one of the two fires now threatening homes in california on wednesday, august 20th, 2014. we're going to start the show, "squawk box," right now. >> good morning and welcome to "squawk box" right here on cnbc. we're going to start the broadcast with a disturbing video this morning. islamist militants released this photo along with a very graphic video of an apparent beheading of american journalist james foley. he disappeared in syria two years ago. isis is now prepared to kidnap another player. we're going to have a live report from iraq in just a couple of minutes. then we'll talk more about the role of the u.s. in the middle east with former national

security advisers sandy berger. that's going to happen at 7:30 a.m. >> did they put any more? that's why you don't do it the first time. >> there is an ongoing debate about how you deal with terrorists. i -- he's referring to what happened earlier this year. >> sheerl, i know. work with me. >> i am. >> he d-- came back, still hasnt met with his parents. we don't deal with her any more. i wanted you to make it a complete sentence. >> we're going to continue this conversation and i imagine this debate. >> i know you weren't thinking any more, but -- >> what do you mean not thinking any more? >> you should have been. you're a news man now. >> in some instances, we have

traded or done things -- we have negotiated with terrorists. for me, there's at least one side or maybe a certain thought that maybe that wasn't handled very well. >> i'm curious in this situation whether the government knew about foley's whereabouts having been kidnapped two years ago and haven't heard from him since. >> any journalist in that part of the world now might as well be signed up for the -- you have to be brave. >> yeah. we also -- >> think about what we do every day. >> it makes us feel very -- >> do you ever think that? >> no. >> that's the point i'm making. >> right. >> that's the point i'm making. >> i'm a new jersey man. all right. i worry about going into the city for you, the only city in the country that we now know that you classify as --

>> well, for you that is dangerous. >> corporate news. >> there is a lot going on in the corporate world today. hertz is withdrawing its full year financial forecast. the rental car company warns it now expects results to be what it calls, quote, well below its previous guidance. the company blames businesses challenges and costs related to a review of the past three years results. i've left herds with a limited vehicle availability. shares being punished on the news they were down. its competitor was down as a result, but andrew, if you remember, the company had to go back and restate some of this financial reports from prior years. then they were looking into the accounting for other years. so it seems there are a few more issues than just the macro environment for car sales and investors have been shorting this stock for quite some time,

anticipating that bad news out of the company. >> right. >> joe is looking at lowe's, right now? >> remember, we really wanted to see this. because we were wondering -- >> home depot. did better than anyone else. we were wondering, is lowe's going to do as well? these numbers are going to -- 2 cents ahead of ennings on expectations. full year is seen at 2.63. that's okay. it was at 2.61 before. but they are talking about same-store sales. sales up 3.5%. so this is not a -- in home depot's case -- >> everything was positive. >> exactly. home improvements continuing to progress in tandem with the

strengthening economy. i guess a word that fell off the end of my screen here. that's probably what we're talking about. sees total sales off for the year. that is in line. >> when i look at their earnings, does it say something about them? meaning the operations of these companies?

but lowe's -- >> sometimes it's more friendly because you go on to home depot and it's just big. >> yep. >> stocks everywhere, high up where you have to get a crane that gets down. home depot is different. home depot is different. >> there's a lot of pricing pressure, too. i think the companies have said loud and clear that the house market recovery was strongest last year. and while we're still seeing some recommend ever remnants in that, it will continue to taper off. >> it was so good yesterday. >> it was. there were some saying expectations might have been too low for home depot. that has been guiding too low and maybe lowe's is on the other end of that scale.

>> things have been -- all systems go since they came on. we bring up the picture of him because i mentioned him and then -- i don't know. not that. >> no. we need the picture with the apron because we got our own. >> yes. >> friends at low's, they're just blue. >> but they're not orange like this. and they don't look like frank. have you seen frank? hey, come on in. he looks very friendly, and he is. he's a nice man. we're going to talk a little bit more about the home retailers in a few minutes. we also want to talk about shares of am which in the last day they've been getting some attention. the tech giant trading above $100 a share yesterday for the first time since its stock split 7/1 earlier this year. among the catalyst, excitement about the next iphone. not the only tech name getting some love from investors. on its strongest five-day winning streak in four months, closing degreed at its highest level since march 2000.

45.27. it's been near a 14 1/2 year high. all of that value and more. >> can you explain do me why all of a sudden everybody is so excited even though they haven't come out out with a new product yet? i can't understand the math. >> this has always been a stock where buy the rumor and sell the news has been applicable. not only are you going to get the iphone six, but it's coming in tandem with the rollout of health kit and some of these new

software platforms for developers that apple is now basically building an ecosystem that will be interior to some of its competitors that might be lagging on this software side. so i think that they expect this new device to be fully compliant with some of these news technologies and they really want to see what it looks like. >> thank you, miss squall alley. >> well, you know, i'm just telling you what they say in that apple. former microsoft ceo is looking to spend more time on his pet projects. ballr has become the biggest individual shareholders in microsoft with a 4% stake. that's $15 billion. it was always said that once nadella took the reigns after that transition was complete that perhaps it would make the most sense for ballmer to get

out of his hair. but then again, he's the largist individual shareholder, so we'll still be hearing from him, i think. >> my question may be different. now that he's off the board, does this mean he's a net seller of microsoft stock? >> in likelihood. >> so we're going to see a sell down of significant stakes. is that what's really going on here? if you're on the board, you're going to have to disclose every time you want to sell. >> maybe he'll put in place some sort of -- you know, prescribed selling plan where you sell a number of shares every quarter. how long does that last? >> six months, eight months, i don't think it can go much longer than that. >> so we'll see. in other corporate news, citigroup is reportedly claiming to sell its japanese retail banking ventures. another stock to watch this morning, now i have $3.

i have a hamster, a beta fish, i have other -- the company announcing it's going to explore a potential sale. you go in thereabout, you can't believe the bill. the pets flyer retailers is great where you have, you know, z 400 million -- >> i also have no pets. >> from activist investors janet partner. but you go -- seriously, you don't ever get out of there for less than $30. if you buy some fish food and a couple of filters. then if it's dog related, then you're really -- >> i had a turtle as a child. i love when we do this. the last time we went into it, you got to michael jackson changed your life and you used

to wear one glove. on the air. >> i'm sorry i missed that day. >> you didn't read about it? >> let's see what's on today's agen agenda. let's tell you what's happening. while you were asking us that, quarterly results coming up for target and lowes. staples, american eagle outfitters, all of that is happening before the bell. coming up this afternoon, we'll hear from hewlett packard. on the economic front, we'll get minutes from the latest fomc meeting. the notes coming, of course, before the annual fed gathering in jackson hole and that gets started all tomorrow. sglt meantime. quick check on the markets. right now, looking at the nasdaq. in the world of energy and oil,

right there, wti crude, the number to beat 95.57. we'll tell you about the ten-year. i don't -- you know, the yields at 2.4% or 0.5%, is that what is -- is that what's really impacted the markets over the past week? i'm just telling you, if you're the fed and if you're a central bank around the world and you are staying where we are, the gop program to move up and that's what they wanted. that was the idea in the first place, right? to have fair wealth. i don't know whether it has or not. but what are you going to do? >> under the mattress. >> i was going to say, that's

one of the reasons why the u.s. treasury market is benefiting. because the comparative yield again is obviously about buying a u.s. security. >> it loses and like a play where you can just -- the person in the play can turn, right? >> michelle is -- >> chime in. exactly. we'll be here. >> who is supposed to read this? you are. >> i am? >> you are, ser. give us an economic pulse check. michelle gerard and michael hanson are joining us now. you're not that handsome, are you? >> no. >> ", okay. there was a different one. >> one of the reasons people look at what's fueling the command for treasure yields.

too buy a ten ever yield treasury number and people are doing that. relative to many other yields aclose the loss so that's one thing to coop in mine for termy. >> i think even though the u.s. might look good on a relative basis, that is still boosting you a little bit when you think about growth globally. >> certainly. but i think a lot of that in the end benefits the u.s. treasury market and reip forces the idea that we've got a slow global environment, we've got central banks likely to keep rates low for an extended period of time. the u.s. maybe after the u.s. may be moving eventually in the other direction. we'll continue to see easing monetary policy for an extented

period of time. >> wait a second. i think in the bond market right now is a bit scary. just how strong bull growth is going to be. they've fumbling along. practice the deflationary environment, sounds like it might move. 0.4% is far enough, just below 2% that it's not going to get the -- >> what you mean or less. >> they're scared about how weak economic growth is. >> generally speaking, he hear a lot about stagnation and this has impacted the bond market globally. it looks like the fed is not going to be exiting very soon. >> hasn't the bond market always been like that? the bond market usually tends to get the general story right.

now with this new fed policy of forward guidance let alone qe, the policies may be more -- one of the things we're seeing reflected is this continued guidance with the fete that they are going to be different when it comes to raising rates and the paints -- this has to be wrong. but every time you do, you get punished. and i think to some extent, there are people who are just going to have to wait and see when that time comes. >> late 16, early 17? >> someone said that. nonpossible, right? you worked people relatively terrible about in here 37 still

stopping in a different wlas. the committee as a whole is drifting. but we know with all due respect with plosser and fisher, you have obviously very strongly held views. we're at a different place than the rest of the committee is. >> obviously, you did get a hawkis dissent. you've had a couple of fed officials suggesting that the fed should be moving more quickly to the exit. and the minutes always get a platform. you air their grievances because everyone talks, not just the guides who vote. but i think that the underlying message is the one that came up in the july statement which is now they've reoriented themselves. and i think that new lk is going to be with us for a while. >> i think to this fade we're to

get to get a more aggressive pack of rate hikes that has been decided. so when you get some of these signs that they're more competent, that they're moving towards the object i haves, which might suggest at some point to raze rates, you're going to have the counter of we've seen a lot of justification for moving slowly when the rate hikes do come and keeping policy more accommoda accommodating fop a long period of time. so it's going to be kind of a balance of information that we can see. >> is you guarantee we would have no recession in the next five years? >> oh, no. >> there are people that come in here that are sure of that. they think they have it all figured out. and none of those things are

anywhere near the hut. the reason i ask, we have no power. this is not a bad economy. we're throwing everything we've got at it. >> and what worries me, the fundamentals are pretty down. there isn't necessarily a risk i would say about a huge inventory risk. >> it will ultimately create some sort of asset bubble. that we haven't identified, even though we're trying to thirg about it. when that replaces, it triggers an event that end d up kissing the scales. it would be something along those lines that i would say i can't do it -- >> and too big to fail, too. there's only so many asset classes, aren't there? >> what are we missing? >> it always ends up getting us. it wasn't necessarily the subprime market. it was the interconnectedness of the financial markets and it's

very difficult to discuss. i don't think there's a high probability. >> how long before you're 99% sure you don't have it? two years? >> who knows. >> it's not on the horizon. >> we have to get out of this recession. >> the fed is not going to hike rates. >> is it when you look at what's happening, the people that plan for the future and with companies, the whole wash thing, it's a balance sheet recovery. it's all based on assets. >> either households or a corporation. one of the benefits of low interest rate environments has been a quick deleveraging with relative pain.

