our road map begins with john chambers stepping down from the ceo post at cisco by the end of july. chuck robbins is going to take the reigns. mcdonald's unveiling a brad new turn around plan this morning focusing on innovations such as delivering breakfast all day. >> warren buffet issuing a word of warning about stock valuations and interest rates. we'll get to that. first up cisco has chosen its future leader goble operations chief chuck robbins, effective july 26th. chambers will assume the role of executive chairman and continue to serve as chairman of cisco's board. chambers joined in '91, ceo in '95. he's grown it to $48 billion in revenue. >> one of the longest running ceos of the billionaire companies. i think he's managed to navigate what no one else has. he's leaving the ceo job at a high. the stock is only one point off its high. it happened to have the best european numbers. if you think the dollar has peaked a knew consensus is building. john will be staying with it. develop a good relationship with john over the past year. >> chuck robbins, joined since '97, the senior vice president of worldwide operations. >> this is important. worldwide operations has done incredibly well. good numbers in france and spain. john has tried to avoid what the investigations that a lot of these european organizations have done by creating a huge number of jobs including a big commitment to france. i think this will be seamless. this is a company that's very under valued. when you look at the way nasdaq values you'll have social moo ya media and internet. this is not an expensive stock. >> he will still have an important influence on the direction of the company. many often times you hear us talk about a chairman, it's nonexecutive. in this case it's executive chairman. he will remain chairman of the board of directors. >> we'll keep our eyes on that' see what he first heard from chuck robbins. >> john has been at it for a very long time. this is how old i am. wo most of the companies in that industry have fallen by the wayside. >> i think we probably will miss some of the color of his conference calls which is generally one of the highlights of earning season. >> let's hope that robbins does something similar. mcdonald announcing some initial sfeps for the turn around strategy four new operating divisioning, selling franchises to franchisees. here's what he had to say this morning. >> the business cannot ignore what customers are saying when the message is clear. we're not on our game. like i said, the numbers don't lie. we'll be faster with innovation smarter at taking risks. >> try to localize decision-making, increase the franchise rate. they hope to save $300 million by the end of '17. very few specific headlines. the thing people picked up the most is that they're going to start delivery in new york today via post mates. >> yeah. the man who has built post mates, this is his thirds big deal. i hinted on this but was not able to revul it. he has chipotle and starbucks. this is a company that's kind of one of these busy pricing companies. the cure yours areyouriers are able to get the stuff to you. saying we have too much red tape we don't make good food and we have to refranchise. maybe this is what is needed. just a toet l recognition that perhaps things are gone wrong. but it's almost as if there's just a hey, listen we're a bad company. funny listening to warren buffet talking about burger king a company that's vaulted in front of mcdonald's. >> sg and a per store for mcdonald is far higher than burger king and that is the key, getting that down for each franchisee. this refranchising plan adding 3200 by 2018 certainly some will believe it will insentcent franchise sees to do better. >> 81% goes to 90% franchising. they've lost the franchise. what did in the previous ceo, the franchise sees have turned on the organization. and anything that brings them back is going to be meaningful. but we don't see the real estate investment trust. this is about how we got to start somewhere. >> people will be saying you still overcapitalized. still have to do something about in. >> the company said this is the beginning of several announcements they'll make. not the entirety of the plan. they clarify the delivery test and the breakfast test. they're trying a bunch of different things and trying to avoid some confusion. >> whenever it goes well, don't do a thing, when things go bad, change everything. they're changing everything. >> mentime, a big day for buffet. standing by his investment strategy when it comes to core holdings like ibm and coca-cola. early this morning berkshire ceo said he bought for shares of ibm during the first quarter. take a listen. >> the market against normal interest rates is on the high side of valuation. not dangerously high but on the high side. >> on the other hand if these interest rates were to continue for ten years, stocks would be extremely cheap by now. the one thing you can say is stocks are cheaper than bonds. >> of course for a long time he said the low rates would lead to inflation. he's been wrong. he admitted that. and he reiterated that it would be hard for the fed to raise here. >> if europe finds its legs that would perhaps imply that it is time. stanley fisher has done a good job. yellen obviously doing a good job. major take away the buying of ibm. i believe there's a turn there in saying that since the last quarter, given the fact they're moving aggressively into artificial intelligence. >> yeah, they are. >> but frankly, this is a company that you could argue had 12% swing in currency. and if you believe that the change seems to be overcoming portfolio managers that the dollar has peaked ibm would be one you would want to buy. >> i think it is interesting that he had chosen to go that way. there had been some fear after the company of course did not meet earnings expectations a number of kwaushters back that would buffet even be this. and it was interesting because he did not lend his endorsement if you will at that point. but he's certainly lent it in the marketplace given he's continued to buy more as opposed to going the other way. >> you're talking about big four, american express, coca-cola, wells fargo. i come back and say it is an inexpensive stock if they deliver on their ability to be able to get the fast growing part, the watson part if you want to call it that. it's one of these things when warren buffet says it's good -- i was watching the interview that rhonda shaft ner did with buffet. saying hey, would you have felt better buying apple? no. obviously you play this game. would you feel better buying ra jet ron than pfizer? it does say he kind of bought the one he understands but it is not the one that's outperforming. >> one thing that all three of the gentlemen that becky was interviewing is negative interest rates. when she asked him about that gates, munger and buffet all saying we have no idea how long this can continue or why it's going on. not necessarily say but they shook their heads the same way we do. >> the one thing they don't want to do is predict anything. they're saying our businesses are good businesses, we buy them at the price we like and we own the business. they're trying to buy companies that are not at the, let's just say that they're not blowing in the wind. and the macro obsession of the hedge fund managers is something that refute in the same way they refute the notion of trading. they stick by their guns. it's impressive. there was a moment where warren buffet said we're making minute own money on wind. we didn't get that call. there are things that company can do. you might want to imitate the company by what they buy in the big four. imitate the company by buying shares in the company. >> would you rank them wells, ibm, coke amex? >> wells is the top. >> no fequestion. there's some competition for last place. >> american express has lost its way. american express did not do social mobile. they had a great opportunity. they did not do expedia, priceline. these are the ways that people book now. they've been left hopelessly behind. the costco deal they didn't get that one. the difficult one for me is coca-cola. at the same time you're dealing with cherry cola land. when you listen to buffet saying he sees people not smiling at whole foods like at dairry queen. i go to whole foods now, i'm 176, i think it's a longevity issue, not a taste issue. i had quinoa last night on chicken. >> didn't make you smile. >> had to put something on that. it's like eating bounce you know the sheets you put in your washing machine. they both have crunch to them. >> i don't remember you at 210. >> that was the height of your hedge fund years. >> the height of my happiness period. >> some people like brussel spouts and kale and broccoli but don't invite me for dinner. >> we use a lot of kale. it has no taste to it but it does make you less hungry for milky ways. >> i love mig milky ways. >> are you a blizzard guy, gary? >> no. i keep my milk shake to shake shack vanilla. >> what a breakout there in that stock. >> somebody likes it. tomorrow 9:35 a.m. eastern time on this show we'll talk