Shares are climbing in the premarket after stronger than expected earnings surging on that news. Nasdaq set to open higher after the 39th record close of the year but revenues miss anz dekrien for the 31st executive order. Its a lot to think about. Its very hard to have cyber theft which is really important. He did it lightning speed. These guys are 15. It takes so long to remake an organization in an environment when youre up about amazon and microsoft. These are just, these are competitors the likes of which ibm has never seen before. And to outrun the legacy business its slowing. The growth is slowing more quickly than originally watson dont come here i dont need you. But thats a key part of their strategy. It is Artificial Intelligence is an important component of what ibm services is going to offer. Now another undercurrent is they cant get the ai people that you can get out west. I dont know it is difficult but it can be done ibm has not yet been able to make the transition the new business theyre up against these companies. Its so easy to shift cloud to cloud. This is an amazon story in some ways its another company that has been amazon when it comes to going in a cloud it is amazing that the list of companies can include kroerg and ibm. You could argue that he was amazon when it comes to cattlemans barbecue franks red hot sauce was very interesting. Talking about how much he loves it. How did you transition to that i mentioned amazon and i think that when you talk about the store youre talking about how people in the aisle in the center isle just, they avoid it. Were going to wrap up mccormick and that incredibly high priced i want to save it well talk scripps. Sometimes the gods make our job so easy. Out of pure chance we get two deals that completely explain the landscape of the moment. Im ready for you. You dont need. I want to make sure that i can stay quite then for the rest of the show because you got this. Yesterday people on my staff said he really, he doesnt even like you at all. When people asked what he really liked he said his kids and he asked when they reported. That was too critical. I might have a little bit to add in between your incredibly insightful analysis. I have been working on this since 3 30 in the morning. Great. Ibm take my guests. Do it all. Lets get to Morgan Stanley better than expected Quarterly Results. Trading revenue down one jp morgan down 14 and goldman down 17. Lets revel in what james gorman has been able to do the mojo is clearly back here. They have quadrupled Wealth Management its up from 1 billion a year to 1 billion a quarter. He joined in 2006 and they were doing 300 million pretax in Wealth Management. Do you know they now do that in four weeks this is a model that works. That sort of helps. Its not like its all been organic. Im just saying. The strategy is one youre clearly applauding its being rewarded in the marketplace. I am applauding the fit was good it was only down a little less than goldmans and david, i think that you have to the higher multiple is coming this should not be at 12 times earnings youre going to say theyre going out the door every morning in the elevator. Right they have been talking about this higher multiple for a long time. Recurring revenue from Wealth Management and its deserving of it but they still have a lot of trading. That hasnt happened in awhiechlt maybe theyre deserving of it. Maybe not. Whats interesting this morning is is theyre highly correlated in the way they trade but not today. Whether thats because of Morgan Stanleys results or kbw cutting goldman. To me if they could do this quarter in an environment where commodities was mentioned as the worst since the Company Became public but if they can do this with did they do great fixed income work . Obviously they didnt but if we have any volatility you want to be in goldman over Morgan Stanley but i do think Morgan Stanley should trade at 14 times earnings which would put it higher if youre jamie dimon this morning youre calling and saying good job. I think they do. Goldman sachs, that was they had a tough call yesterday. It wasnt yelling and screaming but they got pressed on commodities. People want to know was there a loss did something go wrong thats the crux. It was aquizzical Conference Call the stock was up 1 before it began. Ill see you on the kbw and ill raise the price target they go from 251 to 256. Now it goes from 260 to 230. I dont think its as critical as he said but can we write trooi on the fact that the best one has been Pnc Financial pnc with the best quarter. No one talks about pnc Quarterly Results did beat expectations but Current Quarter violence a little bit weaker than expected. The airlines trying to recover months after dr. David dao was removed from the flight. They asked if it impacted bookings in asia i travelled out and saw some of the highest people in government in china and japan to make sure and i have to tell you in the course of my week there i dont think i got one single question on the aspect its all about secondary cities and demand and capacity and balance and its an all business conversation despite that were very concerned with that issue and making sure that indeed theres no longering issues from that incident. All right so that was april 9th, that incident and involuntary denial is down 79 in may down 88 in june theyre working hard not to have that be a repeat. Stock went from 69 to 80 was actually the best performer of the group in the wake of that. But i think, and great interview by phil of course but what oscar could have talked about is theres tremendous price cutting in the asian roots so you want to look for more domestic play if all the Airlines Come down and remember that southwest air does not fly on those china roots. Delta, hurt by european roots and low cost carriers. You have to do your flying in the u. S. Where all planes are full dont put too much in there. We