And twitter which report after the bell. Well also get a preview of what you can kmpt. Tmobile shares on the rise this morning after strong earnings. John legere will join us onset fresh after his Company Analyst call. First up, beating the street with Quarterly Earnings on squawk. Saying did help results. If you look at the margins, core gross margin up 270 basis points. Core operating margin up 300 basis points. Thats net of the fx headwind. So its really giving us the ability to continue investing in markets to continue to serve consumers and hopefully to reaccelerate top line growth. That is key. Organic sales up one, which is not as good as unilever or lo real. Does more merging growth. They have these divisions that have been bad for ages. Grooming is bad again, decreased 1 , u. S. Offset international. Beauty plus one. I mean, baby sales decline. Thats that kimberlyclark price war, but they take the Gross Margins up. The junk, the stuff you can cut, the stuff that costs you money is down. Yeah. Operating Profit Margins plus 320 basis points. This is the story of the earnings period. Dont worry about the top line, as long as they keep firing well do it. That would be it. It would go to the moon all these stocks. Yeah. These quarters are not the kinds of quarters that i want to see. But theyre the kinds of kwarlters that the markets happy with. Well, theyre not growth quarters. Exactly. Theyre cost saving quarters. Right. But we always wonder when we have these kinds of quarters year over year and year after year whether the companies can keep doing it, and yet they are seemingly able to find costs even though theyve been zero basing things and, you know. Dupont told me repeatedly shed taken out big costs. Ed breen comes there and corporate expense is down 44 . I mean, what did he do . Did they have secretaries for secretaries who were being secretaries for National Secretary day must have been biggest day at dupont. Do they close the office for National Secretary day . They may have just closed the offices period and not opened them again. By the way, both dupont and lilly today saying that the forex impact is declining. 20 cents at dupont versus a prior 30. Ed breen finally said it. 10 cents positive this dollar. When you go over the quarter what hes basically saying is, listen, things are really going our way. Look at these Gross Margins nutrition up gross 30 electric up 130, ag up 240. This ag business, theyre going to be the number one seed company when they finish merging with dow which they said would happen by the end of the second half. 10 workforce cut. Two of the three headquarters will be in delaware, which i bet you the Vice President likes. Say that again. Two of the three new headquarters when they split dow and dupont merge theres going to be three companies, two will be headquartered in delaware. Are we sure about that . Damn sure. You are . Because i remember at the time of the deal id been hearing otherwise. And there were some real questions. A lot of things seemed to be moving to michigan. Two out of three going two out of three aint bad for joe biden. Okay. Oh, hes the Vice President. Yes. Probably dont want to upset him, right . As opposed to ian reed. Ian reed made himself an enemy in the treasury and or the white house. It didnt help him. He said, listen, im going to have my u. S. Headquarters at 164th and flushing. Queens boulevard. Neighborhood right there. 164th right where my wifes from. Right there. By the way, pfizer did start in brooklyn. It did . Yes. I didnt know that. If what youre saying is absolutely true that the quality of these earnings remain weak, why is it the nasdaq then thats been punished more severely . Well, because google added a lot of people. Google had the biggest head count increase. People dont want that right now. Im not being facetious, i looked at all the quarters reported so far the stock thats done the most poorly is the one that added the most people. So this market is upside down. It wants to see Gross Margins increase more than revenue increase. And it wants to see cost controls and commodities flowing through the decline in commodities going through. And look at Union Pacific and Norfolk Southern. How are they still able to fire people . It only wants to see those things because it knows it cant see the other. I mean, if youre telling me investors would not be happy with growth, of course they would. I know its going to rain. Thai saying were not going to get growth so well figure out another way and withhold judgment. If you fire many people and the revenues have any inflexion, second halfs going to be huge. I got to tell you when yo go over some of these quarters like caterpill caterpillar, the much maligned caterpillar, europe was better, china was better, baltic freight up today. I know a lot of people think chinese are stockpiling. I know, chinese aside from the military article is a little i remember teper talking about this some time back on squawk box saying i dont see top line growth and i dont think the margins can expand that much anymore for a lot of corporations based on productivity increases or cost cutting. What youre saying is they are. I think daves wrong. And thats where were going to get a little alpha. This is this, you know, billionaires are never wrong thing. Im revising that. Billionaires can be wrong. Oh, theyre wrong all the time. Billionaires are wrong all the time . Endlessly wrong. I know we refer to them as they know everything, but they dont. Look at proctors margins. Theyre awesome. Im thinking back to the beginning of the year when goldman did that list of 50 Companies Set to expand margins in 16 is the story of the year. We got freeport 25 workforce is going away. Pioneer, pxd, i mean, theyre finding more oil with fewer people. They see okay equilibrium. They will rehire when things get better. People are ready for the inflexion. I think Norfolk Southern may have been the star of this whole earnings season because they had the expenses. Revenues down six, expenses down