Yet this morning but well see. That can change as you well know. Tenyear note yield, where are we . Yes, we are moving up yet again after yellens testimony yesterday, of course, going on for much of the day. In front of the House Financial Services committee. Europe did well. Europe so far looking pretty good as you can see there, of course, weve got the china trade numbers, bank of england also, by the way, raising its uk growth forecast. China certainly helping on the trade front, those numbers when they came out helped turn europe or continue a rally there. Right. Lets get to our roadmap this morning as well, of course, well be talking about markets. Starting off from their highest levels in more than two weeks the dow and the s p looking to extend the strongest fourday run since june of 2012 and december of 2011 respectively. Deere shares are higher in premarket. The company reporting earnings and revenues that beat expectations also citing what it says was effective cost cutting. Procter gamble cutting its 2014 profit forecast, this is due to currencyrelated fluctuations, in particular highlighting venezuelas currency devaluation. And amazon, set to hire more than 2,500 new fulltime workers at various Fulfillment Centers in five states across the United States. All right, lets start off on the market. Stocks aiming for a fiveday, thats right, a fiveday winning streak. The dow, nasdaq, s p 500 each rallying more than 1 yesterday. This after fed chair janet yellen testified before a house panel and signaled there wouldnt be a major change in the Central Banks policy stance. In the meantime the bank of england raising its 2014 Economic Growth forecast for the uk to 3 to 4 up from previous projections of 2. 8 growth. Later this morning well talk markets and more. Well have an exclusive interview with Jeffrey Gundlach and he loves to talk equities, too. Always a lot a Little Something to say . Oh, hes always got something to say and oftentimes a bit connell temporary to what is the general perception which is helpful in many times in the markets. All right, here we are now. Youd been saying last week keep an eye on some of these things that didnt go down, the cummins, some of the retailers. Weve been rallying ever since. Right. Yellen yesterday people seemed to say, fine, good, all is well. And then we got the china trade numbers. Now, these numbers, jim, are notoriously hard to say they are accurate is a fine way to put it but they were certainly well beyond in terms of what exports anybody had anticipated. We got the baltic its minus six to 1085. You need to see that non lets say thats a thats a number that cant be i dont want to its not a crooked number . Its not a corrupt number . Whats the those are two good words. Honest nin number . And you need to see the pickup in order to believe china. China coming back online does matter. We see the Chinese Market had been horrendous and its okay. China matters immensely. Its the next data point. Its so big. Its so big and it matters a lot to the emerging markets. Lets not forget it wasnt just weakness because of argentina. Its always china because china takes a lot of materials that define our economy. I always find, by the way, youll see some line from a packaged Goods Company and it will say, well, the problem was in china. Holy cow, are you kidding me . And they say because they changed the birthrate you can have more than one kid and suddenly you buy kimberlyclark. Its the big swing. I think too much was made of yellen and not enough made of the debt ceiling. There were many people selling the market betting that there was going to be a move by the insurgents in the house to create another problem. And as soon as that didnt happen within a 24hour span of yellen being what did they think . Did they think yellen was going to be a clown . Right. It will be interesting. If she were a man, would we have doubted . Would the market have doubted . There were some that say i when you look at her experience as i think it was diane swonk said yesterday on our air shes as qualified as anybody has ever been to have this position. Thank you. I cannot believe how i mean, that there is was anyone doubting this person. She was fantastic. She said i dont care about the emerging markets. Thats a good way to put what she said, but shes basically saying the u. S. Is the focus. Im not going to not taper because im worried about the emerging markets. I thought that was terrific. Steady hand. Your point was an interesting one and we didnt talk about it a great deal yesterday, the debt ceiling. Boehner takes it to the floor and they get the vote. Only two democrats vote against. So it was close. Its done, though. Its done. Its off the table. What happened in this country . Was it not that the republicans recognized either that obamacare could sink the democrats or that the economy was really derailed and the funds, the republicans were not getting the kind of fundraising that they wanted from corporations because the republicans were perceived as people who were not helping the cause. That was a bigger indicator. David gregory last week in a chat with me was saying, listen, keep an eye out, the debt ceiling may not go this is something you people are really taking for granted. I think a lot of people werent taking it for granted. They got the employment number on friday and they short monday. Mondays an iffy day because the machinery stocks rolled down and it was led by the soft good stocks and sudden lyellan speaks and we get a debt ceiling and the covering in this market it was violent, ooh, baby. Including a lot of companies doing badly they started buying stock back. Panic and emergency among buyers because the correction between january and february looking like nothing more than a mild speed bump. And about to be sunk by turkey . Remember argentina. Although to our credit we were saying this is cypruslike move. In the interim the tenyear has actually given you a little bit of inflection which the banks need so the banks can participate in the rally and the italian bond market who we often write off. What is the third biggest bond market in the world . Hits 3. 