The fed chair will be testifying before the Senate Budget committee this time, starting at 9 30 a. M. Eastern time. She told the join the Economic Committee the economy still needs plenty of support and that the markets are not in bubble territory. Valuations are in house torq historically Interest Rates are historically low. That feeds into the valuation. Theres that linkage. There are pockets where we could see valuations in smaller cap stocks but overall, those broad metrics dont suggest that we are in obviously bubble territory. In reaction to her comments, the dow managed a triple digit gain, closing at 16,518. The s p 500 also picked up ground adding ten points. The nasdaq, though, dropped 13 points. The nasdaq looked worse earlier in the day, though. You did see much steeper declines. It was boosted into the decline of 13 points by the end of the day. The futures right now, youll see at this point dow futures are indicated higher about 13. 5 points, nasdaq up by 2, s p up by 1. The tenyear yield, yesterday it was below 2. 6 . This morning, that yield ticked slightly higher, 2. 631 . That obviously is still something the stock market will be watching closely. Lets get over to andrew. He has more of todays top stories. Good morning. We have Corporate News for you this morning. Tesla reported First Quarter results after the bell. The electric carmaker earning 12 cents a share, 2 cents ahead of estimates thats good news. Revenue beating expectations, coming in at 713 million. Its outlack for the Current Quarter disappointing some investors. Tesla sees the delivery of 7,500 model s vehicles in the second quarter. Well talk about this in just a few moments. Kcup maker Greene Mountain reporting betterthanexpected revenue. We should little you about alibaba with morning, just filing for what could be the biggest ipo in history. Now the chinese ecommerce giant striking a deal with amazon rival shop runner. Shop runners whose partners include Neiman Marcus and nine west will use alibabas infrastructure to launch in china later this year. That move would offer a way for u. S. Retailers to access this company. Shop runner launched four years ago. Currently has over 1 million members and is still very small compared to amazon and ebay. Joe . Over to you. I missed you, i missed becky. I was here yesterday. You forget. Sorry. You were probably overshadowed by the big tall guy that wont take off his jacket. Thats all right. Youre so nice. Its a protest. You want no jacket. This is a working set. When in squawk, do as the squawkers do. But no. Barclays unveiling an overhaul plan that would have the british banking giant cutting 19,000 jobs over the next three years. The company will also separate noncore asset into a bad bank. I like just the term. Very bad. These is a bad bank. Where it will house much of the european banking. Youre a very bad bank. Youre a very bad boy. I want to talk about something else. Are you going to go where we were just going . No, im not going anywhere near there. All right. From now on, st. Patricks day and cinco de mayo, i dont know anything about anything. Basically were dividing the bank into two, a core group of four strong businesses that are well fogs positioned in their ms with good Growth Prospects or returns. Were combining our personal and Corporate Banking interested in the uk into a new business. We have our barclays car payments business, our africa interests and Investment Bank which will be much more focused on clientled origination and a smaller plan going forward. Let me say one thing before we get to astrazeneca. This is in a nutshell is what occurred to me yesterday. The import export numbers came out, both were weaker than expected. Analysts say that the economy probably contracted in the First Quarter. Remember we got 0. 1. They think its down 0. 8. That means for the next four quarters we need to do 4 plus to get to 3 and the tenyear, the way its acting is not forecasting anywhere near 4 . I dont know what that means. Somebody was saying before, Steve Liesman was saying, because i worried about that, too. Dont worry about it. You said when you then come back its easier to make a much bigger gain off of it. Its stretched. I was thinking its gpa, right . If you get a 2. 0, youre never getting that back to a 4. 0. I know that. That happened no, it actually didnt. I just came down. Started the psych major with a 4. 0 and by the time i hit molecular biology speaking of which. Astrazeneca, shares gaining on the speculation that pfizer is ready to return with a higher bid. People in the know say its about money. The British Government is there any way we say no, we dont want your tax dollars. Im sad were not somehow going to try to keep pfizer here. We are. Its not over yet. You dont think theres going to be calls to do something . Then we cant when we try to do something somewhere else, people say you cant buy us. Right now its 20 . Theyre trying to change it to 50 . They can do that quickly before this. Im surprised congress we talk about the issue here. I think a lot of people in new york you dont hear it out of washington. No. Im surprised by that. I dont think they do it just on this. Pfizers previous approach which was promptly rejected. The value of the cash and stock offer has slipped because of a fall in pfizer shares, following results. Ian read will try to lay out the merger next week. I think hes over there arguing or representing or doing whatever important people do. We have offices there. We do. Why would the uk give them a hard time about this . They wouldnt. Why is there even a question . Why is astrazeneca isnt astrazeneca saying they want more money. Dont stop, dont stop, dont stop. I know what i am but i want more for what i am. Pretty much. You think theyre using the government as i dont know. I dont know. I dont know whether they want to stay out of pfizers clutches or want a better deal. You never know. Usually its money. A lot of