Lets look at crude oil. Well give you the 10year note yield. There it is. Where are we . Wow. 1. 88 . Lets get to our road map. It starts with you heard meg terrell talking about it. Teva ups the ante proposing to buy mylan 82 a share cash and stock. Both shares on the rise. And a parade of dow stocks starting off with earnings this morning. Well cover it all. Ibm seals fall for 12 consecutive quarter. Is the road map now in difficulty . Want to start off with teva as i go back in my pad and look for notes i took some time ago on the possibility of this because it is complex. Lets give you the news itself. You heard it on squawk box. 82 a share in cash and stock. Making an offer to acquire mylan which would create a giant generics business. Both do a lot of their business here in the good old usa. For its part mylan made an unsolicited proposal to acquire perago, an irish company. All these companies being inverted for tax purposes. Thats working through irish takeover law. It is a proposal. We have yet to hear anything defensive. Weve been wondering whether teva might choose to try to acquire mylan. Theres been chatter for months if not years. The culture of the two companies thought to be very very different. Mylan came out on friday in an unusual move and said it had no Interest Income acquired by teva despite the absence of any bid from teva but because of speculation that it made its way into some reporting on the situation. As for what mylan can do here a lot. Its got something called a stick dip. It makes it unvulnerable to a takeover under the netherlands law. The fact is its an unvulnerable poison pill that will enable mylan to avoid being taken over should it choose not to. Teva is going to its shareholders. As they always say, its not hostile to shareholders. We are offering a nice premium. Will be those shareholders we hope will pressure mylan to sit down to the negotiating table. As importantly, it will prevent mylan from getting the necessary vote of its own shareholders were to proceed with its bid to acquire perrigo. Which is down as a result. Never went up based on mylans bid. Because people thought this was a possibility. Possibility, yes. The fact is why didnt teva move before mylan inverted when it required a shareholder vote . Why didnt teva move 8 billion ago before mylan did its inversion and deal with abbott and added a great deal to its own market cap as a result. Its a frenzy david. You know its a frenzy within the sector. All the bankers are looking again and genoa you can do next. I thought it was interesting the statement on friday said we looked at this, there is no cultural fit or sound industrial logic either. That may be in dispute in terms of industrial logic and synergy numbers teva would put out once its done its due diligence. Its an interesting dance and somewhat complex to wrap it up yet again. Teva makes the 82 share a bid for mylan. It cannot follow through unless mylan agrees to come to the negotiating table, hence pressure from its own shareholders is what teva is hoping. Those same shareholders mylan will rely on to approve its bid to acquire perrigo. That may be in question at this point. Who knows . Perhaps you end up with no deals at all. Didnt they bring up antitrust problems as potential block . They did. What is the Corporate Tax rate in israel . Lower. Teva is inverted. They are all benefitting from lower tax rates than we have here in the u. S. That is a key component of this. Its not as though they are competing to buy another company that has that tax rate they all want because, as we know those inversions have been curbed substantially by regulations. I was going to say how big a deal, what is the price . Purchase price is 40 billion . Almost 50. We talked about a number of farms deals this year. This has to be the biggest. This is amongst the largest of those deals. Talking about a Company Almost 500 million shares outstanding. Closer to 40 40 plus. Whatever it is 42. Something like that. Teva stock price is going up. 50 is in stock. Hence the value of it will go up overall, as well. Consolidations. Things moving quickly. A lot of complexity here that well be giving you a lot more. What is the next step . Is mylan going to respond now that there is an official offer on the table. Its unsolicited they dont have to say much of anything. Im sure they will. Typically you do a stop look and listen and you come out and Say Something like we are not interested. In this case we know because they came out friday. Very unusual to put a press release out. They clearly had a feeling something was coming. On to dupont which had earnings out and is in the midst, not of an m a situation but disputed proxy fight over four directors with trian. The Company Reported earnings a bit above expectations when it comes to earnings per share. Nothing of great excitement. Suffering as a result with the strong dollar. That impacted the numbers both in terms of this quarter and the Guidance Range has now come down to the lower end of what is 4 to 4. 