March. Last trading day of the month, a lot o data, more fed comments ahead of the jobs report on friday. At viacom the drama continues. The current board, well, its not going to go quietly vowing to dig in. And this is whats amazing, fight its Controlling Shareholders hold over the company. And a new name at the top, debt on the highest paid ceos and why the pay isnt moving the direction you may think. First up we head into the final trading session of may. The nasdaq leading the month more than 3 . If the gains hold this will be the fourth year stocks have major averages have gone positive for may. No selling and going away necessarily. Mike, your point this morning is stocks have been able to rally in an environment where a rate hike looked more and more likely. Exactly. Although its hard to say if the market is fully kind of digested that idea that were going june, july. But todays personal spending number kicks you in that direction again. Been a strain in the market for well over a year. Well see if theres really enough Energy Behind this move. Meanwhile, is the debate about june or july . Is it binary, neither . Well, the market kind of getting to july and the way the fed fuds futures work, this is when the rate hike will have happened by. So by july is seeming bit of 50 50. And its interesting the fed has steered things that way even though the brexit polling or betting odds are down to Something Like 20 . So maybe thats not really this kind of out of left field risk the fed has to incorporate into Decision Making on june. Of course its light volume, monday, thursday and friday of last week three of the lightest four days of the year. Does that say anything . Summer seems to start earlier every i dont know that it says anything. We obviously are kind of l levitating. Flows are coming out of equity funds and mindful of that idea 2100. This has been an area where youve paused at least for a better part of a year and a half. Meanwhile ward mccarthy joins us, talk some markets, see where were going to wind up later in june. Ward, good morning to you. Good morning. Bullard thinks were ready for this. So with spending today do you think we are . Oh, i think were ready for this. I think the fed has been as specific as they could be. And at this point i think the burden of proof is heavily for something significant to happen to keep the fed raising rates on june 15th. And as you pointed out, it doesnt look like brexit is going to be a major concern. So i think that, again, unless something falls out of the sky, the fed will raise rates for the second time this cycle in the middle of this month. Why would you though is it worth the risk stepping in front of brexit by just eight days . Well, whats the risk . Brek it does not have a direct effect on the u. S. To the extend there is a surprise with brexit, it will have an effect on Global Markets. So from the feds standpoint i would think that as long as the Global Markets are calm, which they are. And the u. S. Seems ready for another rate hike, that the fed should get it out of the way before the vote because the feds not going to have any effect on the brexit vote. Ward, you know, at this point ahead of the december fed meeting the markets had pretty much figured out were probably going to go in december, maybe more so they now think june is a likelihood and yet you did see the disorderly market response. Is that just because of other circumstances going on in december, because the dollar really took flight . What are the things we should look for to test the idea that this market is ready . Well, if you go back to december, the market actually handled the liftoff in a fairly orderly way. It was events that took place in january that did cause significant disruption. But i dont think we can lay that at the feet of the fed. So i think that, you know, to oversimplify things, we just really need to watch the equity markets and the vix specifically. And also watch the dollar. You know, if the equity markets were to begin to become unglued again and you got a rocket ship on the dollar, i think that could cause the fed to delay a rate hike from the middle of june until july. But theyve sent a pretty significant message to us that they do want to get this done. Jim paulson joins us on the phone this morning. Chief investment strategist at Wells Capital management. Jim, good to talk to you again. Good morning, carl. Just hop in this discussion here, we have a lot to get to during the course of the week, pmis, auto sales and jobs, is there still enough runway here where if the disappointment is great enough we go into this june meeting saying its actually not that likely . I think its possible. I think the key is probably the jobs report, carl, but theres been a fair amount of pretty good data here including this morning spending report, atlanta fed numbers up to almost 3 , i think theres pretty growing odds they may go in june. And if they dont, theyll probably go in july. We didnt think yellen was going to give us much, jim, on friday. She actually trotted out some interesting talking points. Of course shes going to talk in philly on the 6th. Would you expect her to have material comments that close to the meeting . I dont think so. I think shell probably now start to stay away from that with the meeting so close. But you know, carl, i think the key issue here for the stock market is why the fed would lift rates. If theyre going to lift rates because their view of the economy is improving, i think that will lead to greater confidence among investors and private economic players throughout the economy. And i actually think it will be a healthy development. If we get to a point where the fed has to lift rates because core inflation and wages are accelerating too fast, that could be a very damaging event