Transcripts For CNBC Squawk On The Street 20150213

Cramer at the New York Stock Exchange. Stocks set to open the highs of the year with a nice wrup side surprise. Upside. And oil up. Tenyear remained huddled around 2 . The market alltime highs. S p within striking distance. And dow, 18,000 yes, back within reach. American food giants getting hit this morning, well have more on kraft, kellogg, conagra and campbell soup. And jack ma fired up his employees with quote, we havent been that satisfied with our results. The dow looking to bounce back to 18,000 s p is within striking distance of that record closing high. The Economic Growth in the eurozone it accelerate in the fourth quarter. German gameday up 2. 7 on an annual basis. Athens is up 4 . The highest since december jim, were going to get this done . Oh yeah it will be done. A stretchout. First about six points and then lengthen ma turitymaturity. You could say its kick the can down the road. Spain, i like the turn there. The doubledigit gains in europe. Of the cisco talked about doubledigit gains. It is happening. Its peaking. Its coming out to be a rosy scenario that people werent looking for. You say the dollar peaking. V. F. Campbells conagra, we got a downgrade of anf on the same issue. What youre seeing is people making their projections based on 110, 100, were not going to get there. Its going to set up a very good second half of the year. Look, they could try again to take the euro down its just the strength of the economies there, not just girl mane although watch france. The strength of the economies is europe is up when it comes to autos, industrials, and Consumer Spending is picking up. I still find it hard to imagine. I hear you say those words youve been right add least what it seems you were talking about green chutes. What caused it . Well the currency they based some the point to where they do have a lot of competitive advantage. Look, we dovt like it from the point of view our president , our treasure so they should be talking about this this is a walkover on our nation. But also energy declining. Them have less of an Energy Intensity issue but it does help them. German real wages, biggest gain since 08. Thats what its all about. Thats whats striving domestic demands . Germany say locomotive. And i also think that germany has had a great run here that they can afford to give a little of the 11 million. Im also tired of hearing, you cant help without spain and italy. Spain and italy are doing quite well. The next step are the banks. Are the banks solid enough . And the answer there is david is not. We know what happened first in our country that gietner put the screws to the banks. Theyve never done that over there. No they havent. Their initial pass of stress test was a joke. Theyve gotten more stringent on those tests but theyre nothing like what we went through very early on which gave our banks the opportunity, of course to raise enormous amounts of capital, which they did, fill their holes. Abdomen how much comes bag to mr. Draghi . Hes done a great job. Im not just making a political statement. Im just saying that the eurozone numbers are testing that theres something good happening. And its happening at a time when few people saw it happening. When you talk to an ibm, theyre not seeing it. But when you talk to networking companies, theyre seeing it. When you talk to Auto Companies theyre beginning to see it. Dnf corp. Say big provider. So you have to go with who told you things were better. Sure. And if theyre telling you things are better i see it from the wall street side its just not working. Finally, come back to greece quickly. Every day, its closer its not closer. What will the impact be if this thing keeps lingering or if in fact they still keep giving them the stiff arm and say, no were not going to do your deal. As the economy gets better over there it becomes more of an asterisk. Growth doesnt cure all of it. Growth makes it whatever happens is more palatable. The background or growth of gameday gdp makes it an easy issue. Many would argue i think thats now down to say, 10 , 15 , i say its lowering your chance and negative outcome. Were conditioned to not be thats the problem. Right. Ultimately, when you have completely written them off is when numbers do get better. We saw that in march 2009 in this country when you decide when ben bernanke goes on 60 minutes and says you know were not going to have any more banks wiped out. Youre like what does he know . What was it. There is a lot of news in the food sector campbell and conagra and naming Sean Connolly ceo. Kraft with quarterly resulted in a shakeup up. Kraft was a little bit better. When i first saw the conagra news, i said you know what they need bond. That was a good pick. And it turned out to be Sean Connolly. Rodkin has more spreads. Rodkin . Rod kin. He didnt do that well no he did not do as well on the deal. It looked as though it would be a decent deal and it has not turned out. Connolly is what 49 . I know they need someone young. When you go and look at Conagra Brands you see everything in your pantries. Our kids do not have pantries. Pantries means its canned. In even of nuclear war you can eat everything that conagra has. We dont want that we want fresh and natural. They blame execution shortfall, they blame the dollars, they blame the courts. Blame yourselves youve got the wrong brands. Campbell bought this bullhouse. When i got them home theres nothing owned by campbells. When i googled them oh my does campbells know this stuff doesnt keep . You have to refrigerator it. Its been cisco and apple. Its been kellogg and coke. All of the packaged foods. You look at whole foods and you recognize that whole foods is back. And whole foods does not sell a lot of the companies blowing upright. I dont know if you guys went through the transcript of the quarter, i still regard them as believing they have the right project. Theyve got a project. All of these Food Companies, they always have a project going on thats going to surprise people. In the end, its the dogs wont eat it. You can put a new label on that dog food new and improved, but when you put it in front of them, they dont say that they say huhuh. On kraft, very quickly, i would note of course remember late last year, during the Christmas Season they changed the ceo out. Yeah they did. And they did it quietly without a great deal of attention. John cahill was the chairman and he became the ceo of craft. Mr. Burman took his exit. And not a surprise. I know but one of these guys has to guy white wave which had a phenomenal quarter. Isnt this amazing that plantbased drinks walnut milk in china. You know that milk costs a substantial amount in china than here. You drink walnut milk from white wave. They expanded dramatically because of the china initiative. That was one of your 2015 calls that greg sat there and had the audacity to come in that the broncos were going to beat the seahawks. Thats his last bad call. I just keep trying to squeeze the walnuts and get the milk and its not happening for me. How do you squeeze the walnuts its my technique. You have to grab them and crush them. Thats how you get the milk. Thats what the expert at the conference said. We were talking about Chinese Companies. You might not know that Chinese Companies typically hand out red envelopes of cash to the workers on the even of the holiday year which begins wednesday. Gentleman ma is jack ma said dont expect red packages. He said, quote, in the past Year Alibaba Group has not had Exceptional Results and not had any special prices. The success of becoming lists should not be a surprise as it was the result of all alibabas employees work over 15 years. But aside from going public objectively speaking, weve been that satisfied with our results in 2014 that we should distribute red envelopes. Does that refer to the chumps who bought it on the ipo theyre not chumps because the stock is still high. I read that to contrast to elon musk who said were much stronger than you think. And heres a guy that says were not as strong as you think. I actually got heat from jim cramer i didnt that heat. And im not changing my way home. A very strong opinion. The Conference Call im calling that the worst Conference Call since jeffrey skillings. Ma does distinguish himself in being nonchairman like. First of all, hes not the ceo but in the sense of a leader of a country, we dont typically get people saying things like that. In the interview a couple months back you