Environment today. Earth day started in 1970 making today its 45th birthday and attention sky gazers out there, aprils top meteor shower is here. Expected to peak before dawn today and again tomorrow. This is debris from comet thatcher. This could be the best part. No special equipment is even needed to see them. Just hope there arent too many clouds out there. Climate change. Earth day is not a climate day. I celebrate it. You should celebrate the earth. But are you sure the meteors arent related to the warming . You know the earthquakes from fracking i can sort of you know, i dont know enough about it but i could sort of see how that makes sense. Its a lot more sense than 100 of an increase causing all of these different things. Were going to celebrate it. We needed the earth. Are you an earth mother . Youre down to earth. A little crunchy. Youre not like a tevas. Every once in awhile i wear those out. Why is a shoe company trying to buy mylan. No that would be teva. So teva you were out yesterday. Yeah. You saw the headlines. Yeah. Didnt quite add up. All right. Lets check on the markets very quickly if youre just waking up well get you up to speed on this. Right now things are under a little bit of pressure. Right now the dow futures down by 60 points and nasdaq down by 15. Were looking for big stories this morning. A couple of things to watch. Before the bell heres what we got coming. Well be looking for Quarterly Results from Companies Including boeing cocacola and mcdonalds. Coming up this afternoon well hear from at t and facebook among many others and what are we now . Halfway through earnings . I dont know if were there yet . This may be the peak week though. Right at the peak week. And housing the big story because at 9 00 eastern time well get february fhfa home prices and then later march existing home sales and in Corporate News regulators looking at that comcast Time Warner Cable deal. Officials are set to meet with the department of justice antitrust reviewers as well and were mentioning you at the top of the show. The wall street journal reporting that google will report a new wire lesser vis as soon as today. Its set up to let customers pay for only the data they use. They agreed to carry the traffic on their networks. At the start, Google Service will only work on the latest nexus 6 phones and the question becomes if google does Something Like this will apple follow suit and will other networks play along. Youre only work at the second tier networks. Theyre willing to reset time over their network. Its also daunting for us to understand. Google doesnt have the infrastructure or any of that. Theyre going to lease it or something . In the u. K. This is very common. Most of the networks are forced to some degree. It seems like providing the wireless is owning the spectrum. What is google how are they part of the theyre just providing the service. Its a Branded Service over somebody elses lines but by the way this is what Virgin Mobile in the United StatesVirgin Mobile never owned the lines. Those were usually sprint lines. Just like you would buy Virgin Mobile and it doesnt matter. Nobody necessarily needs to know who owns the line. Thats sort of the issue. Its almost a marketing employ at that point. Yeah but ultimately can you provide a different type of service . Better service . Different pricing scheme. Does that then push other networks to provide schemes like this . Do you prefer dealing with those overseas you can pick europe. Yeah right. Theyre a great monopoly. But they dont like that over there. Looking for Something Else too. Looking at bringing another one in. Oh that takes some stones to go after those guys. They werent going to do it because they were already doing stuff with sanctions because of what they did and now theyll say thats not working anyway so now were going to go after it. So they shutdown it down. Interesting that they wait until spring. They waited until the other things i dont know have we had nothing we forget things dont we . We do. Peak earnings week im not sure right this moment. You say right there. It took they annexed a large part of the country and now own it as they rebuild the soviet empire. Thats hard to backtrack on it. Yahoo earnings and revenues fell short. They fell short of estimates. Shares got a boost after marissa myer announced that yahoo hired advisors to explore how to cash in on its stake in yahoo japan. Did you see the controversy about senator rubio saying chipotle. Its not. Because as you can see right there its chipotle. Right . I say chipotle. Earnings beat the street. Revenues were short. They were forced to remove pork from some of the restaurants after discovering a supplier did not meet Animal Welfare standards. It will take until the 4th quarter until it gets fully restored in terms of pork supplies as a result full year sales will be hurt. Earnings topped estimates despite a drop in store sales but the owner says that the business over there is now at this point recovered. Happening now, the high free yen sy trader is in court in london today for an extradition hearing. Wilfred frost is there and joins us with the latest. Good morning. Good morning, becky, thank you very much. We were expected to hear from the man accused of being involved in that flash crash about an hour ago. His hearing has been delayed but is due to take place at some point today. Relates to charges filed by the u. S. Department of justice in february this year which were made public after he was taken into custody today. It involves various kounlts of financial wrong doing and fraud from 2009 to 2014 including counts relating to that 2010 flash crash. Hes alleged to have made some 40 million during these counts of financial fraud and the u. S. Authorities have frozen some 37 million of his assets. The case today is just a bail hearing. Presumably he will plead not guilty. If he does then follows a lengthy proceeding to see if he will get extradited from the