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tv   Squawk on the Street  CNBC  June 12, 2015 9:00am-11:01am EDT

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of the first films. it seems like this weekend's movie could revive the franchise. >> thank you so much. it's something we've been excited about. >> why not do it? batman, how many times can you do it? >> fast and furious. >> take a little time and bring it back. >> can the little ones go? >> they shouldn't be but they probably will. that does it for us. have a great weekend. time for "squawk on the street." >> good morning. and welcome to "squawk on the street." i'm david faber. we're live from the new york stock exchange. carl and jim have the day off. it is news everyone is talking about. changes at twitter. we will talk to jack dor see and jack cost low later. let's look at the trading week. we are looking at a down open at this point. not a lot to tell you on the
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macro front. merkel got things moving a bit. let's take a look at the ten-year note yield. we're right around 2.4 but off the highs that we saw, almost 237b9 2.5. >> we hit it yesterday. >> crude oil at the bottom. let's get to the road map. a change at the top of twitter. ceo stepping down. jack dorsey will be the interim ceo and they'll join us for an interview. >> and the imf walking out on debt walks and angela merkel with new comments. >> what you need to know to trade. >> first the ceo of twitter is stepping down effective july 1st. he's going to be replaced by the co-founder of the company on an interim basis. it comes from amid pressure from
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some investors who have been unsatisfied with the growth rate. here's what was said last night during a conference call. >> one of the reasons i'm stepping in is of the belief i have around our direction and our strategy and specifically around the products. i have a lot of context for it as chairman as talking with the team running it and i do believe that it is right and i don't want anticipate any change. >> we're going to have a live interview with both gentleman. that's going to be at the top of the hour. it's interesting. he says i don't expect any change. i wonder if investors are disappointed to hear that? >> you see the stock trading where it is. it it jumped on the news last night. with such volatile earnings since it went public that's why
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some people are saying there's shares. you have them saying direct messages are going to be more than 140 characters. you're seeing changes but i think you need to give them credit even despite some of the recent criticism. the ceo has been there for five years. he hired the people who built the revenue engine. revenue is up 239% under his watch. he took the company public. there's a lot that he did that we should still give him credit for. >> no doubt, and there are people who i have spoken to who are close to him who indicate this was his decision. it remains unclear whether the board would have acted. my sense is before the end of the year they probably would have but he beat them to it by deciding to step down. he apparently is exhausted. >> why is he staying on the board? >> why not? >> well i mean, is that -- you
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think he'll stay on the board when they find a permanent ceo? >> yes. i think that's expected. i think it was mentioned earlier, tofr i think three former ceos on the board can make it difficult to hire a new ceo sometimes, but i think that is the plan for him to remain on the board. >> i read six research notes overnight on this. everybody weighing in. such a major development for the stock and it seems like the common thread from wall street is that it's positive for sentiment, clearly, it was a much-needed change and it showed that the company was ready for change but the question is how much change is going to happen? of course it's a long-term opportunity, according to the analysts but in the near term and when they find a term innocent ceo, they're going to have to make changes, mainly getting the user growth up and getting the advertising strategy down. it's stumbled recently.
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>> there's some people who question the narrative behind it being his decision to step down. there is no severance package. he is abandoning his equity. >> $16 million leaving on the people. although he's made a fortune. >> sure but why didn't he stay on until the new person was named. >> the sense i've gotten from speaking to people around it and close to it is they didn't want to undertake a broad search for a new ceo because it would have leaked out and that would have made it more difficult to conduct that process. the idea was we need to make it public and announce when he's leaving. dorsey comes in and we look for somebody to potentially replace him. one never knows, maybe dorsey will remain as ceo. let's get more reaction to this
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from the street. let me start with marten. what's your reaction of the changes and the conference call from last night. >> not much on the conference call of any redetail. i think you mentioned they reaffirmed guidance but they talked about still the lack of visibility and it doesn't sound like monthly active users are that good. i think a lot of it is get the negative news out before the next time they report. i think it's good overall. i think he did a fairly good job. i think what they need to do, whoever comes in is simplify the story to consumers. mark zuckerberg has a clear message to the consumer. that's part of the problem with twitter. they need a marketing salesperson leading that in that kind of respect. they have plenty of technology and depth that they can harness but they need to met the message
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out and keep it simple. >> that seems to be the consensus consensus, ronald, do you think the streamlining and remessaging for twitter happens before he get a permanent ceo or do you think the company is willing in the near term had to to quell some of the investor concern here in. >> i think the company's willing to do that here in the near term. i think what we'll see in the next quarter is a continued improvement in products that are coming out to make it easier to use and make it more broader to the masses so it's easer. i believe that maybe you need someone who's more of a product guy who has built products for billions of people in the world and can sort of bring that knowledge into twitter and say this is maybe how we should organize the data. they have some of the best content and a great product. they are in the mainstream.
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they have all the right pieces. now it's just putting it all together. >> martin when you look at some of the internal candidates being mentioned, anyone stand out to you. the cfo, a lot of people look toward him, the v.p. of global media or do they need to go outside the company? >> i think anthony noto since he came in and they had their big analyst day, i think he's a little bit behind the eight ball. that's my personal opinion. i think adam bane has some credibility with the street but he's not been very credible. generally speaking i think they need someone from outside. and that's most likely. i think it'll be quicker -- maybe by the end of the summer. they have to work it down to a short list quickly. >> ronald is there a scenario where this company now is
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prepped for a sale? >> i think you always have that particularly now with an interim ceo in charge and clearly there's someone perhaps down the road in mountain view, but this is not a company company. there's only a few people who could do it and i think twitter likely stands alone here at least in the short term but there's always an opportunity and who knows i guess is the right answer. >> finally, martin what are your on the takes over the next six months that dorsey is in charge. some pay he's been great in the past at rejuvenating the consumer product. do you think they'll make progress? >> i think they will and he'll be good at rejuvenating. i don't think he would be wanting to run this company as ceo over the next several years. he's done other things and he's more of an entrepreneur. that makes sense for him to come in and get the troops organized.