dont hear people say im not that happy. Its making me sad. He has an existential crisis right in front ofus. Yeah. Everybody in china is having weak numbers because china is weaker than we think. The numbers arent bad. Just the multiples of stock received from those expecting higher growth it may not have met that. When you said china is slowing down the second thing you said oh no its still much better. But the problem is weve come to believe that china, maybe theyre not importing as much iron maybe not importing as much steel but the domestic economy is better than expected when i heard electrolux ceo said that appliances were down. I said china is absolutely solid. When we come back not buying cars either. No. We got a lot more on this mornings winners and losers as we head into the final trading day before a long weekend. The basketball best kevin durant and james harden join us here on the big board ahead the allstar year. And the dow havent had a range that it wasnt triple digits. See you more from the squawk on the street. Oh. Kevin durant. Kevin durant. James harden on the balcony there about to ring the opening bell ahead of the nba allhad star weekend. Were told theyre going to take a shot maybe, to this hoop on the floor from the podium. Theyll make it. Theyre unbelievable. Well find out more in a minute. All right. I like that song. Its hard not to listen to it. Something happened you know what happened 25 years ago . On this day . You do know i know you know. Drexel burnham. Anybody remember that name Drexel Burnham lambier. Went bankrupt. Since then we had the financial crisis we lost bear stearns, we lost lehman brothers. You may forget the seminal moment that was when drexel went chapter 11. It was valentines day right around that time, 25 years ago. It had been wall streets most Profitable Firm only a few years earlier. When you think about that of course, we do know with the financial crisis having passed and what we lost there, that can happen pretty quickly, cant it . But, you know were talking about a company that merged in 76 that started using, yes junk bonds in 83 to finance hostile takeovers. Became the most Profitable Firm. And then the guilty plea from ivan boeske. But it was the bond which was arrested by milken who led to that profitability. Some of the people theyre dealing with are some of the same people were dealing with now, carl icahn, nelson phelps. Ted turner all of them were recipients of the junk bond largess and mr. Milkens great inventions or ability to popularize or spread throughout the willingness to invest in an area that otherwise really had been shunned by investors. So many really Significant Companies still to this day. And of course significant financiers who are still with us, are beneficiaries of that man right there. Of course dealings that would bring in charges of racketeering, lead to a prison term. Drexel itself reached a settlement in 1989 it was milken that brought it down. When i talked to milken a couple weeks back, shed david, i was already out thereof. It was the simple fact that they were borrowing short and lending long. In 89 remember the lbo of the American Airlines that didnt get done. Oh united. Allegiance. And thats really what it was. Eventually, its the old story, so the firm went down then. Of course what i think is interesting, jim how many people from the firm itself who have gone on to have very significant careers on wall street. Now, many of them may not have spent that much time there, others studied at the foot of mr. Milken or worked closely with him. Were talking about a pretty Significant Group of people. For example, leon black. Ken mollis mollis and company. Rich handler who runs acadia and jeffries. The list goes on. Steven fineberg from seberis. And big buyout firm. The owner of the milwaukee brewers. The wrestler brothers. Its the gary winick founder of global crossing. Just some of the alum. And finally, were left with this take a look at this this is simply junk bonds, well they call them highyield now. Drexel may be gone but they never went away. Of course the competitors move farther into the market. We had a record year in 13 and last year. In terms of people who have come back after a brush with the law, is milken not the most foremost with what he had decided to do with his life . You know, one day when he had writes the book id love to either to read it or work with him on it because of what hes done in health care and a number of other areas. I gave to a charity that i didnt even know was his. Hes like that. And hes in touch with all of these guys constantly. I will tell you that as well. It is interesting, 25 years ago today. Well get cramers mad dash. Stick with us kevin durant and james harden after they ring said bell. A lot more squawk on the street in just a minute. These days, the most important person in your business could be a software developer. 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These are the two that people are saying when youre in a jam, you want the master key like if youre a bank you want to have one key that opens the whole thing if you know whats going on you call cyberarck. If you have a forensic problem, you call fireeye. Its like they didnt deliver the story enough. They delivered onward and not promotional. We push it very hard on mad money just because people just told me in the banking business yeah cyberark is very good. But these companies are hard to understand. Thats one of the reasons why, when you read it its kind of like when you read it anthem called us at fired eye. Every single hacking incident is promotion for these guys. So, david, youve taught me that, the incidents are just going to keep coming. Every bank has to do business with cyberark is the way i would look at it. Were going to have the opening bell and kevin durant and james harden right here on squawk on the street. Stay with us. Theres confidence. 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Live from the Financial Capital of the world. The opening bell in 30 seconds or so. You see the basketball hoop on the floor of the exchange thats because james harden and kevin durant are going to ring the bell ahead of the allstar weekend. Theyre going to take a shot each one shot from the podium to the roof if they make the shot the New York Stock Exchange and bbva will donate 10,000 a piece per shot to junior achievement, potentially raising 40 grand. 5,000 if they miss. Well see how this works out in a moment. There is the opening bell. Bbva and bbva compass with kevin durant and james harden sell rating the nba sponsorship. Well be talking with them. Over at the nasdaq scholastic publishers of childrens books, celebrating valentines day with clifford the big red dog. So do they have the ball out . Youll let me know when they do . Yeah. We do have earnings to work with jim. Cold day, reminds me of columbia sportswear. Last night on melissas show just hitting the ball out of the park cold day, people dont understand how cold it is in new york today. We talked about advertising for cybersecurity, this weather is an advertising for dubai columbia sportswear. Timberland up 11. North face up 12. Wow. Although currency is going to take a bite this year. At this point, look this had been at the beginning of reporting season it would have been a bummer now, its like bring it on. Cisco and boeing didnt have any problem. Why . Because theyre priced in dollars. Speaking of this nike is going to have a new cfo, current one is retiring. I wonder whether durant who is the nike guy yes. Follows nike. You know some of these basketball players are so much more savvy than you realize when they do endorsements. They do a lost work now. And the other side does work as well. Yes. Oh theres a oh lee from the New York Stock Exchange. He went to georgetown, maybe he didnt play. More than theyre accustomed to. Oh, my gosh beautiful. From downtown. And heres durant. Oh my gosh for three. That was great, wow. 20 grand for junior achievement. Farley has played some basketball. He was a baseball player in college. Where was it georgetown . Im not sure. Hes a good athlete. Talking about sports. They got other people trying it here now. Theres a difference somehow between nba stars and other guys. Cbs is up a lot. Talking kind of sports. Of course, the nfl being the key for them. March madness. Thank you very much. Thats absolutely right. On the Conference Call leslie moonves. Saying im not making any predictions but i feel confident well once again lead the marketplace in pricing and value as we approach the upfronts. And well also see more advances towards the currency that better represent people who are watching our shows are getting paid more for delayed viewing and things of that nature. Socalled c7 will be the most common currency. Thats watch plus seven days. Jim, something we talked about a lot which they also mention on the crawl, of course how much stock is bought about. Yeah they were in there. Like disney went this is a good call. It was. You listen to prices. I dont know it was good wife and 60 minutes. Yeah they brought back 106 million shares. Another 45 million, of course that came along with cbs with the outdoor splitoff. 