u. K. To the u. S. This will take months. Not weeks. That hearing is due to take place in the next couple of hours because it has been delayed. Were he to plead guilty things could move faster. Otherwise were expecting things to be delayed over the next few months but at the moment we still await to hear from the man arrested here in the u. K. Before we hear from him. Guys back to you. Very good. Thank you. Dow and s p closing lower with earnings continuing to be the focus. Our next guest, though remains bullish on the u. S. Stock market. Joining us is tom lee. The founder and head of research. Tom theres constantly so much noise and investors had been had done well to have listened to you over the past two or three years so after we have periods like this its always good to see whether youre still feeling the same way and the point you make right now is all of these headwinds that we talk about and sometimes we see them effect the market theres no one that doesnt isnt very familiar with all of these at this point. Thats right. I think when you think about whats in the news its not stuff you necessarily want to take action on unless you think its going to get worse. It is already wellknown. Exactly. About the strong dollar. Youre talking about the oil. Oil, dollar q1 earnings. Pork price. Pork price is not treating the pigs properly apparently. Yes. The thing you say might be different is that these head winds can become tail winds and what you mean by that is you finally see some Consumer Spending more because of oil. How does the strong dollar become a tail wind . Well i think what were going to see with strong dollar is that its going to strengthen the u. S. Consumer considerably right . And thats the engine for global growth. Housing is really going to be one of the big drivers. Housing is over the next six months what you think provides it. Thats right. Now Oil Companies are saying oil is low for long is what theyre prepared for. I think a lot of companies were only like 10 into earnings season. A lot will talk about this big margin story. Anyone that uses raw materials. Theres a big margin story. Companies have to raise margin guidance. So the oil not only as a consumer but even with companies that input cost. So, in fact this earnings season is going better than people thought as well. Thats right. They lowered expectations. Some people like to point out analysts really made big cuts into this earnings season but theyre beating by the biggest margin in 12 years. The companies are quick to point out the head winds that theyre facing and give you down to the penny what its costing for share on those items. You dont hear anything about how thats helping. Dupont was one example we saw that with this week. As you know the complexion of who reports changes so what you juan to look at is companies that are true industrials having a dollar head wind. Theyre forced to take market share due to markets. When you look at domestically oriented Cyclical Industries theyre seeing real savings. Their end Market Pricing is based on demand. But back to back nobody is talking about that. Its partly because were early in the earnings season. We are really early. We only heard from a handful of companies but industrials talked about margins being better. Its just the dollar headwinds. So the place to be is consumer as you said and financials as well. Also technology. I think tech if we take a step back has turned into a Good Business and industry and has a huge tail wind of Capital Spending an eventually picks up and its still priced to cheaply. Were going to talk about yahoo in a moment. Im not sure i put yahoo in the same category aztecs tech. Yahoo is more of a media company. Youre talking hardcore servers in tech. People think tech is a narrow list of winners today which is the secular growth stories. I think the big tech story like ibm, hps really come back to life. We pay 12 times for Software Stocks and 25 times for toilet paper and the multiples will converge with the software multiples going up. Do you ever run out of toilet paper . Its scary to run out of toilet paper. Theres a reason its more highly valued. The multiple goes up on the last square. Thats all you have to do is run out. Tom, thank you. I had a quick question for you because i think of you thank you for having me on the show. I think of you as an analyst at times. My take on the bundling controversy was that i go back to at verizon . I go back to when a content advisor says see i told you they would fold because people want the content to matter what. So the content providers are in the drivers seat and now theyre banning together saying hold on. But the question that i have for you is if they cant prove that the contracts that were signed prohibit the slimmer bundles, could the content providers be forced to go ahead and let verizon take what they want and do what they want with it . Or does it matter whats the fine print in the contract . Its all about the fine print and that could be that too. Im happy and proud too. Let me just say this. The contracts are iron clad. What verizon is doing relative to what the contract says and allows. Its completely at odds with what the contract says. They put the language in again and not allow this to happen. And to the extent look as we digs cussed the content world is going to fight tooth and nail the idea of bundling because effectively content loses power. Verizon is taking this to the court of public opinion. They saw what happened with Net Neutrality and they assume theyre going to get help. You dont know. No one voted on Net Neutrality. What theyre doing is a violation. What they are doing is a violation of the contract. I do think i dont know if becky is in the same place, i think the public if were just talking about straight up Public Interest the public would think they juan choice. Whether they should get the choice is a different question. But thats what they want. Then we find out im going oh yeah i do want that. Oh im above the im paying more for my ala carte. Its not just ala carte. Its being bundled with your direct competitors. Do you want to have anyone riding your coat tails. Do you want everyone riding your coat tails because theyre paying for you and getting everybody else as a result. Its the worst of all possible worlds. The demise of the bundle. I think its going to take a long time and well see. Your job is going to be fine for at least another couple of years. Thanks man. I appreciate it. It makes me feel better. Just as a fall back position, you know . This unbundling thing happens. I have to figure out Something Else to get food on the table. When do i put that on the calendar . 