and have not heard back, but we will let you know as soon as we do. now back over to carl and the "squawk alley" gang. back over to you guys. >> thank you very much, dom. good morning. it is 8:00 a.m. at snap headquarters in venice, california. it's 11:00 a.m. on wall street. "squawk alley" is live. ♪ ♪ good friday morning. welcome to "squawk alley." jon fortt is back from barcelona. welcome back, jon. >> thank you. good to be here. >> kelly evans with us also at post 09 a friday. snap on track for another day of gains following that hugely successful market debut yesterday, up about 17% a few

moments ago. our parent, nbcuniversal, investing $500 million in snap during the ipo, as the markets look to cap off a sixth straight week of gains. we have not had back-to-back days of losses since the end of january. ggv capital's managing partner glen solomon, wells fargo chief portfolio strategist brian jacobson join us to talk about the markets. brian, and snap specifically, as this starts to clearly roll into some retail hands, what does that mean for tech and for overall sentiment? >> well, i certainly hope that a successful ipo is a harbinger of further successful ipos. you know, you saw a decline in ipo activity last year because of market volatility, so maybe we'll see a little bit more activity for 2017. for the tech sector as a whole, i think that it shows that people are still optimistic about the outlook. obviously, you can't extrapolate what's going on with one stock for the rest of the sector, especially such a diverse sector.

we still tend to favor those parts of the tech sector that are more geared to businesses and not necessarily so much towards the consumer. we think that if you get some movement on the tax front, repatriation, tax holiday, or changes to those rules, you could see some significant investment in say the internet of things, in cloud computing and the such. it's kind of those areas where businesses are more likely to be spending their capital expenditure dollars. >> glen, snap is now valuationwise worth a little bit more than electronic arts, a little less than ebay. here's my concern about the platform, and i'm wondering your reaction. it's isolated. google had search, which showed commercial intent. facebook had the like button, which sort of gave it eyes and ears across the web to know what people were doing and get a sense of what could sell. snap is relatively isolated. does it need to have that broader platform and richer data in order to command the kind of

premium and advertising they're going to need to justify this valuation? >> jon, good question. i don't think so. i actually think the snap valuation today makes some sense, certainly not on a near-term fundamentals basis from a financial standpoint. but remember, the primary interface for snapchat is the camera. it's not the keyboard. it appeals so directly to millennials who have grown up with a mobile phone in their hands. and if you look at the engagement, it is so incredibly strong. the add units that -- we're still early in the run, but the add units on snapchat performed so well today that i think industries -- like, you wouldn't release a major motion picture today without running a campaign on snap, for example, and i suspect that other industries will as well. so, i think that the users of snap are going to monetize incredibly well over time. it's 10% of facebook today. you could see 10x growth in revenue without growing daus at

all, just catching up to facebook, and i suspect they will. the data they have is very strong, and the engagement on the platform is the reason why. >> glenn, one interesting thing happening with snapchat is simply that its valuation is similar, at least on ipo day, as it was in the private market. i understand in the private market, there were preferred things, not exactly apples to apples, but can you talk a little bit about what that means? it's different from facebook, it's different from google, and what does it mean for everybody else who might be going public? >> in the ipo market, sometimes hot is cold and cold is hot. this deal looked like it was going to come cold. the negative news cycle -- i don't need to tell you all about the nonvoting stock and the valuation relative to where revenues are today. there was so much negative news on the company, i actually think that helped the deal, because the long-term investors who want to participate in a company like this, they have long memories. they remember twitter being hot and then the stock not working in the aftermarket. they even remember back to facebook and google, where those deals were cold, but the stocks

have been heroic ever since. and so, i think that the fact that snap actually came cold was a good thing for the deal. the underwriters did a great job, i think, getting it into the right hands. and now you're seeing, you know, a lot of follow-through in the first couple of days. i think that the valuation is instructive for other companies that are thinking about going public, and i suspect that we'll start to see more boards, more management teams of private companies look at a snap, look at a twilio, companies that performed pretty well once they've gone public, and make the decision to maybe start heading down that path. >> and brian, does that start to get folded into, obviously, expectations of wage growth, expectations of tax cuts, multiyear highs on eurozone pmis? you've got inflation in japan. you've got confidence here at a 15-year high. i mean, what goes wrong here? >> what goes wrong here?