double digits. Thats what you want. Honeywell announced a big buyback yesterday after the show. Didnt get reaction to the market because i gez its sort of more the same. Still, a lot of them. You know, i think dave cote the china story remains a very positive one. And i think that unless, you know, i dont know, i mean, unless this military story i thought was very threatening today about the chinese military. But theyre obviously taking a lot of product in. Look at annex p this is the First Quarter where they merge with free scale and they are seeing very good demand at the end of the quarter. Thats another theme that demand went up. Nxpi can cut people because of the merger with free scale. And theyre not just apple anymore. Apple by the way taken numbers down three times in my head since the show began. Its only been eight minutes. Well, i got another five downgrades. I mean these are the softest bulls ive ever seen. They are i was describing earli earlier, i went to a bullfight in mexico and had to leave at the end because i had a bad feel. The matadors are out there with the red flags and then switch to the these bulls are just ready to jump ship so quickly its like upton sinclaire, nasty slaughter house do you remember that book . I do. There you go. As jim alludes big earnings tonight, apple will be one of them. A lot of Analysts Expect the dow component to report its first year on year decline in iphone unit sales. At t and twitter among Companies Due to report after the close of trading, but apple will be the one youre focused on. I was telling my trainer this morning at 4 30 a. M. , i was able to get the dupont number out this is the wrong day. Companies reporting today youre going to get short tripped. Move to other days. I know apple had to move because of the unfortunate death of mr. Campbell, but inga, i cant look at your number. Im too busy looking at proctors number which then makes me look at whirlpools number and then coachs number and then john legere coming over, what is the magenta thing. Yeah. Its the wrong day. Yeah, unless you want to have your earnings under the radar. My favorite is when we see a late friday announcement from a company on a long weekend. Thats always a good time to get things. Jim mentions tmobile, its up in the premarket 10. 6 jump in revenue raising forecast for customer additions. We are going to talk to john legere later this hour. Hes going to make his way directly from the Earnings Call to our set. Hes going to hijack a subway car with the magenta guys. Its going to be the taking of the six. The number two. I think hes on the west side. Hes coming tr times square. Stops there 42nd street. 72nd then 42nd. Correct. And then 34th. Then 14th, then chambers. And the f stop. Theres a bunch of stops. The f also goes to my Old Neighborhood in queens. Could go all the way. Its incredible. The new york city subways an amazing thing. Thats pfizer i keep going back. Try keep it running if we can. Okay. We were talking about tmobile though. Viewers are like what are they talking about. Yeah, why are you discussing these things. T mlb is a Great Company. Look at legere and think it has to run out. Last time the stock was 28. 38, the stock didnt go up and talked about the idea how long can he stay independent if this stock doesnt go higher . Well, theres nobody to buy him. Hes too big now, right . Dish is not going to do the deal. Sprints not going to do the deal, so who will . Verizon and at t youre never going to be able to buy them, so hes got to buy something if he wants to get larger. The question is what. Doing a deal with charlie is very difficult. Really . A Cable Company . Theres our Parent Company that, you know, you never know might be enticed to do something, thats an interesting point you made. I didnt make it. You made it. You brought me there. I know exactly how youre thinking. Brighthouse. Brighthouse, part of charter which got all the approvals yesterday. Although tough conditions. Yeah. I mean youre not allowed to watch them, right . You can watch them. Do you see some of those things they put on you . I have to have netflix on there. Tom had some tough things to say in interviews we did and then were used when he talked about hbo sowing the seeds of its own demise by going over the top. And they definitely did apply some significant conditions for seven years trying to help the growth of the online video marketplace. But dont you think that was highly unusual that that was just basically saying, listen, you going to do this deal we want no more buffering. Its an antibuffering clause. Adding households, independent monitor, things that other large deals did not have. Could it play in their favor versus fios . What . I was buffering this weekend. Were you . On fios . By the way, with nonunion guys, whos going to let any of those people in your home . Until they figure out the strike, i mean really . I was trained two weeks ago. I said what is that . Its got to be like the fbi or something, right . Replacement workers. It was definitely bugged my house with the verizon truck. When we come back, a live and very rare interview with phil knight, the man who built nike 50 years ago into the Worlds Largest sports footwear, apparel and equipment company. Hes coming down to the exchange. One look at the premarket. And we will get to lockheed and 3m and coach and whirlpool, hershey and a lot more. More squawk on the street from post nine after a break. From virtually anywhere. Its been smashed and driven. Its perceptive enough to detect other vehicles on the road. Its been shaken and pummeled. Its innovative enough to brake by itself, park itself and help you steer. Its been in the rain. And dragged through the mud. The 2016 gle. Its where brains meet brawn. Lease the gle350 for 599 a month at your local mercedesbenz dealer. The call just came in. Shes about to arrive. And with her, a flood of potential patients. A deluge of digital records. Xrays, mris. All on account. Of penelope. But with the help of at t, and a network that