spain bounces 3%, futures turn positive, can the markets focus elsy, as greece is still struggling to form a collision government. >> avon shares are flying again today on a new her from cody, telling avon that the offer is on the table under may 14th. cisco getting slammed today, disappoints guidance, weak enterprise spending, what does that mean for tech? a sector favor. and new revelation from facebook. more mobile users not translating into higher add rep, so is it a question before the big ipo? so far the bulls breathing a sigh of relief. u.s. futures are on the rise as stocks look to put a dent in what's been a 144-point drop in the past six sessions. european stocks on the rebounds. up more than 3.5% one day after plummeting to 9 1/2-year lows. jim we've had very interesting market in the past three session where we plummeted sharply in the first half of trading and bounced back. we're seeing the inverse. will it be the inverse? >> boy, that's a tough one. we've been very strong here, okay, and we've had some decent earnings, not great. what's really going on in spain is just they're doing a citigroup basically on one of the largest banks. when you look at the number of bad loans, it's really strange, but what i don't like, that conference call, we're going to discuss cisco. i'm not going to plame john chambers at all, but that was just the type of thing that makes me think, listen, if they go up big there will be people who sell them because of what chambers said. >> i would be hard pressed to sit here and tell you we won't be talking about spain next week, next month or next year. we probably will be. i've been saying on the show many times, at least the guys i talk to, in terms of macro hedge funds who have been underinvested have been consistently concerned about spain, about the banks system. you've got to remember the capital markets there are not like our capital markets. banks are much more closely tied into corporationings are and man, are they all tied into each other. the cross-ownerships, you can see that a lot, but it doesn't mean it's all going to happen, but gets back to this overall concern watching the bond yields above 6% may be off the table today, maybe a nice response to spain steps in but hard to imagine we won't be revisiting this i want your point last night, looking for companies with expanding markets and no exposure to europe. they are out there, right? you ran across a couple in new orleans. >> gee, there's so many. you sit down with verizon wireless, what's the big issue? can we handle all the business? what's the big issue with at&t? can we continue expandsing margins? absolutely yes. what these say is the dividends are going to go higher, the growth is consistent. they're not expensive stocks. i tried to tell them off-line, here is how you should always start your presentations, we are not in europe. that's how you get a spike these days. >> they're not cheap stocks, either. >> well, but that cash flow is big. a lot of what people don't understand is when they have more wireless growth initially the costs are so great because of the toll you have to pay to apple that you don't get a gigantic earnings boost, but it does come down the line. i think these stocks represent good value. >> one of the things we were talking about a lot in new orleans was this subsidy you just mentioned this, this enormous amount of money which now exceeds their capital expenditures. that still will be an interesting debate. you get to this whoa idea of who owns the customer? >> and how -- you get a deal from android if you're one of these companies that's so much better, but in the end when you talk off-line with the major executives, people love apple so much, they just want it, and dan hise online and off-line saying i know we spend $15 million to get the iphone. it's been worth every penny and i think dan has been honest the whole way, the whole way down. at least five wall street firms are cutting their price targets for cisco, the network equipment maker, forecasting current quarter earnings below consensus. it does raise some red flags about the company's ability to weather persistent weakness. the ceo, gentleman chambers on late yesterday. >> businesses don't spend or react well, either from the economy or from government policy. if we understand what the issues are, we'll make the decisions about where we grow our business, where we invest in resources, how much we gift in dividends, how much we do in acquisitions, et cetera, so that's part of the uncertainly that i think bothers my customers the most. so longer sales cycles more sign-off needed, smaller deals, jim. a crystallization. what we're seeing in corporate america. >> i have been critical of john chambers and what he's done. i'm not critical of this quarter. i think they're doing everything they can. they've made a lot of bets on governments. governments are cutting back. i think he used government and it wasn't an excuse this time. they're killing the competition, but it's not enough, because the customers are frozen. >> we saw it play out in juniper's second quarter guidance. they said things were terrible. very weak guidance and cisco had very good gross margins. that bears it up. they're gaining market share not by cutting prices, but simply getting market share because their products are in demand. at the same time i have to call out john chambers. he used to be a regular here after the earnings call. he does the 4:00 show right after the earnings are released, but he does an interview before the guidance is released. wouldn't you have loved john chaim better to come out and explain the guidance, because today wall street is saying, you know what? we don't know in we can believe cisco systems at this point, and he's not answering to the media. >> stock did tick up to 19 while he was on tv, and then -- >> and then swiftly tanks once the guidance was out on the conference call. >> we've been talking for some time about this underlying uncertainty, i hate to use the word i have heard so often from ceos wondering while it still exists, during that great first quarks, yes there it is again being mentioned in terms of their customers. i don't know if the unwillingness to spend at the corporate level from ceos and the decision makers, i'm not sure where it finds its roots. is it europe? is it worries about the deficit here in the u.s., which always comes up, issue number one for so many of these people, but it's still there. to the extent you believe chambers, and it's not -- >> i do believe him. >> isn't that a bad reflection of