Transcripts For CNBC Squawk Box 20150303

Coming up in a few minutes. A couple of different stories were watching. The nasdaq partying like its the year 2000. Closing above 5,000 for the First Time Since then in only the third time ever. The nasdaq now. 8 away from the record close. There is a surprise from down under this morning. Australia central bank holding back on further easings. Gasoline prices jumped 37cents a gallon. Now thats the largest week to week increase since the agency began its survey in 1992 but life is relative and if you remember where things were six months ago its hard to complain. So it doubled in three and doubled again in three. So it doubled 72 divided by 3 is 24. 24. So its probably is it 24 return in six years if it quadruples . Yeah. If it sits right you can do it. So the nasdaq is up so instead of 6 or 7 for equity appreciation the nasdaq since 2009, 24 a year. So stay out of the market. If you put that money in 15 years ago youre just giving it back. They didnt have money 15 years ago. They were 6. Millennials didnt. Well go in the nasdaq. Among our stocks to watch barclays topping estimates despite having to put more money aside for potential Foreign Exchange litigation. It just rolls off our tongue. Getting a boost this morning. Just use spelling something backward normally wouldnt work. Its not a harsh laxative its natures. Its a slow natures. It worked for evian. Naive spelled backward. You know what that is spelled backward . That means nothing. Yeah. The mortgage servicer says it will sell Residential Service mortgaging rights on 45 billion of fannie mae loans. And neighbors missed the mark on the top and bottom lines as you would expect. The company was hurt by lower drilling activity amid a drop in oil prices and thats something that eventually might rescue oil. People dont know when it might happen. Harold had interesting things to say on friday. I thought so too. Hes seen this happen before. He knows the laws of supply and demand on how long it will take. He has shutdown things pretty quickly in terms of the investments hes putting in. I was wondering whether you changed your because they cant export it. What changed my opinion is they can do it. They can do it. They can do it here and that does change my opinion on it. We shouldnt have a more strict set of regulations for penalizing them for being here. That did change my mind on it. I figured mine. Joe talked about the nasdaq hitting 5,000 for the first time in 15 years. Ive never been able to say the nasdaq closed at a record level. We were within 0. 8 for a record close for the nasdaq. If you look at the dow futures were down by 32 points. The nasdaq down by 7. There were record closes yesterday for the dow. The s p 500 and russell 2,000. I said that a million times but in over a decade i never said that. Were 40 points away essentially . 8 of 5,000. Must be around 5050. Lets check out europe this morning and see whats happening in the early trading. It looks like green arrows even in greece. Looked like moderate declines for the hang seng. If you want to check out oil prices wti is up 1. 5 . 50. 31. In the bond market the ten year note looks to be yielding 2. 103 . If you want to take a look at currencies at least right now the dollar is up against the euro at 1. 1165. Dollar down against the yen 119. 86. Gold prices look now like they are barely moving but they are down slightly 1207. 10 an ounce. We want to get back to tech this morning. Mark zuckerberg is in spain speaking before the mobile World Congress there and john ford is there. He joins us with news this morning morning. Yeah, Mark Zuckerberg was on a Diplomatic Mission yesterday when he took the stage. Didnt break a lot of news. Didnt seem intent on doing that. He was talking correctly to carriers in emerging markets about the benefits of sacrificing a little bit to expand Internet Access to more people. Take a listen. When people have the internet overall, you get access to information, Health Information to stay healthy. Education information to increase opportunities. You can find jobs. The economy. So its incredibly important so thats why its something that were all focused on. I also had a chance to talk to the head of growth for facebook. He talked about how monthly and daily active users are still the key measurements for growth flying in the face of what twitter is trying to spread about other metrics being more important. He doesnt care about logged off users as much either. Take a listen to him. As you know its about 1. 4 billion people monthly active and 900 million daily active users. Thats too much important. We of course look at different engagement metrics about time spend. How much time they spend on facebook and theres parties reporting that over 20 of the time spend on mobile comes on facebook. Those are the metrics that we look at. Facebook was clearly, Mark Zuckerberg was clearly trying to get more carriers on board with its internet on Board Initiative giving some data away for free. Mainly sbook access in emerging markets. Had executives on stage like this giving figures like this. 7 Million People used mobile data for the first time as a result of this program. And in countries where they launched the internet. Org app. The rate of acquisition for new paying data customers was up 40 . Thats the thing that carrier executives might care about. The folks in the crowd maybe not as much but facebook trying to lay the groundwork for more people to have access. Maybe economic development. Probably people buying things and advertising on facebook overtime guys. Back to you. Thank you john. Before you go, theres a story in Business Insider that says that Mark Zuckerbergs lecture or speech was so boring they have pictures of people in the audience sleeping. Its remarkable. Is that staged . I dont know if theyre sleeping or looking down at laptops. John, were you there . Were you sleeping . They are probably sleeping. I was not in that room. I was monitoring the panel from where i could be close to a camera but ill tell you, he wasnt throwing out all the stats he could have about facebooks growth. This wasnt a speech for the masses. This was a speech to Telecom Executives in emerging markets. He was very keen on diplomacy for apps theyre afraid are taking away sms revenues. Hes making the argument that the opportunity in data revenues that theyre spurring on are even bigger. I appreciate it. Thank you. I guarantee you if it had been jessizenberg no one would be sleeping. Hes a better Mark Zuckerberg than even Mark Zuckerberg is. Lets get some perspective on how the rally were seeing now compares to the boom we saw 15 years ago. I was trying to figure out because he doesnt drink. He doesnt smoke. He hasnt changed at all. You were there in what year . 97. So you were there talking about new highs in the nasdaq big time. He is the senior columnist at Yahoo Finance and the chief market able list and cnbc contributor that fought every point up since 1700 and doubted its veracity basically . Over the past year and a half yes. Where was it a year and a half ago . 3500 wasnt it . 3,000 . Yeah much lower. Okay. You might be right. You might just be early. Were going to have a lot of people on today. I was reading in the journal, everybody says no no no. Its fine this time this is no overvalued. I dont think we should worry because people are trying to reassure themselves that its different and better and not crazy. I dont know what take away were supposed to have. Its the craziest weve ever been in the stock market. That was such a singular exchange. It shot like a needle from 4,000 to 5,000 and right back down. It didnt spend time there. It was at 3,000 a few months before. You have much an enormous impact. Being able to carry it such a long way. By the way, the nasdaq you mentioned it was a little under 24 from the low in 2009. Youre right. But you know what else was, the s p mid cap. Its just been another index. Right. Its a spicier version. It was stretched on that side. I know its only four or five stocks driving thing with the nasdaq. Is that unusual . Does that happen with other indexes . Like with the dow 30 or anything . To me why not just buy those four or five stocks. First of all, nobody owns the nasdaq. Its even more concentrated than that. In fact they have to have rules to keep those big stocks like apple from essentially dominating even more. They cap their weight. Used to be the microsoft rule i used to call it. To that point, the advanced decline line and the nasdaq stopped a year ago. So yes its less stocks driving it but it can continue. The last time it happened and you probably hes gone now. When we went through 3,000 he got really bullish on the nasdaq because of the way it just felt it went to 5,000 but shouldnt have been above 2,000 based on anything other than the mania. Absolutely. Thats why people get excited with break outs to all time highs because theres no more resistance. If youre a tech nix, it wants to hold you back. That was the other thing. It took 15 years to get back to 5,000. So i was trying to figure out with a normal rate of return for equities how overvalued was it in the year 2,000. So if you did 10 a year it was at least 100 overvalued. It was probably more overvalued than that. Yes. It was probably worth 1500 and trading at 5,000. Right. And it caught up though. It sort of caught up. It deserves to be much higher than 1500 but does it deserve to be 5,000. If you look at the s p and the dow they have exceeded their inflation adjusted 2,000 high. Nasdaq needs to rally another 36 to get back to its march 2000 inflation high. How much have we exceeded it . People still havent made much money. In dow its about 2,000 points on an inflation basis. Thats pretty amazing. The point you were making with the ad line what do we draw from that . Youre six years into a bull market so it just aged and typically thats less and less stocks that end up driving the indices. This is apple although they havent done much. Apple contributed about half of the year to date gains in the nasdaq. Hes going to be on today. The most interesting thing to me if you want to break it down is the nontech stocks that carried it to the round trip. Costco up 200 and bio tech and its less than half pure tech anymore. So its really honestly it looks a lot like the rest of the market. So the question of does the nasdaq 5,000 make sense is the same question as does s p 2100 make sense right now . Does the market trading at 20 times trailing earnings make sense right now . And you can see yes and no but its not a special case nil. Ipo fever, theres about five or six or seven things that you can engage. I wonder how many of them are behaving ipo is not flashing any warning signs now. Youd be looking at the fund flows. They have not been strong in an enduring way. You dont want to benchmark yourself against mania. The little guy has to get excited before this thing ends. It didnt happen in 2007. But they should be talking about it. They probably wont talk about uber. Its a different story for a different reason. You cant say were insulated for bad stuff. So at least in tech its preipo. So back in 2000 if you had no revenue in public now you stay private so its in the premarket where as before its in the ipo market. Thats the other thing hes going to say today and that is that youre seeing some in private valuations and i think Everybody Knows that. I did a trivia thing over the weekend and one of the questions was uber and the way the question was phrased it didnt go high enough. Whats it valued at . 40 billion. It ended at 40 and when they advised it 40 was one of the middle numbers. It wasnt shocking anyone. We can say it so easily but is there its just hard to believe. How does that translate . Does it transmit itself into the Public Market at all. The one you might do it is with the analyst coming on saying instagram within facebook is worth 35 billion based on what the private companies are based on. It has to equate to it. It came out based on it. I said you didnt drink but you drink. Not anymore. Oh you dont. Thats why you look like peaches and cream. I have been on a limited calorie diet until the nasdaq got back to 5000. Hunger strike. All right. But you do, you havent been on in awhile and you havent changed. Doesnt age. No. Youre human, right . They worry so much over there. Yeah sure. That guy was as trim as could be. Yeah thank you. Thanks peter. When we come back this morning, why Hilary Clintons use of email is raising red flags this morning. Plus israeli Prime Minister set to address congress today. Well head to the hill and talk about the controversy surrounding the event right after this. Barbara just bought a bike. She wrote a tweet about it. You cant learn much from that. But take data from millions of tweets combine that with your companys supply chain and sales data. Apply ibm analytics and expertise, and all of a sudden, you can learn which bikes to build what to make them from, where to sell them. Because barbara and the world just told you how to build a better bike. Theres a new way to work and its made with ibm. Prime minister Benjamin Netanyahu is in washington d. C. Set to address congress and tracy is there with details on who will and who will not be there. Good morning. Good morning. Theres a number of lawmakers, a growing number that say they will not attend this speech by netanyahu this morning because they think its more about politics than progress. My speech is not intended to show any disrespect to president obama. But his speech invited by republicans two weeks before his election has prompted 50 members of congress to say they will not attend. I dont want to see the congress of the United States being used as a prop or a photo opportunity in his reelection campaign. President obama calls this speech a distraction from the on going talks to curb Irans Nuclear program. Its a distraction from what should be our focus and our focus should