Transcripts For CNBC Squawk On The Street 20150401

Oil under 40 bucks. Tenyear slipped below 1. 9 on a weak adp jobs number. Godaddy shares pricing above the expected range. Well talk to the ceo after the first trade. Simon properties withdrawing its offer for rival mall operator macerich after it gets rejected like we told you they would. Walmart Holding Investor Day at nyse putting pressure on suppliers joining the religious freedom debate. Futures are lower. Data from adp showing the private sector added 189,000 jobs last month, a miss. It was a mixed First Quarter for stocks. The nasdaq was the big winner up almost 3. 5 . S p up more than. 4 . Like the nasdaq posting its nintendo consecutive quarterly gain. The dow did finish the First Quarter in negative territory after the drop yesterday of 200 points. Earlier on squawk, sam zell believes stocks in fact overprized. Theres a significant and growing disparity between the stock market and the economy. Almost every company is turning in numbers that are less than expected. Revenue particularly for multinationals is being hurt by currency devaluations around the world world. Im looking for demand and i find very little of it and i think were going to have very significant competition. Broad point is that these are our competitors and theyre playing with funny money in his words. Look, i think this notion of the market being overvalued is simplistic. There are parts of the compete very strong and every time you sell them down with the s p they bubble up because numbers are fantastic. And theres international companies, well see alcoa kick it off, clearly the estimates have to come down. If we dont do a Constant Currency analysis with the dollar, then youre going to see incredibly upsetting numbers. The idea markets are overvalued stop talking about the market. Within the sectors seeing tremendous disparities, within tech a giant sector anything retlitd pc doing terribly but anything related to cell phone doing fabulous. Its a secular change whats doing well whats bad. Look at pharma big pharma not doing much, with the exception of pfizer and lilly. Biotech. Numbers come through on of the ones that are big. People at home would be saying i guess ive got to sell darden. Well, no. Ive got to sell jackinthebox. No. Ive got to sell dillard, no. As you said yesterday on twitter, the economy is not on its last legs when kohls is leading the s p. Its not working. The s p, its talking about yesterday the hedge funds making money. Thats because whats happening the s p is no longer trading together. There are even within subsectors dramatic differences. Unless you realize that look if youre an s p trader sells right. But it doesnt advance the ball in our world where sky works, nxpi you know and the incredible corvo merger takes the place of what intels doing and microsoft. Theyre going to miss. Still waiting on intel doing something with altera. Thats a done deal. I read it in the papers friday night. I go to david on friday trying to do my show i say listen, im not going to pick one like the journal or anybody says the intel deals done. I come in month, the deals not down. David said i wouldnt go out with that. This is reporting. It gets in the way. I had a dynamite story about intel buying altera. You made me hold it. Im not saying that wont happen. David did that the other day. Another one he did. Oh j j to buy pharmacyclics. I wanted to go out with that you but said it might not be right. These are being facetious but this is what we face because other journalists come out. Alex gorsky, he misses by 80 million because abbvie buys. But we can go out with it. What do we correct ourselves on monday . No. We just leave it out there. Lets talk some seasonality. Well start april, right . A big month, jobs number fed meeting at end of the month. Its the best month for the dow since 1950. Its last good month before they say sell in may and go away. Boy, im tired of than people say it its selffulfilling in times. I want to praise janet yellen the numbers are horrible. Its very clear. Talking adp. Seeing numbers, its like, janet yellen got it right. I think that the sell in may go away is influenced by the fact that april could be weaker because this is the first time in five years i expect big number cuts. I think when ibm reports, not going to say wow, raising numbers ibm, intel numbers cut, microsoft numbers cut. Certain pockets numbers will be good. We dont see retailers until the oven month. Oil companies, numbers cut big. I dont know if theyre cut big enough. So i just say be very careful. Medical Device Companies is i know it sounds like a small group, ew Life Sciences inversion companies, you want to short actavis, you drop five more points. You want to short it . Few people would be bold enough to short actavis. Whether or not they should im not saying. But im saying theres a great deal of momentum to your point and its a hard stock one would expect to get in front of. Im looking at monsanto and i look at it and i say to the staff, monsantos awful how much is it going to be up its up about a buck and a half. Theyre having issues monsanto. When it comes to the europeans. Right, issues are not reflected in the stock. Sam zell would say thats not a correct price. Well, its not a correct price but i can sell you a malshares. In the end the price short term is controlled where you can sell a million shares. Warren buffetts here and watching this, he likes cocacola. He does so . Im saying i think cocacolas overvalued, perhaps. I think buy green mountain, keurig, monster, i change my posture at cocacola. I see godaddy, i think its going to open higher. Godaddy prizece 23 million shares. Ticker gddy which you mentioned. Thats a toppish symbol. Thats it right there. Thats the sign weve all been waiting for. Right . Throw off the mikes, call it a day. Remember the piece of fruit and cheese i dont know. That was not a good sign. Godaddy. Talk to blake irving the ceo later here at post 9. Been around for a long time well marketed still not making money. I think thats telling. Its telling that its not making month makingmake money. I think it raises eyebrows. Thats code for what the heck are they doing . I mean honestly karl this and etsy, you know i feel that these are deals that they could work but i remember last year at this time we had a lot of deals that worked and we looked back at amber amber road i thought it was a kraft beer. It isnt . No. Its not. Remember a1 steak sauce . A1, Companies Went to a premium. Steak sauce, how can you miss . Its a tech company. True. Got to make sure you understand the underlying product. If amber row were to swift into the kraft beer business ipa, younger people like those. By the way, in the First Quarter, 33 ipos is down almost 50 from a yearago quarter. Were starved. We have seven secondaries for pharma biotech. I looked at companies, combined losses are extraordinary. Not a Single Company has profits. Etsy has profits. Etsy selling 16. 7 million shares. I find the deal quizzical, another one of those words you do if youre an ambassador of good faith, the ceo in a town hall two years ago said the companys profitable since 2009. The problem is the prospectus shows operating losses since then. I find that quizzical. I do homework. Shows x, not profitable. Right. What do you make of that. I think chad dickerson is a great name. My daughter sold pillows on etsy, im a size buyer. My daughter good sales on etsy. She sold seven pillows, huge. The three the year before. 120 gain. Rooting for them. Brooklynbased business. Largest Market Cap Company out of brooklyn. No bar san miguel. Which is in early stage funding. I could come public were profitable. Thats the big difference between my company and their companies. Plus were growing, because we have the back of the patio opened soon. Imagine the numbers in terms its 51 degrees today. I dont do this but im going to upgrade bar san miguel. Hold to buy or going buy to conviction buy . Exactly. Play involve channel checks. Buy buy, buy, super duper i love you, you love me buy. Got it. Give me the banking business, please. Im the old school. Im old school. I dont upgrade unless i get banking. You put lipstick on that pig . Bring it on. Hat trick of news involving walmart. Also ahead the Second Quarter begins with high profile ipo, godaddy, ready for its wall street debut. Well talk to blake irving. See if we can grab Danica Patrick who is at the exchange. Sunglasses off or not . One more look at futures as we kick off the Second Quarter and month of april as we look at a bearish market. The pursuit of healthier. It begins from the second were born. After all, healthier doesnt happen all by itself. It needs to be earned. Every day. Using wellness to keep away illness. And believing that a single life can be made better by millions of others. Healthier takes somebody who can power modern health care. By connecting every single part of it. For as the world keeps on searching for healthier. Were here to make healthier happen. Optum. Healthier is here. Wake up, wake up april is the best month for the dow since 1950. The average gain about 1. 9 for the month but well start off in the red as futures are on the weak side. In the meantime big day for auto sales. Fiat chrysler 1. 7. Nissan down 2. 7, better than expected. We are about to get some numbers from ford and gm in the next half hour. Lets go over to dom chu. Good morning, breaking news right now on whats happening with ford. We do have ford march sales coming in at 235,929 vehicles. Again, 235,929 vehicles for march. That represents 3. 4 drop in terms of total sales from the same time last year. Estimates from edmonds. Com for a drop of 5. 