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you do need to do that. i think he should be getting the message out and meting usage to go out. everyone is focussed on monthly active users but the usage has been declining and they're not reporting any met rix. he needs to drive the usage higher and make it clear that it's happening. i think he can do that. they have plenty of product to make that happen. they need to get the experience out there. >> we'll get to ask them about those very questions a little bit from now. gentleman, thanks so to the you both. >> nobody mentioned snoob dog. didn't he throw his hat in the ring? >> and then aaron levy tweeted he should be the head of the chair committee for the search. >> people have strong views. to jim cramer's point he's been making that's what they need to tap into n the power twitter has for live events and figure out
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how to make that attractive to advertisers. figure out if you're going to target the people that use it or the other ones who aren't active users to read the material. >> make it easier for them to access the platform. >> one of the leading investors and one of the loudest voices has said you have a billion people who have visited this site and decided not to stick around. there's a problem with that. you have to make it easier and a little bit more approachable. a lot of questions coming up for both of them. we're watching the markets. stocks are on track for weekly gains but futures are indicating a lower open largely on worries about greece. the greek government criticizing the imf for pulling out of bailout negotiations. the imf said yesterday the talks had broken down at a technical level and they added it refuses to cross, quote, red lines in the talks this. that according to the greek government. angela merkel urging greece and the creditors to continue
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pushing for a cash for reform deal. this has led the markets in two different directions. on one hand you have people saying, look the data and the global economy is so strong at this point, that whatever happens with greece might not necessarily have a damming effect, but now as of just the most recent day or so you have the bond market again qvc safe havens, people saying maybe germany is realizing there could be bigger affects. >> i think everybody is trying to find out what happened yesterday. we have strong u.s. sales report and treasuries rallied. opposite of what you would expect. a lot of the commentary today to suss on the fact that we were oversold and you're seeing them sell off a little bit more this morning. yields are back higher in europe as well. the greece news is headline. it's going to happen. we're used to this. up until the end of june the
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long term investor has to think as long as the u.s. economy is strong and the global economy is improving, and we are getting signs on that front. >> we have to mention currencies, you're favorite area. angela merkel observing a too strong a euro makes it more difficult for spain to reform. >> always dangerous when you have politicians talking about too strong currencies. president obama figured that out earlier. >> he said he ke declines to meant on daily fluctuations. >> the gyro isyou euro is weakening on the back of those comments. and coming up an exclusive interview on the changes at the top of twitter and the company strategy going forward. take a look at futures here. again, midweek turns out it was pretty strong. looks like we're under some pressure with the dow down 64.
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>> number of calls out on consumer names this morning.
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mondolelez saying the snack maker is doing well at operating a challenging operator environment. and downgrading keurig from neutral to buy. reflecting pretty lousy sentiment on couric green mountain. that has gone from one of the best performing names last year to one of the worst this year. ubs citing a number of things. >> it's summer. people are switching to iced coffee from hot coffee. we had expected maybe the cold brew k cup by now. >> it's coming out this fall. they showed investigators in may and it landed with a thud because people were worried it's not a mass market product. they were worried about the expense. they priced it high around $300
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per machine and worried if it was going to catch on at the same time the company was having other execution problems. mondolez is another one. facing economic weakness. she has been cutting cost. this entire sector that 3 g complimented in places like kraft and heinz is really keeping the margins up by cutting costs. >> yeah they at 3 g they like to see they zero base every year but they've been going through that with i guess good results in terms of margins. the questions i always have even with heinz is how far can you take it? are you starting to give up share, perhaps, in some fashion because -- >> >> you need top line growth eventually. >> right. and none of these companies have
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that but how long can you cut costs only before you impact your ability to grow is my question. i'm curious to see heinz and kraft. i believe the 3g mogdsdel but i believe it's getting overhyped. >> they're going to take kraft overseas and that's part of the longer term growth story. they could come out with a new other owes. >> still to come, an exclusive interview with dick costolo and the company's co-founder and interim ceo jack dorsey becoming skrim interim ceo as of yesterday. and steve case who has a lot more than tech on his mind. stick around to see what we're
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trimming some of the gains from earlier in the week. futures trading. hear today david, a global strategist with jpmorgan. how does the second quarter look in the u.s. now that we've been getting good data. >> it looks strong. we've had day that ta that suggests the softness in q one
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is transitory and growth the expanding. the data lined up in a positive fashion. we have solid auto sales last week. retail sales strong. the consumer looks in good shape and we think the economy has good momentum. >> a walkout came with the announcement during our show that knocked some of the gains that we were seeing in the u.s. we're under pressure again this morning. is it just the twist and turns of greece until some sort of resolution comes to past? >> i think greece is creating the most headline risk in the market right now. yesterday wasn't a good sign but we maintain the view that greece needs the euro more than the euro needs greece and we think they'll get a deal done. >> and men while a meeting next week. we've gotten in the habit of saying every fed meeting is the most important but next week's is important because it's the last press conference before
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september. >> i think the main message the fed needs to deliver is whether or not it's happy about the strength of the economy and momentum. they've been expressing a lot of concern about does the economy have momentum? we're thinking about raising rates. i think that's the primary goal is to communicate things have gotten better. we feel better about where the economy is. they don't need to say a lot more. i think that's the most important thing they have to communicate right now. >> what does it take to get the ten-year threw five. >> we saw yesterday things hit the 2.49 and then reverse. i think interest rate action in europe is driving the u.s. interest rate action. i think continued improvement european data would be the catalyst driving rates above 250. >> we've been in this tight narrow range all year. are we prime for a breakout with
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improving economic data in the u.s. or is it going to be worries about europe and big moves in bonds? >> i think the positive economic data is more of a tail wind than a head wind. there's uncertainty with respect to the federal reserve. we think they will raise rates in september. i think the statement next week may reassure investors. >> i think most of the worry for equity markets has been about momentum the data said momentum is good. equity markets have responded to that. most people think the long end of the treasury curve will be well-behaved when the treasury starts raising rates. >> the long end being well behaved. thank you both. >> we have the opening bell for this friday just a few minutes away. stay with us on "squawk on the street."
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capital of the world. the opening bell will be ringing in a little more than one minute on this friday. the bond market has been i think, the most interesting part of this week in a lot of ways in the sense of we seem to have withstood the significant move up or whatever you want to call it, recently since the employment number. here we are at 2.4. you know with multiples as high as they are, i know these guys are always talking bullish but you have to start to think at what point do people start to reconsider? >> for the yield on the ten-year to back up from 2 .5 back down to 2.3. it's volatility at the best or worst depending on what side of the trade you're on but it's become hard to predict how treasuries will be viewed in this market. >> but story in equities is the resilience of the u.s. stock market despite the bond market. >> you mentioned yesterday, with the retail numbers you would have seen the opposite.
