live from new york where business never sleeps, this is "squawk box." good morning everybody. welcome to "squawk box" here on cnbc. i'm not sure why we're playing this song. but i'm becky quick. andrew is to the right of me, joe kernen is off today. >> i don't want to be -- >> sitting in for us this hour is steve forbes. chairman and editor of forbes media. great to see you today. >> great to be with you. >> stuck in the middle. >> a lot to talk about. we'll be rolling out an economic plan and stief will fill us in and talk about those details. in the meantime, let's look at the u.s. equity futures. on friday, the s&p 500 and the nasdaq setting new record closing highs. niece are all-time highs. you can see this morning that there are green arrows once again this morning with the do you futures.

in asia overnight, markets there also closed higher. the nikkei was up by 2.4%. hang seng was up by 1.5%. the shanghai composite up by 1%. in europe, in the early trading, again, more green arrows, the dax is the biggest one of the major advancers. right now, german markets up by .8%. the cac is up by .4 of a percent much the ftse at .1%. crude oil prices were lifted by renewed talks by opec members to restrain output. we saw that ground pick up on friday and this morning, wti is up another 1 1/3 percent. >> moss cow is ready to discuss an 'ol production freeze. here are the stories to watch. not a good day to fly delta. thousands of passengers around

the world experiencing delays this morning due to a system wide computer failure. delta saying our systems are down everywhere. that's in response to a user complaint. at delta news hub tweeting, due to a computer outage, flights awaiting departure are delayed. flights on route are operating normally. customers should check the status of their flight before heading to the airport while the issue is addressed. meantime, passengers are reported delays at airporting, including london's heathrow, tokyo and l.a. britain's top corruption investigator opened a probe into airbus. specifically, investors will look in their use of overae seas consultants and fraud, bribery and corruption in connection with sales. japan emperor akihito making a rare video address saying he might step down. the 82-year-old saying it may

become difficult to fulfill his duties. while he has no political power, he is a revered figure in that nation and will be unprecedented in modern japan to have an emperor, guys, step down. >> that hasn't happened in about 200 years. >> you never hear from him. >> once a year. christmas greeting. >> this in particular back when they had the nuclear accident. >> right. >> he actually addressed the public at that point too. it's been twice he addressed the public. corporate news this morning. talking about japan. the fair trade commission raided the office of amazon japan on suspicion of anti-trust practices. this according to a report in the nikkei. imposing conditions on retailers of forcing them to sell products at a lower price if they were advertising on other online shopping sites. we're talking about shopping, walmart set to acquire the online bulk retailer jet.com. we talked about this transaction last week.

that deal expected to be about $3 billion. it should be announced today. likely while squawk is on. we'll bring that you news as it happens. >> buying mattress firm for $3.8 billion. it will pay about $64 per share. about 115% premium to the mattress firm's friday closing prices. quite a premium for a mattress firm and that's the name of the company and how firm are the mattresses? >> i like soft mattresses. >> has anybody tried the mattresses that fill up with air? >> i own it. >> do you? >> what do you think? >> it's pretty cool -- i don't want to give a commercial for the company. there's two sides. i'm a flopper. as you might imagine. so it does not disturb. >> good. >> can you jump up and down on them though? >> due to my excessive weight, i may puncture said mattress. >> brian is very tall for those

who don't know. >> tall is a euphemism for heavy, i appreciate that. >> you're 6'4"? >> yeah. you can look for the first read on labor costs a on thursday, we'll be getting july import prices and on friday, july retail sales, producer prices and august consumer sentiment. we have made it through the bulk of earnings season. 17 s&p 500 companies reporting. we'll hear from coach, disney and solar city on tuesday. on wednesday, michael kors and shake shack. nordstrom on thursday. rounding out friday, we'll hear from j.c. penney. gawker news. they're engaged in preliminary talks with hulk hogan to reach a settlement. concerns of $140 million court judgment over invasion of privacy that led gawker to file for bankruptcy protection.

similar talks have taken place throughout the legal process. no agreement was reached. this coming a week ahead that will see -- deal now could allow hogan to cash out without waiting for the bankruptcy proceedings and to some extent, you might imagine who peter teal, the goal was to bankrupt the company and put it into this position. he may have already succeeded. if you remember, very interestingly on this show, nick denton, we asked him if he talked to peter teal. he wouldn't answer the question. he said i might have. >> he said if i had i wouldn't tell you. >> twice. >> that goes a little bit to this. >> all right. there's a developing story out of pakistan this morning. a massive bomb went off on the ground of a government-run hospital. in the southwestern part of that nation. police say at least 53 people are dead. dozens more are wounded. no group immediately claimed

responsibility for the bombing of a hospital. back in business news, july's jobs report blowing past the estimates with employers adding 255,000 jobs last month. it is the second solid report in a row for the fed to chew on. this week we'll be hearing more about the strength of the consumer with earnings reports from the retail sector. joining us to break down the report is jim o'sullivan. along with our guest host, steve forbes. steve, i want to talk to you about a lot of different things today, including donald trump's plans. let's start off with the jobs numbers. what does this tell us us about where we stand? >> it shows us what we should have been doing. getting job creation. we're with an economy that's going 30, 40 miles an hour. get a good report, disappointing report. earnings is not what they should be. business investment is not what it should be. new business creation not what

it should be. good news, bad news, we're in a rut and that's what has people anxiety. >> jim, how would you characterize what we're looking at? >> well, when you look at the last two weeks, the big numbers, employment report last week, gdp the week before, to some extent they characterize the recovery. employment growth has been strong throughout. i don't think it's just in the last couple of months. we've been getting basically 200,000 a month for the last several years, which is pretty strong relative to the demographics. you put them together and productivity has been weak and tomorrow, another pretty weak productivity number. strength or weakness, you point to -- or to gdp. they're both out there. >> people think the economy is weaker than the headline numbers tell you. they're saying that the jobs report isn't showing you everything. a lot of people have stopped looking for a job. that's the constant refrain i hear from people.

how do you think it is? >> there is a question within the employment report. do you not have a job and you're not looking for a job. but you would actually like a job. therefore, you are not count -- that number did go up in the early part of recovery and not quite br it was. that number has come back quite a bit. you look at surveys. confidence and they ask people about perception of job market availability, et cetera. you align that with the unemployment rate and it looks consistent. i think it's a consistent story. the labor market has improved. it unemployment a perfect number? is it company touring everybody? it's not clear that it's that different. >> when is the fed forced to act? >> their own estimate of full employment is 4.8. maybe the real number is higher than that. it's not dramatically different from the number. the wage numbers are starting to drift up. in the meantime, they're worried about downside risks, global developments, et cetera. they're not sure what's neutral

for the fed funds rate. i think ultimately they have to tighten. >> go ahead. >> for now, obviously, they're signaling that extremely cautious and not ready right now. >> steve is it fair to say you think the feds should hold off if the economy is weaker than a lot of the numbers indicate? >> i think the actions have been hurting the economy rather than helping it. when you have -- that skews the markets. deforms the markets. loans are small in new businesses, they have not is had the growth they should. apple doing bond issuance for financial engineering. not the best use of capital. the fed allows them to set the rates instead of manipulating them. you see a stronger economy. this idea -- >> you think it's the fed's fault or the obama administration's fault? >> it's both. in terms of massive regulations. in terms of taxes going up instead of down. but the federal reserve's role has been totally underestimated

in terms of perversely hurting credit markets, not helping them. if necessity allowed the markets to set rates, you'd see a healthier -- this idea that they're helping the economy by suppressing prices is not working. >> does that mean you think they should start raising rates immediately and what's a normal rate at this point? >> ideally, if rates were set by the market other than their discount rate, you wobt see them too much higher than they are today. noerd, let the markets work o. >> it's not just the fed. >> sure. >> zero or negative interest rates everywhere else in the world looking at us at 1.5% or 1.6% for the ten-year. looks like a better yield and pushes the yields down. >> well, what you see around the world, you see with the european central bank buying every bond

they can lay their hands-on -- [ overlapping talking ]. >> they've hurt their credit markets. japan has been on this for 25 years. it's been a disaster. their economy has been stuck in the water. europe, stuck in the water. why britain, bank of england there, now going to do some of this when they've backed off. it's perverse. they're going to hurt the economy, not help out. >> can the fed swim upstream when every other central bank -- >> if the fed takes the lead, other central banks will eventually follow. you get a more normal credit market. good. it distorts the markets. hurts, not helps. this is amazing that they've been doing it for years. it's failed for years. yet, they're never called -- >> we're on literally and figuratively an economic island in merng. >> in relative terms, we're better than other countries. for sure. europe is not declining at this point. but no, we are clearing in a

different stage and certainly there's nothing for -- that limit us as well. it doesn't mean it can't tighten. >> let's talk about donald trump quickly. we're expecting an economic speech from him later today. larry kudlow gave us some details. i see more details from steven moore in usa today. what do you think about what he's going to be announcing and how much do you know? >> the key thing is, the contrast is going to be, donald trump cutting taxes, hillary clinton raising taxes. what's been amazing. even though hillary clinton wants to appeal to republicans, she's not changed at all her left wing bernie sanders-like economic program. she wants increases in income taxes, estate taxes, gun taxes, soda taxes. every kind of tax. this is trump's opportunity to get his campaign back on track. they're going to propose a 15%

corporate tax rate. propose other tax cut. >> part is getting rid of estate tax, getting rid of a lot of other taxes. the problem is, he hasn't explained how he's going to pay for t the taxes are a small part of it. [ overlapping talking ]. >> >> the key thing is the irish have shown or the british have shown to a lesser extent, if you lower the corporate tax rate, it has an effect on the economy. >> [ overlapping talking ]. >> the cost over ten years has gone from $10 trillion to 2 1/2 or three. >> about a third of the cost of what it is. some estimates put his current plan at 11 or $11.5 trillion. that's not the clinton campaign. >> but the thing is, he's going to have and this is what people will focus on.

it's a pro growth thing that will provide relief, boost the economy, help your paycheck. that's the key thing. he's going to contrast his approach with her approach. and why she is going, doubling down, tripling down on big tax increases, including a crazy soda tax. you saw how well that went in new york city. >> can he stay on message with that? >> this is the whole heart of the campaign. it's third term versus temperame temperament. >> shot himself in the foot repeatedly. >> if you saw him on friday making that endorsement announcement, that was a chagrin man who finally realized his campaign is in trouble. if he doesn't change it, it's over. >> do you think he can stay the course on that? he takes to twitter and attacks everyone who attacks him. you're going to bring a knife to the fight, he's going to bring a gun. >> when you have 100 days to get the biggest office any human being can have in the world, it

might focus the mind. keep on it. >> okay. we're going to take a quick break. we're going to have a whole conversation about donald trump and hillary clinton with you in just a minute. thank you for staying here. you're not sticking around. but nice to see you, sir. >> thank you. donald trump and hillary clinton set to deliver economic addresses this week. jeff harwood joins us to talk about trump's speech and we'll continue this conversation with mr. forks. he joins us in a moment. the first stock index ♪ (musicwas createdughout) over 100 years ago as a benchmark for average. yet many people still build portfolios with strategies that just track the benchmarks. but investing isn't about achieving average.

it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmarks.

donald trump to unveil details. he'll be delivering that speech in detroit around noontime. that's where john harwood is this morning. john? >> good morning, andrew. i don't know if the detail part of that. i talked to a policy adviser last night who said this is a vision speech. we'll be giving details later on our tax plan and on our child care proposal. let me run through the highlights of what he's going to allude to. he's going to propose making all child care expenses for all families fully deductible. this is a competition with

hillary clinton's proposal to limit a family's child care expenses to 10% of their income. don't know details about how much that would cost or how it would be paid for. but trump is going to allude to that. he's going to allude to a moratorium on new regulations. of course, donald trump talked about repealing dodd/frank and he's saying in the meantime, we'll put a full stop on that. he's going to reiterate which' has talked about before, support for a 15% corporate tax level. that's not new. in terms of the deficit impact, steve moore and larry kudlow have talked about reducing the cost of his tax plan from $10 trillion as estimated after growth by the tax foundation to something like 2 or 3. when i asked a policy adviser last night, the answer was this is not a tax speech. this is a vision speech. i don't know what we're going to

get. let me run through estimates that moody's analytics did of the plans as we understand them so far. on jobs, effects in 2020, clinton would add 3 million. donald trump would subtract 7.6 million. because the moody's analytics, a team led by mark zand i has said that donald trump would lead to a recession. his trade policies, the deficit that is he would create. secondly, effect on gdp in 2020. clinton would add $300 billion. donald trump would subtract $1 trillion. the effect on the deficit, clinton's would add to the deficit astrum ps would. $85 billion in 2020. donald trump adding a trillion dollars to the deficit. that's where we stood after the two candidates have released what they have so far. whether donald trump is going to fine tune details today or later, we don't know yet.

