Including duke mba tim cook. He was snapping many pictures with fans. All right. I didnt stay up. I didnt either. Did you. No i was gone before this. Were you . Really. I didnt want to try to watch it because i didnt want to turn it off. The schedule this is not your normal schedule. To be here with us you. I sacrificed the National Championship game to be here with you joe. You had nothing left in your pool. Your brackets. It meant zero. Exactly. I think i could win the bracket out right before i could spell it. Who did you have winning . Next year. I was just as bad. Im embarrassed. I read too many articles. Its not like you the bearcats or anything like that. I wish i had. I wish i would have taken the musketeers just for the heck of it. Instead of blowing my chance on villanova. Thats who i picked too. Why . Because i didnt want to pick kentucky because everybody picked kentucky. It was 49 chance they would win which they didnt but 80 of the people picked them. Do you know who had duke and wisconsin . My son . Wow. He was like 60,000 out of i dont know how many million. He just liked the names. Nothing to do with it. Its great skill. Something going around that romney i was going to say 99. 8 . And then the president he had villanova too which i cant blame him for that. He won the more important contest. What. The president ial that was awhile ago. Here are the other big stories were watching today. Fed ex buying dutch delivery rival tnt express. It was blocked by competition regulators two years ago. Fedex and tnt dont expect similar opposition. They already had a Strong Network and fred smith will join squawk on the street this morning at 9 45 a. M. Eastern time. On the economical lan calendar today, thats at 10 eastern. And then at 3 00 this afternoon Consumer Credit also worth watching an auction of 3 year notes at 1 00 p. M. Eastern and two notable political stories today. Senator rand paul officially announcing his White House Run at a rally down in louisville in a video release this week he describes himself as a different kind of republican. Meantime in chicago voters head to the polls for the citys first ever mayoral run off. The incumbent fighting for his political life after failing to win a majority of the votes in the election six weeks ago. Hes up by 20 points at this point. You think . Its been widening. There was a point there. But i know what was rich was he was getting a taste of what its like to get it from the Progressive Side of things because hes done a lot of it was common sense. A lot of the things that he did. But if you do things based on common sense youll hear from the progressive left. You are. Among our stocks to watch today, viacom announcing restructuring. The company is going to cut jobs and abandon required titles and reorganize three Domestic Network groups into two new organizations. Theyre halting the 20 billion dollar Share Buy Back program as a result. And shares are down sharply and the company says its lead eye drug failed to meet one of the main goals in a second late stage study and thats down 32 . Shares of Clovis Oncology getting a boost. Granting break through designation for an Ovarian Cancer treatment and dyax with a Public Offering of its common stock. Lets check on the markets this morning. Well show you the futures even though yesterdays experience makes me wonder why do we bother. But the dow opens higher up by 14 points if everything stays the same. S p would open flat and the nasdaq would open higher by a little more than two points. Lets show you whats going on with europe. The unexpected rally yesterday where investors decided bad news was good news. We now see that continue in europe. France ftse germany, even greece higher today across the board. France and the u. K. And germany higher. Well show you the spanish tbill. Investors agreed to pay the Spanish State to hold six month treasury bills. Yes youre giving your money to the government and get less of it back at the end. The yield came out at negative 0. 002. Negative yield. So as we continue to see the effects of quantitative easing across europe. Higher across the board sang high was higher. The price of oil is lower, wti is lower. A decline of 21. The ten year yield. Lets see. Surging. Surging back. 1. 8 . The dollar is stronger across the board against the euro the yen and the pound. Is that what we think it was . Bad news is good news . I said that wasnt going to happen. I said you know never underestimate the ability for more, you know easy money to cause traders to stay in. The economy can be going to hell in a hand basket. It will be the 6th year of Economic Growth but were not going up a quarter. To me i dont get it but nothing more powerful. Never fight the fed. Youve heard that a lot and i guess you cant. But dudly what do you say . You look in the journal and he was pretty dovish. But they say this was weather related and the economy is still pretty good but others saw him saying were walking on egg shells. Well so so slow. It may not be 4 . We started a quarter in establish and we go slow and slow and they didnt take it dovish and that caused the market to go up. There was another economic report. It was the Services Report in line and maybe after the jobs report and the disappointing manufacturing report that it was a relief that okay o, maybe economy is not as bad as some people think by virtue of a jobs report. I dont know. The markets can go up if rates go up as long as its for good reason. So rates go up. What if rates go up and we stay tepid . If they go in june. So its going up for the wrong reason. Theres absolutely thought out there that says it would be the worst thing ever. But were flat for the year. Who knows where we really are. But now were