Point is down by almost 2. 5 . The ftse is down by 1. 5 . If you look at the price of oil, which was under quite a bit of pressure yesterday, you can see this morning its down another 22 cents, sitting below 36. Lets tell you about some of the big stories were watching today. Perhaps the biggest right now is this one. Shares of allergan are plunging after the treasury and irs announced new rules to curb tax inversion. The two companies releasing a statement saying, quote, we are conducting a review of the actions. Prior to completing the review, we wont speculate on any potential impact. We should say that allergan is one of the Largest Holdings of some of the hedge fund community. Its considered a topten holding of about 80 hedge funds right now. So you might see a big impact in that stock this morning. The stock was down by about 21 . Im saying it may even be worse. Some of the people we know. Were checking the potential impact. Its down 60 points. Theres not a potential impact. Theres the impact right there. The impact has happened. Youre waiting for the real open . Im waiting for the real open. Thats pretty close. A lot of lawyers think theyve overstepped here. The Treasury Department. And if you actually went to court, you might win. But its a three, fouryear process. So this may have stopped it dead in its tracks. Lets tell you about other news. Tesla giving back some of its gains, saying it didnt meet its First Quarter sales goals, pointing in part to a part shortage that impacted production of its model x suv. They promised not to make the same mistake with its coming model 3 vehicle. And new details this morning into the drama at pimco leading up to the departure of bill gross. A legal filing arguing that gross abusive conduct and an effort to, quote, sabotage colleagues he saw as disloyal, gave them grounds to fire him. The Money Management firm says it has good reason not to pay gross any more of the 200 million of damages. Last nights National Championship game came down to two shots. Villanova saw a sixpoint lead slip away down the stretch. Down by three, North Carolinas marcus page hit an incredible offbalance three pointer to be tie the game at 7474 with 4. 7 seconds left in the game. Moments later, Chris Jenkins of villanova delivered in the clutch, draining a three pointer as time ran out. The wildcats stormed to the court to celebrate an improbable 7774 victory. This was the reaction of the villanova fans inside the schools watch party on campus. Thats so exciting for them. It was a great year all the way through. I was on the losing end of a couple three pointers like that with wisconsin. The last team to beat villanova was xavier. This is why College Basketball is so amazing. Thats why the ratings are so amazing. North carolina wasnt supposed to be able to shoot three pointers. They were both like wasnt 70 , but maybe villanova was 58 for three pointers. North carolina was even higher than that. Just the crowds reaction. I saw some people watching. Depending on where you can watch it, you could watch prounc announcers or provillanova. Welch got stuck on the prounc. Whats going on . Could we have a little objectivity. Somebody tweeted, you can switch the channel. But they have that one guy, rafferty. I can do an imitation. He does this weird voice every time. Thats his only schtick. It works. Well, i dont know it works. Were going to have ariana on later talking about sleep and how important is sleep is. And that stupid 9 19 p. M. Start. Thats impossible for us. If we violate these sleep rules, you get some terminal disease, you cant think, you get fat. Even ceos that brag about getting four, five hours of sleep, theyre lying. Did you see the craig sager interview . You know who im talking about . I know who he is. Hes battling cancer. That was something i was watching this morning. It came back for craig. It did. But they did a very nice interview on the sideline yesterday. Jordan was at the game. Spectacular. Former villanova unc. You like him, right . Michael . Yes. And you like carl malone. Its a generational thing, yes. I know about that. Believe me. Heres this news. Is this going to be sheryl san diego be sandberg. Why do they have a hard time replacing people . Iger has big shoes to fill. For a while, people doubted whether he would be able to fill isners shoes. What happened to this guy . He was a deal guy, but then he ran the theme parks. He knows whats going on. Hes not a big enough thinker . Hes not a creative guy. Did you know iger was a creative guy . Lets get into this. I can give you a lot more inning a second. There were doubts about iger. Set it up. Let me just read this. Disneys coo Thomas Staggs announcing hes stepping down from the post he had held. He had been considered the guy to take over for ceo bob iger. Here now to talk about what happens next at disney, i have to do this one, but youre doing stewart. Yep. But brett harris is a research analyst. Nobody had any inkling or wind of this until it happened. No. Extremely young man. Exceptionally young man. 55, staggs. So he had plenty of time. Fair to say he had been heir apparent for a long time. Big surprise hes given the coo position and 12 months, 18 months later and this isnt iger that doesnt like the idea. This is the board. Or is it iger . Apparently. And iger is now extending the search. Thats one of the reports. Did iger want to stay longer . Im not sure we know about that piece of it. I think iger supported staggs, however i think there were people on the board who were never comfortable with him. There were a number of missteps he made since he got into this job. The theme park thing. Hes a very complicated guy. So theres a whole group of people there that apparently have not been thrilled. Back to you, youre the professional. I was going to say, look, you said it in your opening remarks, that i think they might be concerned hes a finance guy. He was cfo for ten years. Sure, he ran the parks. They wanted somebody with, as you said, maybe a little bit more vision, perhaps a better ability to navigate