>> john harwood in detroit, we'll be watching that speech and waiting to hear your thoughts. afterwards, we'll continue this conversation today. steve forbes is the chairman and editor in chief of forbes. here's what i want to tell you. this is from the economist magazine this morning. after donald trump announced who his economic team was going to be. the result of trump's choices of advisers is that the economic policy remains unpredictable because promises are detached from economic reality. it will reduce wages rather than raise them. he cannot cut taxes, leave social security untouched and reduce the national debt all at once. he goes on to say the consequences for the economy could be grave indeed. why are they wrong? >> well, just take the economist. we have the brazilian olympic games. they had a cover story seven years ago. brazil is going to be the new giant economic power of the world. we saw where that prediction went. in terms of the specifics on what trump is --

>> magazine man remembers a cover we're competitive. >> i get it. >> getting to the point here, on the trade things, that is a real downer. what we're going to hear in the speech today, i think, is the beginnings of a way in which more of a european type of system. rebate at the border some business taxes. do what the europeans do, kosher under international trade agreement. that way he can say i'm doing something about trade without blowing up the whole system. >> how do you feel -- we'll see if we get a hint of that today. on the corporate side, in britain and the greater extent in ireland. when you get that tax low, you remove barriers from bringing profits back from overseas. that's going to be stimulative. we have said this doesn't cost a lot of money, gives you running room to do other goodies like child care and whatever else to throw in there.

>> i want to ask you about donald trump's judgment. i imagine we'll have this conversation on thursday when she gives her speech. putting aside the merits and you're good at staying on message when it comes to the economy. he says his words trump's words and actions are shockingly unacceptable in our diverse and democratic society that simply unthinkable that donald trump could be our president. >> well, even though he's had a rotten two weeks, he's still 38, 40, 42%. which shows the dissatisfaction of the last eight years, ten years. >> people talk with it being unforced errors, if you will. >> not just about unforced errors but the implications of them. you have come on this show and talked about how people's words, unto themselves, can have a huge impact on teconomy. >> what is hikts doing, bringing up e-mails begin.

not once but three times. getting a quadruple of pinocchio from the "washington post." what does that say about her judgment? we have two candidates who can't seem to get out of each other's way. >> there's a deficit, what does that say about america, steve? >> people are throwing up their hands. which is one reason that gary johnson and jill steinare starting to get traction in the polls. >> who are steinand johnson going to steal the majority of votes from? >> the conventional top of the head would be johnson more trump, steinmore hillary clinton. but you don't know. this is where the first debate will be critical. having had unforced errors, both of them trying to get an economic package out there. you're going to have more people watching that debate than of watched the super bowl or anything else. how these candidates present themselves in terms of temperament and commands of facts, they make a good impression or can they make a

good impression, all of this stuff begins to recede away. trump did hurt himself badly after the convention and he got some steam ahead. the crazy thing on e-mails again, what's going through her mind. people are saying, we want to get to know these people better. you have to look out for, one way or another, e-mails are coming out. one way or another, tax returns are coming out. so stay tuned. >> talking about tax returns coming out, do you want to -- >> of course, we want to see everyone's tax return. we put out lists on these things. one way or the other, those details will come out. >> do you think we'll see trump's returns before the election? >> i think we'll see details of his financials before the election. one way or the other. just as i think we'll see more of her e-mails before the election. one way or the other. >> does this become an election about whoever is taking the most headlines loses? whoever is getting the narrative -- like this is an

anti-front-runner. >> both of them have gotten the message. if you don't stick to substance, you're going to be trouble. when people vote on personality or temperament or things like that, you're uncharted waters. trump is trying do it today beginning with the economic side. she's going to try to do it later on the economic side. the key advantage for trump today, he can key it. i'm nor tax cuts, she's for tax increases. you don't win by being tax increase advocate. especially if she keeps piling on new ones. >> the same of either plan. if you start getting into uncharted territory with the amount you're giving back without finding ways to raise revenues. people are concerned about that. >> one of the things we've seen, you've got a little bit of economic growth. the revenues come in above expectations. you saw it in the july numbers. this is a powerful economy.

you've got sustained growth. >> we're due for it after seven years. >> you think that we're growing? what do you say -- >> 2%. the fact that it's 2%. we get some revenue. by u.s. standards, having seven years of 2% growth after sharp downturn is miserable. that's european-style stuff. one of the advantages we've always had as a developed country, even though we're the biggest one in the world, u.s. grew 50% faster than the last couple of decades in japan. so we're due. we should be averaging. >> [ inaudible ] >> the batting title. >> the world is relative, right? >> relatively bad. which is why you're getting this nasty politics all around the world. not good stuff. we need real growth. >> john harwood report. moody's analytics is saying that trump's plan will add a trillion dollars to the deficit.

>> yeah. i've been around long enough, i can come up with any number you want. the key thing is -- >> you think it's where someone says figure a way to get to this outcome? >> the question is what, are the barriers to growth. regulation, huge. especially with the uncertainty also about health care. tax rates, huge. that's where her higher tax rates are going to hurt her, i think. you look around the world. the countries lowering taxes, sweden, ireland, britain, doing better than those raising them. look at japan, back in recession again, come on guys. steve forbes going to particular around. thank you. we got a lot more to do on deck for this monday, computer problems grounding delta flights around the world. we're going to get an update from newark airport, next. plus, suicide squad shattering box office records despite dismal reviews. that story ahead. as we head to break, look at the

s&p 500 wirns and losers. surely, you can't be serious. >> i am serious and don't call me shirley. >> are you telling us absolutely everything? >> not exactly. new technologies make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement with innovative platforms and solutions.

our population's growing healthcare needs present growing opportunities for our clients: to advance the future of medicine with digital, and improve the quality of lives. ♪ mapping the oceans. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job? my job at exxonmobil? turning algae into biofuels. reducing energy poverty in the developing world. making cars go further with less. fueling the global economy. and you thought we just made the gas. ♪ energy lives here.

it's time to♪discover that in a lexus suv... ...there's no such thing as adverse conditions. ♪ come to the lexus golden opportunity sales event this is the pursuit of perfection.

good morning. welcome back to "squawk box." 6:233 in the east. we'll start with gas prices. the average price of regular unleaded dropping $.06 to $2.16 per gallon. that is $.55 lower than a year

ago. since the peak on june 3rd, the price as has fallen by $.21. lundberg analysts say the rye bound means the slump in gasoline, though, could soon be coming to an end. becky? >> at the top of the box office this weeng, the suicide squad drew a record crowd. the warner brothers film earned $135 million. despite bad reviews by the critics. the movie rated 26% on rotten tomatoes. coming in, in second place, super spy jason bourne is back in action in the latest movie of the series. jason bourne came in second place and raked in $22.7 million. now we get to talk about the olympics. that's why i wore this today. if you went to sleep early last night, here are the highlights from primetime in rio. we saw our first glimpse of the women's gymnastics and swimming in the pool for gold. jay gray reports.

>> waves in the olympic pool led by katie ledecky who shattered her own world record winning gold in the 400 free. >> feels good. it was great to be up will on the podium. >> that top spot is a place michaelful phelps is used to. his team edged out france. >> in the gym, the american women looked almost unstoppable. nearly sweeping the qualifying events as a team. simone biles and aly raisman securing a spot in the all around individual competition. >> we're ready to compete in finals already. >> they'll get that chance on tuesday. while the men will be back in action during the finals. the u.s. team currently in second place. jay gray, nbc news, rio. >> thanks, jay. both ledecky and phelps are back in the pool today and kerri walsh jennings and april playing

under the lights in copacabana beach in beach volleyball. >> explain the jacket. >> this is the -- >> turn around. >> can you get a look here? >> this is the jacket that the flag bearers wore on friday. mr. phelps was wearing one as well. >> can we dim the lights. i want to show one piece of this jacket off. can we dim the lights? is that possible? anyone? >> it's possible. >> it is not possible apparently. >> however, here's what's -- this has -- it's an electronic blazer here. i'm going to turn around. can you see the back here? >> yeah. >> now i'm going to turn it on. >> sit up straight. >> okay. >> i'm turning it on. can you see the difference? >> turn it off. >> you can tell. lights up a little bit. has an l.e.d. inside usa. i'm turning it off. that's off. >> it's on. >> no different. >> but you can tell in person. >> well, there it is. >> it's a cool jacket. >> you and meikle ale fps are

the only two that have this. >> i believe there's 20 or 30 of them made. some of the players didn't turn them on. they were told not to on friday night. the light is just a little bit of light. it helps in the night. >> when you first described it, i thought it was going to be neon or flashing or have lights all the way around it. classier than i was anticipating. >> we're going to talk more about this coat. can you see this? it lights up a little bit. >> we'll vouch for it. >> it comes with instructions that says do not wear in rain. i could get electrocuted. >> don't sweat. >> i'll try to avoid sweating. that's hard on the set sometimes. some of the conversations get heated. >> and the lights don't dim. >> exactly. >> which we just found out. >> cool jacket. delta says flights are grounded nationwide after a system outage. nbc's tracy strahan joining us from newark airport with more. tracie? >> reporter: it's never a good morning when you wake up for an early morning flight and greeted by sorry.

but that's the status for several passengers going inside here at newark liberty airport trying to check in on the computer kiosks. the faa and delta are confirming, this is all because of a system wide outage. it's grounded flights indefinitely worldwide. exactly what the issue is, they haven't been able to pinpoint it yet. it's led to lengthy lines at airports across the globe. delta says in a statement, this is not impacting flights that are already in the air, which is certainly the good news in in. it has grounded flights and prevented them from taking off. when it's going to happen, we don't know. passengers don't know either. delta said on the website, that the computer outage is happening. they hadn't acknowledged it until about five minutes ago. a lot of passengers showed up at the airport were greeted by the bad news. >> didn't tell us anything. i didn't get an e-mail or anything. nothing. it says sorry. an agent needs to check me in. usually you get a e-mail or

something telling you that something is wrong. we didn't get anything. >> reporter: certainly a bad morning for the nation's number two airline. the lines have been growing here at newark liberty airport and will continue to likely do so. delta hasn't exactly pinpointed what in the computer system is the problem this morning and has led to this outage. we'll continue to try to update you as it's available. guys, back to you in the studio. >> tracy strahan in newark. you brought up a good point. probably didn't send an e-mail. >> if their system is out, they probably can't. which is why they've used at this time twitter. it's an outside computer issue they can get to. >> can we put it in. so many companies everywhere you go, major problems happen. companies use the same canned phrases. we're sorry for the inconvenience. >> what are you supposed to say? >> something else. >> when they don't have the kind of orange juice you like, that's inconvenience. having canceled flights is not

an inconvenience. it means you don't have -- >> commit suicide. >> some kind of -- in japan, they would just resign. harry caray yourself. >> just in general, everybody is like we didn't have your hotel room, you have no way home and no place to stay. sorry for the inconvenience. >> it's a little more. >> when we return today -- >> how about some cash? >> that may be coming for a delta customers. this is all we're getting off of twitter now. anything else to come, will not come from twitter. >> 10% of america is even on twitter. stock wants to change online ad game and using artificial intelligence to do it. the company's ceo will join us next onset. right now, as we head to a break, take a check of the european markets. just like here, where the futures are indicated higher, you see green arrows in the

early trading in europe. the dax is up by .9ers of a percent. stick around, "squawk box" will be right back. this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t.