for the Financial Markets. But what were talking about here is the feds showing some confidence in the economy, which i think weve needed for some time. And i think its going to turn out to be a positive. Jim, just to maybe build on that point, the fed is expressing confidence in the real economy at a time when profits are still projected to decline in the Current Quarter and, you know, stock valuations are certainly at the upper end of their range. So do we have the same kind of fix that we were in several months ago where it seemed like the economy was ready but the Financial Markets have really kind of, you know, been in a more uncomfortable place for what the fed wants to do . I dont think so. You know, i think were getting in a better place here. I think the big thing too this changes a lot that the inflationary end of this story has ended and we now have a reinflation story going on in commodities, not just energy but more broadly. We also have increasing evidence of manufacturing sort of stabilizing its resolve. I think its becoming clear and clear to most on wall street that we just passed the worst earning season for this year and earnings will probably pick up as we go forward. I see more evidence with economic price indices have picked up Global Growth not just in the united states. And i like pessimism almost as high as if it would be if we were at the low levels of the year. I think thats a powerful combination that didnt exist earlier that does now. Hey, ward, with all of this as a backdrop then, are financials just a layup . Because theres an ongoing debate about the steepness of the yield curve, the degree to which these banks need to see a trend of rate hikes, not just one in order to benefit. Well, i think this should be a pretty Good Environment for financials. It will be helpful if the fed does raise rates again soon, which i think will happen. I dont think there is such a thing as a layup as far as the Financial Markets are concerned. The performance from individual institutions of course can vary quite significantly. But i agree, the u. S. Economy had a bad First Quarter. Were off to a really nice start in q2. It looks like if the years going to progress that corporations will have more top line flexibility because we are going to be seeing more inflation generated. So i think, you know, all in all the negativity that we still, you know, see permeate the markets, really is not warranted. Finally, jim, on those worry points, we continue to talk about layoffs in retail, credit delinquencies although low seem to be at least flattening or getting ticking up a little bit. Are any of those major in your mind . Not so much. I look at the Consumer Sector and the trifecta thats going right now 3. 25 mortgage rate, 2 gas here in minnesota and almost 2 job creation, i dont know thats a trifecta the household sector has and maybe ever had. I think it reflects the fact that their balance sheets, Household Net Worth 25 above Service Ratios record low, Savings Rates have been positive. I think the household sector in some regard is in better shape today, carl, than its been at in any point in this recovery. The recovery seven years old but the debt cycle like some majors, like credit card usage is only about two years old. So i think the risk of recession is still pretty low. And as a result of that if were going to have a recovery last for several more years, i think youve got to stay a bull. Jim ward, a lot to get to in the shortterm at least this week, thanks, guys. Jim paulson at Wells Capital management and ward mccarthy. The drama at viacom continues over the weekend. The companys six independent directors say they plan to contest any attempt to oust them from the board. They dont believe Sumner Redstone is mentally competent to act of his own free will. The letter, which was sent by or released by the lead director comes three days after a statement from redstone issued through his spokesman saying he was considering ousted viacom ceo Philippe Dauman and the board. Make every decision with the same deliberation consideration with which remove mr. Dauman and George Abrams as trustees. That was of course on friday. May recall it was last tuesday we first reported many of the members of the board of directors of viacom were awaiting the likelihood that they would in fact be replaced by mr. Redstone, the companys Controlling Shareholder. It did not happen on friday. It did not happen this weekend. And in speaking to some people close to the situation, they say perhaps at this point Shari Redstone, because they believe of course she is in control, if you will, of mr. Redstone, has not quite figured out what the plan will be. But well see, it could come at any moment today, tomorrow, but this board of directors really setting up something thats somewhat unprecedent in corporate governance. The letter says we face a key question, should we acquiesce in or contest a removal attempt, k w but he goes onto say to a person we feel the responsibility to challenging what we honestly believe would be legally flawed removals because they dont believe mr. Redstone is acting of his own free will. Well see at this point what actually transpires. The expectation is still that those directors will be removed, that a new board will be put in place and that new management will follow, of course, the new board as well. And that will have Significant Impact on viacom, which by the way continues to try to negotiate a deal in which it will sell a significant Minority Stake in paramount conceivably to bayer in most likely in china. In fact, in the letter he spends a good deal of time talking about the consideration of that minority investment in paramount, that they hope they will be able to actually complete. And they hope the fight over control doesnt