i think that the key thing i'm watching, it's kind of two-fold. number one, does the fed prove to be a little bit too aggressive as far as the pace of rate hikes? i don't think that we're going to see that. so you know, that's kind of a risk that i'm willing to take, but that is something that could derail it is if the fed gets too optimistic. you always have to be a little weary of optimistic central bankers. the second thing would obviously be on the policy front. if you see a lot of stumbling and infighting amongst republicans as far as a health care bill, tax reform, and i think it's more tax reform that investors are really looking for. now, whether that's done as part of 2017's budget or 2018's, i'm not sure if it matters that much if you think about kind of a discounted cash flow analysis, but i think those would be the two key things to watch. a lot of these other risks, the political risks in europe and the such, everybody's talking about it so much, i can't help but think that it's already priced in. >> yeah, hot is cold and cold is hot, like glenn said. glenn, just real quick, can you remember the last time an ipo traded like this on day two?

>> well, twilio's a good example of a company that rallied really hard. it had a great first day and then just kept going. it's come back since, but it's still above its day one close price. so, actually, recent memory suggests there's a lot of pent-up demand for ipos. there's -- you know, if you're a public fund manager today, you've got less than 20 names, internet and software, that are over $1 billion in market cap that are growing more than 30% to choose from. there's just a lack of high-growth supply out there, and there's, you know, a ton of demand for growth. so i expect that, again, there's a lot of names of great companies in the private market that you'll see start to tap the ipo market this year, and i wouldn't be surprised if we see strong debuts from lots of other companies as well. as brian mentioned, i expect more enterprise names to come next. there's a bunch in the pipe. and a lot of those companies are capitalizing on cloud computing, and you know, the major trends involved there.

that's going to help and investors are going to be, i think, very interested in companies like that. so, yeah, i think we'll see a lot of good growth in ipos. >> i would just point out, carl, at one point during this conversation, the stock, snap, did tick above 20% gain on the day. >> yes. yeah, within a dollar of $30, if you guys can believe that, as we're talking. >> it's already 3 1/2 twitters in terms of market cap. >> glenn, brian, thank you. brian jacobsen, glenn solomon. wilbur ross on the record this morning with "squawk box," weighing in on the post election rally, taxes, trade and more. kayla tausche is in washington with reaction from the capitol. hi, kayla. >> hey, kelly. it was a wide-ranging conversation with the newly minted commerce secretary, talking about everything from his relationship with cabinet members, that controversial border adjustment tax, trade with china, and also those now-infamous $600 slippers he wore to this week's joint address. but the most market-moving comments were those on nafta. he'll be spear-heading the renegotiation of that. we're waiting on that to happen

in the coming months. and he side it's htop priority f the trade deals because before you deal with the rest of the world to use his phrase, you have to take care of your own neighborhood first. >> the theory of nafta had been gradual convergence of living standards between mexico and the united states. that really hasn't happened on the mexican side. the minimum wage for the peso has barely gone up in peso terms than since the peso has gone down so severely in dollar terms, that mexican workers are really not at all better off than they had been some time ago. >> here's how that's illustrated. take a look at this chart of the standard of living between the two countries over the last several decades. productivity or purchasing power in mexico has stayed flat since nafta was implemented, while the u.s.'s has risen dramatically. and the peso has plummeted in that time, but it actually

surged this morning against the dollar. you can see that in the dollar chart, which is down about 2%. after wilbur ross said a new nafta should help, not hurt the currency, and that he'd consider a mechanism to stabilize the exchange rate between the two. that invoked memories of a former treasury secretary, bob rubin under president clinton, who lent about $12.5 billion to mexico to stave off a currency crisis just after nafta was first implemented. it was a bailout of sorts at the time. and normally, it is treasury that controls these economic levers, but it is very clear that secretary ross will be taking an outside role in the u.s.'s dealings with the rest of the world, carl. >> kayla tausche in washington. kayla, thank you very much for that. good stuff today with wilbur ross on "squawk." when we come back, one day after the biggest tech ip nonk years, we'll talk valuations with a ceo whose own stock has had a run-up in the past year, talking about better than 400%. plus, the always outspoken lululemon founder chip wilson.

