Overnight in asia, the nikkei flat. Hang seng and shanghai were weaker. The shanghai down by 0. 8 . In europe this morning, some of the early trade, just 24 hours after that announcement from british Prime Minister theresa may about a new snatp election, things have turned around. Yau european markets in the green. The cac and dax up by 0. 3 . The tenyear yield in the United States fell to a low of 2. 165 on tuesday. That was the lowest level since november 10th. Well keep a close eye on that today. The tenyear yield now is sitting at 2. 209 . Well have much more of this coming up later this morning. Lets get you to some other big stories. In earnings news, ibm reported Quarterly Earnings that beat expectati expectations, but sales fell short of estimations. Revenue declined 3 from a year ago. That marks 20 consecutive quarters of revenue decline. They have long talked about those revenue being empty calories, but a big debate about that remains. Youre looking that the stock down 4. 5 . Well talk to an ibm analyst in about ten minutes about all of this. Federal reserve beige book report, which tracks Economic Conditions in the feds 12 districts is out at 2 00 p. M. Boston fed president Eric Rosengren is speaking this afternoon. People watching for his comments. On the earnings front, banks in focus. Blackrock, u. S. Bancorp and Morgan Stanley out with reports before the bell. Corp. Not the marine corps. Corporation. Its not a corps like marine corps or peace corps. You would call it citi corps . I might. He might, actually. Finally later this morning, the British Parliament expected to approve theresa mays plan to hold an early election on june 8th. Debate expected to begin around 7 00 a. M. Time with the vote soon after that. The main opposition, labour party, welcomed the call for snap elections, so almost certain the Prime Minister will retain the twothirds vote she needs for the elections. Snap elections. Theyre voting for the vote. Voting on snap . Not on snapchat. This is a different use. You say snap now quackcall elections. So they have not adopted some voting procedure using no. Youre right, we need to clarify. For me, you do. Im not sure what snap is. So its now quick elections. Not waiting until 2020, well do it in june. Nothing with voting on facebook or snapchat. Nope. Some day we might. Stocks to watch today. This ibm thing is weird. It is. Did you see the in buybacks and dividends, it looks like 2 2. 6 billion. Total Free Cash Flow was like a billion dollars or something. Were been saying this for so long. I know. Not how do you but how do you invest for this transition to a new business when youre paying out 200 of your cash flow and yahoo revenues jumping 22 as Quarterly Results smashed expectations. This is likely yahoo s last Quarterly Report as a standalone company. The deal with verizon expected to close in june. Shares of Intuitive Surgical ticking up after posting strong quartly result Quarterly Results. The medical devicemaker beating expectations thanks to its da vinci robot. And ultra genex seeing a pop after a phase three study to treat a genetic kidney disorder was approved. Stock up sharply. Facebook is holding its annual Developers Conference this week. Earlier this week they made a push into augmented reality. Ma one version overlays effects and photos and videos, similar to snapchat and those snap elections, but facebook will allow developers to contribute their own effects. Facebook spaces will allow you to interact with other users in an entire Virtual Reality world. We have some political news that may impact the market. The result of yesterdays special congressional eelection in georgia coming in overnight and we are headed for a runoff. John harwood has more on that story. John . We had our own snap election last night in georgia. And democrats did not get the snap and awe they were looking for in the first round of that voting. You had jon ossoff, the Young Democratic candidate who was the target of a flood of money coming in on his behalf in the district as well as volunteers, 8 million raised. He was able to get 48 of the vote in a very divided field. That is pretty good, but not good enough to win that seat outright. You needed to get 50 of the vote. Donald trump, who intervened in the race at the end with a robo call on behalf of republican turnout trying to dilute his vote share. With a bunch of tweets attacking jon ossoff the democratic candidate as a super liberal took credit last night. He said this was a big win for republicans. He was glad to be playing a part in that. And for jon ossoff who is just 30 years old, this was a disappointment. He spoke to supporters last night. Said he was ready to fight on. What fight on means is that on june 20th he is going to face karen handel, veteran republican politici politician. Not the most exciting republican in the field, however she will find the Republican Party mobilizing strongly behind her. We have a real battle in the district that has been represented by republicans for 40 years. Newt gingrich once held the 6th district. Tom price, the health and hulen Services Secretary won it easily in 2016. While this is a republican district, its not a huge trump district. He barely beat hillary clinton. So well have a big fight on our hands and have to redo all of this hype again in june. Talking about not bag trump district. Do you know who bruce level is . Do you remember bruce . No. Entrepreneur we had on the program. I met him in atlanta on squawk the vote. Joe, remember . Yeah. Trump supporter, jewelrymaker. In a swing state. Africanamerican businessman. There he is. Right. Derun . Polled 455 votes. Despite an youre saying despite an appearance on squawk box, he did not make the runoff. I was wondering. Did the president not make a trip down there to