who qualifies for a role like that . Its pretty difficult if you have not spent time within the company. Absolutely. Thats the next question. Well, if you dont want somebody like tom staggs, 26year veteran, who then . So thats a big question out there. Who do you like . Sandberg gets thrown around. Shes on the board, knows the company. You heard peters name thrown around here and there. Ive heard chase kerrys name. Chase kerry has been on the beach for a while. Im sure hed do a great job. Certainly has the experience for it. There are a number of existing ceos today that are at perhaps Smaller Companies that are highly respected. Is Nbc Universal a Smaller Company . No comment. That would be a lateral move, wouldnt it . Certainly a lateral move. By i think hed rather crush disney than go there. He does get brought up. He does . Yeah, yeah. Bite your tongue. Hes going to stay. As i said, no comment. You hear that, sorkin . I have heard that name. Before we just said it . Yeah. Were you scared . Scared. Of you. Dont be scared of me. Hes the guy. No, it would be lateral. Im sure he loves it here too, right. And hes ceo of Nbc Universal. Comcast is almost a separate yeah. But there are a lot of les moonves, very highly respected. You dont think theyre going anywhere . Not yet. But these are names that get tossed around. Is there anybody else inside disney that you think has a shot . Well, the two major candidates are off the table. Former cfo. Right. And then jay rissoula left when tom was given the coo position. Unclear if theres another internal candidate. You have to think, is there really another if they had these issues with somebody like tom staggs, would there be anybody else . We mentioned before Sheryl Sandberg from the board of disney. Is that someone you would see stepping into that role . Certainly a possibility. Who knows if shed want to the leave her current position, which is a pretty great position. Right. All right. We will get more color from a guy who knows a lot about it. 7 00 a. M. Jim stewart. Wrote the book on them. Not only did he write the book on disney, he actually did write a book on disney. Yeah, he wrote the book. He wrote a book on disney. There you go. One of the great sort of business narratives of our time. Brett, thanks for coming in today. Thanks for having me. Lets get another check on the futures this morning. There is some red across the boards this morning. Dow futures down by 133 points. The nasdaq off by 36. If you take a look at whats been happening in the treasury markets, youll see that yield is still stubbornly below 1. 8 at 1. 725 . Checking out the dollar, youll see that at least right now the dollar, which was weaker yesterday against the yen, hitting its lowest level since march 18th. This morning, the dollar is down against the yen once again at 110. 37. Its up against the euro at 1. 1355. And gold prices are up by about 14 today to 1,233. 30. The other person, jack dorseying tadorsey i could take a third job. Hes on the board. Youre joking, right . Sort of, yes. I like ovitz. Maybe theyll take the job together. Voters in wisconsin hitting the polls today. John harwood joinin joins us th morning with more. Reporter andrew, this is an opportunity today for both the leading candidates behind the front runners to make up ground in the nomination race. Theyre both behind, ted cruz and Bernie Sanders. First of all, lets look at the republican side. You can see that donald trump has got a lead of not quite 300 delegates over ted cruz. On the democratic side, Hillary Clinton, 600 delegates up on Bernie Sanders. Both are expected to lose today, trump and Hillary Clinton. Theyve been trailing in polls coming up to now. Whats the significance of that . Well, first of all, on the republican side, donald trump still has a path, even if he loses today, to getting the 1237 delegates he needs to be nominated on the first ballot. But every state he loses makes that a little bit harder. If ted cruz does very well today, if he wins all the congressional districts and can deny donald trump all the delegates, then trumps path gets steeper. On the republican side, youve got Bernie Sanders way behind. Very, very difficult for sanders. His aides even participated in a postmortem story in the New York Times the other day, which diagnosed why he hasnt done better in the race so far. Hes done better than many expected. But hes got to win a huge set of victories in upcoming states in order to overtake her. Thats not very likely. The next states coming up are going to be new york on the 19th of april. New debate set between sanders and Hillary Clinton. On the republican side, ted cruz is beseeching john kasich to get out of the race so he can snatch more delegates away from donald trump. John kasich is showing no sign of doing that. Both of these races are going to go on after wisconsin. But you could get new life, a little bit of new momentum for these trailing candidates, should they do what the polls tell us and win wisconsin today. John, ted cruz has made a big point that either he or donald trump should walk away with the nomination. Hes made the point even if he has fewer delegates and fewer votes that have come in the primary, that it would be okay for him to win by convincing enough delegates to come to his side. Hes also made the point it wouldnt be fair for kasich to do it because he doesnt have enough. Is this something you think the electorate buys that, look, you can come in second place and still steal first place from the guy who comes in with the most delegates and thats okay, but you cant come in third place . Reporter well, depends which electorate youre talking about. When you get to a republican convention, if neither candidate can win on the first ballot or the second ballot, then delegates are released and ted cruz cant get to 1237, then i think youre in with those republican officials, many of whom have long histories in republican politics, you have a free for all. Thats the case for john kasich or for somebody from the outside. I understand the argument trump