good friday morning and welcome to "squawk box" here on cnbc. i'm kayla along with joe kernen. becky and andrew a are off today. let's check the markets. dow snapping a nine-day winning streak. currently futures are set to open in negative territory as well. part of that story is crude prices falling 2%. settling back below 45 bucks per barrel yesterday at this hour. let's take a look at where oil is. we are looking at it down just a quarter of 1%. in the futures we're actually and slightly positive territory which is better than we had been earlier. overnight in asia, let's take a look at what's going on there. take a look at what we are seeing in hong kong. that index is just marginally lower. japan is fairing the worst.

it's down 1%. shanghai is down close to 1%. we are getting news out of reuters japan manufactures may cut profit targets. that is certainly a story that the market is watching. here's what's happening in europe. the ftse 100 in the uk is the only average that is positive although only by about .10%. good morning. we'll get to politics in just a minute. starbucks missed forecast for the third straight quarter. customers making fewers visits. earnings matched estimates, but revenues fell short. changes to the loyalty program and happy hour weighed sales. also cutting annual sales growth target to 10%. chipotle experienced a drop. free food and safety measures failed to bring consumers following several food born

illnesses last year. dow components is set to report this hour. we'll bring you the numbers. that's about 6:30 a.m. in about a half an hour. >> all right. scott. good to see you. thank you for being open to the early wakeup call. get through this together. if we were up late. >> no better way to spend a friday. start your weekend early. >> i'm the person with the sarcasm. are you going borrow it? you want to do it? we're not allowed to be scar sarcastic. just you. okay. >> that's sarcastic too i think. to politics. donald trump accepting the nomination. sarcasm is the demain of losers. i'm a winner. join us now, john, with more on last night. >> reporter: joe, there were

hints during the approach to donald trump's speech that he might as the republican nominee begin reaching out to different kinds of americans, expand his coalition. first we heard from the investor peter thiel who talked about his role as a proud gay republican. >> of course every american has a unique identity. i am proud to be gay. i am proud to be a republican, but most of all, i am proud to be an american. >> reporter: then you had the candidates very poised and polished daughter ivanka trump assure american women that he was going to take care of issues of concern to them, affordable child care, equal pay for equal work. it was an optimistic message. here's ivanka. >> he will focus on making

quality child care affordable and accessible for all. i will fight for this too right alongside of him. >> reporter: then donald trump took the stage, embraced his daughter and began speaking and that's when it got dark. donald trump painted a hellish picture of an america of economic devastation, physical danger, he accused hillary clinton along with barack obama of spreading death, destruction, terrorism, and weakness. he accused the corporate elite of overlooking t ing polite pli working class americans. >> the american people will come first once again. my plan will be begin with safety at home, which means safe

neighborhoods, secure borders, and protection from terrorism. there can be no prosperity without law and order. >> reporter: what you didn't have which made it different from the norms of previous acceptance speeches, you didn't have the humility. you didn't have the outreach to oppone opponents. you had donald trump saying i alone can fix our problems, sort of in the style you hear from aauthoritarian leaders in other countries. mike gir shin says he was appealing to primal forces with fear and anger without religious guidance or religious principips and the question is does this get him closer to winning the white house. he has a base among blue collar white voters. that's his core. he was appealing to him last night. that's why the speech was

accepted by the legislates. donald trump needs people who don't support him. white college educated women in particular. he's way underperforming in that group. he needs them for electoral majority. we're going to sew he how it pl out. he wasn't changing the same donald trump is the one you had in the primary is the one you're going to get in general election. >> does what work in the primary work in the general because these aren't different themes than what he's been sounding for the last year and a half or whatever, john, and somehow, he was able to -- whether it's media savvy or what, he figured out those were key themes for him to talk about. you've got 70% wrong direction people. you've got people noting that we haven't really born the brunt yet of isis because there's

fewer sympathizers here and we have the ocean. that's after orlando and san bernardino, but those things don't look quite as bad as what france has had to undergo, but it is scary. a lot of people have taken note it's been a while since there were actual assassinations of policeman and this sort of thing. is he dark or is he reflects what's a dark period? i don't know. we'll see whether they appeals to more than just what got him the republican nomination. >> reporter: well, joe, he does have a broad potential audience to work with in the numbers that you just cited. 70% of the people think we're on the wrong track. also highly negative opinions of hillary clinton. when he says her legacy the death, destruction, terrorism and weakness, there is an audience for that, but i'm just

not sure that audience is broad enough to get him where he needs to go. >> well, you know what, we have to throw out the playbook and all the pundits. one thing we may have learned is that nobody knows from what happened in that primary season. and, you know, maybe it doesn't -- nothing was going to be extrapolated to the big picture with trump. it was going to be a few states here and there and suddenly here we are. we're 0-16 on the challenges. who knows. >> reporter: nobody, joe, can -- and i include myself first in line, can be overly confident in their ability to predict the course of this race. >> exactly. >> reporter: there's no question about that, but the flip side of the discontent though is we do have an economy right now that is the strongest in the world. we do have unemployment now below 5%. we have a president of the

united states, democratic president in line with hillary clinton despite all that negative feeling is over 50% in his approval. you can't extrapolate directly from the wrong track numbers and say everybody thinks things are terrible because if they did, president obama would have numbers you know, down in the 30s, which we've seen from other presidents at the end of unsuccessful terms. >> i saw yesterday it was 49. maybe that a composite poll you're looking at: i think i saw one of those too. >> reporter: he's been in the 50, 51 range on the polling averages for a while. >> 90% democratics and he only had 80 before when there was the bernie sanders, but still very low on republicans. >> right. the same token, the wrong track

numbers are very heavily infused with republicans. it's everything is particularized in our politics right now. >> think about if hillary is elected president, what -- i mean, think about the people that really have a negative opinion of hillary clinton and that's going be the president. it's going to be tough unite this country and have everyone says i'm backing this -- whomever it is. whether it's hillary clinton orthopedic donald trump to have team say i'm 100% behind what the president is going to do. it's impossible and that's unfortunate. >> it's going to be very, very difficult to govern and if hillary clinton is elected, she is quite unlikely to have a democratic house. she might have a democratic senate. >> we're going to see the same fighting that we have had. the question is, does she -- is there a mood in the country after this election and does she have the skill? she has shown some capacity to

work with republicans in the past. would she have the ability to make a coalition. i'm pretty sure dump would face roadblock opposition from democrat democra democrats. >> the states that seem to be vulnerable for republicans the polls have those guys up a lot more than people thought. so i don't know. the way the american people. >> the republicans i talked to here at the convention, the people who do politics for a living, house senate races, they're very gloomy about trump's prospects, but more upbeat than i had expected for prospects for holding the senate: they think it's going the be tight, but they pointed out for example rob portman is healthier than they expected. they think heavy investment behind kelly. try to hold the seat in new hampshire. pat tumy may be able to hold on in pennsylvania. the one who inspires the most

pessimism is ron johnson in wisconsin. if in fact we get out of this two-week convention period. if hillary clinton has a more successful convention, coming out of the convention period with a similar kind of lead we had before going into the republican convention in our nbc wall street journal point, five points with her doing well as i mentioned before, college educated white women, enough to give her a clear edge, you may then see that republican money and energy start to flow down to those senate races in particular. house racesraces. >> and somehow the american people seem to set up some divided government. seems to just work out that way sometimes. john, thank you. for more on next week's democratic convention, let's bring in former governor

gilmore. he's a former gop presidential candidate and our friend democratic congressman jim hien of connecticut. we haven't seen the congressman for a while. welcome to your both. >> good morning. >> congressman, i go to you first. if it was next week, just because trump gave the longest speech in history, i'm going to ask governor gilmore what he thought of it. >> i thought it was a powerful speech. this is a time when the united states is looking for new leadership. they want change and i think donald trump projected that. he went through the litany of issues he believes, and, i believe, are of concern to the american people. the central theme was insecurity. a feeling of the american people that they're not safe. he made the point about the murder of the police officers and we saw a mass murder of police officers. that makes people very insecure. the terrorist issues, job

security, american people know that jobs are not plentiful. job security is not good. i think he was talking to that. he was speaking to that. he was saying we're going to have a better day when i become the president of the united states because i'm going to do something about it and he's the kind of personality that demonstrates he will. >> if you're not on a nshl tick national ticket, would you celebrate another virginia governor being on a ticket? you think it's going to be tim kaine? could you give me a thumbs up on that. i'm going to ask congressman hiens in a second. >> i know senator cain. i like him personally. i don't think he adds much to the ticket. the only thing he's known for in the stenate is trying to get congress to declare war. i don't think he adds much, but he may help him in virginia. my job is to make sure we carry

virginia for the ticket and i'm going to work very hard to do that. >> that was a low blow. can you name any of hillary's senate accomplishments? >> well, sure. you know, she spent a lifetime working in an affirmative way including in the senate and including by the way a secretary of state and trying to uplift children, whether it's early childhood education, whether it's, you know, equal pay, equal rights for women. this is a theme that has transcended not just her senate career, but when she was first lady when she took the lead on admittedly false start on health care. a long record of doing things and actually doing things. not just saying she's going to do things as we heard last night, but actually doing things that advance the welfare of women and children and americans in particular. >> do you have any insight congressman on what we're going to hear today this afternoon in florida? are you thinking -- are you

handicapping to be senator cane? >> i have absolutely no insight. that's an odd thought. i have to tell you, i am intrigued by the talk of admiral which i think profoundly respected military officer. a buy the who would bring some comply ter complimenty to the ticket. no inside information, but i'm intrigued by that as a polk. >> he was a good man. he was on the show last week. i thought we were down to kaine, vilsack and cory. >> i don't think it makes nit

difference frankly. trump last night was speaking to the anxiety and concerns of the american people. you know the country has not grown at the proper pace now 27 quarters we've underperformed. the last quarter was like .08% growth. the people of the united states know the country is not growing by historical standards. job security, young people not having opportunities. i think trump is speaking to working people in this country and speaking to resentment and suspicion the country is rigged. he said so. the fact is 2-1 over 60% of the american people think she's dishonest and the record of her foreign policy is not strong. people feel like we're less secure now than we were. i think trump is speaking to that concern. anger and resentment that people feel right now that has to have an outlet and i think trump is providing that voice. >> i would differ with the governor on that point.