24 of their share base jim. And they say hey, listen we saw 3. 8 billion remaining in the current authorized program. You can be sure well continue to be very aggressive and opportunistic in the buybacks. Moonves who will be on squawk last week said super bowl ads could start north of five after ratings so great on nbc. Thanks nbc. Now saying they could go 5 million to 36 million for 30 seconds. This was an amazing call. The stock was so horrendous going in. A classic case of the stock not signaling what was going on with the company. Not giving a boost to the rest of the media complex. Viacom is up 1 . Theyve got specific issues of their own, including jon stewarts decision to step back. Time warner is one, i say, oh just a really good quarter. Cbs is just very solid. Weve got Gaming Companies reporting, zyngas down 13 . Breakeven was a meet. But the bookings disappoint. King up 16 . A beating by 10 . Candy crush, finally able to diversify. That was a disaster by the ceo. The company is making it back. A good quarter. A special dividend and a buyback. Were talking to strauss. Strauss is a good guy whose stocks should be up. Went to 31 and, boom back to 27. With all that and the dows up about 14 points. Lets get to bob on the floor. Hey, bob. The nba people here talking about those two great shots. Those two great shots they were something to talk about. Talk ago something to talk about, were waiting for new highs on the s p 2090. If we closed over 2090 the old high historic but not here yet. Take a look at sectors at new highs. The Semi Conductor index which ive been talk about, smv is the symbol there. The midcaps at historic highs. Home builders and a 15year high oil over 50. Theres definitely been a growth bid to big hadcap stocks this week. I mean the growth part of the s p 500 sector. Take a look here. Tech stocks leading this week up 3. 5 . Consumers, financials all the growth part. And the more defensive, utilities, health care theyve been lagging. Definitely a bid here to the growth end. Speaking of energy we had a nice move in grant earlier. West texas. The usual names, danburies, apaches. Europe is also trading up. Nice moves in greece spain, france and germany today. Economic growth was generally stronger than expected. The eurozone gdp, pretty good 0. 3 . Look at the breakouts with europe piece gdp how different it is. Germany is leading wait. Ging the way. France was certified italy certify greece down 0. 2 so you can see its very uneven. But on the whole it was better than expected and thats the major factor that were see in moving the markets ahead over in europe. Else where the Global Market is still higher in other parts of the world, China Shanghai index up 1 . I think thats the fifth straight day of gains. The central bank over there, east borrowing regulations on the shanghai trade zone. Thats helping out. And a lot of speculation, more stimulus from the peoples bank of china. 2090. 81. Were close on other indices. Ill send out more information later just how close. Just a couple of Percentage Points on other ones including the dow industrials. Guys, back to you. Bob, you know ill take it from here. If we look at Interest Rates today, a couple of things jump out, first of all, 2s, 5s, 10s, 30s up shifting up two bases points. We sell at 198 yesterday. And were hovering at 2 . Very close to the highyield close there. Going back to the first week of the year as you can see on the yeartodate chart. Lets look at boons. Something is changes. In the meeting, really on the twoday, you see where they closed yesterday on the low 30s. This is something different. Why do we need to pay soon. Lets show a tenyear chart between tenyears and bund years. If you go back to the late 80s, 89, you would find wider leveling but its a long haul since weve been there. If we look at the Foreign Exchange market i continue to focus on the dollar yen. It seems the bank of japan after banking on quantity tiff easing and large helpings theyre basically thinks any more might be counterproductive. That was said the night before last and its definitely had an effect. You see the dow moving down there after the show year to date chart and the failing at least at this point. Back to you. Rick santelli thank you very much. Ahead of the nba allstar weekend, after making those amazing shots from the podium. Were joined by kevin durant of the Oklahoma City thunder, and james harden of the rockets. And those shots were made from downtown, james. I was a little nervous. Got it to go in. Is it good to be back in new york . Yeah other than the weather, its good to be here. Amazing beautiful fans and people. Kevin, let me know you, you are known as the endorsement for nike and sonic. I had a Company Called sparkling ice on mad money. You endorsed them and you didnt get any money. You just like the product . I love the product. Well take it off camera but i love the product. Well what does this mean for bbva, and why are you doing this . Well, the main thing is we want to have our brand attached to things that people are passionate about. This is really the dilemma of marketing in the 21st century. We want younger generations to try our story. We love basketball. But could have gone to lots of different leagues right . Why the nba . Its an international sport. Bbva Parent Companies in 31 countries, there are players from every country representing them. The whole planet is watching its players. I was watching yesterday about how much stern did for the league i mean just basically taking it from one environment to a completely different level. Has it changed for you as a player with guys like ballmer and lazery big players, has it changed the Player Experience . No it hasnt. Its the game of basketball and globally its amazing, youve got guys everywhere that want to play in the nba. Kevin, you gave an mvp speech, did you know at the time that was going to be a luge gehriglike speech it would go viral and people would talk about your moms and real lives . I did not. I was speaking from the heart. I experienced so much growing up. I just wanted to share that. It blew everyone away. Its amazing. Everyone should watch it. It will live on for years. Autumn silver said that gambling should be illegal, what do you think about that . No. Not going to touch it . No. I love playing basketball. Speaking of playing basketball, the daily news did a piece saying would kevin come to the knicks in free agency. They quoted a guy close to kevin saying no question about it. No clue about that source. I just am here for allstar weekend. Kevin, for a knick fan, i know you cant answer 73, youre a winner no place like it. We got a great player that can play defense like carmelo. 73, its a long time ago. Finally, guys before we let you go obviously, youre both kings of endorsements. How do you decide which brands to align yourselves with now . James . Its just the right direction, as far as me and marketing miegs. You know first of all, im honored to have a partnership with them. Im just on the path on the way up. And with them and the way im going, its all positive vibes. And for you, kevin, we are at this very set right here we talked about under armour nike under armour mike. We know what decision you made. It was just continuity continuing to go with something that i had as long as i was a rookie in the league. I love bbva and it seems like me. Everybody in that organization seems like me. Its great to be a part of. Youve got kids back here with balls i think they hope youll sign. And farley you missed the shot. Guys congratulations, well be watching. Manuelo, thank you very much. When we come back, strauss zell zellnick of take two in a moment. We live in a pick and choose world. Choose choose choose. But at bedtime . Why settle for this . Enter sleep number and the ultimate sleep number event, going on now. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow now we can all choose amazing sleep, only at a sleep number store. Save 50 on the ultimate limited edition bed, plus 24month financing. Know better sleep with sleep number. Heres a look at the dow, s p is above its alltime record close. And we do have dow 18,000 yet again. Only first time this year obviously. Only a couple days this year has it been above 17,900. These Big Companies that have business in europe are doing well. Return to the oil stocks chevron, exxon. Youre seeing major moves both in commodity sizes and in europe moving the index. Its not in america. The bulls will want to point out that the industrials have taken the ingersoll rands of the world. Yeah. Youre. Europe. Thats because europe is very good. I still wonder if europe is sustainable. Thats an easy think to wonder. Look qe. You look at the makeup of the index. Look at Larry Robertson with mcdonalds. I wouldnt read too much into that. Its a very small position. He mentioned in a closeddoor meeting. Of course, theres no such thing, everything is on the record. With ackman saying you liked this thing eight years ago, now i own it. Look the real estate it could be valuecreating for mcdonalds involving its own real estate i wouldnt read too much into that. Goldman sachs these companies are doing incredibly well overseas. Its a big sea change. And some of the companies ill tell you if the dollar really has peak their numbers can come back up. This is an amazing time for that particular index, 3m once again, being done without ibm and american express. Especially if im horrified by that deal. How did they gel on it . Front page of the journal. It was disastrous needs to make a deal. Costco say huge percent of their growth 7th. As were talking at s p is at 2913. That is a quarter point from the alltime intraday high. Basically were there. And if nasdaq takes out march. Who would think weedd see that . I know. Theres a lot of company thats dow that are Big International companies seeing the green chutes. Well come back with jim cramer and the s p. Alltime highs. At ally bank no branches equals great rates. Its a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. My name is bret hembree. I am an electric crew foreman out of the cupertino service center. I was born and raised in the cupertino area. Its a fantastic area to work. The new technology that we are installing out in the field is important for the customers because system reliability i believe is number one. Pg e is always trying to plan for the future and we are always trying to build something stronger and bigger and more reliable. I love living here and i love the community i serve. Nobody wants to be without power. I dont want my family to be without power. Its much more personal to me for that reason. I dont think theres any place i really would rather be. Time for cramer. Watch apache why . This is a bottom call. Half of the bankers are saying some are saying its going to go 3040. Some say its time to buy apache. Its a great Production Growth stock. Thats typical of whats happening like px gray. And regreating of the Drug Companies were seeing j j falling out dramatically they always find one they like. They like glaxosmithkline. Watch gsk versus j j and watch apache. That stock 3375. And j j yesterday yeah a patent issue or a patent revolution i dont think thats real. Im not worried about it. That stock has had a couple of rally days . Theres always with patents, its such a big part of the company. Im going to dismiss them. That doesnt mean the sales are going to stop. Whats on tonight . Were doing private companies. I think its really important to stay focused on that. Novavax, i havent focused on vaccines all week. Obviously obviously, vaccines are problematic to measles. They didnt go away. People say were at these record levels once again on a multiple basis, the s p is expensive . 18. I think a lot of the stocks moving up are not that expensive. Its funny, the food stocks are the most expensive stocks in the market and theyre getting their comeuppance today. And with the stock upwards, its going to make is it so this makes sense but both of those have to happen. Have a good long weekend. Thank you, yes, you, too. Manman at 6 00 p. M. Breaking news, Consumer Sentiment when we return. Know that chasing performance can mean lower returns and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. Good friday morning. Welcome to squawk on the street. Im carl quintella and sara and the s p has never been higher. Better than expected european gdp. Check out oil trying to reclaim 53. Weve got brent back above 60. Food giants conagra and kraft deep in the red. Were going to learn how to read the stocks. Plus ceos from Silicon Valley to discuss cybersecurity. The former Technology Manager for the United States will join us live to how companies can defend themselves. And apple trading near another record high. Is the growth sustainable. Rick santelli is over at the cne, its Consumer Sentiment. Its a big number. 93. 6. This is february february that does it 93. 6. Last time was 98. 1. Thats the final for january. The neat thing about that number, that was the best since january 2004. 93. 6, as good as it is of course backs up a little bit into that. But its still a hugely lofty level. Lets go through the expectations, oneyear inflation 2. 8. And fiveyear, 3. 7. All Things Considered this isnt a surprise. But as stocks continue to move up it is putting pressure on selling treasuries pushing rates up were were not trending above 2 again for the second time this week. Back to you. Thank you very much rick. Before today this year we havent hit any fresh record highs on the dow and s p, thats clearly changed. Stocks opening in the green. The dow hitting 18,000. The s p within the last few moments hitting 2093. That is a record high. Its worth noting actually that for the month so far, for the past two weeks, weve got a gain almost 5 there. Almost 5 on two weeks on this market. Joining us now is post9 is chief strategic jeff poscic and michelle meyer. Welcome both of you to the program. Jeff, its a strong rally now . It is. We believe its part of the relief rally. The economy had a blip in december as you move in getting data for january. The consumer while a little disappointing is not dead. Employment trends continue. And now were seeing some stability in the oil and energy prices. All of this leads, we think to Greater Investor confidence and thats fuelling a lot of this. You guys have 27 billion under management. What are you advising people to do now . Given the analysis that youve got there, what now works best . Were longterm pulse but were more restrained in our bullishness than in many years. We just think weve come a long way. Were you coming into tip the latecycle problems. Were seeing constraints in the Manufacturing Sector which means it takes longer to get the goods you need to grow your business delivered as well. As we have the record highs, michelle do you see any disconnect between what the data is telling you . The retail sales were disappointing. Some of the steam, momentum, that we built at the end of the last year is coming out of the economy . I think it depends on which economic figure you look at. So for the labor market the momentum is building and its doing so in a strong way. Were running the a solid pace of job creation. The Unemployment Rate is hovering close to full employment. Sara, youre right in terms of gdp adding up it looks like q4 is going to be lower and q3 were sticking to 3 . Some retailer sales looking softer. Maybe 3 is going to be a little optimistic for q1. Its a mixed bag when it comes to activity data. Michelle i know this is anecdotal, but usa today surveys people about whether gas prices have changed their spending behavior. I think 48 say no impact. 30 say theyre saving more. Yeah. The percentage that are spending more like 19. Do you believe that . The data seems to suggest thats probably right. Retail sales were fairly soft in january. Core control which takes a lot of those volatile components including gasoline prices was only up 1. 