Modest growth as new initiatives in mobile and other areas kick in. The stock went slightly crazy, got a huge boost after alibaba rolled its results. Forget what is happening at yahoo at this point. Its almost insignificant at this point. Yahoo owns 24 of the chinese ecommerce alibaba. They made more than double the amount they made for the same period a year ago. Revenue jumping 66 to 3. 1 billion. Alibaba plans to file paperwork as early as next week, thats what everyone is excited about, about this potential ipo offering on an american exchange. They are debating whether theyll go with the nasdaq or the new york stock exchange. The sale could be the largest ipo in American History if the companys valuation could reach, what some people are saying could be as high as 200 billion. Jerry yang of yahoo always gets a hard time because he is he the one that made this investment. People thought he screwed yahoo up forever. God bless jerry yang. He saved this company. Marissa meyer should thank him every single day. Maybe close to ten years ago, maybe longer, he made this investment. They met years ago, jerry yang decided this was the future. Great investment. Its the only thing that would give her a bit of a honeymoon, i would argue, to make some of the changes. Without alibaba there, im not sure shed have the flexibility. You said 51 . What was the 51 . That was the profit. My understanding it was the profit went up by 51 . How is that double . Thats a good question. Youre right. I listened to what you say. I read somewhere profit doubled yesterday. If profits doubled and went up 51 , i dont understand. Lets stick with profits doubled. Ill tell you what could happen, though. Whats that . If profits went down 50 , then it would double to get back to there. Maybe we could do a remedial math class after school. Maybe theres a different amount of shares so that maybe the overall net income number was different. Maybe they bought back shares or issued shares. I may have confused myself. I read somewhere this morning what . It was doubled. It was doubled. But it wasnt up 51 unless youre talking about yahoo . No. I may have confused myself. Lets go with doubled. Well do a math remediation class. Lets say it doubled. Thats much better than 51 . Thats true, too. Intel reported stronger than expected profits. Revenue is slightly below at 12. 76 billion. Wow. 27. Interesting. A programming note, intel Ceo Brian Krzanich is he the ceo now . Yes. No kidding. Hell be with john ford, exclusively at 12 30 p. M. Eastern time. I think stacey was on yesterday somewhere. Lets check on the markets this morning after a session that was, you know, had something for everyone yesterday, up, down, up. When you get a head fake and youre in a market like this where people are worried like a little scared and it starts up 100 and then its down 100, you think, oh, my god. If you looked at the nasdaq, that was crazy. It made a massive comeback. Hasnt done that in five years. On monday it had swings like that, too. It always looks like people are going to sell it off, people in those momentum stocks go, here it comes again. Thats a big time for big money to move in and move it back up. At the lows yesterday when they were down 2 on the day, the index was down 9. 7 . Its almost in correction territory. We havent seen nothing like that in the s p. Its been less than 5 . Were almost back for the up for the year. Not to confuse the issue. Just to explain myself. In the Third Quarter it had only gone up by 51 and that had actually scared people. Alibaba. Now its doubled. People are much happier. We believe these numbers even though theyre chinese numbers. Yes. This is the stuff they have to file for their ipo. This is the numbers that youre getting just before they file the prospectus. Its based in the cayman islands. Which youre familiar with in terms of your finances. Got to have a p. O. Box somewhere. I know. Great place by the way. Really nice. The caymans . Yes. Maybe we should do a week in the caymans, given all the companies that are based there. Thats where that tom cruise, thats where he went with gene hackman, remember, down to the caymans. Aruba, i want to take you to the yes. A little incident on the beach. Wasnt his fault. Did things that you dont do with a stranger. Youre thinking of that movie. I see. The firm. Im thinking of cocktail. You would. Thats seered in your mind, not that theres anything wrong with that. Wild swings saw the nasdaq trade in a 108point range. This isnt the dow. This is an index thats in the 4,000s trading in that kind of range is frightening. The 10 correction chatter started to sheet up. The index managed to come back and gained 11 points. Were back to 4,034. Once we got above 3,000, it ge s gets interesting. We built this 170 million beautiful headquarters and we almost topped out the nasdaq. We called it the nasdaq 5,000. The dow ended 89 points to end at 16,262. The s p gained 12 points. Liesman will come on and talk about this. It would have to fall another quarter percent in yield before it would come close to recession fears you know what i always say, the flat yield curve predicted ten out of the last three. I thought it predicted eight of the last four. Predicted eight out of the last four. Thats what ive been saying for a while. The tenyear was yielding at 2. 61 . I was in a car for 10 or 11 hours yesterday. I was doing nothing but checking markets. What were you doing . I went to ohio. Youre from ohio. I did live in Bowling Green for five years. Ohio, indiana, missouri, oklahoma. I was down by your territory, in mason, ohio. Mason. Right outside cincinnati. Did you bring me Skyline Chili . I didnt. You brought nothing. I brought nothing. Sorry. Bring me any i think its easier to ship it here. They keep it cold for you on the way. Reds pair paraphernalia. Schilling came on, housing, he thinks, the qe juiced the Housing Market above where it should have been. He said he wouldnt be surprised remember . I dont see any way we should do 3 . Even the tenyear not picking up at this point, you would think that would make Mortgage Rates more expensive and prices more expensive. You would. He wehavent seen it yet. Its good. When they go down, youre saying what does that say about the Global Economy . The tenyear as it goes down makes mortgages more affordable and housing more affordable. Peter sent out an interesting taking a look at what had happened with Foreign Ownership of u. S. Treasury notes. In 2013 there was only 10. 