his take on retail, the consumer, the president, tax reform. and later, jeff bezos lays out his plans to bring a human settlement to the moon, when "squawk alley" returns. online u.s. equity trades...5 lower than td ameritrade and e-trade... you realize the smartest investing idea, isn't just wt you invest in, but who you invest with. ♪

welcome back. we're watching the airline sector, which is popping right now on word out of the trump administration that they're easing consumer protections on

airlines, specifically the department of transportation suspending an obama proposal to require transparency in airline fares. united you can see up more than 2% at this hour, but pretty much everybody up in the range of 1% to 2%, including southwest, jetblue, whether they're the discount carriers or the big guys. we'll watch the price action. and of course, we'll bring you any further information on this as we get it. >> yes, indeed. and advanced micro devices introducing the zen line of chips. take a look at the stock story, down nearly 12% in a couple days but in the last year up 430%! lisa su is the ceo of amd, joins us here at post 9. good morning. >> hi, jon! great to be here. >> so, this run-up has really been in anticipation of what you just did, releasing these new chips. and i haven't seen reviews like this for an amd product since the athalon in 2003, like 14 years ago. is half the price of the

competition from intel, uses a third less power. how much running room do you have with this? because intel has shifted resources away from pc development. they say they're pouring it into internet of things, data center. how are you going to be able to exploit that? >> no, absolutely, jon. so, first of all, we're extremely excited with the rise and launch. we've been working on our zen processor for four years, so seeing it actually out in the market and consumers really loving the performance is really cool. from our view, it's really a multiyear product strategy. and so, we have, you know, not just zen, but a lot of products coming over the next few quarters. and so, we see it as really a growth area for us. >> you've talked a little bit about the gaming market, which is going to be important kind of from a marketing perspective. these are the high-octane users. you've said that you're going to be able to squeeze more performance out of ry zen once they start making tweaks to their software. i think you said you've got 300 working on it. how soon are those results going

to come out that might then spur more consumer demand? >> yeah, so, if you look at ryzen what we're doing with the high end is putting an 8-core processor out there, where today most games use only 4 cores. so, there's some software tuning that needs to be done. we do really, really well for content creation. anybody who likes to run videos or edit videos and high-performance games, there are some older titles and some that we're working with into optimized software, and we expect in a matter of, you know, weeks and months, that we'll get significant improvements. >> it does seem like there's a few flaws here. i'm going to quote people who know this much better than me, talking about maybe lagging somewhat in gaming, depending on how modern the game is and how much it tasks the cpu. the shares are down today. we know they've been on an amazing run, but anything you'd like to say in response to some of these criticisms about, you know, the chips as you're rolling them out and getting ready to deploy them? >> yeah, absolutely. you know, when you roll out a brand-new microprocessor of this

magnitude, this is really a from-scratch design, and we got over 52% performance from our previous generations. so, we're really, really proud of the work. now, of course, we have to run lots of different applications, and in most applications, we run really well, either meeting or beating the competition. and in a couple of the, we call them 1080p games, lower resolution games, we're getting little bit less performance, and we're working closely with software developers right now. we mentioned 300-plus developers working. they're very excited because we're bringing excitement back to the desktop market, so i feel really good about it. >> what do you say about people who wonder how you're doing this for the price that you're doing it? >> you know, our view is, pc gaming is a great way to actually reach millions and millions of people. and there is a direct relationship between how many people can buy processors versus the price. and so, we've put out a great product. i think we're really excited to bring a core performance to so many more people. some of the first users who have

gotten it have been super excited. they see that their video performance is improved by like 50%, numbers like that. so we think it's a really good balance between spurring interest in the market as well as, you know, inferring that we have a very strong business going forward. >> patrick more head's an analyst who we talk to quite a bit. he used to work for amd. he says that amd can ship in the tens of millions very soon. i think it will leave a mark and intel will have to react. can you ship in the tens of millions very soon? >> we are very excited about the demand, and we're ramping up supply. so, i will say that we will ship millions, for sure. >> millions for sure. >> what was it like watching your stock? we're talking about it went up more than five times in like 12 months. are you watching this? some ceos will say, you know, i don't even look at the stock price. others will say, makes me a little nervous. then there are plenty of others welcoming it with open arms. what is going through your mind as this has played out? >> what i would say is it's really nice to see how many people are watching us, how many

people care about the performance that we can bring to the table. you know, it's a very, very competitive market. but what's really important to us is putting out great products. that's what's really exciting. and as the products come out, you know, i can't tell you how proud we are to be able to bring this kind of performance in. and if the stock does well, that's gravy on top. >> overclocking the stock price as well. lisa su from amd. thank you. >> thank you very much. when we come back, the border tax debate's heating up, especially following the commerce secretary's comments to cnbc earlier this morning. we'll get a live report from the border in nogales, arizona, in a moment. ♪

