Track for a positive week this week. Our road map begins with facebook. Mark zuckerberg is saying that facebook has more room to grow. President obama poised to support antiinversion tax legislation. Well see. And xilinx ceo gets no free passes. What he said to the man to my right about his dismal quarter. Facebook revenues are up 66 . Mark zuckerberg was on last nights Conference Call. One thing thats so exciting is theres so much more room to grow. People on facebook in the u. S. Spend about 40 minute as day using our service, including one in five minutes on mobile. People spend nine hours a day on digital, such as tv and computer. Premarket at 77, which is double the ipo price of 38. Facebook reports, jaws drop, and then New York Post business today, this doesnt zuck. People go for the highclass headline this morning, jim. But it was an amazing quarter. It was an amazing quarter. Youre going to hear, this thing couldnt possibly be at this level. Typically when you hear those things it follows with the idea that maybe its just all revenues. I think 3 is now doable at 2016. I was highest by 50 cents going in in terms of my estimates. Youve got to give it a 90. It was a beautiful play put on, that is, their Conference Call. Mark zuckerberg. This was a good quarter for us. Good quarter. The margins are stunning. Stunning. Its a machine. Its a machine. And they are humble. They talk about a tenyear plan. Zuck gives you a tenyear plan up front and then sandberg tells you why people are going to like them for the next ten years. As the Conference Call goes on, you realize that what they are trying not to be is microsoft. They are trying to have a very longterm view. They are trying not to be google. I can tell from what they are saying, google does a lot of things and hopes that something stick. Z man is talking about things sticking over a long period of time. He talks about the messenger, he says, this is the future. Z man . Z man. There is a school of thought that paper and slingshot and other things that they have tried to do is not always a home run. They are doing things that are actually additive. Look, i think its great that they fail. Actually, i thought there was too much on light rail in terms of the prestige of the Conference Call. I dont know about you guys, but when i go online and google something, i google something and typically theres 14 things that come up in ads that i dont want and it sends me to different places and zuckerberg is really worried about the user experience. And i think thats one of the reasons why they say mobile does it, they answer a lot of the objectives. Mobile doesnt have a lot of ads. And he says, mobile isnt going to have a lot of ads. Isnt that why mobile is 50 of the earnings. To be fair, facebook and google are splitting mobile advertising, period. Right. Facebook share is 18. Google is 40. Facebook is what they are calling the cage match now. Right. One thing that Zuckerberg Talks about and we talk about it, how many hours people spend online, its oneninth of the time and he wants it to go to onesixth. As the Conference Call goes on, you get the sense, wait a second, they are being really conservative. What i got from the investors that i spoke to, they are not even monetizing and they took down their expense growth, i believe. I know. The leverage here. Leverage meaning what they can bring to the bottom line. They have no content costs. You see the little cap x. Its like the ebitda. We built this chart, which is an amazing chart because you can see over the past few years, right when desktop in 2012 right when it was about to start flagging out, they got religion on mobile and people said they were late and look at that trajectory. 40 of ad revenue last year. Remember, it was 5 when they came public. This company has been very humble. They admit they screwed up on mobile and then theyve come back. Most Conference Calls that i have dealt with this quarter, there have been numbers that are manufactured by a lot of buy backs and this was an slept quarter. Humility goes far with investors, typically when you back it up with a 3 possible number. Incredible growth overall and therefore a multiple on your stock, as you say, or 16. You struggle because lets say 50 in 2016. Companies obviously are going to grow. Great. But its a big number. How do you find what to pay for 3 . And i tell you whone thing, it growing three times the average stock, maybe four in pure oxygenated growth. 90. I present to you 90 in facebook. Total ad value is time warner combined. We are getting word that an algeria flight that was missing has in fact crashed. Thats according to reuters. The flight departed from the west african country of burkina. 