Switzerland after the Iran Nuclear Talks stretched through the night in a marathon session. Officials say discussions are now focused on whether the u. S. And eu would agree to ease sanctions apart from those of the u. N. In political news indiana lawmakers expected to announce a deal today to alter the religious freedom law. The legislators want to ensure the rules dont discriminate against gays and lesbians. Well have a live report in about 20 minutes. On the economic front, three reports of note weekly jobless claims International Trade and factory orders. In Corporate News micron warning of lower revenue. The chip maker is willing to hold inventories longer in light of weaker customer demand for electronics that uses technology. The wall street journal meanwhile reports that the European Union is preparing to file antitrust charges against google in the next few weeks. Just works too well. The paper says the eu could fine the company up to 10 of its annual revenues and in other news on that company, on google a chinese internet regulator slamming a decision by google to no longer recognize its certificates of trust. That move could deter chrome browser users from accessing sights that are approved by china. This is interesting because u. S. Regulators were looking closely at them for awhile too. They managed to put off u. S. Regulators but sometimes the europeans will come in with a heavy fist. Isnt it weird, the different view of competition and free markets and many times in europe if other companies are put at a disadvantage they look at the employment issues rather than the consumer they look at other company it would be nice if everyone could survive and employees could survive but, you know, it seems like less a view of competition and survival of the fittest but in free markets its other good intentions that probably lead to bad to bad outcomes. Drop the hammer on microsoft, right . Company ended up paying a couple of billion euros a decade ago. Shake down money really a monopoly is created. Youre just there and better than anybody else. I know nothing about how to work this stuff and suddenly im not on google. Im on bing or some other its like where is google. I dont bing anything. If you bing anything it sounds dirty. You know what im saying. I should bing that. You didnt believe it up for debate. We know what youre saying. By the way, no jacket on today. No i would give you a high five. A big hug. Oh yeah. Every time someone talks about real estate i asked about elevators now. I would expect nothingless. That 199 million house theyre not sure that had an elevator. Its just not the same anymore. Does that thing even work. Thats condemned isnt it . Lets check on the markets this morning as we showed you the futures are under a little bit of pressure. Youll see that the dow is down by about 40 points below fair value. S p futures are down by close to 6 points coming after a down day for the markets. Dow was down by 80 points yesterday. The nasdaq was down by about 9 points below fair value. Take a look at whats happening in the early trade in europe at this point. Right now youll see that things have barely budged. Cac and ftse is slightly positive and joe as you mentioned, were still watching. Still under 800, right . It is. The nikkei closed up by 1. 5 . The hang sang and shanghai were both higher as well and take a look at oil prices. Right now wti is back close to 50. Its down about 40 cents this morning sitting at 49. 69 and the bond market it looks like right now the ten year all the way down at 1. 845 . Keep getting pressured. You can see that in the currency market the dollar is down against both the euro and the yen. The euro is trading at 108. 25. Dollar yen at 11957 and gold prices down by about 5 but still above 1,200. 1,203 an ounce. They have to love that. Theyre talking about raising rates. They know whats going to happen. Yeah but they have time. Yeah. And, you know corporations and trade should not do april fools jokes. No. Especially with the area and those people for one thing, no one ever went broke underestimating what is going to happen at times. People are going to take whatever you say. Just believe me i know. Believe me i know. But if tesla, anything that even could be disconstrued as a new model those people with the stock what happens the people that actually traded on that. The people that bought in. Its not funny. No. The algorithms that traded on that. Yeah. But if you lost money on that trade can you go back after them . Is there liability for that . I dont know. I dont know. I know its just a joke but somebody lost money on it. They did. Lets talk to market which is are likely to be in wait and see mode ahead of tomorrows jobs report. I think thats why the ten year is where it is because of the adp number yesterday and the series of numbers that we had that have us questioning how strong things are. Joining us is peter, the chief market analyst at the Lindsey Group and his appearances are directly proportional as it starts to look like he might be right about things. The market seems stalled at this point. Is there is a tantrum based on as we head into june you wonder what these guy dos if the market doesnt continue to have this indigestion. Why did it go down yesterday . Figure that out once again . It has to do with this quandry were in right now. Slow economy but the fed should be compelled to raise. Right. Over the last couple of years we had a soso economy. But the market stayed up because of the easy fed investors making decisions based on what the fed did rather than what the fundamentals were. Now were in a situation where the economy is still around the 2, 2. 5 but the earnings situation changed. Investors go one day the fed is easy im going to buy stocks but the next day say the earnings situation is changing Earnings Growth is slowing. Im going to focus more on the earnings situation. Thats why were churning here. Its back to where it was last june. The s p 500 is back to where it was last november. So were just churning here in this range until we get a sense of what the fed is going to do and the change in the earnings outlet. Its pretty much stalled out. We have to see if thats temporary or not. Thats a big group. Hi everybody. What i did wonder yesterday is we had some expectations when we got the lousy jobs report the adp numbers that were weaker than expected some people thought maybe the market will see this as good news because it gives the fed cover. The good news is they didnt see it that way. They traded lower on bad economic news. Theres only so many times we can celebrate immediatet. Theres three major supports over the last couple of years. Qe zero rates and great earnings story. Qe is over and earnings story has changed and are we going to continue to rely on the Interest Rates. Were hoping the economy will rebound as it did last year but what if it doesnt and what if were stalled out here . What is the fed going to do. We should rebound many q2. Im expecting it. Markets barely off the highs. Exactly. Because were going back and forth between relying on the pedestrian to backstop us and the other hand ending with Earnings Growth slowing. If you dont have multiple expansion, sometimes it happens but a lot of times if youre at 18 you might stay at 18 and if earnings arent going up 6 or 7 you would get the 6 or 7 in the market but i dont know if the market looks and says over im backing out this. It would have been this. I dont know if the market backs out. Well thats just the oil sector thats weak because of that. They look right at what the earnings are and you put 18 on flat earnings from a year ago. Why would you go up if youre going to put the same multiple on earnings that dont rise. Paying 17 or 18 times earnings. What happened if people say Earnings Growth is zero. Why do i want to pay 17 or 18 times . All of a sudden you paid 14 times lets just say, 118 earnings thats season s p of 16. 50. Thats less than 1800 so the multiple that people want to pay is going to be an important driver of stocks this year and why should i pay 17 or 18 times earnings for a different earnings story and qe. This is pretty much what sam zell told you guys yesterday, right . Between the economy and the stock market. I love him but i said its been at least a year hes been singing this tune. It might have been longer than that. Hes a real estate guy. Hes been singing this tune for awhile. I know. He did say that. I have been worried of the bubble blowing that the fed has done and then when that goes away thats a support. So i have been more focused on overseas markets that i think have better value. I think the u. S. Market is expensive but it can stay expensive for a period of time. You think theres a day of reckoning did the fed do damage with what it did . Or is it just that when it goes away we wont have the positive effect of it . Is there something we get from this . I think they have done damage to the whole free market economy and the cost of money is the most important price. Maybe thats why we have only been growing at 2 for the five or six years but is there something looming where theres been a bubble formed by a, you know capital going where it shouldnt have gone . Well the bubble predom nanltlynanlt inatley is in the bubble. It fell 50 . Actually fell more than house prices fell. So just Collateral Damage the stock market would obviously get effected if the bond markets bubble sort of deflates. So the economy would be growing more than 2 or 2. 5 or whatever it is today if the fed had gotten out earlier . I think it would have created more do you believe that . Yeah, there are people that do. They both believe i dont know both sides argue counterfactuals. A corporation is not more interested in buying back stock. Theyre more interested in growing the economy. Exactly. Instead of doing m and a or buy backs or Financial Engineering you invest in plant equipment and people in the longterm and it says zero Interest Rates. Thats going to be a question for the ages. With Interest Rates so low it seems like it would be smart. If you have an opportunity to invest in a factor our actual assets that you can buy. Chicken and egg thing. Only do that if theres demand. Savings rate is at 5. 8 . Its a multiyear high. Are people saving more because theyre not getting Interest Income and they know they have to save more. Theres about 8 trillion of savings out there that if the feds funds rate was 1 thats an extra 80 billion in peoples pockets. Right. They would be earning yeah, all of these things. Thank you. Thank you. Appreciate it. Mcdonalds announcing it will raise the minimum wage for u. S. Workers joining other Companies Including target t. J. Maxx and the gap. Critics say that most of the workers wont benefit because franchisees make their own wage decisions. Kate rogers joining us with more on this. Good morning. Good morning to you becky. Thats right. Roughly 90,000 mcdonalds workers around the country are going to be getting a raise that the fast food giant announced yesterday will be hiking wages in its Corporate Owned Stores by more than 10 . Heres how it works. Come july theyll be paying is over the local legal minimum wage and by 2016 the average hourly raise will be higher than 10 an hour. Thats significant but the catch with the mcdonalds wage hike it only applies to Corporate Owned Stores and not to franchise location which is account for more than 90 of their 14,000 Stores Across the country. Theyll still set their own wages. The new president and ceo defended the move yesterday in the Chicago Tribune saying this is an initial step for our u. S. Business. I understand that some may believe it doesnt two far enough. We remain committed to reviewing the total employment experience we offer our peel. Mcdonalds faced mounting criticism over working conditions and what some are calling wage violations. They have been the target of the fast food strikes that swept the nation since 2012. Those strikes will resume on april 15th and in select cities today in response to mcdonalds move. Kate thank you. We have that to look forward to. Coming up can apple be preparing for another big buy back . The opinion from the streets, next. Then new data on the best and worst performing hedge funds this year. Well name winners and the losers and then later mike jackson drives by to talk car sales. It was a good day to have him on. We have been doing a lot with the auto show. I like cars. Cars are cool. I hope its never against the law to drive a car where you have to always just ride in one. Auto pilot. You wouldnt like that. Stay tuned. Squawk box will be right back. Heres your travellers check. After factoring in hotel, karenal and food costs the most expensive city for Business Travellers is caracas venezuela. Thats according to a recent report from expert market. So how much will one day in venezuelas capital cost . Find out, next. You can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. Back now with todays travellers check. How much will one day in venezuela cost for a Business Traveller . 