Sales at 10 00 eastern time. Economists are looking for sales to have risen by 9 just over the last month. Andrew, back over to you. We have Corporate News it talk about this morning. Hewlettpackard announcing it plans to cut as many as 16,000 more jobs. This is part of meg whitmans plan. The Company PostedQuarterly Earnings in line with investors. Also, take a look at gap. Gaps earnings beating the street by a penny. Revenues in line. The retailer is dealing with weak demand for its gap and Banana Republic apparel brands. They had a bit of a resurgence, nor more questions. Aeropostale warning of a betterthanexpected loss. I havent been there in a while. I hope not. Its a teen retailer. I do remember the days, abercrombie, american eagle, aeropostale. We should tell you, tivo, which i do have and like by the way, tivo shares getting a boost in extended hours trading. Earnings beating the street. Total subscribers crossed 500,000 for the first time. Thats happening more often than not these days through European Cable Company partners. Thats where theyve had a lot of growth recently. Hp misfired its earnings, released them early during the market open. I saw that. They werent complete. I saw that. Hp is a big sophisticated company. Weve seen it before. Remember when Disney Disney had a little accident. Disney also had somebody faking earnings once a couple years ago. Thats right. Thats right. There are issues there as well. Hp, you dont want to be that person. No. Meg whitman is like it wont happen again. As soon as thats over, its like what happened . Yes. Someone will be fired. Maybe one of the 16,000. Thats not a good way to start your summer, not a good way to do anything. Lets check in on the markets this morning. The american markets indicated mildly higher. This as we sit 0. 3 from that alltime high in the s p 500 back on may 13th. Oil, staying above 103 bucks a barrel today, of course, we kick off the Summer Vacation season. Rumor has it, guys, some people may be driving their cars later today. If you are driving to look at a home, you are thinking about buying, good news, Mortgage Rates should continue to be favorable. The tenyear yield staying barely above 2. 5 . Lets get back to the story at hp. Joining us now, dan morgan. Where do you want to start with this . You have the earnings and the news of the broader restructuring. Whats most important . The restructuring is important. The big thing, becky, in regards to if you look at how they perform, were hoping they would see more strength in terms of enterpri enterprise, more strength in software. I think software was flat yearoveryear in the quarter. They had a nice push in notebooks and desktops, pcs group did, 7 yearoveryear. Thats a 3 operating margin group. I think what i was focusing on, i was looking at the growth segment, the Enterprise Software to become a larger portion of the overall mix and to show better growth. What we saw was a resurgence in desktops and notebooks. We all know thats the mature growth segment. Its not a great operating segment for them. With enterprise, maybe not a huge surprise after two strong backtoback quarters of ent enterprise for showing growth. Its not always a Straight Line up. No doubt about it. Thats where they have to focus servers, networking. Storage, they have to focus on expanding that software group. Its 4 billion in total revenue, 3 of total revenue. They have to get this up to where ibm has it. Theyre still too stuck in the mud in the older, mature segments. Thats the big cloud over hp right now. What kind of hope do you give it . What kind of trading are you looking for in this stock over the next 12 months . We buy it in the Equity Income model, stocks that provide dividend income. Its an alternative to bonds, because you have ever increase ing rates with an ever increasing environment. They are protecting 7 billion in Free Cash Flow this year. This is improvement over the late latest guidance. Youre looking at a 61, 71 ratio in Free Cash Flow versus dividend. Its a turnaround, can meg do it is . Can she get this thing back on track . What if they take that Free Cash Flow and instead of using the dividend, if they reinvest or to start mergers and acquisitions. That would be huge. The last one wasnt so good with autonomy. Do they buy their way there or develop it internally . Theyll probably have to buy their way there. What do they have to buy . They have to get into areas that can provide better margin. Software for ibm its a 4 operating margin. They did 19 operating margin on software. List five targets youd want them to buy. What are the hot areas, cloud, big data. Those are kind of the segments theyd have to get into. Theres plenty of Smaller Companies out there. They have a history of other companies kind of buying their way into it. I think thats how they have to do it. Do you want them out of the consumer business, is that what youre trying to say . I dont think so. I think its a steady cash flow for them. They can use that to leverage themselves to get into the higher growth, higher margin areas. I dont think you abandon what their core is, printing and imaging and pcs. Thats their core. Its what they do. You can leverage that to do other things. At this point, like i said, theyre stuck in the mud. Hasnt hp in some way indicated theyre giving up on growth . Capital spending has been cut. Theyve jacked