May. At t ups guidance, sees 5 Revenue Growth in 2014. The bidding war for jimmy dean and sara lee orts old or hillshire rages on. Pilgrims pride raises its offer, above tysons 50 bucks. This may not be over. Investors, apple wraps up its key. Health, home a fully integrated apple world. Why the stock is down this morning. Record auto sales, chrysler beating estimates. More numbers from car makers in a few minutes. Sales estimates for the year, finally tops 16 million vehicles. At t raisings full year guidance. Company citing what it calls strong Second Quarter wireless trends. Anticipates net post paid subgrowth of 800,000 for q2. At ts quarterly rulses are due out next month. We know the war between the big players, the way tmobile disrupted it. What does this mean . That. This means something but i wouldnt draw too many conclusions here. You have to remember at t did change their way it went about recognizing revenue for handset sales moving to something called iep, equipment installment plan. The cost and price of the device are fully recognized at the time of the sale. That occurred i believe it was in early december. Or not that long ago. They also are doing well, it would seem with their next in mobile Share Value Plan but again, looking at what theyre doing now in terms of iep, what does it mean. They put a piece out on this not that long ago i went back to refer to. I looked at this number and said well, is there a counting issue here as well. It may be. The cost in the price are fully recognized the time of the sale even when customers pay nothing. Receivables created on the Balance Sheet to be reduced by payments on the ill installment plan. You get the revenue up front and book the revenue up front so it becomes a accounting tree. You have a receivable eventually paid off by the customer. That, of course, can result in a higher rev revenue number. Lets keep a closer eye on service. It was moffits belief when they looked at this a spike in revenue from the recognition of equipment you have a corresponding spike in ebitda and earnings and a corresponding drop in service average revenue per user. Does it match or is it more expense when you have more customers . Youre just recognizing the revenue in a different way than you had in the past. Subscription business. No longer youre no longer taking in the Service Revenue in the same way. Well i like this. I know that the stock is going to be down because people are focused on ebitda. I like Revenue Growth. There are some Revenue Growth and its possible. Except it may be an accounting issue. At the same time the last quarter wasnt that good. The subgrowth was good. Thats a number you may want to focus on. The turn number is lower. So those are two good metrics for at t. No doubt about it. And as carl said in a very competitive, more competitive, very, i dont know, more competitive environment. I was thinking about this tmobile revolution, whether that was, you know, hurting at t. I mean its good to see that theres just a lot of people making calls and a lot of people playing video games. Remember, theres not a lot of work being done. People on the phone, people are shopping. Right. And people are playing video games. Also tablet ads are not phone ads. And a lot of the growth has been tablet editions. And the life of the tablet, the revenue on the tablet, its not the same. Its not the same as adding a new wireless customer. Whos got the device. At the same time listening to your excellent coverage in apple. I think theres this internet of things, we talked about that with skyworks too, everything is connected. Many touch points. And it may not be reflected in at ts numbers but holy cow, every time theres a new application, theres more people just using the applications. Not like the stuff goes into the either. No the bits are going up, not down n terms of monthly and daily use. Cisco is right about that. Apple entering day two of the Worldwide Developers conference in san francisco. Among the highlights you probably heard ios 8, the version of the mobile operating system and then the company as jim said revealed health kit which lets users various Health Apps Share data. Home kit designed to make the iphone a Remote Control for your house. Interesting the past five Developers Conference, the day of the keynote, stock has been down, yesterday no exception. People saying boy what a bunch of jokers. Theyve lost the pizazz. No. This is a different kind of event. You covered it. This is a nuts and bolts event. It is true that i think at the vanguard of this health kit is kevin at under armour trying to get the shirts to respond to what people are how many steps theiryre taking. There is a notion that we all know many more things about our car than we know about our body, apple clearly is embracing that notion. About the things that shut off at your house, im tired of those. Like a gazillion of those. I like to have my cell phone be my credit card. I like that idea. And some companies are coming up with that. I think that makes sneens payment is going to be important. Did they talk about payment . They didnt. No. In general the notion you can add a thirdparty keyboard, you will link with windows, theres now office for the ipad, the sense is theyre Getting Better at playing with others. Right. Even as they try to stiff arm android and take share back and take on google that way. Android was it was food fight like. Yes. It was comical, food fight. And has something changed here in terms of the aggressive nature. Ill tell you whats changed even though were looking at video of tim cook, the cover of usa today is of greg fedusa be the next steve jobs. Brought an