611 according to expert market. All right. Now that we know that welcome back to squawk box. Landmarks are lighting up today for World Autism Awareness Day and were wearing i put it up here, that was just too much i think. But there it is. Okay. I have a pocket and i have a magnet on mine. I tried it on this tie too but that didnt look as good. You didnt have a magnet. So that has tape. I have it. This is amazing, the awareness, its the only time that the un i mean globally bob and susan have been able to really raise awareness. We watched it on the Network Later this morning. Bob was our old boss and we knew susan well but we knew them for a long time and watch this grow into an incredible organization. Great research and great people involved with it doing a lot of good work. Still to this day i dont think people understand, for example, new jersey, i think its one out of 50 boys are on the spectrum in some way and you dont know whether its increasing or whether diagnosis is just Getting Better or exactly what is happening but its literally an epidemic and it effects them. I dont know if theres anything more identifiable than this. Well be in blue. Blue goes good with that because wow that is orange and then the blue. You did and it does. All right. After a backlash from companies and others indiana lawmakers are expected to announce a deal today to alter that states controversial religious freedom law. Jay grey joins us this morning from indianapolis. Good morning. Goorkd morning guys. Lawmakers worked into the night rewriting portions of the legislation and trying to come up with a compromise before this weekend weekend. Time is running out for lawmakers trying to rewrite the law before easter break on friday and the final four that tips off this weekend. We have to bring this to a close in a positive way reassuring everyone that indiana does not discriminate. We are arkansas. The clock is ticking in arkansas as well where wednesday governor hutchinson refused to sign a similar measure urging lawmakers to rework parts of the bill to assure Business Owners cant deny services to gays and lesbians by citing religious believes. My decision is clear. I have asked them to remedy it and change the current law and recall it and change the language on it. Opponents say its a start. To me its a huge glimmer of hope that things might start to change here. But others want the governor to go one step further. He needs to veto it out right. Theres nothing else to say about that. Though clearly many still have something to say about the issue. To each his own. I think that governor hutchinson should veto it. And the on going debate. The debate could continue as well. Nevada lawmakers expected to move on a religious freedom measure there. Back to you. Thank you. Again jay grey from nbc news. Its been a hopping issue. And very rapid ramp up. Its been bizarre to watch. I dont know if you want to weigh in on this at this point. Its how rapidly things have changed. What got me was the there is almost like like surprise from pence. Theres nothing to see here. What are you talking yeah theres a big burden in court to prove that you are allowed to discriminate. It would take a long time and it would be hard to prove but it totally opens up the door for discrimination and the thing that gets me is religion is great. Live your life the way you want. Dont sin. But dont sin in judgment of other people. If you think someone couldnt you essentially say im not serving christian. Im muslim. Couldnt you do Something Like that if you wanted to. Thats the thing about this nation is no matter your believes or your background this has been a massive melting pot and we all get along together and we all coexist and respect each other. But as we said a million times, look you believe in conventional marriage thats great. Then dont marry someone of the same sex but you dont need to look around watching to see other people sinning and somehow decide that youre in a position to judge them. Or your idea. Your idea of sinning but watching it play out. Youre just thinking do i buy or sell apple at these levels for your fast money show or whatever. Youre thinking im going to get in trouble with something. No not at all. But what was bizarre was watching these guys go thats the thing. There should be zero tolerance for any type of discrimination and its as plain as the egg on their face that this opens the door to some discrimination. People are often critical of the media in instances like this but without the power of the media and Corporate America speaking out publicly and saying this is ridiculous, you know it and we know it i dont know that this would have happened as fast as it did in terms of getting these people to come back and say well make changes to the law. Ge apple, walmart, others speaking out as well as the media pressure has made a difference. I think the corporate pressure has probably been more important because when you start thinking about the idea of losing jobs and losing economic expansion in your state or having Companies Pull out of your state as a result that gets peoples attention. No doubt. You can have the final four in indianapolis this weekend. The sports landscape helped move this debate as well by having a major sporting event in a state where the epicenter of this was. A state that hosted the super bowl and number of other major events as well and thinking about its future as a host for those sorts of events. Just to talk about what this actually is the right and the Republican Party is still locked in a battle with who they want to represent and you know where i stand on most fiscal issues but you go in and theres a lot of these candidates towing the line right now. They dont want to alienate the religious right. Bush has even come out. But hes tempered his comments on this but they thought this might be a way of panderring a little bit to the religious right but pretending nothing is really happening to you know but you wonder why speaking in code. It is. Speaking in code. And you look at what happened in the last election. There were single issue voters gay and lesbian voters that may have wanted to vote for a free Market Private sector and couldnt. Come into the 21st century. Despite the fact that the laws or bills are going to be amended before theyre actual laws this issue isnt going to go away. As you get closer to the real election cycle and you Start Talking about debates and things where people are going to have to speak on their real opinions on real issues youll continue to hear it. There are big blow hards on the right and you will watch, they may ive seen them so im not going to mention any names, but the only time that i get on this show is when i become a poster child for the liberal left. Never when im on the other side do you ever hear anything. But ill be on every day for being a communist. Youre just in shock. You dont know what to say. You want to buy, sell or hold on apple. But as cook pointed out you follow the dollars. It makes Good Business cents to serve everybody. You want to bring dollars in the door so you can buy back stock. So the reality is thats how business runs. You dont have to make a moral decision. You can go back to where the money is. In my defense, he brought that up. I think a lot of businesses realized that. Some of the big Beer Companies had a commercial with two guys and they said hey we have to serve everybody. Thats how you make money in this country. When i saw ge i dont want to take the cynical view that oh they had to say this because they want to make sure that they appeal to everyone with the products. They do it because its the right thing to do. But everything is the almighty dollar. No but scotts right corporations pushed this situation and brought it to the forefront so quickly. It was a big ground well everywhere. But the economic pressures having corporations say were not going to do business there that changes the whole story. Thats probably not something that would happen that rapidly. Sure well pence playing the media like i said without the media raising the issue to the level that it got and helping push forth this conversation, i dont think anything would have happened as quickly as it did. What . My son said something. I dont know where any of this is coming from. But i guess if you think theres something going on here. Dan why dont you talk about why we brought you in. Dan is a principle at Hudson Square research and were watching buy back season. Theres a black out period right now where corporations are not going to talk about buy backs. This could be a good time for investors to jump in because while you have the silence period youre not going to know whether companies will do it stocks may trade down. One of the ones were watching is apple because it is the biggest buy back in terms of dollars. 57 billion in term of all the companies out there. Do you think apple is going to continue its corporate buy backs and its dividends at this point . Do you expect any change in policy . Theyll bring it up a little bit. They spent 57 billion total. So theres no company on an absolute level that spends that much but at the end of the day, tech is about growth. If they were just doing the buy backs and werent growing earnings then the stock wouldnt be up. Only yielding 1. 5 . This is not a major yield. Its like should i buy the stock in you buy apple stock because you think for the next 5, 10 20 years theyre going to continue doing innovating and growing top line and bottom line like they have the last 15 or 20 and all the signs are there that they are doing that. Last quarter, they grew revenues 32 year over year. This is not a tiny little company. Revenues are 75 billion. Revenues up 19 billion year on year. Thats up in one quarter. Facebook, which everyone loves, all right . Trades at whatever, 50 times earnings has grew. Their entire revenue was 12 billion last year. So apples growth in one quarter is 50 higher than facebook in one year. They were killing it. If they werent doing that the buy backs wouldnt matter. They the stock wouldnt be up 30 if we didnt have that growth. Obviously were watching whats going to happen with the watch in a couple of weeks. Earnings will couple out a few days after the watch is launched. Thats also what i call it playing checkers versus chess with apple. The quarterback the big iphone quarter they had will be down. Guidance was the june quarter and probably wont be as good as people want because the watch will be constrained at some level. Would you tell people to wait and buy the stock then . On the checkers level with apple its hard to say if you dont own it today buy new shares of apple but i think if you own it you continue to own it. If theres a pull back in the Market Action you know theres an opportunity. This is a longterm growth story that does everything right so far. Theres a pull pack in the market and this stock has a potential of being one of the primary sources of funds within the pull back. Im watching very closely because youve been on and youre unequivocal that it has the potential to go to 1. 5 trillion some day i guess. The law of large numbers i think takes over. But well see. It was at 780. Its about 730 billion. Well see. 23. Youre bullish. I dont know. Theres a lot of things that have to go right. Do you think you can do numbers like that quarter after quarter. No. Thats my point is that the december quarter there will be a slow down. If you want to trade around it on the fast money show youll probably have a bit of a slow down. The companies become more and more weighted. Not just to the iphones but to when the iphone launches so you have these quarters right around that so June September will be slow and then well have the 6s which wont be as big in terms of the 6 and everyone will ring their hands and say this about whether theyre done but reality is this is a great company. You say whatever 700 billion, they are at 14. 6 times earnings. The market is almost 18 times earnings. So its still a discount to the market. So the reality is that the market does pull back youll see more of that at the really high multiple names, the twitters and the facebooks of the world. Youve got to assume theyre going to be the innovator. You have to think that forever they will be the Market Leader because i the world has changed and everybody is going to keep up gadgradeing their phones and theyre going to cost 3 or 400 dhrs so 400 but theres a lot of people taking aim. Every other time any tech company got over 600 billion it attracts so much competition. Maybe it will be apple and worth 3 trillion i dont know. You have to absolutely you know, keep your eye on the ball in tech but what were seeing today is apple continuing to lead and innovate and margins are better. Kids are dying for the watches. Theyll be a huge success. I think theyll be a bigger success than people think. They probably will. Bigger than what the skeptics think but wont be as big as uber bulls. Im bullish on apple but i take myself out of the uber bull category. Whats your number . Thats checkers for the weekend who cares . I think for the calendar year end up around 15 Million Units which is significantly less than the ipad did. But well see. All right. Whats the high end . Wasnt there someone that said a billion or something . The high end is 60. The consensus is 22. 22. Which is more than the ipad did. The ipad was like 19 million in its first calendar year. Thank you for coming in. Thank you. We appreciate it. Good to see you. Coming up chipotle has been a topper forming fast casual chain but one new york start up is trying to beat it at its own game with a little help from social media. They join us to explain. Maybe feed us a little bit straight ahead. But first as we head to break, a look at yesterdays s p 500 winners and losers. In new york state, were reinventing how we do business so businesses can reinvent the world. From pharmaceuticals to 3d prototyping, biotech to clean energy. Whether your business is moving, expanding or just getting started. 