A barrel. And you have to go back to november so when weve seen prices like this. If you went to bed early donald trump declared himself the presumptive gop nominee. After winning all five states yesterday by huge margins. I use the analogy of the boxer. You dont have to wait around for the decision when the boxer knocks out the other boxer. So that is what is it is. Hillary clinton beating Bernie Sanders in pennsylvania, maryland, delaware and connecticut. Bernie sanders winning rhode island. Sanders is showing no sign of dropping out. Well have more on the race coming up in a few minutes. Corporate news. Comcast reportedly in talks to buy dream works for more than 3 billion. The price represents a big premium over the current market cap. Comcast parent of course of cnbc has enjoyed success with animated films. The Company Reports earnings before the opening today. Well bring them to you. Dream box is behind shrek and kung fu panda. The company has been on the block for quite some time now. They almost did a deal with hasbro. You can see why comcast would want to do it to try to keep up to make sure they have constant content for the parks and things too. And animation is one of the biggest businesses. Not that i follow the stock closely or something. But i thought it was 61. 05. There was a quote that was higher i had 60 yeah its 30 cents different than what i thought. I have to factor that into. Its either been results have been consistently good the last few quarters. Results coming in from comcast 7. What disneys done with paying and over purchases and. And there arent many of these around. Things like that. What is it called . Like a . Content creator . No. I dont know. There is a name for it when you are buying something that is rare. That there arent. Yes. Beach front property. Yes. I know. I know as a writer it sometimes takes you a while to get to that spot. Thats not what it is. You will experience this. Its not that far off. And, you know. And you didnt have to go to bed that early. I actually saw most unless you are on squawk box you know what happened last night. Because i even know if you were busy and you should a rock. They called those things at 8 00. Right at 8 00. I knew they were going to make those declarations right at 8 00. And then went straight to the reporter at trump headquarters. And it was crickets. And is everyone there excited hearing the news. And they werent watching. It was like crickets. I thought 40 was the maximum. 40. And he got 50 once in new york. And that was supposedly a fluke. And he got 60s. Hes your nominee. Im scared for you. Hes your nominee. I am not endorsing it but youre fighting on it. Base on the people who said they will leave if hes electelected. Im not going to mention any names. He actually said this is going to add to my mojo. Ill th elena dunham. There are people who have threatened to leave the country and move to alaska. Rocket ship . Outer space . If you werent watching cnn they were probably on twitter last night. A mixed quarter. Average monthly active users coming in at 310 million now up only 3 from the prior year topping streets expectations which had been so low to begin with. But posting Second Quarter guidance significantly lower than streets estimates. I think were focused on our things. Weve never had more focus as a company and Development Team and were engineering what we believe to be the best experience out there around life and around whats happening now. And i want to make sure twitter is the place you check to start your day. It will tell you whats important, what matters and thats what were deriving towards. Periscope before the products launched and said the company would continue looking for other great teams and other products to acquire. The beard is back. The himself pster. Did he move to brooklyn or is he live over san francisco. Free food. I understand when you are in the playoffs or something, you know. You dont want to lose your mojo. You dont understand facial hair in. The mojo for twitter is definitely you want to shave the beard and put the hat on backwards. The beard is not working. Three food stocks today. Buffalo wild wings getting clipped. Missed expectations across the board. Same store sales falling 1. 7 at the companyowned restaurants and 2. 4 at the fracturesowned locations. Chipotle losses. Same sales tumbled nearly 30 from last year. But the chain is still looking ahead, opening 58 new restaurants during the quarter. The bakery cafe for panera serving upbeat on the top and bottom lines. And increasing full year guidelines. Not supposed to eat anything white. No pasta, no bread, no milk. No dairy. If says who . I dont know. For everything. Everything that happens you know you got to watch the sugar in your bloodstream. You got to watch your irritable ib thing this comes hand in hand with, you know. This no. Trying to keep it sharp. Trying to keep things running. Shares of apple, posted a miss on to top and the bottom line. That is being polite. Shares were down about 8 for a lost of about 46 billion dollars in market capitalization. By the way that loss in market capitalization is greater than the total for about 391 of the s p 500 companies. Apple shares down about 7. 60 to 96. 75. First Quarterly Sales drop year to year since 2003. Thats 13 years. Apple shipped 51. 2 million iphones. Ipad sales at 10. 3 million topping expectations of 10. 1 million. And 4 million macs, fewer than the 4. 5 they were looking for. Dividend boost and 50 increase to capital return program. Joining us is aaron rakers. Manage director at steval nicholas. We new sales for the iphone were going to come down. Revenue was going to come down but it was steeper than anticipated. What happened . Yeah, i think it is more about the expectations on a forward basis. The guidance was obviously weak at 41 to 43 billion. I think the street was 47 billion. That led us to estimate about 39 million iphones shipped for the Current Quarter where we were previously modelling more. And i think we knew the two quarters for march and june were going to be challenging. Clearly the guidance was the weaker point. On top of that the gross margin guy of 37. 