Tenyear yield down this morning. Speaking this afternoon, and europe is mixed as well. Road map begins with General Motors halting sales of the chevy cruz sedan due to faulty air bags while the ceo offers an explanation on nbc. Pricing at the high end of the expected range, well bring you all the action of those very first trades. And shares of bed, bath, and beyond are taking, well, a bath this morning. The company missing earns expectations due to high costs. Alcoa buying for 2. 48 billion in cash and stock. Dealers temporarily stopped selling 2013 and 2014 chevy cruz sedans due to air bag programs. Mary barra was on the today show to answer questions about the crisis, and we have more. Good morning, phil. Reporter good morning, carl. Whenever a dealer is told to stop selling a particular vehicle, its not good news. It can be damaging not only to sales, but to the reputation of the dealership and company. Thats what happened to General Motors, telling the dealers, stop selling 2013 and 2014 chevy cruz models. Why . Theres faulty air bags, trying to figure out what the models are, how many are on dealer lots, and fix the air bags, theres no fatalities known of at this point linked with the faulty air bags, but, again, the cruze is the top selling car for General Motors and told to stop selling those. That should be lifted, they expect, by the weekend. Look at the total number of recalls from General Motors, stands at 44, over 20 million vehicles worldwide, 17 million in the u. S. Have been recalled. This morning on the today show, the ceo, mary barra, was asked if there was criminal activity involved with the faulty ignition switches and if they should have been recalled sooner. Heres what she said. Thats for the court to decide. I took action for the people who shouldnt be on the company anymore. Would you take criminal charges against those who worked for General Motors while it was going on . Thats for the courts to decide, not right for me to speculate on that, but there were mistakes made, and were dealing with the situation. Reporter part of dealing with the situation is coming up with a Victim Compensation fund. That is being organized by attorney ken feinberg. We talked with him monday morning. Hell announce time maps or initial plans for compensating victims of the faulty ignition switches. Interesting to see not just the dollar amount, carl, that goes into the compensation fund, but the total number because until now, General Motors said 13 were killed because of faulty ignition switch, and lawyers say its higher. Well find out on monday. Back to you. All the bad news, phil, is essentially mixing in with a banner year for auto sales overall. Have you seen evidence that their recalls are having an effect on sales . No. In fact, traffic at probably this dealership and other dealerships has maintained a steady pace. Now, when you have a stop sale order that goes through, thats when you might have people saying, im not sure i want to go to the dealership and check out buying aed specific model i cant buy it that day. Well see what happens with the cruze. Thank you so much. Meantime, of course, go pro pricing at 24 a share, at the high end of the expected range, values the video camera maker at 3 billion, and we are all over the pricing on that at the nasdaq with more on the market debut. Carl, the founder, nick woodman, called it a 12year overnight success. It was originally a Camera Company he founded because he wanted to go surfing and take pictures of his trips out on the water. It eventually morphed into a company with more than a billion dollars in annual revenue, loyal fan face, a Youtube Channel with 1. 9 million subscribers to the channel. He founded it with 30,000 of his own seed money, and now its thee de facto camera to record active lifestyles and extreme sporting events around the world. Thats led skeptics to say this is essentially a Hardware Company, whats stopping other companies from entering the space . This is how he answered the question on cnbc earlier this morning. Anybody can go make a piece of hardware, right . But then they need to attract millions of people to capture and share their lives and give the hardware maker credit for it. All of that needs to be delivered to the market, to the consumer by a really rock star high energy compelling brand, and you have to hit each of these points to be go pro, and that is a taller order. Demand for the deal is strong. Skeptics aside, underwriters say the book for the ipo, 20 times over subscribed, meaning peoplemented to buy 20 times more shares than the 17. 8 million offered. The call was late into the night, the pricing was not finalized until a quarter until 7 00 p. M. Eastern time because they discussed whether to price if higher, possibly 25 or 26 a share, and that was an active discussion going on, carl, but before woodman went on c nrg bc this morning, i said, why didnt you price it . He wanted to share the love, make sure the deal was successful. Well see after 11 00 a. M. , but ill be here with the latest on an Exciting Company and exciting deal with the exchange. Back to you. Kayla, thank you well talk about the structure of the deal, and we talked about the camera business is being commoditized quickly. How quick . I think thats the Growth Opportunity they have to stress in terms of moving from hardware to as you say Software Content distribution, the Youtube Channel mentioned, we heard, of course, in the