Transcripts For CNBC Squawk Box 20140417 : vimarsana.com

7 30. Well roll out the reaction as soon as those companies report. We have dupont and United Health. Am i speaking too soon, joe . Im away from my computers . They are . Oh, great. Thats good. I like both of those companies. Ill come over and help. Both of them should be followed. Dupont saying adverse weather conditions reduce First Quarter earnings by an estimated 7 cents. Did you see how many times i think the beige book mentioned weather 131 times. Someone counted the number of times it mentioned weather. Weather is an issue. You know, that was not fair, becky. Im sorry to spring that on you. You were without blame because youre in that shes a vision in white this morning. Im interested im looking, im looking. Ibm, the lowest is that for real . The lowest revenue number . That was a bad number. The lowest revenue number. Didnt we just talk to people. Who was it, bill miller said he expected an uptick because it had been eight quarters in a row it had been lower. I think an activist will show up on that. How is our relationship now . We tried to have an honest discussion on how to pronounce the ceos name. I think were good if you shut up. Down 8. Okay. No, just about the were better on that front. Its good Pr Department help accompanies cause rather than alienating people trying to do their job. Uhhuh. Thats right. All good. Im taking a look at United Health very quickly. 110 versus 109 that the street had been expecting. Taking a look through really quickly, they do bring up negative impacts from the aca, the Affordable Care act taxes and regulatory provisions and sequestration cuts to medicare. 128 billion to 129 billion. Theyre looking for net earnings in the range of 5. 40 to 5. 60 a share. P e is looking for 5. 59. It sounds like that outlook, the high end of the outlook would come in where the street is already expecting. Thats probably why youre seeing that stock down by 1. 6 right now. I dont have a good yet. Dupont reported 1. 58, in line with expectations. They give a continuing operations number of 1. 54, adjusted continuing operations number of 1. 58. Our sales were 10. 1 billion. That is versus 10. 445, which is what the estimate was. The company gave an outlook of 4. 20 to 4. 45 adjusted. And that is versus 4. 31. Let me see. 25 cents plus 12 would be 4. 32. You are good. I can divide 25 as quick as anyone can. Its 12. 5. All right. This is not a bank so we can stop now. You know how banks, we dont spend five minutes or six minutes on it. We have a couple other Earnings Companies that we should talk about. These were two tech giants that reported after the bell. Lets start with the dow component ibm. Profits were in line with expectations. Revenue fell short. In fact it was the lowest quarterly revenue for big blue in five years. For real . Revenue fell 4 . Below estimates of 22. 9 billion. The company struggling with falling demand for its storage and server products. The company reiterated its fullyear operating earnings target of 18 a share. Do they think it will be backend loaded . I dont understand this. The question is when are you going to see some results from this company . Youll see Warren Buffett in a couple weeks . Yes, bill miller likes the stock. Maybe theres still something to come. Disappointment. You want a turn to come but as ive said, i do think this is a company that gets right for an activist situation because somebody will say its just not firing on all cylinders. Hard to argue this. If youve watched tech the last 40 years, huge names, now ibm is huger than all. Its the bluest of the blue. Very good people work there. It took a huge effort to turn it around when main frames were starting to become less used and it was distributed. It took a huge effort. We just assume that its always going to be ibm and they switch services. Kodak, digital equipment. Even hewlettpackard. Its probably a little too soon. Im not saying its going to go that way. We just cant assume theyre always going to do the right things to stay current and stay ibm. When warren bought into the company, his argument was it is so engrained in its tentacles are in so many different businesses, its hard to the switching costs are so high, you have to hope if youre running that company you can transition to the cloud and transition to all these new businesses while holding on to the old business and that gives you enough time to get you to the new place. The question is are we in transition right now . Thats the whole gamble. For a company to be able to say everybody has us, so they still need us, thats a bad position to be in. You should want the new stuff. You shouldnt have other options youd like to do to. I think that goes to the mote, the idea that this is what protects you. Ibm is synonymous with how h. Average l. Was ibm, we assume its going to be a market leader. Its tough. Apple lost its way once. Without steve jobs you dont know what watson can bring us. I know what watson can bring us. Misery and pain and destruction. Potentially profits. Profits. Who knows what theyll do with it. Laffont is out all week, isnt he . Youre waiting. Im not waiting for anything. The United States, russia google had earnings. Well talk about those later. Sorry. Ukraine news. Barking out orders in my ear. The United States, russia, ukraine and the European Union holding talks in geneva to try to negotiate an end to the ukrainian crisis. Lets get to Steve Sedgwick who is in geneva today. Hey, steve. Were talking about throwback thursday. If we go back 25 years, we talk about the cold war. Are we entering a new cold war phase as well . This is important. Weve seen two firsts. One is positive, one is negative. The negative one is about the escalation of violence on the ground has been unprecedented throughout the crisis. Were seeing the kiev government fighting back against what they call russian sponsored terrorism in the east of the country. The other is positive. That is this is the first time that lavrov and deshchytsia have been talking throughout this crisis. We spoke exclusive sli with deshchytsia yesterday. Lets hear what he had to say going into this meeting. The expectation is that well find a good solution that we all will benefit from. This expectation is the deescalation on the ground. Given that russia says your government is acting criminally and you say the russians are sponsoring terrorist activity in the country, do you feel its impossible to get a breakthrough . It was supposed to be one question. Its always possible, if there is a will. Again, that was Steve Sedgwick who had been interviewing the Ukrainian Foreign minister lavrov. Ahead of the talks, russian president Vladimir Putin speaking in moscow. Michelle carusocabrera joins us right now with more. He started speaking 4 00 a. M. Earn 50 time. Spoke for an hour and a half. This is an annual press conference. When he did it a year ago, it was 4 1 2 hours long. Some of the highlights. Vladimir putin admitted there were Russian Troops in crimea, even though he said at the time there werent. But he says right now there are no Russian Troops in the rest of eastern ukraine, even though many people believe him now, though hes admitting he wasnt telling the truth before. Exactly. He said that kiev, the government of ukraine, taking military action against the protesters, thinks thats completely wrong. They should seek a diplomatic solution, they should be talking. Now the protesters are saying over buildings. In a systematically, orderly way, in city after city. It looks very controlled. Is putin getting what he had hoped for by getting some sort of a military response . I think it is playing out exactly like he would have liked. That gives him an excuse. He did say that Russian Troops are ready to defend russians if necessary. He does a bunch of things, he makes a phone call. Then does he more stuff, makes another phone call. Thats when people meet. Right. They do through diplomatic motions. He feigns some type of appeasement. Right. I think theres two things to watch for. Ukraine is not economically significant. Russia is. Russias economy is struggling, even with brent at nearly 110 per barrel. There are now predictions that the russian economy could decline by as much as 4 3rers when it comes to gdp. We were talking about a year ago theyd have positive gdp. Thats a big swing. Theyve had trouble rolling over debt. Is the economy in trouble in part because of their aggressive actions . Yes, absolutely. The exit of capital, the ruble is falling. Theyve had other structural issues. But everything has absolutely accelerated. Theyve had trouble, theyve had to cancel auctions. They havent been able to access the market. The only reason nobody is so worried, they have so much in terms of foreign reserves because they sell oil, right . Theyve got lots of dollars to defend themselves. Still, a country doesnt want to be in that position. The second thing in terms of our viewers is, will there be more sanctions by the United States . The United States, unlike when it comes to iran, the u. S. Could act unilaterally and be extre extremely effective if we wanted to do financial sanctions, because we control the financial world. Right . And the treasury will tell you that any charge transaction conducted in dollars, whether its a deal between a peruvian country or argentinean country, it has to clear the new york fed. As a result, if we want to do something to punish russia, it can be done. Unlike iran where we needed everybody else to stop buying oil as well. The threat has been, putin has been you dont want to go that route because we will retaliate. Do we need to worry about that . We could sell treasuries and we might see the long end of the curve rise for the first time in who knows how long. I think the hold juf will be, the issue will be, there will be german bank exposure. Well have to deal with the europeans. We could do it if we wanted to. I saw their tenyear at 9. 25 . No, no, no, the Interest Rates have been rising. All the signs that would be typical of a country approaching crisis or having lots of doubt way more trouble than greece or any other country in europe. Even with oil at 110 per barrel. Do you know this quote . An appeaser is someone feeding a crocodile, hoping it will eat him lfl. Thats analogous of the situation. becky quick, looks absolutely heavenly today. He put my name first. Who does he mean . Probably you. I feel left out. Youre not even here. Bill bennett doesnt like you. Can i add one more thing . Yes. Henry kissinger spoke about this issue. You have to do it in his voice. Im not feeling well or i could. The europeans negotiate a deal with ukrainians at second and thirdtier level bureaucrats over Economic Issues and it doesnt occur to them that russia will be upset . Youre not going to have a political dialogue about russia about something happening in their backyard . This was a crisis selfmanufactured by the europeans. He was incredulous about it. Thank you. Lets talk about google. Google reported First Quarter earnings after the bell. They fell short of wall street expectations. 547, thats down 16. 