we don't know where it will be. so you -- splat. >> that's longer term. >> sitting here commenting and laughing? >> you have stuff to do. >> they have to go to work. >> thanks, guys. when we come back, why the nfl is pushing pay to play. you're not going to believe this story. at the europe bowl laugh time show, we think everyone is taking notice. plus, peta buying shares of sea world. you heard that right. the details on what it all means when "squawk box" returns.

activist investor this week, animal rights group peta said yesterday it's buying shares of sea world. peta said the has scooped up more shares in the company in order to retain the minimum investment it needs to propose shareholder resolutions and submit formal shareholder questions. any shareholders must hold 2dz,000 of stock in the company in order to submit one of those shareholder proposals. peta is not a big shareholder, there's about 135 shares in the company. the organization needed to buy more shares to meet the minimum because shares of sea world have tanked of late.

now, sea world and peta have been going at it for years over the treatment of its orca whales. sea world made this statement, peta already holds sea world shares. despite their claim to the contrary, sea world animals are well cared for and their health and well being is a responsibility we take extremely seriously. we are proud of our world class standards of care. >> this isn't the first time pita has tried to influence that company. it holds shares in dupont, pfizer, amgen. something unlike many people have ever seen. >> well, they did have a little -- a big issue with the documentary that happened. blackstone, you weren't shocked? >> no, not really. >> it's one thing for a company to come out and say this has had no effect on it.

in fact, it has actually increased attendance and then to completely do a 180 at the next quarter. >> how about people on twitser, joe? >> i think that's a little bit different. >> i don't know. when you're a private company, you can. you can choose who gets your shares and you can choose who your employees sell their shares to. but anyone can buy the shares. so we will see how that battle turns out. meanwhile, the nfl has a new idea to generate revenue. "the wall street journal" reports the league is asking artists who want to play next year's halftime show to pay to play. rihanna, katy perry and cold play are being looked at. but the pay to pay reception is not going over well, as you can imagine. normally you get paid to play.

>> apparently what happened over the past two or three years is the nfl has watched. these performers have done the halftime show and immediately that night or the next day clipped their concerts sales. tickets go on sale immediately and they've seen them, beyonce had this huge record breaking concert tour. so they now think to themselves, we should get a piece of this. that doesn't -- i don't understand how -- i just find the whole thing shocking. >> do you think roger goodell was thinking? >> i just heard the cold play and i didn't realize we were doing a story on it. i just thought you were starting to get involved with the musical selections. >> i don't macrame my jean shorts during the commercial break. >> should i be thankful? >> it's an old carl book, actually. >> not exactly. >> from the movie.

>> who has the most say over commercial break music? >> me. >> you? >> yep. >> how do you choose? >> i don't really think about it. stuff i hear. it just depends on what strikes me. >> all right. >> who chooses -- the framed poster of asia that you still have, the one-hit wonder? remember? that was another one. who picks it on squawk alley? >> carl is a music buff, so -- >> i know. >> there is a lot of stuff that i've never even heard. >> carl noens alternatives and -- >> he's a big fan of morris is ey. >> so am i. a genius. but it's crazy. >> i had -- >> mo orrisey is a guy -- >> a little bit more country, maybe, being from georgia. that's more up my alley, but -- >> current country. >> current country. >> like lee brice or something, right? who? >> ed aldridge, dixie chicks,

all that. >> dixie chicks? politically in line with them. snapchat meanwhile is becoming a popular app for people who don't want their messages or photos to hang around. now they're talking about advertisers or companies talking about discovery. it would show content or ads to users. the launch is in development mode right now. discovery is set to launch in november. oftentimes, they look to see what people say about it or whether users would respond favorably for it. i'm not sure that i would want news to disappear after reading it. maybe it's for people who have limited space or storage on their phones so you don't have to save and download. >> i would think if you're an advertiser, you would not want your advertisement to disappear. how often do you think of something, you see the ad and then you want to get find it and you forget how to get there?

knows it's the same thing. >> you can skip the ad. then poof, it's gone. >> i've never done anything based on an ad. that's why i wonder how the whole business model works. do you see ads and go -- you know, just while we're talking about this, there is what i would have talked about if someone gave me an opportunity to pick what we're going to talk about here. private sector -- >> uber. >> yeah. anti-private sector, every possible obstacle he could talk the president into in terms of making it more difficult for companies to operate here, so how much do you think he's getting paid at uber as he cashes in the corporate world? mega bucks. >> a couple million. >> but what about stock? >> that will be interesting. >> oh, my god. are you kidding me? these guys all -- it is classic. he's one of the worst. i get -- someone gave men to me or -- >> someone gave you money?

>> gave money to the obama administration -- >> it's all making sense now. >> someone gave money to the obama administration. >> on behalf of -- >> on behalf of an ex swap. so i get all the -- the president is always asking me to do things. it's like hopefully from barack or from commercial. but i see proof. someone probably writes this stuff for them. but it is -- they don't worry about the propaganda that they give me, but i'm reading it totally with appear eye because other people read it and agree with it. and i answer. i go you're kidding, right? but they never answer back to me at this point. don't you get them? because you do give money. >> i don't give money. i don't do anything. i'm ride down the middle. >> oh, yeah. coming up next, new fears about ebola in america. the breaking details right after this break. plus, lowe's shares making a

hidden remark. we're going to go inside some of this is numbers. as we head to a break, take a look add yesterday's winners and losers. "squawk box" is back in just a moment. [ woman ] the cadillac summer collection is here. ♪ ♪ [ male announcer ] during the cadillac summer's best event, lease this all-new 2014 cts for around $459 a month or purchase with 0% apr. hurry in -- this exceptional offer ends soon.

or purchase with 0% apr. so what ya got on deck? skyfall. lean in, then some pinterest, you? twitter. minecraft and then some hunger games. boom. wow, you guys are all set, huh? oh yeah, new amazon fire phone. it comes with amazon prime - tons of cool stuff for no extra charge.

really? it comes with amazon prime? yeah, there's so much to watch. i've been on this earth nine years, i've never seen anything like it. the new amazon fire phone, with a full year of prime included. exclusively on at&t. good morning and welcome back to "squawk box" here on cnbc. i'm joe kernen along with andrew ross sorkin and kayla tousche. you see, now your name has me messing his name up.

>> the orca whale. >> sorca? >> the sorca whale. >> barack obama is off -- >> there's the sorca whale. a developing story, a hospital in northern california is treat ago patient who might have been exposed to ebola. the patient is at south sacramento medical center. the cdc is going to test blood samples. the patient is in isolation. why would he have been exposed to it? isn't that an important part of the story? did you see that? >> i did see the story. we're just going to tell you that he's in sacramento and he may have been exposed to ebola. >> this is true. >> i need more. in the meantime, let's tell you was going on with lowe's. following that big home depot number, rival lowe's beat estimates with its quarterly

numbers. however, trimmed its same-store sales growth outlook numbers. here with us is brian eggel. he did join us yesterday. you were a big fan of what happens at home depot. it was hard not to be. i asked you whether home depot was a bellwether for the whole industry. we had lowe's and they can't seem to keep up. >> it seems like it's the case every time. if we look at this lowe's report in and of itself, it looks pretty good. it's just not quite as good.. >> when you look at what happened to lowe's stock yesterday, you're looking at the premarket right now. lowe's is off about 4%. is that a function of the fact that people looked at the home depot numbers and thought, wow, lowe's may beat in a big way, too, and now they're looking at what's happened this morning saying -- that actually -- was it the expectation that was raised in the past 24 hours that's putting the pressure on the stock this morning? >> most likely.

and i think this pretty market action is very early here. but i think it's more of a knee jerk reaction in the marketplace. >> especially if you've been looking through the release my team and i have. look at them lowering the sales guidance. the way it's worded in their press release, it's reflective of weaker sales earlier in the year. they're not changing their outlook, which i think is more a positive. >> what is that a function of? now is it back to to the weather question again? >> it's probably a lot of the weather. it's a short release. but they made the comment something to the effect of they got most of the weather. related problems back in q2. so they probably didn't capture everything that was lost in q1 and as a result they're adjusting full year guidance. >> they say home price appreciation is the most important thing for these companies. if you feel like your house is an investment, you're going to buy things like appliances to spruce it up. there's the expectation that growth in home prices is going to slow it down.

how much do you think that is going to have an effect on the rest of the full year for lowe's? >> i think so long as home prices continue to rise, it's a positive. i can argue that if we see some tapering at the rate of home price appreciation, that's a positive, as well. what we could have happen then is housing turns, sales begin to improve. so in any view, as long as we have home prices climbing, it's a positive for this home improvement sector. >> brian, thank you for joining us this morning. >> thank you. appreciate it. when we come back, "squawk box" gets political. a live report from iowa where one race will determine whether republicans or democrats control the senate for the last two years in the obama administration. as we head to break, let's check out the dollar and see where it's trading right now with the rest of the market futures in the red, takes a look at the dollar, "squawk box" will be back in two. ♪ ♪