to cisco's chairman, john chambers as he gets ready to toss the ceo baton. >> how did i know that? how exciting. >> we like to keep kour surprises. we'll talk with venture capital list fred wilson in a rare television appearance. one of the earliest investors in companies like twitter and tumblr. take another look at the premarket after stocks lost ground last week. factory orders up at 10:00 a.m. well, a mortgage shouldn't be a problem your credit is in pretty good shape. >>pretty good? i know i have a 798 fico score thanks to the tools and help on experian.com. kaboom... well, i just have a few other questions. >>chuck, the only other question you need to ask is, "what else can you do for me?" i'll just take a water... get your credit swagger on. become a member of experian credit tracker and find out your fico score powered by experian. fico scores are used in 90% of credit decisions. welcome back. our parent company comcast reporting earnings this morning. after abandoning its plan to buy time warner cable. and the numbers overall quite strong. what's comcast's story? today's q1 results are very strong across the board and strong case for best operator best assets. dare we say the disney of cable? as for the numbers themselves operating cash flow flow of 9% consolidated revenue ahead by 2.6%, operating cash flow up 7.6 president 7.6%. couple of things that i'll give you here in terms of interesting parts of the quarter. theme parks, who knew theme parks would now represent 25% of the profitability of nbc universal. the growth numbers at theme parks were dramatic. operating cash flew up 54.6%. i mean they should tip their hat each time to j.k. rowling. now know heir pi potter has done wonders for that. cable margins look good. they added a lot of high speed data subs. xfinity does seem sob generating or getting new traction. half all of video connects was x 1. that drives average revenue per user. that's sort of seeing payback on a lot of the capital investments that have been made. and as i said buyback of 7 million this year. you're returning about $9 billion to shareholders. so at two times, that's a lot lower than a lot of other cable operators might be. but this is one of the biggest debtors in the country. i'm not saying that. i did talk to a number of people this morning who concur. >> i like to focus on free cash flow per share, increased an astounding 16.8%. again, i also feel i have to say i work for comcast. but this is what the former cfo has always taught us. look at the free cash flow. >> yes. now what that means from here just to continue on that note because they say, all right, what is comcast now. gone is the idea it will be the king of enterprise services gone is the chance that they'll launch a new wi-fi network. gone is the idea that it's going to be the biggest. at&t direct will be bigger. you're still 2 biggest player in broadband and you have a lot of things going for you, including the x 1 database. >> once again you do get -- that's a good point. the thing that's impressed me is where are all of the new people coming from. everybody added tremendous number this quarter. >> that's high speed data. a lot of people don't have high speed data so you're adding. >> do you regard that as -- >> that is over. everybody is flat or losing. other than time warner which did add some. >> and netflix, a driver? just the need for speed in general? >> need for speed. think about how much you're watching or streaming. >> how much i'm streaming on my apple watch today. >> broadband rev you is up highest in four years. >> these are amazing numbers. but it says if you were to get another operator that wasn't as skilled, you would be able to flood that with the tech. >> that was the argument for why they said the time warner deal would be a positive for consumers because you would bring them the latest iterations of the technology x-1 whereby that platform not going to happen. we'll see what does happen with time warner. a lot of different news out there. almost all of which we told you last week. namely they'll be meeting next week. we'll see what charter choose to do here. how high it choose to go in terms of where it's willing to meet the expectations of time warner cable shareholders and management. will it be 170? will it be 175? could they go that high? how much stock will they use? how much cash? as we watch the possibility of consolidation away from comcast certainly but within with industry. >> we do have some sad news to report to you this morning. dave goldberg died suddenly over the weekend. he was a well known entrepreneur. disney moved up its earnings release to before the bell tomorrow so company officials can attend his funeral. dave golberg was 47 years old. >> wow. >> took your breath away. ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. ♪ ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step. a lot of ideas look good in theory. but the real question is: how do you make them pay off for your business? at kpmg, we work with you, shoulder-to-shoulder to turn strategy into real results for your enterprise. because while theory is great, we work exactly where you do: in the real world. ♪ ♪ the pursuit of healthier. it begins from the second we're born. after all, healthier doesn't 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... we're here to make healthier happen. optum. healthier is here. all right. we got a mad dash for this monday. six minutes before the opening bell. we're going back to a story of course of last week that being twitter. >> i keep going back to the unbelievable interview with dick costlo where it seems that there isn't as much as we thought and there was a previous meeting where we thought there was more. i think you're going to find people saying, you know what this is a level where maybe twitter can turn things. i keep coming back and saying you know what? twitter is no monitor rye zags even on this weekend's fight. people felt like the fight had a huge number of tweets but a hum number of tweets is not converting into a huge amount of money. this is tweets per fight or tweets per, you know nfl draft. we're struggling with how to grade this company. and i think that's part of the problem. i'm being fa sheeshs in the tweets per fight but that's what people are saying. how could they not make more money. how could you got get a spike in advertising. that's what i wanted to ask him, quite a gentleman. >> yes. that being said this is a platform that continue to ma sure. you did start as an idea not necessarily an idea to sell advertising. >> fred wilson at 10:00. fred understands however it should be interest. should be interesting. have we got next. >> here's a pattern we're seeing, research firms reiterating buys. u.p.s. reiterates disney. it has been the pattern that the stock does not spike on earnings. just keep that in mind. "avengers "avengers" a remarkable number. i would not say that avengers would a weak performance. there's still so much in the pipeline. i'm so struck by the universal numbers for theme parks that i have to wonder whether it also wasn't just some sort of movement through theme parks because of lower gasoline. >> will be interesting to see that disney. star wars and then shanghai disney. >> does that come with a mix? the air there i keep hearing over and over. >> when i was there in november it was horrible. you would not want to go out. >> some of those rides take your breath away. i would hate to see it doubly take your breath away. >> maybe they give you a little oxygen. we've got the opening bell coming up four minutes from now. stay with us. ""squawk on the street."" a lot mshore on this monday. my name is jamir dixon and i'm a locate and mark fieldman for pg&e. i protect people. i protect our community. i protect our environment. when you call 811 i come out to your house and i come up to your dig site and i mark our gas lines and our electric lines to make sure you don't hit them when you're digging. most people in the community recognize the blue trucks as pg&e. my truck is something new... it's the 811 truck. we get a lot of questions about "what is 8-1-1?" and it gives me a chance to engage customers and contractors in the field. 