i have to tell you last night's speech i think hurt him very badly. particularly coming right after the remarkable speech that his daughter gave and frankly i listened to that speech about early childhood education, standing up for women and then we got an hour of post apock lip tick, mad max. the country is in some bad place. the country is doing awful lot better than it was eight years ago. most importantly i was hitting there shortly before i took my box of canned goods and weapon ri into my basement at one hour and 15 minutes, i was thinking what happened to ronald reagan. here was a guy who stood before the country generally a tough time when we had a real law and order problem and real recession and said it's mourning in america. i remember the grace and dignity who said here is where we can go. there are obviously people in the country who feel like

they've been a little bit left behind, but those people at the end of the day are not going to be motivated by a guy who stands up and tells them you're in a hellish ses pool. we should go back to reasonable doubt -- how different his approach was to the challenges this country faces: how much more optimistic. politics we talk about happy warriors. we heard last night was pretty much the darkest vision of this country and aauthoritarian glean. at the end of one hour and 15 minutes i a said where is ronald reagan. >> that was very stirring. rememb i wasn't expecting it, but what do you think, jim. >> we're hearing the talking points for the dnc that's coming up. here's the deal. the american people understand we have serious challenges. they understand the challenge we're seeing of international

terrorism. they're understanding the challenge that we're seeing of insecure borders. they've been talking about this for quite a long time. and most importantly people know we do not have an affirmative growth policy in this country. joe, you and i have been talking about it for years. we have not seen an affirmative growth policy all the language that comes over the democrats they'll see at their convention is anti-business, anti-growth, and anti-opportunity. i think trump is speaking to that. >> we've been the best house in a bad i guess global neighborhood. they've already gone down that path, jim, and maybe some people like you think that we need to stop our slide down that euro path before it gets further. gentlemen, thank you, i want to thank you you both. we have four months of this. is that good? four months to go. it's great. it's american democracy, but we're seeing some sauces made. when we come back on "squawk

box." we'll get you ready for the week ahead. plus the busiest week of earning season. dow components and 177 companies in the s&p 500 all set to report. what you need to do to prepare. coming up next. it's here, but it's going by fast. the opportunity of the year is back: the mercedes-benz summer event. get to your dealer today for incredible once-a-season offers, and start firing up those grilles. lease the c300 for $379 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing.

time now for our what's working series. dow winning streak coming to an end, but a busy week coming up. joining us now is chris. welcome. good morning. the. >> thank you for having me. >> we talk about the dow snapping a nine-day winning streak, but it's really the s&p 500 that matters as a broad indicator of the markets. by that gauge, are we still looking pretty healthy. >> 345rk9 markets aren't going to just go to the sky. they are in a period post-brexit where we've had great recovery. markets have been moving up on that wall of worry. we're in the middle of earnings season, which basically has been a little bit better so far, but on lower expectations.

we do still see a positive return still going forward in the year. it wouldn't surprise us if there's some, you know, profit taking in the market so we're going to be looking for opportunities and dislocations in the market and in companies with earnings, but, again, we're looking for good management teams that can manage through these volatile times. >> is the profit taking just a breather or potentially a plateau. >> i think there's rotation. it's not that the market is all going up across all sectors that we saw during the qe days over the last few years. which is great for companies we saw bankruptcy, we see reallocation of capital. we're seeing that again in the markets here. technology has been doing quite well, industrials are coming back a little bit. we're still on a slow-growth environment. i'm not saying we're going back to 3%, but things are looking decedent for equities. >> does that tell you at least

somewhat based on what's happening in the market that was has been a largely hated rally is starting to change from a sentiment standpoint. this climb of this wall of worry is actually shifting? people are believing in it and actually liking it. >> i think they are. there's a lot of cash on tsidel. the rustle 2,000 has not yet the broader indexes. we think there's still room to go. we're also looking at the high yield market which was a disaster last year and led the small caps down. that market has recovered. people have figured out in the energy patch which was the terrible part of the high yield market, where the winners are and losers are and money is flowing back. >> you want the see small caps catch up to some way validate the rally. >> i think it would be certainly helpful.

they're enormous job creators in this country. you can find opportunities. that's where active management can perform in a small cap area. >> we've had good data. we had the market at record highs. we had the dollar index at a four-month high. at what point does the fed reenter the conversation. we had a couple week break now. >> that's a risk. everybody has thought central banks remain accommodative. look at european interest rates at record lows. leltive to treasure riff they've compressed as well. going forward that headline risk can come back. the drum beat of higher interest rates or rate rise will cause higher volatility. if you're able to short of hedge, we view cash as strategic to dd deploy when the stocks arn the market. >> it's not like a rate hike would sneak up on us. it's a pretty good job

predicting when we get that. do you think it's happening this year or to you think it's 17 or 18 as some fed members have suggested. >> i think a discussion is going to happen. whether it happens or not, i don't know. the market hate is uncertainty. they take it down based on that discussion. >> the rates are surging today in germany. they are back to zero this morning. so huge move. well, i had to go back -- remember you learned higher negatives, less negatives. it's confusing. the rates surged from negative up to. >> to see a chart where something can go down more than 100%. >> exactly. >> it's light twilight zone. >> 13 trillion in negative yielding debt around the world right now. that's messed up. i don't think you have to look much further to understand why stocks go up. >> it's very hard to run models

based on negative rates. it really does push you into asset classes further out. if you're an asset all cay terror, you're torrforced to do >> have you had people on half time loving this market for the last three months. >> i do on the last three years, at least. >> people are coming around. brexit was big uncertainty. so then we know what's going to happen now. the uncertainty was removed and we've been straight up. the people on here are going to say after that nine-day winning streak was snapped, see, huh, too far too fast. am i right or am i right? yes, what about yesterday, down 70. that's what they're going to hang their hat on. and they've been wrong. that's why the market tries to take as few people on board as possible. >> people rely as long as the fed is part of the discussion, people are always going to suggest the market is only where

it is because of central bank policy. if you get some credit behind okay earnings kproouchlt, more of the fundamental play driving stocks and you can believe a better looking story. >> think of u.s. economy does improve a little bit from where it was and we're still held lower by this now global bond market. we stay at zero and we get a good economy. >> i don't think the bond market is reflective of the economy. >> interestingly the fact interest rates are so low has helped so many companies and all the banks last week were talking about the facts of interest rates and yields so low allowed a lot of energy companies that maybe would have had to go bankrupt or default in some way to two in and refinance and they hadn't been able to predict that. >> are you hiring? we don't even need you today. did you hear some of this analysis here from the talking heads, me and -- i don't know. i'm looking for a new.

>> take him. please take him. >> it's going be an empty chair next time. >> two other bullish factors going on in the market: one is the i mrkip market is open. the market is accepting new ideas. >> only big good new ideas. not like the floodgates are open, the window is way way wide open. >> it's a start. and from a point of where there was almost none in the beginning of the year, that's a bullish item. the other part is mna. joy global was acquired yesterday or went into a deal. i mean, think about it. coal, equipment stock, somebody who is willing to buy. so people are viewing, looking out that you don't do mna when you have a recession ahead of you or really a negative view. so those are two items we look at which give us some comfort that things are not totally terrible. >> it's good to have you here this morning. we have ge earnings though.

>> .51. a full nickel ahead of expectations. and revenue. look at this. revenue is above expectations. i'm looking at some of the highlights for the companies. 33.3 billion versus a consensus of 31.8 billion. organic revenue growth. is that minus 1%? i don't know whether that's a dash that it is 1% or minus 1%. it is up 1%. still on track for 2-4% growth this year. that is a little bit below. expect organic growth and pow toer to be up 50%. >> this is a stock that's done better. even over the last month or so, it's up nearly 10%. the story has sfwantly changed certainly in the way the market views ge.

not being reliant on the financial unit. >> able to go up even though move big into energy. it kind of for a while it was maybe held down, but now it seems like it's a good place to be. 45 bucks they can make money and a 3% yield or 2.8% yield in this environment. general electric. i think the dividend is a lot more secure than it was in 07. i heard some people talking leading into the number. if it was a good number maybe there would be a sell on the news because the stock has run so much, but no it's up .75% in the premarket. it's going be closely watched today for sure. >> that will be a new high, i think. not all-time. >> close. >> got to get 33. >> we have the, but you're basically there. >> do we call analysts that are the most widely viewed, do we call them axes anymore? do you call them that on your show? we have nick camon.

the analyst you go to get -- the rick sherman used to be. guys like that. >> i hear you. >> we've got nick on later and we'll take talk to him about all these things. he's got estimates for each one of these. oil and gas, health care, aviation, we'll see what was above and below. coming up, roger ailes out at fox news. what is next for the cable news channel. we'll have a media analyst coming up next. take a look at yesterday's s&p 500 winners and losers. thank you. ordering chinese food is a very predictable experience. i order b14. i get b14.

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welcome back to "squawk box." 21 century fox announcing rogers ailes has resigned as ceo and chairman. rupert murdoch will assume the roll role of chairman and acting ceo of those units. join thing us now on what this means for fox barton crock et. a material change in management or a positive for a situation that was taken care of relatively quickly. >> we're happy you're ripping off the band-aid. not something stretching on for a long time. the issue here is roger ailes has been exceptionally talented at what he does, which is getting an audience for this

three-ring circus that is 24 hour news. nobody has done it better and they've got to continue what they've been doing well without the genius there. that raises some questions, but i'm happy they're moving on. >> to what extent are the operations institutionalized, the person who basically created the current culture and the current success of that company, or that unit, that doesn't go away on day 0. >> it doesn't go away on day zero. he's been remarkably successful and you look at what he's done to create fox news, and, you know, be the leader in an industry where it one incumbent with cnn. he's done something special. that have is something that points to the talent of the man. clearly people around him are running the show day-to-day. i fully expect the ratings at fox news to continue to be strong in the near term. i think the question is longer term when you have to make decisions about talent or you have to make decisions about

coverage. is there going to be some type of slow change in the performance of this network and it's a longer term concern, i think, for fox. >> the talents in place, o'reilly is getting -- he's maybe thinking about ri tiring, but everybody is pretty young. roger was 76 i think. i don't know if he would have gone past this contract necessarily and she's still a consultant for the parent company. do you es krieb anything that rupert is doing himself instead of turning it over to his sons who are liberal guys. if you leave bill shine in, who roger has known for a long time, what's going to change with him as a consultant. >> clearly, nothing is going to change very soon. rupert stepping in is a way to ease the concerns and also you know, rupert has an interest in fox news. i think he case about the

coverage. he wants to have a voice there. the issue here is nothing near term for fox. it's something longer teerm eer it's only a worry. there's a lot of talented people there and we could look back in a couple of years and the juggernaut continues, but right now, you've got to scratch your head and worry a little bit about it, but this is about fifth of the business at fox. so it's important. they've got to make sure this continues to perform well. >> how much do you think rupert is actually going to step in? beyond getting this title and the expectations in our conversation today that he's going to have more of a role, i think there's a suggestion right here on this program the other morning from michael wolfe that along with mr. ailes being out that rupert was going to be pushed in the back burner by one or both of his sons. >> well, look, inning there thia

bigger transition happening at the top. rupert is older. his sons clearly are positioned to take over and that has to happen. i would expect rupert taking this interim ceo position. he'll be there, talk to the talent. help them feel comfortable about staying. i expect them to be interested in the coverage and have a voice there. i also would expect this to be transitional. he's got an interim title. that means something. he's going to be moving on after a period of time. then we'll see how fox news can perform after that. >> give us a name of who you think we'll see of ceo of fox news a year from now. >> i can't give you a name right now. i would choose someone internally, but you know, i'm not close enough to that to really tell you who i think the favorite is. >> the game will continue. we appreciate you getting up early this morning. coming up, facebook's drone taking flight. why the social network wants to

control the skies. as we head to break, here's a quick check of what's happening in the european markets right now. earlier not a lot happening. there's some green, but nothing to get -- again, germany is down. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t. you recommend synthetic and can yover cedar?to me why "super food"? is that a real thing? it's a great school, but is it e right the one for her? is this really any better than the one you got last year?