at ally bank, no branches equals great rates. it's a fact. kind of like grandkids equals free tech support. oh, look at you, so great to see you! none of this works. come on in.

a picture worth a thousand words. the stock image company incompetent corporating artificial intelligence eliminating a need for key words. the founder and ceo of shutter stock is here. steve forbes, this is a stock you wish you would have bought the beginning of the year. it's up 77% so far. congratulations to you, sir. what have you been doing right? >> we've been executing every quarter like we said we would. the past few years have been exciting. as we move into a more mobile company, more international. a company that's using all the tech available to us, to sell as many images as possible. >> that was a layup to the question, what are you doing right? . the question for most is whether this can keep going in terms of the momentum that you have. you had to deal recently with

google. you can tell us about that and explain the artificial intelligence piece. >> so in general, companies need to get more visual with their communication, with their marketing. look how they speak to their customers. the images are changing every quarter, every month. that's why they keep coming back to us to get more and more of the imagery that we sell. as far as the google deal goes, it's similar to other partnerships we've done with facebook for instance. we integrated into their ad builder. when someone comes to facebook, a business comes there, they want to create an ad, they need an image. often that's a blank page problem. where do you start? you have to find a image you own that's commercially released, that's ready to be purchased. we're there and if you have a subscription, you grab the image. >> images are being sold every second? >> that's right, yes. as you create the ad, you can get that image -- >> if i'm creating an ad for

squawk right now, how much do i pay for a photo? >> there are different -- >> beautiful shot there. >> it's free. the pictures are free sf. >> no, no. not from us. the deal with facebook much facebook pays us. you'd be paying a dollar or two per image. >> fair to say that facebook is getting a discount because of the bulk that comes through. >> there are a lot of terms to ha deal. facebook does use a lot of images. >> do the monopoly of facebook and google in advertising a good or bad thing? >> probably a bad thing getting better as facebook's presence in -- >> are they getting better? >> yeah. i think that facebook is becoming more and more contender in the ads biz. they're showing more and more impressions. we see image using go up.

i think their ad units are more creative than google today. google is catching up. the text-based ads will change to be more visual over time. >> snapchat, is that -- with you yet? >> they do buy images from us. just like many of the other companies that do similar things. their ad units are different in that they're using images that come directly from some companies. as they open up their ad platform wider, like facebook and google, every company on earth is not going to have the images ready. >> are you officially an ad play? it's different than the way people thought about you two or three years ago. >> no, no i don't think so. a lot of our images are used in sties advertisements. but many are used for communication. a lot are used for social advertising. a lot for social messaging, communication. >> when we teased this, we talked about a.i.

what are you doing about that? >> sn. >> we're trying to reduce the dependency on -- when someone contributes an image and provide key words fort it's in their local language. if we can get information from the pixel data and translate those key words, we get much more self- -- [ overlapping talking ]. >> about 60%. >> once you've knocked off facebook and google, it gets harder. >> they're a very small part of our revenue stream today. we sell to 1.6 million businesses around the world from the nmt graphic designer to the biggest agents in the worlt. we don't depend on them at all. those are relatively new partnerships. is there a takeover premium?

$2 billion company now. >> yeah. >> do you think of this company and think i want to be running it independently five years from now or do you think one of these, facebook, google or one of these others say to themselves -- >> my plan is to continue to run this company every quarter. i own almost half of it. there's a reason why i continue to own this company. there's a reason why for the past 13 years, i've pushed into new mediums, into video and audio. we've grown by acquisition and organically. my plan is to keep growing every quarter. >> jon, appreciate you coming in. he's a scarsdale boy. we're proud of him. >> is that what you were talking about before? >> exactly. >> both of you doing well. >> he's doing better. >> coming up, steve forbes, guest shots. a-rod calling it quits/getting cut. tickets for the final game are

soaring. that story coming up next. that's also true of a good car company. people have always bought cars. but we saw an opportunity in sharing cars. so we moved fast and launched car2go in 29 cities, all around the wor. doing that required dozens of data centers, designed for speed and performance. we built our business on the ibm cloud. because that's what the ibm cloud is built for.

tmom didn't want another dog. we built our business on the ibm cloud. she said it's too much work. lulu's hair just floats. uhh help me! (doorbell) mom, check this out. wow. swiffer sweeper, andusters. this is what i'm talking about. look at that. sticks to th better than it sticks to lulu. that's your hair lulu! mom, can we have another dog? (laughing) trap and lock up to 4x more dirt, dust and hair an the store brand stop cleaning. srt swiffer ing

in squawk sports news a-rod, alex rodrigues is retiring. new york yankees announcing he's retiring friday. he's not leaving the

organization. he will continue to work with the yankees through next year as special adviser and instructor. if you would like to see his last game in pinstripes, you better be prepared to pay up. following the announcement, the average listing price for the game soared more than 500%, peak about $446 a ticket. steve, you brought up a good point as to why he may be put on as consultant. >> gets rid of payroll tax, luxury tax. suddenly he's not payroll, for the corporation, frees up for big players next year. when a player retires you don't want the salary, treat him as salary. >> removes the cap immediately. >> is he being nice to them or are they being nice to him. >> both nice to each other. going out on a high note. >> he didn't retire, was going to be released. >> especially after trades.

especially after max teixeira announced his announcement. >> pointed out through all of his games first game he played until now he made over $200,000 per game. >> not a bad business. steve forbes, not a bad business for you to be here. thank you for coming in. appreciate it very, very much. coming up, reaction to july jobs report. bob will join us next. then talking donald trump getting behind in polls. rudy giuliani with us, you don't want to miss when "squawk box" returns. ♪

inside everyone is an incredible cook, someone who can cook an amazing meal any night of the week. farm fresh ingredients, step-by-step recipes, delivered to your door for less than $9 a meal. get $30 off your first delivery blueapron.com/cook.

oil prices rising and so are equities after surprise job numbers. markets set to open on positive note. bob dahl is here to tell you where you should be putting your money to work. >> getting a grip on zika. government looking to step up and fight the virus, allergy and infectious diseases is here to tell us how to stop the spread and how close we are to testing a vaccine. and the pinstripes. >> i love this game and i love this team. and today i'm saying good-bye to both. >> a-rod's last game will be this friday and you will not believe what tickets are selling for. the details straight ahead. 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" right here on cnbc first in business worldwide. i'm andrew sorkin with becky quick and brian sullivan trying to get in the olympic spirit. futures looking a little better. looks higher s&p open three points higher, nasdaq almost eight points higher. becky. >> let's get you caught up to date on what is happening this morning. walmart will reportedly announce a deal today to buy online retailer according to rico. "wall street journal" reported last week that a deal like this was close. speaking of takeover deals, here is one more impressive takeover premium we've seen. in fact, this is one of the biggest ones we've seen in quite a while. south african retailer buying mattress retailer mattress firm for $4.2 billion or $64 a share. that is 115% premium more than double over mattress firm's

friday closing price. and bankrupt team retailer aero postal. the filing doesn't mention a price but bids are due by august 18th. >> this is not a good day to be flying delta or trying to fly delta. thousands of delta air lines passengers around the world experiencing delays this morning due to a system wide computer failure. delta taking to twitter to say, quote, our systems are down everywhere in response to a user complaint. nbc's own tracy strahan joining us at newark liberty international airport with more. tracie. >> this is a global ground stop delta tried to explain via twitter. a half hour ago ironically enough they put up to passengers on their website exactly what was happening. they tried to explain this was a computer system outage that led

them to ground flights taking off from every airport around the world. they didn't exactly pinpoint what the issue was but it certainly led to long lines nationwide. here at newark liberty airport we happened to poppins the terminal and everyone trying to check in at those computer kiosk wasn't able to do so. they got the circle that told them things were buffering and then they were told to go see a gate agent. that's exactly what led to long lines. delta saying the flights in the air have not been impacted by this computer glitch. passengers, however, weren't notified about this until they got to the airport. >> they didn't tell us anything. i didn't want an e-mail or anything, nothing. it said, sorry, an agent needs to check me in. usually you get an e-mail, something telling me something is wrong but we didn't get anything. >> again, delta posting on their website they have a computer outage that's affected flights global. they haven't given an estimate as to when things have been

restored. as customary as they always tell you, check with the carrier before departure. back to you. >> nbc publishing a photograph of a traveler at heathrow, an american guy, going back home to detroit. look at this, they had to handwrite the boarding pass. the good news is the flight will be taking off. if you're on the radio, picture a boarding pass size of paper with a stamp like from the '30s that says delta and handwritten his name and seat. he's in a good seat, too, 5c, up front. we're going "back to the future," but we're trying to get things moving. >> a bit of political news this morning, republican presidential candidate donald trump unveiling more of his plan at the economic club. expected to outline broad tax cuts and talk about trade rules. meanwhile democratic presidential nominee cap off

jobs in the economy by delivering her economic plan. that's going to happen on thursday. same city. she'll be in detroit. today she's in the key battleground of florida where she will be holding a campaign event in st. petersburg. >> it is an economic puzzle. you've got strong job growth but weak or anemic economic growth. which one will be telling the real story. steve liesman joining us with more on a debate we seem to be ramping up on. >> it's a head scratcher for sure. you've got 255,000 jobs added in july deepening the split with payrolls and growth. it's an economy running below an already low average. not only has the economy's potential downshifted from three to two but we're not even hitting two. average growth running just below 1%. yet after dipping down in may and june, the three-month average of job growth is now near 200,000. that's almost double what the fed thinks the steady state rate of job growth in the economy.