90. Joining us now with reaction is brian nowak, the senior internet analyst at how do i i always have you know i always have trouble with pronunciati s pronunciations. Good morning. Good morning to you. How bad were these earnings . The top wasnt horrible, it was the bottom that hurt, right . I would describe the numbers as messy but largely in line. From a top line perspective, the company came in 1 light of estimates. A lot of that is driving by fx. The company has exposure to before z brazil, australia an others. Theres also noise around eps because there are onetime items flowing through the opex. Those we think could have been a 5 head wind to eps. Look at the report numbers, it looks like they missed the street by 1 to 2 on eps. Have you changed your target on stock . My target stays the same, a price target of 700 on it. The numbers go down by 2 . You have to factor in fx and these onetime items. Why are now not giving these are onetime items. You look ahead to the next couple quarters, this is a company that continues to spend more and more money on the bottom line. In terms of their general cost. Theres no question, the opex continues ratcheting up for this company. I think the more important core metrics that are positive around the company are as follows. One, they have two main buckets of advertising revenue. Google websites business and the goog the Network Business. The goog the Network Business has lower traffic acquisition costs, is more profitable and it is growing much faster than the lower margin google Network Business. You are seeing record google website business which is google. Com, mobile, youtube, a lot of these emerging businesses come through. As thats happening, traffic acquisition soft is a percentage of total advertising is levering. You are seeing Gross Margins expand. The push back on opex is fair. As you continue to see Gross Margins expend, its a good sign of health for the business. Well leave it there. Appreciate your time. Thanks so much. The crocodile thing, for walking dead, do you know the two guys and the zombies are chasing him. The one guy says to the other, i dont have to be faster than the zombies. I just have to be faster than you. Bill bennett says hes coming around to you. He likes you now. I was going to send back to him, i was thinking i was on email, i was going to send back why . I realized it would have been on twitter and everyone would have seen it. You just said it on the air. There you go. To commemorate cnbcs 25th anniversa anniversary, the voice of the network joins us. Its me, jim birdsaw. Coming up, earnings reports from General Electric and blackrock. Youre not used to it. Squawk box is back in a moment. Right back. Before you hit the road, heres your travelers check. Jd power revealed a Hotel Loyalty and rewards Program Satisfaction report. Delta privilege ranked three. Ihg rewards club came in second. Which one topped the list . Find out, next. Travelers check is sponsored by national car rental. Go national, go like a pro. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. For what reality teaches you. Firsthand. E. In the face of danger, and under the most demanding circumstances. Experience builds character. Experience builds confidence. And experience. Has built this. The 2014 glk. The engineering, and the experience, of mercedesbenz. See your authorized dealer for exceptional offers through mercedesbenz financial services. What is the top ranked Hotel Loyalty program . Marriott rewards, according to jd pow. Good morning, im joe kernen. Its time for the retailers. Its 12 noon somewhere. Thats what well do during the break. Well have a beer drinking contest. So far, no signs of intelligent life. Good morning. Good morning. Good morning. Good morning. Hows my hair . I cant say death threat again. I cant we have to go. Three, two. Death threat. Becky, i cant let you be alone. Im willing to do whats necessary, too. Im not doing that. I would never dance on camera, ever. You have danced on camera. Squawk box begins what . Now youre in on the joke. You are the best thing good hair, man. You are. Great hair. Great moments. The hair has held on. I tried some of that stuff and i only used it for a couple months and i think it worked. Youre done . I have breasts now, but thats fun, too, you know, if im alone. I remember a lot of things. I wasnt here 25 years but i think i was here you were here from the beginning of squawk box. That was 1 95. I was here since 1991. I remember the first day of squawk box like it was yesterday. Penelo penelope, my wife was running this Old Technology it was like a board, a neon board that said squawk box and the logo. We didnt have the nbc peacock yet. It was crazy. Mark was used to being on squawk box. Right before the show started, i never saw him ruffled before. But he was it was a big deal. Yes. I also remember the day with faber where we went off script. Who was that . At t breaking up or i dont remember at this point. It hit and normally you would take the wires, you would say this just hit, give it to the writer, the writer would write it, the producer would put it into the teleprompter this time we didnt have time. It just went off. Thats what started squawk box. We havent gone back on script since then. You were what were you doing . You were a little girl with pig tails. 1995 . Yes. 1995 is the first day i walked into the New York Times as an intern. I was 18 years old. Changed your life. I was watching you guys. Really . We did. Cursing corporations and profit mongerers and fat cats . Thats when it started. Absolutely. All right. We are going to look back at a lot more moments in the cnbc 25 history. Well have some more coming up in the next half hour. In the meantime we have a few stories for the executive edge today. Yahoo nominating three more members to the board of directors. David filo, charles r. Schwab and former walmart ceo, lee scott. Do they count as independent directors . Because theyre from outside. Filo is not. He still works at the company. Hes not an executive of the company. Lee scott. Marissa is on the board of walmart. So that explains or may explain that connection. I dont know the Charles Schwab connection. Marissa. You saw her compensation, right. Went down a lit bit. 26 million. It was 35 you would argue 26 million for not selling alibaba . I think she needs to send a thank you note to jerry yang for buying alibaba and another one to jack ma. Youre so pc because shes a woman you probably want her to because of the disparity between men and women. You dont like anyone making 26 million. In this case, youre conflicted. Right . Is it good or bad for hanging on to alibaba she made 26 has she done anything else . No. Look shes done a lot for the company. She has given new life to the company. Okay. That is very true. Good answer. Good answer. The value is long term. She didnt sell alibaba. Coming up, General Electric ready to roll out Quarterly Results for so long they were referred to as the mother ship. Blackrock is also on deck. Well have the numbers and instant market reaction. As we head to break, a look at yesterdays winners and losers with sounds of 1989 i can fly higher than an eagle every rose has its thorn [ male announcer ] when fixed income experts. Work with equity experts. Who work with regional experts. Who work with Portfolio Management experts, thats when expertise happens. Mfs. Because there is no expertise without collaboration. Mfs. At your ford dealer think . They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. Thats why i got a new windows 2 in 1. It has exactly what i need for half of what i thought id pay. And i dont need to be online for it to work. It runs office, so i can do schedules and budgets and even menu changes. But its fun, too with touch, and tons of great apps for stuff like music, cause a good playlist is good for business. I need the bosss signature for this. Im the boss. Honestly i wanna see you be brave afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Is stand in the place where you live now face north think before direction wonder why you havent before good morning and welcome back to squawk box, here on our 25th anniversary, since we first went on air, General Electric reporting. For years we were part of ge because we were part of nbc. And bob wright, jack welch, tom rodgers god, i dont want to leave anybody else. Who am i leaving out . I think you have pretty much everyone. He came later. He came later. What hes done since is a little bit anyway. Becky brought that up by the way. 33 cents a share was a penny above expectations. Thats down 15 from a year ago because it excludes a lot of the nbc operations that are now they own 49 for a while after that initial sale. Industrial segment, organic revenue up 8 , Growth Market revenue up 7 . The estimate for revenue was 34. 36 billion and i think it came in at 34. 2. So on that much money, thats pretty close. It was down its because of shrinking ge capital. Which has been the story after the financial crisis. That was done 2 from a year ago. Jeff immelt making comments. It was strong organic growth, margin enhancement. Industrial segment profits rose 12 . Earlier, we had a nonstory about jeff immelt. They talk about succession every board meeting, i would think. I dont know whether anything was different here or whether more was made of that. I tell you what i think was different. Just in the same way we talked about ibm being a potential activist target you think ge . Theres been chatter they could become a target. In this environment as weve talked about so many times around the table. The bluest of blue chip stocks. Carl icahn went after apple. Google and cisco havent been hit yet. I sort of start looking at the top five countries that have cash on the balance sheet. What are they supposed to do with the cash . You could see somebody trying to come in and step in. I have an idea. Spin off nbc. Oh, wait a minute. Thats already done. Too late. Im always late to the party. Wouldnt that make sense . They did spin it off. They got yeah, anyway. You want to talk to jack about this . Absolutely. More insight on ges actually with some insight, lets call it. I dont know if its more. With some insight on ges earnings. Investment officer and Portfolio Management officer at harvard advisory. Take it away, jack, what do you think, not bad . Happy 25th, joe. Thank you. It was a good report. Back in december when ge gave its look ahead, they were talking about 4 to 7 organic growth possibly this year. After the First Quarter we had with relatively slow economic growth, there was concern they wouldnt make that. They came out at 8, a point ahead. So id like to hear what their industrial margins were like. But if theyre doing well on industrial margins which theyre hoping to take up 140 basis points over the next two years and organic growth is good, the shares are going to like that. Im looking at First Quarter margins of 50 basis points from the First Quarter of last year. They also point to 254 million reduction in industrial structural costs. I dont see industrial margins themselves. I take it back. Industrial segment margins improved 50 basis points. Yes. You know, theyve got aggressive targets for reducing sg a over the next three years. They have strong targets for increasing industrial markets. If they were to hit those two targets, reducing sg a to 12 of sales and increasing margins to 17 , youd get a lot of mileage and earnings out of that and the shares would trade with a better p e. They talk about having you can finish that thought in a second, but immelt has sort of repositioned this company. Hes probably getting pretty close to where he figures the fruits are going to start its going to start