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>> we're looking at the best weeks for stocks in seven weeks. we'll see what happens today. it looks like we're going to open lower but that was the trend. >> there's the opening bell for friday. sarah said probably a bit more red on that board than green. here at the big board that was interoil corporation doing the honors. and chicken wing restaurants owner and operator celebrating the initial opening today. i can almost hear cramer talking about it all. >> and boweau jangles. >> that was one of the classics. >> $0.17 per share. we've seen mixed reports from some of the cast casual restaurants. bo jangles based in south
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carolina. urban outfitters is on the move this morning. upping the price target to $50 on that stock and also bbnt saying the pullback has been overblown. the pullback was due to the weaker quarter. even jim cramer who says he shops a lot of anthropology possibly for his wife. >> they have home goods too. >> he was surprised by that this. that's one we're watching. >> i think opening trade on twitter is the story of the day leading up to the interview at 10:00 a.m. twitter stock got a big boost on the announcement. last night i was here for closing bell when it happened. it was interesting to see the fade in the afterhours session and after the particular line they're sticking with the same strategy despite the fact that dick costolo is out july 1st. i think that is something of a
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disappointment probably. in jack dorsey he helped build the business. perhaps -- >> a steve jobs moment. >> there is a question and we're going to ask it. >> also which company he would run because he's currently the ceo of square. >> and that's a significant company. but there is a belief that he's very good at rejuvenating the consumer product overall and the experience. we'll see. >> there's also something to be said for the founder ceo morale. a lot of times there's a reinvision ration when you have a founder at a company because they were there from the beginning and they know the story and we've seen some of the most successful ceos in the technology space. mark zuckerberg founder ceo. that's a story line people are talking about. >> it looks like all ten major
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industry groups are opening lower in the opening trade. telecom fairing the best. the sell off continues with yields a little bit lower. a lot of cross currents going on. the euro is weaker. stocks weaker as well with the dow opening. >> we have followed reynolds acquisition of laura lar has closed. there are also significant investors with it. former lorillard investors, common stock for each share they own. there's also a big shareholder in there in british american tobacco.
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significant divestitures as well associated with this deal which has been a long time and coming. it puts a spotlight on a lot of the questions that remain when it comes to anti-trust whether it's office depot, staples, halliburton. the list goes on. we'll have to see. >> charter and time warner cable. >> yes, which many would say broad band penetration is smaller than come cast and yet there are questions. >> we are still waiting at&t direct tv that merger agreement on that got kicked out until august. the issue there seems to be more of a net neutrality. today is the day that the open internet rules go into effect. some are saying maybe that makes it easier because advocates have less to stand on because the rules are already in effect. we will wait and see on that. >> that may help them on this
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deal in terms of the sooner rather than later, sooner being in context. it's been well over a year. >> can you bring us up to speed on dish t mobile? >> yesterday general reporting about financing, funding a cash portion of any potential acquisition of t mobile. all i can report is i think things continue. the big questions are price and structure. they continue to be minority share protections for the germans. by the way, the germans don't move quickly. there are so many moving parts getting down to the final details and being able to negotiate effectively on price and the germans who are going to want the protections -- the process of finding financing
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will be embraced by those who are hoping a deal happens. it's interesting in valuation, dish right now people say the spectrum is worth $40 billion but once you do the deal with t mobile then it's just spectrum at a wireless company. you have to spend a lot of work to put it to work. it'll be interesting to see how the respective valuations and how they deal with the key negotiation which is almost always price. >> watching shares of keurig green mountain down. bringing the year to date lost to 38 fkt%. the latest selloff by a downgrade from execution fronts on many fronts including the hot machine and cold machine. another losing group right now is energy under pressure again today. crude oil prices are down on wti. earlier this week we got above 61 on some inventory draw down
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for the sixth week in a row in the united states. >> it's interesting you mention energy. the producer price index is the big piece of data we got up. up. it was the highest read in two and a half years but the main stand out was energy. and the sharp rise in energy rices after the pull back in oil and gas prices at the pump on the back of that. it's a lagging effect at the pump. a rise in energy prices has been the main stand out and.1% is the core number. >> it's moving in the right direction. next week's consumer price inflation, and then at 10:00 a.m. we have university of michigan consumer sentiment often seen as a forward looking indicator as we continue to figure out what's going on on the back of what was pretty good retail sales data from
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yesterday. it showed strength broadly. >> building and garden stores. >> exceptionally strong for the consumer in may. i guess people are fixing up their homes. and williams sonoma got an upgrade. >> if you plant it in the spring, it will grow. >> have you been at the gardening stores this month. >> yeah. let's get more on what's moving this morning. >> it's a modestly weaker opening. all sectors of the s&p are on the downside. it's a lalts worse over in europe because of the uncertainty over what's going on with greece. stocks are down in europe. bond yields are up in europe as well. no progress on greece but you see greece down 5%. france and germany but basically we're flat. germany is down .1%. it's fairly stable on a weekly basis. it's similar here.
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all the major indices are in positive areas for the week. we're close to 1 percent on the week. the old high was 83.12? we're only 320 points away from the old high. not too much damage done on a long-term basis. all ten sectors to the s&p are on the downside. financials are among the weakest. banks had a great week. they are weaker today. technology, health care down fractionally as you can see here. the love affair with restaurants is continuing. we're waiting for wing stock to open on the nasdaq. restaurant ipos have been big winners, probably the best performing category. i just put the names up from the prices. shake shack up 200%. zoe's kitchen up. papa murphys up. bojangles' up 31%.
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we'll have the ceo of bojangles' on closing bell today. we'll talk more about the restaurant business and what's going on at that time. next week is another big week for the ipo market. we're getting yet another well known restaurant chain, a brazilian steak house is going to price next week. the big one is fit bit, but there's another interesting company, mind body that's going to price at the new york stock exchange. that's a wellness e merscommerce platform. probably by dollar value the biggest one is univar. we'll talk a little bit more about that. that's a very big global chemical company. restaurant, chemical company and a new e commerce platform. >> thank you very much. let's head to the bond picks. we've been talking about the signals on treasuries.
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good morning, rick. >> good morning. well, to be fair we all know that the plumbing has shrunk in the fixed income markets in a variety of ways and that leads to a little extra volatility even when it isn't october 15th crazy flash type volatility. look at a two-day chart of tens. we had a rally yesterday, pushing yields down. here's something interesting. despite the wild ride we've had intraday closes which technicians pay a lot of attention to leaves us unchanged. 2.38 2.38%. let's go to mid settlement of last year. i do that because we're comping toward the fall of last year and the levels are a bit short of some very high volume areas in the low 260s that many traders think the market will test.