have to load the plane. Thats domestic. Okay international, these roots are just a free for all. Price line sup because theres a lot of price competition the travel and leisure segment is hot but when you deal with International Roots you deal with low cost carriers. Nor wnorwegian or whatever. Or the emirates what do they give you . A shower. Your own room your own butler. Really . When we come back this morning, media and food as david and jim said already in the mix a busy day for m a do you and s p have not had a 1 move in either direction in 42 sessions sort of getting back to a streak rba ia ern e ar ithye wee ckn moment times up, insufficient were on prenatal care. Es. And administrative paperwork. Your days of drowning people are numbered. Same goes for you, budget overruns. And rising costs, wipe that smile off your face. Were coming for you, too. For those who wont rest until the world is healthier, neither will we. Optum. How well gets done. A deal in which they would combine. Not to mention something that we referenced briefly which is mccormicks purchase of their Food Division lead by franks red hot and of course 4. 2 billion lets get to them. They were both up rather nicely. This is is a deal at least entertained a few years ago by the two companies but was not one that could ultimately get there based on the inability of these Scripps Family that which controls the family to agree it was the right time perhaps that has changed discovery for its part in the world we describe so often in which people are disconnecting from the large video packages many would say does not have a must have. What do you do in a world where you dont have a must have network . As for scripps they have done well but you could make the same argument the first half of the year isnt as strong as in the past but this company has done very very well for a long period of time with the networks that you just saw. The question is would they benefit from being together and what would it take for them to say yes this is a deal we want to entertain were happy to roll into a combined discovery scripps or do they want a large cash number even though it would seem to generate a descent tax bill for them i dont believe they have been rerated or brought up in terms of their overall Tax Liability and so jim, you kind of can make the argument based on the strategic merits for the deal. This morning saying they can see as much as 400 million in potential cost synergies from this overtime. You have 750 million in sgna at scripps. You could create your own overthe top network made up of the networks international, scripps doesnt have much. And discovery made a huge push in international theyre up against a lot of big competitors. I dont know if discovery is in a position to offer enough in terms of what they would want with cash and is the right partner the Scripps Family in terms of the future and actually enhancing that future for that company. Its a must deal because i find when i look at Scripps Networks programming its all evergreen. This is the opposite of what we like when you flip around its entirely possible. You can keep watching the same house rebuilt, im not myself interested in that but my l millennials arent hgtv is not on their radar screen this is a great, great deal if they can make it work. Hes been a very good builder and buyer. When a lot of other companies were starting networks and saying well give you a piece of it they did not they did it on their own they own 100 of all of their network which is is important and you have to wonder if they going to want to be minority shareholders in a combined company. Well see. Theyre talking. Its unclear where theyre going. I dont have a lot of details to share at this point but im working on it. I want to talk about the similarities for one moment. Theres a slew of channels you may not want them. Theres a slew of aisle in the super market you may not want them mccormick has a big spice and condiment Business People like them why . They have a theme. People cook. You can add it to that you can certainly add franks red hot to that and you can add cattlemans although thats a lesser brand. I meant frenchs. Its the ultimate throw back mustard. It does have a craola feel to it i also felt it could survive thermonuclear war. The problem is their relevance whether it be hgtv to millennials. But theyre paying 23 times. Mccormick is up to five times. Now theyre going to delever i knew it was mccormick, hormel, pinnacle, they were all potentially involved in this and i told you last week, 3. 5 billion and you were like 3. 5 billion. 4. 2 million. Unilever paid next to nothing. Its a much better mustard because its a millennial mustard. They dont eat frenchs. They dont watch hgtv. They get their news on snap. Listen to him because he gets this and its okay. Now red hot. Red hot is hot. Yes. Its on fire. Heres the thing. People feel that frenchs is not millennial but franks, you go to the twitter handle, ill do a little jamie dimon here. Like he did on the Conference Call when you have a food company of old school but its twitter handle is i put the s hashtag exclamation point t on everything thats them trying to capture the millennials. 4. 