bearing fruit. Thats kind of what youre implying here now with the business theyre in. Wow, wow. That was from 25 years ago, that picture we have of jeff. That must have been the 5ye25 anniversary picture of jeff. The story, is he going to stay . In my view it would be his choice. Hes a young 58, obviously. Tall, you know, slender now. I think 58 is really young. I think you would agree with me on that, jack. Oh, yes. Would there be any reason, maybe if he fin shalled doing what he wanted to do and spend more time playing golf or something, i could see it. Its going to be his decision, not the boards, wouldnt you think . I think it will be his decision. I think the board is pretty pleased with his performance over 13 years. I think it will be up to him to determine whether he stays the full 20. Jack, what do you think of the chance that an activist shows up on a company like ge . Given the size of other companies weve seen activists show up for. As a shareholder what would you think about that . Right. Andrew, i think the fact that jeff immelt is making the progress hes making and if that fact they take ge capital earnings down to 30 of the total by the end of next year, which is their goal, those are things i think an activist would push for. I think the spinning off of nbc, these are the type of things, getting the business more lean, more focused on industrial, back to the roots, those are the types of things that i think an activist would be looking for. Im not sure that ge is going to be at the top of that list. All right. Do you know at this point anything else that is what do you think . If they were to do anything now, would it be adding to their fracing operations, their oil and Gas Services Industry . What do you think is the portfolio finished in terms of changing it . Or do they have other areas where theyd still like to bone up or get out of . Joe, i think they view their portfolio of businesses much the way we view a portfolio of stocks. Its an everchanging composition and i dont think theyre ever done. I think theyve made an awful lot of progress and i think theyre much happier with the portfolio they have now than where they were five years ago. I think the magnitude of change is not going to be great. It will always be considered a portfolio that needs to keep up with the times. I dont know how much is it seems like they i know eco imagination and that stuff. Theyve gone big in hydrocarbon. Its not just wind or renewables. They have some assets there. They are big in fossil fuels still, right . They know that fossil fuels are going to be the backbone of energy production. For decades. Yes. Fine. Okay. Thanks, jack, see you later. See you later. Thank you. Lets talk more about blackrock. It came in with an adjusted 4. 43 a share. The street was looking for 4. 11. This stock, if you look at longer term than three months, youll see a straight rocket up on this stock. Theyve been talking about raising the dividend to 1. 93. The chairman and ceo making comments, they saw 26. 7 billion in longterm net influence for the quarter, positive flow across all asset classes, client types and regions. This is interesting, too, fink making comments about whats been happening in bonds. The fixed income landscape is undergoing significant change, driving both institutional and retail clients to reexamine fixed income strategies. We continue to witness a shift toward unconstrained fixed income. Interesting comments. That stock looks like its up by about 0. 4 right now. And next, well talk saps ceo, bill mcdermott. The Software Giant rolls out Quarterly Results. Of course we have more of cnbcs 25th anniversary flashback thursday. I cant believe this song is 25 years old, too . Squawk box back right after this. Or are you just having fun geico motorcycle. See how much you could save. Alright, that should just about do it. Excuse me, what are you doing . Uh, well we are fine tuning these small cells that improve coverage, capacity and quality of the network. It means youll be able t post from the breakroom. Great did it hurt . When you fell from heaven awkward laugh . A little. laughs im sorry, i have to go. At t is building you a better network. Welcome back. Time now for the squawk planner. Lets get to becky quick for todays rundown. That is jim birdsall. Hes behind the curtain today, the man behind the curtain. Well reveal him later. Youll hear a lot more about him. In the meantime, earnings have been dominating the morning so far. At 7 00 eastern time we get pepsico. It will be out with its Quarterly Results. The cfo will be talking to us first on cnbc. At 7 30, Goldman Sachs due to roll out results. Of course weve heard from General Electric, dupont, blackrock. United health. We also have Economic Data coming up at 8 30 eastern time. The government will be releasing the weekly jobless claims report. Thats is your squawk planner. Lets get over to andrew. Sap fell short of analysts estimates, the Software Company said its Current Quarter will be impact by volatile exchange rates. Joining us now is bill mcdermott, the coceo of sap. Good morning to you, bill. Can you hear, bill . Hi, andrew. Happy anniversary, cnbc. Thank you. Can you hear me . I can hear you now. I can hear you now. How are you . I feel like a verizon commercial. Lets talk aboutier earnings. And lets talk about the currency issue. It seemed to impact google last night. Yes, i mean, we had a really good quarter. We lost five points of growth in currency. Obviously if you look at the revenue line in the cloud, we grew the cloud by 38 . We grew software and softwarerelated services by 9 and profit by 7. But as you rightfully point out, we gave up five points in currency. Having said that in constant currency, we beat in the cloud and on revenue. Here we are. What is your sense broadly in terms of Capital Spending with what youre seeing both in the United States and across the globe . Well, we try to do with sap is make sap the Cloud Company and power it by honna. Customers are willing to invest in a beautiful user experience. They want to invest in technology but it has to be easy to consume. They have to derive value from it to move the business forward quickly. We have, therefore, moved our company and our offering into the cloud on honna. This is another interesting dimension of our cover offering. We simplify the i. T. Stack by 90 . Theres plenty to invest in software. So it helps you grow. If you can help a company grow, we can get the money freed up. Commodity hardware or just commodity i. T. Is going to be a long road. Bill, help us with this. We were talking about ibm earlier. Talking about transition costs. One of the things that you have done as have so many other competitors have tried to take transition, the transition costs low and make it much easier for people to jump on the different cloud platforms, however, that makes the mote the ability to protect your clients from leaving you that much harder. How do you deal with that conundrum . First of all, when you have like a 99 customer retention rate, we like to think the customers that run sap are the bestrun businesses. So you have to keep your customer really, really happy. I think the idea of the cloud, to me, if im a retailer today, im not worried so much about getting locked into a vendor in the cloud as long as they help me connect with my consumer. If im a Health Care Company and im offering personalized medicine, im okay with getting locked in because that will help me deliver benefits to my constituents. I think it all comes down to not being in commodity i. T. Where youre offering a mote or a data center. You have to be offering a business process. You have to be offering innovation thats relevant to the company and their industry. You have to either take cost out or help them grow. Thats really what weve done with our company. Were defining our company by industry, in the cloud. We have to leave it there. We appreciate your time. We have Morgan Stanley news breaking across the wires. Well talk to you pretty soon. Joe . If, you know, if Morgan Stanley is running the company like theyre explaining their results, they must be doing pretty well. This is pretty clear for once. 59 cents is the consensus estimate. If you take out dva, its 68 cents. I dont have to subtract 68 from 59. Thats 9 cents above expectations. The gap was 72. If you subtract the positive dva, 4 cents, you get 48 cents a share. Firmwide revenue exdva, 6. 5 estimate, it was 8. 8. That was a couple hundred million above where wall street is. The stock is already trading sharply higher, closing at 29. 89. They beat on fixed income by the way, 1. 3 billion was the estimate. 1. 7. That was something we looked at on jpmorgan, the one that everyone thought if they were getting slaughtered, what was going to happen with morgan. Well get Goldman Sachs in just a bit. Asset management was off a bit. Given thats the focus of the business, thats a bit surprising. Margins. And investment management, 740 million versus 682. Pulling out all the stops. 31. I guess it has been there recently. Remember it has been there recently. We were worried about european exposure and they were in the teens. Recently. In the past year or two. It was a lot of worries. There was a lot of questions what he was up to. He held on. The investors won the day in a big way. He is talking about a further shire buyback up to the a billion dollars. That was 2012. How time flies. James gorman will do a victory lap on squawk. After all those nice things i said about him, he will be on squawk on the street. When we come back, pepsico, automation and Goldman Sachs. Next wednesday, first on cnbc with Warren Buffett. He will join us. The buffett auction. Winning bid of 1 billion depose to the homeless in san francisco. We have a lot to talk to him about. That is the day of coke shareholders meeting. Again, thats coming up next wednesday. Well be right back. ll be righ. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. Drivers, tgo our marks. Its chaos out there. But the mclass sees in your blind spot. Pulls you back into your lane. Even brakes all by itself. Its almost like it couldnt crash. Even if it tried. The 2014 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. Good morning. Im joe kernen. Regular earnings season is winding down. That means its time for the retailers. One high point, the limited. Second quarter net looks fine. Forecasting a big drop in Third Quarter earnings. I was looking into options earnings last week. Found things out about the potential sale of a division that could mean interesting things. Im maria bartiromo. This is squawk box, i program like none you have ever seen before. It is. When we come back, pepsico ready to pour. Autonation ceo gives his outlook for spring sales. Mine was earned in korea in 1953. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. At your ford dealer think . They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. [ male announcer ] when fixed income experts. Work with equity experts. Who work with regional experts. Who work with Portfolio Management experts, thats when expertise happens. Mfs. Because there is no expertise without collaboration. Earnings alerts on the 25th anniversary. Pepsi co ready to pull out profits. All about the generation ahead. Cfo Hugh Johnston talks to us first. Goldman sachs ready to report. Will it sway the market. Well find out 7 30 a. M. Eastern time. Did you know what the top selling car of 1989 was . The honda accord topping the forward taurus. Its been a long ride for the auto industry. Back to the future with his companys latest results. Squawk box begins right now. Good morning and welcome to squawk box. Im andrew ross sorkin. A lot of earnings reports coming out literally as we speak. Dow opening 60 points. S p up close to 7. Were at 2. 