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time now for the executive edge. facebook completing the first full test flight of itself drone yesterday. looks more like a plane. it's been designed to be the internet. it flew for more than 90 minutes over arizona. the company calling the test a big mile stone for it's connectivity plans. hopes to bring that one day to india to rural parts of the world that currently aren't connected. there have been some obstacles to the effort, but full feed ahead for the engineering side of it. health firnls are waiting to see whether mosquitos collected near miami test positive for a

zika views. that could determine whether a florida woman is directly affected by a mosquito bite in the united states. lab consults confirm the woman has the virus. so far, all have involved international travel. state officials say the zika investigations are eating up emergency funds provided by the federal government. separately, new numbers from the cdc say there are 400 now pregnant women in this country with the zika versus. those 400 do not include the 378 women in territories like puerto rico. 12 babies have now been born with zika related birth defects. coming up, investors aren't hungry for burritos or coffee this morning. we'll di we'll dig in with an analyst on the other side of this break.

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we are back on "squawk." chipotle delivering disappointing results after the bell on thursday. revenue at the burrito chain fell 17% in the quarter while same store sales fell 26%.

starbucks cooling global comps. that was well below expectations. here to break it down is guggenheim analyst. >> thanks. >> let's stake starbucks first. the company says comps in the u.s. were an anomaly in the quarter. you believe that? >> well, yeah. i think that they slowed. they went down to 4% from what expectations were 6%. certainly slowed from the previous quarter. but howard shultz came out right away and calmed fears. >> sort of came out swinging, didn't he? >> yes, he did. it's uncharacteristic for him to say i see 5% and we've corrected since then. he even said we feel confident about better than 15% longer determine despite all the partnership investments. he answered a lot of questions people were concerned about. >> we understand why he could be upset. looking at the numbers, comps have been at or above 5% for,

like, the last 20-some-odd quarters. now we're turning in 4%. what the heck is going on? in not so many words and he didn't use that word. >> i think 2% were responsible on their side of the business with their timing of a frappuccino promotion as well as their much touted transition to their loyalty program, dollar based versus transaction based. that was a concern. but he also did cite that the consumer is slower. and i think we're going to see that throughout this earnings quarter that the global political situation as well as the impact of consumer spending has cooled a little bit since the back half of 1q. >> i know there's a lot of focus on the comps but pretty much every segment if not every one around the world was slower. >> certainly. every region seems to be having its issues. certainly the attacks in europe have not helped peopling wanting to congregate at a starbucks. he has cited some of those

issues as well. >> let's transition to chipotle. what was most surprising, if anything, out of the results? comps were down. we knew they were going to be down. they were down more than 20% comps, you got an issue. was it surprising or no? >> i think what continues to be surprising is the discount program, punch card program that they said they would never do. july it launched and what have they gotten? an improvement in their same store sales. kind of week considering this is a come every four times you get a free burrito and get free chips for signing up. it does seem to be exciting getting the new customer back or the customer that was last. the customer who goes maybe once a month in 2015. he's not back. >> i've read some of the common tear that a full sales recovery could take years. is it possible it's never achieved s e achieved? >> they are in essence

self-canablizin self-canablizing. i think it will be a very long time. and more than two years is basically never in this type of environment that we're in right now. >> part of the issue is that when chipotle was going through all their problems and people weren't going, or at least a large enough segment of people stopped going, in that time period they were sampling other fast casual places. is it likely that some of them just never came back. >> great point. i think the competitive set is much better now than it was three or four years ago. so you probably picked the worst time to give people e. coli and norovirus. but you have concepts like pizza rev, habit burger, pie five. >> hundreds of new things that weren't around a couple years ago. things none of us on the desk had even heard of. >> well, not a lot of them are in the northeast yet. they're on the come and they're

opening up next to chipotle. they offer similar quality food and go after the same demographic. chipotle was the only one on the block doing that five years ago. now there's much more competition. you don't have to go to a chipotle to have better for you food in minutes. >> all right. quick programming note, starbucks chairman and ceo howard shultz will be on "squawk on the street" a few hours from now. coming up, one convention down. one more to go. more highlights from donald trump's speech last night and a look ahead to next week in the gathering of the democrats. plus ge just out with quarterly results. we'll get reaction from the street straight ahead.

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it's official. >> i humbly and gratefully accept your nomination for the presidency of the united states. >> we'll break down trump's big night in cleveland and look ahead to what the democrats have on tap next week for their convention in the city of brotherly love, philadelphia. snapped. the dow's nine-day winning streak is over. investment guru and guest host jason trener will lay out what investors need to watch. earnings, a fed decision, and tons of data on the economy. and pokemon go takes off in japan. the blockbuster hit game now available and fans are hitting the streets. 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 along with kayla tausche and scott wapner. the futures at this hour, improved up a little president up almost 30 points after a nine-day winning streak in the dow was snapped yesterday. rebounding a little up 27 on the dow. up 3.5 on the s&p. the nasdaq is indicated up 7. in studio sharing his thoughts -- he hasn't done that yet, but i'm talking about going forward -- i love that term. going forward, jason, you're going to be sharing your thoughts. >> if you're going to let me. >> that's why you're here. on the markets, the race for the white house. chief investment strategist at strategest. we'll hear from him. >> he was sharing some thoughts during the break. i know you don't want to jump the gun. he hasn't said anything they missed yet.

>> that was accurate in the prompter. he's sharing his thoughts. the coolest thing about him is his name, right? it's always trenert. >> you're really building this up. >> let me manage your expectations. wow. we got a lot of material. >> i need to write down kayla tausche to say it backwards. what would it be? >> you just wouldn't. you never would. close to how it's said forwards. >> we have some other headlines to get to this morning. general electric earned an adjusted 51 cents per share for the quarter. that was 5 cents above estimates. more on ge's quarter with analyst nick heymann in just a few minutes. another upbeat earnings report this morning from

whirlpool. $3.50 per share. the company also raised its earnings forecast. stock is unchanged. we will be keeping an eye on that. and the search for missing malaysian airlines flight mh-370 is set to end more than two years after the crash. they are working on the final search in the indian ocean and if the aircraft is not found, the search will be suspended. >> thank you. >> yours isn't bad. >> yours is nenrek. >> it sounds biblical already. and eschat came down. we're mindless on the show. >> see what you started. >> i know. it's because of trenert. he used to be at isi. either way, back ward. weird, isn't it? scary. the republican national convention came to a close on

thursday night as donald trump formally accepted his party's nomination for president. >> you're good. >> friends, delegates, and fellow americans, i humbly and gratefully accept your nomination for the presidency of the united states. >> we're not laughing at -- >> i cannot. i cannot. i cannot read this. >> okay. you want to do it? >> yeah. meanwhile, democrats are getting ready to kick things off in philadelphia, the site of this year's democratic national convention. hillary clinton could pick her running mate as early as today. a lot to cover on both sides of the aisle and for that we have eamon javers joining us now with the political front from cleveland where of course the rnc wrapped up a little bit later into the night than anyone expected. >> reporter: it was a late night

last night, kayla. i can vouch for that. this was donald trump's republican party now. everybody was looking forward to ivanka trump's introduction of her father. she did come out on stage and gave a warm, personal, and heart felt speech about her relationship with her father and the kind of president that she thinks he'll be. here's ivanka trump. >> other politicians see these hardships, see the unfairness of it all and they say i feel for you. only my father will say, i'll fight for you. the hard working men and women of this country identify with my father. he's tough and he's persevering. he is honest and he is real. he's an optimist and he's a relentless believer in america and all of her potential. >> reporter: and you guys were talking about hillary clinton and what's going to happen next

week at the democratic national convention. here at the rnc in cleveland hillary clinton was really the one big unifying theme between all of the different republican factions that were so fractious this week in cleveland. donald trump took to the stage, he delivered a very long speech. he stayed on script, did most of it off teleprompter. veering aside for one or two non-scripted remarks. for the most part this was a scripted donald trump. the likes of which we haven't really seen before. here's what he had to say about hillary clinton. >> this is the legacy of hillary clinton. death, destruction, terrorism, and weakness. but hillary clinton's legacy does not have to be america's legacy. >> reporter: so we're going to see later on today, perhaps, hillary clinton vice presidential pick. maybe over the weekend. we're waiting on that news. traditionally you'll see the party with the second convention in order chronologically try to step on the media coverage of

the first party's convention by announcing that vice presidential pick as quickly as they can. we'll see if the clinton campaign has that in mind or something else going into philadelphia next week. we are wrapping up cleveland here. they did a great job here. we were on the streets with the protesters. everybody did a very terrific job. warmly welcomed. and despite some of the fears going into this week of what it might be like on the streets here in cleveland, we saw nothing like the worst case scenario. in fact, something close to the best case scenario. >> exactly. and in terms of overall arrests, eamon, like below the last two, right? the last conventions. way below. like fractional numbers compared to the last couple which is crazy. i mean, that's awesome. >> reporter: just a handful of arrests. i'll tell you how calm things were. we actually got some updates from the police as we were going along. one of the updates was that one of the police officers who was here from out of state had an allergic reaction.

and so we got an update on that. so when you're getting your police updates on somebody having allergies, you know things are going smoothly. >> right. it's a testament to cleveland, i think, and a little bit of a reflection on -- it's not new york any time in terms of things that are going on, i think. i'm saying that in the nicest way. i have this rivalry being from cincinnati. >> cleveland's a good town. >> it's a good town but it's not cincinnati. obviously. >> reporter: they did a very, very good job this week. these people worked around the clock. they did. >> and policemen from all over the place, too, all pitching in. >> reporter: we saw california highway patrol, georgia, indiana, south carolina, north carolina. all those different police forces represented here this week. we saw the mounted police from ft. worth, texas. all the mounted police here have helmets on, the ft. worth, texas, guys came out in the full cowboy hats on. >> maybe things will be okay.