electric air. I think apple, i like cook because of what hes done. Cook is recognized. He gets pizazz meisters. Nothing the matter with that. Theres a team. I know. The team is good. Recognized he doesnt have pizazz. He doesnt. Its okay not to have pizazz. Looking in the mirror shaving, i do not have pizazz. Its all right. Hes an operator, not a promoter. Okay. Not to have pizazz. Operator in the Largest Company in the world. That can be an important moment. Do you think the guy that runs exxon has pizazz . You dont think he has pizazz . I dont feel hes putting a tiger in my tank. You dont want a ceo with pizazz. Thank you very much. One last question on apple, some of the technicians arguing its got to come back to the high fives before it can reclaim those that 675 high from 2012. In the end, i mean its a new product. We get excited. The analysts are all struggling with how to value it. It overran their price targets. One of the things that has happened over and over again when you use these price targets and cut them on the way down and the stock goes up you have to boost it and we had this kind of faux target boost before that then the stock does come back down. Do you chase the stock . I dont know. I think that the stock is cheap. Cant you own it . You got that split. Boy ill tell you when i did this analysis, back to the coke and pepsi in the 80s, the reason why splits dont work so to speak and get the stock going is when you get the seven shares, you tend to say im going to sell three of them. Right. And that stock has to be sopped up by new people who say oh, apple is so much cheaper now. Of course its notp cheaper. People like dollar amount stocks. Speaking of pizazz, who knew. What do you got . Hillshire brands has pizazz, apparently does. Pilgrims pride sweetened its offer for hillshire to a 55 a share, all cash. Up 10 bucks. The 45 bid was the first one. This, of course, also after tyson food launched a 50 a share bid last week. That a couple days after we saw pilgrims pride. As for hillshire it says its board has authorized talks with both companies but isnt withdrawing or qualifying its recommendation on its own bid to acquire pinnacle foods. It is in auction mode. 55 bucks a share from pinnacle, 75 from jbs, Largest Meat Company in the world. Pill xwrims. Jbs owns 75 . 55 is 14 times the expected ebitda from this company in 2014. Thats 14 years worth ebitda willing to pay for now. They say theres going to be at least 300 million in cost synergies that takes the multiple down to as low as nine times and thats how youre willing to pay 55. By the way, the market at this point thinki ing that tyson is going to raise higher than that. A 58 stock price right now. The bidding for this is insane. Should go buy Bob Evans Farms if you need links that bad. Have you gone to the brands these guys have . This is not necessarily a whole foods kind of right. Talking about the ingredient sflis. Im talking about, for instance, state fair, thats one of your favorite brands. In the 1930s two texans invented a revolutionary fun food. Their honey battered wrapped hot dog on a stick. Wow. I mean, what aisle is that in whole foods. The number one brands in their respective categories and apparently have 13 ebitda margins a belief the ghis brazil can get up. Theyre going to integrate it into the supply chain with access to all of what jbs is doing, the largest meat producer in the world. Therefore, they see real value here, jim. Jerky perfected. Unlike a lot of what the market saw initially, the idea of and will tyson come back . Theyre fully financed. The pinnacle side said no financing condition. Stison has been fully financed at 50. I was in the supermarket yesterday doing a little selfmeasurement. Not only do i go out and shop, i also go to the supermarket. And the chickens, its kind of back there, its in that one area. But the meat section is a fight. Its, i think you want to revalue oscar mier from craft. Bob evans. Bob evans down from the farm has sausage. If this aisle is up for grabs there are other players. Dont forget. These are real trench warfare, world war i battles in the supermarket. Inch by inch. You got to go over the top and you got to go get you got to storm the beach. You do. Im telling you take the bluff. This is about the paths of glory. Good movie by the way. Curt douglas. Some of his best. Kirk watches our show. Hope youre doing well. I have nothing to add after that. Lets go to break. When we return, Dollar General blaming the weather as the retailer posts a Quarterly Earnings miss. Were going to tell you how the stock is reacting to that news. The commissioner of the nhl, gary bettman, on the business of hockey as the rangers and the kings get ready for that stanley cup showdown. Take one more look at futures. Only 3 1 2 weeks left in the quarter. The s p is on track for the sixth positive quarter. Its on fire. When squawk on the street comes back. Dollar general reporting firstquarter results below estimates, citing what it calls the challenges of unfavorable Winter Weather, heightened competition in the current economic environment. Sales trends gaining momentum, confirming guidance for the full year, comps up 1. 