what to expect the rest of the year? >> i think so. they did call out datacenters as being very strong. that group will be under pressure, because people tend not to read the conference call. he calls on the cloud as being credibly strong. he said service provider was not bad, but yes, he is out there, saying salespeople saw weakness, and there is just fear. i think a lot of it is europe. he did call out india as not being good. china not good, but apparently there's some sort of gap there. look, they look like a lot of stock at $20 and change. that was looking like a mistake. they have i'm not recommending the stock. i just think that chambers did -- he speaks to customers. >> to melissa's point, it would be great to have more from him and understand in terms of the bigger picture. >> in his defense, he probably answered the questions to the analysts on the conference call, but as you point out not many people read the transcripts. we don't have that qualitative measure. if cisco isn't back doing everything it can in the space in which it exists and there's a secular deterioration in demand for its products, that sounds like to me this is not a buy, nor is any member of this industry. >> i think that there's a secular decline in government spend, and he has done a fabulous job in getting government spend. i think it's cyclical on the other side. he's annihilated hewlett-packard. when i met with mark hurd, oracle downgraded, we're talking about he's going to go after cisco. kevin johnson from juniper, he's going to take business. game, set, match cisco, yet in the end it doesn't seem to matter. i felt for chambers on this one, because boy, they were making this turn really the deer sell rating, but as you mentioned am iing you john? john, i think you're crushing everybody portland there's not enough customer interest. >> what does that mean for people who says it's 10 p.e. on a blue chip company on a balance sheet, is it a buy? >> declining earnings and decelerating during the actual quarter, he was very candid about that, the multiple is a shrinking multiple. i contrast that with intel which has a shrinking multiple. i contrast that with microsoft. there's this great did i cot my between the consumer, who actually has more strength and the enterprise which is tentative and the governments around the world which are, hey, listen, we've got to go bail out bancea. >> maybe you want to stay away from the "ia" companies. >> that's up from 23.25 in a her to avon's board, cody says it believes the offer would coty also adding it will withdraw the offer if avon does not enter into discussions by may 14th. coty says berkshire hathaway is among the companies providing acquisition bid. avon says it will consider coty's letter in due course. do you believe it? >> due course will have to be fairly quick. listen, coty has come a lot way from when i first saturday here, they will not go hostile, because the equity investors will not allow them to do that. they are relying on avon to say, here it is, here are our books, if you let us in by the 14th we'll be done by the 31st of may, we may raise our offer or lower or offer by what we can see and determine in terms of synergies, but let's not forget. coty is a private company, it has to buy this with all cash, so there's no up seed in the combination you might be able to offer. by the way, coty also considering going public this summer. all that being said, even though there remains no path here, they have gone up to 2475 in the face of very poor earnings. avon does have a new ceo with a $30 million contract. that could be called the cost of doing business here. we'll see how avon shoulders here. will they put enough pressure to say just let them in, let's see what we get. if nothing comes of it, fine, and go your other path with the new ceo direction, but warren buffett involved here. that changes. picture. >> it makes it much more real. >> we're not questioning the equity at this point. i've been hearing berkshire's names, a number of others, the brazilians. they've got the money and by the way it's got to be a lot of money. so you're talking about an enormous equity check for -- remember, every dollar up for avon is $431 million. it's not small. they have a lot of shares outstanding. >> aidie yen young still a -- >> still there. what do you have to do to get fired? maybe borrow a lot of money and sell your green mountain coffee shares. >> and violate a trading window. >> or think she's being treated differently because she's a minority woman and there are so few? corporate america? >> that's tough. there was a great article in "fortun "fortune." she was embarrassed by the fact that avon had this avolcano calling. what she had to do is bring in brand name products that people might bring in retail. it was a disaster. herb greenberg has been doing fabulous stuff on herballife. they she got up in a chinese foreign bankrupt practices business. i think at a certain point, no matter who you are, you should leave the company firms and coty wants to try to understand all those things in terms of costs, in terms of financial -- what's going to happen with the fcpa. we'll see. we'll see what happens from here. you know, brazil is still a problem for them, regardless. i'm not sure how coty figures it can solve what's going on in brazil. again, no path here, so if avon says no, it's going to be over. moves on to facebook, ahead of the ipo, facebook revealing more details on mobile using, saying the mobile ad business has not kept up with user growth in an amended filing, facebook says more than half of its users use the network on mobile devices, showing very small number of ads in the mobile space, so it's not translated into an increase. zhukker better is on the cover of "new york" magazine calling him the last great american tycoon. if for some reason he's calculating the platform, that's a problem erchlts my lennial media got hammered, reporting -- that was worrisome. another insight that ply me away. dan hise, very candid set in the big issue in 2012 is privacy and your cell phone. if facebook can't market its data about you because of privacy laws, why does procter & gamble want to advertise on mobile? this is a very different platform than your desk stop. i'm worried. i think it's substantive. >> except in ten years, does anybody think we're not going to be completely mobile? in five years? at some point the advertisers have to make the move, and understand the construct and what it's going to take. i mean, right? everything will be mobile. i may be walking around with a dinosaur