>> good morning everybody. welcome to "squawk box" right here on cnbc. i'm becky along with andrew or is ksocceren and scott. down to about their three-week lows. the dow was down for a seventh day in a row and that is the longest losing streak in a year, but to keep things in perspective, it was down 1.4% over that period of time. that's the smallest decline in a losing streak. the red arrows are modest declines. down less than 13 points. s&p down by dtwo. >> the nikkei was down 1.8% and the hang sang was down 1.25. shanghai managed to close up.25%.

in europe the early trade there you're going to see that things are a little bit mixed. the dax is flat. the cac in france is down by abo about.30%. markets in italy and spain are slightly higher. let's take a look at crude. this is the big one. the one we're watching closely. wti up slightly this morning. still below $40 a barrel. if we do have hope for earnings to improve in the second half of the year, a lot of that was riding on higher oil prices. we'll see what happens with this, but, again, wti trading at 39.83. >> the economic agenda july adp employment report is out. forecast call for increase of 178,000 in private payrolls. at 10:00 a.m. we get the july services index. after the close we'll hear from 21 century fox, scare square,

and tesla. overnight, bit coins have been stolen from an exchange platform. trading on the digital currency exchange was suspended after the breach was discovered. that translates to 77 million dollars at last week's average price. the price of bit coin dropped nearly 20% bringing down the value of the stolen bit coins to about $65 million. a shakeup at the dnc. three top officials are stepping down following the e-mail hack that revealed favoritism towards hillary clinton. last week debbie wasserman shultz right side. now ceo and chief financial officer are spelling down. voluntary, but all three included on one of the most damaging e-mails in the hack. one making an issue of bernie sanders ath yichl.

>> rnc breaking overnight. ceo meg whitman now throwing her support behind hillary clinton. of course she ran for governor of republican back if 2010. she wrote to vote republican out of party loyalty alone would be to endorse a canaa candidacy of raise and anger. demagoguery undermined the fabric. >> she was a speaker for chris chris. very put off when he went ahead and endorsed donald trump. she spoke harshly about that at the time too. separately a little commotion going on within the party. rnc chairman reince priebus is

apparent appare apparently. that's according to a new report coming from cnbc news that says priebus called several trump staffers to express extreme displeasure about comments about ryan to the post yesterday. >> look, some of it was tongue in cheek. some of it was trolling. he basically said the same thing paul ryan said about him saying he's not quite ready to endorse him. we got glimmers of this when donald trump tweeted the other day some nice comments about paul ryan's get terror in tcomp up. >> we're only a week away. >> yes. >> we never asked for his endorsement. we're fine without him. >> not a surprise given what ryan did, you know, a month ago or whatever. >> nothing is a surprise anymore. >> not a surprise at all. >> i can understand reince

priebus anger. >> trump doesn't hold glujs at all. >> if you're paul ryan at this point. >> reince priebus is in a difficult position because his whole point was to bring the party together. he thought he did that with the exception of ted cruz. here with are a week and a half later with this sort of eruption. >> like i said, i don't think any of it is surprising. if paul ryan came out initially and said i'm throwing all my sport support by donald trump. we wouldn't be having this conversation today. he mentioned yesterday loyalty is very important to him. we knew that. >> very true. he holds grudges for four years or eight. >> in addition to trump's uneasy relationships with republicans, he's having issues with those inside his own campaign. john harwood speaking to a long time ally, the ally saying

manafort has lost control over trump and no loenger challenging him specifically. just this morning, donald trump tweeting there is great unity in my campaign, perhaps greater than ever before. i want to thank everybody for your tremendous support. we're going to be hearing from john harwood to get detail on that report inside that campaign. in the meantime in the business world, let's tell you about some stocks to watch today. qorvo first quarter results top forecast in the guidance beating estimates however the company which supplies chips for the iphone reported margins that fell short of expectations. you can check that out with the stock today. it is down 8% in the premarket. fitbit second quarter profit fell. it was down on cost. those products which are called the alta and the blaze accounted for more than half their sales.

aig second quarter profit tops forecast. the insurer is also expanding the stock buy back program. aig ceo will be on skauk on the street. that is a first on cnbc interview. it's coming p at 9:45 eastern time. the dow logging the seventh straight day of losses. longest losing streak in about a year. here is the atlanta fed president talking a possibility of rate hikes yesterday. >> at this point, i don't rule out a rate increase at the next meeting or later in the year. we just have to wait and see how the data come in. the situation is maybe a little bit ambiguous, but i think i can imagine conditions in which we could have a rate hike. >> all right. joining us now, steve friedman,

investment strategist, he helps oversee $1 trillion of assets. on the economy, chief economist. steves, welcome. kansas city good to see you. steve freedman first. the dow seven day losing streak. it's the first time in the year. are we heading for some sort of dramatic august correction? >> m i don't think so. this is a pretty modest consolidation after a pretty sharp bounce post-brexit. we remain constructive on the market taking a six-month view ahead. you know, there's really based on the earnings picture that's starting to improve relative to the first quarter which is the terms of growth. we're pretty positive to seeing the revenues for the first time are positive growth since the end of 2014. and we this that's going to be enough to body the markets a bit higher from here. >> it's interesting yes we've

been down seven tragts days, but the dough dow itself is down 1.5%. they haven't been huge moves, just an accumulative sort of thing having people feeling uneasy. >> just look at the chart. it doesn't look like much. doesn't look like a turning point in the market. you said a natural thing for markets to take a bit of a breather. >> are we heading towards a recession. >> no. >> we're not heading towards a resgs at all. that's a completely overplayed story. we live in a world of excess supply. credit quality determines whether or not you will go into a downturn. we're in an environment where balance sheets are very healthy. corporate balance sheets have add add lift leverage. household balance sheets have shortened duration a bit. debt burdens are low across the sector. ba

bank fwlans sheets are healthy. you're in an environment now we're basically bullet proof to shock. the big problem we run is if the federal reserve does something stupid. i continue to hear coming out about the fact they continue to want to raise rates in a world of excess supply i sit back and ask myself why would you do that? it makes no sense. >> you don't think they are going to go in september. >> i think they could. it's not my call. i think it would be the wrong thing to do. >> they've made some pretty clear messages though it would take substantial improvement in the economy and by the way they are watching the dollar and seeing what happens around the world. to me i read into this and i think i would be shocked if they actually raised rates. >> keep in mind people were actually shocked the boj didn't ease rates so a lot is happening in terms of central banks people's perception of what they do is not what they follow

through. >> we do have the election coming up. that does play into this. it has to. >> again, whoever gets in is going to be happy with whatever the fed does. i mean, when you're looking at the situation, if it works out to donald trump's favor and he gets in. he'll be fine. if it works out to hillary clinton's favor and she gets in. she'll be fine. i don't think the election is really the critical trigger at this particular juncture. it's not just whether or not they signal and it do it in september. the currency is the critical issue for the economy right now. in a world of excess supply, the biggest risk is deflation. we have the largest debt in the world. you want to know why markets can't get ahead of themselves because that's a big problem. if you get into debt deflation and you're the biggest net debtor, you're going to be screwed from an economic perspective. think of us as greece within europe. do you want to be in that

position. do you want to be along stocks in that environment or along debt. >> what happens in a situation and some say maybe it's happening now where sort of markets start to thumb their nose at central bankers or becomes a larger issue of losing control and maybe some of the early stages of that are happening in japan right now where they've tried to keep yields negative, but actually yields have been rising in recent days and some worry that's going to have some sort of rolling impact on treasury markets around the globe. >> you're 100% correct that's the biggest problem they face. you reap what you sew. if central bankers are going contrary to what the data is telling markets how they should be behaving then you're running the risk of making yourself irrelevant. that's unfortunately some of the rns. the ris fall policies in japan is the reason the debt is starting to move up in the yield environment. we expect it. everyone knows we're going to go

towards fiscal policy in some shape or form, but markets will give fiscal policy some credibility where they are starting to back away from giving monetary policy some credibility because it is a new lever that's being used. then we'll wait and see whether it functions the way we think it functions and if it doesn't, we have to revisit that issue as well. >> so from a market standpoint, if the fed goes in september, what do the stocks do. >> i think it will be premature. >> let's just say ta do. the market seems completely complacent to the possibility of that happening. i think as of yesterday, the fed funds futures were 14% prediction of a september move. so the market will be caught offsides. >> i think it would be a jolt for the market. it wouldn't be a positive. even just looking at the gdp prints for q2 and basically the fact we haven't seen much growth

and averaging 1% for three quarters, it would be very surprising for the feds to go ahead without at least one more positive gdp print which is what i think they'll end up doing. >> we'll see you soon. let's talk a little bio biogen. that's the other news of the morning. the company is in a possible takeover. target by merck and allergan. unlikely to pursue a deal. the stock down in premarket trading. joining us now to talk is jeff bourjos. good morning to you. my sources not only -- i don't think biogen wants to do this at all. i thinking this suggests they were further down the line they

were are. >> look, this company sort of discretely put a for sale sign on itself. 75% of the top management team has turned over. a lot of challenges in their future. so just about every way you could, they've sort of said discretely if you want to buy us, now is the time. otherwise we're going to go back into operating. >> the folks i talked to yesterday in and around the hoop on this don't think the buy joe general thi bio biogen thought they please come buy us. yes some people saw the headline and thought let's take advantage of this moment, but you think they're looking for a higher price? >> this is the very early stages of what would be a huge transacti transaction. second largest transaction if it

happened in the biogen industry. this is exactly what we expected going back six or nine months when they first announced the spin. everybody scratched the head and saying why are you spinning off the fastest growing part of your portfolio, why are you concentrating and slowing down your growth profile. now you see the transition and challenges they're having with the cash flow because of the expenses with the alzheimer's program. this needs to be in the hands of someone else. >> this is a market cap of $72 billion. the premium is already built until in that or it potentially go for higher. >> the typical buyer large cap is going to go for 20 to 30 percent above the preprice. so realistically this could go for 380 to 390 so it's had a nice move, but probably be another 15% upside. i talked to people who have been

associated with this company long-term investors, they'd be looking for something in that higher range. >> that's a huge price tag. >> yes. >> allergan whont make a play for this, especially if it had to be in hostile situation. between merck and any other player out there, who would you like to see buy this business. >> the criteria for who makes sense here, first of all, not a competitive business. secondly you want to be involved in the alzheimer's opportunity long-term. you have the size, you have the balance sheet. you have the credit rating to be able to support a transaction like this. it's going to move to the megacompany. all of these guys are going to take a look and fit where they can. >> there's not one familipartic

one you say this makes sense or someone you think can afford to pay more. s strategically. >> what reseeing behind the scenes is out of u.s. to foreign ownership because of the tax situation to probably no var isz, perhaps on the u.s. side. pfizer would be the most likely candidate. >> jeff, thanks for coming in this morning. >> when we come back, they say invitation is the sin serest form of flattery. buzz feeds trek terror social media is going to help us make sense of the move and whether with copying like this will really work for them. talk all that when "squawk box" comes back. you're here to b.