160 people on board and it apparently crashed over west africa. Capping what has been an unbelievable week for commercial aviation, all around the globe from mh17 to the crash in taiwan which is weatherrelated, but its been a tough week to fly. And its pretty clear that i know that historically Airline Traffic bounces back after these things but when you see these kinds of tragedies, you know, you try to put them in context of the stock market. It just doesnt work. No. It just doesnt work. Also this morning, General Motors taking charge of the recall crisis. The First Quarterly profit in europe in three years. South america is still very tough. Revenue is down 30. Youve got brazil, argentina, capacity in venezuela coming down. You know, look, this is mark fields first call. Lets make sure were not too negative about this. Profitable north america asiapacific, it gets very important. Record market shear in china. Theres a lot that i like here. First quarterly profit in europe. If you remember, thats something that ali promised. I think mark is hitting the ground running. I dont want to be as negative as gm as the stock. Also because the u. S. Was incredibly profitable but people arent going to talk about that. They are going to talk about the charges. But i think mark fields wouldnt just he was dealt a good hand by alan mulally and i think hes going to be very strong. It was 30 billion in 09 and 15 billion as the margin got cleaned up. And in north america, up 9 . Thats the Fourth Quarter of profits in this country. And the numbers were amazing for gm. One thing about ford, if it anyone was investing in the 80s, they would give you dividends that were, you know, these things would yield 4, 5 and now these days they have much better control of expenses, of medical. Much better control of where they build and how much it costs. Youre going to see a return to huge dividends from these stocks. Hold on to them. We havent touched cad. They say we dont return the mining but construction was up 11 and they see revenue even though they see revenue at the low end. I didnt like cad. I didnt like it because were still talking about resource industries. Were still talking about mining. Copper was up 4 cents last night. Youre playing caterpillar and with it is a big turn in the u. S. I mean, if you look at what didnt work for them, china, which we had a very good pmi last night. Cis, its a russian impact. Bsaf, which is a gigantic play on russia, 50 comes from gas profit and cis weakness that ive seen for russia, theres too much not doing well here at caterpillar to get me excited to give them the runs. Thats why the stock is done. This has got to be more of a mining play. They did see 2 million buybacks in this quarter. Good luck. You squeeze the source by blowing away revenues. Its some of the best growth ive seen with this quarter. You dont queasy them with buyback. I think its important to point out that they are if they get china right, the stock is going to the moon but they havent. They havent gotten china right. You want to do tea here later . Later. The thing with at t, they seem to be aggressively rebasing their entire list of customers down and that is going to have fewer of them turning off because why would you and its going to put pressure on sprint and tmobile. Its a conversation that we can go into more detail. We also want to talk airlines perhaps. With. Dif tends, gilead. American airlines a. Dividend. 10 cent dividend. Doug barker on with a great interview this morning. I know american is great. How quickly do we take for granted that american is great . Tonight, Steve Liesman is talking tax policy. Steve liesman gets tough with xilinxs ceo. They are comparing to your rant years ago. Plus, trains, planes, and profits. And what is the Railroad Operation telling Jack Koraleski about the economy . The dow is a few points from the train day high. More squawk on the street in just a minute. The cadillac summer collection is here. During the cadillac summers best event, lease this 2014 ats for around 299 a month and make this the summer of style. You presented several conferences where you had an average annual growth rate for fiscal 2015 but lowered it 5 . Why did you stear us towarer us higher rate. Its not a question of if. Its a question of when. In this case, the big surprise that we had was the rollout of the Wireless Infrastructure in china. We had expected the third round to happen earlier than it currently is projected to happen and were being very cautious now to make sure that we hit it. Cramer with tough questions for xilinxs ceo. You did almost a mea culpa on this one. Sometimes you do your homework and then sometimes it doesnt work because they take it back and several occasions in the spring, they said that china was ramping multiple years and then they said that china was bad, that china was pulling back. Why did we focus on xilinx . Because it was the worst performer, one of the worst quarters ive seen. But most importantly, technology is on fire. So how did you miss china . How did you miss aerospace . Mark haines told me no free passes. When somebody does it wrong, moshe is a casualty of what mark is talking about. Big day for airlines, meantime. Both american and united and continental posting better than expected profits. Jetblue in line next. Were going to talk with southwests Ceo Gary Kelly later this hour. But american is getting the buzz because of the billion dollar buyback, 10 cent dividend. This is becoming the norm for the industry. Well, i think people are going to say, wait a second, the marketplace of the journal has four new air startups. People are saying that too many planes are coming on and seats are going to go down. I think this group is still investable but i dont like to see the ual i have ua on the brain because i have stock that is up huge. Theres so much this morning. So much. So much. Including ipg. Do you want to save it . Lets do it now. Ipg, you recently had the ceo on recently. A couple of days ago. This is a company that i spoke about at the end of may. This morning, elliott management, which i said was buying the shares, does file with the 6. 7 stake. Although, a lot of it is options, by the way. Its interesting how these turn out to not just be the common but a lot of options that they purchased to create the common stock. But 6. 