Growth and uncertain growth. The aussie dollar is falling sharply on that news. Australian stocks, on the other hand, rallying more than 2 on the news. In asia, japans markets were closed for the Constitution Day holiday. Chinas Managers Index shrinking to a 14month for its 14th month coming in below forecasts. A bit of a mixed picture. Shanghai compost up 2 . And hang seng almost the lower. All eyes on . Yeah, go for it. Moving forward, in pretty negative territory. And germany is lower than 2. Ftse lower than 1 . Italy and spain off by more than 2 perhaps because the eu trimming its 2016 growth forecast to 1. 8 from 1. 9 . Its 2017 growth forecast from 1. 9 to 2 . Also cut Inflation Forecasts despite their efforts to do Everything Possible to try to lift inflation. Watching european financials, ubs reporting a sharp decline in management wealth business. Which was supposed to be all the european banks going into wealth management, they were going to be smoother when it comes to their earnings profile. Hsbc reporting a smaller than expected 14 decline in quarterly profits. Strong revenues from its commercial banking unit helps offseat a weak trading business. French back bnp paribas topping increase in 10 net profit. This after the Banking Division took a hit from the volatile environment. Why didnt europe go up because of australia used to be when wed get a rate cut, everybody would go up . Because its barely working. Weve thrown everything in the kitchen sink at it everywhere. Ale shapple shares, speaking consensus and some took a wrong turn on wait to a trilliondollar market cap. Looks like it could fall below 500 billion. The 512 falling since yesterday. Last time on a losing stream was back in 1998 at the same time it had declining revenue. Apple finishing lower on monday 11 out of 12 last sessions down 30 from alltime high of just under 133 a share. Apples ceo tim cook talked to jim cramer about the stock and why the tech giant is buying back shares. We tend to be opportunistic in buying it. So we dont have some regimented program, you know, x shares a day or whatever. Opt t opportunistic to me means you buy when we believe the company is undervalued. And we believe the company is undervalued. Things change significantly in the stock market. It was about six months ago when people like icahn and every on the street said it was a slam dunk. It was trading at seven times earnings. Its the cheapest tech stock in the universe. 200 billion cash. Yeah. It was ly loved. You heard what he said, iphone isnt dead and the company isnt dead. Within six months, thats how quickly things can change. Society headline is the iphones not dead. Its not quite dead. Its got a couple its not dead. Its not dead. Well, it was a headline. 93 . Do you remember the morning the dow fell 1,000 points in a nano second. 93 is where apple went to that morning. So if you were very good that morning, you were able to get in at 93, 95. And now its back. We say these numbers so easily. 500 billion this morning. Its a 512 billion company. Exxon is not. Microsoft. Google. Thats a gadget maker with a 512 billion gap. I think of it more than just a gadget maker. I know, really, thats what it does. It makes smartphone gadgets. If someone decides with better features about two weeks ago, the lead on grudge is that there was a gentleman in china, talking about new technology that Chinese Companies are developing, mocking apples technology. Instead of the internet itself. Can i just make two comments . Are you putting a buy out . You cant because you had a buy all the way down. Thats fine. Two thoughts for you. It doesnt ultimately matter whether this market continues to rise as long as they take a bigger share of it and thats possible. Theres nobody talking about whats happening in india right now is living in a 3g world, right . Theyll eventually get to an lte world in the next 18 months. Think about all the phones that will have to get upgraded. Will they be an apple phone . Thats the question. Stock will start to rebound and reflect that if its going to be apple. Im just suggesting to you i think theres still some opportunity. I also think we will definitely okay. Well see. The real question is back to 110, 115 or down to 80. 75 or 80. It could be a 400 billion Company Without the end of the world, easily. To assume that theyre going to sell 50 billion plus, and sell that many every quarter, thats a huge hurdle to try to theres also the old general rule of thumb when you have margins like that, somebody wants to draw the chalk, right . Thats a signal that theres opportunity there, go. And you know how smart people are everywhere. Yes. These young im watching 22 year olds, 23 year olds, theyre writing code for these smartphones right now all over the world. They want to find a startup. Well see. There are some barriers, obviously. It doesnt mean that they have a birth right to be always the smartphone. Well have much more on tim cook and apple throughout the show. Hedge fund manager David Einhorn exposing a new investment. Einhorn said the Business Review site could double. Shares of yelp rising on that news. Einhorn tells investors hes made new bets in natural gas and exited positions in greek banks and Financial ServicesCompany Delta wood. And working on yelp, its long been considered a takeover target for given what it does. People actually thought that apple was a company to put it in with maps. It has a lot of underlying data. And google maps, the old apple maps. I use google maps. I use google maps on an apple phone. We should tell you harsh words from valeant and Warren Buffett on squawk box. Buffett said, quote i dont think youd want your son to grow up and run a company in a manner that valeant was run. He called the drugmaker a sewer. Hedge fund manager bill ackman defending his stake in the pharmaceuticals yesterday. Companies made some mistake, i think where munger is wrong. Its wrong to indict an entire company on the basis of a few mistakes. And a leader that is no longer with the business now. Shares of valeant have tumbled nearly 70 thus far this year. It was an astounding interview. I think back to the original valeant investment that was about allergen . Remember the hue and cry about that . Im surprised that he stuck with it as long as he did. Is it a few mistake or a Business Model based on it was a Business Model mistake. Well he just said its a couple of mistakes. Plus when we would ask pearson, what is your biggest drug . You know what the biggest drug is its tofu or jublia . Jublia. I think he made 5, 6,000 for a tenminute voiceover. But still, jublia. Those three athletes ive been fascinated with the relationship between charlie, warren and bill. You know, bill likes to compare himselftofavorably to warren. He goes out every year to some out there in omaha. Right. They do this whole thing and yet you have you dont sound no, no, charlie and warren will very rarely say anything negative in particular about bill ackman personally. In fact, becky tried i think to elicit an answer specifically about bill. Warren said praised by name and category. So he could have said the category. Its clear what his intention was. If i were bill ackman i would have taken it personally. Warren has made a living out of being the evunkular uncle i guarantee you over the years, hes taken advantage of pricing flexibility. Thats what the business with a motive. And there were times not to raise insurance premiums and he was fine for that. Which im not faulting him for that. Not faulting, i dont want to be no sanctimonious about it. Because it would be hypocritical . Right. He has turned into people who have dealt with him over the last 40 years he was tough. He can get tough. He should raise the price of blizzards because they arent healthy and people shouldnt be eating them. If he should help the American People he should raise the price of blizzards. And munger talking about mcdonalds how people get their start. Learning how to show up on time, learning how to cash a paycheck. Learning how to pay taxes. I think he called the minimum wage growing up, i think he called asinine. I think thats the word that he used, in reference to mcdonalds, as we know is killing everyone. Causing diabetes and obesity and really the end of the world here in the United States, right . Its like a scourge. Cocacola, mcdonalds, both of those things are responsible for 90 of our problems. No, no i asked him throw in the airlines, its mcdonalds, coke and the airlines. No, no, ive been making a valeant defense influence. I would make a valeant defense of cocacola and mcdonalds. Okay. The question is, given the price point of those products and the income level of a lot of people who go there and use the products, and the Global Health issues we, thats the issue. Its not that we cannot have it all in moderation. Im not saying to tax it no, no, one basic point. Are you saying no im not. Im just saying theres a disproportionate number, the problem i was just going to say, you know what, in most of the world, poor people are starving. We have a very unique problem in the United States. So, interestingly, in mexico where you spend time all the time traveling they put that tax in. Right. Apparently, its reduced obesity in this short period. I dont know if its true. I dont know if its true. Im just saying thats what they say. Im just saying clearly theres an obesity problem. And to some degree, it is related to certain types of products. The question is how can you educate people and what do you have to do economically toe en incentivize that behavior. Display lot of problems associated to obesity. And big gulps, or sugary drinks. You know what we just added since we both have trainers youre going to talk to that now . Wait. What did we decide. Did we decide, is it food or exercise, its still 80 food. Its still 80 food. Sleep is say big story. But food is a major component. Intake. Intake is the dominant issue. Anybody who has worked out and also eaten a lot at the same time, tells you it doesnt work. Youre on the treadmill for 600 calories lets be clear, its not just sitting on the couch behavior. Its also your intake behavior. I think that minimizes all of the other benefits from exercise. The psychological benefits. Im not telling people not to exercise. Youre talking about as far as obesity, you cant control it through exercise . Well it helps to control it. It helps to stay active. You can see that both of us its mano mano. Looking great. What time are we hitting the gym, bud . I went yesterday. You dont go every day. I dont do he needs to rotate. He needs to run. U. S. Equity futures sharply lower, this morning, supposed to be higher. Joining us now, philander manager at fed raerfederrated. And on the economy. Somebody making a point for 500 billion for a Hardware Company that is under massive competitive threat not necessarily the smartest move. And some people didnt like it. Anyway, so, phil, youve gotten more cautious as ive seen you recently. What struck me today, i dont no david stockman, hes been saying that the skys been falling for a while. Hes got a point here we are, barely above speed, globally. You cant imagine central bankers doing more than theyve already done. And this is what we get for. Does that mean when finally theres none of that stimulus, eventually, theres a day of reckoning or not . No, i think thats right. When you look at the gdp report up 0. 5 of 1 . The market is sort of ignoring that saying its just the first quarter. Second quarter week going to pop back to 4 , 5 . Were not in that camp. If you look at the first quarters of the last two years, you had brutal winters that allowed you to pop back in the Second Quarter where you got a more than one weather environment. We had a pretty easy winter here. Our expectation is were looking at 2 give or take, not 4 , 5 . I think the market is getting ahead of itself. We think were looking at a full year the 1. 7 from a gdp standpoint. Consensus point to 2, 3, thats below the gdp rate coming out of the Great Recession at about the 2. 