be how do we stop iran from getting a nuclear weapon. Netanyahu and lawmakers here think the u. S. Isnt doing enough. I have a morale obligation to speak up in the face of these dangers while theres still time to avert them. For three years we have gone round and round in pointless negotiations while we endanger our security and israels security. National security advisor susan rice tried to reassure israel. The bottom line is simple. We have israels back come hell or high water. And now theres concerns they may leak details of the secret talk before a deal is announced. Theyre trying to freeze the Nuclear Program for at least ten years. But even president obama says the odds are against this deal. Theyre still working on it. The foreign minister is in switzerland trying to workout the details and thats why the white house doesnt want anything to leak out before. If theyre able to seal that deal. I think i saw the president isnt going to watch the speech either. Did you read that anywhere . Yeah the white house is saying he didnt watch netanyahu yesterday and that he doesnt plan to watch him on capitol hill today. I just want to know i just figure id want to know. The whole thing seems like a couple of children arguing with each other. Anyway tracy, i appreciate it. Thank you for that report. Lets tell you about other political buzz stories going on this morning. This one involving hilary clinton. He used a personal email account to conduct official business when she was secretary of state. Her actions could be in violation of regulation. She never had a government email address at all during her entire time there and i imagine i dont know if you use gmail or hot mail or yahoo or whatever and by the way this has to be this is a larger issue than just hilary clinton. This goes on all the time. Everybody in government has is that the beginning of the mainstream medias defense no. Im sure the New York Times is working on a piece that excuses any action. Im not excusing it. I think there is a bigger story here. Youre saying everybody does it. Theres a bigger story here. If everybody does it its not a big deal. Im not. Did you come from there this morning. Thats not what im saying. But there is electronic correspondence on how to handle this right . What im saying is it will be out tomorrow. Theres a larger story to be told about government officials what she has done is on the bigger scale given that she didnt have an address. Theres a lot of political operatives and others that use their own personal email address and i imagine they do it for others should you have to hand your gmail over . Theres interesting issues about this. Get your sore yachts to put this to bed quickly. Just in terms of the consistency of your logic, who broke and reported this story about hilarys ek times today. Grudge. No, the New York Times. Continue on. Get it out first. So they can handle it. So they did diffuse it. Lets do that. Were honing in on gold prices. Currency levels in crude oil this morning the founder and editor and publisher. Its great to see you. Good to be here. We love seeing you when youre in town. Thank you. Youre scraping the bottom of the barrel when you get me in. Never, sir. Were thrilled to have you here. Lets talk about what you think. We talked about nasdaq 5,000 already this morning. Im on board with that already. Im watching whats going on in the Foreign Exchange market more than anything. We got to 120 and we had somebody come out last night, a professor that said that 120 was a bit extended and the yen came back a little bit but im watching whats going on. The chinese are upset that the yen has been as weak as it has gotten and theyre worried about losing market share. Im interested in whats going on in the oil market where theyre moving 2 and 3 against one another. Things are happening that havent been happening before. I find those things interesting. What can the chinese do . They may not like that the currency is weak or what the central bank is doing but they have been doing it for a long time. They have been openly manipulating their currency for a long time. They get a good deal weeker relative not to the u. S. Dollar. They can make that work. Theyre concerned about that. It will be a manipulation and not a reflection of weakness in the economy. When it comes to china its always manipulation. Thats the way it is. I understand it and i dont blame them. Theyre concerned about the fact that the yen moved to 120 and theyre picking up export trade. Theyd like to tell us theyre going to be consumer Oriented Society and the fact that theyre losing relative japanese is disconcerting to them. It seems there will be a lot of problems in the coming years. The Central Banks are acting aggressively and youre going to see things with a little more friction than in the past. Not a question. Youre going to get a lot of upset people here in the eyes and upset exporters here in the United States as we watch the dollar continue to get stronger. Were only in the fourth inning of a nine inning game as to where the dollar can go when you compare to where the dollar went during the regular administration. I think we just started and its going to be terribly disconcerting to the automobile manufacturers and farmers because theyre going to lose export trade with wheat. Thats something to Pay Attention to. The dollar can get stronger. Youre going to see a 150, 175 yen and well under barrel tif to the euro. Are you betting that . Are you placing bets on the dollar . Ive had bets on the dollar for a long period of time. Im long the English Speaking currencies and short the yen and short the euro for a long time. Traders think the dollar already diskounlted the risecounted the rise in rates. Were still at 0. Before this is done in another several years we have to get the Feds Fund Rate back to 3. 5 to 4 . We are going to because were going to have another recession. We stayed at 0 for six years and qe and people assume europe is going to do qe for a little while. They could be doing this for the next two or three years. Everybody thought it was going to be a one off stance. We did qe 3. If you think its going to be a one off circumstance for the ecb youre wrong. Theyre going to do exactly what we did and what the japanese have done. They have been easing for 20 years. The germans are going to have to do the same thing. Theyre going to argue against it. Thats what is going to happen. Lets talk quickly about oil prices too. Which way are you betting on that . The trend is downward. The problem is going to be its going to be completely filled up by april or may. So you have to sell this stuff. You have to sell this stuff. Theyre going to have to sell it. There wont be any place to go. If youre going to be a better on crude oil bet on Storage Facilities if you can. The Storage Facilities look like theyre about full at this point. Which means theres nowhere left to stick it and stuff it away. You have to put it on the open market. Thats right. The producer has no choice. He needs the cash flow. I found it amusing. People were talking about iran cutting down production of crude oil because it fell below the cost of production. Thats garbage. Second of all they made promises to their societies pred gated about 120, 140 130 130 crude. They need the cash flow. Thats the problem. You said you have snow in virginia. We have 17 inches of snow. This global warming. Its out of control. Do you remember robert f. Kennedy jr. Said any kids growing up north of virginia would never see snow. Never see snow never be able to ski. That was before we really understood. Our children in virginia havent been to school in two weeks. That was before we understood the warming causes cooling. Or have we decided thats just weather. Im always confused by that. Some things are just weather unless its a heat wave in the summer. Its weather unless its not weather. Okay. I need a list of things that arent. Thank you for joining us. Always good to be here. Thank you. Coming up could president obama raise your taxes through executive action . He could if he could. He might be able to. That controversial debate with this Republican Congress is totally entitled. First as we head to break, heres a look at yesterdays s p 500 winners and losers. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Not as unlikely or crazy as you might think. It was in reference to Bernie Sanders who is he is a known hes not a republican or a democrat. Hes a socialist. So he has called on the president to raise more than 100 billion in taxes through irs executive taxes. Hes very interested in looking at it. Now i dont want to leave with you the impression that theres some announcement. Theres not. But the president asked his team to examine an array of executive authorities available to him to try to make progress on his goals. Theyre talking about closing loopholes for corporations. So for example on the private equity issue, thats something where potentially you could have where the irs could say, you know what this is not the intent of the law the way its set up. They say these shelters set up they have been things people are skated by with for years and were not going to allow them anymore. Obamas preferred option would be for congress to pass a Corporate Tax hike. But since thats not going to happen, this might be the way it goes. I thought we were talking about Corporate Taxes being too high. But now see i think, obviously, andrew and i know you argued this in the past these guys that wrote this stuff, hundreds of years ago about, you know legislation, to change a law or something, they did not anticipate this Republican Congress, right . They didnt they didnt know how hard this was going to be. So i fully endorsed this. You think sits way to go. Absolutely. Given this congress i think i should have been stricter on some of the rules. I think so too. Im just saying. Why not well tax on individuals. Thats not what theyre talking about necessarily. If thats what theyre talking about its crazy. You dont need all of this wait a minute the people that have so much dont need this much. Why not intimate domain. They always skated close to the law and to the letter of the law. Private property is overrated. Thats not what were talking about here. You didnt build that. You didnt build your life. I built it on the backs of lots of people including you. Lets watch this closely. Its pretty good. Well see where it goes. Quick story for you because we talked about it a lot. Security Cyber Security credit cards. And supposedly everyone is getting new credit cards with a chip on it. I havent gotten one yet. I shouldnt show it because the number will show up on the screen screen. Indiana statediot. We think were secure but were not so secure. Were not doing what everyone does in europe and elsewhere which is when you use the chip you have to have a pen. They give you a pin number. American express wont. So all it will do have is the chip because it cost too much. Is it the Credit Card Companies are too cheap or the retailers are buying machines . I imagine its a combination of both but we thought we had sort of laep frogged and now were not. If you love europe so much why dont you just move there . If were so cheap here and theyre so great over there and they do things so well all the time. Its another one of your fourth grade insults. Their rich creamy sauces and their mistresses. Go over there. Ill have to join seema mody. Youre a fan of france yourself. I cant wait to go. I love it there. Skiing the alps. Im kidding around. People know that. But they still get mad. Were out of time but when we come back well talk about life in the fast line. The ceo is joining us from the geneva auto show when squawk returns in just a moment. In new york state, were reinventing how we do business so businesses can reinvent the world. From pharmaceuticals to 3d prototyping, biotech to clean energy. Whether your business is moving, expanding or just getting started. Only new york offers you zero taxes for 10 years with startup ny business incubators that Partner Companies with universities, and Venture Capital funding for high growth industries. See how new york can grow your business and create jobs. Visit ny. Gov business welcome back everybody. A multibillion dollar deal involving citi group just out. Theyre selling to spring leaf for 2. 5 billion. Theyll be the largest sub prime leader in the United States. Citi group up by 51 cent. Is that on that card . No i see it. I do have this. Thats what were talking about. Were back to the credit card issue and what the its the gold chip. You can see it. The chip is blue. Its cold. Thats what were talking about. Coming up work with me. Squawk box i say youre doing that one and then i was thinking of the gold and white dress. Is it gold and white are you thinking about the clinton blue dress . On the portrait . Thats unbelievable. The gold and white dress. I just outed myself. Squawk box in the fast lane. Were going to hop in the drivers seat with the ceo of lamborghini. Come along, next. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Welcome back. The issue of income inequality is real. But the predicament is how to solve it. Warren buffet addressed the topic. As the economy becomes more specialized they go more and more at the top and more and more people get left behind. Education will help. But the earned income tax credit i think is much better than the minimum wage. It extorts the market too much. Did go on to say a change in the minimum wage could result in less unemployment. He is the chairman and founder of ceo operation hope. Hes in washington d. C. Today. Hell be at the white house a little bit later today and you are celebrating the 150th anniversary of friedmans bank right . Yeah good morning, first, andrew. Good morning. Well be at the white house for the president S Advisory Council and to warren buffets point at 10 00 with secretary of the treasury and others and well be celebrating the 150th anniversary of the friedmans bank which lincoln created to teach freed saves about money. But thats the legacy we plan to continue. Lets talk about how to fix it. One of the things so unique about this is you think theres a way to do it without capitalism. I think to obsess about the minimum wage is really an argument over crumbs. And i dont want to talk about crumbs. Minimum wage should be set in a way that doesnt allow people to be dignified and survive until tuesday without starving. We should be talking so i agree with mr. Buffett a hundred just last year. A focus on the earned income tax credit. Where its a reward for working. And if you have two children and work, the government owes you four grand. Thats going to be 12,000 to reset your life or start a Small Business. So we should focus on the fact we have more Small Business debt than Small Business bursts today. Thats item number two. Item number one is aspiration. I slightly disagree with mr. Buffett that education cant change this completely. We need to connect education with aspiration which is what were doing. Ill announce something this morning to lift up young people and connect education to a job or job creation. So aspiration and education. Number two is Small Business creation. And number three is giving people more of a living wage argument, not a minimum wage argument. So how are we supposed to think about what people say is the growing gap. Does the gap unto itself matter or is it really about what we do at the bottom . Its the hope gap. Its what matters. Its the literal gap that people argue about. Statistically this way, or not in the danger zone. Thats not true. When people believe their children wont do as well as they did, then america is in danger. When you lost your hope you become not skeptical, you become cynical. Now you dont believe what your politicians say. You dont believe what the newscasters say. You dont believe anything. And you dont believe in yourself. And you start to have a confidence problem. So the reality is as you well know andrew, the bottom socalled bottom of the economy is driving the largest economy on the planet. 70 of our Consumer Spending is the average person. You know whenever youre on i think, wow. Yes, yes, yes, yes. I just nod and nod and nod. And im just wondering. The president can only do so much. But im wondering instead of you know how many speeches hes given on the minimum wage. You know how many times hes done that with the bully pulpit. Yes. Im just wondering if he had replaced that this is what i argued. Its not it doesnt do enough. It doesnt help enough. Its crumbs just as you said. If he had instead used a push for other things youre talking about, wouldnt that have been a more productive use of his time . And what do you attribute it to . Should i be cynical that its a purely political move to sort of pigeon hole the republicans . Why not do something thats significant instead of crumbs . Well, i think that part of his job is justice and part of his job as president is setting a baseline. We never like our president s. We like them before theyre president and after theyre president. We dont like them when theyre president. Speak for yourself. Let me check that box. And this morning well deal with a print issue. So to your point, what we will be announcing in operation hope today, this is going to help the president help america. Its going to help everybody. We need to return to an apprenticeship generation. What im calling for is a bminus group. The kids with ds, cs, and fs, we want them to aspire to get a bminus. If they do that ill give them a business internship right out of school. And for 500 bucks well give them a business suit a business card, transportation and food money for six weeks. If a kids works at squawk box or ibm or google or wherever for six weeks, the kid will change the business and the business will change the kid. And that will connect education with aspiration, give the kid a reason to go to school. For 500 bucks we can do that per kid. That means the little barbershop can have the internship. Or cinnabon can bring on 200. I think that helps the president say yes to something thats more aspirational. He needs our help. One final question for you which is about technology. One of the things we worry about is technology is going to displace workers. Where do you stand on that and what do you do about it . I think that were human beings not human doings. Were spiritual beings having a human experience. We cannot displace the fact that behind apple was steve jobs a Small Business owner at one time. So i think technology the internet is a new tv. And the tv was the new radio. And the radio was the new morse code. You know . We cant overestimate it. It will be transformational. If we overrely on it. Americas magic salts will die. Weve got to believe in our people. Thats why were in with Frederick Douglass started and put a thousand in these bank branches. John bryant, thats a great message. Also i need to say i misspoke when i introduced john i mentioned Warren Buffett. Freudian. It was not. I said he thinks theres going to be less employment. And you say we worry about but you worry about. Weve had tech visionaries on here saying theres always been this disrupt of progression. It never displaces. Im not alone. When we come back well also be hearing from the ceo of lamborghini. Plus nasdaq 5,000. Well talk to Rick Sherlund. Also David Rubenstein is our guest host. Squawk box will be right back. [ male announcer ] at northrop grumman, we know in the cyber world, threats are always evolving. At first we were protecting networks. Then, we were protecting the transfer of data. And today its evolved to infrastructure. Finance. And military missions. Were constantly innovating to advance the front line in the cyber battle, wherever it takes us. Thats the value of performance. Northrop grumman. The nasdaq hitting 5,000 for the First Time Since the year 2000. Segment revenues for cmgi rose 2,150 . Erin brockovich was tops at the Box Office Last time these levels were here. Trip down memory lane and a look ahead coming up. Plus are Flight Systems in danger because of Cyber Attacks . Why air Traffic Control may be vulnerable to hackers. And legendary investor David Rubenstein is finding value in one of this years hardesthit industries. Takes a lot of brains to do what we do looking for a way to make some dough for you. We do it all. So pick up the phone and give us a call. Why carlisle is putting more money in the sector that burned them in the Fourth Quarter. The second hour of squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box here on cnbc, first in business worldwide. Im becky quick along with joe kernen and andrew ross sorkin. The tech rally. The nasdaq closing above 5,000 for the First Time Since the year 2000 and only for the third time ever. Now 8 to go to get to a record close. Dom chu will join us with a look at the giants in the nasdaq. In other technology news, google planning to build a small scale wireless service. And a big move for gas prices on the west coast. The eia is reporting a spike of 37 cents a gallon for the week that just ended. That gets us up to 3. 12 on average. Thap is the largest week to week includes. Lets check out the u. S. Ekquity equities at this point. The dow closed at a record level yesterday. S p futures off by 4. The nasdaq down by 9 points. Best buy is posting results. I love this. You know what . Lets get them all. The net number it started with 1. 46. Adjusted 1. 48. Luckily theyre all within a couple of pennies of each other. 1. 35 was the estimate. Whichever one you use, either adjusted or continuing of 1. 47 probably. Its above. Revenue, though is just below. 13. 345 was the estimate and the company talked about 14. 21. Pretty interesting, though considering the company does 9 billion in the april quarter. Around 9 billion in the july quarter. Around 9 billion the christmas quarter. So this is obviously the most important number. Looking at Comp Store Sales in the Fourth Quarter rose 2 . The company is also declaring a special dividend of 51 cents cost 180 million to do that. Another billiondollar share of purchases over the next three years. It was weakness in the tablet category that the company is talking about. And ill put all this together. Stocks now trading up. The bid is 39 a share right now. 51 cents a share because of proceeds from a legal settlement. Its not something theyre necessarily going to do often. They also are raising their Quarterly Dividend to 23 cents a share. That is. Thats a huge increase. Its not a yield stock necessarily, but its a 2 yielder now. That will raise it to about a 2. 5 yielder which is not bad. As we mark the nasdaqs long and very strange trip back to 5000 were finding out not all giants of the nasdaq are giants today. Dominic chu has the list of leaders then and now. There is one company thats a constant here, but lets make the comparison. Back in march 10th of 2000 thats when it hit record closing highs. Were trying to get to those points right now. But if you look at the stocks that made up the top three in the nasdaq back in that particular time frame, back in march of 2000 theyre names were all familiar with. Large Cap Technology names. Intel back then worth 400 billion. Cisco 467 billion. And microsoft, 526 billion back then. These arent the record highs for each stock. Rather where they were in terms of market value on that day march 10th of 2000. If you look at microsoft, its peak was back in 99. It was worth over 600 billion back then. Those arewere the top three. Its not that different. Microsoft is still in the top three in the nasdaq of today. Worth 360 billion. Google, 381 billion. So one internet giant that wasnt around as a Public Company. And then you have apple. We know how much its worth. Today 748 billion. It was pushing 770plus at one point. The comparisons are always going to be difficult for a lot of our viewers out there. If you look at the inflation adjusted numbers, if you cant compare microsoft today. Microsofts peak back then if you adjust for inflation was somewhere around 800 billion or something more. Again, these are not apples to apples. I know you look at this all the time. You look at the way these companies are structured, large Cap Technology is still very much a driver of todays nasdaq much like it was back in 2000. Back over to you. Dominic, you remember a guy named Rick Sherlund . This guy was if you could get Rick Sherlund on to talk about microsoft, it was like having bill gates on. I think sherlund knew more about microsoft than bill gates, actually. During that time i was just starting my career on wall street back in 99 and 2000. So a lot of these names were very familiar only because i was just so in tune with what my new career was going to be like. Of course it was at the height of the dotcom boom. Thanks dom. Lets bring in Rick Sherlund. A software analyst, head of the u. S. Tech research team. He joins us to look at the differences in the dotcom bubble. Also with us is our guest host for the next two hours, David Rubenstein rubenstein. Chairman and ceo of the carlisle group. Youll be with us for awhile. It is more justified in your view at this point, rick the 5000 . More underpinnings in terms of results . I think there are four big differences. First theres a massive difference in valuation. Nasdaq was selling for well over 100 times earnings in 2000. Its now about 23 times. Interest rates are very different, markets dont usually end because they have a long duration. They end because the fed forces the rates higher. So weve had a long market and its done well. Absolutely. But valuation underpinning looks very different. The composition of nasdaq is very different. We had seen over 600 ipos in 99 and 2000. We saw a little over 50 last year. Companies are largely cash flow positive now. So the Balance Sheets are very different than they were. Theyre not so much concept stocks. Youre not getting the day trading we saw last time. Youre not getting stock tips from cab drivers. The fact theyre asking the question is a healthy sign i think, that the individuals are a little skeptical about the market and not the hype that we had seen last time. I want a cabbie to give me a stock tip on uber. That might not happen. No. Or hotel on airbnb. Did you mention ipo dzs i cover the cloud area. The Computer Software service names. So i got stocks that sell at ten times next years revenues. Most of them are cash flow positive at this point. I think theres a point to the private market that will book early and recently went into potential bubble characteristics and the private market. Youve got some mutual funds investing. So companies dont just go public as quickly as they did before. You might know about that. We have about 75 companies today with a billion dollars of value that are not yet public. Thats a high valuation. Whether they will go public or not, we dont know. Valuation is 30 billion for uber is high for a company thats not public. And as you pointed out, a lot of the companies that didnt used to invest in preipo companies are now investing. Thats what i wanted to get at. When you think about blackrock getting into uber or you guys all of a sudden the pensioners and people who have 401 k s and stuff like that are in this stuff in a way they didnt think they were. Thats true but so far its worked out reasonably well for them. Most of the Companies Getting ready for ipos and going public are much lower valuations than before. That was not the case in 2000. Also point out the 5000 inflation adjusted it would be about 7000. We did mention that earlier. What about valuation on 40 billion for uber. Thats what we were talking about earlier. It does seem high. But remember a lot of people thought facebooks valuation before it went public was high. And it was much higher than that actually. So a lot of people have made money on Companies Like facebook