up their buy back perhaps more than any other Major Corporation in the world. They have. Now theyre laying off 16,000 employees. I think thats more necessity than want. I this i you want to grow yourself out of this. I dont think you want to is cutting Capital Spending the way to grow, increasing a buy back the way to grow . Well, no. I think you leverage the cash flow, which is huge, and you go out and buy yourself into some of the more higher growth areas, especially software. Thats what i would do if i was meg whitman. And dan, real quickly, what is your price target on the stock . Im a portfolio manager, becky. We dont have price targets per se. Its an income stock. Something we buy for income investors. I dont have like a 45, 50 target based on a market multiple and earnings estimate. As i said, im50 a portfolio manager. I manage about 500 million. Its different than being an analyst. Dan, thank you very much for joining us. We appreciate your time. Thank you, becky. Also a programming note for you, folks, dont miss squawk on the street, hp Ceo Meg Whitman will be on today, coming up at 9 00 eastern time. I wonder if activists will show up around this stock . Listen, my point is, nobodys had a bigger Buyback Program than hp. When youre doing that its great for shareholders. At the same point, youre laying off employees, buying back more stock. The optics around what the companys growth plan might be is not good. Though you have to imagine as part of the restructuring theyll be moving away from some areas and into others. You dont know when that turns into employees hired. Thats a good point. A lot of people forget, including myself, hp is still the Largest Technology company in the world. Its been a Bloated Company for a long time, you could argue. Dan was talking about the autonomy merger. Which was a disaster. Another merger, a Computer Company called compaq. Carly fiorina. Yes. Potentially good news from china. It expects its trade situation to continue to improve this month. Imports and exports returning to slight growth in april. Among the catalysts, orders to hear. Thailand, stocks fell after the countrys military seized power as part of a coup. So far this year, foreigners have sold about 640 million in thai stocks. We will check in with a cnbc reporter on the ground in bangkok in the next half hour to get more on the increasingly tense situation there. And in russia, the countrys annual Economic Forum is taking place in st. Petersburg. President Vladimir Putin is there and will begin speaking soon. A number of ceos are taking part. This is big, guys, Geoff Cutmore is there. What kind of picture with putin is that . Its like he looks like he wants to be the host of a talk show in that picture. That is not a statesmanlike picture, can i just say . This is a man who rides dolphins. I know. And unicorns for photo opportunities. Hes frequently shirtless. He scored, what, 16 goals at a hockey game. No one bothered to get within 20 feet of the guy. Vladimir putin if he wanted to host a daytime talk show, he could probably do it. What would you call it . Thats a good twitter question. If Vladimir Putin had a talk show, what would be the name . Thats what that looks like to me right there. Who knows. I dont have a great name for it. Meantime, lets talk about whats going on in ukraine. Not that i dont want to play. I dont have a great too early. Julia chatterley joins us now from kiev. Good morning. Good morning. Thanks very much. Crucial president ial elections for the ukrainian country right now. Let me talk to you about the current frontrunner. Hes a selfmade billionaire. Hes also a politician. Hes called Petro Poroshenko. I sat down with him and asked him two questions. I said, how are you going to solve the ongoing violence in the east of the country . And secondly, what are you going to do and how are you going to deal with Vladimir Putin . Listen in. Im sure well stop the war in a short period of time. Well find a way how to establish the dialogue with russia. Absolutely sure that we dont have a compromise on two questions, very important question, crimean security and european aspiration of ukrainian people. Hes arguing we need a decisive election victory this weekend in order to start beginning to address the crisis in this country. The bottom line is, hes an oligarch and this is politics. Its raising all the usual questions of whether or not money and politics in this country can be divorced and whether this man, Petro Poroshenko can be a voice for change in it country. Guys, the countdown to the election on sunday continues. Back to you. Thank you very much. Coming up, are we in for a summer pork panic in . We have that story. Plus, is uber really a 2 billion company . Coming up later, Geoff Cutmore will host the panel with the talk show host, russian president Vladimir Putin. What are we calling his show. Kavetching with putin. Timely ahead of this weekends vote in ukraine. The series is 21 rangers with the canadiens pulling out an overtime win. The next game is sunday night at the garden. Squawk box returns in just a second. Cars are driven by people. Theyre why we innovate. Theyre who we protect. Theyre why we make life less complicated. Its about people. We are volvo of sweden. Will smith. Getting jiggy with it, i believe. How about news on blood sucking mutant lampries, waking and baking with mary