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Its been five about years we have been open now. Were putting the foot on the gas. How do you get people to come to your place other than the obvious. Chipotle is the elephant in the room in mexican fast casual. Theyre a great company. They have grown the whole segment and awareness of what this cuisine is and with sourcing too, its fantastic. We rye to follow that same direction with our sustain blt sustainability but were not inspired by chipotle. We grew up in the bay area. Grew up eating Mission Style food. Our burritos are more legit. What does that mean anyway . Whats differ . Our flavors are warmer. We steam our cheese right on to the tortilla which is an important difference. Our rice is the most difficult recipe. We make a beautiful mexican fluffed out red rice. I think its their easiest recipe. So its the Little Details that makes our burritos warmer and tastier. Whats a typical meal cost . About 10. We actually subsidize our guacamole. I recommend that too. To be mainstream and hugely in the u. S. Do you serve what americans think mexican food is or do you serve Authentic Mexican food . It gets you into trouble because the burrito is not authentic to mexico. I dont think the dorito at at taco bell is either. What do you think . Do you just have offshoots that are inspired by mexican food or try to go for the real. Mexican food is incredibly region mall. Where we grew up really the burrito is king. Where you move down in the southwest its more about kind of plates and i true what we grew up with. Its california. But were not trying to reinvent that meal. I think its different in cities versus other parts of the country too. You dont do tacos as much as burritos. We do. You do them well. Encihladas. Burritos tacos quesadillas. No double decker tacos. You had a couple of lines already. Base player for third eye blind. Huge song. Three or four mega hits right . Jumper. Jumper. And dont graduate. Yeah. Amazing. So how do you how do you get from there to here. I dont know how that happened. Were you singing back up or just playing bass. I was just happy to be there. I got the great gig as the touring guy. Are they still together . They are. Doing great. They have a different bass player. They do. Was this always the real passion . Music first . This . Was this always in the back. Going from being a mediocre musician to being an amateur musician. We were loving burritos before playing music and we do this now. We talked about this ten years before we started it. Were so passionate about this food. We werent the only ones with this idea. A lot of our friends would come in and say you stole my idea. Let me get a chicken burrito. Whats the plan . How big do you guys get. Funding is important. The most important thing is the team. Do we have the right team and right places to get to where wed like to be . We want to have controlled expansion. Aggressive but controls and as long as we have great people in the right places we can do that i think. Food is all operations. Its just hard to make food in a great way and then give Great Service day after day. We have the best team in the business and we think we can grow organically. In and out is like a hero chain of ours. Cut classic. They have grown large. There cant be too many mexican food restaurants for me. Starbucks is good shoot for like one on every corner. Seriously and i said the worst mexican food is great. I wasnt saying this was the worst but literally ill eat any. This is is great. Avocados win every time. Yes. Coming up thanks, guys. All right. From third point to person square we have a roundup of how the worlds bestknown hedge funds ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. 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Only new york offers you zero taxes for 10 years with startup ny business incubators that Partner Companies with universities, and Venture Capital funding for high growth industries. See how new york can grow your business and create jobs. Visit ny. Gov business. All right. Welcome back. Having some chips and guac of course. Feel free to dig in. Maybe after. Your score card with the best and worst performing hedge funds. Thank you very much. Its been a mixed quarter so far with final results still trickling in. Point72 headed by steve cohen and a new it ration of the infamous s. A. C. Capital is one of the outperformers. On assets of 11 billion. That of course comes a year after s. A. C. Returned its money and became private after a series of Insider Trading cases and settlement. Dan loeb who runs the larger hedge fund as of last year is now on solid if not wow territory with returns of 3. 3 in his offshore fund as of quarter end. And lee ainslie and bill ackman with returns of roughly 6 and 5 respectively as of late march appear poised to do even better. As do a handful of commodity funds. Which called the downturn in Oil Last Year and was headed for double digits returns. Had less of a good quarter, a 22 set back in the chip maker Micron Technology where he bet big about a year and a half ago. Helped send him 1. 8 into the quarter. Mike had an earnings beat yesterday. If things turn around it could prove to be a better march for him. Meanwhile, well see how everyone else is doing. It seems to be a quarter of divergence but stock picking seems to be a key issue for the first time in awhile. To your point, the environment is improving for these kind of investors. Right. I would agree. I think youre seeing, like i said, a real divergence in stock performance. Its not just a unilateral bull run were dealing with. In fact, people have talked to me about how one successful wave is fading to contrarian trading over shortterm periods in the market when youre dealing with names. Maybe even the spy, for example, that are volatile but in a certain range. So stock picking, fading short sellers, they have life again. Yes, they absolutely do. Thanks kate. Good to see you. When we come back this morning, a mixed march for automakers. Gm fell short. We will talk to autonation ceo mike jackson about sales at his dealerships. Check out on the cars on the lot right outside. Stick around. Squawk will be right back. Jobs countdown is on but the economy is sending mixed signals. Well get another piece of the puz wlzle with the challenger on the layoffs. Squawk box goes behind the wheel. And audi is bringing us the keys. And theres no midas touch for activist investors. We will gut check the track records of some of the biggest activist funds. The biggest hour of squawk box begins right now. Live from the beating heart of business, new york city, this is squawk box. Welcome back to squawk box, everybody. This is cnbc first in business worldwide. Im becky quick along with joe kernen and scott wapner. Andrew is off this week after a down day yesterday we were continuing that trend this morning. S p futures off by 4. 5 and the nasdaq down by just over 5 points. Among our top stories today, another day, another extension for Nuclear Talks with iran. Diplomats say prospects for an agreement were finally balanced between success and collapse. Greece has sent an updated list of reforms to lenders in an effort to secure Financial Aid and avoid default. The country is weeks away from running out of cash. Lenders from the eurozone and imf have frozen support payments until the country implements reforms. And trouble brewing for google. The European Union is preparing to file against the giant in the next few weeks. The paper says google could face a fine of more than 6 billion. Whose anchor. Could be anybody. Jump in folks. Were just a day away from the march jobs report and signals in the economy are mixed. Steve leisman joins us now with more. These signals are mixed, im told. Theyre a little mixed. I just read that. Theyre not as mixed as that would have really . Look ill read this thing. Adp was lousy yesterday. The tone has been very weak. Not uniformly. There have been a few bright spots. One of those came yesterday with new vehicle sales topping 17 million for the First Time Since november. Almost certainly mike jackson arranged for that to happen on the day he was going to visit squawk box. Oregon otherwise he might not have come. Had something to do with the recent growth slowdown Consumer Sentiment in march. Those are the exceptions. Heres the list of the rough patch weve been through. Most of the fed Manufacturing Service in march have been lousy. Personal spending was down. Becky mentioned adp, Capital Spending. Those were all weak. This does not seem to be a repeat of the lousy First Quarter from last year with the strong snapback. Theres more going on here with the impact of the strong dollar hurting exports. The negative part of the Oil Price Decline showing nup the economy and having to wait for the positive part which economists says comes later. At 1. 3 we havent gone negative on gdp tracking. Some economists already at zero. We still dont have the march data yet. So theres a ways to go. Whats your gut tell you . I think this is not a repeat. Last quarter last year First Quarter, we still really havent explained. Mostly weather didnt make a whole lot of sense. I think the First Quarter we talked about a couple weeks ago is almost always a weak quarter. You had two shocks to the economy. The strong dollar and lower oil prices. And even if the shock is beneficial, it takes time for an economy to adjust. I think were a little bit unbalanced here but i think ultimately by the time the summer comes around things will straighten out. But steve, to say every First Quarter is weak its a problem. Its inexplicable. Drew madison followed up and did additional work on the stuff i did. He found that since 1988 the First Quarter has been the weakest quarter of the year. But you cant blame it on bad weather year over year. What it looks to be is the way the government counts Capital Spending by business. They dont seem to have that. But thats one thing. Its all the other data thats out, that was lousy. How do you account for the fact that Consumer Sentiment is good. The reads have been pretty good but it hasnt spilled through to retail sales which have underperformed expectations . First of all, theres more spending than in goods. And auto sales. And you had a little pickup in auto sales. I think people are not ready to spend this new money in their pocket. We know theres new money in their pocket because we know theres more jobs out there and we know oil prices are lower. And people you cannot sit here and say i know what the right savings rate is for you. You said a shock to the economy, we had oil prices as a shock to the economy. People might be shocked that oil prices were cut in half but its not in a negative way not to Oil Companies and the earnings impact. Two factories and one sells oil and one sells sweaters. Okay. Oil price declines and he gets less revenue so the consumer has more money to buy sweaters. But the sweater guy doesnt have more capacity yet. He hasnt increased his capacity to make sweaters and to sell them. The refiners do better. Thats right. But ultimately you have a negative in the oil patch. You see that in the survey. I think youre going to see some other data about jobs that show losses in the oil patch. But you dont have the hiring yet. It takes time to adjust. Its a shock and a shock is a neutral comment in the sense it can be positive or negative. Heres what makes no sense. You go from zero in the First Quarter to plus five in the Second Quarter. Its crazy, mike. Its tough to run a business. Okay. Thats so gross. Youre sick. Youre mike jackson. Ive got to introduce you. This does say joe. Mixed results for high auto sales. Gm and ford both dipped. Same story for asian automakers. Honda and nissan fell. And mike jackson is ceo of autonation. Youre going to give us your results . We are. Right now . And first, steve, i want to say im not here because the industry sold 17 million. I was here in 08 when the industry was down to 10 million. Im here in good times and bad times. I always show up. He is. He is consistent. Because he pushes gas taxes both when oils at 100 or at 40. Either way you do. Dl you go. Are you going to do that again today . I dont want you to. I like you. I heard you one day when i wasnt on the show almost my very words came out of your mouth. I would never do it when you were on the show. No. Thats asking too much. But i watch. Autonation sales were excellent. 30,000 units. Thats plus 5 if you adjust it for the number of selling days. Becky, that you talked about yesterday, its plus 12 . And our premium luxury business was extraordinary. The truck business is great. If you say lets move for the First Quarter, were plus ten. It was a good month for the industry. The selling rate was versus 16. 5 last year. So a significant increase. But all the headline is aels were flat because of the number of selling days. You said luxury and trucks were strong for you. Thats what we saw for the industry as a whole. If you look for the industry all the increase is in trucks. And this is still with the number one selling vehicle of the last five years in changeover. We have enough now that i can tell you the customer acceptance of the f150 is off the charts. They come in and they go out. And its very interesting what their number one factor is they like about this new truck. By taking out the weight its significantly improved the driving dynamics of the truck. Did that just whistle by my head . Yeah. With the lighter weight and change the suspension setting that up. Its actually enjoyable to drive. What do you give up . That sounds like a positive that nobody expected. You actually you give up the fact that you have a major production disruption. Because the plants first started closing last august and we will not be at full production with both plants until april, may. We will not have full availability until this summer. So it was a massive changeover in production technique. But what you got for it was better driving dynamics, with improved fuel economy, improved tow capacity improved weight to take on. Is there a wait to get these vehicles . Yeah. We have far more demand than supply. How long do you have to wait . Well for a specific truck for the number of people if youre flexible on what youll take, well have something now. Sure. But if i want a specific model. Its going to be a couple months. You talk about what youre hearing from business. It was not. Fleet business was good in the First Quarter for the industry. You know its a big part of the economy. Its a big insight to what business is doing and what the consumer thinks. And im here to tell you, you know its was march a turnaround . The industry is plus six for the First Quarter. Lets forget all the ups and downs. Its plus six. Which is exactly what we forecasted last july because plus six takes you over to 17 million and here we are with the first month at 17. 