2 in january. Yet, the savings rate in january picked up. And it looks like the savings rate in january is also on the rise. The question to me is though is it a matter of lag . Is it the initial response in gasoline prices is to indeed save but then after that you begin to spend. Or is there something going on with middle class that highly paid wall street analysts dont understand . Because you couldnt swing a cat on this platform saying that its growing. And as you mentioned retail sales continue to disappoint us . Well simon, i think its the opposite actually which is that the declining gasoline price is going to be even that more impactful for the average person, the lower class person. With budget constraints. Theyre going to find that saving at the pump and feel potentially able to spend. If anything the stimulus for gas prices should be a bit more targeted towards those who would not have received the support from monetary policy. Meanwhile back to the markets, jeff looking at the s p 500 on the bounce. On utilities, its the worst. Is that the story . Overtime. Anything utilities, interestrate sensitive has a problem. We think the markets have really turned here. Obviously tough to call a bottom in yields but we think this is a big transition year. The fed getting on a typing path makes a big difference here because it changes the calculation for yoblgoebel yield seekers. You dont go out to ten years you shorten it to two years. The best indication is germany. Its up 12 . Even if you subtract the 6 move on the euro against the dollar people will be up 6 on the German Investments so far this year. As they now approach massive qe some two months time is that what is part of conversation . Well were neutral for the banks to develop international. I will tell you, however, the act of disgretz. And we have that in more in japan, they dont have production. Its not a question there, its a real strong stimulus plus the dollar being stronger were seeing benefit in germany. Jeff and michelle thank you for your time. Thank you. Earnings are in full swing and recent news from the Top Food Companies has been disappoint. Just in the last 24 hour conagra and kraft coming in lower. Joining us now ken goldman. Ken, up all night reading your research on these companies. Look the strong dollar is certainly a nuisance. But its no excuse these companies paint a real picture of an industry failing to deep up with consumer taste, correct . Thank you for reading the notes. We were up all night writing them as well. There really is not an excuse. And a lot of these companies are not using them kellogg said has said that cereal consumption is not as strong. And fx is really companies missing only on fx if thats the case theyre actually going up look at white wave. They had a difficult guidance. But only on fx i dont think the street cares that much about it. Pepsi and coke told the similar story. The stocks went up because of the fundamentals. Whos gault the best Management Team kraft has a new ceo, conagra is going to get a new ceo. Who do you think has the best team in place right now to deal with some of the major challenges . Well in all honesty, i think if you look at the names that have done pretty well if you look at white wave theyve done very well with yagles and mcpeak and dealing with the Consumer Habits fun look at simon, irwin takes heat for being inquisitive. You cant lack that hes done great acquisitions. Hes done a great job in building that portfolio right in line with where Consumers Want to be. I think what is missing from the picture, a lot of the Food Companies are not as passionate as they need to be. You think of some offed big changes in whats happening with yogurt and diet and weight management. The smaller keys are much better in line with where consumers are doing. Why doesnt kraft buy a haine or white wave. Why doesnt one of these big guys buy one of the faster growing organic Food Companies. Well they have General Mills bought annie. Its a small one. We feel white wave is say legitimate takeout candidate. We can have any number. I dont list them here because i dont want any speculation. When you think about companies that are getting healthier beverages there are global firms that would ouk love to have a white wave. Kerngs there are other people watching now who are really just interested in the dividend. And its tough. And then they go into stocks like these that management probably wont do much to increase the top. Like tobacco companies, however, theyre great dividend pairs. If you look at kraft and kellogg, theyre up over 3 as the stocks come down of course that dividend yield rises. Should people buy in on that basis, or do you think in an environment where the tenyear is at 2 and presumably will rise, hold back and take it from treasuries . Thats a very fair question youre asking. I think Everyone Needs to make their own decisions about that. I do however, think in terms of total returns including dividends there are Better Options out there than some of the names you mentioned, white wave and han equivalent and smucker and some of the other names we have biratings on will give you dividends. But certainly for investors looking for yield and net safety from yield, i can think of worse options than the napes you mentioned. And in terms of overweight and interestingly snacks is a category with things going around in what jim calls the pantry. Why is that . Growth say relative term right when mongalees came out, theyre down around 2 for next year. We look at that in our position as not that bad. If you look at what other Food Companies of size are guiding do its negative. Snacks are relatively okay. I think people look at snacks as a treat. They say most of my calories are not coming from snacks. I can give myself an oreo every now and then and it makes it worth while for them to do. If you look at whats coming across with snacks had Healthy Snacking is making a good run. Nuts fruit snacks. Inroads. So we dont think that less than Healthy Snacking will be as strong as a few years ago. Plus there are new flavors in oreos throughout. Ken, thank you. Next week after a busy week of food earning, weve got an exclusive interview with mondelez chairman herself. Thats at 10 00 p. M. Its a Consumer Analyst Group in boca. Ill be theyre not just for the weather. Im going. When we come back president obama assembling top executives from wall street for a summit on cybersecurity. Were going to talk to chief Security Officer Aneesh Chopra. Awfully close to alltime highs. Squawk on the street is right back. Were up all night to get some were up all night to get lucky were up all night to get lucky welcome back. Im meg terrell. Take a look at fired dd eye. Fireeye shares up 15 since the Company Reported earnings on wednesday. Carl back to you. As we said earlier, the president is holding a summit on cybersecurity. And can something substantial come from the summit. Joining us to weigh in on the significance of it is Aneesh Chopra the First Technology your of the u. S. Government innovative state. Aneesh, good to have you. Good morning to you. Tim cook say name and some say its not gore flash than substance. Do you agree . Absolutely not. If you take a look at the administrative announcements today, more in the private sector have joined hands with the federal government to improve cybersecurity standards. Thats not a point of discussion, theyre announcing their commitment to implement which is a positive step in the cybercommunity issue. Aneesh when i speak to people on the topic, Silicon Valley in particular, they scoff at the department of defenses efforts in this area they indicate theres a growing schism if you will between the administration and its efforts on what theyre doing in Silicon Valley . Actually lets separate the two discussions. What we do on National Security is a separate topic. Today is about the private sectors networks and the threats that they place which is governed by the Commerce Department. Today, you saw intel, apple and a number of other companies voluntarily pledge to adopt the Commerce Department framework for protecting private sector commercial networks. So here you dont have so much of an antagonistic networks but one that is more reliable. Should we be worried about that as a Privacy Protection as the government and private sectors Work Together to turn over user data user information, thats going to cause a whole privacy debate and concern . Well, the key president ial action today was actually allowing the private secretary tore work with itself not necessarily involving the government if they so chose. You just made the comment about fireeyes platform there will be more initiatives under the executive order that president obama unveiled can be propagated for the private networks. So ensuring privacy and security is