before they went public. Now people feel that investing in these companies before they go public is probably a good bet. When the first one of these goes bad and people lose money, then it will change. Right now theres a feeling i think in the market that these are pretty good bets. When you take companies that are known around the world, people feel these are not Just Companies that will go overnight down. So uber or airbnb have real earnings and devoted followers. Do you think, rick that theres any correlation . Finally microsoft, finally. How long did that just build a base. Ten years maybe . The stock. It peaked at six times earnings. He hit a price of almost 60. Its at 43 now. But microsoft is fundamentally a different company. It missed the cloud. It missed social. It missed mobile. So its business is more challenged than when it was a monopoly. And 15 years ago juxdge action wanted to break it up. Farce is the leading tech names, youve got google and facebook selling at 20 times earnings now on the internet side. Cute little sock puppet identified what was going on back then. It was about eyeballs and cliques. Now we see companies as david mentioned that are much more seasoned by the time they hit the Public Market. So i think for microsoft, oracle s. A. P. Apple, you look at Tech Companies and if theyre at multiples thats high to a lot of the universe. Now Everybody Knows them. Its just different than before. Used to take about five years. Now its about ten years on average. These companies are much more mature when they go public. We have the pets. Com founder joins us tomorrow. Thats fun. I was going further back. Do you remember when he was at goldman . Absolutely. You were able to do all the banking business and do the analyst work at the same time. Right . Yeah. In the 90s hes no rubenstein, but youre i mean you did very well back then. I thought you had as much money as ballmer at win point. No joe. Close though. Now, those were some heady times. Yeah. So i passed on the internet space. My colleagues did internet. I stayed with enterprise software. I was involved in the ipos of many of the leading Client Server software companies. Its all about the cloud today. But there was a wave of ipos because it was a platform shift from main time frame to new Client Server Companies Back then. So it was a very exciting time for the market. Those companies of course didnt get to the valuation levels a lot of the dotcom Companies Got to. But they participated in the froth you saw associated with the bubble as well. I would say microsoft, sometimes when you have a near monopoly, your company falls apart. Microsoft has reinvented itself and has a high market capitalization and still a successful company. Even though its had to lose a lot of its monopoly power in the pc. I think its done a pretty good job of reinventing itself. Is it hp . Probably. Compact, hp. Okay. Anyway, you punted on my question how great it is to be an analyst and banker at the same time. I think we did a good job drawing a line between the two and preserving credibility. All right. I wasnt saying you didnt do that. Take it easy. All right. Thank you, rick. Thanks for coming in. We appreciate it. David will be with us for the rest of the show. When we come back coming up were going to talk more to our guest host David Rubenstein. He says energy is a great investment. Well get his thoughts on the drop in oil. Then were going to talk nasdaq 5000 with bob davis. Plus the next tech friends. Ben lerer. And at the top of the hour youre not going to want to talk about this. Weve got an interview with fcc chairman tom wheeler. Were back in a moment. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. So whats going on today . News alert message email calendar update most of us admit to being overwhelmed by information at work. Thats why ibm created verse. It uses powerful analytics to uncover hidden patterns in your email, calendars and social feeds. It continuously learns how you work. And helps you prioritize the people and projects you need to focus on. Theres a new way to work and its made with ibm. Welcome back to squawk box, everybody. Weve been watching shares of best buy this morning. Getting a boost after the retailers earnings came in better than expected. The company now announcing a special dividend of 51 cents a share and raising its dividend regular dividend by 21 . And the downturn in the Energy Sector late last year hitting a number of private equity firms with exposure to oil and Gas Companies created distressed Debt Opportunities at the same time. Lets jump on that topic now with our guest host David Rubenstein. You had some energy. Weve been a long Energy Investor for quite a while. So you had it killed on one side of this. I wouldnt say killed. Its part of our legacy business being relatively small in energy. Now weve got about 9 billion to deploy. Were happy with the lower prices. When prices are down about 50 in the peak you can buy things at lower prices than you could before. I think it will come back. Probably two or three years it could not happen overnight. We have a longterm perspective. Your longterm perspective is two or three years on this. We actually hold on your companies for six or seven years. When you think about the price, what do you think the price will be two or three years from now if thats how youre looking at this . I think it will be higher than it is today. But every time i ask an Energy Expert, i wouldnt say im an Energy Expert they say know dont know. Nobody predicted what was going to happen. If you ask them to predict a year from now, theyd be the same. Is this an issue where you have to pick your places . We spoke with Warren Buffett yesterday. He recently sold out exxonmobil shares. He thinks he can take that money and better deploy it. Im not going to say Warren Buffett doesnt know what hes doing. He certain i did does. In terms of exxonmobil thats different than companies were investing. Were investing in smaller companies. And were making investments around the world. We think investments outside of the United States are also very attractive in the energy area. Energy infrastructure very very attractive. Buying some Distressed Energy will be attractive. Thinking about fire sales. Some of those. The great fortunes are usually made when prices are low. Its not when you buy at the top and think theyll get higher. Prices are low and thats where you make a lot of money. If you wonder about demand you think everybody in china is going to buy a car eventually. But then going to 30 miles a gallon. You think about all kinds of Disruption Technology that may not make demand grow as quickly. You may need to cut back and not have as much activity. If we keep cranking it out, supply might continue to rise. Populations are going up. I know. Thats been the longterm story. We should have never caught up with demand. Its amazing whats happened in e the last five years. Its amazing we have added 9 Million Barrels a day. And as they become bigger and bigger they will become bigger and bigger consumers. I dont know if theyll get there right away. Get any of these guys on here, anyone will tell you what you just said seems to be the conventional wisdom. If youre competing for assets that are supposed to be distressed, theyre not really selling at distressed prices. If Steve Schwartzman and Henry Kravitz were buying things only in new york city maybe youd have a good point. But its a Global Investment world. Its a big world to investment in and we dont have that much money to invest relative to the opportunities. In terms of the distress do you claim is there any value in waiting . Well theres always value in waiting. Right. The question is do you think weve hit the bottom . I dont know. But i think generally when you wait to hit the bottom you often miss it. When you say im going to hit the bottom it goes past you. And i think youve made a good investment even if it goes lower, it will probably come back up. And some things are beyond your control. We dont really know what Government Policies are going to be in russia or other things. But still i think energy is something we have to live with. More focused on natural gas or oil. I think Renewable Energy is a great thing and we might get to heaven quicker by investing in it, but its not clear youll make money in it. I think this will be one of the great areas to invest over the next ten years as it has been for years. Tough to make money in some of those things. We dont like ever talking about picking bottom. Never. Coming up a warning for the faa. Why air Traffic Control systems may be at risk for hack attacks. Thats nice. But first new data on the worlds most expensive and cheapest cities. Plus judge judy cashing in. That story next. Over 20 million kids everyday in our country lack access to healthy food. For the first time American Kids are slated to live a shorter life span than their parents. Its a problem that we can turn around and change. Revolution foods is a company we started to provide access to healthy affordable, kidinspired chefcrafted food. We looked at what are the aspects of food that will help set up kids for success . Making sure foods are made with high Quality Ingredients and prepared fresh everyday. Our collaboration with citi has helped us really accelerate the expansion of our business in terms of how many communities we can serve. Working with citi has also helped to fuel our innovation process and the speed at which we can bring new products into the grocery stores. We are employing 1,000 people across 27 urban areas and today, serve over 1 million meals a week. Until every kid has built those lifelong eating habits, well keep working. Welcome back to squawk box this morning. The worlds most expensive city. Can anybody guess what that might be . Singapore retaining that title for the second straight year. Thats according to some new data from the economist. Rounding out the top five paris, oslo, zurich and switzerland. The cheapest city karachi, pakistan. There you have it. Judge judy is one of the highest paid personalities on tv. She solidified her superstar status with a contract extension with cbs that extends through 2020. The judge made more than 47 million a year under her previous contract. Thats in the previous deal . Yeah. This time her deal includes a production component. So that could be better for judge judys queen bee productions. I think thats amazing. Its the of her personality. Shes a trip and its somehow worth 50 million a year. But youre okay with this . Im okay with this. But not for ceos. Its a market. But not for ceos. Its a market for the ceo too. Like pitchers. Its okay. But not for ceos two or three is the market cap. Thats no what i said. In a market where youre getting there. Cheers. Thank you. You wouldnt be in favor of that either. When we come back this morning, an internet pioneer on the nasdaq well talk to him about the return to 5000. Former ceo bob davis joins us next. As we head to a break, heres what pimco founder bill gross said about hitting nasdaq 5000 yesterday. Its a landmark number. I think it reflects some overvaluation in terms of nasdaq types of stocks. A little bit of a bubble. Not the same bubble as in 2008 or 2000. But certainly an overvaluation that might at some point be corrected. At mfs, we believe in the power of active management. Every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. Which leads to better decisions for our clients. Its a uniquely collaborative approach you wont find anywhere else. Put our global active management expertise to work for you. Mfs. There is no expertise without collaboration. Why do we do it . Why do we spend every waking moment, thinking about people . Why are we so committed to keeping you connected . Why combine performance with a conscience . Why innovate for a future without accidents . Why do any of it . Why do all of it . Because if it matters to you its everything to us. The s60 sedan. From volvo. Lease the wellequipped volvo s60 today. Visit your local volvo showroom for details. Welcome back to squawk box this morning. The last time the nasdaq was above 5000 it was the year 2000 and destinys child topping the charts with say my name. Well talk to bob davis in a moment about the comparison between the tech rally going on now. Macau gaming revenue slumping a record 49 last month. That drop happening. And take a look at retailers beating the street. Best buy announcing a special dividend of 51 cents a share. We should also tell you about two senators raising the alarm of hacking vulnerability to americas aviation system. Senators bill nelson and john thune warning that weaknesses that weaknesses in the faas networks could put Traffic Control systems at risk for Cyber Attacks. They know this because of a january report from the Government Accountability office. Its a huge concern and obviously for anybody whos on the plane today thinking about these things, too, not exactly what you want to think about. They will be calling the transportation secretary to testify in front of them. Its been a long road back to nasdaq 5000. Since the year 2000 weve seen the apple boom the rise of facebook and social media and the markets suffering a major crisis. Before all that in 1995 a Search Engine with lycos was one of the leaders of internet and search. Bob davis founded the company with 2 million. It would then become the fastest ipo in history. By 1999 it was one of the most visited sites on the world. And in 2000 lycos agreed to be acquired by terra networks. Bob davis left in 2001 were high land capital partners. He joins us with his perspective this morning on this long trip back. Its great to see you today. Thanks for joining us. Good morning. Its great to see you. How do things feel this time around when we hit 5000 . Im wondering if theres any possibility you could cut me in on the judge judy deal you were talking about . That sounds nice. If we could get our hands