1. How do fleet sales . No. Its a small part of the business. As for the industry fleet sales are about 25 of the new vehicle volume. Who would you go for for the fleet snael. The automakers ae then pass it through dealers. Theyre the ones basically negotiating the deal which includes price and who has the residual risk. If there was a way we do a little bit. Okay. Anything. Knowing that is the story of the year is jeep. Jeep is absolutely on fire. Because of the oil prices too . No question its a help. But it was on fire before gas lien gasoline prices dropped. Thats a jeep . The green one. The back of it. They have decided to take the jeep global. And jeep is viewed around the world as an approachable likable, capable vehicle. And his ambition is to sell 2 million of these around the world. I drive a jeep and i dont like the back of that car. Thats is road jeep. They love those little cars in europe, right . If it hits your jeep you think it hit a bug. Whats wrong with selling that to europeans . This doesnt sell here though . Its built in italy. Its also sold here. Price point is around 20,000. Oh, so its like a mini jeep. Look at the back though. It looks like a crossover from the back. Thats built on a car chassis, not a truck chassis, right . So the point is its very capable, four wheel drive. Jeep is going global. And i expect within the fiveyear window theyll be selling 2 million jeeps around the world. Hummer cant go global. I have a commander. Yeah. Shes got a commander. Out of my way. A big jeep. And it got me here this winter. I needed that. Did you have winter here . Ive been down in florida. Its been 75 for six months. Fortunately mikes with us all day. Can you Parallel Park that beast . Yeah. Dont start. Im just trying to get you going. Dont start. What . Tell people about tomorrow. What . Coming into work. Whats the matter with you . Youre not going to leave me here alone, are you . No. Were doing the jobs report. And were testing the new squawk start period. The Pilot Program of a 7 00 a. M. Start. See if that works. Oh, goodness. Ill be here at 6 00 when i come back. Not tomorrow. Mike is with us for the rest of the program. Weve got more to talk about. When we come back the track record for activist does not stand up to the high according to Jeff Sonnenfeld. Then at 7 30 eastern who sings that song . Third eye blind. Let em. We will great breaking news with the challenger jobs report. Plus audi is driving up to the squawk set. Stick around. Squawk box will be right back. Welcome back to squawk box. We are watching shares of lumber liquidaters. After a 60 minutes report on the safety of its flooring the stock dropped. Sales were hurt by those allegations. March sales were down 12. 8 compared to a year ago. How about, First Quarter were up 5. 6 . That was above wall street forecasts. Were certainly going to be watching though shares as you get closer to the trading day and see how the same store Sales Numbers and these comps really move shares. Okay. Scott, thank you. Our next guest just penned a fiery piece in the wall street journal putting activist investors under the microscope and questioning whether they have the midas touch. Joining us is Jeff Sonnenfeld from the yale school of management. Hes also a cnbc contributor. Jeff, its great to see you this morning. Thanks, becky. Good to be up with you this morning. You ran some numbers. What did you find . What we find is despite a lot of the bravado, the energy thats kicked up is that the performance is not that consistent. In fact, people will often do much better putting their money, you know in a vanguard account or something. If you think of the select activist funds and how they did, say, in 2013. They came in at roughly 16 whereas you put in an s p 500, it was twice that at 32 returns. We put that kind of returns in taking a look at just last year theyre up about 4. 9 . Whereas s p is up 3. 7 . Theyre coming in well below where, you know you would have thought they would have come in with the enthusiasm the bravado, the energy the excitement and create a lot of big Media Attention with these wild campaigns and giant releases everywhere. And the blogosphere is filled with this energy. What do they come back with other than tell us to cut costs, cut workers. They should be held to the same accountability that the target firms are under. In fact, frankly, you would do much better investing in many of their target firms than you would be investing in their companies themselves. You know that is an excellent point. On the whole, i agree with you, but youre also looking at years for some of these numbers where you saw just the major stock average indices up pretty sharply. And it can be difficult to compare over a year or two when you have very strong overall years for the market. If you look at longer track records, then what do you find . Well you find that they are varied. And for all the attention that we have at carl icahn who is an impressive investor. Hes done much better than i would ever do. Hes down 7. 2 last year. We hear of course the great picks hes had in netflix and in apple even though apple didnt do fully what he wanted it to. You were talking in the last hour about apples buyback that was only a fraction of what icahn wanted it. He i think he called ate drop in a leaky bucket. Along when others didnt back him. Nonetheless some of those investments turned out okay. But do we ever hear of all of these bankruptcies . Theyre setbacks. And whats a problem, i think, on this is state Pension Fund Managers and others that are pressed for higher returns, when they talk about this equity market youre talking about, they think maybe what we need to do is jump on board with these guys. Often these underresourced folks are jumping on board not realizing theyre not getting the returns the press would lead you to believe because no one is holding them accountable. Theyre not looking back at how theyre doing. Is there a difference between a good activist investor and a bad activist investor . There are some good ones, some bad ones, and some who act a little wild and then come back under control again. There are things that you know that some activists have done that are fantastic. I mean obviously from at least my perspective, i think carl icahn brought accountability to Chesapeake Energy where you had questionable dealings from the leadership on their assets. And every time you sort of needed a gas field, it seemed that somebody in power had already bought that. Jeff i want to interrupt you. Because you went after nelson peltz and tried strong in this piece. They have just released a statement which i want to read on the air live and want to get your reaction to it if i may. This is their statement just crossing. Mr. Sonnenfeld has twisted and cherry picked the data to have an inaccurate picture of trians performance we have 12 billion in assets under management. Our Flagship Fund has generated a 137 return net of fees since inception in 2005. Out pacing the s p 500 by 2900 bips. And if you look at our core positions, we have outperformed the s p 500 by an average of 764 bips annually. That outperformance increases so 879 for companies on which nelson peltz serves on the board. You know i think good for them. Lets just look at the numbers. Last year scott, you know and its good to see you with your jacket off loaded frd bear here. But chime came in at 8. 8 return. The s p was 13. 7. I mean thats just the facts. You want to go back to 2012 . They go but the point is i think nelson is saying you can cherry pick any year that you want but over a longer period of time, the numbers and the performance of the peltzs of the world and the icahns of the world certainly speak for themselves. Dont they . Theyre varied. I think theres some like relational investors, third point. Sand ridge, they do on excellent job and they work constructively with management. They brought critical accountability. Sometimes we see a lot of flambuoance. Theyre underperforming at family dollar, at mondoleze. They were on the board two years and drove it into bankruptcy. A company with heritage going back to 1802. Really critical, successful valuable space. You look at five out of the Eleven Companies in their portfolio are underperforming the s p. Thats got to be out there. Now, talk about selective use of data. That go after dupont or a company like that theyll pick 20 different data points at random times. I think they would say and, look i dont want to be the one speaking for nelson peltz or ed gardner or somebody else it seems you are, yeah. Somebody has to. I dont think they need advocates. They do a great job for themselves. Theyre very effective. They are. But they may say that the recent dupont has done well has little to do with what Ellen Coleman has done but more the fact youve been in an up market and performance should be and could be even better for shareholders. You know when they take into brupgs they say isnt this awful. Other people going into bankruptcy at the same time they look to an unrelated company like General Motors and they dont look at the fact that ford at the same time didnt go into bankruptcy because they didnt have the debt structure gm did which is what they stand for. Which was way too over leveraged a business. You put 100 into dupont when ellen became ceo, that would be worth 240 today. If you put it into s p 500, it would be worth about 200. And if you put it into triian it would be worth 190. Theyre underperforming their own target companies. You can wring your hands different ways. You can stamp and yell. You can threaten. I mean these tv slapdowns, like mark cuban yesterday was fan its a pick. Thats drama on tv thats making a statement that matters. When we came to the defense in exactly this hour yesterday in this crazy s. E. C. Stuff going after her. But whatever it is thats drama where it makes the difference. Where ceos are courageous and speak out. When its just these slapdowns and scott, youve been the best at getting ackman to throw food back at icahn. And we love watching it midday. And especially food fight makes sense at lunchtime. But when its ceos racing around the country, it has a hugely effect why are all of these companies agreeing to do the spinoffs and settling with the activists if it doesnt make sense . Because one after another has fallen into line especially this year. Some of them say dan loeb at third point, has come up with a couple of candidates steve miller being one whos a tough nosed turnaround guy that has joined the board. Andrew livers and dan loeb wisely realized this guy is a fantastic net add to the board. And pepsi, you know, looking at dupont, they put on two tough guys. Which are people that nelson peltz himself wanted for board representation positions and they turned him down. They just put them on the board. But peltz is having this personalized campaign because he himself has to be on the board. I believe they even offered dupont wanted his soninlaw or cio gardner to join the board. No. Its got to be nelson himself. How can you hold a huge company like this a great global icon one of the top two or three integrated Chemical Companies in the world hostage because one guy has to be on the board. Hes not happy with the two people hes pursued himself as representatives and to have his own ceo of soninlaw or whoever he is on the board. Its got to be him . No. When companies have a detente and they work it out, i think what they did, dan loeb of third point coming on at yahoo . Marissa Marissa Marissa meyer would tell you they werent going to retire stake in that company. It was a Successful Exchange for all. Jeff. You look at home depot and hp. A fantastic relationship they had. Very constructive roles. Can i just real quickly. I think a couple of years ago, maybe two years ago Corporation Ceos were really looking at this with trepidation and fear about where the activists were going to go next. How do they feel right now . Is it a position where thee feel overwhelmed or theyll win the upper hand based on some performance numbers . Companies like state street and apple and pepsico and dow and dell these are some of if i didnt mention already apple these are such strong performing companies. This is a huge chain. If we were having this discussion 20 years ago, 25 years ago, wed have many of the same people. They were called sharks raiders, lbo activists and things at that time. And a lot of their practices are hard to do today. But many of these people are the same people recast. Some of them are younger and have different style. The ones were talking about, theyre the exact same people who put on the cloak of Good Governance and use the language of shareholders activists and now theyre restyled. They create a lot of fear as theyre going after great performing companies. Why do you come to terms with them . For the same time would ebay have split off paypal without carl icahn . Would they have split off paypal in the time frame did it in which carl icahn