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can it get there soon? if you get there in ten minutes considering some of the volatility but with the weekend upon us retail sales and ppi, it may settle in a bit if we dip. look for light volume buying pushing volumes down more. if we open up the chart on the difference between bund you'll see, let's start with the bund variable. they're move was much more aggressive. this isn't a banana republic. they went to on the 104 basis points because they moved amendment anticipating strange policy. we know qe is a hot topic but not until recently. let's look at the spreads between the two. i find this fascinating because we're right back to what was home base before the qe parade
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began. 150 points sprading them. let's look at foreign exchange. june has not been a good month for the dollar. if you add another month to the chart, gives you a little more clarify, maybe some of the reasons for the volatility is because countries are trying to down play their currencies for export purposes. japan is no different. if you look on the dollar yen, we had a big breakout but a big failure close to 126. back to you. >> and now apparently spain and portugal. jackie is at the i max with what's behind a trade. >> we're seeing a little downward pressure in crude but staying over the critical level of $60 a barrel. rick talked about a little bit
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of a stronger dollar today. that's probably having some impact. traders are also looking at the july contract. it's going to expire next week. we're seeing volume trickle into the august contract but on pricing we're seeing tight trading range. $58 to $61. we're staying in there and 60 is the magnetic point. traders feel absent anythings drastically changing that $60 is what the market thinks is a reasonable price. it doesn't naesecessarily mean the trade is ready to take the next leg lower. >> thank you. keeping an eye on the $60-level. it's been a big week for banks. we'll ask one analysts which ones are poised to lead the
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pack. plus the future of twitter. we talk with the outgoing ceo and the co-founder and new interim ceo, jack dorsey. we'll be right back.
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welcome back to "squawk on the street." the financial sector has been on a roll this week and this month with most of the big banks reaching 52-week highs. will this trend continue. we have a bank analyst joining us this morning. the big thing that's moving the bank stocks is the expectation of a rate hike. the pricing in december, why are we seeing a big move in the stocks ahead of that? >> frankly, it's a little hard to explain. i think there's a lot of exuberance moving into which has been a largely held industry.
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we argue we don't see earnings coming up too much as a consequence of the yield curve move. >> people say the way to move it is the regionals. bank of america up 15% this quarter. it seems the big papgs banks are moving on expectations they're expected to benefit. how do you see it? >> i think with the big banks, it's the rate expectation as you point out, although is the regional that's more exposed to that but also there have been pretty good capital market trends that aids these institutions. >> but it always seems to be trading and trading activity and volume that moves these stocks. just a few weeks away from earnings. already had some comments from executives that trading activity especially could be flat to down. are we going to see enough activities in other units of the banks to outpace that? >> one of the big things of this quarter is it was the largest
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quarter in m&a -- >> they don't get their fees until later from now. >> but that's going to come through to the end of the year. it's the highest margin business. >> you do not think the move higher is justified? >> i would say the bank stocks seem to be excessively discounting the benefit. >> in other words, you would not be buying on this idea that the yield curve is steepening and that's helping the economy. >> i think there's two different things. there's what's going on in the macro economy and that's the rate sector. it has been gotten a little bit better. in terms of rates, it's a question of what's embedded in forecasts and if you look at expectations for next year it's that they continue to expand, they would say the rate fixture is consistent with that but not better. >> what are the names in the group you think are well-positioned for this environment you're discussing?
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>> we like the big brokers because of the m&a activity that's coming as well as the continued strength in terms of sharing purchases. morgan stanley is the top pick and -- >> even though morgan stanley was the best bank stock last year you by that's more room? >> they have the most compelling mix right now. >> in europe a big restructuring. a big reshuffle at deutsche bank. have we gotten to a point have weather the u.s. banks trade in a separate class. >> the european banks have been much slower to rationalize their balance sheets than the u.s. banks. i think we can give credit to u.s. bank regulators to push that along but then there's
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share shift between europe and american banks. morgan stanley remains my top pick. >> we are minutes away from our live and exclusive interview with the outgoing ceo dick costolo and the interim ceo jack dorsey. we'll be right back. it took tim morehouse years to master the perfect lunge. but only one attempt to master depositing checks at chase atms. technology designed for you. so you can easily master the way you bank.
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>> you'll be there at the end of the year? >> look i have to go fo kus on my job and what i've got ahead of me. i don't worry about am i going to be working here or this or that date. i focus on my job. >> and you feel you're in sync with the board? >> i know i'm in sync with my board. the board and i communicate regularly. one of the things i do is probably overcommunicate with them. >> probably new at this point that he wanted to leave. it's only a few weeks ago. >> and he said that to us in april as well when he came on in the wake of their earnings misfire, he said the same thing. the board and i are in sync. >> there's an undue amount of attention in a way on this company, and i've interviewed probably more ceos than a lot of people. how often does a guy like that get those kinds of questions.
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it's rare. after a while you kind of have to admit that he probably got tired of it. >> he had the support of board. this was a voluntary move. that shows up in the fact that he's given up the compensation. >> but when you have one of the leading onlyists make the call that's where the line of questioning comes from. >> he was right. he'll remain on the board. we're going to hear from him and from the chairman and taking over the interim ceo seat we'll be able to ask a lot of these questions and a lot more about the future of this company. keep it here.
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waiter. water. so why would you invest without checking brokercheck? check your broker with brokercheck. good morning. welcome back to "squawk on the street." live from post nine at the new york stock exchange. we have all the big guns here to talk twitter. let's take a look at the markets for you. opening up in the red after two days of gaining.
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the dow jones industrial average is down about 100 points. triple digits. the s&p 500 down half a percent and crude under pressure. staying above the $60 a barrel number. let's get to the road map. big changes at twitter. dick costolo out and jack dorsey in. we have a live interview in just a few minutes. >> and after we talk to cost low about twitter, we'll check in to see what investors should be doing with the stock. >> and we'll talk to the homp ton -- hampton's super visor. >> this is the june preliminary read on university michigan cinnamon and it came in at 94 .6. that is better than expect bud
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it is preliminary. it's not the final. last month's final was on the weak side but we started out the year with the strongest read going back to 2004 at 98.1. i'm not sure we garner much information. you hear a lot of chatter in the pits as the ten-year continues to rally. the dow is coming down. back to you. >> thank you very much rick. the top story today, twitter ceo is stepping down. and co-founder and chairman jack dorsey stepping in as interim ceo. shares spiked yesterday after the announcement. this morning up a more modest, let's call it almost 2%. joining us now exclusively is dick costolo twitter's ceo, outgoing, and jack dorsey twitter's chairman and co-founder. thank you both for being here at this early hour in san francisco. we appreciate it. >> thanks for having us. >> good morning.
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>> jack, i'd love to start with you. no to the extend that dick costolo makes it clear late last year that he's thinking about giving up his ceo title or stepping down why doesn't the board act then? why don't you take a more proactive approach rather than what's happening now? >> well we've always had an open conversation with dick and the leadership and the board about the next steps of the company company, and we do that to make sure we're putting the company first. we have a strong road map, and i think the tone was set back in november when it was said you'll never see a greater cadence at the company than in what we're about to do. we keep delivering that. and we did not want to interrupt the momentum. we're excited about the products and new initiatives to come.