4 so a smaller than expected drop in sales for ford. Now they did say that retail sales of 10 in gain for the fseries pickup truck did help power the overall results. Also Ford Explorer models posted 17 gain so trucks and suvs a big part of the story for fords auto sales. Lincoln sales up 7 but overall, ford f1 series pickup trucks boosted 10 for march, explore up 17 . They say, i have been a mustang guy in my day, mustang sales up 36 . But overall, david, headline numbers here down 3. 4 for ford. Estimates down 5. 4 . Thanks very much, dom. Weve got walmart executives here at big board today hosting the companys investor day. Making the case to analysts and investors for growth strategy. A report in the journal says walmarts increasing pressure on its suppliers to cut prices part of an effort to turn around sluggish u. S. Sales, separately walmart ceo urging the governor of arkansas to veto that states religious freedom bill. A lot going on with walmart. The key, certainly that journal story today, indicating were going after price, price, price of the that has always been the key to the strategy of course every day low prices. But the idea being that they want their suppliers to pull back a bit on marketing in store and otherwise put that savings into lowering prices that walmart and offer consumers because thats where competition comes and some believe that walmart has not been competitive on price. The data does back that up especially food. It had trouble keeping with making the lowest price offer to food. Costco give as way food to some degree. Kroger makes money on food efficient operator. Brian cornle someone to watch. Targets back market competitive. Home depots pricing, fantastic. If youre sitting there at home and own Proctor Gamble look out. Thats who theyre gunning for. Proctor, tough to get them to cut price. Yes it is. They are powerful. That is giant going up against giant. They dont typically you pay the same thing for razors here and there and everywhere. When you do the comarking deals who do you think of . Cocacola. You think of proctor, they have so many aisles. So many thousands of suppliers to walmart. Right, no doubt, big guys. Thats a tougher negotiation involving a lot of different things. Talk to proctor, theyll say were able to maintain our price, we have the premium brand. Talk to parago, were doing we can. Hane a blank check. The old days organic and natural they sent you to rice krispy bars. Its interesting, mcmillan does seem to be doing any number of important things and it would seem you were down not long ago on the important wage decision they made. Now speaking up on this arkansas bill asking governor to veto it saying it violates the spirit of inclusion. We asked him to come on air and talk about it today. Thats not going to happen. I mean its surprised some people a company of that size said dont do this. I think a at of people this is a hot button im going to refer you to a new york time stories says these are not the same as 1992. Those are about government intrusion in peoples lives. This business corporate, corporate tradeoffs where a corporation, small corporation, can say no to you to do business. The supreme courts decision in the hobby lobby case which did give power to corporations to say, were not going to do that. Lets just open hand a lot of people feel that this is about samesex marriage and being able whether you get the camera deal. Other people say thats a complete misread. Im saying corporations are weighing in great article about mark benioff and his role at salesforce. Com because they regard this as a corporate issue. They do not regard it as religious freedom. They regard it as a corporate issue. I have to try to do my job and ill spend the rest of the day defending what was in the New York Times which last i looked i guess communist rag. There arent many corporations that have come out on the other side of this which i think is who has . I dont know. I dont know. Blake irving making his way on to the floor, ceo of godaddy. Interesting the companys so wellknown because of the marketing theyve done during the super bowl for the past decade plus, i dont know if most people know his name. No. Interesting in the prospectus they really i know im Old Fashioned reading that prospectus talking about profitabilitys been hurt. Theyre saying listen we experience Revenue Growth over these periods. We may not be able to sustain or achieve profitability in the future. Why . Theyve been marketing so much. Marketing does make it so when you see them, you know who they are. Tom farley on the right with the nyse. Well talk to blake later after the first trade and see how to kicks off. Pricing above the range, 17 to 19. Prices to 20. Values 4. 5 billion. The markets starved for ipos. I hope they have markets starved for secondaries because we have mylan secondary, and a huge Burlington Mylan is the abbott shares. Weve got like. Mylan was weak. Bayne is the largest seller on the burlington deal. So much supply hitting the market its nasty. Well get cramers mad dash, count down to the opening bell and get april started. One more look at the premarket. Squawk on the street will be right back. Hey, girl. Is it crazy that your soccer trophy is talking to you right now . It kinda is. Its as crazy as you not rolling over your old 401k. Cue the horns. Just harness the confidence it took you to win me and call td ameritrades rollover consultants. Theyll help with the hassle by guiding you through the whole process step by step. And theyll even call your old provider. Its easy. Even she could do it. Whatever, janet. For all the confidence you need td ameritrade. You got this. In Small Business you have to work hard, know your numbers, and stay focused. I was determined to create new york citys first selfserve frozen yogurt franchise. And now you have 42 locations. The more i put into my business the more i get out of it. Like 5x your rewards when you make select business purchases with your ink plus card from chase. And with ink, i choose how to redeem my points for things like cash or travel. Hows the froyo . Just peachy. Literally. Ink from chase. So you can. There it is time for mad dash on this wednesday. Its hump day. We always like to mention that. We dont want to lose leadership. Leadership has been the airlines. Deutsche Bank Downgrades american. Seaing international sales, look the strong dollar has hurt and this is who its impacting. And these stocks will go down its very interesting, Credit Suisse says buy spirit air, why . Offpeek stabilizing, saying david, they dont have to worry about international. This is bifurcated. Well get airline numbers. Yes. I think deutsche banks getting ahead of the airline numbers. What about fuel costs low for quite some time. Certain airlines have hedges hard to keep track, understand but theyve come off. Isnt that a benefit . Nobodys lowered ticket prices . I think youre right. I think this is a hedge fund call. Hedge funds get short them and announce numbers and hedge funds have to cover because in the end the pricetoearnings multiple this is not like the old days waiting for carl icahn to buy twa. Theyre coining money. People at home when you ride on a plane and theres no empty seats and youre paying a huge price, well you can short that stock but thats going to turn out to be a mistake because the month of x is not going to determine the future of a stock that sells at sickx times earnings. A group only tradeable to being investable. They are earning above cost to capital. There will be dividends buybacks deltas a cheap stock. I like the airlines. The key the doj allowing american to get together. Slap happy oligopolies, like the rails. Dont get into a hotel room and fix prices because theres no competition. They dont have to. Opening bell just a few minutes away. Godaddy is going public and we will be speaking with the ceo. Were back after this. Hello. I am a fully automated Investment Advisory service. I can help you choose investments. Monitor them. And rebalance your portfolio. I can do a lot of what humans can. Except have a real conversation. If youd like that, you can always speak to someone at schwab. They arent algorithms. Try not to hold it against them. Say hello at intelligent. Schwab. Com youre watching cnbc squawk on the street live from the Financial Capital of the world. The opening bell in 40 seconds or so. Godaddy on the podium about to go public this morning at nyse. We kick off the month of april. Last time all three indices were down in april, 2005. Which is either a good sign or a very bad sign. 2005 pretty much we still had china ramping, we had lots of unemployment. Interesting. I hate that. I know. Keep your eye on gddy. Along with adp, tenyear and more. Theres the opening bell. And a look at s p at the top of the screen. At the big board this morning, as you can tell godaddy celebrating its ipo. Well talk with ceo blake irving this morning. At nasdaq opportunity summit. Michelle carusocabrera right there in blue among those ringing the bell. Cnbc is the official broadcaster of that summit. 9 30 on the east coast, auto sales from gm now, dom chu has that. Dom . Yes. What we have right now are gm sales delivered 249,875 vehicles for the month of march. Again, 249,875 vehicles delivered. That is a 2. 4 drop from the same time last year. Estimates from edmonds. Com for a 1. 