you get some hollywood treatment with jennifer lawrence taking the starring role. friday june 10th and "squawk box" begins right now. >> live from new york, where business never sleeps, this is "squawk box." good morning everyone, welcome to "squawk box" here an cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. stock prices retreating after a three session winning streak. oil prices pulling back today. wti dipping below the $50 mark of a couple days ago. let's check u.s. equity futures at this hour. right now futures are down pretty sharply. dow futures down about 90 below fair value. s&p down 14 and nasdaq down 34. overnight in asia, china closed once again. but in japan that market was down about .4.

the bombaydo down as well. also look at crude. wti falling to 49.77. >> and the battle for the white house is front and center this morning. president obama officially endorsing, surprise, surprise, hillary clinton for president as did vice president joe biden. senator elizabeth warren doing the same and didn't take long for gop candidate donald trump to respond. trump tweeting obama just endorsed crooked hillary. he wants four more years of obama but nobody else does. clinton fired back with a tweet of her own saying delete your account. and that tweet let to another

tweet. reince priebus, if anyone knows how to use a delete key, it is you. this is all happening in the backdrop of the article in the wall street that e-mails are now in the center of classified information on drone strikes in pakistan. and we're going to talk all about this where the state of the e-mail investigation is with john harwood in a few minutes. >> i just five hard long hot months three hours at time. which is what we do. i had a couple of compensatment that. what is delete your account? i know to block someone. what does cleat your account mean. >> or unfollow complete i or delete your account. >> oh just get out -- oh i like reince priebus's response

better. and then. >> donald trump responded back too. >> and something after that. but then i also -- you know, usa -- all the papers. like obama endorses hillary clinton. i had same, you know, he wants -- >> surprise surprise. >> surprise surprise. but then i realize it is because he didn't endorse from the same party as his, the socialist party. why it was instead of endorsing a like minded -- does that work for you? >> it's not funny. >> it's not funny it's true. sad but true. david ledman doesn't gave rat's pa tootty about stephen colbert. stephen colbert. here anybody that can do that on every promo. i think he's so funny. right is this. >> it is the same piece of tape. >> no no.

he does it. that is his thing. and that is funny. i don't know much about his other stuff but. >> i'm gonna -- >> isn't that great when he does that though? he's like waving with the smile. so funny. are you going to do the slow -- will you slow jam with me like the president. i asked them not to run that like three times every per 15 minutes. >> like fallon. >> tonight show. >> you doing? >> won't be the end. >> gottne sit up there behind hillary? >> that won't be the end of president obama bpg on -- >> you don't want -- >> there will never be an end. that all depends. i just blocked someone who said yesterday he said that it is nice to see that you are such a big hillary backer. and i said who me?

because i was included with chuck todd and somebody else. and he said yeah i saw you yesterday questioning someone for supporting -- and i said you know what. i can't even answer that. i just blocked that. i was like you know what, i would tell you that joke about the ceiling but it might -- >> pink? >> yeah -- no. it's over your head. tesla responding to reports this morning -- see if you take into account from one side. i have to get it from the other too. >> down the middle my friend. >> like you? >> yes. yes. >> tesla reports this morning saying the that the u.s. national highway traffic safety administration has not opened any investigation into a defect in its model s or x vehicles. the regulators said yesterday it was reviewing reports of suspension problems in the model s and looking to get additional information from the company and car owners. tesla saying the investigation

was just a routine screening, or a review. it wasn't an investigation. a really what i like to call a revi review. i've heard that before. restaurants of possible defect that could cause the driver to lose control of the car and tesla shares losing some ground this morning. but as the $225 stock so that is not even a 2% drop at this point. >> wall street journal reporting national amusements. . the holding company that sumner redstone controls via center of mass through has started the recruiting process. his daughter is said to be leading the efforts. the latest move comes after the 93-year-old redstone ousted via com ceo and and another from the board of national amusements and the trust that will actually control via com and cbs if redstone is deemed incompetent or dies. here are some of the candidates.

ken lere. also nicole seligman, judith mchale. and a pioneer of modern capital investing was died. thomas perkins, 84 years old. co-founded the vc pioneer. and among his most successful investments, genentech. he stepped back in the late eighties after recrueliting ovi venture capitalists tot the firm. he worked at hewlett packard early in his career. later he joined the board in 2005 and helped engineer the

ouster of ceo carly fiorina though he ended up supporting her, unsuccessful run, for president this year. resigned in 2006 to protest a board investigation into the press leaks. perkins said hp had used illegal methods if you might withdrawal a recall of all of that to obtain phone records. more recently published a letter in the wall street journal and compared the wall street movement with nazi germany. but he was a legend. a couple of really great bits this morning about his life and he did. >> a yacht and a sailing yacht. >> and a great book about all of that called mine's bigger. title i've always loved. >> how do they do the phone record -- >> it wasn't profiling. there is another word for it. >> used that word for like two

weeks and then we haven't used it since. >> yeah. >> oh my goodness. >> when you take it -- you on the journalist and you are doing everything. what was the word? it is not profiling. >> it's not profiling. come on. we have great viewers who are going to tweet us what it was. it is like profiling. >> we try to do the jumble every day to keep our. >> pre texting. >> pre texting. >> anyway. but, you know, i was thinking about him last night. and he did some amazing things and really changed innovation in so many ways. but then all of these comments and other things towards the end of his life take up so much space in terms of how he's remembered. and i just wonder. >> distanced himselves from him. >> and he had this very

fascinating life. but how somebody is ultimately remembered. because i would give him the benefit of the doubt and all that credit but now there are other things that happened later in his life. and how people measure life. as the very strange -- >> he finalshe finally passed a right? and i don't even know how to remember that. and depending where you said he looked like a reasonable guy who are -- or he looked like a whacko. and i can't remember the pretexting and all the controversy surrounding that. >> i think he was on the right side of that. >> but then things were written about him that he was sort or mercurial and then -- >> and then he wrote an op ed that talked about comparing the treatment of the 1 percenters to the way nazi germany.

>> just never compare anything to nazi anything. find a different. does anything ever rise to that level? >> six million. >> i also think it is insulting to use the term denier. when it's used for. >> holocaust. >> exactly. >> he was convicted of manslaughter in 1996 in france for a boating accident i believe. so that was -- he was a complicated guy. i remember talking to him, calling him up on the phone and he was in the midst of having some million dollar watch of his fixed. and then invited me out to come see some kind of cello being built for millions of dollars. >> also very recently on the news with carly fiorina running. he had been the one who had ousted her but then was supporting her in her run for the presidency.

>> you can make a musical instrument today from scratch that's worth a million dollars. >> a cello like a -- >> stradivarius or something. >> and i remember him saying you should come out. i'm in the midst. i have my tuner here and we're --. it was an interesting conversation. >> okay. all right rob got it. moving on. stocks snapping a three day winning streak but the s&p is still less than 1% away from all time highs. carl icahn yesterday took a bearish stance and he had this to to say when we speak to him yesterday. >> the federal reserve is holding up this economy and they -- i just don't think you could have zero interest rates for much longer without having these bubbles explode on you. so you need fiscal stimulus. and this whole obsebsession wit the deficit is ridiculous.

>> just looking at how both of you feel. range bound is a word i think you used. until there is some type of rebound in earnings. this is a liquidity driven market. i think that liquidity is like fed isn't it? is that a code word for cheap money? >> yeah and i've been saying this for seems like the last year. the market math is simple. it either needs earnings or a pe best. and the pe comes from better liquidity, so the fed stops tightening or the tightening bias. or you need some sort of sentiment push can i don't see happening here. we just don't have the ingredients right now and to get a sustainable breakout to new highs i think we need to see

some pick up in earnings growth. we're seeing tiny snippets of it. but it is very small still. with an s&p at 21 hundred, if we get even a couple of percent earnings growth and we'll be at 2200 in no time but so far it is not happening. >> one of your uncertainties is the possibility of a brexit. did you see this yesterday from mark -- a pro european union has admitted the leave campaign is now winning in the run up to the campaign. the british public is swaying now towards a brexit. lord hayward said polls will be close and more and more people are set to vote out. do you think that is true yet? because that is not consensus. >> well we question the reliability of the polls and this could be analogous to what we saw with scotland several years ago. where leading up things look o will a lot tighter.

>> that was before immigration. before isis, before a lot of things with great britain. >> absolutely. but having said that what we have a scenario where depending upon the turnout we think it could be a different outcome. so the higher the turnout the more likely they are to remain. lower turnout typically that demographic would opt for a brexit. >> so if people are -- if that explains why this market in this country has had trouble making headway as we got close to the old highs, if it was a leave it would do what? our stock market would suffer a big selloff if there was a brexit. >> >> well we could suffer a lot of volatility? >> does that mean a selloff? because volatility is either way. >> yeah certainly any kind of stress on the system, any instability or uncertainty in

this environment where we are in a fed funds rate perg purgatory could have a significant impact. it could be short-term but it raises a lot of questions about the implications for the rest of the euro zone. >> this week the market really has felt like -- it is not august, is it? and it hasn't been that warm here. but this week is not exactly -- you know, you are not going to watch that all day long, up 20, down 20 and it ends down 15 or something. >> i was in london a few days ago and it is all that everyone can talk about. and i agree that the polls may or may not be an accurate reputati representation. and we tend to look at the bookies. the odds still seem to be against a brexit. >> it is about 20/80.

i think the danger is that a brexit in the uk as part of a larger anti-globalization movement, and you can see that here in the u.s. play out. that is going to lead to france having a referendum, or italy and then eventually the eu breaks up. and if you have a large worldwide anti-globalization move already against an aging population that is going to take global growth away from what it could be. and i think that is really the risk. so this referendum is really a referendum on globalization. and that is why i think it is important. but it is not the immediate aftermath. it is really who goes next after that. >> so christina. in the old days we had an unbelievable domestic economy and we were able do 3, 4, 5,% and never talked quite as much about globalization. is is it the farm animals have

already left the barn? you can't go back to that, can you? can you go back to 3 or 4% here and who cares what happens everywhere else? >> well it would be a lot harder because of all that we've done in terms of globalization over the last several decades. it wouldn't be impossible over time but it would mean a lot of changes and fair amount of disruption. >> you know, to certain people, i wish -- we can't -- it is almost like being in the eu. you have, you know, countries likes germany where there are people working their butt you have and producing and with a great economy. and some other -- we won't mention any other names but the southern european economies. >> benefits greatly from -- >> and we benefit greatly from selling into but do we need to, our net average of gdp has to be brought down by countries who can't get their economic houses in order?