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>> when you say momentum i think some share how olders say what are you talking about? there doesn't seem to be great momentum in the business. >> i think there's been a great momentum in shipping more and more news services and updating services like fabric and new services like periscope. >> some people focussed on your comments saying there will be no change in strategy or direction and were somewhat disappointed with that. i've spoken to people who know both of you well and say jack, you're great at rejoouf night nating the consumer product. they were disappointed to hear that perhaps there's no change in direction or strategy. why not? >> because the fundaments the company is executing right now are extremely strong and beautiful.
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and i think it's going to be a very engaging experience, and i can't wait for the world to see it. >> dick, why are you staying on the board? >> i love the company. i love the thousands of people who work at the company. i enjoy working with customers and partners. i spend an extraordinary amount of time with all of those stake holders in the business, so i'm looking forward to being able to continue to help out internally and externally. >> to guys who tell me this guy was just exhausted and he'd had it. is that true? >> at the end of the last year i started talking to the board about transitioning. i wanted to make sure we were doing it when the team that was in place was strong was working well together and were forthright with each other. they engaged with each other and resolved conflicts without me having to step in and i started to see that at the end of the
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year and at the most recent board meeting we had a good long conversation at the end of the board meeting about the state of the team that is healthy, maybe healthier than i've ever seen it. as jack mentioned, the cadence of the product, and with the new services like fabric doing so well and periscope, it was the right time. >> jack there are others who say, listen an insider is even telling me we've been out particularly good at the consumer product. we can get a lot better and they want to know what will be different in let's, call it six months assuming you hold the job for those six months. >> the more the product simplifies the more it feels straightforward and the more we ship and execute, the more people will find value in it and that's what we're focussed on and that's what the team has been working on and i think showing the fist part of the year. >> jack it's been made clear to
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me that while you're currently an interim ceo, you're being considered for the job full-time. if in fact you're asked to take the ceo job permanently, will you accept that? >> it's not even a question i'm considering right now. we have a great search committee looking for the right fit for twitter long-term, and my focus right now is to make sure our product cadence and momentum of execution continues within the company and also to make sure square continues its cadence and its momentum with our strong team over there. >> you've got a $6 billion valuation on square. how can you do both? >> it's really a testament to the strength of both teams. dick has spent a huge amount of time over the years building a great management team that i feel very confident with and i have a lot of context for and i've been doing the same at square. i'm extremely proud of the team and the execution over the past
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six months and even our recent announcements. >> so, again, just to come can back to this you're not answering the question as so whether you'd accept the ceo job full-time? you're not saying no are you? >> i'm not focussed on it. it's not my job. my job is to make sure that we continue with our cadence and amply fie and accelerate our execution. >> dick, my colleague is going to ask questions. i'm going to ask something he asked earlier. you're going to have four ceos on the board. is that going to be harder to find a replacement for you full time? >> i think the fact that jack and i and ev talk to each other regularly and work well together and we spend several hours talking about the company, and everybody has got such great context for what's going on in the company today, i don't think that's going to be an issue at all. all of us want to make sure that
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the very best person possible who steps into the role has the freedom that they need, the freedom that we'll want them to have to do everything that they'll want to do to lead the way they want to lead. there are many different ways to be successful and many different kinds of great leaders and great ceos and i understand that and i think jack and ev do as well. >> jack, it's john and i want to follow up on something you just said. i want to know what are the metrics that you're going to use to measure your performance over the next six months? is it user growth? you already mentioned the product being simple. product cadence and momentum? which of those is more important or is it all of those? is it something else? >> it's definitely all of those and it's different for both companies but we want to see an acceleration of our execution, and we want to get our products and services out to the world
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faster. you know the thing that solves everything is shipping a great product that people value and love and want to use more and more and that's what i'm focussed on. >> jack it's good to see you and we appreciate your time. you said last night last not any change in strategy or direction, but this company has been surrounded by a lot of noise about whether there would be a potential takeover. in the near term do you put a poison pill or is that still a possibility? >> it's not something we're focussed on. we're focussed on the execution and getting product out there. we're focussed on getting services and we have the right team in place to do that and i do feel that we can accelerate a bunch of that so people get to see it faster. >> jack and i and the rest of the board all know that we have a duty to our shareholders to
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maximize value. we think we can do that best as an independent company but, again, we're going to fulfill our duty to maximize the value of the company. >> you did a deal with google back in february to allow tweets to show up in google search and there's some sense that maybe there were discussions with google over a deal at that time that just never materialized. can you add clarity to that? >> i'm not going to comment on the existence or nonexistence of any external conversations beyond the partnership discussions we've already discussed with everybody. >> dick, what was the greatest frustration as ceo over the last five years? >> you know i don't think of it that way. i think one of the most fascinating things to me is that i found that you would learn more as a ceo and as a leader through mistakes and they may be simple mistakes or organizational mistakes. they may be operating errors.
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and that always fascinated me as i've reflected on my time in the company, the biggest companies of growth would be through thinking about mistakes we'd made, being really open and honest and forthright with the company about those and how we were going to operate differently going forward to be more efficient. and so that's the way i generally have thought about my time and lessons learned inside the company. >> and, jack coming back to the fundaments of the company itself. you've had five heads of consumer products over the last four years. people say the team is good and strong, but you still have to worry a lot about product and leadership. what can be done here to sort of change that and make things a little more stable particularly as it comes to the five different team dick has had working with hill on product? >> i think it comes to collaborating and this team
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moves together as one entity and i have seen that in my role of chairman. and i have seen that in our conversations, in my conversations with the management team. i have a lot of confident for kevin, our head of product. he's been at the company for a while. he's held many different roles from engineering to leading, all of our products and i think it's just a fantastic story. his greatest partnership is with our head of engineering, alex and that gives me a ton of confidence. those two together have just done amazing things in a very short time frame in their leadership. and i expect a lot more of that to come. >> talking about the strength do you think that since going public there's been an expectations gap between wall street investors and the stories you're trying to tell when it comes to the strategys? there's something that investors are just not getting and do you have to work on your
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communication communication, and jack after you? >> well, look last year we, as we mentioned in 2014 we grew revenue 97% year over year. the business is extraordinarily healthy. we have a long-term strategy. we're very clear about the strategy at our analyst day last november. it is a long-term strategy. not a something we -- we said we were going to accomplish in 90 days or six months and we have very clear priorities against the strategy that we're executing against internally. when jack talks about the pace of execution and why that's exciting, it's because now we that we know we have the pace of execution, we know we can make even more courageous choices in the product and we're seeing that internally. we're excited to show that to the world over the course of the rest of this year. >> what does that mean? >> it means delivering on when
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we've talked about things like strengthening the core to make it easier for new users who come to the product to get twitter and engage with it right away before going over a learning coming up this learning curve of having to find accounts to follow to get a great experience but delivering it immediately. weave we've launched that. it means redutsing barriers to consumption no matter where they are. whether they experience content across millions of web pages to be able to get that content and engage with it right away without having to claim over barriers or know certain search terms inform all of that work is underway and going well. >> quickly, do you need a number two? there have been times they have had a chief operating officer. you have two companies to run at the same time. do you need somebody to
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complement your strechkts? >> i think the whole team serves that function. i don't see any gaps in that leadership team and i don't have any gaps in the leadership team at square. i feel confident that together we can move as one entity and one team and focus on our execution and base against your strategy, which i believe in? >> and finally, jack all these questions, of course, about the future of the company, the different metrics by which you're measured. most of the questions i've gotten during this interview are actually about your beard. >> a lot of talk about that. >> does it help you as a ceo? is it a sterner sort of approach or do you consider eliminating the beard at some point? >> that's not a question i was kpchting, but, you know people shouldn't be measured by what they look like. >> i think that's a great place to stop and i fully agree with you.
