Pretty tight supply. Weeble have fabers inclusive interview, and another upgrade for netflix, this time its ubs. Were going to walk you through that call. First up apple preorders are surging. They received almost 1 million orders on friday according to slice intelligence. No comment on they numbers from a third party. This took one day. Look basically a sight unseen fabulous ads, and i think what this says is long run, because if theres a million early adopters without even people just figuring how to sync, i would say this is not a 2016 phenomenon. By that time everyone will know you have to have this as a device. You know what . People under 25 carl theyve never had this device. Suddenly theyre going to wear it because its part of their ecosystem. Those of us older who have a watch, were trying to figure it out. Younger people have figured it out. They need it. Piper jaffray, everyone is trying to do their work. B of a is a little higher than that. Even if they sell eighth year is a, the conversation always returns to how hard it would be to meaningfully impact revenue. When youre dealing with a company this size, it will be a while until were focused on this. I continue to wonder and think that its all about creating the new well, an ecosystem for this watch within the larger apple system. It will take years, jim, conceivably. I suppose this is a good start, but its only that, a start. Maybe i should have the watch to go with the pc with the tablet the iphone. It will also be a gift. I think people have to recognize this is the first price point, you dont have to hook up with verizon, you dont need a plan. All you need is here is the watch, heres the band. Go buy five other bands itself and make it the ultimate accessory. My generation felt the watch was an accessory that looked good. New generation doesnt even regard it as an accessory. Suddenly theyll have a reason to look at the wrist and its the apple watch. Interesting. Pacific crest, if apple sells to 5 of the installed iphone base thats already more than half of the 200plus watch market in general, which is an amazing statistic. I think what people have to do is recognize that the watch is only one part. Youll get the watch. Youll go to your itunes youll buy the apps but more importantly youll buy five pants. Youll want it for difficult occasions, saying youre going to the Bachelor Party in atlantis, and you want a totally different banding that going to say, a wedding in new york. I can already see you laying out plans for the device. As a coda reuters reported that apple would in fact break out number at 8 30 eastern time. That clearly did not happen. I dont want them to do that. Guys, heres the way you play the watch. In 2017 you tell us how much of the world is interested. David, what this says to me is then it doesnt even matter. I do care much more about apple pay. Theyve got to make that easier for providers and restaurants, retailers to embrace. Thats their next step. That is the needle mover for 2015 fourth quarter. Yeah. Apple pay is a potential a very powerful business for them jim. I think thats true but we still have a lot of questions as to your acceptance of major retailers and resistance at this point seemingly because they want to keep control of the customer, i guess, which is something we also saw when it came to the music business. Apple of course won that war. The war is walmart. The war is target. At what point will the target customer who is at college say, listen, wallet . Heres my wallet. Well, we dont take that. Oh okay you know who does . And there will be another retailer. Target cant lose a sale because they dont take the apple phone. Well watch that this morning. Also watching shares of qualcomm, janus seeking a breakup, well have a live interview with the founder of jana. Were also seeing some action in the premarket. Carl, listen this is a very large ception, the largest i can remember jana having taken. It follows a couple months of conversations, while its not as though theyll be doing anything near term. In fact the window for such nomination has passed. It does give them time to engage in the catalog. Theyre not necessarily advocating for a split. Theyre saying we want to you transparently look at the benefits and the costs of a split and tell us what you find. Theyre also saying the cost structure is too high and they also want to see more capital returned in a more rapid fashion. Remember, it wasnt very long ago qualcomm told us about as enormous buyback. Nonetheless, it does appear that jana at least wants to see a return of capital even more quickly. The company i think will push ban. Im going to have an opportunity to ask mr. Rossenstein about them when we sit down about an hour from now. Many companies are too fat, because there are no activists. Had qualcomm won the apple business and not lost it to apple competitor samsung, the it would have been like this thank you very much for an 85 stock, and im glad were going to 100 you screw it up, dont get it suddenly the get a knock on the door. Which is what most people are dough, or faux index fund but from a guy that says listen just because you lost that business doesnt mean we have to sit out until next year. This is the ceo big pressured by the fans to win this year and not just tolerate no playoffs. Is it the right thing to do . I like making the playoffs. That said your advice has never been to buy a to be strictly because an activist is involved. No because for all you know qualcomm has seen this plan over and over they developed a plan they knew of it they thought of it themselves and they said we would rather just get apple next year and then we go to 100. David, you have told me over and over again, there are no new plans, there are no things that the activists have thought of that the management hasnt. Is this one of those instances . It is very infrequent thats true, that a company has brought something from an activist that they havent considered in the past. That doesnt mean think shouldnt be forced to reconsider it our their consideration is not necessarily one that aligns with the shareholder