632. That is the number to beat. A busy day for earnings. Three dow components already in. One more due to report you know what . What . I always forget United Health. First quarter profit of 1. 10 the a share, beating by a penny. Faced earnings head winds related to the Affordable Care act. If you were an Insurance Company would you be mad . They signed on big time with the administration. Dow upon the earned 1. 58. Well read the w word a lot. Hurt by seven cents a share. A penny ahead. Revenue just absolutely below expectations. There was a rebound in ges industrial businesses. A loss of three cents a share. Expected a profit of nine cents. Morgan stanley up a dollar. Beat estimates by nine cents First Quarter. The firm doubled to 10 cents a share. Pepsi out with First Quarter results. Beating the street by 8 cents. Joining us to react to the numbers is hugh johnson, cfo of pepsico. The company has been under pressure to split the company up. With results like this, is this an answer back . Becky, i dont know if its an answer back. With 4 revenue, 7 up profit, and 10 eps, and strong top and bottom line, i think all investors will be pleased. Pepsico is a terrific investment. Im not sure anyone would want to disrupt that. Global snacks. 5 organic. Where are the strongest pockets for you, hugh . We really feel good about the portfolio. Each of those businesses are doing well. Frankly together they are really performing terrifically well. Thats true across all the geographies. The United States was terrific. Russia hit double digit growth. As we look around the portfolio, it is performing strongly. It is that tie together of beverages and snacks thats working rell well. Peanut butter and jelly is bought together 20 of the time. Snacks and beverages 50 of the time. We feel they Work Together and are amplifying each other nicely. What are you able to do . Get better delivery on things . What are the real nuts and bolts of why that works together . Its different around the world. If you look at developing emerging markets, the beverages tend to develop first. Snacks carry on from what was a bigger business. So developing emerging markets, it makes a huge difference to snack success. On the other hand, in developed markets like the United States, you really do have them purchased together, marketed together. If you were at the super bowl it looked like pepsico all week. The products were being marketed together. When someone buys a pepsico beverage, snack share is 4 higher. When someone buys a snack, our beverage share is four Percentage Points higher. Thats tanning theable evidence that in fact, the products actually do get sold together. They get marketed together. Consumers think of them together, much like Peanut Butter and jelly. Buffette is a coke guy. Fritolay, that company, if warren had a chance, i guarantee you he would want to buy it. Just one personal anecdote. If you go on a carbfree diet, the one thing i missed more than anything was something crunchy. I was eating pork rinds. Thats all youre allowed to eat for a snack. You dont want to eat. Its not a good situation before, during or after. Ruffles have ridges. Barbecue . Im honey barbecue or regular barbecue. You dont have to say anything, hugh. Lets me take it away. What goes better with those great chips than Something Like a pepsico product. Tostitos are my favorite. Lets talk about the reboot of gatorade. Some logos behind you. Quaker. Tropicana. People can talk about the connection clearly between pepsi and lays. Or fritolay. That makes sense. Some of these other brands, just tell us where they are in terms of whats happened to the gatorade. Whats happened to quaker . The gatorade performance is performing really well. It is selling really well. Were taking it to more places. We have a gatorade whey protein bar that is adding to the isotonic franchise. If i ask you for a protein snack here, what is it . Youre allowed to eat cheese but you cant put it on though. Maybe we can get you a protein cheese bar. Matador beef jerky . We sell beef jerky as well. This portfolio really looks beautiful. Rold gold . Thats us. It seems to grow very nicely. Can generate a lot of cash. I suspect shareholders will be busy with the outcomes. Warren would buy it if you spun it off. He really would. As you know, i dont talk about any individual shareholders. What you are going to see is the performance we posted last year with the performance we posted in the First Quarter, all shareholders will say, look, this is a portfolio thats working so well. Why would i want to change anything . When you saw him join the board of mongolese, what did you think . I dont want to get into other companies. Thats a better question for him than it is for me. We want to thank you for joining us today. We appreciate you coming on. Happy anniversary to you all. Thank you very much. By the way, if you want to talk about the global cfo council. When cnbc started in 1989, the average price of a car was just over 14,000. Auto nation is raking in billions in sales for sales. Mike jackson will talk results, recalls, auto nations latest push into the digital age. It is an important part of our 3 gdp. You better be selling cars. Well be right back. ll be righ. Cnbc celebrates 25 years. Ford mustang is turning 50 today. They have put a mustang on top of the empire state building. It was first intro the duesed in 1964 at the worlds fair. They had the take the car and move it apart in pieces. Same thing they had to do 50 years ago. Theres pictures of them taking it apart. First quarter results. 75 cents a share. The Company Rolling out the next phase of its digital strategy. Joining us now to talk more about the companys quarter, the impact of the g. M. Recall, mike jackson, chairman and ceo of autonation. It was weird it was so cold. No questionment good to see you. Happy anniversary. I saw phil at the new York Auto Show yesterday. Youre definitely taller, joe. Its not even a close call. Yes, we had an all time record First Quarter with earnings per share of 75 cents, up 10 . Joe, thats our 14th quarter in a row with double digit increase in earnings per share driven by an increase of revenue by 7 . The customer came out of hibernation and the end of march was absolutely spectacular. A expect a good Spring Market where we recapture business First Quarter. You have a lot riding on you on your broad shoulders. To keep the fed out and to keep on track 3 , is there any sector thats more important. Theres three thr undat are underpinning, energy, housing and autos. We have a selfsustaining recovery under way. Not as strong as we would like. Thats much healthier. It gives me a lot of confidence about the next few years. Panera, that is a wellmanaged company. Theyre doing digital stuff. Its costing a lot of money. They want to spend money now. Whae your new digital thing . Do you need to do it now . So it part of your visionary management style. As you recall, a year ago we branded the company under the name autonation from coast to coast. Started that a year ago. I told you back then as far as the question as to why now the question is digital. We think with one we will drive more traffic and generate more business. I can tell you after one year we are thrilled with the results. Not only has the brand been embraced by customers and associates with record quarter after record quarter, we have a tremendous surge in our digital business. We generate more. We have decided to accelerate. Were way ahead of schedule. We will invest far more in building the brand and building the capabilities of our website. They want one experience. So you have to have the ability to structure a seamless transaction between digital and store seamlessly. We have decided to accelerate our plans. It will be a real competitive nation for autonation. I wish we could talk about gm. Can you make an act about tesla . What do you think . Ill do both for you real quick. 30 seconds. Yeah, of course. G. M. , business as usual. Parts are arriving. Making the repairs. Anybody with a concern, we give a low tphar car. Im a Free Enterprise guy. If he want toss district his vehicle with a direct model, he should be allowed to. Im a Free Enterprise guy. Most dealers in the country agree with me. Tesla has been doing business this way in florida and california for years. Some day he will have dealers. I like where you started. Hey, you know, what, we have g. M. Cars. Well fix them for you here. Mike, thank you. Good seeing you guys. Good seeing you. Real quick, and we can come back. Black stone out with their numbers. 30 . Estimate was 55 cents a share. 813. 9 million. 7. 4 billion in transactions. We can talk about that. You can see that stock is up 3 in the free market. You can do the a little more later. When we come back, results from Goldman Sachs. The voice of cnbc. I never met him before today. We will reveal him later in the show. Time now for todays aflac trivia question. Who was the last nhl player to take the ice without a helmet . The answer when cnbc squawk box continues. Box continues. Aflac. Aflac, aflac, aflac [ both sigh ] ugh you told me he was good, dude. Yeah he stinks at golf. But he was great at getting my claim paid fast. How fast . Mine got paid in 4 days. Wow. Thats awesome. Is that legal . Big fat no. [ male announcer ] find out how fast aflac can pay you at aflac. Com. [ banker ] sydney needed some Financial Guidance so she could take her dream to the next level. So we talked about her options. Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a bank. They take a banker. Make a my financial priorities appointment today. Because when people talk, great things happen. Now the answer to todays aflac trivia question. Who was the last player to take the ice without a helmet . Craig mctestify issue in 1997. Our newest member of the squawk box true. This hour we will talk to the ceos of aetna. Guy on twitter, comfortably smug. He said joe concerner is the reason to watch squawk. Banking, politics, and the future of the economy. Not really. Thats the opposite. A rare interview with im going to be paying attention to the weather. Is that better . Im paying attention to how wet im getting. Whats wrong with me . It is very hard to focus. You said i look like ive aged. You look thinner. You look better now. Thank you. You do. I think that was from 2001 or 2002 that shot. Thats a good shot of you, though. The lighting is better now. That was the nasdaq. Carl q was the host of that show. What a wakeup call. Look up. Look up. Over the other way. Thats right. Wowment thats pretty amazing. Thats the way it is. Its like straight. Take it from me. All of a sudden its just everything. Gravity. I dont know. I dont want to get depressed. On thats you. Whats wrong with me . Lets get to michelle carusocabrera. Breaking news. Vladimir Putin Holding a News Conference for several hours. Edward snowden made an appearance via some kind of technology. He did ask a question. Hes not there in person. I would like to ask a question about the mass surveillance Online Communications and the collection of private records by intelligence and law enforcements. Does russia intercept, store or analyze in any way the communications of millions of individuals . We edited down the question because it was very, very long and wordy. But that was the core of the question. Putins response translated by our producer who has been watching who speaks russia. I used to work for Intelligence Services like you. We all talk the same language. Our efforts are regulated by law. We dont have any kind of laws that allow that. I hope we dont do that. And we dont have the money or the technical devices thief in the United States. Are are you kidding me . Our services thank god are protected and regulated by law. That whole thing was setup to say we dont do what they do. When we went to sochi we were told russian law says they can look at anything on your phone in its a joke. Yeah, auto the a joke. He will win the nobel peace prize. At your ford dealer think . They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. I was going to say this guy, the man behind the curtain, wizard of oz. Notice he does everything in one tape perfectly . We have been paying him by the hour. He has been cranking this stuff out. Where is he . Hes getting a cup of coffee. Were paying for like eight hours. He takes multiple takes like we do. He could do it live. So all these years. Thats a racket, voiceovers. His voice is so good. Look at you. Im excited to meet jim. I can see that. Hes the guy who says soda is why youre fat. Warning, soda is why youre fat. Weve got gas. We havent done that for a while. I asked about that early this morning. We played soda is why youre fat. He completely forgot saying anything. Act like a ball and bounce. It will just take four tries. We have ge, dupont, united and goldman, which we are still waiting o. 33 cents a share for the First Quarter. It saw a rebound in industrial businesses. The stock is up by 1. 45 . Dupont matching. 1. 58 a share the First Quarter. You can see stock is up 1. 25 . First quarter profit of 1. 10 the a share. Health insurer says it was hurt by the Affordable Care act. Medicare costs were a little lower than had been in the past. It is down 1. 6 . In about an hours type, janet yellen speaking in new york yesterday said return to full employment is still a couple of years away. Its a sign of how have the economy has come that a return to full employment is, for the First Time Since the crisis, in the medium termout looks of many forecasters. It is a reminder of how far we have to go that this longawaited outcome is projected to be more than two years away. The chief economist of rdq. What do you make of her anxiety . I thought not just about employment but inflation. That we might be under the number. Neither of those things are known from the fed. The 2016 forecast is when they get back to full employment and inflation is still a little bit below target. There was a little reference where inflation could be on the high side. We have to react then. I think the media is reading janet yellen wrong. They want to paint her as a dove. She must have made a mistake. They are not going to be raising rates. And you think she is raising rates that soon . Well, i do i think what she is trying to do is transition away from the idea that rates are at zero as far as the eye can see. If unemployment turns out lower, inflation turns out higher, the fed will be raising rates sooner. Is it going to be going up any time soon. That has been the feds position for a while. What we had earlier this week was a cpi that surprised a little bit to the up tkside. And i think we could well be there by the end of the year. So worries about deflation are nothing new after the fed. What is new is the flexible transitioning back slowly to a policy rule where they respond to inflation as opposed to unconditionally. The wait is over. Would that be your headline . We already know the fed is tapering its way out to the bond purchase business by october or december of this year. Some people believe shes such a dove if things turn truly sour it will turn again. The fed cant do anything at this point. I just came back from the atlanta fed conference. What is the fed achieving for the economy . It is potentially creating side effects that it has to deal with later. But theres no doubt about it. If unemployment starts going up, if inflation falls, the fed will keep it zero rates for longer. I dont think thats going to happen. Where do you think employment is 12 months out . I know the Unemployment Rate by the end of the year would be close to 6 . Were 6. 7 . You think we get to 6 . Whether we are below 6 for good reason creates job at a faster pace. Because fewer people are looking for jobs. Thats been one of the big factors in driving down the Unemployment Rate. One of the key issues is have these people left because they are discouraged and waiting for their jobs to come back. Do you expect to see the Participation Rate pick up . Thats what you generally see as the job market improves. As i can testify, the engine is bringing down the Participation Rate. That is going to be a dominant factor the next 5, 10 years that will override any cyclical move. I think it remains flat for a year or two. How low do you think it gets . Five handle . Five handle inside 12 months. And the fed will hold rates at zero . Well, that is a problem. Having Interest Rates at the time 2. 25 . Two Percentage Points where they think it should be in the long run when the economy is at full employment. Now, let me say this, i dont think full employment outcome is necessarily a good outcome. A lot of people have been out more than 26 weeks. You think she knows that . Do you think shes on board with that idea . She has her dashboard of indicators wheeled out at the last press conference. Looking at job openings. Most importantly, wage increases. When wage increases start running 3 , thats the point where the longterm unemployment are slacking away the market. They are not people ready and able to come back into the labor market. So its a wage increase number. She gave us that 3 to 4 . Thats where she wants to see wage increases. Theyre running above 2 now. Anecdotal anecdotally, stories of wage increases picking up in some of the metropolitan areas where the labor market is relatively tight. If that follows through as i think it will, that will be the time the party is over on zero rates. I have an idea of getting down in the fives. I dont know. We have been waiting a long time. Maybe this sounds different. In what is funny is gdp disappointed in terms of being low expectations and the Unemployment Rate has fallen fast. We all specked hawkish comments from the fed. They dont seem to agree. I think theres an unbalanced representation of what the fed is saying here. The focus is still on janet yellen as the dove as opposed to janet yellen the economist who looks at various inputs and acts accordingly. We will go through a transition. I hate to use a technical term. But we will learn about the the fed reaction. The dots in the last fed set of forecast materials, people say, well, the dots have moved up. Maybe they need to have a little bit higher Interest Rates out there. A little inflation would be nice. Dont want 20 years without anything. Thank you. Appreciate it. Thats some hope. I like that kind of hope. And were listening to cher now. 25 years later. Goldman sachs earnings expected to hit any minute. We will bring it to you. Were traveling back in time to 1989 to be in fact. Cnbc celebrating 25 years in the making today. One of our very first guests on the air will be joining us. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Dow component Goldman Sachs. It is Anniversary Day the. Things are happening like they used to happen. Goldman used to blowout every number it had. Remember those days . This is good. 3. 45 was the estimate. The Company Earned 4. 02. I see net provisions and charges for regulatory proceedings of 115 million. I dont know whether there are any gains. But the stock is up 3. Now it is up 4. 56. And they said they are generally pleased with the performance given the current operating environment. Revenue was also well above. 2. 03. Whats the revenue number . 9. 33 versus 8. 7. And then some of the different metrics. Investment management. 1. 57 billion. Investment banking, 1. 78 billion. Ficc revenue, 2. 85 billion. Institutional Client Service revenue, 4. 55 billion. So you can see from actually, the stock is only up 2. 52. It will trade. Banking analyst who covers goldman. You have just seen the numbers yourself. Whats your instant reaction to the numbers . Well, we have had two camps so far this quarter. Jpmorgan on one side. We have city the group, Goldman Sachs, bank of america and citi on the other side. Revenues were up from fourth quarter. Relatively flat last year, which is a positive surprise on that side for those four banks. In terms of whats happening, they say they are relatively pleased with things. During the quarter they saw some constraining client activities. Market sentiment shifting throughout the quarter. What do you think he is talking about with that . What seems to be happening is on the commodity side and the credit spread type of products, they seem to be doing a little bit better as folks are looking back for yields. Those are being able to play in the products are doing relatively well. The stock has been up 4. Now it looks like its up 2. Would you be buying here . Sure. We continue to think what we have is the Investment Banking hasnt kicked in yet. They arent showing positive traction. We think as you go through the area, it will start to tilt positively. Thats good for Goldman Sachs. We have a 50 cent beat on revenue without Investment Banking. When you get it in, it will be a positive that will keep the momentum going in the back half of the year. What question will you ask on the Conference Call . Well, again, we will Start Talking about their expense and the way they do arnold accruals. It is pretty impressive they were able to hit the number with the jump in expenses. We should see more back in the year as some of those catch up on accrual. We will make sure its still in place. Because they overaccrue in the first part. Marty, thanks for calling in. We appreciate it. One of our first guests on the air when cnbc launched. We will talk the good old days. And Janet Yellens comments yesterday. Yesterday. At your ford dealer think . They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. Richard simmons has been sweating into the oldies for more than two decades. I want to talk about the muni bonds in just a discipline hes very needy. Youre controlling. Are we on right now . Yes. I thought we were just having a conversation. Youre metabolism is not doing anything. Youre smart. We all know hes brilliant. Im on squawk box you look good. Thank you. Mother, daughter. Your mother, your sister. Mother, sister. He doesnt even care. I do care. The sun will come out tomorrow people ask over the years who is the favorite people you have interviewed. You can have buffett, gates. The best business guest is not as good as a Richard Simmons, fabio. They are fun. They are. Over Richard Simmons . Yeah. Well, then youre wrong. We dont have to choose. With he get all of them. He said i still look pretty good, as i turned around and walked away. That was a i couple years ago, though. I got the sex and the city saggy thing