Best buy, williamssonoma, earnings surprises to the upside. Omnicare gets taken out by cvs 98 a share. The ceo of Lumber Liquidators resigns. Salesforce up on good oldfashioned earnings. Hear what they told jim about the quarter and competitors. Best buy up sharply after beating the street with its First Quarter results. Its domestic business was stronger than expected, driven by demand for smart phones. Large screen televisions, major appliances. Williamssonoma exceeding forecast in q1, comps up 4. 6. Confident we are executing against the right investment strategy. I sense there is progress but more work to do. This is incredible. They quoted in the release strengthening in our domestic business versus previous outlook. The daytoday inconsistencies, lowes did not see that. Home depot did see that. The categories best buy is doing well in are catries others are faltering in. I wonder whether the culture changed enough that they are simply doing better. They are selling more product. Canada didnt help. I totally understand why this company could be doing well. I spent a lot of time with the ceo of take two yesterday. Whether it be gopro, things to play games, best buy is a place to go. I think its gotten its socalled mojo versus amazon. There are a lot of companies, i think amazon is doing incredibly well because of fulfillment costs, a lot of companies combatted amazon whether it be target nordstrom or best buy. Interesting. That is interesting. We do have electronics. Morgan stanley upping their iphone forecast today. That was remarkable. They are talking about the iphone doing much better. And china which was a gopro story. Exactly. A lot of people feel china is a black hole. Its clearly not for apple. That is people moving up because the cell phone penetration is big. The other thing they talk about is the march. Mark is writing incredible programs for the watch. Its not a joke. There are people talking about the watch, mark said listen everyone is going to be happy two years from now. It was a matter of fact throwout line in a combative Conference Call. This is a whole team talking about how the watch is really going to be something you are going to have your cell phone. It wasnt well neighbor its going to happen. It was this is whats going to happen. Morgan stanley says demand for the watch up 60 since march. When my watch comes from mothers day i ordered expedited, that will be good. It fits the mothers day for next year because boy, i look bad right now. Williamssonoma, Current Quarter guidance does disappoint. Even with the beat. When i go over the quarter, its clear one of the things williamssonoma has done that again is another company that created tremendous ecommerce business. West elm is the driver. Pottery barn was just okay. Port strike must have been mentioned half a dozen time. Their whole inventory was in the wrong spot. They had to ship a lot of stuff by expensive means. I thought the port situation would be put to bed this quarter and they would up side surprise. I would like williamssonoma as part of the housewares trade, best buy, the home goods doing well. The ceo of home depot say they feel they should invest in their home because frankly, you know what . Home prices are going up. There is a nice thesis there involved with household formation. I like the williamssonoma story very much. She told you millennials no. Young parents living with their parents . The most number of people who have ever lived in this cohort of 1834 and there are 4 Million People ready to form household formation. To stop living in their moms basement. They are going to rent though. There has been a seminal shift. We are in the sharing world. Millennials share everything. They dont own cars. Half the people decide to get their home. That was the first home goods number we have seen in a long time. People forget how bad this Great Recession was. We are overbuilding versus the household formation 1. 3 million previous to the Great Recession. We dropped to 800,000. Now we are back to over 1. 2, 1. 3 demand for housing is exceeding the supply. We have a denver piece, but its nationwide. We built so many more homes and the hangover is over. Credit is hard to come by. There are certain cfos that people hang on every word. Thome is one of them. Thee is very mildmannered. Frank blake, the previous ceo, thome is a brilliant cfo. Macys has a brilliant cfo. These are cfos you hang on every word. Youve got to read the release from Lumber Liquidators, announcing that robert lynch unexpectedly resigned as ceo amid the government probe of the safety of the products. They use the word unexpectedly in the release. Typically would you read Something Like that and think he was fired. Unexpectedly makes you think, wait a second maybe he wasnt fired. He said im out of here. You put flooring you have a flooring featured in 60 minutes and sales go down dramatically do you give the guy a raise or decide what we have is a very Solid Campaign when you watch major league baseball. Thats what we have. This is liquidating this company by competition. In a rapid fashion. Now we are talking about a company with market cap below 700 million. It is not widely held. It was up there with ultrasalon. It was one of the keys to the market. Guys ask are you seeing the demise of the competition . These guys never saw them. Now they really dont see it. 60 minutes. Kind of this is like the old food lion reports. This one came back formaldehyde. That is something you dont want in your floors as much as you might have wanted before. They have been fighting back. They are now doing a national search. And tom sullivan who founded it 20 years ago will be the acting ceo. Tom reminds me of when Urban Outfitters got in trouble well they never put formaldehyde in the clothes. Never got to that. I hope not. When we talk about keys to this market m a is a key to this market. This morning we have yet another large deal. Cvs Health Agrees to buy pharmacy been fits provider. Omnicare which runs a lot of longterm senior facilities. And they provide drugs to them. As someone in longterm senior strategy omnicare would be my providers. To that group. Its 98 a share. Excuse me for that. 12. 