long, great interview becky did with the founder. Thats the open question for those looking at this company now, certainly a brand name thats become very, very wellknown. Thats certainly great help, but what they will need to do is show that the Business Model can transition and show Significant Growth into the future with that new priced at three times earnings though, up there already with the other media companies. It would be roughly half that if it was just a Consumer Electronics. Look to the way the dpie handled the interview, hes telling a phenomenal story. Its, you know, 6,000 videos uploaded every day was the figure he gave, and that basic realization that people are interested in filming themselves as a selfie going out doing extraordinary things other than filming other people. It is an amazing story. He looks the part. Yes, he does. A surfer background, selling goods from the vw van, the whole bit. We got to all of that. The importance is the dominance of the brand in the categoriment analysts suggest its the most dominant position of the category since the ipod. Its doing extraordinary well. Its still Consumer Electronics, and if theres not a system around it, its unclear how you create value. Hes trying to get into content. If theres that many people devoted on the sites watching, and uploading, at some point he can monetize that. Well, hes already able to monetize it. Thats happening today. On the pricing. Yes, the shares are 22 cents. Theres modernization going on. Woodman and his family, 49 of the shares, billionaires. Its a good day. Tim cook at apple listens to squawk box on the way to work, and i wonder if he heard the guy and thought, i wonder if i need him on my team . Well see. He would have wanted to do that prior to the ipo. Usually. Meantime, Bed Bath Beyond. Falling, and it earned 93 cents a share, thats shy of what wall street was expecting as higher costs hurt the bottom line despite increased revenue. The companys Current Quarter guidance, perhaps, more importantly, is also below consensus, and they had a fraught year. The first was dominated by the bad weather, and now the gdp numbers bad as they were, we have a little nor sympathy with the cos that blamed it at the time. Yeah, comps up. 4, and higher couponing, higher shipping costs, that brings guidance down, and streets at 120. Its, obviously, a tough time. A big move online. A lot of investment online. And more consumers buying consumables, in the mix, hurts the margin. Yes, we have a deal with alcoa to get to. Usually we talk about it in earnings season. They are buying jet Engine Components maker from oak hill capital partners. Its 2. 8 billion in cash, and a little stock. They are looking to broaden their aerospace offering. They spoke about the deal today on squawk box. This is a transaction that creates a lot of value for the shareholders and customers, and on top of that, its a highly growing market, fantastic. We are already strong, but this gets us additional strong, completing the product range, and thats what we like. They are talking about completing in a sense or continuing the transformation of the company. As he said, its about growth in the commercial aerospace sector, suggesting it compounds at a rate of 7 from 2019. The company they buy has locked in contracts guaranteeing revenue growth, as much as 12 annually from 2019. It was the 2007 leverage buyout, 2 billion was the price tag, but dont ferg, thats debt. This is a pretty nice one, it seems, at least at 2. 85 billion for oak hill, and watch shares of alcoa. We talk about it, but how do the acquirerss stock do . That gives confidence to other ceos out there considering a deal. This morning, alcoa shareholders in the early going seem to be responding positively to the transaction. As importantly, can we check a year to date chart . You heard the rating, up 40 so far this year alone partly because of the view that the supply growth there you go, look at that, 42 as a result of supply growth in china, and aluminum in car body parts. He mentioned auto sales as a reason why he thought the q1 gdp print was not reflective of the economy. Its the second biggest european materials deal this year. A baseball statistic. There you go, using the benchmark Bridge Facility will be used, but one of the themes we talked about for so long, cheap money helping to fuel stock prices responding positively on the buyerss side. Is it the end of the rally . Thats the question. Two more years to go. That your prediction . No, no, thats the discussion. End of the rally . No, they could go for two years. When we come back, the go pros ipo debut, and 20 deals coming to market this week al e alone. Take another look at the futures as the dow comes off the day shrugging off the gdp number. A lot for squawk on the street from post nine in a moment. All right, the go pro cam, go pros going public today, pricing at 24 a share, high end of the range. What will the offering mean to the ipo market . David menlow is joining us, good morning to you. Great to be here. Like how its structured. I like it very much. From the beginning, all the press that came into this ipo process, the slow and rather reserve pace by which they did it, they didnt go over board and make all kinds of representations. The ceo is just a model of what you want for an ipo voice. The product, i dont know where to stop as far as the sue perlatives. What about the decision not to price above 24 despite pressure