case on hillary clinton's private e-mail server, but house republicans set to grill comey, the fbi director today. it's thursday, july 7, 2016. "squawk box" begins right now. the heat is on. that's right. it's going to be so hot in new york. >> it already is. >> i love summer. >> good morning. welcome to "squawk box" on cnbc. u.s. equity futures at this hour are suggesting a positive open. dow would open by 16 points. nasdaq by nearly 7. mimics what we saw overnight in asia. another shocker. hang seng was positive.

nikkei flat. european equities, still positive. nicely positive. >> it's better than yesterday. >> germany, france, ftse, spain, all higher by more than 1%. even more italy who has suffered so much lately. price of crude oil up this hour across the board. 47.97. brent is reapproaching 50. 49.34 with a gain of.55. >> danone is buying whitewave foods to expand the presence in the united states. whitewave is the producer of silk almond milk, earthbound farm horizontal organic milk: it's a 24% premium to

whitewave's closing price over the last 30 days. tesla ramping up the word of wars with fortune. the electric car maker saying it did no wrong waiting to disclose a fatal accident with a car with self driving technology. this after fortune accomplished accomplish fd a story that was critical of tesla setting on the news for eight weeks. criticizing the fact elon musk sold shares in the interim. a blog post late last night denying it knowingly withheld information from shareholders regarding that crash. shares recovering. ordering due pant to pay more than $5 million to a man who claims he got cancer after being

exposed to teflan. awarded $5 million to the man in compensatory damages. the company says it will appeal. >> have you seen that before? >> i have. khemours you say them definitive like i do. nobody else knows. deer in head light panic that you haven't seen that word before which is how i you should do it. >> i have seen it before. did i pronounce it right? >> you did today. >> you did so definitivelily i assume that's the way to do it. >> i remember it from the due pantpant saga. it had come up.

>> this going to take me like five minutes. >> we have to talk about tesla. >> political news. as expected u.s. attorney lorp ret that lynch accepting the fbi recommendation. fbi director james comey is going to testify before the house oversight committee on details of the investigation, but before that happens we're going to speak to congress man jim jordan. he'll join us at 8 a.m. eastern. the reason i was going to audiocassette about loretta lynch. trump is in cincinnati. >> your hood. >> my hood. he is talking last night. he is funny at times. he said 39 minutes they're talking on that plane, loretta lynch and bill. so he goes they're august about grapd children and golf and trump is like he's got two

grandchildren. what do you say about the newborn. it smiles when it has gas. then you talk about the other one. then you talk about that. that takes 30 seconds. then they talk about golf. 37 minutes. what was the other. that was the point he was making. grandchildren and golf takes like two minutes to cover. what is funny it's all happening in sincincinnati. did you see this shot of what happened with me last week. >> when you threw the opening pitch. >> no not that shot. >> this shot. >> you took a picture with elizabeth warren. >> why wouldn't i? >> this is a country we all may have disagreements. >> if she ever gets in power -- she's already been in power and look at what she has done. >> she's a very nice woman, by the way. here's what happened. >> you guys are talking about

golf and grandchildren. >> we're at this -- i'm at a hotel in cincinnati. there's an executive lounge where you get to go and have free breakfast or something and i walk in. the very right hand entrance after being out on this terrace and i almost fall in her lap, swear to god. >> she recognized you. >> she recognized me and i brought my kids in. i think she's a roll model for any daughter. >> look at you. >> come on. come on. >> i'm a bipartisan guy. >> he is amazing. >> everyone wan democrats sit down and he thinks he likes them. you deserve an oscar. >>. speaking of trump's presidential campaign is makin

a financial comeback. the likely republican presidential nominee raised more than $50 million in june. that's more than 16 times what he raised in may and didn't really get serious until the last ten days or so. wasn't as much as hillary clinton. according to the trump campaign, slightly more than half came from digital small dollar operations with the help from the rnc. in comparison to june, republican mitt romney maized $100 million. clinton raised a total of 68.5 million, but based on the report. that was a big number for trump and one that even "the washington post" mentioned. trump is taking aim at disney's frozen. he's been under fire for a tweet of hillary clinton's picture

with the five pointed star with the words most corrupt candidate ever. last night trump tweeting an image on the cover of a frozen coloring book which also features a five pointed star. he wrote where is the outrage for this disney book. is this the star? >> isn't it six? >> yes, that's what i thought. it's two try angles-- triangles >> just trying to be accurate. >> calling and then tweeted haven't they said something about frozen, it's the star of david also dishonest on -- dishonest media, hashtag, frozen. leave it at that. on today's economic agenda.

a double dose of job. payroll report is out at 8:00 p.m. eastern time. 8:30 a.m. look for weakly jobless claims. expected to hold steady. on the earnings front, pepsi is reported to report around 6:30 a.m. eastern time. for me expectations i'm joined by rob marten. and chris bennett. >> does it even matter? based on what we heard from the fed minutes, are they going to raise? >> ever? i think it matters complete for the fed. what is going on with the fed, they got slammed with the may employment number just like the rest of us did. event justing for the strike, that was a weak number. it came with revisions that gave

a downward trajectory. that signals recession so they're very concerned about that right now and what really matters is what is going to happen friday and over the next two reports. if we see a rebound in employment, if we get an average of above 150,000 per month of the summer, then i think they're ready to go and they'll go in september. on the other hand, if the labor markets remain saft or weaken further, then the probability of recession rises. >> what do you think of those two outcomes, what do you think is most likely. >> our base case is it bounces back. we're not seeing deterioration in other data. unemployment and insurance still look fantastic. still near a record low. >> you gragree with that? let's say we get great job growth. you're going to raise rates? >> i think that's a great question. we're looking at things and

saying we would need gang buster data. >> what is that. >> sort of in the eye of the beholder at this point. we would need to see things to drive that movement in one way or the other. it's going to take some gang buster data to see that happen. >> even the job report is not going to erase the brexit fallout. >> which has led to the more negative yields. >> for who knows how long. >> what are the numbers for 2016? >> the last i saw they were pricing in a cut rather than a hike. >> it's kind of priced out the fed for 2017. >> through the tend of when. >> next year? >> just got a little bit of pricing in there. so markets are very concerned and it's -- to me it's all driven by the labor market report. i think that would turn around quickly from both perspectives if we got good numbers. there's a good chance they'll go south too. >> i was going to ask. am i correct there's a slight

chance of cut priced in for this year and what do you think the chances are for that. >> even if we got a really -- a pretty substantial deterioration, it's going to take the fed a little while to change directions. it's a slow moving ship. very much on the tightening bias. that's the message we got from every speaker. it's not a question of whether they'll raise rates again, it's a question of when. >> i don't think they'll do anything before the election. september, would that do that? >> i just wonder whether we're wrong about the whole affect of europe on brexit. >> i agree with you completely. >> we're wrong on everything all the time. >> you have a cheap pound, number one. which is going to help the uk. will the messy divorce, will that be so, i guess, amping the animal spirit or getting out from under a global system. >> just overdoing the hysteria.

>> no doubt. >> i think the whole system is one of the reasons it's growing so slowly in the first place. when it comes apart, it might be better. >> yes and much more simple idea is the elite consensus is so dominant that it's so bad and horrific and how correct has that been? >> i don't think china and russia will ever get going until they combine forces and become the asian union which is really imminent. that's going to happen quickly because the nationalism in russia and china. would that ever happen? will that ever happen and are we okay with russia, you know, protecting its own interest. it's dangerous, but it's not a bad way to run an economy, is it? >> to have your own self interest in mind. that's wh i don't know. i'm getting off. >> the problem with the eu is they enforce all these rules

that are anti-business, but never enforce rules that help business. >> they're bureaucrats. >> how are you. >> sorry. why we invited you guys. >> is adp going to move in the market or no? >> it's hard to say. i think at this point, the market has sort of been in a long mode for the near term. again, i think we would have to see substantial data negatively or positively. >> when do you stop paying attention to the fed? what i mean by that is look, maybe it's my circle think that all central banks have lost credibility. japan, i don't know why they get out of bed in the morning. everything they do has no affect from kbwhat i can tell. . is it working? when the world wakes up and says

is sit working, does it matter what they do at all? >> i mean, and if when we get to that point, if wroer not there, what kind of crisis is that? is it a crisis. >> i think one of the reasons people have lost faith in the ability of monetary policy to work is because the economy has been doing pretty well and central banks keep trying to erase the downturn of the last recession, but we're well past that now. you can't push on a string. doing more expansive when the economy is doing well doesn't work. if the economy were to turn and go back to recession. then quantitative easing may work again. i said pay attention to the data and look at where the economy is going itself. >> the market rally yesterday

because the minutes were considered dubbish. ignore it? >> innin think so. i didn't learn anything from the minutes yesterday. that's not going to matter on 8:30 friday morning. >> that's pretty much it. i think i would rather not pay attention to the quality of factors and stair at the quantitative data the market has given me. >> got you. >> what month is your prediction for the 300 plus jobs. >> that was back in ronald reagan. >> but before the election. >> october. >> october. it would be the september report because it comes in october. >> right. >> you have to look for first week of october. >> i look for 300 plus, 350, 400 maybe on october, whatever the first friday in october was. i can't believe it. like 400. it's usually the way it works. don't you think?

you just watch. happened four years ago. remember it was perfect. it was beautiful. going into the election. remember? >> yes, i remember. we had a famous ceo tweet about it. >> they would never do that. >> coming up, the irs would never target conservative groups. they couldn't get away with that. they couldn't. >> you would never let a candidate get off. >> never get off. >> it's impossible. or a private e-mail. >> is this me? am i reading this? you want me to read it or not. >> coming up the buzz in washington from the director's date on capitol hill this morning two potential running mates from donald trump. the latest on the campaign trail is next.