4 drop. So slightly worse than expected by just a percentage point. Gm does say that trucks suvs, vans and pickups were up 14 . So again were seeing the same theme develop with larger vehicles driving some of the strength there. Overall Passenger Car deliveries down 21 . Now gms head of sales for north america did say that higher demand dovetailed perfectly with launches of the new full sized pickup trucks and suvs and low fuel prices and successful launches of the chevy colorado and trax models made us bullish. Trucks suvs and pickups, vans everything large those types of vehicles up 14 . Thats where the real gains came from. Passenger vehicles guys carl down a bit, about 21 here in terms of overall march this time around. Back over to you guys. Were not getting a payback how weak february was. No. Remember the stocks trade much more on overseas sales because thats the delta for gm not u. S. , because they make a lot of money on what they are selling. But i continue to think march was weak. Im glad that they didnt take precipitous action. A lot of people came on the shows saying the feds behind the curve. Janet yellen once again, these are not great numbers, theyre just not. Im not able to rave about these numbers. Suringeinge maybe people bought apple iphone 6. Citi today adds to focus list piper reiterates 160 target, were not going to get watch figures opening weekend. But they think its about a million. They think its going to 8 until 15, 2 of revenue. I hate these kinds of calls. Now we have to find out whether its 938,000, 1. 250 no i mean, if youre approaching apple by looking at the weakens sales this is not a movie and looking at the box office. There is a longer tale to the watch. Were not thinking this is fast and furious 8, and that was disappointing or fast and furious 12 this is not a vin diesel movie. Its a device that will have lots of software coming out over time and i predict people will buy it as a Health Device that also tells time. We can try to play the weekend game what they swell it will lead people down a giddy path. Godaddy. Wanted to mention shares of Sears Holding up 8 still up 7 moving quite rapidly. Series of announcements from sears. The retailer, which has been in a seemingly endless involved in an endless series of different divestitures, the latest of which foe kusz on its owned real estate. They are following through on what we already knew was their plan to create a reit going to be call saratige growth problems maryland based, and involve 254 of the companys properties all of which operated as sears or kmart stores. Separately, they have a deal with General Growth Properties to create a joint venture into which they are contributing 12 sear Sears Holding Properties Located at general growth malls involving existing Sears Holding stores and Certain Property leased to third parties in former sears stores. They say designed to unlock real estate value and enhance Financial Flexibility for Sears Holding while providing the joint venture with general growth the opportunity to create additional value, redevelopment and releasing of up to 50 of each property. I guess maybe they take half of the sears stores or whatevers there, do Something Else with it jim. Big cash infusion 2. 5 billion, confounding shorts again. Right. This is kind of comes from a reit deal general growth deal involves this is within where i mean if youre short sears, which is the prepredominant way its a controlled company between bruce berkowitz. That is an arms length deal. You know al of it comes back to when are they going to have the samestore sales number thats anything but down . I think that people who have been waiting for that have been on the short side have been disappointed because they continue to be able to find new lands end, they spun it off, a good quarter, spun it off. Since then it was a flop. I think sears, if you foe to sears, my sears i dont see a lot of people you say unlike airlines, i should bet against sears. Airlines are filled stocks are down, sears is empty and the stock is up because of financial engineering. What is interesting moves on the real estate are things that many bulls seized on years ago. When the home depot kmart deal sold some nardelli on the home depot thing. Here we are more than a decade later along with radioshack in the news standard general gets a piece of this. Are we starting to unoverstore the nation . We do know bricks moore was on saying we dont build malls in country anymore. Shopping centers we dont build. Cant get credit. So the real estate thats left tends to be worth more than we thought. Theyve been spending money redoing kmart stores putting in anchor Grocery Stores thats a big win. Yes, you find something to do with a sear is building. Other than have a sears if you have to. Right. Which that seems to be the case certainly with general growth and the reit a large reit 254 stores is a lot. I think a lot of people said i cant believe theyre able to pull one more rabbit out of the hat. Its not a retailer its a rabbit hat pull. Name in the trust, twitter, back off almost to a sixmonth high. Jeffreys does initiate with buy 65 target. Periscope, video ads, tailwinds working for them. Yeah. Perry scoping, my dog hitting the bu ya button is like a viral. Were at the moment where dick costolo, two thumbs up. What . Two now . Imagine playing that piece of sound three months ago. Hes delivered. You know come on. When the hes delivered. What he has delivered . Maybe one quarter. The last quarter you got more positive. At least they had a filing. When talking about the stock price, thats the only thing youre saying, he delivered. When Mark Zuckerberg said i screwed up in mobile and im going to get good in mobile the stock was in 18. The stocks at 83. Theyre delivering on products and these products are selling. I saw a starbucks ad the other day on twitter feed. Actually. Dollar shave club yesterday, i signed up for it. Did you . I saw the guy and ply twitter feed yesterday i signed up for. Twitters getting some of that. Yes. Atalking about recode putting ads on your profile page so you get some of that offchannel viewership. When the facts change i change too. And the twitter hes doing a better job. Listen, ive had guys on the wall of shame, andrew liver ris on the wall of shame and dow delivered. Okay . Yes. Youve had people on your wall of shame. On the wall of shame the deal was a little mcdonalds was on the wall of shame. First indications on godaddy over at post 8. Lets get to bob pisani. Bob . Its a great start for the Second Quarter ipo. You all know anemic First Quarter generally but weve got a great start here. I just spoke with Danica Patrick, the lovely spokesperson for godaddy. See if we can get a couple of bytes. Fifth career top ten finish for nascar standing here. Look, heres the indications. 20 to 23 on godaddy and i think the important thing here right now is we were talking yesterday, the price talk 22 million shares at 17 to 19. We went at 23 million at 20. So not only did they price above the range, but they priced more shares 1 million more shares im spoke with Danica Patrick just a few minutes ago about her role as a spokesman for godaddy and her role in nascar. Here what happens she had to say. Godaddy and i have a long history together and really im proud to be a small part of the story and to be at a point where were at to be listed and going public. Its a huge milestone for the company. Now a lot of people say, godaddys an old school its not new tech its not growth. But theyve got growth. I want to point that out. Maybe one of the reasons were seeing a high valuation placed on the company. Put up the next screen. They have 21 of the domain business overall. But half of the revenues are now coming from other areas. The important thing is sell Web Hosting Services ecommerce email marking and still growing. 16 organic top line growth thats according to renaissance capital. Thats a respectable number for Old School Tech company. Bottom line weve got growth and a nice price here 20 to 23. Starting the Second Quarter for ipos. An anemic business. You referenced this to short a while ago, 34 ipos priced in the First Quarter. That is half of what priced in the First Quarter of 2014. We had 64. Deal value size was half of that. Important to start on an ipo and nice price pop. A lot of ipos potentially out there. You know about etsy. A couple of we had another big one yesterday that announced, but look whats out there. Weve got uber out there, first data airbnb univision, snapchat pinterest, drop box, ferrari ferrari. We dont have any announcement but theyre out there and potentially could file in the next several of months. Finally a quick market comment. We had some very strange action in the futures. Digging ourselves out of a serious hole. S p futures, put the futures up we were down 25 points in the s p futures little after 8 00 last night. That is a very strange activity. Its not clear why that happened. It may have been related to some strange close we saw in the etfs last night. Xop, the oil and Gas Exploration etf, the end of the quarter, unusual pricing at the close. There was some glitches in some nyse servers earlier in the day, david, and its not clear if there was a connection between all of the activities. Bottom line im investigating but weve got out of a pretty deep hole and were still trying to get out of it right now. Indications for godaddy, still remaining 20 to 23. The dows down 123 points. David . Interesting, of course. Talk about an allocation out of japan and selling etfs there. Nikkei dropped and our futures dropped. Bob certainly referring to that activity. Want to get to deal activity. We mentioned at the top or lack of deal activity if you will, in the kifscase of macerich which we told you would be the case last week. Took quite some time to get there. Rejected Simon Property groups 95. 