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it's 2 1/2 months away from the elections, which is why we find our own john harwood. it's the heartland. there are people in new york, i've read in the "new york times," certain open he hads that say that iowa should get the ball rolling in the political process with the primaries, that those people are the ones dictating things that to them, it's sort of an -- but thank you for going there and, you know, not complaining too

much. >> joe, i can tell you that this morning, the harltland has a dark heart. we had a complete pitch black power failure in our 28-story hotel, which i marched down the steps through the stairwell to make this hit so i could talk to you today about the export/import bank. and the -- >> okay. >> he is. >> yes, i am. we had a little crazy weather. >> i want you to go back up there, all right? >> that will help. >> that's what i'm going to do after this hit. but we've got a did want debate raging in washington about the future of the export/import bank that's gotten caught up in the midterm election because eric canton, the house majority leader defended the bank which many businesses support was defeated in this primary by someone who opposed the bank and kevin mccarthy who replaced eric

cantor came out and said he was opposed to it, too. so i'm out here looking at the senate race for an open seat, tom harkins retiring. you've got business wanting to see how this debate is going to come out. we went yesterday to vermeer, which is a company that makes industrial equipment, construction equipment, and talked to their executive about the export/import financing that they have pending right now. it's actually a loan guarantee for a $10 million sale to saudi arabia. i asked darrel buchamp who is the executive who does international deals for vermeer whether he considers himself as the tea party has said a crony capitalist. here is what he said. >> i don't view myself as one and neither to other iowa companies using the resources of the bank. we think that is a misnomer, a myth, and this is crony capitalism. it's non-exclusive.

the bank is available for every u.s. exporter regardless of size. >> when you hear the public arguments against xm, do you think that's a bunch of demagoguery? >> i do. i think there's some words and some populist rhetoric that is being flown around that is just not appropriate, that is used politically. we're a company that is conservative fiscally and socially, but in this case -- and we're all for profit based or government and government in its proper role to support the private sector to enable us to do its thing. but in this case, we really see that bank enables the private sector to do its thing. >> now, we got some good news afterwards for vermeer and other companies who depend on the bank from joni ernsten, republican can the candidate. press accounts said she had not taken a stand on xm. and when i talked to her, bruce

bailey had supported, like most democrats in congress, has supported this continuation of the bank. he's the democratic candidate. but joni ernst had not been quoted, at least in the news accounts, as taking a stand. when i asked her, she indicated that she was going to support the bank. here is joni. >> i would want to look at it carefully. but iowa's economy, we have many spin-off industries, like vermeer, we have john deere and they rely on the bank to do that. and as long as other countries offer that opportunity to their exporters, i think that is something that we need to offer to our industry, also. >> so, joe, regardless of this outcome of the race in the fall, which will be critical to whether democrats or republicans control the senate, you have a sign in the air there of where

the debate might be headed, including overnight, you had some more controversy. darrel isi is i is doing an investigation and trying to force him to give up some records of some allegations of kickbacks. but it does appear to me from the conversations that i had here that there's a good chance that they're going to survive. >> john, i think we need three parts. we need the democrats, the republican parties and there's a tea party. and thing like common core or xm, i mean, it's like a rand paul thing, isn't it? sort of an isolationist pp -- there are really three parties. but the tea party has not fared well recently, so i don't know, democrats love the dissension in the ranks of the republican party. i just wonder how it finally plays itself out. we're seeing it, you know, case by case, john, and you know to the different states where it's playing itself out, the tea party hasn't really had a win recently, have they? >> well, they've certainly

forced the republican party to move in their direction. they have had some wins, they've had a lot of defeats in some high profile races -- >> eric cantor -- >> how about the win -- >> i don't know if anyone is leans are drawn? >> yes we care about thisp troic. the there are people in business who care about this topic. does this topic resonate with the general american voter? >> not at all. my point was that it is a pence debate if washington that will get settled in walk. if you got somebody like joni ernst, she came out of nowhere. she's a state senator in iowa. people had been watching that republican primary, is she tea party? she doesn't identify herself as tea party. although, she has a considerable amount of tea party support. if she as a few senator would come to town and say, you know what, i think we need in the interest -- >> we got to go. >> where the debate is going.

>> the libertarians and the left on a lot of issues are suddenly arguing the same thing. it's weird a. lot of young people are libertarians, they're not social conservatives. crony capitalism is libertarians and the left don't like. you might -- >> call paul ryan to talk about all this. >> decide where you really are on some of this stuff. >> you better look pence your soul. >> my soul is settled. coming up next, thank you, john, a former nfl coach chimeing in on the washington redskins nickname controversy find out what mike ditka had to say right after the break. to your rheumatologistg about a biologic... this is humira. this is humira helping to relieve my pain. this is humira helping me lay the groundwork. this is humira helping to protect my joints from further damage. doctors have been prescribing humira for ten years.

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. >> in an interview, ditka made it clear as far as he's concerned he had no plans to refrain from using a nickname as some nfl announcers have said they are considering. ditka says in his words, what's all the stink over the redskin

name, it's so much expletive, so much crap that it's incredible. this is so stupid it's appalling. i hope the owners keep fighting for it and never change it. later in the interview, ditka says it's all the political correct idiots in america, which would be a lot. i don't know how many that would be. but you need scientific notation. that's all it is. it's got nothing to do with anything else. we're going to change something because we can. this is something that i mean to get you guys to weigh in. i'm not going to weigh in on it either. here's what i'll say. he says it's actually a tribute to native america and that that's what it always was. then we haven't ten -- we can get into it. >> saved be i the bell. >> he's not native american. so he doesn't know, a lot of

politically correct redskins fans. >> it will be interesting to see how the nfl comes down on this. the discovery of a lifetime. one family's baseball card collection t. romantic road show is here to tell us all about it. [ male announcer ] don't just visit hawaii. [ squeaking ] [ water dripping ] visit tripadvisor hawaii. [ whistling ] with millions of reviews, tripadvisor makes any destination better.

. >> good morning. u.s. stock futures points to a negative open on wall street. this as stocks are quietly rallying to end the summer. the nasdaq hits its highest level since the height of dotcom

boom. rental companies are starting to feel the pane. shares are getting punished. plus, america's fastest growing companies, "heat" magazine taking the latest rap off the rankings. all as is second hour of "squawk box" begins right now. >> good morning. welcome to "squawk box." i'm here with andrew joe sore ken. the crisis in the middle east, every paper shocked to see it. islamist militants released this photo along with horrific other photos and graphic video of another one of those, remember a couple years ago the beheading of daniel pearl. now we got another american journalist james foley who disappeared a couple years ago in syria on thanksgiving. isis is now threatening to kill

another kidnapped newsman unless president obama stops airstrikes in iraq. the u.s. again as we talked about earlier says it will never give in to terrorist demands. we talk more about the role of the u.s. in the middle east. but a former national security adviser sandy berger at 7:30 eastern. >> let's check the markets at this hour. the futures have been negative all morning right now the dow opened by 17 points, fax down by 5. the s&p down by 3. we should note those are off the lows earlier in the morning after parents from europe and asia did roughly the same thing. meanwhile the ten-year note 2.40, prices continue to rally in the treasury market as global interest rates are low. so that's quite chart, andrew, people have been saying 235 is the absolute lowest. on friday we saw 232. >> we have mark grant claiming hopefully it's going under two, soon. watch for that. in the meantime, let's get

you caught up with headline, retailer lowes is under a lot of pressure. it bo et the street estimates. earnings and same store sales, its full year outlook for same store sales growth off. that's what's hitting that stock this morning, off about 3% in the pre-market. u.s. homeowners are doing better at paying their emergency on time. transunion reporting the percentage of homeowners were at left two months behind on payments fell to a sex-year low. >> that number has been steadily declining. we are watching slayers of office supplies, retailer staple's this morning. >> that company reported a second quarter profit up 12 cents per share. that was above estimates. however, its profit was 20% below a year ago. joe. >> among the morning stocks to watch is hertz, the company is withdrawing its full year financial forecast. a large number of recalls by car manufacturers have left hertz

with limited vehicle availability and hertz rntal car revenue phil lebeau joins us from chicago with the story. things should be going for hertz, you would think. that's why it's a little of a surprise, right? >> well, they've got some intern am issues that are a part of this as well, joe. there is no doubt the recalls, which are a record level this year for the auto industry is hitting hertz and the out rental companies, in fact, i've seen this myself when i have gone on trips, increasingly at the hertz counter, hold on a second, we have to lower the full-year guidance, they've actually pulled their guidance altogether. >> that i have said, look, what we're expecting will be well below the hoest previous estimates in full earnings gains, they are also reviewing their 2011 to 2013 financials. they've already said in the last couple of months, they've already found about 46.3 million

in accounting errors when they go back and look at financials the lead independent director announced he is leaving the board. what is getting attention is hertz is blaming the massive auto recalls with them having to lower their earnings. keep in mind, they are pulling thousands of vehicles out of their fleet. they can't put them back in until there are parts to fix those vehicles. many of them being general motors' vehicles under recall and as a result they've got a tight, you know, supply there and it's not enough to meet the demand that is out there. they're also facing some operational challenges. here's the two q rental revenue hertz announced yesterday. in the u.s. up 4% international 7% and equipment business up 1% as you take a look at shares of hertz, don't be surprised if we see this kind of lingering for a quarter or two as hertz and the other auto makers deal with this wave of recalls out there they are trying to work their way through.

when you just don't have ten or 12,000 vehicles that you are supposed to have. that's just an estimate i heard from people. that's not just from hertz. when you are dealing with that much of a drop in terms of supply, it's going to hurt the bottom line. people eventually say, wait, i need a vehicle from somewhere. if i can't get it from you, i have to find it somewhere else. >> phil, in a totally different subject, i just happen to look over at regular gas today $3.20. when is the last time we were that cheap? do you remember? >> i want to say it's about two years ago, that's just off the top of my head. >> what's happening is i don't get that and we have been arguing with oil people about they say oh, well, we should be much higher given the geopolitical news, but we're not. but we're still high and is the crack spread going -- >> we came through the refinery season. when they bring them down in the spring and early summer.

that's usually when you see gas prices moving higher. we can do that season in better shape 457b than in the past. typically they have a tendency to drag on. you see refineries on for an extended period of time. that was not the case this year. as a result, you are looking at a supply at least on the gasoline side in robust shape. that's one reason you are seeing gas prices down in that 320 range. >> not all different forms are fungible. i'm waiting for the day when the natural gas boom that will be so beneficial to the country, when it just has expressed in btus, when we actually see things not wage replaceable. not natural gas, you can't utes electricity, but you would think that that's going to be, exert some downward move. >> absolutely. i'm wondering if we are seeing it all right. why is gas, i don't know, i'm hopeful. >> that would help the economy a lot.