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house republicans making sure the clinton e-mail remains front and center. fbi director james comey will appear this morning. let's bring in steve mcman.

tony fratto managing partner. steve, let me start with you. i understand -- for me i understood what director comey did, i think. i've likened it as other people have to justice robert not wants to be the news of -- you know, not wanting to stick a dagger in obamacare. wanting the voters to do it if it ever happens and comey is going to let the voters decide as well. i'm not sure though, steve, that the fbi that is in the business of deciding whether something is against the law or not really and then the prosecutor can decide whether you can make a case. for the first 14 minutes, he seemed to present evidence that the law was broken. that was the take although of people had. was that you take? >> i think he presented a lot of evidence that the law is maybe loose with respect to what the expectations are and if you

know, it will tolerate these kinds of circumstances, and i think he probably would expect congress to tighten it up in some respects. hillary clinton has made the point before that what she did was not unique or the first time. obviously there are rules and she should have done it differently. she said that herself. i don't think there was a lot of news there. he did lay ut out like a prosecutor, but remember he was a prosecutor for a very long time. he was a former u.s. attorney. pretty respectable guy. >> if you read the statute itself and you align the statute with what he presented in the 14 minutes that's fwens the law. >> hold on the statute requires, i'm a lawyer so the statute requires intent. i think what he found was there was carelessness. >> he got a private server to make sure -- she did, the intent was she wanted it kept secret. >> she did want it kept secret, but there has to be intent to

violate the law with respect to classified materials and what he found was there was no intent. there was carelessness, maybe x extreme carelessness. >> if i run a red light because i'm carless, can i tell the cop i didn't mean to do it. >> yif there's a picture of you doing it. there were five mitigating factors all of which he went through. all of which apply to the case and many of them did. they didn't apply here. they couldn't find a single instance of prosecution with this set of facts. going to get their clocks cleaned because james comey is much better prepared for this than they are. >> having james comey as confident and as good as he is was not a favor to your candidate. i can tell you that much. just from watching the 15 minutes. >> but having him reach the result, having him reach the

result he did was the guy has been beyond reproach his entire career. >> kept calling it an exoneration. it was like baghdad bomb. we got him on the run. >> here's what it was. here's what it was, finality which the clinton campaign needed. >> exoneration. >> go ahead. i'm sorry. i hesitate to go to tony at all. i'll let tony talk about hillary clinton as long as you don't get on the republican. i don't know who is worse for trump prospects. >> we might be on the same wave. i'm the guy that gives tens of thousands of my own money to support republicans, joe. >> i was looking up with the establishment republicans are. he's got more votes than any other republican. >> there are more people than

there were. >> i found the do do bird. and i said this. is the do do bird extinction because it didn't have any competitors so it nebraska hver fly on the island of matt gas car. >> do you noe how the establishment got to the establishment? by winning elections. >> that's a very good point. >> wow, i must have missed mccain and romney. i must have missed what happened with mccain and romney and the first bush. left turn in all borrow curky. >> i worked for the guy between them that worked p r the elections. >> this is great. >> ushered in barack obama. when you say things like the vice presidential field is slimming down for trump only because most normal republicans

are running as quickly as they can away from him and the only two people that might accept it are newt gingrich and christie. that doesn't sound like a guy that is going to oppose steve on our show. >> i can oppose. basically on everything you said about hillary clinton's handling of the situation and classified. someone who has had to handle classified material and been trained on it multiple times and understands it. her position on this was completely untenable and really misled people and media consistently through and i thought the case that comey laid out was pretty devastating. whether it's something that could be prosecuted or should be prosecuted, that's a different point, but i can tell you that this idea that you know, she didn't know what she was doing was just not tenable at all. there's a culture of paranoia

around the clintons that everyone is out to get them. the truth is everyone is out to get everyone and that doesn't mean you get to make up your own rules outside of the system that everyone else has to comply with. i thought it was devastating and damages to her. i still think odds are they secretary clinton ends up winning this race, but she's crippled and crippled as a candidate. >> by the way, i haven't been a huge apoll gist for hillary clinton on this thing, but there's a question about what she knew and what was important about it. so for instance she definitely knew she had her own e-mail system, but so did previous secretaries of state. >> not server. >> it sound like she should have known that some of the material passing through that system was classi classified, but there's no evidence of intent. the law requires very specific things and we live under a rule of law in this country. >> even the former -- even the

assistant director of the fbi: the former assistant of the fbi who was with you us yesterday on this program said that extremely careless and negligent are identical twins. >> as a legal standard by the way they're absolutely not. james comey is the direct orb of the fbi and not t. he prosecuted martha stuart. >> he keeps saying she never intended to break the law. she intended to install a server. she intended to send the e-mails. you could say i didn't mean it. i didn't intend to. >> how many lawyers are part of this conversation today. >> you want to bring up the fact you're a lawyer, go ahead. >> i'm pretty sure i'm the only person train instead handling

classified information. >> are you train instead electricitying cases tony. >> no i'm saying prosecuting is a different standard. what i'm telling you talk about intent, hold on just a second. she is a lawyer and she has been trained on how to handle classified information. her view that as a secretary of state that she can make and produce communications that aren't classified is bonkers. she is. if she relays a communication of her conversationing with a head of state to another country tharks is implied classified so yeah, i think she's taking advantage of people who do not understand what classified means. >> but here is the question of james koe comey was asked to answer. was there evidence that laws were broken that should be prosecuted and he reached the answer the conclusion he reached was no reasonable prosecutor would bring this case.

he was a hero to the republicans until yesterday or two days ago and now he's going to. >> i'm going to admire james comey and not being critical of him. i think he made a decision that he was noit going to be the one to completely up end a presidential race and make that decision on his own. >> i've got to go. >> i'm going to present the case to the people. >> hey, tony. >> that's not the way he explained it. >> you can suggest he's lying, but i don't believe he is. >> i gave you tough love and you rose to the occasion. you did, tony, you rose to the occasion. you were very useful. >> thanks joe. >> thank you. we appreciate it. >> tony and i still agree about trump, by the way. >> indeed. >> have you back on saturday. >> thank you. >> pepsi is just out with its quarterly earnings.

beverage giant called an incredibly volatile global environment. pepsi says it's pleased with the results considering the negative impact of foreign exchange as well as write offs involve lg the value of the venezuelan operation. >> so dthere was a rumor back i 2005 that pepsi wanted to buy danone and the french went bananas. yogurt was a crowned jewel. how dare an american economy. >> danone, it's a very nationalistic. >> yogurt is very important. >> i felt very similar with smith field foods. >> that's right. >> and bacon. >> that danone guy is busy lately. >> yes. you say the chinese -- >> danone. >> think if they cut us off, cut bacon off. that's why i thought it was a

security risk they have them controlling the bacon supply. we would fold very quickly if we -- right? >> for sure. >> more on pepsi coming up. we're going to tell you why good whether means bad news for game of throne fans. this is a tough story. s&p 500 winners and losers.

it's time now for the executive

edge. american airlines wants to hep you get to your gate faster. it's teaming up with tsa this fall to speed up screening. isolate risky bags without disrupting the line. bins for cameras that link photos of a bag to its x-ray. the most important feature may be the introduction of ct scans for bags which would allow you to keep laptops and liquids in your bag. tests will be at dallas, fort worth, la and miami. >> even faster. they want you to get there in time if you are your flight. there knost ev there's no even faster. it'sless slowly. >> one shoe bomber and we have to take off our shoes. i don't think anyone has tried

since. liquids, one guy. every one of us. we can't bring juice on the plane. >> it's horrendous. >> it's like sigma. you have to prevent one thing out of 8 million. then you also have to deal with the tsa and everything else. anyway, bad news for game of throne fans. i'm not caught up. >> neither am i. >> not caught up, but winter has arrived on the show. that means production on season seven is going to have to wait for the summer sunshine to be over so they can shoot in grim, gray weather. i always knew weather was coming, but it hasn't started coming yet in season five. so now i know weren't does come. >> this is the big battle scene, right. >> show's create terror also confirmed the episode count in the two remaining season will be

smaller than previous returns. no official return date has been announced. >> why are they doing fewer episodes. >> it's so expensive? >> the one guy was the mayor. did you connect the two? little finger and are the same guy. you don't even know the same guy. >> wow. >> you have to watch that. >> have you seen. >> no, i've seen the wire. i didn't watch a on the of it. baltimore, one of the best cop show ever. >> i started watching, i was so fixuated on it that when things would happen on a corner on the score, you can look it up on google maps. i don't know whether i wanted to be a cop. >> that's the other guy. >> did you want too be a cop or

the corner guy. >> i wanted to be a corner guy. >> i never even thought of it that way. >> i'm going to look up who did that. >> good and bad people on both sides. >> that makes any great drama. >> is the conflicting. >> yes, that's the way we watch television this day. >> a single bunch of grapes sold for a record price in japan. the ruby roman griapes were the first of the season. each grape was slightly smaller than a ping-pong ball. they must be really good. >> yes. >> coming up addressing terrorist at soft targets like sporting events issuing concerts. new screening technology and it has backing from bill gates. the company's ceo joining us

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welcome back. the technology is better and faster than what currently exits and is attracting some big name investors like microsoft inve invest investor, bill gates. the century system. how does that work. >> it uses millimeter waef which is just like the technology the body scanner uses, but it's completely solid state and it's fast. we can screen people as they're walking on the fly. >> so you would have in in the entrance at a airport or a mall or concert or any kind of place where there's a mass gathering. >> exactly. preventing mass causality events. >> so any person would just simply have to walk through here whether you're pushing a luggage cart or walking in with your family or anything like that.

>> exactly. come through carrying the things we all normally carry. the cell phone, the wallet, the keez. go through, is testimony will automatically look for explos e explosives or firearms. it will give an indication to a guard on an ipad and let them know if that person is clean or suspect. >> how many of these exist in public places that we don't even know about or recognize. >> so it involves a new company. we started the company about two and a half years ago. we've been in the industry for over 20 years. this is preproduction unit. first systems are going into the field early fall. >> bill gates is an investor. >> he is. >> how did that happen. >> we have an relationship with intellectual investors. he is related to intellectual ventu ventures. was a lead investor. >> you can walk through this normal speed. >> normal speed. you can do your thing.