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gentleman, thanks to you both for taking the time this morning and listening and taking our questions. we appreciate it. dick costolo, of course currently and outgoing ceo of twitter and his current chairman jack dorsey who is stepping in as interim ceo. >> they always come out and speak. with all the pressure he's been facing dick costolo has taken questions. he's tried to communicate the story whether it's resonating with investors or not. >> the thing that jumps out to me is execution, product cadence. it's one of the criticisms of. it's one of the things that jack dorsey focussed in on saying the product needs to get simpler and judge me on the cadence of products. how quickly do we put out new products? >> and consumer product chiefs
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in four years is an incredible amount of turnover but they're saying they have the team in place. that's why the transition is happening now. >> you wonder in terms of the way this company is judged john on those major metrics, year over year growth is not very good. it's barely there at all. and so i wonder if people are disappointed in hearing no change in direction. no real change in strategy. i don't know if they know what to make of that. >> i don't know what no change in strategy means. the strategy j it makes sense. we're acquiring companies that layer on top of core twitter and focusing on getting user growth logged in. in all of that sounds reasonable. we're trying to pick up the product cacadence. maybe they need somebody who can get the cadence faster.
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>> although when you pressured him, he wants to make search easier and make the product more approachable which is what shareholders have been asking him to do. >> the odd thing about this is it doesn't feel like he's stepping down because of pressure from wall street and on the business. i mean, he's telling the story that this is something he's been thinking about since last year. he told the board about it and it was a natural transition and there's nothing to change here and that's the strange disconnect. >> i think it's true. that said, would this board have acted if things continued? both can be true. >> much more on twitter when we come back. you just heard from dick costolo and jack dorsey. what does all of this mean for twitter shareholders? how do you trade it? we'll talk about that but first we'll get a new york times come um nis's reaction.
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dow down 120 points right now. selling pretty much accelerating all morning look. twitter still up but certainly off the highs of the this morning. the major management shakeup. dick costolo stepping down. jack dorsey stepping in as interim ceo. we just spoke to both of them and now for a reaction jim stuart. i know you might not have heard all the interview but the fact that dick costolo stepped down and the company says no big change in strategy. what's your impression? >> i think the key question is is this a personnel issue that can be solved or a concept issue where the whole underpinning of this company may not lead to the kind of growth that investors are hoping for or is it a combination of a two? i think it's kind of a concept
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problem. i think it makes it tougher for investors. >> if you're a board and a ceo says i'm interested in stepping down, what are the reasons you would wait six or seven months and let the ceo field questions and then announce it at a time like this? >> if i'm a board member, first of all dunto you want any employee that doesn't want to be working, especially when it's a ceo? if i don't have a story to come out with to explain what we're going to do, who we're going to replace them with and they don't seem to have a great story right now. they're saying well steady as it goes. that has not been working particularly well but it looks to me that they ran out of time to find an answer and in the meantime do you want a lame duck at the top of the company? >> that's not a healthy situation. you want somebody who's committed and working 110% who has great ideas and is going to
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push and bring in a great team. i still think does the concept really work? i'm not the best person to say. i'm in the media. i like to think that when i write something i might get paid for it. >> you do not tweet? >> i do tweet. i do tweet but i don't tweet nearly as much as some people. am i going to break news on twitter? no. but i'm in the media so i'm not a good example. >> don't tell that to david baker. >> but when's the last big story that broke on twitter? there would be an event and people would tweet? >> unfortunately it's when official twitter accounts get hacked. >> that buzz seems to have tampered off lately. >> it's an effect live platform for communicating. there have to be a lot of things they can do. >> i also wonder more broadly how many of these people are going to flourish.
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how many pass words and user names are people going to remember? am i going to hop around to eight to ten of these things? i'm not but i'm not the target demographic. >> i was going to ask about the users. 300 million users? everyone compares that to facebook. >> they user growth is an issue there, i think. i think it reflects the broader problem here but i think the comparison with facebook is not particularly fair. i think facebook is much better situation. among other things people on facebook get on there and stay on there. i think advertisers love that. twitter by its nature is in and out, very short. how much time do people spend on there? i don't think it's anything compared to facebook. they have to figure out how to get people into twitter and keep them there. >> you take a look at airlines in your latest column.
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why? >> several things. i was on a flight -- i paid almost $1500 for a trip from newark to indianapolis. seated in the back row. wouldn't i at least get to come on in group one? nothing like that. that got me a little annoyed. then the industry was meeting this week the iata in miami and i started looking at some of the comments. we all know now airlines have four major characters, 80%. they're talking about discipline. they're not talking about on time departures. they mean let's don't cut prices or increase capacity. >> just today a jpmorgan says delta is going to raise prices by $3 a share.
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>> if i'm -- i wouldn't want to be using language like that but that's for the government to look into. i think we're going to see is the discipline going to hold? profits this year, the same conference said they're up to $30 billion. an all time high and historically some airline has always wanted to cheat and go rogue and start increasing capacity and cutting fairs. southwest has been making some rumblings that they might do something like this. again, once everybody started talking about discipline, southwest rushes out and says we're not going to break ranks but the next few months will tell. the summer travel season, if we're lucky we'll get bargains but not if the disciplines hold. >> it's hard to imagine flying becoming a less savory experience. >> i wouldn't mind an occasional empty seat next to me. >> twitter giving upmost all of
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the gains it got from the announcement. >> it's up about 7% yesterday. up about 1%. straight ahead, a shareholder's take on the shakeup at twitter. we'll be back. when you're not confident your company's data is secure the possibility of a breach can quickly become the only thing you think about.