critical. The move today is more in the direction of private sector alone in collaboration with the authority and the convening world of government to make a difference on private networks. Aneesh theres an effort made to get companies to be much more forthcoming when theyre breached. It does seem that progress has been made but many argue that were far away do you agree . On health care for example, every data breach is reported by law. You can take a look at the list and see all the attacks made around health information. You can see its having the effect its supposed to. Health Care Companies are investing more on cybersecurity protection. And our goal is to get more of that kind of marketplace dynamic into the broader sector. That is an issue that requires the federal government to potentially address the patchwork across the states. Many states have data breach laws that have come out of virginia. We have one. The goal is to harmonize that. If youre an employer and you deal with multiple states youd like to have a National Standard as opposed to the hodgepodge that we have today. Isnt that the main stumbling block, that you should have data . That is at the heart of the policy debate the president called on congress to get work sharing. There are two issues Liability Protection and protection of privacy. Those cannot be done by executive action alone. Youre spot on. Theres also the refuserevelations. Edward snowden revelations. One of the main things despite you saying its a privateprivate solution, is to better feed data to the department of Homeland Security. For many people, whatever the question is the federal government in technology is not the answer. Well no i totally understand that. Weve had longstanding policy where you can have information sharing to the Homeland Security department. The news is now you can do so within industry focused and only consortia. Thats the new move today. Its long been policy there are organizations that can feed in and collaborate. But let me make this observation better together. If i can identify an attack vector and i can share that knowledge with my peers, they can do a better job of finding that attack vector before it infect, the network. The idea of information sharing is not so much governments got the answer or private secretary. Its that i found the threat vector somewhere pipe want to make sure my colleagues can benefit from that information. And thats the basic principle. And to do so while protecting privacy that led to that attack thats the key. Still, though aneesh i think back to sony and how the president had advice on how they should have handled their disaster, i think thats fair to say yea. Do you expect the white house to Tell Companies how they should respond . I think the correspond issue is passwords are bad, okay . The big question is how do we get to a more secure digital regime. Thats a private effort. Youre going to see announcements from companies saying were going to use our technology. Ultimately when you connect digitally, its about who you know and what you have. If you can do a better job of presenting yourself as who you are, its harder for bad actors to come in faking that theyre you. What you see in all of these private attacks, its someone making the errant mistake of clicking on something inappropriately, disclosing their credentials and then having someone fake in as them and taking that data. We need better security around passwords. Thats one more part of todays event. Well see what the president does at this end. Aneesh, good to see you. Thanks for having me. A few years ago, wall street largely dismissed dating services but now iac is having the last laugh. And okcupid, fuelling the companys growth up 225 . Up next, well hear from the head of iacs match group about the future of this dating trend. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . We live in a pick and choose world. Choose choose choose. But at bedtime . Why settle for this . Enter sleep number and the ultimate sleep number event, going on now. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow now we can all choose amazing sleep, only at a sleep number store. Save 50 on the ultimate limited edition bed, plus 24month financing. Know better sleep with sleep number. Five years ago, wall street dismissed dating services claiming facebook would replace them but the trend took off with 40 million americans using Online Dating. July is in l. A. She spoke exclusively with the leader of Online Dating. The Online Dating is on fire. Match, tirnd, okcupid said this is the best january its ever seen. Users up over 60 from last year. And up over 600 over the past five years. One challenge is that paid Services Including its flagship match. Com with free apps including tinder in particular. Which is why theyre working on a paid version of tinder which the company says is launching soon. This is a category where, you know people are willing to spend a little money for an extra experience thats what were going to offer in tinder. And if people dont, great. We dont think it will affect the user growth at all. Weve got enough data from prior products to make us highly highly confident if thats the case. Blatt points to the success of okcupid which is a Free Service Offering an alternative that tinder will have similar results with its new paid versions. The other question is whether apps are safe. Finding over half of mobile dating apps are vulnerable to cyberattacks but blatt says they make safety a priority. We have a direct and our apps came out clear under their study. Blatt said the explosion of online apps and Online Dating means theres a difference in free and paid theres a little bit for everybody. When we come back, apple cracked 127 today. Its off of the highs today as tim cook touts the strength of the apple watch. Just how high can it go . Well talk about that. The dow up 62. Your moms got your back. Your friends have your back. Your dogs definitely got your back. But whos got your back when you need legal help . We do. Were legalzoom, and over the last 10 years, weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions backed by a trusted network of attorneys. So visit us today for legal help you can count on. Legalzoom. Legal help is here. Have you heard of the new dialing procedure for for the 415 and 628 area codes . No what is it . Starting february 21, 2015 if you have a 415 or 628 number youll need to dial. 1 plus the area code plus the phone number for all calls. Okay, but what if i have a 415 number, and im calling a 415 number . Youll still need to dial. 1 plus the area code plus the phone number. So when in doubt, dial it out im Bertha Coombs and heres your cnbc update. President obama is expected to announce an executive order encouraging information hearing between the private sector and the government. Kara swisher will interview the president at the end of the day. Head to cnbc. Com for that interview. Meanwhile, mastercard sends to invest in the mastercard safety net. Before fischers and processors notice a threat of one. Yahoo is reportedly cutting between 100 and 200 jobs mostly in canada after the layoff in october of 400 employees. Hormel foods is said to be in talking with apple farms. Thank you very much. What a week its been for the markets and what a week for apple. And a market cap that made history but is the stock growth sustainable, katy stark is with bgig. This is an important break outhere . It has been. This month, weve seen apple clear at its november high. Right around 120. You could get a higher target out of 130 some that break. That fast approaching that targeted level. But the stock koshts to exhibit positive momentum across alltime highs in intermediate and longterm. And its starting to feel like we cant go wrong with owning an apple. I think the key of sustainability of this uptrend has been stair stepping higher as opposing to going straight up or parabolic. Ifs luke back to the 2013 load, theres four corrections averaging 4 leach. Each. Where are you calling it to . 