times its ceos that dont want to lose their jobs or boards that dont want to be kicked out. Ian read probably has ten reasons to do it. And the number on the other side the amount in dollars. The reason is no longer relevant. Turning now to the crisis in ukraine, russian president Vladimir Putin calling on promoscow separatists in ukraine to postpone a vote on succession, just five days before it was to be held. It was the first time that putin has given that he would not endorse a referendum planned for sunday by prorussian rebels seeking independence in the east. The russian leader also announcing that he is pulling Russian Troops back from the ukrainian border. The russian markets seeing some relief in putins comments on wednesday. You can see the micex is down by 6 points. Youre not seeing even worse gains than you might have been doing otherwise. Oil prices right now are down 24 cents, theyre still above 100. The dollar today, if you want wato take a look, euro is at 1. 3941. Dallas yen is at 1010. 75. Theyre up about 3 this morning but still below 1300 at 1, 291. 902 291. 90. Ford shares moving higher on that news. Also in the auto world, a case of good news and bad news for automaker toyota. Its reporting a record profit for the fiscal year that just ended march 31st. It also became the first automaker to sell more than 100 million vehicles in one year. However, toyotas also saying it sees profit dropping 2. 4 for the current fiscal year which would put it below analyst estimates. Currency fluctuations which helped toyota the last year are expected to have a negative impact this time around. Youre still sick . How long did it take you . I still cough at night. It was over a month. When the voice was gone it was a dry, painful thing. Now its just a mess. I think you need antibiotics. No, its not antibiotics. It has nothing to do with i was on three cycles of antibiotics. Im not going to add to the problem. I waited 21 days before i got antibiotics. Youre adding to the problem to society. When youre adding treating a viral obvious viral infection. Everybody is doing it, man. It is wrong. I didnt get antibiotics until after 21 days. You settled one thing which is a huge issue in my house. When you take an antibiotic, its not that you are going to become immuned to the antibiotic, owe site becomes immuned. There are people who think its the opposite. The science getting thrown around lately. Tesla posted he needs a kleenex. I was coughing last night still. This is five, six weeks. Rough night. Tesla posted earnings of 12 cents a share, beating the street by 2 cents as you heard andrew say at the top of the show. The stock was down 12 points, plummeting after hours. With us to break down the numbers is colin rush, Senior Analyst at northland capital markets. Do you have at your finger tips what this is trading at in terms of next year on some metric . What is the stock valued at now, colin. Youre looking at a big multiple for next year. Its Something Like 80 times. I dont think thats the story. This is a longterm story. Investors are not lo looking next years numbers. The auto mark set pretty tough to be a survivor and be able tyou saw what happened o the chryslers in the 80s. You saw what happened to all of them recently. It takes a lot of capital to run a car company. You think that this is an electric, we should discount this, there will be no bumps in the road at all. If you look at how much money these guys are have spent to jen rat a profit, making a dent, youre looking at less than a couple billion. They bought a 2 billion facility for about 60 million. They ran manufacture 20,000 vehicles a year. A company that has 25 Gross Margins going higher into the 20s and has optionality in terms of what they can do. No argument on any of the points they just made. The company has half the capital generalization of general motors. That seems like quite a stretch. Theyre changing the technology thats been in the transportation market over the last 100 years. To see these guys to be able to come in at the cost numbers they can come in at, and still be generating cash on the p l, is impressive. I think thats why theyre getting credit from a value standpoint. Lets say there was not 2008, 2009, lets go through a run of the mill recession at some point in the next five years. Theyre ready for that . I think this Management Team will see it relatively early. At this point, you know theyre going to see it relatively early . Why would they see it relatively early . Theyve been able to decline out very, very well in terms of the demand profile. Theyll see a level of decreased demand before. Theyre still going to be spending capex like crazy. A lot of money going to be spent ramping up. My question to you guys is why are you poopooing the effectiveness of this capital Management Team . Its not a question against management. Its in the a question against anything theyve done. I give them kudos on all those counts. In the 60 minutes piece, elan, without that rocket launch that happened to work after four or five failures, there wouldnt be a tesla now, i dont think. It was that close, right . Apparently. All right. Well, i dont think thats particularly relevant to the stock at this point. You know, the capital that theyve deployed and the way this company is executing in terms of their product development, the sales theyve been able to generate, the buzz theyve been able to generate, the brand, i think were in a good position with this company. And wa were looki and what were looking at is whether they can execute on the promises they made the street. Well be watching. We want to stay we need to ask questions like that. We dont want to go through 1999 again where people are embracing it and no one asks any questions. Well have Jonathan Bush on to talk about the bubble basket. The notion that theres a lot of stock what are they trading at . Triple digits. Well talk about that. Actually this next guest can talk