Bead beat. Europe in the green as draghi continues to talk down the euro. A shareholder friendly quarter for apple. A beat on the top and bottom line. Increased buyback, stock split calling it the isplit. Twofaced quarter for facebook. Profits blew away the estimates but Company Warning there might be a new normal of slower revenue growth. Another beat and victory for cost cuts, caterpillar raising its outlook. Sees improvements in the building industry. tis the season to make a health care deal. Zimmer buys rival more than 13 billion is the Purchase Price. The industry ripe for more consolidation . Apple coming off the companys best nonholedy quarter ever. Results did beat expectations as almost 44 million iphones were sold in the period. Apple announcing the seven for one stock split, 8 different hike and increase in the Share Buyback program. Ceo tim cook on last nights Conference Call. Take a listen. We decided to continue to allocate the vast majority of the Incremental Capital return to Share Repurchases because we believe our current stock price does not reflect the full value of the company. The size of the share back increased the signal of the board and the Management Teams strong confidence in the future of apple. So many interesting things about this quarter. First increase in income since december 2012. The cash hoard coming down for the First Time Since 2011. Jim, your thoughts . I think this is a victory for the apple shareholders, including [ inaudible ]. Im going to say that. This is the quarter where they took back the leadership from samsung. Im looking at the countries that they did great in. Greater china. If you remember a year ago people thought that china wasnt that good, brazil, indonesia, talking about tremendous tremendous love worldwide for apple and it they dont mention samsung. They have the great aside, tim cook has a great aside, about microsoft, welcome to the app store, microsoft. I love this quarter because yesterday i said it looked like my Charitable Trust owns apple. Why . Its cheap. One of the great lines, very understated on this call, but they do just say, point blank, this is about the company being undervalued. Thats what this shareholder i wholeheartedly theres a couple lines in the Conference Call that literally just define what weve been looking for as shareholders. More why do a seven for one split. We want to be more acceptable accessible to large number investors. Why do a big buyback. Frankly because the current price does not reflect the full value of the company. These are all the things, kind of the classic things you havent heard from apple youre getting today. Apple has not participated in this famous rotation at this point. Out of growth into value in the sense that other companies that perhaps are less valuable have benefited. Better iphone numbers, better guidance. Does the multiple expand and does it now become the value play that it seemed to be missing out on during this rotation . Im going to say yes to that because you really do have some Income Growth here that people have been looking for. You know, i have been expecting something about new products. It wasnt even talked about. Instead were talking about 800 million itune credit cards, a payment situation. Were talking ability how this is one of those instances where we see a reacceleration of cell phones. Qualcomm did not see that. This is about these guys taking share back, growing, growing the company. We didnt have growth. Earnings per share close to double digits. How can you not have value going to these people. Its going to open near 570. 52week highs 575 and with the split people say are they positioning themselves to get added to the dow which is only 10 tech as opposed to 20 for the s p. I think not a lot of money index to the dow. Whats important here is that theyre giving you the money back and they dont it does not hurt there were people talking earlier on squawk is it going to hurt r and d. They had the static pool of money and they can raise debt. Of course. They have to raise the debt they cant take so much of the money back because of our screwed up tax system here which we get into when we talk about the tax inversions. Back top a to apple, the larger screen, because of the guidance are you looking at when the larger screen starts to hit thats going to be helpful as well and we get there without any hiccups. Yeah. I think so. This is a 30 u. S. Story. Theres a moment in the Conference Call where they discuss the subsidies. I know you know at t and verizon well. Tim cook said listen, were an international story, dont worry about it. The flaws, ipad, i thought tim cook, ipad wasnt that good but they had an inventory stocking issue. And basically what they were saying was, welcome back ecosystem. Samsung no ecosystem. We have ecosystem. Ecosystem alive and well and that was a growth story that had stopped being talked about. This was one of those where the company was no longer on the defensive on the Conference Call. And that is what emboldens me to think the stock is not done. With the significant capital returns being a part of that. The buyback is like the United States should buy back this many treasuries. One cautionary note for the long term that i picked up this morning which is these new plans for financing your handset purchase which can extend about two years and then they drop off and your bill comes down, some wondering whether youre going to see handset life get stretched. Look, in u. S. Because of this in the u. S. And therefore, people going look, my bill came down, im not going to get pmy new phone now. The u. S. Has different payment plans for the rest of the world and what happens is that u. S. U. S. Shrinks as a factor if thats the case. At the same time, they like the phone. I mean, i i come back to the samsung issues. To me, samsung peaked last quarter. Okay. I thought they had this great 5. 