in my pocket, being i have a blackberry, but -- >> the defense department. >> some lady on the plane actually insulted me. you still have one of those? i said, are you insulting my technolo technology? >> i think it's retro. >> still easier for type on. >> weren't you vote in the dinosaur theme once in your earlier part of the career? >> disney, yes, i did work at the magic kingdom. given their quarter this week, they're a dinosaur. >> dinosaurs rule the world. >> but everybody is having trouble managing to this transition. or even pandora, in talking to joe kennedy, but same issue. aren't they all going to resolve it? >> have you ever clicked on an ad when you're playing any of the games? have you ever clicked on an ad? >> no, you don't. they're too small, you're not going to click. that's the inherent problem. in the meantime while they're figuring out a resolution, companies will go by the wayside. that may not be in the future. that's going to kill some people. the last tycoon supposed to be a hundred -- 900 million users. it should temper your enthusiasm for the deal. i know it won't, but it should. >> you are typically looking to act and do something commerce related. very difficult on facebook. "usa today" this week had a big story how you can get a piece of the facebook iismt po. you would advise the average investor to stay away? >> i know they're giving it to terrific retail outlets, if you can't get stock on it, if you were on "today" you say your kids may love it, but if you buy this stock in the after market, i think you can get hurt. all right. still to come this morning, a lot to talk about. one of the year's ipos looking to get its mojo back. cafe press, something that allows you to design your over t-shirts. one time for the futures in several mornings, some green arrows. we're backs at post 9 in just a moment. how math and science kind of makes the world work. in high school, i had a physics teacher by the name of mr. davies. he made physics more than theoretical, he made it real for me. we built a guitar, we did things with electronics and mother boards. that's where the interest in engineering came from. so now, as an engineer, i have a career that speaks to that passion. thank you, mr. davies. . that more may join the ranks after facebook goes public. that brings us to the squawk on the tweet. if you left your job at facebook and took your shares, what business would you start and why? tweet us, we've got your responses throughout the morning, and certainly there are a lot of innovative, so the types of businesses they possibly found could be interesting and intriguing. the next wave of ipo, perhaps. >> i spoke to the people on the cti panel, i said, wans instagrm worth it? i'm thinking let's give guys $500 million and jest bet on them. >> we've tried that with some solar companies. >> yeah, how well did that work out. >> that was a complication, good point. cramer as mad dash is next. and how we are setting up for this thursday morning -- is it thursday this the dow is up by about 61 points. looks like at the open. stay tuned. home protector plus, from liberty mutual insurance, where the costs to both repair your home and replace your possessions are covered. and we don't just cut a check for the depreciated value -- we can actually replace your stuff with an exact or near match. plus, if your home is unfit to live in after an incident, we pay for you to stay somewhere else while it's being repaired. home protector plus, from liberty mutual insurance. because you never know what lies around the corner. to get a free quote, call... visit a local office, or go to libertymutual.com today. liberty mutual insurance. responsibility. what's your policy? if you made a list of countries from around the world... ...with the best math scores. ...the united states would be on that list. in 25th place. let's raise academic standards across the nation. let's get back to the head of the class. let's solve this. ♪ i can do anything ♪ i can do anything today ♪ i can go anywhere ♪ i can go anywhere today ♪ la la la la la la la [ male announcer ] dow solutions help millions of people by helping to make gluten free bread that doesn't taste gluten free. together, the elements of science and the human element can solve anything. solutionism. the new optimism. take the privileged investing tools of wall street and make them simple, intuitive, and available to all. distill all that data. make information instinctual, visual. introducing trade architect, td ameritrade's empowering web-based trading platform. take control of your portfolio today. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. there you have it, it's the cnbc real-time exchange at the big board. the northeast utilities financial academy. at the nasdaq, tellius does the honors there. fed chairman better nangies getting ready to address the chicago fed conference. steve liesman has headlines crossing now. >> carl, making some upbeat comments about the banking industry saying lending has generally been improving he as -- banks says it makes considerable progress in the and in building up capital. they reduced their dependence, which was their relyians on wholesale short-term funding. delinquency rates are down substantially from the peaks, profitability is up, businesses and households are finding it easier to borrow. the improvement is not just to small banks. and fewer community banks failed in 2011 than in each of the previous two years. domestic banks are picking up some customers because european banks are pulling back. crepe demand generally has remained sluggish. credit conditions in some sectors for some types of borrowers, he says remain tight. it's going to be difficult to turn around the mortgage market very quickly, including, because current mortgage standards may be limiting loans to even creditworthy borrowers, even those who put down 20%. overall, guys, i think this is pretty upbeat fed chairman, who is not inclined to making too many upbeat comments about the banks industry. carl? >> all right. steve, thank you very much. steve liesman joining us back at headquarters. interesting given a week when the journal says if you want to reify, good luck, there's only a few bank that is will talk to you. >> i think steve makes a point. a that's been echoed in the regional reports. there's more consumerlanding? i'm always in the market to buy real estate, because i can't own stocks. >> not a castle, though, in ireland. >> did you see there's a castle for sale in ireland? 275 acres. >> just came on the market. so i've been looking. >> y