base, but in this case think 15 years ago they did consider splittic the compete and they revisited again i think in an 2005 2006. While jana will not be coming up to the board anytime soon they are being somewhat aggressive in terms of their strategy here including the media rollout. Mr. Rossen stein presenting at this conference just finishing up about 20 minutes or so ago with his presentation as to why he thinks qualcomm could be at least 50 higher in the brief time i had to speak to him prior to his presentation what it could be. It doesnt mean by the way it will be. Theyve had success, by the way, jana at mcgrawhill with the split a couple others but there are examples when a splitup has not been the right way to go. Im always if worried about the timkin and suddenly why you kept the two parts together, which was the service side say, is not enough to give the other said just goes by the wayside. I question whether qualcomm is just a Great American company that this quarter didnt do it but i also respect janus so much there are very few activists who when they get involved i dont say, wow, a lot of good points. Jana has such a good record i have to say to myself if that stock comes in back to where it was, because the hoopla dies down, maybe. David, what else is going to come up in the conference today. Were going to be sitting done moment tear with the garden of trien, the focus will be dupont, were one month away from the meeting for the vote. This is one contentious proxy fight. Talking about rosenstein not long after that. Keith meister its so amazing when i talk about these names. And how fast their assets have grown. And jeff smith, talking about a lot of his new ideas, not to mention was going on at darden. What theyve done pretty well. I listen to you for low gasoline prices. Sometimes you get the wind at your back. You know what i want to be with dupont . Notched down friendly. Its not adhomefhominun, david, the acrimony is too great . I think it may be a little late for that. Depossibility withdrew its offer of with you nominee, at least. Theyre a month out, this is important. Its only waged one proxy fight in its history, of course with heinz where it was successful so a lot riding on this for them. Not to mention, of course an almost 2 billion position in the stock, though they have already done fairly well which goes to the argument that weve had and weve had talked about, of course it can prove more difficult times when a company is doing well to get shareholders to agree that it could be doing even better. I look for a mag nam muss situation. Everybody wins get away from this nothing of license, i know the lead director wasnt happy with us. Everybody gets in a room. We all and then just kind of peace not at any price, but peace with win. I sure would like thinks people who are all great people to get together and figure out some fantastic ways. David, ill broker it if i have to. Im a man of peace. The you always bring it down, jim. When you walk in a room jim, thing really calm down. [ laughter ] all right. Well gandhi and i, you know the dalai lama has game, i think. They can go higher provided they break bread, youve got some good ideas, you know, weve got new directors. It just doesnt have to end so badly f. Guys thanks a lot. When we come back netflix gets another boost today. Well talk about which one. Also ahead, sprints new moves aimed at beating the competition in the wireless wars. A live interview with the ceo. Relatively muted action s p going for the fourth in a row, something its not done since the latter half of january. More, when we come back. After all, healthier doesnt happen all by itself. It needs to be earned. Every day. Using wellness to keep away illness. And believing that a single life can be made better by millions of others. Healthier takes somebody who can power modern health care. By connecting every single part of it. For as the world keeps on searching for healthier. Were here to make healthier happen. Optum. Healthier is here. Not flicks on the rise in the premarket, ubs upgrading the streaming company, raising the target from 370 up to 565. Ubs says the current stock price is an attractive point, they have all these worries about whether they can contain content, jim, is in their view not a problem. I agree. The secret to netflix is worldwide people have always love our content that we develop, and younger people they just dont watch when we do. They watch netflix, they catch up on all the things that you and i know. Netflix is a shared a shared community. Its not an ecosystem as much as a shared community. I have to deep defaulting to what younger people do, but its my kids but what should we do . Bhashd we look on netflix . We do not look on individual i dont on demand or what might be in the tv box. We say, hey, look i saw this great thing on netflix. Thats what they do. Its a worldwide conversation. Going to a buy, when its essentially 15 bucks from the 480 it topped out at . Well nobody is perfect, just like when my kids downto the some like it hot at the end. I like the quarter, i think that people have to recognize this is not an inexpensive stocks. Netflix is worth, i dont know five times spotify, without a problem, but netflix is stuck being a public company, and it has to get to a private valuation. I think this product is so much bigger than the market cap. Speaking of the spotify valuation, pandora up in the premarket on the heels of that. Hillary clinton has finally made it official. Im getting ready to do something too. Im running for president. The former secretary of state announceing her second bit for the presidency. She says quote, the deck is still tacked forstacked for the people at the top. And well talk more about this jim, as we get into the summer. I think Hillary Clinton is known as a person who talks to top business people. I hear people framing her that shes friendly with people on wall street. She talks to everybody. I think there will be a joint conversation with company that is create jobs. Thats the american way to talk small business. We need to think big business