campaign for him or what . No. The president did not endorse a candidate. He went after ossoff. And he was simply the goal for the Republican Party was to make sure that on election day they had as much of a republican turnout as they could muster. Democrats did very well in the early vote, the mailin ballots. All of that all the things you can do with money and organization. On election day, the underlying structure of the district, a strongtilt republican produced enough turnout that those votes that jon ossoff got did not add up to 50 . Arethere are 1 republica1 re right . Thats right. Five democrats. I guess he got 48 or something. If he got anywhere near 43, which is what any democrat you will always have. You have the base of 43 down there. You spend 10 million worth of whose money was it . It was all out of state money. The guy doesnt even live in that state. All over the place. You spend 10 million, you get 5 Percentage Points . You have a base of 43, he gets 48. Do you think trumps tweeting yesterday and the day before helped galvanize republicans . Possibly. The republicans were trying to make sure democrats will a clear enthusiasm advantage. They lost the last election. The energy is usually in the next elections with the losers from the last ones. Republicans have been dealing with setbacks in the Trump Administration, including the veil you failure on healthcare that deflates their base. While they knew democrats were juiced, charged up, people were sent in to try to jack up his turnout, republicans had a challenge. I think trump put his shoulder to the wheel metaphorically speaking with the twitter account yesterday and made a difference. He tweeted this morning, it was entertaining. I saw some still from the hill or you know, the stuff you read every day. It said ossoff ready to deliver knockout blow. Just trying to figure that out. It would be one guy going to the house that happens to be a democrat . How many do the democrats need to pick up to take the house . But really, a knockout blow . 44. So trump was saying today, despite the efforts of the fake news, it doesnt happen. When you write articles like that, a knockout blow, youre frothing at the mouth, Mainstream Media hoping there guy wins what do you expect. Then it doesnt happen. Now it will fall by the wayside again. Its not a story anymore. Hold on a second. Im not sure the hill represents the Mainstream Media. But, look probably better than the average Mainstream Media not as bad as politico. Special elections inevitably become the focus of a lot of hype and importance. Theyre doing the hyping. They have some important everybody was doing the hyping. Right. Everybody. They have some importance. If the republicans lost this race, that would be a marker of the ability of the democrats to rally. Its not a knockout blow for anything. Its a fervent desire for that to happen, religious desire for that to happen but it didnt. Any way, thank you. Joe, before you go. Joe i have sports news for you. Nationals. My cousin Andrew Triggs no my cousin Andrew Triggs in the starting rotation for the oakland as won his nithird consecutive start. 30. He has not allowed an earned run this season. That is impressive. Amazing. Cousin . Yu jarvish and the rangers he saw last night. 12th cousin . Hes the son of my first cousin. That counts. That counts. Joe, youll be joe, youll be interested to know this. The off season before he made the majors, which was last year, he spent the winter working for jeb bush at the right to rise super pac. Nobody can say thats like nobody can say that no victories came out of the Jeb Bush Campaign because Andrew Triggs made the makers and hes now 30. He worked for a republican. Is he the black sheep in the harwood family . The red sheep. You dont know what youre talking about. Theres a lot of i knew there was a rhino joke coming up. Exactly. Con grgrats to your cousin. Joe, hold on youre the black sheep. A lot of my family is in the deep south. Then youre the black sheep. If you havent noticed, the deep south is pretty republican. So so hes not the black sheep. What happened, john . Whats his name again . Andrew triggs. The nationals must be good, because i see a 90 chance that they win their division. The reds are in first place. They have a 20 chance. No one believes it. Theyre 95, i think now. Any way i dont want to blow your mind or anything, but im a direct descendant of john d. Mosby, the gray ghost of the confederacy. You need to go back and change that history, i think, john. Thats what everybody is doing nowadays. Come up with somebody else. Any way, thanks. Lets get to the broader markets. Were joined by Chris Retzler and dennis gartman. Dennis, i want to ask you something. You say you just got to continue to slowly add to equity positions because thats probably what you should be doing, even though fillable market. Because all of us have to decide what to do if we have enough disposable income to invest. Yeah. Ifrmt dont n i dont know something about north korea, something about the unknowns out there that scare me and wonder whether cash at some point wouldnt be a cash at some point shall be a wonderful thing to have. Not yet. Theres been times when i have gone to cash, every time i had done it i wish i had not. You had a nice selloff in the last few weeks, its still a bull market. You should err on the side of being bullish. Yes, eventually cash will be a wonderful asset to have. But not right now. 2. 20 on the tenyear. The 2. 20 didnt come from global forces. It came from domestic forces. Fell below 2. 20 yesterday. Yeah. That seems to portend that the stock market has not been factoring in everything. It may have been the germi a bund. Joseph is now going to cash . The tenyear worries me. I wouldnt jump the gun with the tenyear at 2. 