7 billion. That includes debt. Cvs says the acquisition will expand its ability to care for the growing senior population. Its the power that the buyers have. Cvs caremark enormous power. Walgreens, Alliance Foods and amerisource bergen. They are involved with walgreens. They did a deal a couple of years back. Incredible power. That power translates into the way we all go about getting our drugs. It translates into how they choose between two drugs that treat the same disease and choosing one of them as we saw with the hepc treatments. They are looking at the senior population which is different. They are not working it. They are not getting it via Corporate Health care plan. They are not going into cvs. Medicare part d is paying per diem to a lot of these facilities. That includes pharma. If you can lower that cost, thats pure profit for you. That is the cohort they are going after here at cvs. They can have a customerfacing opportunity with them i guess. We are seeing the power to lower prices and to shift. From the drug companies, by the way. If you are pfizer youve got to be thinking about this all the time. Where do i go to have the value proposition. Is it still oncology . It may be a handful of things. Rare diseases. When merlot the ceo of cvs. A fine merlot. When cvs dropped cigarettes they became cvs health. It is a Health Care Cost container that has a drug store. Rite aid. Walgreens did sell its pbm. Walgreens new management they have to buy pbm. There is going to be a consolidation among the hmos. They didnt need to do it. The more i read into it the more i realized the most underserved cohort are people in assisted living. You own that group. You own the democratic dprask going that way. The omnicare guy, so to speak, the guy makes four trips a day to these centers to deliver drugs. If you can even figure that out and make it more efficient, that would be beneficial, whether through the mail or any other ways cvs has of getting it to you. They are paying 17 years worth of ebitda. They paid a huge amount of money. I wonder whether others didnt want it. Dont know there was an auction. I dont know. I dont know. I didnt ask the question. I should have. Ill get back to you. I think the consolidation is so hot and heavy. When i read this i said why did kesen not want to be in this . 17 times trailing ebitda. That is a huge multiple. The fed is giving away money. Pharamerico trades nine times. They are talking about this being accretive. When you can borrow money, pay all cash everything is accretive. The key is what the synergies are when it comes to their buying power and efficiencies that will drop down. Cradle to grave buying power. This is a demographic play. When i looked at this deal and drilled down more omnicare than i should have earlier, cvs wants to own you when youre born and want to own you till you leave. They do. They want to get access to that huge market. This is a 1953 merlot. When we come back salesforce on track to open to alltime highs. Dan shulman who will take over as paypal ceo as it splits from ebay. Take a look at the premarket. Analyst calls on netflix, nike pfizer, baba. Well get to it when squawk on the street continues. Here at td ameritrade, they love innovating. And apparently, they also love stickers. Whats up with these things, victor . We decided to give ourselves stickers for each feature we release. We read about 10,000 suggestions a week to create features that as traders wed want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. Who reads all those . He does. For all the confidence you need. Td ameritrade. You got this. Sales force higher in the premarket, reporting better than expected quarterly numbers, posting a jump in sales. The company says its become the fastest Software Firm to surpass 6 billion in revenue. He talked about the future on mad money. Dont you find it ironic in afterhours, you are trading within a dollar when oracle and ibm were suppose to be buying you . I would be more excited when we announce with you on this show we are the fastest to 10 billion. Today im saying we are the fastest to 6 billion. That its past. Im all about the future. Took a shot at sap. David letterman retired last night. We are trying to who can replace letterman and make great numbers . Its benioff. Marc benioff said dont talk to me until we get to 10 billion in revenue, most will be taken from competitors. And when we burn sap. A lot of guys bury the best joke. Im going to give it to you. It was his last line in the Conference Call. He says you are going to see 52 sales force demo situations. They should try writing some software. They took cocacola german which is one of the best. In the Conference Call they talked about major accounts they took from sap. This is a war. They made the joke there was someone from walmart, maybe it will be finished the implementation in my lifetime. They pulled that quote. The top ten reasons not to use sap, right here in this document. He could not hide profitability. How could they do the number . Heres the thing you need to know about sales force. 6 billion in unbilled revenues. Its not going to be hard to get to this 7 billion run rate. They cut back the options. They are no longer going to be giving as much to the customers to the people the employee which goes to the stakeholders. I have to tell you, i thought this was a quarter that showed when he gets to 10 billion he can show whatever profitability he wants. This could be an immensely profitable company. I almost said maybe sales force is actually not an expensive stock. It went up because of all the potential suitors. Now it sustained up here because of earnings. Looking at a tenyear chart. It rarely violates the 200 day for long. Very good point. I started recommending it 1,001 ago. Marc i thought was the real deal. This was the quarter where he was the real deal. Can you completely discount the possibility of consolidation and he conceivably i dont want to give voice to a lot of different reports out there. Clearly something. My own