why . Big business is losing jobs to overseas if she can break through the orthodoxy of globalization at the sackry for a shes going to change the discussion. We have to stop exporting our jobs and importing their pollution. The candidate who talks about that platform, is candidate yeah well talk more about that and productive in postrecession, whether m a is a siphon of weakness or strength. Well have the mad dash and countdown to the opening bell. 36 members of the s p reporting earnings this week. It really begins tomorrow. A lot more from the nyse in a moment. If youre looking for a car that drives you. And takes the wheel right from your very hands. This isnt that car. The first and only car with direct adaptive steering. The 328 horsepower q50 from infiniti. Doug. Youve been staring at that for awhile, huh . Listen, Td Ameritrade has former floor traders to help walk you through that complex trade. So youll be confident enough to do what you want. Ill pull up their number. Blammo. Lets get those guys on the horn. Oooo looks like it is time to upgrade your phone, douglass. For all the confidence you need. Td ameritrade. You got this. Just about six minutes until the opening bell. Unh reports this thursday, and in front of that . Jeffries says buy it. Heres the issue, if the wrong if the right is even better than they think. I think unh has a great Business Model. This is one i say yes, even up here. Start small, let it come in the rest of the day, do some buying. I think this company is on fire. Whats the matrix here . Premiums . Medical loss just the notion of a transformation making great acquisition, breaking away from the pack and by the way, dow stock, this is becoming a de facto name for Portfolio Managers everywhere who Want Health Care managed. This is what they own, and theyre going to keep buying because think think its worth up here. Well find out. Wash me through fresh pet. Organ and natural pet foods. People love their pets. Were always trying to feed them what is good for them. This is what fresh pet does. This is a 60 of the flow to short, which is insaid. They had a really good quarter. And goldman gives it to the people who are already long. So you better cover ahead of the deal because the deal will be so squistly bought up that you your head will spin. Nice company. What do you make of the argument this is an inherently discriminatory cost . Right . It is on problem i have is i dont like the pet food in the refrigerator next to foods, but there are some people who arent as discriminatory when they grab something in the middle of the night. Theyre selling to the biggest box retailers. You know you try to finish it give the pets just so it doesnt look like a salami but you start making sandwiches icebox man. Well get you the opening bell in about four minutes. Dont go away. 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 2015 eclass. See your authorized dealer for exceptional offers through mercedesbenz Financial Services. Its more than a network and the cloud. Its reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced Technology Solutions, including an industry leading Broadband Network, and cloud and hosting services all with dedicated responsive support. With centurylink as your trusted Technology Partner youre free to focus on growing your business. Centurylink. Your link to whats next. Youre watching squawk on the street live from the earnings this week really begins tomorrow. Jpmorgan p. Johnson johnson, intel. Thats just tomorrow along with a lot of economic data. Ppi later in the week retail sales, Housing Starts and cpi finally on friday. Lets get a look at the opening bell the s p at the top of your screen. Down here at the big board, its new york city f. C. A Major League Soccer club and new yorks fine its sports franchise and blue nile doing the honors at the nasdaq. Jim is back after a bachelors weekend in the bahamas, his voice hanging in there. We missed on friday because of the ge news and a lot of people wonder what you do now. Others say its going to go back to sleep. No this is a material higher. I have been waiting for jeff immelt to do this. I wanted bold action not piecemeal action. I told him this i dont know a decade ago, if you give me a pure play in the industrial with the firepower and the brilliant at the different levels, you have a 35 40 stock. I think thats whats going to happen. This would be the industrial on core holding i think this company has a great Balance Sheet, it can pick and choose of what it wants to buy. I applaud them for taking what is what theyre doing is they have this big bond which is all the real estate. You know what . Its the top of the market for bonds. Theyre selling. I think this is a fabulous move. You will see Portfolio Managers saying, you know what . I saw i sold my emerson. I sold my blah blah blah industrial, and i bought ge because they have a dividend thats the best and they can go higher. On that point, even credit squeeze think theyll buy back every share, it will be a buyback where theyll get a moment that maybe they cant buy because a window this closed. They tie think were at a loss. How do you value a Great Health Care business that can get better . How do you value an Oil Service Business that maybe they could make huge now that all the prices are down and the answer is as if you value it as if its the great growth industrial. Jeff immelt talking to faber on friday about why they made the move now. Take a listen. Right now i think two things have happened recently. One is you have a perfect market to be selling Financial Service assets. You have slow growth low Interest Rates, lots of liquidity, people searching for yield. I think the financial Oversight Board has said theres an offramp for companies who are systemically significant to kind of get off as they had runk. We think this is good for the system, good for the regulatory world, and thats been more or less recent. Now is the time to do it. One bullish argument on that offramp is once they exit this decidingation, you cant add leverage to the industrial side and that would power growth. Who