on short-term basis most economists and at the fed they side with payrolls over growth. over time they expect the two to come together. this is getting beyond the short-term here. the easiest explanation more jobs and low growth less productivity that could make feds more worried about inflation. harder measure is mismeasurement one or both of these data points are not accurate or mistiming, one is leading the other. the result is the fed may wait until the fall before hiking rates to see which one is telling the real story, guys. one thing which leads to our guest here is this means lower profits, right, if the economy is not growing and they are hiring more people and the wage is going up, i just got a report from goldman sachs that talks about this issue, and they are dealing with the split between payrolls and growth. they talk about redistribution from the corporate sector to the household sector and mind you not government forced

redistribution but market. household to corporate, at least as long as it does not mean to market selloff will generally be expected to increase aggregate demand. >> as long as it doesn't cut too deeply into corporate profits and hurt earnings down the road, that could be good news all the way around, getting more, spending more. >> putting more in pockets could be a good thing. >> back to the corporations, the people that gather the money. >> one thing we've talked about a lot here is that this has been an era when corporations have been unusually profitable. relative to the total amount of growth, companies have been -- their profitability has been high and workers have not gotten what they typically get over time. this may be a readjustment process where workers get a little more. the question is does the fed decide to clamp down on the economy just when workers are getting their piece of it? >> let's bring ebb our guest host. your job, bob, is to make money

for clients. you presumably do that by looking at economic data and analysis steve provides. i can easily sit here and make an argument the economy is better than expected, better than gdp says or just as easily make the argument the economy is actually weaker than some of these headline numbers are. how do you sort through this forest of information and come up with strategies that work? >> so the gdp was one. the employment number probably suggests something like three. the truth in the middle. we're growing two. we've averaged 2.1 since the recovery started. two as far as the eye can see. when we're at one people get scared and worry about a recession, unnecessary scare. when we get to three people get all excited and say maybe we're back. sorry, you can't have that optimism. we're growing two as far as the eye can see which allows central banks to be accommodative, which allows the economy to grind higher and earnings to follow. remember, we've been in an earnings recession, oil and the

dollar. we're lapping those now and i think we will begin to see in the second half modestly -- >> 2.1% growth enough to make money in the stock market for the next couple of years. >> absolutely. >> we've made money. is there more to be made? >> 2% will keep the central banks as a tail wind for the stock market. it will allow the consumer, which is the key, to continue to spend money judiciously and move us forward in terms of profits. that's what the stock market needs. that's not going to give us double digit stock market but give us 4 to 6%, couple points for dividends, 6 to 8 over the next five years or so. that would be fine. >> one of the good things here, bob, the fed being object hold gives the market the best of both worlds, a little better growth. i just want to know if you're interested in the mix. is that an investment proposition for you, that it looks like people are getting a little bit more money in their pocket. does this make you more bullish on consumer discretionaries or

ways people are spending their money? >> yes, it does, steve. for almost two years average earnings much higher than consumer price index. 2.6 was the number friday year over year average earnings and inflation a lot lower than that. consumers beginning to earn a little more than inflation, beginning to make progress and they are spending some money. i would add to that, don't sell short the industrial side of the economy. we've had seven months in a row of the new orders and ism surveys moving higher which i think important tends better industrial production and modest earnings growth. >> if you can get consumer spending along with business. that's baseball the push me pull you of the economy here. we've been talking a lot about three-quarter declines of investment spending. if you get them both together you could do three. >> you could do three for a quarter or two but don't get carried away. we have still paying down debt, the unwind, the great recession.

we have tax policy, which needs repair. we have regulatory issues. we're going to grow at two as far as the eye can see in my view, which is the good news because it doesn't create excesses to create a recession. >> the rest of the world pretty strong. steve forbes with us last hour. his point is we've always grown at least 50% faster than europe and japan and some of these nations, we still are, they are not growing. >> we're the best bad hughes in that neighborhood. that's the way to look like it. that's why u.s. stock market continued to outperform. >> can we fix that growth without the rest of the world adjusting, too. >> with a bit of difficulty but we can. we're big enough and isolated enough. remember, only 13% of gdp is foreign trade. we're domestic economy. we're the most isolated economy in the world despite the fact that we talk about these global things all the time. that matters for financial flows. but in terms of economic growth a little less so. >> is there uncertainty in your

investment horizons surrounding the election? >> a bit. i think when i travel and financial adviser offices around the country, the first, second and third questions are about the election. it is on people's minds. they don't know what to do. they are paralyzed. they don't like the republican, they don't like the democrat, they don't know what to do. that is unusual compared to past cycles. my view is we're going to get past this. we're probably going to have divided government and the market is going to say, okay, we move on. >> move on to where? >> move on to 2% growth. more of the same. >> is there a particular candidate you think ultimately bodes better for the market, for the stock market. >> let me give a look in the rearview mirror. in the months head-to-head polls donald trump and hillary clinton. when hillary does better the market tends to go up. when donald trump tends to do better the market tends to go down. >> we heard opposite story,

talked about trump rally. >> in the last 30 days, what i just said has gone the other way. but since the polls started. hillary clinton, you might like her, you might not like her but you know what you're getting. the market doesn't like uncertainty. donald trump, we have no clue. maybe he'll clarify it this afternoon with the economic speech. we'll see. >> we've had a split in cnbc survey talking about what he's talking about you, talking about overall they think trump is better for the economy but hillary is better for the stock market. i think it's the stability issue is the reason why they think it's better for the stock market. >> weren't they supposed to be one in the same? what's good for the economy is good for the stock market. >> with hillary clinton you know 2% growth. with donald trump you might get 4% growth or you might get a recession. is he really going to go through with china and mexico. >> what you have with donald trump is a combination in my opinion the potential for regulatory reform, which many think is a big issue for the

economy. >> you just listed that, too. >> also the tariff issue and protectionism and a certain erratic policy that's not clear. with hillary clinton you get very similar policies but you also get potentially higher tax rates and/or potentially more regulation. >> you buy the vix with trump. >> bingo. i think that's exactly right. >> the play of the year. >> roll the volatility. >> do we have a chance with donald trump of corporate tax reform and regulatory reform? yeah. higher probability with him than with hillary. that's what i think the market needs. >> one thing both candidates agree on is you can see people say you can bank on this, more infrastructure spending. we'll hear today if donald trump stands behind what he says about doubling the infrastructure number of hillary, which i think was $275 billion. he came up with this half a trillion number. then on this set on friday larry walked it back a little bit.

>> i want to hear more on how they are going to do it. how are you going to pay for it? are you going to issue a gigantic 100 year bond? raise tolls. the holland tunnel is $15, $12 a few years ago. raise the gas tax, political suicide. >> you're dating your self. it was $4 when i started paying that. >> used to be an apple orchard. >> remember when we would get a pastrami sandwich for a nickel. >> for a nickel, steve, a nickel. >> go see nickelodeon and see that new star greta gar bo. >> steve is leaving us but we'll see him. >> tomorrow. >> $15 for the toll. >> when we're back, find out if returns can came coming to the sector, outperformed s&p and dow. what's around the bend? we'll talk about it next, head to break and look at where oil is trading wti crude back 42.35.

"squawk" returns in just a moment. make them lighter? thlubricants that improved fuel economy. what company does l this? engines morefficient. exxonmob, 's w wee rking one things to make cars better and use less fue lping you sa mon and reduce e eions. and you thought we justade the gas. energy lives here.

welcome back to "squawk box" this morning. take a look at futures right now ahead of the market. we're looking in the green right about now. dow looks like open 15 1/2 higher, s&p 500 up 2.5.

nasdaq 7. >> vail resort acquiring whistler. 43% to whistler's closing price. vail on a rollup streak, bought up park city a year ago. they did park city. they have been buying up all over the country. you can get your epic pass. that's what they call it? >> is that all the parks? slopes? part of the deal. >> great deal. >> $699. >> for seven days or five days, whatever it is. >> that's what it covers in seven days because now lift tickets are $137 a day. >> or get an annual pass for your own -- all you can eat for whatever amount you live near plus $299, about $300 extra and you can go anywhere. >> $699 makes that $15 holland tunnel seem cheap. >> yes. it kind of does. >> back when i started skiing it was on wooden boards with sheep innards. i feel really old. many investors looking to

transport sector back when there were wagons to see where the overall market is headed. if you think that's a good strategy things might be looking up. lately transports outperforming dow and s&p 500. morgan brennan joining us with a look at what changed in the transports. >> hey, brian. we're going to talk about runaway train stocks, csx, kansas city, unpacific, norfolk southern. each of them is up 25% or more over the past six months. the canadian railroads have also chugged higher even with pershing square exiting 10 million share stake last week. we're seeing from rebound despite another season of weak earnings and tepid outlooks of ceos of these companies. what gives? investors anticipating a turnaround or at least stabilization in rail volumes after more than a year of declines upon declines. if you look at u.s. rail traffic

that may be possibly starting to happen. rail traffic while down about % through the first seven months of this year according to the association of american railroads has, as you can see here, ever so slightly started to inch back up sequentially, though, got to note still very weak. more interesting, some of the hardest hit commodity groups that are showing the most promise here. grain, thanks to expectations of a record harvest, we've also got coal, which is depressed. but a spotlight uptick in demand thanks to hot summer and competing prices for nat gas. a value play trading at lower multiples relative to other industrials. that is a big reversal from just two years ago. two names to potentially consider. kansas city southern, chris wetherby says for the mexico business. also norfolk southern could execute on cost savings plan it

laid out before its 2020 target. so if you think these rail stocks could chug higher, two names to consider. guys. >> thank you for that. when we come back, talk a little about a-rod. he's hanging up pinstripes. don't worry, he's not leaving new york any time soon. details right after the break. later, head down to rio where it is mid winter and they are playing summer olympics. a live report with highlights. a check on the medal count straight ahead. "squawk box" returns in just a moment. t got intereing. why pause to take a pill? stop to find a bathro? cialis for daily use ispproved treat both erectildysfction d the urinarsymptoms of bph, li needing to go fruently, day or night. tell your door about l medical contions and medicines, and a if your heart is healthy enough for sex do not take al if you take nitrates for che pain, or ademp for pmonary hypertsi, as it may cause an unsafe drop in blood essure do not dnk alcoholn excess side eects m include headache, set stomh, delayed backache or muscle ach for an erection lastinmore .

if you have y sudden decreasor , or any symptoms an aergic reaction, stop taking cialis a get medical help right away. ask your doctor about cialis and a $200 sgs card this clean w like - po everythingell? stop taking cialis a get medical help right away. it felt like i had jus ne to the ntist. it just kind of like, wiped everything clean. my tth are glowing. they are so white. crest d]. 6xaning, 6x whitening. and at two weeks superr sensitivity relief to t leang sensitivity tohpaste. i tually really li t2 whitens.ps!crest [h. p it's the whole package. no one's donthis. crest - healthy, beautiful smiles for life.

all right. in sports news today, a-rod is retiring. this after being told he would be released. the new york yankees and alex rodrigues announcing his last game friday. 696 home runs, that puts him fourth on the all-time best list. he will continue to work as adviser and instructor. if you want to see his last game in pinstripes you have to pay. following the announcement, ticket marketplace iq says average lissing price a ticket for the game jumped by more than 500% to $446.

that's the average. i'm sure there are plenty much higher than that. all right. >> we're going to talk a little about the nfl. the nfl was supposed to unofficially kick off last night but a bad paint job kept players off the field. packers and colts hall of fame game was canceled due to poor field conditions. according to multiple sources paint sprayed around felt like cement. hall of fame president said players' safety was the number one reason why the game had to be canceled. both teams remained at the stadium which instead hosted fanfest event. fans will be refunded their money. >> good thing teams sticking around to make sure they did something. >> something, yeah. >> when we come back, we're asking the question how close is a vaccine for zika, national institute of allergy and infectious diseases cdc will join us after the break to talk about this. more on this morning's bad news

for those flying delta today. check this out before you head to the airport. flights grounded because of an outage that has planes sitting on the tarmacs worldwide. more on the situation coming up. as we take a look at the equity futures, s&p and nasdaq closed at new all-time highs. this morning more green arrows with s&p up 2.5, dow up 18, nasdaq up 7.5 above fair value. stick around, "squawk box" will be right back. where, in all this, is tthstakes are so high, your finances, yo future. your finances, hodo youolve this? you don't. your finances, you partnewith a firm thvisegs hodo youolve this? and the fortune 0, and, can deliver insht pson to person, on what maers to you.

moan stanley. buthe best place t beginng with..."s"bo: i y sg etle: ow. kubono. beetle: w red trees. monkey: nothing to do with snow. rrator: ad outside t discoverncredible anals and betil plts that ce togeer to creatan unfokubo: wow!adventure. naator: so g gb your loved ones narrator: and explore a world ofossibities. kubo: come on, this way. narror: visit discoverest.org to find the closest forer park to you.