>> the u.s. has been a lot more cohesive than the eu. if we could see more capital investment in the u.s. particularly in technology, that could improve productivity. >> okay. thank you both. the democratic party making a big step towards unity. we're going break down the race to the white house and news on the e-mail investigation as well. but first, this day in history. ♪

welcome back to "squawk box." the u.s. house of representatives overwhelmingly passed a bill to help puerto rico deal with its debt. the bill now goes onto the senate. president obama formally endorsing hillary clinton in a prerecorded video that was released just yesterday. that coming hours after the president's meeting with bernie sanders. and john it definitely feels like things are heating up. this has solidified into a two person race and those two went at it pretty heartily on twitter. >> yesterday was the kind of day

that hillary clinton wanted. because you had the effective end of the democratic primary competition. president obama coming out and endorsing her. vice president obama coming out and endorsing her. and last night elizabeth warren also joined the party. >> i'm ready. i am ready too get in this fight and work my heart out for hillary clinton to become the next president of the united states and to make sure that donald trump never gets any place close to the white house. >> bernie sanders gave conciliatory statement when he i merged from that meeting at with president obama at the white house saying he was going to meet with hillary clinton and work with her to stop donald trump and the other benefit to democrats, as polls are now showing a widening hillary clinton advantage is that republicans are split, don't know what to do about donald trump. you even have talk about dumping trump at the convention. although i don't think that is going to go anywhere.

in contrast to democrats pulling together and girding for that fall campaign, guys. >> and i wondered a lot of things as i was watching that play out yesterday. do you think hillary clinton and senator warren had any sort of conversations before that took place? or is this something that elizabeth warren is getting in line following bla inbarack oba? >> hillary clinton's talked off and on to all of these key players. she certainly wanted their endorsement. and, you know, there was a period after donald trump locked up the republican nomination weeks ahead of hillary clinton when the polls were showing very close. some even had donald trump ahead of hillary clinton. and that raised the sense of urgency within the democrat party to when the time was right to get their act together, unify and be ready for the fall campaign. and that is exactly what

happened. and we've seen some of the fall out over the last few hours. fox news, which three weeks had a poll showing donald trump ahead of hillary clinton. they now show him having dropped six points to 49. >> that is the poll i thourpgt talking about and. when i said show hillary widening her lead. i didn't how going from 45 to 42 to down 42 to 39 i didn't see how that was widening. when we do earnings we say that losses widened. but if it reverses we say it reversed the profit to a loss. so that was not widening but reversing. >> joe i'm talking about the average of polls. >> a time when the rcp average

had trump up as well. so that would be reversing not widening as well. you're replying she's always been as well. which she hasn't been head. >> i actually said that he was ahead. joe let me just clarify. >> i'm --. i'm not gonna be able to. it can't be just me. i can't. >> joe let me just explain. the average in real clear politics for the last couple of weeks or the last few days showing hillary clinton maybe up a point. now that's gone up to -- >> always there anyway and five months to go. >> -- also wide. >> and we got five months to go so we'll see. and it probably wasn't a great week, given the -- >> no it was not. >> john, two questions for you. one, do you think that elizabeth warren's endorsement and how forcefully she's speaking is on effort on her part to become the

vice president? do you think that hillary clinton would take her as that? >> i do not think hillary clinton is likely to take elizabeth warren. she did in response to a question from rachel maddow last night. she's gotten some criticism from ed rendell, the former governor of pennsylvania, who was asked about elizabeth warren as vice president. and he said well she's not prepared to be commander in chief. no foirn policy experience. elizabeth warren said last night she did feel prepared. so there is some pride there with her trying to assert she could do it. but i don't think the comfort level would exist. i don't think you would get the age diversity on the ticket that hillary clinton might want. she's 68 years old. >> do you think she's going to go more a cory booker, younger type. >> my guess is that she'll go

for a younger person. corey booker is a promising candidate. i don't know if that is the case. my inclination would be to think she would go with somebody like tim cane, senator from virginia. even mark warner who is tim cane's colleague in virginia. but i wouldn't nod expect elizabeth warren. >> -- clinton e-mails dealt with drones? >> i haven't seen fall out from it this morning. this is a story that is going to be in the news continually until the fbi concludes its process. and we don't know when that process is going to be. i would not expect it to end with criminal charges against hillary clinton. which is prospect some people have -- >> i never heard the c word used before. i thought he was going walk that back. but he did. those words were chosen. as the criminal investigation.

it went from security review to investigation. to now. so criminal investigation. >> james comey has said it is the federal bureau of investigation. and we will see what the outcome is going to be. >> you weren't at that meeting yesterday between the president and loretta lynch i guess. i love that. so he endorse her and say is i want her to win. but we're polled there is no way any political considerations are going to enter into the way the justice department act on this. what were they talking about yesterday? could have been anything. >> he's the president of the united states. the leader of the democratic party. there are some potential conflict built into those facts. that is the most we can say at this point. >> okay. all right. >> great conversation john. we appreciate it. we'll see you very soon. >> joe you okay?

>> oh yeah. i mean, it is going to be tough for five months. but i -- there are ironies everywhere. i loved hillary's tweet yesterday. yeah i watched on another network. they said just -- hasn't anyone told her don't even use the word delete. don't do that. it just opens up someone is going to say you are the master of deleting. but -- i don't know. >> it is going to be okay, joe. >> well i guess that all depends on where you are sitting. we'll see whether it is okay. thanks. >> it is going to be okay after the break at least. coming up apple about to take center stage. what we can expect from the apple developers conference. are big changes on the way? and chipotle's rein as king of all restaurant chains may have come to an end. which burrito maker is taking the top spot? and as we head to brake look at

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good morning everybody. welcome back to "squawk box." let's take a check of the markets on this last trading day of the week. the futures are in rougher shape than all week. dow futures down over 80. s&p down 13 and the nasdaq down 32. this after a down day for the markets but not a severe down day. markets closed not far off highs. you can also look at what's been

happening with the 10 year note. at this point it is yielding 1.654%. one of the stories on the wall street journal point out today there was an auction yesterday for 0 yea30 years and the treas sold 20 million with a record shares going to buyers outside of the u.s. a lot of this because foreign buyers are looking around and realizing this is the only place to play. if you want to buy a 30 point government bond in germany at this point it is way better than japan or switzerland. in fact the 10 year bund this morning is trading auletll the down to 0.03%. and that explains why foreign buyers have been so attracted to the united states because it sure beats the heck out of what

they can get anywhere else. >> and apple holding its annual developers conference next week. the company could announce some changes to siri. apple music perhaps and apple pay. joining us now is all things expert on apple. tech columnist at the wall street journal. her latest column dear apple, please make the iphone better. i read it with lots of interest. i thought it was spectacular. >> thank you. >> and i'm curious, you know, if tim called you back. >> he hasn't. he hasn't imessaged. he hasn't tweeted. i'm waiting: i think next week. >> probably do snapchat so it would like go away or something. >> maybe he did that. >> i'm on snapchat all day. maybe he sent it to the wrong person. >> what do you expect what will happen next week relative to what you want to happen next

week. >> i think some of the things i want to happen will happen. >> tell us what you think. i think there are customers that want to understand this and there are shareholders that want to understand whether this is going to create a new sense of excitement around where the company is going. >> so one major thing i think apple is going to address next week is siri. for many people i think oh, siri. they have had this bad experience with siri. never went back to using siri. this is a problem for apple. and it is a problem because google and facebook as i talk about in the column are coming up behind them in terms of artificial intelligence making everything they do with their software smarter than what hal apple is doing. so even if it is not exactly talking to siri, it should be siri's smarts and assistants working behind the scenes to help users. >> is it possible for siri to ever be as advanced as google in the following sense. apple has made a concerted

decision. about this data issue. apple says they want to protect your data. google says they want to use your data. so in terms of which device can be smarter about talking to you. if google knows everything about you and apple has decided it can't know everything about you the conversation is different. >> and from a privacy perspective maybe i i don't want you to know everything about me. >> and at what point do you decide you need more yours data to make your services better. and i don't exactly know apple's answer to that and i'm sure they will talk about this on stage next week because i think they believe it is an opportunity to really differentiate themselves to be the ones that respect your privacy. >> which i have to admit that has some appeal to somebody like me. >> i'm happy to hear that. but there are billions of people who use google services and they don't really think about what gmail is doing inside their inbox. >> problem with our society. >> there is a problem with our

society. but at what point does apple say we are that company that respects you more than google or more than facebook. but we do need a little more of that data to make better prediction, to get to know you better. >> option to opt in or opt out of something. google too. >> i'd pay more money. i'd pay some money to google to say all right. >> leave me alone. >> but they make more money off the ads. >> so we'll hear about better siri you think. >> i think we will. >> and will be as good or better than google will we here about an echo like device? there is a lot of chatter about that. that is the amazon device that you can talk to. >> and the amazing thing amazon cracked with the echo is it is not the the phone.

siri in the watch maybe. maybe they are start to talk to siri in their tv. i think there a lot of appeal this taking siri outside of the phone. >> and echo or google home. the great video the google home video if it actually is real it tells you what is on your calendar and what you have to do here and what your kid is doing and all of this stuff. that is where the data point comes in. >> am i crazy that makes makes you so susceptible to any hacker who then know yours entire life and knows everything you are doing. >> think the bigger hear is you have microphones all over your house and who's listening. >> are they more limited and better because they are limited? >> the thing that is very interesting about the echo is that it's so responsive. alexa is actually not as smart as siri. she doesn't know as much but she responds right away. she's like that friend that is always listening and always has

an answer. >> siri is hearing things from me that are so ridiculous. she comes up with stuff that no one would ever say. that makes no -- i said something so obvious and clear. you came up with the most ridiculous thing. so she needs to listen better. she has no idea. you do dictate on your iphone is this. >> list of these companies may be listening to you're probably like here. >> i don't know about that. i don't know -- >> real quick because we got to go. >> do you watch the show? how do you know where i am on that list is this certainly a little higher than a print reporter. >> we're like even. >> dare i ask. give me a grade ab or c in terms of what we're going to see next week and how excited an investor should be about what all this

means relative to everybody else. >> i'm hoping for a. a, b. >> you're excited because -- >> i'm excited because i think what coke and apple have been talking about is the our services company. and it is time to put something behind that. the iphone sales are slumping. why are we going keep sticking with apple. >> it is in the software. >> and we'll see -- >> i don't think we'll see hardware next week. when we come back, wifi and bluetooth technology, detecting them is the mission of the listener. & in a world held back by compromise, businesses need the agility to do one thing & another. only at&t has the network, people, and partners