811 is at the heart of safety. call before you dig. we want everybody to know 811 is a free service. it's important for me to get it right because this is my community... this is my environment. any time somebody is digging i treat it like it's my house or my family member's house. i want people to know what's underneath them when they're digging. i'm passionate about it because every time i 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always surprised that companies don't want to report more this week because you actually have time. there were fom quarters i with us going over this weekend trying to get to where there were quarters last week that we didn't even bother with. >> that's true. >> anything that we missed that we should have actually come back to? >> i thought chevron was very important because chevron did not buy stock lower. >> we got to it a bit on friday. u.s. global investors some bright the first atf. and an industrial engine maker celebrates its 100th anniversary as a public company. few moves in retail this morning. i'm sure you saw hbc initiating on some of the names, lulu american eagle. but amf under performed. >> lulu is a weak dollar play. they've been really hurt by canada. i'm going to start talking more about weak dollar plays because it's against the grain. but it does seem to be the trends that no one is counting on. american eagle, obviously that's a resurrection story. i don't like tina powell because they're so fickle. >> yeah. >> my daughters frankly are leaving the teens where it's very difficult to figure out. it's hard to figure out what apple watch to buy. >> biggest loser this morning, crm which continue to float around in various reports about all kinds of stuff. >> i spent a lot of time with mark bennett. what kind of week was that. i had dinner with him within spent a lot of time and he came to my party. i would have thought that was difficult. maybe he was doing it -- he has an apple watch too. i'll take 85. i think he has a good relationship with microsoft but that doesn't necessarily mean a takeover. >> a lot of the reporting when it comes to that is not necessarily here are the talks and the talks are going to lead to a deal. it's somebody hiring advisers about something, a company is thinking about doing something. it's actually when they do it that it becomes news. but it makes it very difficult for investors, i think, to follow the headlines open get caught up in them when the stocks move so dramatically. you're way above where it was before the announcement. >> the is so-called announcement of bankers. mark showed me was 60-story tower he's building and how he's consolidating his people. he clearly said we're not going to because we can't. but the speculation took me by surprise because yes there was an analyst meeting where microsoft was indeed in san francisco. mark tweeted that he was at the microsoft meeting. and or kl did a deal. and i think, david you have thought was there have been twice as many takeovers announced as there have been takeovers. >> yes. there has been a rash of reported on, i like the say unconfirmed rumors. that's my favorite one. >> just go with it. >> unconfirmed rumors. >> cisco is flat on the news of their new ceo replacing john chambers as ceo. mcdonald's at the turn around video was launched at 8:00 a.m. eastern is down about a percent. >> people keep coming back to mcdonald's because they have a terrific yield. i don't like a situation where a guy says planlisten, we're not as good as we used zblob are you surprised at all it's not generating more interest? was there too much out ahead of it or is there something people were disappointed with that wasn't in there? >> most of the people felt there could be a radical use of the balance sheet. a smonster buyback. >> it didn't include that. >> he does refer to increasing capital return given the savings they're going to have. >> everyone is tied up with post mates. if you have a line during the busy time post mates can help you tremendously. i like post mates model and a lot of people who want shifts so to speak, pick up a little extra money, have been recruited by post mates. it's a remarkable company. shar bucks, chipotle and mcdonalds? it's the de facto way to get food from quick serve. >> never used it. >> you never used post mates? >> no i haven't. >> i haven't used post mates either. >> starbucks? >> we have a new starbucks across the street which is the small format. there could be thousands of those added. a lot of people feel that there's no growth in the u.s. that's wrong. >> jim a lot of complaints that stocks can't meaningfully break above 2100. we've above it right now. but the big volume comes on the selloffs, not on the balance. >> we need the dollar to peak. the dollar -- when you're on the conference calls they're dismal because you do constant currency and it doesn't matter or your admit the surgeoncy. ibm saying this is killing us. john chambers at cisco, it was not killing them. you buy their equipment in dollars if you're over there. i i think a lot of that he stays the executive chairman and they have such momentum in europe. >> i mean they spend, they spend plenty. but it is obviously increases that you're talking about and that is not as likely. >> do you think t-mobile if these guys go at at i loan there's going to be a lot more spending. >> to a large extent investors have already taken advantage of that. >> at&t and verizon need to spend more at&t now once the directv deal closes. you're close to them. they've had a notable absence. these companies spend fortunes. >> yeah. >> chambers would tell you it's the internet of things that's driving things. the connectivity that is very much with us. you'll see those all percolating. very good quarters. >>tyson had a good quarter. hill shire helping up. almost 3%. >> looks like that acquisition made sense. >> which one in. >> the tyson lf sill shire brands. buffet made a great point saying that heenz was doing so well they did not close on the plans. and that's how they boost their rated returns. >> he did get some heat from some of his shareholders about the relationship between berkshire and 3g given their being known for the cost cutting. >> there was some unexpected grum pus aspect of the weekend. i don't know. you have to report it on but in the end it's still a love fest. a lot of love. >> tyson paid such a huge number for hill shire. >> but it does seem to be working. i have this idea because this's a company called live you know live nation. >> yeah. >> live nation is buying up all over the country, live nation is buying up all of these little, what do you call it the festivals, the lollapalooza. >> sure. >> i think live nation should make a bid for the buffet weekend because then you would really have -- these are things you sell tickets for and sell merchandise to. it's truly one of the great ideas. >> 40,000 people attended that meeting. >> this is a real event that needs to be run by ticketmaster. >> always making deals on this show jim. >> always taking deals. >> we're back above dough 18 k, nasdaq 5 k. morning, bob >> you're a philadelphiian i think live nation wants to turn it into a fillmore. they're active with buying venues around the united states. that's been going on for a little while pop here. here in the united states nice start to the day. health care is leading. energy is up despite the fact that oil is down today. a lot of energy in the scenario. financials also leading as well. overseas japan and london are closed for the holidays. but look at china, we had weaker than expected manufacturering data. it was the biggest drop in a year. but look shanghai and shen zen just keeps moving up. over in germany, europe and the rest of europe decent manufacturing numbers. here in the united states earnings season is quietly winding down. we have 75% of the s&p 500 reporting. cisco did come out this morning. the earnings were a little light. revenues light. they're in a big fight with the fdc over that u.s. foods merger. there's has erg on that on may 5th. i was instruct by the fact that they reported food inoperations 3.7% attributing this to higher meat and poultry costs. that was a bigger number than anyone expected. have to keep an eye our food inflation. i think 75% now reporting in the s&p 500 -- sorry, 72% reporting. earnings down 0.4%. look how far we come back. now remember we're going to get the retailers in the next couple of weeks. i think they'll drive the numbers into positive area. the earnings will end up flat or slightly to the upside. the real store vi the disaster the strong dollar recreated for revenues. look at these numbers. that's maybe two points off of the norm. only 46% of reporting revenues above estimates. that's terrible. 