up. But basically flat. Even 170 points. Stocks are hoping for another day following the triple digit climb on the dow. Here to dpif us the first read is the chief u. S. Market strategist with Rbc Capital Markets and i havent talked to you in awhile. Can you defend the notion that as long as youre at zero you visit whats that . Nothing else. There is nothing there is no other alternative. Is that what this is . Margaret thatcher made it. She said . Yeah. Well i like it. I look at it a little bit differently. If you took the discount rate on your cash flows, a stock is worth a lot more than theyre currently tading at. This is the old yeah. Easy fed so youre going to stay along. But heres the reason why the fed is is going to you know the market is basically telling you that the fed is not going to be able to get more than 150 basis points on fed funds at the end of 17 and if the fed tries the dollar starts to rise and puts pressure on the u. S. Economy and the fed runs away and people basically project and arent able to pull it off. Id love to see the fed be able to move toward 2 but with free money in europe its hard for them to get tighter. Its weird because i dont remember them i never remember us just constantly looking over there. But the market is. If you have 20 Central Banks and the fed is moving toward tightening you get a better thats 20 stronger and you start to see its not just the ism report and jobs report. For the last four or five months we had Economic Data coming in consistently weaker than estimates and thats what happened. If you have all of this competition for the long end of the curve and everybody is so desperate for yield and it goes lower and lower because the u. S. Looks good and if the fed lowers on the short end you end up perhaps with an inverted yield curve at some point, right . Its hard to think youre going to get a zero u. S. Yield but people have been wrong for a long time saying Interest Rates are going to rise and you talk about what is germany now,. 2 . Its crazy. Fedexis paying 5 billion for tnt. Theres plenty of Financial Engineering available at zero. Very soon next week well start looking at earnings and what is going to fuel this thing to keep moving certainings are going to come in way better than people think. The Energy Sector is going to be a dog and Everybody Knows that. The rest of the market is is going to look much better than people think. People said yesterday the dollar weakness spurred the markets. Yeah and that was why gold was up so much also. The dollar has run too much too fast and its already doing damage. Heres the problem. That Dollar Strength which we had since last june it has a lag effect. It Takes Companies a long time to change contracts and hedges and stuff and so the dollar gets stronger it really is bad for the whole economy and its taking a break. What is it telling us . Its flattened out over the last couple of months relatively speaking. Maybe this isnt necessarily the case. This strong dollar forever . Do i think the u. S. Economy is better than the rest of the world . Absolutely yes. Our demographics are better. Our Banking System is better. If you look at the innovation that happens here in bio tech and technology theres no place if you look at the global indices theres no place in the world that has this kind of innovation. That said you cant have your currency move 20 in 8 months and have it not be extremely disruptive and thats what that is telling you. I would figure if the dollar looks like its pickeeked that would give them some cover too. Are we back at 110 . We are. I just read it. I cant remember. If you think about how strong the dollar has gotten isnt that like the fed tightening . Im not an economist. Is that 100 basis points or 200 basis points . But this Dollar Strength is no different than if the fed did a big tightening cycle. So the dollar did the work for the fed. I certainly dont think theres no way you can call zero tight. I dont care where it is. Of course its not tight. But youre talking about im going to talk im not talking about the Interest Rate. Im talking about what the dollar has done. It makes it harder for u. S. Companies to compete. Theres no benefit to normalizing maybe they were right. Maybe its a new normal. Theres no way that zero is normalizing rates. No. Youre asking for trouble. We would be way better off off of zero but with the rest of the World Printing money and with ten year paper in switzerland, negative Interest Rates its hard for the fed to move without causing the dollar to skyrocket. Are we asking the permission of the europeans for our Central Bank Policy im not sure but the market saying it is. So you would say long you figure, what do we do high Single Digits this year so were back to that. Here we are in april. I have a really bullish call with like a 12 to 14 return. Youre a 12 to 14. I think this lower for longer slower for longer environment is pretty good for stocks and i think the surprise is that the earnings story is going to be really robust. Thats a 12 return including dividends. No we have a 2325. If you look at the average year you dont have recession the market is up 18 . As long as recession nary risk is away theres no reason you wont get double digit price returns on the market and people are way too bearish. All right. Jonathan, thank you. Thanks for stopping by at 6 00 a. M. Now. You have the rest of your day to do productive things as well. I appreciate you though getting me up early for this. He was smart. He was really smart. Early to bed, early to rise. That may be the smartest thing anyone pause you lead a clean life. Thats why you didnt get to watch last night. Early to rise. Its a good way to live. You cant be an alcoholic or drug addict. You need to go to bed early and be here. Its a good way to manage your affair. Dont you think . I feel great. Scores is probably open 24 hours. Or you can go to one of those worse places that are open at like do people go at 9 00 i feel bad for people. Maybe they work the night shift. 