1 divide. The larger device. Wasnt talked about. Who knows what apple has up its sleeve. This was the First Quarter where they answered every single objection of the ap list. By the way, can we state point blank i am through with analysts trying to figure out the handset. Every one of you im coming after you. Every single one. Coming after you for doing shotty work, making statements that have no one of the secretive companies we have out there second to amazon. Throw your hands up. Enough is enough. Dont try to say listen, i got a factory source. Tim cook, i know you watch the show. You know, im grateful for what you did which is basically, will you stop trying to guess what we have. Its a fools errand. It is. Some of these analysts theyre i would like their instead of just buy price target ra ratios, say im sorry. We dont know. Like i throw my hands up. So many names to get to. Facebook this morning, profits nearly tripled from the yearago period. Revenues up 72 . Mobile ads 59 of overall ad revenue from 30 a year ago. On the call Mark Zuckerberg spoke about how the companys recent deals are positioning it for the future. Agreement to acquire whatsapp and technologies to expend access around the world. These are important efforts that we believe will help us making progress towards our mission over the long term. Facebook announcing David Ebersman stepping down going back to health care succeeded by david wenner who once served as the cfo of zynga. Now says stock is not going to go straight up anymore. Tougher comps, big acquisitions. New cfo. I like the fact that stevele nailed it at the low and sometimes you want to declare victory. That was a declare victory piece. I obviously love jordan. Hes great. I come back to what jordan is saying, earnings per share story. You plant the flag by cutting your price target. Everyone else raises the price target. I heard david what you said, the pressure is there a second story. First they had no seasonality versus google a company i like very much. Heres what i like about facebook. Im using a 250 number for 2016. Okay. Thats not 250 rev. Right. Not 250 eyeball. 250 earnings per share. The things monster accelerated growth they have not begun to monetize not begun to monetize instagram. Instagram had 2 million users when they bought it, now has 20 million. They werent talking about monetizing it soon. Those worry about the comps coming up, we talked about this yesterday, being tougher and you have slowing growth. Theres nothing you can do about that. Well conceivably. I mean incredible growth. I know. 72 revenue growth. I know its incredible. Instagram montization come lower than people thought, and the video. Sandberg made the point were not monetizing video yet. Obviously throughout this not monetizing instagram. Zuckerberg throws in whatsapp cash generation. It was one of the things that jordan, what stooefle didnt like. I started thinking wait a second, maybe whatsapp is a trojan horse. If hes saying its cash generational ready and giving you Growth Numbers even in the last month, and look, lets not forget what sandberg is saying. Sandberg is saying people this is the huge crossover quarter, tv versus facebook. People are watching facebook. One of the things zuckerberg prodded himself in, six out of seven days, people more than 50 . Pretty crazy in his words. I love that comment, pretty crazy. What this is saying, ought to play video, guys were loving it, high five, but whats going on here with facebook, is youre watching tv, going to facebook, youre reading the news feeds ads which are successful, buying things, youre 18 to 24, youre worldwide, youre 1. 3 billion. If im listening to this Conference Call and im coalgate i am calling my guys saying i want you to take x amount from print and tv and just throw it at Sheryl Sandberg as levi strauss did and had good numbers. Yeah. Basically one of the lines in the journal today, no longer an experimental ad buy. Every ad buyer has a social lin whos bigger than facebook. Nobody. We still know the ad share as opposed to the eyeball share is nowhere near commence rate. They dont have to spend a lot of money. The cap x stayed the same. One of the problems with google they keep spending. Facebook is not really spending. Oh, facebook is spending. No, i mean accelerated spending. You dont consider whatsapp and i consider that kind of cap x. Acquisitions yes. But i just felt like that if youre really worried about the acquisitions this made you feel better because what theyre trying do is say listen, we got people worldwide. Whatsapp is a world wide thing. It is. Is it really direct is it brand . Is it direct . Sandberg says its everything. I think if youre an ad agency you sit down and say, you know what were going to get our butts kicked if we dont start recommending more facebook. And cfo departure not a concern for you . Its funny because sold a lot of stock. Seems like a nice man. Not the right quarter