>> we'll continue to have our conversation while this gentleman walks through. >> just walks through normally. the system examined him has determined he's completely clean. isn't carrying in suspect objects. suicide vest, gun, or anything else. >> is that what this world is come to you're going to have to go to a shopping mall and stand outside in a line and walk through one of these devices. >> unfortunately, what we're seeing every day in the headlines now is exactly the situation that you know you're describing. whether it's houses of worship, malls, events, we're seeing devices like this. >> he just walked through with a device around his waste. >> it doesn't make a siren doesn't go off alerting everybody. >> it's entirely up to the guards how they want to operate the system. >> how close are the guards to where this is located. >> this can be remote. it can be wireless.

it can be used anywhere. a command station, control center. the system may not want to alert somebody they've been detected so they may want to track them and follow them through. we're using cameras to catch the image as they come through and compare that to a data base of potential known wolves. >> what kind of work are you doing with the department of homeland security. >> they are aware. they have funded a lot of work. we work with a lot of dh agencies now. >> is it more sensitive than a regular mag tom terre that you would walk through. the problem is the exemployeplo aren't metal. we want to do very high speeds. 800 people an hour. four or five times that of a typical checkpoint. want to move a lot of people quickly. we're looking for those threats

that can take out a large number of people. >> this is a prototype. how quickly can you make these in sort of mass numbers to get them thousands of stadiums in this countries and mauls et cetera. >> we'll in in production early fall. shipping units in october. >> who do you think your customers are going to be? are you already talking with people? >> we are. government agencies. stadium owners, event planners, it's a pretty broad swoft of folks concerned about these threats these days. >> thank you for coming in. coming up, pepsico. we're going to dig through that report with an analyst coming up.

welcome back to "squawk box." u.s. equity futures up this hour suggesting we're going to get another positive open. dow would open higher by six. nasdaq higher by 2.5. mixed session overnight in asia. japan was lower by 0.6%. shanghai was flat. european equities. they're still mostly above 1%. germany, france, ftse, and spain higher by 1%.

pepsico releasing second quarter results beating estimates on the top and bottom lines. calling in now rbc capital markets managing director. before the numbers were out, nick, i saw some of your comments that beverage volumes would continue to be weak. to the consternation of everyone who wanted to split off the snack foods, the snack foods are the bright -- in your view that was going to be the bright part of the report. did that hold true? >> yeah, that held broadly true. the snacks business certainly outperformed the beverage business. keep in mind that pepsi's quarter ended june 11th and we had really bad weather many to the u.s. in april and may which weighed on beverage volumes industrywide. but june recovered nicely. so pepsi wasn't really able to capture that full improvement. >> can you name -- scott, can you name the big four in terms of things that end in toes? >> fritos.

doritos. tostitos. cheetos. >> nice. >> that comes from a lover of all of the big four. >> me too. and people still don't realize salty snacks, beverages. >> goes together. >> haven't they come to realize it? >> they have, nik, because it if trades up today, it could be at an all-time high. >> exactly. these guys have done i think a pretty good job in the current environment. certainly a lot of the special situations, angles that investors have been hoping for have been deflated with trying to exit in the stake. pepsi's fundamentally delivering. we think the stock is near fair value. but they are performing in a tough environment. >> so back to you, scott, just for a second. so can we say for sure that trying whatever they wanted to

do it's better what they thought? >> i think that's why they finally made peace. >> can we definitively say now activists aren't always right? >> i think there are several cases where they may not be right. >> but in this case it seems -- had the right idea all the while? >> i think what they wanted was more operating efficiency. pepsi announced their version of zero based budgeting called smart spending. been aggressively attacking the structure. margins were better this quarter. i think that's playing out. the reality is snacks and beverages makes sense together. there's no question about it. the question is how can you align the two parts of the organization to work closer together? and that's the challenge. i think pepsi doesn't want to force the issue. we have different views on that. i think they should realign to make the businesses work better together. the reality is snacks and

beverages belong in the same house in our view. >> you use the term precipitation anomalies. what is that? climate change? what are you trying to say? >> rain. we measure rain -- >> precipitation anomalies. i'm going to use that. >> it just makes us sound smart, joe. >> right. weekend might be nice if there aren't any precipitation anomalies. you wanted to ask him. >> i wanted to say the deconsolidation of venezuela they referred to. the latest company to throw in the towel on that country. is this the last quarter we'll see any effect from having to deal with the venezuelan operations? >> no. because a lot of the companies did it on a rolling basis. one after the other going back to late last year. so we still believe think have another quarter or so left of that impact from a year ago. but most investors are looking through that now that it's completely deconsolidated industrywide. >> so you're such a good analyst, there wasn't a single surprise from what you thought?

>> look. the beverage volumes we thought would be weak. but they're weaker than we thought. frito-lay accelerated but it was a touch light. so there were areas they came in a little bit below or above. the international business did a little bit better than we expected. but the reality is, you know, pepsi has a portfolio for a reason and they were able to play that portfolio this quarter and deliver in line with what the street was expecting. currency is a little less bad. core earnings growth a little better. it's below consensus. but only through the second quarter and they're being conservati conservative. >> nick mody, thank you. we appreciate it. programming note. pepsico cfo will be on "squawk on the street" at 9:00 a.m. eastern time. coming up donald trump meeting with republican lawmakers on capitol hill today. we'll tell you who's attending and what to expect from that meeting. this shop,

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a big day in washington as republican presidential candidate donald trump meets with gop leadership to rally the troops ahead of the convention. plus fbi director james comey goes before the oversight committee to answer questions about the hillary clinton e-mail investigation. a live report straight ahead. jobs front and center for the markets this morning. this hour the challenger jobs report. and then later, adp. the numbers and instant analysis coming up. plus another big star in the nba is on the move. the big money deal sending d. wade from miami to the windy city. as the second hour of "squawk box" begins right now. ♪ live from the beating heart

of business, new york city, this is "squawk box." >> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen and michelle caruso-cabrera and scott wapner both here with me today. becky and andrew are both off. the futures at this hour have moderated their gains and are now have reversed early gains and are now in the red. a point and a half on the s&p, down about five on the dow, and down three-quarters a point on the nasdaq. moderating some of the gains a little bit in european markets which had a tough session yesterday. they were all up more than 1% earlier. and now france still is, but germany, ftse are now just under 1%. >> they got a big soccer game today, did you know that? france and germany? you aware of that? >> i know that there's something going on over there with soccer.

i saw something yesterday. >> uefa cup. >> there are a couple upsets that have occurred. >> it's a big deal. 3:00 p.m. today. >> you know who i was watching? andy murray. did you see that match? >> i didn't. did you watch the federer comeback? it was insane. >> joe came back and then lost. it was a great match. andy murray, i think he might beat federer. i'm not sure. i didn't look at the brackets. can they meet in the final? >> final, i think. i hope. >> that'd be a good final. heck of a final with djokovic gone. >> djokovic already gone. nadal's not there either. you want murray and fed in the final, right? it's federer's last stand. maybe. >> here's what's making headlines at this hour. >> this is making headlines.

whap are you talking about? >> pepsi beat estimates on both the top and bottom lines. what the company called global environment. >> all-time high. >> pepsi cfo hugh johnson will join "squawk on the street" 9:00 a.m. eastern time. >> and scott, kudos. you got the big four. but then do you know how many sub -- you know there's chili cheese free toes, there's nacho cheese doritos. there are subgroups of all the major -- >> if you're just joining us, the big four are cheetos, tostitos, doritos -- >> then we're not even talked about rold gold pretzels or cracker jacks. we like things like this. >> is there more than one kind of cracker jack? i don't think so. >> i can tell you the prize is crappy. it's usually a piece of paper with words on it. >> wow. >> they've cut back on the prizes. >> we're a little over an hour

away from the adp june report on private sector. following 173,000 new jobs in may. 8:30 a.m. eastern time, more jobs data as well with the labor department releasing the weekly report. ahead of tomorrow's big june government jobs report. all right. tesla ramping up its war of words with "fortune" calling a report about the cars, quote, fundamentally incorrect. the car maker said it did no wrong by waiting to disclose the fatal accident with the software to regulators. this after a "fortune" article they sat on the news for eight weeks highlighting the fact that elon musk sold $2 billion of shares in the interim. tesla denied that it knowingly withheld information from shareholders regarding the crash. we'll have more on this with

eric dezenhall. we haven't got to talk about this. >> how long did takata -- someone tweeted so i don't know the veracity of it. how long did tesla wait? >> what? what did we say? eight weeks? but there are two issues. >> they're saying takata waited nine years. >> there were two issues. when they told national highway transportation highway safety and they did that in the time frame they were required to do so. the bigger issue seems to be whether it was deemed material or not to disclose it to shareholders, to investors. >> right. >> musk has said that it was not material to tesla's value. and he said the proof of that was in the way that shares reacted when the news came out. tesla shares went up. now -- >> i thought they went down. >> they went down when the news

of the crash surfaced. we can check. we can get phil on the phone. but i think it was down. >> i think there was one moment where the shares i think actually went up. but there's another issue which he's referring to which the most recent 10-q that tesla had filed had language in it about product liability and claims related to whether there are crashes or deaths to new technology such as autopilot. >> right. >> so that language was in the most recent 10-q. >> and that covers it? >> which tesla says in this statement last night was sort of boilerplate language. but it just further raises the issue of if that kind of language is in a 10-q filed with regulators and that sort of issue has already been laid out, why, then, was it not material now if there was an actual incident where autopilot may

have been involved. >> think about it this way. if there's boilerplate language in there that one of the risks could be liabilities related to autopilot when you have an autopilot incident, doesn't that even raise the bar higher that you should tell people? because it's no longer a warning about what could happen, something did happen. >> that's the very question at the heart of the issue. we'll have more on that later. but that is the heart of the matter. >> yeah. another developing story at this hour, surprise move by microsoft's number two. going to hedge fund. kate kelly has that story. >> hey, michelle. good morning. so b. kevin turner joining the financial firm zit dell. he'll also be a vice chairman of the firm overall. turner spent about ten years with microsoft. he started a cashier at walmart eventually running sam's club as a ceo for them.