130 is the best target on the upside. But its by no means a stopping point for apple. Its probably a temporary stopping point where you might see consolidation from a fundamental price point. Bti has a price point of 150 which you cant rule out. Lets talk about the broader market. S p 500 amazing gains for of the past two weeks. Up about 5 overall. High of this record high that we hit today. Where do you think the s p goes from here . Shortterm momentum is obviously very positive. And were approaching alltime highs and that is sure to get a lot of attention. Im not one to fight breakouts. If we do see a breakouts that for me would be closings above that level that is a december high. You could move as a target for 2250 for the s p 500 with sort of an intermediate time horizon. However, i do want to note that has been a loss of longterm momentum that is somewhat concerning and knowing its kind of an overarching concern for this year suggesting we may see more corrections than in the rest past. I just want to hone the point that youre making. 293, 294, if we continue to maintain this level and close above it if im hearing you correctly, youre saying that the market could surge another 7 or 8 . Thats right. Breakouts tend to overrule anything that theyre telling you. A breakout tends to overrule that condition because it clears the chart of resistance. Of course, the s p 500 has no resistance or potential selling pressure, really above that 2093 level. So consecutive close about to confirm that break outand help you avoid any first breakouts or whipsaws would project higher prices. What do you think about the nasdaq . Do you think we can get to a record high above that bubble peak . I think we can. Again because of that greater loss of longterm momentum that weve seen and globally the last few months. Its possible this year and obviously going to be a focus. The more the businesses are focused on it and the more rife they become for that breakout i want to hedge that and make sure that everybody acknowledges that breakouts really do need to be confirmed we spend not just an intraday buzz but at least a couple weeks of that. Katie, finally on oil, everybody says when you start getting moves like this 7 up and do you, day after day, thats a bottoming process. Then we get a call that says its going to have a twoday handle what do you think . We have seen crude i will prize since last july. And whats interesting to me, really the action in the stocks. Thats the stocks that theres improved sentiment in the space. And improved intermediate momentum and it does appear sustainable in the next couple of months. Based on my relative strength work im more interested in energy or materials as to something is that appears more overextended than say, utilities or health care. Katie, great to see you. Have a great weekend. Thank you. Katie stockton joining us there. Coming up ricos kara swisher interviewing president obama tonight at the white house on cybersecurity. But before she sits down with the president she will be joining squawk life with the preview. Were back with squawk on the street with the break. Theres nothing more romantic than a spontaneous moment. So why pause to take a pill . And why stop what youre doing to find a bathroom . With cialis for daily use, you dont have to plan around either. Its the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. 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Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. Say bye, bye, bye lonely heart theres nothing missing in my life time to head to chicago Rick Santelli and the santelli exchange. Good morning, rick. Good morning, carl. Indeed, yesterday, thursday we noticed that the fed Balance Sheet intreateded 1. 3 billion from 3. 3 trillion. What are the consequences of all the very strange programs and one offset weve seen im not sure but maybe our guest will know more. Thank you for taking the time chris wailen good morning. Good morning. You know unintended consequences, about nine years ago, we issued the long bond after a hiatus of halloween 2001 to february 2006. Peter fisher who is now at blackdock, i think hes a senior director he said at the time was with at the treasury, yet, were paying for that little bit. Maybe you can complain. It allows different coupons across the futures contracts because we didnt issue any 30year bonds from 2001 to 2006 theres a dearth of bases to deliver against the future in technical terms. So this decision in 2001 kind of continued the Clinton Administration prethaens we didnt have that they were borrowing from the trust fund. Remember, you were there. They said well front load treasury to save a few penneys but now we can see that this decision is distorting the markets and has huge implications not just for treasury trader but for the Mortgage Market they hedge off of this product. I mean its sillier and sillier, the farther away we get from the decision. Thats the funny thing about it. Yeah but think about it put it in context, chris, 30 minutes before that announcement of halloween 2002 there were no long bonds. There were a variety of investment banks that knew. They were trading and they had a 30minute head start. Forget about that. But just this issue as small as it may be gosh what possible unintended consequence could come down the road that i would say are a million fold more . How do people hedge with decisions like this that were talking about, there are nome externalities distorting the market, all we have is this heavily stimulated system. Its like were in the matrix is that oxygen were breathing . Not really. Just for mortgage world and trading it makes life more complicated. All i know life is more complicated people do things theyre not preplanned or dedeposed to do. Well they dont know theyre doing that. Our gps is broke. Chris whalen enjoy your long threeday weekend. Carl and others its yours. When we come back, a very new way of raising money being used to redevelop detroits old Tiger Stadium. Crowd funding. Well tell you the project when squawk on the street comes right back. Ok, if youre up there, i could use some help. Smart sarah. Seeking guidance. Just like with your investments. That sets you apart. It does . It does. Youre type e. And seeking another perspective is what type e s do. Oh, and your next handhold. Is there. You dont have to go it alone. E trade gives you the support and guidance to make informed decisions. Are you type e . [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. At ally bank no branches equals great rates. Its a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. Welcome back im meg terrell. Check out red robins shares. From estimates on the top and bottom lines. Same store sales and restaurant margins did top consensus, red robins shares down 8 before turning around now 2. 4 . Investors needed an ire stomach to stay in the stock. It was in the 70s this year and all the way down to the 40s. Sara back to you. 100,000 people are attend two boat shows this weekend in miami. Eye everything from inflatable rafts to multimilliondollar yachts are on sale. Morgan is live there. Some good eye candy there, morgan. Reporter there certainly is good eye candy. As you see behind me this anjos fishing boat this is asking for 125,000. The boat industry is finally beginning to recover. We all want to see these trophy boats when it comes to this highend of a market there are three things that matter size luxury and speed. Take this 110foot sailboat. Its got a mass of 125 feet. It sleeps eight plus crew. Its got a master suite with a sitting room and a jacuzzi tub. The price tag just about 3 million. Thats nothing compared to some of the mega yachts at the yacht and brokerage show going on this weekend. Their high yensd dealers tell me that european and russian demand is slowing down. However, american buyers are beginning to make a comeback. Take this 125foot yacht, this sleeps ten. Two hot tubs and a dining room and a tender naturally. The maintenance on this 1 million a year. To fill up the gas tank 40,000. Thats going to get you from here to miami up to the hamptons. The price tag, 8. 4 million. You want to charter it for the week, 85,000. Cigarette racing this is a company known for bad boy performance boats. It unveiled this 50foot racing boat in tandem with the mercedes amgts road car. This goes 135 milesmileperhour on the water. The asking price on this boat 1. 