came a into the situation . Would dell shareholders have gotten a few pennies more without the activist coming in and shaking up a bit . That buyback at dell is fantastic for the in the shalds. They did very well. It came in very close, exactly where dells offer was. Carl icahns had to do with whether or not certain votes could be counted. And he came up with no credible offer. Where was his money . You know he couldnt top that offer. That would have been great. But, no we dont see in dell or many of these situations dell is a great example. Heres this company that is operating all around the world. A 50 billion company being held hostage to this situation. Look how well dell is doing now. All i know is i spoke to shareholders at that time who were very happy to have the activist shaking the trees because they wanted more money. They wanted more money and they were in the investment for a long time. As were targeting strong performing companies, this is a big change in what activists used to do. Some today are going after troubled enterprises. Thats where they should put their efforts. Lee grong said they stopped converting because weve got to go. Weve got to go. Weve got to hit the pause button here. Stop button. Thank you. Thanks. Wildman, two bit green mailer a ena pirate thats what these guys are. Coming up the challenger jobs report. Stick around. Eeep breath in. And. Exhale. Aflac and a gentle wavelike motion. Ahhh ahhhhhh. Liberate your spine. Ahhhahhhhhh. Aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just one day. Ahh so he had your back . Yep. In just one day, we approve and pay. One day pay, only from aflac. [duck snoring] e financial noise financial noise financial noise financial noise help brazil reduce its overall reliance on foreign imports with the launch of the countrys largest petrochemical operations. When emerson takes up the challenge its never been done before simply becomes consider it solved. Emerson. trader vo watching. Waiting. For that moment, when right place meets right time. And when i find it, i go for it. announcer vo at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus powerful mobile apps. And now, get up to a twothousanddollar cash bonus when you roll over your 401k or ira accounts. Details at scottrade. Com retire. Welcome back. Were just one day away from the march jobs report. A new survey out this morning shows job cuts are at their lowest level monthly since december. John challenger ceo of Challenger Gray joins us to break down the numbers. Great to talk to you. Good morning. Give us the details. Well we saw 36,594 job cuts in the month. That was down 27. 6 from last month. But it was up 6. 4 from march a year ago. So what were seeing is slightly higher cuts this year. January and february are higher months. Now as we start to move into the spring summer, well probably see the cuts draw back. Higher cuts yes, but more concentrated as well. Correct . Were looking at the as were speaking here were looking at the planned sector cuts. And you see more in the energy patch than in anywhere else. And that would be no surprise. Well no question. 2015 has been dominated by the oil industry. Of the 140,000 job kutss in the First Quarter, about 47,000 were oil related. Particularly in the Energy Industry over 37,000. Were even seeing job cuts in West Virginia in the coal mines. What do you expect tomorrow . Well the labor market is very healthy, continuing to be healthy. We are seeing some changes. The kinds of job cuts right now outside the Energy Industry that are more situational. The most iconic job cut of the month was target retailer hit with a data breach. Just competing in a new market. Felt like it was too top heavy. Needed to be more nimble. Were not seeing job cuts come now from companies. Theyre just doing poorly. Although its interesting to think that the Energy Sector with the pressure pushing prices down may be what leads to job cuts over the next few years as we move closer to the end of the cycle. John well talk to you soon. Thanks for speaking with us this morning. Thank you. Coming up audi will join us just outside the squawk set with an electric offering for the new york autoshow. Plus baseball bloopers. Sfx engine sounds introducing the new canam spyder f3. With a cruising riding position and the most advanced vehicle stability system in the industry. Youll ride with a feeling of complete freedom and confidence. Visit your canam spyder dealer and test drive one today. The new spyder f3. Riding has evolved. In Small Business you have to work hard, know your numbers, and stay focused. I was determined to create new york citys first selfserve frozen yogurt franchise. And now you have 42 locations. The more i put into my business the more i get out of it. Like 5x your rewards when you make select business purchases with your ink plus card from chase. And with ink, i choose how to redeem my points for things like cash or travel. Hows the froyo . Just peachy. Literally. Ink from chase. So you can. Welcome back. Take a look at u. S. Equity futures. The second day of the Second Quarter, well not looking that great. But not too bad. Yesterday was a down day in a month that has been the best in the dow since 1950. But right now implied open down 23 for the dow. Check out this. Spring means baseball. Youve got to love some bloopers. One eager fan took a spill reaching for that foul ball yesterday. Yeah, he fell over. Onto the field. Theres the bow. A nice bow for the fans at the stadium in ft. Myers, florida. He was escorted unfortunately, out of the stadium though. Why . It didnt look like he meant to. I dont think he was running on the field. Maybe he interfered with the ball in play. Poor guy. When we come back this morning, the new York Auto Show is underway and audi is bringing the action straight to us. The electric version on dismay outside of our squawk studio. We will talk to the president of audi of america. At book club they were asking me what youre doing now, janice. Blogging. Your blog is just pictures of you in the mirror. Its called a fashion blog todd. Well, ive been helping people save money with progressives discounts. Flo, can you get janice a job . [ laughs ] you shouldve stuck to softball i was so much better at softball than janice, dad. Wheres your wife, todd . Vacation. Discounts like homeowners multipolicy i got a discount on this ham. Ive got the meat sweats. This is good ham, diane. Paperless discounts give it a rest, flo. All yeah, flo, give it a rest. All right. I hope you appreciate this. Weve been standing on every square inch. This is the best shot you sure . This is it . We finally got it. The new York Auto Show underway and one of the show stoppers this year this electric car right behind us. Its audis version of the a3 etron. Joining us is president of audi of america. This is cool. I had to figure this out. Its a plugin hybrid. So its not like one of the teslas. This will run on a lithium battery, but it also has a regular fuel tank. Exactly right. Has a combustion engine. If you want to get people into electric cars the biggest is range act so it gets rid of all the range anxiety. We know thats definitely something because elon musk is always talking about it. That must be what they hear. You can drive it for 600 miles. Really . We talked about tesla a lot. Loves the car. Loves the car. It has nothing to do really with saving money on gas. People are spending how much is a tesla . Average transaction 110,000. This price point is where people can actually buy the thing, right . Thats what we wanted to do. Price point around 40,000 opposed to being an add to the fleet vehicle. Primary car. Its packaged for every day and drives like an audi. Do you think that there is a big market for this right now mike . The plugin market is definitely where electrics are going to make the most advances. You have to answer this range anxiety issue. Telling you where a charger is isnt going to change. I think plugin hybrids are the way that electrification will take place. Tesla gets tesla would not exist without government subsidies. And they come from the federal government. Were a well scaled well capitalized company. So we know exactly how to make these things and make money with them. So thats what you need to worry about with new models like this. You need to be global and supply whatever the demand is and need to have a footprint around the world. Audi is one of the second largest. I have seen the you know, once in awhile ill get a loner. I drive a porsche. Is it an a6 or a7 ill get. Phenomenal cars. Almost as fast as my car. But kias are great also. I have an rs7 in the mountains. What is this with kilowatt that i saw in the note . How does that work . Of course the big thing we like and why were excited, if you look at what battery costs in the future the density is Getting Better and better. And if you project for it in three to four years, the cost of the battery is going to start to become equal with the cost of an engine. Thats what youre going to see. The biggest case is going to be thats whats coming. You should see how you charge this. Its really cool. Weve got to do this fast. That is cool. Put this right in there. Pull that off and it charges there. Regardless of where the station is, level of detail this is what audi does. Really slick. All right. Good. Anyway, thanks. Im going to toss it back to scott and becky. Can you am i on the shot through . If they take your shot can you still see me . Yeah. Wave in the background. Hi, guys. Good job. Oh wait joe, jump higher. Then they can see you. Watch me do this burpee. No. No. Jump a little higher. Youre almost there. A little higher. A little higher. Really. You think you put a quarter in me and ill keep jumping . Yes, monkey. Thank you, guys. Well see you back in a minute. When we come back we asked you to tweet about the stories youre buzzing about this morning. Its our new segment called keep squawking. Stick around. Well be right back. You can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. Welcome back, everybody. Earlier we asked you to send us the stories that have you buzzing this morning. And now it is time for us to share some of those stories. Ivan tweeted us he is buzzing about a New York Post story about a wall street trader making 2. 4 million thanks to a tweet. He paid 110,000 for the right to buy about 300,000 shares in al terra at 36 a share. Within less than 30 minutes the shares soared on a tweet from a reporter saying the company was in talks to get bought by intel. Do i need to have do we need to have the najarians look at a little options actions here. Unusual activity which we do every day on the show where they literally look at things like this. You think something got out on Something Like this. It is possible it is possible for it to be a fluke. For someone to buy options. 35 cents. What was the strike price . And how much time was that . I didnt hear the we didnt say. We didnt say what options. We did it in such layman terms i didnt know what the strike price was. But for 35 cents ill have them look at it and see. They do that every day. I need more info. But people buy call options on tech companies. But that worked pretty well obviously. Yeah. Not all of these instances, obviously, are, you know there may be nothing insidious about what happened. It would be interesting. Id like to see him check out that today with the najarians. Well watch. Buying options, long options. I mean, its a lot. You can invest your you get to invest your money until its gone. It is fun. You just unless it goes. You keep investing until its gone. If youre going to buy calls and puts, eventually youre risky business. Yeah. Which i guess is a good point to say this guy could have really hit it big because you can lose it really big too. When i was i will confess. If you have a gambling problem true squawk confessions. Yeah. When i was a stockbroker we would play the oexs. And we would do things that was not normal to do that. There are a lot of things that used to happen when they would expire where people could close them just up above when was that . 62 . 65 . It was hard because there wasnt electricity. You had to write it down and give it to a guy on a pony. This fan reached out to us on our facebook page. Hes buzzing about godaddy this morning. The company went public yesterday. Shares jumping more than 30 in the stocks first trading session. And im just hoping you know that they raise enough money to make more of those ads for the super bowl. What ads . Yeah you havent seen any of them . I havent. The ones can danica where she was there yesterday at the Stock Exchange. Shes nice. We had her on. Company has no profits. They lost like 100 million. Theyve been in business for awhile. Really still dont. Whats crazy is i know all of these commercials but i dont know what godaddy does. I dont either. I know theyre a web hosting. They do about 25 of all web hosting. Somebody said that last night and i said that means they dont do 75 . I think thats probably the only Technology Company i dont understand. Youre right. Other than that youre good. All the other ones but you sure know their name and commercials. Yeah. Dont ask me about that. Anyway when we come back we have a lot more to talk about. Mcdonalds raising wages for 90,000 of its hourly workers. We will ask an analyst if the franchisees are likely to follow suit and what it could mean for the stock. And later, an Autonomous Car making the crosscountry trip from San Francisco to new york. What . Someone was driving it i hope. It hope it wasnt driving itself from San Francisco to new york. The car is here and were going to talk to the chief Technology Officer from the company that built it. That klooks like somebody is driving that car. Just because im away from my desk doesnt mean im not working. Comcast business understands that. Their wifi isnt just fast near the router. Its fast in the break room. Fast in the conference room. Fast in toms office. Fast in other toms office. Fast in the foyer [pronounced foyyer] or is it foyer [pronounced foyyay] . Fast in the hallway. I feel like ive been here before. Switch now and get the fastest wifi everywhere. Comcast business. Built for business. Well, sir. After some serious consideration id like to put in my 15year notice. Youre quitting . Technically retiring, sir. With a little help from my state farm agent i plan to retire in 15 years. Wow youre totally blindsiding me here. Whos gonna manage your accounts . This is a devastating blow i was not prepared for. Well, im gonna finish packing my things. 