2 level. Right now, things are slow. Be careful what you wish for, steven. Oil factor. And fed cant move, dollar might go up. Fed cant move. Dollar stays low, well be fine. All of that happening, theres oil for you, theres a dollar, 18month low. Market cant get out of its own way. I dont understand. I thought that was going to be it. Well, i think what were actually seeing, the recognition that we looked at before. Youre really the policy is bankrupt . It is, it is. It started january 29th when kuroda went to negative Interest Rates and you had a short rally. And then draghi comes in with his bazooka, and lo and behold, the euro happens. The currency starts to go up dramatically right to the opposite of that youre having the exact same thing happen here. What were doing were actually immunizing ourselves from the global pressures and its something that will continue on an ongoing basis. Purchasing and currencies and devalues our currency and that just gives our environment where we get a little natural benefit from that, but we dont have Strong EnoughGlobal Growth to correct everything. And were not going to be the leader on the growth side either. You talked about how weak it looks in the United States. But where else in the world do you go . Weve got a problem right now. I dmiernmean, do you go to f income . From an s and l global allocation point were sitting at a bond rating of 60 . Weve got a lot more cash and bonds than normal. Joe opens this by saying phils a lot more nervous than normal. Hes absolutely right. Were still in the correction camp here and we could actually see stocks pull back 5 to 8 in the next couple months. Gdp is just coming around, they do it weird, theyve got to add it up. It would be nice if you just knew what the annualized rate was. There are a couple countries doing better than us over there. Back to whatten eon the euro, 1 on the euro. Just when things start going throwing in the terrorist and immigration problems i dont know what happens in europe. I wouldnt be counting on them to save us, do you . No, and youve got the brexit situation out there. We think the odds of brexit are low. You do, i dont. Some of what weve been reading from our overseas friends, its closer to a coin flip. I dont know if that would be a bad thing. Remember cutting your losses with the stock market . Is this really going to work this whole european experiment . Are you sure its going to work . You cut your losses and saying you cant do this without a single Fiscal Authority and common currency. We put it together, god forbid that it falls apart. A lot of people saying theyre afraid to go back out of the it. That would be the beginning of it, if there were a brexit, theres a consensus point . No its a pribritish concern. How do you think it would have marked lets say we decided in the United States were going to have the north and south american zone. Bolivia and brazil all going to have the same currency, not the same Fiscal Authority but you can imagine the same policy for venezuela . And an american trade where brazil and argentina had our currency . You can imagine can you even imagine . But thats in europe. Maybe this slightly less different than us. But can you even imagine trying to do that . Not for a second. I mean, finland and greece. How different are finland and greece. Its not a fixed income kind of world . Well, it is definitely a fixed income kind of world. You should be overweight in fixed income. You might want to be market weight in terms of equities. Or below. Cash is where you should be spending and putting it into fixed income. Were just heading lower over time. All right, guys, thank you. Coming up, today could be a make or break primary for ted cruz. Voters in indiana are head to get polls that could pave the way for donald trump to win the gop nomination without a contested election. John harwood joins us next with the latest from the campaign trail. Were back in a moment. Youre not gonna watch it no, youre not gonna watch it we cant let you download on the goooooo youll just have to miss it yeah, youll just have to miss it we cant let you download. Uh, no thanks. I have x1 from xfinity so. Dont fall for directv. Xfinity lets you download your shows from anywhere. I used to like that song. So both democratic and republican primaries are being held in indiana today. Gop frontrunner donald trump is ahead in the polls going into todays vote and trump claim he is will seal a nomination with a win in the Hoosier State. John harwood joins us from washington. Hi, john. A lot of people calling this ted cruzs last stand. Are you in that consensus camp if he doesnt make it today that cruz is done . Well, he may keep soldiering on through california, the last primary is on june 7th. But the writing is increasingly on the wall. Look at these numbers from the nbc wall street journal marist poll. Donald trump has a 15point lead in the state of indiana thats where cruz has made his last stand. If you look at the National Numbers in the nbc survey monkey poll, you can seat opposition to donald trump beginning to wither on the republican side. Donald trump has got 50 nationally among republicans in that National Survey monkey poll. On the democratic side you have a similar situation, Hillary Clinton is up to a 14point lead over Bernie Sanders. What we see is the theyclarify of november contest which were likely to see Hillary Clinton and donald trump. John kasich have primaries in new mexico where kasich says hes going to compete. Kasichs got him right where he wants him. Yeah. Right in the cross hairs of no, we do have to say, joe, that we have gotten a couple surprises that differed from poll results in this primary. So, in michigan, we had Hillary Clinton with a solid lead. And Bernie Sanders surprisingly came back and won and cant rule that out. Yeah, no, no, no. The Biggest Surprise was in new york and 39 or 40 organization 45 or 49. You got 60 in a couple places. That was a surprise. Yep. Wouldnt you think the momentum mannafort has had him, that Foreign Policy speech that some people liked. Id go so far as to call it trump tuesday. Somebody used that term trump tuesday. Every tuesday had he was on the apprentice. Joe what happens in these races, sometimes it happens more quickly than ever, is that it tends to gravitate towards the frontrunner. And were seeing that right now. John, right now on the Washington Post it says what kind of candidate will donald trump be in the general election and how should Hillary Clinton run against him . Thats in the lead. Whats the answer . I think its going to be a very negative race. I think what youll see from Hillary Clinton whose image is not all that healthy herself is to try to capitalize on the worst image that donald trump has about hispanics among women. Among College Educated voters. Theyre going to go very, very hard. Theres a new ad out in an Arkansas Senate race where the democrat is trying to tie the incumbent republican to donald trump. And its recitation of controversial statements that donald trump has made on howard stern show, the campaign trial. And thats the kind of withering fire youll expect from democrats. And for donald trump, hes going to come back with all of the negatives, crooked hillary as he calls her and dredge up her husbands problems. And trump would continue to be out an outspoken candidate to say improper or imprudent things. There was a sense that maybe he would become the candidate he would not only move to the middle but sort of simmer down. Tamp it down. Yeah. This is saying a very different he couldnt do that. Hes got to say who he was, authentic, hes got to temper it down a little. Andrew, depends on what you mean by move to the middle. On policy in some ways, impaired to standard republican ideology, hes been in the middle. Its his temperment and his tone that hes been way off to the side. Menafort has indicated hes going to temper that and as joe indicated he will somewhat. But its what got him where he is. John, the scariest thing for democrats is the consistent. Underexpectations for trump from day one. Consistent. And the way that its really touched out. And it could be kind of the same if its anywhere if its anywhere similar to that in the general, its something they shouldnt just write off. I cannot argue with you, joe. Its amazing the and you wonder what that comes from. It wouldnt be the media, i dont think. No. Anyway, thanks, john. Coming up, apples ceo tim cook speaking to jim cramer last night. Much of the interview was focused on china. Well weigh in on the opportunities and challenges that the Company Faces in that great nation, next. The first stock index musicwas createdughout over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. Time now for the executive edge. Apples ceo tim cook appearing on mad money with tim kramer. Most of the interview focused on the importance of china. Heres what we see in china, is that the middle class is booming. About 15 years ago, there were 50 Million People in the chinese middle class. Five years from now, that number is going to be almost 500 million. This is unprecedented growth. I parsed every word of your last conference calls. You did not talk about middle classification which made us feel like something was wrong . No, that was my error. The longterm thesis is intact. There has never been like it in the history of the world, im still as optimistic as ive ever been. Joining from us beijing, with more on the importance of china for apple, and you probably know better than we do, eunice, about what we dont know. And i just i would never underestimate the engineering and innovative components of 1. 4 billion people. And i know chinas a huge market. I just dont know that its always going to be apple thats capitalizing on that market. I think its kind of reflected in the stock. Yeah. And i think what tim cook had to say was absolutely correct when you look in theory, beijings policy goals are all geared at creating a healthier and healthier society that has a massive middle class, as part of a fiveyear plan, the government wants to double per capita income to about 6,000 for city dwellers. And the whole idea is to change the economy here so it relies more heavily on consumers. The issue, though, is whether or not beijing has the formula right. Because right now the consensus among many economists is that the forecast is not moving fast enough. That means that the economy is not necessarily in the position where consumers are spending more. Were already seeing evidence of that in the Smartphone Market. Tim cook himself said the Smartphone Market is not growing. So that is one issue. Another issue is that just because Chinese People are getting wealthier, it doesnt necessarily mean that apple is going to benefit. The Company Faces a lot of competition here. Just in the past year in 2015, walle and shamby came in with brands. Others like others you havent heard of are investing heavily in our own technology. So that say big factor for ale. The third challenge that apple faces here is something that a lot of Foreign Companies face and that is the governments attitude towards Foreign Companies more generally. Apple just a couple of weeks ago faced problems with regulators had that shutdown its iphone services and that led carl icahn to dump apples stock because hes concerned about the government factor. In fact, the American Chamber of commerce came out with a white paper recently in the past couple of weeks and said one of the biggest concerns is the market access. And also the uncertainty of the Regulatory Environment towards Foreign Companies more broadly. And thats a big question mark for apple. Because just because the middle class is growing, it doesnt necessarily mean that apple is going to have greater access to all of these people. It depends on what the government wants. Like, its tough. What have we done for you lately . You got to come up with something every time you have an investor or one of those shows where you do it. To try to leapfrog your competition. See, i never thought id get rid of my flip phone. I put all of my money in motorola, because the flip phone, nobody was going to beat that. Right, mine was pink. I miss it. Can you imagine the pressure of tim cook to up with a 7, 8, 9. Yeah. I would have stopped and got off on the iphone 6. One thing i wanted to talk to you guys about is the reaction in social media in china about the mad money interview with tim cook. A lot of people are talking about it and basically saying that theyre hoping that apple is going to come up with an iphone 7 that does is come up with wiz Bank Technology that impresses people. There is respect for apple. People see it as iconic, tim cook, as well as steve jobs, of course. Many people are hoping that the iphone 7 is going to be a big winner. Of course, their tech analysts that i talked to are a little bit concerned that the expectation is so high for the iphone 7 to be absolutely fantastic and that apple wouldnt have any other choice but to disappoint with that product. Eunice, thank you, in china on apple. Coming up, were going to get you ready for the trading day ahead. The stock planner is next. Plus the tv producer behind reality hits of Brett Michaels rock of love. Here to talk about the future of reality. Mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of the at t network, a network that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. Thank you thank you what a week we sat down, we kicked back, and we watched tv [ cheering ] this win is just the beginning it doesnt end here. Because your laundry can wait keep those sweatpants on order another pizza and watch on [ cheering ] dont wait a whole year for Xfinity Watchathon week to return. Upgrade now to add the premium channel of your choice so you can keep watching. Call or go online today. Time for the squawk planner. Automakers are reporting their sales throughout the morning. Cleveland fed president and atlanta fed president dennis walker. On the earnings calendar look for results from pfizer, clorox and sprint before the opening bell. Cbs, etsy and zillow expected to report after the closing bell. And a Core Media Group is getting ready to set up for bankruptcy. Thats the Company Behind hits like American Idol so you think you can dance. Owned owned by apollo equity management. Expected to join us thursday. For a check on the real world of reality tv, cris abrego. More importantly, hes got a book out called make it reality. Cris is the producer of several hits including rock of love. Thank you for being here. We talk all the time about streaming, netflix, amazon, hulu. All of that. Most of that, it feels like, it could be wrong is about scripted tv. People talk about wanting to watch ondemand scripted tv. If that is the world were moving to, where does reality fit into that ecosphere . Well, its definitely the thing thats being talked about those are big earmark pieces for television on those streams service s but if you really loo on hulu and others, theres a lot of scripted services. In fact, theyre looking for more. Like any good network, ultimately, you need a little bit for everybody. Right. And the bottom line is that reality isnt going anywhere. Its part of the do you think its watched in a different way . I mean, to a lesser point in viewing and more in surfing around . Well, all the water cooler talk is about all of the scripted shows, right . To some point, right. I think it depends on the show. It has a winner, once its