it's like a tax break. >> i think a lot of people would like that, joe. >> all right. 320. well, has jeevs brought that up with you? >> raised the issue. >> what about, i have another, is helicopter fuel, is that the high, where is that? have you noticed when you are at the pump? >> i don't know. what does the helicopter run off? >> you don't even ask, right, you want to make sewer there is two pilots and two engines. >> that's the first question. two pilot, two engines. >> a quiet summer rally continues. the nasdaq closing at its highest level in over 14 years. the s&p 500 is within shouting distance of it's all time high. joining us is o'shaughnessy asset management and paul hickey, co-founder of the you spoke investment group. you know. >> i butchered the name before. >> that's on purpose. >> that's a classic thing on

"samberg central," the guy talked about o'shaughnessy. >> the nasdaq is the thing that's hitting the new highs. do you have nasdaq stocks? >> in our aggressive growth. we have a lot of nasdaqs. >> you have been pitching the other stuff more? >> if you take in $10,000 bucks into u.s. treasuries in december of 2008, right now, you are 11.5% under water after inflation. so your 10,000 is now about 88,850. so the fed is really giving investors no place to look except risk assets. >> but you haven't moved as far out as maybe some people think you should have on the risk curve, right? >> well, we have some very aggressive stuff. for example, we have a microcap portfolio. that is very risky. i have been talking dividend because that's what i have been getting feedback on. you know, lots of middle aged people saying, you know, we're in the worst environment for

income in 160 years. what can you the to help us out will? >> now me, middle age now is 55 to 75. i don't know about you guys, is that your parameters? >> yeah, that's about right. >> what we're finding is baby bombers are basically, you know, getting to retirement age, right. and they're looking around saying, well, the bond is going to give me under 2%. that's not the kind of income they can live off of. so we've developed a portfolio called a dividend which looks for stocks that are very cheap, financially strong, have good earnings quality. so they're not monkeying with the numbers and then high dividends. and so. >> that will serve you well through a lot of different markets? where are you, paul? >> well, i think to jim's point, too, the nasdaq has been loading the way. you have microsoft, some of the largest companies in the nasdaq

are high dividend payers. but overall, what we're looking at, we're focusing more on a u.s. centric approach. so we're looking at domestic companies and one sector to watch is the consumer discretionary sector. it had a great 2013 and has been consolidating all year. what you were talking about joe before the lower gas prices, people haven't been talking about that gas prices are usually at their highs of the year. right now we're near the lows of the year. >> that will be a dig big tax break. have you employment which has only improved this year. have you housing which is improving and the manufacturing is improving. most of the stuff we buy comes from overseas. so i think on the consumer discretionary sector. >> that sector is finally starting to get some legs to it now. i think you could see strength going forward for the sec half. >> when you have interest lates as low as they are. gas as low as it is, why isn't consumer confidence as it was in june? >> well, you look at the

geopolitical headlines, they're scary, at the same time -- >> do you reallily the in all honesty people read the headlines of what's happening in the middle east and say i'm not going on vacation, not going to home depot, to look for shoes for back-to-school, whatever, for the kids. to me, it's like some weird disconnect between that to me that's like an excuse for something else i can't put my finger on. >> when we talk to clients, clients will call us. they're referencing the headlines, so it definitely affects people's impacts. what i was going to say the geopolitical headlines cause worries. when the market sells off on it. it's an excuse to sell off on it. we've had problems in the middle east for decades. >> i imagine your clients call and i say want to buy or sell based on the head leans, i'm not saying they want to buy or sell their sneakers or whatever they're doing in real life head leans. >> i think it's all at the margin in the market and with the consumer. when you see these, people are negative on things.

we had a slow recovery. but we are recovering, nonetheless. >> jim, final word before we head to break. >> i think this is sort of as my friend josh brown put it the age of net. we got all this good news in the market place and people are feeling very despondent to your point. >> such a pleasant place to leave us on this wednesday morning. we got to go, thanks for joining us this morning. >> thank you. >> when we come back, "ink" magazine, the man behind the rankings and check in with the ceo of one high flying tech company 345ik making the list for the very first time. then later or news maker of the morning, paul ryan the powerful house republican is out with a new book today. he's not holding back any punches, find out if he's paving the way for a 2016 presidential run. hemojoin us at 8:00 a.m. eastern on "squawk box."

welcome back to "squawk box," a live shot, time's square in august here, "ink" magazine is unveiling its 33rd annual list, the list highlighting the 45u6789 fastest growing private companies and small businessings in the u.s., here to talk more

about entrepreneurs hip and growth what it takes to make the cut. the president and ceo of acasia communication, he took the number five spot and eric schumberg the president and editor-in-chief of "ink." eric, what is the criteria for this list? how do you make the list before we get to a winner if you will. >> it's simple. it's three-year revenue growth from 2010 to 2013 how you grew revenues. the amazing thing about this year in particular is that this is the highest year the number one company has the highest return of any company ever in the 33-year history. the number one company fuhu. 159,000 growth. >> most of the company is technology related? >> a lot of the companies are technology related. it's a reflection of where the

growth is in the economy. >> technology, internet related. >> i.t. service, software, high-tech media. >> in the top ten, raj is new to this. how much movement has there been? >> there is a lot of movement. this is the first time we had a lot owe repeat. usually there is a lot of junks, it's ha ready to maintain that kind of growth. >> help us just understand your business a little bit better. i was talking with eric in the commercial break little about the business, trying to explain how it's the inners of the internet when it comes to fiber optic. tell us for a moment what it is. >> okay. so traffic is exploding. you have video coming on the internet. you have lots of data, audio, cloud computing. these are all driving the demands for the internet traffic. our device increases the traffic of these pipes 10 to 15100 times

more than what it is today in a cost effective fashion. so that's the level of economics we bring to it. so we are taking all the optical functions that exist in complex materials and bringing them into a silicon chip, just like one of these silicon microprocessors that we all know and love. >> that brings in the scale of economics, cost effectiveness and intelligence to the network. that's what we do. >> so as a business owner who has gone through this explosive growth, 20,000 percent of your growth apparently over the past three years. you look at your business, i imagine everybody and your brother in your industry wants to buy you. how do you think about that? >> so we are causing a lot of disruption in the business and because this is ought optical business as we know it. we take it into a silicon space and add a lot of innovation and digital processing and silicon pla on theics. so, of course, others want to

buy it. we've exploded in growth. quite honestly, we are becoming much more valuable than some of the competitors who may want to buy us. >> eric, a lot of the companies on this list are not brand-new. they have been around some time. i'm looking at spanx and sarah blakely has been on before. dan premack was arguing the fact that these companies aren't going public is cheating main street from a lot of value. for instance, uber, 3.5 valuation last year. imagine if mane street were able to get a piece of that value. instead, it's with a small group of investors. do you see you look at a list of 500 companies, ret i.cense on the table? >> remember the responsibility of the entrepreneurs is to their investors and friends and family. most of these companies did it through friends and family of their own savings and not to

companies. so there has been a real shift in the past few years to get away from ipos and not go public until you really have a lot of momentum behind you. >> that means a lot of the value is captured by those initial investors. >> do you think that should clang? >> it speaks on behalf of entrepreneurs. we think they ought to do what's right for them. if they capture a lot of the value, that's all right with me. >> raj, i have one question for you. it's a selfless technology question, we talk often around internet speeds and cable versus wireless. do you see a day where the output of broad band speeds, wirelessly, will ever match what can be done on a cable? >> i think it is going to always be distancing. because spectrum only takes a certain amount of traffic and fiber optics is what we talked about, we increase the speed up to 100 times what it is today. so i think the fiber optic

evolution is going to be faster. however the wireless speed is going to go faster and in turn a lot of the wireless traffic goes through fiber optics in the back end of it. so they have to keep pace with each other for us to bring all these services on the internet to you. >> okay. raj, claulgs congratulations on making the list. we love to continue this conversation. eric, thank you for coming in, congratulations on the magazine this month. >> absolutely. >> coming up, a wildfire threatening yosemite at the height of vacation season. plus, live, right here in our studio one of this most influential republicans in congress, representative paul ryan, even in iowa. there are people talking about ryan right in the same breath. he's like a front runner. i think i'm going to get him out here early. it says 50678:00 there. if we can come on at 7:30 we will do it. he will give us his plan to jump

start the economy when we return. ♪ ♪

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kiding. >> am i sadly disappointed when i sit down this weekend? >> at that point schneider wanted to check the cash. coming up, we will welcome our news maker of the morning. powerful in all ways, buff. the house republican and chairman of ways and means, leading from iwest virginia he's here, joining us early. i will be standing. andrew has to stay. i'm sorry, i tried to honor your wishes. ♪ [ male announcer ] during the cadillac summer's best event, lease this 2014 ats for around $299 a month. hurry in -- this exceptional offer ends soon. ♪ hurry in -- this exceptional offer ends soon.