this has been a longtime business for them but they're really pushing hard to expand it in recent years. they're now the 35% player in the retail investor order execution business. that's their slice of that market share. within the last year or so, they added a number of products on e the fixed income side. everything from treasuries to custom swappings. they see that as an area of major expansion for them. and it's interesting to hire this guy kevin turner because he's obviously a technology maven. he's run a team of tens of thousands of people. he knows how to sell products globally. these are clearly priorities for citadel right now. >> he started as a cashier? >> yes. i believe he was an undergraduate in college working the cashier job at walmart. got hired. became an executive at 29. >> he couldn't have got it if it was $15 an hour because there

wouldn't have been cashier jobs. >> i'm saying almost any other country in the world, you couldn't start as a cashier at walmart and go to be the number two at microsoft. >> preaching to the choir on this one. thanks, kate. stocks finishing yesterday higher after the fed released minutes from its june meeting, watching adp data today. and of course tomorrow's big job number. more on the markets, we're joined now by mike ryan of wealth management in the americas for ubs. and peter boockvar. he's also a cnbc contributor. mike, how you -- i don't think we've talked to you since brexit. really the minutes yesterday were dovish so the market went up. seriously? that still works? what's happening? >> look, i think the market's kind of sorting through what the brexit's going to eventually mean for global growth. i think the u.s. is probably the area that's least affected if you look at what's happened in terms of the economic fallout. what we're going to focus on is

what this employment report looks like. the last we had, the best way to describe it was pretty crappy. the question is whether it's simply part of the layoffs we saw on verizon. or whether it's the beginning of a roll in the labor markets. that's critical. the one thing that's been a solid point of this economic expansion has been job growth in the u.s. >> so the jobs report might not matter from the perspective of what causes the fed to do. it might just matter from the snapshot it gives us of the u.s. economy. >> i think it matters in both, joe. >> matters for the fed. >> i wish you would have said no. >> here's the thing. what we've been focusing on is a couple things. they want to see continued gains in labor markets. and they want to see this move towards the price target. if one of those three falls out, that has implication -- if we have another weak report this

could take the december rate hike off the table. >> peter, if we -- let's say just for argument's sake some day we have a big break in the stock market in the next couple weeks, is that going to be because of brexit or because of it finally comes home to roost on this maybe misguided or what the fed has orchestrated for seven or eight years? which is it? >> it's a combination. the brexit is exposing fragility in the economy. we've had five quarters of declining in the u.s. and now people realize the fed has no tools to deal with anything that may come our way. and at the same time that the market's obviously near record highs and at expensive valuation. from the market perspective, there's no margin of safety to deal with these externalities that could happen. i think a big part of people's gauge of the global world will be when we see earnings. >> for all the criticism that

the fed has gotten, can't you make the argument and you guys are going to kill me for saying this, but can't you make the argument that the fed has been the only central bank where the policy has actually worked? >> worked in terms of what? >> no, no. everybody else has negative rates. we don't. everybody else is in unemployment situation is worse than ours. hold on. okay. but everybody else's economy is worse off than ours. everybody else's banks are worse off than ours. so by what metric has the fed failed so badly? that's what i want to know. >> i'll go back to what you said. i think the fed has been more effective for one reason. they acted quicker. they were me most aggressive central bank dealing with the overhang of the financial crisis. and largely focus on the european central bank, they aktsed with a deeper lag. they had to take actions later in the process and had to take

more extreme action because they weren't as adaptive as the fed was early in the process. >> peter do you -- >> by what metric has the fed failed so miserably? >> in the whole post-war period, the economy has grown faster than europe. you would expect us to rebound quicker. we don't have the structural labor issues that europe has. >> not yet at least. >> we're averaging this has been the worst recovery in the history. >> and that's 100% the fed's fault? >> 23409 the fed's fault. but i think with boockvar you can say they're counterproductive. >> what does lower policy interest rate do? you take on debt. we have extraordinary levels of debt. we pulled all this economic activity and have high asset prices. so what has it gotten us? there's no more future activity -- auto sales are now

declining. very high asset prices. the fed has no bullets to deal with anything that koms our way. and we've crushed savers. we're killing the profit margins of banks and insurance companies and pension funds. where are pension funds going to get their -- >> so had the fed raised rates at what could have potentially been the wrong time while everybody else was going the other direction so -- and that would be a better place to be? >> we encouraged the activity overseas. ben bernanke encouraged england and bank of japan to put down the pedal to the metal on that. >> larry summers and greenspan were on the cover in 2005. do we finally know that -- they thought they were flying for the first 39 floors. >> i'm just asking the question. >> we may find out that the fed has got us in -- >> we may in just the last ten years. we have to look at the last 15 years. this is the third bubble in 15

years in my opinion created by easy money. >> thanks. john harwood's coming up after the break. it's a drone you control with your brain, which controls your thumbs, which control this joystick. no, i'm actually over at the ge booth. we're creating the operating system for industry. it's called predix. it's gonna change the way the world works. ok, i'm telling my brain to tell the drone to get you a copy of my resume. umm, maybe keep your hands on the controller. look out!! ohhhhhhhhhh... you know what, i'm just gonna email it to you. yeah that's probably safer. ok, cool.

donald trump about to meet with house and senate gop members today. james comey is headed to capitol hill to explain why he decided not to recommend criminal charges against hillary clinton. john harwood joins us now with more. good morning, john. >> morning, joe. the juxtaposition of those two

events explains the opportunity that donald trump has but also shows what makes republicans in light of what he did last night when he was campaigning, makes them want to pull their hair out. these members he's meeting with today. he could have focused in his remarks in cincinnati on james comey what he said about hillary clinton's e-mail handling, the carelessness of that. even though he just declined to file charges. instead, donald trump revisited two controversies that have been following him over the last couple of days. the first is his seeming praise for saddam hussein. >> i said bad guy, really bad guy, but he was good at one thing. he killed terrorists. next day, donald trump loves saddam hussein. i don't love saddam hussein. i hate saddam hussein, but he was damn good at killing terrorists. >> the second was the tweet that he had sent out that featured an

image that resembled the star of david that had first appeared on a white supremacist website. donald trump as he campaigned with newt gingrich one of his potential running mates said he told his campaign they shouldn't have taken the image down as they did under criticism from everybody from paul ryan to the anti-defamation league. he said it was simply the media that created this controversy. >> cnn started this going, it's the star of david. and because it's the star of david, donald trump has racist tendencies. these people are sick, folks. i'm telling you. they're sick. >> he even followed that up by sending out a tweet showing a star with the same shape as the star of david on a disney commercial consumer product from the hit musical "frozen" and said why isn't the media talking about this? this is why republicans are concerned about donald trump and his lack of discipline.

it's why some republican members of the house and senate will not show up for these meetings today. but donald trump is going to try to rally the troops anyways. >> he gives his side of the story in his view. i don't know if you saw the journal today. the journal is talking about the chilcot report chastising tony blair and others. they actually talk about at the bottom, the report kind of said that iraq was better off at least in terms of tamping down terrorism and insurgency and the journal makes a point that they're actually agreeing to some extent with what the point that trump was trying to make about saddam hussein. dp you read jared kushner's response? >> i did. i did. but it seemed as if trump was going against the spirit of what his responsibson-in-law had sai.

>> i don't know he's ever spoken about that before. his point was that if you're going to knee jerk the -- if you're going to call it a careless tweet full-on anti-semitism, then what do you call david duke? what word do you come up with that describes a nazi white supremacist individual if you used the words to describe -- i think that was his point. and he's in a position. there's no question he's in a position to talk about this. given what happened to his grandparents and his parents. >> but if donald trump were a more disciplined candidate, he would have let jared kushner's letter be the last word from his side for awhile and focus on what comey said about -- >> he seems unable to do that. and, you know, i read -- you know, i follow laura ingraham on

twitter too. she gave three things a candidate should do. one, don't revisit past victories you already had. number two, focus on what you want to do for the american public and their future. and there were three things. she was making the point that a lot of the speech last night was revisiting all these sort of personal vendetta type things instead of staying on point, staying on message. >> especially when he had hillary clinton who he could have gone after on the server. >> that happened one other time after the inspector general report. right in mid-week. and the mainstream media was in vortex mode on her and then he did the judge curiel thing or something. >> he seemed to be on hillary clinton's point where she said if somebody gets under his skin, he can't stand it. and that's part of her indictment of him as commander in chief. comey had a strong indictment of her competence and appropriateness of handling

material you have to handle if you're a commander in chief. and he went about to by going back to this stuff to make her point. >> i think trump gets under the president's skin too. >> yeah, he does. >> i mean, not everybody's perfect in terms of letting, you know, sort of personal issues -- trump's not going to change, i don't think. >> he's always going to be undisciplined. that's half of what i think people like about him. yeah. >> all right, harwood. we'll see you. thank you. >> you bet. coming up, why one money manager thinks jcpenney is a buy right now. that company and other names he's recommending in our what's working segment. plus the results of the latest challenger jobs survey will be out. "squawk box" will be right back. the heirloom tomato.

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a whole day?

>> what took them so long to play this music. >> a whole day yesterday -- >> an hour and a half? >> i can't remember what it was, but there was a reason for it. with all this court stuff going on anyway, it's natural, right? >> you should have not been just the decider but the presider. >> there you go. presider in chief. >> that's his name, right? >> yeah. i always say rusty the bailiff after you say that. >> i think judge judy made a lot more money than you, than jublg wapner. >> can you imagine if the original judge wapner was on the air now? >> he'd be making a killing. but judge judy, did you see what she was making a year? >> like $70 million. >> a year. >> isn't america great? >> it is. at least it wasn't a ceo. >> among the stories front and center today, we're about 45 minutes away from the latest adp

report. it's out at 8:15 eastern time and expected to show 151,000 new private sector jobs for june. one of the few countries that still has a aaa credit rating may be on the verge of losing it. saying that government may be in a weaker position to tackle budget deficits. let's look again at shares of pepsico. they are on the rise after the snack and beverage -- pepsi also raised its full year from ft. joe? and it appears that dwyane wade is going to sign with the chicago bulls. yahoo sports and comcast sportsnet chicago both report that wade has informed the bulls he plans to sign with them. however, they need to clear some room with their salary cap to sign him. and numerous reports say shopping players including jose calderon and mike dunleavy.

wade has won three titles with the heat. wade has told friends if he ever left miami, it would be to play for his hometown team the bulls. >> that's an interesting move. >> along with durant, right? >> yeah. i kind of wished durant would have gone to his hometown team which is my hometown team. the wizards. >> you always talk about -- are you from there? >> yeah. >> okay. >> well, from maryland. >> from maryland, okay. >> so many sports stories this morning, gentlemen. i'm going to consider it a microaggression if you keep going. we have the first of several labor reports. this one on layoffs. according to the latest report by challenger, employers cut over 38,000 jobs in june. that's a 28% increase from may. here to break down the results is john challenger himself. good to see you, john. >> nice to be here. >> should we be concerned about this rise in the number

percentagewise? >> i don't think so. may was a five-month low, very low total. and second quarter has been down 132 k for the quarter. down from what we saw in the first quarter. just like the job creation numbers have been low in this second quarter, also the layoffs are low. so that is kind of a signal of we're nearing full employment. and companies are just holding onto their people. but there's just not that many people to hire either. >> is there a particular sector i'm thinking is the oil sector still laying off? the layoffs did occur, where are they? >> no question. energy, low energy prices which have a positive impact in many places on the economy are affecting that sector. manufacturing as well. and we are seeing layoffs there. oil prices are driving certainly the predominant factor of driving layoffs in energy and mining and industrial goods. >> i would think it's not as many as we've seen in the past.

is there an improvement there? because oil is way off the bottom. it's not where it was, but it's not in the 20s anymore. >> in fact, layoffs, there are down 50k layoffs in the first quarter due to low oil prices. and that's down to 26k in the second quarter. so there's some weakening of effects. there is still some slack in the labor market despite the nearing of full employment i was mentioning that under employment numbers still gives room for companies to upgrade people that they're underutilizing. >> retail also bearing the brunt of the numbers. >> yes, exactly. retail q1, 31k. q2, they relented. >> john, good to see you this morning. thanks for the numbers. john challenger.