i sound like william heard. for now we're joined by former hillary clinton senior adviser ann lewis. and kay bailey hutchison. she's also a cnbc contributor. i'll start with you. i don't know, we were in a good mood. it's friday. i think it's because the dnc is coming up next week. what do you think? >> well, i certainly feel that way. i'm looking forward to our convention. i'm looking forward to hillary clinton speaking. and i'm looking forward to the number of people i know who are going to take that stage and tell hillary's story, who are going to talk about her as a person. talk about how she worked throughout her life whether it is on behalf of children or when she was a senator on behalf of our armed forces. we've got a great story to tell, a great candidate. and yes, i think it's going to be a very happy occasion. >> you think that the viewership if it's just a coronation, no one likes controversy except cable networks. do you think a coronation is going to get the same play as

what went on last week? >> oh, gee. do you mean sort of for the sake of the cable networks we should try to have people shouting at each other on the floor and walking out? >> just a suggestion. not if you don't want to. just a thought. never mind. >> well, i think -- i hope what americans would want to see as they look at our convention is that we're working together. you know, when hillary says we can do this, we're stronger together. she means it. i think that's the theme that you're going to see throughout our party. working together, we can make a real difference. >> senator, i had a different view, a little bit anyway. i think that a lot of democrats maybe watched the rnc because it's trump and who knows what's going to happen. do you think a lot of republicans are going to watch the dnc, senator? >> oh, i think certainly they will. i think the conventions provide a lot of insight into what a party believes, what the candidates believe, and i think

particularly for trump because people really didn't know him. he's new on the scene. he had to tell his story which i think he did very well. especially through his children. and the stories of people who had been helped by him like rudy giuliani. i thought he did exactly what he should have done at the convention. i thought it was an interesting convention. i watched every day and i'm going to watch next week too. >> we changed elephant in the room because that's too partisan. we changed that to -- we like mixed metaphors. the 800 pound gorilla in the room. aren't you from texas, kay? >> yes. are we the 800 pound gorilla? >> yeah. the 800 pound gorilla in the news named ted cruz. what happened there? >> i think he made a big mistake. i honestly do. if he was going to stand on principle, he should not have accepted the invitation which i

think donald trump graciously gave. which was you can speak, no holds barred, i'm not making any requirements. and i don't think the senator lived up to what he should have done in that kind of a situation. >> ann, the one thing that the republicans could agree on throughout the week was hillary clinton, competing against her, attacking her. they got a lot of mileage attacking mrs. clinton throughout the week. i'm wondering if you think in philadelphia we see her with a need to respond to any of those attacks or just pretending like nothing was said. >> well, i agree with you. we just listened for four days. i can tell you what republicans are against. at some length. we just heard four days of really angry rhetoric certainly capped off by donald trump himself. what we never heard was what are people for. i never heard donald trump talk about why he's proud of america. what is it we think we do right. so, no, i don't think that's the

kind of example we want to set. i would hope that what we're going to do is say yes, there are real differences. for example, again, ivanka trump talked about equal pay. i was delighted to hear it. i'm not sure which candidate she was addressing at the time. but i will tell you, we will talk about equal pay and why it's good for families and why it's good for the economy. and we'll talk about it in some specifics like how we can achieve it. so i think you will see clear contrast. i think you will see differences. but it will be framed in how do we move forward. how do we do what's best for the country. >> senator, i'd love your response to some of the commentary that's been out there this morning that the trump speech itself was too dark, painted too much of an ominous picture about this country. that the humanizing of mr. trump came from all of his family members but not the man himself. >> i thought he laid out the concerns of the american people very well. i don't think people are

believing that america is living up to its full potential right now. both on foreign policy and an economy that is sluggish. people are not getting jobs or better pay. i thought ivanka's point about in our businesses pregnant moms are not forgotten, they are supported. >> should that message have come from mr. trump himself, though? i think that's sort of my point. that a lot of the humanizing and the more personalized stories in the convention in its entirety came from people other than the candidate himself. is that okay? >> yes, absolutely, i think that's fine. i think the stories from other people are more credible in a way. because they're talking from the experience of knowing him. and i thought the way his family and his other -- the other people who were supporting him,

talked about him was important. and i thought his speech really did hit as he has in this primary, the concerns of the people for where america is. and if people think that americans feel safe and feel secure and have jobs, that they're feeling like they have a future, i think they're wrong. i think donald trump was right last night when he talked about where america is and where he wanted it to be and where he would take it. i thought the speech was just what he needed to deliver. >> all right. ann, we got to run, but i don't know. i think next week -- i think it's going to be tied in terms of -- i think trump's going to be an absolute pinata for every guest and there's going to be little policy. that's what the advisers on both sides say. both have high negatives. each one is going to go after the high negatives on the other side. i mean, i didn't area anyone

call hillary mussolini but i know we're going to hear that. i've already heard it from ken burns and that's when he was being nice. so you can't tell me you're not going to see trump be the object of absolute scorn for four or five straight days. >> well, ask me back. we'll talk about what happened in our convention. but i'll tell you this. i saw a republican convention that talked only to primary voters, only to people who are already voted for donald trump. hillary's going to talk to the whole country. >> we'll see if the tent gets bigger. >> exactly right. >> all right. thank you, both. senator, good to see you. >> thanks. coming up, general electric reporting this morning beating estimates. getting a boost on the numbers out this morning. we're going to speak to the analyst nick heymann after the break about the company's recent performance. take a look at the futures this hour. s&p futures are up. they'd open higher by about 4, dow by 31, now nearly 32. back after this on "squawk."

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we're back. general electric reporting earlier this morning. joining us now to break town the results is nick heymann. he is electric equipment analyst at william blair & company. >> good morning. >> what's your read? this is scott. >> i'm sorry, scott.

no, no. the read here is it looks pretty constructive. they did 51 cents. i think the expectations were around 46. we were at 45. most folks expected 11 cent of restructuring and it was 9 cents. so part of the beat, if you will, was 2 cents of lower restructuring. but the other 3 cents was actually about 2.5 cents from the industrial performance being better than expected. then about a half cent from the vertical finance. and that was with 1 cent of headwind that was not expected. so earningswise, it looks like it was pretty good. >> it was funny. i was wondering going into the number whether it would be a sell on the news. then the stock was up nearly 1% after the number came out. it since turned negative in the premarket. there seems to be a good debate within the market right now.

whether ge deserves the multiple which it trades. or if it's too rich now. >> yeah. this is a battleground stock. no question about it. that's because this company is undergoing a massive transformation and only one out of three parts as we see it occurring will be reflected in the stock. that's the accelerated exit capital. and the second part that's really starting to catch people's attention is this ramp of ge digital and the ability to take and commercialize the industrial internet. and that's starting to be impactful in terms of sales and earnings. but particularly as we go into '17 and '18. but they're way ahead of everybody here. everybody will acknowledge whatever's going on, they're ahead of the pack. and i think the third thing is we're starting to see a lot more focus on revenue and while revenue was down organically in the first a, we're going to be up very solidly here in the second half. they detailed this out to be at

least 5%. so the full year is going to be up 2 to 4 and then the question is does that continue. >> there was a dash before the 1%. >> that was negative in the first half. down organically 1. and second half you're up 5. now they detailed -- power -- oil and gas, for instance, is going to be down 12% for the year, not 20%. >> i wasn't sure how the street was going to view long-term. but orders without was down 16%. but when you include alstom it was down only 2%. >> right. alstom is going to be a source of incremental revenue growth which is not in ge's forecast. next year 8 to 10 cents and 15 to 20 in 2008. >> hey, nick, you know, you look at the revenue numbers across

all of the main biz segments. at least if i've written them down correctly, the financial services revs were the smallest of the lot. viewed now as a good thing. if they were $2.77 billion for this past quarter, what in the hay day of ge capital and the finance arm would they have been trying to give people a better representation of the kind of changes that ge has made from a financial standpoint? >> yeah, i mean, the financial service revenues peaked some place in the vicinity of about $54 billion or on a quarterly basis, call it $10 billion, $11 billion. so we have dramatically reduced that. >> yeah. that is a dramatic change. >> yeah. it's -- you're looking at ultimately the financial verticals right now are going to be some place in the neighborhood this year of $10.2 billion. and next year maybe $9.6 billion. so you're down to 20% or less.

>> i appreciate the time, nick. certainly a closely watched stock and one that has absolutely been on the move higher. >> okay. well have a good day, guys. good weekend. >> good weekend as well. all right. coming up, the author of "clinton cash: the untold story of how and why foreign governments and businesses helped make bill and hillary rich." the book has been turned into a one-hour documentary that debuts in theaters this weekend. peter schweitzer joins us after the break. and we'll speak with our guest host jason trenert after the break. qo:é8j8j8j

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coming up, ihs market analyst, his latest op-ed in "the wall street journal" suggesting our confidence in the public markets is declining. we'll ask him about that. along with an outlook for oil prices. oil was down yesterday. it's not doing a lot today. off 6 cents. "squawk box" will be right back.

morning the stories front and center this morning, russian officials say their athletes continue to prepare for the olympic games in rio pending an ioc decision on whether to suspend the team.