20 points awhere i from where it normally is. we have good graphic representation of that right now. this was a big thing over the weekend. why do commodities keep going up crude is up 12%, copper up 8% alum yum up 7%. how come the bond yields keep rising? we had a great quarter. but now we're 2.10. so we're up 14 or 15 bases points in term of the ten-year yield since the quarter. i don't have a good answer for this. the markets seem to believe that economic weakness isn't going to last for the rest to have year. that seems to be the message of the market in the cod tymmodities and bonds market. a lot of people say the central banks are going to continue their stimulus plans regardless of what happens. guys back to you. >> very nice bob. s&p, best gains. rick is in chicago. good morning, rick? >> good morning. i like that question why are the commodities bouncing now? governments can't print soy beansance oil. supply and demand factors do what they're supposed to do. look where oil is. look where people thought it would be two months ago. case in point. let's look at a 24-hour charted ten-year note yield. i find its if nating the high yield close to 14. we settled last year at 217. we've been talking about this a lot. fundamentals matter. but in this market maybe you're better off watching where traders' positions are and how off side they may be. speaking of which, let's look at a year to day bund yields. the differentials are widening because they settled last year at 54 and they're hovering at 4 is. but it's more than that. look how we popped back to the highest yield since february. january 22nd was the area where qe was announced. u was priced before they bought one bund. there this is important to pay attention to. let's look at the year to date of what's going on with the dollar index and the euro. now the euro is doing significantly better. year to date a dollar yen, you know we avoid this currency because it's been in such a tight range. but it's very close to unchanged. a little over 20 right now. last year a little over 19. if we flip the charts around and look at the dollar index. it's a little better off than last year. but it does correlate with what's going on with the dax. now it's hard to argue with the fact that the dollar index or tin verse of the euro is highly correlated with the movement that we see in the dax. and that may start to wear out over time as the market maybe starts pricing more fundamentals try trying to handicap all of the money that was made leading up to the announcement of the q qae. some out there still believe it's on the table even though they may be hiding under the table. karl, back to you. >> thank you very much. rick santelli. when we come back venture capitalist, fred wilson. you'll want to hear what he says about the future of technology. tomorrow 9 opinion 35 a.m., john chambers. dow is up 90 points s&p up almost 11 to 2158. don't go away. take a deeeeep breath in. . . and . . . exhale. . . aflac! and a gentle wavelike motion... ahhh- ahhhhhh. liberate your spine... ahhh-ahhhhhh......aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just one day. ahh! so he had your back? yep. in just one day, we approve and pay. one day pay, only from aflac. 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[ male announcer ] see how schwab can help light a way forward. so you can make your move wherever you are. and start working on your next big idea. ♪ ♪ mayweather may have topped pacquiao on saturday night, but there was another winner. and the winner is perry scope. instead of faying up to 100 dollars to watch the fight, many viewers tuned in to perry scope to watch live broadcasts. the founder addressed the concern tweeting piracy does not excite us. trust me we respect ip rights haen had many people working hard last night, including myself. >> i didn't know whether they were making money off of this. maybe this is something they can monetize. >> although they shouldn't able to monetize it because they it's not legal to do it. people are in the arena, they're holding thaup phones up. >> mlb says it's not a problem, the nhl said it is a problem. people are going to have to address this in their own ways. >> and the nfl pour suing anyone. >> and hold your phone up to the tv. >> and in the philippines where you've got a lot of people who can't afford to pay $100 or whatever it is over there. >> if twitter can find a way to find more people on board twit wer, this would be again something that would spike the numbers, looking for metrics. >> they've got a copyright piracy issue on their hands. >> a prem sum sub model. >> yeah. i would sue them for everything. you know people pay a huge amount of money for those rights. suddenly to have the pirates of the, let's say i like pirates of the caribbean than i like this. >> she announced a perry scope later on today. you haven't perry scoped much, have you? >> no. i guess i have to get on the case. you know what? if it makes twitter more money, i'm there. right? >> yeah. >> there. >> you could put a periscope up. >> you'll be talking to someone and they'll pull it out. suddenly the conversation is being blasted out to many people. that i find awkward. >> i agree with you. >> that's an awkward use. >> and you speak from experience, i think. >> i do. >> we will get trading with jim in a moment. the dow up 82. don't go too far. ♪ ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade we looked for the best price and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor. first isis was holding, then it's moving. this is a trom be sus deal. this is with buyer. it's very big because this is a way to be able to deal with blood thin but not bleed out. very important drug and very big milestone. biotech has been controversial. let's see what he has to say. this is tesla week. and tesla has become a bit of a battleground. people love it. this morning baer downgrades solarcity. these are so controversial. a lot of people saying the tesla quarter will be weak. i remain saying this is total cult. you either buy in or you don't. and a lot of people don't buy in. >> yeah. what's on mad tonight other than isis? >> ali partovi. this is the opposite of what warren buffet says. he criticizes warren buffet's idea of buying the old brands. tomorrow is seeink codimeo day. >> that's ieng to be an interesting g block. >> yes, it is. we do not drink onset. >> that doesn't mean you can't drink during commercial breaks. >> anything is possible on "mad money." >> we'll see you tonight. "mad money" 6:00 p.m. eastern. >> when we come back fred wilson has been successful in doing that. we have a live interview coming. and a lot of the reaction about the initial turn around plan for mcdonald. we'll back in a moment. after all, healthier doesn't 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... we're here to make healthier happen. optum. healthier is here. man: you run a business. could be any kind of business. and every day you've got important decisions to make, like hiring. where are you gonna find those essential people you need? with ziprecruiter, it's simple. we post your job to over 100 job boards with just a single click, so you can reach millions of qualified candidates. then we'll give you the tools to help you manage, screen and rank your applicants all so you can find the right one. try zip recruiter for free today. excellent looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere. good monday morning. welcome back to "squawk on the street." best two day gain for the s&p since if beginning of february as we're back move 2120 back above 18 k on the dow and 5,000 on the nasdaq. oil continuing to flirt around with 60. i also want to check on cisco. john chambers will step down as ceo at the end of july. chambers will join us live tomorrow morning at 9:35 eastern time. you do not want to miss that. >> let's get to the road map for this hour. the the. mcdonald's unveiling its turn around plan today. what should you do now with the stock that it's down again. and a rare television interview with fred wilson op union square ventures. he he'll join us live to weigh in on cisco, drones and the state of silicon valley. let's get to santelli in chicago. rick? >> factory orders for the month of march act as expected. 2.1. we're looking for 10%. but the extra tenth we drop that by a fak to have of three times because we dropped last month. when you factor revisions, it's still sequentially a nice improvement. and if you look at x transportation, kind of core factory orders, unwas unchanged. about 15 minutes ago we saw a solid new york ism. that's an april number. don't get too excited. it was 63 in february over 70 in december but it's still better than we were working for. carl and the gang back to you. warren buffet speaking out this morning on "squawk box" weighing in on stocks and the fed. becky quick is loif live in omaha with some of those highlights? >> reporter: good morning. one of the questions that everyone always wants warren buffet to answer is what he thinks about stock prices right now. and probably more importantly where he thinks the stock prices are headed. truth is that's complicated. actually when you listen to him, he says there are a lot of factors, and honestly it depends. >> the market against normal interest rates is on the high side of valuation, not dangerously high but on the high side of valuation. on the other hand, if these interest rates were to continue for ten years, stocks would be extremely cheep now. stocks are cheaper than bonds, very definitely. and what we've seen low interest rates here for six years or so rates that we really wouldn't have thought boss particularly in europe where they've got negative. and that's continued for a long time and we saw them continue for decades in japan. so we own stocks we're happy owning stocks. we look at stocks as parts of businesses. >> you know, the good news is that we are living in interesting times when it comes to the financial world. bad news is that the conundrum of our time probably is what's happening with interest rates right now. the negative interest rates can lead to all kinds of problems. carl, i know that you and jim and david were all talking about this morning. but it's an incredibly complicated problem. there are all kinds of things that lead one to the next. he said that it's like physics. you can't change one thing in the economic world without it having ripple effects through