Combination with the animal orchestra. I think youre right. What happened to him. Thats what i mean. We just called him a sensation. At one point he was, right . 33 million views not bad. But still a fraction of the super bowl. Hes not opening in las vegas. Was he the true one hit wonder . There were two. It sounded very similar. Did it . That happens with the one hit wonders. You know what works. Go with it. Lets get you up to speed in the markets. The u. S. Equity futures at this hour at least. Youll see yesterday the market ended near the highs of the day. Were looking at red arrows again but this is what it looked like yesterday before the market started taking off during the session. You can see the dow futures down by 50 points. S p futures off by 5. Lets tell you about the big stories were watching as well. Its official tlied the heaviest day of earnings season among the names mostingposting results before the bell. Pepsi and procter gamble. Its a lot. Weekly jobless clamsims and new home sales. The fcc staff is recommending a hearing for the proposed comcast Time Warner Cable deal. Now that recommendation would put the proposed acquisition in the hands of an Administrative Law judge and that could be a very drawn out process. We had rich greenfield on the show this week. The suggestions have been a death nail for the deal but it makes it very very difficult and the view is that an administrative judge would be harsher on the transaction than the fcc. Thats what they said. The only reason you send it to this is if you plan on rejecting. Right. Among the stocks that were watching in addition to that facebook earnings beat the street but revenue missed the mark. The company also says higher spending on research and development weighed on results. Well talk to an analyst in a few minutes when you look at the way the normal world views earnings earnings, where every i look its blowout, boom pictures of him smiling. They also have all kind of interesting numbers that were out. 4 billion viewed from the service but then controversy about how to count the numbers because if its up and you dont turn the volume on they count that. We circulated something with our scooter squad, i probably have andrew looking like whatever and it was on facebook and i was excited and someone sent it to me and i clicked on it and i cant get in there. Log in or something i have no password. You forget your password. No. You dont have a facebook account. No. Do i look like a have a facebook account . Why do people the thing if is if you were on book you have to friend im not on facebook. Its complicated. Why would i want to share my incredible life with people that dont deserve to see it. They dont. Am i needy. Youre not at all actually. I think its a generation thing. Whats after millennials. Whats older than a millennial . Gen y. Whats older than that . I might be a boomer. Ed, are you here yet . Were the only people here that saw the moon landing i think, arent we . Thats right. I think we are and it really did happen regardless of what you think andrew. I know whoppi says that the flag was rough on the moon and it was the ventilation in a studio. Who was it buzz . Buzz lightyear. Aldrin. Oh thats right. Profits topped expectations at ebay. Revenues from the payment business increase and it was a mixed quarter for at t. Earnings beat but revenues were light. Fewer wireless customers switched to other networks which would be good for them an then qualcomm beating on the top and bottom lines but the forecast for the Current Quarter was below the street. Qualcomm blames that loss on a key customer also on delays in Product Launches by smartphone makers. Texas instrument are under pressure. Is that a three . 6. 5 . Yeah you need good eyes for that. It warns that Current Quarter sales will fall short blaming weak chip demand and the strong dollar. In political news this morning we got a big buzz story in the New York Times that a lot of people will be talking about. The donations from a group that sold the russians a Mining Company called uranium one giving them control of one fifth of all the capacity in the United States. Among the Government Agencies that approved that sale the state department. It was headed by Hillary Clinton at the time and the chairman made donations to the Clinton Foundation of more than 2 million. Others with ties to the company also made donations. Those contributions were not publicly disclosed by the clintons despite an agreement struck between secretary clinton and the Obama White House to identify all donors. So lots of questions. The thing that strikes me the most is not disclosing what they had promised too. Other was just suggesting money was going to the Clinton Foundation. Some of the deals were being considered by the state department and other departments as well. Their spokesperson had it totally ready to go on explaining how this happy. Brian fallon saying no one produced a shred of evidence supporting the theory. The times did a lot of its own reporting but this is in the book. This came from within the book which has already been by the left and Mainstream Media hes a push operative. Its a hit job. Look at the timing. Right after she announced. Which is why this partnership is so interesting. The New York Times has taken the reporting and going on. Its in the New York Times this morning. No one is going to see it in the New York Times this morning because its not in the New York Times this morning. We have the early edition. We do and ill tell you something talking generationally joe more people read the New York Times online than the print edition. It was out it was out in time for the print addition wasnt it . I dont know the mechanics but they put it out after midnight. I have no inside knowledge of this. For me if its not in a physical newspaper im not sure nobody sees it. Okay mr. No facebook