is making, that if you come in with the most, you should be the winner. I understand the argument others are making sailing, look, it doesnt matter. If you dont get to 1237, the rules are the rules. What i dont understand is the point ted cruz is making. If you come in with the most, it doesnt mean youre the winner because the rules are the rules, but we throw the rules out once you get to the point where we only look at the top to two people coming in. Reporter at this point in political campaigns, were not talking about principled arguments. Were talking about arguments benefitting the person making the argument. Ted cruz wants to disqualify any nontrump candidate other than him saying, well, no, of course you cant have somebody like paul ryan come in, you cant have john kasich come in. But this is a situation if we, in fact, get to cleveland without a first ballot winner that, we havent seen in a very long time. So what the republican rank and file have a tolerance for, what the Republican Party officials have a tolerance for, that just hasnt been tested. Everybody is making selfinterested arguments. Thats what ted cruz is doing. I think which of those argues will fly is something that were just going to have to see play out. I think kasich is much more ridiculous than the cruz argument. That is, you know, certain polls to talk about general election polls at this point and point to those as a reason even though ive won only one state and usually get 4 or 5 , and to make the case because these nebulous polls show me winning over Hillary Clinton, thats even flimsier. Thats just a way of staying in. The rules say anybody can win on the second ballot. He had his chance to get the nomination. He never did well in any state except one. Reporter joe, youre right. It is a flimsy argument. But again, its all selfinterested arguments in that case. For john kasich to win under this scenario at this point, its kind of like that twistering three pointer that marcus page hit last night to tie the game with four seconds left. No. Reporter he made the bucket. Its more like that Northern Iowa shot from the top of the other key to beat texas. Reporter okay. Fair enough. Did you stay up for the end of that game, joe . We didnt stay up for the beginning. We have Ariana Huffington on. You need sleep, john. Maybe thats your problem. Reporter that was the best finish ever in a championship game. Stop rubbing it in. I know that. Im going to watch it again now. Anyway, thats the problem. Theres a lot of good things about this. I was just reading some stuff about iger. Gets up at 4 30 no matter where he is. Big time exercise routine. Does the climber. We got one of those, and i hate it. You know i have a personal trainer. Did you see that yesterday . I did. Austin powers decided i dont know, does he decide those things . Yeah, baby. When did he get a show on hbo . Who . Austin powers. Like a year ago. Anyway, coming up, markets under pressure. U. S. Equity futures lower by triple digits. Were going to talk to strategists from jpmorgan and citigroup next. Show me movies with romance. Show me more like this. Show me previously watched. Whats recommended for me. X1 makes it easy to find what you love. Call or go online and switch to x1. Only with xfinity. Once again, stocks having to deal with the decline in oil prices, but is more of a decline ahead, or are markets at this point in a sweet spot . Joining us now to talk about the markets, jack caffery. Also, Steven Whiting from citi private bank. Gentlemen, thank you for being here. Thank you. Thank you. Lets talk about where we are. Jack, how are you feeling . Color if hn his cheeks. I think things are okay. We have certainly a friendly federal reserve. We have somewhat lower oil prices, which reflects lower inflation expectations. Valuations are not cheap, but we are about to get earnings season. Hopefully that gives us a change in the discussion. So you think earnings season is going to surprise even though so many people have been worried that this is going to be the worst earnings season we have seen in a while . The fact everyone talking about it being the worst earnings season sets up lower expectations. The fact that people are so cautious going into earnings, i think, means you have the potential for some surprises. Steven, how about you . Weve had upside surprises since mid2009. Every single quarter has been an upside surprise. I think that will be substantially stronger than this negative 7 First Quarter estimate. So thats where we are. But markets have come full circle from where we were a couple months ago. Now there are much more reasonable expectations for where were going. But theres also a great deal of new confusion over global Monetary Policy. This idea that were going to now stimulate the world but were not going to spill across borders and not going to have the problems of, you know, affecting exchange rates. And yellen spoke last week, but yesterday the boston fed president was out once again saying, look, id be willing to vote sooner rather than later. This is adding to the new confusion. We just had in the employment report on friday the best news that weve seen in the expansion so far. Six consecutive months of increases and labor force participation. Its as if the labor force is suddenly reawakened. I didnt expect that after six years of a dormant, weakening labor force. This is supply and demand in the u. S. Labor markets, now recovering for the first time. Yet, you see this idea we have to cling to Monetary Policy. We better do something, otherwise were in deep trouble. I know that you both feel like weve talked down earnings season. Maybe things will look a little better. I dont know if thatll translate into earnings for the current quarter. Maybe ceos are starting to feel a little better, but do you think youll hear confidence from them on the earnings calls with the guidance they give out . Because the market will key off that closely too. The way the macro data has performed, its strengthiening into the second quarter. Back to these issues o