66 on the tenyear. I dont think well trade through the italian bond market. Keep an eye on italy. Last week we saw things people didnt think could happen in november of 2011. We used to say the italian market can sink the whole world but we got the government out of the picture. And pain 3. 611 on the tenyear. Spain was supposed to default, david. I know. I know. France is 2. 28. I mean, theyre all right. All right. I want to move on. I want to move on. I want to move on to more of our favorite topic which is Corporate News and earnings. Yes. On the approach to the market at this point given what youve said, what is it . Were suddenly willing to overlook huge negatives. Like we were last year in terms of incredible multiple expansion without as much catchup in earnings . I feel when you look at scrambling for my notes, but here it is. Dr pepper, okay, keep in mind thats not where i expected you to go. I had the company on air. The income is 1. 046 billion versus 1. 092 billion. The core earnings a little bit better than last year, but the main thing you need to know the core earnings are up 10 . Next sales increase 12 . How much is the stock going to be down with the sales decreasing . Its up two points already. Thats the prism. Its the happiness prism, its back. The happiness prism. I love being in the happiness prism. Lets talk about deere reporting fiscal First Quarter profits a buck 81 a share. That was well above wall street estimates. Revenue also above the conskc consensus. And deere reaffirming fullyear guidance. Lets drill down. You always have an issue. Heres agriculture and turf retail sales. Yep. Down 5 to 10 u. S. And canada and south america down 5 to 10 . And asia up slightly and u. S. And canada Utility Equipment down 5 . It doesnt sound good. No. But worldwide construction and forestry. Operating profit up 32 . And net sales up 4 for the First Quarter overview, incremental margins good. And research and Development Expenses price realization and unfavorable. And production bottoms being the farmers. You saw the stories the farmers poorer than ever. Well, not really because we know from listening to the industrial Farm Information Bureau which, of course, is the madeup company that that chipotle has given us that everyone was short this stock because agco came on. Mad money in abeyance. Stop it. Its not on on some secret channel they said that business could be bad so a lot of people were short deere. Theyre coming in and got hurt by the construction buzz saw. The construction buzz saw will get you every time. Yes, it will. I had a gator at one time, david. Did you . Yes. Dont ask where it went or who has it now. I have to ask both. Where did the gator go and who owns it now . Can we take that offline . All right. All right. Before we move on to Procter Gamble any final thoughts on deere . Yes. This is a company is there a lookthrough to caterpillar or not . I think they are foreseeing Residential Construction staying strong and we know that from the housing numbers. I think well see nonresidential come on. And nonResidential Construction is a huge employer, david and so even though its the winner, let me give you a real simplistic one, have you driven lately . Yeah, i have. Do you see how many axles are broken and how many potholes we have to fix in this country . Owens corning with an insulation number, the insulation, you know who that is . Yes. Pink panther. I wanted to shoot the pink panther, not the shooting of the giraffe thing. Denmark. Theoretical and not literally. Pink panther are in endanger. They are in danger. And the black ones, too. But the profits were in danger and not this quarter. Insuflation is back and its bigger than ever. Bigger than plastics in the graduate . Yes. Its cold around the country. Theres a ton of downside to the cold, the mall traffic, houses and roofs break down, potholes, you need construction equipment. My conclusion those who were short caterpillar are going to pay the price. All right. Pink panther, listen to this, its a feline. Panther doing better. Cat doing better and lets throw in thumper. Okay . Lets throw in bambi. Bambi and thumper. Doing better. Procter gamble lowering its outlook. Dont forget, insulation, insulation. If you want a future, insulation. Lets talk Procter Gamble the consumer giant citing Unfavorable Foreign Exchange rates in venezuela and a devaluation of currencies in a number of developing markets and seeing earnings per share growth of 3 to 5 compared to the prior forecast of 5 to 7 growth thats a fairly significant hit and they are active in many of these countries being that they are exceedingly a Global Consumer product company. You hear often about stocks that my Charitable Trust owns, we own proctor, listen to me and i know youre the senior dean in this, but you could not figure this out when you reported just a few weeks ago . This was not good. How could you not see these trends when you reported . Doth they protest too much, then . Are you pointing a finger here saying perhaps there is something more than currency and its a way to simply get by with that . Yes. I feel like that this is the kind of that was severe. Think about conagra, that guide down was severe. Proctor may get the benefit of the doubt because the stock was 82 and they reported that thing and no one believed the growth. Unileaver is taking it to them and colgate was taking it to them. This is embarrassing they lowered the guidance two weeks after. Jim, come on, pass, pass, pass. No free passes. I did not know that they did that much in terms of the balances in venezuela. 