hey, welcome back. about 7:30 on monday morning. thanks for joining us. among your stories front and center, we're starting to get some bullet points from economic speech set to be delivered by donald trump later today. among them, he would reduce the number of federal income tax brackets to three from seven. he would propose a temporary moratorium on new federal regulations. meantime the price of gasoline

down $0.06, average price of regular at $2.16 per gallon. that is $0.55 lower than a year ago. get this, nbc universal parent company buying commercial television rights to eight harry potter movies from time-warner. nbc gets rights to upcoming fantastic beast franchise from harry potter author j.k. rowling. terms of the deal were not disclosed. they keep movie rights, this is tv. >> worked close with j.k. rowling for universal theme park. she helped design harry potter attractions and gave it her personal stamp of approval, too. folks, this is not a good day to be flying delta. thousands of delta passengers around the world experiencing delays this morning because of system wide computer failure. joining us from airline weekly, seth, it seems that just about

every other week or so there is some major airline that deals with some sort of computer failure at this point but this sounds a little more severe than what we're used to hearing. is that a fair representation of your understanding? >> it does. it sort of completes, american, united and southwest have all had rather major computer outages at some point in the last year and a couple months. southwest most recently also related, i understand, to a power outage locally. worldwide grounding of delta is, indeed, as big as it gets in terms of one of these outages. >> we hear about a storm or bad weather somewhere that shuts down a major hub. we know that immediately has ripple effects throughout the rest of the nation and potentially the rest of the globe. a plane can't get out when it's supposed to, can't get to the next place and can't get to the

next flight. worldwide outage in terms of back-up. how many people are we talking about? how big is this? >> just off the top of my head, probably hundreds of thousands of people, at least. you know, the problem is what's different here from let's say just some kind of other problem with the operation is that i assume they can't do anything to accommodate passengers. it's not like they can put them on other airlines if their systems were out. if you have other kinds of problems, there are things you can do if you're an airline like delta. it's going to take them a little while to recover. as you get into midweek you tend to have flights that aren't full. at some point you can roll people onto flights. there's nothing at all good about this. from an airline perspective in terms of things obviously thankfully don't involve life and death, about as bad as it gets. >> quickly, we've looked already

at handwritten boarding passes. we've seen pictures of them that have been sent out. we've heard passengers complaining they weren't notified via e-mail. you can imagine if their entire system is shut down they have no way of notifying people and actually letting them know about some of these problems. i guess in terms of a black eye, what do you rate this? what do you do to try to get people back on their side. >> delta fortunately has a lot of political capital with the public. it's an airline that's actually doing rather well. an airline, by the way, that's rather well regarded in terms of its systems. it's different from the others in that these systems are actually in-house delta systems. it brought them back in-house. doesn't outsource, using suppliers to help. so it at least starts from a place where its customers nowadays, very different from a decade ago, nowadays, they aren't going to say oh, no, not again on delta. an airline that says it gets

billions in revenue premiums over its competitors because it's more reliable. if they are doing the things they can do, you mentioned handwritten boarding passes and so forth, people will be more for giving of delta than they will be of another airline, which is not to say they will be happy. >> i wouldn't say that's true. aid great experience on delta last month. thank you very much for joining us this morning, seth, we appreciate your time. >> you got it, becky. >> apparently it's a power outage in atlanta. >> that shut down the mainframe or something? >> i'm looking at georgia power's website and there's a bunch of zones. that's what delta is reporting elsewhere. you woernd, these airlines are so monopolized. delta, i agree with your comments about them. there's so many -- you're stuck with one airline basically. you can be angry -- if you live in atlanta, you can be angry as you want about delta. if you live here, it's united. they can do whatever you want and you've still got to get on their plane.

>> not so much, i've seen encroachment into hubs. >> a little more. >> delta flight instead of united. >> where did you go? >> out west? >> some major city? >> salt lake city and on. >> big hub from delta. >> delta has always gone to salt lake. i think they bought it from northwest. >> maybe. >> brannif. >> used it as a hub, one of their hubs. >> let's move to the fight against zika florida put up millions to combat the virus. over the weekend governor rick scott urging president and congress to work together to provide federal health. dr. anthony fauci director of institute of allergy and infectious diseases. thank you for your time and being here today. >> good to see you. >> what ku tell us about the latest with south korea. how big a problem we're running against situation it's here on our shores and we still haven't seen funds approved by congress and washington? >> yeah, well, that certainly is

a difficult situation. right now we have a considerable number, well over 1600 travel related cases, main people who have been infected south central america or caribbean who they be come to the united states or even people who live here and go down there on business or pleasure and come back. given the fact we're now in summer and in mosquito season and we have the same kind of mosquitoes right here in the united states, particularly along gulf coast states that are the same mosquitoes transmitted in south america and puerto rico, it was inevitable what we're seeing now is something we would see, namely local transmitted cases. namely people who never left the continental united states but who got bit by a mosquito who had previously bitten someone who was a travel related case. that's what we've seen now in florida. we started off as one or two cases, then four. now we have a total of 16 cases that are confined to a very restricted area, wynnewood area

just north of miami. the way you address that is by very aggressive mosquito control. if you get mosquitoes under control, suppress them, then you make it difficult for that particular local outbreak to become sustained or disseminated. that's what they are struggling with in florida now, trying to keep it under control. >> dr. fauci, how convinced are you about the number of cases, 1600 people overseas. i read a study last year that suggested the number may be 30,000, 45 or 50 times. >> that's a mathematical model. i think you have to be careful with those mathematical models. there's no doubt the number is an underestimate. the reason it's an underestimate is that about 80% of people who get zika don't have any symptoms at all. they just don't even know they are infected.

20% get mild symptoms. so whenever you get reported numbers, unless you do very careful surveillance of blood tests and urine test toss determine who is infected, there will always be an underestimate. i'm not quite sure whether that 30,000 really is maybe just a little bit higher than one might have thought. we've got to be careful. >> researchers in that study admitted they are not putting this forward as an actual fact but they just said based on their best guess. >> they shouldn't because it's based on a mathematical model. >> we also know the test for zika are hard to come by and aren't all that effective in some cases, only pick up if you've been exposed in the last two or three weeks. we know a lot of people had trouble getting them in new york and a lot of places where you do have visitors coming back from south america or puerto rico. in miami they still haven't found a single mosquito they can say has the zika virus. so if it's that tough to pick up

with the mosquito population, that difficult to monitor people with this blood work, again, how concerned should we be, how assured can we be this one square mile in miami is the only place you're seeing local transmission. >> you have to look at it from a couple of stand points. if the question one is asking are we going to have disseminated widespread outbreak the way we have seen in brazil and we are currently seeing in puerto rico, it is highly unlikely that will happen. however, we don't want to be cavalier, we don't want to be overconfident. what is more likely is that we will see individual local transmitted cases just like we've seen in florida. we will see them, perhaps, in other states close by or maybe even other areas of florida. the critical issue is to make sure we get good mosquito control to prevent those local outbreaks from becoming disseminated. i would not be surprised if we hear individual reports of local

transmitted cases. we do have travel related cases and we certainly have the mosquitoes that can transmit it. >> doctor, i just wanted to ask about testing, specifically about testing people who are not pregnant. i'm going to be going to rio for olympics. when i get back i said to my doctor can i get tested so i know. >> for good reason. you're not pregnant. >> the question is, should you be able to do that or not? >> well, first of all, if you're down there and you should take a quick -- i mean this, you should take a quick look at the cdc guidelines. because for a man somewhat different than a woman. critical issue to protect pregnant women. but men also. if you are infected there, there is now evidence the virus can stay sequestered in the semen for a considerable period of time. first 62 days. the most recent report up to 90 days. we have to be thinking in terms

of safe sex. in other words, if you have no indication you were infected, could be you were asymptomatic, you should practice safe sex for eight weeks. if you clearly got infected and knew you were infected, you should practice safe sex for six months. if you have a pregnant sexual partner, wife or girlfriend, you definitely should practice safe sex for the duration of the pregnancy. >> do you honestly believe that married couples are going to go to those lengths merely because of travel to a country? i'm saying, how do we promote -- how do we say to a married couple -- you understand what i'm saying. >> the issue is it's complicated. if you're infected within a few week period, it's very easy to determine whether you've been infected by a molecular test for the virus. what is more difficult is that if you are weeks, weeks and months and months out and want

to know was i infected, one of the problems is that the blood test that's available now cannot distinguish very well between zika and other infections that are in south america and puerto rico, particularly dengue. so if you live in that area and you have the high likelihood that you've been previously infected with dengue, when you use an antibody test to ask historically was i infected with zika, it's difficult to determine. if you have never been there and just have no exposure to anything else, the test can give you a good idea whether you've been infected or not. >> but if you're a world traveler it's not going to necessarily pick up on anything. >> right. if you've been to dengue prevalent areas and you want to know from an antibody test whether you've been infected a few months ago, there's a lot of cross reactivity there and you can't definitively say it's one

versus the other. >> all right. dr. fauci we want to thank you for your time appreciate it. >> has breakers from the olympic. a look at what to watch from carl. join us live from rio after the break. latest medal count u.s. has 12 followed by china and italy. the most gold medals go to the u.s. china and australia each earning three thus far. head to the break and check out the price of gold.

farm fresh ingredients, step-by-step recipes, delivered to your door for less than $9 a meal. get $30 off your first delivery blueapron.com/cook.

record breaking day in rio. carl is there. he's been covering all this from the beginning. he joins us from the olympics. carl, we've been waiting to see you. how is everything going? >> it's going good. i like andrew's jacket. >> i'm wearing -- >> you're wearing a blazer. did you get to see the back of it, though? >> i have seen the back of it. >> get the light up to work. >> that's the problem. >> just too bright here. >> it's too bright, we think. >> it's very nice. make sure you bring that down

here with you, andrew, next week. guys, we're well into the first week of competition. a very good start for the u.s. take a look at katie ledecky from last night. 19 years old being called maybe the world's most dominant swimmer. wins gold in the 400 meter freestyle, shatters her own world record. ryan lochte himself an 11-time medalist said she swims like a guy. she now has a shot to be the third u.s. woman to win four golds in a single olympics. speaking of gold, michael phelps has now not 22 but 23 olympic medals as the men's team beats france in the 400 meet freestyle avenging their defeat from 2012. as if that weren't enough u.s. success, u.s. women's gymnastics for the first time in olympic history they lead every event of qualifications, simone biles, 19 years old, the new face of women's gymnastics expected to dominate here. these are her first games.

her teammate aly raisman advances to all around finals. a member of the fierce five who won gold in london. her parents are now a new social media sensation. watch their reaction as they lean forward and backward watching their daughter compete, absolute wonderful. the medal count you guys looked at, usa 12 whine 8, italy 7, japan 7, u.s. has three golds and more medal events today. men's gymnastics, women's rugby, men's swimming, the 100 meter backstroke. u.s. won it five of the past five olympic games. they got rookies this time so a lot of pressure to defend that gold. we're well into it here and it's a very good start for the u.s. >> our sympttomachs were all tug with every move, feeling what's there. carl, what we really want to know is what's it like on the ground there. we've heard so many stories how things were,

expectations coming into this. what's it like when you get a chance to walk around and get a sense of the whole place. >> i think fretting about the olympics should be its own olympic sport. we see it every time. we saw it in china, london, sochi. no different here. obviously economic pressures of brazil make those concerns a little more acute. i haven't had -- we haven't heard much concern about zika. i know you spoke to fauci a few minutes ago. the lines -- it's a congested city. if anything, the story is going to be the lack of attendance, a fifth unsold. even those with tickets are not going to venues because it's so hard to move within the city. we'll see if that changes. they are giving away a quarter million kids to school kids. that's why you may see empty venues throughout the next weeks. >> carl, is another story weather. they had whitecaps out in the bay. they are trying to get rowing

and sailing. it was high winds, almost impossible there. how has the weather been? >> yeah. it was mid-80s over the weekend. warm for wintertime. winds over the weekend, not only did they cancel rowing events, there's a hanging mural that hangs from the swimming venue here at olympic park. one of the panels is fabric and was torn off by the wind. the weather is not expected to get much better over the next couple of days. we're expecting rain on wednesday, maybe gets nicer on friday. but we're going to see if maybe there's some event interruption as these winds come off the coast. >> now, carl, you were in sochi, now you've been here. i was at sochi as well. they said how did you describe olympic village. i said imagine if a prison and a very boring university merged, that was hard to get into and once you got into there was nothing to do. that's sochi. what's the scene in rio, i would

assume brazilians know how to put on a show and a party. >> there's some partying going on. i don't know if you have any footage of the olympic village. it's the same. country flags hanging from balconies. olympians partying it up both before and after the event. it's the condom machines. they are going to give out 450,000 condoms. i forget it works out to about 42 an athlete. >> 42 an athlete. >> the partying goes on. that's part of olympic tradition, guys. >> two weeks. >> right. >> two weeks. dr. fauci would agree with that strategy, carl. >> can i just ask, we're more fascinated with zika here, 80s is warmer than i thought it would be there. are you wearing bug spray? >> i'm not wearing bug spray and i haven't seen a mosquito all week. if i start to see them, we'll all spray up, don't worry. >> thank you, carl. see you soon. >> see you guys. >> back we'll get bob doll's best bet.