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welcome back everybody. the cnbc disrupter 50 list honors companies. lisnr is a company that uses

smart phone audio technology to deliver data over sound. welcome. thank you for being here. and it sounds complicated but am i right you kind of took an old school technology and found a better way to use it. >> basically. sound as the original way to get a message delivered. fast forward to to today we've taken that a different levels. and we're doing is applying data to a frequency range and allowing devices to connect more efficiently. >> you don't need wireless or bluetooth. all you need is a speaker somewhere and you can project it? >> yeah. our mission is to commoditize data, right? i think there are more and more connected devices everywhere. the iot world is blowing up. and even in your home you have limitations how devices connect and talk to each other. but the element of sound will always be present. the things that we are going to do when we go home one day is

walk in and say turn on the television or turn on a light. so there are going to be system for voice or sound. and that is perfect for our emergence in a leader as that. what we call the internet of sound. >> what you can do with this is different than what you can do already with being able to use your iphone and send it over our internet connection so that you are playing it on a speaker. what you can do with this is direct it to any speaker you can find including your television. >> special four key solutions we're active today. one is proximity. us using your speakers at a venue where you are like a stadium and triggering messages where you are complete i offline. and devices now can talk back. so we created asynchronous protocols. payments, point of sale.

we can do contact with payments without nfc. without retailers spending money, you can connect just by audio. >> is it secure is this. >> we're a closed protocol. our algorithm is completely prioritiry to the listener. sing use and tokenized and donnell decodable at that moment in time. >> once i goes it disappears. >> exactly. >> you have some interesting backers. and dan gilbert's courtside ventures was among them. does he have some plan to use this as the cavs games or is there something broader happening. >> yes that is one of our customers. cavaliers is playing our tones over their speaker systems and triggering different messaging but also signaling different messaging. today it would be limited to connectivity and you understand

how hard it can be to connect. >> in a big stadium and there are a lot of people trying to use the wireless. >> exactly. we're giving completely offline messaging capability. and that is the magic. >> -- crowded out. >> exactly. exactly. we have an -- in the coming months we are also going to be able to enable nc ordering without connecting to wifi. >> what does that mean? >> basically you are going to be able to sit at a seat at the game, pick a couple of items, say order. it is going to match the tone. >> and they bring your beer and hot dog. >> exactly. and it will be in airplane mode. >> i try and wonder is this something that other people could break into? do you have other competitors doing this and what is the mode that would keep others. >> globally. there are essentially two or three competitors. one out of israel and one out of france.

we have been the leaders. and we are thinking about it in a way we want to connect devices everywhere. our proprietary, our patents. we're trying to be ultimately i independent company? or does somebody like apple say, you know what, we love this technology. this will give us an advantage. we'll take these guys out and put them inside? >> i think that's the goal. >> to get bought or to go public. >> the goal -- it depends. >> depends on the price? >> depends on the price? we want to be integrated in the devices. we want to be next to the bluetooth button. consumers should turn us off and on. to get to that level we have to be integrated to c.e. companies. that's why you see intel backing us. what's interesting is there was an article where google said that this was impossible, transmitting this amount of data through sound you can't hear. they tried to use an audible version. but we have done it.

we've done what people said was impossible. as we continue to grow and improve the technology and its reliability, we're excited to hopefully, one day -- >> okay. one day. larry page or tim cook will call. when it happens. call us after. >> rodney, thank you for coming in. great to see you. don't miss another cnbc disruptor 50 list. the co-founder of the digital payments stripe will be here coming up. academy award winner jennifer lawrence about to take on a key role at the center of a silicon valley drama. that's next here on "squawk box." because at sheraton, we're changing. big things. small things. spur of the moment things. ♪ changes you'll notice.

wherever you are in the world.

welcome back to "squawk box." the theranos saga could be coming to the silver screen. director adam mckay and jennifer lawrence teaming up for a movie about the troubled blood testing company and lawrence is set to play theranos founder elizabeth holmes. mckay is best known for last year's financial drama "the big short." how does it end? >> i don't think they've even written the screen play. >> they need to wait to see what happens. does anyone know? >> unh-unh. you have to wonder is elizabeth like, cool, jennifer lawrence. >> you could kind of play elizabeth holmes i think.

>> thank you. you're welcome. but she must be thinking, cool, jennifer lawrence. at the same time, my gosh, who are they going to write. >> it depends on what kind of movie they're making about you. why does someone want me to play -- brad pitt -- do you understand that? the thelma and louise. >> i don't know. >> i don't remember what happened. he didn't die in the end, did he? >> no. but they did. >> they said they run out of gas before. anyway. we digress. >> you remember the role -- big question for the morning. is it time to get bearish about stocks. we're going to talk to the head of sydney's private bank with $63 million under management. what's on tap for moulson coors this morning. we return in a moment with a big announcement. [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be.

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uh, maybe we should call i.t.

bulls, bears and legendary investors. george soros and carl icahn sending a message to the markets. but are they right to be bearish? are you ready for a long, hot political summer? hillary clinton getting the endorsement of president obama. donald trump wasting no time firing back sparking a twitter war. is the nation ready for months of mud-slinging? and time for a brewsky. >> once it hits your lips it's so good. >> ceo of moulson coors will tell us about tapping into the 3 thirsts of the consumer. the second hour of "squawk box" begins right now. ♪ live from the beating heart of business, new york city, this

is "squawk box." ♪ singing sweet home alabama all summer long ♪ welcome back to "squawk box" here on cnbc. first in business worldwide. i'm joe kernen along with rebecca quick and andrew ross sork sorkin. the futures have been weak all morning after -- this week has been sort of trendless. we've gotten close to the old highs on the s&p and above 18,000 on the dow. but it hasn't felt rip-roaring by any stretch of the imagination. oil is down today after getting up above 51 at one point. back below 50 after the last couple sessions. gold goes up every day, though it's down a little bit today. >> missed your opportunity. >> i know. >> missed your opportunity. >> i just can't do it. >> pull the trigger on it. >> on 1200 what's $60 or $70? 4% or 5%? >> missed it. >> you are a coupon clipper.

>> .1% in ten years. if i miss 5% in three days, i am not buying. >> train left the station. some of the headlines this morning. tesla saying there are no safety defects with the suspensions of either its model s or model x. and that government officials have not opened a formal probe. the automaker saying officials have informally asked for information about the suspensions. sumner redstone's national asusments has officially begun the process of recruiting new board members. we've got just one economic number on the calendar to watch today. the university of michigan, which is out with its mid-june consumer sentiment index. comes out at 10:00 a.m. eastern time expected to fall slightly from the last reading at the end of may. legendary investor carl icahn reacting to bearish

comments by george soros on "squawk box." >> i think he is a smart guy. listening to what you said he said, i can't help but think he has a couple of really good points. i think there is -- you know, i have been saying it. i think that you have a sort of a false market, you know, buoyed by zero interest rates. you have to be cognizant of it. >> joining us is david bail. the private bank has client assets of $63 billion. thanks for being here. we are entering a weird period. next week we have the fed meeting. everybody is waiting to hear what janet yellen says. probably not expecting any sort of a rate hike this go-around. also the brexit vote coming up. maybe people are a little on edge. >> no doubt. we were just at a family office conference. i think people are fairly frozen, looking at the immediate events. so what i am also looking at is

whether or not people are taking any action in terms of moving portfolios and they're not. they're still net long equities. overweight slightly equities. the data doesn't suggest they should take any action but the market certainly feels tr trepidation. >> the ten-year today in the united states is yielding 1.6%. the ten-year for germany today slipped below 0.03% a little bit ago. you are looking at these insane sort of levels that you never expected to see, and it does raise the question of whether or not there is any alternative to putting in stocks, maybe putting in commodities and other places. >> yes. if you take a look at, again, what investor actions are, in europe and the united states there is a large focus on dividend stocks especially in areas like energy or health care where you have real prospects on the upside. the yields at 3% and 4% are very

attractive. if you expect companies to do buy-backs and if you expect earnings to rise, that's where you put your money. >> do valuations look reasonable on their own or only because of the central bank? >> they look median to high on their own. we don't expect the environment -- the fixed income -- when you look at the environment for fixed income, if you expect rates to stay down, then you expect prices to be higher. we still do. >> it's a huge conundrum. >> it is. i remember a chart recently put up saying that investors have to think over an entire cycle. if they miss the top 30 days of stock performance they'll miss the entirety of the return for the last five years, since the crisis. >> you can't be timing the market. >> you can be particular about where you put your money but moving money in and out is a dangerous thing. that's the temptation right now. you feel as if something is going to go wrong. you have reason to believe it

looking at what the upcoming events are, especially brexit. then the elections after that and a whole variety of other important world events. the critical thing for us is to advise that you rotate into places where you believe there is value and you believe you can get income and become infinitely patient at this point. >> is there a chance we'll have answers next week? we'll know what the fed does and what happens with the brexit. beyond that we have the election and other world events. do you think the trepidation is here to stay. >> it has been since the first day of the year. we began the year being fundamentally arrange issunxiou. we've reached the highs. in the stock market we have seen interest rates go even lower. i mean, this very week. people are almost betting that they're worried and that's how they express that they're wary. the bond market often leads you to the right conclusion, is that we aren't going to have a

catalyst for growth. >> you think the bond market is righter than any other. >> it could be. that tells you something. >> it's a scary thought. >> it is. when we look at how people are investing, we're still ever so slightly overweight in equities for the reasons that you already touched upon, which is that's where the real value can be found. it's hard given the performance of fixed income from the beginning of the year until now. investors have done well. it's hard to argue to rotate to that more. >> if you're overweight in stocks are you underweight in other place splaces. >> slightly underweight in bonds. the key is a quality move. places where you'll have consistency. >> it strikes me that we're anxious and worried about a lot of issues but that's market psychology to some extent. you can be just as worried when things are quiet and nothing is going on because you don't know where the next issue is going to come. >> that's right.

when you look at volatility in the stock market, what you see a lot of wealthy families do is hedging. markets are relatively high and the cost of buying insurance or actually creating safety around your portfolio is very inexpensive. >> are they better at hedging than hedge fund managers? >> they're actually hedging. >> they're actually doing it. >> that's exactly create. so yes. >> so yes. that is the way to go with it. >> that's right. >> if you had to pick one best opportunity, one best place, what would it be? >> we're bullish on energy and health care. health care because of the relative pricing. people are worried a great deal about what's happening in the u.s. election. >> drug pricing. how crazy things have gotten. >> also, if you look at everything from hospitals -- there are worries about reimbursement. lots of worries because of potential regulation in the future. those look overblown to us. in terms of energy we expect there to be some follow-through and energy prices to stabilize. >> when it comes to pricing, we

have talked a lot about valeant this week. mart martin shkreli has been a front and center issue. do you think it's been unique to those companies or it's more widespread that other health care and drug companies have been routinely jacking up prices and assuming that somebody will pay for it including medicaid and medicare. >> let me flip that question on its head a little bit and ask as an investor where you want to be. you want to look for companies investing in r&d, look for companies where the portfolio of drugs and medications will drive sales. >> not roll-ups? >> you don't want to do financial engineering in general as a way of making money. that is really what you're talking about fundamentally. to answer your question do we think that most companies are doing that, i think the answer is fairly obviously no. if you see a strategy where companies are not investing in r&d, that's an indication that you need to worry.