welcome back to "squawk box" everybody. the nfl is expanding the presence on media. signing a partnership with snapchat. first proleague to have a snapchat discover page. also have a live story for all 256 regular season games on the schedule plus the playoffs.

these will most likely include game footage from fans in the stands and behind the scene video from footage on the sidelines. and that brings us to our next time, snapchat is now facing a new copy cat threat. instagram adding stories to the flat form. this is a new feature where photos and videos expire after 24 hours. just a brief timeline. people throw things up more quickly than they might otherwise. taking a page from snap shat play book. that's where the stories also disappear after 24 hours. joining me now is rachel christianson. let's break this down. a lot of our viewers have no idea what we're talking about with the stories, snapchat versus instagram. this is basically them copies exactly what snapchat has been doing and doing so successfully to the point it's got teens

really on the rise with snapchat versus instagram. >> it's strange their completely blatant about it. this time instagram has said, yes, snapchat had a good idea and we're taking it and now it's aur thing. it's not all of snapchat's platform. the thing people like the most about snapchat is the front facing camera to imitate faces. >> and, again, the issue with teens has been a very real one, for the first time recently, teens said they would rather be on snapchat than on instagram and that's a pretty quick turnaround from where we were six months ago. >> you'll keep saying that. they want a space they can be awa away from their parents. >> it's a safe haven because the parents aren't there yet. >> yes. >> so how much about the story

disappearing and houchl the parents aren't there yet. >> i think it's because the parents aren't there yet. you can screen shot it tells you when people are streen shotting you. >> when you say that people are actually doing this, you know who has been looking at what. >> yes, youch can see every person who looks at your stuff and they can save it. >> i thought that was part of the new instagram. you would be able to see on the stories you post who is taking a look at them. >> you can see who has taken a look at them, but not who has screen shotted them. >> so beyond this, do you think instagram stepping into this and kind of copy catting, instagram has a much bigger audience than snap at this point. does it work? >> time will tell. a lot of people have tried to rip off snapchat before, facebook especially. this is facebook doing it again through instagram. i've seen people using it already. it was giving you a perfect cur rated life and people don't

really love that. they want to show the raw side too. you can show your behind the saeps le scening lead ugh. >> people worry about posting too frequently. you want to use it more frequently. not all this pressure to get the likes you get from instagram. kids make up fake instagrams to like their real instagrams. i didn't know that goes on. >> i cannot imagine the pressure that goes on for popularity. >> it's brilliant for teenagers and they're learning quickly. >> snapchat is a hard platform to learn. i've sort of figured it out at this point. >> even buzz feed most people don't. >> that's a gating factor to great success, but long-term do you think from an interface sper

speculative it has to change. >> i think people becoming more and more comfortable with video technology. they love using it and you'll sink or swim. you'll understand and start using it more. >> all things social media, where is twitter in all of this. >> if it wasn't for having a jienlt presidential candidate build up his background on twitter and reality tv, i would have a different answer, but twitter is giving everyone a run for their money. that's why weather the adults go to play. >> so twitter owes donald trump for any success they might have or any less failure they might have right now. >> they're probably very happy about donald trump. >> it's very interesting. >> if you had to pick a winner between instagram and snapchat other the next year, who would it be. >> snapchat has a pretty brilliant want to get people to pay money and it will be

interesting to see how instagram tries to catch up. >> rachel, thank you for coming in today. >> yes, thank you. >> coming up a travel warning over the zika warning in miami. how is the state of florida responding. governor rick scott joining us next on zika and the effect of tum tourism. yesterday's winners and losers. back in just a moment.

welcome back to "squawk box" right here on cnbc first business worldwide. take a look at u.s. techty futures this hour. dow off about 17 points down. sheryl mccarthy five looks to open off as well. the nasdaq looking to open down 7 points. take a look at price of crude because so goes crude, may be the market as well. we don't know. wti under $40 a barrel. 39.88. >> tlrl 15 cases of lowbally transmitted zika cases that have been confirmed in florida. these are the first cases of local transmission in the continental united states. as a result the cdc has issued a

travel warning, the first of its kind in the united states. it's urging pregnant women and the partners to avoid travel to the win wood area of mooinl. this is a one square mile area. promising over 22 million dollars to control the spread of zika and more if needed. he joins us right now and thank you for being here today. >> good morning. you're right. we have a one-mile square radius north of downtown miami we still have the risk of locally transmitted zika. we are doing continued spraying. swe have the department health, the cdc, state department health all to make sure we contain this. florida is good about mosquito born viruses. we controlled dengue fever and we'll figure out how to control this. we're open for business. >> let me ask you about that. you say everything is being put

to work right now. we do realize that. we have cdc joining us and talk a little more about that. is it fair to say you have your arms around this outbreak or is it too son to say. >> absolutely. we started this back in february when we had our first travel related case. look, we have -- we're basically the travel for puerto rico, latin america and so a lot of people are going to come through our state. we've been putting resources on the ground. we've allocated state resources, $26.2 million. if you're pregnant in that impacted area, you can get a free test to see if you have zika. we're doing to start doing that across the state of florida. we're going to make everybody feel comfortable we're prepared just like we prepare for hurricanes. we've been able to deal with other diseases. we'll deal with this one. >> when you mentioned that this is just the travel advisory has only gone into affect in the

last few days, but for anyone who is pregnant in the united states this is a message they've been hearing quite a while from their doctors. my doctor warned me in february not to travel to florida. we cancelled the trip as a result. my doctors were being extremely cautious at the time. think about it. when i did, continental didn't even require me to send a doctor's note in because they had heard from so many people saying the same thing. what kind of impact has zika already had on the state of florida and what's been the impact since the cdc put out the travel alert earlier this week. >> we have our numbers for the first quarter and for five years in a quarter we've had record numbers. 30 million tourists for the first quarter. i was at disney world last weekend and it was absolutely packed. we're an outdoor state. we have 15 cases out of 20.3

million people. we've probably had 60 million tourists this year. this is a a state that takes care of people and keep people informed. we're going to tell you what's going on ask p make sure we have all the resources we need. it's frustrating the government has not been a good partner, but the state will put up the resource sgls what do you need from the federal government right now. >> congress went in recess. have not worked together to help us. they should be helping us with paying for things like mosquito spray, testing, things like that. this is not just a florida issue. this is an international issue. we're just the tip of the spear. they should be our partner and they haven't been our parking lotter in partner so far. >> i hear your frustration and i agree with you. when you say the state is open for business, it reminds me of jaws and the mayor there.

you've been testing since july 7 i believe around this area and it's only been weeks later we find that yes, there have been active transmission cases that happened. people might wonder, are there other local area where your testing for transmission now and what have you found. >> we've tested over 20,000 mosquitos statewide and still not found one mosquito in the state that has zika. so we're testing. we're keeping people informed. we tell people, don't have any standing water around your house. that way you won't have new mosquitos born. make sure you wear repellant. wear longer sleeves and long pants. so just do the normal precautions, but put in perspective, we have 15 cases today out of 20 million people and one in 65 million tourists and one square mile we're working hard to make sure it doesn't continue. >> in terms of what you would like to see from the governor or

from the government, from the federal government, we did hear from the cdc saying we need the resources. we need them right now. have you gotten any response from leaders in washington as a result of the turn that this has take then week? >> no. the cdc we asked them to send out emergency response team which would just help few individuals and help with a different eyes to look at mosquito control and things like that which i'm very appreciative of that. a couple of weeks ago the president called me and said they would send $5.6 million down to help us. congress went on recess for the summer. the president and congress have not worked together. i have to work with my legislatu legislature. we have to make sure we have the funding to do this. i have billions of dollars in reserves. whatever we need to spend in our state i'm going to keep everybody safe. >> also mentioned yesterday there is some concern these

mosquitos are maybe resistant to the types of sprays we've been using in this point. the florida keys the mosquitos there have built up a resistance and the latest i'm hearing is there's going to be air spraying once a week for the next four weeks. how confident do you feel in the spray's ability at this point to actually handle the problem. >> here's a way to put it in perspective. we've had the risk of outbreaks of dengue fever and we've been able to control the local transaction mission of that. we've been able to do this in the past. we'll do that with this. we'll bring in more resources. we've got great mosquito boards around the state. very good health departments around the state and they work well together. since february i've been having meetings all around the state to make sure they're coordinating activities and they are. we'll deal with this like we deal with other issues. we're primaried and we'll deal with it.

it's a one mile square radius. we have a total of 15 cases. look at that compared to what's happening in places like puerto rico and brazil. we are working hard together and it's working here. >> well, governor, we want to thank you for your time thchlt is a busy time for you. we appreciate you getting out there and telling us about this and we would love to have you back to talk more about it. >> thanks becky, have a great. >> coming up, uber hitting a speed bump. another country threatening to ban the service. as we go to break, quick check of what's happening in european markets. it's a mixed picture. jermd germany is flat. not much movement in france. slightly negative as well.