out, you binge on it, its done. If its comedy series, yeah, i can see it being evergreen, being watched permanently. Do you see Services Like hbo and other services out there buying into original reality with a major push as weve seen it . Absolutely. Sigh dont know if you guys are fans are shelf stable on netflix. Chelsea handler is doing a bunch coming up. Andrew just read this, how is it that the Company BehindAmerican Idol, you think you can dance can be on the verge of bankruptcy . I mean, if ever there was a reality show, it was American Idol accept for maybe survivor. And squawk box. Exactly. Thats in this years election. How does that happen . You know, i dont know. I dont have the details but American Idol is an incredible series of an unscripted show. Its just like the movie business, you could have a mega hit and still blow it . Ill answer for him. Terribly leveraged. Terribly structured. Thats the beginning and end of the story. They thought they were going on to bigger and better things. Yeah. Different question, reality. Everybody says scripted unscripted. Correct. How scripted is it really . We just had some of the ladies from real housewives of new york on who tried to suggest its not all that unscripted. Well, ill speak to shows specifically, they always say, cris, how real say shis a show . No one is being handed scripts. Its directed. But at the same time, in reality we adhere to the same rules in scripted. We want an a story, we want a b story. We want a protagonist. All of the things that happen in television that make it entertaining. Andrew, do we have a prepared we prepare nothing. Very well. You have to truly just are gifted and talented. Yeah, you are. You just nailed. The music is playing. Facebook live and all of these ways to make a reality show. Its so much cheaper than ever before. Is that a competitive threat to the business . Not at all. Its about premium content. That takes time for Story Tellers to make it. Whatever medium it ends up on, theyre a client that creates quality content. Get the book. Appreciate it. Gifted and talented. Coming up, social media 101. Why ceos arent doing enough to benefit from platforms like twitter and facebook and how that can hurt their company. The subject of the new book the social business imperative. The author coming up next. Jake reese, day to feel alive jake reese, day to feel alive i like the idea of using Artificial Intelligence because were so short of the real thing. For the First Time Computers can see as well as humans. Average investing is certain to lead to worse than average results. One of the key Due Diligence items are what are we like. We generally fire a Company Every three to four weeks. Were always looking. Pretty much. Dow component pfizer out with earnings. 67 cents a share. 12 cents above estimates, revenue was also above projections. And then pfizer raised its fullyear forecast. You figured they would if they were 12 cents ahead. In this quarter. The stock is called higher as you can see. Up 1. 20. The market cap there. This is what we talk about. You think pfizer, huge. Huge huge 200 billion. 300 billion smaller than apple. Well talk social media. Companies across the globe missing a key strategy to boost sales. Calling for a new book to help top execs to appeal to the always connected consumer. 68 of fortune 500 ceos are not apparently socially engaged. Joining us is clara shih, the author of the book the social business imperitive. What do you want them to be doing . Theyre on twitter, theyre wondering why they are not seeing a return. The reason is because the way theyre using it is typically just for marketing and theyre scratching the surface. So i believe that social is everyones job. Starting with the ceo. The amount of time that i see the people who are successful at social online, its like a fulltime job. How do they do anything else . Its ridiculous. What ive seen you say before is you have to do it yourself, it has to be authentic. You cant outsource it to a social media manager. Its a lot of work. If youre supposed to run a company all day, how do you do both . Waiting for your cup of coffee. Standing in line waiting for a cab. There are lots of opportunities. Isnt that time youre supposed to be thinking youre supposed to be thinking about the next thing youre doing as opposed to sending out a tweet and making sure the picture looks nice an instagram. You dont have to take selfies but its a great way to get a pulse of the customer and really understand whats going on. What is the stuff they should be sending out . It depends on the business you are in and the audience theyre targeting. Right now ceos who dont go on even under a pseudonym are missing out. Theyre not experiencing the world as their customers do. Of all the social mediums, which one actually works . I think they have different roles. Facebook undeniably is the largest one. Would you even play on twitter at this point . Not necessary . Absolutely. It depends on your core audience. B 2 b, b to c. Snap chachat. Warren buffett and president obama playing on snap chat. I did my first real snap over the weekend but i still dont understand what im supposed to do other than stick my tongue out and make silly faces. Then you got it. You dont want a ceo to do that, do you. I dont get it. Its about customer connection. Ultimately whether its a ceo or a head of sales, its a frontline Customer Support rep, you have to be on these mediums that your customers are. They arent now. Facebook live . Should you be doing videos constantly . Video is a powerful way to establish a connection with your customer. The book is called the social business imperitive. On the board of starbucks. Too much ice in the drinks or not . Its up to you. As much as you want. You know what im talking about . Yeah. Lawsuit over too much ice. So youre not getting really 14 ounces. This is like when mcdonalds apparently had the coffee that was too hot. It behind. Now theres too much ice in the drink. Thank you. This will be on the board topic. On the agenda next meeting. Coming up, thank you. Apple ceo tim cook telling jim cramer the company is always looking for new technology to acquire. Well be right back. Woah. Wow. Now i feel more like making a mess is part of growing up. Stop cleaning. Start swiffering. Shoshow me more like this. E. Show me previously watched. Whats recommended for me. X1 makes it easy to find what you love. Call or go online and switch to x1. Only with xfinity. Apple on a major losing streak, down eight straight days, the worst streak since 1998. Ceo tim cook defending his company. Were going to give you things that you cant live without that you just dont know that you need today. Well break down his exclusive interview with cramer about the stock, china and more straight ahead. Inside iran. A look where the country stands on the global stage. Oil, tech and leadership in focus, what the future holds for the middle east and more. Special report coming up. Its primary day in the Hoosier State. Could this be ted cruzs last drive to the ring . Counting down to the critical battle in indiana. The second 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 here on cnbc first in business worldwide. Im joe kernen along with Andrew Ross Sorkin and Michelle Carusocabrera. The futures at this hour down 140. Oil right now is 44, 45. I think it was slightly lower this morning. Its now down over a percentage point. That would be about 54 cents. This would normally help. Australias Central Bank CutInterest Rates to an alltime low of 1. 75 . The rbas first easing. Policy makers citing surprisingly low inflation and subdued wage growth as well as the uncertain global outlook. The decision was not expected. As a result, the aussie dollar fell sharply on the news, but australian stocks rallied more than 2 , but that did not move to europe, which is down and were down here. But we were up yesterday. Here is whats making headlines this hour. Drug maker pfizer reported quarterly profits of 67 Cents Per Share beating estimates by 12 cents. Revenue beat as well. Pfizer raising its fullyear earnings forecast. You can see the premarket its higher by 3 . U. S. Automakers will issue april Sales Numbers today. Analysts expecting an annual sales rate of 17. 3 million vehicles up from 16. 6 million in march. Health care Data Technology companies ims health and quintiles are combining. The shareholders will get. 4 of a quintile share. Would that be 8 that they now hold . I remember one of our anchors, quintilees. Theyll own 51. 4 of the combined company will have a Market Company of 17. 5 billion. Remember the alaumo. It bellies the truth. Apple right now. Falling for the eighth straight day marking its longest losing streak since 1998. Tim cook defending the company in the interview here on cnbc last night. More on that in a minute. Before we do that, dom chu joins us to break down the tech giants stock slide. Good morning. If we talk about whats happening with apple. If you saw the chart, down 27 over the past 12 months. Since it got included in the Dow Jones Industrial average. Its been a weight over the last couple of weeks. Since march 18th of 2015, the close then, apple still down about 27 . It hasnt had a great run since getting included in the dow. Looking at that versus the s p 500 a different story. Its the biggest weighting in the s p 500. The question becomes whether or not this type of downside medium over the medium to longer term takes hold. Tim cook was on with jim cramer last night talking about the idea that perhaps there are things to look forward to for apple down the line. Take a listen. Just had a actually an incredible quarter by absolute standards. 50 billion plus in revenues. 10 billion in profits. To put that in perspective, the 10 billion is more than any other company makes. So its it was pretty good pretty good quarter. But not up to the streets expectations, clearly. The most valuable publicly traded company out there, now maybe it does make more money than efsh everybody else but its the growth. 83 of analysts have a buy rating on apple. 15 have a hold and 2 , a couple analysts out there with a sell. Average price target 125 and change. Which means, joe, if we do get there, its 33 upside from current levels. Though even today we could be working on our ninth straight day of losses, guys, back to you. We pointed that we talked about going into the dow, great move. You take a company with a 700 billion market cap. Lets put it in the dow now. Put it in the dow now. Absolutely topped it out. Its not doubling from there to 1. 4 trillion. They put it in the dow after its up to 700 billion. This was in the cards. Its more indicative, right . If its that big of a company, it has to be part of the dow. Its a Big Industrial power, right . Expressed the universally loved everybody who loved apple already owned it at that point. There was no one left to buy it. Its been straight down since then. The next step is look at at t since it left the dow. Oh, no. That will prove everything. They put aig in the dow, thanks for that, right before 2008. The slide comes after the tech giant reportedly the first ever quarterly decline in iphone sales. Tim cook calls this an overreaction. When i read the stories, it seems like people think, its over. How could it be that you cant have this ever or the ecosystem but its dead . Yeah. I i think thats a huge overreaction. Look, we just had a actually an incredible quarter by absolute standards, you know, 50 billion plus in revenues and 10 billion in profits. To put that in perspective, the 10 billion is more than any other company makes, and so its it was a pretty good quarter. But not up to the streets expectations, clearly. Here now the it hardware analyst at Credit Suisse and john forte. We found you because so many analysts wont come on here, col b colbin. Whats your highest target. 150. You feel comfortable with that . The way i look at apple now is many things are hurting the share price are temporary. Over the next six or 12 months it can realistically reveerse. On the iphone side whats hurting it is the upgrade. Going forward i think its important to take into account the user base has significantly grown so that the rate of replacement remains 30 months. 95 of people replace iphone them. The units will recover. The value of this years number is wrong. Apple will be the First Company valued at 800 billion in the history of the world . Theyve gone through a number of firsts. Made the greatest ever product in consumer electronics. I dont see why not. Thats what they said when it was going to double, too, to 1. 4 trillion. What do you say the multiple is . The stock is trading at 9. 