5 billion net of u. S. Treasury notes and bonds that were purchased. In february alone, 92. 5 billion. Belgium piled in, which doubled its numbers over the last six months. If its foreigners who are piling into the tenyear, maybe thats an indication that the low yield is looking the low yield is an indication of things around the globe. Do you know who will be with the bears today . Roach, when he comes on. Its interesting. He thinks that chinese consumers are optimistic and they have reason to be but u. S. Consumers are overly optimistic. Well have him here today and talk more about it . Whoop talk to him about china, too. Chinas growth slowing down to an 18month low of 7. 4 in the First Quarter. That was an 18month low but it was slightly stronger than had been expected. Lets get to eunice yoon. She has chinas growth story. Good to see you. Hey, becky, great to see you, too. The chinese economy is slowing down but its not as bad as everybody thought. The number came in for the First Quarter at 7. 4 . That beat consensus. Thats why we saw a market relief rally here. And it also is right around where the government has been saying it wants the economy to grow for the rest of the year, at around 7. 5 . The big takeaway from the economists has been that the government is probably not going to be coming in with any significant stimulus, at least in the short term. The indicators are in their favor. The wage growth and the employment figures held up. Now, in terms of the other side of the data that people were watching closely, the fixed Asset Investment figure was drawing a lot of attention. Thats because it missed expectations. So you had a lot of economists here today, basically saying this is a good thing. We are seeing a shift in the model in china. The retail Sales Numbers were rebounding. We were seeing more consumption, not as much investment. This is a positive sign. But then of course theres people who are saying, well, actually if you took apart the investment figure what was the weakest was the property sector. So theres a lot of concern because the property sector is so important to driving the economy and so those people were very concerned about just how quickly or slowly this economy is going to be, you know, moving along for the rest of the year. Guys . All right. Eunice, thank you very much. Well be watching this closely and talking about it a lot more with Stephen Roach. Well get you an update on whats happening in south korea. Officials say nearly 300 people are missing after a ferry disaster. Rescue teams are searching the waters off of the countrys Southern Coast. 459 people were on board. The crisis in ukraine intensifies. Russian president Vladimir Putin warning that ukraine could fall into a civil war if the conflict continues to escalate. Apparently ukraine had the unmitigated gull to try to push back against some of all these special forces that putin sent in that are taking over all the police stations and the airports. These guys finally said this was our country, we thought, maybe, you know, well take back an airport. Putin says, whoa its classic, this guy, isnt it . Ukrainian forces the nerve. Hes been doing this all along, bait them into a military response. The nerve. They took military action against prorussian militants who seized government buildings in several eastern citiey sciti. Youre right. Hes like, yes. Hes been trying to bait them, so he can say hes protecting russian citizens or russianspeaking citizens. Well do yahoo again here. This is all im going to say. Since were partners now. Yes. Do you think you could ever would you ever have noticed that i said something that was do you listen to anything i say ever . I dont. I dont. You dont listen to jokes. You dont listen to when i talk. You dont listen to discussions. Its easier that way. I know. I heard you say 51 i appreciate that. I listen. Listening is more important sometimes, especially in a relationship, listening is good. Is there any way youre willing to reciprocate on this or start to . Probably not. In fact youre not listening to what im saying right now. Yahoo posting Quarterly Results last night. Joining us to talk more about the numbers is rob sanderson, a Senior Analyst at mkm partners. Were these results any good at all, rob . Just on the operational level at yahoo . Well talk about alibaba in a moment. Yes, the operations, its in line. Were early in a turnaround, if there is one. Theyre starting to see stability. Youre starting to see some of the signs of product improvement and the like. Traffics turned. The revenue, its slight growth but far from what we need to see. Things keep moving, maybe later in the year we start to see more tangible signs of a financial surnaround. You look at the numbers and the symptom movement. Its all alibaba, right . Its completely alibaba at this point in terms of looking in the rear view of the appreciation of the stock. Its a pretty valuable asset. In terms of what theyre doing at yahoo because at some point this thing has to be valued on a stand alone basis for what theyre actually doing. You think its going to turn or not . I think its going to turn. I think were seeing the signs. One thing thats incredible if you visit yahoo campus, theres energy and enthusiasm. Its not been like that for a decade. Thats a prerequisite for a turnaround. That doesnt guarantee anything. They have a sticky audience. Its held on to users for incredibly well. Now youre starting to see a turn in traffic. The early signs are there but we have to get through this alibaba liquidity event which is very material. I think theres still upside there. Do you understand the strategy of getting into the entertainment business . It almost