>> there's fruit rollups. >> those were good. >> strawberry were the best. >> some of them. there was a time. remember? >> yeah. >> tyco? >> ended badly. >> a lot of them did. >> it will happen again. >> definitely. >> it might rhyme this time, though, instead of repeating itself. >> david, thanks for coming in. >> spelled different than marty. >> you keep talking about marty bailen. i'm going to do research next time before coming on. >> star ship. means we're getting old. modern pioneer of venture capital investing died. thomas perkins. 84 years old. he co-found 0 kleiner perkins in 1972 when silicon valley still had orchards. his investment jen tech would go

on to lead in companies netscape, amazon, aol and google. he was a hewlett-packard board member. he helped to ouster carly fiorina. last year he came back and supported her unsuccessful run for president. he published a letter recently to the editor in the "wall street journal" comparing the occupy wall street with nazi germany. david kaplan joins us next hour to talk about his life and times. president obama officially endorsing hillary clinton. donald trump and the presumptive democratic nominee trading a war of words over twitter. we'll talk about the summer of politics, the next step for both of the candidates. oil hanging around the $50 level. are higher prices guaranteed in our future? we'll ask oil analyst matt smith after the break.

welcome back to "squawk box." futures right now at this hour down anywhere between 80 and 70. europe down over 1% across most of the averages. among the stocks to watch -- down 75 now on the dow. urban outfitters says current

quarter comp store sales falling by mid single digit. analysts expecting the retailer to post an increase of 1.1%. that's below. got about an 8% hair cut on that stock today. mattress firm. you think, if you see mattress firm you say mattress firm sleep easy. or mattress firm -- >> sleepies. >> no. this is called mattress firm. they make soft and firm mattresses. the whole thing is confusing. quarterly loss 10 cents a share. six cents wider than expectations. weaker than expected full-year guidance in part because of costs related to re-branding some of the stores that it had acquired. applied materials announced a new $2 billion share re-purchase program replacing a recently-completed $3 billion share re-purchase. what is she saying? want to talk about crude oil? crude oil prices snapping a

three-day rally after hitting a high for the year. wti crude now up nearly 40% this year. this was the trade of the year, people, right? if you had been in on this three months ago. joining us to talk about where prices are headed. matt smith director of commodity research. great to see you live and in person and in a vest. >> thank you. >> double-breasted vest. >> it's a first for me. thank you. >> it is? >> yes. double-breasted. >> yes. >> it's lovely. >> thank you. >> this was a great trade three months ago. is it still a great trade? >> no. we've rallied on three things. the weaker dollar. also, this production freeze talk coming through from opec. and finally we are at the record short positions and we saw them unwound. rallied up to $50. i think the market is missing something in terms of china. so china sis importing to much

crude, about a million barrels a day more than they're actually consuming. so what they've done -- >> that is because? >> they are stockpiling and they've gone in -- the february lows and just bought as much as they possibly can. >> mm-hmm. >> the trouble is, we are 150 days into the year, or so, and they've stockpiled about 135 million barrels. and so, at some point these imports have to drop off a cliff because even the most optimistic estimates are saying there is only like 155 million barrels of capacity to fill. so, when this happens, you're -- >> the tipping point is when? when do they stop buying? >> in theory -- >> in theory they should stop now. >> 20 or 30 days when the most optimistic estimate is hit. that will be a million barrels on the market each day that has not been -- >> sending the price to where? >> probably back down towards 40. in combination with the fact that you have opec too.

you have saudi. you have iran. you have iraq. they are exporting two million barrels a day more than they were this time last year. so you have saudi arabia year-to-date exporting 725,000 barrels a day more. iran, they're walking the walk, talking the talk, up to two and a half million barrels a day. that's more than double -- >> can we go back into the 30s? is that realistic? >> it is realistic. there is a demand response over the last year or so. even if we have one and a half million barrels a day of growth coming through from demand, there is still so much oil out there. and you've also seen the production response in the u.s. as well. >> what if a far-left candidate were elected here in the united states, and let's say all the, you know, the climate change alarmism becomes policy, i mean, so -- they don't want to frac,

right? new york state we can't frac. >> to your detriment. >> i agree. but what would happen if -- i don't know if the candidates on the left ever really plan -- they're in an election season where they're saying things to -- it's not necessarily going to be acted on. pragmatism usually takes over once they're in a position of power. what if they really followed through on the policy that totally cut back on hydrocarbon development? where would oil go? what would happen? >> i think in terms of the balance, shifting away from oil, i just don't see it really happening, you know. >> it has to happen according to these people. it has to. the planet depends on it happening. >> it will happen as technology develops but it won't happen in the next few years. >> the price of alternatives has to someday become competitive to natural gas and oil which are the best deals in town right now. look what happened to coal. they can do it if they want to. >> it is happening already in

california in terms of they're producing so many renewables that the electricity is free and they're looking to push it into other states. you're already seeing that in germany as well. so we are getting to that point. in the midwest they have so much wind power it's bringing electricity down towards zero. in terms of the hydrocarbon front we still consume 20 million barrels a day here. there won't be a switch away from that. >> those boat rides to europe take a long time, andrew. >> they do. >> if you're not in the jets with the big carbon foot prints. >> they're not really yachts. >> no. >> you saw where leo had to stay. stinking. what do they call it? >> the third class -- >> all the way down. >> all the way down. >> he's talking about the titanic. >> steerage. >> with the luggage. using a suitcase for a pillow. >> thanks. appreciate it. when we come back, the tinder party is over at least for underage users.

we'll tell you how the dating app is shaking up the rules on its platform. one man only needed a blue shirt to steal $16,000 worth of iphones. that story next. "squawk box" will be right back. tokyo-style ramen noodles. freshly made in the japanese tradition, each batch is small. special. unique... every bowl blurring the line between food...and art.

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. okay. online dating, folks. tinder swiping left on teenagers. the dating app shutting down its platform for those that are under the age of 18. at least those who claim they're 18. tinder previously let those between 13 and 17 -- >> -- before she was over 18? did that girl swear she was over 18 to you? >> not, not -- no. i don't -- there is no -- >> you have an experience with it? do kids lie? >> oh, they lie all the time. they lie all the time. i have no personal experience. tinder previously allowed those 13 and 17 be matched with those

in the same age group. >> really? kids on tinder? are you kidding me? >> it's news to me. i know. >> 13, 14? is there any cutoff? >> this goes to also facebook. how old should you be to be on facebook? >> you should be monitored by your parents. >> in california now you have to be 21 to buy tobacco products unless you are in the military. then you can be 18. they couldn't get around, if you're old enough to die for your country you are allowed to smoke a few cigarettes on the way. otherwise you have to be 21. i didn't know, you know, the tinder thing. so swimming left means -- >> i forget. one way you throw them out. >> swipe left, you get rid of them, you don't want them. it if you're interested you swipe right. >> good news. we're for that, then. i can't imagine. kids 15 on tinder. >> 13 . >> 13 to 17. man dressed as an apple store employee walked off with $16,000 worth of iphones from

the company's new york city soho location this week. he was wearing a shirt similar to the ones employees wear and managed to make it out of the store with 19 iphones. they used to wear new shirts for every product launch but last year made a switch to the permanent blue shirts. the king of burritos has been dethroned according to the latest harris poll measuring how consumers feel about restaurant brands. mow's southwest grill unseated chipotle as the most popular mexican chains. mow's have less than half the locations than chipotle. i'm willing to try one. >> i've never been to one. you wonder why at this point in time. >> i don't. route 17 in peramus. 650 restaurants versus 1900. chipotle now ranks behind taco

bell, qudoba and baja fresh. that's what happens. coming up, is it over now for bernie sanders? he was being nice yesterday. >> he was. after walking out of the oval office he sounded like he was all on board. >> the presidential candidate vowing to take his fight to the last primary but also pledging to help hillary clinton fight drochl. larry sabato. he joins us after the break on the latest for the race for the white house. the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov

♪ ♪ don't you dare look back, just keep your eyes on me. i said you're holding back. she said shut up and dance with me ♪ ♪ among the stories front and center at this hour, yahoo in the process of evaluating the latest round of offers for its core internet assets. cnbc's david faber reported yesterday that verizon was actually outbid by at&t. yahoo reportedly set to put together a new short list of final bidders and will solicit binding offers from that list. also, instagram attracting more social media ad campaigns

than twitter. that's according to a survey from strata, a unit of our parent company comcast. the first time the facebook unit surpassed twitter in that category. in yet another sign of possible trouble for the company. japan's biggest ipo of 2016 debutin debuts next month. line. current projections valuing the company at $5.5 billion. hacking in america? wendy's says it's found a second type of malicious software at payment terminals. the fast-food chain warns the number of locations affected will be significantly higher than the 300 previously reported. wendy's first launched an investigation in january after learning about fraudulent charges on some credit cards that had been legitimately used at some of its locations. there are currently lawsuits against the company seeking class-action status. can i just add this is why

you never should use your debit card or never input your pin number. if it's a debit/credit card use it as a credit card because then it's not your fault, your problem and you haven't inserted your pin number and given them your pin number. >> i get mad at people that are -- you know, is cash -- nobody under 40 uses cash? >> i don't carry any cash. zero cash. you usually have about $200 but not always. >> zero. >> wendy's, for god's sake? >> i think, if you were to catch me most moments in the last two or three years, totally cashless. >> fast-food place? >> use a credit card. >> it's fast. now slower because the pin. you have to put the card in, wait. now they often ask for the pin. >> don't give them your pin number. tell them to use it like a credit card. >> cheaper a lot of times if you say cash. >> see? you are a coupon clipping, i'm not buying gold because it was up and i'm going to get two

pennies back for every penny i spend. >> you call me a cheap skate. >> you are getting cheaper. >> not as far as you know. [ laughing ] >> i don't think you've actually heard me. or have you? have you heard me call you a cheapskate? >> sure. >> never mind, then. i didn't know you had actually heard me. >> i'm sure we have videotape of it. check this out. power outage at an amusement park outside of charlotte leaving riders stuck up in the air. cellphone video showing the wind seeker swing ride with 32, two-seat passenger seats on a 300-foot tower. stuck there for a while. a local tv station reports people stuck in the air for over an hour. people were also stranded on two other rides before being rescued. no reports of injuries, so it all ended well. squawk sports news. paris is gearing up to host soccer fans to watch the first match in the european championship in that soccer