we'll find out where he's putting money to work. dow futures up by 15, s&p up by two, nasdaq by six. stick around, "squawk box" will be right back.

welcome back to "squawk." our guest host bob doll senior asset management. a couple of hot places we might want to put our money in the next minute and a half. >> we still have to recognize brexit as a gift to the u.s. stock market. rates went lower and therefore pes went higher. i also think we have to

recognize breadth in the market improving, managers doing better. i would focus on companies that have a lot of business here in the u.s., not elsewhere. >> okay. >> unit growth and free cash flow. favorite cyclical sector technology despite its run. >> how far to go. >> best cash flow of all sectors i think continue to lead the market. my favorite defensive sector is health care, much cheaper than staples, utilities or telecom. >> we like that. anything in europe? would you touch it? >> when you can find things in the u.s. that are working, i don't think you have to go there. >> nothing in the emerging markets? >> emerging markets are more interesting. they have some issues still, yes. that's where the long-term growth is going to come. >> we talked about japan this morning? >> demographics there and europe, rallies in both -- >> any place in the u.s. you just wouldn't touch? >> utilities. >> utilities. >> stocks that look like bonds

are pretty expensive. >> twenty times earnings for a power company is ridiculous. >> writes the growth going to come from? can't raise dividends, people chasing yield. overdone. >> bob doll. >> good to see you. >> great to see you. >> delta's delay dilemma, thousands of passengers stranded after airline's computer system has an outage. the very latest on what you need to know. then republican presidential nominee donald trump will unveil more of his economic plan today. what you can expect and what it might mean for you and your "moneyball." "squawk box" will be right back. tokyo-style ramen noodles. fresh ingredients, step-by-step recipies, delivered to your door for less than $9 a meal. get $30 off your first delivery blueapron.com/cook.

mapping the oceans. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job? my job at exxonmobil? turning algae into biofuels. reducing energy poverty in the developing world. making cars go further with less. fueling the global economy. and you thought we just made the gas. ♪

energy lives here. your money, your vote. donald trump said to give one of the most important speeches of his campaign today. system outage leaving delta passengers stranded today. the latest from the airline coming up. >> all that plus silicon valley takes on senior care industry. we're going to introduce to you a serial entrepreneur disrupting a million dollar business. the final hour of "squawk box" starts right now.

>> live from the most powerful city in new york, this is "squawk box." >> welcome back to "squawk box" on cnbc, first in business worldwide. i'm becky quick with andrew ross sorkin and brian sullivan. joe is off today. let's look at the futures. remember friday s&p 500 and nasdaq closed at new all-time highs. this morning green arrows. futures indicated up 2 points. dow futures indicated up 16 points and nasdaq up by 6. picking up ground on friday and continued today by another 2%. wti trading at 42.63. >> making headlines today walmart reportedly set to finally acquire online bulk retailer jet.com. expected to valujet at $3 billion. that transaction will be announced today. meantime south african retailer

steinhov buying mattress firm. paying $64 a share, more than 100% prime to closing price on friday. this is one of the most heavily shorted stocks on the market as well, some getting absolutely walloped this morning. quickly becoming your top story many delta flights grounded today, airline getting hit by computer outage. delta warning of large scale cancellations. let's stay on the story. nbc's tracie strahan doing duty all morning long, she joins us again with the very latest. tracie. >> reporter: we're happy to have good news so far. we're seeing evidence of the situation finally turning the corner. when we popped inside we saw the first bofrding pass printed as self-kiosk. we have video of a woman holding that boarding pass like a lucky

lottery ticket. it took a lot of trying to do so. all this a result of the computer system outage that affected delta since 2:30. it led to global ground stop. any flight trying to take off has been on the tarmac or not departed since then. a lot of passengers actually didn't find out about this until they got to the airport. >> they didn't tell us anything. i didn't get an e-mail, anything, nothing. it said, sorry, an agent needs to check me in. >> it's 5:00 in the morning. i didn't expect it to be this bad. >> the nation's number two carrier apparently trying to make amends for everything endured today. they just took to twitter to tell passengers they would be offering waivers, refunds for any significant delays or cancellations today and they are warning that large scale cancellations are expected. they still haven't given an estimate as to when this computer issue will finally be

totally resolved. back to you. >> okay. thank you for that. we hope everything works out pretty soon. meantime we have some other top stories to tell you about. donald trump expects to unveil details of economic plan during a speech in detroit. that's where we find our own john harwood this morning. >> morning, andrew. don't know how many details we'll get. aide to donald trump tells me this is a vision speech not a tax speech. we are going to have trump reiterate many of the things he talked about in the past and weave them together as to how he sees the economy functioning in a trump administration. let's go over the highlights. first of all, he proposed 15% business tax rate for corporations. revamp trade arrangements, renegotiate nafta pull out of tpp he wants to put a moratorium on regulations and get rid of obama care, the obama climate plan, all sorts of dodd/frank as

well. all sorts of things he argues are restricting the economy. finally he is proposing to make fully deductible all families costs for child care. that's new. we do not have cost estimates for that. the campaign indicated they would provide those in a subsequent speech. we'll see what donald trump says today. of course making child care expenses fully deductible adds to the cost of his economic plan. it was scored by the tax foundation last year after growth as adding $10 trillion to the deficit. if that's the case, child care deductibility will add to that deficit impact. his ally newt gingrich on fox yesterday asked whether donald trump's plans add up. newt gingrich said, of course not, no candidate's plan adds up. that will be clarified in subsequent speeches, we'll find out, guys. >> thank you, john.

appreciate it. our next guest named part of donald trump's economic team. former chairman and adviser of the trump campaign. thanks for joining us today. >> my pleasure, becky, thank you. >> tell us a little bit about what we can expect to hear today? >> i heard the commentator a minute ago talk about it being a visionary speech. i think you're going to find out it's a little more that straight visionary speech but certainly will be wrapped up in an overall vision of economic growth. and economic growth more than twice what we've been experiencing since 2009. that's a good thing. it's going to focus on four main areas. it's going to focus on taxation. it's going to focus on regulatory reform, trade, and energy. these are things he's talked about before. there are new details coming

out, many of which were previously mentioned. in the first most important one he's focusing on, taxation, the single largest, most radical tax reduction since ronald reagan's. it's in direct opposition to $1.7 trillion tax increase we saw with obama and $1.3 trillion tax increase that clinton is proposing. >> although, dan, the question, we've heard a lot of details before from mr. trump. the question at this point would be how he would pay for some of those tax cuts. by some estimates, it's $10 to $11 trillion. the deficit run-up just based on what he plans. i think that's probably what people are waiting to hear more about. >> yeah, well, i wouldn't put much credence into those estimates at all. the whole focus of this -- look at it this way, becky. what happened to our budget

deficit and national debt over the last 7 1/2 years. it's gone up by $9 trillion. how well did tax increases of president obama and proposed tax increases of hillary clinton going to work when you have an actual situation where tax increases and putting excess regulations that cost the economy over $100 billion a year and so on and so on, all the things that have been done wrong the last 7 1/2 years have given us almost double the national debt. so to say that tax decreases are going to be $10 trillion, not if it does what we plan on it doing, which is stimulating the economy to growth over 3 to 4%. okay? as opposed to anemic growth of less than 1%. steve liesman talked about earlier this morning. and by the trade programs, reducing our trade deficit,

holding people accountable for trade cheating. we negotiate agreements which can be done. all these things are going to add to the economic strength. regulatory reform. put a moratorium on regulations. regulations -- excess regulations costing this economy $2 trillion a year. that is going to provide a big economic kick by getting rid of a lot of those regulations not necessarily harming the economy. >> obviously regulatory overload has been an issue a lot of people on both sides of the aisle have pointed to as being a real reason for that. when we had larry kudlow on our show friday he seemed to indicate we'd be hearing a lot of specifics in the speech today that would make us understand how this would be paid for. what i'm hearing from you some of the specifics might include freezing regulation. do you expect to have other pay fors that will offset it or is this simply the growth you expect to come in and savings from less regulatory oversight?

>> well, it's going to be those plus on the energy side he's going to work to stimulate the energy development, going to provide a lot more taxation to the coffers of the government through growth in the energy sector, adding 500,000 jobs to growth in the energy sector. all these things are going to add to the income flow. listen, what have we seen again for the last 7 1/2 years? massive tax increases, which clinton is going to increase again. all right? what have we gotten? massive regulation, putting handcuffs on our energy sector, not doing a thing to improve trade, making it worse with free trade agreement. what have we got? less than 2% average gdp growth. we have got to get our economy growing again. tax reduction in the right form is going to do that along with all these other issues, which he

will talk about. i don't want to get into stealing all his thunder today. he will get into talking about these things today and over the next couple of weeks. his plan is to come out today and with subsequent economic talks all around the country getting into the nitty-gritty details of how the tax situation is going to work, how regulatory reform is going to work. he's already put out seven-point plan on trade. it's very clear the things he's going to do there. also on the energy side. this is not a one-day phenomenon. we've got three months almost to the election day. he's going to lay out in detail every time he speaks you're going to get more and more information about what is going to be done to increase the flow of income into the treasury and to stimulate the economy. >> dan, ku speak to his plans around federal spending, perhaps infrastructure spending, one of the things people talk about all the time. especially when they talk about reagan, tax cuts, reducing regulations. they don't talk about the fact that federal spending during his

term or two terms frankly doubled. i'm just curious in terms of what donald trump plans to do. he's talked bought doubling infrastructure spending that hillary clinton has proposed. >> if any of you have followed me over the years, when i was ceo of nucor, one of the big issues we talked about was the need to rebuild infrastructure. we had a $3 trillion shortfall, actually more than that now. i was in meetings at the white house in '09 when i was told didn't have the money for infrastructure work. you see what's happened to the economy, put people back to work in building and trade and engineering areas that would have been stimulated by massive infrastructure. it's a need, not a bridge to nowhere type of thing. massive need. you see both candidates talking about it. the problem is what is being talked about by hillary clinton is not enough to get the job done. and so the fact that we do a

bigger job, yes, there's going to be spending, of course. we're going to do it with not only government spending but private sector spending. and that incocos in through all the expenditures is going to help deal with concerns on spending on infrastructure. we're talking about real investments here, paybacks for decades as opposed to giving people things that are fleeting and last for a week or two we're talking about real structural reform. >> very quickly here, opponents say you're going to start a trade war with china and that's going to be bad for everybody. exports, agriculture products, base metal and scrap. we don't actually export that much to china. do we wildly overstate china's economic importance in the world? >> no, because their economic importance comes from the