50 a share offer to buy that. Macerich shares are down. We could show them down over 5 as we await the open of godaddy. We prepared for these things. But they are they are down. It is interesting that they chose to wait as long as they did. About an hour had gone by after nominating deadline closed for directors. Marylandbased company, hard to fight with them. Nonetheless they waited put a press release out, rejected. Simon filed saying we are now done officially, over and thats the end of that. What is interesting when speaking to reit holders and there were not a lot of risk arbs, they are disappointed. And wonder whether youre able to see 95. 50 in the future for the stock or for the reit anytime soon. Thats because the Net Asset Value believed to be around 76 bucks a shire. Significant premium there. Take a look at this. In November Macerich paid 1. 9 billion to buy pension plan for 49 stake in five malls, a joint venture. That was 1. 2 billion a stock. 71 bucks a share where they gave them that stock to pay for the property. The cac rate 4. 7 . Simon comes along, twlees Nice Properties and says well accept a cap rate below that 4. 3 for your entire company. Quality of which is not as high as some of the properties. And yet cheering behind me im not open yet and yet they were not willing to do that jim. Many people who say, this was just a heisman all the way for macerich. Not really providing a plan for creating value that people believed will be the case certainly. 95. 50 a big price. This is wall of shame material. Might be. Macerich side . Yeah. On macerich side. Simon property has come up empty a number of years ago fought to try to buy. General growth tried to get, competed out of bankruptcy and failed again. This is exactly what wall of shame is about. You get a bid and you its a very nice bid from a very good company and we all know that Simon Property is wellrun. Wellrun company. We sit back and say, im not taking that bid, i dont care i dont care . They had an independent committee. The independent committee believed it was not substantial enough number. My reporting indicated simon was not willing to go to 100 which its not clear that would have resulted in a deal. There was a brief phone conversation, it appears, last week, but there was no real interaction between the two companies. Amazing to me. By the way, another indication on godaddy, now 23 to 26. Wow. Interestingly, s p points out, its the third tech ipo yeartodate in the First Quarter of last year we had 14 tech ipos. The markets starved for those. I remain skeptical because im not that crazy about the market in general. I dont like to see a lot of supply. Theres supply coming everywhere. I dont like to see a macerich, that bothers me. These things bother me. We have to be more careful here because, as much as i think the market sold off back and forth and back and forth we dont want to see too many frenzied ipos. Theres a girth of ipos. This is frenzied. All right. Lets go from frenzied to the cme group. Rick santelli joins us as he does every day to report on the bond market. Good morning, david. 24hour chart of tens gives you a lot of information. First thing notice that Something Weird happened at 8 15 eastern. Yes, im joking a bit. Adp was definitely not a number that the market liked very much. But were already slipping in terms of rates and here we hoover at the very important 1. 86 to 1. 88 support level in terms of yield. Pay close attention. On a closing basis. Look at 24hour chart of bunds, some excitement there. Look real close, you can see we traded around 15. 5 basis points on the low yield of the day. Thats another historic benchmark is the bund continues its drop. They are negative in terms of yields out to seven year on the euro curve. And the seven year negative yield is building, closer to 04 minus five basis points. Currency side that gives us reasons to continue to look for some of those dynamics i was just discussing with Interest Rates. Look at twoday chart of euro currency. It cant seem to get traction all of a sudden after kind of holding some of the bounces off of that 105 level. Heres whats fascinating. Europe and germany in particular big export economy. Well japans a big export xleep look at tenyear chart of the euro versus the dollar look at it, now lets switch to euro versus the yen. That tells us volumes here because if there is going to be an ongoing issue with the exporting countries it looks though at euro versus yen might be a better sale at this point. Back to you. See you in a few moments for ism. Rick santelli at cme. Keep an eye on godaddy at post 87 Danica Patrick is in that crowd somewhere. Shes not the tallest glass of water, hard to see. The Web Hosting Company debuting at the big board. Stay tuned for the opening trade. 23 to 26 latest indication. Dow down 152. In my world, wall isnt a street. Return on investment isnt the only return im looking forward to. For some every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as fifty dollars. 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. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. Why pause the moment . Ask your doctor about cialis for daily use. For a free 30tablet trial go to cialis. Com at mfs, we believe in the power of active management. Our teams collaborate around the world, which leads to better decisions for our clients. Put our global active management expertise to work for you. Mfs. There is no expertise without collaboration. Almost every dow components in the red, say, for chevron, barely hanging in there. Down 173. The dows lost 600 points in a little over a week. Well keep our eye on that. On post 8 at New York Stock Exchange, godaddy awaits its first trade, indicated 23 to 26. Well get stop trading with jim in a moment. Lets go cramer and stop trading. Bob pisanis right, weirdness going on. Two fundamental stories out of sync of what people are looking for, kors the handbag company, they say north americas weak. Thats contrary to what we hear about north american retail thats freaking out people. One of the strongest segments of the market aerospace. Here sterne agee lowers estimates from boeing but tells you to buy boeing. Were in the mode where people are say, maybe let it come in and buy. Were marked up very big. Especially the drug stocks. So i say be careful. Let it come in a little. No hurry to do any buying yet. Boeing the best dow stock of the year so far. Lets it come in. Youll get a chance. Im not freaking out. I wish we had more knowledge about the etf situation. Watches futures last night, down 14 15 on nothing. China never came out. Be careful. Let the market settle down. Too much supply hitting the tape. Too much supply. Mad. Fresh pet. This that is Natural Organic for your pets. And then therapeutics md typical of whats going on obgyn stuff, kind of interesting stuff that they do. Talk about it tone. You love dogs we know that about you. I do love dogs. My dogs can both hit the booyah button better than anybody in the country. Taking them from hold to buy. Them too. Mad money, 6 00 p. M. Eastern. Ism coming up first trade for godaddy in a moment. Good wednesday morning. Welcome back to squawk on the street. A very big ipo day at nyse as godaddys going public at post 8. Im Carl Quintanilla along with sara eisen david faber, live from post 9. Simons off today. Another rough session to start off april and Second Quarter. Dow down 164. Every component in red led by bowing and merck, one of the best performing stocks of the year. Watching oil, steady given Everything Else at 48. Rick santelli in chicago. Breaking news on ism manufacturing and Construction Spending. Yes. Lets go to more Realtime Data march, ism manufacturing 51. 5, its more than that with regard to last months unrevised read at 52. 9. It does represent the weakest level on this particular indicator since may of last year when it was 50. 1. Now lets move to february data. February Construction Spending well it was down. 1 as expected. But we did lose a bit more ground in january, originally released it, down 1. 1. Now down 1. 7. I have internals here on the ism, employment moved all the way down from 56. 4 to 50. Right at the expansion contraction line and after todays adp, what we may expect from that report on friday that might be quite important to Pay Attention to. Sara, its all yours. Thank you very inch. We are seeing stocks lower, dow down 160. The dollars weaker as well. The big story at the New York Stock Exchange today, godaddy, waiting for the stock to open over to bob pisani with the latest on the indication. Weve got a little bidding war going on here. This is a surprise. This is an Old School Tech stock, still got growth. This is high bidding interests. 