7 saying we want to engage, we think the shares are undervalued. Nothing more than that. They are not putting it in writing, we want you to sell yourself or we believe this or that. One of the more activist activists out there. In addition to so many other things they do, argentina is another area that theyve been focused on. Michael roth took this company from zero to hero. When the deal fell apart, they said on our air that this company is going to be acquired. This company just won the microsoft account, which is monster. They got the pizza hut account, which is grand. They bought facebook ahead of the quarter. Wow. It would be amazing if he has to product him anymore. We have some lines that werent perfect. They did inline but it reminds me of being picked on by nelson health. Well see. Part of that may be the buying or the rumors reporting on elliott. They are there now and well see what happens. Excellent. Well get cramers mad dash. And what a day for wyndham ceo. At t and starbucks. Were back in a minute. 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In many ways, this is the story of how a Company Created a cure to a horrible disease and the market likes maintenance drugs that dont cure. Here you take a course and thats why its selling at nine times earnings with the greatest drug every introduced in the world. It may become the largest drunk of all time. 3. 5 billion in the last quarter. That will be substantially higher because people dont know they have the disease. 84,000 for, what, 12 weeks. A lot of pushback. And we cure the disease. You never hear cure. Heres the problem, david. Much of the calls q a will be devoted to, will the insurers pay . Everybody if they knew they had he hepc and took this pill, they would bankrupt them. I wonder if they can afford to say how much money they are really making. At the same time, if you have this dreaded disease, you would pay anything. A lot of people dont even know they have it. Right. You can say it will bankrupt the system, half the people dont know they have it at this point so it would take time. What do you pay for a cure . This is a sunday school question. And having to pay a lot for their care when they get liver cancer or whatever it may be. The insurers want the insurers desperately want competition. The patients desperately want this drug and i think that when push comes to shove, they, the insurers, must pay until another pill comes along. Peggy hamburg has not been that quick. Paid 11. 5 billion for pharma sec in sales they are going to do that. Miss yellen, listen to me. That is in year one. We have the opening bell and so much to talk about right after this. We started zya with the thought that the kid on the back of the bus might have a song that he has in his head but he just cant get out. With the technology of cloud, we change all that. I can sing something into my device, up to the cloud it goes, back down it comes, sounding better. 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That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. Youre watching cnbc squawk on the street live from the capital. Opening bell in just a minute. We have to go back to early 2006 to get a number that the Unemployment Rate is at. In the meantime, this dont trust the market theme, how many days . 26. When do we just say, yeah. All right. Some of the names we havent gotten to, but some of the biggest names, facebook last night, caterpillar, 3m, at the big board town square media, live Event Properties celebrating its ipo. Its a drug Device Company specializing in ear, nose, and throat conditions also celebrating tonight. Under armour, jim, we have not gotten to. The revenues basically crush it. And the margins are up begin. Kevin is an innovator. What i liked about this was in a subtle way hes taking the big shots at nike. Hes saying footwear is strong. Everyone used to laugh about his footwear. International strong. This thing is a juggernaut. It should be up even higher. It was one of the few Growth Stocks that got hit that has come back to the level that it had before the swoon. Congratulations. You are killing it. The hallmarks of neike. A lot of it is the fact that we didnt think it would happen. People think of innovation and they think of the pc and the cell phone. I think what kevin plank is doing, remember what he said at the university of mare layland, was a necessity. Under armour closing on a 10 gain. Qualcomm is going to be one of our big losers despite the beat for guidance. They had this fight with china. They were talking about how china was a problem. If you look at what qualcomm said, qualcomm will come back because the analysts cant handle it. They had great growth but there were royalty issues in china that made it so people were surprised and they expected a big blowup. Be aware that china is not so great for qualcomm. You know who china was great for . Who . Nokia. They sell a lot of equipment in china. Nobody talks about it anymore but, wow, what a comeback. Youve got to take the bad with the fascinating. To keep the good for nokia. Twitter is up. Were going to be hearing from them. There was a note sent out that User Engagement is not as good. Its going to be about User Engagement. It is. Right. And user metrics in terms of growing the actual but in the end, twitter is a company that if youre looking at earnings, its overvalued. If you look at facebook on earnings, its undervalued. Thats why facebook got t