2 billion is the must be to spend on these brands. You confuse me. I am saying that a company Like Unilever would never do this. Are you criticizing mccormick for having done it. No, im saying wreck it may have gotten a great deal. They did. What has frenchs done added Honey Mustard and they added all sorts of shapes of bottles. If you come with me to the supermarket they have one thats round, one thats short, one thats tall but you can get the stuff on amazon. Now you sound like peltz talking about p g brands this is is an amazon problem because you can get all this stuff in your pantry do you know millennials dont have pantries . Thats because they dont even have closets. This will encourage other companies considering, including unilever considering selling any of their noncore assets because of food quickly. This is antidisruptive. This number gets everybodys attention if youre even thinking about selling something. I dont know because i dont go to the supermarket. Well countdown to the opening bell in just a moment. Well talk about this new show from nbc news going on to snap and millennials are dominating the first half. Its all about mienalllnis. More squawk on the street continues in just a moment to keep our community safe. Before you do any project big or small, pg e will come out and mark your gas and electric lines so you dont hit them when you dig. Call 811 before you dig, and make sure that you and your neighbors are safe. 811 is available to any business our or homeownerfe. To make sure that you identify where your utilities are if you are gonna do any kind of excavation no matter how small or large before you dig, call 811. Keep yourself safe. And the wolf huffed like you do sometimes, grandpa . Well, when you have copd, it can be hard to breathe. It can be hard to get air out, which can make it hard to get air in. So i talked to my doctor. She said. Symbicort could help you breathe better, starting within 5 minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. Symbicort helps provide significant improvement of your lung function. Symbicort is for copd, including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort contains formoterol. Medicines like formoterol increase the risk of death from asthma problems. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. You should tell your doctor if you have a heart condition or high Blood Pressure before taking it. Symbicort could mean a day with better breathing. Watch out, piggies child giggles symbicort. Breathe better starting within 5 minutes. Get symbicort free for up to one year. Visit saveonsymbicort. Com today to learn more. Time for cramers mad dash ahead of the market open. The love today for facebook is extraordinary theyre taking share instagram from the snap. Much more than they thought. Dont forget the big lockup there but heather, my favorite analyst comes out today and says that over the last several quarters while management said that revenue might slow thats probably not going to happen pace of innovation from the Consumer Product and tech stack are good and cpms are going up and she is talking about how powerful video s. Both of these analysts are basically saying this company owns this category. He even talks about it as being a monopoly on the business no one can beat them these are two calls just as facebook one like amazon one. Why isnt google hitting an all time high like facebook is. She doesnt come out and say its doing better than you think. She doesnt do that. She doesnt play that game she never played it at Morgan Stanley and doesnt play it at alphabet. Various alphabet news today overhauling their mobile search app. Revamping google glass for enterprise did you see this well, i just think, watch youtube this quarter its going to be very strong lets get to the opening bell and the s p at the bottom of your screen. The big board is ubs and rent the runway it will put the nasdaq at 5 below. Doing the honors you mention snapchat, nbc news, our parent launching a twice daily news show. Recode reports 30 employees will be putting that together it did close below 15 yesterday for the first time thats a 13 decline from the march 1 ipo. Thats a jack tatum reference. Thats great by the way. It was. That wasnt even talking about it, the whole paragraph about stock bubbles is odd but it would be remiss, we miss him. But i think that the true that he did it to comcast and to snap whats with them. They had a good call on snap. Conference call. They were on it right away. From the beginning. But david, comcast never recovered from their assassination. No, comcast shares are still down from that point. Whats the deal well, the stock is still up 13 for the year. Its kind of like saying it might be a tepid quarter. There was concern when they came out with the call that comcast was going to have a tepid quarter. Well find out next week, next thursday when our Parent Company reports. There was concern that there was a bit of a slow down. I like that they are making Impact Research and that makes me like them very very much. Discovery and scripps are some of the biggest gainers. The only one bigger is vertex up on the Cystic Fibrosis trial. Those of us that tried mightily to contribute to the cause have to feel great and those of us that have friends, many of them very close, this is 90 possible 90 of the people with this triple combination could have a much better life, lets say that. Upgradesof barclays. Deserving the company has to be bought by another company. Gilead should have bought them this is remarkable and just hearts go out to these people. What a horrible disease and its been, people so tough to try to cure and people who are so dedicated to trying to cure it so lets hope. Lets hope. We did mention one of the larger m a deals of the morning. In fact the largest one because its a purchase of a private company by a large public company. Crown castle which is the largest operator of wireless towers and small cells in the United States is buying light tower. 7. 1 billion in cash. Take a look at shares not being used here as the currency to purchase light tower which is a private company. A lot of other investors as well theyre saying its 13. 5 times adjusted during the first full year of ownership so they may be already adjusting to a certain extent the multiple based on synergies theyre going to have. Its a share but it does increase their exposure to fiber and its a little bit more capital intensive. You can see those shares are down by 3 . Obviously with the Competition Among the carriers American Tower has been remarkable remarkable stories a lot of short sellers