all kind of other issues. also talked about how these rates have stayed far lower, far longer than he had rveever expected and that in turn could lead to some interesting problems. >> becky, i'm sitting with a lot of money in euros that vb to be in euros. i'm getting a minus rate on that. that gets your attention. if you were sitting with some money, you know in your billfold and every day a little bit of it got clipped away you start wondering, why is this in my billfold. >> and that itself that question is what he points out leads to investors starting to get to all kinds of other riskier behavior. not only investors but companies too. trying to figure out how they can get some return some sort of a yield when that's the offer that they're faced with. now that's the question and a concern that warren buffet has. it's not only warren buffet we heard that from. carley munger and bill gates pointed out that that is one of their huge concerns too. >> yeah, becky, i was just thinking bewilders about negative rates the lack of inflation, staying stocks are pricey if rates normalize. would you argue, having covered him like you have that he is more pessimistic than he was a year ago, two years ago? >> i don't know if it would say pessimistic. but i would certainly say concerned. look, the point that all three of those gentlemen were making these are conversations they have all of the time together. his point was, look there's a lot that can happen here. we haven't seen the end of the movie. we haven't seen how this will play out. and we're not sure what's going to happen and that makes them nervous. this is not what we've seen in the past. there is some new chapter written and we don't know what that is. >> an evanful weekend. appreciate you sticking around after a busy morning. the dow is up triple digits. should investors be worried of the valuations. let's bring in michael fer roe any and david joins us. guys, good morning to you. let me kick off with you michael. let's pick up the scenario. if interest rates normalize, then stocks are expensive. if interest rates stay at this level for ten years or around these levels stocks are seerp cheap. what happens to interest rates? which of those two scenarios is more likely? >> i'm going to take the middle scenario. interest rates are going up. we have the fed hiking rates in september of this year. long term interest rates are not going to go back to the levels that we saw in the 2000s. >> what sort of levels are we going to top out at? >> 3.5. >> that would be aggressive given what we're seeing at the moment. >> not instantaneously. it's going to take a couple of years for the fed to normalize interest rates. >> david, what about what buffet said in the valuation of stocks here, particular by if we take on what david is saying about where the stock wills go. >> i think warren buffet is right and you're right to focus on where the interest rates are headed. the idea that they go back to that level over the next 50 years seem pretty unlikely to me given demographics given financial oppression in the financial industry and given the whole savings story we saw develop 2000 onward. i think there's a reason to believe that long term interest rates are probably going to be below and and that should be beneficial -- >> that's not what's being said here. we're talking about interest rates rising to 3.5%. it's more or less a normalization. >> i don't think that's a normalization. >> do you not? >> i think that's significantly lower than we've been at in the last 50 years. and people when they look at stocks look at price earnings ratios over the last 50 years. you have to look at interest rates over the last 50 years. and you're making a big mistake if you think 3.5 is normal. it's still really low. >> michael where do we do? the employment reports hangs over us on friday. but in the meantime the data bounced back really well at the end of last week the lowest jobs claims manufacturing is stabilizing, the yields have moved higher. how quickly could we get a selloff in treasuries or do we not in. >> if we get a good number on friday, you could have a selloff on friday. >> how much of a selloff? if you suddenly say, my god, they might mo inve in july is that a stampede? >> it would be drat mattock in the impact. in terms of friday focus on the unemployment rate. right now we're at 5.5%. the fed says tomorrow is 5.1. we mo down a tic or two, that's going to cement expectations that they're going to hike this year. some are trying to push the timing back to 2016. anything is possible. but if the unemployment rate and the labor rate keeps doing what it's doing, we're forget about the two-tenths. >> you're looking for a good number on friday. >> yeah. >> last month was very disappointing, 126,000. what will you see for april? >> we have 260. the consensus is at 225. we think we do get a bounce back from the march number. >> do you share the optimism with the labor market? do you think we can chalk it up? >> the labor market data has been great but it hasn't translated to the sprending. the past four months the savings rates went up. but i mean we're seeing people save more. part of the problem for the economics profession is understanding maybe why people are engaging in a little more precautionary saving than they used to do. the fact is they are worried about the next downturn. i think a lot of the economic models that people use at the fed and every firm are really not calibrated correctly for what this consumer is about to do. so you have this really strong employment data. but the translation into spending which is you know what you need to see for businesses to go out and invest more is simply not there. we just don't know when that's going to kick in. if it takes longer to kick in, the fed will be easier for longer. >> david you thank you for some great analysis. we do have some news on the royal baby this morning. a spokesperson for kensington palace confirming that the royal baby's name will be charlotte elizabeth diana. a full release is expected shortly. 8 points 3 ounces >> i'm taking the name of the grandmother and mother. >> wasn't charlotte the top bet? >> great grandmother. >> i think charlotte was one of the tops. so people probably made some money there. >> here's a tweet right now. >> boxing is much more interesting on saturday night. but let's move on. when we come back a live exclusive interview with one of the biggest names in tech fred wilson op union kwar ventures. he was an early investor in twitter, in tumblr in etcy and tech line. he'll join us when "squawk on the street" comes right back. stops. so open an account with schwab. and when a market move affects, say a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move wherever you are. and start working on your next big idea. ♪ ♪ my name is jose lopez. i'm a troubleman in san francisco. i've been with the company for 29 years. a troubleman restores and troubleshoots electrical issues, getting customers' power back on. we're 24/7, 365 days a year. i love my job. going up in the bucket and seeing all of san francisco, it's an exhilarating feeling. i was born and raised in san francisco. this is where i live and there's a sense of pride in providing great power to our customers. when i go out there and get their power back on, there's a great sense of satisfaction. together, we're building a better california. first there was the partnership between starbucks and arizona state yurt. now cries here and strayier university is announcing a partnership. are these kinds of partnerships the future of workforce training and retention? joining us this morning, carl mcdonald, the ceo of strayer university. >> thanks for having me. >> walk me through the details and tell me why this is all the rage. >> chrysler has recognized that a highly educated workforce is the key to sustaining their performance and they're making a major commitment to offer a free college education to more than 120,000 u.s. dealer employees. >> fre college education. the question is what's the catch? what do they have to pay for? what requirement dos they have to meet? >> they have to have been employed for 30 days. that's about it. it's open to all full-time and part-time employees. and the employee will have a chance to earn a bachelor's ore masters degree with zero out of pocket expenses. no reimbursement at all. >> do they have an obligation to stay at clie her? >> they do not. >> should ma anyonials expect for their employers to pay for their education? >> it's a win-win. if i'm thinking about where i should go to work and one employer is offering me a free college education and the other one isn't, that's a powerful incentive for me to take my talent to that company. it's win-win. >> the whole industry has a problem of retention. i think they lose half of the people on the court every year. that's what they're fighting against. i saw chrysler was expecting the cost of the degree to be 40,000 or 50,000 dollars and they've got a big cost from you on that. within that the dealerships are going to have to pay a fee and then they can load as many people into that as they want. which puts you as a business in an interesting position. what does this mean for you? >> we have a tremendous scale in infrastructure that we're able to leverage. several years ago we made some substantial investments and we could handle many more thousands of students than we serve today. this is a good use of the infrastructure to help a company like chrysler. >> what kind of enrollment will you expect from this? >> we're hoping to get thousands of students. they have 120,000 eligibles employees. >> is it a boom for you from a revenue standpoint? what do you do with that money? do you invest further? >> we're not disclosing the financial terms of the agreement. 