2016. I dont know yet. Could be id say first half sometime within hopefully the first half. Is all the are all your couch casting interviews are those over . That is complete. Yeah thanks. Okay. Its just casting. Just casting. Lets get back to yahoo . Lets get back to yahoo missing expectations on the top and the bottom line in the First Quarter. The shares are now down about 14 since the start of the year but as you can see the stock was up after hours. If you look back all the way to when marissa myer took over in 2012 theyre up more than 180 . Eric covers yahoo . Thank you for being here today. Thank you for having me. We look at the earnings lets talk about those first. Missing on top and bottom lines but coming up with mobile advertising showing strong growth. How would you rate the quarter overall . Its two stories. Theres the traditional yahoo business of selling display advertising on pcs thats declining close to 10 year on year which is becoming a smaller part of the business with every quarter. The bets marissa and the team made are now up to a third of revenue and growing 60 year on year. She has a business transportation issue on her hand. She needs it to be 50 or more of total revenue to get people more interested in that core core yahoo business. Still a couple more quarters of transformation. It was the announcement they made in the erngarnings call yesterday that they hired people to advise them on their stake in yahoo japan which is worth about 9 billion. That turned things around for the stock yesterday. We saw this with alibaba. Do they buy themselves more time by dealing with these issues and rolling them out as sweeteners to investors to stick in there . We believed yahoo is a sum of the parts story until you get into 2016. Youll get the spin of the alibaba stake in the Fourth Quarter. Investors will get that. We long believed yahoo japan was the next asset to be monetized. The announcement came about one to two quarters earlier than we thought we were going to get. If they can monetize that in a tax efficient manner nobody has that as well. Thats another leg of the story so one of the main themes were coming out with is theres multiple ways to win here. The last one is the turn around. But the last one is the turn around. He basically said once alibaba is gone and now to the extent that japan piece is gone she is for lack of a better word naked. She would now be the company is exposed for what it is in terms of operations. It added 500 million in cost to their operations so the question then becomes what are we actually going to be looking at and is the company thats left even if you get all the value still there, what are we going to be looking at a year or two from now and does that transformation take place that youre talk about. Theres early signs its taking place. If you look underneath the hood they could transform themselves from a mid to high single revenue grower in 2016. What the market is doing is putting the most value on that score. If you trip that today youre talking about a 3 billion value for score yahoo today. And they would have a billion dollars. And about 5 or 600 million of free cash flow. You think the valuation is undervalued at this point. Correct. Thats why i think it remains a sum of the parts story for now. I agree if we get to this time nest year and alibaba announced its happened they have to produce Revenue Growth to get people interested in that core that remains. She still has multiple quarters. For now you tell people to buy at 44 and change. 44 today. 59 price target. Okay. Thank you very much for coming in. Thanks for coming in. Coming up when we return an all electric truck that doubled as a drone launcher. Sounds too crazy to be true right . The Postal Service, they disagree but first heres a look back at this day in history. [ screaming ] rate suckers [ bell dinging ] your Car Insurance goes up because of their bad driving. People try all sorts of ways to get rid of them. [ driver panting ] if youre sick of paying more than your fair share. [ screams ] get snapshot from progressive, and see just how much your good driving could save you. Welcome back. The buzz story of the morning includes drones. A new Postal Service fleet could include drones. Is this true . Yeah. It is. Dont you want the u. S. Postal service to find new forms of revenue . This is one of the great money losing black holes. I dont like drones no matter where theyre coming from. Im just saying we have been trying the Postal Service is a public entity. Its been effective in managing and running things in the past. Somehow the mail gets to me every day. I think they said well the Postal Service then we figured out they lose 6 billion a year to do it. Maybe the drone thing will fix their problems. Well, they better save effort for liabilities. Did you see it drop something . Drop it right on your head. Its the same play that amazon is talking about. I dont like it in either case. The agency really really is i guess, talking to contractors about options including an all electric truck that i like the term drone launcher. Its an electric postal truck that launches drones. Its being pitched by a company and the university of cincinnati. There you go. Now he likes it. The school has an Unmanned