrong here, it causes them to respond to the question, are you looking for work . Yes. It doesnt say let me find work. It would be a humanitarian reason or aggregate demand reason. Again, you dont really care about the number. You care about the realities. They are not competing for unemployment. They are not forcing any changes in the economy, competing for wages and these sorts of things. Ultimately, whether they stay out indefinitely is another question. The fed is essentially running an experiment. They want to see the labor markets tighten a lot and see if they can drawback into the labor force. They will hit capacity restraints. You saw this number that puts gdp as a contraction. You were the first to report that. Nine us 0. 3. The range is. 1 to minus. 8. There is at least half looking for four. A lot of commitments now that agree with Steve Liesman. They believe its possible to have 4 growth for the rest of the year. Second, third, fourth quarter. Even though that Wont Quite Get you up to 3 annualized. And many commitments say a smidge more concerned if we can have five quarters of 3 . The laugh time we had threequarters of 4 gdp was the last quarter of 83 and the first two quarters of 84. And the last time we had 53 was the last quarter of 98. Ponder that. Historically not a lot of this better be i hell of a snap back. Just to be clear, we are showing 4 and continuation. 1q, 2q. It will average 2, 2. 5 if were lucky. We were speaking earlier, another chart looks at education obtainment. And it seems those who dont have the education are those who are longterm the unemployment and not part of the participation. Its exactly the same. People dropped out of school because they were attracted by the construction business. Arent we forcing the participation in . Couldnt we be here for a long time . We have to wrap here. What would we do about it . Is it a Government Program . A Business Program . What is the course of action. Let the free market. One of three options. Its not easy. Its the right point. Robert will be with us the rest of the program. Tesla beating estimates on the top and bottom line. There was mixed guidance. Shares down 7 in after hours trading. Phil lebeau joins us with more on this story. The haters came out last night on the conference call. Mainly if you were online and you read the comments from people who were saying, there you go. You have problems with tesla. In the conference call, tesla said they would be negative free cash flow. They ramp up production for the model x. Ultimately, working on r d as they develop new vehicles. And getting ready for asiding production in china and europe. This is a company thats grown. Some people are saying aha, here you go. I have a problem with tesla. About 35,000 is what they expect to deliver. Deliveries in the second quarter, 7,500. Thats in line with what people are expecting. Its all a matter of your perspective, guys. Look at these comments from yesterday and say you know what, i dont think they will continue to grow at the same rate. Or this is what you get when you have a company that is growing. Im not sure how you grow a business without increasing capital expenditures. Right. All right. Phil, thank you. Thank you, phil. Coming up next on squawk box, jobs, the economy and your money. Chairman of the council of economic advisers jason furman after the break. In the meantime, futures have been moving around all morning. We have some red arrows. Dow looking like it will open down 15 points. Today is thursday today, we greet you. Treat you. Care for you. Today, you can come to Cleveland Clinic for anything, everything or just to get that thing checked out. Big, small, and yes, the best heart care in the nation. Its here everyday, for everyone. Thats the power the power, thats the power of today. Cleveland clinic. Call today, for an appointment today. The u. S. Unemployment rate may be down, but the rising number of americans dropping out of the labor market is a troubling sign. Jason furman joins us with more. Im not sure if you just heard our last conversation after the jobless figures came out for the week. Wondering what you think about that approximate. A huge number of people that have been out of work more than 27 weeks, what happens to those people . Lets just talk about the general trend in jobs. 288,000 jobs last month. 2. 4 million private sector jobs in the last year. Dow see an economy continuing to gain strength continue to go cover from the ravages of the great session. Youre absolutely right, if there is one thing we would like to see get better, longterm unemployment. Its twice as high as what it was before the recession. Were making progress on it, but we need to do a lot more. What do we need to do . Just limit it down. There are basically three options. One is a Government Program. A second would be a private tech sore program. The third is just letting the free market make its way. What do you think the answer is . One simple thing is Unemployment Insurance inspired that helps people through the hard times and helps keep them connected to the labor force making them look for jobs. The Senate Passed it on a bipartisan basis. We would like to see the house pass it. They are willing to add to that with the house. A second thing is the president is working with a lot of ceos all across this country to Institute Best practices. Make sure youre not inadvertently working up a screen just because they have had bad look. The longterm unemployed, the Unemployment Rate is coming down. This is something we can solve. You can explain this to me. When we talk about Corporate Tax rates, i saw some of your comments. We dont want to get involved with a race to the bottom. Im trying to figure out who you are trying to protect in that sense. Do you think we need to protect all countries so that they can raise taxes through corporations . What would be wrong with unencumbering corporations around the world to compete even better and create more jobs and reward more shareholders and to put the taxes somewhere else. Why should we be worried. We want a tax system thats neutral. So businesses are making decisions based on whats best for the economy, whats best for their bottom line not whats best for minimizing their taxes. We would like to broaden our tax base. At the same time we want our companies to compete and succeed all around the world. We want them to do it because theres a good reason, not to save money. We havent heard the white house or washington weigh in on this pfizer astrazeneca thing. In large part on repatriotization. The brits, all the officials are talking about it. Whats your personal view of what has taken place here. Its a private business transaction. The british do have Certain Authority over. Its not something we have authority over. I think there are things you can do to tighten up the rules. Far