tournament. france will take on romania tonight. and -- what do you think immediately? it's first -- just reading it. i am thinking -- >> first thing this morning. >> paris' police chief and france's national rail company are advising paris area commuters to go home early to avoid helping clogging the capital's strike-hit rail network. i was also thinking about -- that was a soccer game last -- >> soccer match before -- one thing i heard this morning is they think they can keep things secure but the police are tired because the seine hasn't completely gone down and the striking garbage workers. >> now you worry about not on the plane. people waiting in line to get on the plane, to get through security. not people in the stadium. the lines generated as people are getting checked to go into the stadium. huge crowds there. >> there is a park where they're setting up for like 90,000

people who can't get tickets. >> can't ever get completely ahead of it. >> to harden up soft targets. it's very, very difficult. hopefully -- fingers crossed. meantime, hollywood movies. jennifer lawrence and adam mckay teaming up for a movie about theranos. lawrence set to play elizabeth holmes. there is no script. mckay best known for last year's financial drama "the big short," which won the oscar for best adapted screenplay. fair warning. this is still in development. >> is she a protagonist or a villain? >> we have to see. >> they haven't decided. >> we won't see it on the silver screen for at least another few years. >> maybe it's one of the movies where you're not really sure. >> those are the best. >> hero and anti-hero in the same person. >> same person. okay. now i have to say -- my next two words are president obama.

>> there you go. >> depends on wouho you talk to. president obama officially endorsing hillary clinton. in response donald trump tweeting obama endorsed crooked hillary. he wants four more years of obama but nobody else does. clinton fired back a tweet of her own. this is great. she used the word "delete." delete your account. someone messed up. that led to another tweet by reince priebus, chairman of the rnc saying, if anybody knows how to use a delete key, it is you. >> our next guest forecasting a long, hot political summer. larry sabato founder and director of the university of virginia center for politics and a well-known commentator. i mean, not for nothing, larry. who knows what the next five months brings. but good time to be a political commentator. is it not? >> absolutely. lots going on. >> i mean, things that are

somewhat unprecedented, don't you think? maybe other countries have had -- have been down this far in the muck. we shouldn't -- we shouldn't constantly be saying, oh my god, i am shocked by what's happening. should we? >> it's an unorthodox campaign. i want to put it as positively as i can. i have followed this really all my adult lifetime and there has never been a campaign like this. we have never had candidates like this. one in particular. >> i don't know. i think you can throw both of them into that mix, larry. i don't know which one you were talking to. just to be objective, i think you're safe. both have 60% negative ratings. close to it. how does -- how does anyone win a majority if you've got -- both candidates have 60% -- and how did we get here? what's wrong with the nominating process? >> a lot of people don't want to run anymore, and some of the good people who run don't have the money to run and to win.

you can analyze it six ways to sunday, but we are where we are and whatever happens on the third-party front we're going to get one of the two major party nominees obviously elected president. >> so what will be -- i mean, the next -- there's going to be some interesting things leading up to the two conventions, which will be interesting in their own right, in the first time for i don't know how long. who is going to pick the veep first, do you think, and what are the different dynamics in both camps? >> trump says he's going to pick his veep at the convention. and it makes sense because he is a showman, and he knows you have to build drama to build an audience for a show. and he wants to turn the convention into a show that actually attracts a very large audience. so you would save the vice presidency for the convention. hillary clinton, on the other hand, is very process oriented. so she has a very detailed process for selecting vp.

she would be inclined to pick the vp ahead of the convention. personally i think it's foolish because she has got the great advantage of having the second convention. she can react to donald trump's choice with her own choice in having that second convention. she may forfeit that if she decides to pick early. >> i don't know whether she would even want to be seen as reacting to something that he is doing as an answer either. figures -- might be better if she thinks she is the leading candidate and sort of has it to lose she would want to dictate her own choice, i would think, not be swayed by a reaction to the other guy. >> probably. probably. i still think it's useful to have, as you guys know because you cover the markets. it's always important to have as much good information as possible before making a big decision. knowing who trump's vp is is kind of a big piece of important information. >> so we've got most of the

endorsements on the democratic side out of the way. donald trump used the teleprompter now. i would figure, not that that's a bad thing necessarily. i would figure that he -- he may have gotten a little bit of religion with five months left. is there -- is there fluidity still in the middle? because let's say you've got 40 and 40 totally solid. you know? 40 -- totally solid for hoiilla. 40 totally solid for trump. is the last 20 swayable? >> i don't think it's nearly as high as 20. look, we live in a very polarized era. again, i have never personally seen -- i would say it's more like four to six. that's where we usually peg the number of independents, despite what gallup says. the hard-core independents who actually vote may be 4% to 6%. everybody else is either openly for a candidate in a party or

they are what we call hidden partisans. they don't tell you who they're for but deep down they're for somebody. you are talking about a relatively small percentage, especially in a year like this. these two are incredibly polarizing. >> right. and then you have got, on the republican side, you can't -- trump can't count on all the republicans, but he might be able to count on some of the populist-type democrats that don't like hillary for whatever reason. and there are some. and so he could draw some from the -- from the other side, from that side, and then you've got all these -- these #nevertrump republicans. who knows what they're going to do, whether they stay home or behind the curtain whether they vote for hillary clinton. larry, do you -- >> or libertarian. >> right. then the libertarian, he seems to draw more from hillary clinton than he does from trump because trump has gone ahead in some of those. it's crazy.

i guess what -- what really is a wild card too, is there any way that the general -- that all the polls and all the pundits can be as wrong about trump as they o were in the primary? jeb bush got 4% or 5%. talk about -- obama said hillary is the most qualified. i don't know who is the most qualified but jeb bush was a hell of a candidate. 4% to 5% versus ten times that much almost for trump. how can we possibly know about the general? >> well, there is a reason why general elections can be more predictable and usually are more predictable than primaries. even though we think of these millions of people turning out for primaries and caucuses as being significant, and it's a significant number, but it's tiny -- it's a pond of voters compared to the ocean in the general election. trump and hillary each got maybe

14 million, 15 million votesment sounds like a lot of votes in the primaries. 135 million people will turn out for the november election, and they tend to respond to the same factors every four years, the popularity of the incumbent president, what they think about the incumbent president and his party, the state of the economy, what's happening in foreign affairs, particularly if something big is going on. big scandals. these are the same factors that pretty much produce every presidential result. >> though we've been wrong with the polling data. there is a story out today from the "new york times" suggesting that we've just been off. we have been lazy and used polling data and that is not reflective of what's really been happening with some of these actual elections. >> yeah. i read that. i have, you know, contrary reactions to it. everything is wrong. all that data is wrong. the census bureau numbers are wrong. the other thing the author cites

are wrong too. you don't just rely on exit polls. but you don't rely necessarily on the numbers he cites either. >> you in virginia right now? is that -- >> i am in virginia. i am at the university of virginia in lovely charlottesville. >> love it down there. got a bunch of felons voting. got that squared away yet? are they sending the applications right into death row on some of those or not? what's going to happen with your boy terry? is he going to be all right? >> well, i don't know about the fbi. the felon thing. so far about 7,000 have actually registered to vote. the number is much smaller than the ones you have seen. i don't think it will be significant one way or the other. >> too bad. that was the whole point, though, wasn't it? anyway. thanks, larry. see you later. when we come back we'll tap the ceo of moulson coors and talk about the business of beer.

the stock up 40% over the last year. can the big brewer keep investors busy for more. we'll find out after the break. through small things, big things, and spur of the moment things.

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working to close a $12 billion deal to finally get full control of miller coors from sab. mark hunt on the set. ceo of molson coors. i have seen america beer for bu budweiser, no longer head quartered in the united states. aren't you the only brewer located in the united states. >> there are five stocks trading on the new york stock exchange that can trace history back to the new york acoustics founded in 1972. the moulson story goes back to 1876. coors was founded in 1873. the dna of craft brewing is in our heritage. >> i wonder if people know the king of beers and america and budweiser is not headquartered

in the united states. >> public has no idea. >> that's a fact. we're interested in our history and the future we're creating for ourselves and we're excited about the transformation we have coming up in hopefully the relatively near future. >> where do we stand demographically with what young people are drinking? where is beer? is it back? is it going back out? is it rebounding? is it on the decline? >> beer, when you look at alcoholic beverages is still the biggest part of alcoholic beverages. actually the renaissance in beer over the last decade with interest in flavors and styles and provenance has been a good thing for the beer industry. actually, drinkers are choosing slightly more expensive drinks and slightly more expensive beers. they're trading into imports and craft and well-invested local brands as well. brands like coors banquet has been growing for the last ten years now. >> how about miller versus miller lite? is miller rejuvenated?

that was a brand that was kind of -- it had fallen out of -- is it more light now? >> miller lite certainly in the last two years has really bounced back strongly. we have i think rediscovered the magic behind the brand. the originallite beer, put it back in its original packaging. the brand has come back strong. >> where will the innovation be? in aluminum cans to keep things cold, long-necks or on craft -- something that's different than -- >> we have a broad portfolio. so we have to be across the waterfront. you mention aluminum cans. bill coors who is the grandson of the founder, he is 100 this year, he still tastes the beers every month at 100. he says they don't pay me much and i can't see or hear much but i know if the beer is good. >> the stock has been on a tear. what do you attribute it to?