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welcome back to "squawk box" this morning. it's time now for today's executive edge stories. uber running into trouble in taiwan. the country's investment company says they want the ride share service to exit the market. misrepresenting itself as an internet based it platform

rather than transportation. it wants to work with the government there. uber entered the country back in 2013 sparking protest by local taxi drivers. this is a debate that's been ongoing all over the world. toyota is delaying the launch of the plug in hybrid. the auto maker isn't giving a reason for the delay. spokesman said they would produce a production of the prime, but output would pick up on demand. sales of the fourth generation plea yus have been sluggish. >> i guess that would make sense. gas prices are extraordinarily low. you would probably have fewer priuses sold. >> pav loan yan response. people immediately go and look for bigger and bigger automobiles. if you have children at home, you may want to turn down the valium right now.

this is not something i want my own kids to hear. it turns out flossing play be overrated. the effectiveness of flossing has never been researched. dates back to 1979, but was reve dietary guidelines without any notice. that does not mean flossing isn't beneficial. it just means it's a widely recommended practice that hasn't been scientifically proven. again, your kids don't need any dishlg reason not to floss. if you think about it -- i go to the dentist, i have an appointment today for my cleaning. when they tell you need to floss better, you tell them, no. >> every time they tell me that, by the way. every time. >> do not put your mouth at risk for this. >> look, somebody yesterday compared it to the idea of having a house and not painting two sides of it. >> of course you have to. >> more quickly and prone to

cavities. do not stop flossing based on any of this. the flosses that like the that come on the thing. >> so you can pick them. >> i do that for the kids because it's years. >> i'm just a big kid. >> that we knew. >> checking in with choice hotels. talk about the zika affect and gas prices and summer travel. all that and more in just a moment. & in a world held back by compromise, businesses need the agility to do one thing & another. only at&t has the network, people, and partners to help companies be... local & global. open & secure.

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welcome back to "squawk box" this morning. stocks to watch, a first quarter profit by higher down loads of video games. second quarter revenue came in slightly below forecast. by the way, on the down loads, that's a big deal. the risk to down loads could be the turning point. etsy reporting a wider currency loss: the company raising full year sales outlook and hansz brands second quarter results missing estimates on a drop in profit for drop in underwear and

aboutive wearing. company cutting full year outlook. revenue growing 10%, but falling short of analyst estimates delivering a beat on the bottom line. key metric revenue per available room. here to discuss the results and the u.s. hotel industry in the summer of low gas prices is choice hotel's ceo steve joyce. welcome. >> thanks for having me. >> what drove the quarter for you guys? >> we're having a big summer. so gas prices are low. 72% of the people that we surveyed said they're going to be on the road. the airlines situation and the capacity issues and the general hassle of going through airline has put more people on the road which is good for us because we got lots of hotels but we also have the destinations. >> are the majority of your hotels in the u.s.? >> yeah. we've got about 1400 primarily

in europe and australia. >> we were talking before you came on. you're about to embark on a business trip over to europe. are you thinking about terror threats and what that could mean to your business in places like europe? 1400 properties and a good portion of those in europe and the impact? >> obviously it's a consideration. but if you look at the history of places that have experienced terrorism, unfortunately we're getting used to it. something happens, sure there's an immediate impact. then people get back to working and living and traveling. so our view is we want to make sure our hotels are as safe as we can make them. we love europe as an opportunity. we just signed several big deal there is. we're doing deals in turkey to your point. we just signed a big deal for uae and saudi arabia including a -- we think -- 5,000 room comfort at mecca. >> what is your big eest market outside the u.s.? >> it would be europe. we signed several deals. one for hungary, germany, and

austr austria. which is probably going to be 45 deals. we brought a boutique selection recently to the uk and france. europe is our major target. we see it as a big opportunity and our momentum is picking up a lot. >> what about the increased activity with terrorism in europe? has that had any impact on travel at this point? >> we have not seen any long-term impact. obviously when there's something that happens like in france, you get an immediate impact. but it starts lessening more quickly than you think. >> anything in turkey and istanb istanbul? >> we do. it's a strong market. with the unrest, we're concerned about what that means for travel there, but we've got great hotels with great owners. so far doing well. >> and business has held snup. >> business has held up. >> some of them just opened. it's a strong performance. >> how are you feeling about the economy in general? >> well, until we got the last estimate, i was feeling better. here's the interesting thing.

the hotel business because of low supply growth has done incredibly well without any support from gdp. now, the fact that we've still got a workforce that's still under 63% employed is a big opportunity for us. because a lot of those folks are our customers. if they get jobs, they're going to start traveling again. so we would like obviously to see a pickup towards the end of the year. we're having a good year. i think we're going to have it with or without any support from the gdp. if we get support from that, i think we'll have a really strong year. >> you have pricing power. the hotels are getting full. last tuesday we were sold out across the brand. >> wow. >> when you do that, that's when the price point comes. >> on a tuesday. >> so we're still the value play for most consumers because we provide free wi-fi, free parking, free breakfast for the most part. and so when people think about staying and they're cautious about their money which is just

about everybody these days, they think choice. >> so are you more a consumer brand or the business traveler matters a lot to you? >> we're two-thirds leisure. however, camry and ascend which is our boutique and upscale brand, those are aimed much more at business travelers. we're seeing new travelers coming in. >> the consumer is in great shape. that's what we take out of everything. consumers are spending. they look they may be getting ready to pay raises in some areas depending which surveys you watch. but the areas that we've seen have real trouble with the stock market have been areas that have maybe over extended a bit. if you look at airlines. their capacity got a little bigger. that's why they've been under pressure. if you look at new car sales, new car sales have been phenomenal. the numbers are still coming in incredibly sharply. but the american auto producers have had to offer a lot of incentives. is the hotel industry anywhere

near running into capacity concerns that would overtake even strong demand? >> that's the great answer. generally no. because supply growth is still under historic levels and has been for six or seven years. and so the capacity issue -- now, individual markets, some have got more -- >> which ones? >> new york's one. you've got accommodation of slowdown because the brits aren't coming as well as a number of new hotels being delivered. but for choice, because we don't have much product here, we have 9 million people that call us every year saying do we have rooms in new york? we have 1500 rooms in new york. we're not worried about filling them. but the issue for us is in a softer market, the question would be rate. >> you said you're two-thirds consumer driven in business, what impact would you see from airbnb on your business? >> almost none. we like the idea so much, we launched a business to be in it.

so we're doing vacation rental by choice. it is a brand new business. we're in about nine markets. a lot of places people want to go. and we believe it's a very strong opportunity for the company, but also for our consumers. >> admission that this is a copycat of airbnb. >> i wish we thought of it in the first place. there's a key difference. we're working through rental management companies, not the individual owner because i'm worried about service delivery. >> you think there's a network effect though? in the same way that uber either has a monopoly in china or not that ultimately airbnb has to meet -- that there's an opportunity for others to be in the space? >> i think there's a place for airb airbnb. if you look where it impacts it, it's more on the upper upscale and when there's events. when the pope came, philadelphia got a 39% increase in inventory. when you have a dense market with a lot of demand for the product, that's when you see it expand. >> great to see you. thanks for coming in.

when we come back, an earnings alert for you. ♪ [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models.

the dow on a seven-day losing streak. but today's adp employment report could be a game changer. we'll talk markets, earnings, and a possible deal in the pharmaceutical space straight ahead. trump back in the hot seat. party leaders feeling very uncomfortable. meanwhile hillary clinton gets the backing of a high profile business leader. is this the end of the disc? topping the streets forecast thanks to digital downloads of games. it's a sign that publishers

could be moving away from physical discs. a look how downloads could be a game changer for the industry. 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 andrew ross sorkin, along with becky quick. scott wapner hanging out with us today in for joe. let's take a look at the futures. a little over two points down. and the nasdaq looking to open down almost eight points. we're a little over an hour away from the adp monthly snapshot of employment. looking for addition of 178,000 jobs for july. after 172,000 private sector jobs added in june. a widely awaited quarterly

report expected from tesla. fiat chrysler shares jumping this morning. it declined comments they were in talks to buy the autoparts unit. shares of biogen spiking yesterday on rumors of a megadeal with drug titans allergan and merck. deal or no deal the interest in the biotech company shows growth. barbara ryan is joining us. welcome this morning. >> morning. thanks for having me. >> andrew's also said his reporting shows this is likely not going to happen or at least in the current ways that have been discussed in various news reports. what do you think? >> i do feel there's skepticism about this. maybe a second on context.

obviously biogen has performed extremely well. and as you mentioned, large pharma companies are looking to enhance their growth. as they get bigger, even if their pipelines are improving in terms of their productivity which has been the case, it's still tough to move the needle. merck has expressed in doing deals. allergan as you know, the merger $150 billion merger with pfizer was scuttled by the government. and, you know, adverse reactions. and allergan just sold their generics business for $40 billion. i think the market is looking for allergan to be inquisitive to accelerate their growth. biogen has been interested with their ms drug in 2013 and has also announced that their ceo of six years is stepping down. so they don't have a new leader in place. >> does it make sense to you --

does a merck/biogen deal make sense to you on the surface? forget the reporting around it. if that was to happen, is that a good deal? >> well, i think, you know, there's opportunity. it is a company that is growing attractively. i think there are a lot of synergies that could be placed given both companies in that. then the other piece which we didn't talk about is biogen's efforts in alzheimer's disease. merck has a big program in alzheimer's disease. that is the holy grail although everything has been unsuccessful. allergan sells a product called nomenda which is modestly symptomatic relief. but that is something that would really have to have some contingent value written into the deal. because the opportunity is so large but the risk is equally large. it could be zero and it could be something very, very traumatic.

so i think there's probably a lot of speculation because of the context that i just talked about. so everybody lines up as being sort of in the market potentially for strategic transactions. from terms of new products, there's questions as to the patents over time. i would agree with andrew's comments. this is far from a done deal. i think we're already seeing press reports to that effect this morning. >> yeah. barbara, thanks. good to talk to you as always. >> thank you. have a great day. >> you too. thanks. the adp report is out in just about an hour's time. that will give us maybe a little bit of an idea what to expect on friday when we get the jobs report. right now let's talk about the recent market moves lower a enthe jobs numbers coming out on friday.