to do it. Theres no right quarter for a cfo to ever leave. Tim cook was active on the call. And zynga, thank heavens, zynga by the way has one third of its market cap in cash and raised ebitda number, but zynga is no longer a laughing stock. When i read that, he comes from zynga. Zynga was undermanaged and wasnt the cfos fault. Its not like hes coming from web van. All right. Hes not coming from sock puppet. Com. No. No. Its not etoys. Thank you. I know. Donnt ok es cans. I will look es cans. Gm has breaking news. Hey, phil. Carl, take a look at shares of General Motors premarket, up more than 3 and the reason for that pop is because theres a bit of confusion when gms First Quarter earnings came out, the company saying listen, excluding charges, it was 6 cents a share, 2 cents better than the street expecting, but really when you look at the number, its 29 cents a share is what General Motors earned in the First Quarter on an apples to apples basis, especially when you include the recall and restructuring charges but exclude charges related to a change in the Foreign Exchange rate relative to venezuela. So thats a big swing there. Its 29 cents a share, what General Motors earned for the First Quarter, not 6 cents a share, 25 cents better than the consensus which was 4 cents a share and clearly were seeing the sentiment from a number of analysts already, carl, very positive. Especially when you look at the Pricing Power gm is getting in north america reflected in the First Quarter earnings. Back to you. Yeah. Key distinction, thank you very much. Incentives went down in the month of march. Heard from phils great interview. Down. Wasnt march a headline risk month. Yes. Europe is almost in the black. I think it will be later on. 2 billion in automobile cash flow. Now, of course, the cfo was asked, are we through with the headline risk and he wasnt going to go there. This is a cash machine. This has become a cash machine. Mary barra added to the time 100 and bezos and jack and a bunch of business lum naries. Lets see how many get on the cnbc 25. That is a tougher list. Yes, it is. The size of 100 to begin. And 25 years. 25 years. So much more to get to this morning. Including zimmer, caterpillar, ups, everything we need to know as we get ready for a day of trading. Jet blues ceo, dave barger, how will that unionize pilot thing affect the companys future. S p going for its second week of gains. Havent done that since the end of february, beginning of march. Squawk on the street is back in a minute. Welcome back. Caterpillar reporting firstquarter profits 1. 61 a share, ahead of street forecasts despite a slow down in its Mining Equipment business. The dow component raising full year guidance. The cat ceo spoke on squawk box about how the company is faring in china. The good news, the u. S. Is a little better and i think the bright news for us with all the risk we see and the possibilities of other risks coming in china, our business is building in china and all of our products and services are doing well over there. Our dealers are investing, expanding our dealer model throughout the geography of china. In china our sales First Quarter this year over last year were up 30 and again its across all of our businesses. So we got that going for us. Can i hey, doug, let me tell the story. Let me tell the story. The story is very different. I love doug. Nice man. This is a story about u. S. , not china. Its a story about u. S. Construction, whether it be in pipelines, whether it be in nonresidential construction. Thats the story. Its very difficult to come in here and say listen, heres how we crushed the number but we fired 8,000 people. Cap ex cut in half. The huge decline in raw costs to make equipment, kind of interesting, i see steel ticking up here. U. S. Inventories had gone down. Yesterday there was a piece, small item about caterpillar. This is a construction story and a productivity story and the swing in the United States is so 552 million, stop talking about china. Doug. It will take care of itself. Just a little memo to doug. Talk about beau cyrus. Didnt go very well. But you know, the face is actually pretty good. A little acne, but the face is good. Dont focus on the acne. Okay. Touch it up. This is a cler ra sell story. Mining, whenever the comeback happens, not a 2014 story. Doesnt need it. Heres the way i would have said it if i were doug. Joe, becky, goolsbee, university of chicago, heres the story. The u. S. Is back. Its back big. Construction coming back. People are using our equipment all over. We dont even have government infrastructure and its amazing. Instead of like being defensive about china, dougs got to hes got to take back the story. Yeah. Even though the comments about u. S. Were tempered he said theres room for improvement, despite optimism in the states and needs to be more infrastructure in this country. Weve always been waiting for the elusive 10 earnings per share. We didnt get that. I think the story is about the return of the u. S. Capital spend. We heard it with united technologies. Its for real. We heard it with general electric. And the core capex putting the bears on their heels. Bears and cats are going to tell you they covered no, theyre disciplined. But theyre in a cave theyre in a den right now, and its claustrophobic. Well get cramers mad dash as we count down to the opening bell. 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