>> management. >> performance. >> how wonderful we really are. it's moved materially. >> it's our performance and the potential of the transformation. when we close this deal our business will double from a top-line and a bottom-line perspective and our beers will be available in over 70 countries around the world. >> how much more consolidation can and will happen in this business? are we sort of now up against it? >> consolidation has been part of the evolution of the beer industry. i'm sure there will be more to come. clearly it's become more consolidated so it will become tougher. i think it will still very much be a part of the future. we're focused on bringing home the transaction and doubling the size of our business. >> you know that high heel is going to be introduced pretty soon. >> i have heard of this, yes. >> for women. beer just for women called high heel, made by a master brewer named christy mcguire. hasn't worked in the past, targeting the ladies with beer

necessarily. >> i think when brewers get really overt and really explicit what tends to happen is that people kind of see that coming, women can see that coming. the great news is that more women are drinking more beer than we have seen for a long time. i think the explosion in choice has really helped there. i am not sure you need to be so -- >> soda stream is it going to make beer too. >> they stopped doing the cold drinks in the past couple of days. do you think this is real? >> potentially, yeah. we are all looking for opportunities to tap into new occasions. looking for opportunities for people to enjoy beer. that's the great thing about leading a beer business. it's so fundamental for people. >> very good, mark. >> where are you from? >> there's beer over there. >> nice. >> play at st. andrews? >> i have. i'm more of a football or soccer

fan as you guys would say. excited about the euros coming up. >> football is oblong. you just misspoke, i guess. ♪ when we come back, today's stocks to watch. stay tuned. you are watching "squawk box" on cnbc. first in business worldwide. what are you doing? getting faster. huh? detecting threats faster, responding faster, recovering faster. when your security's built in not just bolted on,

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ahead of stimestimates. a 10% dividend increase at 22 cents a share. it is the nation's largest tax preparation firm. it said it would focus on stemming client losses and lower its expenses. shares have not fared well this year. amazon.com was rated outperform in new coverage. at william blair. something about the company attractive to william blair at this point. the firm says its rate something primarily due to potential growth of the company's amazon web services business. i think he also had a note yesterday taking down some of the traditional retailers because of amazon's increasing gains in e-commerce, drawing more people. it's the market cap now. now that they've decided to begin coverage on, oh, amazon. >> 343. >> forego the first 343 billion of wealth generation. they're going to get on here.

when we come back, robust house flipping. millennials' renting habits and the return of low down payment mortgages. have the seeds of the next housing bubble already been planted? we have a debate with two ex pe -- experts next. dow futures down by 90 points this morning, the weakest we have seen all week. s&p futures down 13. nasdaq down by 32. "squawk box" will be right back. ♪

global market alert. oil prices dropping. bond yields falling and global equities are selling off. what's happening? the race for the white house. hillary clinton and donald trump on a collision course. the issues, the tweets, and the fight for america. former governors jud greg and bill richardson join us to debate. is a bubble brewing a new flood of flippers? the return of low-rent payment mortgages. we'll raise the roof on the real estate market as the final hour of "squawk box" begins right now. ♪ live from the most powerful

city in the world, new york. this is "squawk box." ♪ welcome back to "squawk box," here on cnbc, first in business worldwide. i'm joe kernen along with rebecca quick and andrew ross sorkin. we're less than 90 minutes away from the opening bell, but only 60 minutes away from the weekend for some people. the futures right now are indicated -- yuck -- down 91. still not triple digits. the market -- almost as if the jobs number -- first it went down, remember, because it was a crummy number. then up a little bit. makes you think we are not getting a lot of bang for the buck about staying at zero. >> you have to wait and see what happens next week and with brexit. >> they can't raise rates because -- >> we're questioning whether they can get to the point where they can raise rates. it would be a problem if they don't get to that point ever.

>> european markets and oil prices on the screen now. looking at down arrows across the board. >> 2% across the board. some of today's top stories. tesla saying there are no safety defects with the suspensions of model s or x and that government officials have not opened a formal probe. officials have asked for information about the suspensions. yahoo in the middle of a process of evaluating its latest round of offers for its core internet assets. good friend david faber reported yesterday that verizon, which many had thought would be the final bid, might actually have been outbid in this case by at&t. yahoo reportedly set to put together a new short list of bidders to solicit binding offers, final bids. we'll see where that all ends up. just one economic number on the calendar today. university of michigan comes out with its mid-june consumer sentiment index at 10:00 eastern

time. it's expected to fall slightly from the last reading. stocks to watch. dow chemical and dupont scheduled meetings to hold shareholder votes on the planned merger. both companies will hold meetings on july 20th. they announced the merger in december and see the deal closing in the second half of the year sometime. mobile eye and delphi automotive rated overweight by piper jaffray. they have the best chance to benefit from the increasing use of technology in the auto industry. fears bulk up that the housing market could be headed back to the bubble. the frothy wave of new flippers and low down payment mortgages have made their way back into the market. a reality check with diana olick. >> reporter: andrew, the housing market has put out a lot of mixed signals this spring. on one hand there is solid, strong demand for housing, both buying and renting. you have the largest generation

coming of age. the second largest generation down-sizing or moving to retirement. and mortgage rates stuck near record lows. all good things. why are sales well below normal and prices going through the roof again? no supply. buildings are ramping up but mostly on the luxury apartment side. single-family housing starts are rising but meekly, 1.2 million homes a here year is the histor norm. we're still building only around 780,000 for this year. sellers, 4 million still stuck in place, under water on their mortgages. in fact, 18% of all homeowners with a mortgage have less than 20% equity. they're not ready to sell. flippers, yes, they are back with a vengeance to take advantage of all the rising prices. but they're all-cash buyers, pushing the regular buyer out, creating even more upward pressure on home prices. yes, millennials, as i said, they're getting ready to buy the homes, they're getting to the

buying age. but again, far too few of them can afford it. back to you guys. >> thank you. is there another housing crisis looming? joining us right now to talk more about it is ethan penner. he is managing partner with m mosaic real estate investors and sherry oy lickson founder with the carnegie group. are we getting to the point where you gete concerned about what's happening with pricing and availability? >> i think pricing is an issue for sure. i think pricing will stimulate more building. i don't worry about a crash, you know. a bubble -- we are clearly at very high pricing by historical standards, but that's true of every financial asset. in my mind it's more a reflection of interest rate policy than anything else. i think that, for a crash to occur, as occurred in the '08 period. it was really rooted in many,

many, many borrowers not being able to afford the mortgage they took out, and then having those mortgages leveraged systemically in amazing ways through securitization. >> what about the securitization in particular? you know about this with commercial mortgage backed securities that you helped to create. what went wrong with the securitization process? and could we get to that point again? >> we have no signs of that. the last -- since the crash, the securitization of residential mortgages on the private label side, which is nonfanny or freddie, has been virtually nil. that's obviously the opposite of what was the case leading up to the crash. it's not securitization per se that made -- led to the crash. it's a combination of first the raw material, the loans that were included in securitizations were bad loans. and so first you have to have

loans that go into default, which were kind of included in securitizations precrash in an abundant amount. then you had kind of synthetics created off the securitizations in the cdos and the cdos squared. there was a completely different world leading up to '08 than leading up to today. >> sherry, what about you? when you look around and look at the industry, you are concerned about high prices as well. where does that lead you? >> clearly we look at prices and other fundamentals when trying to evaluate whether or not there is a bubble. the thing is, in some markets we are seeing that. overall prices are up 5% to 6% a year. some markets, though, portland, western cities, 10% or 11%. clearly that's a problem but we have to look at it in the context of other fundamentals like wages. wages up 2% to 3% a year. that's where the real problem comes in. with loans we are seeing pop-culture indications like the

quicken rocket loans or fast loans, but the rules that were put in place under dodd-frank, specifically the qualified mortgage rules which prevent certain risky features that caused the bubble like the teaser rates, negative amortization. >> the no down payments. no documentation. >> right. >> no documentation of income verification. >> what ethan was talking about is addressed with the qualified mortgage residential rules. >> why do you throw the quicken rocket mortgage loan? i signed up for one recently, and i had to prove my income. >> it's more about the attitude. that's one of the things we don't talk about when we talk about bubbles. we talk about easy money, prices, we talk about speculation, which is a big issue and whether we are seeing investors or not. that's a big difference. the investors we're seeing now, the flippers, are actually selling to real-live people. in the bubble there were no real-live people.

we don't talk about american attitudes, which was the subject of my first book, that's changed. we have removed the stigma associated with foreclosures. it's a business strategy. we have someone running for president who says business bankruptcy is a strategy. when americans look at housing as something to speculate on that's the biggest indicator in the modern housing world of a bubble. >> ethan, let's talk about the foreclosure process. i have heard recently from people in the industry that foreclosures are picking up in states where they'd been slow before. is that a good thing or a bad thing? >> again, i don't think it's a thing, per se, meaning i think that -- i just don't -- i don't see things problematic today nationwide. i understand the attitude issue

that was just discussed. but i think speculative orientations exist in every market all the time. i do think, in the end. it's easy money, right, that determines whether those speculative inclinations are fulfilled or not. >> whether things get out of hand. >> there have not been fulfilled since the crisis. and i don't see any signs today that are troublesome. >> is that because you think the regulation has worked and prevented some of those things from happening? >> i think that it's a combination of post-crisis borrower fatigue. i think it's lessons learned about excesses both from a lender and a borrower perspective. i think it's -- or different ideas about home ownership. i think it is a combination of all those things. i think household formation for the 18 to 35-year-old set has been extraordinarily slow to come about. there are a lot of reasons that

i think have come together to kind of make things, in my mind, not dangerous. i do recognize the fact that prices are very high in affordability in many cities is now not very good. but i think that's been a trend going on for quite some time where more and more. look at new york. that's where you guys are and i am from. the percentage of people's money that's spent on housing has creeped steadily higher for decades now. >> sherry, that's a good point. we have learned our lesson, the riskiness of this reason. people will be watching for all the signs that happened last time. >> there were so many sort of interwoven issues on a global basis where the contamination was really spread. i think ethan's example of new york is a great example. i think we're living in a different world where globalization really matters. we haven't revised the

indicators and certainly the fed has not revised the tools to deal with the new realities. here in new york, as an example, we had the global economy fueling our high-end markets. and these uber-luxury condos. i have been looking at condos not far from here, and the prices are going down. one particular property we have been looking at over the last two months, i can buy it for a quarter million dollars less than it would have been two months ago. that's symbolic of how bubbles in this market may correct themselves. but for entry-level housing -- >> we may be throwing the terms crash and bubble around too loosely. those are price corrections. >> don't you think the new york city market is substantially different -- >> yes. >> by the way. new condo? >> existing condo. it's a co-op. >> pre-war? post war? >> prewar co-op. >> andrew is in the market. >> those are types of global

influencers that are impacting our market today and that we're feeling the bubble. we had a lot of foreign investment because of the exchange rates, other factors and the united states being a safe place for investment. not so much anymore. it will remain to be seen in terms of who wins the next election and housing. the issue is affordability for the entry-level homeowners. the homes are not affordable. and also we have wall street now in the market as -- building a rental market. they're securititizing rental properties and becoming a big owner of the properties, driving rental rates up. >> thank you both for coming in. when we come back we'll talk real estate. when we come back, donald trump and hillary clinton headed for a collision course in november. two former governors join us to debate the issues on the campaign trail. bill richardson and judd gregg. you're watching "squawk box" here on cnbc.

