Course, after a nice move yesterday, up moving along this market if you are happy about it european market, you asked and we answered. Spain and italy which we like to look at it as well one of the foreign markets the only good over night was the opening. I am not kidding. The olympics were good. 10yr note yield is the focus, 2. 84. More than we were yesterday. Tomorrow is the key question. Look at oil though you know stories today, well be the largest producer, bigger than saudi and russia. It is true. 10 Million Barrels a day and there is no place to put the stuff. There is not i know. The government relyinquishreg it is hard to have a lot of inflation and oil is considered one off. Thats ridiculous. It is important of the whole foods chain of every aspect. What people have been saying is expensive. I appreciate that now, i need to get to our road map. Wild ride market if you take what the futures are telling us in the early going here under armour sales the shares are doing something they have rarely done, moving up i think hes back i think kevin shein is back pepsico, well have the cfo, Hughes Johnson, joining us later. The nasdaq is back in positive territory for the year yesterday we saw the 10yr note yield surpassed 2. 9 that was a fouryear high. We were right at the same level than yesterday lets call it, jim, volatility is here to stay yes get use to it tomorrows cbi if Interest Rates go up, you will see a lot thats a race. If Interest Rate goes down, you have a fantastic rally we are in a tick by tick moment where the algorithm are saying that you should sell it if we go to three and you should buy it if we go to 2. 6 or 2. 7 thats the world that we are in. We are not used to big supplies. We wiped out everything since the september rally. It is important that people realize that we are absolutely attempting the repeal all the gains that have happened since tax reform thats what i am watching for. All the gains. If that would be wrong to repeal all the gains, well repeal some of them. I think there are too many stocks like mcdonalds where they wiped out everything that happened since september when do we get to a point where is now the time to say okay those names where i know where the multiples have come into a certain extent and earnings are not impacted now is the time to buy them. I think pepsico is a true testament to it. It gave you a big boost and buy back they give you a fourcase. The stock goes down. It is a sign of where we should be at the same time, it may be a buy if it goes down. If Interest Rate goes down, you can can buy it at 1. 08 most people dont remember that. The people that allegedly m manipulated i know, i cannot do this in the 70s anymore you asked a great question and the answer i have to give you is i dont know myself so i cannot tell no, david, this is it i believe well look back and say this is a great opportunity to buy but well have to wait. I think people will say you know what, he just says to buy it and we went down a thousand point. Right i just described the ken fisc r fischers theory a lot of people are not rigor s rigorous a lack of rigger. Under armour is a great example. Inventories are lean they got nike woke up. We can go back and look the stocks have been a house of pain use one of your favorite words it can give up some but i do think that i am looking at some stocks that they got too cheap lets tell people whats happening here, under armour is up the company is posted better than expected and strong global sales seem to offset the decline. Under armour announcing the 2018 Restructuring Plan seeing more opportunities to optimize its operations, you already discussing it. You said at the top of the show, you seemed to think that things are now good entirely from our friend. Addicted to the concept of inventories. Once inventory goes down which is mentioned in the release, you get more full price, i have been waiting for inventory to be not a problem. It looks like it is no t a problem. Of course, we still have to worry about nike and adidas, mark parker is a competitive guy. I absolutely love the guy he makes things miserable. Under armour has to talk about personalization, it is really important. Really important that was the way that nike struck out kevin, playing back and focus continue to be this is the old kevin plank that we remember hes a competitor and who wants to win at all costs. I think hes back and he delegated too much and i am a buyer of plank thats what you are buying you are buying the old plank and it is terrific i am fnot talking about the yoga plank i am talking about kevin plank i got it. Can you do a yoga plank i did twominute today. I am bigger than ever. Core . All right, lets go to carl in pyeongchang, can we do that in hes at the Winter Olympics and under armour there is a story we know, carl it is a story, guys under armour products are worn by 375 athletes representing 16 countries here at the games. The biggest presence that under armour has had at the olympics you remember the controversy back in sochi where the air dynamics have slowed down and speed skaters. The u. S. Hopefuls did not come up short today in the 500meter short track. It is not the suits, guys. The u. S. Women have not medaled in the olympics skating all the way back to 2002 this morning, chloe kim, wins gold, the youngest olympic champion ever on snow at 17 years old. The journal calls her the most dominant female halfpipe in the world. What a Business Career she already assembled. Well be talking to her about social media and spon sponsorships and a first generation she already master social media and using twitter effectively and getting endorsement deals. Ben and jerrys all coming to her over night as she tweeted about food you can imagine how much they would love to create a custom flavor for chloe kim yes, social media with all