joining us is chief investment officer of bank of america's global wealth and investment management business. also chief u.s. economist at barclay is. welcome to both of you. chris, let's start off talking about the markets, first of all. look. we've seen a pullback of seven days in a row now for the dow. that's the longest losing streak in a week. of course it's only down about 1.4%. that's the lowest seven-day losing streak in years but what does this tell us? >> absolutely nothing. >> great. thanks for coming in. >> what it tells us is the investor is still not in the marketplace. we're still up about 5% for the year. which if you go back to february no one was going to expect since then is crystal clear. what has because we've seen it. but the fade of the strong

dollar and the collapse in oil prices caused a massive slowdown. >> and the largest part of gdp is the consumer. now, the savings at the pump, remember everyone said they weren't going to spend it. well, they were spending it. they were just spending it on different things. and the spending shift mix caused a lot of confusion as well. >> here we are at relative all-time highs in u.s. markets. we've had a move towards quality and yield and recently economic sensitives. so the rally has been broad, but yet nobody likes it. so the question is where do we go. >> and where do we go and the two things that changed this were the strength of the dollar and weakness of oil. here we are again. oil back below $40. looking at all kinds of cross currents from brexit, from the continued central bank interference. what happens? does that mean businesses still won't spend in the current

quarter? >> the capex slump should continue. we should still say in this sandwich market. which upside risks equal downside risks. with generally decent growth. but the key is the improvement factor. we're getting out of the world that says this mid-cycle slowdown is going to stay forever. we're going to continue to inch upwards in growth. markets should end the year positive and somewhere around these levels. >> you watch every number that comes out. is it your sense that we have moved out of this slump. are we still looking for signs with every report on friday? >> so i agree with virtually everything chris just said. so manufacturing has stabilized

largely. so i'd like to see a few more data points that suggest that, but the pmis look better. at least manufacturing within that look better. the energy sector is still an issue that contracted a lot more in the first half of the year than i would have anticipated. the good news, if there is good news is the base effect there is not a problem anymore. if you look at oil and gas and investment is a share of gdp it's less than 0.2% now. >> but it has had an impact. we continue to hear from these big companies. the rest of them along the way the they are cutting back their capital spending plans. because of the uncertainty with oil prices. >> i would agree that the investment cycle is not necessarily primed for a pickup. business investment should remain soft. but it's a consumer-driven economy. yesterday auto sales at almost

$18 million again. suggest the consumer's in good shape. that split, that mix as you suggest is still there. and the gdp number was not great. we know that. but it was mainly an inventory story after about four to five quarters of inventory accumulation through early 2015, we've reversed all of that. if it came outside of inventories, i'd be much more worried. i'm willing to look through that so long as labor markets hold up. i think we will get a good number on friday. if you get another good report heading into the september meeting, don't be surprised that the fed makes more noise. >> makes more noise or actually does something. is this bark or bite? >> it's both. it is both. >> you think that september's a live meeting they might raise rates? >> i do so long as the next two are solid from their view. for them it's much more about a forward look on labor markets than last quarter's activity.

>> what happens to the market if they raise rates in september? >> market would be very surprised. there will be more talk about it. just like mike said. because central bank policy right now in terms of rhetoric, anyway, and talk is really shifting. it's shifting and they understand this that in the next few years it has to shift from where it's been. >> in the next few years. >> well the few months will be a tap towards going towards that. it has strengthened currencies and is shifting towards stimulus and putting the ball back on the court there. the next few months, mike's right. that would surprise the market september hike. >> do you think there's going to be a rate hike this year? >> yes. december's our call. it's data dependent. of course it's going to remain contingent upon what happens in the next couple of months in the reports. but i would say this. the biggest surprise in the next

12 months could be the shift upward in yields. and not just a slow plodding movement up. but a big move in the end. then a follow on the short end given the change the policy as rhetoric is starting to engineer. >> want to thank you both for being here. >> appreciate it. coming up, politics, jobs, and justice. the nation's largest civil rights conference kicking off this morning. the former mayor of new orleans. and later video game publisher electronic arts says downloads help the company post a profit. we'll look at the numbers and whether it's a sign the industry is ready to get rid of discs. "squawk box" will be back after this. w bikes aren't selling guys... what are we gonna do? how about we pump more into promotions? ♪ nah. what else? what if we hire more sales reps?

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really fast. introducing the comcast business summer savings event. fast internet speed to drive performance, plus cutting edge wifi for your employees and customers, and voice mobility so your calls find you wherever you are. get some of our most advanced products at a great price with over $500 in savings. call today and ask how to get these savings plus a $250 prepaid card. comcast business. built for business. welcome back to "squawk box," everybody. we just had earnings out this morning from time warner. media giant earning $1.29 a share for the second quarter. revenue was slightly below what the street had been expecting. but time warner did raise its full year forecast. separately time warner announced it's bought a 10% stake in hulu. it's also signed an agreement to carry turner networks. and shares of time warner are up by about 1:32.

that's an advance of 1.74%. the national urban league's annual gathering will focus on jobs and justice. joining us is the ceo of the national urban league. we're thrilled to have him here. >> good morning. >> good morning to you. single biggest issue for you right now. >> when you look at what's happening in america today, most americans have seen their wages stagnate. in fact, the average american is seeing their wages decline by 7% to 10% vis-a-vis inflation since the year 2000. when you combine that with a higher unemployment in america's urban communities, it points to the need, i think, for a jobs initiative, a jobs program. efforts to create not only greater economic growth, but greater economic growth that's going to reach everyone in america.

and we'll be talking about jobs certainly education and justice. but i think jobs are foremost and the economy is foremost on the minds of the people who are here. >> i don't want to make this political, but i will. is there a candidate that you think will support what we're talking about better than the other? >> so, we're non-partisan. here's what we've done. we put together our own plan. it's called a main street marshal plan. we encourage both candidates -- and look, we extended an invitation to both secretary clinton and mr. trump to be here. we're pleased that vice presidential nominee senator kaine will be here. the trump campaign yesterday declined our invitation. but what's important is whether they're going to endorse our main street marshal plan or whether they're going to endorse portions of the plan. we're going to be looking to hear who has the best ideas. not just the best talking points, but the best ideas about

how you take a community like baltimore that is a tale of two cities. and grow the economy so that it benefits people all across this community. in city after city we need jobs. and we need jobs that pay good wages. that's the big challenge for america. that's the great pain that we face. and of course voting rights and criminal justice reform and how we improve our schools, those are also on the agenda. but i think we've always focused on economic empowerment. and this conference is going to have a big focus on that. >> how much of this is about improving the minimum wage from a regulatory standpoint. how much is a free market blitz? let's just figure out a way to empower businesses and interest businesses in being in neighborhoods they might not otherwise be in? >> i think it's a combination of both. we've got to realign the incentive structure in this country so that business investment is not redline from america's urban communities. >> and how do you do that?

>> i think it's going to take a whole -- it's going to take leadership. it's going to take awareness from business that in america's urban communities we've got talented workers. we've got people who are prepared to work. it's going to take maybe looking at the tax system in the -- at the federal and state levels. but i also believe it's going to take the push of the government to invest in infrastructure. we need an infrastructure investment initiative in this country. not only transportation infrastructure but i think water systems and sewer systems, community centers, and schools. the other thing i would add, it's so important to recognize that helping people raise their wages or raising the wages of people is important. 7% of this economy is driven by consumer spending. so when people have more income, they're going to spend and it's going to have a stimlative effect on the economy. so raising the minimum wage alone is not going to do the trick.

but raising the minimum wage i think is a very important step. we need a national standard when it comes to minimum wage. >> i want to wage what may be a sensitive subject. you talk about the divisive nature of the rhetoric both politically around the country. and there's been debate around the idea of the black lives matter slogan and what some people have called the all lives matter slogan. i wanted to understand where you come down on that. >> so the reason why we say black lives matter, because all lives matter. and what black lives matter does is it creates a focus. a focus on the idea that disparities in criminal justice, in voting, and the economy require i think a renewed focus in this country. i don't -- i hope people would not get caught in terminology and understand why we say that. we say it because we want all lives to matter. but, you know, historically

black lives have not had the same value. if you look at the type of challenges that we face in the country. so, you know, we reaffirm the value of every life, but we rally behind this idea of black lives matter because we need a focus on racial justice in this country. and while some people may not be comfortable with that, i really believe in 21st century america as we change as a nation, we've got to make leveling the playing field key to everything we do. key to a wha business does, key to -- >> why do you think we're so divided now or it feels that way? >> you know, i think that what we see is division coming out in the open. there's so many, if you will, private conversations that take place in this country. i think what we see also is the pain of a, if you will, economic stagnation in this country. we've got growth and jobs.

but the average american whether they are white, black, or latino are going through some very difficult and challenging times in this america. i think that that causes people to look to blame someone. i think it causes people in some instances to want to point the finger. and what we have to do and the theme of this conference is going to be building, if you will, this coalition of willing people from all across the board to confront. we've got to confront our racial injustice. we've also got to grow our economy and we've got to create a jobs, if you will, framework that's going to benefit all americans. >> okay. mayor, we appreciate your time. wish you luck at the conference. >> thank you. when we return, hillary clinton winning the back of a business leader. we have details after the break. and electronic arts beating the street thanks to downloads. stock is under pressure after

the company said revenue may come in slower than expected for the current quarter. we'll talk the console wars in just a bit. announcer: alvin and the chipmunks want to remind you--

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welcome back to "squawk box." another executive joining the anti-trump list. meg whitman throwing her support behind hillary clinton. whitman who ran nor governor urging others to reject donald trump who she says is quote, added anger, xenophobia. coming up, more trouble for donald trump. details after the break. and electronic arts posting a surprise quarter thanks to more downloads of its games.

we'll talk gaming trends and preview the holiday push -- already? for the industry. as we head to break, look another the equity futures. the dow has been down for seven days in a row. it would be opening lower for about 25 points or so. s&p and the nasdaq would also open in negative territory.

all right. among the stories front and center, time warner has taken an interest in hulu. it joins our parent company comcast as hulu owners. we'll have that and more on time warner's latest earnings in a few moments. the stock is higher in the premarket. health insurer anthem asking if a judge for a separate trial as it seeks to complete takeover of rival cigna. to block both that deal and

aetna's purchase of humana. but argues they should be separate matters. and the latest harry potter book is not surprisingly a big hit. scholastic the publisher of "harry potter and the cursed child" said 2 million copies were sold in the first two days a after the release. >> i love the music. >> never gets old for me. profit fell on higher cost but revenue surge beating strong for the new wearable devices. those products the alta and blaze accounted for more than half of sales in the quarter. i think becky quick might have helped them this quarter. >> it started giving me a rash so i had to take it off. but i had been wearing it. >> aig's second quarter operating profit on lower cost and strong underwriting. the insurer also expanding by another $3 billion. aig ceo peter hancock is going to join the gang on "squawk on the street."