this comes amid a widespread doping scandal. the kremlin says it wants all clean russian athletes to take part many the games. hillary clinton is likely to announce her vice presidential pick today. right now tim kaine is considered to be the favorite by many. although other candidates are still said to be under consideration. more on the presidential campaign in just a few moments. goldman sachs is starting up a new corporate buyout fund. goldman is hoping to raise up to $8 billion. it would be the first such fund marketed by goldman since the 2008 financial crisis. pokemon go has finally launched in japan. japanese fans anticipating the game's release since it first went live in the u.s. two weeks ago and gamers have already hit the streets. the massive launch comes with a mcdonald's sponsorship deal. the fast food restaurant signing off on its locations becoming pokemon gyms. shares of nintendo up nearly 5% giving back much of those gains

closing 1% higher. stock is up by 90-something percent though. >> and 72% in the last two months. >> crazy. >> first you get the whopper music. then you get the pokemon music. it just makes it read better. >> it flows. >> my ears perk up. >> i saw you do a little dance at the desk. >> i did. good job. >> my full name backwards, you said i sounded like a saudi oil minister. which is a great segue. oil prices are down nearly 2% as the united states faces record crude inventories. dan yergin is market vice chair and is this something we should

be more worried about? >> i think it shows the weakness -- it's particular that the buildup of gasoline and other products are weighing on the market in a sense that the supply that was out comes in a weaker demand. >> so what's your price outlook from here? you think we'll stay at these levels? >> we're showing for the second half of the year in the $48, $49 range in the mid-50-ish range. >> do you think companies are prepared for something of that level. because they've been watching with wide eyes as the price has gone up waiting to reinvest to reopen rigs. are they doing that? >> i think we've seen rig count is up 40. you have to remember that 1300 rigs have been laid down. so they were starting to build up. a month ago oil was around $50. i think right now a gloom has

settled over things and people are pulling back. it's still about protecting their balance sheets. and for the majors it's about protecting their dividend. >> i was just wondering, obviously, in the context of what's going on in the country now as far as our presidential election, is there anything about -- is there any significant changes for the energy sector that one might expect given the two candidates? >> it's quite striking if you look at the two platforms. it's like a mirror image of each other. they disagree on about everything. >> it seems to me -- >> just to add, when the democratic platform is about the u.s. will get 50% of electricity from renewables in a decade. the republican is about this strength of a shell revolution we're having. >> so it's relying on fossil fuels, doubling down, if you will, on fossil fuels. >> what did you hear during the convention this week about

energy security here in the u.s., how we can preserve that and what the republican party plans on that? >> well, the republican party -- i mean, what you really heard is preserving these kind of great gains we've made. obviously it's a lot about environmental. there's a huge division on climate change. but i think that it's -- you know, the position of the united states is much stronger in energy than it was five or six years ago. and if we saw that go backwards, we'd just be importing more oil. in a sense where the democratic -- well, particularly the bernie sanders side was pushing for policies shutting down shale which was not in the final platform which would mean we'd import more oil. >> but there doesn't seem to be move in that direction even with some rigs coming offline, we're producing so much more crude than we ever even imagined five years ago. >> yeah. i think that even the people who are the authors who drove this shale revolution had no idea that it would reach the scale it

had. and the exporting countries, you know, didn't see it coming. they thought it was a bubble that would go away. >> they see it coming now. what do you think the outlook for energy is if, say, we get a trump presidency and harold hamm is the energy secretary as we learned this week would be likely. >> he'd still have to get approved by the senate. it would be an interesting hearing. >> confirmation hearing. >> for sure. i think, you know, i mean, their point of view is if your drilling to get a permit from the state, it takes 30 days from the federal government. it takes seven months. so i think you would see a stronger industry. what we're hearing from the democrats is that they really want more regulation. >> what would that look like? >> well, it would slow things down. >> do you think in order to get the price of oil higher, if that was the goal, would you think there'd have to be more

bankruptcies? one of the things that's been ironic about this and perhaps it's because of the monetary policy that we have is that you've seen prices i think the average price of oil in 2014 was maybe $93 a barrel. now you're down to $35. >> we've seen a lot. maybe we'll see some more, but i think the key thing to watch is what happens with u.s. production. it will continue to go down. that's one of the things. we were actually probably imbalanced globally in the second quarter. and then canadian oil came back and so forth. and i think we're moving back. remember it's been 22 months since oil prices started down. so this is a cycle. and it will in a volatile way, this is a market that is in a recovery phase. >> is opec still -- i guess you're saying opec's really not the swing producer any longer. >> opec has taken the job of saying market you manage the market. it's that. it's the futures, these

financial plays. all are shaping the price of oil. that's one we're going to see more volatility. >> do we still need a saudi ipo or do you think those discussions have been tabled? >> i think it's pretty definite -- what i hear when i've been out in the region is that train has left the station. it's going to happen. and the aim is as we heard when the deputy crown prince with us here in the united states, make it the biggest ipo in history. i know a lot of investment bankers are salivating over that. >> what would that company be worth? >> well, the numbers out there that get thrown around $1 trillion, $3 trillion. the total value. >> that'd be the first one. >> the ipo would be about $100 billion type thing that's being talked about. so it's certainly gotten a lot of interest. and then i think the aim of the saudis is to use their sovereign wealth fund to not only be a big player in oil but in the global financial markets. >> that's the long-term goal. we'll see when we actually get

that. interesting insights. we appreciate it, dan. >> thank you. this is my read. coming up next, the author of the controversial book "clinton cash" joins us. as we prepare for our coverage of the democratic national convention. the futures at this hour are rebounding a little bit from the first selloff in nine days yesterday. up 25 on the dow. we'll be right back.

the republican national convention wrapping up with the gop nominee donald trump delivering his acceptance speech. now the democrats will have to showcase -- or have a chance to showcase their candidate hillary clinton. that brings us to our next guest peter schweitzer who is the author of the book "clinton cash: the untold story of how and why foreign governments and businesses help made bill and hillary rich" and a film version of the book will debut this weekend filled with claims including dealings that have led to russian president vladimir putin controlling 20% of a uranium company. the clinton camp has denied the claims. peter, thanks for joining us.

t"the washington post," i mean,i don't know how this got dragged out of them. they said on any fair reading the pattern of behavior schweitzer is charged is corruption. meanwhile secretary clinton's campaign manager denounces the book as a bunch of outlandish claims with zero evidence. you wrote this awhile ago. since then we've seen the whole comey situation. and we're wondering whether this is going to be the next thing that somebody looks at more closely. the whole initiative situation. who's right? do you have evidence? i mean, you need to be able to show that something actually happened because of the cash. that's hard to do. >> yeah. well, that's absolutely right. i think if you look at recent american political history when it comes to corruption investigation and prosecution, whether that's the former governor down in alabama or

senator menendez. what you find is you need to show a pattern of behavior. you need to show that money was given by certain individuals and a political individual did unique favors for that individual. what the clinton campaign has tried to say is that you have to have a quid pro quo. that you have to have an e-mail which probably would have been deleted or a recorded phone call conversation that says i will do this if you give me that. that is not the case and has not been the case. as i demonstrate in the book, there are three things that went on during the tenure as secretary of state. number one, they made a lot of money. either through the clinton foundation or into their pockets in the form of speaking fees. two, a lot of that money came from foreign entities. and number three, that those foreign entities got favorable action from hillary clinton. i think all three of those events are related. >> peter, does the book go into -- i've seen stuff on the

dealings in haiti where most of the money was somehow found a way into companies that the clintons at least had relationship with. is that in there as well? there's been a lot written about that. then i want to ask you about something else too. >> absolutely. there's a chapter on haiti. in fact, a lot of the findings in the haiti chapter were confirmed by "the washington post." we shared the book in advance with investigative units at "the new york times" and "the washington post." "the washington post" focused on haiti and confirmed our findings which was that a lot of entities connected to the clintons got favorable action while the clintons were running reconstruction. that includes, by the way, hillary clinton's brother tony rodham who scored a gold mining construction. the first one granted by the government in 50 years went to a company whom tony rodham joins the board shortly after. >> yao seen the latest stuff. i love this one.

how would -- i can't find anything actually wrong, though, with the laureate education deal. is that in the book? bill got -- i think -- >> yeah. >> he was chancellor for what four years salary $14.46 million. then what did laureate, they get state department money or clinton b foundation money? >> so here's what happens. laureate education hires bill clinton as the honorary chancellor. he gets $16 million. the head of laureate education, a guy named douglas becker, also runs a nonprofit called the international youth foundation which is less than a mile away in terms of where the laureate offices are. sends $55 million to the international youth foundation which then does joint projects with laureate education. that to me is something that warrants serious investigation. >> maybe there is something going on. did you see laura ingraham's

speech at the convention, peter? >> i saw part of it. i was traveling. >> the end she pointed up to the media booths at the top and said, when do you finally go and look at phonies and hypocrites and when do you do your job? when will that happen? where is the -- where's woodward and bernstein on any of this? is that you? are you both? >> it's a great question. i mean, you know, i have to say the investigative units at "the new york times," "washington post," abc news have done good kwork in this area. the most shocking thing to me is all this stuff had come out last year from page story "new york times," "washington post." in all the debates and all the interviews that hillary clinton has done with the mainstream media, she has not been asked one question by the media on these topics which to me is shocking. i think any other political figure in america with a 4,000

word front page investigative piece in "the new york times" alleging money from the russian government, the transfer of uranium would at least warrant one question from the mainstream media in terms of a political debate and it's never happened. it's really shocking to me. >> there's a lot of things that could be looked at, i guess. so where can you see this movie? there's another movie coming out called "clinton's america" or something. that is in theaters this weekend. we said you are but i don't think so. where can you see the movie rendition of your book? >> well, you can of course buy the book in bookstores. it's coming out in paperback next week. the film is going to be this weekend, you can go to breitbart.com, give them your e-mail and they will give you free access to the film which will be streaming all weekend. we also have, by the way, coming out, a graphic novel. a couple guys that did batman comics for years have created a

graphic novel version of "clinton cash." >> trump said something like i could walk down the streets of new york and shoot somebody and that wouldn't even hurt my ratings or something. i think it's kind of -- is it kind of similar? i mean, i'm even listening to you going, oh, hillary and -- you know? it doesn't surprise me. that's 20 years of this. she has to do something a lot worse than this to derail the clintons. >> well, there was a great statement by the late senator pat moynihan of new york, a democrat, who talked about defining dooe ining deviantcy. i think it's the same thing. when we reach a point that the clinton deference is you can't prove a felony of us doing this. that's their defense.

that's i think a serious problem. we all have to step back and say, look. do we want to have the same rules for all politicians? what senator menendez did that warranted prosecution by federal authorities. the clintons have done multiple times beyond. and that's really the question. this is not about the clintons ultimately. it's about who -- what are the rules, who has to comply with them, and how are they complied with and are we going to have consistent rounds for them. >> have you been on msnbc and all those? >> i did "morning joe" a lot on msnbc. now they've gone radio silent. >> no one cares. it's classic. it's the clintons. anyway, peter, thank you for being with us this morning. >> thank you. >> we didn't bring you on purpose on the friday before the dnc. we had you earlier this week but it was moved. thanks, peter.

>> thanks. >> did you make the change in the teleprompter? >> they did it to me too. scott renpaw. >> i like my first name backwards. >> coming up, stocks to watch. investment ideas from jason trenert no matter how you say it. >> he's lucky. >> he is. at the top of the hour, more reaction to trump's speech. larry kudlow and harold ford will mix it up. "squawk" will be right back. so you can take your business just about anywhere. plus, our extended range lte reaches twice as far and it's 4x better in buldings. get more done in more places. switch your business to t-mobile@work today.