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welcome back to "squawk box." take a look at futures. we look like we're going to open down perhaps in a big way. dow could open off 88 points. nasdaq looks to open 31 points down. s&p 500 looking to open off

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thomas perkins, a legendary venture capitalist in silicon valley has died at the age of 84 years old. he co-founded kleiner perkins in 1972 creating some of the most successful tech companies in the world. josh lipton joins us from francisco with more on his life and legacy. josh. >> well, andrew, he is described by his colleagues on sand hill road as one of the god fathers of the venture capital industry. thomas perkins was a true pioneer, developing the very model of the modern vc. in a statement to cnbc, kleiner perkins saying he defined what we know of today as entrepreneurial venture capital by going beyond funding to helping entrepreneurs realize visions with operating expertise. he was there at the start of biotech industry and computer revolution. he was our partner and friend and we will miss him. perkins is credited with

recruiting silicon valley hall of famers to kleiner perkins like john dougher. leading to developments in companies like amazon and google. his career wasn't without controversy. in 2014 he wrote a letter to the "wall street journal" saying writing from the epicenter of progressive thought, san francisco, i would call attention to the parallels of fascist nazi germany to its war on its 1%, namely the jews, to the progressive war on the american 1%, namely the rich. the crude comparison left to swift criticism from the tech industry including mark andreson. how does silicon valley ultimately remember thomas perkins? we're told perkins did make mistakes but should be remembered for the v.c. industry he helped to create, the great success he spear-headed for his firm, his investors and the companies he helped to fund and lead. back to you. >> thank you, josh, for that really sort of beautiful

obituary. joining us now to talk more about this, david kaplan, the author of "mine's bigger," a biography about tom perkins. david, how do you think perkins should be remembered? >> i think he'll be remembered in the pantheon in the history of silicon valley along with hewlett and packard. gord moore. andy grove and steve jobs and others. some of the stupid and silly things he said in recent years are so, but they shouldn't be confused with his role in the valley over 50 years and its importance. >> you just listed a number of people who all would be described not just as entrepreneurs but true innovators, people who created something from scratch. clearly he did too in the venture capital community. didn't necessarily build technologies themselves. how do you compare that? >> the various companies that we could mention, intel. apple and so forth, were

singletons. they were one-offs, obviously important. but perkins, as a venture capitalist, was the center of many different spokes. and but for him, genen tech probably wouldn't have happened. he went out and looked for young academics who may be stuck in the long process of getting stuff done in academia and who might be looking for a small investment and in turn changed the world. $100,000 is all he put in with gene cliner early on. that became guenin tech. he repeated that formula in compaq and other companies. others had backed young entrepreneurs in the valley but it was really perkins along with kleiner who institutionalized the idea of venture capital. >> can you explain his relationship with the firm

towards the end of his life. it seemed to be more complicated than it was obviously earlier on. >> well, perkins retired in the mid '90s, largely because his first wife was dying and then died. he had other projects. sailboats. he wanted to pursue. so long before he became controversial, he and -- he had become a limited partner at kleiner. he was on the board and sat in on important decisions. only in the last four years when he started unfortunately to speak his mind on stuff he didn't know a whole lot about did the firm distance itself from him. and had to. the things he said were indefensible. >> david, we want to appreciate your perspective this morning. thank you for calling in. >> glad to be here. >> thanks. coming up, the battle for

the white house heating up. hillary clinton getting a trifecta of endorsements and donald trump slipping behind the democratic nominee in national polls. we'll talk politics next. look at u.s. equity futures as we head to break.

polls.

♪ ♪ ♪ here it goes again, oh, here it goes again ♪ welcome back to "squawk box," everybody. here is what's making headlines this morning. we'll be getting the latest data on consumer sentiment in about 90 minutes. university of michigan's mid-june reading expected to come in at 93.5. down from the 94.7 at the end of may. medtronic won a favorable decision in a 1.4 billion dispute with the irs involving the puerto rico subsidiary centering on how much of the device maker's product should be taxed at puerto rico's lower rates and how much at u.s.'s

higher rates. check out the yield on germany's ten year bund. dipping below 0.03%, sitting at 0.028%. these are crazy yields. they've been under massive pressure since our jobs report last week which kind of indicated that the fed was not going to be raising rates next week at its meeting. if you look at the ten-year yields in japan and the u.k. also setting record lows today. again, that -- there is no alternative investment strategy. hillary clinton picking up trifecta of endorsements in the last 24 hours. president obama, vice president joe biden and elizabeth warren all backing the presumptive democratic nominee. this is new developments hit the front pages in her -- the email investigation. and on the republican side, a week of controversy taking a toll on donald trump's polling numbers. the gop nominee slipping behind hillary clinton in a new fox news poll. is a red-hot summer of rhetoric

on the horizon? that would be yes. joining us now. former u.s. senator judd gregg and we hope former new mexico governor bill richardson will join us in a moment. judd, good to see you. >> thank you. >> i want to start with -- >> great. >> yep. good to see you. what was the first thing i wanted to start with you? yeah. so -- all right. the way i read those endorsements, you had the same feeling. i made a joke earlier that maybe it was a surprise that -- that the president didn't endorse someone from the same party, the socialist party. but i think we knew the president. he wants his legacy to go forward with -- should we put commentary at the bottom? >> you should. you should. >> andrew -- seemed to be getting agitated over there. it was a joke! it was a joke, right? not big endorsements from yesterday but what are you expecting -- let's go to the next two weeks? what will we see? >> well, i think the big issue

is not the president's endorsement which as you say was absolutely expected or the fact that elizabeth warren endorsed hillary. she is an academic socialist. that's where the party seems to be headed. it's the issue of how they deal with bernie. and the fact that they're making a big push to take bernie's agenda and make it the agenda of the democratic party. that means the party is lurching very far to the left and moving away from the concept that a america economy makes america strong and toward the concept that a french type of economy will make america strong. this will be at the center of the debate going into the fall. >> you are wondering how they move back and whether the democratic -- whether the -- >> no. i don't think they do move back. i don't think they do move back. i think they're going to pick a democratic vice president in order to satisfy the bernie-warren wing of the party. that means they'll move further to the left and basically solidify the position of the

socialist movement within the democratic party. i mean, bernie is a socialist. >> judd -- >> he has only recently become a democrat. >> judd, what would that be? >> elizabeth warren seems to be at the top of the list. of course, that would be an interesting choice. and i suspect a very positive choice within the democratic rank and file. she clearly is -- she is actually to the left of bernie, in my opinion. >> she is, yeah. >> it's going to be somebody of that approach to governance. >> i have a hard time seeing hillary clinton choosing elizabeth warren. who else would fit into the mold? >> there are a pum couple of pe who are liberal and progressive. sherrod brown. he is very liberal and could fall into the progressive arena. i think he might be a very good

choice. he would be a constructive choice in my opinion. >> i know you are supporting donald trump, but i am -- what i don't know is whether you're supporting donald trump because you like donald trump or because you hate hillary clinton. help us with that. >> actually -- >> are you supportive of the things that he said about the judge this week? >> oh, absolutely not. that was inexcusable. >> what about what he said about john mccain? >> that was unexcusable too. >> to actually -- >> we can make a list. >> he said that eight months ago. >> you defined my position incorrectly. >> i'm trying to understand the thinking. >> wait a minute. there were a couple other good ones there too. let's focus on the -- what about what he said about john mccain, senator? go ahead, i'm kidding. >> i'm not going to get into that type of a contest. i actually haven't committed to donald trump. >> right. he hasn't. >> i am one of the folks in america who is looking at both candidates and sort of shaking their head. what i'd like to see from donald

trump is some recognition that he is now the leader of one of the two major parties of our nation and he may well be president of the united states and he needs to put forward a persona that's substantive and rational. hopefully that will evolve. >> if he were to stick with the conce current persona would you be supportive? >> no. basically he has been far too erratic, and on complex issues of substance he has been superficial. he has to evolve. people do evolve in this business. when you go from running in a primary in your -- within your party to being -- running in a national election, you're speaking to an entirely different electorate. i think you have to change your tone to resonate with the american people generally, not just with a faction of the party. >> let's get back to the defense -- or the prosecutor. i'll ask this question because i

have to. is there any way hillary clinton could ever evolve into a candidate that you would support? >> no. >> okay. >> i mean, basically she -- she basically -- >> so trump could evolve but hillary clinton could in no way ever evolve. so trump could evolve -- >> we as a nation -- >> right. >> the strength of our nation is our -- is the capacity to give people the opportunity to do better, and you don't have that in an economy totally dominated by the government, a progressive economy or socialist economy. that's just not going to happen. we have moved so far left under this administration that a continuation in that direction i think will undermine our impa e capacity to be prosperous and pass on to our kids the opportunity -- >> what i don't understand is why you would be convinced that she is actually going to move to the left in this race and bring on elizabeth warren when ultimately it sounds like, if she had a centrist style vice

president and potentially policies that arguably were considered centrist before this last election, that people like you wouldn't ultimately go for her? >> well, i just don't think that's going to happen. i think the party has basically lurched after the rails of matter capitalism and switched over the french economy. that's the direction of the party. you see it throughout the representations being put forward in the policies. she just came out for basically a single-payer system when she suggested everybody should be able to opt into medicare. that's a major shift in our approach to health care and the economy. it's essentially a socialist approach. >> do you think trump could be that bad? >> excuse me? >> you think trump could be that bad? it's a binary choice, judd. that's the point i am making. >> it is a binary choice.

you're right. >> you described the perfect scenario which only leaves you with one option that you're unwilling -- i guess you're massaging it a little hoping that you can cause some changes in behavior on the republican candidate. because you just described a binary choice. it's an either/or. it's not a deal me a new hand or maybe we'll change the convention rules or something like that. i mean -- what if it was a bicycle versus hillary? what if it was a bicycle versus hillary? wouldn't you vote for the bicycle? >> no. joe, you're right. you have basically hit the nail on the head. >> i know. but i don't know whether everybody is dancing around that all the time. >> i'm not dancing around it. >> it leaves you open for wiggle room for people to tell you, you should decide on hillary eventually then. >> well, i am not going to be voting for hillary. >> okay. thank you. >> but if donald trump doesn't become more substantive, thoughtful and directive -- >> you'll stay home. >> -- on his approach, we have

problems. >> bill richardson was supposed to join us. it wasn't his fault, i don't think. he is back in the fold with the clintons. he was way off. >> i think so. >> he said that on our air. >> for a while he was persona non grata. when we come back we'll have the morning's biggest stock movers. stick around. you're watching "squawk box" on cnbc. first in business worldwide.

proud of you, son. ge! a manufacturer. well that's why i dug this out for you. it's your grandpappy's hammer and he would have wanted you to have it. it meant a lot to him... yes, ge makes powerful machines. but i'll be writing the code that will allow those machines to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he can't lift the hammer. it's okay though! you're going to change the world. hello prashant bhuyan. co-founder of the fintech services start-up. hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights.

insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson. welcome back to squawk this morning. stocks to watch.

amazon.com rated outperform in new coverage coming from william blair. the firm saying its rating is primarily due to potential growth for the company's amazon web services business. when we come back, it is a very special day at cnbc. one of our own is celebrating a big anniversary, and we will join the fun when "squawk box" comes right back. ♪ i could get used to this. now you can. when you lease the 2016 es 350 for $329 a month for 36 months.