25 to 27 are the indications for the stock. I want to point out to everybody, yesterday the price talk was 17 to 19. So they ends up pricing it at 20, 23 million share, thats a million more. We got it at 20. This morning just as the market opened it went from there, 20 to 23 price indication and 23 to 25. And just about a minute ago, we now are at 25 to 27 here. Remember the big kahuna in the share domain business. They have 21 of that business. The other half of the business Web Hosting Services ecommerce, email marketing. The key thing is one of the reasons theyre getting a bid, it has respectable growth. Just because its old school doesnt mean its not growing, 16 organic top line growth. And normally these kinds ipos are done before 10 00. Because of the bidding interests, theyve been keeping it open morgan stanley, 25 to 27. As soon as we get any change well let you know. Bob pisani. Well speak to the ceo as soon as the stock opens for trading expecting that this hour. First day of the Second Quarter not off to a great start for the bulls. All major averages in the red. Joining us at post 9 from Santa Monica Guggenheim global chief Investment Officer and chairman of investments, scott minert. Youre braving the cold best income small funds group. Im trying to find out how i won the small. But thats okay. Im sure youve used that joke before. With you earlier. Clearly, something going on in the Economic Data that doesnt appear right. Manufacturing jobs were negative in the adp report and rick reported that number coming in below expectations on ism. Is it temporary weather or Something Else going on . When you look back at 2014 a lot of people underestimated the impact of weather on the First Quarter. And people dont remember but we had a contraction in gdp in the First Quarter of 2014. I wouldnt be surprised to see us get a very weak number for the First Quarter. And i wouldnt rule out a contraction at this point. I think the weathers having a massive impact on the data here. And to the extent that it starts to flow through to the markets, especially the bond market rates come down thats going to give us stimulus going into the Second Quarter, the third quarter. I dont see a real negative outlook. Weve heard zero percent but you think it could go negative. Theres a risk. In the Second Quarter, do we get it all back . I think so we get a good bounce back, especially given whats going on with housing activity. If rates continue to drop here which i think is likely in the near term we could see a big pickup in housing activity which would have a big impact on Second Quarter growth. Can you have contraction and still have the fed hike in september . Theres a lot of lot to be said between here and september, carl. And i think that the fed is getting anxious and wants to do something. I think any excuse the fed has to look through the data theyre going to do that. And were going to get some kind of increase. But again, dr. Yellens made it clear, this is data dependent. Bonds have been the place to be, you can argue, certainly for many quarters and, in fact decades, some would argue, a rally here 30year proportion or perhaps. Right. Play come to an end at some point. I continue to be amazed by negative yields. Yesterday germany up to 7 1 2 year maturity negative yields. Explain that in the context of the worlds fixed income markets. First off, negative yields reflect nothing more than safe keeping charges. That is people have to park cash some you know a negative yield is cheaper than buying a vault and putting cash into it. But it done seem to be an explanation. Bernanke wrote rates cant go below zero. Used to store value, currency the short term nominal Interest Rate cannot be pushed below zero. He was wrong. If he said it cant be pushed below zero hes wrong. Experience in the 1980s the swiss bond yields didnt go negative for a period of time. So negative yields are not something unprecedented. But certainly at the scale were at today, you know 3 trillion in europe 3 trillion. I think that the big question is will the overflow of negative dwreeldyields in europe push us to Interest Rates in the United States we think would be completely unable to be sustained. You believe that could be the case . I think thats the risk. Weve been wrong in the past to overlook the tail risks in the market and the likelihood if bund yields especially tenyear bunds were to go to negative yield, could we see u. S. Treasuries in ten years at 1 or lower . I wouldnt rule it out. As long as they have negative rates and their Central Banks are in easing mode that will keep our bonds in demand higher yields . Exactly. When you tie that into the comments by sam zell this morning, about the dollar if youre in the dollar bull camp which i am you know i could see the euro at parity or lower. By when . You know i think some time this year for sure. You know ive been bullish on the dollar you know since euro was at 160. People thought i was crazy to talk about parity. But you know i in that we could probably get the euro into like the 80 to 85 zone. If you think theres no risk that the dollars going to weak on you, why wouldnt european investors just continue to pile into u. S. Treasury securities . What are you doing in that awardwinning portfolio giving your views . Carl mark david. Whoever you are. A get it a lot. [ cheering ] lets thats godaddy. That is the opening trade, 26. 43 is about a 32 increase off of the open priced at 20 of course. The range, 17 to 19 which at that level values the company, Web Hosting Company that you have heard of 4. 5 billion. Pretty nice move in a very rough tape this morning. Well hear from the ceo, hes going to step off the post and join us live on squawk on the street in a few minutes. As we watch the opening trades soaring at the open scott, you dont talk about individual scotts but its a slow year for ipo activity here in the u. S. Is this a good sign . I think so. Look, in the near term i think were okay in the stock market. The question i have is, if we see a weak print on second First Quarter gdp, what will that do to equities . I think we could have a rough going maybe, in the second or third quarter. For the time being, i think these dips are pull backs are opportunities to buying. Even with europes performance in q1 still shopping in europe. Yes. Still shopping in china . Exactly. I think european equities japan, china, india, are better markets to be in than the u. S. I didnt get a final answer on what youre doing in the portfolio in fixed income. Particularly given the idea of 1 rates. David i think the key is to make sure that youre not exposed to an environment where you have ultralow rates and notten vesting. What weve been doing is barbelling the portfolio, weve been buying long high quality, Long Duration high quality bonds and offsetting that by keeping a lot of shortterm floating rate securities. If rates rise the portfolio should do well. And if rates come down were insulated against the event that most of us would think is an outlier event today. Buying the dollar . Bullish on the dollar. Bullish on the dollar. Scott, thanks for joining us. Always good to see you, at guggenheim. We told you about godaddy opening for trade. Bob is literally feet away there 17 to 19 the price, that was yesterday, that was 22 million shares. Priced 23 million at 20. Opened at 26. 15. This was certainly a success. And some of the reasons weve been talking about down here number one, beside the dearth of ipos, this is not just an Old School Tech company, they do have organic Revenue Growth. Weve been noting 16 , thats a respectable number. So people looking for some kind of Revenue Growth can get that here. Negatives people have been messaging me a lot of cash flow, needed to pay down the debt. This ipos going a significant way towards paying down some of the debt what much of the proceeds are going for. But bottom line great start here. As we mentioned before 34 ipos in the First Quarter. Half of the number that we had last year. Other big names coming very soon. Back to you. Thanks bob pisani. Well come back to you in a bit. Godaddy trading sharply higher in its debut. The ceo, blake irving will join us live here on set next on squawk on the street. The dows down 167 points. Oting, burning, pinsandneedles of diabetic nerve pain, these feet. Served my country. Carried the weight of a family. And walked a daughter down the aisle. But i couldnt bear my diabetic nerve pain any longer. So i talked to my doctor and he prescribed lyrica. Nerve damage from diabetes causes diabetic nerve pain. Lyrica is fdaapproved to treat this pain. Lyrica may cause serious allergic reactions or suicidal thoughts or actions. Tell your doctor right away if you have these, new, or worsening depression or unusual changes in mood or behavior. Or swelling, trouble breathing rash, hives, blisters, muscle pain with fever, tired feeling, or blurry vision. Common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. Dont drink alcohol while taking lyrica. Dont drive or use machinery until you know how lyrica affects you. Those who have had a drug or alcohol problem may be more likely to misuse lyrica. Now i have less diabetic nerve pain. And my biggest reason to walk. Calls me grandpa. Ask your doctor about lyrica. Danica patrick there, of course, wellknown associate of godaddy which is surging at the open after pricing at 20 a share. Thats above the expected range of 17 to 19. Joining us first on cnbc here at post 9 is godaddys ceo blake irving. Good to have you back. Welcome. Congratulations. Thank you. Thank you. I guess better late than never, so to speak, right. This has been tried before. You filed and withdrew . Its interesting, the founder, bob parsons, an amazingly brilliant marketer in 2006, did think about going and got very very close and he decided that the market wasnt right, and it wasnt the right time for him. We have been delivering quarter after quarter for quite a while. We have a Great Customer base 13 million customers. Weve grown to almost 60 million domains under management today. We help little companies do their best work and get online digitally and transact with their customers. Frankly, the market is trading us well today. But its just a day, right . Weve got to deliver quarter after quarter after quarter and, frankly, this is super exciting like i have a lot of employees here that are just on fire and you know its a day and its a great one and important one but its a milestone. The hard work begins again. And the hard work begins. What is right about conditions now . If conditions were wrong in 06, why now . The state of Small Business is very acute, the need state is there. Small businesses need to have a digital presence to transact