20 that had been previously communicated. I did speak to ceo Ellen Coleman on the phone not long ago. She told me we dont see the head wind going away any time soon when it comes to the dollar. Currency. Its going to hit profit in 2015 by 80 cents a share. Dupont of all the Chemical Companies is the most internationally exposed. This is something they cant help. That is hurting a lot of dow members well talk about in a moment. The question is, what does it mean ahead of this big vote . The dollar isnt doing dupont favors, but the underlying numbers here according to Mark Connolly who covered the stock, they are pretty good. He said thank you to nelson peltz. The company was performing and push the cost. They continue to cut costs. Trian is hosting a luncheon today with a lot of dupont investors as it continues to make its case ahead of the may 13th annual meeting in which its directors will be up against those. Dupont, four seats they are seeking in this ongoing battle. Speaking to ellen kullman, she said agriculture and Performance Chemicals continue to be a drag for us. Which are being spun off. Right. She did say we all wish we had spun cam afrnchemours. She pointed to safety and protection and Performance Chemicals as proof points. Proof points of her turnaround. Simon, i asked her about geography. She said a surprising note was hitting europe where strong Public Sector demand particularly for safety and protection talking about things like kevlar actually help the business and was a bit of a surprise on the upside. In fairness to her they are still within the range despite the dollar which is not common at the moment. The earnings range given the cost cuts they are executing on. Nelson peltz would say thats insufficient. If peltz wasnt there, where would you be . And would the stock be further in negative territory . If you look over the last year its underperformed the s p. Down on the yeartodate so far. I think trian will say today earnings are still down 15 year over year. In bulk chemicals. Overall for this company. They are still down 15 . They will claim they brought guidance down for the fourth year in a row. Ellen kullman responds saying its the reason we give a range. We dont believe we have lowered our guidance. Im sure trian will say you did. Its the fourth year in a row. Whos winning . Thats a great question. I asked kullman her thoughts. She said we keep telling our story. She is encouraged by her interaction with investors. That is township cal of what you might hear from a ceo in that situation. I dont know is the answer. Its a tough battle for trian. The Company Stock price has performed fairly well over a period of time. So its hard. Youve got to prove you can point to strength in numbers in the move she is making. They are selling the Dupont Country Club and hotel. That said its hard to imagine these guys are not going to come away with at least one or two board seats. Lets move to where the markets are. Under armour ibm. The major indices within range of records after yesterdays strong run. You saw over 200 points added to the dow. The s p overall, the Broader Market within less than 1 of its record high. Stephen wood is chief Market Strategist with Russell Investments. John manley, equity strategist with wells fargo. Steve, how do you feel earnings season is shaking down . 30 of the s p reporting. I think its going to continue to be weak. The trend is downward. Between weather, dollar its something of a kitchen sink quarter. Companies will use that cover. As we get into third and Fourth Quarter, thats where the earnings traction will be. I think from the broader economy in the United States anyway a lot of the benefits of cheaper oil will ripple through savings and then consumption. From a Growth Perspective and earnings perspective, we think a backend loaded 2015. Do you think it will rise into christmas . We do. The russell 1,000 is up 3 plus yeartodate. We are looking at 6. 5ish for u. S. Equities for 2015. We upgraded last year europe. Average issue for the u. S. Makes sense. Its interesting you chose the russell 3,000 rather than the s p 500 which is a smaller Cross Section of the market more dominated by big multinationals exposed to the dollar and whats happening abroad. Yours is a more domestic buyers call, correct . Well being Russell Investments guy, i think the russell 3,000, russell 1,000 are better indicators of the broad market. We are looking at large cap and small cap. Small cap the russell 2,000 up over 5 yeartodate. That gives us a broader it looks at the dollar as being important. Its going to continue to be important. Thats not the totality of the market. It was worth pointing out. John would you agree . I like international. I think Europe Western Europe will get better. One of the side effects of a strong dollar is a weak euro. Put that with quantitative easing and germans less restrictive, it gets better. I agree second quarters are the bottom and the street gets funny when it discounts earnings. If we get a sense, however bad this is in the next few weeks, this is as bad as its going to get, then the market starts up. We are getting a lot of bottom line beats. Expectations have been lowered so far that these companies are coming out with better earnings per share. Revenue growth is more elusive. With these valuations dont you need toetter growth for sales . You need growth somewhere down the road. Youll get it. To me its always been a race. Do Interest Rates go up before earnings do . Because of the way the fed is and the fed wanted to make sure the economy is Getting Better earnings and revenues will go higher before rates do. Doesnt that become a trap . Nobody knows what is going to happen wnhe fed starts raising rates. Every day some people make calls about potentially being chaotic. Isnt that a trap if you chase equities onto the second half of the year because you think earnings and revenues will rise faster, only to be sucker punched by the fed, potentially . Disagree with me please. That would be bad. Equities have been waiting for me. They havent gone far. For a period of time stocks were down 12 versus the long treasuries. I dont think stocks are way ahead of themselves. Valuations are okay. I think the fed will behave rationally. I worked the chair of the Federal Reserve is at least as smart as i am. She sees all these things going on and will tread very very carefully. Hang on. That depends what she is looking at do. You think she is primarily focused protecting the stock market, treasury market or setting rates that are correct for this economy . I think she is