account. So i have to look on do you have to be a subscriber. No you get ten free articles a month. A lot more than i would need of the New York Times. You use four for my column and then the six left. With your column i need something physically to burn so i would have to actually print it out oh man. Or to shred or to feed markets this morning, take a look at the futures right now. They are una little bit of pressure this morning. You can see the dow futures down by 50 points. S p off by 5. The nasdaq down by 15. The markets ended higher in fact picking up all of the ground. Making up all the ground they lost on tuesday. The dow was up by 88 points. S p by 10 and nasdaq up by 21 at the end of the session. Check and see whats happening in europe in the early trading there. Its mixed at this point. The ftse is higher and the cac is down by. 6 and the dax is down by. 8 . If you watched asia overnight you saw the nikkei ended up by a quarter of a percent. The shanghai composite down by about a third of a percent. If youre watching what happened in Energy Markets this morning it looks like wti is down by 21cents to 5595. Check out the bond market. At this point the ten year note is wow, okay getting close to 2 once again for the yield. 1. 958 . Still below 2 . The dollar is weaker against the euro this morning. 10752. Up against the yen at 120. Gold prices finally look like they barely budged. 1,188 an ounce. Facebook shares falling at this hour. Following a miss on revenues in the First Quarter. They did Beat Estimates on the bottom line and mobile growth was solid with daily mobile use rising 31 year over year. Here to help us break down the results, he covers tigress asset management. Good morning. Good morning. Am i wrong to say the mobile growth i thought the mobile growth was extraordinary. A agree. I think its phenomenal. Better than solid so they miss on the top line do you look past that . Yes. First people talk about the currency issue and when youre doing 13 billion in revenue on your way to 20 billion. Sometimes its with you and sometimes its against you. Theres no way to hedge it or avoid it. The stock is down this morning. The street is disappointed but the best piece of news is that the company is investing in their company. I love when companies spend on cap ex and rnd and spent on hiring people and marketing. These are all positive factors and the sad thing is as much as i like buy backs. But theyre growing 50 year on year. Theyre a Growth Company in the stage. Thats to be expected. When you think about the growth issue in terms of pure number of users, the thing that i worry about is this becomes an eye balls game. Remember back in the late 1990s when we talked about the physical number of eye balls. The eye balls grow and the money is supposed to grow. The number of users grows but then they begin to monetize the users so the revenue per user will start to grow as the number of users will inevitably. Whats the multiple . 237 billion market cap to more than chevron is only 200 billion. Jp morgan is 233 billion. 80 times. 237 billion. 80 times earnings. Theres not even that Many Companies worth more than it. Comcast has pipes, cables all over this country. 149 billion. 149 billion. You still have a buy on this stock. Yes. Where do you think its going . Right now our value at the current level is 108. I think thats going to continue to increase because you cant really measure some of these i dont want to get caught in the trap that you cant measure them like Traditional Companies but theyre not a Traditional Company and the value they create and the value they add to the economy and create for their shareholders is measured differently and youll see overtime this platform will monetize as they integrate new services. The most interesting thing when they bought instagram they said that was a horrible acquisition. When you look at the growth thats the expectations for growth. 1. 98 in earnings. Its not really 80 times. 82 times pe is what it looks like right now. 43 times forward earnings. Ill sell you some of mine. You dont even have an account. You should be buying in the weakness. You said instagram great success. Revenue associated with instagram. They dont break that out. But as you know theres very little advertising even on instagram. Probably dont make any money at all. Just an experiment. I like the way theyre somehow valued. Youre going to see that overtime theyll get monetized but its about connecting the people and the platform and the most interesting thing, that will be won by the candidate with the best facebook strategy. How much will they before we go how much will they end up spending on facebook . The politicians, Hillary Clinton, jeb bush, scott walker whomever . That i dont know how that would work for them to spend as much as for them to be engaged and then how other advertisers spend into that. And engage and connect. Okay. We appreciate it. Thank you. For everybody who is holding on to facebook shares i hope youre right. By the way they have done a great job in term of building the business. Whether its valued at the right place. Turn now to the broader markets. The nasdaq just 15 points from the high it set in the 2000 time period when we had the last bubble. The last. Com bubble. More to talk about markets. Managing director the backdrop of the economy is once again, i dont know like we cant get out of our own way it seems like year after year after year. After six years although is it weather . Is it the dollar . What is it . Well its a funny thing. Its a little geeky i admit. Thats why youre here. But in the u. S. The way we measure gdp is based on a quarter over quarter rate and annualized pace. So if you did it differently like we do with earnings in earnings you measure them First Quarter of this year versus First Quarter of last year. Growth in this quarter based on the