2 230 million to 280 million after tax onetime charge of writedowns because of the devaluation of kurcurrencies. You didnt see that hit. You didnt see that. Disappointing. Lets say that. Disappointing and my Charitable Trust owns it. Disappointing. Well see if the stock is down. If its going to be down at all this morning. By the way, deere was up two because people didnt read the deck. The deck did not talk about robust ag. They do that a lot, though, with the and then when the cfo comes on yeah. I mean comedy turns to tragedy. Im talking about shackespearea nightmare, its not like king henry v. You can look at the annotated it talked about deere going to 85. Shakespeare was a known player of the then stock market in the uk. Procter gamble. Beginning of a big run. I heard some things about shakespeare. He had a good line into small to big brokerage houses. I dont want to see it but im hearing its good. This morning its good news and bad news for amazon. Well tell you why this is the case for the internet retailer. I think im hearing pink panther music. And well have Jeffrey Gundlach hear about the man who shook up the bond world is saying about the bond world. Anything on cliffs naturals . Well have mr. Drabkin joining us at the 10 00 hour. They are trying to put in a new ceo and take control of the board. Amazon announcing it hiring more than 2,500 new fulltime workers. The jobs are at Fulfillment Centers in virginia, kansas, south carolina, Washington State and tennessee. In the meantime ubs downgrading amazon from buy to neutral. The firm citing deceleration in revenue and paid unit growth as well as a ubs survey that shows amazon prime customers are less likely to renew the service if the 79 annual fee would be increased, were to be increased by 20 to 40 bucks. That is something that was at least referred to as a possibility in om dones call, of course, after its disappointing quarter the stock took a significant hit on it. International is where people were worried about amazon from the quarter despite top line growth being quite substantial. The bottom line is not what people were looking for not that theyre looking for much when it comes to amazon. As for the job, the Fulfillment Centers continue to put up more in the u. S. And they have 100 worldwide over 52 in the u. S. Or more. These are jobs. Jobs are jobs. Theyre not great jobs. Its not like you are working in seattle at corporate hq with the potential to move up into and getting a lot of stock, but its a job. Now, youre close to amazon. Do you think its really ubs survey i felt was a little daunting and on the whole, by the way, breaks the halo of amazon. You dont usually see amazons break it off on a survey. Do you really think that people wont pay for prime . Its been the same price forever. They paid it for costco. Or do ul think costcos a better its a great question. I dont know the answer. I think so many people ive been speaking to for the work that weve been doing on a documentary which i cannot wait because its the most exciting company. Its a ways out. There are a lot of very pleased customers, people who use it constantly. Hard to imagine that a price bump of some type would really hurt them, but i dont know. Listen, its an interesting survey. I dont know how well it was conducted by ubs. But its something you have what is the elasticity in terms of their ability to raise prices on prime without losing a lot of people. We know they signed up an enormous amount of people and, in fact, had to stop signing people up during the Holiday Season because it was such a successful offering. United parcel was stunned by the amount of business that was done online which we always want to presume to be amazon. When i had channel advisers on last week on mad money, theyre trying to figure out which channels work and they are saying dont necessarily flood the amazon channel. But amazon web service, david, the hidden gem. It is not as hidden, but, yes. I mean, so important to the backbone of so Many Companies now. And when you do speak to people, jim, they think this could be the real growth platform one day conceivably even swamping the marketplace in terms of revenues, you know, which seems impossible or profits i should say. Do you see parallels to walmart . Which you know well. Walmart didnt do the international that well. Do you see parallels . I see parallels in a number of ways, simply that amazon is no longer the underdog, which is why they want to promote Something Like this we are adding 2,500 jobs. That is great. People argue about the quality of these jobs. These are warehouse jobs. These are not for collegeeducated people. You are going to walk nine miles conceivably in a day. At some point these jobs may be taken by robots. Is that february 12th lincoln that you worked in now . Walking nine miles the rail splitter. That was a clever reference to lincoln that you slipped in. I didnt know that i did it. You deconstruct what i say. Subconsciously you remember when you were a little boy. How many jobs has amazon destroyed that are higher paying . How many Small Businesses have they destroyed . Well, creative destruction. What are you going to do . Remember sherman with the crew with lincoln. On fire. All right, up next is cramers mad dash as we head to break. 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