its apparels still provide an avenue for companies to approach the athletes rather than the other way around personalization yes carl, thank you well be joining you shortly in pyeongchang. In that brief moment. Well talk to Hughes Johnson about that from pepsico. Speaking of companies, we should mention thats oreos. Mondelez is stepping down hes got a lot to do on the other board. Procter gamble. Do not draw any conclusions other than a replacement of the director as a result of mr. Peltz says if hes on that board, hell cut back. Hes going to spend a lot of time in cincinnati proctor is going, thats a shrinkage of multiples nothing has really changed in terms of the number of proctors other than going up because of the weaker dollar. Whats an appropriate multiple for p g i think facebook. Facebook is trading at 19 times. Proctor is kind of a lot of polls. I think gillette is under which is what i use. The blades are very sharp. I have been using it for years. I cut myself the first time, holly cow, not like it is relevant at all. Proctor, they have a 3. 39 yeel, that does not matter if treasury goes to 3. It is over valued are you kidding me . David, what do you think . Dont answer that. Thats not what comes to mind never, ever idiots, you are not two words that are near each eaother. When we return of pepsico posting a better result. Well talk with the companys cfo and vice chairman, Hughes Johnson and take another look of the futures. 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Pepsico out with earnings meeting at the top and bottom line the company is upping its dividend substantially more than they have before and doing a much bigger buy back for more, hugh johnston, we see him all the time welcome back to squawk on the street. Thanks, jim, good morning it is great to be with you all thank you, one of the things that people are going to say, wait a second, carbonators is n not as strong as we thought and losing shares to cocacola fritolay is on fire and what we are looking at fritolay is doing so well thats exactly right. If you look at our pepsico portfolio right now, four or five sectors are performing very well and fritolay is hitting on all cylinders at this point. The execution is working and even with customers right now, customers absolutely feel great about a north america businesses one of the things we have not talked much is cantor retail survey, customers rated us o f the highest rank, we were positioned at number one the other performance is terrific right now we got our challenges and we are addressing them. Well, can you tell me each single quarter i read about the new products, we had the blades, we understand there is a new mountain dew product, at what point does your innovation pipeline begins to become relevant to earnings it is funny you say that, i think it is relevant right now if you look at pre2000s and 12. We were putting up 5 or 6 of sales. That number have been 8 now we have been averaging about 3. 4 Revenue Growth of a. 5 of that has been coming from innovation if you think of pepsico compares to most food and beverage company, we have been exceeding boo i a point and a half i i argue it is driven by the innovation investments that we are making and building capability to handle innovations successfully i expect going into 2018, well have a perfect year of innovation because of mountain dew and bubbly, we have a full pipeline and i think it is going to blow well for the year. I agree interestingly, we are talking about prices, pepsico got the same one of the questions before i turn it over to david, there is a sense that maybe the next number, the forecast is not as good i think it is important for you to try to explain to people that it is organic growth that has always been the key and that you actually raise your figure for 2018 yes, thats exactly right if look past over the past several years, we got 8 for each of the year and we deliver some where between 9 or 10 this year we are guiding to 9 so it is a point higher than what we previously guiding to. Why are we doing that . We got confidence in the innovation pipeline and productivity plans and frankly we got confidence in getting all of our businesses performing at a higher level we feel good from the guidance of that perspective. In addition to that, the fact that we raise the dividend by 15 , we tell investors that we are feeling confident by our cash generation potential as well hugh, i would love to get your take on something that your ceo says on a call of a recent deal in the marketplace involving keurig purchasing dr. Pepper she says i am sure there are some towerering Strategic Logic but we are still searching for it you see between the red and blue system, she went onto say lets wait and see over the next few weeks and months to see what kind of strategy they articulate right now we struggle to see the logic somehow alluded us, pretty strong words, can you sort of add to that as to why she would say that or why you guys are looking at the stance at that deal i would not say we are looking at it. We have respect for those guys, the jab guys are smart guys and certainly dps has been a long time partner of us i think the point is the deal has not closed yet we are waiting to see their actions in the marketplace as to what it is they intend to do one of the things thats been commented on by media and some degree by analysts, this is a big distribution play. As she noted, 80 of their distribution of dr. Pepper right now is pepsi or cokes. It is not clear to me what the distribution play is i think our best bet is do what we always have take our competitor seriously and be watchful and looking to see what they do rather than looking to see what they say hugh, of the tax benefits, a lot of corporations are giving us some sense here of their expectations but not completely. What is