5 and 800 million worth of buybacks in the quarter. On may 28th, deutsch bank downgraded the stock, worried about margin prices. On june you get that kind of thing and what happens is, you get people who are negative and then the Company Reports and the company doesnt really disappoint. And they also have that line, i love these lines in these releases which says, sales trends began to improve in april and continue to gain momentum. So what that happens, people say the worst is over, congrats to Goldman Sachs who stern ag downgraded, which said the stock is too low and were going to stand by it, by recent capitulation, and that was the terrific call and the stock is going up because too many downgraded it ahead of what turned out to be a decent quarter. Another discount retailer looking for comps in the 3 to 4 for the year. Is that good enough . I had Alliance Data systems on last night and he does most of your private label credit cards and said were seeing a 1 to 3 environment for retailers, except for some who have done creative stuff, including some of his clients because he does marketing but were looking at 1 to 3 , thats why the autos are amazing. Theyre not 1 to 3 . The consolidation chatter has calm down. There was a lot of that around. Yes. Last year in terms of fdo and dg or would something occur or walmart choose to try to compete more effectively through an acquisition, all that sort of called down. Walmart kind of let this group take oever meanwhile targt stores, the stores are looki in do youedy. How about sears . Kmart . Are they looking good . How about abercrombie and air row postal. Quick siller what a blowup. Everyone talking about the turn and i said big turn your opened in a russian suburban mall. How is that going . Russia is a little challenged right now. Quick silver this teenage apparel is fickle. You just dont know. Look at that. Thats not a two for one split or three for five or whatever. It is when you get it wrong. The Balance Sheet not that good there. When you get it wrong it is wrong in teenage apparel. You know, youre just selling the wrong clothes, you got and they also lost their they had a guy who was a great surfer, i dont know the surfer market that well, i do know that what happens when you lose a spokesman, we werent really sure about why they lost the spokesman but he had been with them 20 years, and i think that hurt them too. Dude bring in a lot get the guys name. Maybe you know him. Kelly help me here. David slater. Youre amazing. Chrysler up 17, estimates 14, they see u. S. Auto sales the annual run rate at 16. 9, the best year since 2006, and then nissan crossed 18. 8 their best year ever. This is amazing. Its amazing. We know that the average age of cars is 12. You need a car to get a job. When you have a job you need a car. This is bullish. We had marty musy talking in the previous show about paychecks, best three months for Small Business. I think that this is an incredible sign. Union pacific said the same thing. Autos are great. Of course 5 million autos in mexico. They make the cars in mexico. They make them here too. Steve liesman good point, saying lets see if they have to ramp up. Once you start ramping up opening the factories having them run more you get really good numbers for the economy. You do. Sorry to be so cheery. I know. Were going to rid you of that habit. Its not easy being a philly fan. Im trying to put a good face on things. Not easy. Eagles Training Camp not that far away. Look beat by my team. Communications with the general manager the other day. I like the quarterback. Sanchez is good. Oh, my god, sanchez. Vick with us and sanchez with you. Well get cramers mad dash after the break as we head toward the opening bell on tuesday. One more look at the premarket. More squawk on the street from the nyse is straight ahead. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. My mom works at ge. Fame, makes a man my mtake things over fame, lets him loose, hard to swallow fame, puts you there where things are hollow the evolution of luxury continues. The next generation 2015 escalade. 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Hey, sky works says things are good thats worth more than all the developer conference ps in the world. Connect the dots for me one more time. Skyworks provides the stuff into an i phone. Stupid enough to smash open your iphone which would be as dumb as wood you would find skyworks products in there and that means apple when they raise guidance may be good for apple too. More important than tim cook not having pizazz. Lets move on. Doughnuts. Krispy kreme, they failed to deliver and the Company Stores didnt do i had mr. Morgan on, whos executive chairman. Tell me the truth. Arent doughnuts fattening and bad for you and not doing that well . He assured me its the treat, that people like the treat. David, they dont like the treat. They dont like the treat. They dont like the treat at least from krispy kreme. What about dunkin donuts, still like the treat there. You got me. They still like the treat. Okay. Maybe Domestic Stores that are owned by krispy kreme were disappointing. Samestore sales versus the franchise. Went bankrupt once. Popeyes is doing great. And last i looked thats not that good for you. Its a treat too. When we go, ill take you to my popeyes you will be blown away how good it is. Well go during the crawfish month. I look forward to that as i do so many other things were going to do together. Keeps promising me but im waiting. I go to the one in new orleans. I dont know. Thats really silly. They have real good food. I go to the one on st. Charles, its dynamite. Lot of good food in new orleans. May want to stay away from popeyes. Five minutes to the opening bell. More squawk on the street. Oh my god look. You need to see this. Show em the curve. Do you know what this means . The greater the curvature, the bigger the difference. [scifi tractor beam sound]. Sucked me right in. Its beautiful. Gotta admit one thing. Cant beat the view. Introducing the worlds first curved Ultra High Definition Television from samsung. 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