Europe is pretty weak. Ten year yield 223, now the lowest since mid november and gold came close to 1290. Our road map begins with a eye on the financials. Jpmorgan, wells and citi all reporting better earnings than expected. Plus, the new centrist president and about face from President Trump on several key Economic Policy positions. And apples big health bet. Sources tell cnbc that the company has a secret Group Developing a new glucose monitor to treat diabetes. But first up, earnings season is here with a bang. Jpmorgan and wells fargo and citi group out this morning. Citi earnings and revenue came in well above the estimates. Mortgages though remain a trouble spot. Pretty good in trading. Equity yeah. Very quickly, jpmorgan is pretty much what im going to say pretty much perfect. But the stock was up very big. People are looking at the futures versus the stocks and just hit them down. That is three basis points better. I love the delinquencies here. Theyre, very very good and commercial real estate is really extraordinary. They had more deposits and more customers so you can look at the numbers and say how much did they really increase versus the number of people that they added. But holy cow, do they have a lot of assets under management. Now citi, i thought it was stellar. Nobody cares. The problem here which is city, 1. 35 but the actual number is 1. 38. The mortgages theyre not a player. Like that mexico is up 4. 4. They can buy back 9 and still do well because the tangible book value is 65 bucks. I have to tell you wells fargo i know its hated. The only number i care, Customer Loyalty has gotten better versus the previous month. You know, the Noninterest Income is very good. But look, what can i say . Wells is hated so this was you know, fine. Wow. Some mornings its just really nice to have you here i got up at 3 15. To spend so much time on those things. The jpmorgan at 11 i know. Its a fortuitous bounce. I know its in here about a balance sheet. There was a time when none of us thought that we would regularly see double digit return on equity again from the big banks. Thats clearly no longer the case. As you say, return of capital, very significant. Citi. But you know as for the stocks themselves 223, on the ten year. But you youll be fighting from. 223 does not matter that much for citi. Maybe not for citi, but for the group it does. I think it i think what really matters is that if its 223 and the fed doesnt raise again, i think people are thinking that the economy is too weak for the raise, people say wait a second. Not much upside here. I would say citi is selling at nine times earnings. They can buy back if they can buy back 9 of the company, remember theyre allowed to. And the fed has no problem with that. Would you have expected a bigger bump after how they have already been repriced . The financials going negative for the year yesterday. No, because the market hates it. You put up good charts today about on twitter about semiconductors and banks and how they have become pariahs. Semis overnight for a lot of different reasons. Having to do with apple. Goldman downgrades. Yeah. But the banks have gotten out of favor and i think a lot of reasons is we do not have great strength in the economy. Even though you have to admit jpmorgan loans were very strong. They were. Im reading it back and forth, i wanted to get through with glenn shore and jamie dimon in the call. I lost it on the prompter, but dimon talked about the economy being healthy overall. You mentioned wells, consumer satisfaction, new customer checking accounts in february down 43 . Well, i mean, you know, the fact is that they had some new ones. I mean, i hate to be that cynical. But they did have some new ones. And i look at the core loan growth. Actually, i see i think things are a little better than i thought there because i think that in they have such great Noninterest Income. Then its margin it wasnt that good. Checking up on a Point Mortgage its down 49 . That was very bad. Then you have a ten year problem. But in the end, wells fargo has come down a great deal. Its a true pariah. But my Charitable Trust owns wells and citi. Citi is cheap and wells is nomansla nomansland. Until people forget. Right. Its the chipotle of banks. The same kind of time line as chipotle . 18 months. 18 months regardless of whether youre poisoning your customers or committing fraud, about the same. I think theyre the same, unfortunately. Can we go over for a second that credit cards very good for citi. But costco doesnt kick in until the second half. Look, these companies are just dirt cheap. But this market doesnt like dirt cheap right now. Look, the market is completely confused because trump everything that trump said was to the journal was very different from what we thought. So were all kind of little confused about what he believes in and the idea that once again were back with china to try to solve north korea. Thats a democratic problem. Were pro nato. We were like antinato. Relevance not a currency manipulator, but its down with mcer inmy, he like yellen is no longer toast. Shes now i guess like, i dont know not toast. Shes fairly shes stroman shes popped out of the toaster. Were confused because the man is a little unexpected, unpredictable. The president did talk to the journal, 70 minute interview. He says quote our dollar is getting too strong and thats partially my part because people have confidence in me but thats hurting that will hurt ultimately. He said he would not label china as a currency manipulator, he respects yellen, shes not toast and he prefers a low interest environment. Jeff immelt applauded the president he as a globalist. I love the fact that the reason we like the border tax, were supposed to like border tax which is a higher dollar. Obviously, you have the Koch Brothers against the border tax and then you have trump against the border tax. Well, trump is against its not clear what hes against or what hes for when it comes to the tax tax at the