5 times pe. Has to go. Nine times earnings. Nine times earnings. Got to go up. The earnings stream is diversifying. One thing thats under estimated is this stock is valued like every other Handset Company. Every other Handset Company has gone wrong. Very few companies have the retention that apple have. 95 of users replace into another apple product. Once you buy an iphone or ipad, try to replace out of it. Its very difficult. It sounds like the underlying conversation we are having here is that apple is a phone company and thats it. For so long we kept talking about whether or not we were going to be adding another product, et cetera, et cetera. So now the story is its a phone company and its got to sell in china or else its not going to grow. The iphone has been so successful that its skewing everything else. I think thats a big issue for investors. For a while it was a mac company. Now, yes, it is an iphone company. They make the argument that its a Services Company. That argument doesnt software company. It doesnt really hold up for me, the services argument. Because a lot of the socalled services they have arent even real services, like app store sales. Thats more like Digital Retail to me than services. This is a phone company. Yes. But its a different kind of phone company in that they have specialization in software, in sort of some services that surround it. And they have really high loyalty. So you cant value it like you valued all the other handset makers, which, by the way, arent around anymore. Is there anything that you look around the corner and say these other folks really will upend what apple is doing. You look at googles android and say at some point it will be given Machine Learning and the deep engineering whoever comes up with a better keyboard, dude, because i have had it with the keyboard. It makes me crazy. Somebody will figure that out and that will do it. The way i have thought about what could cause apple to go wrong would be it may not always have the best smartphone or the best pc or tablet. They have the best computer experience. If you want the experiences together. In order to really disrupt that you require someone or a company or a platform to make a better pc, smartphone, tablet, to make it cheaper and no headache to move. That doesnt exist. I dont think that has to happen. Nobody made a better ipod. You could argue that apple made a better ipod in a sense with the iphone but it just sort of ran its course. I think the counter argument to what tim cook told jim cramer is the ipad. Cook was making an argument about the long runway for the ipad, sales will outpace the pc. People love their ipads. Thats true. But the ipad has been in decline for two years. Its possible that iphone units could rebound but revenues dont because the s. E. Selling at 400 starting price versus 600. What about india . This goes to the long argument where you say you have to go from 3 g to lte. That should propel a huge number of sales. We looked at it and said the average north american spends 600 a year buying apple products. Lets take all those people and a similar level of income and assume apple reached them and replicate the same success they had in china. This could add 95 billion to apple sales over the next five years. And two markets drive it. China and india. The question is does that work in india and china in the same way . In china hit has. The middle Chinese Consumer spends more on apple products than the american consumer. I would argue the dynamic affordability is there. What apple dont have there is the reach. They dont have direct retail presence. They have no local support. I think overall the margins will be stable because i do think the Services Business i think the Services Business in terms of gross profit contribution over the next three to four years can double. Do you ever look at charts . Telecom, were more fundamentalist. We have argued there is a trough valuation between 92 and 95. You one of those guys excited about Leicester Square . Leicester city . My team is Manchester United. I love how they you really have a team. Its like you either follow the team or you dont. My team, otherwise i dont think about it. Same thing here. Mets, right . Coming up, ted cruz thank you. Ted cruz and thank you for waking up early. Scrambling to remain in the gop race. Some fearing indiana could be the final blow from donald trump for the texas senator in his bid to be president. A preview of todays indiana primary is next. Later, iran stepping up its offensive in the oil market. Where our own Michelle Carusocabrera just back. The countrys change there and the countrys future role on the global stage. Squawk box returns in a moment. Welcome back to squawk box. Futures right now indicated down triple digits. Last we look it was 140. Little better. Down 123. On the dow. 15 on the s p 500. And the nasdaq down about 34 points. Candidates gearing up for a showdown in the Hoosier State of the results from a new nbc news wall street journal marist poll showing donald trump with a 15 point lead over ted cruz in indiana. With 49 of likely republican voters. Also got bobby knight and lou holtz. Ted cruz is a debater and he thinks he can win every debate so every tv nbc nightly newssh arguing. Kasich has these guys right where he wants them at third with 13 . Things are going perfectly, according to plan for the nomination for kasich. In the democratic contest Hillary Clinton has a slight lead over Bernie Sanders by a mere 4 . Joining us now former republican indiana Indiana Republican congressman and president for the club for growth. David mcintosh. And club for growth spent a lot of money, nevertrump is probably a fitting description for the club for growth. I dont know where to start the interview. Lets just say this. Lets say trump wins tonight and becomes the presumptive nominee. Do you take your ball and go home . Well wait and see. My advice to ted cruz is to stay in there because you never know what will happen with donald trump. We still think cruz has a chance to win indiana. Say for arguments sake that the polls go like theyre indicated to go. Are you going to try, like so many Establishment Republicans we have had on, are you going to say 2020 is not far away, were going to try to lick our wounds, minimize our losses in the house and in the senate, well never back trump and well give it to Hillary Clinton . Are you willing to say that . Will you vote for trump or clinton . I wont ever vote for Hillary Clinton. Its everyones duty to vote as a citizen, so you would vote for trump. He would be the republican, thats probably the case. A lot of you guys would not in club for growth. We talked about that last time i was here. Look, were doing Everything Possible to make sure thats not the choice. Since i think cruz is a lot better youre not succeeding news flash its not going to happen. The polls in indiana are mixed. Last week one showed cruz up you sound like bagdad bob. Like you got the americans right where you want them we poll it every night through one of the other super pac s. 25 of people are truly undecided. I dont understand why john is in there. It hurts cruz. It has. If its headtohead more republicans vote against trump than vote for him. Its still the case. He claims he has 10 million because hes from ohio. He claims he has 10 million. 13 million have voted against him in the primaries. They know hes going to lose. They know hes not really a smallgovernment republican. He says when he talks about health care, well, the government will run it. All this is in the back drop of Hillary Clinton. Whatever he says and on the other side you have Hillary Clinton. Trump is the only one that lets hillary win. The first two blackjack cards. You got two cards. You can keep giving them back to the dealer and saying unhunh but those are your two cards. You have one hand. Why are you so convinced that trump cant beat hillary . If the world, the whole world, is antiestablishment right now, there is nobody more establishment than Hillary Clinton. Youre right. I would say dont put hillary in charge of the country. It will be a disaster. No. But you dont think trump can beat her. Overha half republicans don want him. Many will come around and vote for him. None of the democrats will vote for donald trump. Thats not true. Look at union members. Union members are voting for trump. Typically those are what we used to call reagan democrats. They vote republican in the poll. If you dislike trump so much and dislike hillary so much, you dislike both so much it would be tempting to vote libertarian. Here, here. What do you think happens under trump that you hate and what happens under hillary that you hate . I am a smallgovernment individual liberty guy. Both hillary and donald trump say the government should run the health care system. Donald trump says, yeah, ill raise taxes if we need to to pay down the debt. Hillary says yes, if you think obama is too squishy, ill move further to the left. I think in the end she goes back to the center left democrat that she was. Both of them will try to use the government to solve every problem that comes their way. I think the best way to solve those problems is have a robust private market where people are competing and you get folks like apple and other people thinking of new technologies, new ways people say trump, you know, didnt build a great business, is not a great businessman. They say all that. But he did operate in the private sector and make decisions as a ceo yeah. That okay. Just that should be enough for and you you give hillary the benefit of the doubt that shell tack back to the center. You cant give trump the benefit of the doubt that he would have smart people around him that might be smallgovernment minded, might be less intervention, lower taxes, less regulation just for business . If he is a private sector guy and wants to lower the Corporate Tax rate, our own larry kudlow says he has a good tax plan. I cant believe youre 51 trump and 49 hillary. For a republican thats not an accurate portrayal joe, i come back to the better choice is ted cruz, who we know will shrink government. The better choice might be well see what happens tomorrow in indiana. I know a lot so thats the contested convention. Obviously he has he has got a Vice President but he has no path to the nomination with delegates. Unless there is a contested convention. Right. I think if he wins indiana i predict we will have a contested convention and ted cruz will win it. There is still a long way to go. Will you be around on thursday . Ill come back. Ive eaten my words before. I bet bob is dead. We cant get him on. The alternative is very bad. What we really will do at the club is go back to focusing on our senate and house races. He says you asked him for money and he didnt give you any. What he wont tell you, joe, is he invited me up to his office and said, what can i do for you . I think he was trying to give us money to keep us out of this. We said we dont agree with you on taxes and trade. It really comes down to donald trump doesnt understand what the president does. He is not the ceo of america. He runs the government, and the purpose of the government is to protect us but let everybody be free to pursue their dreams. At least this guy has run something, right . I agree. Trump is better than obama. Really . I anyway. I understand you you hope he wins because thats the only way hillary has a chance to win. The bern is out, so try the superior hold. Of fixodent plus adhesives. They help your denture hold strong more like natural teeth. And you can eat even tough food. Fixodent. Strong more like natural teeth. Fixodent and forget it. Whoa. Whats going on here . Oh hey allison. Im val, the orange money retirement squirrel from voya. Val from voya . Yeah, val from voya. Quick question, what are voya retirement squirrels doing in my house . Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . No, im more like a metaphor. Okay, a spokesmetaphor. No, im. Youre a spokesmetaphor. Yeah. Ok. See how voya can help you get organized at voya. Com. Welcome back to squawk box this morning. Among the stories front and center at this hour, vanguard investors got what they thought was a pleasant surprise, an application glitch causing some clients to see balances greater than what they actually had. When their accounts were displayed on apple devices the actual account balances were not affected. I was worried about the opposite happening, though. Of it going to zero. Teen apparel retailer is planning to file for bankruptcy this week. Plans to close more than 100 of its 800 stores. U. S. Auto makers out with sales this morning. Well hear from Fiat Chrysler next hour. It will post a 4. 6 increase compared to a year ago. How many pairs of cargo pants can you own . Cargo shorts . I am not allowed. That explains everything with aero postal. What was the alltime high . That was something we used to talk about in a list of retailers that was working fine in malls. The three are okay. American eagle. Aeropostle and Abercrombie Fitch. The stock is at 3 cents. Sad. Thats what happens. I wonder what the high was at one point. I dont know. I have to go buy cargo shorts and them them out. Its all on you. I saw someone wearing them the other day and said, im going to get me a pair. Why do we like them . There are pockets. You can put stuff in them. Long or short . I like them long. Right below the knee. The Fashion Police dont are they fashion shorts . I have had the long pants. I have too. I am not allowed to wear those either. Are you talking about long shorts . Long shorts and pants. I have lots of cargo. I love cargo but i am told i am not allowed to. Doesnt your wife want you to be happy . You should ask that. Dont you want me i do all the time because i dont dress very well at home. If laura is watching and you want to call in and join the conversation, she is welcome to do that. We can talk cargo shorts. What about yelp. Its not good new york fashion. Speaking of yelp. Were yelping. The cargo pants are probably rated on yelp. Hedge fund manager disclosing a new investment in, yes, yelp. In a letter to investors einhorn says it could double revenue. Shares rising 4. 5 . Einhorn also telling his investors he has made new bets in natural gas and positions in green banks. Greek. Greeks banks. You need glasses. Not really glasses. Greek banks are not green. Financial Services Company delta lloyd as well. Joe. Harsh words on Valeant Pharmaceuticals from Warren Buffett and Charlie Munger yesterday on squawk box. Buffett said, i dont think you would want your son to grow up and run a company in the manner that valeant was run. It would be better than like if he was a heroin addict. Hes running a company at least. Is this relative . Berkshire vice chairman Charlie Munger called the drug maker a sewer. Hedge fund manager bill ackman defended his stake in Valeant Pharmaceuticals yesterday on the halftime report. Company has made some mistakes. I think where munger is wrong, hes wrong to indict an entire company on the basis of a few mistakes and, you know, a leader that is no longer with the business now. Shares of valeant have tumbled nearly 70 . 