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welcome back. president trump vocally supporting some kind of tax of foreign imports, especially when those goods come from mexico. commerce secretary wilbur ross echoing those concerns on "squawk box" this morning. >> well, anything that affects trade will be viewed to some degree by the foreigners as an

added burden, but value-added taxes, which is very close to what border-adjustable is, are quite commonplace. we're the only oecd country, with one exception, that doesn't have v.a.t. and value-added tax is always imposed on imports and always rebated on exports. our companies are not permitted, however, to deduct the federal income tax on their exports. so, it's an unfair equation. >> well, not everyone is looking forward to change. our contessa brewer is live on the border in what i believe is nogales, arizona, from a long-ago family road trip, but that's another story. she's got more on the impact. >> reporter: nogales. yeah, so, kelly, this is a very busy border crossing here in nogales, arizona. in fact, the port of entry, the mariposa port of entry, drivers say they can wait for an hour to get through. just beyond the cars, there's a whole line of semi trucks that

you can see in the distance. the commercial port of entry. $17 billion moving through nogales every year, according to u.s. customs. more than $3 billion of that is just imported fresh fruits and vegetables. and in fact, it's the largest port of entry for mexican produce in the united states. so, when the president starts talking here about a border tax of some kind or a tariff or doing away with nafta, there is a lot of concern in the town loaded with produce distributors. chris surulli is a third-generation producer in a family business that sends mexican fruit and vegetables to supermarkets and restaurants across the united states, and he insists, nafta has been great for his business. >> it's going to affect the consumer, right? any time we're paying a tariff or a tax, it gets added on to what we're doing, so it's not the hispanics paying that. it's the people over here in the u.s. are going to be paying that tax. >> reporter: well, right now,

nogales is enjoying a bumper crop, record growth when it comes to fresh produce from mexico, especially during the months when a lot of u.s. produce isn't available. so, in winter, nogales jumps from 60,000 pounds of produce crossing the border in september, end of the summer, to more than a billion in april just at the tail end of the winter season before u.s. growers start growing. and 54% of all the produce imported in the united states is from mexico. so, consider this. if you're having a salad for lunch today, it probably came from south of the border. jon? >> all right, contessa brewer. thank you. and still to come on "squawk alley," live from the 2017 ypo edge conference in vancouver, the always outspoken lululemon founder chip wilson. plus, much more on snap's day two of trading with the stock soaring, now up more than 16%. "squawk alley's" back after this.

good morning once again, everybody. i'm sue herera and here is your "cnbc news update" at this hour. mercedes-benz recalling more than 300,000 cars and suvs in the u.s. due to a starter part that could overheat and cause a fire. no injuries or deaths have been reported so far, although 30 fires have been reported. federal authorities arrested a man in st. louis they say

telephoned threats against new york-area jewish community centers as part of a scheme to harass a former girlfriend. officials say the suspect is a copycat and is not responsible for the vast majority of threats being made against jccs nationwide. the u.n. says 100,000 people are starving in south sudan. a catastrophe not seen in the world for six years. the disaster is the result of a civil war that has uprooted more than 3 million people. and a silicon valley high school is the big winner in the snap ipo, or at least one of them. in 2012, st. francis catholic school invested $15,000 into then the privately held snapchat. that investment has turned into a $24 million stake after the company went public yesterday. a venture capitalist whose children attend the school brokered that investment. they're going to use it for infrastructure spending, among other things. that's the "news update" this hour. back downtown to "squawk alley."