border because hes talked about a reciprocal tax. He would like the power from conversations that people have had with him about it to be able to tax to use that tariff when necessary. Right. Thats different. That is different. Although you could lump it in sort of with the idea of the reciprocal tax of some kind. I think the largest issue is what we found out yesterday, and what seems to be now the new rallying cry, health care again before tax reform. Look so everybodys calendar is getting lengthened here in terms of when well see the tax reform theres the struggle of the trump trade. And even if question get into if we get into the reform. Reform with the huge changes to the tax code, whether it be the deductibility of the interest, state and local taxes no longer being written off. And of course most importantly perhaps is the revenue raising part of it. Whether it would have a component that taxes incoming goods at the border. The Founding Fathers they put that checks and balances thing in you cant get it done. Theres immelts tweet. And kudlow people lose confidence, process broken. He wanted the white house to tackle taxes first and now the added wrinkle if he would use payments to insurers over democrats to get them to agree on the reformed health care bill. You need a Rocket Scientist to do this stuff. The idea look at the steel stocks yesterday, and the aluminum stocks. If anybody thought this president was not going to call china a currency manipulator, and two, we have a lot of soldiers in south korea, we have to defend, south korea against the north korea. This is the bill clinton rap. This is every democrat president s rap and now were back to the rap. But this guy is a republican. He was nominally a republican. Started out i mean, listen korea sells us millions of cars and what do we sell, five cars . It depends on the issue, far right or central. Like boeing, Jim Mcnearney goes down there. This was always ge and boeings thing, the xm bank. Subsidy for those so the larger if youre running a Large Business and youre making decisions and youre making long term Strategic Decisions or you want to, does this kind of environment where youre getting mixed messages to say the least make you step away a little bit . Are we going to hear that dreaded word uncertainty start to surface again . Yeah, if youre alcoa, you thought the companies would benefit, nucor, youre thinking this is the traditional globalist president , go back to Procter Gamble we want to sell a lot of prell, right . Back in if sell prell to china mode. Nothing wrong with selling prell in china. No, but were supposed er otide. Or tide. Were supposed to be tough on china. We scratch their back its not bad thing. Global trade, all the tariff worries. Long before trump i thought i felt that the chinese were unfair traders and i dont want to see him back slide. Long before trump i have always felt that theres no fairness between south korea you have been a big critic of nafta. Nafta . And that also hes wavering on nafta. 41 when they put in nafta and now its 181. They have the big currency advantage. No pollution controls. They have no health care benefits. And how do we compete . But i guess thats okay too. Well, i thought there were supposed to be parts of nafta that actually addressed some of the things. Just the currencies, when we passed im sorry to be such a fair trader. I just thought that the president there was kind of simpatico to that view. America, what third . Seventh . Wheres america on the list now . Youre more than navarro. I know. Lyndon johnson democrat, exwar, pro labor. All right . I hear you. No globalist thats for sure. Lbj all the way. Except for the war. A lot to get to this morning. You have to hear about the new note out of rbc saying that apple could or should buy disney and how much theyd pay for that. Also ahead, former American Airlines ceo don carty, well talk more about united as we expect to hear from the passengers attorney. You probably know that the dow and s p closed below the 50 Day Moving Average for the First Time Since election day. With e trades powerful trading tools, right at your fingertips, you have access to indepth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. Its like having the power of a trading floor, wherever you are. Its your trade. E trade. Start trading today at etrade. Com you are the most fearsome warriors on the planet. Well, not you roman. You just missed the cut. [ hip hop music playing ] yeah, missed my ass. Why are you always yelling . Rated pg13. Experience it in imax. Interesting new note out of rbc which goes through the possible apple disney tieup. An acquisition can allow apple to gain scale in media content and they assume that apple would pay about a 40 premium to disneys current price yielding a theoretical number of 157, a share they say you could spend 200 billion in cash. Do debt for the rest. Well, i think the crucial line in that research now they have a piece out by apple and on disney, its called cash of the titans by the way. Part one and two. We see a confluence of events that make an acquisition of disney greater than zero. The odds. Wow. Okay. Greater than zero. About one. Yeah. Yeah. Lets go over to london right now and bet on the whole new world. They use a lot of great disney lines. Limitless opportunities. My favorite was Hakuna Matata firing on all cylinders. Theres no doubt theres a strategic rationale for the idea smoke fire. For the idea. I think there are plenty of bankers in fact i know there are plenty of bankers who tried to encourage the idea that disney would benefit from doing this deal. Do you think the bankers excuse me, apple would benefit from from doing the deal and disney would be wise from looking at a sale. We deal with iger, it would give apple this huge heft of course in content beefing up the businesses you talked so often about. But the Service Revenue it is going to happen or that it has any real chance is a far cry from the hopes and the dreams of the