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here is your news update. president obama appealing to house democrats to rescue his landmark trade bill. suggesting the bill was short of votes. it would give him fast track authority to do trade deals. iran and six world powers have resumed talks over teheran's nuclear program. they are taking place at the experts lev. a deadline for a final deal is june 30th. and the outbreak of mers appears to have slowed down. in seoul, workers spent hours spraying the inside of a public theet tore prevent the virus from spreading. former imf chief has been cleared of pumping charges in
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france. upon leaving the courtroom, strous cane said all that for this. what a waste. and that's our update for this hour. back to you. >> just want to mention the ipo a new company wing stop opening for trading. absolutely surging, continuing the theme. we've been seeing a lot of appetite for restaurants. the ipo went up 65% here in the opening trades. obviously a chicken restaurant chain and it has about 745 restaurants across 37 u.s. states and five other countries. this is a successful ipo. >> it's an incredible performance, especially on a day when you have bojangles' which is down. earnings beat on the top and the
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bottom line for that company but the guidance for the rest of the year buzz less than what analysts expected and you're seeing wing stop up 66%. >> and the ceo of wing stop is going to be on power lunch in the 2:00 hour. chicken is having a moment. >> it is. all those pour chickens who can't walk. i wanted to mention shares at gm. morgan stanley is restricted on the equity research side. it's true. a luncheon was cancelled. people trying to read into it does it mean something is going on? nothing is going on between gm and fiat. the reason they restricted equity research is because they view it as a hostile situation. the information ends up on their equity research website. there's nothing going on here that my sources tell me. you had the acknowledgment by
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mary barra of a letter that fiat sent. that was well over a month ago. >> an e-mail. >> right, the fiat ceo said he sent it and gm said they got it and there's no interest. that's all that's happened but that's enough for morgan stanley to say we're restricting on both stocks. don't read anything into that. >> it's clear that feuateiat views con salsolidation as the next step. >> a change at the top of twitter. we talked to dick costolo and chairman and now incoming interim ceo jack dorsey for an exclusive interview. we asked dorsey if wehe would consider taking the job full-time if it was offered to
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him. >> it's not a question i'm considering right now. we have a great search committee looking for the right fit for twitter long term. my focus is to make sure our product cadence and momentum of execution continues within the company and also to make sure square continues its cadence and its momentum with our strong team over there. >> joining us now is kevin lan dis, founder of firsthand capital on the phone. glad to have you this morning. >> thank you. >> now people are starting to say okay well if not jack dorsey, who could the ceo be? bob peck at sun trust says maybe adam bane who's the revenue office at twitter. or one of the founders. the list goes on and on but as a shareholder, who would you like to see? >> it's a big world out there with a lot of talented people. i don't think there's only one good answer to that question but i would say if you think
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it's wrenching to try to change your ceo try to replace them, re replacing the replacement is awful for morale. you want to take the time and do it right. i can understand putting jack dorsey back in that seat for a time so they can take their time and make a good selection, and i -- the way he answered that question earlier about whether or not he would take that job, you know i think there were reasons he stepped down from that job the first time and the reasons are probably still valid, but it's hard to think of somebody in a better position to really evaluate how someone can step in at the top. >> sure but what attributes do you think that replacement needs to have to carry the company to the next leg. >> when you're on the edge of innovation there, you're going
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out into the unknown. you're dealing with a lot of chaos. that's good. if you're going to be a disruptive company you're going to create chaos and live in a world full of chaos. sometimes invest or thes don't like that. if you look at twitter over the last year, there's a fair amount of chaos. i suppose we could distinguish between good chaos and bad chaos but you want someone who can navigate a chaotic environment. that's not easy. >> it's not and it's one in which you say you sold most of your shares in it. you still own about 200,000 shares of twitter. you sold most of your holdings. i remember when you got in when twitter was still a private company but what did you see when the stocks were at those levels that led you to believe you need to cash out? >> that initial investment we made basically after facebook
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fell apart, post ipo, you could pick up twitter shares nice and cheap. we felt once the company was public, that played out. that said we still in other funds and in other contexts do make investments in public markets, but i think that just didn't feel like the right time to be bay buying stock. down around here in the 30s, it gets attractive again. really what i think ends up happening is when people have loota lot of doubts about a company, that's probably when you want to buy stock. the north star of my thinking on this is there's no second brand here. even facebook had google plus to deal with. this is it. so we're sort of early in this revolution, and they have time to figure it out. they just need to get down to
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business and figure it out. >> there's an alternate solution and they're renewing the chatter about deals and takeovers. do you see that as a possibility and as a shareholder would you like to see twitter part of a bigger company? >> it's hard to complain about getting paid and that's why wall street always loves a good m&a. but it doesn't have to be that way. it doesn't have to end like that. i think that we don't really know what's going to be the value of this franchise. there is no debate about twitter's franchise. the only debate is about what it's worth. i'd like to see them keep trying to figure out how much they can make it be worth because they are in a much better spot than most other companies. >> jim cramer agrees with that you on that.
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we are all left wondering what the next step looks like. we'll have to have you back soon. >> thank you very much. >> he's -- jack dorsey's beard is trending. that was quite the question. when we come back let's take a look at market. we're seeing a decline for the dow. e we were looking at best week in seven weeks. a little bit of a yawn here on the broader markets in the past few weeks. we found stocks that could be poised for big breakouts. we'll name names for you own "squawk on the street" comes right back.
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welcome back. we're in a narrow range. the narrowest in 20 years in some parts but some stocks may be due for big pops or drops at least if history is any guide. we are here with a look at which ones might provide opportunities for summer. >> what traders are looking for aen the opportunity to find trading opportunity of pop or drop in the stock. we asked our data partners to take a look at candidates for maybe which stocks could be statistical candidates. we looked at russell 1,000 large cap stocks and looked for improbable price movements. basically when stocks go up or down by a lot in a short amount of time sometimes they're due for a pullback or reversal. we're looking for reversing 90%
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of the times with 10 times it's done it in the past. for some of the stocks we're looking at for the ones that are due for a pop. look at groupon, they have been on steady downdrafts but maybe due for a smaller type pop in that larger downturn. if you look at the stats, johnson controls tempur due for a drop. groupon, in groupon's case nine out of the last ten times we've seen levels go down they've popped at least a bit. kla ten cor has popped 39 out of the last 42 times. you can get the full story and more stocks online shortly.