's confidential and proprietary to chrysler. >> if you go to most developed countries around the world. they say education is the salvation to many of the problems they face. what does it mean to the point that this is coming out from employers and without public policy or are there huge tax breaks behind this? >> there's a deep disconnect between higher education and private sector employers in the united states. i think more companies need to take a leadership role. >> but as a country should it be the ceos to do this? >> they shouldn't the only but they should have a seat at the table. >> on a broad level. feels like the market correcting right? the market frustrated with acceptance rates division costs. >> companies are spending hundreds of billions of dollars a year to prepare their workforce for the needs to have 2 social security century and those are dollars that could be spent on other things if higher education was doing a better job preparing people for the workforce. >> i have a quick question for-profit education. what do you make of what happened there? >> well some of the reputation in this industry you have to say it's deserved on the part of these organizations and they probably have had some practices that maybe weren't in the best interest of students. but that's not us. it's all we do. we're very proud of our outcomes. >> are you worry about getting lumped into that group by people who aren't about to parse the sector any further in. >> there are always people that will look at you with some level of suspicions. but again we're broud of the outcomes that we produce for our students. >> looking forward to seeing what kind of results you get. thanks for coming in. up next a live exclusive interview with one of the biggest names in tech. fred wilson joins us live from the aol tech crunch conference happening in new york when "squawk on the street" comes right back. ♪ ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step. news from cisco this morning as the tech giant appoints chuck robbins to succeed john chambers with marking the end of a long era, one of the longest runs of a ceo of a publicly traded company. our own john fort joins us now from the aol tech crunch conference from new york. with grade wilson. john, just one of the topics of kwfrgs there on cisco. >> absolutely. fred wilson thanks so much for joining us. a rare broadcast interview with you. i want to start off talking about cisco. it's been 20 years for chambers. chuck robbins taking over. cisco had been a big acquirer. what's your outlook on how significant this is for the tech ecosystem or how long will we have to wait to see ou significant it is. >> it's not clear that chambers is leaving the building. he's going to be executive chair. that signals that we're going to continue to have involvement with the company. new leadership is always good for companies. a new leadership for microsoft looks like it's shaking things up very good for microsoft. it's potentially positive for cisco as well. >> want to talk about live video. you've been an investor with you now for more than a year and a half. had a big week wednesday with the pacquiao-mayweather fight. what are the challenges? we saw the cap pi right issues again rear their heads. >> modernwe like you now. they have a model where the fan, the consumers of the live video pay the various broad casters that they like the most. broadcasters can come on the you now platform and make money, whereas an periscope it's a free for all environment. ielt not saying they can'ted a modernization. but we're excited about you now. >> how important it is not to just rely on advertise in this environment? last week we saw twitter, linked in come out, the idea that the marketplace in ads in some cases is driving prices down making it more important for the scatterup companies to have the underlying data that justifies the premium prices. is that wiping often some of the potential to make money on advertising? >> i think it's always good if you have multiple revenue models. if you have an e commerce model plus an ad model. but for ad models with companies like linked in they're going to do bet ner a problematic world, not worse, i think. >> simon has a question. >> hey, mr. wilson, good morning. you recently pushed back against new york state's proposed legislation or regulation on crip to currencies bitcoin and the like and suggested that with this type of regulation that that might move abroad. why would sbhb on main street care if they move somewhere else? >> i'm not sure that people on main street are going to care. but people who run the state and federal governments is going to care if an important new industrial decides to high-tail it out of the united states. my remarks were aimed at them not, you know the average person living on you know main street. >> how do you deal with the nervousness that many people see in the krit to currencies and the desire to protect the population again from something that might go seriously wrong in. >> i actually think that the amount of information that's available over the public ledger means that bitcoin is going to be easier to manage things like compliance and fraud and safety not less. you're dealing with a public ledger as opposed to a bunch of private systems. i think it's better for all of the issues that people are concerned about, not worse. >> i want to ask you about something that you got a lot of headlines for when you made some predictions last year especially on wearables. you said that the apple watch will not be the home run product, that the ipod the iphone and the ipad have been. there's been a lot of talk about what you said. can you clay fie your position and set the record straight on the wearables? >> well my negativity about the watch is really more about the watch per se. i think that the idea that people are going to wear devices that are not phones is absolutely going to happen. but not everybody is going to want to wear a watch in the same way that everybody needs to carry a phone. i don't think you're going to see 100% of the population wearing a watch the way that you see 100% of the population trending to carrying a phone. >> the other thing i wanted to ask you is on this idea of the election campaign cycle starting to happen here you said that it's going to be an open question as to where silicon valley lends its support. given the announcement today of carly fiorina. do you think silicon valley will support her? what do you think they're going to gravitate toward? >> i think it's a little early to make any predictions. it does seem that the democrat field has been cleared and tles ooh only one candidate there. that's an easier field to predict. i think tech policy is really important and i think that silicon valley cares about a bunch of issues. and i think that candidates who want to appeal to sill covalley are going to need to do their home work and make sure they're good on those issues. >> fred you're an investor in etsy, new york tech finally got its multi-billion dollar exit. i think the price was around 16 bucks, went up as high as 30 and now . given what we're see in the public markets in general, are you feeling good about, you know, mid year and the rest of the year or is it more cautious? >> i think the public markets are doing a good job of valuing companies. i think the private companies are not doing such a good job of valuing companies. and the companies can get much better valuations in the private markets than they can in the public markets. and companies will come out and go public and the stock will trade below where they did their last round of financing in the private market. the private markets need to be ratcheted back. >> what's going to cause that to happen? >> i don't know. there's so much money in the private markets chases the billdeal. the prices in the public markets are quite rational. >> i want to talk to you about one-day delivery. you were in cosmo.com. that flamed out. but now big players are getting into this. amazon is in, uber is gearing up to be more of a player there. do you think there's an opportunity for many companies to get involved or are the bigger well-funded companies that are already in the commerce and transportation space going to crowd everybody else out? >> no. i actually think there's a big change coming and the change is coming because companies like uber have shown that you don't necessarily need to build a logistic system. you