carl, back to you. >> all right. thank you very much. let's get the close in the uk and across europe. we've got news regarding french elections today. seema mody's at hq. >> politics and economic news. markets are mixed ahead of comments coming from chair janet yellen in about 90 minutes from now, but that's not taking away from what has been the best week of the year for european stocks. a big winner has been the banking sector, posting a weekly gain of 4%, boosted in part by expectations of rising yields helping profitability. but back to the major european markets, again, wrapping up their best week since december. top performers, the italian mib, spanish ibex and france's cac 40. speaking of france, there are indications of a shift in the race for the presidency. a new poll out shows far-right leader marine le pen falling into second place. now in front is emanuel mack ron with 27%, le pen at 25.5% and francois fillon, who has been mired in this fake jobs scandal,

at 19%. some of his fellow conservatives have urged him to drop out of the race, and the center-right udi party is reportedly set to withdraw its own support for fillon, so the drama continues on the french election. in terms of stocks, though, on the move. take a look at wpp. it is down sharply. the world's largest advertising agency cut its current-year sales forecast, citing heightened competition in the ad market. you can see shares down just about 8% on the day. carl, sending it back over to you. >> all right, seema. thank you very much. whether it's a potential border tax, changing trade policy, or trump's tax reform proposals, executives, including the always outspoken founder of lululemon, gathering in vancouver today to discuss just how it will all impact corporate planning going forward. lulu's founder chip wilson joins deidra bosa from the conference. >> let's get right to chip. as you said, always outspoken, and chip, let's get to one of the biggest debates right now in

washington and certainly one of the biggest debates in retail, that border adjustment tax. it's under debate. now, your colleagues in the retail space have started speaking out in recent days, coming on the record talking about their concerns. we've heard from target's ceo as well as best buy's ceo. what's your take on it if it goes through? >> well, i think that the higher the duties coming into the u.s., the worse it's going to be for the u.s. the fact of the matter is, i think when you have $200 billion or more a year going into the u.s. economy because you're not shipping out money to oil in saudi arabia, u.s. dollar's going to go up. as the u.s. dollar goes up, there's almost little you can do about manufacturing in the united states. so, all that's going to happen really is that americans are going to pay more for whatever it is they're going to buy. if prices are higher, they're going to buy less, and it's all going to balance out. but probably what will happen is a lot of companies will move into cambodia or places where there is duty-free coming into

the u.s. and it's just the natural way that apparel moves around the world. >> but how does it affect a retailer such as lululemon, which you've spent a lot of time at the head of, if you're now paying a tax on goods, almost more than 70% of revenue from lululemon is derived from the u.s. how does that affect business for lululemon and retailers as a whole? >> well, i don't think we know. i think like anything else, if prices rise, you would think that people would buy less. but as i said, i'm very bullish on the american economy and the american dollar, and so, i think that they're going to have more money to spend on it. and i don't think it's going to affect the u.s. retail that much. >> so you fall into that camp, saying retailers can't see the forest through the trees, and you think that ultimately, border adjustment tax is going to improve the economy and people will have more money to spend, so it could actually be a good thing for the american economy? >> well, i don't think border tax improves the economy. i think there's two -- again, i

talked -- people underestimate what $200 billion a year coming into the economy by not shipping out oil money to saudi arabia will do to the economy. and so, and you get the multiplication effect of that. i think that offsets a whole bunch of border issues that trump may put up. >> okay, my colleague back in new york, kelly evans, has a question for you. >> hi, kelly. >> hi, chip. i love the point you made about oil. it's a fascinating one. i was going to ask about retail because every day we have headlines about another chain down 10% or more because the foot traffic's just not there. it feels like we've hit an inflection point. what would you say to mall-based retailers right now? >> well, the fact of the matter is, is that in any kind of store -- let's say it's doing $5 million a year -- if you take 20% of that amount of sales out and that's gone to e-commerce, the economic model of the store collapses. so, really what you need is

knowing, if sales drop 20%, the efficiency of the store drops 40%. and what i mean by that is then the store -- [ inaudible ] >> we're getting interference on the line. what he was just saying, and guys, it's fascinating, is that when all of a sudden, 20% of the business shifts to online and you're a retailer, you know, that's a 20% hit to the economics of the model, and the 40% drop as well in just the efficiency of these stores. so, you know, that's why -- you know, i was sort of referencing there barnes & noble, even costco has had challenges. they're a little bit different, but as we've moved through earnings season, we continue to be reminded of just how difficult it is, and he was explaining why. >> well, as chippewa ta was tale have movement in macy's. reuters and "the global mail" reporting they're not engaged in talks with hudson bay. so, you have intraday weakness in macy's. reuters also with an exclusive, quoting sources that neiman