destructive of predatory pricing and massive protectionism at home. that's what we have to get turned around so we are making more things here that we can export to china and elsewhere in the world, where we're competing with china not just in china but all across the entire globe. that's what's going to happen. we're going to make a big change in the approach and we're going to bring back true free trade as ronald reagan knew it and no president since has. >> as former president of nucor you know fairly well what happened with issues. steel in particular was an industry hard hit. china has been accused of dumping steel on our markets. what's your own personal experience with the trade deals we have today? >> well, listen, it's not that they have been accused of it. it's been proven they have illegally dumped not just here but throughout the world. there are literally hundreds of cases brought by countries outside the united states against china for predatory

trading practices. break the rules of global trading. they have been won. they are going to continue to be won. what we need to do for steel, many other sectors, including automobile industry and supply chain for it, we need to stop this trade cheating and we need to get to the point where we have increased our global competitiveness. that's a big part of what this entire economic plan that trump is putting forward is going to do. each one of these categories is going to work to improve our ability to compete in the global economy. we're not against trading. we're not against exporting, we're focusing on free, fair, rule-based trading. >> dan, real quick, entitlement, one of the great planks gop been to reigning sbilgsments when it comes to social security or medicare. that's something thus far trumpb has n -- trump has not wanted to do. do you agree with that? >> what he's talking about is

maintaining the right kinds of programs to take care of the needs of our people who don't have what they need in the way of jobs and what have you. whether or not there are changes, certainly will be, but done in a way that removes waste and does not take away from the ability of those in need. >> dan, we want to thank you for joining us today. we appreciate your time. >> my pleasure, becky. thank you for having me. >> on a programming note, you can watch complete coverage of donald trump's speech right here on cnbc. that's coming up at noon eastern time. coming up serial entrepreneur seth sterrenberg, bought by google, revolutionize senior care. he joins us in just a moment. hello prashant bhuyan. co-founder of the fintech services start-up. hello watson. your analysis of social media and conversations

on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson.

550.2, to be precise, but we can always do better. enis really built into theat foundation of the company. whole foods market is engaged with pg&e on many levels, to really reduce energy and reduce our environmental footprint. for a customer like whole foods, saving energy means helping our environment, and we can be a part of that. helping customers save energy is a very important part of what pg&e does. we can pass those savings on to the environment, the business, and the community. pg&e really is an expert in saving energy,

and that partnership is extremely exciting. together, we're building a better california. welcome back to "squawk box." take a look at the futures. we're in green. opened 12 points higher, nasdaq up 4 points s&p 500 up a 1 1/2. >> seth sternberg here set to modernize industry.

got big backers signing on. seth joins us right after the break.

welcome back to "squawk box." silicone valley taking on senior care industry. on demand caregiver startups like home hero care.com now getting big bucks to disrupt multi-million dollar home care business. ceo and co-founder of honor

raised another $42 million in funding. tell us about this business. when i first met you, i think about six months ago, i thought, this is pretty cool. this could actually change the way we do home care. >> thanks for having me. really appreciate it. we want to care for our parents. i got a little worried about my mother, in connecticut, driving a little slower. how to help parents stay in their home as they age. there's $30 million industry nonmedical health care, help with daily activities of lig, things like getting out of bed, getting food, getting dressed. it's fragmented, $30 billion. 50,000 agencies across united states. that means each agency doesn't have many care pros so it's hard for them to get the best person. >> you've created equivalent of like an uber. >> it's easy to call us, go on an app, website, get best pro care for them, their parents and needs. your mom might have dementia,

someone else's mom might have cats, you need the right care pro with the right skills. >> why is this better than all the many agencies out there olly. >> simple things like if your mom has cats in her home and dementia, you want to make sure care professional is going to help your mom, is trained in dementia care, not allergic to cats, then technology to do all that routing, to charge people a little less and pay care pros more. care pros 2.5 million, we're going to need 5 million in 20 years, they are not well paid. >> shortage of people. >> what do you mean shortage. >> we go with everything from nursing schools, vocational schools. we're constantly recruiting, in satiable demand for care pros. every day people turn 65 in america. >> an uber driver may be a private citizen with a car, requires no special training. >> that's right. >> nurses are a different story. >> that's right. >> you must be taking them away

from somewhere else, nursing homes, hospitals. >> a lot of times they come from other agencies, we concentrate on enabling people to have a career in home care. a ladder up. better pay than average. enabling them to be amazing in the home. we want to turn someone that's not been an amazing job into incredible job. right now you shouldn't be flipping burgers at mcdonald's, you should be in home care. >> somebody relies on this, first of all finding somebody you can trust, count on, heavily vetted. >> exactly right. >> second of all making sure if they can't show up, if they get sick, you have somebody to fill and backfill. >> that's right. when we were on boarding our first set of care pros, we showed them how to tell us they are sick to automatically backfill them and they were going crazy over it. i interrupted the training and said why are you so excited? they said, i'm not allowed to be sick.

>> as a result you're going into someone who may have a compromised immune system, highly vulnerable. >> exactly right. we hear stories about that all the time, care pros who are ill, have to go into someone's home and making elderly person sick. >> we talk about your business as silicone bred -- is this your company or -- >> that's an awesome question. >> scalability. >> a lot of elderly drive cars, we drive cars and cars do not feel like technology. without technology cars would not work. it's the same thing for nonmedical home care believe it or not. the reason it's such a fragmented industry, without technology you cannot scale because the operations are so complex. so our customers, they think of honor as a person that walks across the door and helps them in their home getting food or getting in and out of bed. the reality is all the technology is hidden behind the scenes. those are the best tech companies, hide technology, people don't feel like they are using technology but making the

entire service better. even things like -- >> are you thinking in terms of growing across the country, do you think about rolling up other companies, buying other companies? do you think about the cost of starting in a particular city? how do you go about it? >> we're in the san francisco bay area, we're in l.a., about to go to dallas-ft. worth. we looked pretty hard could we roll companies up, could be faster. the problem is they are all so small and we're so much more efficient, we buy really small companies and probably have to remove a lot of their employees. we prefer to just go into a market and open up directly. >> what kind of premium ku pay service provider. >> at least $1 an hour more but usually higher. >> do you see that scaling up? >> absolutely. this has to be an amazing job for people. technology let's us be more efficient. using those efficiencies to pay people better so they are at a better place in their own lives so they can provide better care to our elderly is a massive part of what we do.

>> real quick before we go, political question. i saw you signed onto a letter, a letter against trump? >> i did. >> why? >> he lies a lot to a lot of people. he's against immigration. immigration is super important for the country. it's just critical we elect someone who will help innovation, will help people perform their best. >> seth, congratulations on the fund-raising. >> thanks so much. >> when we come back former mayor and new york supporter rudy giuliani. he'll join us on the "squawk" set. stick around. over there. [smokey whistling a tune] i'm guessing smokey liked that idea.

♪ ♪ ♪ just another manic monday wish it was sunday that's my fun day ♪ >> folks, welcome back. we have some breaking news. this deal we've been hearing about over the last week that walmart is set to acquire jet.com is now official. walmart is going to be buying jet.com for $3.3 billion. $3 billion of that will come in cash, an additional $300 million will come in walmart shares. this is something we've been watching very closely.

walmart obviously has been disappointed by the growth in its online sales of walmart.com. those sales have fallen to a quarter growth of about 7%. back in may doug mcmillan ceo of walmart commented this was not really something that he was pleased with at that point. we knew they had been struggling to kind of take on amazon where the growth numbers have been significantly stronger. by the way, amazon's market capitalization surpassed walmart's. walmart investing and spending. walmart announced plans back in october of last year to talk about the $2 billion it was going to be spending over two years to double down and really spend more money to bulk up walmart.com. it's been spending on additional distribution centers. it's been spending to make sure it was investing in the site. this represents an opportunity. jet.com, we spoke with the founder here over the last year since that company launched has itself struggled with its own

business model. this is something going to be raising money by charging a membership fee of $50 a year to its -- >> that would be all their money. basically they would almost sell everything at cost but membership fee would be where profit came from but that didn't work. >> three months in they had to cancel membership fees and compete on cost. similarities between jet.com and walmart they are both trying to offer every day low pricing. different strategy from amazon offered low prices and shopping around but really amazon's strength probably is that it can deliver. it's built up this distribution network. it can deliver things in two days to prime members. prime membership costs $99 a year. now in the business of delivering one day and in some cases in a few hours. >> they must be buying distribution system. you noted about walmart, walmart funds low prices by hard core negotiation, purchasing power, size, scale and experience. many of these younger web

startups like jet.com -- >> they don't have it. that's why they lose money. >> venture capital "moneyball" basically subsidizes losses on products. that model only lasts so long or until you run out of venture capitalists. >> it's worked. founder is pretty familiar with amazon. he sold his last venture to amazon back in 2010 for just over half a billion dollars. he worked at amazon a few years, left that. this was seen as something that was going to be a huge challenge to amazon jet.com. the funding is the huge issue. they were running, burning through a lot of cash. so this will give them an opportunity, jet.com, to have much more of a time line for trying to take on things like this before they would actually have to show profit and ability to bring web know how to walmart. >> i think that's probably the deal, trying to get distribution system, the web, the backing stuff maybe they don't do as

well. it can't just be for the products. walmart has plenty of products. >> mark lore, founder of jet.com and diaper.com before that is going to be staying at walmart as an executive so we'll hear more about this. this deal just crossing the wires. >> all right. let's check overall futures right now and see how monday morning markets shaping up. coming off record highs s&p 500, looks like we could have more today. we are not implied open by a big stretch. dow implied open couple points to the upside. there you go. anything to the upside of s&p, that's a new record as well. we're seeing indication sz of mildly higher open to start your monday morning. all right. among today's other stocks to watch tyson's food, $21 a share topping estimates by $0.15. top line revenue also beat beef, pork and poultry producer reported record profit margins for the quarter. takeover talks hotel operator

intercontinental hotels. china-based insurance company, here we go, guys, the one that bought waldorf and see them make over-of- offers for other companies was considering offer for intercontinental. however a spokesman says it is not considering a bid for isg. a little up in the air. in done deals. if you're a skier, it's a big one. vail resorts is buying whistler blackcomb for $1.1 billion in cash and stock. that's a fat 40% premium for whistler shares. also if you're a big skier you'll get vail's epic pass, go to whistler or blackcomb, two separate mountains connected by a tram, five-mile skee run up pan pacific, spectacular place. >> donald trump looking to put some recent controversies behind him with much anticipated economic address today. the setting for the speech is detroit, michigan. the one-time manufacturing powerhouse that is working to bounce back from its 2013

bankruptcy. joining us right now former new york city mayor and trump adviser rudy giuliani. thank you for being here today. >> thank you for having me. >> we're hearing this is a reboot of the campaign. what can we expect. >> a continuation of the campaign. now is the time to start laying out specifics because more people are paying attention. i think detroit is selected for a very good reason. detroit is a perfect example of what can happen if you follow the kind of policies that obama, clinton and these left wing democrats have. it's a city that taxed itself out of dependence. i think it's 40% of the city doesn't work. this is crazy. when i took over new york, new york was not quite as bad a condition as detroit. we had 1.1 million people that were on welfare.

we had an unemployment rate of 10.5%. we had a deficit of $3.2 billion. when i handed over to mike bloomberg unemployment down to 5.5%. i created 500,000 new jobs, brought in five new fortune 500 companies and we had a budget that was able to withstand september 11th and come out of it, even though we thought there would be a big dip, come out of it was a surplus that year because i put into effect all the things donald trump is talking about today. i lowered taxes, i reduced regulations. i made it easier on business. i -- >> detroit city is metro area 10.2, metro area 24. >> twice the average. >> one in every four adults. >> twice the average. oh, i'm talking about people out of the workforce, not just talking about people not working but people out of the workforce.