on that we would too. The nasdaq is better than it was back then. The names are all different. You have Companies Like facebook that didnt exist in 2000. We have a very very different appetite, i think, in the marketplace today. And what were seeing in the companies that are out there for the most part really based on real revenues and real earnings which is a different phenomenon than we had in 2000. I jump back when lycos was a Public Company. Fortunately we grew into our valuation and became a real company with earnings and revenues. At the time we went public we had less than a Million Dollars in accumulated revenue. That just wouldnt happen today. You wouldnt think of seeing Something Like that today. Did you know at the time its really easy to look back and say we were all crazy but i remember the mania at that point where people thought it doesnt matter. You can just look and build these things. And eventually the numbers will catch up. Did you recognize at that point that it was maybe a little bit of a mania . Yeah it didnt seem real. That was one of the principle drivers to why we sold the company when we did. We missed the peak of the bubble, but not much. It traded down right after that. We announced it at the peak of the bubble. It didnt feel real. Opposed to today, today it does feel real. You can argue any given day is valuation right or wrong, maybe its a little high maybe its a little low. But it doesnt seem out of whack. You compare it to 2000. We had a revenue multiple on the market today at about 100 times revenue on the stock. Today its about 30 times. We had a pe multiple back then that was im sorry, that was a pe multiple. We had a revenue back then that was similarly high. Bob, one of the things weve been talking about is how average investors feel about it. 15 years is a really long time to get back to 5000. David rubenstein pointed out if looking at inflation terms, the nasdaq should be at 7500 just to get back to that point. Do you think average investors will burn so badly so the young people dont want to come back into it . No i dont think theyre looking at it. Its a different market we have. As i said companies are out there based on real earnings and real opportunity. You look at the businesses that are exciting today, its different. You look at the top five nasdaq company, the only one thats in there in 2000 is microsoft. So its become a very different scenario. And the companies by the time theyre becoming public today achieved a different level of accomplishment. What i do private markets are Financing Companies to such a significant level. Companies like uber that you look at today with an excess of a 40 billion market cap, private company, that wouldnt have happened in 2000. They would have been a Public Company in the blink of an eye. It would have happened very quickly. So its become something very different today. In fact, if you look at a lot of the real Success Stories that didnt exist back then. Twitter didnt exist in 2000. Facebook didnt exist in 2000. Google wasnt public at that point. Google was a year and a half old as a business at that point in time. It was all very different. As i said if you look at the pe multiples that were seeing today versus 2000 or for that matter, the revenue multiples were seeing today, theyre just very different things. The companies are far more fairly valued in terms of what were seeing in the market place today. The market, you got to give it credit for recognizing the potential of the internet. The internet incubator, i dont know how much that was. I sure do. It seemed like that was the wave of the future. Unfortunately not the companies that were going toic ta us there. You just had to have the word incubator in it. But the market was right. We had no idea the internet was going to control every aspect of our lives. Unwith of the changes that occurred is in the old days 15 years ago, if you needed liquidity, you had to go public. One way to grow your company. The Venture Capitalists didnt have as much money to feed these companies. And also you had to go public to get money. Now there are a lot of people who will give you money preipo. And theres liquidity in that market. So you can sell your shares preipo which was done with facebook and others. Thats a common thing now. The whole thing boggles my mind. Ive been watching older shows. When they have flip phones it was like when was this made . It was only four or five years ago. Its like they dont have iphones. When was this made . Every person on sons of anarchy would have an iphone now. What are those Little Things . Thats only four years ago. If you extend that out and look today at the wall street journal publishers list of the 71 most highly valued companies theyre private. That wouldnt have existed. There would not have been a single one of those in 2000. They all would have been public. If you look at the 70plus names today, i think its a safe bet. I dont think any of them existed in 2000. But when they hit the market, the difference today versus then. That theyre really qualified solid businesses that have real metrics underneath them. And that was a different game in 2000. I mean you look at the companies that were seeing public offerings, a web van that was ultimately bankruptcy at the time of its ipo had total revenue. And 96 million on accumulated loss. You compare that to apple today and they earned earnings of 75 billion in the last quarter alone. So we have real substance underneath it today. I dont think its unreasonable to look at nasdaq and say we could have a market of 10,000 or 11,000. Now as quick as i say that, the market will come crashing down. I dont think by todays standards thats an unreasonable expectation. Nasdaq in 2000 had about 80 of its companies were Tech Companies. Now its 60 . But its not only a Technology Oriented exchange. And the numbers on revenue we think were this. In the year 2000 when Companies Went public they were trading at 31 times revenue. Now its about six times. Why did you choose nasdaq . Our cfo at the time had previously been the cfo of nasdaq. But most of the Investment Bankers didnt honestly say it made that much difference. Much cheaper. Well, the fees were cheaper. But relative to the amount of money were talking about, we thought the services wed be provided by nasdaq were different than what were happy. Hey, bob, want to thank you for joining us today. Always appreciate talking to you. Its always great to see all of you. Take care now. What happened to the remember b 2 b . Who dominates that now . Must be a big company now. I dont know. In the old days they told me this is the last line of the internet world and it was a way to get things to your house. And it was the last line of the internet. It was basically people on bikes taking things around manhattan on their bike. That was a hightech thing. Look, i think that the world has changed a bit. But mostly its because these companies today are really part of our lives. Before they werent. The power in the world in the United States has shifted. It used to be the power was in new york city the money. And washington political power. Now the power has shifted to Silicon Valley. The politicians go to Silicon Valley. And that rings true to what weve seen with the regulatory debates and whats happened with Net Neutrality. Whats the internet of things going to mean. Five years from now were going to be talking about the same way i just talked about flip phones five years from now. The internet will change things so much. Wearing a timex watch. If i lose it its 19. Jeez what if you had to replace an expensive watch on only 8 800,000 a year . I appreciate it. I like it. Sure you do. Okay. Up next were looking ahead in fact, you should have a disposal none of your business. Next big thing in tech. Ben lerer and his father have invested in 185 startups and have stakes in buzzfeed. And ben will join us next with a look at whats next on the horizon. Hey mom, you want to live by the lake, right . Yeah. Theres here. Did you just share a listing with me . Look at this one. Its got a great view of the lake. Its really nice mom. Your dad wouldve loved this place. Youre not just looking for a house. Youre looking for a place for your life to happen. Zillow you just got a big bump in miles. So this is a great opportunity for an upgrade. Sound good . Great. Because youre not you youre a whole airline. And its not a ticket youre upgrading its your entire operations, from domestic to international. Which means you need help from a whole team of advisors. From workforce strategies to Tech Solutions and a thousand other things. So you call pwc. The right people to get the extraordinary done. Todays new tech star todays new stars of tech rb, rather are companies will revenue to back it up. Here to walk us through the next step of landscape whos im having a tough morning this morning. Ben lerer, hes the managing director of lerer hippo ventures. Thanks for having me. We keep talking about the valuations of this stuff. Especially the content companies. What content companies do you think has crazy valuations . Buzzfeed. I dont know. Vox. I know youre conflicted. Yes. Buzzfeed i think is a very special case. I think they have an opportunity not to be just sort of viewed as a competitor to the New York Times or media potentially could be looked at as more of one of the social media platforms. I think their motto also enables them to start to let advertisers selfserve down the line which makes this a much bigger business than it looks like. So its not just about content. Theyre not a content creator . No. Theyre a Technology Company at their core. Theyre about data. Theyre about engagement and distribution. Havent all these decided theyre pretending their Technology Companies now . I dont think all of them are pretending. I think lots of them are, absolutely. But buzzfeed is not a pretender. I think at the platform you think its a technology masquerading as a content company . I think so vox is much more about a content company than technology. But they have technology that enables them to distribute more effectively. And therefore have a leg up when theyre competing with traditional Media Players as they go digital. How about vice . Vice is an interesting one. I think vice is much less of one. Using digital to build a brand. This is something my dad talks about. 30 years ago you can build a brand in 30 years. And ten years ago you could build a brand in ten years. And today you can build a brand overnight. Vice has done a really good job building a brand with marketers incredibly quickly. They dont have a huge owned and operated audience. But theyve done a great job using traditional monetizization. Now as they think about going to tv as they think about their International Licensing business they use old school monetizization to build on the back of a brand theyve built. Im trying to figure it out. Do you think were in a bubble or not . I dont think were in a bubble and i think youre talking the companies youve mentioned now i think are special ones. I think theres a tier of companies that are sort of aspiring to be there that are overvalued. So companies raising it 200 million on an idea that they are going to figure out how to monetize. Theyre sort of rapidly growing audiences. I think those companies have all done a good job monetizing. So i dont think those are good examples of bubble. Do you think when we talk about bubble you know we talk about the nasdaq and where it is now. We think to say thats a Public Market. The private market has become a Public Market. Its definitely theres definitely a lot more sort of scrutiny and a lot more coverage that these private companies are getting today. Everyone is really focused on them in a way i dont think used to be the case. But itll be interesting as some of these companies do go public. And itll be interesting to see how that sort of goes and how the company gets treated by public investors. But thats a company that people love. And i would see that stock performing really well out of the gate. We teased the viewer at the beginning of this that you can tell us the next big thing. Whap is the next big thing . I focus a lot of my time also on commerce businesses. So ill give a shoutout to my guys at kas per. I dont know if youre familiar with it yet. Its a mattress company. Yes. Ive been seeing ads everywhere. The reason youre seeing ads is the business has extraordinary Financial Dynamics out of the gate. They have awesome margins. Its a king size mattress thats 950 a queen size thats 850 et cetera. And super transparent supply chain. How is that different from sleepies, or well and they deliver it i think. It was one of the creepiest experiences to buy a mattress. You went into a store and you laid down on this thing for ten seconds while some guy stood over you and youre like thats the one. And you wanted to leave because you were trying to negotiate and then the price got cut in half. Its terrible. And you cant actually like, buying a mattress traditionally is a terrible experience. What theyve done at casper is figure how to offer incredible level of customer service. You can have it for 100 days and return it for free. The margins again are awesome. Its growing. Its the one with the you know a box. Its in this box. Casper does. Coopermans and another one had a bunch of you know it was like not just a mattress company. It was the one where i think youve seen it where you pound on it and the glass of wine sitting there and it doesnt move or something. Therapeutic or something . You got to come back. It begins with a p i think. The mattress thing, it sounds interesting. I guess the only thing that really sounds appealing to me is you can return it for free for 100 days. They will accepted you a mattress and you can try it. Thats okay. Then they sell the ones that have been used. That will work for you. With the bedbugs. What happens to the beds after theyve been returned . Its my understanding that they donate them or chuck them. But theyre not reselling them. You can sell at a higher price . Only with my old mattress would we do that. Thank you b. Come back. Weve got to talk more. When we return this morning, well go behind the wheel with lamborghinis ceo. He joins us av this. Stick around. Squawk box will be right back. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Welcome back to squawk box. The worlds biggest automakers gathered in geneva and phil lebeau joins us with a special guest. Thank you very much andrew. We had a chance within the last hour to talk with stefan wink lman who is the ceo and president of lamborghini and always seems to top himself. This year he rolled out this vehicle. This is the new aventador. How fast . It can go 0 to 62 Miles Per Hour in 2. 8 seconds. If you want to press it and go up to 124, that only takes 8. 6 seconds. Top speed, 217 Miles Per Hour. They expect this to be a strong seller going into the market this spring at 350,000. If you have that much coin. And speaking of that he believes the market right now for these ultra luxury cars and lamborghini has never been stronger. This business is stable for us luckry its growing. Its growing around the globe. The biggest and strongest market is by far the u. S. Followed by greater china. Then comes the middle east. Then comes the uk germany, and japan. These are the top six. And these are the markets which we are relying on. But we have in the major regions. Things have never been better for lamborghini. Because joe loves it when i throw up these kinds of numbers. Coming off of record sales in the u. S. Look at the sales last year. Up 6. 7 . I know ferrari and porsche are at a lower price point, but look at the sales for those guys as well. Up 4. 5 for ferrari. And joes beloved porsche, 11. 1 . Again, guys its going to be here in the u. S. This spring. Thank you, phil. Coming up when we return, weve got a first on cnbc interview. Tom wheeler, the first since last weeks Net Neutrality decision. Back in a moment. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. 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. Start building your confident retirement today. 80 of the poor in africa are rural farmers. 96 of them are doing rainfed agriculture. Theyre all competing with each other; theyre all making very low margins making enough to survive but not enough to get out of poverty. So kickstart designs low cost irrigation pumps enabling them to grow high value crops throughout the year so you can make a lot of money. Its all very well to have a whole lot of small innovations but unless we can scale it up enough to where we are talking about millions of farmers, were not going to solve their biggest challenge. This is precisely where the kind of finance that citi is giving us is enabling us to scale up on a much more rapid pace. When we talk to the farmers and ask them whats the most important thing. First of all they say we can feed our families. Secondly, we can send our children to school. Its really that first step that allows them to get out of poverty and most importantly have money left over to plan for the future they want. March comes in like a lion for the nasdaq. Well go back to the bubble with scott mcneilly. Is the rally really different this time. Plus tunnel mystery solved. Its more of a man cave than a terrorist threat. Well dig into the details just ahead. And super cars for the super rich. A look at what ferrari, lamborghini have to offer when it comes to speed and luxury. Were all revved up for the final hour of squawk box which begins right now. Live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box, everybody. This is cnbc first in business worldwide. Im becky quick along with joe kernen and andrew ross sorkin. Check it out. We could have a new rubiks cube world record. He solved five and did it all with only one hand. We have that story coming up in just a moment. I could never do that. I used to peel the stickers off and try to put them back on the other side. But first before we get to that lets tell you what were watching at this hour. The nations automakers reporting today. Looking for signs that the Winter Weather could have hurt results. Also target will meet with investors this afternoon. The retailer is expected to revamp its business to focus on younger shoppers. And Pay Attention to the situation in europe this morning. Mixed reports on whether the eu is now considering a third bailout for greece. We will see where that goes. Earlier today we took a look at the greek market. It was trading higher up by about. 75 . Were less than 90 minutes from the opening bell on wall street, if you want to see where were at, check it out. There are some red arrows. The day after nasdaq hit 5000 for the first time in 15 years. The dow down 53 points. The s p futures down by 5. 5. And if you check the markets at this hour, still looking at greece in positive territory. Up close to 1 . Modest declines in france germany, and london. Tempurpedic bought sealy. But remember they were flipped and bought and flipped and bought. The mattresses. They had some therapeutic thing. Not just getting it quickly. Thats the one you can really push down on. And the wine stays. If you want to know why we are talking about mattresses, you should wake up earlier. Its just 15 minutes ago. Talking about casper mattress company. But lets talk about what it says here is the buzz story of the morning. Hillary clinton. The New York Times reports she used a personal email account to conduct official government business when she served as secretary of state. Federal rules require that correspondence be retained for the agencys records. So clintons actions could be in violation of regulations. We have david here. Did you get did she email you from her Gmail Account or how did that work . Were not worried about benghazi anymore, but her email we stated in the last hour this is a big deal. You said everyone does it. I think theres a bigger story here. I do think that i think a lot of government officials use separate Gmail Accounts that they claim are personal and end up conducting official business on it to the extent for somebody who cares about the archives archives, he cares about the National Archives of the country, do you want to keep and store the email sfs. I think all her emails will be subject to being collected. She was sending emails to people who work at the state department. So they would be there. But she never even had a government email address. Did lois lerner use a personal how did we lose all of hers . Do you remember . Has the times looked into that . I believe they looked into that. Please. Do you have one email . I have many email addresses. I have nbc email addresses, New York Times email addresses, gmail addresses. Total shell game. Youre not going to pin him on anything. I have one. I have a hard time doing one. I only have one and its a business one. Whats on there . Thats what i mean. Our guest host this morning as we well weve just been speaking with him. So hes here. David rubenstein. The coceo of the carlyle group. Is there anything that we were supposed to cue you on today . Not that im aware of. In our world we have to keep our emails really very five years. And then really keep them for ten years. So anybody that comes in like the government can come in and get the mails. Its great for the government to look at your emails, not great for us. But thats the law. Weve talked about schwartzmans what was it 690 million, god bless him. But it begs the question about is it fair do you really have skin in the game. What if the president the president at this point is considering executive action in terms of the irs. Do you think that would work if he said carried interest through executive action is illegal . I dont know. Im not an expert in that area. But most of the compensation that i make is actually by owning dividends in the company. So my compensation is 250,000 a year. I probably make less from my employer than you make from your employer. Most of mine comes from dividends. Okay. Then talk about someone besides yourself that does benefit from carried interest. Why are you saying you dont benefit . Yontds why youre not saying you dont benefit from carried interest . I didnt. Im saying my compensation really comes from the dividends that my company makes. Or from personal investments. You would benefit more from carried interest than anyone else traditionally. Its a publicly traded company. Thats how im benefitted. In personal investments in my companies. That has thats not carried interest. Your real question is is the president going to be able to change carried interest through executive action . I dont think thats what he was talking about. In part because its not going to be real revenue. Its a modest amount of revenue for the country. I think if you taxed or changed carried interest when you pick up 3 billion over ten years, its just not major source of revenue. Thats probably true. So youve got a portfolios of companies you watch. Is this is 3 economy gdp in 2015 . I think most people would say its close to 3 . Our numbers would say maybe a little bit lower than that. Much better than japan. Much better than europe. I think the big delta in the Global Economy is europe. People dont know whether its going to be a positive or negative this year. I think we know where chinas going to be. We know where the United States is likely to be. But we dont know where europe is going to be. Thats the big uncertainty. You are close at times to this administration. Do you think theres a deal for Corporate Tax reform in there somewhere . I read this today that theyre thinking about raising taxes and closing loopholes without anything on the other side. And it makes me think if youre actually thinking that way, youre not going to have Corporate Tax. I think the republicans in capitol hill they want Corporate Tax reform to have revenue neutrality. Is that like interNet Neutrality . Well its different but same concept. Its always good if its neutral. The democrats would like additional revenue to use for other purposes. I dont see a compromise being achieved. I dont think the administration is going to push so hard for tax reform that it will clearly get done. I think the highest priority is probably the trade agreement or other kinds of international agreements. I dont think its going to be international reform. I think its likely one of the trade agreements will get done. I think the asian one is more likely than the european one. But i think getting two or three of them done is very difficult in this congress. Which you mean republicans would democrats are proposing it. Republicans havent seen the details yet. Assume theyre acceptable to republicans, a lot of democrats dont want this. So far we havent seen the president put it on the table. Its not resolved yet. When you know what the details are, you have to lobby. It has to go through both houses. When its all said and done is there a reason the democrats do they have a good reason for not wanting to go forward with trade . Was nafta a bad thing . Was it exporting jobs . You have some allegiance to this party. I think the fear is it will take jobs away. Is that true . Dont we know from previous trade deals . My own feeling is im protrade agreement. I think this would be good for our country and economy. Some people have different views. Thats for sure. And the president gets attacked from the left on this. He does but thats not the principle concern he has. I think the principle concern he has is he has to get an agreement before presenting it to congress. You have to get two things done. Get the agreement approved and presented but trade authority as well. You cant have amendments on this. You have to have the ability to make sure theres no amendments. Then the agreement has to be approved. Last i heard, harry reid wasnt going to bring it up. The agreement hasnt been surfaced yet. We dont know what it is. I think people would decide. I think so trade agreement will probably get done. One of them will probably get done. I dont think tax reform will get done. I dont think immigration will get done. I dont think theres going to be any other major legislation of the type that would transform the economy. Nothing like that is going to get done for the congress. Does it matter . I think the main game in washington is not the congress. I think people have recognized that the main game in washington is the Federal Reserve. And thats really where the action is going to be this year. The executive branch some things happening there still. Yes but in terms of the economy the main thing to affect the economy is what the Federal Reserve does. It appears to be the will to still look at for further executive actions they havent thought about yet that they might be able to do. I think the whole were going to talk to tom wheeler, the fcc commission per. Didnt half an eyebrow come up the way that came down . Wheeler seemed to be 180 degrees away. The president says i like to do it this way and six weeks later theres a rubber stamp on that. Didnt that seem a little strange . Tom can speak for himself, but usually president s dont get involved and say what they want independent agencies to do. Sometimes they do and this is not the first time its happened. When was the last time . Well its happened in many cases in the s. E. C. And ftc when the president s have said they think this would be a good way to pursue policy. This wasnt a specific case. It was really a policy. So its not unusual far president to say heres what the policy should be. Well see. We will ask him at some point. I think hes coming up in just a bit. Couple minutes. David rubenstein is our guest host and he will be with us the rest of the morning. When we come back this morning, the canada cave mystery solved. And the nasdaq back above 5,000. Well take a look back at the go do days of crazy valuations and how the index stacks up now. Squawk box will be right back. At mfs, we believe in the power of active management. Every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. Which leads to better decisions for our clients. Its a uniquely collaborative approach you wont find anywhere else. Put our global active management expertise to work for you. Mfs. There is no expertise without collaboration. Welcome back to squawk box this morning. Take a look at the futures right now. See how things are setting themselves up on this morning. Youre seeing the dow look like it would open down 57 points. Nasdaq off as well about 12 points. But make it a little hard tore make it to its alltime high. The s p 500 off about 6 points. Also remember the mysterious cave found in toronto that had investigators worried . Well, two men in their 20s dug the bunkerlike tunnel as a man cave. It was a hangout for them. The tunnel was dug near new york universitys campus and a major tennis venue thats set to host the pan am games. It turned out it was just a couple of guys that wanted to hang out and drink some beer. In a hole in the ground. Thats weird. It is weird. Totally weird. Chrysler is reporting a 5. 