The deadline is this week. And the tenyear personal spending was below expectations and the savings rate up yet again. Our road map a trio of multibilliondollar pharma deals. Were going to break them all down for you. Tim cook penning an oped against indianas religious freedom law. While the ceo of angies list explains his halting of expansion in the state. Ford reviving the iconic Lincoln Continental, and we will start to ceo mark fields live in just a few moments. Stock futures up after a chinese central stock bank owner said he saw more room. About 12. 8 billion in cash. And then of course the personal income rose. 4 but spending was up a weaker than expected. 1. You were talking about these deals with joe back at hq. A bunch of deals this morning. I think whats worth watching is how much the acquirer is going to go up. You have a deal like horizon had them on mad money because of their tax status. Its a terrific deal. An orphan drug. They tend not to go into orphan drugs, but thats what theyre doing. Youll see United Health go up because theres a scarcity of pharmacy benefit managers. These are percolating. But it is the futures were down rather markedly until china came in. I find all of these chinese stories to be a lot of just all talk, no action. But the deals themselves, the market loves them. China, as you said kind of turned the market. Milen should be down today. Selling 35 shares of milen from their deal to invert themselves. Which they successfully did. So thats going to be down. But this catamaran deal is huge. The merger of two pbms. But suddenly you have three big guys now, cvs and express and unh in the form of their optum rx unit which a lot of people expect eventually will be spun off from the company. Scaling it up to spin it off eventually. We shall see about that. But, you know paying a decent price, although the stock has been here before. Ive been recommending rite aid since it was at 3 and they bought a pharmacy benefit manager. Cvs attributes a lot of their success to being pharmacy benefit manager. Its just a remarkable business and i think that anyone whos in it has a leg up on everybody else. I keep thinking that walgreens, who i know got rid of their pharmacy benefit manager, but we have new management there. I thought that walgreens was going to go for catamaran. It comes on the heels of those reports about intel and altera. Were watching xilinx, too. Intel was jumping wildly. I was emailing david on friday saying i want to go out with this on friday but i dont think we have any data. Unfortunately, i wasnt able to give you much insight, im still not. Other than what we saw friday reported by dow jones. But jim the stock was up 28 on friday. Intel would seem to be one of the only potential buyers for this company. Im curious as to your thoughts on value here though. I know theyre partners. Ever since theyve been partners, the stock has been quite weak. I think that intel, it may not even matter how much they pay in order to be able to get them away from personal computers. So, i mean i think the market is going to afford them a lot of room because the ceo struggled mightily to get that Company Beyond personal companies. Its been linked as its been microsoft. So this gets them more into the internet of things. And the internet of things is loved by people. If we can fix the dollar for their cause, that would be another help, one big reason of the revenue warning a couple of weeks ago. Yes, and i think that intel is a very challenged company that does have a lot of cash and i think that hes done a great deal. But this would be very bullish for intel. We do have other news about the ftc having a meeting with the tobacco companies. Of course, still trying to get together. Dont forget antitrust. It wont fit in most significantly to this pbm deal. Baker used haliburton. Time warner cable, our parent comcast, the tobacco deal. Still out there. You will be dealing with antitrust and be hearing about it when it comes to mna. But this morning, were seeing headlines with the deals. A. But this morning, were seeing headlines with the deals. I think its extraordinary to see this. They fancy themselves, just so you know as a in my view a mini activist. This deal seals that. Some news on apple today. Ceo tim cook taking aim at indianas religious freedom law, and similar legislation in other states saying theyre setting a dangerous trend. Hes among the critics saying the law gives businesses a license to discriminate against gays. In an oped, cook writes americas Business Community recognized a long time ago that discrimination in all its forms is bad for business. Thats why on behalf of apple, im standing up to oppose this wave of legislation wherever it emerges. Later this morning, well talk with max levchin who is also speaking out on the new indiana law. Governor pence on the morning shows, his argument that these laws are about what he calls government overreach, but its creeping into the corporate sector. Starting with mark beniov tweeting, look were not going to do business. They bought exact target e. T. Which i think has been a winning acquisition, which is based in indiana, and when they were talking about this deal it was a major win to keep the people in indiana, not to move out to the new headquarters of sales force. So when they started the ball rolling, youve got eli lilly weighing in tim cook stopping from yelp. Yes, this was very significant. Because you had a lot of people who theoretically could be doing interstate commerce in indiana. Im waiting for this is another shoe to drop. This is a new forum of corporate activism. A lot of people were saying doesnt this hurt apple . No, it will not hurt apple. But apple could hurt indiana. Right. In this case it is the actual corporation being active. For a long time it seemed as though there was a reticence on the part of most chief executive executives to speak at all. It is interesting that the willingness on the part of a number of these companies to step into these issues. People do not understand mark beniov. Hes a very important figure in Silicon Valley. And