impair their ability to completely undermine that. Mike, given how long ive been following deals, if youre the chinese buyer and im viacom and im negotiating with you, i have a hard time imagining youre not going to say, well, wait a second, how am i going to do a deal with you when in a months time i have no idea if managements going to be in place . Exactly. First of all, its interesting to me that there seems to be this great value assigned to a Minority Stake in a studio within another company. That being the case this only has to say, you know, why are we you know, what terms are we negotiating. And actually, what, david, do you think is the end game here . Lets say whats the presumed end game from the Shari Redstone point of view removing these directors and kind of reestablishing control over viacom. And then what with regard to cbs . Thats a great question. Some people speculate the end game would be to try to put cbs and viacom together to finish what you were sort of alluding to, but we dont know. Initially it may simply be to try to restore what she believes is the lost luster at viacom and enhance her own legacy as being somebody able to put a board and a Management Team in place that did so. One final thought from me here, the lead directors here do have a duty to the minority shareholders, but they have the same duty to their Controlling Shareholder. So the idea that theyre going to go to delaware to contest something the Controlling Shareholder conceivably wants, well, were in new territory. Carl, thank you. When we come back latest report card on ceo pay and also ahead the surprise winner of the indy 500 at the big board. Well talk with him after he rings the opening bell. Take another look at the premarket. Dows hanging onto a gain for the month of 99 points trying to post its fourth positive month. Were back in a minute. And can you explain to me why you recommend synthetic over cedar . Super food . Is that a real thing . Its a great school, but is it e right the one for her . Is this really any better than the one you got last year . If we consolidate suppliers whats the savings there . So should we go with the 467 horsepower . Or is a 423 enough . Good question. You ask a lot of good questions. I think we should move you into our new fund. Ok. Sure. But are you asking enough about how your wealth is managed . Wealth management, at charles schwab. Its more than a nits reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. Average pay for executives at the Biggest Companies fell 15 last year, but the gap between their pay and that of the average worker remains very wide. Mary thompsons in new york with details on that. Hey, carl. The declining pay is closely linked to a tepid stock market and fewer really big paychecks at the countrys biggest firms. Over the weekend New York Times and compensation consultant releasing annual look at ceo pay. Its a shifting group, not a static one made up of the 200 highest paid ceos with firms over a billion in revenue filing proxies by april 30th. On average these ceos earned 19. 3 million, a 15 haircut from the 2014 average. Median pay down as well 5. 7 number of executives taking home more than 40 million dropped by half to 8 from 16. In 2014 two executives were paid over 100 million, last year no one hit nine figures. Expedia ceo total pay of 94. 6 million at the top of the list. Expedia stock the best performer of the firms run by the highest paid executives. Cbss total stock return fell 14 last year, Ceo Les Moonves had a 4 pay hike. 42 stock fell and oracles coceo rounding out the top five. Media firm taking six of the top spots, only two had positive stock returns last year. Ceos also continue to make multiples of the average worker while Government Data saw slight increase in wages last year to over 36,800, the average ceo of these 200 firms made 524 times more than that. One last note, if you compare apples to apples, meaning if we keep the group of ceos constant, the top paid ceos in 2015 got a raise with median increase of 5 while the median stock return was up 3 . Carl, back to you. Amazing numbers, mary, thank you very much. Getting some word from carl icahn hes got a new name. Apparently. According to reuters not sure where this is coming from, everybody, but there are a number of headlines saying carl icahn has required a large position in allergan, says he has every confidence in Brent Saunders, the company ceo, ability to enhance value for all allergan shareholders and very supportive of mr. Saunders. You can see the stock reacting in premarket here to that news. Again, mr. Icahn saying these things it is being reported by reuters. Not sure where if it was a oneon interview or something along those lines. Of course allergan shares fallen rather sharply with the deal with pfizer fell apart after those changes in the regulations dealing with tax inversions that were aimed specifically at tanking the deal and succeeded in doing so. There is also been concern at least about the upcoming deal to sell generics business to teva. When will it close, expectation is that will be fairly soon. Theres mr. Icahn, again, his quote saying were very supportive. Oh, he tweeted it. He tweeted it. So thats how carls letting us know about all these things. And its also on his website as well, guys. So at this point of course just saying the right things. Allergan had come back a bit but certainly suffered as a result of that deal falling apart. In fact, many had expected it would be the beneficiary given its still inverted, it still has the ability to acquire other companies and do so perhaps with kind of a ring fenced ability to not have to compete against the likes of other companies that dont have its tax rate. But it suffered a lot when that deal broke. It did. This is a 300 stock in march. T