6 increase in february u. S. Sales. The automaker had its best february sales since 2007 however the increase was below the edmunds estimate. Now we are going to talk about Net Neutrality. One topic on everyones list is of course the fccs ruling on the new internet rules. And our own jon fortt is there. He joins us now with tom wheeler in his first tv interview since the fccs decision last week. Jon . Thanks andrew. Lets get right to it. Chairman wheeler, thanks for joining us. Great to see you. You were against using title two rules to regulate the internet until after the president came out and said i would really like to see the strongest rules available used to regulate the internet in essence. It certainly looks like you changed your position because of the pressure that the president added to. Is that, in fact, what happened . Your assumptions are wrong. Your facts are wrong. Ive always been for a strong and open internet. And over the summer the original proposal we put out asked questions about title two, but also proposed another approach. And over the summer i began to realize that that approach was not leading us to the right answer. And the reason was that it was saying that there should be a test of what is commercially reasonable to determine whats fair on the internet. And as i met with consumers and innovators from around the country, it became clear that that concept of commercial reasonables could be interpreted as whats commercially reasonable for the Internet Service provider not for the consumer and not for the innovator. So over the summer i started then going to the other alternative that we had proposed. We asked questions on in the rule. And that was fielt two. And began to develop multiple ways of using title two to address this issue. Okay. So you werent against title two to begin with. You just hadnt settled on that. It was one of the mir i cant do of things we were looking at. Let me ask about competition. What i hear from a lot of people even in Silicon Valley is what the real issue is here is the fastest broadband speeds arent more than one provider in so many local markets. I know youve got some provisions in another ruling that opened up municipal broadband. Thats incredibly important. What else should you be doing . Is there more in this Net Neutrality proposal . You just asked a key question. Theres two components of Net Neutrality. One is making sure the internet stays fair and open for innovators and consumers. And the other is to make sure that those building the networks have the capital, have the revenue base on which to build. One of the things we do not do is regulate rates, tariff were or propose any of the other traditional utility type regulation. So the reality is that the day after our order goes into effect, the revenues from Consumer Services for Internet Service providers will be exactly the same as they were the day before because we want those revenues to be there. We want those revenues to generate a good return so that the operators then have a reason to continue to expand the new york and particularly to expand and compete with each other. All right. Andrew . Mr. Chairman i want to go back to the issue about the president just far moment. Which is this. Were you supportive of the president coming out so publicly and vocally about the policies and Net Neutrality . Because to some degree critics would suggest that it raised questions about your independence. But would you have preferred he stayed quiet while you were allowed to come out publicly yourself first . Oh, my golly, andrew. The president s have historically always commented on major decisions at the fcc. And as i said i mean the president and i have both been strongly proopen internet throughout the existence of this as an issue. I mean there are 4 million comments that were filed. The president was one of them. Mr. Commissioner as i understand it, among the rules that are in this you are there are provisions allowing regulators to determine whether a providers pricing and practices are just in reasonable, and you used the fair word which makes me nervous when the government starts decides b fairness. And a Consumer Group or Internet Company or anyone believes a broadband provider is in violation of these vague categories, they can file a complaint with the fcc. They can also take it up in court which brings up the specter of the possibility of filing huge class action lawsuits which are totally entitled to do which make this uncertainty for broadband providers seem like its just gone up logarithmically. Well i think you now listed all of the imaginary horribles. Lets talk about the reality. Because these rules were modeled after the rules that have been in place for 22 years affecting the Wireless Industry. The Wireless Industry asked the congress to make them a title two common carrier and then to instruct the fcc to forebear that is not to enforce all of those parts of title two that are not applicable. So the issues you have raised having in place for the Wireless Industry now for 22 years. And have never been an issue. And in that period of time the Wireless Industry has invested 300 billion thats with a b in infrastructure. And thats what were looking for here. We want to make sure we have built it on a model that works. Its a model than industry sought. And we know whats going to happen based on that real Life Experience rather than just a lawyer sitting around saying this could happen or that could happen. But when a when someone that runs a Broadband Company with all these at t or verizon or comcast, they spend a lot of money. They have in their mind a certain return on investment. When they tell us that they are going to cut back on investment based on the uncertainty or not knowing exactly whether theyre going to be reimbursed for all this are they just postureing . Are they lying when they tell us that . Or are you going to see less investment by these guys . Well let me go back to the facts here. The facts of the matter are that sprint has told us theyre going to invest. Tmobile has told us theyre going to invest. The small wireless carriers have said this is something that they could live with. Frontier Communications Says theyre going to continue to invest. Hundreds of small independent Telephone Companies have said theyre going to continue to invest. Jim doland of cable vision last week said this isnt going to have an impact on the way he runs his business. The fact of the matter is there is no rate regulation. There is no its based on the fact the model has worked for years through verizon and other carriers because we want there to be revenue. Theres not going to be a dimes worth of difference in revenue the day after this goes into effect from a day before from Consumer Services because we specifically are not going to rate regulate and we went beyond that. We removed all of the provisions that create the structures to be able to do that. And so we very much want to make sure that all of the carriers are having a return on their investment so that they will continue to build. All right. Tom wheeler, chairman of the fcc answering the tough questions about Net Neutrality and the rules on regulating the internet here on cnbc. Thanks so much for joining us. Andrew . Jon thank you. Thank you for bringing us that interview. And thank you mr. Chairman for coming on the show. Joe . And when we return march roaring in like a lion for the nasdaq. The index closing above the 5,000 mark for the First Time Since march of 2000. You know its daylight savings this weekend . No . We lose an hour of sleep . We get spring but we lose an hour of sleep. And in the fall we thats a fair trade. Longer days. Anyway it hadnt done that since march of 2000. Is it different this time . Were going to speak to scott mcnealy. A look back and whats to come in just a couple of minutes. Squawk box will be right back. 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Burn the witch the name your price tool a dangerously progressive idea. Do you have something for pain . I have bayer aspirin. Im not having a heart attack, its my back. I mean bayer back body. It works great for pain. Bayer back body provides effective relief for your tough pain. Better . Yeah. Thanks for the tip welcome back to squawk box this morning. Lets look at stories in the news. 1. 48 up per share at best buy. And also boosting its regular Quarterly Dividend. And Dicks Sporting Goods revenue beating forecasts. And Lumber Liquidators rebounding this morning. It had suffered a 45 drop over the past week. Upgraded the stock to buy saying concerned raised by the report that was on 60 minutes are overblown. Interesting. Another data point to add. Get back 3 after losing 45 . Pay chex just out with reports. Lets go inside the numbers now with the ceo of paychex. What does it show this month . Were on an upswing for the eight consecutive month. Basically making up the losses that we were in the Fourth Quarter of 14 and across all regions of the u. S. Except for two in the northeast weve seen gains in Small Business employment. What is the best region . Well best region is still in the central. Its the northwest central and the southwest central. Those areas, texas to north dakota really doing well. I think its still around energy thats doing that. Well you know it had a bit of a drop this month. But it still has the highest growth rate. I think theres construction going on there from what we see in the Small Business sector in around construction around Home Construction and so forth. So seems to be some nice growth in indiana. When it comes down to the metropolitan areas, dallas is still doing very well . Yeah dallas continues to do really well as well as seattle. Interesting enough in the south, florida and georgia, the states starting to bounce back. Thats miami and atlanta. That seems to be housing as well. Marty, wheres the worst state . Worst is still new Jersey New York those areas. Really not seeing the job growth particularly over the index level back in 2004. So think Atlantic City certainly to jersey. But it has not bounced back yet. Marty, thank you as always for joining us. Okay, thanks. Still to come super cars for the super rich. Ferrari, lamborghini, the big money cars are at the awe autoshow in geneva. Up next also, a pioneer of Silicon Valley. Now hes jumped back into the startup game. Scott mcnealy is going to join us to discuss the nasdaq move back to 5,000. Well talk to him and do a lot more when we come back in a moment. These days, the most important person in your business could be a software developer. So, hows the app coming . Weve got to make something great. Hows the app coming . Weve got to do it fast. Lets do this on bluemix. You can build apps with analytics, big data, even ibm watson. That could give us the edge. Lets do this on bluemix. It can provide code for you. We could be first to market. Because being best is priority one. Being first is priority one. Theres a new way to work and its made with ibm. In new york state, were reinventing how we do business so businesses can reinvent the world. From pharmaceuticals to 3d prototyping, biotech to clean energy. Whether your business is moving, expanding or just getting started. Only new york offers you zero taxes for 10 years with startup ny business incubators that Partner Companies with universities, and Venture Capital funding for high growth industries. See how new york can grow your business and create jobs. Visit ny. Gov business this is live coverage of nasdaq 5,000. New york citys times square often called the center of the universe and tonight certainly the center of attention for the financial world with the nasdaq composite soaring to its first close above the 5,000 level today. Indeed. The nasdaq stole most if not all of the hundthunder today. Fifth biggest gain in history above 5,000. 