watch that at 9:45 a.m. eastern time. donald trump's campaign trail could be getting a little bit stressful behind the scenes. at least that is the word today. john harwood joins us with that story. we have heard pieces of this, we've heard trump's response. what's happening? >> when campaigns start going bad, it's -- you have strains between staffers, the candidate and the staff, and donald trump's campaign is going very badly right now. you saw last night meg whitman coming out endorsing hillary clinton. we've seen some top aides to people like jeb bush and chris christie do the same. and so i had an exchange last night with someone close to paul manafort who is the trump campaign manager. and asked about what's happening inside the campaign. and the response that i got was manafort no longer challenging donald trump. just mailing it in. staff suicidal. there was subsequent reporting by colleagues at nbc to the same

effect. and so what you've got is a campaign under the singular control of donald trump. which is something we haven't seen before. he sets the message. he is impulsive. he does things day-to-day. you've got republicans around the country worried he's turning into a black hole and kind of sucking them down. we saw yesterday he declined to endorse paul ryan. declined to endorse john mccain. belittled kelly ayotte from new hampshire. and so it's just a mess right now. you look at the polls. he's been falling behind in the polls. so, you know, republicans are in a lot of distress. donald trump sent out a tweet this morning trying to counter this idea saying there's great unity in my campaign. that's just not the case. there's not great unity within the republican party or great unity within in his campaign. there's a lot of unhappiness and don't know what -- how they can turn that around. but people are going to be taking a closer look. we'll see what other republicans

decide to jump ship. >> this has been such an unusual election cycle. i would look at all of this and think that i would be unable to understand the tea leaves except for what's happened over the last 9 to 12 months. does donald trump need the gop? does he need the rnc? or is this more of a those in power versus those outside of power and all those other forces who just basically want to vote out anybody in washington at this point? is that enough of the population to actually give donald trump enough to win the white house? >> it's not. donald trump needs republican votes. he needs republican money to counteract hillary clinton and what she's got going right now. donald trump has a base of intense support among non-college educated voters especially men.

but that is not more than half o e the electorate. and we have seen in the polls he is stuck at around 40%. a little over 40% when you aemp average the polls. everything he's done in the last few weeks has been the opposite of expanding his support. hillary clinton after a brief little blip when donald trump got a bounce from the exposure from his convention has been steadily consolidating her party and reaching out to republicans. and meg whitman is not going to be the last prominent republican who stands up and says i don't want a part of this trump campaign. so is it impossible for donald trump to win the election? no. but is it possible for him to win the election on the path that he's on right now? yes, it is. >> so if he were to go back and listen to what some of the

people maybe manafort and others have been advising him maybe to tone things down, to not attack the cons, to allow more to roll off his shoulders and try to unify his party, there are some within his base that i think would be turned off by that. how does he navigate those two paths? >> that's very difficult. and because donald trump is such a strong force of personality and rouses intense feelings among his base but also the people who were not in his base, who were, in fact, strongly opposed to him, he doesn't have a whole lot of elasticity in his support. so it's not going to be easy for him. but if you were running for president of the united states with 125 or 130 million people voting, you have got to figure out ways to add and not

subtract. and everything that donald trump has been doing is in the last few days has been in the nature of subtracting potential support rather than adding to it. >> i heard somewhere last night if this is a referendum on donald trump, hillary clinton will win. if this is a referendum on hillary clinton, donald trump will win. this seems like a referendum on donald trump over the last week. would you agree with that sort of assessment? >> in outline, yes. the more the election's about hillary clinton, the better for donald trump. that's not necessarily to say if it's a -- no election is a single referendum on one individual. because there are choices. but the more the focus is on clinton, the better for trump. but trump is unable to -- appears unable to tolerate a situation where he's not the focus. an so he's making everything about him and that is not good for the republican party's chances of not only recapturing

the presidency, but holding the senate and maybe even the house. that's what has republicans most worried. you know, for a long time, becky, for a couple of months republican strategists generally election. have been assuming that donald but their focus in terms of trump is going to lose the finance and in terms of their own attention has been on saving the congress. in particular the senate which is more vulnerable. the house is much less vulnerable. however, if this continues on the path that we're on, republicans could lose both the house and the senate. and so that's why you have rising concern among republicans. you have republicans speaking out. yesterday chris christie's former top aide said the reason we've gotten in trouble is that in order to win elections we've been silent and if we're going to have a future as a party, we can't be silent anymore. that is a reflection of a powerful feeling among especially better educated republicans, the college

educated voters that hillary clinton is poaching right now about things that they have to do. and, you know, that's something that donald trump and his campaign have got to deal with, respond to. >> all right. john, it's good to see you. thank you. >> you bet. coming up when we return, we're going to talk instagram which is now taking on snapchat. interesting new features there. and then time warner shares are up more than 18% just this year to date. but now down 13% over the last 12 months. company reporting a short time ago. we're going to talk earnings growth and the stock's wild ride. meantime, check out the futures right now. we're back in just a moment. ana vested investor in vests, i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars.

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and move only when you hear the seatbelt click that says they're buckled in for the drive. never give up till they buckle up. welcome back to "squawk box." instagram taking on snapchat. rolling out a stories feature like snapchat stories. instagram stories will allow users to string together multiple photos or videos to be shared. filters and a drawing tool will also be available after 24 hours the stories will disappear. however, you will not be able to make dog faces at least thus far. >> at least yet. >> you know, the faces.

>> that's why we don't get it. the nfl we should also say is expanding its presence on social media signing a new two-year partnership with snapchat. this fall it will be the first pro sports league to have its own snapchat discover page. snapchat will also have live story for all 256 regular season games on the nfl schedule. plus the playoffs. electronic arts is reporting quarterly results. the gaming company getting a boost thanks to digital sales. a nod to the potential end of the video game disc. this comes as developers are gearing up to release a flood of big games including madden nfl '17 and no man sky. yoin issing us now is chris grant, editor in chief at pol pollygon. chris, welcome. >> thanks for having me. >> are we surprised that physical discs have even lasted this long? >> i think some cases, yeah. the technology's been available

for us to get rid of them for a long time. i think a lot of the resistance has been consumer driven. if you remember microsoft infamously tried to make the xbox one a very digital first platform and consumers had a -- i'd call it a revolt in a leadup to the console's launch. they had to reorient the entire platform back towards physical releases. i think that's some reason they're still struggling. >> it's interesting. we completely moved away from going and buying a physical cd, for example. but yet we still like to go into a game stop or whatever, brick and mortar store we're talking about. pick up that madden game or sports game or whatever other kind of game and have that

physical disk in your hand and in your collection. >> i think a large part of that has to do with the way that the companies have handled it. that cd would work on your old cd player. it was compatible with decades of cd players. for games, they're compatible specific console. there's no guarantee it's going to work. and i think that failure of making things compatible has encouraged a lot of these people to think of these specific artifacts that don't work and they might as well get rid of them. and that availability for a second hand market is what you lose when you go digital. people are uncomfortable with that. they like being able to trade in their old games. >> who's got the best and biggest new releases that are, you know, shockingly we're going to be talking about that as it relates to the holidays. who's got the must-have game

coming out? >> we're getting into it. you know, the big holiday sale season really starts next month in september through november. ea, you mentioned they beat the street on earnings in large part on digital. they've got a couple of really big releases this year. they've got battlefield 1 which is the newest con confusingly titled name in their long running shooter series. and they've got titan fall 2. those two come out within a week of each other. and those are going to be two of the biggest shooters of the year. shooters tend to do very well. the latest sold something like 13 million units. >> my producer who apparently is a big gamer, at least that's what i'm hearing in my ear says destiny rise of iron is one to watch for by activision. >> yep. >> i know nothing about it. >> that's ea's biggest

competitor, activision. destiny was something of a phenomenon when it first came out. it was a first game from bungee, a former microsoft studio that did halo after they left microsoft. and they made this game destiny which was sort of this massive shared world shooter. so another shooter certain to do huge numbers. i think a lot of players are expecting them to really refine a lot of the promise from two years ago. they nailed a lot, but they didn't quite nail the landing. and so destiny the release this year i think should do very well. and will probably be one of the biggest titles of the year. >> all right. chris, appreciate it. thanks much. disclosure, nbc universal is an investor in fox media. when we return, we're going to talk media stocks and earnings. right now check out the futures. we are a little bit in the red here. things looking open down about 20 points on the dow.

s&p off 2.5. back in a moment. i'm just a guy who wants

welcome back to "squawk box." time warner reporting earnings this morning. reporting $1.29 per share for the second quarter. 13 cents above estimates. it's taken a interest in hulu. joining us now is tom eagan.

he's research analysted a adviser group. you want to talk earnings first or hulu first? >> doesn't matter. whatever you want. >> let's go earnings first. your biggest headline out of this? >> to me it's the underlying health of both turner and hbo. what we saw was that a subscriptions rose. and the advertising rose 6%. same thing at hbo. subscription growth of 6%. the health of the underlying businesses. >> you look at the hulu deal. how does that change the game? >> we like that. because it guarantees them licensing on hulu. it also gives them, you know, an equities stake in the appreciation of that service. >> and in terms of hbo and hbo over the top, do you think that you'll see hbo get connected in with hulu? >> it's possible that they could do, you know, some kind of hybrid promotion.

it's definitely possible. i'm not sure if they need that right now. we don't actually know of course how many hbo over the top subscribers there are. but it's possible down the road. >> that is not a number we have seen yet in terms of no tt number on hbo. how badly do you want to see that number and where do you think it is relative to the other players right now? >> it's interesting. cbs came out and surprised folks. hbo other the top better have at least a million subscribers. >> one of the other topics we talk about virtually every day here is the saga that is the red stone family and viacom and cbc. and of course every time that conversation comes up, time warner comes up because people think that the natural buyer or combination for a cbs or possibly even a viacom would somehow involve time warner.

do you agree? what do you think should happen? >> you know, people talk about consolidation on the content side. i'm not really a big subscriber to that. it's not like the cable business. the cable business you get leveraged by getting bigger. you don't really get leverage by getting bigger on the content side. we saw the lionsgate deal. in the old days and the content business you did. because you had heads of cable networks. these days it's about ratings and having strength and growth in your affiliate fees. if you don't have that, it doesn't help you to get bigger. >> among all the content guys you cover these days, who do you like the best? >> we like time warner. the reason is we believe they have three of the important trends going forward. they have sports at turner, make tv shows at warner brothers. and they have impressive over the top content at hbo.

