10 year. That seems to happen so frequently yet. 1. 9 is the yield youll get for loaning your u. S. Government the money for 10 years. Lets start with the road map and it starts with earnings. Mcdonalds, all out with stocks. Is a google Wireless PhoneService Launching today . A new report on the move that could maybe shake up the industry. How about the turn around . They plan for yahoo japan in the spotlight. The core business were going to talk more about it. Youre not paying much for it. Maybe theres a reason. Lets start with mcdonds as sales continue to slump, the fast food chain expects sales to come in negative for april. Mcdonds release initial details of its turn around plan next month. In the meantime, chipoltes being up 10. 4 were a bit below what the analyst were expecting. Yum brands were down 12 in a very important market for it yes, you can say it with me china. You want to start with mcdonalds . Yeah. Were missing it. The revenues were made. I was shocked. This was not a bad quarter. I honestly we could go back and look line by line and look at the big picture, the forest not the trees, it made the revenues. They came in at 2. 3. 2. 3 drop. They gave you hope big early meeting and talked about ray crock. Talking about bold action this man is winning them over. You believe that. This is so important in the overall echo system if you will and we talked often about the fact that cost per franchise are far higher than they are at competitors such as burger king. Ive got to tell you, i think easter brook is giving you hope and dividend is giving you safety. Giving the u. S. Government what you get. Given the money, mcdonds you get better. Theres a lot of hope there. I dont think its displaced. Now, i think the most hilarious thing is the controversy about young verses chipolte. Suddenly, we love yum. Theyre only down 12 in china, not 15. Among these, Natural Organic losing . I dont know. Theres a great line. People have to do homework on chipolte before they write it off. Theres 85 ingredients in the single fast food competitor. Theres only 65 ingredients in an entire chipolte. 800 artificial preservatives. People like Natural Organic but chipolte doesnt like Inhumane Treatment of pigs. If youre going to grow pigs in a factory environment with slatted floors and no bedding, theyre not going to take it. They gave away pork rather than serve it. This is a controversy i think we reserve and the companies being conservative. I like the quartearter. Wait 10 days. This is the thing you had to do this time. You caught the bottom in the 470s. A billion dollar quarter for the first time. 2. 5 million per store. Only making 2 million three years ago. Thats amazing. Hes turning into sarah. Sarahs going to be joining us in a minute on cocacola. You were on a roll. I think theres so much here thats great and i do believe, by the way, in the end rotating black out of cornetus turned people off. You have to understand there was a rolling black out instead of just saying this became kind of a treasure. That turned people off. Thats not going to happen again. Theyre going to give them where it has to be. Dont forget food prices are up. Last year at this time last year they gave you the same kind of thing. They said look we cant continue to give you is sale numbers. Everyone sold the stock down. This was march 2014. It went all the way to 474 after reporting a socalled bad quarter. If you wait 10 days here youll capture a great price. Lets move on to yum now. I mentioned china the key market and double digit cop store sales declines. Yet that stock could be up as much as three bucks. Were talking about a nice panel move. China, i imagine having 80 ingredients in a burrito, its kfc over there. I think many people came back. There could be a turn. The turn doesnt occur overnight. I see a number of hundred dollar price targets. This is not an expensive stock. Its always been kfc china. People like this. Is there a real take away about buying mcdonalds . Yes. Here it is. Is it internationally people are not conserved . Cocacola cocacola, the rate of decline of diet sodas is no longer as steep as its been. Maybe some people like inorganic and natural. I like pop tarts. You could read that all day, the number of ingreend yent ingredients in a pop tart. You know how to make one . I dont. I had carls granola this morning. Cocacola posted earnings at 48 a share. Revenue rose for the first time in quarters. Youve seen her already and now jim can talk to sarah as well. She spoke with cocacolas cfo. You mentioned, of course the slowing decline. 6 down. That was a little bit better. I think thats interesting. A lot of people felt like the diet coke anville was just going to keep sinking. 4 volume growth in spray. Actually what sold a lot there was the wine. The good stuff. It was 8 organic growth that surprised people. Aggressive pricing was the headline. When i talked to kathy, the cfe, she talked 3 increase. Dont get use to that. Its not going to last. They start taking these moves. When they say pricing they start charging higher pricing. That helped a lot during this quarter. The other temporary factor here is they did and she told me this benefit from an easter shift and six extra days of selling. Theyre still calling this a transitional year. They had been very clear thats what its about. Productivity, cost cutting. Reinvesting in brands. She said we feel good about the quarter. I like the fact its a cheaper bank for the buck. Theyre up to 20 of add ver vising media. They get more sales from using social media. The other thing i like is the monster beverage deal closes this quarter. Thats the distribution version. Thats going to boost revenues. Do not forget theres a lot of hope here which they have a big investment in. Two Big Investments which people continue to speculate eventually. Theyre going to become expensive thanks to the coke investments. True. Maybe cocacola is the conservative way. They took out some of the natural juice in monster last quarter and sales were boosted by that. Theres clearly some sort of bizarre backlash between people who would actually prefer not to get sick from what they eat and people who seem to be neutral on the issue. The other thing i want to mention is theyre