70. 70 this year. Im just back from iran, guys, you were kind to have me on the show last week. I was nervous. You were nervous . Im over here sitting in new york and i was nervous. You are intrepid. Its not that scary a place. You read about how come we always hear about people that go to jail, yeah. They do put journalists in jail. Did you bring a phone. We brought a burner phone. A burner phone . It was to look at the economy, really. Would you call it a beautiful country when you were there . Yes. Youre surrounded by snowcapped mountains. You ski until june in tehran, it was amazing. Not that you would investigate such a thing, but is there any night life or its behind closed doors. Dancing or alcohol . It has to be behind closed doors. If youre caught with alcohol three times you can be executed. Come on that being said, you a westerner even . Not that many westerners go. They only had, you know, 3 million, 5 million tourists last year. They probably avoid iranians drink alcohol, a lot of it, behind closed doors. No kidding. Yeah. So what about hotels . Theyre all almost government controlled. There is one Foreign Hotel that opened up three weeks ago near the airport, which is an hour and a half outside the city, which brings us to the story that i am trying to do here which is to invest in that economy, still incredibly difficult even though sanctions have been lifted. The Financial Action task force still thinks its abetting money laundering. The state department thinks the government and banks there fund terrorism. There is this issue i interviewed an economist who served time in prison. He is now running a bus manufacturing company. The bane of investors over the world. The main problem has been and will be mismanagement of the government. Mismanagement by the government. Just you have so many quasi government institutions that control various businesses. Its tough. In its a theocracy, too, isnt it . It is. Right . Supreme leader ultimately decides everything, yes. Even there, theyre meddling too much, the government. In the private you could oh, yeah. Could a theocracy ever be you have different incentives besides pleasing a shareholders. Lets talk about irans transition into the Banking System. A senior associate of the Carnegie Endowment for international peace. Thank you for joining us. Do you take issue with anything said here . Whats your assessment of the iranian economy and its ability to move forward . I agree very much with your observations from iran that its very difficult to run a modern International Economy when you have a country which is really governed by an unelected theocracy. And iran is a country, is a society, with enormous potential. Its a very old civilization. Very Strong National pride in a region which is unraveling. Enormous human capital. But as we have seen elsewhere throughout the world, you can have enormous potential but if you dont have the right leadership, that potential will be squandered. So i am skeptical that iran is really going to manage to take its economy off the ground and become an emerging market which attracts global capital. When i interviewed the head of the central bank, he told me that they are meeting with the Financial Action task force. This is an International Body that looks at whether or not there is enough antimoney laundering laws in a country, whether or not a Banking System is financing terrorism. And iran remains one of two countries on their black list. Its north korea and iran. The fact that theyre meeting, does that give you hope that theyre going to change, or is this just a show . I dont see any signs that kind of the longstanding principles of the iranian government, theyre contemplating changing those, which is opposition to the existence of israel in support for groups like hezbollah and Islamic Jihad groups. The official slogan of the iranian government remains death to america so its difficult to establish a thriving economy when your slogan is in opposition to the most prosperous economy in the world, the United States. I have no doubt that there is enormous desire on a popular level to be part of the global economy. I always say iranians want to be south korea, not north korea. Even though you have a quasielected establishment, president rouhani who i believe sincerely wants to put the countrys national and economic interests before ideology, but we should never underestimate the power of that deep state, these men who operate in the shadows. You dont really see them when you go to tehran but theyre very much there. I was just thinking that the i mean, its gotten to where the revolutionary elements in iran, if i were them, i would think that the world has come in many ways to my viewpoint. I wouldnt think that theyre going back to the prerevolutionary iran like the shah anytime soon. I theocracy. The middle east many would like the whole place to be a theocracy, right . An islamic state. I do feel they feel pretty confident at the moment. If you look at much of the middle east its in a state of upheaval and iran looks pretty stable in comparison. And frankly, when you see the amazingly cruel things that Bashar Al Assad is doing in syria with the support of the iranian government or isis is doing, irans behavior doesnt look so bad in comparison. But at the same time, i think that, you know, iran is not going to be its going to be a place where western companies can sell their products and western companies can buy iranian oil, but i dont see the iranian government creating an ecosystem in which iranian entrepreneurs can thrive the way they have thrived in a place like Silicon Valley. They want kind of the results of Silicon Valley, but theyre not willing to foster an environment which is conducive to those types of results. It is weird. Dealing with bankers in oth countries and Global Business people and, you know, you end the phone call. And death to america all right. See you later. How do you do that . How is it possible to i hadnt even thought about that, but its thank you, karim. Great to have you on. Indrandrew, you have to emba the cargo. Thats what the kids told the father. Dad, embargo the cargo. No cargo shorts, cargo pants . Yep. Coming up im going to Abercrombie Fitch right after this. Huffington post joining forces with the Media Company combining Virtual Reality with news events. The companys cofounder joins us. Todays guest host aol ceo and chairman Tim Armstrong. He is owner of aol and the Huffington Post. Well be right back. Actions. They speak louder. We like that. Not just because were doers. Because at sheraton, were changing. Big things. Small things. Spur of the moment things. Changes youll notice. Wherever you are in the world. Stocks to watch this morning. Aig reported quarterly profits of 65 Cents Per Share, 35 cents below consensus. They saw a short fall in income from underwriting and investments. Viagen is spinning off the hemophilia business into a separately company to be named at a later date. John foxx will be ceo of the new company. Texas road house Beat Estimates by quarterly profits of 50 Cents Per Share. Restaurant chain also on pace for better than expected comparable sales for the current quarter. When we return, Tim Armstrong joins us along with the ceo of ryot. Is uber wimping out when it comes to taking uber public. Travis was on the show last week and had this to say. This is about building a company. Its always been that way for me. I have said even on cnbc that were going to take as long as we possibly can to go public. Will fred wilson join us. To respond. Talk uber and other tech ventures. That interview straight ahead. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. announcer need to hire fast . Go to ziprecruiter. Com and post your job to over 100 of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. announcer over 400,000 businesses have already used ziprecruiter. And now you can use ziprecruiter for free. Go to ziprecruiter. Com offer6 welcome back to squawk box. Aol acquiring ryot. Linking content to action. The Company Joining the Huffington Post to bring films, linear video and content. Joining us now with more, a man who has been up perhaps a little too late last night. Guest host for the rest of the show, Tim Armstrong joins us. Aol chairman and ceo. How are you . Andrew, nice to see you. You brought a lot of guests with you. A lot of guests coming. But the most exciting thing here is vr this week with really the new fronts this week. Its nice to be here. Thanks for having us. I saw joe at the white house correspondents dinner. In the bathroom. It was weird. Right. Right. There was a line outside. There was a line. To the bathroom. Could have made a good vr movie about it. Here is what i want to know about vr right now and your interest in why you bought this company. Everybody is talking vr. Virtual reality. Virtual reality. Dare i say, it doesnt feel like its ready for prime time yet. How far are we off, and how much of this is a bet for the future, not for now . Even though its very sexy, dare i say, to do this at the upfronts and all of that. First, its about consumer well talk about where hes been and youll see why its been very important. Virtual reality, its time is right now. Part of whats extraordinary is this is a mobile first technology. Were out of the headset. You see facebook 360. Youtube 360. This is in everybodys pocket right now. I think thats the breakthrough. Were seeing a fundamental platform shift in the way that people can consume video. Thats what we have been excited for the last year and a half to be pushing the boundaries with news and journalism for that. When everybody talks about this in the context of putting on the headsets or the Google Cardboard headset when we talk about oculus. In terms of describing it to our audience, thats not what were talking about. You think the immediate opportunity is different. I think the headset experience is terrific. When people put it on for the first time theyre transported to the center of one of these stories. They can see scale, scope of disaster, see news as never before. Its immersive and pretty extraordinary. What were excited about is how we not only create content for the headset but also for the consumer on their mobile phone. If somebody is watching right now and they go to ryot. Com, theyre not going to you, right . Theyre going to a company that sells products. Were ryot. Huffington post. Com. We were ryot. Org before. Youre not worried about brand confusion . Not so far. How much of the opportunity in terms of the way you both think about it is in simply the way we consume the news versus right now there seems hottest thing going, every advertiser and marketer wants to build some type of vr experience. On the business side of this, the reason bryne and his team are interesting is you look to 2025, there will be 500 Million People a year buying vr sets, being involved in vr. And from a business standpoint it will be a 25 billion to 50 billion industry. If you look at the advertising segment right now, its the number one thing getting discussed at the advertising new fronts. 240 billion Digital Business right now for advertising. Vr is the number one topic this week. And so bryn, talk about ryot studios. People remember the first time they have a vr experience. For a brand, thats a powerful thing, to give somebody the First Experience in vr. They remember that. Part of the extraordinary thing about vr is it sort of registers as you are not just watching a digital video. You are having an experience. So that sticks with people. We have had incredible success up until now with Brand Partners whom were creating custom content for. Now were able to distribute it more widely and bring in more brands. Whats the barrier to entry in this market . It feels like, if you can just get the technology, you have the camera and know how to use it, everybody seems to be jumping into this space. I think the barrier of entry right now is high because the cameras are complicated cameras. Every single day they get easier and easier as people are able to make that technology easier to use. But right now its most of the cameras are a bunch of gopros cameras on a 3d printed case. You have to take the footage, shoot around and stitch it together. Our whole postproduction transformed to handle this. Creating content can be very expensive. Are you getting enough advertising dollars to offset what is the cost at this point . Its been pretty wonderful for us. Brands are so excited to be able to give people an entirely new experience, one that they can be inside of. And so were really, really busy. Now even more so. You will always need disparate lenses to merge it together for vr . There is no way to take one shot and use some kind of algorithms to figure out what it would look like from different angles . The easiest ones now are two cameras which each have a range of 190 degrees. So you only need two . Yes, but theyre not to the quality point that will be the ultimate when you have two cameras that shoot in 4k and selfstitch. Thats some months away. You are an advertising guy. Right now you can charge enormous premiums for this type of advertising, at a time pre Programmatic Advertising and others are commoditizing the business. I see the attraction. Do you worry that this becomes commoditized too . I dont think so. The business that ryot has created it about differentiation. Theyve shot vr in 40 countries across the globe. If you look at where advertising is going, andrew, advertising is really about scaled experiences and data. Scaled experiences are something that ryot has brought to the table for the last four or five years. They were nominated for an Academy Award this year. When you talk about true scale and differentiations nothing is bigger than mobile and video and where vr is going. If there are going to be multiple Virtual Reality sites, which i assume there will be, what is your curation about your storytelling is any better . We have journalists all over the world. Right now one of the things were launching together is Virtual Reality production in all 15 of the international b bureaus of the Huffington Post. What weve brought to the table is a lot of great docu style journalists and film makers. People who shoot on the ground and come in thank you for coming in. We need to do squawk in the round. Venture capitalist fred wilson will talk to us about startups. Uber ipo and the state of technology. Right after the break. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing market alert. Under pressure. Futures pointing to a lower open on wall street as Global Growth concerns spook investors. Is a tech bubble brewing . Not if giants like google, facebook and aol have anything to say about it. How theyre teaming up to keep things going in the big apple. Our special guest this hour, aol boss Tim Armstrong and Venture Capitalist fred wilson. Jared leto in the house. Music, movies, investing, is there nothing this man cant do . Well find out as the final hour of squawk box begins right now. You cant break me down live from the most powerful city in the world, new york, this is squawk box. Welcome back to squawk box this morning right here on cnbc, first in business worldwide. Im Andrew Ross Sorkin along with joe kernen. Michelle carusocabrera is hanging with us today. Rebecca quick will be back tomorrow. In the meantime Tim Armstrong is here. We have a lot to talk to him about. Were less than 90 minutes away from the opening bell on wall street. Looking at the futures right now. Things looking down. Dow off 120 points. S p 500 looking to open down as well about 14 points. Nasdaq looking to open off about 30 points. European markets as well, youre looking at a down round across the board this morning german dax off 2 . Cac off 1. 5 . Ftse 100 off a percent. Oil prices under pressure. Rising output from the middle east and north seas renewing concerns of oversupply. Australian bank cut points to 1 . The first easing of the year. Worried about deflation. Low inflation, subdued wage growth and an uncertain global outlook. Eu trimming its 2016 forecast to 1. 8 from 1. 9 . The eu inflation forecast also getting cut. Stocks to watch. Pfizer posting better than expected earnings and revenue. The company also boosted its fullyear earnings forecast as it integrates its hospira acquisition and boosts sales of new cancer treatments. Biagen spinning off the hemophilia business as a separate publicly traded company. Aig falling short of estimates seeing a shortfall in income from underwriting and investments. The ceo joins squawk on the street. A legendary tech investor is teaming up with our guest host for a new policy lobbying at Technology Friendly policies. Names like uber, ebay, snapchat and airbnb joining the fray. Fred wilson joins us with our guest host Tim Armstrong, chairman and ceo of aol. Tell us about this. Then i want to talk to you a little about uber. Theyre teaming up with you. You had some tough words for travis, who we had on last week. Who had some tough words for you. Before we go there, tell us what this is all about. Tim called me maybe three months ago and said, weve got to get the tech sector more organized and more connected to the local government, state government, and i said youre right. And we found an amazing person named Julie Samuels to do it. We put together an Organization Called tech nyc. Tim is cochairing it with me. Well get as many Tech Companies in new york as possible to join it. What are you fighting for . Its really making new york city its the number two Venture Capital place in the United States right now. It was number four five years ago. So the work thats been done in new york city in the Bloomberg Administration and now into debladde blasio a great place for tech culture and code. Were focused on making it friendlier for Internet Companies. There are a thousand Internet Companies in new york city right now. What would make it fle friendlier . In the Business Community at large in new york city, mayor de blasio doesnt usually score high. Were with him. We have spent time with him. We have an opening tomorrow night for this venture. Hell be there. Fred and i, i think, are probably less concerned on who the mayor is right now and more concerned about where tech is going overall. The city has made an amazing movement. I think de blasio is behind it and supportive of it. Weve spent time with him. We spent time with bloomberg when he was mayor. In terms of particular policy choices that you are advocating for, they would be what . We need more talent in new york. We need to build up the local talent pool, and we need to have policies that allow our companies to recruit more talent to new york. So talent is number one. If you talk to any ceo, anybody in any of our companies, they want to so new york city should do what in order to do that . The first thing it needs to do is focus on the local people in the city, getting them the training they need to work in the tech sector. Whether thats k through 12 education or higher education. You have a lot of Great Colleges in this town. So Charter Schools . Is that part of it . Getting charters more focused on tech skills would be great. That would be great. Anything that can create a more knowledgeable and skilled work force in new york city is the number one thing. I remember you, though, critical when de blasio potentially went after uber and then pulled back. Did that i think did that create a chill at all in the Tech Community . I would think you would have been critical about that . Shouldnt you have been critical about it . Really . Really . There is an event with de blasio tomorrow so let me just say that we had regulation on the hired car business in new york city for a hundred years. There are rules about what taxis can do and what limos can do. There need to be rules about what uber can do. That makes sense. Talking about uber. As i mentioned this was about limiting uber. It wasnt about rules. It was about maintaining a vested interest you limit how many cabs are on the street. Which they shouldnt. The reason they do that is that, back in the depression, everybody was driving, and you couldnt get around the streets of new york. The depression is over. Time for updating the reg layin regulations. You need a limit on how many people are driving around. Its set by the market. Its not set by the market. Because we have a medallion system. Thats why its not set by the market. Its a longer segment of debate. Given that there were the battle of words between you and travis, if you will, you suggesting that travis needed or needs an ipo. I didnt say he needs. I think it would be great if some of these top Tech Companies like facebook before them and google before them would come public and create the possibility that people, American People, everybody, could own their stock. Thats what thats what Tech Companies should do. The best Tech Companies should go public. Aol went public. Okay. Great Tech Companies should be Public Companies. Thats my point. Where do you stand on that . I think i agree with fred that the ecosystem if you look at the ecosystems built around these companies after they go public, theyre big. If youre travis, you make Business Decisions based on how much you are spending and investing. Its tough to be a Public Company if youre investing a lot and you havent gotten the profit machine going yet. Freds point is basically having these companies go public explodes ecosystems around them. Even with the venture we are launching in new york city right now, if you look at the companies that are connected in new york city, many came from companies that were prior Public Companies where executives spun off, entrepreneurs spun off, and its a really we hear the Public Market has effectively broken in that it creates perverse incentives where somebody like travis. I have watched companies go public. Its a good process because it creates wealth. Those people can start their own companies and hire people. Capital formation, Wealth Creation is the backbone of the american economy. Going public is a big part of that and always has been. If we start saying were never going public, our best companies will stay private, i think thats bad. Do you worry that some of the companies missed it . Straight up economic, where we are in the cycle perspective, that it would have been better off doing it a year or two ago i think if uber went public today they would have a massive ipo. People talk about unicorpses. Down rounds. When you are talking about companies that are falling apart. Youre talking about companies that didnt have good businesses in the first place. Some companies have great business. Uber and airbnb have great businesses. Over the last four or five years, some of the companies were more concerned about the valuation rather than their business. You see the unwinding of that right now. There has been a lot of success. Especially in new york and in california, obviously, there has been 27 exits over 500 million in new york. So the unicorns are getting a lot of press. Probably a lot of people raise too much money without great Business Models but that underlying ecosystem is still strong. I think fred is topping with the top of the ecosystem pulling it up. Youre on the record being negative about apple. Several years ago you said it wouldnt be a top three tech company by 2020. Are you feeling vindicated based on what youve seen in the last i am not rooting for apple to have problems. I just think the future of technology is more and more in the cloud, its more and more in Machine Learning and a. I. , not in the devices. Its more whats going on in the cloud, and i think apple has not really invested there. Theyre very much a Hardware Company and a Systems Software company. And i think the future of tech is looking more and more, to me, where Companies Like amazon and google are going. They would tell you they are a platform company. What you hear in the valley constantly is, in terms of the deep engineering work, bigchallenge stuff, Machine Learning, a. I. , its all being done by the facebooks and googles and microsofts of the world. I think microsoft has done a great job in the past couple of years turning that business around. I think whats going on there is amazing. Do you think, two, three or four years out that that will be the undoing to the extent that you think apple is not doing it . I have heard people make the argument that apple is ultimately one of the greatest fastfollowers in the world. Can they do a selfdriving car . Can they catch up in that world . Thats where the world is going, right . Its not going to just be, you know, a device. Its going to be everything in your life. Its going to be refrigerator, your car, everything is going to be having software in it i am an apple the devotee. Its hard for me. You were an investor earlier in tumbler, which was sold to yahoo. How troubled is it and where do the negotiations stand . I said this on this program before. I think yahoo is a Strong Company with hundreds of millions of global users and has really good platforms. Right now yahoo is a separate Company Making their own decisions but the process theyre in right now for our sized company is makes sense to look at it. I would be interested in freds take on tumbler and some of the aet cetessets there. You always wanted to buy this. There was speculation for a long time that you wanted to buy this company and she never wanted to merge with you. Marissa mayer. All the rumors predate me by many years. Since before i got to aol. I would say this. Everybody loves drama camp in the press when she is assethesee up. Lets do it right now. It predated him. There was a period where i thought you were trying to buy her or she was trying to buy you, but she didnt want she thought aol she thought aol had a bad rep. False. By the way, look, aol was the worst merger in history. Had a bad situation. We turned it around in 2. 