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♪ welcome back to "squawk box," everybody. before the break we told you that a very special person here at cnbc is celebrating a major milestone today. who is it, you ask? it's our very own joseph richard kernen. >> what am i doing? >> he didn't know. you were looking at your iphone. >> 25 wonderful and memorable years here at cnbc. it's your anniversary today. >> happy anniversary. >> actually right now? >> it's happening right now. >> i don't think that's -- bill griffiths was a couple of weeks ago. >> according to hr, this is the

day. >> who is he? i never had any experiences with anything called an hr. >> today is the day. today is the day. 25 years, my friend. this morning, joe, we've picked a little something special out for you. we know how you like things. listen to this. all eyes are on you today. here is a look back at some of the fabulous and best moments of the last quarter century. >> why didn't i look in run-down. >> take a listen. >> take a listen. >> good morning. joe kernen. no rest for the weary, as they say. >> let's just get rid of this sucker right now. >> yeah, baby! >> i'm allen greenspan, how are you? >> david, how big does the merger have to be for you to wear a jacket and go up on the set? >> joe's ragging is fun. it brings out the combativeness in all of us. it gets you go. >> unbelievable. i can't believe it. >> voila.

>> good morning! >> look out. >> jesus! >> woo, woo, woo! >> now i'm the best-looking person on the screen. >> joe tries to create those dustups with me. that's one thing i like about my dear friend joe. >> we're going to do stocks to watch, but it's going to be a bad day today. >> you want me to wrap? i know. i have to wrap. >> i like having joe. it's fun. >> so far, no signs of intelligent life. >> so far so signs of intelligent life. >> all right. just as if i am walking naturally. >> walking naturally. >> so natural.

it's so hard. >> hard to do that naturally. so i was 11 when i started, which is -- >> apparently. >> which is so crazy, right. >> you're looking good, sir. congratulations. >> i tell you one thing. and i always think about hair. but i can't win because i really like the way my hair used to be when it was really full. people didn't believe it back then. i see why, because there was so much. i am doing my own little clinical test right now, as you know, at home, on rogaine. it supposedly doesn't work here. only back here. it does not work on the temples, where we both are -- >> yes. >> but you're like younger. >> i'm -- >> you're six, seven years younger, right. >> yep. >> 25 years. f & n. f & n was bought by bob wright, jack well. >> we're not finished celebrating. we have more surprises for you.

hold on. in honor of today's celebration, joe, a friend sends in these wishes. >> hi, joe kernen. happy 25th anniversary, with business news network. cnbc, co-anchor, morning show "squawk box," since the show launched over 20 years ago you have been really, really busy. well, i decided i would bake you a cake or two to celebrate. we have a wonderful hummingbird cake, a hot milk cake and we even have a sweet potato pie. you want one or all? let me know. >> that's pretty neat. >> no joke. here is the cake. >> she got the cake! >> that's nice. thank you. thank you. that's honestly from martha. >> she made it for you. >> she made it. literally herself. >> blow out the candles. >> before. make a wish for the next 25 years. >> all right. i got it. i got it. there.

i'm glad they didn't put those ones -- i don't like things -- >> we're still here. >> exactly. >> andrew disappeared. >> that's right. [ laughter ] >> let's get down to the new york stock exchange. more friends want to join in on this as well. jim and carl are both standing by -- jim, probably the longest you have known him. well, always been great. always been nice. always was welcoming. boy, my father loved you, joe. we got to have dinner with you. he said, that's the guy. that's the guy. i love him. you just -- just be on his right side. >> got that right. >> the operative term is "right." >> you share your politics pretty lock, stock and barrel. >> that's true. >> so generous, joe. as a co-worker, as a co-anchor. though we know that, when we play paint ball with you, right, becky, the inner rage -- he takes the safety off. >> he is competitive. i will say. we were all playing to kill that

day. >> to this day i don't understand that. she was on the other team, and you're playing paint ball. when you come up to her on the other team -- what am i supposed to lay down my weapon and surrender to you -- >> i had a mark like you burned me with a cigar. >> i shot you because i was trying to win. you know what, i think gasperino, he may have rubbed off on me. he's a shark. he is. that might have been it. can we stop? really. don't. don't stop. anyway, thank you, jimbo. >> congratulations. >> at least we have kids, guys, and because otherwise you worry about getting old, you do, you worry about the years going by, but if you want to see your children add the years and grow up, there's no -- >> that's amazing watching scott and blake grow up. you don't think about their age until these things. >> i know, carl, you have your two twins -- not two twins, but

saw blake at prom and that hit home to you, didn't it? >> yeah. >> can i add greatest wedding. best wedding ever, joe. >> jim, yours was not too shabby either. >> thank you, but no, i remember yours. i remember mark saying let's go for a smoke. i said i don't smoke. he goes come on, come on. >> 25 years. >> 25 years. well, gentlemen, thank you for this. the celebration is not over. we have one more big surprise for you. on the phone an old friend of the show and idol of yours with us now on the squawk news line. mystery caller, would you like to wish joe a happy 25th? >> good morning, joe, hey, happy 25 years. man, it's unbelievable. and i hear they're having a huge party at price sale -- and you're going to throw out the first pitch. this is so exciting. i can't tell you because i remember when you came to the celebrity golf tournament up in tahoe and you actually believed you were a celebrity. >> yeah, i know that. you made that clear to me.

and we ran out of the alphabet. you're a t-list celebrity. actually, we got all the way to z, didn't we? but you have said in recent years i've been moving slowly up to like a g or h now. >> no, no, it's a b-plus. and with 25 years in the book you're leaning towards the a-minus. i'm telling you it's unbelievable. i never thought you'd survive with that hair. you've done it with your attitude, your intelligence and with excitement actually bring to morning television. >> i know hair's a sensitive subject. always got that hat on now. you've given me the tips for how not to end up look snoop dogg on throwing out that pitch. >> but that's the only way you make the news. first of all you got to throw it up on the screen. if you do not throw anything else over the catcher, always try to do that. but if you will throw it wild or crazy, you'll be on youtube forever. you'll really be a star. >> j.b., we have a picture of

you and you were one of the first people to meet my daughter too, and you ever see bench's hands? how many baseballs can you do? eight or nine in one hand. >> used to be seven, but i got to hold her when she was a baby and then i got a picture. what a beautiful young girl she's turned out to be. it's just amazing. i love the whole show. i love to watch. >> that's nice, man. >> the golf swing i can do without. >> you are one of my -- you're the greatest catcher of all-time in my book. and we had jim palmer on the other day. do you remember hitting a home run off him i think it was in the third inning of that first game, do you remember that? probably do. >> i don't remember them all. 389, joe, it's like 25 years of shows, you don't remember them all. >> anyway, this is really out of control. but thanks, john. >> congratulations. >> thank you. that's really cool of you to call in. i always will. >> thanks, bud. >> when you're a kid and you watch johnny bench and pete -- >> good luck throwing out that first pitch, man.

i'll with watching. >> all right. don't make me nervous. you never get over that feeling the way an 8 or 9 or 10-year-old feels about johnny bench. >> and then get to hang out with him and be friends with him. >> yeah, very cool. thank you. thank you. don't stop. don't. stop. please. >> and we will. and when we come back this morning's biggest movers. stay tuned you're watching "squawk box" on cnbc, first in business worldwide. they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations... creating new ways to engage at every imaginable touch-point. it's a new day in retail, and together, we're building the store of the future. digital works for retail. let's talk about how digital works for your business.

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welcome back everybody. let's get a check on the markets this morning. the picture has been a bleaker one throughout the morning. in fact, the dow is now looking at triple digits declines. that's a drop of about 112 points right now. s&p futures down by 16 points. nasdaq off by 38 points. we had been trending softly and slowly higher through most of this week, but you can see there are some concerns as we head towards next week when we'll be hearing both from the federal reserve and be looking at that brexit vote, whether or not britain will vote to remain in the eu. take a look at europe and things are drastically worse there. the dax is now off by over 2.5%. you see declines of better than 2% across the board with the cac

down by over 2.1%, similar story with the ftse. if you've been checking out what's been happening, the real story has been the bond markets. if you take a look right now at the german bund, that's the ten-year there, it is now yielding below 0.03%. 0.028% is where it stands right now. that is a historic low. very similar stories for what we've been seeing in japan with the ten-year yield there. first we'll take a look at the stock markets. the nikkei down by about 0.4%, china closed. but if you check out what's been happening with the japanese ten-year, that's also at a historic low sitting basically at zero yield at this point. you got to go out three decimal places to see anything. negative interest rates down 0.003. check out oil prices, which for the last couple of days had been above $50 this morning giving that back. down by about 80 cents to 49.76. if you check out the u.s. ten-year, all of this is played

out by pressuring our yields as well. ten-year right now yielding 1.656%. there's a story about how yesterday's auction attracted the highest demand ever from overseas buyers. that was both for the 30-year and for the 10-year treasuries, because if you're not getting any yield somewhere else, you want to come here and try to get it. there's the currency board, dollar's up against the euro, down against the yen. and gold prices which joe's been watching so closely are up just barely this morning but 1,273 an ounce. >> every day. goes up every day. >> waiting for your opportunity. >> very nice. because -- you threw that in. because it's a good joke, when i made my wish and you said at least both of us didn't disappear. >> yeah, she was being -- >> she was being nice. >> she was being generous. so was your wish about something on the set? >> no. >> i know you well enough to know what you wished for.

>> i think i know what you wished for. >> the same thing all of us would wish for whenever we get a chance. >> yeah. >> because we all know -- >> it's the only thing that matters. >> that's why i want the ularity because i want to be with these people. >> congratulations, my friend, 25 years, will see you here monday. >> thanks for the warning. >> make sure you join us monday. "squawk on the street" begins right now. have a great weekend. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer at the new york stock exchange. david faber's off today. weak premarket as these bond yields continue to hit some fresh lows, s&p though still on track for a fourth positive week by a pretty comfortable margin. european banks continue to get hit today. 10-year rally adding steam. oil getting hurt on that stronger dollar. jim, a lot we didn't get