fully hedged. Two big markets overseas. Its the merging markets that are better hitting them. They kept their outlook for the year. Midto single digit kind of growth for the year excurrencies and that was better than the nationals which are getting slammed on these currencies. They deserve credit here. Theyre starting to pay off. Its ahead of schedule. Nice cash flow. Theyre saying listen were going to have a meeting. Its going to give you a turn around plan. Ive got all week. The cfo live from atlanta. I may go to atlanta. Its the opening eagles game is a monday night game in atlanta. That wont be until the fall. Youre going to get ready and go now. I got the schedule last night. Thats why the schedule comes out so people that are football fans can take the day off. Sarah, well see you again at 10 00. Not going to look your way again for the rest of the show. Shes disappearing for a little bit. Boeing beats with 97 a share. Thats jumping commercial revenue. The dow reconfirming for earnings and deliveries. We get through a lot of these big names and this earnings parade here, jim. Looks down a bit. Theres always a margin issue. To me the stock has had a markable run. Were still waiting for the dream liner to breakout. I dont think its going to be appealed. By the way, to be sure as much as i like honey well, as much as i Like Technology this one is still a key. No one looked at ati. Much like rti, im saying if its involved in aero space, dont sell it. We have melissa myer we have her sending a message thats helping overshadow her accompanysaccompanycompanys earnings. Also, ahead, scott mcgregor. Theres another look at futures coming your way. Were popping up a little bit as we head towards the open. We have a lot more squawk on the street right after this. Last night web cast spoke about unlocking the value of her accompanys 36 stake in i cant loo in yahooo japan. We have retained advisers to determine the most promising opportunities to maximize value. Its a key priority to explore the options thoroughly. Embarking the plan to spin off in full. Yahoo japan another significant asset about the accompany. Yahoo japan is controlled by soft bank. As for the quarter itself i had a chance to talk to a couple of investor investors. Maybe not quiet as bad as it looked at first. The operating expense keeps coming down. Theyve been under pressure from activist shareholder jeff smith, for example. They cut 1,100 jobs during the quarter. I know guys who are following, there are ways to follow people losing their jobs. It sounds you can look for whose looking, all the different online postings that go on and there are people closely following this because thats a big number. The operating expense coming down. In many places. This accompany was really poorly run and i think its layer after layer that they have to peel. David, i think that this accompany is in the same race as a lot of others. They call it in ibm they can call it something. Mobile video social you need that. Obviously, this is growth. This is similar to that part of the strategic world. Youve got to be in those areas. You cant be desktop. Of course you need to new initiatives to overtake the old at some point. Its not happening yet. No, in the meantime the stock just pops when they mention japan. Right. Well heres the thing. Youre getting by most math that is done out there from investors based on the discounting what the spending will be worth and yahoo japan and what its worth, youre getting the core business for nothing. For free. It is still generating cash. It is still creating so to speak. That said youve got an operating expense base thats declining. From a bigger point ive made times now, theres no clear turn around. No. A lot of that theyre spending money on search. Search is owned by another accompany. They redid the deal with microsoft last week. Look in the end. Search the owned by one accompany. Its a accompany that people feel has a monopoly. When on the other side of a monopoly feels terrible. They may be replaced by twisertwis twitter as the third seller. It wouldnt shock me. These are all about the smart phone. I know youre on the verizon call. Theres still many people who do not have these which is incredible. We have the lady last week. I asked her whether they could go to the smaller bundle and she said they would be fine. Meanwhile, she says not fine with us, fox says not fine with us. Comcast, not fine with us. Who is it fine with . Its fine with no one. Seems like the contract violations, how could they get away with this . I dont know. Its the question i asked. She didnt provide an insightful answer at the time but now theyre in trouble with well see, theyre moving ahead. Ceo is saying hey, were going to do these smaller bundles. I thought that was amazing. I went to law school didnt practice. Theres things like contrast. You have to have a meeting of the minds. Well keep an eye on verizon shares this morning. Seven times, david. So many other stookcks to get to. We have the mad dash coming up after this. It took tennis legend serena williams, fencing champion Tim Morehouse and the rockettes years to master their craft. But only moments to master paying bills at chase. Com. Depositing checks at the atm and transferring funds on the mobile app. Technology designed for you. So you can easily master the way you bank. Why do we do it . Why do we spend every waking moment, thinking about people . Why are we so committed to keeping you connected . Why combine performance with a conscience . Why innovate for a future without accidents . Why do any of it . Why do all of it . Because if it matters to you its everything to us. The xc60 crossover. From volvo. Lease the well equiped volvo xc60 today. Visit your local volvo showroom for details. All right. Time for our mad dash on this wednesday. Welcome back. Lets start with broadcom. Scott has bitten the bullet and gotten out of a lot of business thats not good. They had big business with apple, samsung, cisco. All good reads for those. We have connectivity, all strong doing a 5g bill out. They have a very big road map. People want it. This was very very positive quarter. A lot of people rerating this stock from thinking it was to being the envy of people. We know these