business, to be bigger than life. And what we do is enable them to get a great name hey, i have an idea i want to turn it into something real. I name it i turn it into something digital, stand up a website on it and now im in business. And the tools in 2006 to do that werent where they are today, right in technologys advanced a lot in a decade. And what folks can do online is run an entire business without any brick and mortar involved. And frankly, that is what we do. We do it in 37 countries, 17 languages around the world today. A lot of people have written today in anticipation of the ipo about the brand, the rebranding that youre trying to do going from some of the racy edgy super bowl commercials that weve all known and trying to portray yourself as Something Else. You its obviously a big deal for business and customers because you mentioned it in a risk factor. It needs to be successful for you to grow. How are you going to do that. Lets talk about that. So bob parsons, again, great marketer, did a ton to get attention, right . Just drove Brand Awareness like crazy. Like we enjoy 81 aided Brand Awareness in the United States today. We have attention. What we need to focus on now is telling people what we do and who we do it for. So were still keeping our edge were still doing what i call you know funny advertising thats a little edgy and very different, but it talks about that small customer that small customer we do business for. Interestingly enough if you go back through the last two years of advertising, tv advertising, youll see that most of the women in our ads are Small Business owners and theyre building a business. In fact in the United States 58 of Small Businesses are run by women today. Not bar raf file the supermodel, i assume. That was a very effect everybody way to get attention but it didnt tell people who we do your best work for. Got it. If you can go back and redo the earlier marketing effort, would you do it differently . I wasnt here. I frankly think bob was supersmart on how to drive awareness and drive share. And he did just that. Frankly, its allowing us to take that platform fill it with something that has got a lot of meaning for Small Business and drive it. Not just drive it in the United States. If i go back three years, we were in the United States only in english, u. S. Payment time only u. S. Currency and now in 37 Different Countries with 17 languages, currencies, payment time types for almost 37 countries and that sort of edgy fun advertising exists in all of our tier one markets outside the United States as well and talks to the Small Business person that we do our work for. Blake, despite what is significant Revenue Growth and growth in customers, youve been in business for a while, youve got a reported profit. When are those profitable days coming for the company . David, sassbased businesses are interesting and we run the business on a cash basis. Look at Free Cash Flow we wont go into numbers, on a Free Cash Flow business, we are a great business. What were capitalizing really anything. We pay for everything right up front and we actually have to amortize our cost over a period of time. So that always creates a little gap weirdness. Right. But on a cash basis, were doing really well in producing great cash flows. Which is why private equity was interested in you and bought the company in 2011. This ipo was largely deleveraging exercise proceeds paying down debt . There proceeds used for strengthening our Balance Sheet, so well strengthen our Balance Sheet and be quiztive in places where it makes sense. For corporate purposes where we can help our growth both in technology, weve done really Interesting Technology acquisitions about eight in the last 24 months and youll see more of that from us. You can use your currency to do those deals. We have a public currency known now. Thats really between making sure that folks know what a strong business we are, folks know the brand and frankly equate it with danica who is here today or nascar or racing and they didnt understand the business and how strong the business was. Its a great business. To be able to be measured in a public market, quarter after quarter, is something that the companys anxious to do. Folks understand not just customer but our business. Isnt it a competitive business . I saw an ad earlier for web. Com, does the same thing, catering to Small Business building out facebook pages and bigger guys i would think, google amazon facebook offer services to your clients. Look the Small Businesses are a big business frankly. There are 75 of businesses in the United States are sole proprietorships, 85 have 5 or less. Theres plenty of market to go around and weve been pushing quite hard on delivering a continuum of service all the way from get a great name to build a great website to run your back office and that continuum is different than web and the other competitors that are in this space who do a little bit of what we do but dont do the entire suite that we provide. As you have been talking weve been watching danica doing plyo pushups on the floor of the exchange. That aside, you mentions s. A. S. Companies, right . Dont show direct profitability metrics the way other companies do. They receive an extraordinary amount of scrutiny from the market respect you prepared for that . Look were running a great business. On a cash flow basis, its very clear that investors understand it understand this type of business, and have been dealing with it for a long time. S. A. S. Based businesses are not new in the market they understand it. Frankly, as long as we are running our business the way we have been servicing our customers, weve been smart on balancing ebitda expansion with Revenue Growth very strong conversion to cash flow off of that ebitda. Were going to be just fine. So im not concerned that folks dont understand s. A. S. Businesses after two weeks on the road its clear they get it. Yeah. Weve been talking about it a lot here thats for sure. Congratulations. Blake irving joining us, godaddy, of course which is trading up better than 30 gain. Lets get to dom chu. Breaking news on toyota sales. Sara what we have here is toyota reporting u. S. Sales across all brands for toyota motor sale of 225,959 units for the month of march. That is a 4. 9 increase over the same month last year. That beats edmonds. Com expectations for 4. 2 gain and again, same kind of story playing out, toyota says its light truck sales up 11. 5 to a new march record. Also that their lexus brand, luxury brand, set new First Quarter record around 77,180 vehicles delivered and sold. Strength here again, from Sport Utility vehicles and trucks for toyota. Those numbers, headline 4. 9 gain sara versus estimates for 4. 2 gain for toyota. Back over to you. Those keep gases help. Chairman and ceo of citizens financial will be joining us live the bank spun off from rbs this past september. Stock is up. Find out what the ceo has planned for the future when we come back. In Small Business you have to work hard, know your numbers, and stay focused. I was determined to create new york citys first selfserve frozen yogurt franchise. And now you have 42 locations. The more i put into my business the more i get out of it. Like 5x your rewards when you make select business purchases with your ink plus card from chase. And with ink, i choose how to redeem my points for things like cash or travel. Hows the froyo . Just peachy. Literally. Ink from chase. So you can. Well, sir. After some serious consideration id like to put in my 15year notice. Youre quitting . Technically retiring, sir. With a little help from my state farm agent i plan to retire in 15 years. Wow youre totally blindsiding me here. Whos gonna manage your accounts . This is a devastating blow i was not prepared for. Well, im gonna finish packing my things. 15 years will really sneak up on you. Jennifer with do your exit interview and adam made you a cake. Red velvet. Oh, thank you. I made this. Take charge of your retirement. Talk to a state farm agent today. Do you have something for pain . I have bayer aspirin. Im not having a heart attack, its my back. I mean bayer back body. It works great for pain. Bayer back body provides effective relief for your tough pain. Better . Yeah. Thanks for the tip introducing the new canam spyder f3. With a cruising riding position and the most advanced vehicle stability system in the industry. Youll ride with a feeling of complete freedom and confidence. Visit your canam dealer and test drive the spyder f3 today. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Shares of citizens financial grew up more than 12 since the banks ipo last september and a second offering spinning off citizen from the royal bank of scotland rbs, holding a Minority Stake for the First Time Since 1988. Joining us to discuss the banks master plan Bruce Van Saun chairman and see of citizens financial. Good to see you again, bruce. Likewise. You, yourself, have called this a turn dps around story. Investors are buying it. Where are you in that process of cutting costs and growing the business again . I think were making good progress. Weve had two quarters now as a public company, results have i think, met or exceeded expectations. And all of the initiatives that will drive that improved performance, i think, broadly speaking, were executing well on that. So on the consumer side hiring up Mortgage Loan officers, hiringwell hiringwell Wealth Advisers in student, hopefully mortgage picks up and on the commercial side we add great people and see good loan demand there as well. Youre also adding heavyweights from wall street former executives out of citi group, jpmorgan to your top team what happen are you building . What is the vision for the company . Is it a new england Regional Bank or do you have bigger higher hopes for it . Right now we want to become a Top Performing Regional Bank. So, you know through the foreign ownership, not being a public company, we had lagged in terms of our performance recovery to peers. Our goal is not just to catch up to the pack but move ahead of the pack and really one this bank well. I think we have really good raw material to work with and a good foundation. We just need to keep driving that. And attracting really good leadership is pivotal to that. Once we get the bank running well we can maybe dream bigger dreams down the road. Right now my goal is just to make sure we get there is bank performing very well. What are you seeing in terms of loan growth . Were hearing that commercial lending is up thats a big driver. What are you seeing in term of the underlying business here commercial versus consumer loans . I think our middle mark and mid corporate customers are doing well. So theres plenty of expansion opportunities and taking down credit, so we think thats terrific. Over on the consumer side consumers are starting to pick up a little bit, autos been hot. So were participating in that. Weve come out with a great refi product in student loans, so recent graduates have good credit, good jobs good credit can refinance their existing debt and save a fair amount of money. Those are two areas of note on the consumer side. Bruce, hang on for a moment. Well get back to you. We want to go to Jackie Deangelis at the nymex. Good morning to you. Department of energy saying that last week we saw build of 4. 8 Million Barrels in our crude vin inventory, more than we were expecting, less than what we got from the api last night. Prices rally after this number up 60 cents over the 48 mark, 48. 13 where we stand now. We were down yesterday. So we could see some buying today because people are disregarding the inventory numbers and just sort of buying the dips and doing shortterm trades. Also, of course all focus is on the Nuclear Talks with iran the deadlines have been extended. Some traders saying its a positive sign looks like framework is there, others saying delays are not good and it could mean we dont see a deal anytime soon than could be supportive of prices because iranian oil wouldnt come back on the market. These are factors to consider. Dollars a factor as well. Different angles on the crude oil trade. Overall, higher prices on the back of another 5 million build in crude stock. Stole with us Bruce Van Saun chairman and ceo of citizens financial. On the volatile markets, its not just oil, its the dollar stocks. This question of what the Federal Reserve is going to do whether we are indeed going to see the first rate increase this year since back in 2006 i would think that would be helpful, bruce, for your business. Absolutely. You know the forward markets are saying that theyll likely be a couple of rate hikes this year. I think that the fed will be cautious in terms of how they proceed. But that will be very helpful for us because we have whats referred to in the trade as an asset sensitive Balance Sheet which means our Net Interest Income comegoes up. Good of you to join us. Bruce van saun the ceo and chairman of citizens financial. When we come bangck obstacle of trading with cuba. U. S. Under secretary of international trade, after the break. Dow is off the lows as we sometimes say, down 138. Im sue herera. Heres your cnbc news update at this hour. Britains foreign secretary says he is optimistic more progress will be made on the iran fluke talks which have been extended past yesterdays deadline. Irans Deputy Foreign minister hopes a joint statement could be issued soon. In jerusalem, israeli Prime Minister netanyahu welcomed john boehner to israel. Both spoke about the strong ties between the two countries, despite tensions with the Obama Administration over the prospects of a deal with iran. Ceo of luf tans 15 visited the crash side in the french alps where 150 people were killed. They laid wreaths at a monument to the crash victims. Back here at home the coroners investigation into what is being called the accidental death of andrew getty is under way. The body of the 47yearold heir to the oil fortune found in the bathroom at his Hollywood Hills home. That is your cnbc news update for this hour. Lets get back to squawk on the street. Walmart u. S. Ceo hosting investors and analysts at New York Stock Exchange. To talk about his strategies for the business Courtney Reagan with more on that. Good morning. Unfortunately, media wasnt invited to attend today but we are listening via webcast. First investor day, hes a key lieutenant for walmart ceo Doug Mcmillon. Joining him today at the investor day u. S. Cfo and coo in addition to charles holly, he began by saying the retailer isnt updating forecasts today, that instead the presentation will focus on staying relevant for the change in consumer making shopping fast easy friendly. The presentation, sichlgmple. This will be the year for improving Stores Including improving merchandise, noting that theres too much inventory in the back room too many displays making harder for employees to keep up. Focusing on improving digital options for shopper and investing in price to keep them low. Walmart urging suppliers to cut back on spending money on joint marketing so that walmart and the suppliers together can offer shoppers the lowest prices on merchandise. Walmarts most recent quarter, samestore sales improved two straight quarters of positive growth. Investors hoping its not an aberration but a new pattern. Its a tough trend to maintain in todays environment. As the companys second youngest chief executive officer, Doug Mcmillon heeds made big statements, raising wages. Walmart tweeted a statement from Mick Mcmillan saying arc ashs bill undermines spirit of inclusion, asking hutchinson to veto legislation. Quite a political statement from the u. S. largest private employer and headquartered in arkansas. Thanks very much Courtney Reagan. On that note another notable ceo has been speaking out against the indiana bill the rfra contentious religious freedom bill nike Ceo Mark Parker saying nike stands for inclusion for all, we believe laws should treat people equally and prevent discrimination. Nike has led efforts alongside other businesses defeat laws in oregon and opposes the new law in indiana which is bad for business, employee consumers and society as a whole. We hope indiana will quickly resolve this. No word on the modification but we are told it is coming in the law. More ceos getting involved. The cuba opportunity summit taking place at nas nasdaq today as u. S. And cuba work on reestablishing diplomatic relations after 50 years. What does this mean for American Business opportunities in cuba . Our chief International Correspondent Michelle Carusocabrera rang the opening bell at nasdaq today and joins us with a key newsmaker from ta event. There are more than 200 investors here, there was a waiting list as well high interest for what is a very small base of 11 million people. Very poor still. But lets talk to the undersecretary of commerce stefan selig who is here addressing a lot of the questions to investors today about what the changes mean and how fast were going to see changes within cuba. Good to have you here. Great to be here. So many investors here. Are they getting ahead of themselves considering the lack of infrastructure, lack of rule of law in cuba . Its going to be a long slow, deliberative process. The first step that the president has embarked on and i think everybody here is excited, throw, about the road we have in front of us. What is the ultimate measure of accomplishment or that the policy has worked . Well its about empowering the cuban people, it is about leading them down a road that will lead to prosperity democracy, freedom for the country. The embargo is still in place. The president can do a lot with executive orders and the changes that hes made already. I want to show you two stats a big survey done of cubanamericans who have traditionally voted to keep the embargo in place. They were asked two questions, hey, nike can do business in places like vietnam, china, so can cocacola and pepsi. Should those companies be able to sell their products to cuba . More than 60 of cubanamericans surveyed said yes. When it comes to ending the embargo less than 50 of the cubanamericans surveyed big voters on the issue, said yes. Those are inherently contradictory opinions at this point. What do you think ultimately happens when it comes to the embargo . Does it end anytime soon or is it just because of the way voters are in florida were not going to see it . The president was clear in his remarks hes called upon congress to lift the embargo and lopefully we will see that happen. But this is a complicated issue. This is a complicated relationship with the country. But i think fundamentally the American People are very supportive about what we are doing that will empower the cuban people and proceed down a new path. Viewers have recently seen paris hilton travel to cuba Naomi Campbell there as well. When you speak with member of the administration, when the policy was being announced, as a journalist, it felt to me they wouldnt say it explicitly but that enforcement wound be very strict when it comes to travel and tourism to cuba in particularly. Am i reading that wrong . I think you are. Tourism is still not permitted. But for american citizens to cuba. But there are 12 allowable categories to allow american citizens to visit cuba. One of them is to build