lynch. This is all stuff weve talked about on the show. Go to cnbc. Com. Check it out. There is a pork shortage out there. The amount of pork in u. S. Cold storage warehouses dropped 17 from a year ago. Among the biggest reasons, a deadly pork virus forced processors and retailers to pull product from warehouses to make up for a shortage of available fresh pork. Youve seen higher feed prices as well. Nobody is talking about how the chinese have taken our pork. That has not happened. They bought smithfield foods. Our pork is in china now. Its a much nastier virus. It is an awful virus. That is not true. I was trying to channel joe. We had our bacon news. He was anti that deal because he was worried that was going to happen. Its my fathers business, actually. The only thing about china is that their pork farms are tiny. They produce more hogs than we do but most people have about ten hogs. They dont have giant corporate owned farms like we do in the United States. That disease you referenced its a huge, huge issue. Its a big deal. Uber reportedly taking a large group of investor money, raising about 500 million. This investment, if you can believe this, is going to value the startup at more than 12 billion. Possible investors are said to include black rock private equity firms General Atlantic and Technology Crossover ventures and hedge fund as well. An app on your phone, just an app, controlling all these cars all over this country and now increasingly the world. Company is worth 12 billion. I cant even get over it. There are very few companies that add incrementally to gdp. This one is creating jobs. This one does. If you talk to guys that drive for companies, you hire from jfk to new york, they often have down time. This is incremental dollars in their pocket. The question i wonder is whether this is displacing taxi rides. I use uber x rather than a taxi. It costs 2 or 3 bucks extra. Thats traditionally how much more it is. Am i adding to what problem has uber solved economically . What new york city has done with the medallions you have to buy a medallion, cost a couple hundred thousand dollars. Theyve created an artificial shortage of taxis. You have undermined the medallion process if youve paid a couple hundred thousand dollars for this medalliomedall. A lot of people i know that take uber, theyre not getting into a lot of taxis. I bet taxi drivers are not true. Im a taxi guy, not a i didnt say you. Im just saying. I think a lot of people arbitrage, this is actually the bad part. We arbitrage the wait time on a taxi and the wait time on an uber. Ill press the thing thinking if i get a taxi first, ill cancel the uber. You shouldnt do that. These guys are working hard. Im a subway guy or uber guys. If you get a few, they can pan you, too. If you get a few black marks on you, theyre not going to answer your calls anymore. You cannot downgrade a passenger for cancelling. You should be able to for exactly this situation. I stopped taking taxis in new york for an entirely different reason. Whats that . Plus i love the subway. Dont fit. Theyve gone to priuss, little cars. Its like flying coach. Like a clown car for you . Me and eight friends will get out and start squirting each other in the face. Forget it. A lot of headlines about the mcdonalds annual meeting this week. The fast food chain is facing criticism from shareholders who attended the meeting. At issue, the snacks at the meeting. Theyre complaining about the food thats there . This is what my wife and i call rpp. This would be . Rich people problems. I was going to say royal pains . The nanny was late. First class aint what it used to be. I dont like these cookies at the shareholder meeting. The maids didnt finish the job correctly. Pay for your breakfast, people. Whats down with rpp . My favorite was hearing, we have an echo in our hallway. Too much marble. Thats what im talking about. Rpp, rich people problem. America is starting to take whining to entirely new level. Kavetching with putin. Shareholder money will pay for that breakfast. Theyre being frugal. When we return, unrest in thailand. A military coup threatening the stability of the region. Well have a live report from an increasingly tense situation in bangkok. The empire state, new york, trying to move up the list but could it end up costing tax payers in the long run . As we head to break, if you were taking a day off yesterday, lets take a look at some of the winners and losers from thursday. 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Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Take the next step. Talk to your doctor. This is humira at work. Good morning, everybody. Welcome back to squawk box here on cnbc. It is almost memorial day. Were looking at it this weekend. Im becky quick along with andrew ross sorkin. Brian sullivan is here today, in for joe who is out on a long weekend. In our headlines this morning, well get a fresh reading on the Housing Market. The government is out with new home sales, coming up at 10 00 eastern time. Economist looks for a jump to 418,000 units, a jump of 8. 9 . That would still only reverse marchs 14. 5 drop. Hp will be cutting 16,000 more jobs. That comes on top of the 34,000 that were already part of a planned restructuring. Hp also reported quarterly profit of 88 cents a share. Revenue was slightly short. You can see what happened to the stock