>> thank you. great to see you. >> sure. nearly 120,000 bitcoins have been stolen in hong kong. trading on the digital currency exchange was suspended. amount translate to about $77 million at least week's average price. but after the news came out, the price of bitcoin dropped nearly 20% bringing down the value of the stolen bitcoins to about $65 million. toyota delaying the launch of its new plug-in prius hybrid. a spokesman said it would reduce production of the model called the prius prime but output would pick up based on demand. sales have been sluggish in the u.s. since it went on sale in february. low gas prices boosting demand as you might not expect for suvs and pickup trucks. shares of biogen soaring more than 9% yesterday following a "wall street journal" report that it was a takeover by merck

and allergan. but allergan is unlikely to pursue that deal. the stock will be closely watched today and drum roll, please. guess not. coming up, the adp private payroll report. the numbers and market reaction are straight ahead. check out the futures at this hour. drum roll. there we go. is that like a subtle drum roll in the background? >> little "squawk" drum roll. ♪

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breaking jobs news. the adp employment report just moments away. we're going to bring you the numbers and what they could tell us about the week's big payroll release. fighting the bite. the number of home grown cases of the zika virus rising and health officials calling on congress to find efforts to combat the spread. next stop, the moon. the first private space flight company getting u.s. approval for a lunar landing. the ceo of moon express will join us as the final hour of "squawk box" begins right now. ♪ live from the most powerful city in the world, new york, this is "squawk box." >> welcome back to "squawk box," everybody. this is cnbc, first in business worldwide. i'm becky quick along with andrew ross sorkin and scott wapner. joe's out this week.

we have been seeing additional red arrows. these are modest declines. you're only talking about the dow futures down about six points right now. the nasdaq down by six. but it comes after seven days in a row of declines be i the dough again, you've got to keep this in perspective. we're still only talking about a drop of about 1.4% after those sessions. so we are continuing to grind through. a big part of the issue has been wti. it moved below $40 yesterday. you can see it's up about 33 cents this morning. but still trading below $40 at $39.84. a couple headlines for you this morning. mortgage applications dropping 3.5%. this in the last week. this despite slight decline in rates. still 56% higher than a year ago. time warner posting better than expected earnings. we just talked about it. time warner also announcing, though, and this is probably the bigger headline this morning.

it has now taken officially a 10% stake. in political news this morning, hewlett-packard ceo meg whitman. surprise, surprise, throwing her support behind hillary clinton. calling donald trump a demagogue. she ran for a governor in california as a republican in 2010. also a shakeup at the dnc. top officials stepping down following the e-mail hack that revealed favoritism toward clinton in the democratic primary. you might remember debbie wasserman schultz declined. all right. now to the broader markets. this morning we're looking beyond simple stocks. joining us now is paul britton. he is ceo of kapstone investment advisers. it's specializing in arbitrage trading. welcome. you have trades on volatility.

>> yes. >> and it's been doing very well. i might ad. >> well, there's been lots of volatility. so we're in the business of providing a service when there is volatility in the marketplace. clearly this year has been no shortage thoof. >> you think it's likely to continue? >> it's difficult to see how it doesn't not continue. as andrew was saying, with the election and the fed, there's just a lot going on right now. and we struggle to understand how it can't deliver more volatility to the marketplace. >> i was going to ask you sort of brexit was the most recent volatility event, if you will. is september fed move sort of the next thing on your radar? how do you sort of game out what you're looking at as major events? >> yeah. it's these big kind of macro events. we like when there's a lack of

consensus. you had one guest saying they didn't believe it. that consensus drives uncertainty. that drives volatility. and that's what our business does. it's being able to try and profit from this uncertainty. and i don't think anyone would disagree there's a decent amount of uncertainty right now. you've got the ecb, japan going one way. and you've got the fed going the other way. and that's -- we struggle when everyone is on the same page. and right now i don't see how that -- that's not the case. >> can you explain for people exactly sort of what your trading strategies are? how you execute your volatility. you're not shorting the s&p, so to speak. >> we're not. >> you're using options and more intricate trading methods. >> and you guys have done an unbelievable job of educating the investor base. your show around the options markets. very simply put within an option

there's an embedded price of what they believe the underlying instrument is going to move given a certain period of time. so for example, the s&p. in the options market, the -- they believe they're going to move 70 basis points a day. if you believe that that's crazy and the s&p's not going to move 70 basis points for the next 30 days, then you should sell volatility on the s&p. if you believe that i cannot see how the s&p is not going to move more than 70 basis points, then you should buy volatility. we just do it across every single instrument, across every clause. >> have you been surprised that at times when the markets have appeared to be the most volatile, there's been a resilience shown by the market that it subsides more quickly than people have thought. and how nimble you've had to be in your own trading strategies to take advantage of that.

>> so we've had a theory for probably the last two or three years that we believe strongly that the market has changed structurally. because of the form that was put in place post-crisis. and we believe strongly that that means that as banks pull away from taking -- being able to participate in the risk taking business, and we believe the market will become more volatile. that's not also just to say that that means we're going to crash. but it means that you're going to see a higher level of volatility on both directions. meaning to your point, scott, that there will be the spikes but there will also be spikes with the vix last yeek made no sense. that's because the banks are unable to step in and provide the risk capital to be able to provide essentially that stability. because in my opinion, if the banks were still able to take

risk, it wouldn't be there. >> when the vix is at 11 you say that makes no sense. it's an opportunity. >> it is an opportunity. >> to buy. >> and that to me is what the opportunity is right now. is replacing -- there has to be a new risk taker. the banks provided this function for the last 25, 30 years. now because of regulation, the banks can no longer provide that. somebody has to do it. somebody has to provide that new facility, that new balance sheet. if you think about it, i think there's going to be a new set of firms that we have heard of today that's going to be the risk takers. that's going to be the new -- >> so you think we're just at the infancy of the kind of trading strategies. >> i do. yeah. >> all this result in a fallout from voel ker, dodd/frank and all of the others? >> yeah.

created on one hand i believe incredible opportunity. on the other hand, i believe that it's created a new market dynamic, a new paradigm shift. and that's going to create a new set of behavior in the marketplace. >> thanks for coming in. >> my pleasure. >> interesting conversation. >> appreciate it. let's talk about the m&a game. biogen giving back shares of the stock. that stock soaring on news of a possible takeover interest. merck and allergan are reporting showing that maybe not happening at least not yet. joining us now with more on the potential deal in the biotech space, good morning. >> good morning. >> what do you think? >> it's not surprising when taking a look at biogen. >> what happens? >> company's down 30% from its high. and for the last few years they look at their job as building

rnd. they are going what biotech is supposed to do. putting it against hard to do for significant. the argument is if you're a big pharma company and those companies have been very profitable and interest rates cheap, what you need to do is take that cash and it helps you in the near term. and if something nice comes out of the pipeline, nice bonus. >> you look at the potential buyers are reporting that allergan is not interested. >> biogen not interested. >> we had an analyst come on earlier who said they thought a for sale sign had been put on biogen. you believe that? >> as a matter of fact, when ceo announced -- the first thing they did was cut costs and announce a buyback. which is another way of saying we're going to push up the volume of the stock. we're not interested in selling. i don't think allergan has any business trying to buy. they should not be trying to.

>> should there be a company that should try to buy this company? >> there are a few companies that have a lot of cash. and for them, you look at this and go, is there a better use of my money? >> name some names. >> so i think gilead is one. amgen is a third. the question is can they pay the price and can they do the math and justify taking risk. >> what's a fair price for this right now? >> that's a good question. it's hard to see the company taking something at four. stock is a little bit over 300. >> price a better now than it was. right? this is a stock that was north of 500 bucks. >> absolutely. >> in many ways that is the for sale sign in itself the fact it moved from five to three-something. >> remember the entire political organizations begin to go after the drug stock talking about the

drugs being prices too high. and suddenly the entire sector is reeling. >> are you suggesting that there's something going on behind the scenes that is untoward -- because you're looking at a stock that has lost over half its value. when you start measuring by that. that's a very different scenario than others we saw. >> some which are even much bigger than that. what i'm saying is a lot of the political candidates talking about the need to control drug costs, the drug sector pulled back. but for drug companies they have a lot of cash. interest rate is cheap. they look at this as a long-term opportunity. more than a near term market volatility issue. >> thank you. appreciate your time this morning. up next, some breaking economic news. we are just minutes away from the adp report. we're going to bring you those numbers and the market reaction. stay tuned.

you are watching "squawk box" on cnbc, first in business worldwide.

all right. welcome back to "squawk box." let's look at futures this morning. following that dow seven-day losing streak.

that's what we're on. trying to get off the schnide. the dow would open lower by about 15 points. it hasn't closed seven days a row in a year. we're hoping to break that streak today. the s&p with implied open down two. the nasdaq would open down six. we have a mixed quarter for clorox. earnings missed by 2 cents. clorox giving an upbeat outlook for 2017. fiat chrysler in talks that samsung to buy a unit. allergan is selling its anda distribution business. anda, as they say. never heard of it. well, thaer selling it to teva. the price tag? half a billion dollars. petroleum matches estimates with the quarterly loss of 18 cents a share. revenue came in below estimates. it also said it saw full year production at the end of its

previous projected growth range of 4% to 6%. for those who follow bill gross closely, he's out with his august investment outlook. gross saying he doesn't like bonds and doesn't like most stocks. gross does like land and gold. breaking news right now, u.s. economy adding 179,000 new private sector jobs in july nap is just above the estimates. basically in line with the estimates that were 178,000. june's number was revised to show 176,000 jobs from the originally reported 172,000. joining us is mark zandi from moody's analytics. and 178,000, what does that tell us? >> job market's fine. job growth has slowed from where we were a year ago, two years ago. so underlying job growth distracting from the ups and downs in the data about 150 to 200k. which is good. that's double the rate of growth we need to absorb the working

age population. and that means unemployment will continue to decline. it's a good number. >> if we are to try to extrapolate something for what to expect from friday's government jobs report, what would this 179,000 on adp translate to once you add in the government factors? >> well, the government's adding about 10k per month. so you took literal interpretation of adp, you take the 179, add 10. so 189,000. that's a good estimate for friday. >> tell us the concerns from a month ago were completely overblown. that things are chugging along and the trend is moving in the right direction. >> yeah. you know, as you mentioned two months ago we had a bad number. last month we got a really good number. both overstated the case. you know, it's just the data, the volatility of the data. so underlying job growth is about 150 to 200k.