commercial professional relationships and advance their professional interests which is why so many Business People are here today. A hurdle to reestablishing diplomatic relations opening the embassy, cuba wants to be removed from the state sponsor of terrorism list. Yes. That is going to happen . Theres a process that the state department is embarking on and we are continuing to move down that road. So we will see what happens but it is a process. What would you sty critics who even those who are far to the right and say, yes, policy should have changed but that Obama Administration could have extracted more from the cuban government as they put together this deal . Look this is as i used it tell my clients, this is about strategy and not tacktics and the president em barged on an unbelievablebly important and correct strategy to open up diplomatic relations with cuba and to begin a process that will fundamentally em power and help the cuban people and thats really not about timing ordeal dynamics, its about doing the right thing. That thats what were trying to do. Former colleagues watching. Do you miss wall street . Great to be back in new york. Its my hometown. Thanks for doing this. Back to you. Well be live with the ceo of the norwegian cruise lines as well. Michelle carusocabrera at the nasdaq. Over to robert frank. Breaking news on lynn tilton and the s. E. C. Charge. Lynn tilton and partners filing suit against the s. E. C. This morning, claiming it violates their right to the constitution. Now, basically lynn is saying that by having this move to the Administrative Court s. E. C. Trying in its own court that violates her right to a fair trial. Administrative court doesnt have the same appropriate forum it doesnt allow Due Process Rights available to litigants in federal court. Again the s. E. C. Remember on monday charging lynn tilton and pay prearc with fraud, misrepresenting value of loans to investors, lynn tilton fighting back saying holding this in Administrative Court she doesnt have the right protects in a federal court where she would want this to be heard. Thank you very much. We heard mark cuban on squawk box saying there were red flags in this case. We should add, lynn is live on power lunch today in the 1 00 hour. Tune in there. All right. More about that case. Her new charges, she said she was fighting back. Coming up in a little more than three weeks the apple watch goes on sale. Piper jaffrays jean munster thinks apple could sell 1 million watches 0 the opening weekend. Joining squawk alley live to explain his prediction. Well be right back on squawk on the street. Theres a problem with las vegas and it could point to more bad luck for casino stocks. Plus, why the First Quarters worst performer could fall even further. All that and more on tradingnation. Cnbc. Com. Check out the live segment in power lunch. More squawk on the street after this. You get a trade idea about, say organic food stocks schwab can help. With a trading specialist just a tap away. Whats on your mind lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. Take a look at health care today. Obviously not working, along with several other sectors. Energy the only thing that has any action to the upside. Dom chu at hq. Health care is standing out as the worst performing sector by a factor of two after health care spots took the top spot best performing sector in the First Quarter. Now among the biggest losers today, universal Health Services regeneron, abbvie down by 3 or more so far on the session. Back over to you. Thank you, dom. Over to chicago now. To the cme group. Rick santellis got the santelli exchange. Good morning, rick. Good morning. Indeed today is an important morning whether its the data jobs data for adp. Id like to welcome my guest, richard farr thanks for taking the time. Thank you for having me on, rick. All right. I guess lets start at the adp, it was a bit of a disappointment but its not the end of the world, still close to 200,000 jobs. Did you have any observations on private hiring outside of the government to reflect in that number this morning . Yeah you know rick its a fine number anything around 200 is fine number. Anything around 200 is consistent. What you see in the data is the slow down in manufacturing. Thats consistent with all the data you see in the build of durable goods inventory. We still believe the u. S. Is in a transition of the energy boom and manufacturing boom. More consumer housing led economy. So wait. Youre looking at housing as being a tail wind at some point. Yeah. The Demographic Data is pretty compelling for housing. The question is when these 30yearolds get out of moms house, where are they going go . More to an urban environment . Or does that tide lift all boats and start to improve some of the suburban housing . And you know i have been reading a lot of stories and blogs that kind of take the other side of that. One comes to mind. I know that zee row hedge had a story about sad news for the biggest housing bubble and they reference San Francisco having one of the biggest price drops in three years. Comment on that notion srks that a leading indicator that maybe you disagree with . Sure. I think it may not be this time. The Demographic Data is pretty compelling. Its nationwide. In the case of San Francisco and that zee row hedge article where they are talking about russian money coming into the skpus some of the higher end housing markets, thats certainly the case. It holds rationally that you would do. That china is doing a lot to get some of the froth out of the market and speculation out of the market. There are concerns for russia and the currencies. The problem there is who are you going sell the house to . The tech jobs. Were out of time. That is a very important point to pick up on next time. We want more good jobs and more high paying jobs. We thank you very much. Go daddy of course debuted at the big board and joining us on set to talk about that and a lot more is the president of the New York Stock Exchange. Its good to have you back. And a tek ipo which you might argue that the New York Stock Exchange was not known for especially. Times have changed. Were the leader now at tech. It was an exciting ipo. Last year we won 62 of all tech ipos and 90 of all tech proceeds. Times have changed and things are going well. Are you sensing that its as competitive as ever to get those or is the nyc pulling away . Its very competitive, particularly with domestic companies. So it is very competitive and that competitive nature accrues to the benefit of those listed companies but we are winning the majority of the deals and particular were winning the larger growth geared companies. Looks like etsy is going to open on the market. Did you pitch them . I did. Theyre an ipo company. Even this year we are the leader in the u. S. In terms of capital raising. So we cant win them all but we are winning the vast majority. It has been a dramatic slow down. We just got the data. I think slowest ipo year so far in two years. Why is that . As you said Interest Rates, the vix is low and stable. The actual prices. My theory is that you saw. To some extent it pulled into 2014. The pipeline is extensive. Theres a lot of Great Companies particularly in tech. So it wouldnt surprise me to see a bit of a pick up today as we move furter in the year unless some of the fundamentals do deteriorate. They still ask about the longevity in this room as a real platform and not a museum of sorts. Any clarity or update on that . This room is hugely valuable for us but its very valuable for the list of Companies Really for two reasons. One, that interaction of the humans and technology thats unique led to an absolutely perfect debut for their stock. The stock opened at 2615 and traded very, very smoothly. Thats an excellent debut. Secondly the marketing value of this floor is significant. You saw go daddy and danica and their car. No other exchange in the world. A lot of money to pay for a marketing opportunity isnt it . It is. Its not inexpensive to keep that up. No its not. Thats one of the things we tell companies. Were the high cost provider with respect to listings but that in turn means were the high value provider and its a cost we dont mind providing. I like the little sweater thing. I wore a little go daddy swag. Good to see you. Lets go over to john. Well we have got jean menacer the that he expects the apple walk should do. Amazons got a new kind of buy button and its not on a screen. Well tell you about that and its most important social Media Company that you have never heard of. Okay, listen up im reworkin the menu. Mayo . Corn dogs . You are so outta here aah [ female announcer ] the complete balanced nutrition of greattasting ensure. 24 vitamins and Minerals Antioxidants and 9 grams of protein. [ bottle ] ensure®. Nutrition in charge™. You can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. I love my mileageplus® explorer card. Were saving our united miles. For a trip to hawaii. We love free checked bags. Ive saved 75 in checked bag fees. No foreign transaction fees means real savings. We can go to any country and spend money the way we would in the u. S. One of the best things about priority boarding is you can just get on the plane and relax. I put everything on the explorer card. I really want my united miles. At mfs, we believe in the power of active management. Our teams collaborate around the world, which leads to better decisions for our clients. Put our global active management expertise to work for you. Mfs. There is no expertise without collaboration. Good morning. It is 8 00 a. M. In scotsdale, arizona. Squawk alley is live. Welcome to squawk alley