about some of this, too. Member of cnbcs disrupter 50, getting another big backer. Yahoo s Marissa Meyer is getting involved. As we head to a break, check out the earnings calendar. Were expecting results from priceline. Com, Liberty Media and amc networks and many, many more. Squawk box returns right after this. Passenger road trip buddy. Lets put some music on. Woman welcome to learning spanish in the car. Passenger youve got to be kidding me. Driver this is good. Woman vamanos. Driver passenger vamanos. Woman gracias. Driver passenger gracias. Passenger trece horas en el carro sin parar y no traes musica. Driver mira entra y comprame unas papitas. Vo get up to 795 miles per tank in the tdi clean diesel. The volkswagen passat. Recipient of the j. D. Power appeal award, two years in a row. We have a disrupters story this morning and our executive edge. Its called wealth front. Theyre an automated Investment Firm in disrupting the traditional financial Industry Services industry. Its got bigname backers including venture capitalist, mark andreasen, ben horowitz and marissa mayer. Here is the president and ceo of wealth front, adam nash. Great to be here. For those who dont know what this is, give us a 30second zplangs of h explanation of how wealth front works. Its quite simple. Were the largest and Fastest Growing automated investment service. We provide an Index Fund Portfolio without the high minimums or fees of the traditional provider. If i called Charles Schwab and fidelity, what is different what you do as oppose todays what they do. We do 11 different Asset Classes. They wont automatically monitor and maintain that portfolio every day. We do rebalancing, intelligent dividend reininvestment and tax loss harvesting on a continuing basis. If i tell you 20 bonds, 80 stocks, as that moves youll continue to move that money around. You take a questionnaire with judge your risk tolerance. We give you an asset allocation. Different Asset Classes make sense in different accounts. Muni bonds might week sense in a taxable account. Reits in an ira. We use every opportunity to efficiently rebalance it. If your reit fund pays a dividend on april 7th, but your emerging markets is down, that dividend will be invested in the emerging markets. You do that on a dahly basis. Vanguard put this out in 2005. Its called trigger day rebalancing. We look statistically at the portfolio and when its mathematically more out of balance than it should be, thats when we rebalance it. Do you get charged a fee for every time you sell . No commissions. Because were in software, were completely free under 10,000. We never charge commissions for trades. Above 10,000 we only charge 0. 25 . For each trade or no. Or just on the whole . Assets under management on an annual basis. Is there somebody i can call . No, no, im suhrious. Is there a phone number i can call or do i do everything online. No, no, we have a phone number on the home page. You can call. But nobody does. Most of our clients are under 35. 60 . 90 are under 50. You only want a phone number if youre old. More importantly its 0. 25 on a quarterly basis. Annual. Annual basis. Its onefifth the cost of a traditional service. The minimums for traditional wealth manager is very high for a normal person. We like most of our clients are young, theyre getting started. Were excited about them. Theyre at the beginning of their income and wealth accumulation. What are you putting them into . All etfs. We look at etfs in 11 different Asset Classes. We find the ones that have the lowest drift, the best execution statistics and pick those for each asset class. Actually two, so we can take advantage of tax loss harvesting when its available. If i would compare your service to the traditional services, what kind of gains than i pick up off of the fees im hopefully saving with you. Theres been a lot of research on it. Individual investors normally do terribly in the market. They underperform, 3 , 4 . A lot of that is fees. 1 to 1. 5 is the norm. If youre paying onequarter of 1 youre paying 80 of the fees youd normally pay. This is a more cosmic question. You talk about people being under 35 who dont want to pick up the phone. There was a whole world of day traders, a whole world of people that would call their broker. Is that over . We talk about where the Retail Investor is and what their interests are. To the extent your service represents sort of a new way of thinking about that. What is it . I think youre right. There is a generational shift. Gen y millennials have been through two market crashes. Ironically, thats put them in a position where they actually believe theyre not going to make their fortune beating the market. Right . There are still 10 to 15 of people who want to get in there and trade. The other 80 if theyre a doctor, they want to be a doctor. If theyre a lawyer, they want to be a lawyer. Engineer, engineer. Have you given up on the idea that we could have a 10, 15, 20year bull run . They dont think they can beat the market. We can have a bull run. Warren buffetts point is put it in a Vanguard Index fund. I like to think that warren hasnt checked out our site yet, otherwise hed probably be positive on what were doing. Young people are passionate about what theyre doing. Theres 90 million members of the millennium generation. A third of them arent out of college yet. The oldest edge of that, in their 30s, they like it automated, they like software, they want it cheap and they dont buy the pitch of beating the market. Theyre happy with an inexpensive, passive solution. We have to run. I refresh you have the software, is your software, nobody can replicate it . Id like to think we have some of the best software folks in silicon valley. The truth is, they are focused on the baby boomers retiring. Charles schwab manages 2. 3 trillion. Theyre looking for the next trillion dollars. Gen y has about a trillion. Baby boomers want to talk to someone about how theyll