and that, you know, is very good. it's a step down from where we've been. just to give you context over the past six years since the job recovery began, we've created an average of 200k per month. just a little over that. that's stellar growth. that's well above what we need to observe. employment is growing. the labor market is strong, it's good. >> what happens -- mark, this is scott. good to talk to you this morning. some people look at this, the overall job picture and like you said, they say job growth is slowing. maybe job growth peaked. auto sales may have peaked. and there are other signs within the economy that are making people nervous that think we're on the slow walk and maybe our steps are picking up towards a recession. do you buy that or no? no. not at all. there's no indication whatsoever. i mean, look, scott. we sold almost 18 million units

annualized in the month of july nap is not at all consistent with an economy that's struggling. home sales are as high as they've been since the bust. none of the leading indicators things they look at are signaling any kind of problems. stock market, you mentioned today is going to be an off day. but still close to record highs. shape of the yield curve, consumer confidence. no. i don't see any significant problem of recession in the near future. >> unless the fed moves what ends up being prematurely, makes a mistake and puts us there. >> well, that's clearly a possibility, but you've got the other risk now. they go too slowly. you know, we're at full employment, wage growth is picking up. a year from now my guess is our problem isn't going to be unemployment, it's going to be a

lack of labor. and if the fed is too slow in normalizing interest rates, we could have an overheating economy. and i think that's the -- and that's the more typical kind of business cycle. that's generally how recessions end. so i think the risks here are increasingly asymmetric. >> we heard from dudley and lockhart this week and both of them kind of suggesting we could see a rate hike this year but you'd have to see much stronger economic numbers coming in to support that. in your opinion the numbers we're seeing isn't strong enough to support raising rate hikes as early as september or december. >> yeah. i think so. i mean, for me, the fed is focused on the labor market, the job market. >> well, the answer is pretty close. maybe not there today. but at the current rate of job growth, certainly be there by the end of the year. indicative of that is the pickup of wage growth. inflation still below target. 1.6%. we got that number yesterday on

core consumer expenditure data. so we're not quite wra they want us to be. we're pretty close. looks like they should be a monetary policy soon. i think the economy is going to be in the right place by the end of the year for rate hikes. and next year the economy will be past full employment. the economy will be tight. >> mark, earlier this week hillary clinton was using a report of yours, an economic report of yours to support her candidacy saying that your report showed there'd be more than 10 million jobs created in her first term if her economic proposal is in place. she also said another report by you found that donald trump economic agenda would cost the u.s. nearly $3.5 million jobs. is that accurate in that portrayal of your research? >> yeah. i didn't realize she used the numbers but that's accurate. that's taking their policies at face value. so if you take precisely what

they say they want to do on their website, their campaign website and their speeches and their interviews and you take that. this isn't about what actually will happen. it's what they say they want to get done. if you do that, yeah. you'll find that -- >> i've tried to look that up and it's really hard to find specifics from both of these candidates on a lot of issues. we are not talking about too many specifics. >> no, no. read my report. it's very well annotated. there's hyperlinks. so everything we've done is linked to something that's on their website and in the case of the clinton campaign, they're very transparent. the problem modeling the clinton economic policy is there's a lot of policies and a lot of moving parts. >> but just to -- are you part of the clinton campaign? >> no. i am not. i'm not. i'm a registered "d." i'm a democrat and i have contributed to her campaign in the primary, but i've contributed to ours and i worked

on the mccain campaign. so i've worked both sides of the aisle. i would highly recommend read the report. be your own judge and see what the analysis says. >> okay. thanks for joining us today. >> thanks. appreciate it. coming up when we return, a magical hit of sales of the latest harry potter book. we'll tell you all about it when "squawk" returns in a moment.

news out of rio this morning. michael phelps has been selected as team usa's flag bearer for the opening ceremony of the 2016 games. phelps was chosen by a vote of his fellow team usa members. the opening ceremony airs friday at 8:00 p.m. eastern time on nbc. and they're going to be wearing some of the coolest jackets. i don't know if you've seen these blazers. >> they're pretty sharp. >> they light up. >> wait. i haven't seen this. >> the flag bearer blazer lights up. you'll see it. >> are you going to be modeling one? >> i may break one out. >> you're going to steal one?

>> we'll see. >> i'd expect nothing less. >> i'm on the case for a blazer. we should also tell you the harry potter magic is still alive. publisher scholastic says that sales of "harry potter and the cursed child" topped 2 million in america in two days. the book doesn't follow the formula of the previous series. it's a screen play. the performance premiered on saturday in london's west end. breaking overnight, nearly a hundred thousand bitcoins have been stolen from bitfinex. suspended after the breach was discovered. that amount translates to about $77 million at last week's average price. but after the news came out, the price of bitcoin dropped nearly 20% bringing down the value of the stolen bitcoins to about $65 million. when we come back, south florida confirming 15 home grown

cases of zika in that region. a political battle brewing to fund efforts of the spread. we'll talk to two lawmakers of the break. i'm just a guy who w

welcome back to "squawk box," everybody. among the stocks that we're watching this morning, fitbit reporting 12 cents a share with the revenue also coming in better than forecast. fitbit also gave some guidance for the year and that's why the stock is up almost 8% today. office depot falling short. they said they would close an additional 300 stores and institute is new quarterly dividend of 2.5 cents a share. that stock is down trading at $3.25. also hsbc saw profit fall by 29% from a year ago. earnings just shy of what the street was expecting. however, the bank did announce stock buybacks for the second

half of the year. in political news, rnc chairman reince priebus is, quote, appeplectic. priebus called several trump staffers to express his extreme displeasure yesterday. and in addition to trump's uneasy relationship with the republicans, he's also reportedly having issues with those inside his campaign. john harwood speaking to a longtime ally of the campaign manager paul manafort that ally saying that manafort has lost control over trump and is no longer challenging him. specifically he wrote that manafort is, quote, mailing it in, staff suicidal. was the quote. but donald trump not having it. tweeting this morning there is great unity in my campaign, perhaps greater than ever before. i want to thank everyone for

your tremendous support. the zika threat has turned into a political battle on capitol hill. back in february president obama requested $1.9 million in emergency funds to fight zika. lawmakers, however, failed to approve these measures. they couldn't come to any agreement between that and now congress is not back in session until september. so it has been months and months and months that no agreement has been reached. in the meantime, we have seen an outbreak in florida. these are the first local transmissions we've had in the continental united states. 15 cases so fa for. this morning we spent time with governor rick scott. here's what he has to say about the situation. >> congress went in recess. the congress has not worked to gt to help us. they should be helping us with paying for things like mosquito spray, testing, things like that. think about this. this is not just a florida issue. this is a national, international issue. we're the tip of the spear.

they haven't been our partner so far. >> let's turn to our guests in this fight. debbie dingell and ted yoho. i read both of your comments. and both of you basically said it was the other side that couldn't agree to things. but listening to governor scott this morning, he says i don't care how they get it done, i have to work with a legitimasla who doesn't always agree with me. how do you get congress to get their act together and pass funds for this. congressman yoho since you're from florida, i'll start with you. >> appreciate it. we passed a bill at the house. passed approximately four weeks ago. and it went to the senate and the senate held it up because of the democrats were playing politics with politic health. >> sir, i'm going to cut you off right there. i've heard a whole lot of finger pointing from both sides of the aisle. i think both sides are to blame in this situation. that's what the governor seems to think too.

a lot of other things were kind of tied up in it as well. it was passed at the last minute, but the democrats and the republicans have been to blame here. >> yeah, but let's go back to that. because we tried to pass it and the democrats had their 1960 style sit-in that blocked a day and a half worth of legislative business. and we had -- >> and that was more than six months after the president had already asked for that. so we are talking about months and months that this has played out where the two sides have not been able to find common ground. there were warnings from the cdc this was likely to hit our shores this summer. it has done that now. and you're now going to sit here and continue to point fingers at the other side. what are you going to do to address this? >> we have already passed -- >> what are you going to do to address this? i'm going to ask the congresswoman the same thing because her comments were also very much blaming the other sides of the aisle. i think both sides are to blame. there's an outbreak in the united states right now.

what are you going to do? >> there is. it's in my home state -- >> what we r you going to do? >> we asked mitch mcconnell to fast track it and get it done now. they should use the nuclear option of 51 votes and pass this without playing politics with it. if you look at the funding, it comes out to $1.7 billion. $200,000 less than the -- >> your bill is $1.1 billion. >> it was but there's another $500 million that is unused funds that the white house has access to. >> that were set aside for ebola. >> it comes out to $1.7 billion. so yeah. you look at the ebola fund, is it a problem today? is it attacking america? is it infecting america? >> but we lurch from crisis to crisis. that has been the cdc's point. wait until it's on our shores. >> zika's here in the united states. and we should be treating that and not playing politics with it. >> congresswoman dingell, what are your plans? >> i would like to see the two of us call for the congress to

come back now. i agree with the governor that there is a crisis. i think the -- i don't think that this is a -- it shouldn't be a partisan issue. i think, you know, it was the health experts that put together the need for $1.9 billion. and the dollars that were put in that weren't the amount that were asked also cut very serious contraception. this is a disease that is sexually transmitted. it cut dollars that would protect women who if they are having -- just to be blunt -- sexual relations, would at least keep them from being pregnant. >> congresswoman, i will say the democrats' bill had issues too. it had a lot of funding going towards climate change and people will say that leads to greater mosquitoes but that is not part of the immediate problem. why have the two sides not been able to find a compromise? >> i think it's a crisis and we need to come together. and i would encourage my colleague to ask the speaker to call us back together. it is in the united states.

we do have to work together. i'm someone what's always worked across the aisle. and it's here. it's in our home lapd. on the environmental issue, part of it was it was allowing pesticides to be used that could poison water. here in michigan we're pretty sensitive about what happens to the water. compromise is not a dirty word and i'd like to see us come together because we have a crisis and i'm worried about those babies that are going to be born. >> congressman, i believe you called for congress to come back to deal with the state -- i'm sorry. i was addressing congressman yoho. >> i did. i think we should go back together. as debbie pointed out, the pesticides that we want to spray, we're getting pushback from the epa and the environmentalists. these are safe pesticides that have been used for years. the studies are there are there. one of the other modes of going after mosquito is using gmo mosquito that will stop the mosquito from reproducing.