scales up and down ondemand, this hospital can be ready. Giving them the agility to be flexible reliable. Because no one knows like at t. Shares of sarepta plummeting in the premarket. The panel said the drug had not been proven effective. Piper, jim, as you say goes hold to sell. Yeah. Suntrust talked about negative cut. This is a very, very hard disease. I know others have tried and it just seems like everything i know. Look, everybody wants hope on this one. And i think sarepta did its best. Biomarin tried. Yeah, its a heartbreaking disease. Youre a 12yearold boy one day on your bicycle and next day youre suddenly realizing youre going to be in a wheelchair in a short time and Life Expectancy cut short. Key here seems to be lack of substantial effectiveness. Youre talking about a trial involving only 12 patients without placebo control, even though it does appear that there was help conferred to those who used the drug, and the muscular dystrophy communities you imagine is looking for anything that will help these boys and they are largely all boys. Hoping for some compassionate but the fda they need more trials. For instance, when i had j. J. On from biomarin, they have a drug looks like it really does cure hemophilia, but theyve had a small group of people cured by it. But he just said, look, i cant go to the fda with a small group of people. I just cant. Thats how you get a tarnished reputation go to the fda and try to jump it. But youre feeling the same thing which is, well, anything would be great, but you cant just give people anything. Even these cancer trials where people are on the verge of dying. You know, the fda does not want look, i think our fda im defending our fda here. Understood. I think theyre trying theyre much better than they used to be in terms of trying to get things to the public, but they do have a set of rules. And you cant beat that set of rules. A friend of mine has a company that does liquid biopsies and they have to do peer review and have fda to buy it and medicare to buyin and just got picked up by savings and loan keterring because take a sample of your blood and they can find out whether you might be a candidate for stage 4 breast cancer. But you still got to go through this process. And the process is rigorous because people have been hurt. Sure. On the flip side a lot of that hard work has been done at lilly. As we talk about the lightning forex burden. Yeah, people really want the alzheimers drug. Youre not going to get they had some change in the verbiage there, but lilly is good, the problem is jnjs better. In the end jnjs going to be valued at a premium. Eli lilly is good though. We were hoping for this big alsz hi alzheimers breakthrough and didnt get that. Saying the use of cialis is actually being outweighed for other uses for arguably more medical reasons. Volume up 30 in the quarter. What is that some sort of Positive Side effect . Yeah. I did not know that. Im not familiar with that. What are the other uses . Im serious. Youre going to hide it like that . I wouldnt hide it. Theres no hiding with me. That was a good im transparent. You hear music, isnt that a great time to go to commercial. It is a good time. Im happy to continue this discussion if youd like. There are some things i need to teach you . Old dog new tricks. Well get cramers mad dash and count down to the opening bell in a moment. Also ahead as we said a live interview with nikes founder and chairman phil knight. Take another look at the premarket. More squawk on the street from the nyse straight ahead. Sic pla the first stock index was created over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. In that neighborhood, it wawhat we could afford. O get so i had set up alerts to say that if anything in this area ever comes below a certain price point. It just popped up one day and i was like, oh my god, we have to go see it its a really wonderful neighborhood, and then to add on to that how wonderful the house is, is so cool. Whatever home means to you, well help you find it. Zillow. You can fly across welcome town in minutes16, or across the globe in under an hour. Whole communities are living on mars and solar satellites provide earth with unlimited clean power. In less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. And if you thought that was amazing, you just wait. Were going to talk a little b. P. In the mad dash. A lot of companies thought it was better to split up, remember that kind of phase, conoco, marathon . Well, bp is telling you thats not the thing to do because they were saved by refining and marketing. Much better than expected quarter. Kind of really a blowaway, though a lot of people worried about the dividend dont worry about the dividend anymore. The cfo saying a lot of good things. 2017 going to be a stronger year. That jives with what im seeing in supply and demand. They lost money though. A lot of this is because cost cutting was quite effective. Right, but that combo of having marketing and refining along with the upstream bringing out the oil turns out to be something you really gave you a buffer. Thats why exxon and chevron people are very excited. They would have made money were it not for this little oil spill they had about six years ago. Thaer still spending enormous amount of money on. They lost a lot of of lawsuits down there. About 58 billion paid so far. They had a deal with justice and epa turned around and slapped them but theyre still paying out did you get any money . No, i didnt. There were a lot of companies that had like hotels 500 miles away. But this is not your fathers bp anymore. No, its a lean, mean different than it was in 2009. Well, it had a lot of fat. Whats incredible is they really didnt for all the trimming they did, theyre oil still pretty good. So is pioneer, pxd, one of my favorites. Good quarter, undeniable. People come out breathe a sigh of relief a lot of people thought it was going to be a bad quarter. Stay with us on squawk on the street. Were back right after this. Youre watching cnbc s