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>> thank you. let's get to the cme group. we have the sen telly exchange. >> thank you. i'd like to welcome a first time special guest, thanks for taking the time bert. >> my pleasure. >> you wrote an article somewhat controversial. people enjoyed reading it. janet yellen is no stock market sage. you brought in two occasions when she weighed in on the stock market. it was about substantially stretched value weighs on biotech and social media. more recently i believe it was in d.c. at an event talking about the potential dangers of white high stock valuations. your thoughts on these comments. should they have been made? is it something we should look to see more of? what are your thoughts doctor? >> i do not think the federal reserve should make comments like that. first of all they don't know.
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nobody knows whether a stock or a stock group is too high or too low. biotech stocks are up over 40% since she made the comments. even alan greenspan couldn't do it. remember he made the comment ant irrational exuberance. if you bought when he made that comment, you'd be up four fold if you reinvested the dividends. one, it can't be done. the federal reserve can't and shouldn't do it and when they do do it, they're impolice italy giving people investment advice. if you listen and sell your stocks, put your money into cash into the mattress and bonds, if there's a bubble in the market it's likely to be in the bond market rather than the stock market. >> you know, as i listen to you, i can't get past the irony, whether it's valuations or the
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bubble in the bond market i sense a common demonnominator. can you guess who i'm thinking about, bert? >> of course if there's anybody complicit in the low yields for bonds, it is the federal reserve. they are the people who have had the major influence in doing it. and the problem for investors if they listen and get out of stock market and into the bond market as interest rates tend to go back to more normal levels people are going to take a terrible bath on the bonds, because the longer the bond the worse the capital losses could be when rates normalize. >> for the final 20 seconds we have, bert regarding the bond bubble is there anything that the fed could do at this point after fertilizing everything
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with respect to the stock market and, of course quantitative easing and policy pushing things down. is there anything they can do to mitigate the voillatility as the policies come to an end? >> my final thought would be i'm not sure that interest rates are going to rise very rapidly over time, because, remember the world is pretty much a wash in liquidity and if we've got a bond market bubble it's probably worse in europe than it is in the united states. but i think it is very likely that interest rates will prize over time and that's not good for people who hold bonds. >> thank you, bert. we're out of time. i could have gone on a bhielwhile. thank you. >> dow down 164. up next, uber hitting a
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roadblock in one of new york's most exclusive vacation spots. why don't they want uber there? they'll be joining us to explain after the break. automotive innovation starts... right here. with a control pad that can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a redesigned cabin of unrivaled style and comfort. the 2015 c-class. at the very touchpoint of performance and innovation.
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. summer is heating up, but if you're looking to uber it out to the hamptons you may be out of luck. the hot spot passing a new ordinance that requires uber to have a physical business address. a demand that uber says is impossible to comply with. putting hundreds of new yorkers in an uproar. joining us here at post 9, the man behind the legislation. here to defend it, east hampton superviseor larry cantwell. obviously the biggest argument you're hearing is it's safe why not? you have to protect people against drunk driving, why shouldn't they be able to take an uber? >> in east hampton, people take their quality of life very seriously. and on weekends we have hundreds and hundreds of cabs descending
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on places like downtown montauk, creating traffic and parking problems. we have cab drivers from outside the area who are sleeping in their cars. and creating public safety issues. that we feel we have a responsibility to deal with. >> i spend summers in montauk. so i know what you're talking about. it gets really bad there in terms of the cabs and all the young people. >> those young people. >> but i also know driving around those roads at night. particularly in the hamptons area, it's very dark there are a lot of people who are being ridiculous and stupid and driving drunk. why wouldn't you want to give people an opportunity to call uber and make sure it doesn't happen? >> there's no excuse for anyone to drive drunk. >> i know but they do. >> they do and all of us have an individual responsibility to take that seriously and we have options, as individuals. which are -- we can carpool. we can have a designated driver. we can take a cab. we can take public transportation.
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you know we have over -- >> public transportation? >> we have over 230 cabs licensed in the town of east hampton. >> i've taken a lot of those cabs, by the way. the guy who just came over from ireland for the summer 0 who has no idea where he's going and is driving really fast. i would rather have an uber driver. >> look, uber is a very popular service. and the truth of the matter is there's no reason why they can't do business in the town of east hampton. as long as they want to cooperate with our local law. what's really interesting, david is since the announcement that uber made to withdraw from the market in east hampton, we've had phone calls from a number of their competitors who want to come in and comply with our local law. there is a way for uber to do business in the town of east hampton. they just have to conform. >> so it's not really about the traffic then. if you'd be willing to let one of the competitors come in and operate there, it's not really about the traffic? >> it's definitely about traffic. it's about car drivers that are coming out from the metropolitan long island area who are sleeping in their cars in public places over the weekend.
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creating all kinds of issues in the community. and the community especially in places like montauk is very concerned about it. and we're going to try to deal with did. >> does this have to do with pricing at all? it's not exactly transparent, those taxi cab prices. with uber at least you know when you're going to pay a surge price when there's a lot of demand. >> yeah. one of the provisions of our taxi law requires all cabs to post a rate card in their vehicle. >> so there is a standard. >> now meanwhile you're closing the helicopters to the east hampton airport. and you know where they're all going? montauk. >> that's not true. >> you're going to make things even worse up there for us. >> they're not going to go to montauk. >> they're not? >> no no. >> all right. >> you don't have to be worried. do you live near the montauk airport? >> yes. >> have you gotten a lot of hate mail? >> hate mail? no, look uber did an aggressive public relations campaign. we received over 1,000 emails
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from their clients. look, uber is a great service. this is not about opposing uber. this is about uber adjusting their business model slightly to conform to what our community really wants. >> larry, thanks for coming in and sharing the story. larry cantwell is the east hampton supervisor. late anywhere "squawk alley." we'll get uber's side of the story with uber's general manager from new york. let's send it over to jon fortt with a look at what's coming up on squawk alley. >> we've got a great shower for you, twitter, new ceo same as the old ceo? jack dorsey going to be back on an interim basis. we just had him and dicko costolo on cnbc and dick case is going to join us he knows a thing or two about running a company that's going through transitions and uber we're going to have their response to this whole hamptons controversy. coming up on "squawk alley." tune in.
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good morning, it is 8:00 a.m. at twitter headquarters in san francisco, california. 11:00 a.m. here on wall street. it's also the premiere of netflix's, "orange is the new black." and "squawk alley" is live. ♪ ♪

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