5 to 38 was versus the street estimate of north of 39. I think you could adjust that though because there is clearly some channel inventory burn. Lot of moving parts. We still like the set up for the iphone 7 cycle. Does this raise the question what kind of Company Apple is . Is it no longer growth . Market growth for china sales were down 26 . Thats eye opening in whether they have reached a saturation point . Thats a fair point. When we look forward and look back at fiscal 2015, top line revenue close to 28 . Were modelling around 9 this year and return of growth into fiscal 2017. The point on the growth versus the value story, i think we were seeing that in the valuation with shares trading back somewhere 7 times cash. Thinking about the iphone seven cycle next year. Were estimating 9. 40 in earnings power. I guess we found you. I dont remember whether you had the 200 price target and refused to come down. Those guys, you know, we call them down and its like oh no. Dan ernst . Brian white . Hes not here. Is there a brian. And so many of the apple annians hate me already if price going up forever and forever. And thats thing. You dont have a birthright to do 60 billion every quarter when everybody is nipping at your heels. Obviously. There is people trying to get into this business. Did you see the chinese gentlemen talk about mocking apple in their technology earlier this week saying the entire platform for the compared to but why do they argue with so many analysts . Why . Whether do they get paid for . To think that all the trees just grow to the sky and there is no law of large numbers. They had the stock doubling to where it it would have had a 1. 2 trillion market cap. And all they could keep saying over and over time is thats all i could say. Please do not discount because im im not discounting anything youre saying. The question is, is this the trough though . It is just a question given the cycle of these phones. Now that is the question. And we heard even talking about this saying we knew this was going to be down or. Now from the future here what if we dont get anything great until there is a car. This idea that the next great apple product if there is one is four years out and it is the form of a car. I dont come to you for non conventional typically. But do you think it is the trough . I think an relative basis i do. I think so you think it is the trough . Yeah i do. I think a lot okay. Go on. The work we do in terms of the install base and the opportunity that sets up for the iphone 7 given that we like the cycle going in. Apple has a 95 plus loyalty rate in terms of upgrade rate on iphones and two questions. First what is your price target . 120, ten times x cash. What was your high . What did you come down from in. What were around 135 when it comes to iphone 7 do you think the take rate looks anything like the take rate on the 6 . And the reason i ask is because there was such a monumental shift in the form factor in terms of the size of the screen that there were really people upgrading not just from the 5 but the 4. But if the form factor isnt substantially different do you think people wait it out . To be clear when we lock at numbers going into the next fiscal year, were roughly around 75 million units. The take rate on the iphone 6 in late 2016 was around 14 . Growing to their pre iphone 6 install basis. Were clearly assuming a lower upgrade rate. Thanks for joining us today. Thank you. We have onto analyst coming up later in the show that weve never heard of. That is fresh. So isnt sort of being blind sided by any of this. There is still a 200 price target out there. Would you lower your price target. Or were you just that dog gone market is wrong. At 200 i think id lower. Hes not in a terrible place. I do think that on a relative basis where we are today would be surprised what . More people would buy the 7, the next version of the phone. A lot of people have to buy it. Thats the thing. When it was really humming there was a lot of things going right. A lot of price to perfection. And there was take the cash out and icahn was right there too. So what do you do with the cash . Thats the fundamental question. What could they buy . Anything you want. Basically anything you want. What do you want . Id probably buy comcast for 235 billion. You think . There yougo. And id finance the rest of the purchase because id paid 400 billion i think for it. And a fee for that. A giving a premium. Shareholder. Including the Battle Ground of pennsylvania. John harwood joins us now with more. John, yeah, you didnt have to stay up very late last night to see what was gonna happen, did you . Nope. Weve been slip sliding towards this result for some time of a trumpclinton general election. And last night moved us a giant leap closer. First on the republican side, the stop Trump Movement has talked about the ceiling on his support of 40, 35, 2. He busted through that. Over 40 everywhere. Every 60 in delaware and rhode island. And Hillary Clinton wins 4 out of 5 with robust majority. She loses rhode island to Bernie Sanders but Bernie Sanders needs to win big in every state to try to overcome her lead in the proportional delegate allocation system. None of this makes on these last night makes either of these two candidates the nominee. Hillary clinton is not over the 2300 delegates she needs but shes on her way to do innidoin that. And on the republican side there is still some flickering possibility of Holding Donald trump below the 1237 he needs for a first ballot nomination. But he still has a solid chance of doing that. California on june 7th is where he has the potential for wrapping up that nomination and by declaring himself the presumptive nominee on the heels of these results. Donald trump is trying to break the will of the optiposition. And when you look out weak cruz and kasich were across the states it looks hes going to succeed. I dont think there is a lot of optimism that donald trump is going to be stopped at this point, guys. If you want to win indiana. And the great sports movie, gene hackman, you know, hoosiers. They played a lot of