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i like the orchestra with that. it works. >> with wapner, yeah. >> all right. let's look at some stocks to watch this morning. >> there's vocal and then there's music behind the vocals. i like that. >> a lot going on. >> that's really good. >> i showed them that. posted first increase in sales in nearly two years during the second quarter. amd has seen increasing demands. beat estimates by a penny. earning 35 cents a share for its latest quarter. however, revenue falling short for the maker of northface,

nautica and other brands. >> we've got to move on. did you see -- take the kids to "finding dory" yet? there's a beluga whale and it's cute. we got to go. a chance to grind higher. of course there's a chance. >> a big chance? >> so you're saying there's a chance? >> saying there's a chance. >> i'm saying it could go down, up, or stay the same. jason trenert probably wants to hire me now because of my analysis there. could go up, down, or stay the same. >> of course. >> were you a person -- i don't think you were. you didn't think brexit was ushering in the end of days, did you? >> not at all. of course there's a lot of revisionist history on this. i think all these things together whether it's trump or

brexit, in my opinion they're part of the same idea which is largely that there's a backlash against political and intellectual elites and globalism. and i think there's a lot of things that ordinary people, if you use that term. nigel farage has used that term. told whether it's good for them. whether it's open borders or negative interest rates. there's a whole host of things that have been told are good for them. by the elites. and people are saying i'm not so sure. i think if you look at -- you asked about brexit. the interesting thing about brexit is the that the ftse is probably one of the better performing stock markets this year. i think despite the fact it seems almost certain that you're going to have a recession there. >> i don't know though. cheap currency cures a lot of thing. everybody's doing it. they did it in one swoop. >> you're going to stick around for the next hour. >> coming up larry kudlow and

harold ford join us to talk about trump's speech and preview the democratic convention next week. and what gm is doing to keep you safe on the road. the company's executive vice president will joins u. "squawk box" comes right back. this is lulu, our newest dog.

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donald trump's big night. >> we will never, ever sign bad trade deals. america first again. america first. >> fireworks in cleveland. the republican presidential candidate paints a dark picture of the country and makes his pitch for making america great again. the market now snapping a nine-day winning streak. but booking on the winnings armageddon. forget hot wiring. thooes are going high-tech to get inside your ride. automakers on high alert as hackers target connected cars. we'll talk about cyber security behind the wheel. the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box."

>> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen along with kayla tausche and scott wapner. becky and andrew off today. the futures right now have been marginally positive through most of the session. we were up a little over 20. the douw is up 14. it was down triple digits yesterday. but it closed double digits down. markets in europe at this hour are kind of similar. not a whole lot of movement. germany is basically unchanged. down 0.02%. and small gains in the other four that we monitor. you don't need to know on sirius xm, there's nothing happening. and if you're watching at home, you can see, nothing going on. is that okay? >> all right. >> back to you. are there headlines today? >> a few things.

including general electric. reporting better than expected earnings and revenues. the company describes the current business environment as a, quote, volatile and slow growth economy. a mixed quarter for honeywell earnings did fall short. the split of its automation and control solutions unit. embattled fox news chairman and ceo roger ailes is out. he's resigned following allegations of sexual harassment. ailes denies those charge. parent company 21st century fox says rupert murdoch will assume the role of ceo at fox news and fox business network. goldman sachs reportedly starting up a new corporate buyout fund. the bank is hoping to raise up to $8 billion. it would be the first such fund marketed by goldman since the 2008 financial crisis. the last fund of this type they actually raised was $20 billion. even though they're still tiptoeing back into an area left by a lot of other banks still sizably different from what they

were doing before. a few stocks on the move this morning. starbucks had same store sales falling short of forecast. customers made fewer visits and starbucks as far as going for the futures, cutting annual sales growth now. the target is 10%. chipotle posting a bigger than expected drop in same store sales. safety measures failed to bring customers back after several foodborne illnesses. you tweeted something. one of my famous sayings. that the worst mexican food is great. >> i did. >> i saw that. did you go to cramer's or something? >> i did. >> how great was it? >> delicious. >> was it really? >> yeah. delicious. >> empanadas there are killer. >> we need to amend my saying that the worst mexican food is great unless there's a foodborne illness. then it's probably less than --

but still probably average. because you get it on the way in at least and it's still good. >> i got the postcard in the mail for chipotle, the free meal, after they closed all the stores and looked at it and had to really come to grips whether it was willing to take that risk. did it. can't turn away a free meal. >> there's other places that -- what's the other one? it begins with a q. qudoba. >> i like them. >> and then there's also taco bell. which i'm not above going to. but they closed the one where i live. >> there's a qudoba near where you live. >> harold, you okay? you want us to move on? >> by no means. i'm a taco bell man. i recently became a family of four. >> that's right. i forgot that. and pandora is cutting its full

year outlook after the internet radio service reported a wider second quarter loss on higher costs and weak subscriber growth. meantime "the wall street journal" reports that pandora has also been a takeover target. liberty mee media made a target valuing more than $3.4 billion. never too young to get them started, harold, on the mexican thing. >> i totally agree. >> donald trump claims that his spot at the top of the 2016 gop ticket, claimed it last night officially as the republican national convention wrapped up. declaring himself and law and order candidate. trump sought to link a decade of strife around the world to hillary clinton's time as secretary of state. >> after 15 years of wars in the middle east, after trillions of dollars spent and thousands of lives lost, the situation is worse than it has ever been

before. this is the legacy of hillary clinton. death, destruction, terrorism, and weakness. >> the other big speech of the night was from silicon valley venture capitalist peter thiel who tried to fire up the crowd with his own message. >> of course every american has a unique identity. i am proud to be gay. i am proud to be a republican. but most of all i am proud to be an american. >> that was a pretty good moment. and that was after the article had already been written about he's going to have trouble with his friends out in silicon valley. you can't do this. you're going to have trouble if you go and talk at the -- anyway. joining us now former democratic congressman harold ford jr. also managing director at morgan stanley.

>> good morning. >> you always -- you're very good -- you're going to say some good things about trump, i know, about that speech. then you're just going to kill him. i know that. but i'm going to let you do it. did i get that right? that's what you told me earlier. he was pretty good at certain points but there's going to be a big "but." >> i think he did what he needed to do last night for that crowd. i think his daughter was fantastic. i thought peter gave a great speech as well. but i think to be elected president you have to project optimism. people want to know the country wants to know how we're going to move from where we are to a better place. and i think the jury's still out about how well he did on that front. >> harold, i agree with that except that he's been a master at sort of feeling the current -- i don't speak any french as you can see. but to 70% of people think -- and then there's also -- i don't

know. like i said earlier, orlando was unbelievable and san bernardino, terrible. but we almost feel lucky based on how vulnerable we think europe is right now. it is a time that we'd like to be optimistic, but there -- it will strike a certain chord to recognize that there are some things that seem really, really wrong right now. >> i don't disagree with that, but we're americans. and we -- our politics and our country and the leadership we've benefitted from over the -- since the birth of our country has always been exceptional and better than the rest of the world. the question is, is this what's won it now? and it's hard to doubt him because of where he started and where he's gone now. i was on this show the day after he announced. michael steele and i, you had us on. >> yeah. >> i'll never forget michael steele saying -- and i thought it was a damaging speech he gave from the beginning when he attacked mexicans and immigrants. it turned out pretty well for him. forgive me. illegal immigrants.

especially from mexico. so it's hard to say where he's going to go. you look at the history of presidential elections. you have to project where the country's going to go. i'm not convinced he did enough of that last night. now, next week democrat wills have their convention. curious to see how mrs. secretary clinton and democrats react to that. i am a democrat. i'll billion at that convention for a bit of it. i do think some of the things that happened this convention a little overblown. i think the plagiarism thing got too much more attention than it deserve candidate. but we'll see. >> is ivanka perhaps the secret weapon? people were talking about how maybe at the convention we'll see a more moderate trump, we'll see him move toward the middle. he's already secured the nomination. now he just needs to be a general election candidate. and he didn't do that at all. but ivanka took the speaking spot that's served usually for a significant other. and she struck a really moderate tone.

she was addressing millennials, addressing women, talking about equal pay. i mean, she said a lot of things that donald trump the candidate probably can't say. >> this was an unusual convention in that the candidate mr. trump used his family to make the points that you generally have politicians and former rivals make the points during the campaign or during the convention. so it will be curious to see how effective she may have been. i do think that substance will eventually emerge and people will evaluate him along that. something that was kind of overlooked yesterday, mr. trump in "the new york times" said that our nato allies if they expect our support should expect america to now determine and predicate to know whether or not they support us. i think that's a bad precedent. i don't know how that will affect markets and our allies and partners around the globe. >> to be fair o on that because i saw that story too, of the countries of nato only five meet the requirement of spending 2%

of their gdp on national security. so i don't -- i just want to push back on that. i saw some -- >> we want to be good allies but we don't want to be patsies. that's what people think of, harold. in trade and a lot of -- that's another undercurrent. we could spend some of that money that we give to the rest of the world providing the security for all of nato basically and subsidizing their pharmaceutical costs all across europe with our rnd here where we charge full boat for the prices. some of that could be spent here on guys keeping their jobs or, i don't know, the ways of building out our school systems. it just -- that's part of the backlash against globalism. where we're always so magnanimous that we don't care of ourselves. >> no one is suggesting that. and that reality that was just mentioned is something that has persisted for some time. again, i think an evaluation or re-evaluation of all these things should happen. but they shouldn't happen in a vacuum. they certainly shouldn't happen

in a way in which i think mr. trump is talking about. >> i mean, michael moore, anything he suz i'm trying to figure out what he's trying to accomplish. he said he thinks trump's going to win. i think that's too fire up the base. but she blew through a lot of money in june. in the swing states. >> secretary clinton? >> yes. in the swing states and in ohio and other places. and i know we just had the rnc, but they're tied. and i see, you know, places where you expect to see drudge, democrats are anxious. they are at meetings saying what the heck is going on. have you seen any of that panic? like holy cow, donald trump might be an opponent. >> i think all of us take the republican nominee seriously. >> really? what do you think the chances are? 75%? >> i'm not good at those kinds of things. but mccain and palin after the convention, they were up by

three points. people forget this. so you have a good convention. i'll be curious to see the numbers after this convention where mr. trump is and where mr. pence is. where they are, rather, in the polls. fortunately democrats have their opportunity to introduce the vice president, introduce the ticket to the country. >> did you work with pence? >> i did. we served together in congress. he's a decent human being. >> the trustworthiness issue that she's going to have to get over next week, how big is the hurdle at this point? >> no more than what he had to overcome, mr. trump. i feel good about where we are. i don't -- again, i take mr. trump very seriously. i think democrats have to understand that when you're the nominee and we all do you have a legitimate chance of being the next president of the united states. but i like seriousness on our side and leadership on our side. i think we have to portray and project those things next week in a big, big way. i have confidence that we will. >> you're not going to talk at all? >> i'm going to be there and try my hardest to be helpful between

now and the election. >> do you think bill clinton will be -- will play as big a role as perhaps donald trump's children in the -- or more -- in terms of the campaign from now until november? >> i'm not going to get ahead of next week. but four years ago it was bill clinton who gave the closing argument for the convention for us and made clear to the country that president obama, what he had done the four years prior and why he should be re-elected. i think he gave the most effective speech of the convention second to the president, that is. you don't like what i'm saying -- >> no, a lot's happened since then. but we'll see. no one would ever go short on bill clinton's political abilities. that's one of the problems with his wife. she's not the politician that he is, obviously. he'd probably still be a net positive even with everything else. >> the history of presidential elections, you project optimism, tell the country where you're going to take us. i'm not convinced mr. trump did enough of that last night. but a lot of people were not

convinced he'd be the nominee and he's proven people different. >> i wonder. people say you can't take the primary season and extrapolate to the general. i don't know. no one -- i mean, it's crazy. and brexit. brexit was 52-48 remain the night before. 80% on the betting back then. and somehow this undercurrent of anti-globalism was there. >> the national polls are a great snapshot but states are better. we continue -- mrs. clinton continues to lead in the state by state. >> harold, good to see you. coming up, hot wiring gone. high-tech hijacking cars while you're behind the wheel. a top general motors executive will weigh in on how to keep your vehicle safe. that's next. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go!