don't need to build a u.p.s. or a fedex. all you need to do is put together a network of drivers that are essentially managed like a marketplace. and then you can offer same day delivery. i think that's a big change and a positive change for the economics of the business. >> david favors got a question back at the exchange. >> i would love to follow up on your exchange about private market values fred. you do seem to be implying -- let me ask the question. do you think that there is a bubble in the private market right now the way some argue there is in venture capital? >> well you know look. i think what's going to happen is people are going to pay prices in the private markets that they're not going to make much of a return in the public markets, at least right away. that was true with facebook too when it went public. there were people that bought stock in higher prices in the private. at this point, everybody has made lots of money on facebook. but the idea that you can buy stock privately in a company and it goes public six or nine months later and you're going to make 3 or 5 x. that's not going to be the case. for many people. >> that's a result of the fact that the companies say private for so much longer because of the various levers that have been created that allow them to do so. is that in fact the case and can we expect to see it or should these companies be going public earlier in their life cycle? >> i think companies should be going public earlier in their hief psych sol the broader public can be shareholders. 's not good for society for all of the gains in these, you know game-changing companies to be held between a very very small group of shareholders. and this is actually i think a function of bad public policy. starbucks and all of that kind of stuff that make it much more difficult and much more dangerous as an executive or a director of a company to go public means that these things stay private longer and all of the gains are captured among a small cohort of people. it's not a good public policy. we got to change it. >> i want to ask you about csnyc, the initiative for computer signs in new york public school. 1.1 million students in new york schools want to have access to computer science education, you even helped start a school along those lines. what do you think you can accomplish with this? how broad based is the learning going to be? you need a certain knowledge background to take advantage of computer science education. some would argue the basic stem is an issue to begin with. >> i don't believe that's true. anybody can learn to code. i do not believe you need to know calculous or differential equations or advanced math mattockmat mathematics to be a good coder. people with learn engineering. and the idea that you need to be a rocket scientist to be a software engineer is just wrong. many countries like india acknowledged that. they acknowledged that 30 years ago and they educate their population and that's why our software engineering jobs are moved to india. we've got to get them back by teaching our kids to do this work. the idea that we can't teach our kids because they're not smart enough is complete nonsense. >> it should be like humanities or shop class. >> it should be part of the common core computer science and software engineering. we're going to make that happen at least here in new york city. but there are people working on this problem across the country, colleagues of mine and friends of mine and i think we're going to change. we have to change. >> thanks for joining us on sidewalk on the street. guys back to you. >> thank you very much. ahead on the program, mcdonald's lifting the curb train on its big turn around program as new ceo steve easter brooke tries to prove that the companies can bounce back. the stocks haven't responded to the news but really would you expect it to? more on that after this. [ male announcer ] whether it takes 200,000 parts ♪ ♪ 800,000 hours of supercomputing time 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ ♪ good morning, everyone. here is your cnbc update this hour. fbi agents are reportedly searching a phoenix apartment following a deadly shooting outside a dallas venue. the sunday shooting left two gunmen dead and a security officer wounded. i's not clear whether the shooting was connected to the contest which awards $10,000 to the best cartoon depicts the profit muhammad. >> hewlett packard ceo carly fiorina is running for president. we sh was forced to resign from hp back in 2005. a las vegas legend is closing its door. the ka see on on the strip will close at noon today. it was sold in february. liberace played at the hotel's opening night, elvis presley, frank sinatra also graced the stage. and she has a name the newest royal baby is charlotte elizabeth diana and will be known as her royal highness princess charlotte of cambridge. that's your cnbc news update for this hour. back to you guys. mcdojds just unveiled its new turn around strategy in an effort to spur growth. ceo steve easter brooke stated that the business will structure into four segments. hereby's what here's what he had to say. >> this will be an operational growth led turn around. growth will be led from market enabled and accelerated with sharper focus on the customer. sharper focus on what they want great tasting high quality food with better service each and every time. >> joining us to discuss by phone, sara senatroe. we're making fun of the video, very old school looking. was there anything in there to get you excited about a turn around? >> well i think the reason the stock is having a reaction is the same that i had, which is financial targets, returning cash guth the gna, higher franchise, these are all things that i think were generally expected. none of them were really outside of the realm of possibility or substantially more than what some people were looking for. you know i think the reorganization is new from an operational standpoint. but there weren't a whole lot of details on what exactly these turn around strategies would look like. so it was hard to have a very very strong reaction. >> one thing that stood out to us a little earlier was the fact that they're now going to be delivering in new york city via post mates. is that a big deal? we sea chipotle doing something similar. >> i think whenever you expand the channel, you know, through which you can sell your products, it tends to be a positive. whether this is going to be you know, very meaning ufl for mcdonald's i think is a different question. we know that there's demand for chipotle. they have a big catering push. so we know there's demand for delivery and we know that they have a lot of large orders. so we kind of already know that there's a market for that. stam with starbucks. we absolutely know that people get orders of starbucks delivered to their offices. we i think for mcdonald's, there's potential that it's maybe somewhat a smaller, you know target market. >> we should bear in mind that a huge amount of the trade is in drive-ins. just on the subject of the franchise franchise's, what are the relationships like with franchise cease and potential franchise sees at the moment. if you're an entrepreneur with dollars to spend, mcdonald is your your immediate first interest to park your interest and cash. >> i actually think mcdonald's, for all of the challenges that they've had, it's still a very good business. the average owner operator of mcdonald's generates $300,000 annually. that's three times the amount of money that a wendy's owner operator and it's even more than that versus a burger king. so certainly less this year than it was one were two or three years ago. but it's still a good business. so i think -- i don't think they will have trouble finding people who want to operate mcdonald's. >> sara they've already made some changes to the menu streamlining the number of items. are we at a point where the stock moves only when they start enveelg big changes to food i mean, new protein things like innovations the way young and others have done? is that where we are? >> they've laid out the financial engineering that they're planning on doing. and steve was very clear that this has to be a growth driven turn around. because that's the case then yes, the stock is going to start to move if and when we see real changes in the fundamentals. whether that's new proteins, new marketing or some other operational changes, from here i think that's what mcdonald's management team would point to itself, is the real catalyst. i think investors will agree. >> we will see. thanks for jumping on the phone with us. interesting to note that young brands is trading at a record high. when we come back we'll get a read on the state of tech and small business live from miami with the administrator of the small business administration. be sure to tune in tomorrow john chambers cisco's outgoing ceo. we we'll talk about what's ahead for that company. "squawk on the street" will be right back. well, a mortgage shouldn't be a problem your credit is in pretty good shape. >>pretty good? i know i have a 798 fico score thanks to the