marcus has hired lazard to help advise on some debt restructuring. so we'll see, wait for confirmation on some of those reports, but your point about department stores is taken. >> and neiman was on the eve of listening when nordstroms going back a year had a really difficult earnings period. that got pulled. i'm not surprised they're looking at other earntives. >> the elephant in the room, amazon is up around 850 bucks a share. >> i believe we can go back to deidra bosa with chip wilson. >> thank you. i'm glad we got the technical issues sorted out. kelly asked you about sort of the state of retail and how the big-box retailers have had their issues, but lululemon in recent quarters has seen improvement, raised revenue guidance, improving margins. i believe lululemon's online business is 20%. are you ready to admit finally that lululemon is doing well? i know you sparred about this a previous time you were on cnbc

with jim cramer. what's the state of the business now as you see it? >> well, it's interesting that the questions in what you just said is what everyone, every analyst, every newspaper person, and i have to say, it's quite foolish, you know? >> so, you're talking about the bar being too low. >> i'm saying that it's had a quarter of good returns. >> a few quarters. >> well, but let's look at it. the lululemon's stock is exactly where it was six years ago. the lululemon's stock is 5% less than it was when the current ceo came on three years ago. and so, you're part of that american scene that gets very excited about like 90 days of performance. it's inconceivable that that is performance. the s&p's gone up 30%. the athletic business has gone up 28% over that time, and like lululemon's gone down 5% over the last few years. is that performance? >> okay. so, you've never been shy to offer advice, and i know here in

vancouver, outside of lululemon's own headquarters you took out a bus stop ad saying lululemon should buy under armour. you're not ceo anymore, but you are one of the biggest individual shareholders. was that real? what did you mean by it? >> well, because i couldn't effect lululemon within the board that i had, because it's more about metrics and quarterly earnings, as we just talked about, i thought it was best for me to come off the board and then work publicly about how i can, like, move lululemon. now, what was interesting about the under armour thing is it lost $9 billion in the last, let's call it six, seven, eight, nine months. that's a lot of money. and so, what i think happens is that people think that under armour's like this unbelievable company and lululemon's down here somewhere. especially in the u.s. public. but if you look at it, lululemon's way more profitable and has a much better business model. so, really, what i was trying to point out is lululemon should buy under armour because it's super weak right now. sports authority went big,

probably too much inventory. they've got receivables they can't get. i wouldn't want to be working at under armour right now. >> but you would want to be at lululemon? well, that's the wrong question for you. but you're saying that lululemon has a better business model. >> it has a better business model, correct. i'm a big cheerleader of that. >> chip, thank you very much for being with us. kelly and guys, back to you in new york. >> thank you. and chip, good stuff. appreciate it very much. when with come back, forget drones. jeff bezos' ambitious plans when it comes to outer space and the moon. dow's down 36. rick santelli, what are you watching today? >> well, i'll tell you what, i'm watching a bunch of things like thinking outside of the box with leadership changes. we're going to talk about all that after the break. lower than td ameritrade and e-trade... you realize the smartest investing idea, isn't just what u invest in, but who you invest with. ♪ i've got a nice long life ahead.

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at first, getting paid was tough... until she got quickbooks. now she sends invoices, sees when they've been viewed and-ta-dah-paid twice as fast for free. visit quickbooks-dot-com. i'm scott wapner. coming up on "the halftime report," "barron's" top adviser thinks the trump rally is just getting started. he's with us live on how highs he thinks stocks can go. plus, kevin o'leary is selling financials and putting his money in another sector he believes is about to jump. and as snap soars, another wall street analyst gives the stock a thumbs down. we'll find out why when "the halftime report" joins you in about 15 minutes or so. carl, we'll see you then. >> sounds good, scott, thanks. to the cme group in the meantime, rick santelli and "the santelli exchange." rick? >> hi, carl. you know, today's common denominator is, you know, thinking outside the box. i would like to add one word in front of this, that's