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all right. cyber security of connected cars becoming a top priority for automakers and regulators. industry leaders meeting in detroit. phil lebeau joins us live with a special guest. hey, phil. >> good morning, scott. let's bring in mark royce who is the head of global product development for general motors. he joins us from the kobo center in detroit where the global automotive security conference is taking place today. good morning, mark.

i'm curious from your perspective. everybody's always asking me this. how safe are our cars from being hacked? >> hey, good morning, phil. and, you know, that's a great question. it's a huge generalization. there's a lot of oems that have been at this for various points of time. general motors has been at it for over 20 years here with onstar with over a billion different interactions with customers. we've been at it here for awhile. but as things get more connected and we use the cloud more for data exchanges within the vehicle and ultimately autonomous vehicles, this topic around safety, you know, this is a consumer product but it's also, you know, a very, very important piece of how people live and a very important piece of their lives. so these are things that for now are not autonomous and our active safety systems that we put in these cars are ever more sophisticated to help avoid

accidents, help protect during an accident and after an accident. as we move to the next -- as the industry pivots here and we look at a different transportation model, this is top of mind. >> you guys have contracted with a company called hacker 1 which basically it's a security research firm. and they have basically done a bug bounty, if you will, to say to people tell us what problems you find or potential problems you find in general motors vehicles. i know they've had more than 100 people who have submitted potential problems. have you been surprised at the level of sophistication that just the average person has found in terms of when they're poking around trying to find out vulnerabilities within an automobile? >> i don't know. it's a great question. you know, we contract third parties here because what we don't want is sitting around

internally looking at our systems, testing our systems. but there's always, you know, sort of only the paranoid survive here. so we have to get input from what the latest systems are that people have access to to potentially hack one of our cars. i'm not sure surprise is the right word. we're always delighted to find out what those systems are and provide the countermeasures. on a very up-to-date continual basis for our customers. that's the way we treat it. >> you and i have talked about artificial intelligence and how it's rapidly developing within the automotive industry. and last time you and i were together, you said it's coming along much faster than people can appreciate. give us some perspective on how quickly artificial intelligence within vehicles is coming along. >> sure. i think, you know, our purchase of cruise automation here has really accelerated a lot of our rnd work we started on here a few years ago. so that -- a lot of that is

proprietary information so i can't share a lot of that with you. but i can tell you this. if you get systems in a car that take data from the road because of our camera systems we have doing things and radar systems that are doing some of the advanced cruise control features, those are the systems that begin bringing information. but you have to have a basis to learn from. and that's really what we're doing in the automotive sector right now is creating that basis whether it's through light mapping, the cloud, referencing local traffic conditions or the car itself bringing that information to the car. the secret on ai or artificial intelligence in the car is bringing those systems and data together. and it takes a pipeline from the car to the cloud to be able to do that. we can't carry that all around in the car, but we can assimilate that data with the car and bring that result back to really provide the car with something that is able to learn on a continual basis giving that basis of data if that makes

sense. >> it does make sense. and it's a rapidly developing and changing world. mark reuss from general motors joining us this morning from detroit where kayla, they are holding the global automotive cyber security summit today. a lot of people are trying to figure out just how secure are their vehicles and what do we need to see done not only by automakers but also by the technology companies to keep them safe. >> it's the new world we live in, phil. we appreciate you brings us that interview. phil lebeau from chicago. when we come back, pokemon go fans rejoice. the popular game finally launching in the place where it got its start. along with the big sponsorship deal. the details on that up next.

shares of lululemon sprinting past competitors under armour and nike. speaking to us since taking the helm at the athletic apparel maker. >> the people not in it for the right reasons will go away. and the trend of the lifestyle of being athletic and mindful will stay. and that's the market that we lead and that's what we're passionate about. >> you can catch the full

conversation on "squawk on the street" later on this morning. okay. coming up, the dow snapping a nine-day winning streak. mark spellman will join us after the break. take a look at u.s. equity futures on this friday. there you go. yep. stirred it... mm-hmm. drowned it again... mm-hmm. and now just feel if it's cold. yeah. cool.

[camera shutter clicks] [whistling a tune] smokey just gave me a bear hug. i know. i already posted it.

welcome back to "squawk box." here's what's making headlines this morning. check out the shares of skechers, please. not telling you you have to do this. but there they are. quarterly earnings missing forecasts -- >> you should order people to check them out with that kind of a drop. right? >> i guess maybe so. it was down like 15%, wasn't it? >> yeah. >> all right. the shoe maker was hurt by a shift in brazilian taxes and a fire at a warehouse in malaysia. also foreign currency headwinds. they won't have those problems once president trump makes them bring all those factories back here. stanley black & decker raising

its full year forecast as well. separately the company announced -- really. he's a friend of the show. john lundgren is going to retire july 31st to be replaced by current president and coo james laurie. and visa, the dow component, coming in 3 cents above estimate. nike? really? >> they got added together, didn't they? didn't they get added on the same day? >> united health care. really? those are hard. i do no apple is added. it's been down ever since. the credit card issuer announcing a $5 billion share repurchase program. meanwhile, oil prices and mixed earnings on wall street breaking the dow's winning streak. joining us now is mark spellman. good morning. >> good morning. >> all right. tell us what you're watching on this friday morning. >> well, earnings are still

coming in pretty well. i mean, a lot of -- we saw at&t last night generating a lot of free cash flows. stocks had a big move. however, it's, you know, really came in with a nice number yielding 4.5%. we're looking a little topee this week. i think some of the volume was light. we're concentrating on some laggards in the names. rising dividend fund. we're looking for better than market yields. and growth rates in the dividends. >> so i think what people are really chasing is you can see that in the consumer staples in some of the utilities. they're chasing yield. those big chunky yields, we're concentrating on yields that grow at a dramatic amount. one of the names we've discussed with cvs health growing at 16 times earnings. but that dividend is growing 23%

this year. 27% the year before. that's where we think the next leg of the income search is going to come. >> what do you think about the valuations? i think it makes -- in a world of negative interest rates or very low interest rates, it makes a lot of sense people will bid up dividend paying stocks. i think as you're pointing out, some of these sectors are so expensive it's hard to bayou ti -- buy utility trading. >> when you see 22 times earnings for 5% earnings growth but still have foreign exchange currency risk there, that's not -- in the staples underweighted and about equal on utilities because we found some dividend growth stories there. we're looking again for laggards like cvs health where we don't

think there's a lot of interest rate risk at all. they can do very well no matter what the rates are as long as the u.s. consumer is in good shape. >> you don't think the air is about to come out of all of these sort of dividend etfs in a meaningful way? >> no. because we believe lower for longer. if you believe lower for longer, i think that's going to stay the course. in the median term in the out-years, those can't sustain themselves. any historical kind of basis they're overvalued. >> is there a line you're watching yields saying now i may have to be worried? >> i think from a 10-year standpoint on the interest rates the government yields. >> let's say the 10-year yield. >> i think if you start seeing growth in the economy that starts ticking up over 3%, you're going to see the 10-year that has to move higher. in that case the chunky yields are going to be the ones most susceptible. what we're concentrating there is looking for healthy yields

backed up by lots of free cash flow. but that's going to go up 15% year after year. that's where you'll be much more susceptible. >> great to see you. have a good weekend. mark spellman at alpine funds. okay. when we come back, fireworks on the last night of the republican national convention. former new jersey governor christine todd whitman will join us with her reaction. and as we go to break, check out the top speakers on twitter last night. donald trump number one. not surprisingly. his daughter ivanka number two. there's peter thiel and reince priebus number four. of the 21, the earth needed to find a new way to keep up with the data from over 30 billion connected devices.

b. donald trump officially accepting the gop presidential nomination with a fiery speech and a few jabs at hillary clinton ahead of next week's democratic national convention. >> a secretary of state illegally stores her e-mails on a private server, deletes 33,000 of them so the authorities can't see her crime, puts our country at risk, lies about it in every different form, and faces no consequence. i know that corruption has reached a level like never, ever before in our country. >> oh.

we're on now. joining us now, former new jersey governor christine todd whitman and from cleveland, cnbc senior contributor larry kudlow. been softening up the governor for you, larry. she's got nothing after what we were saying off camera. kudlow, you made it, dude. you were on tv last night. i saw you. did you see yourself in the video? >> i just don't know how that happened. must have been the force of my policy recommendations. >> i would normally let the governor start, but since you were there, what did -- did you like the speech? because a lot of people are saying it's dark and not optimistic and not reagan-like. >> no. i thought -- look. i'll just give a quick overview before christine comes on. i thought it was an excellent speech. i have a thought on this. i'm now thinking what mr. trump is doing is he wants to revive america in all ways.

i call him trump the revivalist. we wants to represent the middle class. he wants law and order, better safety, help the cops. and the filled in a lot of things. he rattled off the tax reduction that will help the middle class and business and get cash coming back into the usa. and lower regulations. and then walk through obamacare energy and so forth. there was a lot of that. so i thought it was a good speech. i thought it was an upbeat speech. i might have changed a thing here or there. but i'm not the candidate. his message is i am going to represent you the forgotten middle class and i am going to revive america. that's basic message, pretty powerful stuff. >> i think governor whitman, she's just nodding. i think you totally turned her around. maybe not. >> larry's been working on that for a long time. he knows how futile it is. >> can i just -- >> go ahead, larry.