15 years will really sneak up on you. Jennifer with do your exit interview and adam made you a cake. Red velvet. Oh, thank you. I made this. Take charge of your retirement. Talk to a state farm agent today. The final day of the trading week. Larry cantor shares his investment playbook ahead of tomorrows jobs number and why he says investors shouldnt put all their eggs in one basket. Plus a selfdriving car making its way across the country and stopping at our studio. What are you doing . Delphis officer joins us to talk about the possibility of Autonomous Cars on americas roads. And americas pastime is looking for a makeover from the place to play to connecting with fans. How the game is trying to keep up with Technology Step up to the plate. Squawk box begins right now. Live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box. Its okay. The dude would like it. Welcome back to squawk box on cnbc, first in business worldwide. Im joe kernen along with becky quick and scott wapner. Andrew is off this week. Here are the numbers this morning. Terrible session again yesterday. Maybe its earnings. Maybe its because its april 2nd isnt it . Earnings start a week from today. Or tomorrow. Yep. Maybe alcoa might even be on monday or tuesday. Youre out. Ill be back in time. For the biggest flood. Thats right. Becky, while youre here would you mind doing the headlines . Not at all, joe. Youre out after youve got one hour and then youre gone. Got to go to on the money. Im going to disney and universal. Last time you said im going to universal. Smart. You might stop by the magic kingdom. You have a 3yearold. Its okay. He cant ride a lot of the rides. Were going to universal. Anyway the European Union is reportedly preparing to file antitrust charges against google in the next few weeks. The eu could fine the company up to 10 of its annual revenue. Carmax revenue above street forecasts. And we are watching shares of transocean that said it would dispose of two of its oil rigs. That would result in a charge of 110 million for the companys First Quarter. We have got a full day of data starting with a pulse check of the labor market with weekly job let claims. If youre keeping score, theyre expected to be flat at 285,000. Investors will also be keeping an eye on this number and ahead of tomorrows big jobs report. Sometimes they dont do it when the markets are closed. But well be here tomorrow from 7 00 to 9 00. The markets would be closed for good friday but we will be open for business between 7 00 and 9 00 tomorrow. Eastern time. Leisman will be here. Factory orders come out later this morning. This tracks the dollar value of new orders for durable and nondurable goods. Orders are forecast to drop again after falling for a sixth straight month in january. Mcdonalds announcing its going to raise the average pay for roughly 90,000 workers to about 10 an hour. The move however, does not apply to employees at franchisee franchiseeowned restaurants. That makes up almost 90 of mcdonalds here in the u. S. Joining us this morning with more on this Piper Jaffrays nicole. Weve decided how to fix mcdonalds last time you were on, nicole. What was it . Fresh and fast . Thats what we want. Stick with the menu. Go fresh and fast. Mike jackson who, believe me has more money we dont need to go into that. Ate at mcdonalds yesterday. You got yourself some chicken. Chicken selects theyve reintroduced. Theyre better than the old ones. Theyre fantastic. So its possible to save this. Will this help prwise, nicole . It will. We did talk about fresh and fast. If you even wanted to make sure the fast part, going to the store level and empowering the employees making them happier with the minimum wage. What happens at the store level is equally important in terms of recovery as what happens at the corporate level in terms of menu and marketing. We also didnt we speak before they decided to go with the breakfast all day long . And also theyre rolling out some stuff in germany too. Where you go to a kiosk and its served at a table. Thats new since you were on. What do you think of those moves . I think those are marginally moving in the right direction. Its a big global brand, as we talked about. They should protect the moat. I think offering them all day again is good on the margin. But were still waiting on the sidelines to see what this new Management Team can produce in terms of results. You know, nicole just thinking in the bigger picture, i dont know if philosophically what you think about this but ive seen people make the point that millennials along with social media at this point are kind of dictating a very fast move in Public Attitudes about things. The indiana law comes to mind. The arkansas law. We know that theyre going to be back in full force protesting for 15 an hour at fast food. Is that going to take on a life of its own and eventually be something that could prwise, hurt fast food chains . Will they have to en masse to satisfy some of this . Are we moving this way where were going to pay workers for really more than a lot of chains can afford at this point . Well im not sure its an affordability issue. If you think about mcdonalds making this change certainly everyone else is going to be pressured to follow suit. But that being said theres a lot of pricing mechanisms if you think about mcdonalds specifically. Theres patented statistical pricing mechanisms that have helped them historically cover food and labor inflation. So knowing that its on the horizon doesnt necessarily mean performance cant still prevail for many qsr operators. 15 an hour what would you pay the shift manager . How would you promote someone if everyone started at 15 and then how do you reward your best employees . I mean i dont just if this were to take on a life of its own, thats what im saying seems like it could be a problem. You know it depends on if were going to get a step function in that direction. But youre right. That being said the way you would, you know work that up the system is things are talking about paid time off and training retention tools. Bonus structures. Things of that nature. I mean all of that can shift and will shift like you said if the hourly wage continues to increase. All of that goes all the way with it all the way up the chain. I know. We were just talking about it earlier today. I think the protests are going to start again. And the local news will be there, media will be there. Theyll get testimonials from people that have six kids and i mean its going to have an effect eventually. Nicole, thank you. We appreciate it. Thank you. Jobs data will be the focus for investors over the next couple of days. Market watchers will be parsing the numbers and try to figure when the fed may or may not tighten and what it mean ifs for the markets. Here with us larry cantor. Why have you pushed it back . Well i think part of this is whats happening with the dollar which is doing some of the feds work for it. The other thing is with the big decline in oil prices, inflation has moved down. Theres less urgency for the fed. Now the fed has come out and said when we do hike well be very gradual. It looks like june in early. Its still possible but i think its early. You think were going to experience what we did a year ago where we had a rough start to the year largely due to weather. Then a strong snapback or is this time different . I dont know if its different, but i think right now one of the big changes is what the ecb is doing. If you think about it this has been a fantastic market environment. Everythings gone up. I mean bond prices keep going up even though yields are already low. And the stock markets held up pretty well given all the gains weve had the last couple of years. The fed ended qe in october, but the ecb came out with a monster program that was twice as big as anybody thought. I think this is going to still be a very good environment. What i would say is the u. S. Market may be getting a bit tired and looks a little more expensive when already this year weve seen europe and japan outperform the market. We think theres more to go on that. So you would have more expose sure right now to europe and elsewhere than the u. S. Thats right. I mean both the u. S. And europe are benefitting from the low inflation, low oil prices. But as we know the dollar has gone up the euros gone down. Theres still more to go there. Thats a help for europe. They have less fiscal policy tightening, credit starting to improve there. And the qe program has just started. So i think youll continue to see maybe some better opportunities there. It doesnt mean were negative on the u. S. Market. I think itll do okay. But fundamentally the fed being at zero is like a crisis. And the u. S. Economy is many things but its not in crisis. I agree with that. So you may argue is it june is it september . A gradual rate increase is coming and the u. S. Economy can handle that. And theres many benefits to that as well. A normalization of Interest Rates out of this crisis mindset. I totally agree with that. I think the fed agrees with it also. Theyre very nervous about upsetting the markets. If you think about all the fed meetings weve had over the last six or seven years, where theres been a question what theyre going to do, its always paid to be on the dovish side. Did again last meeting. And so theyre going to be extremely close. You may argue they end up being too cautious. But we no longer need zero rates. The other thing i think they want to get off the zero bound. Theyre going to need rate cuts and they cant cut rates. What kind of year do you think theyre going to have at the end of the year . Id say the s p probably goes up in Single Digits. Thats what i think. And i wouldnt rule out a correction either. We havent seen a correction in a couple years now. If you think that the economy is going to be Strong Enough to withstand a fed rate hike yes, i do. Then why dont you think that the market will be able to withstand that as well knowing that the economy supports what the fed has just done . What i would say is youve got to go with the earnings here. When you look at past periods when there have been fed rate hikes, in almost every one, the markets done well. And its been higher a year later. But at that time earnings are usually growing in double digits. Were looking for Single DigitsEarnings Growth. The two things that are hitting earnings are one, the drop in energy which you were just talking about. And the second is the rise in the dollar. And instead of getting double digit Earnings Growth youre getting single digit. Where you really havent seen the Earnings Growth yet on the back of whats becoming an economic recovery in europe. And so id say go with the earnings. I think same with japan. Youve got faster Earnings Growth. And most likely we wont have a normal rate cycle increase. Most likely they stretch this thing out and most likely its not 400 basis points over a rate increase. Its something less. Its very slow. And i think this could end up being much like the end of qe. Everybody was worried. Bond yields would shoot up. In fact, bonds really laid. I think the first fed rate hike youll get some turbulence for a little while. Then i think itll be past this. For that exact reason. No ebbs going to be pricing in hundreds of basis points quickly. Great to see you today. You too. When we come back this morning, is there a bubble brewing on the car market . And later, delphi driving a car 3500 miles across the country all by itself. A little frightening, but were going to talk about it. Its making its way to our studio right now. We will talk selfdriving Cars Technology and how long before we see them clogging the road. Squawk box will be right back. Snt the only return im looking forward to. For some every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as fifty dollars. At mfs, we believe in the power of active management. Our teams collaborate around the world, which leads to better de put our global active management expertise to work for you. Mfs. There is no expertise without collaboration. E financial noise financial noise financial noise financial noise welcome back everybody. Could a recent jump in sub prime autoloans mean a bubble is brewing . With us is the president of the auto finance group. One of the largest providers of auto financing in the united states. Tim, thanks for being here today. Thank you becky. How does the loan business overall look in the auto market . Its good. Its been growing year over year as the auto sales have been growing. Terms of access and liquidity, theres a ton of liquidity. Banks are willing to lend. And its been an important segment from the perspective of the dealers need access to financing. Consumers need that access. And i think theres been ample access out there for the consumers to buy vehicles. Almost everybody is making their payments. Theres a lot of tail winds right now. Low gas prices low Interest Rates, those are all things that lift the asset quality. So yes delinquencies are low. What are the delinquencies now versus the average over the last 20 years or so . Id say were sitting came off the bottom. 