>> thanks for having me. shares of chemours recovering. a u.s. judge ordering dupont to pay $5 million to a man who claims he developed testicular cancer from that plant. it assumed control of the plant in question. the company acted in mall las by dumping the chemical into the ohio rir. they awarded to the man and will begin deliberations on the amount of punitive damages. global growth concerns. the brexit fallout creating uncertainty in the markets but some small caps are still showing signs of promise. here to talk about what's working in the market is craig hodges. ceo of hodges capital management. thanks for being here. >> thanks. there's a lot of concern over brexit and one of the advantages of small caps is very little, if

any, international exposure. no currency risk in most cases. you saw this morning where donnen bought light wave. larger company in a very slow growth environment are looking for acquisitions. >> so you think this is an event driven space as well. >> could be. we've had such a long period of slow growth. these companies are buying back stock. that's their form of investing. they're going to have to buy some of the smart companies. and then of course the small caps are the most inefficient of the market. >> i was going to say, you must then have a fairly positive view on the overall stock market, right? small caps would lead you on the way up in many instances but also on the way down. so you're positive on the u.s. market. >> i am positive. i don't see the, i guess, issues out there that see a big market

selloff. we can always have a 5% or 10% selloff. but with such low investor participation and such, you know, dismal, you know, sentiment out there and those sort of things, i don't see the case for a bad -- and stocks are cheap. i mean, a lot of the stocks in our accounts at the hodges funds, we're getting stuff with 15%, 20% growth. and that's -- you know, that's -- those are good risk/reward ratios. >> jcpenney. >> they're in a tough industry. but they're doing the right things. and they're in the middle of this turnaround. we don't even need a big demand recovery for penneys to do well. going to go 80 next year with potentially $2 in earnings.

stock at 8.50 bucks, that would be a big move here. >> you like all retail? >> no. not all retail. >> they've got a special -- they've got catalyst the others don't. >> they do. and they're doing the right things. they're changing their stores up. you see the things with appliances and sephora and a lot of things. they're the one out there showing positive same-store sales growth. they're going to have about a billion dollars in ebida. they're selling -- they've got about $400 million property. their headquarters in dallas they're going to do a sale and lease back on it. so they're doing all the right things. and you know, it's -- it's -- these kind of things -- it was such a train wreck that it's going to take a long time. to me it's very obvious they're in the midst of the turnaround. >> capstone, ks? >> great management team. stock got hit really hard at the beginning of the year. it's a great candidate. the big three in that business,

they control about 70% of the market. so they're likely an acquisition candidate. some of the pricing has come down. it's been a little bit of a surprise. but, you know, long-term that's a good situation. >> what makes them so unique? >> well, they actually have virgin paper mills which are, you know, because they're very hard to get with all the regulations and stuff. those are very much in demand. and you're seeing like i mention -- >> excuse my ignorance. i don't know what a virgin paper mill is. >> they're taking the product and cutting the trees and doing all the things -- no one likes these things because of what it does to the environment and such. and so permitting them and doing the things that -- >> so they're grandfathered in on some of this is what you're suggesting. >> they are. and you can't build them, so you need to acquire the ones that

have it. >> paper mills and paper before. >> so virgin is the original trees. >> hence the -- >> i'm just not as smart as you, joe. >> it's a specialty farm. they get lumped in with valeant so that's hurt the stock. >> that's not predictable. >> very ineffective. they're lumped in with valeant doing arthritis. doing that type of stuff. very inexpensive. i think they'll be able to do well long-term. >> thanks for being here. >> my pleasure. >> it was fun. >> always. >> craig hodges. tesla ramping up its war of words with "fortune" calling a report calling its cars fundamentally incorrect. eric dezenhall joins us after

the break. check the futures now. earlier suggested a positive open. futures right now are negative. "squawk" will be right back. every year, the amount of data your enterprise uses goes up. smart devices are up. cloud is up. analyticis up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different network that delive bandwidtyou need without the high cost. because you can't build the business of tomorrow on the network of yesterday.

welcome back. the recent failed tesla autopilot crash raises questions about the procedures particularly since elon musk and the company sold about $2 billion of stock before the crash was made public. >> some of it was his, wasn't it? it wasn't purely -- he wasn't selling shareholders. >> crisis management and pr veteran eric dezenhall joins us. he is the ceo of dezenhall resources and the author of "glass jaw." thanks for being here. >> thanks for having me. >> let me get your overall thought. this has not only become a war of words between musk and "fortune" magazine. but it is really i think all centering around a really simple question. and that's whether this incident was material or not. and whether it should have been disclosed to investors. what's your take?

>> you know, you have legal and procedural issues here, but you also have the broader issue of enterprise risk. the risk of the business. to be perfectly politically incorrect about it, one of the things i find is visionaries like elon musk or steve jobs are held to different standards. people expect them to think big thoughts, to be visionaries. they don't really expect them to perform the normal disclosure obligations and the normal courtesies. and the good news is that they tend to get away with it. the bad news is you have to keep delivering cool stuff. because if you don't keep delivering cool stuff, everything is off the table. the other thing is, is that while general audiences tend to be forgiving, regulators and legislators don't want to be charismaed by these guys. they don't find this type of thing cute. so the good news is with broader audiences, i think they're held to a different standard and

don't have to worry as much. but the bad news is if you don't keep cranking out your cool stuff, people aren't going to forgive you. >> what do you do as a crisis manager? and that's your expertise, your wheel house. when your ceo has no filter? >> you know, the hardest lesson to learn is that every client is different. and the idea that gurus in my field can control a billionaire, it's absolute folly. there is absolutely nothing you can do. because when you're dealing with a jobs or a musk or somebody like this, their life experiences taught them that the little people, the rest of us are completely wrong and they are completely right. so the idea that you could train them and hold them in is really not something i have had a tremendous amount of success with. but what they do get is broader advice such as you better keep cranking out cool stuff or you won't be forgiven.

look, steve jobs violated every basic rule of pr and crisis management. you're not supposed to insult the customer. they did. you're not supposed to be secretive. they were. you had the whole options scare issue and the consequences really weren't that great. >> at what point though? how many passes does one get? you have a guy -- let me finish for a second. you have a guy who some say, okay, he says they're going to deliver "x" number of cars. they end up only delivering "y." he says this wasn't material to tesla's value. you have a train load of folks in corporate governance who come on television and say, no, actually it was. >> solar city says it's a no brainer. >> solar city says this is legitimate. others say it's a bailout of one of your own companies. how many passes do you get? >> it depends. if you can keep on cranking out these products that people love, you get a whole lot of passes.

if you fail, it's just like sports crises. when you have an athlete or a team in crisis, if they win, the crisis reseeds. >> if you were advising him right now, would you encourage him to be in the twitter war with "fortune" or not? >> absolutely. when somebody like elon musk swings back against journalists rece , they do much better than what you see of a ceo of a normal now. of concerning the press. when elon musk swung back at the times for their reporting on engine fires, it was incredibly effective. that works for him. it wouldn't work for the ceo of ge. >> i'm going to talk about your book for a second only in the sense that we have a three-hour show here and most of it is nonscripted and you point out "glass jaw." it could be 11 words nowadays

that once it gets picked up in social media or wherever it was -- >> that's right. >> now, some people would say that the pc police went too far and that trump was the answer to that. like six months ago when it came out, it was refreshing he didn't always immediately worry about that he was offending someone. things didn't stick with him that you thought would stick. but the media is going to keep hammering him. they're still waiting. will they finally get him, do you think? or has he changed the game and pushed back the political correctness that just got too much out of control recently? >> you know, one of the things you hear about the powerful is they think they can get away with things. the fact is they don't just think they can get away with things, they do get away with things. until they don't. and one other danger i have seen with clients like this, they

push and push and push and may be able to get out of something 27 times. but the 28th could blow them up if they take it too far. >> and you're talking about trump, not hillary clinton? >> i am talking about anybody in positions of power. >> okay. we have safe zones on college campuses. you have to worry about microaggression. someone saw a trump button at a college campus and all the kids are in therapy. and, you know, the president of the university is talking to the parents saying i don't know how this happened. i mean, the coddling that's done -- you wrote "glass jaw." you're accepting this age that we're in right now? that there's nothing that can be done about it? that we can't move the pendulum back at all? is it a god given right to never be micro-offended at any point in your entire life or else someone's got to have a career ruined? >> the rules are different for different people. it doesn't mean that what goes

around doesn't eventually come around. but it takes longer for a lot of people. one of the things you see with the clintons is people saying they're very, very secretive and that's bad. well secrecy has been very, very effective for them. this whole idea that everybody is rewarded for transparency is a complete pr canard. but what you have to watch is if your behavior collides with bad results, whether that's in politics or in business, you have a different thing. had the lewinsky scandal happened during a recession, you would have seen a completely different reaction. but it didn't. it happened when the dow was at the 10,000 for the first time in history so people looked the other way. if elon musk can continue cranking out really cool cars, i think this goes away. on the issue of self-driving cars, i think you have a different story. because i think a lot of people are looking at that and saying, huh-uh. they look at something like that

and they say i am not ready for a self-driving car. if you take the risk of using it, you may have hell to pay. which is a different variable than the sheer desire to drive an electronic car. >> you're very smooth, eric. here we were on trump and hillary and you bring it back to tus la. >> i wanted to end on tesla anyway and maybe make this the last question before i let you run. what happens if the regulators come back and say no you actually were wrong, elon? >> you just hit it. because one of the areas where being charismaed doesn't work is if you think that a senator or a legislator or a regulator is being charmed by somebody with vision and charisma, they resent it. they don't say i'm impressed. they say i'm charismatic. you're not charismatic. how dare you try to seduce me with that?