2 million. That does not include the car. If you want that thats going to cost at least another 130,000. Guys, theres all different boats here and were seeing the recovery in all the different boats on display. Were speaking to brunswick ceo jesse mccoy in the noon hour how that manufacturer is rolling out lowerpriced newer models to cater to a consumer thats become much more valueoriented post recession. Back to you. Thanks morguingen. Crowd funding is taking center field in detroit where the citys once famous baseball tigers stadium once stood. Its turning to residents to get the facility off the ground. Could this be the new way of raising funds work for a city that recently emerged from the largest bankruptcy in history . Joining us eric larson ceo of larson reality. Eric, explain how this works, youre using a portion of the equity in this project, raising it by going online to local residents . Yeah thats right. This isnt a project that really needs that kind of support but it is very important in terms of the inclusive nature of detroit. Weve allocated about 10 of the equities. About 400,000 that were going to solicit directly to detroit residents so that people that are, you know part of this community, that have been raised in this community. That have fond memories of the upper deck and watching the tigers play all the famous games at the corner for over 80 years have the ability to own a piece of this project. What is the return for those that invest in the project . So were working with a group out of new york called fund rise. Ben miller and dan, are two brothers that started, and what they do is theyll collect the dollars and then invest in the project as one investor. They will do all of the back house support. P we havent set the exact return but my guess is it will be around a 9 return with, you know additional upside. It is an investment in real estate and there is some risk but the opportunity through crowd funding is to allow nonaccredited investors at part of these type of deals and so, you know especially for a place like detroit and for a storied site like Tiger Stadium this is an opportunity for a mother or a father to be walking down the street with their kid in tow and point at this project and say they own a piece of it. Thats very important at this go ahead. Eric, Everybody Knows the real estate struggles of the city. Dan gilbert, of course. Is this an act of desperation or why is this being done outside of regular Capital Raising standards . Absolutely not an act of desperation. As i said in the beginning this is a project that has lots of appeal and we will have no problem being financed. In fact, we already have, you know, commitment for all of the financing we need even before we finalized the development agreement, so im not worried about raising the capital as much as i am trying to make sure we have an inclusive process in a city desperately looking for inclusion. You mentioned dan gilbert and the momentum and he and his family of companies have created. This is the antithesis to that because what were trying to do is get the everyday person involved in these projects in a way they havent been able to throughout sort of the latest sort of push of momentum in downtown detroit. Eric just changing the subject slightly and talking about the industry in general, i mean youre quite experienced done 3 billion of projects yourself, been involved in throughout your career. The biggest growth area apart from crowd funding appears to be persuading Chinese People to invest half a Million Dollars in projects in this country in order that they get permanent residency under the eb5 program. About a mile from where we are, hudson yards being developed with 600 million from 1200 Chinese People who want permanent residency here in the United States. Clearly its very controversial. I would be fascinated to know what Developers Like you think of, what is a major source now of funds for big projects . Well eb5 is absolutely a wonderful vehicle and i actually am very supportive of it. I know there is controversial around it in the fact that its sort of buying, you know residency through those types of investments but the reality is you know, we need to have as diverse a set of investors in towns like detroit and new york you mentioned, hudson yard but we need to have that sort of diverse Investment Sector and you think about the fact that Foreign Investment is coming and its not you know, these arent dollars that then can be taken away. These are dollars being spent in brick and mortar that will last and stay the test of time. Im very encouraged by it. The state of michigan is looking hard at the eb5 program, setting up an eb5 shop at the state level and looking at it as it rolls down into the local levels like in places like detroit. Eric, i think what a lot of people would say, the deal here is you have to create ten jobs each visa to do this. Are they permanent jobs . These are theyre a mix of permanent and temporary and like any kind of Economic Development there are a lot of temporary jobs created through the construction and the related sectors, and then there are the permanent jobs that follow through the development and the ongoing activation of that real estate. So it is very much about permanent job creation. And just very and building of the tax base. Quickly, i just want to ask you a question about this whole notion of crowd sourcing real estate. Its very in right now. All sorts of sites doing it. I know that jobs act makes this possible now. How risky is it for investors, average investors, to be all of a sudden buying pieces of real estate commercial real estate Residential Real Estate whereas they couldnt before . Its like anything. There are firms that are going to be very, very disciplined and very focused on making sure that theyre providing not only solid Investment Opportunities but protecting the investors and doing a good job of reporting both in terms of what the opportunity and the risk is up front as well as the project evolves and then some firms that arent so good. I picked if it fund rise because they have a very, very strong track record. We are setting it up in a way thats that its going to be while sort of an equity state its going to be designed more like debt so that it will in effect be secured in some form or fashion because i really am not interested in having this diverse set of individuals, you know, not have a successful outcome. Sure. So it depends on who youre dealing with but i think its an industry thats here to stay and an industry that will evolve and i think its important to pick the right horse and i feel like ive picked the right horse. Certainly is having a moment. Thanks for joining us and sharing the story. Ceo of Larson Realty on detroit. Thank you for having me. Coming up on squawk alley the ceo of Take Two Interactive Strauss Zelnick weighing in on the state of the gaming industry after this quick break on cnbc. [ male announcer ] at northrop grumman, weve always been at the forefront of advanced electronics. Providing technology to get more detail. Detect hidden threats. See the whole picture. Process critical information and put it in the hands of our defenders. Reaching constantly evolving threats before they reach us. Thats the value of performance. Northrop grumman. Theres a gap out there. Thats keeping you from the healthcare you deserve. At humana, we believe the gap will close when healthcare gets simpler. When frustration and paperwork decrease. When grandparents get to live at home instead of in a home. So lets do it. Lets simplify healthcare. Lets close the gap between people and care. First impressions are important. Youve got to make every second count. Banking designed for the way you live your life. So you can welcome your family home. For the first time. Chase. So you can. Today for the first time this year we made fresh highs, record highs on the s p a and pushed the dow above 18,000. Absolutely stunning move on this index. Look at it up almost 5 since the beginning of the month. We have Michele Meyer a Technical Analyst on the program, i think this is the most important takeaway from today. If you can sustain this level and keep closing above 2093 of a technical argument you could break 7 to 8 higher on the s p. That was her view. Katie stockton. Forgive me. I want to point out a few highs. New alltime highs for s p members. 66 of them are having record high days. Ill point out a few shall we . Please do. Earnings story. Starbucks, alltime high looks like were off the high but around that territory. Kroger, the Grocery Store and hasbro the toy company, up 1 . At a record. Enjoy your long weekend, sara. And you simon. Over to you, carl for squawk alley. 8 00 a. M. At the white house Cyber Security summit in stanford, california 11 00 a. M. On wall street, squawk alley is live. Joining us for the hour this morning mike san it tele, senior columnist at yahoo fi naps. Kayla and jon are out look who decided to drop by. Good morning. Kelly evans what a free throw treat at treat at post nine. Treat for me