leadership. leadership and thinking outside of the box. when it comes to politics and getting things done, my memory was shaken this morning. there's plenty of hope for tax reform in today's "wall street journal" op ed. david schmidt, john mueller, made me think back to 1986, when reagan and the administration finally did some tax reform. it's been a long time. i remember trading those days. i remember how much like today, there was a lot of tug-of-war as to won't be able to get this done. and it also reminded me of another president, but not necessarily jimmy carter, the first lady, rosalynn carter. throw it up on the screen, please. a leader takes people where they want to go. a great leader takes people where they don't necessarily want to go but ought to be. think about that. now, listen, i'm not saying president trump is the greatest leader of all time, but one thing i can tell you, he is a good negotiator. i've read his books. he's accomplished a lot in that camp. you talk about an issue that's right in his wheelhouse -- you have the left, you have the

right. you have a chance with republican senate, republican house and republican president to accomplish what reagan accomplished and maybe more. is it going to be easy? it's never easy in government! but i do think that we need to take a step back and understand exactly the type of person we're dealing with here. we know there's going to be a tug-of-war. there's going to be a tug-of-war about deficits from the right side of the republican party, from the left side of the democratic party. there's going to be a lot of issues, maybe infrastructure's one they can agree on. so, what donald trump, in my opinion, president trump is going to do is he's going to do what so many of my guests over the last eight years have said -- you need to lock these people in a hotel room and throw away the key until they come up with a compromise. i think the only difference with that type of speaking metaphorically to now is not only do i think president trump could put that into motion, i think he's going to be the sergeant-at-arms on the inside of that locked door! and i think it's also about the

fed. but i'll tell you, you know i like to grade things, whether they're options or whatever, and i have to say, my grade for the federal reserve has not been a high grade, but as of late, i will give them an a-plus, and i'll tell you why. thank you for noticing. if you noticed today, we had ism non-manufacturing. one thing i noticed, but i noticed it after air, was that one of the internals, the export index surged nine points to 57. the last times it were here were two times in recent memory where it was higher than that, march of '16 and march of '15. so, exports are rattling around a bit. but the point i'm trying to make is, is that we can accomplish a lot, but compromise means both sides are going to be happy and both sides aren't going to be ultimately happy. i'm telling you what, the fed has done a good job by reversing the global trend. negative rates are corrosive. and in that regard, better late than never. stay the path, stay strornsing, maybe we can get some more rules based on the fed in regard to

how rates move so we can all be privy, not just what's going on in smart people's brains. jon fortt, back to you. >> all right, rick santelli. we'll see. have a great weekend. and when we come back, no sophomore slump for snap, soaring in its second day of trading, up 15% here, and content creators maybe as bullish about the product as investors. >> i have about 2.5 million followers on instagram, and i have 100,000 on snapchat. those 100,000 people are so much more valuable. if i'm adding someone on snapchat, i really care about looking inside their life. same for me. if somebody adds me on snapchat, they really care. i don't care on instagram.

welcome back. snap shares are soaring today. they were up as much as 20%, still up about 13%, this after becoming the largest ipo since 2014. but how does snap keep up the momentum? they rely on user content by social media influencers, for one. joining us now is one of them, hasan piker, a social media influencer and political reporter for the young turks. welcome, hassan. >> hi. thank you for having me. >> yeah, you got it. my main question for you that's sort of the topic of this interview is how do you make money on snapchat? >> i don't. i mean, i make very little money on snapchat. i actually make way more money on instagram, and that's kind of what i wanted to talk about is my preference for instagram's stories over snapchat's stories. and what i -- and the reason for

that is -- and i think girl with no job talked about this a little yesterday, is the audience size on snapchat versus instagram. and a big part of that is because of the exploration tool. on instagram, i have the opportunity to reach a much broader audience than i rags tool. on instagram i have a much better opportunity to reach. snapchat is closed? >> you and she is describing the same lay of the land smep says i have a lot more followers on instagram but my snapchat followers know me, we have more inmate. you're saying i have a lot more followers on instagram and you'll take that, right? >> absolutely. a larger conversation about the longevity of both of these platforms in general. and why mean by that is eventually snapchat is essentially a messaging platform still. and the story component was great but without an exploration tool, without helping out content creators -- and by the way with this recent ipo maybe

because they have a tremendous amount of revenue coming in possibly they could share that with the creators on the platform, this might change. but currently the way it is, they're just relying on active usership. and considering instagram already -- facebook already owns masquerade and will possibly bring on filters on to their platform as well, we'll see more and more decline in snapchat usership. that's my speculation. >> the snapchat argument is their engagement is so much better than other platforms. that that will make them premium versus others. you seem to be really questioning that, and maybe even putting them in the vine camp of not engaging enough with the creators on their platform and if they don't really amp up that effort and create thriving eco system they could suffer. is that kind of what i hear you saying? >> absolutely. it's absolutely what i'm saying. because at the end of the day, users are engaging with one another via messaging, right?