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traffic, not as bad as expected this morning. congressman paul ryan got here a little early. instead of having him sit around with our viewers waiting. you were in the green room. we didn't have much food. we had to get you out early. >> he doesn't eat danishs. >> obviously, he does not. >> all the good things out here. let's get to it. >> welcome, congressman paul ryan, chairman of the budget summitt is author of the new

book the way forward and we don't need to structure this and can it with an intro because just without even talking to you, you said, yeah, we were talking other stuff. you said, that's why i wrote a book. i couldn't trailer around the country complaining about how things are, offer some solutions. >> clearly people know my politics. obviously, i don't like the direction is country is headed the way the obama administration is going. on economics, on foreign policy, water your solution? that's what this book is about. how would i do things different, is it more prudent governing philosophy, how do you renew the american idea, which is help the economy with opportunity, upwaertd mobility. the condition of your birth doesn't determine the outcome of your life in this country. it's a phenomenal story. it's under duress.

a lot of people don't think it's there for them anymore. i would argue we are prime and due for a great comeback. we make the right diss, that comeback would be structured. i'd discuss lou to do that. >> what really happened, reality shows are popular. when things are off camera, i share them with you. i was looking for him. he wasn't in the green room. i went right into the men's room. >> he was watching his hands. what i immediately said to him. i said to you is i remember the late 70s and i remember what happened. i remember how disconflict the country was feeling. it's very similar to me now. it's such a country with so much potential and the people in it have so much potential. >> right. >> we are theoretically set up for the most incredible rebound. someone's got to be there to lead it. >> that's exactly how much i feel. it's not just a person but

ideas, it's the reason you want to read this book. the reason i wrote this book is what is a plan? i look at it. let's take it to the country. threat country decide, what kind of america do you want to have in the 21st century? >> i will push back. i told you guys earlier. >> that's andrew's job. >> i get all the e-mails from the obama administration, they send it to me. i got something, i don't know who this was from, necessarily, but there is a concerted campaign to stop you. and it talked about what we need to do to make sure paul ryan can never become president they will rerun throw grandma from the cliff commercial. they started it yesterday. so you talk about bringing america back. others say you will throw grandma out in the snow by what is it because of the kouch vouchers for medical. >> the supreme court. >> it's an idea i worked on with alice gruber and ron weiden,

it's an idea that makes sense and saves money for taxpayers and medical beneficiaries. it gives seniors choices on how it will be delivered to them vs. the ipad, president obama's 15-person panel that will make all of these decisions. so i can go on and on about all this. the point is, if you don't like the direction is country is going, few don't like federal policy, how would you grow the economy, how would you make us a stronger nation from a foreign policy? how would you get people out of poverty more effectively? >> it's so interesting. romney is on the cover today talking about obama, there are people that he is almost greeted like a rockstar, again, you have, i won't say you are tainted, but the 47% thing the fat cat, the job exporter, all that stuff will rear its ugly head every election center for romney. will he need to be rehabl

stated? it's a way to say he was right about things. >> i would love to see him run again, he's emphatic in saying he won't. he obviously does well in the polls today i think because the things we said in the campaign. we were shadow boxing against big government in theory, against the president's rhetoric. remember, the president passed most of his program in the first half of his term, they delayed the implementation of these big laws like obamacare, dodd-frank until 2013, so it's our word against their word as to what was going to tran spire, then came twleent, they got reelected in 2012. now we have big government from pennsylvania the results look nothing like the rhetoric used to sell the program. so i do believe there is a little regret. i do believe that people say, oh, gosh, this doesn't look anything like they told me it would. few like your doctor, can you keep it. it will help my health care costs, blah, blah, blah. >> you learned from the

mistakes, i saw an op ed where you wrote about the makers and the takers, people have shown you, some of the takers are vets, or people that are truly in need. >> my mom on medicare me on social security after my dad died. >> it's a bad, it's a ten year to talk about it. >> i think we need to learn from our own personal% takes in life. i think that's an important thing for any human being. i have made mistakes in my career and my life. i think you need to own up to those things so you are better going forward, but the argument i make is we did predict a lot of these problems were going to happen, but that's not enough to say "i told you so." it's more important to say" here's what we should do differently to get the country back on track." >> we have sandy berger, we brought him on early. so we threw this show into all this flux. if you play, if you have questions for sandy and things like that. >> sure. >> you are a true guest host

now. >> i am a true guest host. i have done this before. >> now you can question people. >> i'll be easy on them. >> there is you seen newspapers this morning, a zwush disturbing development, islamist militants released there photo along with a graphic video that is the apparent beheading of an american journalist james foley, isis is threatening to kill another newsman. joining us now, sandy berger, chairman of the albright stonebridge group and a former national security adviser under president clinton and, you know, sandy, earlier, i probably, you know, we're a show and we talk whatever is on our mind, again i saw we never negotiate with terrorists. i said, well, usually never. didn't we just do something recently that would cause these

guys to think they could be successful lear? >> i don't think these guys are thinking at all about negotiations, this is a fanatic group of sunni militants. you've seen what they did with the zetis last week. they're brutal. they're fanatics and they have to be dealt with from a serious an sustained way. this is gruesome, but it's not an isolated act. and it's a serious threat. this is now an islamic state. this is the best funded, best armed terror group in the world. we have to have a strategy to deal with it. >> does that include, do we need to work until, is it an existential threat? is the president being tough enough to get the dam back or do we need to act to get rid of this group. >>. >> well, as the serious threat. i think the president is doing the right thing.

i think he handled his, he played his card right but not going after them immediately so long as malachi was from him of iraq, who was hated by the s sunnis, had we used our air power, we would have been seen by the sunnis as malachi's air force. any bombing would have driven the sunnis into the hand of the islamic state. we pushed malachi out. that's a very good step. now we can work with the new prime minister and with other countries in the region to organize and with the sunnis on the ground, to try to push these guys out t. sunnis through these people outs six years ago and unfortunately malachi then ran the country in a brutal way so that they actually hated malachi more than they feared these guys. we now need a long-term strategy

here. >> sandy, i know we say we don't negotiate with terrorists, but behind the scenes we often do back channel with people and try to do things, what should we be doing? >> we are set to this, the idea of negotiating with these guys is absurd. it's like you can't negotiate with a mad man, these people are crazy. so you can't even contemplate negotiating with them. you have to destroy them. but we have to do that over a serious and sustained way. i feel badly for the families here the horrible, horrible gruesome act. but the very act of negotiating with these people is mortifying. this is a very large group. they now control territory in iraq and syria the size of maryland. they have designs on jordan and lebanon and ultimately the

arabian peninsula. so we have to have a long-term systemattic not panic strategy here, using our allies and we're not the only people affected. they're coming after the gulf countries and others. so let's form a good strong coalition here. let's get the energy of the sunnis in iraq. sunnis are going to drive out crazy sunnis from iraq, not americans. let's have a concerted positive strategy over time to destroy these people because they are over time a serious threat. i say one point to our existential threat. today they are not. they don't have the capability today to launch the kind of attack that al qaeda did against us. but there are thousands foreigners in this group with western pass force, there are about 100 americans with task force. and they're recruiting

extremists from around the world with foreign passports. the greatest threat right now that they pose to russ these foreign jihadists. >> sure. >> who go there and get their training and can't come back to strike this. >> sandy, we have congressman paul ryan here at the table with us. i know he'd like to join the conversation as well. >> a quick question, on would it not have been in our interest to have instead of an enforcement agreement with iraq. behindset is 20-20. football two, what should we be doing differently in syria knowing now what we know. >> in iraq, i'm not sure if we had 10,000 soldiers in iraq, it would have made much difference. >> here's the reason i ask that question. the day after we left, malachi basically purged sunnis from his government. then we had no logistical

support for the iraqi army. the iraqis couldn't even get supplies up to mosul to their troops, had we had the 10,000 or whatever the number would have been of enablers of people helping with logistics with the air support. wouldn't we have had a better chance of keeping the iraqi coalition together the army together to prevent isis from taking over the northern part of the country in the first place? >> paul, you can replay this story a lot of different ways. you can say had we not invaded iraq, which many people tend to think. >> a more contained question. >> let me finish. isis was formed in response to our invasion of iraq. but the head of isis was nurtured in a prison, in an american prison in iraq. so we can spend a long time on the blame game. i do agree with you on syria, though, paul. i think that question should

have supported the modern opposition in sir why before syria became radicalized and regionalized and before groups like isis had the ability to grow and develop. i think that i certainly agree with you on that one. >> the reason i ask that is not to play the blame game, going forward in afghanistan if we have this hard pull out dead lean in two years, are we not planning the same kind of seeds planted in iraq and should we not think about some holdover force with you know vso, village to village operations or something to that effect for an indefinite period that we don't sister to have a hard dead lean on from afghanistan or are we going to have the same problem in afghanistan in the future. >> i think we should leave some troops in afghanistan. we invested a lot in afghanistan. a lot of americans have not him some have died there.

i think if we simply pull out of yavrlg lit have reverb celebrations. >> sandy, as dangerous as these hot beds are journalists as they cover these areas with bulletproof vests, oftentimes the ensurgents the open session want their story told, too. i'm wondering if what we've seen with foley has marked a c clang for journalists to go into these areas and cover them? >> you know, i have such great admiration for people leak mr. foley, who cover these situations around the world and i think i read something, last night, that he was quoted as saying about how important his work was and how important he thought what his doing was, so the american people could see for themselves, what was going on in these session and he's

right the worst thing that could happen is we could lose our eyes and ears not not see the kind of turmoil and the kind of blood thirsty conduct that's going on. so i do think it's a danger. i have tremendous respect and admiration for the men and women who beck up their pad and their pen and go into these situations. >> all right. thank you. we appreciate it. thanks, former surt adviser. we will be talking about these things in a much more detailed way. >> yes, it's good to have you here early for that. when we come back, two weeks ago, the retailer warned of slowing sales, find out if investors now have a bulls eye on the stock. plus,ty you are doing a good thing by not taking your vacation? think again. details on that story right after this brake.

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welcome back to "squawk box" a. new survey by research firm harris interactive shows americans use 51% of their eligible paid vacation time and paid time off.

here's something even worse. 61% who take their vacation wind up working while they're away from the office. so why won't people work at work? simple. fear of falling behind. of course, there is also the fear of being fired. what many don't understand is that paid vacation is often built into their compensation package. as we get this story in some form or fashion every single year in the summer about how little vacation americans take with respect to the rest of the world, how much they take relative to what they're supposed to take. but this isn't going to change any time soon. >> you got to take vacation. you only have two days. >> we have a lot more to talk about in a moment. >> it has been a lot of fun. >> coming up, antique road show, a treasure trove of baseball memorabilia found not too long ago, includes a collection of cars and other items appraised at a million dollars, auctioneer and antique road show host philip weiss. do you have honus wagner with you? >> no,io i don't.