and it's been around for ten years. and it's a safe product that needs to be used. but when you start playing politics with stuff like this instead of addressing the problem, the american people don't get served. and this is something -- and debbie and i agree on this -- we should be back in congress doing this. mitch mcconnell should bring this bill up and for a season let's go on and treat this. because this is the summer season. this is the time we have to be aggressive at treating this. and if we do, we'll go ahead and we'll get this under control. in the meantime, put money into research and development and money into vaccine development. >> congressman dingell, you would be okay with these pesticides or no? >> well, some of the material that i've seen has said some of the pesticides they want to use could be harmful in the water. if someone could show me that it was safe, i would support anything for mosquito eradication. you know, one of the other issues while we're all worried about pregnant women, we're also seeing this is an inflammation

calling symptoms in other individuals. we need the research to know about this. it's in america. it's not going to just stay in florida. we have a crisis. >> let me ask you, anyone can jump in first on this, but do you think that there are enough congressional leaders or enough congress people who are concerned enough at this point that we will see something passed, let's say, in the next week? >> i tnk there is. i think there's enough public push on this. it's a shame we have to get to this point to where the public has to demand this. we should be doing this. like i said, i thought we had a responsible bill going over there like you were saying. there was money going into climate change. we don't need to address this right now. it is ground zero. it's here in our country. it's affecting women and babies. this is something that we should put the public safety ahead of politics and i'm all for that. it sounds like debbie is too. i'm looking forward to seeing

you in washington again soon. >> i think we need to get a letter and ask the speaker to call us back in. >> we have done a letter on our side that will be going out today. >> that's good. >> the florida delegation is on that. i would implore you to do the same. >> oh, i'll sign it. i think we've got to get the republicans to call us in. but it's got to be bipartisan. this is public safety. >> it is. it's not republican or democrat. the mosquitoes don't know that. >> agreed. i love what i'm hearing from both of you right now. i hope this is a message that the rest of washington is receiving. the governor today, governor rick scott, said he really could use the funds right now. he could use some help. the cdc's been called in but he could use some additional help with testing and with trying to make sure that people get kits to prevent mosquito bites to begin with. so if this is the beginning of something, amen and good luck to both of you. >> i appreciate you bringing that up because the cdc released $17 million yet only $700,000

went to the state of florida. and we're ground zero. >> right. and the governor says he has about $22 million in state funds he's putting towards this. but obviously this is something that needs federal attention too. thank you both for your time and thank you for calling for the speaker to call back the house for this. we appreciate it. >> debbie, we'll see you next week. >> i hope so. i'll be there. >> we'll be there covering it if it happens. we hope it does too. coming up, squawking in the stars. u.s. approval for lunar landing. moon express founder going to join us after the break.

we're back on "squawk box" this morning. take a look at equity futures. dow would open with modest losses of nearly 13 points. s&p with a loss of nearly two points. and the nasdaq showing a loss of 5.5 points. muted losses with five minutes to go before the bell rings. this next segment is cool. our next guest said i didn't sound excited enough but i am. moon express says the u.s. government has approved their plan to land on the moon. unmanned moon landing slated for next year would be the first private space venture to go beyond. for more on the mission, let's bring in naveen jain, he is

cofounder of moon express. congratulations. >> thank you very much. this is totally cool. >> so you're -- now, originally this is going to be an unmanned mission. >> that is correct. >> but how soon do you want manned missions? >> i think within 10 to 15 years we're going to take people on the moon. and really for me it's going to be the actual honeymoon is going to be taking your honey to the moon. >> and you plan to go? >> absolutely. i'm the first one to sign up for it. i'm going to go on virgin galactic too. >> are you going on one of the first missions? >> i'm going on one of the first with my son. >> wow. >> why do you love space so much? what captured your imagination? >> everything we find scarce on earth is abundant on space. we fight on land, energy, water. all those things are abundant in space. and to me the landing on the moon is not really just about landing on the moon. it is about what a small group of people are capable of doing.

it's about taking the moon shot. it's about going out and doing this. and my hope is when we land on the moon, we inspire millions of entrepreneurs in the united states to find their moon shot. can that be a cure for zika, alzheimer's? all of them have to know an immigrant coming to this country can dream so big and can make it happen. would you cure cancer? cure alzheimer's? what would you -- what is not possible? >> all of the above. >> what do you want to do on the moon? >> first of all, moon has tremendous amount of resources. if i could rephrase john f. kennedy, it would be we chose to go to the moon not because it is easy but it's good business. and the reason it's good business is because there are platinum grade materials. there is water. and more importantly we want to use the moon for our settling of colonies. so if you ask the dinosaurs, they would probably tell you i

wish they had a great entrepreneur who could have had a multi-planetary dinosaur society. think about living on this spaceship called earth with a single point of failure. if asteroid hits it, we're all gone. we don't want to be the dinosaurs. >> you want to colonize the moon? >> we want to colonize the moon and the mars and the venus and the pluto and every other galaxy. at the end of the day, there's no reason we couldn't be living on the moon. there's no re, couldn't be living on the mars. and you'd rather be a lunatic three days a week than be a martian who gets six months. >> what would it cost if we wanted to go? >> the whole cost of the mission is under $10 million. >> you're kidding me. >> that's unmanned. >> we can't do it ourselves through nasa at this point. the only way is through a private enterprise like yourself. >> that's the beauty of what the administration has done which is to allow the innovation and the private enterprises like our friend elon musk is making the

reusable rocket and jeff bezos is making the reusable rocket. cost is coming down and we can now have access to space. >> i love this. i love your excitement about it. i love the fact we're able to go back to the moon. it horrified me we cut that out of the space funding. however, in reading through everything, the one thing that jumped out at me as a concern, nasa basically asked you not to step on neil armstrong's footprint. that is history. they admitted they don't own the moon so they can't prevent you from doing that. the rights once you get up there are very different. nobody owns this. no country owns this. while i think you have absolutely every great thing going on, what if somebody with less pure intentions suddenly started putting things up on the moon? what do we worry about? >> first of all, president obama signed the law last year that says everything we bring back we get to own. so the clear law, the law of the

land is clear. that means when we go there and bring back en the moon rocks, so as opposed to someone when they get engaged giving someone a diamond, imagine everyone gives someone a diamond if you love her enough you give her the moon. don't promise her the moon, give her the moon. >> which i love. but again, you are talking about the idea of a natural resource that no country can really lay claim to. and a million entrepreneurs launching into space. all having different ideas. >> well, actually, just to be clear, the faa very simply they asked us not to step on the neil armstrong footprint and we ask them to maintain our non-interference. so the places we are exploring for resources, no other country or company should come there. that means we have the might of the united states behind us. so if any other country with nefarious attitude comes towards us, we have a might of the united states to actually protect the interference. >> that makes me feel better. >> you mentioned elon musk and

jeff bezos, are you working with them? >> we are friends in this economy and they're good friends. >> but in terms of this particular mission, neither of them are working working with y >> in this mission we are using a rocket under 5 million rocket. the whole cost of the rocket is not hundreds of millions. under $5 million. this to me just beauty, that we are able to 3d print the rocket and a company out of new zealand we bought the rocket from, and now, our lander is going to be under $5 million. so imagine how quickly we can democratize. >> who's funding you. >> raised $30 million. privately funding. looking for the last $25 million. everyone watching history being made if you want to be part of making history contact us. we would love to have you be part of making history. >> what kind of backers do you have now? >> all the private people. it's individuals, it's corporations, and it's really the entrepreneurs from around the world from china, from russia, from europe, from america and they are the

entrepreneurs always dreamt of doing things that were amazing. you start a company and you want to take a moon shot. what is better than a moon shot? the real moon shot. >> we wish you luck with that moon shot and appreciate you being here and love your excitement. >> thank you very much. so kind. thank you. >> come back and talk about other things we can solve and cure too. >> actually, becky i am -- are we off? >> no. got to keep going. >> great. >> still on -- >> tell us just between us. >> i started a company called blue dot which is a moon shot taking the disruptive technology that is coming out of the national labs, nasa, and applying them for solving the big problems, such as finding the bacterial infection versus infection. finding and actually killing the mosquito, it's an immigrant, it is by definition, mow ski ta not local, removing it does not change the ecosystem, really finding the early diagnosis for cancer, finding the early diagnosis when you're sick or child is sick to give them antibiotics or not. >> forget congress.

we will come back to you and tell us more. come back soon. >> we will do than thank you very much. >> thank you. >> when we come back jim cramer joins us live from the new york stock exchange and we will get his take on today's top stories.

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we're back. down to the new york stock exchange now. jim cramer joins us as always. are we going to get off the sh i need today? it's been seven in a row for the dow at least? >> i'm still reeling from the moon shot. i'm trying to get over the moon shot situation. i mean, wow, fly me to the moon. absolutely. look, this would be the day that it happens since everybody is so negative and everything is set up to be looking down. but i have to tell you, this is the most calm, down seven days ever. it's just -- it's just every little bit, it's just the dow if you take a look at the dow stocks, kind of inch down, they don't just fall down. but the nasdaq was bad yesterday. i'm watching the nasdaq. and it didn't spike up on that what i regard as being somewhat of a biogen story that got floated by somebody. >> it's a good point you make on both regards in that yes, we've been down seven straight days on the dow but you're not looking at a 1.5% loss.

these have been incremental moves. the second point on the biogen things is biotech stocks have had a reboot. they've worked real well since over the last six months. the ibb, the biotech etf has done well. does it last, do you think? >> look, i think that once again, we're back with big farm la looking for small pharma trying to buy something. what's happened if you don't hit like a micro buyom the stock gets crushed. i'm looking for regeneron to be the tale. celgene reported better than expected numbers, they have for the last several years and went up. where regeneron could do the same thing the tell if the thing is back or not. the biogen was kind of like, i don't know, thought it was bush to be able to have that story. that story is not exactly been confirmed by people. >> yeah. >> you can float anything. i mean, david and i sit here and we constantly talk about the idea it's a very easy to say it's going to be blah-blah-blah and blah-blah-blah, talking to

so-and-so. guys talk. that's what people do. investment bankers talk. to get it quoted, david sitting here i could easily turn to him and say hershey, 120. >> yeah. >> and then suddenly it gets like hey cramer thinks. no. let's do reporting. do reporting. >> all right. we'll see you soon. >> moon shot. >> look forward to it. moon shot at 9:00. back after this.

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that does it for us today. scott, want to thank you for being here. >> thanks. >> and watch later today for scott and join us tomorrow. time for "squawk on the street." ♪ good morning. and welcome to "squawk on the street." i'm david faber, with jim cramer. we're live from the new york stock exchange. carl quintanilla is on assignment in rio. let's give you a look at futures again. we are set up for another lower open, perhaps another day lower on the broader markets. that would make what seven or eight in a row. >> eight. >> eight. this would be eight. >> yeah. >> europe, see how that's going if we want to get a tell it all on our markets. it's another bad day but not as badte