looking at labor markets. Chairman yellen has become a labor economist. Operative point is globally diversified and multiasset strategy. This is a Global Quantitative easing. The europeans clearly want to reproduce to assess what the americans had. This is european japanese chinese are beginning to ease as well. This is a globalful to answer the question though. I think the fed loves the stock market the way a turkey farmer loves his turkeys. As long as we are align with everything its going to be fine. I dont see where we become disaligned in the future. The economy needs encourage here. Theyll move very slowly and raise rates whenever they feel they can do it without tightening policy. John manley from wells fargo, stephen wood from Russell Investments, thank you both. Bird flu outbreaks affecting business at hormel. Well fill you in. Future for Morgan Stanley following its better than expected results. David faber will have a live and exclusive interview with chairman and ceo james gorman. Taking a look at futures. Coming off the best day of stocks in april. Dow set to open 80 points. More squawk on the street. Lot of speculation out there would try and acquire mylan by making an unsolicited offer 82 a share cash and stock. An Israeli Company going after a company domiciled in the netherlands going after a Company Based in ireland. I did say they were all inverted. Teva is just israeli. Pay as lower tax rate. The other two did move from u. S. To other tax jurisdictions. They got the schtickdink. trader vo i search. I research. I dig. And dig some more. Because, for me, the challenge of the search. Is almost as exciting as the thrill of the find. announcer at scottrade, we share your passion for trading. Thats why we rebuilt scottrade elite from the ground up including a proprietary momentum indicator that makes researching sectors and Industries Even easier. Because at scottrade our passion is to power yours. About 7 1 2 minutes before the opening bell. Lets bring in art cashin director of floor operations with ubs. Still greasedece for you . Greece remains in the background. Things calmed down in china. I think its going to be a long drama. I suspect we will play it through the end of this week which is one standard but as i discussed yesterday with simon, the idea that if they default, its not an immediate event. That its a brief honeymoon of a couple of months which you might see a change in governments. That having been said greek bond yields are way back at a big high. Not since weve seen 29 back in 2012, i think. You point out the fact this stock market has been in such a tight range for such a long time. 75 trading days up 0. 7 . How long is it since we had a 2 move . 80 days. What does that mean . Is that a market thats struggling to go higher . Is it the calm before the storm . Are we consolidating to rally . What is going on here . Thats the 64,000 question. 64 million in today s dollar. The point being it does look like the market is somewhat indecisive. Thats exemplified by the fact you get a 20 point move followed by a 120 down move. There is a good deal of indecision out there. Currencies saras favorite thing, will remain a key factor here. Well watch and see how they play into that. Particularly with the greek drama in the background. Strong dollar again. You are starting to see how its rippling across corporate earnings. Interesting to see the follow through from yesterdays bullish momentum. You told us to watch 2100 on the s p. We closed right on the nose. The key thing you want to do is take out the highs from last week. That would be the area of 2112 to 2115. If they can rally through those and rally through them conclusively. We are probably getting out of the zigzag pattern we see. I thought we rallied through those conclusively last week. You rallied to them not through them. And we are just below nasdaq 5,000. Interesting to see Tech Leadership outperforming. There was such great hope for ibm. Rally going great hope for ibm . For the earnings. Really. It was the best performer yesterday for the dow. I did notice the stock was up yesterday. And rally going into the earnings. People believe even if she had difficulty, she could not afford to have truly negative results. You saw that. Revenues were down again. Their revenues have been down four years in a row. To be fair they have divested a number of businesses that make comparisons somewhat difficult. Its not a growth business. She is focused on growing the pie of the growth businesses to a much larger overall. She is the company is the poster child for financial engineering. Theyve been buying back shares. With lower revenues, they can still show higher perngs share. They did buy back a lot fewer shares this last quarter than previously. She is no longer stuck to the road map, so to speak, that her predecessor had and she stuck to for probably way too long. That does give them more flexibility. Great to see you. My pleasure. Art cashin from ubs. The opening bell is minutes away. If youre looking for a car that drives you. And takes the wheel right from your very hands. This isnt that car. The first and only car with direct adaptive steering. The 328 horsepower q50 from infiniti. Here at td ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. You are watching cnbc squawk on the street. The opening bell will be ringing in about 30 seconds or so. I turn to you, sara and i think currencies. They figure prominently in earnings season whether its ibm or dupont continues to be a major theme. Four dow members reporting. The effects of the strong dollar. 30 of s p 500 companies are reporting. Light Economic Data heavy on earnings. Keep in mind we are coming off the best session for stocks during the month of april. We are 0. 8 away from the record high. There is the opening bell for