so that is where you have a problem. a legislator or regulator is in a good position to screw up a very powerful individual or company and they can do it and they will do it. >> all right. the last word, eric dezenhall. thank you for your time today. >> thank you. coming up jim jordan joins us. we'll find out what he'll be asking james comey later this morning in a hearing on the hillary clinton e-mail server investigation. and then jobs are front and center. the latest adp data will be out. the numbers then market reaction are straight ahead. make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists,

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yes. is this the orchestra? this is the animal orchestra. the producer suggested -- we're playing a little "game of thrones." this is their rendition of "game of thrones." but the reason we thought it was appropriate because it was sea animals like in "finding dory." i don't know if you've seen it. one of those whales with the big foreheads, a major part of "finding dory." sea animals are definitely back. >> they're envogue? >> they're envogue right now. so we did a little -- >> and this is related to "game of thrones" how? >> and it says bad news. it's not related to "game of thrones" at all except we're playing the music. but it says bad news for "game of thrones." is it really bad news? production is going to be delayed a little bit. but if you're going to film a winter season where winter has arrived, wouldn't you want to

wait until you could film it really good with winter? and that's what happened. winter is arriving on the show. that means production on season seven will have to wait for summer to end, for summer sunshine to be over so they can shoot it in grim, gray weather. the creators also said the episode count will be a little bit less than -- >> i find that a relief because they're long seasons. >> no official return date. but i think it's okay to wait to do it right. >> sure. >> yeah. coming up, the adp employment report. republican congressman jim jordan joins us. "squawk box" will be right back.

washington front and center today. donald trump and james comey heading to the hill. the gop nominee meeting with top congressional leaders why the fbi chief will face questions. breaking news on jobs. the adp employment report just 15 minutes away. we'll bring you the numbers and what they could tell us about tomorrow's payroll release. and billions of dollars gone to the dogs. the secret money behind the pet

care industry. we'll tell you just how much money americans are spending to take care of their furry friends. final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> florence and the machine. >> they told me that it is her voice. >> awesome. love it. >> all right. welcome back to "squawk box" here on cnbc, first in business worldwide. i'm scott wapner along with joe kernen and michelle caruso-cabrera. we're less than 90 minutes away from the opening bell on wall street. take a look at the futures now. they're negative slightly. dow would open lower by about 18 points. s&p 500 and nasdaq in the red as well. >> less than 89 minutes now. my mind hurt yesterday. i was exhausted. >> took you about three minutes to come up with it.

let's take a look at european markets right now in the green across the board. germany, france, the fse, spain all in positive territory. take a look at the dollar as well. there's the euro. 1.10. the yen at 100. the pound 1.30. >> could rise to 99. that's why it's messed up. >> always tough. >> the yen could keep rising to 99. >> it's priced the opposite of the euro and the pound. >> the exact opposite, you dare say. >> but that's how it's done on trading desks so that's how we do it. >> it would rise to 99. you get it? >> i get it. here are the stories investors will be talking about. we're going to get ta double dose of jobs data. first we'll get the june adp report out in less than 15

minutes. forecasters expect 151,000 private sector jobs to have been added last month. that's versus 173,000 in may. then at 8:30 look for weekly jobless claims expected to hold steady. pepsico out with quarterly results. the snack and beverage giant beat estimates on the top and bottom line for the second quarter. what they're calling a volatile global environment. french company danone buying whitewave to expand business in the united states. danone will pay a 24% premium to whi whitewave's price. you better do that deal sooner rather than later. joe? >> yes? you want me to toss it? hand this over to me for this

one? you love this story though. fbi director james comey. >> let's not kid ourselves. >> james comey will be appearing before -- you see my picture with elizabeth warren? >> i did. people can act under any circumstances. >> we are actors. i know that. >> bad ones. anyway, to answer questions about his recommendations in the hillary clinton e-mail case. let's call it what it was, an investigation. a criminal investigation, i dare say. that comes as paul ryan submits a formal request to deny hillary clinton any classified information during the presidential campaign. hampton pearson has more on what comey is expected to face on capitol hill. good morning, hampton. >> good morning, joe. yeah as you were talking about, james comey expected to face tough questions from house republicans on the oversight committee over his

recommendation not to press criminal charges against hillary clinton for her use of a private e-mail server while secretary of state. now, late yesterday attorney general loretta lynch officially closed that investigation accepting the recommendations of the fbi director that no charges be brought against any individuals. however, the fbi director will face sharp questions from house republicans about his calling mrs. clinton's actions, quote, extremely careless but not rising to the level of gross negligence. in her handling of those e-mails and classified material. now, house oversight chairman says he will ask the director about what looks like a double standard for hillary clinton. >> it does appear based on the fact pattern laid out by the director that if you had done those things, you'd probably be in handcuffs. you'd probably be going to jail and probably should based on the statutes. sop we want to ask them about that. >> also expected to call for the

release of more documents now that that nearly year-long investigation is closed. joe? >> okay, hampton. thank you. and joining us now, congressman jim jordan. he sits on the oversight committee and will hear james comey testify today. and congressman, for those of us that aren't lawyers, i don't know whether you are or not, but there's a couple of key questions that factor into all this. my viewpoint was that, you know, there's no way that director comey wanted to insert himself in an election year into, you know, completely disqualifying a confidence chosen -- duly chosen by all of the democrats in the primary. he probably thought it wasn't his place. let the voters decide in november. is that okay to look and side on the spirit of the law versus the letter of the law? do you fault him for doing that if that was his intention?

>> well, no one's supposed to be above the law. and chairman chaffetz right now is right. recent polling shows that 80% of americans believe this town, washington, is rigged against them. and the reason they think that is because it is and we saw an example of that tuesday when it looks like there's one set of standards -- or one standard for we the people and another entirely different set for the politically connected. so it's appropriate in our form of government when you have a decision of this magnitude for the person who made it to come in front of congress and we exercise our oversight function and ask him important questions. >> i don't think he would say that -- i don't think he can actually say i did it just because i didn't want to change the election. but he'll probably say that he was -- he's the director of the fbi but he was a prosecutor. right? so he'll probably say that in my judgment -- i don't know if the fbi director normally should do that. they should just decide on whether a crime was committed.

i don't know if that's their place on deciding whether the case can be won or not. normally turn over to the prosecutors for that. >> they turn it over to the attorney general and she would decide. but she said i'm going to go on what the career prosecutors in the fbi, what they recommend. and that obviously is what happened yesterday. >> so in a normal -- think about normal criminal trials. there are times where you know full well someone did something, a murder even, and you don't have enough evidence and sometimes they decide not to bring the case. is that -- but we know the person's guilty. is that the case here? there was maybe not enough evidence to do it. but she definitelily in your view broke the law, the statute and is guilty of a felony? >> who knows? but my guess is there's a lot of prosecutors that would look at the evidence. the evidence in mr. comey's statement that said she may have potentially violated statutes, that it was extremely careless.

a lot of prosecutors would say i am going to take that to a grand jury. he decided not to. what we do know is this. she set up -- secretary clinton set up this unique e-mail and server arrangement. she alone controlled it. she had all her work-related, personal information, clinton foundation information. and we now know classified information on that server. they got caught with this arrangement. when it was discovered, her legal team said we're going to take the 60,000 e-mails and we're going to determine which ones we keep and which ones the government get. which ones congress get and which ones we keep to ourselves. they made that determination. and then -- one last thing. then the ones they kept according to mr. comey, they deleted them and her lawyers -- >> we get it. >> so that provides some context to make this decision as well. and i think he'll get asked about that -- those factors as well. >> to joe's point, i worked in florida for six years which

means by default i covered crime. there were instances, public defenders complained about it all the time that they were facing off against the people who made the choice about whether or not they were going to prosecute. and so when you look at prosecutors' records, they have tremendous records because they only choose to prosecute the cases that they know they can win. i mean, do you think there's any chance that this is part of the issue here? to have brought her -- to have charged her in the middle of the campaign and been unsure about whether or not you're actually going to get a conviction? >> maybe. i think you raise a lot of questions. we've got a lot of questions. and i know our constituents, a lot of the folks across this country are wanting to know why this was made. and that's why we're having the hearing. >> but the people -- your constituents and everybody an the country will have a chance to have their voices heard in november. what is today going to accomplish other than give you all a chance to look at the director of the fbi face to

face, go on national television, and tell him he was wrong? >> when 80% of the population thinks that their capital is rigged against them and they see a decision of this magnitude coupled with what they've already witnessed, the fact the commissioner of the internal revenue service, nothing's happened to him. along with the fact that lois lerner, nothing's happened to her. they expect the legislative branch to hold the executive branch accountable and to at least get some answers. so that's why we're doing it. obviously the american people, we the people have the ultimate say on election day. and that'll factor into how people vote. that's their call. >> congress man -- >> but our job is to get answers to those questions. >> but congressman, 27 months. what are you going to do about that? the cgi, like this e-mail is chump change. we're not going to see what happened at the clinton global initiative? selling state department

influence. i mean, 27 months? do you have any recourse there to say that's unacceptable? >> well, there's an investigation going on there too. the governor of virginia's being investigated in connection with the clinton foundation and some of the clinton dealings. so that's an ongoing investigation as well. maybe when there's some kind of decision, we'll ask questions there. but right now we're going to ask the director of the fbi the questions he talked about in his statement on tuesday. >> all right. well, i'm excited about the testimony today and watching. we appreciate it. see ya. thanks. don't move. we have the adp employment report after this break. amazing sleep stays with you all day and all night. sleep number beds with sleepiq technology give you the knowledge to adjust for the best sleep ever.