you take people out of the workforce. >> number higher. >> goes up to 40%. that is a shame. it's a tragedy and is a sellout of those people to left wing socialist policies that don't work. the reason new york city was failing is not because the people in new york are bad. the reason new york city is failing is because its policies were basically left wing socialist policies. 1.1 million people on welfare. obama has increased the number of people in dependency by 7 million. there's 7 million more people under the poverty line now since obama took office. our growth for the last three quarters -- you know this -- has been less than 2%. >> part of that was a reflection of what happened in 2008 and 2009 but obviously -- >> part of that also is the fact this is the worst recovery we've had from a recession since the great depression. the recovery --

>> has it been another crisis similar to the great depression since then, so we're clear? that's a continued talking point you hear constantly, the worst since the great depression. anything happened since great depression. >> the recovery since the great depression was massive. >> no, i'm saying has there been another event between the great depression in 2008 which you're using as a reference point. that's a talking point constantly i think to myself what's this other example that would have been so much better? >> well, the other example would have been the recession that kennedy inherited and by lowering taxes dramatically he turned the recession into a five-year boom. the recession reagan inherited, stagflation, 18% inflation, tremendous deficits he turned into a 12 year boom by lowering taxes more than anyone. basically donald trump is following the model of john kennedy and ronald reagan and, by the way, of rudy giuliani.

lower taxes, put more money back into the hands of people. let them spend it rather than government bureaucrats who waste it. the change in the corporate tax is, if i may use a trump expression, huge. i mean, it really is big. even obama would like to do that, he can't get out of his way to do it, he's not competent enough to do it. we have a 35% corporate tax. ireland has a 12.5% corporate tax. why do you think pfizer moved to ireland? because there's better golf courses. >> the corporate code. >> massive change. >> other nations -- >> we should be competitive. we should be competitive. >> but the questions to this point, we've known he wanted to cut the tax rate from 15% from 35% for corporations, we've known he's going to get rid of the estate tax, some of the things getting rid of amt but getting rid of loopholes along

the way. >> he's going to do that, take us down from seven tax rates to three. >> simplifies tax code. >> 35, 25 and 12%. still people below poverty line will not be paying tacks. >> he's talking about a big tax cut for the middle class, too. >> hillary talking about an increase. >> questions come from think tanks, how do you pay for that? works out $10 to $11 trillion over the years and that's what we're hoping to hear today. >> that is exactly what the think tank said to ronald reagan, exactly what "new york times" wrote when i reduced taxes. it turns into tremendous growth. >> because of world economic growth captured. >> think tanks don't understand how to create jobs because think tanks have never created a job. trump will bring in people to government from business who have created jobs. if you bring a billion dollars back into the american economy

and you give it to the american people, you know what they are going to do? spend it. you know what that does? creates more jobs. you create more jobs, you get more income tax. what the think tanks never do, they never properly figure out the rate of growth that's created by putting more money into private hands. if you have a choice between government and private person spending money, my choice is the private person. first of all, the private person is going to spend it in a more intelligent way. secondly, the government person i'm paying for. so any money that goes through the government we're taking -- >> that's the problem is that we say let's raise taxes over here so we can give more "moneyball" to this and this sounds good. the problem is the government captures the majority of the money and it never gets to the good end or a small fraction of it gets to the good end. >> here is how you fix it. >> how do you fix it? >> when i came bo office i was given a report by my

predecessor. the report said i should raise taxes, a bunch of other things, put more people on food stamps, this, that. i held a press conference and very dramatically through it in the ash can. how about we try something different. we're going to put people to work, require work for welfare. we're going to lower taxes and we're going to bring more businesses back. if i fail, don't re-elect me. if i fail don't, then i'm going to come back here and tell you i kept my promises. four years later i won by 18%. now, this works. we have proven this has worked. kennedy proved it works, reagan proofed it works. i proved it works. ten different governors proved it works if you lower taxes and you start cutting down government beaurocracies. how about cutting regulations? he's going to put a moratorium on regulations like pence did in indiana immediately. my recommendation to him is cut regulations in half. you know what? i don't care which ones you cut. just take them all, they go up

to the sky and cut them in half. you would see hundreds of millions of more jobs in this country. businesses are being regulated out of existence and small businesses can't start now because the cost of regulation is so high. they can't afford large law firms like the one i'm a partner in. >> question for you that's not necessarily economic. one of the things trump has said recently, he's talked about the election being rigged. it's a comment and critique that's been made recently. do you think the election is rigged and -- >> i don't know what donald means by that. if he means the media coverage is rigged, i would say yes. i would say the media coverage has been -- each year it gets worse and worse with regard to the ridiculous way in which the media covers republican candidate. romney was the 1 percenter, rich

guy who didn't care about his people, put his dog on the top of the care, bush was dumb. this comes from a republican who is paranoid -- me -- that has a reason for being paranoid, which inghimasi me not paranoid. the fact is i can tell you as mayor of new york i was covered differently by the media than democrat -- >> you don't think -- >> excuse me. with what i accomplished in new york, had i been a democratic mayor, they would have a bridge named after me. >> i think you won over a lot of democrats over the time with your results in the city. >> the media elite is beating the heck out of trump. >> to be fair, a lot of trump's issues over the last week have been self-inflicted. >> so have hillary's but you don't cover it. hillary -- >> her short-circuit comments are getting some play this morning. i hear your point. >> i don't see it all over the

"times" front page. >> you're not going to see it there. >> that's what i'm talking about. >> i will say new public antidote to "new york times" basically did say they were going to do more on the e-mail. they admit they blew it basically. >> oh, gee. you know when they will do it? in december. >> quick fact check for you, just so you know, detroit unemployment rate not 40% or 25%, it's 5.8%. the numbers you're using looked like they were from 2010, sir. >> absolutely wrong. >> i'm looking right here. >> detroit city updated recently, 24.8%. >> you come back and check it, when i looked at it, what i was looking at were the number of people out of the workforce, that includes unemployment rate plus out of the workforce. >> olympic athletes facing

challenges in rio on top of the world in all world-class competition. we're going to get a live report from rio coming up next. ♪ [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.

we've been hearing so much about how you're a digital company, so you can see our confusion. ge is an industrial company that actually builds world-changing machines. machines that can also communicate digitally. like robots. did you build that robot? that's not a robot, that's my coworker earl. he builds jet engines with his human hands. what about that robot? that is a vending machine, ricky. john, give him a dollar.

welcome back, everybody. if you're just tuning in, our deal of the morning, walmart buying jet.com for $3.3 billion in cash and stock. $3 billion in cash, an additional $300 million in walmart shares. this deal had been speculated upon and reported about last week but it is official today

that walmart is doing this deal. we can also tell you, folks, we will have an exclusive interview on television tomorrow with doug mcmillan, ceo and chairman of walmart. we'll be sitting down with him to talk about this and why they are doing this deal, what they have seen in all of this. again, make right here on "squawk box" for an exclusive sit-down with doug mcmillon. >> now let's get to the olympics, beyond the competitions happening inside olympic park, athletes in rio have the additional environmental challenges of zika and water pollution to deal with. carl quintanilla joining us again with a look at how olympians are adapting to the somewhat adverse conditions. carl? >> hey, brian. you know, the equipment that olympians use is a story at the olympics. that controversy regarg the peed skater outfits in sochi. under armor is dressing about 300 and all the teams and athletes will get gear includes multiple long sleeve pant options not just long sleeves,

u.s. soccer has 600 bottles of bug spray from sayer products a company in florida, u.s. rowing working with a north carolina company called insect shield that have treated the team's outfits with a mosquito repellant that lasts 70 washes. rowing has the most exposure to compete in the downtown lagoon contaminated by trash and sew e sewage. has outfits with no seams, covers half of their bodies, anti-microbal finish and the company that makes those spent about nine months developing the outfits. that company that is treating clothes for the rowers, becky, called insect shield, says its mail-order business, which lets you shield your own clothes has more than doubled this year. it might be more of a story as the year goes on and zika becomes more of a north american phenomena, guys? >> he mentioned me in particular. am i the germ freak, that obvious? >> i know you are the advocate

for zika awareness, becky, come on. >> i am. >> if we played zema zika i could be drunk, zema for every zika reference, but a big deal and big concern. you have every right to worry. it's moving around quickly. is it a subject of conversation in lines to buy olympic gears at the olympic can teen? are people talking about it or hey, did you see michael phelps, the guy is 60 years old and still is ripped and winning gold medals? >> yeah. i think we're all -- we're getting enveloped in the sports but i'm not pregnant, i'm not planning on having more kids with my wife but if you are, it's a legitimate concern. i think we can agree. >> carl confirms he is not pregnant. >> it's true. >> carl, thank you very much. we'll see you soon. >> up next jim will join us live from the nyse and his take on the day's top stories. stick around. the heirloom tomato.

intensely-flavored. colorfully-diverse. beautifully-misshapen. cultivated for generations, it's the unexpected hero of any dish. when you cook with incredible ingredients... you make incredible meals. fresh ingredients. step-by-step-recipes. delivered to your door, for less than $9 a meal. get $30 off your first delivery blueapron.com/cook. with usaa is awesome. homeowners insurance life insurance

automobile insurance i spent 20 years active duty they still refer to me as "gunnery sergeant" when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and i'm a usaa member for life. usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life.

let's get down to the new york stock exchange and hey, jim, you and i get together and start a specialized retailer and take a bunch of venture capital money lose it and subsidize our prices and profits but cash out and sell to a major retailer for

a few billion. >> buy the algorithm. why do we have to buy anything else maybe about 50, $60 million? >> sold. >> i mean -- >> 50 or $60 million short but willing to do the deal with you. >> if they buy mattress firm, which i thought was a questionable company, why not buy jet.com. i like the idea of taking on amazon. jet -- the site, the site looks like it's something we put together in our basement. but, you know, you never know what the guys are going to do with it. never know. >> it is funny on "power lunch" might be doing something on mattress firm bus i have an idea one of the most heavily shorted stocks of the world they're getting murdered. shorts, are shorts dead? >> i don't know. i'm busy looking at the kudlow plan. the trump plan. >> jim cramer, we're going to see a lot more of you coming up in a couple minutes with carl in rio.

thank you very much. >> when we come back more of the top stocks to watch and tomorrow don't miss our exclusive television interview with walmart ceo doug mcmillon. he will sit down with us live on "squawk box" to talk more about the jet.com deal. stick around. we'll be right back. ♪ mapping the oceans. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job?

my job at exxonmobil? turning algae into biofuels. reducing energy poverty in the developing world. making cars go further with less. fueling the global economy. and you thought we just made the gas. ♪ energy lives here. this just got interesting. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card

stop taking cialis and get medical help right away. tempur-pedic mattresses is that they contour to your body. it keeps us comfortable and asleep at night. change your sleep, change your life, change to tempur-pedic. learn how you can change your sleep by requesting a free sample of tempur material. call or click today. can an established bank move like a start-up? it's a question we get from some of our largest banking clients. the face of their business was tellers. then atm's. today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up.

big stock to watch today, walmart buying jet.com for 3.3 be there. $3 billion in cash, another $300 million in stock. tomorrow, walmart ceo doug mcmillon will join us live in a "squawk box" exclusive television interview. make sure you join us. >> "squawk on the street" begins right now. thank you, brian. >> sure. ♪ i'm winning good morning. and welcome to "squawk on the street." i'm david faber with jim cramer, we are live from the new york stock exchange. carl quintanilla is at the olympics in rio. he will join us in just a few minutes. let's give you a look at futures as we set up for the week ahead as you can see we are at least pointing towards a higher open. the european market ps may be helping, higher as well. decent tone there and a number of different areas over in