and away the most important thing is for us to fix our broken tax code so we are not given incentive on stuff like this approximate. Here, here. Recently we have seen reports positive and negative on minimum wage. We have seen that may impact directly and indirectly 28 million. But the ceo comes out and says it may increase unemployment by 500,000. Although a lot of economists have challenged that. What are you hearing about where we are on minimum wage . What are you doing to try to get the states at least to go on their own with it . Were making a lot of progress in jobs. We have begun to make it in pages. Raising the minimum wage is one of the best steps we can take. And the president this year is a year of action. Hes not just trying to do things here in washington. Hes trying to do it around the country. Connecticut, maryland, hawaii have raised their minimum wage. Companies can like the gap have done the it. The president did it for federal contractors. It would be well within the range of what it has been in the united states. Well within the range of other countries and well within the range of what economists have studied and found little to no impact for. Do you with the prescriptions in mr. Pickitys book in taxation . We need a more progressive tax code. There are bet ways than what he proposed. The president in particular is proposing not to raise rates but to limit some of the tax benefits that high income households get. From the top 10 , jason . Thats pretty progressive, isnt it . I dont have the number in my head. They tonight make 70 . We have a medium and long run. We want it solved in a balance wait, reducing tax benefits for high income households. Growth would do it. That isnt coming from minimum wage. We definitely need those. When we come back, jim cramer from the new york stock exchange. Over 1. 2 billion eyeballs are on us during the two weeks at wimbledon. True tennis fans want to know whats happening, they dont want to just see whats happening, they want to know and understand why its happening. Anybody can just put data up, but we want to get a reaction, make it far more interactive. We rely on the cloud to provide that immersive digital capability. You stand behind what you say. Theres a saying around here, around here you dont make excuses. You make commitments. And when you cant live up to them, you own up, and make it right. Some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where its needed most. But i know youll still find it when you know where to look. And down to the new york stock exchange, jim cramer is joining us now. Good morning, jim. I want to talk athena real quick. Where have you been on athena . Do you like this company . I like it and then it went too high along with a lot of the companies that were trying to be cloud base. A lot of my views stem from the fact that salesforce. Com in the last week of february reported a great quarter and then went down. Since then, ive been tempering my enthusiasm just on orders going up and i think athena is a medical records company. In the end, thats what it is. And the medical Records Companies dont deserve those premium multiples. At 90, i liked it. In the 100s, i didnt. Everything for a price. And then ive had people talk to me about tesla, that its hard to be a huge manufacturer of automobiles, especially since its so cyclical and our economy is so cyclical and youve got to be good at saving or rainy days and labor and Everything Else and maybe we cant assume that they have this whole thing licked because they have a great car. Listen, were going to make the cars. They do make more money than amazon. They have china demand. That is something that you said before the world turned upside down. You talked about orders in china. Now you talk about earnings per share, dividends, and buybacks. Jim, well see you soon. Up next, a big announcement from robert wolf. Also, Priceline Group Darren Huston will be joining us. Well be right back. 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If you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Just take a closer look. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. Welcome back. Lets get to our guest host, robert wolf, the ceo of 32 advisers. Hes expanding his business into a new area. A bit of an announcement . Yes. Well be adding to our cross border advisory. Were going to have a Company Named measure drone as a service. Its a 32 adviser company and were going to help companies around the world use drone as a service. When you say drone, youre saying it cingular. Why not drones . And youre going to be advising companies on how to use drone . The only thing i can think of when you say that is amazon. Not military, obviously. I want to preface that. But agricultural, disaster recovery. Theres over 1,000 manufacturers of drones. And we think from a crossborder perspective, we will help in the key approach. We have Justin Overman and justin detlick who has 15 years in this experience. You have to get the faa to sign off, correct . Correct. There are different regulations in the u. S. Than in abroad. In 2015 the time period is going to change a bit but the way we are looking at drones is, look at a farm. They have 1,000 of acres. They want to understand their pesticide or a pipeline. What are the safety issues . Are they equivalent of very, very expensive toy helicopters with cameras on them and internet connection. Were looking at the aspect for a company. Were not talking about going into new york city and having these drones go through times square. Ours is going to be much more tactical. We also want to help states on disaster recovery. Right. You look at the recent mudslide. Maybe if there was a drone aspect. I know that youre technically not a lobbyist, but how much of this role gets into washington and spent time with politicians, congress, senate, and other regulators around this issue . Zero for us because the rules are already in place. We are well aware of the rules and we can help Companies Get the Operational Efficiency by having them understand the rules. Were also going to help them understand what rules they should be looking at, the size, the hours. Were going to have a turnkey approach. Its called measure. Were announcing it next week. Its been a pleasure seeing you. Thank you for joining us. And i want joan to know i paid his bet off. Very quickly, i want to take a look at the euro. We were looking at 1. 5 and now its 1. 39. This comes as the its time for squawk on the street. Good thursday morning. Welcome to squawk on the street. Im carl quint quint. Markets are more stable after yesterdays volatile ride. A lot of earnings today. Janet yellen, day two on capitol hill. Yellen expressed the concerns about housing yesterday. And then in europe, the bank of europe and ecb left

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