according to reports to do that . Tremendous applause. I think that is a very bold move because in todays market, if these issuers can shave off another 50 cents on the deal they push to the envelope and forget the issuers, who is the ultimate buyer of the stock. Whats the prediction at the open, then . We always had the stock on our hot list, a minimum of three to five points higher, up seven or eight points, thats fine. The stock will continue to move higher, but the valuation concerns, you know, that everybodys talking about is beginning to be a stumbling block for them. What is conservative for an ipo thats 20 times over subscri subscribed . You expect higher than that . You would, but if it does, were not upset, but the problem with that is 20 times when you start out in the allocation process doesnt develop to 20 times more stock once it opens. People will say, do i want it at this particular level . I think its a great move, and i love the fact we may be low on the call. David, you know, sorry, people are going to look at whatever the open may be today and say, oh, here we go, revisiting the heights we saw, 14, 15 years ago, the height of the dotcom boom. People want connections, curious given you have been studying the markets for so long, is that spurious or is there something to it . You know, for those people that really want to dig their teeth into Something Like sanchez, they are not going to get anything there. It does a side by side checklist of the early 90s and 2000s and what it is now, the stocks are dissimilar. Let them talk. In the meantime, smart buyers are there, gauging the stocks, and its not 80 or 90 points higher, much more reserved and everys thinking better. Livestock of the nasdaq as they are setting for the opening bell in 12 minutes. How do you put valuelation on a company thats in the midst of the big transition in terms of the model, overall model . You know, this is the problem i struggle with for basically 25 years i had the company. Once you get into a valuation modelling bull, and there is a bubble in the modelling, it does not make since no matter how yo parse it. Go daddy is looking to come public. Morgan stanleys lead manager probably said to them we believe we can get you money here. All the sudden, google decides they are going to go into this space, 10 what do you do with the deal . Take the valuation, cut it down to a third . Do you not do the deal . Theres a lot of reality bumps as companies come, and theres a evaluation reset. Is it realistic the nasdaq won it and not the New York Stock Exchange . I want to say its significant, but facebook was a similar situation, and the battle back and forth is not a battle of quality, whether they should be here or not. Well, im told its the third busiest week in 14 years. Yes, yes, but its not a very healthy type of ipo market from the standpoint of the sector distribution. Were seeing too many deals in the secondary part of the marketplace where theres a focus this is a hot sector, lets bring deals into the sector. When they saturate it, the market says, done for now and move to Something Else. If we had a better distribution of stocks across various sectors, i would find that to be a healthier market. What is saturated first . Pharma, trying to come back, tech will be there because of the sparkle in everys eyes. We didnt talk about secondarie secondaries, but something to watch as well. Absolutely, 3. 3 times secondaries pricing than ipos, unbelievable rate and continuous. David, thank you for joining us on a key morning. David menlow. Well count down to the opening bell and a last look at the premarket on this thursday. Were back in a minute. With all the opinions about stocks out there, how do you know which ones to follow . The equity summary score consolidates the ratings of up to 10 independent Research Providers into a single score thats weighted based on how accurate theyve been in the past. Im Howard Spielberg of fidelity investments. The equity summary score is one more innovative reason serious investors are choosing fidelity. 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Yesterday morning, we failed to make a lower low than the previous dayss reversal low, and they immediately came back in and started buying, so and this morning, we got a little sigh of relief bounce in the bond market because the pce deflator was mild baring out Janet Yellens idea its noise. They have the ball today . Yes. Is it back to 19 74 or what do we watch . Yeah, resistance is higher up because of the reversal, up around the 1970, 75 area, and should the bears find opportunity and come in here, they want the hold of the s p above 1940. Last week, you felt the credibility of the janet yellen would be tested as a result saying theres noise on inflation. Is that argument deflated partly, not just because of the pc numbers but because of the gdp data shows contraction, and, therefore, inevitably more slack in the economy. Well, i think she got a renewal of credibility. I dont think shes completely off the hook just yet because you saw how the markets reacted, the big jump in gold, et cetera, so people feel that there is kind of a less than fully visible Inflationary Pressure out there, downsizing of packaging in a variety of other things, but, yes, the pce this morning gave her a little boost in credibility. There were people saying she was purposely ignoring the inflat n Inflationary Pressure, and now shes off that hook