happening. Thanks, andrew. I said you look just like you did. You look the same too. Mostly. Fao. The very first guest on the first day here at cnbc. He joins us to commemorate our 25th anniversary. Sue is here. Scott maybe. I dont know. Griffith came with me later. Do you remember . Saw was the main. Interviewed on the first day by kneel cavuto. God i love that man. Did you hear the interview we had with him. When i wasnt getting my makeup put on. Do you agree with all those things . Well, im a little bit more concerned about the economy. We have lost the increase. Housing market slowing. We have no increase in weight in the stock market. So we are hoping for some increase in consumer confidence. Yeah, im a little bit concerned about that. John, you were youre sort of out of the mainstream. I dont think so. 3 gdp growth. Unemployment is dropping to six at the end of the year. I think those are fairly close to central forecasts for most people. You think were in a tight labor market . I dont think it will fall quite that much. The economy is still the struggling. We havent repaired competitiveness in the United States. I dont see the job growth kicking in. Stkpwhrf did you see this on regulation . Regulator without peer. Regulation is a huge issue in the economy. Much more than monetary policy. Despite obama care. Not just obama care. I completely agree. The u. S. Economy, despite that, is growing close to 200,000 jobs a month in spite of all of that. We have all these people who arent working. I grew up in detroit. You look at detroit. Saginaw, bay city, these people arent going back to work. If the fed increases money supply so you have bills knee high on wall street, still you wont put people back to work. Factors have been closed. Housing prices are falling. The areas are depressed. Theres knowledge so much you can do. It exported cars to other parts of the United States. That brought revenue into michigan. When that doesnt happen, where does it come from . Michigan is only one place with this kind of industrial problem. Our trade balance is looking better. We have all this energy stuff were making. Also in spite of. Yeah. The pipeline that he killed was for canadian oil. Theres a lot of regulation. There is all this radioactive waste turning up as a byproduct of fracking. Earthquakes too. Some people think. Possibly, yeah. Its complicated. The germans have a lot of natural gas. They are not allowing tprabing. They are dismantling their nuclear facilities. Is that Michigan State . Michigan state. There you go. I like that. Im sorry. One of these days. We have to do more thursdays for this music. You like the cher music which says volumes. Thank you. What about paula abdul . Shes a dancer. Well be back. [ banker ] sydney needed some Financial Guidance so she could take her dream to the next level. So we talked about her options. Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a bank. They take a banker. Make a my financial priorities appointment today. Because when people , great things happen. Make a my financial priorities appointment today. Could save you fifteen percent or more on car insurance. S Everybody Knows that. Well, did you know bad news doesnt always travel fast . clears throat hi mister tompkins. Todd . Youre fired. Well, gotta run. Geico. Fifteen minutes could save you fifteen percent or more. Without standard leather. You are feeling exhilarated with frontwheel drive. You are feeling powerful with a 4cylinder engine. [ male announcer ] open your eyes. To the 6cylinder, 8speed lexus gs. With more standard horsepower than any of its german competitors. This is a wakeup call. The markets get a boost. Fed chair skwraepbt yellen. Key earnings providing the spark investors need to send stocks higher. Federated chief executive strategist phil orlando. The appetite for restaurant stocks. A closer look at the sector with the top rated analyst. I hope youre hungry. You should see the toast. I couldnt even get it through the door. Well introduce you the man behind many of our teases and promos. Find out more about my amazing voice and my illustrious career as the final hour of squawk box begins right now. Everybody is talking the all this stuff about me, why dont they just let me live i dont need permission, made my own decision, thats my prerogative what was the band he was part of . New edition. Was it new edition or bobby brown. Isnt there a First Edition now . Who is the guy with the hair. Kid rock . Kid play. Harry stiles. One direction, First Edition, new edition. You like cher, paula abdul and boy bands. Welcome back to squawk box by the way, doesnt our voice guy, just by looking, doesnt he look like the most interesting guy in the world . I thought he looked like the guy from what show was that. Larry chandling. Thanks a lot, guys. I didnt say anything about what you looked like a minute ago. He has seen us. We have never seen him. This is the cnbc 25th anniversary. Kansas city chief guy. Nfl films. Hallmark. Im joe kernen along with becky quick and andrew ross sorkin. Our guest is from rdq economics. Hes here. Hes saying nice things about people making more money, unemployment going down, gdp going up. Futures right now arent listening. Lets see whether goldman helped. Goldman had a pretty good number. Sit a dow component. Now it is half of what it is. And up so much earlier. All new dow components. United health care. Its. Also a dow component. We have had some today. Visa . Visa is too. Thats a dow component. Earnings central ex traoplly busy. Lets start with some of the numbers. Goldman sachs out a few moments ago. Earning 4. 02 for the First Quarter. Thats swamping estimates of 3. 45. Did see a drop in Investment Bank revenue. Still managing to do much, much better than analysts had participated. Those guys doing a little bit of a victory dance. Beating consensus, blackrock compared to 4. 11. Results were driven by growth and assets under management. Also doing better than expected, blackstone. Steve schwartzmans firm, 70 cents per share. Total of 814 million. That was the best First Quarter for blackstone since it became a publicly traded company. So a lot of different numbers to choose from. Pepsi earlier. Lots and lots and lots. Morgan stanley killed it. Im surprised the markets are turned down. It was the strongest threeday run we have seen in quite some time. A lot of volatility. Not just earnings driving things right now. You had comments by fed chair yellen. Thats one of the reasons the major markets yesterday enjoyed a really strong rally. Phil orlando, chief equity Market Strategist at federated. Great to see you this morning. Thanks for having me back. What do you think is driving the market . Well, certainly the yellen lunch was a good lunch yesterday. I was there with 2,000 of my closest friends. I think she made two important points. Number one, she didnt repeat the rookie mistake she made last month at her first press conference. No sixmonth discussion. She was greenspanesque. I think she went out of her way to talk about the no preset course, the data depend epbt course. There seemed to be a fed put very much in play yesterday. As joe pointed out the last hour, does it have anything it can do to back up that tough talk . At this point, i dont think so. There was one very interesting element out of her prepared remarks. They tried to bait her. Dr. Yellen, suppose unemployment is doing okay but it is inflation that spikes up. What is the fed going to do . She said, look, if inflation is the problem, we will deal with the inflation issue. She said its the lack of inflation. Her base case at this point is that were dealing with more of a risk of deflation or disinflation than hyper inflation. Thats her bias. But if it turns out that forecast is wrong. If this is a situation where were watching Inflation Numbers running low and a lot of people have been anticipating, other people buying groceries or gas, they will tell you a different story. But things turn quickly generally when you do see a spike in inflation. Do you worry about that. It can turn quickly. And i do worry. I think what youre hearing from phil is what i say about the reaction function. If inflation turns out higher, then we will do this. It is getting away from the unconditional promise of zero rates. That is the real message the fed is trying to get over. People want to listen through the filter of shes a dove and shes telling us rates will be on hold even longer. Im not sure thats right. Food prices. They are a devilish this year. We saw rent starting to kick in. Thats a big component of the Inflation Numbers. Do you think the market is kind of putting off this day of reckoning that will happen . Do you think the market is ready and prepared to raise rates . I think the fed has telegraphed are bernanke exactly what will play out the next two years. This is the unwind of qe. Thats going to happen. Qe will be done by the end of this year. Sometimes next year the middle of next year . The middle of next year we get back. The 3 number plus over the course of the next couple of years. At some points it will start to normalize. Maybe it gets to 1 by the end of 15. What do you think about what we have seen so far . The expectation is whether it will have a significant impact. Revenues up 2 , 3 . Some bias to the the down side. Management has done a great job of lowering the bar again. We end up, as we do every corner, with surprises to the upside. Does this take us to new highs in. It could very well. We could very easily move 50 points or so. Were concerned about hitting a potential air pocket in the summer. Having hit oversold levels three or four days ago, we got a good speech out of yellen. Numbers are okay. The blow was moving us up. We absolutely believe weather was the issue. Thats one of the differences. The bears will son seed Second Quarter gdp will be better than first. We think the second half will stay 3 plus. There is not enough underlying strepbg. The economy will slip back. We will not know that until we get in the second half. Thats the difference in the arguments. I just noticed you have easter eggs on your tie. I like it. John will be sticking around a little bit longer. When we come back, we have more spicy earnings coming up. This time from chipotle. That stock is up 5 . Were going to give an outlook for the fast food sector. Our special voice man jim burnsall is here today. You havent seen him yet. You havent seen the man behind the curtain. You will in just a little bit. Jim, take it away. Still to come on squawk box, jobless claims data. And as we head to break, just out the squawk box realtime market indicator. Squawk box is coming right back. Back. All stations come over to mission a for a final go. This is for real this time. Step seven point two one two. Verify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Welcome back. Mary thompson spoke to the cfo of Morgan Stanley. She joins us. Her comments. Just got off the phone with her of course. She was commenting on the company which was very strong and showed the companys Business Plan is working. I asked about pretax margin and Global Wealth management. It was about 19 . Theres a longer term goal to get it up into the mid20s. She said the retail clients have been engaged. Given the volatility in the markets in the First Quarter they were holding some of their positions. Not robust activity there. Speaking about fixed nick commodities in currencies, has been an kill lease heel. Strong results in commodities she attributed it to. Corporate clients are becoming more engaged. They are starting to see positive reaction in the stock when some of these deals are done. Lastly, in speaking to her about High Frequency trading i asked if the company had any plans to enhance their own equity business. She said Morgan Stanley welcomes any enhancements to market structure. An tkraourbgs back to you. We should note we will be interview james gorman today on squawk in the street. 