hoop hoops. Or would it now be referred to as they play a lot of rings . Did you see that . That ted cruz referred to the basketball hoop as a basketball ring. No. Oh yes. He didnt do that. And its all over twitter this morning. This must be be bobby knight is campaigning for donald trump. This i think if you have to win indiana and you are standing in indiana where the hoosiers are, i think they might take your name off the ballot. Endear yourself to the voters. You have never heard lebron at the top of the key saying im going take it to the ring . Ha ha. I watched two of the speeches last night. Ted cruzs speech and Bernie Sanders speech. Seemed remarkably similar. They both blame the media for why they are not going to win. And both say they have a much better chance to beat the opposition. And how successful is that argument at this point . The argument is not true first of all. Second of all it is what happens when losers whine to the media. These are lame complaints and they are it is not correct that ted cruz and Bernie Sanders would be stronger general election opponents. I suppose nobody can know the future for sure but there is no reason to think that Bernie Sanders would be stronger general election candidate than Hillary Clinton, whatever match ups say now. And ted cruz is not the the polls do not show ted cruz as a strong general election candidate. So take it with a grain of salt. And certainly Republican Voters are taking it with a grain of salt. Thank you sir. Great to see you. When we return, the fed finishing a two day meeting today. Were waiting on the statement at rates. That is at 2 00 p. M. Eastern. More when squawk box returns in a moment. The eclass has 11 intelligent driverassist systems. It recognizes pedestrians and alerts you. Warns you about incoming crosstraffic. Cameras and radar detect dangers you dont. And it can even stop by itself. So in this crash test, one things missing a crash. The 2016 eclass. Now receive up to a 3,000 spring bonus on the e350 sport sedan. Joining us. One more this year steve . One, maybe two. Rate hikes . Yeah. They said it would be urgent, seam urgent if they were to move in april. So it is going to seam urgent any time over the course of a year. Tough uk vote on the referendum right after the meeting. So june is difficult. Unless they are taking chances or the polls are very far apart. The lecture in chief delivered the speech over here. The same speech he gives over here. Now they are going to probably go. Well the polls did move in the other direction to be fair. They did . Yeah. If it was this, if it was other things. The polls moved slightly away from the idea that there will be a break from the european union. This tightening cycle that we had. How many have we had . One. Feasibly it could be none this year. Steve leisman made the point were now entering the longest period weve ever seen between a rate hike moving cycle and i guess that raises the question was it a mistake to go . I guess wire going to find out in time. They are focuses more on developing. With good reason. Absolutely. And take a look. There is never a good time to set off certain triggers and you can look at the very direct line they have made between chinese currency risks and the u. S. And if you run Monetary Policy with these sorts of issues in mind, the problem is delayed. And it can become bigger. So you look at where we were in the past. And not to say were repeating all this right now. The data have been modest in terms of u. S. Strength. But it is still an issue for us if we run Monetary Policy with the rest of the world in mind and those risks build. Do you agree with that . And do you think the fed missed its chance a year or two ago to get up to 1 or 2 . It is hard to say what the is. I think the dollar has done a considerable amount of heavy lifting for them. Equivalent too roughly six hikes. The cumulative tightening has been quite considerable. 106, 107 and the euro back to 113 now. I think proponents of a june hike or even april will say that financial conditions are back to where they were early december and they were comfortable lifting rates. The dollars back to where it was in october. But my problem with all of this is that this is all built on a foundation of a much more dovish rate outlook. December, october the market was priced for three hike this is year. Can the fed put a hike back on a table for june or even september. Its almost full employment. And if we are going to see a victory tour for the Current Administration and about economic rebounds and activity, what kind of victory tour can it be if you cant get out of your own way at 0 Interest Rates . What is the real story of whether this economy is above or not . We cant afford 1 or 2 interest . I think the real story is the supply side is a problem. And in the u. S. Weve managed 2 gdp growth in the cycle and taken out a considerable amount of excess capacity. Look at the kploimt rate. Weve cut it in half. So telts you potential growth has expanded at 1 in the past five years. And that is the real story. And if potential gdp really is closer to 1 than 2 that means the equilibrium real rate is much lower than what the fed assumes well even that would be 1 and 3 4 percent or Something Like that. Does mean we just have to change our expectations of whats possible in the world . Just think about whats going on in the world. 30 of sovereign bonds across the world trade on negative yields. You may more than your future catch flows and return of principle. There is tremendous stretching in the rest of the world to provide accommodation and it is feeding back and doing heavy lifting of tightening. But as you said, janet yellen pointed to the fact that we back off and financial conditions eased around the world. Everything is going well now. But that is putting off issues to the future the problems build abroad or here. We used to assume that we didnt have to think that the best we could do was how the rest of the world was. We used to think that we were exceptional. Basis. Exceptional on the relative basis. That is exceptional for the world. And look at our Interest Rates at. B