75 years. Company had the best quarter ever, q 1. If people didnt look at aol a few years ago and said, hey, this Company Might be troubled. Its different today. Just last week. Negative 8 billion. They described how you would have gotten to that. Are you disappointed as somebody who invested in tumbler that rolled into yahoo. I think yahoo has done good things for dutumbler. If somebody picks up yahoo theyll get a gem there. I think tumbler is one of the few properties on the internet that resonates with the teen demographic. You have snapchat, tumbler, kick. Fair or unfair to be as critical as the press has been and analysts have been thus far about yahoo and Marissa Mayers leadership in particular . Tough for you to say . The companies, the situation i was in, the company marissa got into. Its a rodeo. Those are Big Companies that have lots of issues and lots of problems. The the aol situation was a situation, worst merger in history. Had the brand. It was better for us to be underestimated. Yahoo is in the middle of Silicon Valley. It was probably overestimated in terms of how quick things would happen and what was possible . Did i miss something . I thought the gorilla in the room was if and when you get yahoo what do you do with it . I wont make comments about yahoo. But we have been very clear on three things. Our strategy, our structure and our cost structure. Thats what allowed us to turn the company around in a little over than two and a half years. Our strategy has been content, advertising, Programmatic Advertising, vr you saw this morning. Were big in media and want to be the Worlds LargestMedia Company. What a troubled company like yahoo help with that . We have big 2020 goals. We want to get to two billion users, tens of billions of dollars in revenue. Im looking at any asset we can to get us in that direction. The verizon ceo said on cnbc its the type of asset we would be interested in. At a high level thats the statement. At a low level you have to go in and do your math and homework. Still an open question. The elephant in the room . Or the gorilla. Or the 800pound gorilla. Or the 800pound gorilla in the room. Great minds. This show is a walk in the cake for you, isnt it . Wait a minute. Cake walk. Thank this gentleman, the one and only fred wilson joining us this morning. Thank you. Thank you. Stick around. Youre sticking around, right . Fantastic. The nations automakers reporting april sales. Phil lebeau joins us with expectations. April sales were relatively strong. We could see alltime record highs in terms of total sales in the month of april. The real question is what was the sales pace . Well talk about that in a bit. Here the individual automakers and the expectation of those who will be up slightly or those in the case of General Motors who will be down slightly. Three things to look for. What happened with fleet sales. Certain makers, ford in particular, ramping up fleet sales in the past few months. You dont want it to get too high. Incentive spending. Its been moving higher. Is it to the point where we start to see some of the crazy deals coming into the showroom . Strong april sales as i mentioned at the top. They are expected. Many believe well see a new alltime record in total, total number of units topping 1. 51 million vehicles. You look at shares of the automakers. Theyve all been getting a bounce in the last week and a half or so after strong earnings reports from General Motors and ford. Well see what happens later today. The sales pace, 17. 1 to 17. 3 million. Thats the expectation most people have for last month. Thank you, phil well be watching all day. Coming up, much more from our guest host aol ceo Tim Armstrong. We talked about someone was nominated for an Academy Award. Couldnt you get anyone who actually won an Academy Award. You do have one. Jared leto, an Academy Award winning actor. Someone who sold 15 million records for 30 seconds and mars. He is also a technology invest oi or. 50 startups. He has some of his own. Youre an acoliyte of his. At pg e, we believe solar should be accessible to everyone. Our partnership with habitat for humanity allows us to provide the benefits of solar power to the types of customers who need it most. Pg e provided all of the homes here with solar panels. The solar savings can mean a lot, especially for lowincome families. With the savings that i am getting from the solar panels, its going to help me to have a Better Future for my children. To learn how you can save energy and money with solar, go to pge. Com solar. Together, were building a better california. Welcome back to swosquawk box. A judge in brazil ordered Wireless Phone carriers to block access to whats ap. The reason for the order isnt known due to legal secrecy in an ongoing case. The buzz story of the morning, the people, the outfits, the red carpet. Highlights from last nights met gala. We do it next when we return. We got another one. I have an orcogram for an owen. Thats me. You should hire stacy drew. She wants to change the world with you. She can program jet engines to talk and such. Her biggest weakness is she cares too much. Thank you. My friend really wants a job at ge. Mine too. Im a wise elf from a far off shire. And sanjay patel is who you should hire. Thank you. Seriously though, stacy went to a great school and shes really loyal. You should give her a shot. Sanjays a team player and uh. You wouldnt order szechuan without checking the spice level. It really opens the passages. Waiter. Water. So why would you invest without checking brokercheck . Check your broker with brokercheck. Soccer championship you have to pronounce it again. I know how to say it. Leicester. Decided by two tie games. Youre kidding. 00. Out of the simpsons. After a draw in the match against Manchester United on sunday doesnt nbc do a bunch of soccer . We shouldnt make fun. Awesome. Leicester city played the role of spectator monday. The foxes. Hoping chelsea could tie or take down tottenham to help to secure the teams first ever premier league title. The spurs were up 21 before chelsea fought back with this gametying strike in the second half. The game ended 22, so Leicester City wins the English Premier League title, capping off what might be the most remarkable run in a major sport winning the title as a 5,000 to 1 underdog. That is exciting they spelled leicester i dont care what Homer Simpson says about does he talk about soccer . They went to brazil and he said, oh my god, this game is so exciting. Its tied 00 all right. Nbc. Its great. It was a futuristic, starstudded evening at the metropolitan museum of arts annual blacktie gala. The ball centered around the idea of fashion in an age of technology exploring the relationship between clothing created by hand versus machine. A wild designer gowns covered in beads, glitter and metallics flooded the red carpet. Apple served as sponsor and ceo tim cook walked the red carpet with steve jobs widow. You were there. You were not there . Ive been there before. Not last night. You couldnt get a beautiful beaded gown . Or you were unable no. I wanted to wake up early so i could be here on time. You have never been . I have never been. Its on your bucket list. I dont i was just saying, i dont know if its on my list. I suspect it might be on my wifes list. I maybe i have to work on that. You still have a bucket list. I have the things that rhymes with it. Thats what i have. Thats the seinfeld joke. You get to a certain age. You want to do that . No. We didnt say anything about the keyboard. Big show. Coming up, putting america to work. The ceo of fastfood chain sonic joining us to talk jobs, economy and state of the consumer. Special guest, Academy Award winning musician, tech investor and all things. Jared leto in the house. Stay tuned for an entertaining half hour of squawk box still ahead. Alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. Hes a stranger to some and a vision to none he can never get enough, get enough of the world its hard to admit how it ends on his face is a map of the world map of the world were having mike problems. We fixed it. I have two mikes on now. Which is even better. Completely. Thats good. The clip is actually keeps hurting my tie. Thats bad is your tie squeaking about it . Its in pain. Its ruined. Its so tight that it snags every time it goes on. Welcome backs to squawk box. Looking at earnings reports that have come out. Cvs Health Beating estimates by two cents with quarterly profit of 1. 18. Increased demand for the companys pharmacy management benefits services the key driver. Coors earning adjusted 50 cents a share for the most recent quarter. 11 cents above estimates. Bottom line was improved lower demand and lower costs. Clorox earned 1. 21, 11 cents above estimates. Raised the fullyear forecasted sales and market shares. What . Fly babies . Babies on flights . Were going to talk about that in a minute. Dont worry. Well call your personal shopper at bergdorfs and get you a new tie. This was a vineyard vine. Check this out, people. Jetblue changing the way passengers see crying babies, as part of a special onetime promotion in honor of mothers day, the airline offered a 25 discount to passengers on a flight from jfk to long beach, each time a baby started crying. The end result, passengers cheered when babies made noise. Four crying little ones meant every passenger earned a free roundtrip ticket. I think thats a its a fun thing to do. I can appreciate that given my views on crying babies. I fly way too much to enjoy crying babies. Sonic launching a new initiative in the name of education. The nations largest chain of drivein restaurants committing 15 million to Public School classrooms over the next five years. Joining us to talk about the initiative, cliff hudson, chairman and ceo of sonic. Good to have you here. Good to be with you this morning, michelle. Thank you. The cynics watching will say youre doing this for politically correct reasons. Tell us why you are investing in education. We have had a relationship with donors choose. Org for seven or eight years. Now were increasing the amount were supporting, 3 million a year for five years. My late mother was a schoolteacher. My twin sister a schoolteacher and i am very involved in public education. Nothing cynical about it. Teachers across the country come out of their pockets to support their classrooms. What were trying to do in every community in which we do business is to help the teachers in the classrooms. They go online to donors choose. Org. Make a application for a grant. Well do 15 million over the next five years. Very much about the communities in which we live and where we do business. We want to talk to you about the minimum wage. And the recent hikes that weve seen across the country. The Supreme Court declining to consider a challenge by franchisees to parts of a seattle minimum wage law that will eventually raise hourly pay to 15 an hour. What does that do to your business . Thats a bit of a challenge. Well see what happens over time. In cases where this has been done by and large these are being staggered or staged over time. So our expectation, were meeting with franchise leadership this week, as a matter of fact, on a variety of issues. One of the things well lay out for them is a model that they can consider on how they would have to raise prices on an annual basis in order to offset these costs. So well we are working to confront it with our operators, make sure it does not, in the long run, impede their business. It presents a challenge. But i believe its one that we well have to confront but i believe its one that we can successfully deal with over time. The supporters of raising the minimum wage will say, all right, so what. You have to pay more for a burger. Big deal. Yeah. Well, i suppose thats that is one angle. It is somewhat inflationary. I guess for the individual whose pay goes from 7 to 12 over time, whatever the amount is, the increase, or if it is 15, for them they get 100 of that. So it outstrips the cost of the increase of a sandwich, a drink, whatever it is, whatever it is theyre buying. It is generally inflationary. These are challenging questions, i think, for our society about what is the appropriate amount of pay i thought you might say that it would hurt jobs. Wouldnt you be more incentivized to do more automation and therefore fewer people have the higherwage jobs . I think its morally ambiguous whether or not you have more people employed at a lower wage or fewer people employed at a higher wage. Do i have the math right . Does it eventually mean fewer people employed at the higher wage . Well, it will the higher the wage is and the larger a component labor is the more it calls upon us to attempt to explore all tern itti explore alternative ways to prepare food so you experience less of that cost. I can tell you up front its going to cause us to shift away from labor. If nothing else our model is not set up to do that. We do make to order all of our food and deliver it with carhops. The Service Delivery model is very personal and customized by customer. So it does present a bit of a challenge. I cant i cannot tell you it will cause us to lose jobs because i dont know that thats the case. The question is how much price elasticity we have in order to off set these costs. Well work with that over time. We cheered to hear the buffett meeting over the weekend supporting the idea of working at a fastfood restaurant and how it teaches you to show up on time and responsibility . It teaches you a number of things. Teaches you how to get dumped on all the time in terms of the types of jobs. It does. I think its kind of silly and unfortunate. The fact is they are introductory jobs for a large portion of our population. My first job at 16 years old was working in a restaurant. Its great in terms of teaching you about customer service, interaction with the public. They teach you about Free Enterprise system. If youre waiting on tables, you learn how tips work and how to satisfy customers. Our economy is largely a Service Economy, and a kid who spends 16, 17, 18, 19 years old working in that setting will be a kid who knows about the Service Economy and it sets a good stage for that kid for all their lives really. My first job was a waitress at pizza hut. One of my favorite jobs. Boy, did i learn about people and service. It was you sure do. Fantastic. You sure do. Cliff, what do you make of the argument that people make more and more that these arent even though we want them to be introductory, firsttime jobs, that a lot of people now they havent been able to climb the ladder. Yeah. Well, i think our you know, there is no doubt that our economy is in transition. The types of jobs that are available are very different versus 50 and 60 years ago. This is a bit of a challenge. The fact is, in our industry, the fellow who is the vice chair of our Franchise Advisory Council came in as a singlestore employee and ultimately the operator and now has about 70 of our driveins. The fellow who chairs the Franchise Advisory