and that's great. and instagram has always -- instagram dms have had a negative connotation associated with it and snapchat kind of does as well but you can still joke around. it's game-ified messaging and they're active and we know that. but at the end of the day if you want to have premium content or if you want to possibly go to advertisers and tell them that you want to put their ads -- if you want brands to put their ads in front of premium content you're going to have to work with creators. senate ch snapchat hasn't done that except for d.j. who grew his audience by himself. >> second day in a row we get a d.j. reference in this hour. i'm curious, for our purposes a lot of this is about larger media companies trying to play in this space. we mentioned our own parent today, nbcu with a big stake in

snap. people drawing comparisons with disney with maker. does that make you feel differently about those big media tigtans? >> no, because i don't have cable and that's not going to change. and if disney -- >> how are you going to watch this interview, hasan? >> i hope it's packaged on to the internet. maybe on facebook or something so i can share it on my pages. but -- but for the most part we have left -- like my generation essentially left cable. ye we're not going to come back even if you buy snapchat or disney buys maker. that's not going to change anything. but at the end of the day the script will eventually flip where maybe not with maker but potentially with snapchat, snapchat might become the main entertainment platform for the younger demographics. >> one quick question. you mentioned, pir rags. you say you went snap didn't

have the expiration tool? >> that's interesting because i feel like facebook almost now because of viable video platform and they do a similar thing. like the news feed had an expiration essentially. there's no exploration concept within facebook or snapchat. i feel like in order to remain a viable platform, you need to have that. you need to have a library of things that people can look at. >> a library lives. hasan piker, thank you for being with us this morning. great to hear your point of view. >> thank you for having me. this week we unveiled our first ever cnbc upstart 25 list. up comers who are. the seventh company is attempting to reinvent the wheel as we head to break, take a look.

>>ye-bye sickle is the most popular vehicle today. it has limitation. we came up with technologies to address that. the wheel is a robot that can go on almost any bicycle and mike it hybrid electric. you learn what you do with your body so it has dozens of sensors inside. about 12 of them are dedicated to figuring out what your legs are doing. the most mine it things. then it imitates yound makes you about ten times stronger. you are able to take electric cycle, increase its quality by several fold, about a decade ago there was big push for working on autonomous driving. while out on the my is promising it's only solving a small part of the problem. unless yes we start to introduce different scales of vehicle we're not going to be able to fundamentally transform mobility. we started shipping to people in

august of 2016 and we've been ramping up in our manufacturing. we're building small vehicles of the future.

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amazon's jeff bases so granting an exclusive to paper he now owns, "the washington post," detailing his plan to bring a human settlement to the moon by the mid 2020s. from the article, quote, a permanently inhabited lunar setment is a difficult and worthy objective. i sense a lot of people are excited about this, he says. the proposal which is circulating within nasa and the white house does not involve flying humans but is rather focused on cargo missions. he spoke a lot about moving for instance, heavy industry, manufacturing into a weightless environment. >> i think it's all great but we're still paying the russians to use their satellite launcher or whatever the deal is. there's a lot of steps in the meantime we need to be taking care of. >> he is work og on that. there are all sorts of technology problems that could be solved from space if you're talking about power generation, that's one that's being worked on. must be nice to be granted an exclusive to yourself. >> people wonder how they got that scoop, that exclusive

access. dow is down 24. next hour is going to be rock 'n rolling, fed time. >> fed time. >> as we work our way through powell and yellen and fisher. >> we'll recap all of them on "closing bell" today at 3:00. >> love that show. >> let's get over to headquarters. sc scott wapner and "the half." ♪ >> welcome to the "halftime report." i'm scott wapner. top trade this hour, why the tom tramped financial advisor in the country according to barron's thinks the trump rally is far from over. how high can stocks climb? steven weiss, steve lebenthal, jon najarian. let's begin with stanley chais from stanford. andy, welcome back. >> thank you. thank you. >> how much higher do you think the market can go? >> it depends over what time frame i suppose. but my guess over the next couple or three years