9 00 in the morning how did we get on this. Good to have you here. You took us there. Youre going back to the office now right. Im in the Office Every Day like you guys. Rand paul is set to become the latest republican to throw a hat into the 2016 president ial ring. First take a look at shares of target. Trading at the highest level since going public in 1967. As we head to break heres a look back at this date in history. Hello. I am here to offer sophisticated investing strategies. My technology can help you choose the right portfolio. Monitor it. And automatically rebalance it. All without charging advisory fees, account service fees or commissions. That may be hard to compute. But im a computer. So trust me. It computes. Say hello at intelligent. Schwab. Com welcome back. The ceo says the company will now cover the entire cost of getting an online bachelors degree. Starbucks announced the College Achievement plan with arrests State University last june. His Company Expects to spend 250 murder in the Second Degree or more over a decade on tuition reimbursement. Senator rand paul expected to laufshlg his bid later today the washington correspondent has not announced kwet. Announced yet. Do you think coach k should run. I wanted to show you. We are ready. Can you spell it john without looking down . I can but i wont. You could . No. He doesnt want to show off. Theres a double meaning here of course because rand paul went to medical school at duke. I dont know if he stayed up late to watch the game. If he got his beauty sleep or whatever but everybody connected with the school has reason to feel good this morning and rand paul has reason to feel good because hes the second guy to center this race. It was ted cruz at Liberty University. Now rand paul is announcing at the hotel. He is a key character so where ted cruz sent a message by announcing his Liberty University rand paul is doing the same thing here and marco rubio announced that the Freedom Tower in miami rand paul starts this race in the middle of the pack if you look at our nbc wall street journal poll 49 of republicans said theyre open to supporting him. 40 dont. Thats slightly better than jeb bush considered the front runner. Not as good as scott walker but better than ted cruz and rand paul is trying to inherit his Fathers Coalition as a candidate but also break out of it and expand. So you see here that he is now running third in the state of iowa and third in the state of New Hampshire. Ron paul ended up finishing 2nd in New Hampshire and 3rd in iowa. Doing worse in South Carolina which is more of a evangelical state. Theyre attacking him on the National Foreign policy. The idea that he would be more congenial to negotiations with iran as opposed to a muscular solution. He has his work cut out for him. This race is accelerating. Were soon going to have a whole bevy of candidates and rand paul will be right in the mix. Kind of weird that the first two, i guess they needed them cruz and paul are fringe candidates. News bussers is going to see me say that and theyre going to say cnbc calls paul and cruz fringe candidates but theyre much further right than what some people think the party needs to appeal to enough people to win a majority. In different ways but theyre trying to break from the fringe into the mainstream. Ted cruz has done very well in polls since he announced and rand paul with the reach out to young people to minority voters which republicans need to do better with is trying to make the case that hes a more modern republican and therefore ought to be in the republican mainstream and well see if he can pull it off but he has marco rubio, Jeb Bush Scott walker all more traditional republican candidates in terms of their fiscal social and economic and Foreign Policy approaches and thats what rand pauls challenge is going to be. I was wondering the other day whether he was named after ron then i was saying shes a big atheist. I dont know if you go to a religious place. He went by randy when he was a kid but he has shortened that to rand and i think you can read the symbolism in there as many people will. No kidding. Sure. To your point. Ron paul has said he is not named after him. His name is randall. His name is randall. But the choice to go with rand youre suggesting he doesnt yes, i mean i dont think its escaped his mind that he is going by a shortened version of his first name which happens to match the author who is a libertarian hero. I saw yesterday a lot of the nightly News Coverage last night this is great for hilary. Great person to bring on board but then they did the bush story about how embarrassing it was for him to have checked off hispanic hispanic. If i were applying to medical school i dont know, if it wasnt just an honest mistake where he hit the wrong thing people didnt think he was hispanic. There could be any reason to do that why would the media make it like he was trying to do something i dont think that anyone could think george h. W. Bushs son is hispanic. Its interesting. He checked the wrong box. Its an interesting mistake but it doesnt mean a thing and doesnt confer any advantage on him and its the kind of thing that, look not in the race yet. We have to cover something about what he is doing and its not important important. It reminds me of Elizabeth Warren being a native american. Thats different. She was trying to accrue some benefit from that. Im saying why dont they make a bigger deal out of