pepsico saying to their shareholders tax rate will be down in the low 20s, thats what we have got through this year. In addition, to that we did take the dividend up 15 . That was reflective of the fact that we can move cash freely around share purchases is 2 billion this year, we announced authorization for a 15 billion buy back program we are trained to sort out not just what happens in the u. S. But moving cash around the globe, i expect the end of this year, you will hear more from us in terms of what we intend to do with the capital it takes that long to get the sense of the landscape before you can get your plans fully in place . Yes, i think because there is still a whole lot of writing that has to go out of tax reform as you know. The 500page is not an end to the process. I think we have got to understand that more fully as we decide what it is we are going to do. Got it. Hugh, well appreciate you joining us vice chairman at pepsi. Good story, if the futures go down, it goes down and if the futures go up, it goes up. Get ready for your mad dash coming up. Another look of the futures here we got about eight minutes before we talk about trading more squawk on the street straight ahead all right, we got about five minutes before we get to trading. Lets get to mad dash now why are you not ready . Get yourself ready, we got a get yourself ready, we got a good one coming up next. Today, innovation in the finger lakes is helping build the new new york. Once home to the worlds image center, new york state is now a leader in optics, photonics and imaging. Fueled by strong university partnerships, providing the worlds best talent. And supported with Workforce Development to create even more opportunities. All across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. To grow your business with us in new york state, but through goodt times and bad at t. Rowe price weve helped our investors stay confident for over 80 years. Call us or your advisor. T. Rowe price. Invest with confidence. At holiday inn express, we cant guarantee that yll be able to contain yourself at our breakfast bar. Morning, egg white omelet. Sup lady bacon fruit, there it is but we can guarantee that youll get the best price when you book with us. Holiday inn express. Be the readiest. Stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. All right, here we go, twominutes before opening bell. Mad dash time, where do you want to take us . I think you should buy the cboe i have never seen them anything other than that with the manipulation charges which is about individuals that may have tried to manipulate cboe i want to make this point, why because people can say jim, you are cavalier about saying that they issue a denial quickly. It is not about the cboe theyre doing very well and they should it is about the regulatory over sight. Do you think the pressure on vix related products will pressure them . I think their stock is down so much that it reflects that. It is about the regulars they did not do anything wrong and they are really good guys. It is about regulatory over sights and margins they are trading there is nothing wrong with trading. It is whether the government should bless the part. It is the u. S. Government thats really at stake. It is not the cboe, they are doing a good job offering products i want to protect the individuals. I want to make it clear that i would buy the cboe and they are not at fault they did not do anything i wish they did not need to actually issue a kndenial it is the government that needs to speak up. It is not cboe Global Markets, they are good guys out there i want to make that point. It is a good stock to buy. Right there at the podium is dici properties and over at nasdaq, talenom. Okay. You can see the realtime exchange, it is going to be more red and green on that given the way futures look before we open. Whats the key today . Caterpillar you got europe up 31 , not acceleration, latin america, 49 . North america, flat 20 plus 23 why this matters last time these numbers came out, caterpillar zoomed to its high in january 16. Watch the stocks because these are good numbers will it go back to the highs or n i want a wall street journal story from last night. Oh, i am so glad you did that i am going to bring it up. I have no reporting at all to offer on this as i pointed out many times, sometimes it seems that the bars come down for what constitutes in what companies talk all the time. Here is what the journalists had to say walgreens of a potential deal and there is no offer on the table and they say the deal may not materialize. All the analysts are telling us what we are thinking you can see Amerisource Bergen is up. Do we know where walgreens is purchasing you got a lot of analysts out, of course, saying it could drive as much as 55 cents to walgree walgreens adjusty biggest risk is retaining customer base. They distribute a lot of stuff the to a lot of pharmacies and suddenly owns by walgreens, that may fall off they own 26 of it also as we should point out walgreens owns roughly 26 of equity there and the stock being, they like the walgreens deal walgree walgreens stock have been under pressure my reporting came up something something. Tell me, what do you got . Remember we had the corso corsortium announcement. Yes i am close to people who are involved okay. Thats the cutout party. The middleman so to speak jeff bezos believes that he can lower the price of healthcare and becoming more dominant, jp morgan feels that way. This is the principle expense. I think walgreens may not be as smart as they are in buying these. I think these companies are going to be squeezed by that venture. They are squeezed by others who have to compete. David, you are going up against bezos. I would say that it is a great time for ameri source bergen to sell if i were cardinal or ameri so