>> i wish i did. >> they will join us right after the break. .

welcome back to "squawk box." i know those baseball cards you collect as kids, hold on to them. a family in boston was offered $5,000 for their collectioned a it appraised for $1 million. joining us now to tell us about the collection why it's worth a million bucks, phil weiss an

appraiser for pbs' "antique road show," you brought memorabilia. >> this is baseball memorabilia. the particular appraisal we are talking about was an astounding thing. it came to the show in new york city two weeks ago. i think that appraisal kind of encompasses everything the road show is about because, you know, at any given venue, you have a room filled with arguably the best appraiseers in the world. in comes somebody who had this group of things. >> did you know it immediately? >> i was five or six seats away from leo dunbar. >> you could tell? >> i was a little to the left. i was dumb founded when i saw what she was holding in her lands, it was amazing. it was a group of material the woman's great, great grandmother accumulated. she owner owned the boarding house, this was the original 1873 boston red sox stayed. >> wow! >> it was astounding.

there was a letter in there they were writing and/or describing how they miss her cooking. it was a showing of how sick those players were being on the road and not being home. >> what do you bring us today? >> we bring a couple things. this is an actual bat by babe ruth. >> how much is that worth? >> conservatively, probably 12 to $18,000, if it was a graham used bat it would be far, far more valuable. >> and how much did the person who sold that sell it for? >> it hasn't been sold yet. but this was actually won back in the 1930s by a youngster who road rod away and was awarded this bat. >> do you see a lot of fakes? >> there is an enormous amount of fakes. that's one of the tripping points of the industry i think you do wind up with a lot of

people with fake stuff. >> you flow we said at the beginning of this segment. if you have baseball cards, keep them. i have cards from the ''80s and '90s. are they ever going to be worth anything? >> those were boy band cards. western they? you had baseball cards? i had garbage pal kids with cars. >> you had baseball. >> i have a michael jordan 19 ex-. >> it's a good card. >> in mint condition. >> basketball card, too, don mattingly, mooky wilson? >> i'm still hanging on to my beanie babys. i also have desert storm cards by the way. >> really? >> my mother found in the '70s. >> people would save tell and buy cases as investments. so you can on any given notice

make phone calls and get open cases of these cards. >> aren't they going to throw them away right now? >> it was wishful thinking. i don't think it will happen. >> thank you for coming. >> when we return, another, are you not a member of a boy band? paul ryan and mitt romney getting back together again. the former vice presidential candidate is with us for the next hour. a price tag! danger! price tag alert! oh. hey, guys.

. >> the owner. >> they're killing the reds. anyway, welcome back to "squawk box" here on cnbc first in business world wide. our special guest host this morning congressman paul ryan. we have a lot to discuss with him. first, kayla, i guess target is out. you got some headlines as well? >> yeah, first, let's take a look at target. 17.41 billion in second quarter sales. >> that 234 million. just the eps is 78 cents.

es at fawn adjusted is 37 cents. let's take a look at how that compares to estimates analysts have been looking for 17 cents. when you look at that 78 x number you can see that is slightly below. it will be interesting to see what target says about the consumer t. company said that data breach over the holidays is more expensive than it expected and that sales had taken a hit as a result. you can see target shares are down pre-market 3% on this move. so we'll get a little bit more on target. >> what was the revenue number you said? >> 17.4. 17.38 was selected. it is a slight beat on revenue. >> here's what john mull began said. >> cut their profit outlook as well. so where does the genes go? they cut the 2014 view from 3 1230 330. they're at 349 that's not good.

>> i think it's a reset. while the results didn't meade meet you are expectations, we see early signs of progress as we work to improve results in canada, he goes on to say the coming weeks and months, this is not a man that sounds confident. we focus on listening and learning with the team to develop focus for strategic plans for long term. so he knows. >> they have been working on the canadian strategy, same store sales down 11.4%. joe, you mentioned they took their full-year outlook down, that's quite a bit. >> it was 360 to 390. >> you take that down by 48 cents, that's a big adjustment. >> it is, there are only two quarters left. they were supposed to earn 65 cents from a fiscal third and a $1.28. so it's taking the 48 cents off the next two quarters for the whole year, you know, so yeah, on 390 on 360 it's big.

on what is 65. >> on half that, exactly. >> $1.93, taking down 48 cents, that's huge. >> that hacking breach. >> $146 million that ended up costing. we will get on target. sales have rebounded slightly 1.6% is the move to the downside. it had been down as much as 3%. we are watching shares of lowes earnings it beat the street, the home improvement retailer is cutting its full year forecast as well. >> that stock down 3% premarket. investors had worried it would need to do that. we are watching office supplies retailer staples, reporting second quarter earnings as well a. profit of 12 sents cents per share, one cent above estimates. revenue beat forecast. meanwhile, the staples is up

2.4%. it looks like this i don't think is better than expected. finally, mortgage activity increasing, the pain reason, a drop in average rates. we have been talking about that all morning at what point is the low interest rate environment going to keep consumer spending. it looks like more consumers are getting back in with makes up slightly in the latest week. andrew. >> the crisis in the middle east. taking a deadly turn. islamic militants we leased this photo with the beheading of american journalist james foley. joining us on the phone, bill neely of nbc news, bill, what can you tell us? >> yes. good morning. here now that the u.s. airstrikes that i have been witnessing here in northern iraq over the last few days have been followed a horrifying act of revenge. obviously, we're not going to show that you gruesome five minutes long. it's called message to america.

it begins with president obama launching the airstrike and then the unfortunate jim foley is loan is an orange robe on his knees besides him, a pan dressed in black who eventually wields a knife, but intelligence agencies on both sides of the atlantic are now looking at this grotesquely t. killer clearly has an english almost a london accent. intelligence agency in the u.k. are probably using voice recognition software to try to find out if they know who this man is, if he's on their books. the issue is that of foreign fighters. it's not just european foreign fighters. it's foreign fighters as well. intelligence actions estimate that there may be as many as 500 british jihandis operating in iraq and syria, multiple numbers of germans, french, australians,

canadians, up to 100 americans who have come to this part of the world on behalf of the islamic state. now, that is a very worrying thing for the west. prime minister cameron of the u.k. is meeting today to discuss it. president obama will be talking to his security team later in the day. >> hey, bill, before we let you go, what itself the reaction been in the ground and in iraq. obviously, this is making headlines here in the united states as well as europe and asia. what's the reaction been where you are? >> reporter: well iraqis would have two reaction, tens of thousands iraqis have died over recent years. they wonder why one westerner is the cause of so much upset in the west all they they do understand that. the other aspect is this brings back the memory of the terrorist group of isis if you like a. man called al zakawi who many years

ago was executing people dressed in orange jump suits the islamist organization, we had understood from intelligence actions learned from him and was not going to be quite brutal, sadistic and gruesome. that proved to be false. because the execution of foley is just as disgusting and brutal as anything al zakawi did. so iraqis, this is the place that's filled with fear. >> all right. bill, thank you for joining us this, mo. we appreciate it very, very much. >> congressman paul ryan spending the morning with us. hoo es the chairman of the house budget committee author of the book "the new way forward. you ran for vice president? a couple years ago. >> good memory. >> yeah. >> not that long ago. a lot has happened. the unemployment rate has come down a little. it seems like the world has gotten a little dicier. maybe it's just me.

we'll show the book again. then i want to talk about your meeting tomorrow with -- >> governor romney. >> tomorrow. at the union club in chicago. union league club in chicago tomorrow evening. >> he will help you with the -- >> obviously, i talk about mitt quite a bit in the book. i talk about the election and what the republican party needs to do to win electoral college and national elections. i talk about the agenda we need to present to the country to have affirming elections we need to have to get the mandate from the country to fix our problems. >> you said you'd love to see mitt run again. >> absolutely. >> so there are people that think you might run. >> i will make that decision in 2013. >> do you have any of those signs left? >> i think there are a few around. >> would we have to palestinian it to ryan romney? >> i would drive mitt's campaign bus if he felt that would be the most effective way to help him.

>> does that mean you have to wait to see what he does? >> no, look, this isn't one of those deals him i would love to see mitt run again, he's emfatic. he's not going to. i think people now know. >> that's why you are able to say that? >> no, seriously, i would love to see him run again. >> to get in the mix. >> is he the right guy for the party to run? >> absolutely. knowing him like i know him, you couldn't pick a better person with the intelligence, the integrity the knowledge to step in at this kind of a moment for our country. i really believe that and you know i think people got to know him a little after the campaign. did you see on netflix? >> it was a great documentary. >> i wish people would have seen. >> he can resonate with the voter the gop needed. for the elect, do you think he would change that in 2016? >> no, look, i think there were some structural disadvantages he had coming out of the primary. first of all, he had 2003

debates. he exhausted the money. he couldn't get his money until august. >> he did the work to trash the p.e. industry before le had to run against the president. >> but the point i'm trying to make is, we had structural disadvantages, i'm not saying that's why we didn't win the election. when you come out of the primary cash starved in may, you don't get your general election funds until august you run the battleground states for three months. that was a part of the -- they are saying not as many debates and you got eight guys they're all throwing grenades at each other trying to keep it moving further and further right. then if you move back to the center, are you a flip-flopper. is ryan going to be able to make it a less. >> not only the body of knowledge. he has struck in the primary

process. >> is the book the part of a campaign for president? the reason i ask? no, that's where i'm going. >> i would be doing a bus tour in iowa, new hampshire, south carolina. i don't want to cloud this with presidential politics. what i want to do as a policy leader, as an elected leader say i don't like the direction the company is going. here's what's wrong. >> is hillary's book different? >> i haven't read her book so i can't answer your question. >> the public relations effort around that book, do you think this was fair or unfair to say that was the beginning of the campaign? >> i think hillary is one foot into this race already. as far as i'm concerned. >> she ran for senate in new york. >> as far as i'm concerned. i'm focused on the here and now, what do we need to talk about, what are the agenda items, also i want to work on the 2014 elections. i want skywalker to get elected. i want the senate to stop

packing regulatory bodies. i want to improve our majority in the house. we got some 350 bills collecting dust in the senate going nowhere. it's really frustrating. >> we need to talk about the productivity of that congress. an interesting wrinkle about your book is you are represented by hesheet, currently in a battle with am son. can you speak to that? >> as a congressman i have as to watch what i say for ethical reasons, it's a frustrating thing. clear lirk amazon is making a power play in my opinion. >> it's very hard to boy your book. >> i know. >> do they have monopoly power? >> i don't know the answer to that question. you can go to barnes and noble. >> are you not a fan of regulators of regulation generally. is this a situation, an environment, where you say, i've now lived through it. >> if i were just a private citizen, i would voice one,