forecasts would be around 3 . We had a horrible winter last year too. The reason it looks like a slow down is youre comparing a strong Fourth Quarter to a some what weaker First Quarter. I think he did a nice piece on this the other day where he argued First Quarters attend to first slower growth. Okay. Year 3. I think well do 3 roughly. Well do 5 one of these quarters then. We had a couple of good quarters last year. I think we had a five last year. So were growing in not a fantastic pace but a descent pace and growth is scarce all over the world. The stronger dollar will probably cut our growth rate a little bit but were still growing at a descent theres nowhere else to go is there . Stocks are not bargain relative to their own history of valuation but at about a 6 earnings yield on stocks that looks pretty good compared to a treasury bond at 2 and if you go to europe you have 2. 5 roughly dividend yield on the dax index and you have a ten basis point yield on the bund. Would you be looking at european stocks over u. S. Stocks for u. S. Investors . This year we have rotated some of the money we had in u. S. Stocks into europe and japan but we have done it by buying futures which allows you to hedge out the currency. So thats worked out pretty well so far this year but i still think thats a good place to be for 2015. You dont care about the fed that much. They dont go in june. Do they go in september . Do they ever go again after september . I think a quarter point like longterm is good. I think theyll do two moves this year. Well end the year around 50 basis points. Crazy. To borrow money, 50 basis points. Thats insane. Sounds crazy versus the consensus at this point. Well come to a screeching halt. That will cutoff all business activity. It will still give you negative real Interest Rates. Because im slightly more optimistic on the economy. Paul says inflation is coming back quicker than people thought. Wage growth is going to start. All the companies are starting to assume 4 wage growth. The democrats are saying 12 an hour. They want to go from 7 an hour to 12 an hour by 2020. Got no chance of passing the Republican Congress but theyre going to be i think you would support this the wages are rising because of private sector action more than raising the minimum wage. A lot of companies have raised that. It would be good if that would happen. The wages are growing already a little faster than the official statistics indicate because i think they were retiring and being placed by less expensive new workers is skewing the data more than usual. Thats right. Wages might be growing closer to 5 . Really . Yeah than this year. 4 or 5 growth. Does that create a problem if we are underestimating some of these things . Will inflation sneak up faster in a scary sort of way . I think youll see that well get back to the feds target of 2 a little quicker than the consensus expects and i do think there will be a debate whether that additional wages comes out of margin which is are high levels or whether it results in higher inflation. I tend to think with the dollar being stronger than it is inflationary pressures will be relatively model. Might as well get up to a little bit above that but not tremendously above that. Youll still be at a relatively low Interest Rate and low inflation environment but not as low as it is today. All right, ed. Thank you. Fellow boomer. When did the boomers start . People got back from the war. Like 45 or 46. They got married. Yeah. We know what happens after that and now were populated with boomers. Did you see in japan now . Less people. Sooner or later you just run out of people. Its a huge problem for the economy. And then you have the older people that are depending on the younger people to help them. If theres not enough of them. Thats going to be interesting to watch. You wonder why its still so slow. Thats the reason you need a different immigration policy. You cant allow that to happen to your nation. 80 of our population 50 million come in in the last ten years or whatever. I saw it on one of the websites. I didnt see that. 50,000,083 of our population growth has been immigration in the United States. Okay. Yes, when we come back we have a lot more to talk about. Multibillion dollar fraud. Petrobras putting a price tag on the Corruption Scandal engulfing that company. But first heres a look back at this date in history. Why do we do it . Why do we spend every waking moment, thinking about people . Why are we so committed to keeping you connected . Why combine performance with a conscience . Why innovate for a future without accidents . Why do any of it . Why do all of it . Because if it matters to you its everything to us. The xc60 crossover. From volvo. Lease the well equiped volvo xc60 today. Visit your local volvo showroom for details. A neighborhood is a bit quiter this morning missing what had become a familiar buzz. Local officials removed a 90 pound hive housing about 80,000 fee bees. It took more than two hours. Pieces of the hive are headed nearby where the bees will continue their work of making more honey. So, you know. Id like that bee. Have you seen what happened next week with the bees on the highway. Wasnt it like a million or something . No like 43 million or something. Get stuck in that and youre gone. I would think so. Did you see the guys trying to clean it up in the bee outfits and everything. Did you see that last week . Saw the videos on youtube no less. I watched that on facebook i think. Explain how that works. Someone imbeds a Youtube Video of it because its sort of a viral video and they put it on facebook and then when you log on to facebook the video is there and it plays automatically. But it doesnt have to come from youtube. It can come from anywhere. It can come from cnbc. Com. Anywhere you follow . Put whatever video they want. So any dribble they feel lik