bankers who might be dreaming about it or an analyst who might be wanting to write about it because well sit here and talk about it. Why not, thats fun. This was written for squawk on the street. Squawk on the street says it was like asterisk. You remember malone a few months back, i think in november when i sat down with him. Yeah. He initially floated this idea. He said espn would go the distributor, namely a Cable Company and then the rest of disney made sense for apple. Take a listen. Somebody went after disney, my guess is apple would have to finally make a decision. Yeah. Because theyre very close with, you know, disney. Iger is on the board of apple. Correct. If i had to guess, what you will see is a split of disney with espn spun off and probably espn could be owned and protected by a distributor in the u. S. And apple would be more interested they would have a lot more in common in terms of international branding because fundamentally tim cooks a global player. All right. So no stranger are we to this idea. Fun to talk about and isnt it . I have a feeling that would be about it. Would they ever do a large deal at apple . Something bigger than beats theyre like, yeah, sure. But better than this is the worst scale than netflix, youtube. 29 of the company would be services. I can tell you this is a huge amount of fun and i think that we you know what this was done, this was done to stop the ual the story is not over. Part of the argument they used tim cooks words in which he said that the deal size is not an inhibitor. M a. We watch for his comments on large acquisitions because hes asked about it and he does answer. He typically says the same thing, but the words are watched very closely. Right. Because there is a hope somehow that apple will pull the trigger on something enormous. Whether its a netflix or whether i think the scoop about coming in on blood sugars is more relevant. They do see the deal accretive by 15 or 20 out of the box. They can take 20 back in repatriation. They could pay for this like that. By the way, on the glucose sensors, a report which is online, well talk to chrissy farr maybe later this morning. Something that jobs originally envisioned. Yeah. This is the dexcom killer so to speak. Dexcom you had to insert something into the body. This is the one, no nothing in the body. Now, remember the holy grail is really Blood Pressure which they cant seem to get. Too many false positives but this would be very good i admit. Disney by the way, you could have the glucose monitor while youre in the theme park. I mean, the synergy is here. Not just Hakuna Matata. I mean its finding nemo, i dont know. Dory. What else . Jungle cruise. You know, the e rides. Remember the e rides . Ill give you time to come up with a lot more. Come up with a lot more i mean, on the same on both boards there. Star wars . Can you imagine apple streaming star wars and four marvels. Next year, vr Artificial Intelligence machine learning. Keep saying words. Machine learning, ai, something. This is it. You didnt mention keep saying those things. Yeah. Cash is yeah. Its just painful. It was written for us. We took the bait, didnt we . It worked. It worked. The hook they got me on the line. Can you cut the line, i want to go free. Well get cramers mad dash. Count down to the opening bell in a few moments. Look at the futures. Wells looks to open down about 2 . But jpmorgan is going to open up half a percent. Back in a minute. So what else is new . Hows your mother . Umm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. For decades, investors have used a 60 40 stock and bond model, with little in alternatives. Yet alternatives can tap opportunities that traditional assets cant. And even though theyre called alternatives, theyre actually designed to help meet very traditional goals. Thats why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. Translation . Goodbye 60 40, hello 50 30 20. All right. Mad dash for a thursday. Little more than six minutes before the opening bell. We havent talked about amazon yet so were required to do so. Yes. Yes, we are. Thats wild. You killed me on that. I did. Sorry. You did. I think barclays put out a cogent note. When the company does report it will be a mixed bag. They do think that if the guidance in line versus weaker, this is important because the quarter shouldnt matter that much. In other words, like remember, they have a grand vision. And what happened last time is when the quarter wasnt so gr t great, you got you cant even see this anymore but it went down to 804. People said i have to get out of it, we have some downgrades. All theyre doing is when they prep you, its not what youre looking for. Its a longer term secular theme. Theres a drum beat, that the quarter may not beat expectations and i said, so what . Right. You see what happens when it reports, people panic. What you have to do is you have to buy the panic. The panic ensues after the close or a days worth of panic . Usually a days worth of panic because someone someone who didnt watch squawk on the street, then chooses to do the wrong thing. By the way, disney and apple, david, if they got together, they would have no impact on amazon. It wouldnt . No. I just feel we should mention that. Amazon is its own story. Not bound by earnings. It is bound by vision. And bezos vision. What matters is people should not flip out when they dont report the number that the street does because they dont care about the street. They have grander ambitions. Yes, they do. They have and they have been rewarded for them. As buzz light year would say. Right . Read carefully people will say stupid things it will go down. People will say its the end of amazon and then you have to go buy it. All right. Well talk about what else is being bought and sold when we get the opening bell about four minutes from now. I love how usaa gives me the peace of mind and the security just like the marines did. At one point, i did change to a Different Company with car insurance,