70, but where it is now markets have a propensity to go to the obscene number, then it turns around. You may get a 1. 98 just to get there. You can look at it as half empty half full there, too. 2. 20 might imply slower economy, but it gets you back to theres no alternative. Youre back to stocks being more attractive than 2. 20 on a tenyear. Thats what the driving force has been for the last year and a half, two years, three years. We may all find stock prices to be overpriced, priced te ed ear multiples they are, but if you fight the trend, it costs you money. Ive done it. I fought the trend, every time ive done it, it has cost me money. I trade from my only account, im up for the year, i find it difficult to buy stuff, but you have to. Were still at 20,500. You cant declare victory. We were at 17,500 when you were bearish. For you to be talking about cash is victory at this point. This is my own he has been consistently bullish. Right. Ive consistently said the markets will come down 5 . If you come back 5 , youre still at 19,500. With your own money you have to think, every quarter you have to think about it. A little bit. I put money into a vanguard mutual fund, set things aside there. This is like sabre rattling. You wonder if between that and syria if that is an opportunity to buy. As long as this guy doesnt have the capability of hitting the United States. Right now he doesnt have the capability of hitting the United States. Youre looking at that like looking at stocks with special situations, right . Yeah. Look, were in a period right now were in a period exciting for earnings season to start. We went through a lot with the elections. Its time to earn your multiple. Stocks have been up on extechtations, which we thought for a lot of the policies, pro growth which we think are coming are further out into the future. If you miss your earnings, as were beginning to see ibm and Goldman Sachs give you pause. If you can maintain growth rates, earnings and margins, i think youll be fine. We think opportunity will come about in the next couple months as companies do come down and miss. We dont think the growth the trajectory is over. We think were still in a bull market. The yield curve is flattening, which tells you the reflation trade is more under questionable times. We dont see the high yield market collapsing. Thats all good for small caps. And they underperformed the large caps. Ibm beat on the bottom line. Missed on the top line. Ibm and Goldman Sachs, you think those are the exceptions to the rules . Barracuda networks yesterday. It was a decent number, down 14 , 15 . So they are taking them down. The multiples are probably stretched in certain areas, but thats opportunity for a longterm investor. Ibm, well talk about them obviously some more. The earnings number was down almost 20 but above what analysts are forecasting. Yes. Revenue was down for the 20th consecutive quarter. 20 consecutive quarters. By its what theyre spending the cash flow on. Your point was apt earlier on, how can you spend that much money to buy back stock which is twice what you are taking in. Makes no sense. The revenue decline has been going on. They have not been overspending on Free Cash Flow, just to cover the nut, to cover the ability to do it. Something has to give. You have to spend in order to make money in the future. Thats what ibm has done here and is egregiously wrong. Thank you. When we come back, as we just mentioned, shares of ibm are plunging after the Company Reported its 20th consecutive quarter of declining revenue. Well dig through the report with an analyst next. Hey, the f, whats her problem . Apparently, i kept her up all night. She said the future freaks her out. How come no one likes me, jim . Intel does just think of everything intels doing right now with Artificial Intelligence. And pretty soon ai is going to help executives like her s trends to stay ahead of her competition. No more sleepless nights. Were going to be friends im soy about this. Dont be embarrassed of me, jim. Im getting excited about this we know the future. Were going to be friends because were building it. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distribud by invesco distributors inc. Welcome back to squawk box. Were having a fierce debate about ibm. Ibm has q1 earnings beating expectations, but sales fell short. The company has logged four straight years of quarterly revenue declines. Call that an anniversary. The stock down sharply in early trading. The stock now down close to 4. 5 . I think got closer to 5 earlier. Joining us to talk about this is james wang. Ibm has long talked about dont look at the revenue, theyre empty calories, its not the issue, were looking for a higher margin here, thats the ball game. Thats how they want the market to see the ball game. And watson. How do you see the ball game . We found ibm we traditionally wouldnt have gone for a name like this we were looking deep into the Artificial Intelligence field. If you talk about ai, most of the names that come up are stuff you already own. Alphabet, facebook, nvidia if youre into hardware. Outside of core internet theres not a lot of choices when it comes to investing in ai. Its an exciting field but not a lot of choices. Ibm we think is a legit dif rentaren differentiated thesis. If you are going to invest in ibm as a theme, theres one horizontal play, thatsizontal everyone, and a great specific play, ibm. What about the we talk about ai, i think there is a larger debate to be had about watson versus some other ai efforts. Sure. On this specific issue in terms of earnings, in terms of the continued decline in revenue, also in terms of the buybacks and dividends, the amount of money theyve been spending or not spending to give to you rather than to invest in the business, how do you feel about