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breaking news from adp. private sector payrolls were up 172,000 in june. adp's may report revised down by 5,000 to show an addition of 168,000 jobs. joining us now for more on this report is mark zandi chief economist at moody's. better than expected, correct? >> yeah. last month the weak number was an outlier, it was a fluke. tomorrow's numbers should be

close to 200k. feels like we're back on track. >> what does that mean for the federal reserve especially in light of what we heard in the minutes yesterday? >> well, i think they want more proof. i'm sure they'll be very happy with the close to 200k. they want to make sure that what happens overseas with brexit isn't doing too much damage to the economy. so my sense is the next possible window for a rate hike is late this year probably december. >> and how likely do you really think that is considering how low interest rates are all over the world and negative interest rates that we're seeing in so many sovereign bond yields in particular? >> yeah, i think it's likely. you know, the u.s. economy is pretty close to full employment if it isn't already there. wage growth is picking up. it's accelerated quite a bit over the last year, year and a half. if you look at other adp data, it shows a broad acceleration

across demographics. inflation is a little bit below target but it's firming. i think it should firm further going forward. no reason that should slow. just so long as the financial markets, there isn't purr moil in the financial markets and the rest of the global economy is doing okay. i think they're on track to start -- in fact, as we move into next year, i'd be very surprised we don't see a series of rate hikes. i think the economy would call for that. >> mark, why are interest rates so low in europe? why have they gone negative? when i see that kind of performance in yields, i get very, very nervous. it seems to suggest to me armageddon is coming. >> well, you know, europe's economy obviously is still very soft. you have double digit unemployment. so they're a long way from unemployment. so you have the european central bank with the foot flat on the accelerator buying all the bonds it can. it started buying corporate

bonds for the first time. and then you've got the japanese economy that's soft. so the bank of japan is buying everything they can get their hands on. then you throw in the mix of the uncertainty created by brexit. so there's this flight to quality of anything that is like treasury debt or bunds. >> so there are lots of reasons, what you're saying. >> yeah. >> but the notion they could be signaling something very bad is misplaced? >> in fact, you might even take the opposite perspective. for the united states. right? long-term rates are determined in a global market. what's happening overseas matters for long-term rates. but you could argue that i don't know what the 10-year yield is today, that that's not consistent with the health of the u.s. economy. in fact, it may juice things up. certainly going to help housing

activity, purchases. in fact, they may argue this is going to support even stronger growth in the united states. and require the federal reserve to actually work harder to get the economy where they want it to go. it's not a rate consistent with what's happening in the united states. >> when deutsch bank says there's a 60% chance of a recession now based on the curve, you agree or disagree? >> here in the united states? no. why? there's no reason to believe that's the case. the u.s. economy is creating a lot of jobs. consistently unemployment is very low. wage growth is picking up. consumer spending by any measure is -- it feels like it's boomlike. maybe certainly the yield curve is a good leading indicator. but we're a long way from an inversion that would signal a recession. recession over through the remainder of this year into next is very unlikely. >> all right, mark. good to see you this morning. mark zandi.

>> thank you. coming up, busy day in washington. donald trump will meet with top congressional leaders. what you can expect from that next. an creates software, used by this bank, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this vice president, this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured.

welcome back to "squawk box." the futures have come off their highs of the morning and now they're in negative territory. nasdaq slightly positive. it's been pretty indecisive. let's call it flat. >> there you go.

trump's presidential campaign is making a financial comeback. likely republican nominee raised more than $50 million in june. that's more than 16 times what he raised in may. according to the trump campaign, slightly more than half the money came from the digital small dollar operation with the help of the republican national committee. in comparison back in june of 2012, mitt romney raised more than $100 million. hillary clinton raised $40.5 million in june and an additional $28 million for the democratic party bringing her total in june to $68.5 million. donald trump is in washington today meeting with the top gop leaders. john harwood joins us now with what we can expect. who's -- republicans, john? because in this election, i'm not sure who's more friendly to him. the republicans or democratic leaders. >> well, you're right, joe.

that was a good financial report for donald trump. it was a step forward that he released yesterday. but he's still got work to do to consolidate the republican party and get lawmakers behind him for his agenda if he's elected. because he diverges from republican orthodoxy on things such as trade. so donald trump is going to come here to the capitol hill. this is the first general invitation meeting he's had where any republican house member can show up, meet him, talk to him. same is going to be true on the senate side in a couple of hours. of course, donald trump given the pass as he arised alwarived attracts protesters. you heard they just stopped chanting. we're expecting donald trump to go behind closed doors and make his case to republicans. >> john, john, john? those protesters are republicans

or democrats? we know? >> oh, i'm pretty sure they're democrats. >> i'm not so convinced. on that note, do you see these reports that there's this possibility that there are still these delegates who are trying on the rules committee a percentage of them trying to make changes to make it possible to unbind the delegates and possibly undo donald trump at the convention? people have been counting the votes. do you give any credence to the possibility that could happen? >> i don't. look, there are people who want to do that. there are people who are talking about doing that. there are people who will try to do that. but these are the same people who thought they could beat donald trump during the primaries. they couldn't do it. i think that donald trump has a grip on this nomination that is not going to be able to be dislodged. we'll see. surprises can happen. i've been surprised before, but i do not expect this is going to

go anywhere even though there are misgivings about trump in his party. >> the one difference i -- and i'm there with you, but i guess the one difference i see is that in the primaries, everybody can vote. delegates tend to be much more establishment. right? so there's a greater chance he's at risk in this position. >> you're right, michelle. and there's some delegates that are bound to trump by virtue of the statement that are not for him. so if they could get freed of that commitment, they could go to another candidate. so one of the slogans that is being used by opponents of trump is unbound the delegates, unbind the delegates. so you could have potentially a vote on the rules committee that would free them to go somewhere else. >> hey, john -- john. >> you really need a plan to make this happen. >> that's not going to happen. >> i just don't think it's going to happen. >> ann colter today said trump's

going to make a mistake by taking a establishment republican. she says he should stick with what got him to where he is. is newt gingrich establishment? is chris christie? is there too much establishment baggage with those two guys to ruin the trump brand in terms of being an outsider? >> i don't know. i mean, look. christie and newt are both people who have demonstrated substantial appeal in the past. christie's very badly wounded right now. gingrich has some credibility within the republican party having led the back to the majority in the house. but he's been out of it for awhile. >> who's your pick? you got a pick? all right. we got to get out. we got data. >> my pick is gingrich. >> all right. gingrich in the sixth round. all right. thanks, john. coming up, more breaking -- i asked my dentist if an electric toothbrush was

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welcome back to "squawk box." breaking news. initial jobless claims drops 16,000 from a slightly upwardly revised 270k to 254,000.

now we can talk about how certain issues like holidays may skew some of that. but on the surface it's a decent drop back into an area we haven't seen really since the early '70s although we've tested it a few times. what does it mean? well, you know, it doesn't really mean much when you have a 38 or 39k like last month and one or two numbers, of course, change the strategic outlook. kind of like a day trader down here with regard to the fed. but i'm sure it'll all be taken into its job context especially post-adp. it wasn't spectacular at 172, but certainly better than we were expecting and fractions of that at the bureau of labor statistics almost a month ago. rates moved up about a basis point on this data. moved up a point or two on the 8:15 data as we hover near 140 which used to be the july 2012 all-time low. we played around with the last

couple of settlements. and of course we're continuing to try to handicap what's going on in the rest of the world whether it's brexit, property, mutual funds, or whether it's us and them. us and them. maybe that's brexit. those who rule, those who aren't ruled. to that end, be interesting to see what mr. comey has to say. back to you. >> no. no, no. >> i didn't know hear what he said. >> he said us and them. >> okay. >> pink floyd song. >> pink floyd. yes. >> not s & m. us and them. >> okay. thank you. it's so loud where you are, rick. >> very telling, rick. >> no, it's not. it's not. >> very telling. what's a virgin paper mill? i mean -- >> it's early. you guys get up to early. >> yeah, okay. >> thanks, rick. >> and often. go ahead. for more on the data in

tomorrow's jobs report, let's bring in stu hoffman, chief economist. stu, thanks for being here. thanks for being here right now. >> glad to be here. >> okay. >> i won't touch that. >> good move. >> been here before. >> heard that before. >> adp up 172, jobless claims down. pretty good. >> yeah. very good. although we've seen that the last couple of months. we'll see if this time it's a better indicator of what official number is tomorrow. i'm in the category of, you know, about 170, 175 for payroll jobs. of course there'll be the return of the verizon strikers. so just as may was a little understated, this will be overstated. >> so you think it was an outlier last month? you're convinced may was an outlier? >> i don't think -- i do think job growth is slowing down. you're not going to stay at 200,000 jobs a month as we've

been. our forecast for this year is we'd get about 165,000 a month. so i think that's slowing but i think that was much too abrupt. so i'll call it an outlier in the degree to which it slowed down. and i think this number will put us back more on that trend of 150 to 175 and help to average out. plus we're going to have to look for revisions. let's see whether or not that number withstands revision. if that's revised up 50 or 60,000, it'll be forget about it. but we'll have to see. my guess is we'll get at least 50 to 200 with this number for june and some revisions to the last months. >> but what is going on with rates? michelle brought it up already this morning. >> yep. >> why the 10-year is so low and whether it's telling the story of some doom on the horizon for the u.s. economy. >> i don't think it is. a global phenomenon.

that's helped bring rates down. there's a flight to quality. you know, it's been tracking what's happening in europe. between the bund and our 10-year has been around 125 basis points. so wheith them going negative, that's closer to 150 basis points. i think it's a reflection of global fears. not a reflection of sudden turn for the worse or the prospect of much weaker economic growth. consumer spending was very good in the spring quarter. business investment was certainly weak. oil's found a bottom, i believe. i think the u.s. is in a much different position and those rates reflect concerns, reflect global events, not reflecting or signaling a slowdown or a material weakness in the u.s. economy. yield curve's not inverted. it's much lower.

but i think it's really more global conditions than it is a sign the u.s. economy to say tomorrow's numbers are going to be another 40 or 30,000. and that would be a sign clearly the u.s. economy has rolled over in a big way. i don't expect that to happen. >> have a good day. appreciate it very much. stu hoffman, thanks. we told you earlier about a surprise move by microsoft's number two. b. kevin turner is going to citadel. jon joins us with more. >> yeah. mic microsoft making changes as kevin turner exits. the organization is really trying to stay flat. not appointing a different number two. instead splitting up kevin turner's responsibilities. going to lead global sales. he's based in paris and will continue to do that.

justin athoff, that fuels closely with the sales part of business. that deals closely with government that deals with folks like financial services, health care that are going to need changes to specific microsoft apps and processes. has led for awhile. also going to take on retail microsoft. on the line, there's few other changes. >> got it. jon fortt, thank you so much 37. coming up, the latest buzz from sun valley.