10 30 eastern. Back to you, andrew. Thank you, mary. We are talking chipotle. Numbers fell shy of estimates. Shares trading sharply higher this morning. About 3. 25 higher. 555. 65 is the number. It has been one of the momentum stocks that lost its mojo. It slowed down sharply the past couple of weeks, fall 4 the past month. Could a spring bounce help get them moving again . Nicole miller reagan, senior restaurant analyst at piper jaffery. Are you in . I am today. The best food in the country. Youre in the right place. Do they have chipotle . They do. I get up to channel check it as often as possible. Absolutely. Walk us through these numbers. What do you make of them . The top line is awesome. The bottom line, a bit of a miss versus consensus. Were in a high cost to goods inflation period especially as it relates to produce. And avocados is one of their problems . Chicken is part of the problem . Exactly. You have a price target of 550 on this stock . Along with the rest of the street, the investors, its been chasing this one. Theres no other good mid cap growth option. So there is scarcity, which drives the premium in the stock higher. This is trading 42 times 2014 earnings. Thats double panera or any of the other guys in the space. Well, theres a great example, paneer ya. All of it is traffic. Positive traffic. Paneer ya as an example is frankly, you know, in a low single digit comp territory with negative traffic. Scarcity value. Its a mid cap story of one. How long can this go on . They build this year, next year and the year after that before they start to saturate the market. This is an economic engine. They are so efficient and have so much capital that they can build up the pace for a very long time. Again, they are doing it internationally. Theres optionality there in the growth. Are you worried theyre going to try new stuff . Theres conversations about Opening Stores off or beyond the chipotle brand. They have the human capital. They have the strong balance sheets, financial capital. The model itself is an economic engine. It doesnt matter what cuisine they put through. Mexican doesnt matter is the chipotle brand for you. Well said. They have the opportunity to still grow chipotle. They are testing the waters with asian and fast casual pizza. Frankly, we expect them to go into a number of cuisines down the road. Panera is doing the same do you think it will pay itself back eventually . Absolutely. Its not about where you are putting your locations about how people find those . Its what they do once they get to the location. Can they order ahead, pay attention, sit and use wifi. It is factor in stems of convenience. I love a good burrito. Kind of hard not to. The worst mexican food is great. Yeah. It is great. Cant have bad. Right. Kind of like italian food. I would agree with that. Anything in moderation. You would never step foot into a taco bell . I would. That would have to be in moderation, though. Mexican food, thats one of the problem. Living in l. A. For a while. You can go to coyote cafe. I miss that. And margaritas . How do you beat that . And whats the other one thats good . Baja. Baja fresh. The worst one is great. The worst one i ever had was great. What . When we come back, a read on unemployment in america. Right now as we head to break, heres a look at some of the best performers since cnbc launched. We are celebrating our own 25 years today. Squawk box will be right back. Really. So our business can be on at ts network for 175 dollars a month . Yup. All five of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line anytime for 15 bucks a month. Low dues. Great terms. Lets close. New at t mobile share value plans. Our best value plans ever for business. Good morning, everybody. Welcome to squawk box here on cnbc. Sir Richard Branson here at davos. It costs money to get in there. Im a cheapskate. A bird poops on my head 10 seconds before we came back to air. Look. Hold on a second. It is all work here, most of the time. You shot a hole in my pants. D. J. Jazzy beck. Wow. Sorry. Hard to ride side saddle. There are two strings on me. Speak into the microphone. We cant hear you. You are the best thing you can see where i shot you . We had a paint gun fight. It went through my pants. He shot me at pointblank range. I still have a cigar type burn. We were on opposite teams. My mission was to kill you do you know how to play paintball . So mean. I wasted her. She came around the corner and was right there. Charlie versus carl and i. You would think it was honestly, like you were sent off to a foreign land the way he did it. Barking out orders. Still like that. But its funny you said Richard Simmons would be your top. Still didnt add up. That was a great shot. We have more stuff going on. Its been a very extremely busy morning. Goldman sachs earning 4. 02 for the First Quarter, swamping estimates of 3. 45. Goldman saw a drop but managed to do much better than analysts anticipated. Blackrocks results driven because of growth and assets under management. Doing better than expected, blackstone, total of 814 million. That was the best First Quarter for blackstone since it became a publicly traded company. Do you have this . Check out your twitter. They have sidebyside shots of you. 10 years ago . Yeah. Look at that. You does the same pose. I really liked those pants. Im sorry. That is the first time in eight years you said fore for that. Sarcastic. Im sorry i played the gamelike its supposed to be. Coming up, weekly jobless claims data. Value stock picker scott black of delphi. Tdd 18003452550 trading inspires your life. Tdd 18003452550 life inspires your trading. Tdd 18003452550 where others see fads. Tdd 18003452550. You see opportunities. Tdd 18003452550 at schwab, were here to help tdd 18003452550 turn inspiration into action. Tdd 18003452550 we have intuitive platforms tdd 18003452550 to help you discover whats trending. Tdd 18003452550 and seasoned market experts to help sharpen your instincts. Tdd 18003452550 so you can take charge tdd 18003452550 of your trading. [ banker ] sydney needed some Financial Guidance so she could take her dream to the next level. So we talked about her options. Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a bank. They take a banker. Make a my financial priorities appointment today. Because when people talk, great things happen. Welcome back to squawk box. We have been watching tpaoufpls. On a busy earnings morning, a lot of positive earnings news that havent played out. They are down 15 points. We will see what the economic numbers do. Rick, take it away. All right. We did not violate the 300,000. 304,000 is the number. Last weeks 300 popped up to 302. Add another two, youre up to 304,000. Continuing claims, moved from 2. 75 million to 2. 739. We had a huge drop and the markets didnt seem to pay much attention. It certainly seems as though the millions of people that have been out of work for than 27 weeks, the fact that the federal reserve, whether they target or dont target, they guide or dont guide, they do seem to be trying to impact jobs. But i think the structural issues that they are unwilling to admit to dont make this number as important as it could be. Janet yellens talk yesterday, in terms of keeping Interest Rates low, a flattening on the curve. It seems to be pushing back towards the fed. How many times were you on squawk as a cme guy . How many years . I started guesting with mark haines in 1994. When did we hire you . You were so good. 99. I was a guest for five years before contributor was even invented with regard to tv. So i guess officially its going to be 15 years. Its more like 20. I dont know about you, ive had a really good time. I cant think of anything i would rather do getting up at 4 15, getting ready, taking the same train for 35 years, coming to the same financial district for 35 years. I think im a lucky guy. Ill tell you what, cnbc family, i have to thank you. Its been a great run. I cant wait for another 25. With this pace with the economy and all the wonderful politician, ill be 90 years old with a walker still doing these. Trust me. Not a walking dead walker. It has a whole new meaning. Im like forrest gump. Im there when the things happen. I dont have anything to do with it. Im standing behind lbj dr. Dr. Pepper. That always was a significant thing. Listen, be everybody out there knows. There was that moment in time in february 2009. Wonderful moment. Im proud of it. Watching some of the channels yesterday, we were watching Tea Party Candidates arent really good candidates. Theyre missing the point. When is the last time you saw a Tea Party Convention or Campaign Finance chairman. The issue is the discussions in the country and the big issues about size of government, scope of government, reach of government, tea party is a philosophy, frame of mind. It isnt an official party. Its the huge voting bloc that will vote on the candidates. Thats the movement. I think it has changed the country, in my opinion. Well have to wait and see. Its true americana when you intersect. Consecutive values of this country. The more people that i dont respect, the more they hate them, the more right i know they are. Anyway, thank you, rick. Thank you. Lets talk jobs and the economy. Join us now is lindsay. Andrew . Its not fair. Piegza. You are incorrect. Go again. Peegza . You are still crest. Pegza. Just stop. I was not supposed to introduce. No. We set that all up. You see me typing over here . I see whats going on. I have enablers in that room. I think we need jim here every day. We do. We have the guy from kansas city to help. I love you. I said you look better than before. You had no idea, did you, that you would be up for andrea. Lindsey, is that okay . Of course it is. Continues here as well. With yellen lunch and all these different things, lindsey, in fed puts, whether they have any ammo left, hopefully they wont need it. Hopefully it is upticking. We finally get a little bit better recovery than in the last five years. Are you on board with that . It is very uneven. Evening this mornings reports. We are seeing jobless claims at least on the front end, which is fewer job layoffs. Less job destruction. We havent seen that translate into the second half, which is meaningful job creation. We are seeing lackluster hiring. It means the fed has difficult jobs remaining at this accomodative pace longer than expected. Is your point the people that are lowering the Participation Rate, we shouldnt view them as in the workforce and wanting to work . We should write them off . Im not saying we should write them off. Its not foggy to help them. Thats the key difference. In lindseys take, can it help, what we have is a low highwin rate and a lot of why is it, lindsey, we have so many job openings relative to the number of people unemployed not taking the jobs . Thats a very good question. It goes to a skills mismatch. A lot of Small Businesses