are very loved, broadcom very good quarter. Scott will make you want to own it. He tells you a story of a major league transformation. Daiftd david, there isnt anything left. They had tough actions. Yep, was a strong performer then. Welltheres a lot of stuff there. All right. Lets move to a deal. Yet again, a lot of consolidation among the realestate trust. Associated states being required for 75 cash. They own the world financial center. Theyre regaining what they play here. All cash deals you might expect it would be there. They are mostly based in ohio i guess. They do deliver. One of the things weve seen david, theres way too many reads. The simon deal. Which did not happen. At least it hasnt happened yet. Ive got to tell you, theres so many synergies when we merge these two. I said listen these guys have it together. They are companies producing growth and income. This is a good deal. I think brookfield will give you growth and income. This industry is going to have five or six huge players. One of the closings expected to be in the second half of the 2015 again. 28. 75. Mergers continue. I know we have a favorite report that covered a three way battle. Thats got to be the most exciting thing. Its fascinating. What will happen . Yeah, that will be on the favor report. Israeli companies that do big business here that are mostly dutch. It is really, you cant even make this stuff up. Before we get to that we have the opening bell a few minutes away. Back after this. Automotive innovation starts. Right here. With a control pad than can read your handwriting, a widescreen multimedia center, and a headup display for enhanced driver focus. All inside a redesigned cabin of unrivaled style and comfort. The 2015 cclass. At the very touchpoint of performance and innovation. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. [bulldog yawns] its finally morning i cant wait to get to mattress discounters because the tempurpedic bonus event ends sunday. Ill have first pick from the huge selection of tempurpedic mattresses. Then ill get to choose 300 in pillows, sheets and other free gifts. On top of that, up to 48 months interestfree financing hurry mattress discounters tempurpedic bonus event ends sunday. Mmm. Some alarm clock you turned out to be. Mattress discounters 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. Youre watching squawk on the street. The opening bell for this wednesday. Back in hq, recomposing itself. Looks like a bit more green than red. Lets wait and see actually. I dont want to jump ahead. The opening bell theres the s p real Time Exchange and let me tell you who rang that bell. United nations and i shares highlighting earth day. Low carbon etf. I think they need a new name. Yeah, thats a mouth full. By the way, at 3 30 the futures were up nicely. Between 3 30 and 4 00 they got hit. A lot of this may have been the french terrorist action. The market never got covered. Ive got to tell you im surprised at how wrong the futures were. Oh at the nasdaq earth day celebration. They were waiting. We said something to cheer. So many different places to go. So many things that first look down and go up. You can see. I read through the quarter russia bad, china bad, execution and stocks up. You start thinking okay whats some of them going to do. Elliotts already gone down that road to a certain extent. Were talking llc and hewitt pack packard and nothing happened. People come to sbu igs. Sometimes. It reminds me of alteror. We heard from broadcom, the strong numbers. Altera reporting tomorrow i think after the bell. They may not be great number altera. Which may be a surprise when youre willing to turn down 54 bucks a share. Putting up earnings numbers that indicates why youre in a position to turn down a large multiple multiple deal that many shareholders encourage you to recorr. If they dont put up good numbers but bad numbers. It will be very interesting to see why altera can justify saying no given the fact if the quarter is not that good. That stock is up on air. I dont want to prejudge it. It is up in the air a bit. These are the numbers people might have not anticipated given their robust ejection again. What if they win some contracts . That would be devastating. Ill give you another example. Vertex. You cant kill the rumors. Its almost as if somebody says lets rumor this. One thing thats changed is the analyst make these calls. They use to no do that. The way allen did in the 80s. There was a hand full of analyst, very few were willing to do those kinds of things or talk take overs way back when i can remember some guys. Its much more prevalent now. Bernstein writes a piece saying what about this and that. Smith. Or even a golden sack saying break up jpmorgan. Thats one of the drivers. If a professional analyst makes that call as opposed to a rumor you have to discuss it. You cant shelve it. We have to discuss the vertex. Because it showed up in gilliad. Well discuss perego. We cant discuss that yet. I think we need to talk about the parent accompany comcast for a moment. Theres so much connected to comcast deals to require time westerner cable warner cable. If this were not to occur, you would have the creation conceivably of great land. This accompany that is being created out of the subs that will be spun from comcast time warner. So much riding on that. Meeting today at the d. O. J. Im airing basically that this is not a high level meaning. Youre not talking about the kingpins going. Its new staff with staff. In the end, lets find out what youre thinking. What are your objections here at d. O. J. . What are they based on . Some reading a lot into it. What comes out of the meeting . Doesnt mean something significant wont. I dont believe senior members are attending. David, the reporting on this one is going from yeah, its going to happen to look there are things that comcast did. Comcast disputes them and the parent accompany is in violation of a previous deal. I dont see this violation. What happens is theyre senators. Senator frank who should have no influence here. What surprises me still, jim, is the fact that the d. O. J. Is active here. Frankly, my anticipation has been that you get the f. C. C. Involved. It was the first question i asked Brian Roberts