feels like going back to the terry days. I think theres an incredible amount of excitement and enthusiasm from the Entertainment Community for online outlets. Theres a lot of dollars that are moving quickly. People talk about yahoo how do you compete with yahoo or netflix or hulu. Theres a lot of inventory and dollars looking to reach consumers online. I think it makes a lot of sense for them to be moving in that direction. When you think about marissa meyer, one of the critiques is that she hasnt focused on revenue. Do you see that happening . Yes. I think you have to go much deeper to build a sustainable turnaround. Get people wanting to come to work. Have a cadence of strategy products. What unfolds in front of us is yet to be seen. Focusing on the core and the employees is and the products is where you have to start. In terms of alibaba, how do you see that playing itself out . In terms of them selling down the stake, in terms of the Tax Implications . Yes. Theres three things. One is the ipo valuation. Well get a prospectus as early as next week. Well have more granularly. The metrics are impressive, obviously. The second piece is what happens to the Public Market value after it prices. And yahoo is holding on to 60 of their stake after the ipo. The Tax Implications, as you mentioned. Very material swing, 7 to 10 plus depending on whether they can find tax efficiencies. Management is not saying a lot. This management team, unlike any previous management teams are saying there are theoretical possibilities for that. Its generating interest obviously. Thank you for joining us this morning. Take care. Looks sunnier and nicer in boca there. Its not a real picture. I think its a fake picture. But it is snowing here. It is snowing. Whats this guys name . Rob. Rob, do you live down there . Yes, im down here most of the year. Did you file your taxes yesterday . They were filed yesterday, yes. Did you have state income tax . Zero. What did it feel like . Did you rub that all over yourself . Does it feel good . Does it feel bad . How does the state do anything . Moving from california a few years ago, yes, it feels tremendous to not have to have state income tax. Bitter party of one over here, you file your 8. 9 or 9. 8 . What is it . Ive never looked at the number. The number is either 8. 9 or 9. 8 for new jersey. Thats why people are moving. We talked about would it matter doing the show down there for six months and one day a year . Would it matter on your bottom line . Would it matter on the quality of the show . I think we have an advantage being this close to new york city. We do everyone on remote. Not everybody. So youre a no . Yes. Look, i like it here. I do. You like digging your car out this morning . I didnt have to dig mine out. I plowed right through. You have a garage . No. There wasnt that much on my car. I prestarted the car. It melted everything off. When we come back, the dark side of bitcoin. Well check out the underbelly of the virtual currency. Thats coming up in the next half hour. First, fill phil lebeau at auto show. Well all about alphas return when squawk box comes back. [ man 1 ] were now in the approach phase, everything looking good. Velocity 1,200 feet per second. [ man 2 ] youre looking great to us, eagle. 2,000 feet. Still looking very good. 1,400 feet. [ male announcer ] a funny thing happens when you shoot for the moon. Ahh, thats affirmative. [ male announcer ] you get there. Youre a go for landing, over. [ male announcer ] the all new cadillac cts, the 2014 motor trend car of the year. Welcome back, everybody. Its time for the executive edge. Major wireless carriers and smartphone makers have agreed to introduce tells to enable users to lock their devices and wipe them clean of data if they are stolen. This is in response to pressure on the Telecommunications Industry to do more to stem theft. Starting in july 2015 all smartphones manufactured by the companies will come with free antitheft tools preloaded on the devices or ready to be downloaded. New York Attorney general and San FranciscoDistrict Attorney said it fell short of what they advocated to do to prevent theft. If a Smartphone Gets stolen, you should completely disable it and blow it up so that no criminal would ever benefit from ever stealing anything to try and bring down the numbers. In 2012, 1. 6 million americans were victimized for their smartphones. I dont know. I cant remember life without this stupid thing. I dont know whether thats good or bad. I have become addicted to the apps on my iphone. I have map quest, stock checking things. I finally got up on these things. Shes finally coming up on this. I am. You would have been proud of me. I cant believe im behind you. Thats pretty sad. Lets head to the auto show with a brand that is returning to the u. S. Market, lets get to phil in new york. I like the front, phil, i dont know, when you showed the side you lost me a little bit on the side. I dont know. You dont like the side, joe . I dont like the back of the car. It reminds me of sort of a i dont know. It just looks like a japanese car or something. Not that theres anything wrong with that. You like the back . The front looks like porschelike. The back is too high or square or anyway i like it. I like it. Im glad alfa is finally here. You cant fit your big toe in there. Stop it with me and my size. Get in there. Id climb on top of that thing. Sit in the back seat. You want me to get in the back seat . I do. The back seat, thats funny. Real quick, guys, let me tell you about alfa romeos return to the u. S. Weve only been talking about the eventual return of this italian sports car brand since the chrysler fiat marriage was put together in 2009. The 4c will be the first model seen sold here in the u. S. , probably more likely in the fall time frame. The price tag, they havent announced it yet but most are saying it will be in the 54,000, 55,000 range. I think its going to do well. Thats a sweet spot of the markets. I wouldnt call it entry level but its in an affordable price range, especially when you consider how many people have been w