Council was a bread truck delivery man and now he has almost 200 sonic driveins and believe me he does extremely well. Is not in an introductory position in which he is engaged. These are paths people take. Introduction to a freemarket economy, introduction to a Service Economy. But they learn how to run businesses and they do it extremely well. Yeah. Thats great to hear. Terrific. Cliff, thanks so much for joining us. Good luck with the education initiative. Thank you. Thank you. I appreciate the opportunity to talk about it this morning. Thank you very much. We love a sonic burger. Delicious, right . Yeah. The worst burger is great. Coming up, friend of mine, really, from the white house correspondents dinner, man of the morning. Jared leto is in the house. Thats him. Cool this is from yesterday. Yeah. Hell join us when squawk box comes right back. You cant break me down welcome back to squawk box. Futures right now are suggesting that we would have a negative open following whats happened in europe so far this morning. S p would open lower by 14, dow by 128 and nasdaq by 32. Our next guest won an Academy Award for his role in Dallas Buyers Club is playing the joker in this summers highly anticipated suicide squad. Youre not in character right now, are you . Do we have a shot of the great picture, though . If i was, you would all be dead. We might be i dont know, have some disgusting items here. He is also lead singer and songwriter of the band 30 seconds to mars. No small feat. Plus one of his latest projects is a Digital Series he directs and stars in called beyond the horizon. He joins us now to talk about this. We dont have a whole lot of time to talk about all these things. Our guest host, Tim Armstrong, youre like a child star, first of all. All these guys start bands but they arent real bands. You have sold i have never been called a child star but thank you so much. I was younger, yeah. You were younger. But i am actually getting older now. I think i always looked young. Its funny, he gets aols ceo. Then you dont need to say anything else. You have to say a lot of stuff about me to pile it on to make it into something. When you are a bad ass like him when you are a bad ass like him, tim, ceo. Thats it. I can confirm at the white house correspondents dinner, jared was one table over. No one there needed an introduction to who you were. 30 seconds to mars is a great brand. Kevin bacon doesnt have an oscar or 15 million records sold. He is a really nice guy. I know he is. But 30 you tour globally. For five years you didnt take a role. Then you are particular about your roles. You take one and get an oscar for it. The point is youre multitalented. This is before we talk about your tech startups. Thank you very much. How Many Companies have you invested in over the years . I have about 50 investments and ive been really, really lucky. I work with some incredible, incredible companies. Its been its something that i started learning about about a decade ago. And its been a slow build and something that ive done really quietly and something i have been passionate about. I actually spend a great deal of my time in this world, and its changed my life. What was it that got you into it . You know, it was i think when youre in a band you have to you have to play a lot of roles, unlike when you are an actor you have a studio, and the studios are really great and allencompassing and cover things like, you know, everything from marketing to social media. When you are in a band you have to do a lot of those things. Either in conjunction with a label or on your own. So it put me on a path early on to be independent and entrepreneurial and it led me to the tech world. And how did you find the tech world what was your First Investment . Did you see the names, andrew. Airbnb. How did it happen . I cant give you my secrets, bro. Come on there are laws against that, probably. I have been very lucky. I do. I work with some incredible companies, uber. Airbnb. Slack, stripe. His own startups too. You have some of your own. I have started some companies. We the businesses that i have started are really a lot different than the Tech Companies. They, first of all, they usually have a Business Model right off the bat. And theyre smaller companies. Theyre not focused on massive growth and things. How do you think about being an entrepreneur relative to acting, music, what youre doing with when youre in a band, as soon as you its similar to a startup. You are a few people in a garage. These days normally around a computer, and youre using software to make something. So its really, really similar. I remember early versions of pro tools you had to kind of basically code in some of the parameters. Thats a software, joe. Thats really high performance. Youre betting on your dreams and yourself. Its entrepreneurial. So they bring you uber. You think, oh, maybe . Thats not how it goes. They dont bring me uber. I go beg for uber. So you begged for uber. I would say almost every investment i have made i have been incredibly proactive and aggressive. I have sought investments out. I have never sat around and just waited for them to come my way. Fascinating. Now, do you have some that got away or some that you wished you had gotten oh, yeah. Like what . Oh, i cant oh, the oculus guys. That got away from me. They wouldnt let you . I think it was it was it was probably maybe a little too late. Like maybe it was at a time where they couldnt i remember i went and met with instagram, i think, four days before they sold their company. Whoa. And i asked if i could invest. And they kind of like looked around and started giggling. I was like, whats so funny . Do any of the Companies Ever want to either trade on your celebrity or say, hey, yeah, we want you to be involved, but wed also like you were hoping youll do something with us . I think you have to figure out what youre good at and you have to offer that. If thats what youre good at, then thats what you need to offer because youre getting the opportunity for some reason or another. Right. Tim has Different Things to offer than me. But i generally dont do that. I am not signing on to a company to just be a spokesperson. Quick story. Last year you were at the vanity fair new establishment. Ron conway is a friend of ours. Ron before i met jared said there is jared leto. Lets talk to him. He is one of the best tech investors that i know. Not having met you before, i said, wow, jared he is already good at a musician. Actor. I know the things he does creatively. It was amazing to talk to him because at that event was all the insider tech people from Silicon Valley. Jared is one of them. So while he is an Academy Award winner, ask Silicon Valley hes just as comfortable and drives just as much value because he is on the front edge of all these tech investments. The show on aol, Second Season . Its a really, really amazing thing that i an opportunity that i have had. And i am really excited to do it with tim. I get to pick ten people from around the world. Thought leaders, people who have lived incredible lives. And basically talk to them about their vision of of the future. Last season we spoke to al gore. Edward snowden, jeff koons who i saw last night. He is one of my favorite artists. Jeff, if you are a fan of thif thinking about how human beings interact with art. Theyre short, 7 to 12 minutes long. Meeting snowden was fascinating and interesting, as you can imagine. So we have a great group of people lined up for the Second Season. Can you threaten Tim Armstrong as the joker . Would that be possible . In that voice . He is a strong dude. He could probably do pretty good against a joker. Threaten andrew, then. I feel like, if i go to that place, youre going to have to call i was going to ask you about that too. Is it like is it a meisner thing or no, no. For me, i i really dont use the word method. I dont really prescribe to some kind of technique. I do i just stay as focused, as committed and as concentrated as i can so that i can do the best job. In Dallas Buyers Club you were in that character 24 hours a day. He had 12 Million Viewers on his episodes. We need in him whatever method youre using tonight to be really effective. For all the folks who think they are multitaskers or want to multitask. How do you do it when youre acting, for example, and you want to be focused on that and i imagine have to take calls about these investments or something to do with the band or whatever i think theres a few things. You have to be really good with your time. You have to be incredibly focused on whats important, what the priorities are. And it took me a long time to figure this out. But you cut out certain things when youre acting, for example . Oh, of course. I mean, you have to say no. You have to get really good at saying no. I would hate to do all of these things, which are so great to be able to do. I feel really lucky, but i would hate to do them poorly. That would be ridiculous. Do you have another tour planned . Yeah, were working on a new album right now. Are you writing all the songs too . Yes. Your brother is a good drummer, too, is he not . My brother is, thank you very much. Hes the best. So hes got another tour. Yes. Other people like to be the joker, id like to be the joker. But i want to hear that voice. You are the joker. Avoid it. Come on, just one its a little too early for can you laugh . No, no, no. [ laughter ] hey, that was pretty close. But i worked on the laugh like Walking Around the streets in new york and toronto. And i kind of walk around the streets and see what laugh would like kind of get under peoples skin, you know, if you hear someone laugh loud at restaurants, try them out. And i kind of got to a place where i would laugh and people would always turn around like what is this creepy guy behind me. But anyway. Then you knew you got it right. Exactly. Thats great. Probably no beads. Fine. Thanks, man. I figured youre set. Well talk about that. The wall street journal, talk about you. Anyway, thank you. But that was all in good fun. I mean, it was all in good fun. It was. Nobody was taking it too seriously. Jared leto, thank you very, very much. Its great. The joker will be back with us every day. Cut the feed. Turn the cameras on, turn them on. Flz from hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Go to ziprecruiter. Com and post your job . To over 100 of the webs leading job boards with a single click, then simply select the best candidates from one easytoreview list. And now you can use ziprecruiter for free. Go to ziprecruiter. Com offer2 flip your way through your last 9 shows with the tap of a button. Change the way you experience tv. Xfinity x1. Welcome back. Jim cramer joins us now from the new york stock exchange. Killer interview last night, jim. Thank you. With mr. Cook from apple. Curious if there was one takeaway, what was it for you . Did he persuade you . Yeah, i think well, first, theres got to be more negtivity about the stock. These analysts havent downgraded it. But my takeaway is if you think the company is a device company, thats a misread. The company is going to have 1. 5 billion devices in the next year and a half. And its really just a trojan horse for services and the services you think they may have backed into it, but thats the revenue stream that is going to be preeminent as they grow into other different parts of the world. And i just think people are viewing it as just a cell phone company. If they view it as a cell phone company, you should sell it. Because its not that, but i understand right now why you would say it is. You have to think about what it will look like, not what it is now. Awesome. Thank you. We look forward to seeing you very shortly. Im sure youll talk more about apple and i know ill be stay tuned for that. Coming up, Tim Armstrongs take on technology right now and in the next hour dont miss aig ceo Peter Hancock going to join squawk on the street 9 30 eastern time. Stay tuned you are watching cnbc because we are first in business worldwide. We want to thank you for bringing us all sorts of great guests and conversations. Thanks for having me. I want to know what its been like now, how longs it been since you did the deal . I think it will be a year next week. Whats been the biggest difference . The biggest difference for me is 40 of my time being back at the company around products and services and those things. When youre not public, we get to focus a lot on strategy and Product Development and customer relationships. And i think the second thing for aol were competing in a space where the market has changed dramatically in terms of scale if you look at how big facebook is and google and those type of things. So it gives our strategy a real boost. The world is going mobile. Right. And being inside of verizon has given us a huge chance to spend almost all of our time talking about mobile. The verizon executives have done an unbelievably great job of integrating aol and giving us space to operate but bringing us scale. Right. Weve done ten major deals since the verizon deal, m a and partnerships overall. So we had our best quarter ever q1. Tim armstrong, thank you. Great to have you. If you do your 11th deal with yahoo, please come back on that morning. Only if joe fixes his tie. Because we have to have its a joker tie. You cant do it either. Im going to work on a Tim Armstrong, thank you very much. Join us tomorrow. Squawk on the street is next. Good tuesday morning. Welcome to squawk on the street, im Carl Quintanilla with jim cramer at the new york stock exchange. David faber is in los angeles at the Milken Institute global conference. A lot more from david in a moment. Meanwhile, sullen may continues to live up to its name. Europe getting hit by a weak