score an opinion. since i'm a member of congress in a policy. i'm going to withhold from making comments. >> we talked earlier, there could be three parties the democrats, maybe four, because you look at certain parts of the democratic parties so far out of main stream, but on the other side, you got the rand pauls and the ted cruz and the christies and the jeb bushes. how is that going to get reconciled? the tea party has not fared at well in some of the recent primaries. in the primaries, who, but then, there are people that say, oh, great, run another moderate. then we can have, how did president mccain do with president deal and romney? >> i don't think you can put mitt in that category. here's what i would say. we need to articulate. i don't know the answer to that. we need to articulate what i describe as full spectrum conservatism. >> social? >> i don't think we should -- i think we should be an inclusive points of view and not purge

anyone's particular point of view. if you agree on the tallest poll in our party on economic liberty, free enterprise, upper mobility. we want you in our party. we will agree to disagree in a civil way on these divisive issues, we will have a majority party that goes for everybody's vote, that opens up the electoral playing field and brings to the country a meaningful choice, so the people in this country can decide what kind of marc they want to have going forward. i would argue now we have big government in practice, people were hungry for a new set of ideas, hungry for a set of solutions, our hard working taxpayers in this country are not getting the government they deserve, people struggling to have good lives. >> you remember the other side, especially with the cooperative media, the other side can dictate the issues, do you remember the war in women in the last election? what happened in the war on woman. it was entered quickly. >> it will come back. >> so you say, we're going to

talk about these great things that conservatives stand for, then all these social issues that republicans may or may not be behind, they're going to rear their head again and they're going to be used by the other side to once again back you guys into a corner where young people that are libertarian that want small government, that want low taxes. >> the best defense is an offensech we need a constructive agenda. by the way. >> that are against gay marriage. we're trying to help scott brown get elected to the senate in new hampshire. >> where is he? >> scott brown is pro marriage and pro choice. he is a good republican in good standing. >> it's hard to walk that line when you are talking to young people very sure about where they are. >> i think they'd like -- >> they can join the republican party. they think it's the party and the old people that, i know -- >> read the book. >> invade your bedroom. >> we will continue this

conversation. paul ryan will stay here. we will get the take on the consumer. but up next, a new report out minutes ago showing a bubble may be brewing in the auto loan space. consumers are struggling to make payments, so should lenders start hitting the brakes? as we head to a break, check out the futures ahead of the market open t. dow looks like it's off close to 29 points right now. we'll be right back in a moment. with all the opinions about stocks out there, how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.

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there it is. now you're an expert in less than a minute. this is how car buying was always meant to be. this is truecar. ♪ . >> a new study out this morning shows americans are starting to struggle with their auto loans, phil le beau joins us from chicago with details, it's still a relatively small market, right? >> it is a small market. the markets are increasing. these come from experian which every quarter is monitoring. they are indeed troubling. specifically when you look at the number of repossessions, the auto repoe rate up in the second quarter, delivering whency rates are rising. the average amount of a bad loan or loan charged off, it's up $932 to $8,114.

now that increase will get attention. overall, look at where the bad loans are relative to where they were at the height of the recession or at the worst of the recession. back in 2010, the average writeoff was over $11,000. now experian says auto loan balances are at an all time high in the united states coming in at $839 billion. that jump in auto loan balances in the second quarter, that's an increase of 11.7%. focusing again on the subprime and the deep subprime borrowers out there. those people that have the credit scores experiences, they make up 19.6% of all auto loans written. deep subprime loans, however, jumped 12.7% in the second quarter. a lot of people will sit there and say, well, lock, this is what's fueling auto sales right now. it's the auto dealers and

makers. they're targeting the dope subprime borrowers. those that can barely make the payment. that's a part of it. there is a deeper issue. it's a question of what happens with the deep subprime loans, they are written off and packaged and securitized. >> that itself concern on wall street in terms of what happened with these bad loans and whether or not somebody needs to nip that in the bud. interesting numbers from experian in terms of american auto buyers clearly starting the struggal bit when it comes to making monthly payments. >> okay. thank you for that, phil. we will come back and continue talking about the economy with paul ryan. palm, you said you are unhappy with where the country lies right now. >> yeah. >> arguably, we're better on unemployment than we were before and arguably, when you look at the stockmarket, i don't know what you think that's an indication of and whether we should think anything of that. it's not so bad.

>> the fed is pumping the prime with qe forever. >> pumping the prime. >> they might be able to do that with the prime rate. >> that's a different technique. >> so you've got loose money from the fed. talk about nick equality and trickle down economics, that's obama-nomics. this is not going to mane street. you have a hyperregulatory all over the place, whether it's fisk regulation from dodd-frank, health care, more the point, this is the worst recovery in the post-war period. you got labor force participation rates the lowest we seen in decades, the highest poverty rate in a generation. usually, we should are pulled out of it by now with far, far more jobs being created, more take-home pay. >> you got to decide, is the american dream dead like you

usually say? >> i always arc you to you, there are two american dreams, one is very challenged and that's the one he's talking about and the mark zuckerberg shoot the moon. >> depending on the conversation, things are going swimmingly when most of the time you are very despondent about income inequality and the american dream. >> trying to be a provacateur this morning. >> so am i. >> loose money from the feds and a lot of tax uncertainty and government uncertainties, particularly in the middle class. it's not getting to them. bus of our borrowed fed policy -- >> we will talk about this when we come back. >> i want to talk about syria, would romney have armed the rebels early on? how about hillary with all the criticism? anyway, steve liesman is out there. he loves fishing. this is a good big. we'll be right back.

. >> coming up. when we return, janet yellin will be speaking friday from jackson hole, perhaps dropping clues for the path for interest rates. her thoughts on labor markets. we will speak to congressman paul ryan about the state of jobs when we return. as we head to break, take a look at u.s. equities futures. we have red arrows, opening off about 20 points right now. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase.

. >> welcome back to "squawk box" on this wednesday morning. take a look at retail stocks on the move. a big earnings day for the sector with target reporting quarterly profit that fell short of estimates. the company cutting its four-year outlook. that data breach is costly for

the company. however, it is seeing signs of improvement in the economy as it tries to reverse customer traffic. in premarket trading that stock is down 1%. retailer staples fell sharply from a year ago. quarterly earnings did beat estimates by a penny. they are making moves to increase online sales as well that stock up three.75%. we are watching shares of american eagle. they did post a better-than-expected profit, even though same store sales fell 7% a. tough slog, american eagle shares pre-market up 10%. polythe world's central banker is meeting in jackson hole for an annual federal reserve gathering. steve liesman as always is there hey, kayla, good morning, here if jackson hole, ultimately, the market wants to know about is

rates. that's what we asked in a special jackson hole cnbc survey. for the first time, we asked our panelists to project out how far will the rate hikes go, how long will it take to get there? you might be so surprised how dovish the market thinks the federal rev is going to be. let me show you what all the other rate hikes sense 1983 look like and how this estimate of wall street compares to. that what you see this will be a longer cycle and it will go up to 3.16 percent. they say it will start in july 2015. that's a month earlier than the prior survey you can see all the other rate hikes here, 3% go go up as normal. the 30 months it will take to get there is nine months longer than average you can see ending at .16 and .4 moving on to one

first half by june ending 2015, 2%. finally getting up to that number 3%, 3.16. it's above the fed forecast. how dovish will yellin be here? not too much. people think relative to her position it will be neutral. 31% think yellin will be more dovish than she was before i think yellin defending her sense there is labor slack out there. allen krueger suggests maybe not as much labor streak as suggested. guys. >> okay. steve. . >> it's beautiful. >> i think it does. >> that's a green scene. isn't it? is that real? turn around, let me see that. is that real? >> yeah. i do have a shot, you know. >> the green screen.

>> i don't know. tee times back there. >> that's a green screen. >> it's also nice to zoom out. >> look at. that that is amazing. >> if i come back here, you can see. >> all right. so you got some really good computer graphics you got going there we've seen. we had guys in a disruptor series that enable you. have you caught anything yet? i don't mean stds. >> i got a couple. joe, i understand yours is bicker than mine. >> oh, god. >> reporter: you got a big short, didn't you? >> not me, my caught. shovel note. >> shovel head. i got a 20-inch cut throat it's about as big as your short.

>> is paul a fisherman? >> nice. >> let's get back. >> did you have a nice hook jaw on that cut throat? >> yes, i did. chairman of the budget committee also the new book the way forward, so many things to tell you. wow, do you believe that? you guys were two of the young guys, you and eric, did you talk to him? >> actually, two days ago was his last day. he left congress. >> he was here in new york in the hamptons, up here. >> so we talked a little about issue i guess. a lot of viewers writing in. he kind of was laughed off stage, romney? >> i think president obama had this little zinger, the 1980s called, they want their foreign policy back. guess what, reset has been a fundamental failure. you crane, i can go on and on

and on. i would arc you the president's foreign policy and his defense budget plans are giving the impression that we're withdrawing from the world. we have weakened our position on the world stage and what happens when you do that is a vacuum occurs, there is china russia seas, russian, ukraine, it's a possible aislamic fate which is dangerous for a national security sopy entire argument, mitt's as well is we need a strong foreign policy and military to protect our security and prosperity. >> it doesn't mean going around. >> being smart. the devil is realistic about our threats, which i argue our administration has not been. >> so we need a strong foreign policy. i heard what you said, the devil is in the details. so what should we have done two years ago in syria? if romney had been elected?