2010 was probably the low point of delinquencyies. Weve come back to an average lets say 30day delinquencies are 20 to 30 . Lost rates in the industry hover around 1 . If the mortgage industry credit card industry and student loan industry had people pay like people pay their car loans, wed have a different issue in america. Having said that were in a place where we complained for years that people with low Credit Scores couldnt get access. But now you have people starting to worry about the other side of things. This is coming in part because the department of justice and the end of the year you guys announced youd received a subpoena from them. I dont know if you can talk about that. In terms of i was looking at stats the other day, if you look at the High Water Mark in the auto space, it was probably 25 of the industry. And, you know then 2010 it dropped down to probably around 18 . Id say around 20 in the market right now. Maybe 25 . 20 to 25 , lets say. The reason there are alarm bells going off is because in the quarter the Second Quarter of 2014 lenders originated 28. 6 billion in auto loans. That was nearly twice as much as in 2010. You said that was the pendulum swinging in the other direction. As a result weve also seen some moves recently. Wells fargo which is another huge auto lender recently said it was going to be pulling back on lending and imposing a cap. That has people wondering if youre going to do the same thing. I think all of us have a mix in our Business Model were trying to get to. Weve been averaging around 9 in the subprime space right now. We have some room in our own Business Model to do more. Again, its 9 on originations 40 billion a year. I know this is an issue. When i talked to people in the industry, they have told me this is not a prb o. This is not something what do you make of those starting to say is this a bubble. What would be bubbleicious to you thinking weve gone too far . Sure. I guess we are all concerned about a bubble. So we invest in our technology and our tools and underwriting and our policies to try to make sure we dont have a bubble. We all own these assets so if there is a bubble we bear the brunt of those losses in our businesses. How many do you own . Put them on our books. Typically were holding those assets all the way through. Those consumers that were making a bet on that theyre going to repay the loan. Our underwriting is about trying to repay the loan. There are really two issues in the debate. One is the bubble issue. I agree with tim. Theres no sign of a bubble. Over the last ten years, 3. 5 trillion worth of auto loans were originated and the Outstanding Balance only went up by 100 billion. Think about that. I see no signs of a bubble. There are on extreme subprime some practices that probably should be taking a look at. Such as . And there are some bad apples out there that are taking advantage of the situation. And i think its all right that regulators take a look. What would you qualify as bad actions . You know i think these buy here, pay here where you literally have to go in and make your payment on the loan where you got the vehicle and they can cut it off electronically if you dont make your payment and the Interest Rates are, you know high 20s percent. Thats actually taking place over 30 . If you go way its a tiny part of the business. Right now. But you have bad apples. Do you get enough bad apples to have a bushel of trouble . No. Theres not a bushel of trouble out there. But you can get anecdotal stories in all of these you read. Where you look and say you put the two together its a problem. Theres no bubble but its appropriate. Regulators look at some of the behavior. So lets go back to how consumers are fairing right now. As you mentioned, there are a lot of tail winds and things that are kind of helping out. How quickly do you notice things like the Unemployment Rate weve watched drop so rapidly in terms of lower gas prices. How quickly do those types of things show up and the consumer who is were coming in and asking for loans from you. Sure. One of the things we look for, do they have a job. As the Unemployment Rate in fact that is probably the number one if you had to have one stat to watch, thats probably the one stat to watch relative to the asset quality on the autoloan space. Thats great. Tim, we want to thank you very much for joining us here today. We appreciate it and hope to see you again soon. Coming up the last read on the jobs sector before tomorrows Big Government report. Jobless claims data is just ahead in about seven minutes. And then forbes says the San Diego Padres franchise ranks 19th overall and its now worth 45 more than it was last year. Padres padres ceo tells us how hes hitting it out of the park in just a bit. Squawk box will be right bab. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. Theres nothing more romantic than a spontaneous moment. So why pause to take a pill . 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For a free 30tablet trial go to cialis. Com. Welcome back. Looking to shed some pounds before the summer bathing suit season . Try the David Cameron diet. The british Prime Minister says he dropped 13 pounds in the last three months by giving up biscuits and peanuts. Cameron said back in january he planned to cut out carbs. Prime minister also goes jogging every other day. Coming up jobless claims data plus delphis drive towards selfdriving cars. We have one parked outside and were going to hear about its journey from San Francisco in just a bit. Financial noise financial noise financial noise these days, the most important person in your business could be a software developer. So, hows the app coming . Weve got to make something great. Hows the app coming . Weve got to do it fast. Lets do this on bluemix. You can build apps with analytics, big data, even ibm watson. That could give us the edge. Lets do this on bluemix. It can provide code for you. We could be first to market. Because being best is priority one. Being first is priority one. Theres a new way to work and its made with ibm. In new york state, were reinventing how we do business so businesses can reinvent the world. From pharmaceuticals to 3d prototyping, biotech to clean energy. Whether your business is moving, expanding or just getting started. Only new york offers you zero taxes for 10 years with startup ny business incubators that Partner Companies with universities, and Venture Capital funding for high growth industries. See how new york can grow your business and create jobs. Visit ny. Gov business welcome back everybody. We are just a few seconds away from jobless claims. Weve been watching the market today. After all of the down moves yesterday, the trend seems to be continuing this morning. Youll see the futures at this point the dow is down about 14 points above fair value. The nasdaq has turned positive. It is up by 3. 5 points. Rick santelli is standing by at the cme in chicago. Steve leisman is in the studio with us. Rick were watching these numbers closely because it seems like every data point at this point is an Inflection Point b and one the market is waiting to see what the fed thinks about. Every other job seems to be soft. The conspiracy theorists are running wild. Here we go. Trade balance, of course its a trade deficit, but the deficit is much smaller than expected. We were looking for something over 40. We ended up with 35. 4 billion. Although last months ramped up to close to a billion. But that still isnt bad. Boy, 35. Thats really a good number. I dont think weve been there since about november of last year. So we want to Pay Attention to that. On the claims side, also a bit of a surprise. 268,000. So thats down 20,000 from a 288. And, you know, it looks to me as i look in the Rearview Mirror i didnt see a lot of holidays or issues that should potentially affect this number. And once again, you know its not a negative to see the claims so low. And it seems to go along with the type of jobs created, the number of jobs. But in the end, all these metrics seem to be on the spongy side. But trade deficit, thats a good one. Thats really a good one. Were hovering right around 186. I call it the october 15th support in yields. Pay close attention. Back to you. All right rick. Have a great weekend. See you later. You too. Right now lets get more reaction from jim iuorio. Jim, rick said it. A lot of these numbers are pretty soft. We dont know what were getting. But where do you think were headed and how does that play out in what traders are trying to make of it all . I think a month ago the fed wanted to tighten but things have changed significantly. The data is softer. The one thing we were hanging our hat on was that labor data was good. 24 hours ago that changed with the bad adp number. This claims number is fine. It doesnt do anything to add to the case that the labor market is deteriorating. But it does make tomorrow this is a huge Inflection Point. Every week it seems were at an Inflection Point. We are. The fed made mention a few weeks ago about how the strong dollar might be a came out bad mostly because of the strength of the dollar. We expected the Dollar Strength to help the consumer and that kind of counterbalance each other. What weve seen is the consumer seems to be saving the money and not spending it. It usually does take six months after significant decline in the price of energy for the consumers to change their behavior. Perhaps we should give them a few more months considering what theyve been through over the past ten years. Right now the data is not that good. I dont think the stock market has any worry. I think its just an arrange. If the datas bad and the fed doesnt tighten, stock market could be buoyant because they think more free money. What if its just a situation where the weather was weak and it was taking a bit of time for low gas prices to build Consumer Confidence to the point theyd really spend some of that instead of saveing it. We could see that change relatively quickly if thats the case. I actually still think it will. I think its a combination of what you said. In february it was just awful. Or maybe that you know to see a little bit of building up of Balance Sheets on the consumer with the initial windfall of money probably is a healthy thing. I think two months down the road, three months down the road if we dont see Consumer Spending jumping up. I always bring up restaurants. People are spending money in restaurants. Thats interesting and good. Im hoping thats the first domino that starts revitalization of the consumer. And which way would you pla i this . This markets been walking kind of flatlining for the entire year to date so far. What would you do . I stay uncomfortably long. Ive seen no reason to panic yet. We are at the downside of i think a significant range in the s p. The futures settled below 230 which is only a few shorthand ls from here. If they settled there and felt comfortable there, we could be in a corrective phase. But were doing that right now and people get a little nervous when that happens. I dont think its time to panic yet. Okay. Jim, thanks so much. Great seeing you. Thank you. Good seeing you. Right now lets get to scott wapner. He is outside the studio with a special guest. Thanks so much. Look mom, no hands. Delphi completing the firstever crosscountry trip from San Francisco to new york in an autonomous vehicle. In fact, the vehicle is just behind us right now. The modified audi sq5 finished makes its jury knew just in time for the auto show takes place in new york city. Joining us is jeff owens, chief Technology Officer at delphi. Its good to see you. Thanks scott. Were you along fwr the ride . I got to get in a couple of sections and experience it myself. How long did it take . About eight days. 15 states. Engineers had a great time. Wanted to make sure we were taking all the data we needed to improve the products going forward. How big do you think this market could really be . Its going to be awhile before its fully autonomous. But a lot of the safety is on the road today. Its going to be one of the Fastest Growing in all of automotive. On a lot of the vehicles this morning you have on the rotunda. You think people really want this . You think really Consumers Want to get into a vehicle and have absolutely no control over it . I think theres some. Theres a desire for mobility. Theres a desire for more safety. We tend to think of this as an opportunity to improve our active Safety Equipment that will provide help when you need help. You say its going to take awhile. Whats your best guess . I think to get the driver out of the drivers seat youre 10 or 15 years away at least. The regulatory framework, but the active safety request i want to give the driver that extra help to Pay Attention when theyre not, its already on the road today. Thats going to b the big opportunity. I was going to ask you about some of the hurdles you have to get over in government regulatory. Its certainly going to be a big one. It is. Theres a lot to do. You need an ecosystem for a fully Autonomous Car to work in. But the active Safety Equipment is already on the road today having a big impact in reducing accidents. It will help reduce fatalities. When you drive one of these, its not even accurate to say when you drive one. When you dont drive one of these Autonomous Vehicles and happen to be in the car, you have to go the speed limit. Is that right . Yeah. The states are still working through how they will allow the vehicles on the road. One thing is sure, they want you to drive