15th record of the year. It seems there is no end to the appetite out there. Internet segment revenues for cmgi rose 2,251 over last years level. The worst day ever on wall street certainly in terms of point losses for the dow, nasdaq, and s p 500. Bad day here no matter how you cut it. The pain was deep. Over the last five days cisco is off 23 . Intel, 22 . Hewlettpackard, 20 . Microsoft, 16 . And ibm, 15 . I had a different system. You havent aged a day. I downsized the system. The nasdaq closing above 5,000 for the first time in 15 years. Our next guest rose that Silicon Valley wave to great heights in the 90s. Today hes the head of weighin. Scott mcnealy is founder of a company he ran for 22 years. Hes also the chairman of weighin, a firm focused on social media intelligence. Why has everyone else gotten old looking, scott . And we dont look any different at all than we did back then do we . Is it clean living . What is it . I dont even like to look at the old pictures. I dont know who that kid is. Someone that is whenever i talk to you, i learn the view you have of the last 20 years is different. I can barely my opinions dont matter here. What do you see as the difference between where we were in 2000 and where we are right now in terms of technology. I think the biggest change from a valley perspective and a u. S. Perspective is were sort of out of the Manufacturing Business and mostly out of the hardware business nap has all moved to asia. The regulations, cost of living a whole bunch of things have moved that piece out. And its not that we dont have labor. We have the lowest Labor Participation rate in decades. So we have the workers here. Were just not employing them. And we moved from hardware to data. Thats a nice way of saying we moved to social media. But social media is all about the data. It isnt about facebook or twitter or communications. Its all about the data we gather. And what the industry is doing now is weve created the internet oracle cisco, emc, the four horsemen. We created fundamental technology in the companies before us that created the internet. Now were creating data by capturing all of the activity transactions and communications that happen on the internet. Again just listening to what you talk about, i worry that we need something to sell. Weve got every single possibility for advertising with all this stuff. But dont we still need we got to make something to actually sell to that were advertising for, dont we . Arent we missing a step . You know the 5,000 is not the same as 5,000 15 years ago. Inflation adjusted, were not there yet. But one of the things were not buying externally is energy. I think one of the biggest wins that and i think the current set of elected officials are getting a huge pass because of fracking and natural gas boom. That has been the biggest thats been we havent had a tech boom lately. Because facebook isnt going to change the world. I mean its a wonderful thing. But the thing that has changed a great enabler that has created at least stopped the bleeding if you will hugely. And nobody wants to no elected official wants to stand up and say all of our dumb decisions have wrecked the economy. But its been saved by fracking and natural gas. But thats been a huge win. Were not sending dollars overseas. Were basically getting closer and closer to energy independence. And thats been the big win here. And so when i look back over the last 15 years, i would say it hasnt been tech thats helped the economy anywhere near as much as whats happened in energy. Did you you probably werent watching. I havent talked to you about Net Neutrality. We just had tom wheeler on. Oh dont talk to me about that. I saw the interview. I just dont want to listen to administrators and regulators. I think the whole thing it was a problem that wasnt broken, didnt need fixing. And i dont have enough time to you know disassemble and recreate everything. I mean the whole concept that theres not going to be one change in revenue the day after versus the day before well of course not. Thats the silliest statement ive ever heard. Lets talk about the next 3, 5, 10, and 20year cycles. These are huge Capital Investments that have been to be made. And to i dont know. It was very frustrating. I think this is another process for government officials, elected officials to create unneeded controversy so they can get both sides of the argument to donate a heck of a lot of money to keep themselves in power and continue to drive the regulation economy which we all know is theres not one bit of empirical evidence that this economy works better than a free market and private economy. Its been going pretty well with a light touch, it seems like. What are we fixing . Whats the problem . Its a solution looking for a problem. But one of the things you just said is what gets me. Because anyone that wants to get around the rules or get around what in title two now has someone they can go to in washington. They can find their regulator that you feel like cozying up to. Now theyre all in a position to doll it out wherever they feel like dolling it out. So its going to breed more cronyism. The thing the left supposedly hates its going to breed more of. I call it crony statism. Because thats what it is. Well you expect and then i didnt even realize the i love whenever the get gets involved. Now it doesnt even matter if theres another administration and they put republican commissioners in the fcc. That doesnt mean theres not going to be lawsuits based on title two violation. Its all sand in the gears. Whats different between back then and now is stocks 404. This whole oxley thing. We have all of these new financial regulations. We have now all of these new fcc regulations. When you were a young whippersnapper, would you have been a total Net Neutrality. Why are all the young 22yearolds, 24yearolds just applauding the fcc and the president for this . And whos not who can be against something called Net Neutrality . Its weird, isnt it . All the young people thank god theyre making things fair for us. They called it the Affordable Care act too. Just every time something is named by a regulator, i think it is going to do exactly the opposite of what theyre talking about now. And so you know its just its too frustrating to get into. We dont have enough time. I shouldnt interview you. It begs no no. If you like your internet you can keep it. Thats something id say. Then number two, you didnt build that internet anyway mcnealy. Anyway andrews got the other side. Go ahead. Im just curious having watched the interview and heard tom wheeler, he said he was totally on board with what the president was saying. And i given everything youve read and given everything you know do you think they really were simpatico on this issue as he suggested in the interview . Oh you know what . Im on the left coast. I stay as far away from washington, d. C. They dont invite me into the Obama Administration discussions. I have no perspective. Andrew can get you an invite to the next party if you want to. You dance with the first lady dont you . I cant dance. You know tom wheeler. There was a question whether he was boxed in on this issue. Theres a perception within the industry and people who know him and friends of his who suggest the president came out and put him in a bit of a corner he was not necessarily prepared for. No doubt that that appearance exists and theres no doubt when the president makes a statement as he did it gives that appearance whether tom really was completely influenced by it or not, i dont know. There may have been other factors. But appearance wasnt as good as the fcc would have liked. He has plausible deniability because he can say the president said it but then the internet we got 4 million comments about what to do and he can say we were flooded with people that he actually used the word fair. We want to keep it fair. I love that. Because fair means so many different things. Theyre going to decide which companies its fair to and which theyre not fair to. By the way, they say theyre not setting prices. Well, by defining whats on the price list you automatically set prices. So i listened to the statements and i think they are just illogically just theyre unfair statements to make if youre going to talk about truth. Yeah. So i try to explain wayin quickly and i failed miserably. Thats why i need you to explain it. Its kind of like twitter. Tell me how does it work again . Well you know twitter, facebook instagram, all of these Different Social Media conversations are going on. And if you watch and listen and subscribe, its crowd noise. What we do is we allow brands events organizations, celebrities to basically filter out all the crowd noise and listen to a specific conversation around key words, around particular events around hash tags and all the rest of it. If you follow me on twitter and you search on my name that sort of thing and bring that conversation, we can put it up in venue on the jumbotron. We can put it on air on tv. We can put it on a web page or on mobile. Then we allow you to analyze that conversation and figure out what words are working and what words arent working and what sentiment is. It allows you to tap into this social media conversation while cutting through all the crowd noise. All right scott. Come back and join us. Were not washington, d. C. , but were in the middle of manhattan now. Howd you do at the at t this year . Did you do all right . I was 19 under. I was tied for 38. Thats not bad. 22 under was the cut. But, you know i never play up to potential like you. I dont know. Cameras make me so nervous. I think the next time im going to make it is when my son gets invited to play in the pro part and asks me to be his amateur. Hopefully that will happen. I see him asking you to be his caddie maybe. He said that. I said im not going to be caddie. Im going to be your amateur partner. No, yeah. No playing for you. You caddie. Okay. Thanks, scott. See you later. Thanks. Take care. When we come back, Robert Franks going to join us with a look at some super car when squawk box returns in just a moment. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . At mfs, we believe in the power of active management. Every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. Which leads to better decisions for our clients. Its a uniquely collaborative approach you wont find anywhere else. Put our global active management expertise to work for you. Mfs. There is no expertise without collaboration. 2015 geneva auto show is under way. Robert frank is here this morning. Good morning. Good morning. The market for supercars priced at 200,000 or more back to its alltime high. Launching faster flashier and more expensive to entice superrich car buyers. We heard about lamborghinis new one. Well give you others. Ferrari updating 458, the char that marchionne told me the best car that god ever created. The new 488 powered by a twin turbo. This is controversial for ferrari owners it doesnt have the same engine noise but 660 horsepower, 0 to 60 in 3 seconds. This will be ferrarieds lead horse going into its ipo this summer. A lot riding on the car, around 250,000. Mclaren the british carmaker unveiled 675 lt long tail 666 horsepower, 0 to 60 in 2. 9. Hard to find anything street legal that beats that time top speed of 205. Priced more than 300,000. Audis not a supercarmaker but inroads with r8 new version, 0 to 60 in 3. 27 powered by v10 or hybrid. Driving that fast at night can be a challenge. R8 has laser headlights. Thats the first of its kind in the u. S. Guys sorry, billionaires, last have a run, fastest production car in the world. Only made 450, sold for more than 200 million each. There it is the last one that will ever be produced and fittingly, its called la finale. Billionaires, you to come up with something else. Bugatti hasnt announced what theyll do next but its going to be a big one. Any of the cars been in an accident . A lot. A famous one, a guys driving and drives into the lake. One of the mostwatched videos, watching 2 million bugatti drive into a lake. Dont you think you should buy a car you like and is cool but can get service somewhere in the same state somewhere . Dont you can they have people for that. They do . A lot of the guys have their own technicians in their garages. See, i dont. See, i dont. Thats different. Pothole detectors, in washington, new york my biggest concern. If i get a new car . Theyll be destroyed by potholes. You have a 20yearold car. 20yearold. Would it go with your watch . 20yearold mercedesbenz Station Wagon my wife handed down to me there i love him. Youd rather buy the magna carter for 20 million than 10 bugattis. I wouldnt buy one, i wouldnt be able to drive. I can only drive automatic. Secondly worried about potholes destroying the car. Problems of the wealthy, right . Next guest host set to tell us what hes doing to preserve pieces of our American History for generations to come. Squawk box will be right back. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade we looked for the best price and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. Our next guest is trying to change the world one historic landmark at a time. Patriot givings are renovating mt. Vernon monticello and Everybody Knows what you did with the Washington Monument you made sure you gave money to make sure that was restored after thor thre erore earthquake. How did you get into patriotic giving . Why these pieces. When i found i had more resources than i could spend i thought appropriate to give my children, i thought a good idea to get involved in philanthropy. Many people do great things in medical research or education. I try to do things there as well. But one thing i wanted to focus on giving back to the country for my good four tune. Ive tried to remind people of good fortune, like the Washington Monument and month pea pea leer monticello, and giving them to the American People. I try to do that as a way of saying thank you to the American People and encouraging other people to do the same. Also trying to encourage people to learn more about our history. I think people dont know enough about our history and you can be a good citizen if you dont know enough about the history of our country. Thank you for coming. My pleasure. Join us tomorrow. Squawk on the street begins right now. Move on up move on up good tuesday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer, david faber at new york stock exchange. Weve good nasdaq 5000 now what . Premarket soft here as we await auto sales which so far arent too great. Got downgrades of retail names as well. Oil around 50 again. The journal saying gas savings are being saved, not spent. Tenyear, look at this zoomed to 2. 10 a shade above. Yellen does speak tone. Road map begins with the markets. Major milestone for the nasdaq crossing 5kfor the first time in a decade