>> we would have partnered with iran. >> you would have? >> yes. >> what would you have done when crimea was -- >> i would not have sent a budget the week that he said i would take the army level down to a level since we seen if preworld war ii and the avenue since preworld war i. >> that is what they did the week vladmir putin invited russia. i would not, the czech republican, poland. i can go on and on. >> the country as the president i mean it was like 70% of the country wanted him to end the war in iraq. it happens. is the country allowed to say, why did we do it? >> are they determining our foreign policy? the president, his own policy was they wanted to have a forces agreement. the president you know was supposed to negotiate that. they didn't, i can go into why they didn't get it. the point is they didn't get

one. >> now you are in this jam. what do you do? >> now we are in this jam, we have a status enforcement with iraq because we put 3,000 advisers in the country. basically now you do air striengs. you need to talk to your military planners, what is it we need to do in syria and iraq to deny this terrorist group? it's far more organized than your garden variety al qaeda from getting, look at the foreign fighters we're talking about coming in, this is something we saw coming. this is something our intelligence community was warning us about. this is something i do believe the administration owes some responsibility for not having seen this coming and preparing for it. look, the iraqis couldn't even get food, water, ammunition up to mosul because they didn't have the ability to pursue logistics, if we had people there, we could have helped with that, i can go on and on and on. the point is, instead of looking back, looking forward, should we

be hacking our military down to a small size in a modern area? . should we be taking missile defense off the table? >>. i think there are a lot of tlngs we should do that our administration is not doing. >> let me ask you about a domestic issue. corporate taxes. taxes relate to paying for all of this. >> sure. >> to some degree. when you think about the issue of corporate taxes, we constantly talk about corporate tax reform. you've talked about it. the president has talked about i. we are now suffering through this whole inversion craze. i'd love to get your thoughts on what you think of that. how do we actually get something fixed? is there any chance we do over the next two years before -- >> i would like to think so. it won't be for my or our lack of trying. the answer to the inversion craze is fundamental corporate tax reform, itself, which is lower our tax rates, get off the crazy world wide taxsome that is basically shooting ourselves in the foot. here's the issue and the problem

and the concern i have. >> why can't we fix the larger issue? >> go ahead. let me just finish. the problem is, the president will tell us that he's for corporate tax reform. he says a 28% rate. we sa a 25% rate. then we have action base, territorial vs. world wide t. upon is, c corps, two out of ten businesses in earthquake many, eight of of ten businesses are pass throughs, subchapter s, partnerships, llcs, their effect is 14.6 that's a huge problem. >> inversions will only cost the governments in the tens of billions of dollars t. house just bassed a bonus appreciation, something that can cost nearly $300 billion in the next ten years. >> i can go into the score ogen that, the point is, should we be focused on economic growth in the answer is yes. in the global economy we are in, when we tax our employers at much higher tax rates than our foreign competitors are taxing

theirs, it's slowing down our economys. it helps create jobs and growth, we will have more revenues. it's not a fantasy, it's pretty well documented. >> the effectsive tax rate is ten, 12%. >> they're getting hosed. i'm not disagreeing with you on. that on the big companies. >> sore ffr general electric out there, a good example there, there are plenty of big, small, medium businesses littering the hollywood line rates. >> the year that you are using is what i -- >> 2010 is the last fliem the gao hit. >> no kidding. you will leave out all the writeoffs from the financial crisis that lowered it? >> you will get a score. >> exactly. >> 12 months. i will bet you money on this set that it will go up by 3, 4, 5% maximum.

>> andrew laz a point. >> thank you, sir. >> there are a lot of loopholes in the close that needs to close. let's lower rates across the board. >> i'm with you. i hope you can get will. >> the effective rate in other countries is not the nominal rate either. they start at 35. >> effective rate in other countries is much closer. >> because they don't move all the their facilities off shore. >> others have pass throughs like we do. >> others tax the basss all the same. >> we will continue this conversation with congressman paul o'ryan in a bit. up next the ice bucket calgary can be a game changer when it comes to philanthropy among the rich and jim cramer who finished his ice bucket challenge with this morning's stock stories, including target results. we'll be right back. back of the bust the kid e might have a song that he has in his head

welcome back to the popularity of the ice bucket challenge for a.l.s. has changed the gym for charities looking for funding. robert frank joins us with more. how can you replicate the craze? >> it's a slip on the banana peel challenge. this thing has just become the biggest, by far the biggest charity sensation if years. now it's raised over $22 million. that's over the past three weeks alone, that compares with the 1.9 million they raised last year. this attracted 450,000 donors,

they tell me this is a quote break through that can change the $300 billion a year business of philanthropy. it ushers in social media giving, people using face boong and twitter to attract mass donors. it replaces charities and walkathons and shows non-profits can support and benefit from the company without controlling every detail. on the flipside this has sparked something of a buck backlash in the charity world, non-profits tell me the bucket stunt has actually overshadowed the disease. the more serious major here this money could be a one shot media verse not repeated and it's better they say to have big do nors, wealthy donors committed to giving over a long term. they put to charity water.org which has been a better model they say of using social media videos and celebrities to tell a story.

i have a question for congressman ryan, during the campaign romney said they were going to limit deductions in exchange for a lower tax rate t. charity world was in an uproar, do you support that still? deduction, including charity and should the wealthy be able to deduct their charity at a higher rate? >> it depends on the tax bracket. i believe as a conservator of civil society has been one of the most important aspects of our society. if you take a look at the camp draft of tax reform t. one tax expenditure left open endedly was this sector. i was a part of that deliberative process. i do believe. left alone, we can reform it. all the people going into april 15 accounts. there are a lot of things you can do to pour more money into the charitable sector. the one thing i make this for on charities is that this ought to be a tax expenditure that should

be preserved because civil societies is one of the most important components of getting people involved in our communities and philanthropies, that's pretty much as a supply side or a low tax rate guy, one of the basic few exceptions i make. >> have you done the ice bucket challenge? >> i have. >> there you go. >> i send it on to patty murray, kevin mccarthy. at a.l.s. >> have they all? >> i don't know the answer, susan isman her dad tragically lost his life to a.l.s. recently. i haven't checked in with patty yet. >> we will keep the pressure on them. >> robert. thanks. coming up, investors will be focusing on target other than e earnings. jim cramer will share his thoughts when we return. the show is over. back in a moment. .

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welcome back to "squawk box," futures at this hour still in the red. the dow would open down 26, the s&p down 4, nasdaq down 7 if they were to open right now, so we're certainly seeing red across the board, no doubt, earnings from lowe's and target can't be helping the overall picture today. >> let's get mr. cramer's vies on lowe's and target. cramer joining us now. mr. cramer, target, did you think it would be this bad? >> well, look, you got to do through the first of the least. july, they said plus 1%. a better back to school season. a new guy coming in, and the candidate is not a disaster. value trap? perhaps. i just think and it's a hope springs eternal situation. there's other retailers shooting the lights out. why be involve the with target? >> you wouldn't touch it? >> no.

lowe's, frank blake delivered app amazing compare, it's not bad for lowe's. they just had the unfortunate situation where they go against the best, maybe the best retailer in america right now. >> if you have a dollar, invest in lowe's, home depot, or both? >> you can't buy a stock up $4.65. that's not prudent. that's where you buy home depot. that's too big a run. let it pull in. in the end, if fed comes out, and ukraine, no consensus for russia, why pay for home depot? the answer is you were inpatient or missed it, and you need to circle back to others. don't chase depot or go into lowe's. >> because it's mad dash this morning, give us views on apple. the stock is now at a tie all over again. do you buy it again? >> it's an inexpensive stock that's a transitional quarter waiting for the iphone 6 and

wait for the wearable. it's competition, samsung, fell to the wayside. there's the big ibm deal next year. this is a stock with a low s&p up 500 multiple. >> sell the rumor, buy the news. say come september when the product comes out, the stock never seems to perform as well as all the speculation ahead of it. is that right this time, or is that wrong this time? >> you get a chance to buy, but i look at the tech, we have hp tonight, and i say, well, which do you want to own? i think apple is a very inexpensive stock, and i would buy it on any weakness. i'd buy it right here. it's just good. it's like google, another one, just good. >> okay. leaving the conversation there. i'm excited about the next apple products. see you in a bit. >> me too, thank you. >> all morning, we p congressman paul ryan at the table. when we come back, talking immigration and possibility of

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nobody knows what happened to leader cantor. some say he spent too much time away from his base and was in, you know, the hamptons or d.c. too much, but there was the idea that maybe he was out of the mainstream political thinking with the republican party on immigration. you have been fairly, you know, if you're hard core about immigration, you may have gone too far in being conciliatory. if you move further right on immigration since then? was there a message sent? >> i am who i am, and you know what i stand for. i've been explicit and clear how i think immigration reform ought to occur, and i think we should have immigration reform. it goes without saying. i really don't believe that eric's loss was due to this. i'm pretty convinced of that. >> you listen to the conservatives on the radio shows on the right? do you hear them immediately say all it is? >> sure, sure. there are a multitude of factors, but one is what you said, spent most of the time helping other members of

congress traveling around the country away from home, trying to help our colleagues, and i think that also was part of it. >> instead of what you think, to win in 2014 and 2016, what should the gop stance be on immigration? >> i specifically say it in the book, it's not a tease, but i go into detail about what our position on immigration ought to be, how to solve this problem, and how we ought to be able to have a party that is inclusive and brings people in to our big ten party to win the electoral college and win elections. we have to discuss this issue. we don't have the time. >> again, satisfying the republican base, you know, cuts out of the his panic votes. >> it's not a mutually exclusive thing. look, we have -- immigration's is good thing for america. it is necessary for our economy. it is what our country's built on. we want to have it legal, that it's working well, but we have the rule of law, and that we, in this day in age of trafficking,

terrorism, and human trafficking, we control the borders and know who is coming and going. 10 thousand a people a day for ten years, we need immigration to keep the economy growing and labor force supplied. that's important. >> okay. >>ed g ee egood news, we have w people coming, we need a system that works. >> it was not about repealing obamacare, it's rather that statement is still something that the republicans should run on in 2014. >> we should repeal obamacare? >> that's still something? >> you bet. it's a terrible law that will implode under its own weight. it puts providers out of bids. i don't think americans sit contently with the notion of price controls in the federal government. i'll have more to say in september. >> you need gop control in the senate, you think that happens?

>> we have a good chamgs of getting the majority, but with this man obama in office, we will not repeal it while he's there. >> you will, again, say, you don't want to throw grim off the cliff. >> yes. we have to say what if for, and that's why i'm doing this. >> okay. thank you for the time. great two hours. join us tomorrow, and "squawk on the street" starts right now. >> good morning, and welcome to "squawk on the street," i'm david faber with jim cramer, live from the new york stock exchange, and carl has the day off. let's get to the road map, and it starts with, well, markets coming off another rally yesterday. futures, though, off this mornin morning. the s&p within half a percent of the all-time high, the fed minutes this afternoon and jaxson hole begins tomorrow. another bump for retailers. target, lowe's,