he is not going to rest until this thing is somehow reversed. Now, obviously, were getting a lot of talk from the governor saying maybe we ought to redefine it or something. But tim cook being involved mark beniov being involved, the government might be on the wrong side of history here. The ceo of angies list was asked as well. This was an agreement that there were benefits for us to stay here. We were able to make commitments about hiring associated with those. If the atmosphere is such that we cant draw the talent that they cant be comfortable, then i cant commit the company. Starbucks wades into the race debate. Now we have apple. Is this any of their business . I think because they have such a representation, i think this is something new. Those that have read the tim cook legislation laws are dangerous. Read through it. These are ceos making a stand. And it is highly unusual, and yet it might be the way. Starbucks isnt going away. Dont forget theyre in partnership with larry cramer at usa today. They got the debate going. These are as controversial as you get. This is not our strength. Schultz has shown no hesitation from weighing into larger issues period. Different perhaps than any other ceo out there at a lot of companies. This does seem to have a business application if you will. The ceo of angels list clearly made some commitment to hiring and now hes questioning whether he can do it. In the case of apple and starbucks, youre talking about companies that have so much tail wind, they can afford to do Something Like this if perhaps they lose some business on the margin . I think that this is basically a shot. Anyone else by the way, when you go on twitter, when you talk about it people hate you. I think that hes showing, look were not going to do business you know cordon off the state, maybe teach others a lesson. People come right back and say president clinton said this was fine. They were always going to be some justification for doing this. I felt his prodiscrimination religious freedom laws was very cogent, but you can argue who is he . Hes going to alienate some customers. Absolutely. Absolutely. But, you know sometimes see, this is a new thing. I think thats the way to put it. He was saying we waded into gun control. We waded into samesex marriage. Theyve waded into a lot of things. And it has not hurt their business one bit. So those who think you know what, im going to sell the stock because of this. Be careful. Thats a really bad call. Its been a bad call to do. When we come back, mark fields on the return of the Lincoln Continental. What it means for the auto makers growth strategy. Auto sales are this week. Janney this morning saying mcdonalds is going to test breakfast all day. Well talk about that. And the premarket looks pretty good here. Triple digit gain at the open. A lotsquawk on the street live from the post nine when we return. Hello. I am a fully automated Investment Advisory service. I can help you choose investments. Monitor them. And rebalance your portfolio. I can do a lot of what humans can. Except have a real conversation. If youd like that, you can always speak to someone at schwab. They arent algorithms. Try not to hold it against them. Say hello at intelligent. Schwab. Com premarket looking pretty good. A few analyst upgrades. Yellen sounded pretty dovish. Well see where this leads us today. Okay this is kind of whats interesting about what you just said is once the fed put themselves on hold we had a remarkable rally, and then we gave back a lot last week. I think what you mentioned about the quarter perhaps not being an up quarter, we came in with so much optimism. And the earnings have really hurt us. A lot of thats the strong dollar. But the earnings have been overall, and i tend to be more of an optimist. But theyve been disappointing. I think that the averages are really reflecting that. Its been a true market. Weve not had a negative quarter in nine quarters. Right now were up. 1 for the quarter. But we keep bouncing off this hundredday moving average which is around 2040ish. We know what happened in february. Do you think fundamentally there is a floor here somewhere . I think when we start seeing the quarters i think were beginning to say you know what a lot of this was discounted. The answer is yes. David, you can comment on it, but to me the m a market really never impacted. Craft does a deal and not a lot of tail winds. Ipos, theyre almost nonexistent this quarter. This was a dud quarter in a lot of ways. Yeah, its funny, youre right. Ipos have been much quieter. There continues to be a significant pace. Its what we talked about at the top of the show of course. And that will continue. But to the extend that that has a broader impact its not clear that it will. It can lend to confidence as we often say, broadly speaking. And to a sense that there is an exit multiple available, which is important. And deals do beget deals. But when it comes to a craft, not necessarily a domino thing playing out. It was almost like craft did its deal so that industry is done. The semiconductors have had a lot of deals. These deals are very important from the point of view of just having so many players. And now theyre going to be dropping. Apple had such a big run. Nobody seemed to care about that. This was the quarter they gave a quarter, nobody showed. Its really kind of amazing. I expected much more in terms of translation. Were in a weird market. Jp morgan gets on the cover, theyre using a 6 number. Next thing you know, stock explodes. People are looking for something to buy. Yeah. And thats why we have you here jim. Well get mark fields from ford and of course, the mad dash in just a minute. The real question that needs to be asked is what is it that we can do that is impactful . What the cloud enables is computing to empower cancer researchers. It used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. Whatever i can do to help compute a cure for cancer, thats what id like to do. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. Let me talk to you about retirement. A 401 k is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable professional. Would you trust me as your Financial Advisor . I would. I would indeed. Well, lets be clear here. Im actually a dj. [ dance music plays ] [laughs] no way i have no Financial Experience at all. That really is you . If theyre not a cfp pro you just dont know. Find a certified Financial Planner professional whos thoroughly vetted at letsmakeaplan. Org. Cfp work with the highest standard. It was once the quintessential american car driven by elvis presley, clark gable, two u. S. President s jon hamm in mad men. Ford motors set to announce that the Lincoln Continental will ride gun. Were honored to be joined now by Ford Motor Company president and new jerseys own ceo mark fields. Mark this seems like its positioned to be right from the beginning a car that china will love, not necessarily that United States is going to be the flagship parent to sell it. Is that true . Well we developed this car for both markets. The segments are large in both countries. Actually, right now, china is the largest fullsized sedan segment. So we listened to them we listened to customers here in the u. S. And the interesting thing, jim, is theres a lot more commonalities between the customers in the two Different Countries than differences. The biggest difference though, is chinese consumers when they buy this fullsized luxury sedan, they usually chauffeured in it. We spent a lot of time on the back seat amenities on this can september. That brings to me the next point. When you do go in a black car in the United States, still many of them are ford cars. Could this be the uber car . Could this be the limousine in america the way that lincoln always used to be during the heyday . Well, you know back in the heyday Lincoln Continental defined sedans in the 50s and 60s. And thats exactly what we want to do with this new continental concept. For us, it signals what we call quiet luxury which is about elegance. Its around a serene and relaxing interior place you can chill. What we want is to be an extremely successful vehicle in that segment and in terms of whos going to buy it well we want to come with our best foot forward, because continental has always its a meaningful name and its always signified the best in lincoln sedans. Its carl. Youre quoted this morning as saying we dont want to be a feeder brand for other luxury brands. Who are you taking aim at with this . Is it an audi story, bmw, mercedes what . I think when you look at what weve done with the ford brand over the past seven or eight years, we have grown the brand, added customers to our stable of products and been pleased. For example, in the u. S. And even in china theyve responded to the ford brand. What we want to make sure is when those customers, if and when they want to move up to a luxury car, that were there for them with lincoln. When i look at what ford is doing, i have to wonder this strong dollar, im seeing cars being built in mexico by germans, by japanese, and im thinking, is this going to be an american car and how can you keep up with the luxury of these companies that are building them in mexico for 5 and hour and youve got higher costs in this country. Keep in mind, jim, we do produce cars in mexico as well, as well as a good number of engines. But clearly with the strong dollar, it has an impact to our business, where were not going to whine about it were going to deal with it. No matter where the vehicles are made or where our competitors make our vehicles we want to make sure that our vehicles have great appeal to our customers. Youve got to come with your a game around design around fuel efficiency safety, and Smart Technology and thats what were going to keep focusing on. Because what customers care about is those things. Where its made it means we have to continue to work on our costs wherever we are around the world so that were as efficient as possible. Were watching some video, which makes it look like maybe the back of the car can be my office, get everything done. Maybe i have my apple linked in. Maybe im able to do a lot of work in the back. Is this the office connected car that you and i have talked about so much . Well this is a vehicle where you actually can get a lot of work done in the back seat or just sit and chill. This concept that were showing is very interesting. The vehicle itself has 30way power seats that actually contour to your body. In the rear seat of the vehicle, the back seat can recline. Theres some other things in there, like if youre sitting in the sunroof and the heats coming down all you have to do is tap on the glass the smart glass, it will automatically become opaque and reduce the temperature up to 18 degrees. I mean its a place where whether youre sitting in the front seat or back seat we want this to be a serene and relaxing environment for folks, instead of one thats overpowering for them. Mark were going to get auto sales midweek here. We know that january was the best for the industry in nine years, but february was weak. A lot of people tried to argue that was weather. Why would you go shop for a car in the middle of the blizzard . Are we going to get some payback in march . Well, well have to see. Keep in mind that in march, theres one less selling day than last year. So that will impact the industry. From our perspective, we expect the retail sales to do well. Our fleet sales will be down because were in the middle of our f150 launch and edge launch as well as a few others. Give us a sense of gas mileage. By the way, lets just get a sense with gasoline at 2 youve got some big cars that must be selling. That expedition is still gigantic. I know it uses a little more gasoline than the rest of your line. What were seeing with the low gas price, we dont necessarily see we never saw a correlation in the past of people rushing out and buying cars just because gas prices are low. We dont see that affecting the industry. We are seeing the types of vehicles that consumers are buying change. Folks are migrating from small anded my and mid size cars to small and mid size suvs. But even with tha