tools and help on experian.com. kaboom... well, i just have a few other questions. >>chuck, the only other question you need to ask is, "what else can you do for me?" i'll just take a water... get your credit swagger on. become a member of experian credit tracker and find out your fico score powered by experian. fico scores are used in 90% of credit decisions. ameriprise asked people a simple question: can you keep your lifestyle in retirement? i don't want to think about the alternative. i don't even know how to answer that. i mean, no one knows how long their money is going to last. i try not to worry but you worry. what happens when your paychecks stop? because everyone has retirement questions. ameriprise created the exclusive confident retirement approach. to get the real answers you need. start building your confident retirement today. if you're nervous about stocks, where do you hide? in the next correction the defensive names could be the hardest hit. we tell you why and where to find the safety now on trading nation.cnbc.com. and check your live segment. more "squawk on the street" right after this. so open an account with schwab. and when a market move affects, say a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move wherever you are. and start working on your next big idea. ♪ ♪ there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too. national small business week kicks off this morning. live on the main stage of the emerge america's conference in miami. nbc universal is the exclusive media partner at emerge. a startup tech event excepting 10,000 business owners, investors and industry leaders from across the americas in only its second year. our chief correspondent fresh from moderating the opening panel joins us live in miami with a special guest. >> reporter: it's a great conference, carl. next year you join us. and i do have a special guest with me maria contrary ra sweet. the sml business administrator for the u.s. we featured back when he was the found are of pro-america bank. a small business owner. you have a great story because -- please let me tell a little bit of your story. you're an immigrant to the united states from mexico with you came when you were five didn't speak english at first. now you founded a bank and you're the head of the sba. we're proud to have you here. the ability to get capital for small businesses in the united states, you help facilitate that. can you give us a window in the sense that there have been so many complaints in the last couple of years of the inability to get capital. can you give us a window into whether we're making any process on that front? >> some of the large financial institutions have not been doing the small business lending. we're having to be more aggressive in recruiting the creditor lenders to make sure they're available to we can open the credit box. second what people are saying is that the sba loans are expensive. i've zeroed out fees. the sba has zeroed out fees on loans under $150,000 which allowed us to push more capital out the door. and third what people say are the sba forms are a little complicated. so we've launched new initiatives. so i hope that people will come back to sba.gov and give us another try. >> we've heard people say it's not that we can't give out capital, it's not that there's a demand because people are frightened. is that changing at this point? >> it's dramatically changed. they are generating two out of three net new jobs. it's movement. it's a new awakening from young girls, everybody is thinking about started their own business today. >> do you have immigrants like you coming to you for loans and applications? >> the exciting thing is immigrants today, if you rook at the numbers, what it shows is 40% of the fortune 500 are being run, started by immigrants or children of immigrants. immigrants are twice as likely to start a new business. immigrants today employ one of every 10 employees. the numbers are startling. i've been traveling around the country and i see that mayors are understanding that if you have a flat lined economy like greece or italy, all of those lined, right? >> that what they understand, your economy is going to decline, they know the value of embracing immigrants, and they're craving communities to be able to culture better integrate them better and having great success. >> thanks so much for joining us. >> good to see you as always we're so proud of you. >> oh stop stop. carl ebay google yahoo, sun, microsystems, all founded by immigrants. >> make sure you get there today, michelle thanks so much. we will have continuing exclusive live coverage from emerge throughout the day. coming up on power lunch, glenn, the ceo of the online real estate red fin, and then on closing bell international star, armando christian perez, mr. 305. >> we're going to get to meet pitbull. >> i hope so. >> huge fan. >> catch the entire fast money crew live in miami, that's today at 5:00. still to go on this show one of the stars of the films. highly -- stop that. >> and in the new star wars film will join us live at post line. that's coming up later on. we are back after a quick break. ♪ ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step. welcome back to squawk on the street rick santelli here with a really high-powered guest. yes, steve levine he's the author of of this book this is the new bible when anybody wants to talk about batteries, been out far while. i really enjoyed it. steve, thank you for taking the time to be my first guest through the week. >> nice to see you again, rick. >> all right. let's put this in perspective. many in my neighborhood have issues with power outages, natural gas generators are all the rage in my neighborhood. people that have sold houses say buyers really like it it they get all their money back on them they're efficient, could run a lot of things including dish washers and refrigerators. contrast that with the power wall that tesla is now talking about is one of the main products in the giga factory. >> we had elon musk come in with his showmanship. the siz that will he brings to his products that's -- the sizzle that he brings to his products, that's the big bang when you're trying to make a big splash in the market. it's the apple factor. it's all going to come down to execution, however, which is what you're raising, the cost of his power wall needs to come down. needs to be one-third of the price, but, but you can see in places like hawaii like australia, the same first movers who came into the market for his cars, they are going to be the ones who will snap up the power wall, and then we'll see over the coming two, three years whether he is able to bring down the costs. >> i got you. it's funny you mention australia, steve, because over the weekend, reading as many articles as i could, it seems as though australia being kind to the earth, i get that battery technology that seems to be more competitive in pricing, but let's move to a different topic. okay. the physics of batteries in general. you're an expert on. it's not ready for prime time and all your writing is optimistic as you are, i guess, would you bet the ranch, your mom's last dollar that in the next five to ten years that for sure we're going to see some major breakthrough in the physics, science, in the energy density of batteries? >> rick i wouldn't call myself optimistic i call myself realistic. i think that what i've been saying, and what i see, is that there does need to be a big breakthrough in the physics, or there needs to be a big breakthrough on the manufacturing side. the costs need to come down for stationary batteries to one-third the current prices and for cars one quarter the price. no one knows are we going to get there any time soon on the physics, all we know are that the stakes are very high. the market is enormous if they get there, that's why everyone's trying, i think the players to watch are not only tesla, but the south korean and the japanese makers. the lg camps -- >> steve, we're out of time here, but we will watch those areas. and we definitely will bring you back as this technology evolves and we get more information. thanks steve levine, sarah, back to you. >> love the change of pace rick taking up tech. we will be slava ruben will be here, "squawk alley" up next. thank you for being a sailor, and my daddy. thank you mom, for protecting my future. thank you for being my hero and my dad. military families are thankful for many things. the legacy of usaa auto insurance could be one of them. our world-class service earned usaa the top spot in a study of the most recommended large companies in america. if you're current or former military or their family, see if you're eligible to get an auto insurance quote. in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics to understand pressures in and out of the classroom- some expect to cut dropout rates by twenty-five percent. ibm analytics is working to make education smarter every day. good monday morning at cisco headquarters in san jose california 11:00 a.m. here on wall street. "squawk alley' live.

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