welcome back to "squawk box." the futures right now pretty flat throughout the morning and they are right now. they suggest almost nothing will happen. >> waiting for tomorrow. the jobs report. heavy hitters convening for day two of the allen & company conference. cnbc's julia boorstin joins us now with more. >> good morning to you. transitioning the media business to the digital future is no surprise a hot topic here. not just with media giants like bob iger but also with apple ceo tim cook who is talking with

here in this shot. now, as well as the internet ceos starting to bet big on content, mark zuckerberg with facebook live and jeff bezos with amazon prime video. predicts that sports including disney's espn will gradually shift outside the tv bundle as the media giants transform. >> they have to become consumer companies. if you want to sell product to people, you have to know how to market to and monetize consumers in a more direct way. that may be the biggest paradigm shift challenge the company wills have in the next ten years. >> with so many new entertainment options out there, the bar is higher than ever to get consumers to pay up for movies and theme parks with itch is one reason universal is buying dreamworks animation. >> it's two more movies a year in the animated and childrens area. they have a great television business. characters for parks and

attractions for our parks. we have -- you know, i think there's a ptremendous amount of synergy. i feel good about it. >> media moguls who haven't said a peep, james and lauk lin murdoch. though the company issued a statement about gretchen carlson's suit. the company saying, quote, while we have full confidence in mr. ailes and mr. doocy, we have commenced an internal review of the matter. we'll have to see if any of the other moguls here today who own tv network wills weigh in on the suit. we'll certainly be asking them. back over to you. >> have you had any sightings of

philippe damone? >> i have not. he's a longtime attendee of the sun valley conference. interestingly he was on the list, supposed to come. then a rumor started circulating yesterday something came up and he wasn't able to make it. viacom says he is still scheduled to attend but they wouldn't tell me when he is scheduled to actually arrive. so we'll see if he's around today. but he does not seem to be here as of last night. >> and you had the picture i think yesterday -- correct me if i'm wrong. maybe i mis-saw this. of ledstone and moonves? >> you're absolutely right. sherry redstone is here. she wouldn't say anything about all the questions that i had to ask. about what's going on with the lawsuit. she told me she used to come years and years ago but hadn't come for many years and now

she's very happy to be back here and seemed to be very much enjoying the panels. but she seems to be spending time with les moonves among other people. of course she's publicly praised moonves for his leadership of cnbc and she's in the lawsuit. if domane does arrive today, i don't want expect him to be hanging out with redstone. >> i'm sure you'll get a microphone or a camera near him at the least. thanks so much. all right. julia boorstin out in sun valley. stocks to watch this morning, whitewave foods being bought by danone. the deal comes a little over three years after whitewave was spun off from dean foods what? >> didn't know where whitewave was from. dean foods is a big dairy company. so this was like almond milk and that other stuff. like silky and others.

>> jpmorgan could be moving thousands of staff out of britain. that's from jamie dimon quoted in an italian newspaper. that would occur if they lose their rights in the eu after the brexit vote. pepsico beat estimates on the top and bottom lines for the second quarter. pepsi cfo hugh johnson will join "squawk on the street" 9:00 a.m. eastern time. >> need tiny little fingers to milk an almond. >> it's really hard. when we return -- you know, get used to scott not paying attention. he didn't hear a word i said. >> but i was busy. >> you didn't think it was funny. >> need tiny fingers -- i heard you. >> americans -- americans are projected to spend $60 billion this year on their cats and

dogs. i have three dogs. i have input on this. they have no idea how much they charge you. we're going to dig into the big business of pets. that's next. we'll tell you the prices of what bully sticks are. and here are the futures right now. >> i wish i had a dog. se and th. i enjoy keeping people up at night. my analysis shows your stories are actually about human connection, even love. great storytelling needs drama and empathy. my cognitive apis can help any business better connect with its audience. you should try writing a book. find a remote hotel. bring the family. i do not think that is a good idea.

universal secret lives of pets opens in theaters tomorrow. looks phenomenal. but today -- it does. what do they do when you're away? you can imagine. we're looking at the multi-billion-dollar industry that goes into taking care of your furry friends. we're talking about the pets, right? i don't think of you as my furry friend. jane walsh joins us. look at you -- >> those are yours, aren't they? those are yours. >> yes. i know what they do when i'm away. they sleep. they poop. but in any case, people will do just about anything for their pets, guys. even buy them pot. >> i'm gigi griffin and this is joy. joy griffin. >> gigi griffin is the last person you'd expect to see at a medical marijuana dispensary. she didn't come for herself. she came for joy.

>> basically joy was diagnosed in january with cancer of the bladder. >> radiation and chemo would cost thousands of dollars. but griffin had a friend who'd used medical marijuana to recover from cancer surgery and recommended it. >> i just knew that i wanted to try whatever would help my dog.. >> reporter: and that's how she discovered the hottest new field in cannibis. >> here we go. we're going to squirt it in there. >> reporter: pot for pets. >> yes. that's a good boy. . >> reporter: deborahs has been giving her daughter tyler a caneny base product to deal with arthritis. >> started swimming again and running in the park again. >> the sky is the limit in this industry. what we're doing is using medical marijuana for common ailments, pain, arthritis, anxiety, and these are common ailments that we see in the veterinary clinics every day. >> look at her. she's just -- she just looks healthy. she eats well. she has a lot of energy.

>> and instead of spending thousands on chemo, she's spending about $100 a month on cannibis. there hasn't been much research on whether this works whi is why the spca is not endorsing it yet. you have to have your own medical marijuana card to go into a dispensary and buy marijuana for your dog which is sized, dosed proportioned appropriately. >> we have all the dogs so inbred sometimes. cancer, it's devastating when you really do hear it. the pain is the same, i think, we can probably safely assume. that makes sense to me that, you know, what works on humans probably -- we thought you were going to do something on the costs of stuff and you got two dogs. i have a couple shepherds and little dog. if you bought like bully sticks i'm overpaying for these things. i got a pack of five, it was $35. for bully sticks.

or lung -- sheep lung or pig ears. i get a whole bag of pig ears as i said, that's a sentence i never thought i would say. do you have a bag of pig ears. i thought they were bear claws. what are these things anyway? they are pig ears. >> well, you know, and if they cost $100 you would still buy them because they're for your pets. apparently we don't put as price on what we do for them. how can you? of course they're ignoring me right now. princess leia. how are you doing. >> said years ago this was going to be a huge -- people would spend -- and you don't. but the price is like -- >> another story -- another story we're doing today is on pet insurance. people, companies, big companies, are now offering it as lures to get millennials as a benefit to get millennials to work there. not only department dental what's your pet insurance plan? >> step into a vet and see what -- you're not walking out with less than triple digits.

>> oh, yeah. >> i should have gone to vet school. >> i know it. but you know what, they are -- that's why i finally figured out why that movie, never knew what it meant all dogs go to heaven, all go to heaven because they could never by definition do anything that's not perfect basically. i mean they do some -- clean up some things. >> you love them so much, so charming and perfect. >> they don't have ulterior motives ever. the reason they go to heaven to be at the gate waiting for the master. >> he's really crying. it's not funny. >> they do. there's dogs that sit at a grave site -- >> i'm still getting over the pig ears. >> you are tearing up. >> i do. >> bear claws. >> german shepherds, i'm telling you. >> can we get music with this. >> thank you, jane. >> we love your dogs. >> you're welcome. >> i wish i had dogs. >> thank you. >> prin say cess leia --

>> you remember william hurt, broadcast news, sits there, didn't have two cameras but somehow they got a reaction shot of him with a tear in his eye doing a story. that's why holly hunter realized he was satan basically. did i call myself say tan? >> not like anybody else in the business. >> speaking of satan for the grace of god, check this out, dog spotted cruising the walkway just outside of the at&t park in san francisco. this is cute. look how cute this is. >> come on, scott. >> viral worthy. >> you have a dog. >> why don't you have a dog. you're is the suburbs. the pooch piz no stranger to giants games. according to mlb.com the four-legged skateboarder made a few appearances at the stadium this season. look, just roll this over and over again. you know, they said the other day he didn't like cat videos on the internet. i love cat videos on the internet. i love this kind of stuff. >> you know what. the dog, you got a dog, it might not like the elevator. you can imagine that a dog gets

in the doors close and opens. >> they get nervous. >> coming up. >> it's somewhere else. what happened? this is like a time machine. >> i was -- >> do your kids take the elevator? >> coming up -- you're not here tomorrow. >> calling all breakfast lovers. mcdonald's is expanding its menu. which popular item is making it ways to the fast food giant's big board and as we go to break, a quick programming note. don't miss reid hoffman linkedin co-founder on "closing bell" at 4:00 eastern time. at the beginning of the 21st century, the earth needed to find a new way to keep up with the data from over 30 billion connected devices. just 30 billion? so, a bold group of researchers and computer scientists in silicon valley had a breakthrough they called... the machine.

the machine. it changed the basic architecture of computing... putting a massive pool of memory at the center of everything. and by doing so... it changed the world. it's been a part of every new technology for the last 250 years. everything? everything! this year, hewlett packard enterprise will preview the machine. and the future of technology will begin. see star trek beyond. in theatres july 22.

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...in these 5 areas dentists check. this check up? so good. go pro with crest pro-health advanced. mom's right...again! welcome back. >> one step closer to finding out who will be the next prime minister of the united kingdom. a second round of voting will take place in the conservative party leadership race very funny story, right, if only you could see what happens during the commercials. final two candidates -- >> at the beginning -- >> i thought it said michele. >> it did. but it was a shot of me. it was shot of me for like the first ten seconds. that's why we're laughing. >> i was reading. okay. >> the train went off the rails. >> do you know who this is? >> i know who she is. >> theresa may.

a frontrunner after securing the most votes in the second round. >> what is it leadstrom. >> i believe so. and that's -- >> that's the secretary, michael gove. >> i thought that was mr. bean. >> he was in the background. >> mr. bean. you're going to confuse him with the other guy on pbs. >> or the guy in "monte python". >> one or the other. >> now this is you. >> thank you. all day breakfast lovers rejoice. i did this. well -- sausage and egg mcmuffin. >> i love all the breakfast. >> in the afternoon. >> for the first time? >> yeah. i hadn't used the all day breakfast thing. >> wow. >> and you know what, that was so good i wanted pancakes. adding mcgriddle now to the menu this fall along with egg mcmuffin and biscuit sandwiches. most already offer egg mcmuffins or biscuits all day long, so this is new, creating one national menu, mcgriddle the most requested item that is not

currently offered. >> i haven't. >> michele obama so mad at us today. first talking about fritos, dorito, cheetos and how much we love them and now talking about sausage egg mcmuffins in the afternoon. >> they're great. love breakfast for dinner. >> join us tomorrow. "squawk on the street" is next. good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with david faber, sara seisen, michael santoli. volatility somewhat muted as we juggle adp, m&a in the food space, pepsi earnings and fbi director comey on the hill. europe higher as bank fears subside for the moment. oil is higher on that bigger than expected api draw last night. our road map begins with a major post-brexit deal. danone buying whitewave for $12.5 billio