saying im ready to ohio. They dont necessarily have the skill sell to fill the job vacancy. Even if we discount the 12 million americans, still not seeing upward pressure there. With 13 million americans in the fool of available labor, 11 million seeking employment, were not seeing the upward pressure on wages either. That, too, is somethe thing the chair and the Committee Members are watching. Its was sloughed off due to weatherment if it had been weather alone, skwr uft ice and snow, we would have easily have seen a return of the plus 200,000 pace in march. March would have been one of the first months to suggest a momentum in catch up from the previous months. Taken together it is losing momentum from the start of 2013, not painting an encouraging picture. Think about it, lindsey, if we still didnt hit two, what will the next week . I think we can get more springlike weather and more catch up. With the chipotle. No mustard on the side . Lindsey, thank you. We have never done the show in las vegas. And i think thats a big pit fall that we have not. Every time you want me, it seems im up at 4 00 in the morning, always on the coast. I thought when steve wynn. We have been invited by the maloof boys. Oh, youre leaving . Youre getting replaced by our voiceover dude. Were going to expose him. No. Unveil him. Hes foggy to expose himself to all of us and our views. This has been brought to you by joe kernen. If it makes you come back for the commercial, maybe he will. Thank you, john, for spending the morning with us. How can i top that tease . Not easy to do. Well tell you one other thing, squawk box platinum portfolio member scott black will join us with names you should be adding your Second Quarter. Uhhuh. And exposure. Stick around. Well be back. Well be back. Ct management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. [ dog barks ] [ male announcer ] imagine the cars we drive. Being able to see so clearly. To respond so intelligently and so quickly, they can help protect us from a world of unseen danger. Its the stuff of science fiction. Minus the fiction. And it is mercedesbenz. Today. See your authorized dealer for exceptional offers through mercedesbenz financial services. Cozy or cool . Meow or woof . Exactly the way you want it. Until boom, its bedtime your mattress is a battleground of thwarted desire. Enter the allnew sleep number classic series. Designed to let couples sleep together in individualized comfort. Starting at just 699. 99 for a queen mattress. Hes the softy. His sleep number setting is 35. Youre the rock, at 60. And snoring . Sleep numbers even got an adjustment for that. Find your sleep number setting only at a sleep number store. Know better sleep with sleep number. Welcome back, everybody. We are picking up hot new stocks for our platinum portfolio. We are adding scott black to the roster this morning. Scott is a member of the barrens roundtable. Berk higher hath away class three shaurs. It is great to see you. Thank you for seeing us this morning. Thanks for inviting me, becky. Happy 25th anniversary to you and your team. Thank you very much. Youve been with us a long time. These are the shares trading north of 60 tip. Why pick this one . The stocks are about 126. We figure that the book value is approximately 93. 1. 35 times book. The average stock on s p is selling 2. 72 times book. This is half. I can assure you that Warren Buffett is much smarter than the average idiot in the s p 500. If you read the annual issue, 77 billion worth of flow. Thats another 33 a share. It is actually book value. The nice thing, really that is not an investment company. Its an operating company. He refers to his powerhouse five. 66. 5 of the earnings now come from the operating business. Really a third from insurance and investment acumen. Very cheap stock. The metric that warn uses is growing 13. 8 compounded. This is ridiculously cheap. Do you have a price target where you would expect to see the stock over the next year . Theres no reason the stock shouldnt go to 1. 5 or 1. 6 times book. Even if the economy slows, this is very good resistance against a sluggish economy. With warrens investment acumen. Each is run individually. Very good businesses. Pvc energy. Why do you like this stuff . This is very cheap. Stock is 67 a share here. 54 are liquids, i get roughly 95 a share in breakup. The companys production is exploding. Last year was up 35 . Minimum expectation is 28 . Could be as high as 32 . They are doing extremely well. We have the capacity to continue their exploration program. Big fines are in oil out in the watteberg field. They are making patient of 25 on the wells in wattenberg. We have only counted proven reserves. They are getting 90 for the oil. 4. 05 per mcf for gas. 40 of the hedge this year. A lot of it is in the bank already. It is cheap. If you use price to discretionary cash flow, it is 7. 7 times. The flash memory maker had Gross Margins outlook for 2013. Is that part of the reason you like the stock . I liked it a long time. It was a pick in january. They dominate. They have a joint venture with toshiba. 50 of the worlds flash memory. Over 4 billion of excess cash, which is 18. 25. We are using conservative growth targets. We think they earn 5. 80, low end of guidance in terms of operating margins, 27 . We take 50 cents a share. So if you look at the stock and you subtract out the cash per share and the 5. 30 in gap and nongap earnings you get 10. 8 times earnings. Very cheap. The company will do 18 on book. Its a very good book. We were out december of last year in silicon valley. Grow the top line and the bottom line in the secular basis. At least 10 . They are opening a new fab in japan, fab five. Spending a billion dollars this year. Scott, great talking to you. We will see you again soon. Thank you for inviting me, becky. Thank you, scott. A programming note. Ceo and cofounder of sandtheisk coming up in the 11 00 hour. We should try to do that sometime. Ready . Can you do it . Yeah. Start on three. One, two but theyre not on you. Okay. Im going to do it. One, two. Go. Coming up, our big voiceover unveiled. But up next jim cramer on Goldman Sachs, ge and blackstone. Monday, tune in to squawk box for your monday morning strategy. Cofounder mark oconnor joins us. Plus, the ceo of aristor advisers. And our take is disrupting the music business. The fun begins at 6 00 a. M. Eastern time only on squawk box. Box. They think about tires. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. In todays market, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Get down to the new york stock exchange. Cramer, were you what were you . You were a columnist, werent you . And a hedge fund guy. Were you in money . Where were you . Exactly where i was. You know, kind of the exactly at that moment where people were saying i guess i have to watch tv while im at work. That was very contrary. You dont put the tv on. Youre supposed to be working. It turned out that working was watching tv over the period of the next ten years i was in the business. And you were in your bigtime Earnings Period of your life . True. At cramer beshg cowits. Thats very true. And then you would come on and guest host and then we how did it i remember your retirement party. Do you . You did not retire, dude. Sure. You did not retire. That was just a phase. Then kudlow and cramer. Right. Then mad money. Wow. We have been through you were at my wedding, remember that. That was a fabulous remember. I remember karen cramer smoking cigarettes with mark haynes. We go way back. Were going to unveil were going to expose our voiceover guy. Did you see that . This is very exciting. I think his voice is the voice of god and you cant believe the voice of god is on the set. Whats your favorite report today some. My favorite report is near and dear, General Electric. Up 50, 60 cents. Yeah. Thats the beginning. This is the beginning of the industrial breakout. Sometimes you look at these quarters and say when is it going to happen. And then it happens and you cant just say fine. No. Its this quarter. This is the beginning of the industrialization of ge. Finance is in the past. Oil and gas unbelievable. Power really terrific. Aviation incredibly strong. This is it. We got to go but i was thinking about the crazy management we worked under. Remember wayfor and the ridiculous i was never short wayfor. I should have been. Government investigated me for saying it was a fraud. I said it was fraudlike. Way fraud or fraud whatever. It went to zero. Finally we have great management. The best in the world. Anyway, thanks, jim. Coming up next, we are putting a face with our voiceover artist. Jim is going to be here. Hes going to take it away right now. Up next, an interview with me. Cnbc smooth and soothing voiceover reading all your favorite teases and promos. Find out more about my business and why im here, right after the break. The break. Alright, that should just about do it. Excuse me, what are you doing . Uh, well we are fine tuning these small cells that improve coverage, capacity and quality of the network. It means youll be able t post from the breakroom. Great did it hurt . When you fell from heaven awkward laugh . A little. laughs im sorry, i have to go. At t is building you a better network. Geico motorcycle. See how much you could save. Fire, brim stone, everybody panic. Shes back. Sweet youve heard his voice now meet the man. Jim is a voiceover talent extraordinary and we havent really i dont think weve told you yet, we think this has gone so well today that you have to come in every day now. Oh, good news. Good news. Not going to happen . I hope not. Way too early for me. You live in i used to drive right through Overland Park whenever i went to the university. I know where you live. All right. But you do the kansas city chiefs. Yes. Well i do the highlight films for the kansas city chiefs. And for the nfl. As one of the voices for the nfl, for nfl films. Thats cool. I do highlights for lots of teams. How did you get discovered . Discovered . Well, ive always been an actor and a musician and i started doing voice work to supplement my income. And eventually the voice work just kept growing and growing and growing until the theater work and music work kind of fell to the side. And i was doing i was the voice of walmart, i was the initial voice of Blockbuster Video way back when, when it first started. So much business. Your agent is rich. Not just you, right . And then i was contacted there was a guy i had met at one of the sound stages who disappeared. I used to run into him. I never worked with the guy. He was the producer of some sort and he called me about said listen, have you ever done any promo work for television. I said no, i do mainly commercial work. He says well listen, im at cnbc now. Theyre looking for a new voice. This was in s. And here you are. Youre going to have to read this right now. Right here. Okay. Ready . Sharp and early monday morning. Make sure you join us monday, squawk on the street on the run, anchors, keep going, congratulations to the sandisks newest employee market commentator for cnbc. Com, jim cramer. Good to see you. Last night, thats an old Economy Administration you got a guy from halliburton, guy who ran alcoa. These guys are looking at the new york stock exchange. They dont have a clue of the pain in the nasdaq. They think everything is program. Today on the program, the ying and yang on the ber