reporting indicates there was some overture made some time back. Microsoft fits well. 18 months in taking a 55 billion deal to your board is a lot of risk but it fits well. He wants to get to 17 billion in cloud. Benioff is all cloud, in a couple of years. What it to jumpstart that is to buy this company. Steve ballmer never gave former ballmer was never given the time of day. It would be friendly. Marc took a shot at oracle. Said i worked there 13 years. Its not going to happen. No there was a morning they had a key breakfast. I was invited to breakfast. Maybe he felt if they are going to negotiate 100 price, it was important to have a reporter there . No. I dont think there is a deal. Someone said google. No he doesnt like google. He is not going to surrender. The age of 50 his grandmother is alive at 103. Not doing as well as she was at 95. This guy at 50 does not want to sell as much as he wants to support the Childrens Hospital i visited that hes begin hundreds of millions of dollars to. When the companys at 10 billion, he might be bigger than microsoft. Well get to the opening bell and cramers mad dash. When you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. Thats where at t can help. With the tools and the network you need to make working as one easier than ever. Virtually anywhere. Leaving you free to focus on what matters most. 40 of the streetlights in detroit, at one point, did not work. You had some blocks and you had major thoroughfares and corridors that were just totally pitch black. Those things had to change. We wanted to restore our lighting system in the city. You can have the greatest dreams in the world, but unless you can finance those dreams, it doesnt happen. At the time that the bankruptcy filing was done, the Public Lighting Authority had a hard time of finding a bank. Citi did not run away from the table like some other bankers did. Citi had the strength to help us go to the credit markets and raise the money. Its a brighter day in detroit. People can see better when theyre out doing their tasks, young people are moving back in town the kids are feeling safer while they walk to school. And folks are making investments and the community is moving forward. 40 of the lights were out, but theyre not out for long. Theyre coming back. Weve got a mad dash on this thursday. Start off with nflx. Netflix defined this moment. Its difficult to define whats driving it. Citi talks about the franchise being underappreciated. The cannes film festival, these guys are making deals for cannes movies to shop to china. Citi says the franchise is up to 733. I think it gets there. I think this stock is on a march to 733. Market cap is too small for the opportunity. Could they expand prices . Obviously, the decision to go into original programming, which people wondered about at the time was brilliant. It was one of those companies at 70 to 90, people thought they shot themselves with the disk. They regrouped and learned their lesson. I dont like parabolic stocks. Thats right. Maybe we dont go back to this level. Amazon . Its had parabolic moments. Morgan stanley raising their price target. You know a that last quarter they broke out the amazon web services. Thats been the key to this whole move which people started saying they can be profitable if they want to. Netflix and amazon are two of the three companies that could raise their price tomorrow. Costco being the third. Thats how i distinguish these companies. Theyre a bargain. It can be a bargain. I bought four movies on amazon yesterday. Four. What the heck . Its free shipping. Free, what the hell . Cost of program for amazon is going up. Its not clear they have as much of a base to monetize as does netflix. The indian opportunity. We should talk about india. The indian opportunity is undervalued here. I want to talk about that hp deal in china and cablevision shares. We have so much more including the opening bell. You are watching cnbc squawk on the street live from the Financial Capital of the world. The opening bell in about 30 seconds or so. A lot going on. Some pmis around the globe. Japan was ahead. China behind. Mixed in europe. Germany down as the dollar rebound might take a bite out of that. Japan people talk about the big comeback. It might be real. Retail sales not bad. Housing starts here in the u. S. Theres the opening bell. The s p at the top of your screen. At the big board, its shopify for small and mediumsized businesses. Well talk with the ceo when the stock opens. At the nasdaq celebrating its ipo, zun. They opened 15 million stock accounts in the last four months. Talk about an overheated parabolic market. You want to stay away from that one. It doesnt mean it cant go higher, it does mean overvaluations are stunning versus the economy. I remember going onto a brokage house that was more akin to an otb where people would watch the races. It seemed people were watching the stock as though it was a horse race. They would go to the teller im selling that one, buying this one. There is that culture to trade rapidly. I know people are drawn to a redhot market like that. Im just urging you to be careful. Transports. Such a rough day for the airlines as southwest said they would start to add capacity. We got the transports now are almost 9 off their highs. Youve got a World Climate conference in europe right now everyone decided coal has to go away. Phil lebeau with a great piece how delta stepped up capacity. When you add capacity its the exact opposite when airlines were going higher. They were one of the great performers last year. I dont like the group. The estimates have to come down. If you buy ahead of estimate cuts, you almost never make money. American and southwest, two of the worst three s ps of the week. Only one worse is Urban Outfitters. Its disturbing because when the ceo of american was on i was doing my best to talk up things. He wouldnt go my way. He said no there is capacity coming on. Revenue per passenger seat miles will go lower. We have to defend our turf. Their Balance Sheets are great and they still make money. They can buy back a lot of stock. Doesn