>> can i just get that in? i helped turn her around and i don't know was it about 25 years ago. >> a long time ago. >> so she and i have a lot in common and she's a great lady. >> listen to him. >> well, i wish i'd heard his policy more in his speech last night. i was looking for it trying to find it. that's what really bothers me so much. i do think it was a dark speech. it was a lot of, you know, the immigrants are running rampant over the borders which is not the case if you look at the numbers. do we need to stem illegal immigrati immigration? absolutely. but are people dying every day because he implied because of illegal immigrants, no. >> you know him personally. >> yes, i do. >> talk about your experience working with him. >> let's say he wasn't my biggest fan by the end of it because i opened up this causeway into atlantic city which gave steve wynn access

into property her had. he was not my biggest fan. >> that's funny. so he loves to win and business is war with him. that was enough for him to -- >> yeah. because it also opened up and made it ya erz to get -- easier access to his marina casino. it didn't matter. it was steve wynn coming in. that's all it took. >> governor, what we talked about off camera was you think people -- you're not a big hillary clinton fan either. >> no, i'm not. >> and like so many, you've heard it's almost binary. you say maybe a third can the could come along. we never tried it. you've got to start somewhere. to me it sounds like -- if it's not a vote for trump, essentially it is a vote for hillary clinton. >> that's what everybody says. depending which side you're on. most of those people break half and half. it depends on who's the losing

candidate you're always going to blame. >> between trump and clinton, you think clinton would be preferable to trump? >> well, at least we know her faults. we can at least know -- >> but that's a half empty viewpoint. >> i know. but that's why the negatives are so high on both these candidates. >> are you voting for her? is that what you're saying? >> no but i could. >> look. i just want to say to everybody there including my friend christine, i have no doubt that governor whitman is going to make the right vote. because she had a little revivalism in herself. christine, we're going to have to sit down and have a cup of coffee and maybe talk. i believe you're correct in one way. i think he has to flush out the economic growth, the tax cuts, and the regulatory rollback. i agree with that. that's coming. pretty sure there'll be a speech at the detroit economics club to give you the detail you want. but, you know, step back for a minute. everybody was saying it was a

dark speech. there were some dark moments in his speech. maybe the ending could have been a little more soaring. but basically he's saying i'm an outsider, we're going to take down this club in washington that has not helped anybody. the country's in lousy shape. and we, trump and pence, can turn this around. and i think he's got to convince americans. maybe he has to convince the governor that he can turn this around. and i'm looking forward to a lot of very, very serious speeches in the weeks ahead during this campaign. >> larry, do you think that what he said last night, some of the rhetoric within the speech goes beyond his core constituency? that's the main point. that's really all that matters at this point. he's going to have the people who already like him eating out of his hand. it's the others that he needs to convince. was his speech on the right message and the right tone to

reach those who don't know him that well, who don't necessarily already agree with his policy or his platform? >> well, i think those are good points, andrew. and, look, couple things on this. i was very impressed, for example, with mr. trump's handling of gay-related issue. he's basically saying equal rights for anybody. i can't think of a republican candidate who's done that in the last hundred years. second, i thought ivana's speech was very good. not a pandering speech. she's just saying, look, we're going to have opportunities as per mr. trump's business career. women get treated equally. equal pay, equal home leave, equal child care benefits. i thought that was extremely effective. and finally, joe, one of these constituencies -- or andrew, i'm sorry. is democrats. democrats. i believe trump's energy plan, his tax plan, his help for new business start-ups, that is going to appeal to what i call

the hard hats. trump wants to build pipelines across the country. i think that's just meat and potatoes for out of work hard hats democrats. we used to call them reagan democrats. hillary clinton doesn't speak to them. donald trump does. >> we have to go, but governor, any final -- you just want to give up and say, okay, fine? or you're -- >> no. and larry just hit on a point that also really bothers me. pollution is causing -- pollution kills more people than car accidents and yet we are very concerned about safety on our roads and bridges. but death from pollution and what we're talking about when we're -- >> you talking about water, particulate, sulfur dioxide. you're not talking about co2, i think. >> i'm talking about airborne pollution. there were 91,000 people who died of airborne related

diseases. that's almost three times as many that died on our roads. that's a real thing when you're talking about bringing back coal, you're going to just add to that. that's a real concern. >> all right. governor, thanks. larry, you're famous. you're on tv. wait a second. you were just on tv. that's confusing. people say that. i sawon john al ver. you were on tv. i was like, three hours -- >> we should also disclose to advisers larry kudlow is an adviser to the trump campaign. coming up we'll talk expectations for the social network's earnings report next week. "squawk box" is back after this.

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welcome back to "squawk box." among the top corporate stories roger ailes resigning in the wake of a sexual harassment lawsuit. cnbc's julia boorstin joins us with a look at what's next for the cable news network. >> 21st century fox announcing rupert murdoch will take the role of chairman and acting ceo of fox news channel and fox business network. 85-year-old murdoch is executive chairman of 21st century fox, and passed the reigns last year to his sons james and lackland

who is chairman of the giant. he will only be acting ceo and sources tell me only as long as it takes for the company to find a suitable replacement. two potential internal candidates who murdoch name checked in the press release were bill shine and jay wallace. both long-time fox employees. now i'm told fox is more likely to hire internally than externally, but two other names that have been thrown out as potential successor "new york post" publisher jesse angelo, the post owned by fox's sister company news corp and cbs president david rhodes at fox until 2008. murdoch stressing his interest in editorial continuity saying in yesterday's release he is personally committed to ensure fox news remains a distinctive and powerful voice. >> thanks so much, julia boorstin live in l.a. ready or not a flood of earnings reports about to hit the market next week. including facebook and apple. jon fortt joins us with a look at those expectations with.

>> hey, scott. we've got not only facebook and apple but amazon. starting with apple, of course, all eyes on iphone sales for that company, how close or perhaps even above 40 million shipments do we get. what happens with inventories. that's a big question there. when it comes to facebook, i think folks are going to be on video streaming video, the engagement there, and also instagram and how quickly they're monetizing instagram. we might see questions about facebook messenger, that having just crossed that $1 billion monthly active user mark. that's the point where facebook often talks about monetizing services and there may be some more push for that. then you've got amazon, we want to see somewhere around 29.5 billion you on the top line. questions about the cloud, momentum there. they turned in about 2.6 billion in revenue last quarter and now really it's a horse race between microsoft and amazon, seeing who's growing the cloud faster.

what we've seen thus far, some interesting mixed messages out of tech earnings season on the one hand. large players not taking the easy way out and giving cautious guidance because of brexit and other macro concerns. microsoft, showed that the cloud continues to shine for them. qualcomm showed that the protectionist policies in china will yield sometimes to innovation. they were able to get some of those licensing payments in that had eluded them for the past two quarters. vm wear and f 5 showed the enterprise is still buying when it comes to being productive, mobile and security. there's some downside too. we saw it from intel and others, but overall good messages. >> given where the stocks, amazon and facebook specifically, have gone, the bar is pretty high at this point. >> bgi this morning downgraded facebook in part because the stock, you know, can you maintain this level of success forever?

>> yeah. i mean you could have said that same thing about even microsoft. granted it was sort of lower than it started the year, but where else do you put your money is a question. given that people are fleeing some other foreign markets at this point, if you see a growth story that continues to be good, amazon maybe it continues to go higher. >> amazon all-time high, recently ebay yesterday hit an all-time high, microsoft did well, as you said qualcomm, tech has been a place to be of late in the market. >> these are stocks that had endured a lot of pessimism lately. qualcomm, they were getting hit with issue after issue, a lot of people said china, it's over for them. 5g, who knows if they can succeed. those licensees will never pay up. well they got in hundreds of millions of dollars worth of licensing payment and they're expecting more, have a path to get those payments. their snap dragon is doing well. >> brexit happened with a week left in the quarter. do they feel like they're out of the woods entirely or something

that wasn't relevant this quarter? >> well, i mean it sounds like from the tech leaders i talked to, something that wasn't relevant this quarter and they're not sure how it is going to be relevant even in the median term. a wait and see perspective, does it slow down, consumer sentiment does that start trickling through to different sectors of the economy and then showing up. it's just too soon to say. >> you need at least six degrees of separation to find something there. >> it could be good in a way, though. >> that's what i mean. >> talking to is satya nadella about how you plan where to put your data centers for cloud and in a more complicated world that's fracturing they potentially need more data centers. >> nice name drop. >> yeah, it was. >> about peter thiel and there was a piece in "the new york times" about how he's going to have, you know, some people are not going to be very nice to him from here on out and so i wonder if that -- he doesn't need them necessarily. >> if you have enough money in silicon valley you're not worried about people being nice

to you. >> it's unfortunate. the guy is allowed to be a libertarian and in silicon valley. andreessen is not exactly a communist either. >> that's a delicate way of putting it. >> that's me. delicate. >> mr. delicate. >> yeah. >> new nickname. >> not your typical silicon valley communist that loves capitalism. but don't they over there too. real is touching a ray. amazing is moving like one. real is making new friends.

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markets,. today, what's brewing at starbucks. howard schultz. will investors get a jolt. "squawk on the street" 9:00 a.m. eastern. >> thanks to our guest host this morning, jason treanor, chief investment strategist at stra teges you. not going to let you say anything other than you said dividend stocks people will buy those. i don't see why that doesn't translate to just u.s. stocks. dividends are nice at 0, but money comes in here. >> i think so. again it goes back to there's no alternative. >> 2% dividend yield is great as long as the stock doesn't fall at 20%. >> that's not going to happen until inflation becomes a problem. going back to our friend from alpine funds a lot is driven by inflation and long-term interest rates. if they say low they can win. >> farewell to our executive producer, hesitate to do this sandy, but he hugged me yesterday anyway when ap drew was hugging me, i don't like sappy good-byes, but there he is there. he's -- it's like -- >> sanford and son.

>> moving to "power lunch" in the afternoon. sandy. >> he and his closet of fleece vests. >> wish him well. he'll come calling -- probably come crawling back. good luck sandy and thank you, too, guys for being here. have a good week. join us on monday, "squawk on the street" is next. ♪ good morning and welcome to "squawk on the street." david faber and simon hobs live from the new york stock excha e exchange. a look at futures as we get started here. we are set up it would appear for a bit of a higher open. european markets how are they faring? let's show you, shall we, as you can see. a mixed bag with germany's dax down but the ftse having a reasonably good day. the 10-year yield we eclipsed