the spliteed limit. Maybe a few Miles Per Hour is not going to give aproblem. Ill tell you, we were the only car on the road doing the speed limit. Im sure you were. Thats a statement in and of itself. Thanks so much for spending time with us. Good luck at the auto show. Thanks scott. Guys back inside to you. All right. Well see you back in a minute. When we come back what is wrong with baseball . Americas favorite pastime trying to break the vortex of the good old days and catch up with technology. Well talking about the business of baseball and the changes coming this summer. Got the right song. You like that . I do. Check out the futures. Both the dow and sppz p are weaker this morning. Looks like the nasdaq is indicated slightly high perp. 73 of americans try. To cook healthy meals. Yet up to 90 fall short in getting key nutrients from food alone. Lets do more. Add one a day 50 . Complete with key nutrients we may need. Plus it supports physical energy with b vitamins. One a day 50 yeah. No im just im almost i got 20 minutes i just used that thing and im getting addicted i think. Baseball season is about to begin. You can get affrin. You can get addicted. I just need 20 minutes without sneezing. About to begin baseball season and this year major league is trying to spice up the game. The ceo of the San Diego Padres joins us now. Hes on the Competition Committee which analyzes ways of improving the game on the field including the pace of the game umpiring and the use of instant video replay. Pitchers go to the bag a lot. Do they not . Guys getting in and out of the box. Whats the answer for speed . Well i think thats part of the pace of game. There are two issues here. Pace of game and length of game. The length of a game is nearly 30 minutes longer today than it was 25 years ago. So within the game i think there are poirntsnts of dead spots and interruption. Theres been a lot of interruption on focusing on those areas and the pace of game. I think thats a great example. Keeping hitters in the box is another example. The length between innings, length of time between innings is something thats a primary focus of this as well. That will have a clock on it as well this year for the 2015 season for the first time ever. Hey, mike. Its mike jackson. Good to see you again. Hey mike. So this clock its going to be like in basketball where the pitcher has ten seconds to throw that thing or its an automatic ball is that what were going to have . I think thats what well eventually have. For this year were focusing on 2 25 between. And the pitcher has to be ready to go with 30 seconds left on that clock. The batter will be in the box with 20 seconds remaining on that clock. That will shave minutes off of the game time as well. The pitch clock was experimented with last fall in the arizona fall league. With 20 seconds between pitches. So there are great opportunities, i think, to increase the rhythm of the game the pace of the game which ultimately will lead i think, to fan enhancement and a faster game. Still a Pretty Healthy sport locally, isnt it, in terms of tv and attendance . Well absolutely. Were there are great opportunities to expand the footprint of the game. Were starting with a Solid Foundation of 74 million fans. If you factor in the minor league nearly 100 million fans attended baseball games. And Television Ratings at the local level are outstanding. If you were to look at all of them across the board they would perform favorably to all sports. And the avantgarde approach of baseball advanced media and i think really gearing baseball on a digital sense to the millennials in the way that millennials consume and digest information is for the future. I know hockey was written off a couple of years ago. Nbc got involved and its just its unbelievable right now with the 75 inch screen in high def and everything else. I can feel the checks through the screens sometimes. Why do people say san diego had like a world series win during the offseason . What happened . I dont even follow the reds that closely anymore. Whatd you guy dos in the offseason . Well we had an unprecedented offseason for the padres. This is a franchise that in 46 seasons of the National League is only qualified for the post season five times and made the world series twice in 1984 1998. Under the guidance of new ownership that took control in august of 2013 or 2012 rather this was a transformative offseason. We added Matt Kemp James shields, justin upton to name few. And really positions us well to compete in the National League west, a very Competitive League this year. You know our ticket sales as an example for a sixweek period right after january 1st were up 600 year over year. So san diego is a very rich baseball town. A lot of baseball played here in southern california. A great following for the padres. But its great to see it come back with a roar and a lot of excitement and participation here. Like a blessing and a curse yourself out in san diego. Like who doesnt want to go to a game in san diego. But then there might be other things to do. If youre a white sox fan, you know tigers. Im going to the tigers game. At san diego, theres quite a few alternatives, i would think. Its a blessing and a curse. Torrey pines. Torrey pines. Might stop up there too. La jolla. Were fortunate to have a great downtown ballpark. Petco park which positions us well not just the game but the activities around the game really plays well into san diegos lifestyle. Even while the team was going through tough years, we drew around the mark. Were optimistic we can have that creep towards 2. 5 or 3 million mark. Im going to watch you this year. Because im sick of the giants. I dont like what they did to the reds a couple years ago. They were up 20, remember that . Then they lost three straight. I love dodger stadium. Mike watch out. Whoever joe likes has a curse. You know what . I take it back. Im going to hope for the giants. Good to see you, mike. Thank you. Thanks for having me. When we come back we headdowntown to talk markets with jim cramer. And a programming note markets may be closed tomorrow for good friday. Squawk box is open for business though. Well bring you the jobs report. Analysis from everyone, what to expect on monday morning when you get ready for the opening bell following this holiday weekend. A special edition of squawk box jobs friday edition tomorrow. 7 00 a. M. Eastern time. Well be back in a moment. E financial noise financial noise financial noise financial noise welcome back. Couple of headlines were watching this morning. Jerry brown taking action to reduce water use as the state battles a devastates multiyear drought. Its the first mand story statewide reduction in californias history. The goal is to cut water use by 25 . Restrictions will effect golf courses and homeowners. Farmers, however, will be exempt. Farmers, however, will be exempt. Apartment rent are rising nationwide. The vacancy rate dropping in the Fourth Quarter to 4. 1 . Down a tenth from the previous quarter. New york remains the most expensive market with effective rents of 3,200 per month. San francisco kept the number two spot. U. S. Regulator charged kraft foods and Mondelez Global with manipulating wheat market. The cftc alleges kraft and mondelez sxutexecute a strategy to buy sixmonth supply it never intended to receive with the intent to lower prices. The companies gained more than 5. 4 million on that move. Fancy. Fancy. Lets get down to the New York Stock Exchange with jim cramer. I was watching nightly, did you know a pound of broccoli takes 300 gallons of water to produce . No. Statistics on last night that blew me away how much water takes just for an average amount of produce. Serious issue out there, jim. Hopefully totally. How about the fact theres actual wheat in things that kraft makes . Yeah. Natural, right . Thats natural organic, use wheat. Who would have thought . Its not artificial wheat. No. Who would have thought a piece in the journal about an apple, not Apple Computer but gmo apple that you know the gmo gets a bad wrap. I like fresh. Profresh, if its fresh i like it. You missed the dos toros guac. Not that you dont know a thing about mexican food. Careful. Im hosting late tonight, i think. I may host tonight. Jim i have better guac. You should see our yelp ratings on guac, unsane. You get up at 4 00. Tomorrow ill be doing work yeah. Its unfortunate but ill be doing things. Look its a workday. You guys are doing it. Yep. Ill write some stuff for the street some stuff for cnbc mostly preparing for mornde ing foring for monday because ive got a big show. Call in after 8 30. We all need to pitch. If you reachable . You got a pager . Ill be looking at the number. Absolutely. Good. Hes playing hurt jimmy. You know you never know. Hes got the cold . Get better this weekend, play golf at the club. Maybe so. Probably not. Could be a nice day. Feel better. Take it easy today. When we return well talk economy and the consumer with autonation ceo mike jackson. Before we go we want to get a fond farewell to our technical directoring Keith Falcone work with us for eight years. He didnt die. Goodbye keith. Hes waving back. Hes fine. Hes got a big, new job. Could we get a better picture . Keith looks like banged up from the night before. Some producers like to say hes our professional button pusher. But hes more than that. I get top lines from him with the most up appropriate stuff. If i ever said it accidentally on air. From funny pictures, onair saves making us look great, a big part of the show. He will be missed in the control room. There he is again, ladies. Message me. I can put you in touch with him. Good luck keith, on your endeavors. Squawk box will be right back. Hello. I am technology that is changing investing forever. I am a fully automated Investment Advisory service. I can help you choose the right portfolio. Monitor it. And even rebalance it. Ive been called innovative. Revolutionary. And just plain smart. Id blush at the compliment if i could. But i cant. So. I wont. Say hello at intelligent. Schwab. Com host mike jackson. He brought all of the lovely cars to share with us. One of the things we havent talked about yet is we know that the fed is probably going to raise rates this year. We know that that is a big impact for people who are buying thing like houses and cars. What will it mean for people buying a car if the fed raises Interest Rates . Will it have an impact . I think the industrial can continue to run right around 17 million for several years. Because all of the feds doing is normalizing rates from extraordinarily low rates. 100 basis points typical customer, will mean additional 15 a month on their payment. Okay. The industry ran from 2000 to 20006 selling around 17 Million Units a year with Interest Rates 300 basis points higher on the typical loan than today. Where would rate have to get before you throughout it really impacted sales. If they start raising 400, 500, 600 basis points. If inflation rears its head and the Federal Reserve say were going to raise rates until the economy slows down housing and car sales will slow down it still remains a cyclical business. Industrial can handle normalized rates. If the fed wants to shut it down and go above normal it will impact the business. And ill be here on your show saying those exact words. Saving more than 15 in gas costs 15 a month for 100 basis points. Unless a gas tax weve got along so well today. Dont touch him youre sick. Nobody wants to stand by joe. Mike, when you look at just what happened for the first day, its april 2nd, one day of sales in the Second Quarter. What was that one day like . Now officially into the Spring Market even though it doesnt feel like it here this morning in new york. No. And i love this new warmer world. First indications are, excellent. Off and running in the Spring Market. You feel like the stock market accurately reflects how you feel where we are in the economy . I dont see the multiple on the Stock Exchange as being anything extraordinary as a multiple of earnings. I dont think the markets overpriced but thats just my opinion. Youre not a guy who worries much, but if theres one thing you were watching as a potential headwind, what would it be . I consider myself the chief risk officer of the enterprise. You always are as a ceo. Right. And i have to say, and i am a big worryier were in a goldly locks period where the industry had extraordinary exciting new products. I just start with the new York Auto Show. Pace offen know vation amazing. Low Interest Rates, low gas prices growing jobs. A year from now, two years from now. Thats the problem ill take. I think were looking at a good run. Mike, thank you, again, for joining us today and spending the morning with us. It has been a pleasure. Always love seeing you. Thanks for bringing the toys. Have a super vacation. Big number tomorrow. Universal. Jobs report. Big number. Ill watch it from universal. Big number. Watch tomorrow. Next week youre out. I am. Andrews back. He is. Weve got that going for us. Scott, great having you. See you next week. Monday and tuesday. Boys club next week monday and tuesday. See you soon. Time for squawk on the street. Good thursday morning. Welcome to squawk on the street. Im Carl Quintanilla with Jim Cramer David Faber at the New York Stock Exchange. Last trading day of the week as we head into a long holiday weekend. And futures suggest investors might keep their cards close to the vest ahead of the jobs number tomorrow. Claims were very nice beat. Oil, down about 2 . A bit higher than the session lows. Watch the tenyear around 1. 87 almost a twomonth low. Road map begins with the markets and a jobs report on deck. Doubts about u. S. Growth weighing on stocks but claims come i